Huize Holding Ltd (HUIZ) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to Huize's fourth-quarter and full year 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded, and the webcast replay will be available on Huize's IR website at ir.huize.com under the Events and Webcast section.

女士們，先生們，感謝大家的支持，歡迎參加慧澤 2024 年第四季和全年收益電話會議。（操作員指示）今天的電話會議正在錄製，網路直播重播將在 Huize 的 IR 網站 ir.huize.com 的「活動和網路直播」部分下提供。

I'd like to hand the conference over to your speaker host today, Mr. Kenny Lo, who is this Investor Relations Manager. Please go ahead, Kenny.

我想將今天的會議交給你們的演講主持人，投資者關係經理 Kenny Lo 先生。請繼續，肯尼。

Thank you, operator. Hello, everyone, and welcome to our fourth-quarter and full year 2024 earnings conference call. Our financial and operational results were released earlier today and are currently available on both our IR website and GlobeNewswire services.

謝謝您，接線生。大家好，歡迎參加我們的 2024 年第四季和全年財報電話會議。我們的財務和營運結果已於今天早些時候發布，目前可在我們的 IR 網站和 GlobeNewswire 服務上查閱。

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 release and filings with the SEC.

在我們繼續之前，我想請您參閱我們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陳述。另請注意，我們今天將討論非公認會計準則指標，這些指標在我們的收益報告和向美國證券交易委員會提交的文件中進行了更詳細的解釋。

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, we start the call by providing an overview of the company's performance and operational highlights followed by Mr. Tam, who will go over our financial results for the fourth-quarter and full year of 2024 before we open up the call for questions.

今天與我們一起出席的有我們的創始人兼首席執行官馬存軍先生；首席營運官李江先生；聯席首席財務官肖明漢先生；以及聯席首席財務官 Ron Tam 先生。馬先生，我們首先會概述公司的業績和營運亮點，然後譚先生會介紹我們 2024 年第四季和全年的財務業績，之後我們才能開始提問。

I will now turn the call over to Mr. Ma.

現在我將把電話轉給馬先生。

(interpreted) In 2024, the insurance industry continued to deepen the implementation of unified commissions and fees in reporting and underwriting. The industry entered a (inaudible) era. Further, China's State Council released its 10 measures which outlined the comprehensive regulations for the high-quality development of the industry.

(解讀)2024年，保險業持續深化推行報銷、核保手續費統一制度。該行業進入了一個（聽不清楚）時代。此外，中國國務院也發布了10條措施，為推動產業高品質發展提供了全面規定。

In response to these policy directions and market trends, we proactively adjusted our strategic focus and expanded our diversified and customized product offerings. As generative AI accelerates the transformation of the industry, we have implemented a forward-looking AI-plus strategy transitioning from the application of intelligent tools to a comprehensive restructuring of our surface ecosystem.

針對這些政策方向和市場趨勢，我們主動調整策略重點，擴大多樣化和客製化的產品供應。在生成式人工智慧加速產業變革的背景下，我們實施了前瞻性的AI+策略，從智慧工具的應用轉向全面重構表層生態系統。

This strategic shift has enhanced the product matching and surface efficiency, establishing Huize as the benchmark for the intelligent transformation of the industry. Meanwhile, our accelerated international business development has built a strong second growth engine, filling high quality sustainable growth. As a result, in 2024, total revenue increased by 4.5% year over year to RMB1.25 billion, and both growth rate premiums, GWP; and first year premiums, FYP, facilitated across our platforms achieved record heights.

此次策略轉變提升了產品配對性和表面效率，使慧澤成為產業智慧化轉型的標竿。同時，國際業務加速發展，打造了強勁的第二成長引擎，實現了高品質的永續成長。因此，2024年總收入年增4.5%至人民幣12.5億元，保費、總收入均實現成長率；我們平台上促成的首年保費 (FYP) 創下了歷史新高。

In 2024, GWP amounted to RMB6.16 billion, up by 6% year over year. Full year FYP reached RMB3.42 billion, up by 31% year-over-year. In terms of our product mix measured by FYP, whole-life premiums contributed RMB1.84 billion, surging by 76% year over year. While long-term health insurance contributed RMB520 million, up 2% year over year.

