Q2 2021 Huize Holding Ltd Earnings Call

September 9, 2021

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Ladies and gentlemen.

Paul He is due to begin shortly until such time your lines will remain on music hold.

We thank you for your patience once again today's conference call is due to begin shortly.

Until such time your line is a meaningful musical.

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Ladies and gentlemen, thank you for standing by and welcome to the <unk>.

Holdings limited first half and second quarter 2021.

<unk> conference call.

This time, all participants are in a listen only mode. After the management's prepared for.

Our remarks, we will have the question and answer session.

This conference call is being recorded and webcast.

A replay will be available please visit.

IR website at IR Docs H E B.

<unk> dot com under the events and webcast section.

I'd now like to hand, the conference over to your Speaker host for today's conference Mr.

Jeremy.

That leaves US Investor Relations Director. Please go ahead ma'am.

Thank you operator.

Hello, everyone and welcome to our earnings conference call for the first and second quarter of 2021, our financial and operating results were released earlier today and are currently available on both our IR web site and the new Flyer.

We continue I would like to refer you to the Safe Harbor statement in our earnings press release, which also applies to today's call.

Making forward looking statements.

Also note that we will discuss non-GAAP measures today, which are more thoroughly explained in our earnings release and filings with the ACC.

Joining us today, our founder and CEO, Mr thinking model.

Mr. Li Gang Ho.

<unk> made some income shell and co CFO, Mr. Omar Khan.

Mr. MA will start the call by providing an overview of the company's performance and operational highlights for the first half and second quarter of 2020 one.

Kevin will then provide detail on the financial results for the period before we open up the call for questions.

I'll now turn the call over to meet them.

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He can pull a chunk in the D C.

Hello, everyone and thank you for Germany for the first half and second quarter of 'twenty 'twenty. One earnings conference call. We achieved record results in the first half, which is particularly commendable different challenging environment. We currently face.

Oh boy well with some premium facilitated on our platform increased by 72 airplanes, 7% Europe year to RMB viewpoint.

Well about the industry average growth in the first half.

Total operating revenue really thoughtful to RMB $950 million in the second quarter, most life insurance company reported year over year decline in.

Q2 seasonality from cancer, So I think the gaming up in Europe.

The statutory Daphne Tsang Haines of critical illness.

Nonetheless, we have demonstrated strong resilience in our operations. During this traditionally slow season with total DWP amounting to RMB $617 million in the second quarter, but Danny of double digit growth year over year.

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Thanks, Sean Kumar from TJ.

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A car from the robust growth in total if you could repeat and operating revenue.

The accumulative number of insurance clients and insurance clients wait.

Seven 2 million and $16 three.

$63.0 million respectively.

I would like to further emphasize the differentiation of our user profile and how this could benefit our business.

In the first half about 72% of long term insurance customer lift from higher tier cities with an average age of 33 years old.

In terms of first year premiums the average ticket size of our long term insurance products at Manhattan at a relatively high level of RMB 1006.

I'm curious and 32 in the first half while the average ticket size of our savings insurance product has reached RMB 28439 in the first half.

Moreover, in the first half our persistency ratio for long term my son Health insurance in the 13th and 20 States have maintained at about 95%. We believe these indicators highlight the strong thickness and high lifetime value of Quickbooks customers.

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San Diego.

And your first half teed up a pea for lung from life and health insurance products.

At 495, 3% of our total T to repeat this not only demonstrates our competitive edge in both sales and service capabilities among China's online insurance platform.

Also to our prominent position in long term insurance product after years of operation.

Our strategic focus on distributing long term insurance product can help extend our reach to customers who buy our it services.

And multi band mentioned all user data and increased precision of our user profile will be strategically important for us to optimize our customized product improve our service capability and build our ecosystem.

At the same time, we have further extended the depth and breadth of our product coverage with a diversified product portfolio, including protection savings insurance and retirement planning product.

That brings the entire customer lifecycle, thereby having the value of our existing.

15 market.

Flooring the growth potential from new market.

It's worth mentioning that our savings insurers, including in Europe, and long term life insurance contributed to 23, 6% of first year premium in the first half increasing from 17, 1% overdose deaths here at last year.

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For the love to be able to handicap, the new shampoo CW users.

Product innovation is one of Quaker Houghton.

Tuesday.

In the first half we continue to make progress on new product design and innovation.

As a result tw.

Keith Koci sell insurance products accounted for 55, 1% of total GDP, increasing significantly by 14 three percentage points from the cents per share last year.

In April the C D RFP issued the guidance.

Site personalization differentiation and customization of insurance products.

Now the other customization insurance products will be a major trend moving forward and we believe that you should take capability is the key to drive product customization.

For example, we have recently partnered with Sun life, Everbright life insurance launch Everbright Smart choice.

And you didn't call it out.

When developing this product we identified numerous 10 points in the market I'm going to stop them. One by one who are long accumulated users data and machine learning algorithms.

In time, we used AI technology to estimate the combination of premium rate and terms and conditions of the products, but that's C O climbs angels.

By creating a comprehensive and innovative product that's been out in the market.

Finally, our online marketing strategy has significantly reduced the promotion.

All of our products.

I think our price competitiveness over other messaging offline product.

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On top of product customization, we are also committed to enhancing our service capabilities.

We believe that the insurance industry has moved to a quality and sustainable growth phase.

And the traditional business model of relying on numerous insurance agent calculates an inflection point.

The future competition in the industry Russell on solving problems and creating value for our customers.

The beginning of the year, we have been exploring and building a.

It is service system to provide users with online consultation early cancer screening and other house management services.

In July with partners with songs road to launch in Europe, South Broward Cryopreservation ACA about it it is service to meet the demand for high end diversified health care services.

Millennial customers.

We believe such services throughout the duration of the policy well not only increased the cost competitiveness of our platform in the marketplace, but also help us to create longer kind of engagement with our users and maximize lifetime value.

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Did you Julien told Walnut Hill.

Bill.

Did you call ice age and technology other core strength for 50000 of their equation three era.

Really that embedding technology.

Data analytics and AI into key business processes.

To improve the operating efficiency and risk management capability of our platform.

Our calculations show that a L. Proposer application has many passport to save up to 83% of our consultants time and the average time needed to complete that transaction has been capped.

Our technology has also been critical to our platform regulatory complying.

With our AI deep and quality assurance system, enabling us to achieve full cooperation of components conversation infection.

L P technology base.

This has significantly improved our quality of assurance efficiency.

Over 80 times and accumulated over $200 million line of conversation data.

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Culturally.

Finally, I would like to share with you an important milestone in 020 integration strategy.

