Q3 2020 Huize Holding Ltd Earnings Call
Ladies and gentlemen, thank you for spending Bonnie and welcome to Crazy holding and Limited's Third Party 2020 earnings call.
It's time, all participants and where they sit on.
I think and managements prepared remarks, we will have a question and answer session.
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He's each Investor Relations director. Please go ahead.
Thank you operator Hello.
Hi, everyone and welcome to our third quarter was 20 Clunky earnings conference call the financial and operating results were released earlier today, and that's really a dollar <unk> and <unk>.
Yeah, It looks like a small oh newswire before we continue and I like to refer you to our safe Harbor statement in our earnings press release, which also applies to this call and not be making forward looking statements. Please.
Please also note that book these non-GAAP measures to day, which are more thoroughly and ignore it and you release and filings with the FCC joining us today, our own founder and CEO Mr. assets and do you see.
Steele Mr. elite young CFO, and Mr. meantime, shout and cozy, if well be Serrano tells me.
It's still not well start the call by providing an overview of the company's performance and operational highlights for the third quarter and Btwenty Mr., Tim Robbins per flight details on the financial results for the period before we open up the call for questions now.
Now I will turn the call over to Mr. Mike.
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Hello, everyone and thank you all for joining Quaid said started quicker Twentytwenty Our next conference call.
I try not to gradually recover from the cooking 90 epidemic and year over year growth rate of per capita disposable income repurchase from next to share policies in the third quarter of 2020. According to the National Bureau of statistics.
And the same time, we continue to observe a steady increase and people to insurance awareness I smell and increase their adoption and online purchase of insurance part that site consumers and.
Like off the industry and broader economies, we called free trades, we continue to focus on executing our unique long term insurance products strategies, I, smiled, and or leading beach talk yourself, and then and capabilities.
I think without we achieved double digit year over year growth in both total GWP and total operating revenue.
Great quarter quickly Heis doing.
During the quarter total g. the boquete facilitated on that platform increased by 41 point your per cent year over year to RMB 779 million, while total operating revenue increased by 22.9% yield from here you are and be 300.
48 million once again exceeding the high end of our previously announced guidance range such growth and profitability. During the period of uncertainty continue to showcase the viability of our business model a small lysa advocacy all four strategic focus on cash.
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It works and fighting additional updates on our quarterly business profit I would like to first discuss why we focus on long term insurance plus assets during.
During the third quarter long term life and health GBP accounted for 92.9% I told you that the peak a ratio which has stayed about 90 per cent for the past four consecutive quarters.
And just in time due to the P. foot long trend health insurance increased by 47.1% yield figure to RMB 649 million and our ability to men turn such strong right. It's largely driven by our first mover advantage in the long only long term insurance sales.
Where we have sworn many competitive strength in brand influence and professional capabilities, which we believe are also difficult for other industry players to replicate.
Oh flow test on long term insurance process has that number and sensors.
On the wash and long term insurance profit generates higher commission rate I smell like did they carping revenue be out policy revenue on the.
Are there and our long term process flow test enable us to want more longstanding relationships with clients and touch say the other client loyalty.
Arpus systems racial and so long term life and health insurance, and 13 and 21st and most of the policy remained stable at 94% and.
Relatively high level and the industry.
Hi, client retention rate per flight hour and the opportunity to Max and that's customer lifetime value and Apple to explore and serve the evolving protection needs fine in different stages of life.
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In line with our focus on developing long term insurance process. We also concentrate on building our core competencies.
As a parent nearing share and ecommerce platform in China, we have accumulated a massive amount of multidimensional like data and transaction data over the past and 14 years.
That harnessing our superior race day time resources with the Apple acute and develop more comprehensive climb portrait and point more precise links management practices and deepen our understanding of claims that they face insurance Nate price I see signs mechanisms and risk adjusted pricing.
To provide clients with a more valuable and customized insurance products <unk>.
For example, we officially launched a critical illness insurance process refer to your assets are we suites soon after its launch this process they can exceed any popular and.
September Star, we launched that popular health insurance costs, and Oh Twentytwenty Awards. This was that six times that our Darwin Krish called Aon a series of insurance process, that's been such and the words in the industry.
Illustrating the theorist exception non vegetation and well that's all from right product that they sign capabilities.
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Value and positioning also continued its true can you share in the third quarter, what somewhere in September Quaker outlets, including eight in Korea, and China Digital insurance agencies, Twentytwenty lease and book group among the first year.