2024年總營收達61.6億元，年增6%。全年保費達34.2億元，較去年成長31%。以首年保費計算，我們的產品結構中，終身壽險保費貢獻人民幣18.4億元，較去年成長76%。長期健康保險貢獻5.2億元，較去年成長2%。

Influenced by the downward adjustment in assumed interest rates, we registered a stable growth in savings insurance products, accounting for 68.6% of total FYP, representing a year over year increase of 5.5%. Meanwhile, our short-term insurance business recorded robust double-digit growth with premiums of 23% year over year to approximately RMB550 million, further strengthening the diversity of our product portfolio.

受假設利率下修影響，儲蓄型保險產品規模穩定成長，佔首年保費總額的68.6%，較去年同期成長5.5%。同時，我們的短期保險業務錄得強勁的兩位數成長，保費年增23%至約人民幣5.5億元，進一步增強了我們產品組合的多樣性。

Driven by profound customer insights and outstanding service capabilities, we remain committed to delivering a premium service experience to high-grade customers. By the end of the fourth quarter, accumulative number of insurance users further increased to 10.6 million, with 380,000 new users added during the quarter. The average age of customers who purchased long-term insurance products in 2024 was 35.1 years old, among which 68.4% were located in higher tier cities, reflecting our high-quality customer profile.

憑藉著深刻的客戶洞察和卓越的服務能力，我們致力於為高端客戶提供優質的服務體驗。截至第四季末，累計保險用戶數進一步增至1,060萬戶，當季新增用戶38萬戶。2024年購買長期保險產品的客戶平均年齡為35.1歲，其中68.4%位於高線城市，體現了我們高品質的客戶結構。

The average FYP purchase size for savings products reached approximately RMB75,000 in 2024, up by 39% year over year. By the end of December 2024, 13th month and 25th month persistency ratios for long-term insurance both exceeded 95%, continuing to outperform industry averages.

2024年首年儲蓄產品平均購買規模達約7.5萬元人民幣，較去年同期成長39%。截至2024年12月底，長期險種13個月、25個月繼續率均超過95%，持續優於同業平均。

As of the end of the fourth quarter, we maintained a strong partnerships with 139 insurance companies, continuing to develop and launch customized products across a diverse range of insurance categories. In 2024, we partnered with Aviva-COFCO to launch Fu Man Jia, a customized participating whole-life insurance product that combines protection and investment features, which received widespread market recognition.

截至第四季末，我們與139家保險公司保持著穩固的合作關係，持續開發並推出涵蓋多種保險類別的客製化產品。2024年，我們與中英合作推出兼具保障與投資功能的客製化分紅終身壽險產品“福滿家”，獲得市場廣泛認可。

Additionally, we partnered with Ping An to introduce the upgraded Chang Xiang An Number 2, long-term medical insurance product, which has been continually optimized in three key areas, including ease of enrollment, lower deductibles, and enhanced value-added services to better meet the growing public demand for high-quality healthcare protection.

此外，我們與平安合作推出升級版長享安2號長期醫療保險產品，該產品在投保便捷化、降低免賠額、提升增值服務三大關鍵方面持續優化，更好地滿足公眾日益增長的高品質醫療保障需求。

In the fourth quarter of 2024, GWP contribution from our customized insurance products accounted for 53.1% of total premiums, reflecting the recognition and confidence in our product development capabilities from both customers and the broader insurance industry.

2024年第四季度，我們客製化保險產品的保費貢獻佔總保費的53.1％，反映了客戶和整個保險業對我們產品開發能力的認可和信心。

In 2024, the insurance industry accelerated its transformation to a greater intelligence and efficiency. Upholding a long-term commitment to digitalization, we have developed substantial advantages in both product and sales data alongside industry-leading technological innovation capabilities. During the year, we launched an intelligent client service system combining smart navigation with human-assisted services to provide a 24/7 response mechanism.

2024年，保險業加速轉型為智慧化、效率化。我們長期致力於數位轉型，在產品數據、銷售數據等方面都取得了顯著優勢，技術創新能力也處於產業領先地位。年內，我們上線了智慧客服系統，將智慧導航與人工服務結合，提供7x24小時回應機制。

Additionally, we developed an intelligent assistance for our mid- to high-end medical insurance products to assist our client service personnel with product recommendations, policy interpretation, and after-sale support. This system has achieved a 95% accuracy rate in responses and significantly accelerated the development of our intelligence surface ecosystem.

