Huize Holding Limited Q3 FY2025 earnings call

• Customer - centric strategy: Remain committed to serving high - quality customer base across full insurance lifecycle. In 2025, added approximately 1.7 million new customers, total users over 12 million by year - end. Average age of long - term insurance policyholders was 35.3 years, 65.8% in Tier 2 cities or above. Average FYP ticket size for long - term insurance was RMB 7,900 in 2025, a 38% increase year - over - year. 15th and 25th month persistency ratios for long - term insurance products were over 95%. - Product innovation: Launched Dajia Hui Xuan 2.0, a participating annuity product for diversified retirement planning. Launched two customized million yuan medical insurance products, Xin Xiang Xiu 2.0 and Chang Xiang An 3.0, with 20 - year guaranteed renewal. - AI deployment: Fostered AI - native culture, deployed AI solutions across insurance service value chain. Expense - to - revenue ratio fell 5.9 percentage points year - over - year to 26.3%. AI - driven new user self - sufficiency rate increased by 50%. AI can independently complete sales transformation and generate personalized family insurance plans. AI claims service was launched with AI agent fully embedded across core claim systems, first AI - reviewed claims settled in 23 minutes. - International expansion: In Singapore, obtained financial advisor and exempt insurance license from MAS. In Hong Kong, demand for insurance products was strong with revenue growth over two - fold. In Vietnam, Global Care achieved growth in policies issued, users, and GWP and revenue.

In 2025, both gross return premiums (GWP) and first - year premiums (FYP) facilitated on the platform reached record highs, with GWP at RMB 7.4 billion (21% year - over - year growth) and FYP at RMB 4.6 billion (35% year - over - year growth). Total revenue for the year was RMB 1.6 billion, growing approximately 27% from last year. Long - term insurance products accounted for over 90% of total GWP in 2025. FYP from long - term savings products surged 48% year - over - year to RMB 3.5 billion in 2025, with annuity product FYP more than doubling year - over - year to RMB 1 billion. Short - term health and accident insurance FYP grew 12% year - over - year to RMB 613 million. International business in Singapore obtained financial advisor and exempt insurance license, in Hong Kong demand for insurance products was robust with revenue increasing more than two - fold year - over - year, in Vietnam Global Care had 106% year - over - year growth in four - year GWP and 84% revenue growth, and GSL business line had platform users quadrupling and total insurance fee increasing more than three - fold year - over - year.

• Continue to focus on three strategic directions: Deepen service quality with AR comprehensive support, optimize workflows through AR, release resources to improve service quality and expand AR application scenarios; deepen product innovation in core growth areas, customize and create innovative and participatory insurance products; accelerate and deepen international expansion through home industry tech, grow overseas revenue contribution. - Expect slight improvement in gross margin over the course of 2026. - Believe strong growth momentum for Hong Kong business will persist in 2026. - Expect AI to continue driving and scaling revenue generating capabilities, potentially leading to re - rating of share price.

• Impact of international revenue makeup on gross margin: Domestic market revenue contribution has declined due to high growth of international revenues, and international revenue segment has a slightly lower gross margin. - Regulatory risks in Hong Kong: Regulatory cap on referral fees and commission spreading took effect in 2025, which may have a dampening effect on the growth momentum of the overall brokerage market channel in Hong Kong.

Q: First, OPEX was well - contained but operating costs grew faster than revenue. Could you give more color on this and how to improve it? Second, regulatory schedules in Hong Kong like broker referral fee cap and commercial spreading are taking effect this year. What is the plan to sustain pro - momentum in Hong Kong?

A: On the first question, the depressed gross margin in 2025 is due to the makeup of revenue, with international revenues increasing substantially and having a lower margin. Expect slight improvement in gross margin over 2026. On the second question, underlying growth drivers for customers to seek offshore products in Hong Kong remain robust. Substantive maturity of time deposits in onshore market could allocate to offshore markets, and strong growth momentum for Hong Kong business is expected to persist in 2026.

Q: There was growth margin compression in the first half of 2025 compared to the same period in 2024 in brokerage income against cost of revenue. Except AI, is there opportunity for margin expansion? Second, stock still below cash value. Why do you think the stock is not moving with fundamentals?

A: Regarding margin expansion except AI, with AI deployment in front line for customer acquisitions, potential for significant re - rating of gross margin as AI can drive self - service policy purchases and sales conversions. Regarding stock not moving with fundamentals, market may be pessimistic due to switch to half - yearly announcement schedule, but company has delivered strong growth in top line, bottom line, and AI investment, expecting re - rating of share price in 2026 as it is trading below net asset value.