Alpha of companies in terms of innovation capabilities and market performance.
And with the past two years boy.
Oh and full worth we firmly believe that the market, but increasingly understand importance on life insurance products and their service channel as well less than steady trend of separation between insurance underwriting and distribution in the industry and China insurance markets.
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Oh gosh, we are eager to capitalize on these opportunities and a sense or development with the wind at our backs.
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I would also like to talk about our future development strategies many.
Many Allstate insurance claims would have served come from families in first and second tier cities with high customer lifetime value potential we will be rolling out offline service centers and so that's the first and second tier cities in order to better serve their differentiated seems fine.
The higher quality products, and premium insurance services, and others to maximize big customer lifetime value.
For the next three years, we will take the opportunity to invest in NAV comprehensive strategic upgrades for the quarter equates a platform actually eat flow into the post coffee era, where consumers see mines and for that innovation and insurance process and digital check from.
Nation, offset and show that purchase and surface there and.
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Sure and process and service cloud platform, incorporating cost technology, such as cloud computing, they stay kind of net lasik and artificial intelligence we emphasize.
And to stage, the upgraded platform well accelerate the integration of online and offline channel, whether empower upstream and downstream partners and not ecosystem with data and technology and are not really enabled the industry and Oh to rage insurance Haas collide.
In Austin, I really I'm from fight and with a smaller range and personal life insurance process and some sales.
Out their entire life cycle more efficiently.
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That concludes my prepared remarks, Lucky day, I will now turn the call over to our CFO Mr. wrong, Okay, and he left her fight and no. So few of our key financial highlights for the quarter.
And human tomorrow and areas and Hello, everyone.
In summary off with whatever we sell through a very clear recovery trend.
And try to ensure that the industry as well.
I think the underlying book.
Actually the quarter on quarter growth across the long term and children prospects from.
And then <unk> committee resumed and to message from activity pick up speed.
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And payment of corporate and other countries.
In particular during the quarter, we have achieved record quarterly hogs.
Book pretty Tw People's computers and flow at all total operating revenue.
Well Q3, we added 259000, new insurance companies.
And you know who accumulated from and she was caused from for the moving.
Do you feel that people from Peter <unk> water total RMB 169 million.
For the quarter up 41 from Jupiter and year over year and.
From sort of the building and sequential basis.
GBP contribution going through lock is approximately long from health and welcome Mark.
Like 47 from 1% and 40 Microport was going to be stuck with the year over year.
In particular in Brazil from your premiums loves and help a lot lachance pacritinib and increased by 68, and one second quarter and water.
I'll be to RMB 250 million, which are counseling from a deep within a pool you premium from RMB 300 could be reported quarter.
The strong growth will be put value attributable gold beautiful filling critical illness products following suite, which we acquired the golf and seamlessly life insurance.
It's a simple <unk> launch or contribution from growth in healthy people codeevolver future and products.
Like and short partners, which increased from 60 watches and you aren't before and anybody six moving.
And I comic book could be fixed percentage of total Q3, Peter computed three and a quarter.
This metric continues to demonstrate the peeping and good from rehab Wall Street insurance companies partners as we continued to be the strongest and the ratios from a long from insurance companies.
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And this is the versus average you might focus and during the quarter.
Okay and got revenues.
Total operating revenue book Q3 was RMB 348.5 million again, a record quarter and hard.
A free to play license and year over year, and alcohol and I've gotten pretty good we get into the market you know Q2 results.
<unk> revenue wouldn't put very good and body, including book income.
41 from two does it include growth you got to be peoples and through the through the quarter.
GAAP revenue for Q3, and quick, but we book of and year over year, RMB 200, free Bullpens and <unk> billion.
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Revenue growth.
That makes sense and fourth quarter, and quick 40 people markets and year over year to RMB could be silicon Valley and go from there.
Value beautiful can be incredibly belfield and walking headcount.
12 months, it's broken English and cutting walking from during the third quarter.
Great and like 78% year over year as we look at the increase spend and why would be improving industry fundamentals long people will be called read and Connie.
Yeah and expenses for the quarter between the Olympics, because and year over year R&D pretty from like me.
Decrease was primarily due to the decrease in share based compensation expenses, which amounted to RMB 2.8, and moving the third quarter.
Compared to RMB 10.5, and maybe in a pretty good view.
Excluding the effect and be people, most year and making to free GE and expenses grew about three weeks and I'm from once again year over year are between <unk> and <unk> million.
