Ladies and gentlemen, thank you for standing by and welcome to the Hoyce's second half and full year 2025 earnings conference call. At this time, our participants are in listen-only mode. After the management's prepared remarks, we will have a question and answer session. Today's conference call is being recorded and the webcast replay will be available on Hoyce's IR website at ir.hoyce.com under the events and webcasts section. I'm now to hand the conference over to your speaker host today, Mr. Kenny Lowe, who it says, Investor Relations Director. Please go ahead, Kenny.

Thank you, operator. Hello, everyone, and welcome to our second half and three years, 2025 earnings conference call. Our financial and operational results were released earlier today and are currently now available on both our IR website and Globe Newswire services. Before we continue, I would like to refer you to a safe public statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-gap measures today, which are more appropriately explained in our earnings release and filings with DSTC. Joining us today are our founder and CEO, Mr. Chen Jun Ma, co-chair for Mr. Ming Han Xiao, and co-chair for Mr. Ron Tang. Mr. Ma will start the call by providing an overview of the company's performance and Operational highlights, both by Mr. Ted, who will go over our financial results for the year 2025, then we'll open the call for questions.

Now I'll send the call over to Mr. Ma. 资金正加速地向保险等长期稳健资产的前移 分红性保险 凭借其保障与增值的双重属性 正成为驱动行业增长的核心动力 科技层面 生成式埃压与埃压制能体的技术快速接待 正在深度重构保险行业和生活生态与运营模式 推动行业向更智能高效的方向演进 放眼海外,东南亚保险市场的数字化渗透加速,人口红利与中产崛起结架,结构机遇日益凸显,面对这些变化,惠泽,以前瞻性的战略布局精准地把握了市场的脉搏,在2025年交出了一份令人振奋的成绩单。 Welcome to the second half and full year of the 2025 earnings conference call.

In 2025, China's insurance industry underwent profound structural changes. As bank deposit rates continued to decline, household wealth allocation shifted fundamentally, with capital accelerating to long-term stable assets such as insurance. Participating products that offer both protection and wealth accumulation emerged as a core growth engine for the industry. Furthermore, generative AI and AI agent capabilities is deeply reshaping the industry ecosystem and operating models, driving the sector towards greater efficiency and intelligence. Internationally, Southeast Asia insurance markets are expecting accelerating digital for penetration in a growing middle class creating compiling structural opportunities our proactive for looking strategy ideally positioned us to capitalize on this dynamics and deliver a strong performance in 2025. 同比增长了35% 双双创下了历史新高 全年总营收达到了15.8亿元 同比增加了27% 在收入强劲增长及AR驱动全面降本增效的带动下 公司实现了经调整的净利润2262万元 标志着我们已经连续三年实现盈利 both GWP and FYP facilitated on our platform in 2025 reached record highs of RMB 7.4 billion and RMB 4.6 billion, surging 21% and 35% year-over-year respectively. Total revenue for the year came in at RMB 1.6 billion, growing approximately 27% from last year. Driven by strong top-line growth, cost-efficiency improvement from the strategic deployment of AI solutions across our organization, we delivered non-GAAP net profit of RMB 22.6 million. This marks the first consecutive year of non-gap profitability, a testament to our resilience execution in a dynamic market and the long-term sustainability of our business model.

Thank you very much.

We remain deeply committed to our customer-centric strategy, serving our high-quality customer base across the full insurance life cycle. In 2025, we added approximately 1.7 million new customers, bringing the total to over 12 million by year end. The average age of long-term insurance policyholders was 35.3 years, with 65.8% residing in Tier 2 cities or above, reflecting our focus on high-quality customer demographic segments. The average FYP ticket size for long-term insurance is approximately 7,900 in 2025, a 38% increase year-over-year. As of year-end, each of our 15th and 25th month's persistency ratios for long-term insurance products remained at industry-leading levels of over 95%, highlighting our strong retention and fully validating the quality of our service and the competitiveness of our product offerings. 高质量财务规划需求

我们提出了大家会选二号 分红型的年金 旨在提供优质多元化的退休规划方案 积极契合市场对分红型保险的强劲需求 此外 我们还定制提出了年款百万医疗险的产品 新乡手二号与长相安三号 分别以20年保证续保 及免建高 等差异化的优势 by the end, our partner ecosystem grew to 158 insured partners,

allowing us to continue expanding the differentiated customized products we offer. To address the growing demand for wealth management and financial planning solutions in an aging society, we launched Dajia Hui Suen 2.0, a participating annuity product designed to provide premium diversified retirement planning solutions. We also launched two customized million-yen medical insurance products, Xinxiangxiu 2.0 and Changxiangan 3.0. Each offering differentiated features, including 20-year guaranteed renewal and simplified health underwriting that cater to the diverse health protection needs of different customer segments. Together, these launches reinforce our core competitiveness in the medical insurance segment and a solid foundation for our long-term sustainable growth. we have to look through the customer's perspective on the customer's perspective. and look back to the customer's perspective.

