Q2 2024 Huize Holding Ltd Earnings Call

September 25, 2024

Okay.

Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to our second quarter 2020 fall holidays conference call.

Speaker Change: All participants are a listen only mode. After the management's prepared remarks, we will have a question and answer session.

Speaker Change: This conference call is being recorded and a webcast replay will be available on wages.

Speaker Change: Hi.

Speaker Change:

Speaker Change: Under the events and webcast section.

Kenny Luo: I would now like to have comprehends over to your speaker host today, Mr. Kenny Luo wakes us Investor Relations manager. Please go ahead Kevin.

Speaker Change: Thank you operator, Hello, everyone and welcome to our third quarter earnings Conference call, our financial and operational results were released earlier today and are currently available on our IR.

Kenny Luo: I'll website and global Newswire services.

Speaker Change: Before we continue I would like to refer you to the Safe Harbor statement in our earnings press release, which applies to this call as we will be making forward looking statements. Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained in our earnings release and filings with the U S E C.

Kenny Luo: Joining us today.

<unk> CEO Mr Chang Dreamer.

Speaker Change: Hello, Mr. Li Zhang co CFO, Mr. <unk> <unk> CFO, Mr. Ron him. Mr. Now, we start our call by providing an overview of the company's performance.

Speaker Change: Operational highlights followed by Mr. Chen who will go over our financial results for the quarter before we open up the call for questions.

Mark: Now I'll turn the call over to Mr. Mark.

Mark: Okay.

Mark: Yeah.

Yeah.

Mark: Oh.

Speaker Change: Why isn't that yacht and yacht Ali.

Mark: Yeah.

Mark: Awesome.

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Speaker Change: Apologies.

Keith: So you're right Keith.

Speaker Change: Goodbye.

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Speaker Change: Jim back then.

Speaker Change: So we went G E.

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G E.

Speaker Change: Thank you.

Speaker Change: Hello again.

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Speaker Change: Hum.

Speaker Change: So you've got a neat.

Speaker Change: I'm not sure get Beacon and I need a chance here.

Johan: Ooh Ooh called it out in the Cookie Easter quote unquote Johan.

Johan: And all of our trends will sit on the timing on that.

Johan: People.

Johan: Excellent.

Johan: And then b.

So how do you feel like some of the usual.

Speaker Change: B E.

Speaker Change: Hello, everyone and thank you for joining Quakers second quarter 2020 earnings conference call.

Speaker Change: For the year, China's insurance intermediary industry.

Speaker Change: In undergoing a pivotal transformation driven by changes in consumer behavior declining interest rates and implementation of our unified commissions and fees in reporting an underwriting despite.

Speaker Change: Despite these changes the potential of a Chinese insurance market remains in mens.

Speaker Change: As new regulatory policies gradually take effect and guidelines become increasingly clearer the industry is presented with a.

Speaker Change: Opportunities and challenges in response to the industry wide volatility in the second quarter of 2024, we proactively adapted to market conditions by offering a diverse product mix driving innovation in customized products and strengthening our omni channel distribution.

Capabilities.

Speaker Change: Also continued to advance our AI capabilities Hierarchize surfing of high quality clients.

And expand our international presence to capitalize on regional growth opportunities in the second quarter of 2024.

Gross written premiums or GW, Pete facilitated on our platform reached RMB one for.

<unk> 4 billion.

Speaker Change: With total revenue amounted to RMB 200 million.

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Speaker Change: In late March and I think not much easier.

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Suzanne: Maybe it sounds.

Suzanne: Sure.

Suzanne: Arguable she hit up all the Gilead deal.

Speaker Change: H E B.

Speaker Change: Yes.

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Speaker Change: No.

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Speaker Change: Yeah.

Speaker Change: The call is that we did you ship.

Speaker Change: Hum.

Speaker Change: Thank you Jim you Youll keep box.

Speaker Change: Sure.

Speaker Change: Argued with breaking up albeit.

Speaker Change: Thanks, a lot.

Speaker Change: Good luck.

Speaker Change: E G.

Speaker Change: Included in the knee.

Speaker Change: In the second quarter.

Speaker Change: FY <unk> facilitated on the platform amounted to RMB.

Speaker Change: $650 million from a product mix perspective, our long term health insurance FY <unk> amounted to RMB $120 million, maintaining our growth trend throughout the year.

