Huize Holding Ltd (HUIZ) Q2 2026 Earnings Call Transcript

Ladies and gentlemen, thank you for standing by. Welcome to the How is the First Half 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management prepared remarks, we will have a question and answer session. Today's conference call is being recorded, and a webcast replay will be available on the IR website at ir.whitesip.com under the Events and Webcast section. I'd now like to hand the conference over to your speaker host today, Mr. Kenny Lo, Investor Relations Director. Please go ahead, Kenny.

Thank you, operator. Hello, everyone, and welcome to our first half 2026 earnings conference call. Our financial and operational results were released earlier today and are currently available on both our IR websites and Globe Newswire services. I would like to refer you to the safe harbor 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 thoroughly explained in our earnings release and following with the SEC. Joining us today is founder and CEO Mr. Chun Jun Ma, co-CFO Mr. Ming Han Xiao, and co-CFO Mr. Ron Tam. Mr. Ma will start the call by providing an overview of the company's performance and operational highlights, followed by Mr. Tam, who will go over our financial results for the first half of 2026. Then we will open the call for questions.

I will now turn the call over to Mr. Ma. 从以渠道为主导 逐步走向更加数字化 专业化的发展阶段 我们也看到了行业竞争 越来越考验产品的创新 客户经营和运营效率 当前 在低利率和人口结构变化的背景下 居民对长期储蓄 养老和健康保障的需求持续地增长 與此同時,IR技術的快速演進也在重塑整個保險服務和運營方式。 面對這些結構性的變化,會則將長期積累的核心能力轉化為增長動力,在2026年上半年,實現了業務規模與經營質量的提升。 Hello everyone and welcome to Hoytzer's first half 2026 earnings conference call.

2026 marks Hoytzer's 20th anniversary. Over the past two decades we have witnessed insurance industry evolve from a market dominated by traditional distribution and agent-led sales into a more digital and professionalized ecosystem where product innovation, customer engagement and operating efficiency have become more increasingly important sources of competitive differentiation today a low interest rate environment and shifting demographics are driving sustained demand for long-term savings retirement planning and health protection at the same time rapid advances in AI are reshaping both the delivery of insurance services and the way companies operate against this backdrop we are building on capabilities developed over the past 20 years to unlock new growth opportunities, while continuing to improve efficiency and operating quality in the first half of 2026. 加拿了49% 在业务规模持续扩大的同时 公司实现了营收7.2亿元 另外 随着AR进一步融入内部运营和核心工作流程 会则以全面转型AR原生组织 不断地优化组织运营效率 持续体现AR在提升经营能力方面的价值 在此基础上 规模净利润 升至免签530万元 In the first half of 2026, GWP facilitated on our platform reached RMB 4.2 billion, up 30% year-over-year and marking a new all-time high. While FYP increased 49% year-over-year to RMB $2.76 billion, as our business continued to scale, total revenue reached RMB $720 million. At the same time, AI became more deeply embedded across our internal operations and core workflows as Hoezer advanced its transition towards an AI-native organization, supporting continued improvements in organizational efficiency and operating capabilities.

As a result, net profit attributable to common shareholders increased to RMB $25.3 million, Overall, the first half was marked not only by strong premium growth, but also by broader growth momentum, improved operating efficiency and stronger profitability. 长期线投保的客户平均年龄为35.3岁 其中62.5%来自于二线及以上城市 长期线建均首联保费达成达到8211元 同比增长了25% 截至5月底 长期线第13个月及第25个月 继续率均保持在95%以上 持续处于行业领先水平 这些成绩验证了汇德长期线 客群的质量和业务价值 我们也在通过AR进一步深化客户服务 规则的AR规划可以根据客户信息和实际保障需求 生成个性化的家庭保险方案 目前活跃用户的规划报告生成率已达成了40% 显示AR服务正从单点咨询进一步延伸对家庭保障的规划 提升了我们的服务客户长期保障需求的深度和效率 We remain firmly committed to our customer-centric approach, continuously deepening customer engagement across the entire life cycle.

