Huize Holding Ltd (HUIZ) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Huize Holding Limited's fourth-quarter and full-year 2023 earnings conference call. (Operator Instructions) Today's conference call is being recorded and a webcast replay will be available. Please visit Huize's IR website at ir.huize.com under the Events and Webcasts section.

女士們、先生們，感謝大家的支持，歡迎參加匯澤控股有限公司 2023 年第四季及全年業績電話會議。 （操作員說明）今天的電話會議正在錄音，並將提供網路廣播重播。請造訪 Huize 的 IR 網站 ir.huize.com 的「活動與網路廣播」部分。

I'd now like to hand the conference over to your speaker host today, Ms. Harriet Hu, Huize's Investor Relations Director. Please go ahead, Harriet.

現在我想將會議交給今天的演講主持人，Huize 投資者關係總監 Harriet Hu 女士。請繼續，哈麗特。

Thank you, Sarah. Hello, everyone, and welcome to our earnings conference call for the fourth quarter and full year of 2023. Our financial and operating results were released earlier today and are currently available on both our IR website and the Newswire.

謝謝你，莎拉。大家好，歡迎參加我們 2023 年第四季和全年的收益電話會議。

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

在我們繼續之前，我想請您參閱我們的收益新聞稿中的安全港聲明，該聲明也適用於本次電話會議，因為我們將做出前瞻性聲明。另請注意，我們今天將討論非公認會計原則措施，這些措施在我們的收益新聞稿和向 SEC 提交的文件中進行了更全面的解釋。

Joining us today are our Founder and CEO, Mr. Cunjun Ma; COO, Mr. Li Jiang; Co-CFO, Mr. Minghan Xiao; and Co-CFO, Mr. Ron Tam. Mr. Ma will start the call by providing an overview of the company's performance and operational highlights for the fourth quarter and full year of 2023. Mr. Tam will then provide details on the financial results for the period before we open up the call for questions. I will now turn the call over to Mr. Ma.

今天加入我們的是我們的創辦人兼執行長馬存軍先生；營運長李江先生；聯席財務長蕭明漢先生；及聯席財務長譚俊榮先生。馬先生將首先概述公司 2023 年第四季和全年的業績和營運亮點。我現在把電話轉給馬先生。

(interpreted) Hello, everyone, and thank you for joining Huize's fourth-quarter and full-year 2023 earnings conference call. In 2023, China's insurance industry continued a positive growth trajectory, marking the second consecutive year of growth, following the industry's significant reforms. In particular, the demand for savings insurance products remained robust, driving a 12.75% growth in total premiums for China's life insurance industry amid the declining RMB interest rates.

（同聲傳譯）大家好，感謝大家參加匯澤第四季及2023年全年財報電話會議。 2023年，中國保險業在產業重大改革的推動下，持續保持正向成長，連續第二年維持成長。尤其是儲蓄保險產品需求依然旺盛，在人民幣利率下行的情況下，帶動中國壽險業總保費成長12.75%。

The China Insurance Consumer Confidence Index also reflected a resurgence in consumer confidence towards the macroeconomic environment and the insurance industry. Notably, the intention to increase insured insurance coverage has rebounded for three consecutive quarters, surpassing levels seen in the same period of both 2021 and 2022. Navigating through these evolving market trends, Huize has successfully seized the market opportunities in long-term savings products. By leveraging our strategic focus on long-term insurance product, diversified operational tactics, product innovation, and customer acquisition capabilities, we have once again delivered satisfactory results. In 2023, total gross written premiums or GWP facilitated on our platform reached RMB5.8 billion, up 18.2% year over year. Our total revenue increased by 3.3% year over year to RMB12 billion, and we achieved a non-GAAP net profit of RMB72.3 million, exceeding our guidance of RMB60 million.

中國保險消費者信心指數也反映了消費者對宏觀經濟環境和保險業信心的回升。值得注意的是，增加投保保險覆蓋範圍的意願連續三個季度回升，超過2021年和2022年同期的水平。憑藉著長期保險產品的策略定位、多元化的經營策略、產品創新能力和獲客能力，我們再次交出了令人滿意的成績。 2023年，我們平台促成的總保費或GWP達到人民幣58億元，年增18.2%。我們的總收入年增 3.3% 至 120 億元，實現非 GAAP 淨利潤 7,230 萬元，超過 6,000 萬元人民幣的指導。

Total first-year premiums or FYP facilitated on our platform reached RMB2.6 billion, up significantly by 42% year over year, and the renewal premiums increased by 4% year over year, reaching RMB3.2 billion. In terms of product mix, the GWP contribution from long-term insurance products in 2023 was 92.3%, representing the fourth consecutive year exceeding 90%.

平台首年保費總額達人民幣26億元，較去年大幅成長42%；續保費年增4%，達人民幣32億元。從產品結構來看，2023年長期保險產品的GWP貢獻率為92.3%，連續第四年超過90%。

During the year, we witnessed a rise in demand for savings products and leveraged our diversified product offerings and omnichannel distribution capabilities to capitalize on that market opportunity. In light of that, FYP from our long-term savings products increased by 54.6% year-over-year to RMB1.7 billion. And FYP from our long-term health products increased by 19% year-over-year to RMB510 million.