We have entered into a Mou with shelf life in general.

A controlling interest in our company.

We believe shelf life in general has accumulated deep customer insights in the mass affluent lifetime health insurance market.

Laughs fishing is robust sales team of professional industry veteran.

Genesis coverage and the experience of serving clients.

Orange life in general.

Our last mile offline presence, allowing us to provide products and services, both online and offline.

Well further improve their market prices are.

My product and enhance the brand awareness of Quaker.

We intend to utilize our digital capabilities to empower chance life in general accelerating the establishment of our Oh, Okay insurance product and service platform coffee sales management product offerings and bikes and support.

The interesting Mexicali income that efficiency up 10 days in our insurance operation.

I look forward to the business expansion and realizing revenue growth synergies from this mutually that someday, it's mutually beneficial integration.

Does all that Kim woman that's helpful. Rob Goodbye Dodged honestly, yes, I got you.

Can you tell us what you do.

This concludes my prepared remarks for today I will now turn the call over to our CFO, Let me start rolling off hand for our profile.

<unk>, an overview of our key financial highlights for the first half and second quarter.

Thank you I missed them I inherit and hi, everyone.

We're very pleased to report instead of record first half.

<unk> financial results.

In terms of both put out gross written premiums for W. P.

So as I said on our platform.

As far as total operating revenues.

In the first half of 2021 GW.

TWC amounted to RMB, two 1 billion.

<unk> got very strong growth of 72, 7% year over year.

First year premiums or F Y P accounted for RMB, one 2 billion.

Or 57, 9% of total GW piece.

Which has doubled from the same period of last year.

Renewal premiums accounted for RMB $868 million or 42, 1% of total AWP.

Representing a year on year increase of 45, 4% in the first half.

And that's what the half year Mark.

We have already achieved over two thirds of the total DWP for the entire year doesn't 'twenty and almost 80% of total revenue for last year.

In the first quarter of the year.

Recall that we had a couple of lies a tremendous market demand for critical illness products by consumers by picking up one of the more aggressive approach on marketing spend and customer acquisition strategies.

Which has been sold it in a very strong <unk> growth in FY <unk> and Q1.

Whereas the acquisition of many high quality users onto our platform.

With average <unk> per policy of over RMB 4000.

For the second quarter as we have expected it to be a relatively slower quarter due to seasonality as a result of the jumpstart sales campaigns in Q1.

And also expect a softness in our critical illness product segment.

For the absorption of pent up demand in the first quarter.

Therefore strategically focused on our marketing and distribution of savings insurance products in <unk>.

<unk> are customized and dominant life insurance.

And then annuity products, which we have co developed with our insurance carrier partners.

As a result of our strategy, we have maintained a healthy growth in total DWP of 12% year over year to RMB $668 million in the second quarter.

This was driven by the robust year on year growth in renewal premiums of three 2%, which again is a testament to the high quality of the users that are <unk>.

<unk> is able to attract and acquire through our marketing channels.

As evidenced by the consistently high at 13 months and 25th month persistency ratios of over 95% that we have achieved during the second quarter.

And so that's why P. Although in the second quarter, we saw a modest 5% decrease year over year, mainly on the back of a slow pickup in critical illness market demand.

We're still able to drive very strong growth in the distribution of savings insurance products, which accounted for 38, 2% of total FY piece distributed in the second quarter.

Another highlight with respect to the savings insurance product segments.

Is that 31% of the FY, Pete and savings and show was contributed by repeat purchases by existing users on the platform.

Which I can't speak to the high quality of our 7 million plus user base.

And in particular, the high LTV lifetime value potential of our users given the high average ticket size of over RMB 28000 that we've achieved in distributing all savings insurance products.

We are continuing to see very strong momentum in our savings insurance products segments going into the third quarter.

Which again will greatly complement to our overall FY <unk> top line growth for the rest of the year.

And also it's becoming an increasingly important contributor to our general diversification in our revenue and overall product portfolio.

Now turning to the financial line items.

Total operating revenue for the second quarter was RMB $224.0 million.

This is a slight decrease of 7% year over year.

The decrease was primarily due to the 5% decrease and that's why Pete participated as well.

We mentioned earlier, which totaled RMB $303 million for the quarter.

But offset by a strong 32% increase in renewal premiums, which amounted to RMB $372.0 million in the second quarter.

Operating costs for the quarter increased by 8% year over year to RMB $152 million.

Which is primarily due to increased customer acquisition channel costs.

So the expenses for the quarter increased by 62% year over year to RMB $86.0 million.

Mainly attributable to increased salaries and employee benefits due to the increase in sales and marketing head count.

As far as an increase in advertising and marketing expenses.

Which is offset by a decrease in share based compensation expenses.

So I think expenses as a percentage of total operating revenue for the first half however.

Has decreased from 24, 9% last year to 16, 2% this year, representing a four seven percentage point improvement year over year.

G&A expenses for the quarter decreased by 7% year over year to RMB $48.0 million.

Primarily due to a decrease in share based compensation expenses.

G&A expense to revenue ratio also decreased to 99, 9% in the first half this year from 17% in the same period of last year.

We're starting in a 741 percentage point improvement, which is a reflection of the overall operating efficiency and leverage that we have demonstrated.

During the quarter, we have continued to invest heavily in that.

Technology upgrades for our core platform and R&D expenses for the quarter grew by 104, 3% year over year to RMB $32.0 million.

Which was mainly driven by an increase in technology investment and the related number of R&D personnel increase.

Overall for the quarter, we have recorded a GAAP net loss of RMB $77 million.

We continue to maintain a robust liquidity and a strong financial position.

As of quarter end, we had a combined balance of cash and cash equivalents of approximately 67 million U S dollars.

And coming to our official guidance.

We currently expect total operating revenue for the full year 2021 to be approximately RMB, one 7 billion.

Which represents approximately a 40% growth rate year over year.

This forecast reflects the company's current and preliminary views on the market and operational conditions, which are subject to change caused by various uncertainties, including those related to the ongoing COVID-19 pandemic globally and also any kind of wave of infections in China.

With that that concludes our prepared remarks for today's call.

I'll now turn the call over to Q&A session. Thank you.

Thank you Sir.

Ladies and gentlemen, when asking the question. Please state your question in Chinese first and then repeat your question in English for the convenience of everyone in the call.

If you wish to ask a question. Please press star one on your telephone keypad and wait Seo needs to be announced if you wish to cancel your request. Please press the pound or the hash key.

Please note it is star one on your telephone keypad, if you wish to ask a question.

We have the first question from the line of Michelle MA from Citi. Please ask your question.

And kind of how it will go Washington, if I could oh, thank you for Michelle.