Speaker Change: F Y E. A longtime life insurance grew by 5% year over year to RMB 300 accumulation.

Speaker Change: New premiums reached RMB $690 million in the second quarter up 42% year over year, reflecting our continued strategic focus on long term insurance.

As a result long term insurance premiums accounted for 91% of total GE to repeat marking the 19th consecutive quarter with this number outstanding of about 90%.

Speaker Change: Moreover, our short term insurance business also maintained positive momentum with <unk>, increasing by <unk> five.

Speaker Change: 5% year over year to approximately.

Speaker Change: $120 million further important.

Speaker Change: Diversified product offerings.

Speaker Change: Great Industrial don't me Gordon who week looking purely.

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Speaker Change: Arguably one approval we had routine.

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Enrollment here in the Q&A.

Speaker Change: The income part cobalt nickel cobalt youth.

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Speaker Change: Some money in <unk> <unk> filings yet.

Speaker Change: India.

Speaker Change: Sure.

Speaker Change: Further remains dedicated to serving high quality customers by delivering superior surface experiences.

Speaker Change: Throughout the quarter, we have a large number of marketing initiatives such as monthly marketing campaigns company anniversary festivals celebrations and membership daily batch, we successfully reached more than 70000 users through these efforts and the chip.

Speaker Change: More than 30000 in sales conversion. We also continue to provide users with professional and nutrition clients assistance services.

Speaker Change: In the first half of 2020 for the total number of insurance claim cases assisted by quasi reached 80000 total.

Speaker Change: Total claims settlement amount of approximately RMB.

Speaker Change: $400 million.

Speaker Change: Yes.

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Speaker Change: <unk> will go cohort and all of that.

Speaker Change: You cannot do it yet.

Speaker Change: You do it.

Speaker Change: So frankly AVO via the Yanbu linked EQT can call you back.

While Japan jumped out.

As of the end of the second quarter, our cumulative number of insurance customers has grown to 98.

Speaker Change: $8 million with 248000, new customers added during the quarter.

Speaker Change: Average age of longtime reinsurance customers was $34 seven years with 66, 3% from higher tier cities, maintaining a high quality customer profile. Furthermore, the approach <unk> taken.

Speaker Change: Ticket size of second products reached RMB 78000 up two 7% year over year, our customer retention rates have also remained stable.

Speaker Change: We're purchase rates of long term insurance customers, reaching 45% year over year increase of six five percentage points.

Speaker Change: As of end of June our cumulative persistency ratios for long term insurance in the first half and 25th months remained at industry high levels of over 95%.

Kendra: Kendra agile mode.

Wendy: EBIT gaslog amongst the sponsor Wendy thank you.

Speaker Change: That daily.

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Speaker Change: Yes.

Speaker Change: So again susanne policies things of the sequel.

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Speaker Change: So just some hockey sample so I'll come back to the market.

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Keith Johan CTO.

Speaker Change: Or your pilot program.

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Speaker Change: Keith will acknowledge the Hudson that TV market.

Speaker Change: Finally called out the EBIT Pago, we don't come back to you.

Speaker Change: The in thing Garlock, and bulk liquid and brought online.

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Speaker Change: In macro coupled with 19 policies will argue magazines.

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Speaker Change: <unk> he has gone up.

Speaker Change: We don't talk about them yet.

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Speaker Change: You'd be cool.

Speaker Change: Okay, if we book either.

Speaker Change: Correct.

Speaker Change: As of the third quarter, we had cooperated with 125 insurance companies in response to the low interest rates and risk adverse environment. We quickly adapted to meet customers' needs for inflation hedge and asset preservation in April.

Speaker Change: Partnered with.

Speaker Change: A fever cough cold to launch a customized participating whole life insurance product Puma gap, which has been widely recognized since its introduction.

Speaker Change: Hang on our deep market insights and operational capabilities, we continue to iterate and upgrade our existing products in July we partner with China merchants life insurance to introduce Shanghai demonstrate how critical illness insurance products, while maintaining the IP.

Speaker Change: <unk> cost effectiveness.

Speaker Change: We focus on addressing GSS refine needs by further optimizing coverage details in September we launched the customized Darwin in critical care and maintain matching their 14th iteration of power and critical illness insurance serious.

