Huize Holding Ltd. Q4 FY2024 earnings call

• Strategic shifts: Adjusted to diversified and customized product offerings, implemented AI plus strategy for industry intelligent transformation.
• Product launches: Launched intelligent client services system, intelligent assistant for mid to high-end medical insurance, and Feng Tung Underwriting Risk Control Engine System.
• Partnerships: Partnered with Aviva-COFCO to launch Fu Man Jia and with Ping An to introduce upgraded long-term medical insurance product.
• International expansion: Poni Insurtech acquired Vietnam's Global Care, with Q4 growth in policies issued and revenue; plans to expand into Singapore and Philippines by 2025.
• AI integration: In February 2025, fully integrated DeepSeek into the app, improving customer acquisition, self-purchase rates, and premium conversion efficiency.

In 2024, total revenue increased by 4.5% year-over-year to RMB1.25 billion. Gross written premiums (GWP) amounted to RMB6.16 billion, up 6% year-over-year. First year premiums (FYP) reached RMB3.42 billion, up 31% year-over-year. In terms of product segments: Whole-life premiums contributed RMB1.84 billion, surging 76% year-over-year. Long-term health insurance contributed RMB520 million, up 2% year-over-year. Savings insurance products, accounting for 68.6% of total FYP, saw stable growth with a 5.5% year-over-year increase. Short-term insurance business had robust double-digit growth, with premiums up 23% year-over-year to approximately RMB515 million. In Q4 2024, GWP contribution from customized insurance products accounted for 53.1% of total premiums.

• Target 30% international business revenue contribution by 2026.
• Focus in 2025: Develop intelligent needs assessment system for user needs, precise product matching, and enhanced conversion rates.
• Profitability: Expect profitable 2025 with mid-single-digit net profit margin, driven by international revenue and AI investments.

Q: About the commission caps regulation impact and how AI technology improves operations A: The commission caps regulation impact has been reflected in financial results, with industry moving to new normal. AI technology improves operations by accelerating customer acquisition, enhancing service efficiency, reducing fixed costs, and providing scalable operations. Over the next few years, AI will contribute to more efficient operations and improved financial outcomes Q: About operating expenses in Q4 2024 and gross profit margin guidance for 2025 A: Q4 operating expenses had sequential growth due to personnel restructuring and AI investments. In 2025, focus on deploying AI to drive cost savings. Gross margin outlook is to maintain mid-30% range, with potential improvement from AI-driven customer acquisition; expect profitable 2025 with mid-single-digit net profit margin