年內，我們見證了儲蓄產品需求的成長，並利用我們多元化的產品供應和全通路分銷能力來抓住這一市場機會。據此，長期儲蓄產品首年收益年增54.6%至17億元。長期保健品的首年營收年增19%至人民幣5.1億元。

While we maintained high-quality growth in our long-term insurance business, we also provided customized products and risk management solutions to our corporate clients, which led to a 74% surge in the FYP of our P&C insurance products reaching RMB390 million in 2023.

在長期保險業務維持高品質成長的同時，我們也為企業客戶提供客製化產品和風險管理解決方案，財產險產品2023年全年營收成長74%，達到3.9億元。

As of the end of the fourth quarter, our cumulative number of insurance customers exceeded 9.3 million. Among the long-term insurance customers from the fourth quarter, 65.8% were from higher-tier cities and their average age was 34.1 years old. 41.8% were repeat purchases from existing customers, which has increased by 8 percentage points year over year.

截至第四季末，我們累計保險客戶數超過930萬戶。第四季長期保險客戶中，65.8%來自第一線城市，平均年齡34.1歲。 41.8%為老客戶重複購買，較去年成長8個百分點。

We also witnessed a substantial increase in the fourth quarter in the average ticket size of savings product in terms of FYP, which was approximately RMB59,000, representing a 30% increase year over year. This was primarily driven by our focus on acquiring high-quality customers and upselling existing customers with high LTV potential as well as the success of our Hong Kong business expansion contributing premium international product sales in the fourth quarter. As of the end of December, our cumulative persistence ratios for the long-term insurance in the 13th and 25th months remained at industry-high levels of more than 95%.

我們也看到，第四季儲蓄產品的年票平均金額大幅成長，約為人民幣 59,000 元，較去年同期成長 30%。這主要是由於我們專注於獲取高品質客戶和追加銷售具有高生命週期價值潛力的現有客戶，以及我們香港業務擴張的成功貢獻了第四季度的優質國際產品銷售。截至12月底，我們的長期保險第13個月及第25個月累計續保率仍維持在95%以上的產業高水準。

As of the end of the fourth quarter, we have cooperated with 123 insurer partners. Throughout the year, we maintained solid collaborations with leading insurance companies, further enriched our diversified product matrix, in order to meet the differentiated protection needs from customer, whether they are in search of premium brands or cost-effective products. For example, in November, we partnered with Dajia Annuity Insurance to launch "Dajia Hui Xuan", a customized retirement annuity insurance product, addressing the unique needs of the post-80s and 90s customers by offering elderly care services and various types of protection options.

截至第四季末，我們已與123家保險公司合作夥伴合作。全年，我們與領先保險公司保持緊密合作，進一步豐富多角化產品矩陣，滿足客戶無論是優質品牌或高性價比產品的差異化保障需求。例如，11月，我們與大家年金保險合作推出了客製化退休年金保險產品“大家惠選”，透過提供養老服務和多種保障選擇，滿足80、90後客戶的獨特需求。

In December, we partnered with PICC Life Insurance to launch the "Darwin Critical Care No.8 - Advanced". Since its launch in 2018, the Darwin Critical Care series products have provided over 310,000 customers with enhanced protection through a higher limit, broader coverage, and better service quality. In 2023, the GWP contribution from our customized insurance products was 61.6%.

12月，與人保壽險合作推出「達爾文重症8號-高級」。自2018年推出以來，達爾文重症監護系列產品已通過更高的限額、更廣的覆蓋範圍和更好的服務質量，為超過31萬名客戶提供了增強的保障。 2023年，我們的客製化保險產品的GWP貢獻率為61.6%。

In 2023, FYP facilitated by our independent financial advisors or IFA platform reached RMB350 million, representing a significant increase of 73% from the previous year. The number of high-performing IFA studios increased by 106%.

2023年，我們的獨立財務顧問或IFA平台促成的年度計畫達到人民幣3.5億元，較上年大幅成長73%。表現優異的 IFA 工作室數量增加了 106%。

In our direct-to-consumer segment, we launched a series of promotions and marketing initiatives to engage potential and high-value customers, which effectively reduced customer acquisition cost and boosted conversion rates. As we expand our customer base, we continue to remain highly committed to keeping our engagements with existing customers. In 2023, we served more than 1 million families with over 11 million insurance policies and assisted with 92,000 insurance plans amounting to a total claims settlement of RMB570 million.

在直接面向消費者領域，我們推出了一系列促銷和行銷措施來吸引潛在客戶和高價值客戶，有效降低了獲客成本並提高了轉換率。隨著我們擴大客戶群，我們將繼續高度致力於保持與現有客戶的合作。 2023年，我們服務了超過100萬個家庭，保單超過1100萬份，協助保險計劃9.2萬份，理賠總額達5.7億元人民幣。

Recognizing the growing demand for premium insurance and overseas asset allocation, we took actions rapidly and seized the opportunity in the Hong Kong insurance market, which has allowed us to diversify our revenue streams, bolster our operational resilience and enhance our risk management abilities. During the year, we partnered with China Pacific Life Insurance Hong Kong, to co-develop the "Jin Man Yi Zu Multi-Currency" product.

我們認識到保費保險和海外資產配置需求不斷增長，迅速採取行動，抓住香港保險市場的機遇，實現收入來源多元化、增強營運彈性和風險管理能力。年內，我們與中國太平洋人壽香港有限公司合作，共同開發「金滿一族多幣種」產品。

With the extension of our product portfolio, we have also expanded our Hong Kong insurance brokerage business, creating a comprehensive suite of high-end insurance services tailored for high-value customers. With the resumption of cross-border travel, we saw a substantial surge in the scale of our MCV business. The revenue contribution from our Hong Kong brokerage business already reached 6% of our total revenue in the fourth quarter.