Speaker Change: This latest version expense coverage.

185 major critical illness, and provides more option coverage plans and additional payments scenarios to address customers' evolving needs.

Speaker Change: As of the end of the second quarter customized product accounted for 41, 2% of the total FY Pete.

Speaker Change: Same thing a year over year increase of $16 nine percentage points.

Speaker Change: For the quarter increases of nine <unk>, one percentage points this fully demonstrates wages.

Speaker Change: And product innovation capabilities as well as recognition of quietest customized products.

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Speaker Change: <unk> agenda through the harp volume impact global player.

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Chanda Youll: Is that somewhat non Chilean onboard yet.

Chanda Youll: Hello.

Speaker Change: Woke up teens angles here.

These are young following global Cat you mean, yes.

Speaker Change: So from that should be.

Speaker Change: Hello, John.

Speaker Change: So the <unk> field center, you don't need it.

One when you deal with it than not done that.

Speaker Change: Kimball woman that called on partners.

Speaker Change: On the team.

Speaker Change: The company has and encouraging progress in its international business.

Speaker Change: Back to the implementation of our international strategy over the past year International business contributed 11% of total revenue in the second quarter are.

Speaker Change: Initial double digit targets. Additionally.

Speaker Change: International brands fully intact successfully acquired with <unk>.

Speaker Change: Do you think digital is your tech platform global care, marking another milestone in our overseas expansion.

Speaker Change: Marks not only Hoyt us office.

Speaker Change: Official entry insurance second international markets, but also forms a key part of our mid to long term strategy in southeast Asia.

Speaker Change: Our mission to build a pan Asia in your Tech platform.

As the emerging insurance market is a key.

Speaker Change: <unk> robust economic growth and both <unk> and <unk>.

Speaker Change: Large young and highly Digitalized population base, demonstrating tremendous market potential we firmly believe that with high debt outstanding technological capabilities strong business expertise and extensive experience in the Chinese market will create unparalleled competitive advantage.

For both parties on one hand, quasi will empower global care driving the digital transformation of the witness insurance market on the other hand global care will help equate to expand diversified market revenue and contribute to building a global recognized Brian.

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Speaker Change: Yes that one might slow down this is walter.

Speaker Change: Keith.

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Speaker Change: Yes.

Speaker Change: <unk> in the future.

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Speaker Change: Cleveland, partly because of the Peruvian user please.

<unk> been people a certain feature of that.

Speaker Change: Sure Mark that children need a box.

Box a year without what again by that.

Speaker Change: Turning to 'twenty four has been a year of rapid changes in the market environment. However, leveraging on how it is unique market insight and continuous operational adjustments, we have to remain flexible and resilient in this changing market at the same time.

Speaker Change: Our international business expansion has begun to show promising results looking ahead.

Speaker Change: The official Iraq off the <unk> era.

Speaker Change: Guaranteed interest rates on insurance participating insurance products are expected to experience a strong rebound in demand, becoming a mainstream product in the market.

We will work closely with insurance companies leveraging each other's.

Speaker Change: Resources and strengths the logjam promo participate in products that better align with market needs and ensuring sustainable growth under the new regulatory environment.

Speaker Change: So it's all right gentlemen.

Dr. John: Let's say alcohol run by Dr. John.

Speaker Change: Keith.

Speaker Change: Yes.

Speaker Change: This concludes my prepared remarks for today I will now turn the call to our CFO, Mr. Ron <unk>, who will provide an overview of our key financial highlights for the second quarter.

Thank you Mr Mine in Guinea, and good evening, everyone in Hong Kong at Leisure time zone and with <unk>.

Speaker Change: Morning, everyone in New York.

Speaker Change: U S time zone.

Speaker Change: I guess to open the discussion here.

Speaker Change: Against the challenging industry landscape.

Speaker Change: Quite well into the market for the second quarter.

Considering the high base effect for year over year comparisons, we have delivered pretty resilient set of results for the second quarter with total GW facilitated on App platform essentially flat year over year basis at RMB, One 3 billion.

Speaker Change: Relative outperformance against the overall intermediary industry's average was largely attributable to the differentiated omnichannel distribution capabilities of our platform model, which covers both online offline channels are continued acquisition.

Speaker Change: The ability to acquire high quality customers.

Speaker Change: Our industry, leading product innovation capabilities, and an increasing revenue contribution from our international market.