此外，我們也針對中高端醫療保險產品開發了智慧助手，協助客服人員進行產品推薦、保單解讀、售後支援等。此系統的響應準確率已達到95%，大大加速了我們智慧表面生態系統的發展。

In Q4, we launched the Feng Tung underwriting risk control engine system, establishing an intelligent automated and digital underwriting risk control platform to enhance risk measurement across multiple scenarios and all insurance prototypes. Leveraging Huize's 19 years of operations, proprietary Feng Tung system integrates multi-dimensional dimensional internal risk data, including underwriting claims and fraud detection and connects to high-quality external data sources to build a robust lying system data system.

第四季度，我們上線了豐通承保風控引擎系統，建立了智慧自動化、數位化的承保風控平台，增強了跨場景、全險種的風險度量。依托慧澤19年的營運經驗，自主研發的豐通系統整合了承保理賠、詐欺偵測等多維度的內部風險數據，並連結外部優質資料來源，建構了穩健的風險管理資料體系。

We proprietarily developed a disease classification system and algorithm tagging technology to accurately identify high-value insured individuals and high concentration rates. By incorporating external data such as fraud indicators, credit risks, occupations, and place of residence, we achieve more comprehensive risk assessment capabilities and significantly enhanced underwriting precision.

自主研發疾病分類系統與演算法標註技術，精準辨識高價值參保族群及高集中度族群。透過結合詐欺指標、信用風險、職業、居住地等外部數據，我們實現了更全面的風險評估能力，並顯著提高了核保精確度。

Meanwhile, we customize risk control rules and modules according to the specific characteristics of different insurance products, enabling the flexible application of risk control rules and models to provide customized risk management solutions. These have been successfully implemented in various products including Guardian Critical Care, Little Bee and Chang Xiang An.

同時，我們根據不同保險產品的具體特點，客製化風險控制規則和模組，實現風險控制規則和模型的靈活應用，提供客製化的風險管理解決方案。這些技術已成功應用於 Guardian Critical Care、Little Bee 和 Chang Xiang An 等多種產品。

Our verification engine with automated routes has reduced underwriting time to just 1.01 seconds per case on average, drastically improving operational efficiency. Since its launch, the Feng Tung system has maintained a positive controllable risk identification rate of between 2% and 30% across different product categories.

我們的自動化路線驗證引擎將核保時間縮短至平均每例僅 1.01 秒，大幅提高了營運效率。豐通系統自上線以來，在不同產品類別中均維持著2%至30%之間的正向可控風險識別率。

Key products saw a monthly claims reduction of 7% and health insurance products cumulatively reduced claims exposure by over RMB300 million. Overall, the system has achieved a claims ratio below the industry average. These outcomes have significantly strengthened business quality and ensured a stimulus user experience, and created a positive cycle between risk management capabilities and business growth.

重點產品單月理賠額下降7%，健康險產品累積降低理賠額超過3億元。總體而言，該系統實現了低於行業平均水平的索賠率。這些成果顯著增強了業務質量，確保了極佳的用戶體驗，並形成了風險管理能力與業務成長之間的良性循環。

Backed by our exceptional technological strengths, robust business capabilities, and extensive expertise in the Chinese market, we made significant and rapid strides in our international expansion in 2024. Our international brand, Poni Insurtech, successfully completed the acquisition of Vietnam's leading digital insurtech platform, Global Care. In Q4, Global Care achieved a 32% sequential increase in total policies issued, with revenue growing 33% sequentially. As a strategic shareholder, Poni Insurtech has begun to undertake a comprehensive technology and business empowerment at Global Care.

憑藉卓越的技術實力、強大的業務能力以及對中國市場的廣泛了解，我們在2024年的國際擴張中取得了長足而快速的進步。我們的國際品牌 Poni Insurtech 成功完成對越南領先的數位保險科技平台 Global Care 的收購。第四季度，Global Care 簽發的保單總數較上季成長 32%，營收季增 33%。Poni Insurtech身為策略股東，開始對Global Care進行全面的技術與業務賦能。

In October 2024, we launched GlobalCare.vn, a health insurance comparison platform integrated into the GSLL, offering Vietnamese consumers a high quality, transparent, and user-friendly insurance purchasing experience. Vietnam is a pivotal component of our international strategy and representing a significant strategic milestone in our long-term Asian expansion strategy.

2024 年 10 月，我們推出了 GlobalCare.vn，這是一個整合到 GSLL 的健康保險比較平台，為越南消費者提供高品質、透明且用戶友好的保險購買體驗。越南是我們國際戰略的重要組成部分，也是我們長期亞洲擴張戰略中的重要戰略里程碑。

Looking ahead, we plan to bring the AI agent model to core Southeast Asian markets, including Vietnam accelerating the localization and implementation of Huize's proven intelligent surface model from China. This will further enhance insurance surface efficiency and user experience in these markets.