隨著產品組合的擴展，我們也拓展了香港保險經紀業務，為高價值客戶打造了一整套高端保險服務。隨著跨境旅行的恢復，我們的MCV業務規模大幅成長。第四季香港經紀業務的收入貢獻已達到總收入的6%。

Beyond Hong Kong, we are actively exploring insurance business opportunities in Southeast Asia. Market statistics show that the average insurance penetration rate of Asia's emerging market was 3.6% in 2022 while that for life insurance was only 2.1%. In particular, the insurance penetration rate in Vietnam and Indonesia was at a low level ranging from 1% to 2%.

除香港外，我們正積極開拓東南亞的保險業務機會。市場統計顯示，2022年亞洲新興市場平均保險滲透率為3.6%，壽險僅2.1%。尤其是越南和印尼的保險滲透率處於1%至2%的較低水準。

We believe that the proven success of our business model can be replicated overseas, especially at suitable emerging market where the per capita disposable income continues to rise. We see that the potential in the insurance market in this region is massive, and we believe we are in a good position to capture this opportunity.

我們相信，我們的商業模式已被證實的成功可以在海外複製，特別是在人均可支配收入持續增長的合適的新興市場。我們看到該地區保險市場的潛力巨大，我們相信我們有能力抓住這個機會。

Finally, I am excited to share some of our advancements in the development of AI large language model for insurance applications. Huize has cumulatively served over 60 million insurance customers to date, amassing a wealth of data that encompasses not only our user profiles and claim statistics, but also product details and sales information. Leveraging the strength of our dual data pools, coupled with our industry-leading technology and innovation capabilities, we have launched a suite of tools powered by our AI marketing assistant.

最後，我很高興與大家分享我們在開發保險應用人工智慧大語言模型方面取得的一些進展。截至目前，慧擇已累計服務超過6,000萬名保險客戶，累積了大量數據，不僅包括使用者資料和理賠統計數據，還包括產品詳情和銷售資訊。憑藉雙數據池的優勢，加上業界領先的技術和創新能力，我們推出了一套由人工智慧行銷助理提供支援的工具。

These tools include the annuity calculator, an extensive insurance product knowledge bank and an intelligent chat box, all of which are widely adopted by our consultants and agents. To provide more color, our annuity calculator is designed to instantly and automatically display annuity payout upon calculation and clearly illustrate product features, reducing the time it takes for consultants to prepare product proposals and enabling them to quickly address users' inquiries. These AI-driven not only increased consultants' efficiencies, capacity, and conversion rate, but also improve the overall user experience by precisely pinpointing user needs and reducing wait time.

這些工具包括年金計算器、豐富的保險產品知識庫和智慧聊天框，所有這些工具都被我們的顧問和代理人廣泛採用。為了提供更多的色彩，我們的年金計算器可以在計算後立即自動顯示年金支出，並清楚地說明產品特徵，減少顧問準備產品提案的時間，使他們能夠快速解決用戶的詢問。這些人工智慧驅動的技術不僅提高了顧問的效率、能力和轉換率，還透過精確定位使用者需求並減少等待時間來改善整體使用者體驗。

Looking ahead, Huize is committed to capitalizing on the long-term growth opportunities of the insurance industry in China and Asia. We will enhance our ability to customize differentiated products and integrate online and offline product distribution and services in our home market. We will continue to invest in our market position in Hong Kong and actively pursue opportunities in the emerging markets of Southeast Asia.

展望未來，匯澤致力於掌握中國及亞洲保險業的長期成長機會。我們將增強差異化產品客製化能力，整合國內市場線上線下的產品分銷與服務。我們將繼續投資香港的市場地位，並積極尋求東南亞新興市場的機會。

Our goal is to identify addressable growth markets with supportive demographics and replicate our proven business model, further diversify our revenue streams to more markets, and elevate our brand awareness and recognition on the international stage. We are targeting a double-digit percentage revenue contribution from international markets in 2024.

我們的目標是確定具有支持性人口統計的潛在成長市場，並複製我們經過驗證的商業模式，進一步將我們的收入來源多元化到更多市場，並提高我們在國際舞台上的品牌知名度和認可度。我們的目標是到 2024 年國際市場的營收貢獻達到兩位數百分比。

At the same time, we have been investing in our own proprietary AI large language model and will strive to integrate our AI product throughout the entire insurance service chain to empower our business operations and ecosystem partners, which include insurance carriers, independent agents and distribution channels from the initial insurance product consultation to user engagement, marketing, risk management, customer service, and claims service.

同時，我們一直在投資自己專有的人工智慧大語言模型，並將努力將我們的人工智慧產品整合到整個保險服務鏈中，以賦能我們的業務營運和生態系統合作夥伴，包括保險公司、獨立代理人和分銷管道從最初的保險產品諮詢到使用者參與、行銷、風險管理、客戶服務和理賠服務。

This concludes my prepared remarks for today. I will now turn the call over to our CFO, Mr. Ron Tam, and he will provide an overview of our key financial highlights for the fourth quarter.

我今天準備的發言到此結束。我現在將把電話轉給我們的財務長 Ron Tam 先生，他將概述我們第四季的主要財務亮點。

Thank you, Mr. Ma and Harriet. Good evening, everyone, in the Asia time zone and good morning to everyone in New York.