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I keep having some fun with it.

Is that what they're doing events.

So my first question is regarding to our recent directory a crackdown on Iraq.

Irregularities in the online insurance space. So just wondering what's the impact on our tubing channel.

And the second question is about our.

So I think our strategy.

We have obviously, a large amount of cash on balance. So do we have any back in new England change here.

Regarding <unk>.

Future business, our strategy and especially when you mentioned that before that we want to know what you think channel.

Previous lethal and still.

So our going forward. Thank.

Thank you.

Okay. Thank you Michele it's Ron here, let me take your questions.

So the first question regarding regulation I think the I think the market has obviously been quite concerned overall not just in our industry, but also across various sectors on the recent sweep of.

Government regulation is coming out to the market.

I think in particular with relating to the insurance industry. All of these into the insurance industry, particularly where we are participating in the recent number 80.987 document.

Content of which that's really not any new regulations, but say, it's more of an emphasis on the implementation timetable for the underlying regulation that was actually he would leave in December of last year, and what's coming into effect of.

This February of this year.

So overall of course I think Fraser is.

Our long established.

Platform <unk> is a track record we are very embracing of this new regulatory regime in development because it's definitely good for the overall long term sustainable growth.

The industry as a whole and it's one of the more leading and compliance platforms in the industry I think that we see us as a.

A beneficiary of the regulatory developments.

Particularly with.

Pertaining to the.

Points relating to regulation I think that the regulators are more focused on selling activities by platforms.

For Sandoz sales of insurance products non compliant operations during the business processes and so forth.

Given that we have been adapting to the changes since last year or late last year, we have already.

Picking in a complete and comprehensive review of our operations. So that we have established a rapid rules and policies with respect to our own self operated activities as well as the other channels that we cooperate with to make sure that all the contents to our marketing materials that.

It will be delivered to the marketplace, which will be consumed.

I'll wrap up to users to be compliant from a regulatory standpoint.

And also I think that on the best selling or pricing perspective, because that we have always been more focused on the.

Higher than the long term health products.

We are less.

Involved with the short term medical reimbursement kind of insurance products, where I think both of them are selling risk may be volatile too. So I think that overall as a conclusion I think that we are very well coped as a platform to manage to it as regulatory changes that we don't see any particular material.

On the business as a whole.

So going on to your second question on the cash balance and the potential use of this cash resources I think that we have obviously just announced the <unk>.

<unk> and life in general acquisition, and overall that will be a very important element to accelerate our online to offline integration strategy as is.

I'll feel better.

And in his prepared remarks.

Also to make sure that we have.

Being able to deepen our engagement with our customers and to able to generate more lifetime value.

The addition of the offline coverage or in person interactions with these customers.

M&A will definitely lumpy.

Areas, where we can deploy our cash resources.

Secondly, I think that we're also very focused on implementing and executing on our new open platform strategy, which we are still in the very early stage, which will require additional capital with respect to increasing.

Our investment in the core platform of technology and that is reflected in our continued investment in R&D as teams.

We have lifted after the IPO.

And thirdly, I think that will also be increasing investments in our branding and marketing.

Further improve our <unk> business and to be able to generate more traffic to the platform organic basis.

I hope that answers the questions Michelle Thank you.

Oh, thank you.

Yeah.

We have seen.

Next question from the line of Edwin from CLSA. Please ask your question.

Alright perfect.

Our.

Our SEC don't tell you.

Okay.

So it's a bit too so when you go why should I as I discussed earlier.

<unk> Joshi.

Somebody in budget sits with Sony.

So you also see Sundar so he sees what sounds great.

Youll see towards related 10-Q.

And so I would take away.

So FY <unk> take rate of what's a gauge it can cause hockey game object tight teeth.

<unk> got a huge amount of leadership that hole.

When they see them.

If I can follow up.

So the Fox deciding following 2008.

Total cost of revenue.

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So.

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Sure.

For a larger portion of that <unk>.

I just want to understand more about the details of the study.

Things shifts in particular, if we opt to calculate the take rate.

30 months denominator at Blackheath, what would be the take rate level for the savings insurance and also.

We calculate the cost of revenue percentage of the brokerage income for the same thing for insurers.

Level, especially if we compare to other type of products like the long term health issue. Thank you.

Sure.

Okay.

And thank you for joining the call again.

So on your question on <unk>.

The latest development R&D savings insurance products I think that first of all I think it's very encouraging to see that we are making headwind headwinds into scaling up this portion of the portfolio not only because of the weakness or softness in critical illness. As we all know the market, but also as a long term strategy for us to extract.

Uh huh.

LTV from my existing users and also we have touch upon the aggressively high proportion of repeat purchases of savings insurance products from existing users. So I think that that is a very good.

A reflection of our overall business strategy is working out fine.

With respect to the take rate or commission rates I think that.

I think to put it simply ticket example for Natus and Dublin life insurance product I think youre looking at roughly around 10% to 20 percentage points commission rate a bit lower.

Daniel typical.

Our customized long term critical in those products, but I think when you get that might also that the average ticket size for this product is quite a lot higher that critical illness products. So I think we've been telling the market and disclosing to the market.

<unk> Ci products, we distribute carries around a 4000 ish kind of RMB ticket size or average, but now we're seeing that the average sale.

Savings insurance product side go ahead, 28000, RMB, so I think despite the relatively lower.

Take rate, if you will but the overall economics accretion to our P&L, although our revenue is actually quite quite promising. So I think that will be the answer to your commission rate will takeaway question.

In terms of cost I think that if you look at our Q2 results.

Versus our Q1 on a quarter on quarter basis, you can actually see that as a five percentage point improvement on our gross margin. So I think that also is partly due to the reasons stated above.

Great. Thank you very clear. Thank you. Thank you Evan.

Yes.

We have the we have the next question from the line of Alan.

<unk> from Morgan Stanley. Please ask your question.

Hey, Jonathan Karl Scherer.

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And those are of a busy chart.

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J codes for sure two data centers. So, it's just going to try and call center.

Central insurance or the Teva shares going forward, especially once you you know at least sort of approaches to trigger shipholding are showing trips unless I wish for that.

I have two quick.

Questions for our for our management today, so first.

Should we treat continue to expect that.

Increase of.

Mix for savings products in the upcoming quarters.

Given that could be a critical illness cells are so pretty weak in China.

Secondly.

So you talked about a lot about the Senate the O to O synergies between their license life at General Agency and your core business could you, maybe just elaborate and give us a few examples. Thank you.

Okay. Thank you Alan Thanks for joining the call again.