During the first half, we added approximately 798,000 new customers, bringing the cumulative number of insurance clients served to approximately $13.1 million as of June 30th. The average age of customers purchasing long-term insurance products was 35.3 years, with 62.5% coming from tier two cities and above. The average FYP ticket size for long-term insurance products increased 25% year-over-year to approximately RMB 8,211. As of May 31st, both our 13th and 25th month persistency ratios remained above 95, continuing to rank among the highest in together. This metric underscores the quality and long-term value of our customer base. We are also using AI to further deepen customer engagement. Our AI financial planning agents can generate personalized family insurance plans based on each customer's profile and protection needs. Among active users, the planning report generation rate has now reached 45%, demonstrating AI engagement is expanding beyond individual consultations toward more comprehensive household protection planning. This enables us to serve customers' long-term protection needs with greater depth, personalization and efficiency.

We will continue to add to the core of the new year-to-day-to-day-to-day-to-day-to-day-to-day-to-day-to-day-to-day.

As of June 30th, we maintain stable partnerships with 159 insurance carriers and continue to could develop customized products across multiple insurance categories, addressing customers' increasingly diverse needs in savings, retirement, and health protection. As demand for long-term financial planning continues to grow, we further expanded our core annuity product, French House, with the launch of Lease 5.0, a participating annuity product designed to support long-term wealth accumulation, family asset planning, and retirement preparation. In health protection segment, we further expanded the scope of coverage and broadened our service offerings. Darwin No. 15, Kids Protection, integrates critical illness protection for children with long-term medical coverage, extending protection beyond a one-time financial payout toward long-term health support. Changxiang An 5.0 further expense meet to high-end medical coverage to customers with certain new deals, pre-existing conditions, and other needs that are traditionally underserved by medical insurance.

AIR 计划用户较年初增长了65% AIR 正逐步成为用户获取保险服务的重要入口 更多用户开始通过 AIR 完成保险咨询 产品推荐和初步保障规划 在顾问和服务端 AIR 开始更深入地参与到客户分析 方案生成及客户经营 家庭保险方案可在五分钟以内生成 并通过智能客户筛选 AIR外护等方式识别和转化潜在商机 可见 AIR已开始从提升运营效率 进一步延伸至全智能业务增长引擎 在理赔端 小马理赔的 AIR已经从去年的首单验证 拓展至覆盖四大核心前中 并适配大部分内部主流产品 整按 AIR时效性在一小时内完成

In the first half of 2026, we remain firmly committed to our AI-native strategy, further deepening the adoption of AI applications and expanding the coverage across our business. QuaZis AI completed its upgrade to a 2.0 multi-agent architecture, with the number of users engaging in AI conversations increased 65% from the beginning of the year. AI is gradually becoming an important gateway for users to assess insurance services with more customers using AI for insurance consultation, product recommendations, and preliminary protection planning. Across our factory service operations, AI is becoming more deeply involved in customer analysis, solution generation, and customer engagement. Family insurance plans can now be generated in the five minutes while intelligent customer screening and AI-powered outbound calls are helping identify and convert business opportunities, demonstrating that AI is evolving beyond an operational efficiency tool into an intelligent engine for business growth. On the claims side, Xiaoma claims AI has expanded from completing its first pilot claim line covering four core insurance categories and supporting most of our mainstream products. End-to-end AI claims processing can now be completed within one hour with more products processed in minutes. We are also continuing to strengthen from fundamental capabilities as our professional insurance knowledge base providing specialized and granular data support for the deployment of AI agents across a broader range of surface scenarios going forward we will place greater emphasis on the practical impact of our AI applications and the kind of value they deliver across customer experience professional services operating efficiency and business Conversion. On the international front, Pony Intri-Tech continued to deepen its presence across key Asian markets. generating approximately RMB $220 million in international revenue during the first half. In Vietnam, global care maintained strong business momentum, with GWP and revenue increasing approximately 45% and 24% year-over-year, respectively. Our customized maternal and child health insurance product received a positive initial market response, and we accelerated its rollout through our agent channels, successfully validating local demands for maternal and child health protection. In Singapore, we are focused on serving high-value customers with protection, wealth allocation and long-term financial planning needs, while continuing to broaden our high-value offerings through differentiated products. 導向的產品創新