展望未來，我們計劃將AI代​​理模型引入包括越南在內的東南亞核心市場，加速慧澤在中國成熟的智慧表面模型的在地化和實施。這將進一步提升這些市場的保險面效率和使用者體驗。

We believe the success and insights gained from our Vietnam operations in 2024 will strongly support our further expansion into Singapore and the Philippines in 2025 and other Southeast Asian markets in the longer term, helping us to achieve our target of 30% international business revenue contribution by 2026.

我們相信，2024年越南業務的成功和獲得的見解將有力地支持我們在2025年進一步擴展到新加坡和菲律賓，並在長期內擴展到其他東南亞市場，幫助我們實現到2026年國際業務收入貢獻率達到30%的目標。

In February 2025, amid rapid advancements in China's AI large language models, we fully integrated DeepSeek into the Huize app. This milestone enables seamless AI-driven interactions throughout the entire insurance purchasing journey, from consolation to policy issuance. We are among the first organizations in the insurance sector to deeply embed the AI model into consumer facing services and to establish an around the clock intelligent insurance service model.

2025年2月，在中國AI大型語言模式快速發展的背景下，我們將DeepSeek全面整合到會擇App。這一里程碑實現了從諮詢到簽發保單的整個保險購買過程的無縫人工智慧驅動互動。我們是保險業中最早將AI模式深度嵌入到消費者服務中，建立全天候智慧保險服務模式的機構之一。

By introducing the AI agent model, our AI-powered app now delivers 24/7 personalized insurance advisory support, giving customers always on intelligence service at their fingertips. This innovation significantly optimized the purchase process and holistically improves the user experience.

透過引入AI代理模型，我們的AI驅動應用程式現在可以提供全天候個人化保險諮詢支持，讓客戶隨時獲得智慧服務。這項創新顯著優化了購買流程，全面提升了使用者體驗。

In the first month since its launch, the AI-powered Huize that achieved breakthrough results. Customer acquisition effectiveness significantly improved with an activation rate exceeding 40%. New users, self-purchase rates and premium conversion efficiency also show improvements.

上線首月，AI賦能的慧擇就取得突破性成果。獲客效率顯著提升，啟動率超過40%。新增用戶、自購率、溢價轉換效率均有提升。

Combining power, natural language processing capabilities with the comprehensive insurance knowledge base from Huize, our intelligent recommendation system, (inaudible) precisely matches customers with suitable insurance products, further improving sales conversion rates.

我們的智慧推薦系統結合強大的自然語言處理能力和慧擇全面的保險知識庫，為客戶精準配對合適的保險產品，進一步提高銷售轉換率。

Additionally, the AI models' real-time interaction capabilities and ensure timely responses to customer inquiries. In the first month after the app's launch, the daily average number of users served exceeded 40,000, delivering a more convenient and efficient insurance service experience for our customers.

此外，AI模型的即時互動能力還能確保及時回應客戶的詢問。APP上線首月，每日平均服務用戶數突破4萬人次，提供客戶更便利、更有效率的保險服務體驗。

Looking ahead to 2025, our focus will be on developing an intelligent needs assessment system for user needs, precisely matching user profiles with product recommendations, further enhancing conversion rates, and setting a new benchmark for high-quality digital development within the industry.

展望2025年，我們將致力於打造面向使用者需求的智慧需求評估體系，精準配對使用者畫像與商品推薦，進一步提升轉換率，並樹立產業數位化高品質發展新標竿。

In 2024, we demonstrated a strong resilience amid industry shifts by leveraging profile market insights and product innovation to adapt our strategies with agility and achieve rapid high-quality growth in our international business.

2024年，我們展現出在產業變革中的強大韌性，憑藉精準的市場洞察和產品創新，靈活調整策略，實現國際業務快速、高品質的成長。

Looking ahead to 2025, we will dip in collaborations with insurance partners and develop more innovative customized products tailored to evolving market demands. By harnessing cutting edge AI technologies like DeepSeek, we aim to further enhance service efficiency and elevate customers' experiences while continually pursuing breakthroughs in product design and risk management to reinforce our leading market position.