So two questions here I think the first question on the proportion of contribution from our savings insurance products going forward in the in the second half. This year I think you're very correct to point out that it's very likely that we'll see increasing proportion of contribution from savings products in the third quarter and fourth quarter.

Due to the overall market sentiment of rounding the Ci products and also having the <unk>.

<unk> right now as a whole it's definitely more geared towards consuming life.

Life insurance and <unk>.

<unk> products. So I think you can also see that we have recently just launched the new retirement annuity product with us in light of it right. So I think that's a very good example of how we are constantly.

Adapting to market changes and also leveraging on our product dibaba expertise to develop and work with our insurance carrier partners.

I think there'll be a dominant life insurance product that we have could be bumpy Hong Kong life, that's been doing very well in the second and third quarter and we are already seeing I think we can also disclose on this call that we're also seeing already sequential growth quite strong growth in this area. So I think we can expect that there will be a meaningful increase in the contribution from savings in the second.

Fourth quarter.

But I think that the critical illness products should come back to life. If you will towards the end of this year. We are also gearing up towards launching a new product in this space.

Probably towards the back end of this quarter or next quarter and I think with the new product launch. We should also be able to drive improved sales in this area given that we will have a more innovative and probably more market for any product design features so that we can encourage.

<unk> consolidates all of our channel partners to market and distribute the new crop.

No.

With respect to the potential integration revenue synergies with the offline agencies.

So I think Joe that we have targeted I think that there's a few things that we can probably be I look forward to I think the most important thing is that we are able to leverage on the offline presence.

To serve our customers on and offline context, but not just that we can feed them face to face we can deepen the engagement with them to understand more about their needs and the family's needs and therefore, you have a more insightful customer profile, which will pick back to our own consultants for cross selling and upselling opportunities.

The other thing that we can also derive synergies from is because the comprehensive suite of products that we have on the <unk> platform. We are also be able to provide to this offline partner on immediately on an overnight basis. So that we can empower them with a full suite of products.

I fully understand typically in China for this regional agencies date, they suffer from a lack of product supply from the mainstream insurance.

At the mainstream insurance companies and also <unk>.

They probably received less favorable conditions.

Treatment from the insurance carriers, so by pumping into the system, obviously began in part and when the product supply. We can also imply empower them on our digital platform and digital tools to increase the efficiency of the offline agents therefore to improve productivity for the on a per agent per month basis. So I think that will be the overall comp.

They are looking at with respect to this acquisition.

I hope that's clear.

Okay.

Yeah.

Thank you sure can we go ahead and move to Mexico.

Okay.

Yes.

The next question.

Great.

Yeah.

Ask your question.

Uh huh.

Thank you.

Stefan please.

Oh, yes.

Thanks for taking time.

Okay.

Sure.

So just income.

Okay.

Yes.

Yeah.

My first question.

Okay.

In our propulsion.

All of that.

What's that.

That's all from me.

Right.

Oh yeah.

Hum.

Okay.

Yes.

Okay.

Yeah.

The second question.

Hum.

The drop off.

Hum.

Online education second.

Second quarter.

Yeah.

Okay. Thank you thanks for joining the call.

Two questions here first question.

About the savings protocol much of the <unk> coming from existing use it. So I think we have actually touched upon this earlier.

We see that in the second quarter around 31% of our savings product is coming from repeat purchases on our existing users on our platform who have purchased a policy with us before.

That's the answer the first question and the second question on the topic.

Cost trend.

With a V. The overall headwinds facing the educating all the AD tech sector I think that what we've seen here is that.

We do not see.

Perhaps we have a very different marketing strategies didn't obligate appears in.

In the public customer that the tech sector and look at is probably not exactly.

You said that we're targeting so we do not see a material or obvious impact on where we see cost of acquisition on our pipeline.

Okay.

Thank you.

Thank you Sir.

This time I would like to hand, the call back to the speakers for any closing.

Remarks, thank you.

Hi, Thank you. Thank you operator, thank you everyone.

So we like him.

Joining the call today, and if you require any further information.

Feel free to reach out to us. Thank you for joining us today.

Yes.

Okay.

Thank you.

Thank you, Sir ladies and gentlemen that does conclude our conference for today. Thank you for participating you may all disconnect.

[music].

Okay.

[music].

Okay.

Yes.

Okay.

[music].

Ladies and gentlemen, thank you for standing by and welcome to the <unk> Holdings Limited first half second quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. After the management's prepared remarks.

Remarks, we will have a question and answer session. Today's conference call is being recorded and webcast.

Replay will be available please visit.

Our web site at IR docs.

H E B E dot com under the events and webcast section.

I'd now like to hand, the conference over that she will speak to a host of todays conference.

Jeremy.

That leaves US Investor Relations Director. Please go ahead ma'am.

Thank you operator.

Hello, everyone and welcome to our earnings conference call for the first half and second quarter of 2021 our financial and operating results were released earlier today and are currently available on both our IR web site and the new Flyer.

Before we continue I would like to refer you to the Safe Harbor statement in our earnings press release, which also applies to todays call, we will be making forward looking statements.

Also note that we will discuss non-GAAP measures today, which are more thoroughly explained in our earnings release and filings with the ACC.

Joining us today are our founder and CEO, Mr Hudson Jean Marc.

Mr. Li Zhang co CFO, <unk>, <unk> and co CFO, Mr Rod market.

Mr. MA will start the call by providing an overview of the company's performance and operational highlights for the first half and second quarter of 2021. Mr. Income will then provide detail on the financial results for the period before we open up the call for questions I will now turn the call over to make them up.

Okay.

<unk> on our Union somebody Yankees, yes, if you do that you probably can't walk away.

Well now you find out that would be seeking golf SEC.

Too much harder on the high up on Asia, you'll achieve island Kuwait.

Somebody can hedge, albeit bottleneck and then B do you guys.

Maybe then Donna.

100 <unk>.

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The shutdown of the Ito.

Cobalt cobalt this usual GCM siobhan.

I can't honestly, yes, sometimes we have for the non.

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Several times you don't lead us again.

They do to achieve that.

Yeah, Paul so they're following from that.

She can pull a chunk in the key events.

Hello, everyone and thank you for joining for the first half and second quarter 2021 earnings conference call.

Record results in the first half, which is particularly commendable different challenging environment. We currently face.

Total operated well.

Earned premiums facilitated on our platform increased by 72, 7% year over year to RMB 221.

Well about the industry average growth in the first half.

Total operating revenue nearly doubled to RMB $950 million in the second quarter, Most life insurance company reported year over year declines in GWG Q2 technologies from Johns ourselves at the beginning of the year.

F series, Daphne Tsang change of critical illness.