謝謝馬先生和哈里特。亞洲時區的大家晚上好，紐約的大家早安。

As the macro economy and industry conditions gradually recover, we are very pleased to report that the total GWP facilitated on our platform for the year increased by 18.2% to RMB5.8 billion in 2023. We think that this growth is largely driven by our omnichannel distribution platform capabilities, our high-quality customer base, our diverse range of product offerings as well as our maiden contribution of international revenues from our expansion into the Hong Kong market in the second half of 2023.

隨著宏觀經濟和產業狀況逐漸復甦，我們很高興地報告，2023年我們平台促成的總GWP成長了18.2%，達到人民幣58億元。推動的經銷平台能力、優質客戶群、多元化的產品供應，以及我們於 2023 年下半年進軍香港市場而首次貢獻的國際收入。

Our efforts to acquire new customers have also become increasingly efficient with more than 212,000 new customers added to our ecosystem in the fourth quarter. By the end of the year, our total customer count has exceeded 9.3 million.

我們獲取新客戶的努力也變得越來越高效，第四季度我們的生態系統中新增了超過 212,000 名新客戶。截至年底，我們的客戶總數已超過930萬人。

We are proud to announce that we recorded a non-GAAP net profit of RMB72.3 million for the 2023 fiscal year, surpassing our previously given guidance of RMB60 million. Our fourth-quarter non-GAAP net profit of RMB16.4 million also marked our fifth consecutive quarter of profitability.

我們很自豪地宣布，2023 財年我們的非公認會計準則淨利潤為人民幣 7,230 萬元，超過了我們之前給出的人民幣 6,000 萬元的指導。我們第四季的非美國通用會計準則淨利潤為人民幣 1,640 萬元，也標誌著我們連續第五個季度獲利。

Our robust financial results are a testament to the effective execution of our key business strategies. To elaborate, first, we have consistently prioritize our strategic focus on long-term insurance products, which have contributed to over 90% of our gross written premium for 17 straight quarter.

我們強勁的財務表現證明了我們關鍵業務策略的有效執行。首先，我們始終將長期保險產品作為策略重點，連續 17 個季度貢獻了我們總保費的 90% 以上。

Secondly, we have continued to empower the capabilities of insurance agents through our superb distribution network, product innovation, and technological advancements. This has resulted in a significant 73.4% year-over-year increase in premiums generated by our IFA platform reaching RMB354 million in 2023.

其次，我們透過完善的經銷網絡、產品創新和技術進步，不斷增強保險代理人的能力。這使得我們的IFA平台產生的保費較去年同期大幅成長73.4%，到2023年達到人民幣3.54億元。

Thirdly, we continue to pursue upselling opportunities across a high-quality customer base. In 2023, the repeat purchase ratio for our long-term insurance products climbed by 6.9 percentage points year-over-year to 36.9%, reflecting the deepening loyalty and trust of our customers in our brand. And finally, we continue to optimize our operational efficiency and customer acquisition costs as reflected in the further improvement in our gross margin and expense ratio.

第三，我們繼續在優質客戶群中尋求追加銷售機會。 2023年，長期保險產品重複購買率年增6.9個百分點至36.9%，反映出顧客對我們品牌的忠誠度和信任度不斷加深。最後，我們持續優化營運效率和客戶獲取成本，這反映在毛利率和費用率的進一步改善。

As we look at our operational results, I want to highlight several key achievements that drove our strong performance. One, our first year premiums and renewal premiums increased by 42% and 4% year-over-year, respectively, indicating our ability to attract new customers and also engage with existing ones. Second, our persistency ratio for long-term life and health insurance remain at an industry high level. As of the end of the year, the 13th- and 25th-month persistency ratio stood above 95%.

當我們審視我們的營運表現時，我想強調推動我們強勁業績的幾項關鍵成就。首先，我們的首年保費和續保保費分別年增 42% 和 4%，這表明我們有能力吸引新客戶並與現有客戶互動。二是長期壽險和健康險持續率維持業界較高水準。截至年底，13個月、25個月持續率均在95%以上。

And third, the average ticket size for long-term savings insurance products, which has become increasingly important as a category for our distribution increased by 31% year over year to over RMB54,000 in 2023, demonstrating our continued success in upselling our existing customers. These highlights are just a few examples of a high-quality customer profile and our relentless efforts and successes in capitalizing on the lifetime value potential of our customers.

第三，長期儲蓄保險產品的平均客單規模（作為我們的分銷類別變得越來越重要）同比增長31%，到2023 年超過人民幣54,000 元，這表明我們在追加銷售現有客戶方面持續取得成功。這些亮點只是高品質客戶檔案以及我們在利用客戶終身價值潛力方面的不懈努力和成功的幾個例子。

In 2023, we proudly sustained a market-leading position in long-term insurance products in China. The FYP of our long-term health products increased by 19% year over year to approximately RMB500 million, while the FYP of our long-term life and annuity products surged 55% year over year to RMB1.7 billion. We will continue to pursue a balanced product mix between long-term health and savings categories to satisfy evolving customer needs and market environment.

2023年，我們自豪地維持了中國長期保險產品的市場領先地位。長期健康產品的首年收入年增19%至約人民幣5億元，長期壽險和年金產品的首年收入年增55%至人民幣17億元。我們將繼續追求長期健康和儲蓄類別之間的平衡產品組合，以滿足不斷變化的客戶需求和市場環境。

In parallel, we have actively diversified our product portfolio to include also customized P&C insurance products. This diversification has also paid off as the FYP from this business grew by 74% to approximately, RMB400 million in 2023, providing us with new and promising revenue stream diversification.