展望2025年，我們將深入與保險合作夥伴的合作，開發更多創新的客製化產品，以滿足不斷變化的市場需求。透過利用DeepSeek等尖端人工智慧技術，我們旨在進一步提高服務效率並提升客戶體驗，同時不斷追求產品設計和風險管理的突破，以鞏固我們領先的市場地位。

Meanwhile, we will capture international market opportunities and expand our footprints in Southeast Asian markets. Through these initiatives, we aim to enhance our brand influence and build a more resilient, innovation-driven international business framework. Ultimately, we are committed to reinforcing our competitive position in the international market and delivering sustainable long-term value for customers, shareholders and partners.

同時，我們將抓住國際市場機遇，擴大東南亞市場的足跡。透過這些舉措，我們旨在提升品牌影響力，建構更具韌性、創新驅動的國際業務框架。最終，我們致力於加強我們在國際市場上的競爭地位，並為客戶、股東和合作夥伴提供可持續的長期價值。

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

我今天的準備發言到此結束。現在我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 Kenny. Good evening everyone in Hong Kong, Asia, and good morning, for those in the Americas. I realized there's been a very long opening remarks, so I'll be brief here on the results highlights.

謝謝馬先生和肯尼。亞洲香港的各位朋友晚上好！美洲的各位朋友早安。我意識到開場白已經很長了，所以我將在這裡簡要介紹結果重點。

So despite the challenging macroeconomic and regulatory environment overall in 2024, I think we have delivered a very resilient performance with both total GWP and FYP facilitated on a platform reaching record highs of RMB6.2 billion and RMB3.4 billion respectively. Our total revenue has increased 4.5% year over year and achieving a second consecutive year of non-GAAP profitability.

因此，儘管 2024 年宏觀經濟和監管環境總體充滿挑戰，但我認為我們仍然取得了非常有韌性的業績，平台上促成的總 GWP 和 FYP 分別創下人民幣 62 億元和人民幣 34 億元的歷史新高。我們的總收入年增4.5%，連續第二年實現非公認會計準則獲利。

We have achieved this by leveraging our efficient omni-channel distribution network, which integrates both online and offline channels, focusing on acquiring high-quality customers, offering innovative high value products, and deploying our proprietary AI solutions throughout the ecosystem. More importantly, we have also made significant progress in our international expansion strategy, which will help act as a key growth driver for our long-term sustainable development going forward.

我們透過利用高效的全通路分銷網路實現了這一目標，該網路整合了線上和線下通路，專注於獲取高品質客戶，提供創新的高價值產品，並在整個生態系統中部署我們專有的人工智慧解決方案。更重要的是，我們的國際化策略也取得了重大進展，這將成為我們未來長期永續發展的關鍵成長動力。

Over the course of 2024, we continue to strategically prioritize long-term insurance products in China, which have accounted for over 90% of our GAAP for the past five years. Our omni-channel distribution network and sophisticated AI tools are significantly enhancing our customer acquisition engagement capabilities. We have acquired approximately 380,000 new customers during the fourth quarter, increasing our total customer base to date of 10.6 million.

2024年，我們將繼續在策略上優先考慮中國的長期保險產品，過去五年來，這類產品占我們GAAP的90%以上。我們的全通路分銷網路和先進的人工智慧工具正在顯著增強我們的客戶獲取參與能力。我們在第四季新增了約 38 萬名客戶，迄今為止我們的總客戶群已增至 1,060 萬。

Repeat purchases for our long-term insurance products have increased by 3.3 percentage points to 40.2% in 2024, which underscores our ability to capture and capitalize on the LTP potential of a high-quality customer base through both upselling and cross-selling. Our open platform architecture continues to empower our national -- our internal financial advisors and also external independent financial advisors, IFAs, with total FYP from our 2A business increasing by 17% to RMB415 million in 2024.

2024 年，我們長期保險產品的重複購買率增加了 3.3 個百分點，達到 40.2%，這凸顯了我們透過追加銷售和交叉銷售來捕捉和利用高品質客戶群的 LTP 潛力的能力。我們的開放平台架構繼續為我們的全國內部財務顧問以及外部獨立財務顧問 (IFA) 提供支持，到 2024 年，我們 2A 業務的 FYP 總額將增長 17%，達到 4.15 億元人民幣。

I would also like to highlight several key achievements that drove a solid performance throughout the year. Our 13th and 25th month persistencies have reached a stable 95% over the year. Average ticket size for long-term savings products have surged by 39% to over RMB75,000, and premiums facilitated for short-term health and P&C products also increased by 23%. So RMB548 million in 2024.