In 2025, the AIR-based customer's analytics will be made by 50%, and we have to reveal the AIR to be able to complete the transaction. In other words, the AIR plan was created by the user's perspective. This is the way that the user has changed. This is the way that the user sees the user's design. He will create a character's perspective. 助力惠泽升级为用户全生命周期的财务规划伙伴 近日惠泽正式发布上线AR理赔 其AR理赔的智能体已与核心理赔系统完成了全面的对接 手笔经AR审核的理赔案件仅用23分钟便顺理结案 成为保险中介行业内首例全流程由AR智能体完成的理赔实践 成功实现了全链路的服务闭环 未来,会则将携手保险公司共同构建 连接用户保险公司与代理人的智能生态 将AI元素融入保险服务和财务规划的各个环节 全面落地构建AI驱动的保险生态平台

We began fostering an AI native culture across the organization during the year, deploying AI solutions across the insurance service value chain. This significantly improved our expense to revenue ratio, which fell 5.9 percentage point year over year to 26.3 percent and was a key contributor to our return to full year profitability. We also deployed our AI solutions across the entire customer journey, covering intent recognition product recommendations, and the writing in place. This meaningfully enhanced the user experience and supported a 50% year-over-year increase in AI-driven self-service policy purchases among new users in 2025. Our AI systems are now capable of independently completing sales conversion. The launch of our AI financial planner highlights this evolution into a full life cycle financial planning partner for our customers. AI cannot directly generate personalized family insurance plans directly from individual users' profiles. More recently, we launched our AI claims service with our AI agent fully embedded across core claims system. The first AI review claims was settled in just 23 minutes and marks the first fully end-to-end AI agent-driven claim settlement in China's insurance intermediary sector and the completion of our intelligent closed-loop service capability. Looking ahead, we will collaborate with insurance carriers to build an intelligent connected ecosystem spending users, insurers, and agents embedding AI across every stage of insurance services and financial planning to fully realize our vision of an AI-driven insurance platform. 以IR赋能的创新方式拓展新加坡市场 为消费者带来保险选购的新体验

在香港市场 凭借差异化的保险产品功能 市场对香港保险产品的需求持续强烈 香港业务于2025年实现显著的增长 业务因受同比提升超过两倍 In the U.S., GlobalCare's total income rate increased by 1006% and the income rate increased by 84% What is important to note is, GoSale's market market market market market rate increased by 4倍 and the income rate increased by 3倍 and it has fully confirmed the number of the market in the U.S. market market in the U.S. market.

our international business continued to deliver a strong performance in Singapore headquarters of Pony InsurTech we obtained a financial advising exam insurance license from the Monetary Authority of Singapore formally establishing a local operational footprint simultaneously we are actively expanding our proprietary AI solutions to Singapore to offer and innovative and differentiated insurance experience. Demand for our insurance products in Hong Kong remained robust in 2025, with revenue increasing more than two-fold year-over-year driven by their differentiated product features. In Vietnam, Global Care generated a 106% year-over-year increase in full-year GWP and an 84% increase in revenue growth. Notably, the GCL business line has a standout performance, with platform users quadripling drilling the year and premiums growing more than pre-folded year over year, strongly validating the scalability of our digital distribution model in Southeast Asia. 持续为客户提供最优的保险服务体验,通过AR优化各环节的工作流,将释放的资源回归至服务质量的提升,并拓展更多的AR应用场景,让技术真正服务于人。

2. 深化产品创新 聚焦核心赛道持续定制打造创新差异化的保险产品 精准满足精细化客群的多元需求 持续发力分红险及长期健康险的产品迭代与革新 为客户构建覆盖医疗与财富管理的全方位保障 3. 依托PolyIncotech的加速并深化海外业务布局的 Looking ahead, we will continue to focus on three strategic priorities to drive high-quality growth.