Nonetheless, we have demonstrated strong resilience in our operations. During this traditionally slow season with total DWP amounting to RMB $617 million in the second quarter, but.

Danny a double digit growth year over year.

Okay.

So the Gulf will depend on you at.

Do you have to the auto mall.

They did a cobalt.

Sheba outlier.

Now if people can cope with a lot to volatility Hawaiian February which I can actually easily Asia excuse me GAAP Campbell. Please under title VI Europe will watch out, but <unk> got it.

Thanks, Sean Kumar from TJ.

Yeah, you bet and then Chicago Shouldnt.

And do you envision any signs as Anthony.

Sean Mcmahon.

Could that GAAP since you bought <unk>.

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Gotcha.

Good Chad.

A car from the robust growth in total <unk> and operating revenue, our accumulative number of insurance clients and insurance clients like $9.0 million and $16 three.

$63.0 million respectively.

I'd like to further emphasize the differentiation of our user profile and how this could benefit our business.

In the first half about 72% of long term insurance customer lift from higher tier cities with an average age of 33 years.

In terms of first year premium the average ticket size of our long term insurance products at Nintendo at relatively high level of RMB 1332 in the first half while the average ticket size of our savings insurance products at <unk>.

Reached RMB 28439 in the first half.

Moreover.

In the first half our persistency ratio for our long term life and health insurance in the 13th and 'twenty based model has maintained at about 95%.

We believe these indicators highlight the strong thickness and high lifetime value of Quickbooks customers.

John My enhanced <unk>.

<unk> done some balls apd.

And did you ruled against them.

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<unk>.

And finally Youll do the charter Toshiba.

Crucial.

Industrial wood coatings, and you'll watch out.

You what I mean.

Why are you kind of all I need.

<unk> excuse me field frequently by modality.

Youtube Wuxi, well Mccabe will put down a pretty good I mean forget our central Oklahoma.

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Oh.

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Okay sure Tom.

B J.

Jamba net infusion time, Keith you use your tons useful here.

<unk>.

The <unk> the content you would tune yet either under <unk>.

Sean Handoff.

Our San Diego.

In the first half DWP four long term life and health insurance products accounted for 95, 3% of our total catering repeat this not only demonstrates our competitive edge in both sales and service capabilities among China's online insurance.

Platform.

Also to our prominent position in long term insurance product.

There are years of operations.

Our strategic focus on distributing long for insurance products.

<unk> extends our reach to customer to a virus services.

And multi band National user data and increased precision of our user profile will be strategically important for us to optimize our customized product improve our service capability and build our ecosystem.

At the same time, we have further expanded the depth and breadth of our product coverage without the efforts of our product portfolio, including protection savings insurance and retirement planning progress.

That brings the entire customer lifecycle, thereby tapping the value of our existing.

Existing market.

Exploring the growth potential from new markets.

It's worth mentioning that our savings insurance, including in Europe, and long term life insurance.

<unk> 23, 6% of first year premium in the first half increasing from 17, 1% over the same period last year.

I'm the NDA shortly that are looking for and then some.

<unk> will not contribute that Chinese surely you 20 years on body.

You bought your multiple is all about timing.

In <unk> at all.

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Between end point it out.

Sure.

This is dan sounded about and yet still get them.

In Belgium, we shall follow binary Tibor fourth quarter income, while again I mean can we see that stood out you get.

Both the <unk> tier one seems a lot.

Obviously, the volumes I mean, it seems a while downturn thought simple truth.

Our teams are what you would have had volume could you then need of job skills.

Great.

One dog and some bond people the Yamana and income do you want.

Please go easy.

I mean I'm talking about.

What I'm, particularly that you don't want to be.

<unk> gone to them the GCC as you place important well I cannot bouncers third hung up.

Ultimately it seem that I mean should be sure.

We'll miss you.

The only I'm going to then get them into our system.

Cohort either.

Thanks, a lot.

I'll put out there working together all drilling pumps in that theme just kind of.

So on the Cornwall agenda, how that Samsung <unk> talked about some dealers I mean, the people want them.

Hello, Hey, Bill change out the new <unk> users.

Product innovation is one of Quaker.

Tuesday.

In the first half we continue to make progress on new product design and innovation as a result.

Keith were co developed insurance products.

455, 1% of total GDP, increasing Tiffany's company by 14, three percentage point from the Zen payout last year.

In April the CD RFP issued the guidance.

Site personalization differentiation and customization of insurance products.

Cigna's now the customization of insurance products throughout the a major trend moving forward and we believe that inkjet take capability is the key to Jive product customization.

For example, we have recently partnered with Sun life, Everbright life insurance launch Everbright Smart choice.

Ireland and unity product.

When developing this product we identified numerous 10 points in the market and we sold them one by one who are long accumulated user data and machine learning algorithms.

At the same time, we used AI technology to estimate the combination of premium rate and terms and conditions of the products that best fit our clients' increments there.

Thereby creating a comprehensive and innovative products.

And out in the market.

Finally, our online marketing strategy has significantly reduced the promotion of our products.

Enhancing our price competitiveness over other messaging offline product.

Okay.

And then you do it will materially shipbuilder pool, I mean, while materially.

Yeah, Yeah yeah.

Some slowdowns in some turnarounds and knocked on day one.

That guidance about the way that we left from here it seems as though looking recently attended the we don't want to deal with that's one off charges that she enters in.

Sandeep I can't afford it usually wrong.

Well I mean does that kind of fall back in game content for tissue. We can put you won't say shall Linden Evans Akshay and Jimmy <unk>.

Q4, Minneapolis, tpa that going through peaceful yeah, he's the bulk of them.

Mango changing.

So you called out for that product.

As usual when we shrunk in the hip.

He came out of 100 and good partners.

And we will achieve all the.

But time gains that should run around the DC and the new.

Well do you know why kind of similar transaction Shimbun.

Well figured out why the SME Gucci charter.

On top of product customization, we are also committed to enhancing our service capabilities.

We believe that the insurance industry has moved to a quality and sustainable growth phase and.

And the traditional business model of relying on numerous insurance agent has reached an inflection point.

Brother future competition in our industry, we are focused on solving problems and creating value for our customers.

At the beginning of the year, we have been exploring and building a solid service system to provide users with online consultation early cancer screening and other house management services.

In July with partners with some growth to launch immune cell trial cryopreservation as a value added service to meet the demand for high end diversified healthcare subset of millennial customers.

We believe such services throughout the duration of the policy will not only increase the cost competitiveness of our platform in the marketplace, but also help us to create longer term engagement with our users and maximizes their lifetime value.

So the law, but could you fallen sharply the friendliness of that partner like email.