Speaker Change: From a product strategy perspective, we continue to strategically focus on long term insurance products, which accounted for over 90% of our cheetah boutique during the second quarter.

I'll open platform model continues to empower our internal financial advisors.

Speaker Change: Distribution channel partners and also the <unk> <unk> in the market. It is omnichannel distribution network that is a byproduct matrix and our proprietary AI productivity tools.

Speaker Change: We further deepen customer engagement across our direct to customer segment with the repurchase ratio for our long term insurance products during the second quarter, increasing by six five percentage points.

Speaker Change: Year over year to 45%.

Speaker Change: This metric actually.

Speaker Change: RFP underscores our ability to upsell and cross sell our customer set and capitalize on the LTP potential of a high quality customer base.

Speaker Change: We continue to leverage on our proprietary AI solutions that we have.

Speaker Change: In house to streamline operations and to enhance operating leverage inefficiency.

Speaker Change: In the second quarter, our DWP productivity per employee has improved by 10% year over year, which is RMB, one 4 billion per employee.

Speaker Change: As we look at our operational results I want to highlight several key achievements that drove our solid performance in the second quarter.

Speaker Change: Our number one renewal premiums increased by 42% 842, 8% year over year to approximately RMB $685 million.

Speaker Change: As of the end of June our 13th at 25th month Persistency ratios for long term life and health insurance policies, we made an industry high levels of over 95% and.

Speaker Change: And thirdly average ticket size of our long term savings products have reached a record high of over RMB 77000 in the second quarter of 'twenty 'twenty, four which is up by 23% year over year, reflecting increased contribution from premium product sales in our international market segments.

Speaker Change: Yes.

Speaker Change: We continue to pursue a balanced mix between long term health and savings products categories. The FY people mile long term health products increased by 29% sequentially.

Speaker Change: RMB $124 million, primarily driven by our customized products with top insurers, including Ping on health insurance at CPI.

Speaker Change: At the same time contribution from short term health and P&C products maintain a stable growth momentum with FY piece of this segment, increasing by 33% year over year to 116 million RMB.

Speaker Change: <unk> International business also grew by three 4% on a sequential basis.

Speaker Change: Thanks to the improvement in overall take rate up to product mix as.

As far as our strategies and controlling channel distribution costs and the increase in repurchase great from a direct to consumer segment. Overall gross profit margin has improved by two three percentage points sequentially to 31, 3% in the second quarter of 2024.

Our financial position remains stable bust with a combined balance of cash and cash equivalents of RMB $236 million or U S dollar equivalent $33 million as of the end of the second quarter.

Speaker Change: Our omnichannel distribution platform and proprietary AI productivity tools are strengthening our customer acquisition and engagement capabilities.

Speaker Change: And streamlining operations.

Speaker Change: About 248000, new customers to our platform in the second quarter, increasing increasing the total customer count to $9 8 million equity end of the June quarter. We.

Speaker Change: We currently expect our platform to reach an important milestone of 10 million customers by the end of this current quarter class III.

Speaker Change: Moving forward, we will leverage our unique customer insights and our AI capabilities to further enhance our pro.

Speaker Change: Innovation and create additional Upselling and cross selling opportunities will continue to empower insurance agents ISP partners.

Speaker Change: And our distribution partners with an optimized omni channel platform, which product offerings and advanced AI tools to support customer acquisition and engagement.

We will continue to capitalize on our long term growth opportunities in Asia insurance industry. We further expanded our overseas presence by adding head count to our international sales force and drove the promotion of our premium products to satisfy robust demand for high value customers.

Speaker Change: Again total international revenue contribution has accounted for 11% of total group revenues in the second quarter, which is up from 7% in the first quarter.

Speaker Change: Looking overseas will continue and further allocate adequate resources to strengthen our international brand Pony ensure tech.

Speaker Change: Following the acquisition of global care, our priority is to replicate our proven insurance technology ecosystem model in the local Vietnamese market.

Speaker Change: We have already begun to work closely with the local team to accelerate growth.

Speaker Change: By innovating customized insurance products distribution partnerships innovating to nautical technological advancements to the platform and deployment of our AI capabilities.

Speaker Change: In parallel we are actively exploring underpenetrated markets across southeast Asia to further expand our footprint.