First, we will continue to deploy AI across business to deepen service quality and improve user experience. By using AI to streamline workflows, we will deploy freed up resources toward further improving service quality and expanding AI application scenarios, facilitating technology and creating real value for our customers. Second, we will deepen product innovation in our core growth areas, developing differentiated and innovative products tailored to specific customer segments. Our focus will remain on participating products and long-term health insurance to address demand for comprehensive coverage across both healthcare and wealth management. Third, we will accelerate and deepen our international expansion through funding issue tax, growing the proportion of overseas revenue contribution and delivering sustainable long-term value for our shareholders. This concludes my prepared remarks for today. I will now turn a call to our CFO, Mr. Ron Temp, who will provide an overview of our key financial highlights.

Thank you, Mr. Mai and Kenny. Good evening, everyone. First of all, we closed out the year very strongly with another solid performance despite a volatile macroeconomic and geopolitical landscape. On a full year basis, both gross return premiums and first year premiums facilitated on our platform has reached record highs of RMB 7.4 billion and RMB 4.6 billion, respectively, representing year-over-year increases of 21% and 35%, while total revenue grew 27% year-over-year to RMB 1.6 billion. Notably, we gained profitability with net profit of 4 million RMB and non-GAAP net profit of RMB 23 million. Our financial workstation remained solid with cash and cash equivalents of RMB 251 million as of the year-end. This exceptional performance was driven by our omni-channel distribution network, expanding high-quality customer base, and efficiency gains from the strategic deployment of our advanced proprietary AI solutions, underpinned continued progress in the execution of our international expansion strategy. Looking at our core business, long-term insurance products continue to be our strategic focus which accounts for over 90% of our total GWP in 2025. FYP from our long-term savings products surged 48% year-over-year to RMB 3.5 billion in 2025. Notably, FYP for annuity products more than doubled year-over-year to RMB 1 billion, which is driven by robust demand for wealth management and financial planning solutions in a lowering interest rate environment in China. We have capitalized on national strategic guidance to build a multi-tiered healthcare protection system and the release of national commercial insurance innovative drug catalog with the launch of Lin Yuan medical insurance products to address the long-term comprehensive health protection needs of mid to high income families. By leveraging our well-established omni-channel distribution network and advanced AI solutions, we have significantly enhanced customer acquisition and engagement. Our total customer base has reached 12.3 million as of December 31st, 2025, reflecting an increase of approximately 1.7 million customers over the full year. Though we purchase ratio for our long-term insurance products, we've been solid at 36%, highlighting our ability to grow customer lifetime value through effective upselling and cross-selling. I would like to highlight several key operational achievements for year that further demonstrate its progress. The FYP from our IFA business has increased by 44% sequentially to RMB 215 million in the second half of 2025, reflecting the impact our AI solutions are having in enhancing the productivity of both our internal and independent financial advisors. FYP from our short-term health and accident insurance grew 12% year-over-year to RMB 613 million demonstrating our ability to innovate and deliver an increasingly diverse range of product offerings. As of December 31st, 2025, our 13th and 25th month persistency ratios for long-term life and health insurance has remained at industry-leading levels of over 95%, underscoring the strong customer loyalty we attract with these diverse product offerings and the effectiveness of a post-sales servicing. The average ticket size of a long-term savings product rose 37% year-over-year to RMB 103,000 in 2025, driven in part by the increased sales of premium products internationally. In 2025, we have implemented our systematic three-pillar AI strategy to enhance internal operational efficiency to improve customer experience and to drive platform transformation. Internally, we are fostering an AI native culture across the organization, deploying AI solutions tailored to various business units that automate routine tasks and optimize workflows. On the customer front, we have upgraded our AI app with multi-agent architecture that facilitates integrated end-to-end user journeys with product recommendations, insurance underwriting, and policy servicing. Additionally, we also unlocked new revenue opportunities through AI-driven product and service innovations. For instance, our AI Financial Planner is capable of designing tailored family insurance solutions based on client-specific information. Collectively, these AI solutions have delivered meaningful cost savings and productivity gains. Our total operating expenses increased at a slower pace than revenue, rising by just 3.4% year-over-year to RMB 415 million and consequently our expense to income ratio improved significantly by 5.9 percentage points year-over-year to 26.3% for the full year of 2025. Furthermore, our AI-driven self-directed policy purchases grew by 50% year-over-year in 2025, underscoring the effectiveness of our AI agents. Holding Introtech, our international arm, delivered another strong performance and remains a key pillar of a long-term growth strategy. In Vietnam, our majority-owned subsidiary GlobalCare achieved impressive growth, with the number of insurance policies issued increasing by 31% year-over-year, driving a surge of 106% and 84% year-over-year growth in GWP and revenue, respectively. Our IFA business in Vietnam had a particularly standout year with a number of active platform users quadripling and policies issued going by 2.3-fold year-over-year in 2025, while GWP and revenue from this channel also grew significantly over 3.8 times in 2.5 times, respectively. GlobalCare also onboarded new merchant partners and launched Vietnam's first Influencer platform in July, a proven distribution model that's pioneered by Quaser in China, further extending our digital reach in the local market. In Singapore, we obtained approval from the MAS to operate as a financial advisory and exempt insurance broker, marking a significant milestone in our regional expansion. This license reinforces our dual regional hub strategy across Singapore and Hong Kong, positioning us to attract cross-border assets and deliver premier protection and wealth management solutions to consumers across Asia. Collectively, the continued expansion of Pony Introtech will diversify our revenue streams and create new growth drivers, enhancing long-term shareholder value for Huiza. In conclusion, we are confident in our ability to capitalize on the opportunities arising from China's evolving industry landscape and the broader Asian market. Domestically, prevailing low time deposit rates are expected to continue to encourage retail depositors to reallocate the wealth towards higher-yield savings and participating insurance products. Imperial, aligned with the National Strategic Directive to establish a multi-tiered protection system, demands long-term commercial insurance protection. For health, it's expected to grow steadily, underpinning healthy and sustainable development across the entire value chain. Internationally, through Pony Intratec, we are replicating our proven model in China and proprietary AI solutions to drive our expansion into high-growth Southeast Asian markets, with a particular focus on the young and fast-growing middle-class demographic in the region. We remain steadfastly committed to strengthening our positioning as Asia's leading intra-tech platform by harnessing our advanced data analytics, fully integrated AI solutions, and a proven market penetration strategy. Our vision remains focused on building an AI-driven intelligence ecosystem that seamlessly connects consumers, our carrier partners, and distribution partners while consistently delivering and doing value to all stakeholders. And with that we will conclude the opening remarks and open up the call to questions. Thank you very much and over to you operator.