同時，我們積極多元化我們的產品組合，包括客製化的財產和意外保險產品。這種多元化也得到了回報，該業務的首年計劃增長了 74%，到 2023 年約為 4 億元人民幣，為我們提供了新的、有前途的收入來源多元化。

In addition, our expansion into the Hong Kong market yielded encouraging results with total international revenue contribution from Hong Kong, reaching 6% in the fourth quarter.

此外，我們向香港市場的擴張也取得了令人鼓舞的成果，第四季來自香港的國際收入貢獻總額達到6%。

Throughout the year, we have diligently maintained tight control over our marketing expenses and continued to streamline our operations to improve our profit margins and efficiency. Our gross margin improved to 37.4% in 2023 from 36.6% in 2022. This improvement reflects the enhanced customer acquisition efficiencies and the increased repeat purchases by existing customers. In 2023, our total operating expenses continued to decrease, falling by 15% year over year. Our operating expense ratio further improved to 33% in 2023 from 40% a year earlier, decreasing by 7 percentage points. We also achieved non-GAAP net margin of 6% for the full year of 2023.

全年，我們努力保持對行銷費用的嚴格控制，並繼續簡化運營，以提高利潤率和效率。我們的毛利率從 2022 年的 36.6% 提高至 2023 年的 37.4%。 2023年，我們的總營業費用持續下降，年減15%。我們的營業費用率從去年同期的40%進一步改善至2023年的33%，下降了7個百分點。 2023 年全年，我們的非 GAAP 淨利率為 6%。

And as of the end of 2023, our financial position remained strong as our combined balance of cash and cash equivalents stood at RMB249 million, which is more than USD30 million. In addition, with our commitment to drive shareholder value, we have continued to buy back shares on the open market under our existing mandate. And as of the end of 2023, we have repurchased an aggregate of approximately 1.5 million ADSs, which reiterates management's confidence in our long-term business model prospects.

截至2023年底，我們的財務狀況依然強勁，現金及現金等價物合計餘額為人民幣2.49億元，超過3000萬美元。此外，由於我們致力於推動股東價值，我們繼續根據現有授權在公開市場上回購股票。截至2023年底，我們已回購了總計約150萬股ADS，這重申了管理層對我們長期業務模式前景的信心。

As we continue to solidify our market share in China, we are committed to capitalizing on the long-term digitalization opportunities of Asia's insurance industry. A key focus will be to increase our presence in the Hong Kong market, where we plan to expand the sales team and launch more customized products to capitalize on the robust MCV demand and also local insurance demand of high-value customers.

隨著我們不斷鞏固在中國的市場份額，我們致力於利用亞洲保險業的長期數位化機會。我們的重點將是增加我們在香港市場的影響力，我們計劃擴大銷售團隊並推出更多客製化產品，以充分利用強勁的 MCV 需求以及高價值客戶的本地保險需求。

We also proactively identify addressable gold markets with supportive demographics in Southeast Asia and largely untapped market potential to replicate our proven business model in China and further diversify our revenue stream to more markets and elevate our brand awareness and recognition on the international markets. We have set the target to achieve a double-digit revenue contribution from international markets by 2024. And this goal reflects our confidence in the scalability and replicability of our business model itself.

我們也積極尋找東南亞人口結構有利且尚未開發的潛在黃金市場，以在中國複製我們成熟的商業模式，進一步將我們的收入來源多元化到更多市場，並提高我們在國際市場上的品牌知名度和認可度。我們設定的目標是到2024年實現國際市場兩位數的收入貢獻。

Moving forward, we'll continue to leverage our deep customer insights and our own proprietary AI products to enhance our product innovation and upselling capabilities. We'll also further strengthen the integration of our online-to-offline ecosystem to enhance customer acquisition and engagement capabilities of our insurance agents by providing them with the tools and support in an increasingly competitive landscape. As we recognize the importance of resource allocation across the businesses, we will maintain a laser-sharp focus on driving for improvements in operating efficiency with the aim to enhance our overall capabilities.

展望未來，我們將繼續利用深入的客戶洞察和我們自己的專有人工智慧產品來增強我們的產品創新和追加銷售能力。我們也將進一步加強線上到線下生態系統的整合，透過在競爭日益激烈的環境中為保險代理人提供工具和支持，增強保險代理人的客戶獲取和參與能力。當我們認識到跨業務資源配置的重要性時，我們將繼續高度專注於推動營運效率的提高，以增強我們的整體能力。

And in summary, considering our robust AI-powered product innovation capabilities, our extensive online-to-offline distribution ecosystem, the empowerment of our insurance agents and IFA partners and a proactive overseas expansion efforts, we are continuing to be optimistic about the outlook for 2024.

總而言之，考慮到我們強大的人工智慧產品創新能力、廣泛的線上和線下分銷生態系統、保險代理人和IFA合作夥伴的賦能以及積極的海外擴張努力，我們對未來的前景繼續持樂觀態度。年。

We are now targeting a non-GAAP net profit of RMB60 million for 2024, with continued investments in new markets and AI. We are confident that our strategies will solidify our position as a leading insurance technology platform in Asia, connecting consumers, insurance carriers, and distribution partners digitally and efficiently through our data-driven and AI-powered solutions.