R&D expenses for the quarter grew by 41 years and year over year RMB 11.5, moving assets, we continue to increase our head count.
And we will see the and other things and I believe the Onvia.
During the third quarter, we achieved GAAP and got Clobbered was RMB 14.7 million, while non-GAAP net profit for the quarter was arm.
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For moving.
We continued to make people book liquidity and a strong financial position.
We reported a net operating cash flow R&D somebody to Libya, and it'll be quota and we had a combined balance of cash and cash equivalents, okay, and we can see from someone moving.
Now with regard to our Q4 outlook. We currently expect cool operating revenue to be in the range of RMB wind and Threed printing and could be moving.
Before we got the sex and <unk> current and preliminary views on and walk it and upwards and the conditions.
Perfect and change Twop reserves and certain people, including those related to the ongoing cool good and gundy globally.
This concludes our prepared remarks today, we will now open up the call security. Thank you operator.
Ladies and gentlemen, we will now begin the question and answer session.
And you stressed the question you suppress trial and when you're talking to them and it's pretty easy to be announced and can be stuck and its own requests and spread sounds and Ashton.
And asking questions. Please state your question in Chinese first they need you can you repeat your question and English for the convenience of revenue on the call.
The first question comes from a share into from from Citigroup. Your line is open.
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Insurance and I'm really not oh, something like snow I'm, rather growth or profit generation, but claims Oh pets. Once you learn and how you won and also I'm interested to know what are your arrangements and accretion regarding to the expenses Oh, no <unk> no principal share.
Well, that's since we understand the lockup crash and Mike. Thank.
Thank you.
Okay, great. Thank for the questions and and are looking to repurchase here and I'll take the book person and first regarding the full year outlook before I get support from the premium.
Total business I couldn't give what we see and awards and for hobbies aggressive so it'd be celebration and sends a wall industry growth and as a result I think.
<unk> expenses all those actual net.
Okay and trend along with the Industrys opinions and second half the year and you can see that though sequentially. There was a relatively strong GAAP results.
And your business and the fourth quarter and and fourth quarter operating there is succeeding and a seasonally weak circuitry and seasonally weak season, we are you seeing or where can be people moving from going to the fourth quarter as you know threat and more consistency. So we zone. So walking away from the full year I think it will be graphics and flat sales as last year and with a few agreement.
And obviously it looks to be able to show up.
And you are going to start school and halt and as we've done them existing improving and its like a copy you.
The second question was regarding the job growth.
From focus a little bit here I think that and the question was video and whether we would be a pro and housing and the overall top line growth versus from nickel and ability I think that flow for other things and you said that you would be you force schools lots and so you'll continue to execute on our existing Oh and the strike zone on long term product which was.
And just keep it free improvement next year, given the market conditions have been Ah Golden reward would be going into a new ER and part of certain assets and as you have moved and on gold and we bought are definitely scared about and you would be so savings really the problem.
And next year, and Luke and looking to copy of the contribution from this new product or vertical Oh from 20 because of a total and that's why people next year from savings within the products and public <unk> annuity book, which we've seen and also agree a swap book focus from these insurance companies.
As a whole the the new year launch and initiative.
That's good questions regarding and I feel that I.
No I agree invensas, and such and post P. and lock up obviously, we as a company we've refocused on offices or execution, but we maintain good day and ER and the consistent goggles, we call existing showed it and publicly that losses are weighted and we believe that both from the shareholders have been indicating to us that they are but they.
They remain very covered and your long term growth potential and there will be a good would be opportunities or maybe I'm gonna package and pool book or some up and shoulders and wouldn't be investing or whatever like go up and will be to be total garlock because.
And and should there be another target these will be in close coordination between business and looks whether there will be holding walking off what leads to Cook book, what is could pencil on what and I think it looks like a public and then.
Thank you very much fun.
Once again, if you wish to ask a question. Please press star one on his talents and and between me and keeping announced if you reach to and Tony request. Please press the pound or asking.
And asking the question from state your question in Chinese free they.
And and Japan, you beat your question in English and convenience and for everyone in the call.
[laughter], there and no further questions at this time I'd like to hand, the conference bathroom and Schmidt said closing remarks.
Okay. Thanks for joining the call today and are we reported started and results and good signs and during the period and our fifth and healthy everyone. Thank you very much.
Ladies and gentlemen that from consumer conference for today. Thank you for participating you may now all disconnect.
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