在持續鞏固分紅險等儲蓄型產品競爭力的同時 加快長期健康險及核心保障產品的搭代 並持續打造和升級核心產品IP 更好的承接客戶不斷變化的養老健康和家庭保障需求 第三 依托Holing Institute進一步做生亞洲重点市場的經營 发挥香港和新加坡双输流的作用 持续完善本地产品和渠道能力 夯视国际业务长期发展的经营基础 Looking ahead to the second half, 惠泽 will remain focused on three priorities.

First, we will continue to advance our AI native strategy, deepening the adoption and practical impact of AI applications so that, alongside improving customer experience, professional service capabilities and operating efficiency, AI can increasingly generate sustainable business value. Second, we'll further strengthen customer-driven product innovation. While we're enforcing our competitiveness in savings products such as participating insurance, we'll accelerate the operation of long-term health and core protection products and continue to build and upgrade our flagship product franchises to better address customers' retirement, health, and family protection needs. Third, through promoting Inshitaq, we will depend on our operations across key Asian markets, leverage Hong Kong and Singapore as our dual regional hubs, and continue strengthening local product and distribution capabilities to build a solid foundation for the long-term development of our international business.

Next, we will ask our CEO, Ron. 为大家详细的解读汇者2026年上百年的业绩和财务数据。 we have delivered another set of very strong results in the first half for 2026. Total GWP facilitator on the platform has reached a record high of RMB 4.2 billion representing year-over-year increase of 29.8%. Total FYP also surged by 48.7% year-over-year to RMB 2.76 billion. Total revenue rose to RMB 720 million. Gap net profit increased to RMB 25.3 million our financial position remains very solid totaling RMB 241 million as of the quarter end June 30th these exceptional results underscore the effectiveness of our omni-channel distribution network our discipline focus on attracting high quality customers from the market and the extensive application of our proprietary AI technologies notably we are steadily advancing our international extension strategy and additional revenue long-term sustainable growth and geographical diversification turn to a core business FIP from a long-term savings product category rose more than 45% year-over-year to R&B 2 billion supported by heightened demand for wealth management and financial planning solutions in a sustained low interest rate environment in China. Further against the backdrop of continued policy support for a multi-tiered healthcare protection system, including the introduction of the National Commercial Health Insurance Innovative Plug Catalog, we continue to expand our long-term health insurance offerings to address increasingly sophisticated needs. FYP of our long-term health insurance category grew by 1.6x year-over-year to RMB 204 million. Our diversified distribution network and advanced AI solutions enabled us to broaden our customer reach and cultivate customer relationships. Total customer base has reached 13.1 million as of June 30, reflecting a net addition of approximately 0.8 million during the first half of 2026. The repurchase ratio for our long-term insurance products remained high at 33.3%, demonstrating the continued progress we've made in enhancing customer lifetime value through targeted upselling and cross-selling initiatives. I would like to highlight several key operational achievements during the period. First, FYP for our 2A business increased by 44% year-over-year to RMB 216 million in in the first half, underscoring the effectiveness of our AI capabilities in improving the productivity of both our in-house consultants and our IFA partners. Second, FYP from our short-term health and accident insurance grew 48% year-over-year to RMB 376 million in the first half, reflecting our relentless efforts in product innovation and growing the breadth of our portfolio. And third, as of May 31st, our 13th and 25th month persistency ratios for long-term life and health insurance remained at industry-leading levels of over 95%. We are affirming strong customer loyalty and the high quality of our post-sale servicing. And four, average ticket size of our long-term savings products rose 10.4% year-over-year to RMB 140,500 in the first half, possibly attributable to higher tickets of premium product in international markets. In the first half, we advanced our systematic three-pillar AI strategy centered on raising operational efficiency, elevating the user experience, and enabling platform-wide transformation. Across the organization, we continue to embed an AI-first mindset by introducing purpose-built applications within individual business functions to automate routine tasks and streamlined workflows. For customers, we upgraded our AI app with a multi-agent architecture that supports seamless end-to-end user journeys, spanning product recommendations, insurance underwriting, and