我還想強調一下推動全年業績穩健成長的幾項關鍵成就。我們第 13 個月和第 25 個月的堅持率全年穩定達到 95%。長期儲蓄產品的平均保額飆升 39%，達到 75,000 元以上，短期健康和財產及意外傷害保險產品的保費也增加了 23%。因此2024年為5.48億元。

In terms of our liquidity position, our financial position remains very strong and robust with the combined balance of cash and cash equivalent of RMB233 million or USD32 million as of the end of 2024. In terms of our international expansion, Poni Insurtech, our international arm, continues to serve as the cornerstone of our growth strategy and delivered exceptional results in 2024.

就流動性狀況而言，我們的財務狀況依然非常強勁，截至 2024 年底，現金及現金等價物餘額合計為 2.33 億元或 3,200 萬美元。在國際擴張方面，我們的國際部門 Poni Insurtech 繼續作為我們成長策略的基石，並在 2024 年取得了卓越的業績。

Total revenue of our international businesses has grown to RMB228.7 million in 2024, with international revenue contribution reaching 18% for the year ended 2024, which is on track in achieving our stated 30% target by 2026.

到2024年，我們的國際業務總收入將成長至人民幣2.287億元，其中國際營收貢獻率將達到18%，可望實現我們設定的到2026年達到30%的目標。

In Vietnam, we continue to make meaningful strides in integrating the local operations with the broader expertise and capabilities of the Huize Group. Following the completion of the acquisition in Q3, our Vietnam business has achieved an impressive sequential growth, with growth within premiums increasing by 29% sequentially and revenue by 33%. Global Care has launched a customized family accident insurance products, which was co-developed with the Military Insurance Corporation, one of the leading P&C insurers in Vietnam.

在越南，我們繼續在將當地業務與慧澤集團更廣泛的專業知識和能力相結合方面取得有意義的進展。繼第三季完成收購後，我們的越南業務取得了令人矚目的環比成長，其中保費環比成長 29%，營收環比成長 33%。Global Care 推出了客製化的家庭意外保險產品，該產品由其與越南領先的財產保險公司之一軍事保險公司共同開發。

In addition, we are making steady progress toward expanding into Singapore and the Philippines markets with entry planned within the next 12 months. This will further diversify our revenue streams and create new growth drivers to enhance long-term shareholder value creation.

此外，我們正在穩步推進向新加坡和菲律賓市場的擴張，計劃在未來 12 個月內進入這兩個市場。這將進一步豐富我們的收入來源並創造新的成長動力，以增強長期股東價值創造。

Notably, on the AI front, we were among the earliest in China's intratech space to deeply integrate DeepSeek's model in February 2025. We deployed inside our mobile app for Huize. This enables us to deliver real-time customized and data-driven recommendations to our customers, which will strengthen customer acquisition and engagement capabilities for distribution partners and IFAs going forward. This also provides a very scalable model for technological foundation to accelerate our international expansion.

值得注意的是，在人工智慧領域，我們是中國科技產業最早在 2025 年 2 月深度整合 DeepSeek 模型的公司之一。我們在 Huize 的行動應用程式中進行了部署。這使我們能夠向客戶提供即時客製化和數據驅動的建議，這將加強分銷合作夥伴和 IFA 未來的客戶獲取和參與能力。這也為加速我們的國際擴張提供了一個非常可擴展的技術基礎模型。

In summary, we believe we are ideally positioned to capitalize on the opportunities which is created by China's evolving industry landscape, which is poised for healthy and long-term sustainable growth across the entire value chain. Through Poni Insurtech, we'll leverage a proven business model we find in China and advanced proprietary AI solutions to tap into the tremendous growth opportunities across Southeast Asia and the rest of the world, particularly in the young middle-class demographic.

總而言之，我們相信我們已做好準備，充分利用中國不斷發展的產業格局所創造的機遇，實現整個價值鏈的健康和長期可持續增長。透過 Poni Insurtech，我們將利用在中國成熟的商業模式和先進的專有人工智慧解決方案，挖掘東南亞和世界其他地區，尤其是年輕中產階級群體的巨大成長機會。

We are confident that our cutting edge technology and targeted market penetration strategy will solidify our position as Asia's leading insurance technology platform, connecting consumers, carriers and distribution partners digitally and efficiently through our data-driven and AI-powered solutions.

我們相信，我們先進的技術和有針對性的市場滲透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解決方案，以數位化和高效的方式連接消費者、承運人和分銷合作夥伴。

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

現在，我們開始提問。非常感謝您，現在交給接線員。

(Operator Instructions)

（操作員指示）

Qingqing Mao, CICC.