Speaker Change: These initiatives are expected to drive new growth diversified revenue streams and enhance long term value for our shareholders.

Speaker Change: We are targeting to enter at two additional markets in the next 12 months and to drive international revenue to contribute 30% of group revenues by 2026.

Speaker Change: In summary, the shipping industry landscape in our home market of China is driving the healthy and sustainable growth of the entire insurance value chain.

Speaker Change: In the medium term, we anticipate industry consolidation opportunities would be much.

Speaker Change: Which would benefit leading players such as ourselves.

Speaker Change: We are confident that our strategies will solidify our position as a leading internet platform in Asia, connecting consumers insurers and distribution partners digitally and efficiently.

Our data driven and AI powered solutions.

Speaker Change: And with that we'll now open up the call to Q&A. Thank you operator thank.

Speaker Change: Thank you we will now begin the question and answer session to ask a question on the phone. Please press star one one and with credit to be announce the considering request. Please press star one again.

Speaker Change: Silence, while questions are being collected.

One moment for the first question.

Speaker Change: Our first question comes from the line of Amy Chen from Citi. Please go ahead.

Speaker Change: Okay.

Speaker Change: Hi.

Speaker Change: I have two.

Speaker Change: <unk>.

Speaker Change: The first one being.

Speaker Change: The guidance management guidance on earnings and it makes sense as we see that.

Speaker Change: Second quarter. This year actually there has been some year over year increase in G&A expenses.

Speaker Change: Share based compensation.

Speaker Change: Full year wise, how should we think about expenses.

Speaker Change: Net profit.

Speaker Change: Second question is on your premium trends.

Speaker Change: When you see that.

Speaker Change: In the second quarter of this year.

Speaker Change: There has been some.

Speaker Change: Deceleration.

Speaker Change: This is <unk>.

Speaker Change: Similar to the industry wide.

Speaker Change: Trent.

Speaker Change: So I understand there has been some.

Speaker Change: The option.

Speaker Change: Resolution 20 sites.

Speaker Change: Sure.

Speaker Change: Rationalization of the coal.

Commission rate Commission rates.

Speaker Change: Channel.

Speaker Change: But is there any.

Speaker Change: From behind.

Speaker Change: No correct.

Speaker Change: <unk> growth.

Speaker Change: Looking ahead to the third quarter.

Speaker Change: How is the FY <unk> trend.

Speaker Change: The third question is.

Speaker Change: Also.

Related to the regulatory trends.

On the rationalization of brokers handle convention Hauser has been product mix changed.

<unk>.

Speaker Change: After it.

Speaker Change: Regulatory trends thanks.

Speaker Change: Thank you.

Speaker Change: Thank you. Thank you Amy for joining US again, so to address your first question on the guidance for earnings and some expense items I think it might be noted that in Q2, we have some.

Speaker Change: The reversals or upticks in certain expense categories.

Speaker Change: As it relates to share based compensation.

Speaker Change: And the.

Speaker Change: The primary reason is that we have issued a new round of options.

Speaker Change: Two our plans in the first quarter and in the second quarter our share price is.

Speaker Change: Got it.

Speaker Change: Quarter on quarter and due to accounting.

Speaker Change: Policies for the for the calculation of the SPC.

Speaker Change: The expense item has increased in a sequential basis. So we do expect that to be.

Speaker Change: First of all the SBC as a non cash item. It does it does not affect cash flows and second I think overall the expense ratio should be but two more.

Speaker Change: And the Q1 level of this year going forward. So that's that's the <unk>.

Speaker Change: The answer to your first question.

Speaker Change: Your second question on FY <unk> trends I think in Q2.

Speaker Change #100: We have obviously.

Speaker Change #100: Being impacted by the rationalization of broker commissions the regulatory policy.

Speaker Change #101: And that's not just the only reason and the other reason.

Speaker Change #101: That has an impact on overall customer demand is due to the the pricing rate.

Speaker Change #101: Expect the project based on a.

Speaker Change #101: Change in the third quarter of this year Chi which is this happened in August for the first whereby.

Speaker Change #102: The mainstream products that was there was price based on the <unk> zero percent interest rate.

Speaker Change #102: It's going to be reduced to one 5% from last September 1st so.

Speaker Change #102: That means is that a lot of the customer demand has been shifted or pushed back to Q3 from Q2 as people expect that.