policy servicing. We also launched an AI-powered financial planning feature that generates personalized family financial plans tailored to each household's specific production needs and gaps. On the advisor side, we equip our agents with an AI-powered assistant that enhances productivity across key workflows, including intelligent lead screening, automated interaction summaries, AI-enabled outbound calls, tailored insurance proposals, and advanced customer analytics. We also integrated our AI capabilities with our extensive knowledge base to assist insurer partners and optimize the products. Overall, these initiatives produce measurable cost efficiencies and productivity gains. Our total operating expenses decreased to R&B 175 million in the first half, resulting in an improved expense-to-income ratio of 24.2%. Our international arm, Pony Introtec, delivered another strong performance and remained the key pillar of a long-term growth strategy. In Vietnam, global care recorded an 11% year-over-equity in the policies issued during the first half, driving a year-over-year surge in in gross written premiums and revenue growth of 45% and 24% respectively. The local IFA business also made notable progress, with the number of policies issued going 48% year-over-year. In Singapore, we focus on serving high-value customers with increasingly sophisticated protection, wealth allocation and long-term financial planning needs. We continue to broaden our portfolio of differentiated and customized products in partnership with leading insurance, strengthening Singapore's role as an important regioning platform for delivering integrated protection and well-met solutions. The expansion of Pony's regional footprint serves as an important driver of revenue sophistication and creates additional growth engines for Quasar, supporting long-term shareholder value creation. Looking ahead, we're well positioned to capture emerging opportunities across China's evolving insurance landscape and a broader Chinese market. Domestically, persistently low deposit rates are expected to further drive household allocation toward higher yield savings and participating insurance products. While government initiatives to strengthen the multi-tiered protection system are expected to sustain demand for commercial insurance and support the industry's long-term development. Beyond China, Pony is leveraging the proven business model and proven AI capabilities to deepen its presence across key Asian markets. These initiatives together are strengthening the resilience and diversification of our growth and laying a solid foundation for sustainable long-term value creation. And with that, we'll open up the call to questions. Thank you very much. And over to you, operator.

Thank you, ladies and gentlemen. To ask a question at this time, you will need to press star 11 on your telephone and wait for your name to be announced. Again, please press star 11 to ask a question. And our first question coming from the line of Thank you so much for taking my question.

Can you talk a little bit about the AI investing that you are doing? And can you give us some tangible examples of the returns you are seeing from that investment, whether through lower customer acquisition costs or higher conversion, improved agent productivity, or lower operating costs? Like, where do you see the most benefits from the AI investment that you're doing?

Thank you Ashi, and thanks for joining for the first time. I appreciate your presence. With respect to the AI investments and the key value equation that we are trying to achieve, I think we did go over quite in some detail just now in the opening remarks. But just to summarize, I think the key goals that we are trying to achieve here, obviously the first phase of AI adoption mainly is really to turn our organization into more of an AI native structure. And typically, that would mean that automating workflows, right, and optimizing the workflows and deploying AI agents across the value chain. And that typically means that lower operating costs and improve operational efficiency. So that's the first phase of value creation. And I think we have demonstrated that in the operating expenses ratio. We have achieved initial success in that regard. The second phase that we're now pushing is demonstrated in the front end, which you have alluded to in terms of lower customer acquisition costs. And in a way, it's demonstrated by the increasing amount of self-directed policy purchases that's being addressed by AR consultations in our mobile app. And that's also leading to improved conversion rate and higher agent productivity because with the same number of agents, we're actually producing more, you know, a premium growth from the same headcount. So that's the phase two of growth and value creation that we're driving right now.