毛慶慶，中金公司。

I have two questions. My first question is about the commission tax regulation. I think it has been in place for almost one year. Has the one-off impact of this regulation already subsided? And has market computation improved since its implementation.

我有兩個問題。我的第一個問題是關於佣金稅收監管的。我認為它已經實施了將近一年了。這項法規的一次性影響是否已經消退？自實施以來，市場計算已經得到改善。

My second question is on AI, could you please elaborate on the specific ways in which AI technology can improve your operations and what can we expect in terms of the financial outcome? That's all.

我的第二個問題是關於人工智慧的，您能否詳細說明一下人工智慧技術可以改善您的營運的具體方式以及我們在財務結果方面可以期待什麼？就這樣。

Okay. Thank you, Qingqing, for joining us again, and your continue to support over the years. So your questions on two sides, the first one on the regulatory commission caps, and the effects of that on the brokerage channels.

好的。謝謝青青再次加入我們，也謝謝您多年來的支持。所以你的問題涉及兩個方面，第一個問題是關於監管佣金上限，以及其對經紀管道的影響。

I think the answer is, the regulations have been rolled out and officially implemented over the course of the year. And I think that the whole industry has now migrated into the new -- so-called new normal. Ever since September 1 of last year, all the new products that have been launched by the insurance companies have already incorporated the new commission structure.

我認為答案是，這些規定已經在今年內推出並正式實施。我認為整個產業現在已經進入新的——所謂的新常態。自去年9月1日起，各保險公司新推出的產品均已實施新的佣金結構。

So the short answer is yes. I think the impact has been felt, and I think it's already fully reflected in our financial results for the Q4, and also for the rest of the industry and our peers that are also listed in the public markets. I think that similar results have been felt through across the industry.

所以簡短的回答是肯定的。我認為影響已經顯現，並且已經完全反映在我們第四季度的財務業績中，也反映在業內其他公司以及在公開市場上市的同行中。我認為整個產業都感受到了類似的結果。

In terms of the regulatory impact itself, on the focus channels and agencies that's already been felt, we would like to note that for the regulatory implementation on the tied agency channel, this has not yet been implemented, and we are expecting this to be effective sometime towards the middle to later part of this year.

就監管影響本身而言，對於已經感受到的重點管道和代理機構，我們想指出的是，對於綁定代理管道的監管實施，這尚未實施，我們預計這將在今年中後期生效。

And with that expectation, we do believe that it could be incrementally positive for the broker and agencies' channels, including ourselves, given that right now, the regulatory framework has not been fully implemented across all different channels. So again, the fourth-quarter results have fully reflected the new regulatory environment for our business models and as well as for the rest of the industry.

基於這樣的預期，我們確實相信，這對經紀商和代理商的管道（包括我們自己）來說可能會產生積極的影響，因為目前監管框架尚未在所有不同管道中全面實施。因此，第四季度的業績充分反映了我們的商業模式以及其他行業的新監管環境。

In terms of the competitive landscape, we would like to comment that very likely with the implementation of the commission caps, market share is likely to be more consolidated among the top tier players, including ourselves, and maybe some of the listed peers. And as a result, we do believe that the competitive dynamics would become -- in terms of a long-term perspective, more healthy and more sustainable, and very likely that the market share will be increasingly consolidated and concentrated among the top tier players.

就競爭格局而言，我們想說的是，隨著佣金上限的實施，包括我們自己以及一些上市同行在內的頂級參與者的市場份額可能會更加鞏固。因此，我們確實相信，從長遠來看，競爭態勢將變得更加健康、更加永續，而且市場份額很可能會日益鞏固並集中在頂級企業手中。

So I guess that's the first question, and I think that for Huize, I think that we have a natural advantage when smaller players exit the market. And while market share is concentrated in top players, because we have a very flat hierarchy, and much lower nimble cost base compared to maybe, in particular, the traditional brokers that's operating in the market for a long time, we do have a very natural cost structure advantage.

所以我想這是第一個問題，我認為對慧澤來說，當小型企業退出市場時，我們有天然的優勢。雖然市場份額集中在頂級參與者手中，但由於我們的層級非常扁平，與在市場上運營了很長時間的傳統經紀商相比，我們的成本基礎要低得多，因此我們確實具有非常自然的成本結構優勢。

Particularly with respect to customer acquisition, they've always been the -- rely on the platform model, the open platform model to acquire customers rather than an agent led model. That's the number one. And number two, I think the AI evolution and in the actual deployment of AI technology across our different business scenarios on the platform has also accelerated that advantage towards the online operators or digital players like ourselves.