Keith Johnson, you thinking closer to neutral and then carefully.

Sure Rudolf Kwan, Jimmy yield again, mango <unk> shown you that Houston yet.

You can't count on that one.

So far.

Woman that we call interior love Bobby.

Paris and Michigan.

Okay, John do you have a comment.

Sure.

<unk> really change all that you bought.

That hopefully from here.

<unk> and LG that usual wyman their children. She don't you do she cannot be <unk>.

Later on the shameful GAAP.

Sure again, we go to the Charlotte Houston.

<unk>.

Gigi Julien told me he talked to you about the hill.

Did you call out of data and technology other core plan for the development of their quake three era.

We believe that embedding technology.

Data analytics and AI into key business processes will help improve the operating efficiency and risk management capability of our platform or.

Our calculations show that AAF proposal application as many as possible to save up to 83% of our consultants time and the average time needed to complete that transaction has been cast.

Our technology has also been critical to our platform revenue of three complying.

With our AI Super and quality assurance statement, enabling us to achieve full coverage of consolidated conversation inspection.

All key technology.

This has significantly improved our quality assurance efficiency.

Over 80 times.

And accumulated over $200 million line of conversation data.

Did you all that once out they'll go into things out.

Overall, the seasonality can be.

Well my you Xinjiang origin in February you can lose with Kinder and I pay along with the new sugar Cheesecake.

While the challenging Xinjiang <unk> cohort or shouldn't cutting costs, but is there anything I should hand that chunk of aegis.

She position plenty of shelf attendee.

He co founded two or three for the full year.

Downtown one child.

You're going to change outcomes.

No one likes you Baylor.

A change that you can turn to you for them that meet.

Well Chi gala.

I mean that should on the Champs will get Jimmy.

We the Zambian should allow the sturdy with Sunshine country I'm influence Joshua.

Eagle.

Florida, Okay, Kevin Peanuts.

<unk>, which is an unknown budget Jimmy in the children.

But should that will shift and we tell you.

Older now in the quarter.

<unk>.

Gulf will do that.

Finally, I would like to share with you an important milestone in our integration strategy.

<unk> entered into a Mou with shelf life in general to acquire a controlling interest in our company.

The latest shelf life in general has accumulated deep customer insights in our mass affluent lifetime health insurance market.

<unk> robust sales team of professional industry doctrine.

<unk> coverage and the experience of serving clients.

<unk> life in general greatly complements our last mile offline presence.

Holly up to provide products and services, both online and offline, which will further improve the market presence of our customers' products and enhance the brand awareness of Quaker.

We intend to utilize our digital capabilities to empower Chen life and general accelerating the establishment of our ultra insurance product and service platform coffee sales management product offerings and back end support with the.

And should significantly enhance.

Sure.

<unk> insurance operation.

We look forward to the business expansion and realizing revenue growth synergies from this mutually.

Tom this mutually beneficial integration.

Okay kill woman that's helpful. Rob.

So honestly, yes.

But tell us what you do.

This concludes my prepared remarks for today I will now turn the call over to our CFO, Let me start rolling off hand.

It provides an overview of our key financial highlights for the first half and second quarter.

Thank you I missed them I inherit and hi, everyone.

We are very pleased to report instead of record first half operating and financial results.

In terms of both gross written premiums for DWP.

So as I said on our platform.

As far as total operating revenues.

In the first half of 2021, putting the TWC amounted to RMB, two 1 billion, representing a very strong growth of 72, 7% year over year.

Firstly, a premium or FY <unk>.

Accounted for RMB, one 2 billion.

Or 57, 9% of total GW piece.

Which has doubled from the same period of last year.

Renewal premiums accounted for RMB $868 million or 42, 1% of total was at WP.

Representing a year on year increase of 45, 4% in the first half.

And that's what the half year, Mark we have already achieved over two thirds of the total GW for the entire year doesn't 'twenty and almost 80% of total revenue for last year.

In the first quarter of the year.

We recorded we have capitalized on the tremendous market demand for critical illness products by consumers by picking up on a more aggressive approach on marketing spend and customer acquisition strategies.

Which has resulted in a very strong <unk> growth in FY <unk> and Q1.

The acquisition of many high quality users onto our platform.

With average <unk> per policy of over RMB 4000.

For the second quarter as we have expected it to be a relatively slower quarter due to seasonality as a result of a chunk of stock sales campaigns in Q1.

And also expect a softness in our critical illness product segment.

So the absorption of pent up demand in the first quarter.

Therefore strategically focused on our marketing and distribution of savings insurance products.

<unk> are customized and Belmond life insurance.

And then annuity products, which we have co developed with our insurance carrier partners.

As a result of our strategy, we have maintained a healthy growth in total DWP of 12% year over year to RMB $668 million in the second quarter.

This was driven by the robust year on year growth in renewal premiums of three 2%, which again is a testament to the high quality of the users.

That form is able to attract and acquire through our marketing channels.

As evidenced by the consistently high at 13 months and 25th month persistency ratios of over 95% that we have achieved during the second quarter.

As for FY <unk>, although in the second quarter, we saw a modest 5% decrease year over year, mainly on the back of a slow pickup in critical illness market demand.

We're still able to drive very strong growth in the distribution of savings insurance products, which is accounted for 38, 2% of total FY <unk> distributed in the second quarter.

Another highlight with respect to the savings insurance product segments.

Is that 31% of the FY Pete in savings insurance was contributed by repeat purchases by existing users on the platform.

Which I can't speak to the high quality of our 7 billion plus user base.

And in particular, the high LTV lifetime value potential of our users given the high average ticket size over RMB 28000 that we have achieved in distributing all state of the insurance products.

We are continuing to see very strong momentum in our savings insurance product set what's going into the third quarter.

Which again, we're greatly complement to our overall FY <unk> top line growth for the rest of the year.

And also it's becoming an increasingly important contributor to our general diversification in our revenue and overall product portfolio.

Now turning to the financial line items.

Total operating revenue for the second quarter was RMB $224.0 million.

As a slight decrease of 7% year over year.

The decrease was primarily due to the fact that that decrease and that's why Pete participated as we mentioned earlier, which totaled RMB $303 million for the quarter.

But offset by a strong 32% increase in Europe premiums, which amounted to RMB $372.0 million in the second quarter.

Operating costs for the quarter increased by 8% year over year to RMB $152 million, which.

This was primarily due to increased customer acquisition channel costs.

Selling expenses for the quarter increased by 62% year over year to RMB $86.0 million.

Attributable to increased salaries and employee benefits due to the increase in sales and marketing head count.

As far as an increase in advertising and marketing expenses.