Thank you so much dear participants. If you would like to ask a question please press star one one on your telephone keypad and wait for a name to be announced. To withdraw a question please press star one and one again. Please stand by or will compile the career in the role studies will take a few moments. Once again, if you would like to ask a question, please press star one, one. And now we're going to take our first question. And it comes line of Kenny Lim from UOBK Hian. Your line is open. Please ask your question.

Good evening, Ron. First of all, congratulations on your strong result. So a few couple of questions from my end. First, your OPEX was well-contained, but I noticed that the operating costs grew faster than the revenue. So could you give us more colour on this and how are you going to improve this? And the second question will be, we know that a few regulatory changes in Hong Kong, like the broker referral fee cap and also the commercial spreading are taking effect this So what is the plan to sustain your growth momentum in Hong Kong? These two questions are my end.

Okay, great. Thank you, Jenny, for your two questions. On the first question regarding the observation on the operating costs growing faster than revenue growth. I think in effect that would mean that there's a depressed gross margin year over year. The main reason for this has to do with the makeup of our revenue for the domestic market and also the international markets. The domestic market revenue contribution has declined because of the high growth of our international revenues. And our international revenue segment occurs at a slightly lower gross margin and therefore what that is an observation that you have made that the operating cost has, you know, the growth of that has surpassed revenue growth. And that has to do with the make-out of the revenue, as I just explained. So that's the first question. We do expect that the gross margins or offering margins to remain at this level. And we do expect a slight improvement over the course of this year. Your second question on the Hong Kong market. We start to the regulatory cap on the referral fees and also on the commission spreading that has been in effect since 1st of this year, 1st of June of this year. We do expect, which has been seen in the market, that there's been a dampening effect on the growth momentum of the overall brokerage market channel in Hong Kong, specifically coming from the MCP segment, which obviously I think most of the China-based brokers are focused on. However, we do note that the underlying growth drivers for customers to seek out offshore products in Hong Kong remains very robust and the momentum has not decreased year over year. We do see that with the you know, substantive maturity of time deposits in the onshore market, which is to the tune of, you know, for various estimates, putting that at around three to five trillion RMB. And a meaningful proportion of this could be allocated to offshore markets. And Hong Kong would definitely be a natural recipient of this outflow. And therefore, the underpinning growth momentum should remain relatively robust for the Hong Kong savings plans, which is the main product that are being distributed by brokers in Hong Kong. So with that, we do believe that we do expect that strong growth momentum would persist for our Hong Kong business in 2026. So back to the operator.