Policy too.

Speaker Change #102: <unk> be in effect by August.

Speaker Change #102: So that has resulted in a depressed FY <unk>.

Environment in Q2.

Speaker Change #102: And based on that and on the back of that explanation. In Q3, we are expecting an uptrend on FRP, especially in the savings product category due to the pushback at the demand and.

Speaker Change #102: The overall industry's push for for distribution in the month of August, particularly.

Speaker Change #102: So that would be the answer to your second question.

Speaker Change #102: With regards to third question on the regulatory impact on product mix.

Speaker Change #103: I think the overall right now in this current economic climate in China.

<unk> are still relatively more.

Speaker Change #103: Sure.

Speaker Change #103: The propensity to purchase our savings products is still very keen.

Speaker Change #103: Due to the declining interest rates environment.

Speaker Change #103: <unk>.

Speaker Change #103: Our products for example.

Speaker Change #104: It's become an increasingly attractive from a yield differential comparison perspective.

Speaker Change #104: And the lack of.

Good fixed income alternatives.

Speaker Change #104: <unk> product alternatives in the local domestic market.

Speaker Change #104: Thrive.

Speaker Change #104: Further popular popularization of.

Speaker Change #104: Pop products going forward, so into the product mix, what we would expect in the coming quarters.

Speaker Change #104: The increasing contribution.

Speaker Change #104: From participating products.

As people are more educated about the product.

Speaker Change #104: And.

Speaker Change #104: We are actually one of the first.

Speaker Change #104: Online or digital brokers to customize a hot product with a leading insurance.

Speaker Change #104: Yes.

Speaker Change #104: In the second quarter, we have partnered up with Opdivo, Costco, which we just mentioned in the opening remarks by Mr. MA that we have come up with a customized product which would meet the current.

Speaker Change #104: Market requirements for <unk>.

Speaker Change #104: A better better returns.

Speaker Change #104: At the same time, helping insurers manage the asset liability exposure.

Speaker Change #104: In the longer run we do believe that the pathway that will become mainstream as we can.

Speaker Change #104: Move forward in the next in the one to three years.

Speaker Change #104: And as the market increasingly get more educated about this product and also with offline agents or tight agents promoting this product this will become the mainstream.

Speaker Change #104: In quarter. Two we also managed to increase our mix as it relates to protection product that's on the back of our customized products.

Speaker Change #105: Partnerships with two leading insurers want is P&L and elas with CPI and these too.

Speaker Change #105: Nice quarter.

Speaker Change #105: To help us deliver a a good improvement in the production category. So overall that has contributed to again a better take rate.

Speaker Change #105: And to mitigate against.

Speaker Change #105: The decorative impact on commissions.

Speaker Change #105: But by the regulatory trained on the question Michael.

Speaker Change #105: Brokerage commissions.

Speaker Change #105: So that would be my answer to your question Sami. Thank you.

Sami: Thank you that's very clear.

Speaker Change #108: Thank you for the questions once again to ask a question. Please press star one one and great brand name to be announced.

Okay.

Speaker Change #108: The next question.

Speaker Change #108: Yes.

Speaker Change #108: Next question comes from the line on Michelle MA from Citi. Please go ahead.

Thank you this is michel from Sydney.

Speaker Change #108: Yes.

Speaker Change #109: One question on the.

Speaker Change #109: Strategy.

Speaker Change #109: Chris.

Speaker Change #109: Just mentioned.

Speaker Change #109: Sure.

Speaker Change #109: The company.

Speaker Change #109: Entre into.

Two new markets in the near future.

Speaker Change #109: Can we have.

Speaker Change #109: Some.

Speaker Change #110: Could you shed some light on that.

Speaker Change #111: In this case and also.

Speaker Change #111: I'm trying to understand.

Speaker Change #111: While we would like to enter into multiple overseas markets in a very.

Sean: Sure Sean.

Speaker Change #111: Sean.

Speaker Change #111: Yes.

Speaker Change #111: Hi.

Speaker Change #111: No.

Each market hubs Larry.

Speaker Change #111: Okay.

Speaker Change #111: Hum.

Speaker Change #111: Why.

Speaker Change #111: I'll talk.

Speaker Change #111: In tier one markets and the developed.

Speaker Change #111: Development of Nash.