Which is offset by a decrease in share based compensation expenses.

So that makes sense as a percentage of total operating revenue for the first half. However has decreased from 24, 9% last year to 16, 2% this year.

Representing a four seven percentage points improvements year over year.

G&A expenses for the quarter decreased by 7% year over year to RMB $48.0 million.

Primarily due to a decrease in share based compensation expenses.

G&A expense to revenue ratio also decreased to 99, 9% in the first half this year from 17% in the same period of last year.

We're starting in a 741 percentage point improvement, which is a reflection of the overall operating efficiency and leverage that we have demonstrated.

During the quarter, we have continued to invest heavily in.

The upgrades for our core platform and R&D expenses for the quarter grew by 104, 3% year over year to RMB $32.0 million.

Which was mainly driven by an increase in technology investment and the related number of R&D personnel increase.

Overall for the quarter, we have recorded a GAAP net loss of RMB $77 million.

We continue to maintain a robust liquidity and a strong financial position.

As of quarter end, we had a combined balance of cash and cash equivalents of approximately 67 million U S dollars.

And coming to our official guidance.

We currently expect total operating revenue for the full year of 2021 to be approximately RMB, one 7 billion.

Which represents approximately a 40% growth rate year over year.

With that that concludes our prepared remarks for today's call. We will now turn the call over to a Q&A session. Thank you.

Thank you Sir.

Ladies and gentlemen, when asking the question. Please state your question in Chinese first and then repeat your question in English for the convenience of everyone in the call.

If you wish to ask a question. Please press star one on your telephone keypad and weak seo needs to be announced.

If you wish to cancel your request please press the pound or the hash key.

Please note its star one on your.

Your telephone keypad, if you wish to ask a question.

Yes.

Yeah.

We have the first question from the line of.

<unk> from Citi. Please ask your question.

And kind of how it will go Washington, if I could.

Thank you for Michelle.

Oh, what did we earn out and prevent you did he go now sure Guangxi <unk> coupon and the dog.

Even downloading Apache attrition as Jim quantum the cornea, while not sounding.

Oh, It was answering John Johnson Gwen.

So I'll do that kind of redemption.

And.

Telephone thank you Amanda.

Yeah just to.

<unk> that she thought income.

There's just a whole bunch of that.

Tricia dengue or managers are talking to Belgium.

The gesture.

Just a quick with Bobby 15 ton shipped that Guy says something beyond that.

As I shouldn't even when she does her question one question.

That my interests to be.

Showing without me trying to juggle a bunch in Russia, our mi $10, which is sort of a genre hazards without water.

Sure Gabe on that you should see the hunger to continue with that I'm going to hold the yugo.

He's a strategy shift.

Somebody element not just that most of my all that called out and talked with I'm thinking you should still be here.

Tricia.

Colleges in fact go I'm happy with forecasts on some pads.

Ammonia, how she's telling tanger Hidalgo the knee Ultrashape I took our two senior towards flashy words here.

Just having good telephone.

Within our filings out what they're doing events.

So that's the first question is regarding to our recent directory a.

Cracked down on Iraq.

Irregularities in the online insurance space. So just wondering what's the impact on our tubing channel.

And the second question is about our future strategy.

We have obviously, a large amount of cash on balance. So do we have any back in new England Shane to regarding.

Future business, our strategy and especially we mentioned that before that we want to know what you think channel.

Previously so as bill.

Our going forward. Thank you.

Yep.

Yeah.

Okay. Thank you Michele it's Ron here, let me take your questions.

The first question regarding regulations I think.

I think the market has obviously been quite concerned overall not just in our industry, but also across various sectors on the recent wave of gum.

Government regulations coming out to the market.

I think in particular with relating to the insurance industry and all of these into the insurance industry, particularly the way we are participating in the recent number 80.987 document.

Content of which that's really not any new regulations, but say, it's more of a emphasis on the implementation timetable for the underlying regulation that was actually he would leave in December of last year, and what's coming into effect.

This February of this year.

So of course, I think Fraser has a long established.

Platform. The 15 with a track record we are very embracing of this new regulatory regime in default because it's definitely good for the overall long term sustainable growth.

The industry as a whole and as one of the more leading and compliant platforms in the industry I think that we see ourselves.

And officially of the regulatory developments.

So.

Particularly with.

Pertaining to the.

Points relating to regulation I think that the regulators are more focused on selling activities by platforms.

<unk> sales of insurance products non compliant operations during the business processes and so forth. So I think given that we have been adapting to the changes since last year or late last year, we have already.

We will be delivered to the marketplace, which will be consumed.

I'll wrap up of users to be compliant.

Our regulatory standpoint.

And also I think that on the best selling or pricing perspective, because that we have always been more focused on the.

Higher than the long term health products.

Less.

Bulk with the short term medical reimbursement kind of insurance products, we're adding both of the mis selling.

This made me fall too so I think that overall as a conclusion I think that we are very well coped as a platform to manage too speculative changes that we don't see any particular had a material impact on the business as a whole.

So going on to your second question on the cash balance and the potential use of this cash resources I think that we have obviously just announced the <unk>.

<unk> life in general acquisition, and overall that will be a very important element to accelerate our online to offline integration strategy.

Our CEO mentioned in his prepared remarks.

And also to make sure that we have.

Being able to deepen our engagement with our customers and to able to generate more lifetime value through the addition of the offline coverage or in person interactions with these customers. So M&A will definitely lumpy.

Potential areas, where we can deploy our cash resources secondly.

Our investment in the core platform the technology and that is reflected in our continued investment in R&D as teams.

We have lifted Mr. Nissim after the IPO.

<unk> I think that will also be increasing investments in our branding and marketing.

Further improve our <unk> business and to be able to generate more traffic to the type of model organic basis.

I hope that answers the questions Michelle Thank you.

Thank you.

We have the.

Our next question from the line of Edwin.

From CLSA. Please ask your question.

Alright perfect.

Our suite don't tell you.

Okay.

No da Vinci. So when you go why should I is how do you think there.

<unk> Joshi.

Somebody in budgets.

So you also see some of that.

She has worked out well.

Well youll see towards related 10-Q.

So I take rate just yet.

So FY <unk> take rate of what's gauge it can't cause hockey game Akshay typing some huge amount of yesterday.

Hole.

We will Miss you.

Sure.

Cell phone.

And do you think voluntary.

Total Seo.

Cost of revenue.

Hey, guys just wausau.

While we face.

So.

It's good to see that.

Sure.

For a larger portion of that <unk>. So I just want to understand more about the details of those same things it shifts in particular if we.