我們目前的目標是 2024 年非 GAAP 淨利潤達到 6,000 萬元人民幣，並持續投資新市場和人工智慧。我們相信，我們的策略將鞏固我們作為亞洲領先保險技術平台的地位，透過我們的數據驅動和人工智慧驅動的解決方案以數位化方式高效地連接消費者、保險公司和分銷合作夥伴。

And with that, we would now open up the call to questions. Thank you very much. And over to you, operator.

至此，我們現在開始提問。非常感謝。交給你了，接線生。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

[Amy Chen, Citi].

[艾米陳，花旗]。

Hi. First of all, I want to congratulate management on another profitable quarter. And then I have two questions. The first question is on the rationalization of compensation paid to the brokerage channel, which is called [Bao Xing Heyi] in Chinese. And I'm wondering how would this impact our brokerage income in terms of -- for example, for annuity products or say, for CI products, how would this impact our first-year commissions and the renewal commissions?

你好。首先，我要祝賀管理層又一個獲利的季度。然後我有兩個問題。第一個問題是關於支付給經紀管道的報酬的合理化，中文稱為「寶興合一」。我想知道這將如何影響我們的經紀收入，例如，對於年金產品或 CI 產品，這將如何影響我們的第一年佣金和續約佣金？

And the second question would be on customer demand. Going into 2024, how has the product mix shift so far, and what is our most mainstream or most popular products at the moment? Thank you.

第二個問題是關於客戶需求。進入2024年，到目前為止，產品結構發生了什麼樣的變化？謝謝。

Thank you, Amy. So I got two questions from you. The first one on "Bao Xing Heyi" impact on the business. So we know that this is a very important topic among investors' minds right now. And so far, I think that what we've seen -- which has happened already for bancassurance channels is that commission rates have generally been reduced by around 30% to 50% in that area.

謝謝你，艾米。所以我收到了你的兩個問題。第一個關於「寶興合一」對業務的影響。所以我們知道這是目前投資人心中非常重要的議題。到目前為止，我認為我們所看到的——銀行保險管道已經發生的情況是，該領域的佣金率普遍降低了 30% 至 50% 左右。

For the brokerage and agency channels, of course, the actual regulation have not come out officially, or in effective yet. But we do expect that this will come probably in the next few months, maybe as early as April. So what we envisage is that probably there will be a somewhat similar kind of impact on the brokerage and agency channels as we have seen in bancassurance channels in terms of commission rate impacts, generally speaking.

當然，對於券商和代理商管道來說，實際的監管還沒有正式出來，或者說還沒有生效。但我們確實預計這可能會在接下來的幾個月內發生，也許最早在四月。因此，我們預計，一般來說，經紀和代理商管道可能會受到與我們在銀行保險管道中看到的佣金率影響類似的影響。

And I think the impact on the offline so-called savings products will be more marked or more adversely impacted versus some of the online-only products. So that's what we see as the potential market impact on that question.

我認為，與某些純線上產品相比，對線下所謂儲蓄產品的影響將更加明顯或受到更不利的影響。這就是我們認為對該問題的潛在市場影響。

On your second question about customer demand and product mix shifts, I think we have also continued to see strong and sustained momentum in the long-term savings category or annuities. This has still been the most popular or most in-demand product among Chinese consumers due to the declining rate environment and probably the lack of attractive alternative investment alternatives in the China market right now with what we've seen in the real estate market and also underperforming equities market.

關於你關於客戶需求和產品結構轉變的第二個問題，我認為我們也繼續看到長期儲蓄類別或年金的強勁和持續的勢頭。由於利率下降的環境，以及我們在房地產市場上看到的情況，中國市場目前可能缺乏有吸引力的替代投資選擇，這仍然是中國消費者中最受歡迎或最受歡迎的產品股市表現不佳。

So the long-term savings products offered by insurance companies still represent a very viable and attractive investment product or wealth allocation product for general Chinese consumer. So we see that for the rest of this year, at least for the first quarter, we are still seeing very strong demand for savings products. And in particular, we have been distributing participating long-term savings products, and we are probably one of the leading online platforms to distribute that hopefully, the most popular participating product right now of the public market which is from Generali China. So we are probably one of the leading platforms distributing this product in the China market.

因此，保險公司提供的長期儲蓄產品對中國普通消費者來說仍然是一種非常可行且有吸引力的投資產品或財富配置產品。因此，我們看到，在今年剩餘時間裡，至少在第一季度，我們仍然看到儲蓄產品的需求非常強勁。特別是，我們一直在分銷分紅長期儲蓄產品，我們可能是分銷該產品的領先線上平台之一，希望這是目前公共市場上最受歡迎的分紅產品，來自忠利中國。因此，我們可能是在中國市場分銷該產品的領先平台之一。

So I think this is probably the -- this is going to be the mainstream product for the rest of the year. And we will continue to work hard to co-develop customized products in this category with some of the larger brand names, which we hopefully will be able to launch as early as April next month. So we will be looking to cooperate with one of the top brands in the China market for a customized -- for its exclusive long-term participating savings product. So those will be the answers to your questions, Amy.

所以我認為這可能是今年剩餘時間的主流產品。我們將繼續努力與一些較大的品牌共同開發該類別的客製化產品，我們希望最早能夠在下個月四月推出。因此，我們將尋求與中國市場的頂級品牌之一合作，為其客製化專屬長期分紅儲蓄產品。這些就是你問題的答案，艾米。

That is very clear. Thank you, Ron.