Speaker Change #111: And then enter into.

Speaker Change #114: Another one so could you shed some light on this.

Our own <unk>.

Okay.

So I'm not going to cooperate.

Speaker Change #114: Next question why does Shannon Okay.

Speaker Change #114: Okay.

Speaker Change #114: Thank you.

Speaker Change #114: Just let me ask Jamie.

Jamie: Got it anyway.

Thanks, Nick.

Jamie: We shall now one more question.

Jamie: Okay.

Speaker Change #116: Sure My pleasure.

Jamie: Ken.

Jamie: Oh today alcohol.

Jamie: Thank you.

Speaker Change #117: So Tom Joe Johnson I wish it was.

Does that already fallen back with Honda.

Jamie: Oh.

Jamie: So how do I think.

Jamie: Actually just a sense of that.

Jamie: Okay.

Michelle Ma: Thank you Michelle.

Michelle Ma: Great questions on the strategy on the international front I think Tom.

Tom: My answer to your question would be.

We have been quite encouraged by our initial results obviously.

Tom: In our first international market, which obviously is Hong Kong.

Tom: And our business in Hong Kong has has been tracking quite well and.

Tom: Encourage us to to further.

Tom: Two other markets.

Tom: <unk> did not.

Tom: Actually it has been in the in the works for almost one year actually when we close the transaction two weeks ago. It's almost the first year in the Brazil first contact with the target.

And the reasonable Vietnam, I think it's quite obvious.

Tom: It's basically.

Tom: Framework, a parallel to the Chinese market, perhaps maybe 10 years ago, and I think we have seen in <unk>.

Tom: <unk> grown from 18 18 years ago in China to where we are today and we can kind of envisage the kind of growth trajectory and the business development that would likely take place in that market because its share rate unless parallels with the Chinese market.

Tom: We take a very.

Tom: Flexible approach as to our international strategy.

Speaker Change #120: <unk>, obviously is a buy and build its not a greenfield expansion, it's a M&A transaction, where the target is very much similar to our.

Speaker Change #120: Creative misses model, it's very much like a.

Speaker Change #121: Vietnam version of US and we believe that the chemistry is very aligned with our existing and proven.

Speaker Change #121: Product stack and technology platform, we can quickly replicate our business over there.

Speaker Change #121: The transition of size, obviously, it's also.

Speaker Change #121: Quite small.

Speaker Change #121: From a financial and risk perspective, it's pretty much.

Speaker Change #121: Pretty much manage.

And we have a lot of conferences that the.

Speaker Change #121: Net debt M&A.

Speaker Change #121: Data integration and the synergies would be I'd be very positive for the for the group.

As for the new two new market. Obviously, we are looking across ASEAN market and likely this will be the growth markets.

Speaker Change #121: Yes.

Speaker Change #121: In the form of our Philippines.

Speaker Change #121: Indonesia and Singapore.

Speaker Change #121: Market, our target market right now and.

Speaker Change #121: I guess, a Singapore would be.

Speaker Change #121: <unk> story to the Hong Kong expansion, we believe that some high value customers.

Speaker Change #121: Attracted.

Speaker Change #121: And the product connectivity products.

Products that Singapore and offer will provide a lot of potential for our existing customer base.

Phil: And then for Phil.

Speaker Change #123: Philippines, I think the analogy is with Vietnam.

Speaker Change #123: Albeit philippines might be even a little bit more.

Speaker Change #123: Frontier.

Speaker Change #123: In some ways, but in depth in that market or in all markets that we talked about just now in the Gulf markets category like Vietnam, our strategy would be to find a strong local partner with existing resources.

Speaker Change #123: So in markets like.

Speaker Change #123: Indonesia, and Philippines, but we'd be likely to do is to form a joint venture with <unk>.

Speaker Change #123: The established local group whereby the local at the local partner will take care of the regulatory and the local resources and from our perspective, we will do what we are very best at which is too.

Speaker Change #123: Empower the business with our technology and our product our new hub.

Speaker Change #123: That is really the old book as a strategy around the Internet Internet internationalization part of the business plan.

Speaker Change #123: It will always start with what we are really good at in our domestic market.

Speaker Change #123: To replicate.

Speaker Change #123: <unk> successful formula and to localize it with respect to each local markets culture.