To calculate the take rate with 13 months denominator at why Pete what would be the take rate level for the savings insurance and also.

We calculate that cost of revenue percentage of debt brokerage income for the savings insurance.

We'll see.

The level, especially if we compare to other type of products like the long term health ratio. Thank you.

Okay.

And thank you for joining the call again.

So on your question on <unk>.

Latest development R&D savings insurance product I think that first of all I think it's very encouraging to see that we are making headwind headwinds into scaling up its portion of the portfolio not only because of the weakness or softness in critical illness. As we all know in the market, but also as a long term strategy for us to extract.

<unk>.

LTV go by existing users and also we have puts upon the relatively high proportion of repeat purchases of savings insurance products from existing users. So I think that that is a very good.

Reflection of our overall business strategy is working out fine.

With respect to the take rate or commission rates I think that.

I think to put it simply the good example for our latest <unk>.

Life insurance product I think you are looking at roughly around 10% to 20 percentage points commission rate a bit lower.

And your typical.

Customized long term critical illness products, but I think we need to bear in mind also that the average ticket size for this product is quite a lot higher that critical illness products. So I think we have been telling the market and disclosing to the market.

Steve Ci products, we distribute carries around a 4000 ish kind of RMB ticket size on average, but now we're seeing that the average savings.

Savings insurance product side are going at 28000, RMB. So I think despite the relatively lower.

Take rate, if you will but the overall economics accretion to our P&L, although our revenue is actually quite quite promising. So I think that will be the entity or commission rail takeaway question.

In terms of cost I think that if you look at our Q2 results.

Versus Q1 on a quarter on quarter basis, you can actually see that as a five percentage point improvement on our gross margin. So I think that also is partly due to the reasons stated above.

Great. Thank you very clear. Thank you. Thank you Evan.

Yes.

We have the we have the next question from the line of Alan.

<unk> from Morgan Stanley. Please ask your question.

Hey, Glenn it's a car or sure.

Morgan Stanley the Angela Oh, what's already on their own.

From California, Georgia for.

So why don't I went to no womens dress alright.

Sure sure sure Craig tissue.

It's confusing time King.

So that's why I came to the times.

Sure he looks for so that's for sure.

So you guys are going to see that.

Sure Bill.

And those are the basic shop.

Oh, Derik I went to their share of women.

J codes for sure.

So for sure Shankar.

The central insurance, either a share count number for especially once you you know sort of approaches to trigger shipholding are showing trips unless congress without Oh, no. It's not a science.

I have two quick questions for for management today, So first.

Should we continue to expect an increase of.

Mix for savings products in the upcoming quarters.

Given that could be.

The critical illness cells are so pretty weak in China.

And secondly.

So you talked about a lot about the Senate.

O to O synergies between their license.

Life in General Agency and your core business could you, maybe just elaborate and give us a few examples.

Okay. Thank you Alan.

Thanks for joining the call again.

Due to the overall market sentiment of rounding the Ci products and also I think.

Right now as a whole it's definitely more geared towards consuming life.

Life insurance and <unk>.

<unk> products. So I think you can also see that we have recently just launch the new retirement annuity product with some like that but right now I think that's a very good example of how we are constantly.

Adapting to market changes and also leveraging on our product dibaba expertise to develop and worry about insurance carrier partners.

This call that we also see already sequential growth quite strong growth in this area. So I think we can expect that that will be a meaningful increase in the contribution from savings in the second quarter.

But I think that the critical illness products should come back to life. If you will towards the end of this year. We are also gearing up towards launching a new product in this space.

Really towards the back end of this quarter or next quarter and I think with the new product launch we should also be able to drive improved.

Improved sales in this area given that we will have a more innovative and probably more market for any kind of design features so that we can encourage.

Ourselves our own consultants also our channel partners to market and distribute that product.

With respect to the potential integration revenue synergies with the offline agencies.

So I think Joe that we have targeted I think that there are a few things that we can probably be I look forward to I think the most important thing is that we are able to leverage on the offline presence.

To serve our customers on and offline context, but not just that we can see them face to face. We can further deepen the engagement with them to understand more about their needs and the family's needs and therefore, you have a more insightful customer profile, which will flip back to our own consultants for cross selling and up selling opportunities.

The other thing that we can also provide synergies from is because the comprehensive suite of products that we have on the <unk> platform. We are also be able to provide to this offline partner on immediately on an overnight basis. So that we can empower them with a full suite of products.

Fully understand typically in China for this regional agencies date, they suffer from a lack of product supply from the mainstream insurance.

At the mainstream insurance companies and also <unk>.

They probably received less favorable conditions.

Treatments from the insurance carriers, so by pumping into the <unk> system, obviously began in part and when the product supply. We have also implied empower them on our digital platform and digital tools to increase the efficiency of the offline agents therefore to improve productivity further on a per agent per month basis. So I think that will be the overall comp.

They are looking at with respect to this acquisition.

I hope that's clear.

Okay.

Thank you sure can we go ahead and move to exit.

Thank you.

Yes.

Thank you we have the next question.

Great.

Yeah.

Your question.

Hello, Brian.

Thank you.

Thank you gentlemen.

Oh yeah.

Yeah.

Income.

Yes.

Sure.

Income.

Okay.

Yes.

Yeah.

My first question to go bad.

Okay.

And the propulsion.

All of that.

What's that.

Products from them.

Possibly.

Oh yeah.

Hum.

Okay.

Hi.

That's helpful.

Yeah.

The second question.

Hmm.

The drop off.

Thank you.

Patients in the second quarter.

Okay. Thank you thanks for joining the call.

Two questions here first question was about the savings protocol much of the <unk> coming from existing users.

So I think we have actually touched upon this earlier.

You see that in the second quarter around 31% of all.

Savings product is coming from repeat purchases on our existing users on our platform who have purchased a policy with us before.

So that's the first question and the second question on the traffic cost trend.

These are the overall headwinds facing the educating the AD tech sector I think that what we've seen here at plaza is that.

We do not see.

Perhaps we have a very different marketing strategy than maybe it appears.

And the profit customers that the tech sector and look at is probably not exactly.

You said that we're targeting so we do not see a material, albeit impact on where we see cost of acquisition on our pipeline.

Okay.

Thank you.

Thank you Sir.

This time I would like to hand, the call back to the speakers for any closing remarks. Thank you.

Alright. Thank you. Thank you operator, thank you everyone.

So we will like here.

Joining the call today and if you require any further information. So please feel free to reach out to us. Thank you for joining us today.

Yes.

Okay.

Thank you.

Thank you, Sir ladies and gentlemen that does conclude our conference for today. Thank you for participating you may all disconnect.

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