這是非常清楚的。謝謝你，羅恩。

Thank you. CoCo Gong, Morgan Stanley.

謝謝。龔可可，摩根士丹利。

Thank you very much, and congratulations on the very good results. I only have one question that's a little bit specific. Ron, you talked a lot about the savings products demand. And obviously, the protection is still on investors' mind, although the demand seems to be still kind of weak right now especially in China.

非常感謝，並祝賀取得了非常好的結果。我只有一個有點具體的問題。羅恩，您談到了很多關於儲蓄產品需求的問題。顯然，儘管目前需求似乎仍然疲軟，尤其是在中國，但投資者仍然關心保護。

So I want to understand since we can see a lot of data on this, do we see marginal improvement on critical illness like the long-term health insurance product? Specifically, are we seeing more customers -- new customers buying this insurance product? Or are you just seeing more existing customers buying more coverage? And do we see any other potential signs of marginal improvement in a specific product type? Thank you.

所以我想了解，既然我們可以看到很多這方面的數據，那麼我們是否看到像長期健康保險產品那樣的重大疾病的邊際改善？具體來說，我們是否看到更多客戶—新客戶購買這種保險產品？還是您只是看到更多現有客戶購買更多保險？我們是否看到特定產品類型有其他潛在的邊際改善跡象？謝謝。

Right. Thank you, CoCo. So question on customers' or consumers' demand on long-term health products, particularly in the critical illness type of products. I think we do see continued, or at least from our internal data, I mean, obviously, the savings category is what people want these days. And especially in the current macro environment, I think generally Chinese consumers have a relatively stringent budget to allocate the money.

正確的。謝謝你，可可。所以質疑顧客或消費者對長期健康產品的需求，特別是重症疾病類型的產品。我認為我們確實看到了持續的情況，或者至少從我們的內部數據來看，我的意思是，顯然，儲蓄類別是當今人們想要的。尤其是在當前的宏觀環境下，我認為中國消費者普遍都有比較嚴格的預算來分配資金。

So long-term savings or whole-life products are particularly participating products these days have drawn a lot of the customers' focus and budget. And so I think that this is why we still continue to see a relatively lukewarm growth in the long-term health categories, for example, critical illness, which has continued to be recovering slowly.

因此，長期儲蓄或終身產品尤其是分紅產品如今吸引了許多客戶的注意和預算。因此，我認為這就是為什麼我們仍然繼續看到長期健康類別的相對溫和增長，例如危重疾病，該類別一直在緩慢恢復。

We do see customers, existing customers and new customers, buying these products through our platform. It's not like the demand is not there. It's just that with the relative attention more towards savings products generally in the market -- and especially as a function of some intermediaries like ourselves, platforms like ourselves and our competitors and also generally insurance agents in the overall market, mainly pushing the distribution and sales of savings products, which has resulted in such a market phenomenon.

我們確實看到客戶、現有客戶和新客戶透過我們的平台購買這些產品。並不是說沒有需求。只是市場上普遍對儲蓄產品相對關注更多——尤其是像我們這樣的中介機構，像我們自己和我們的競爭對手這樣的平台以及整個市場上一般的保險代理人，主要是推動分銷和銷售儲蓄產品的出現，就造成了這樣的市場現象。

So what we'll do is we will continue to innovate on the health products. So we mentioned that we have just launched Darwin No.8, which is a new version of our long-term successful brand IP in the critical illness category. And this time, we actually are now working with PICC, which Mr. Ma mentioned earlier in the call. We are working now with large insurers on these customized products. So hopefully, create more attention among our customer set and to drive more sales in these categories.

所以我們要做的就是繼續在健康產品上進行創新。所以我們提到我們剛剛推出了達爾文8號，這是我們在重疾類別長期成功的品牌IP的新版本。而這一次，我們實際上正在與人保財險合作，馬先生之前在電話中提到過這一點。我們現在正在與大型保險公司合作開發這些客製化產品。因此，希望能夠在我們的客戶群中引起更多關注，並推動這些類別的更多銷售。

Thank you very much. That's very clear. Thank you.

非常感謝。這非常清楚。謝謝。

Thank you. Yuyu Zhang, CICC.

謝謝。張宇宇，中金公司。

Thanks management, congrats on your good result. It's Yuyu Zhang from CICC. And I have one question here, and my question is for the To-A segment. Could you give us some more color on how is it going so far? And we've noticed that recently Insurance Association of China has asked for industry advice about agent classification. So if it implements, I think it may have some effect on To-A business. So could you share some more views on that? Thank you.

謝謝領導，恭喜你取得好成績。我是中金公司的張宇宇。我這裡有一個問題，我的問題是針對 To-A 細分市場的。您能為我們提供更多關於目前進展的資訊嗎？我們注意到，近期中國保險業協會就代理人分類徵求了業界意見。所以如果它實施的話，我認為可能會對To-A業務產生一些影響。您能否就此分享一些更多的看法？謝謝。

Right. Thanks. And so we touched on the To-A business earlier in the opening remarks. I think this business line has continued to be very strong, at least in 2023. It is contributing almost 20% of our overall premium facilitated, and we continue to see strong growth in this business line.

正確的。謝謝。因此，我們在開場白中談到了 To-A 業務。我認為該業務線持續保持強勁勢頭，至少在 2023 年是如此。

So specifically, I think there's a number that I can share here. So FYP facilitated by the IFA platform, which is the To-A platform was RMB350 million last year, which is similar to -- which is a year-over-year increase of 73%. I think the most important thing is more and more independent agents or IFAs are now coming to our platform as partners because they find the three things that very much our competitive strengths.