As you grow your revenue in international markets, can you talk about the profitability in Hong Kong, Singapore and Vietnam individually? Which markets are already profitable today and what does the path to consolidated margin expansion look like as international becomes a bigger part of the revenue mix?

Sure thanks for the question. In terms of the international markets we have to say that you know in the key markets of Hong Kong for example we are already profitable since last year and that's been contributing to our bottom line results. Our Singapore business has just started since the fourth quarter of last year is still ramping up but we are we're expecting to also drive possibility from that region this year in the full year in Vietnam we are almost there in terms of the possibility Vietnam is still in the high growth phase as you can imagine albeit it's still not EBITDA positive but then the loss is actually quite minimal be keeping that the low absolute number of the business compared to the broader group. So overall international markets are profitable, combined with the Chinese business which is also profitable. The main reason for a relatively low net profit margin is due to the fact that we continually invest our cash flow into AI, close to 10 million US dollars pretty much last year and this year we're looking around the same number in terms of operating expenses in the R&D front and also on CapEx. So I think that would answer your question. yeah no that's that's really helpful thank you so much and lastly can you just discuss a little bit about your capital allocation strategy and will you be needing to raise any cash in the next 12 to 18 months great um in terms of travel allocation i think uh we just touched on that uh just now ai is fun and center in terms of the organic investment in the group's organic business. In such a international market, we think that right now we are happy with what we have. So further new market is not likely in the next 24 months. And we just want to scale the existing businesses to a more healthy level. And I think, what's the third part of the question? Sorry, I missed the last part, sorry.

Yeah, will you be needing to raise more capital?

Oh, we are unlikely to be raising capital at this stage because we still have decent cash on balance sheets. Until we identify some major transformative M&A opportunities, it's quite unlikely that we'll be tapping the markets given the relatively low valuation right now of the company.

All right. Thank you so much. Thank you.

Thank you. Our next question coming from the line of Amy Chen with Citi. Your line is now open. Amy Chen, your line is now open. Please check your mute button.

Hi, thank you for giving me the opportunity and congrats on another resident quarter. My question will be regarding to mainland Chinese visitor business in Hong Kong. After the news flows regarding Decree A37 and the latest media reports citing that local tax authorities are charging 20% tax on product dividends, I'm wondering if Huiza has observed any changes in terms of customer demand on the ground, both in terms of overseas business as well as domestic business. Thank you.

Thank you, Amy. so just to clarify you your questions on the impact from the recent registry documents and news article on the MCB business so so I guess the quick the quick answer to that is based on what we are seeing in the month of July and month today in August we see that the overall market sentiment and momentum, particularly in Hong Kong, for example, it's still robust from our own numbers and ourselves from our channel checks in the market. We do think that there will be some degree of impact on certain customers' mindsets with respect to the 837 degree. And the media article that you mentioned, the context of the article is actually nothing new. It's actually something that has been long term written in the relevant regulations in China. So it's a matter of future and potential endorsements of the relevant tax clauses in that document. So we do believe that the underlying customer demand or the logic behind overseas or offshore insurance purchases still remain intact given the attractiveness of the undying asset allocation for international products provided by insurers in Hong Kong and Singapore, for example, which gives a diversified global strategy for the consumers. And the prevailing differential in the interest rate environment should also continue to underpin a strong demand for offshore products.

Thank you. And I am showing no further questions in the Q&A queue at this time. I will now turn the call back over to Mr. Kenny Lowe for any closing comments.

Thank you, Ophelia. On behalf of the Hoyasus Management Team, we thank you, everyone, for joining us on this conference call. And if you need further information, please feel free to connect us through our email address. This concludes the call. Thank you.

Ladies and gentlemen, that's going to go to our conference for today. Thank you for your participation. You may now disconnect.