Kenny, any further questions? thank you so much yeah participants as a reminder if you would like to ask a question please press star one one on your telephone keypad and now we're going to take our next question and the question comes line of Mona Wang from Greenridge global your line is open please ask a question hello everyone this is Mona from Greenridge global and it's great to see the company delivering several positive development originally and there are two questions the one question there was some more gross gross margin on comparison in the first half of 2025 as compared to the same more period in 2024 when looking at brokerage income or against the cost of revenue so if accept the AI is their opportunity another opportunity for the margin expansion and the second question yourself drawn the top-line growth and the strong back up back to a profitability in 2025 have, but the stock still trades below cash value. So why do you think the stock is not moving with the fundamentals? Thank you.

Great. Thank you for the questions, Mona, and thanks for joining us for the first time. I appreciate your attendance. And with respect to your two questions, I believe the first question was about the compression of gross margin as it compares across 2025 and 2024 and whether AI could have a positive effect on improving gross margins. So I think two fronts here. I think as I explained to Kenny just now in his first question, the gross margin depression in 2025 has to do with the makeup of our revenue and specifically the contribution of our international revenues to the overall revenue pool, which has increased substantially over the course of 2025. And as a result, the gross margin has decreased because the international revenue carries a lower margin as compared to our domestic or mainland China revenue segment. So, therefore, as a result of the two, the gross margin has been decreased. However, as you know very accurately, with the deployment of AI solutions and the initial results that we are seeing, obviously, AI deployment has a significant cost savings or efficiency improvement in the business flow in the mid-to-back office. As you can see, the expense ratio has improved by almost 6%, and that's more to do with the expense or cost savings point of view. But on a growth margin level, I think that what we can potentially envisage over the course of the next few years as AI continues to be deployed in the front line, i.e. in terms of customer acquisition, in terms of lead generation, we do believe that there could be a potential for a significant re-rating or upgrade of a gross margin going forward. For example, we have noted in the opening remarks that AI has been driving a 50% a year-over-year increase in self-service policy purchases by our customers in 2025. Our AI systems are capable of independently completing sales conversions, and we have been generating over millions of RMB or premiums already to the AI engines. So this, obviously, we do have the high hopes and high expectations that AI will continue to drive and scale our revenue generating capabilities to the tune that we don't need any human interaction or involvement in the entire customer acquisition and conversion process. So I think that's something that we are continuing to work hard towards and that probably is the holy grail in terms of how AI can scale our profitability over the next foreseeable So that's something that we have already proven to the market and we continue to invest in AI-driven growth in 2026. With respect to your second question about the fundamentals, somehow it's not tying with our share price performance. We do note that the market has been relatively pessimistic, I believe, on the performance of our company. it may have to do with the switch of our reporting schedule since the second half last year we have migrated to a half yearly announcement schedule and therefore the market may have certain concerns on the continued sustainable growth and you know performance of the company but as we have shown in this earnings release uh we have delivered strong growth not in terms of just top line and or premium growth but also in terms of bottom line profitability we have demonstrated that we are able to uh you know operate a very resilient business model and with the advances in ai and our our strong investment in ai related proprietary products you know across our business value uh chain um both in the front end and we do expect that um all together we are looking at a very much of a a robust growth momentum in 2026. um so that would that would hopefully drive our re-rating in our share price as you have noted that our share price right now is trading even below our net asset value and therefore there's a significant room for us to uh we rate our share advice to the more of an intrinsic value. And thank you for the question.

Thank you. Thank you. Dear speakers, we'll just give a moment to our participants to press star 1-1 if they have any additional questions. Once again, if you would like to ask a question, please press star 1-1. There are no further questions for today. I would now like to hand the conference over to your speaker, Mr. Kenny Lo Hoytes-Aya director, for any closing remarks.

Thank you operator. In closing, on behalf of the 4GIS management team, we would like to thank you for your participation in today's call. If you require any further information, feel free to reach out to us. Thank you for joining us today. This concludes the call.

This concludes today's conference call. Thank you for participating. Imanal all disconnect. Have a nice day.