Speaker Change #123: Markets are best practices, and local regulatory regimes and in all of these are growth markets. We will seek a local partner who are very well for us and very well experienced in the local market.

Speaker Change #123: Our business dealings so I guess that would be my answer to your question Vishal.

Vishal: Thank you for the question.

Speaker Change #125: One moment for the next questions.

Speaker Change #125: Okay.

Speaker Change #126: Next question comes from the line of <unk> from CIBC. Please go ahead.

Speaker Change #127: Okay. Thank you and good results services.

Speaker Change #127: Two points.

And my question to only one question.

Speaker Change #127: Gotcha.

Speaker Change #129: <unk> got some more.

Speaker Change #127: Mike.

Speaker Change #127: David.

Speaker Change #127: We might go into.

Speaker Change #127: Tend to sell more participation.

Speaker Change #127: Yes.

Speaker Change #127: We introduced more you have to do some new.

Speaker Change #127: Anticipate license, we sell it to.

Speaker Change #127: Okay.

All of them.

Speaker Change #127: Okay.

Speaker Change #127: Yes.

Speaker Change #127: No.

Speaker Change #130: Apologies I Couldnt really catch your question so starting with the line has been a bit.

Speaker Change #127: Stable.

Speaker Change #131: Could you kind of a guess.

Speaker Change #127: <unk>.

Speaker Change #127: Yes.

Speaker Change #127: Yes My question is.

Speaker Change #132: We plan to introduce a more customized products.

I think part of that.

Speaker Change #132: Okay got.

Speaker Change #133: Got it thank you.

I guess over the past 678 years, I guess one of the key differentiating.

Speaker Change #134: <unk> strength that our group has.

Speaker Change #134: In the in the area.

Speaker Change #134: Co developing products with volumes from our partners I think.

Speaker Change #135: If you look back at 2020, when we IPO a company back in those days, we are mainly doing protection products. We are mainly focusing on quicker illness products customization and then as we move forward to 2020 once maybe to the market has evolved into an era of savings products and we have great much quickly.

Speaker Change #135: To the changing market environment, and customer preferences, and get rolled out endowments insurance customized products and newer t's and so forth and also put different demographic groups we have us.

Speaker Change #135: <unk> for the.

Speaker Change #135: The children and young adults and even for the elderly optimal health groups. So as we move into the new interest rate regime in China, what we can and decisions that the joint <unk> pumps to Japan.

Speaker Change #135: In some of the context.

Speaker Change #135: Upon us will become likely become all we are very confident that the populace will become the mainstream products here and again, we have already come out with the first customized product in the second quarter with CEVA copco.

Which is a very much a leading.

Speaker Change #135: In the China market, it's a joint venture between the Soe Copco, and Opdivo group, which is a U K insurer.

Speaker Change #135: And that just kept off $2 9 billion RMB. So the strategy right now for US is to always innovate and come up with customized products, which help address the requirements on the <unk>.

Speaker Change #135: <unk>.

Speaker Change #135: Three main stakeholders involved which is the consumer.

Speaker Change #135: At the end and also the insurers and also the.

Speaker Change #136: Intermediary, which is ourselves.

Speaker Change #136: With all three stakeholders interest are taken account.

Speaker Change #136: Product.

Speaker Change #136: Only that the only that the product can and.

Speaker Change #137: Well so.

Speaker Change #136: We have.

Speaker Change #137: Obviously accumulated very strong experiencing this product customization.

Speaker Change #137: Session.

Speaker Change #137: Expertise and.

Speaker Change #137: In Q2, we have already come up with the first.

Speaker Change #137: One of the <unk> product and we will continue to come up with more and more products to address the changing market environment and consumer preference.

Speaker Change #137: And so it shows that we can restore that all the stakeholders.

Speaker Change #137: We come out of engineering.

Speaker Change #137: Until the fund distribution.

Speaker Change #137: Thank you for the questions that.

Speaker Change #137: I would like to turn the call back to Mr. Lowe for closing remarks.

Mr. Lowe: Thank you operator in closing on behalf of this management team, we would like to thank you for your participation in today's call.

If you require any further information feel free to reach out to us. Thank you for joining US today. This concludes the call.

Speaker Change #139: That concludes today's conference call. Thank you for your participation you may now disconnect your lines.

[music].

Speaker Change #139: Okay.