具體來說，我認為我可以在這裡分享一些數字。所以去年IFA平台，也就是To-A平台推動的FYP是人民幣3.5億元，相當於－－年增73%。我認為最重要的是越來越多的獨立代理商或獨立財務顧問（IFA）現在作為合作夥伴來到我們的平台，因為他們發現了我們競爭優勢的三點。

Firstly, we have a very extensive product matrix from simple P&C products to the extensive life and health products that we have, in particular the customized exclusive Huize products that we co-developed with our insurance carriers. So I think that's a big draw to these independent agents to become associated with us as a partner.

首先，我們擁有非常豐富的產品矩陣，從簡單的財產險產品到豐富的壽險和健康產品，特別是我們與保險公司共同開發的客製化專屬匯澤產品。因此，我認為這對這些獨立代理商與我們成為合作夥伴具有很大的吸引力。

And secondly, I think obviously, because of our scale advantage, we earn top commission rates with most of the insurance carriers and thereby, these agents by plugging into our platform will be able to enjoy the revenue pick-up versus maybe partnering with another platform or as an agent inside an agency. So I guess these are the things that are helping us attract more and more agents to come.

其次，我認為顯然，由於我們的規模優勢，我們與大多數保險公司賺取最高佣金率，因此，這些代理商透過接入我們的平台將能夠享受收入增長，而不是與其他平台合作或作為機構內部的代理人。所以我想這些都是幫助我們吸引越來越多代理商前來的因素。

And I think finally, most importantly, we have the whole suite of digital tools that we have been mentioning across our opening remarks, which really helps digitalizing the customer journey for these agents and also help them manage customers very efficiently with our digital AI tools. And this I think then is quite a unique proposition in the Chinese market, at least.

我認為最後，最重要的是，我們擁有我們在開場白中提到的一整套數位工具，這確實有助於將這些代理商的客戶旅程數位化，並幫助他們使用我們的數位人工智慧工具非常有效地管理客戶。我認為這至少在中國市場是一個非常獨特的主張。

So just to touch upon the IFA business model, I think what we're looking to launch is, we want to replicate this into the rest of Asia. So I think we'll be starting with Hong Kong and also going into other parts of Southeast Asia. I think that's something that we think will be a very good value proposition to those local markets as well. So yeah, I think in short, it's performing very well, and it will continue to be -- it will be increasingly important as a revenue stream and business network.

因此，就 IFA 商業模式而言，我認為我們希望推出的是，我們希望將其複製到亞洲其他地區。所以我認為我們將從香港開始，然後進入東南亞其他地區。我認為這對當地市場來說也將是一個非常好的價值主張。所以，是的，我認為簡而言之，它的表現非常好，並且將繼續進行——作為收入來源和業務網絡，它將變得越來越重要。

And your second part of the question is regarding the I believe is the [Fen Jie Fen Le]. So the agent qualification exams and the differentiation of different gradings. So what we understand is right now there is four grades for agents, grade one to grade four. So for grade one, you can sell all the complicated products, life and health savings, whatnot, and grade four, you only sell very simple products like protection or P&C.

你問題的第二部分是關於我認為是[芬傑芬樂]。所以代理人資格考試還有不同等級的分次。所以我們了解到現在代理有四個等級，一級到四級。因此，對於第一級，您可以銷售所有複雜的產品，生命和健康儲蓄等，而第四級，您只能銷售非常簡單的產品，例如保護或財產和意外險。

What we think that is for most of the agent partners that we have on now To-A business or IFA platform, most of these are relatively experienced agents that has been -- who have been working in the industry for over five years on average. So this regulatory impact will be minimal because I think most of these experienced agents have already qualified or can qualify for the higher tiers of the classifications, and therefore it will not have a limiting impact on what they can sell or distribute to the customers.

我們認為，對於現在 To-A 業務或 IFA 平台上的大多數代理合作夥伴來說，他們中的大多數都是經驗相對豐富的代理，平均在該行業工作了五年以上。因此，這種監管影響將是最小的，因為我認為這些經驗豐富的代理商中的大多數已經有資格或有資格獲得更高級別的分類，因此不會對他們可以向客戶銷售或分銷的產品產生限制性影響。

And I think the same can be applied to our in-house consultants and agents in the Huize platform. And most of our high-performing agents can qualify under these new regulations. And we think that the draft paper has been out, but the effective date will likely to be next year.

我認為這也適用於慧擇平台的內部顧問和代理商。我們的大多數高績效代理商都符合這些新規定的資格。我們認為草案已經出來，但生效日期很可能是明年。

Thank you. At this point, we have no further questions. So I would like to hand the conference back to Harriet for closing remarks.

謝謝。至此，我們沒有其他問題了。因此，我想將會議交還給 Harriet，讓其致閉幕詞。

Thank you, operator. So on behalf of Huize's management team, we would like to thank you for your participation in today's call. And if you require further information, please feel free to reach out to Huize's IR team. And thank you again for joining us today. This concludes the call.

謝謝你，接線生。因此，我們謹代表匯澤的管理團隊感謝您參加今天的電話會議。如果您需要更多信息，請隨時聯繫匯澤的 IR 團隊。再次感謝您今天加入我們。通話就此結束。

Thank you.

謝謝。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。