特別是在客戶獲取方面，他們一直依賴平台模式、開放平台模式來獲取客戶，而不是代理主導的模式。這是第一點。第二，我認為人工智慧的發展以及在我們平台上不同業務場景中人工智慧技術的實際部署也加速了我們這樣的線上營運商或數位參與者的優勢。

So on AI technology, I think that Mr. Ma has actually shared a lot of details on how AI tech is being implemented across our operations. I think that in terms of the financial outcome, if you will, right? So what would that translate into our financial results. I think very likely that over the course of the next few years, you'll see that the biggest contribution from the AI is that the fixed cost base could be much more nimble and that, I think the efficiency can be much more, amplified. Basically, with less human resources investment, we can support a much scalable operations. So meaning that operating leverage will likely increase by multifold.

關於人工智慧技術，我認為馬雲實際上已經分享了許多關於人工智慧技術如何在我們的營運中實施的細節。我認為就財務結果而言，如果你願意的話，對嗎？那麼這會對我們的財務表現產生什麼影響呢？我認為，在接下來的幾年裡，你很可能會看到人工智慧的最大貢獻是固定成本基礎可以更靈活，而且我認為效率可以得到更大的提升。基本上，用較少的人力資源投入，我們就能支援更具可擴展性的營運。這意味著經營槓桿可能會倍增。

Scalable business growth without the need of deploying a lot more human resources to support, for example, the conversion of customers or especially in the customer service front. I think that AI can resolve or deal with 95% of the customer inquiries and services that's required on a normal cost business. And I think that the AI agent would be a key anchor for us going forward in terms of further investments into improving customer journey and using and utilizing AI as a major tool, a scalable tool to acquire customers at large.

可擴展的業務成長，無需部署更多的人力資源來支持，例如客戶轉換或特別是在客戶服務方面。我認為人工智慧可以解決或處理正常成本業務所需的 95% 的客戶諮詢和服務。我認為，人工智慧代理將成為我們未來進一步投資改善客戶旅程以及使用和利用人工智慧作為主要工具、可擴展工具來廣泛獲取客戶的關鍵支柱。

So that is something that we have already launched through the DeepSeek integration in February. We're seeing some initial encouraging results. And I think that over the course of the next few quarters, we'll be happily sharing additional milestones that we -- as we achieve them.

這是我們二月份已經透過 DeepSeek 整合推出的產品。我們看到了一些初步令人鼓舞的結果。我認為，在接下來的幾個季度中，我們將很高興地分享我們實現的更多里程碑。

So hopefully that answers your questions, Qingqing. Thank you.

希望這能解答你的疑問，青青。謝謝。

Amy Chen, Citi.

花旗銀行的 Amy Chen。

(spoken in foreign language)

（用外語說）

Thank you, Amy, again for joining us again and continuing to support us. Maybe I can help you translate your questions for you --

再次感謝艾米加入我們並繼續支持我們。也許我可以幫你翻譯你的問題--

I can translate the question. Yeah. So I have two questions. The first one, is regarding to the trends of operating expenses in the fourth quarter. We noted that actually both selling expenses and G&A expenses, so a significant year-over-year growth in the fourth quarter last year. I wanted to ask what's the main rationale behind this trend.

我可以翻譯這個問題。是的。我有兩個問題。第一個，關於第四季營業費用的走勢。我們注意到，實際上銷售費用和一般及行政費用在去年第四季都出現了顯著的同比增長。我想問一下這種趨勢背後的主要原因是什麼。

And the second question is regarding to the gross profit margin as well as the net profit guidance for the year of 2025. We noted that actually, after the rationalization of commission in the broker channel, the gross profit margin actually was compressed to around 30% in the year of 2024. I'm wondering if we would likely to see some margin improvement going ahead to the year of 2025 given our investments in AI and the potential improvement in efficiency. Thank you.

第二個問題是關於毛利率以及2025年的淨利預期。我們實際上註意到，在經紀通路佣金合理化之後，到2024年毛利率實際上被壓縮到了30%左右。我想知道，考慮到我們在人工智慧方面的投資和效率的潛在提升，到 2025 年，我們是否有可能看到利潤率提高。謝謝。

Thank you, Amy. So three questions. I think the first one, let me address that first. So there's some sequential growth on some of the expense accounts. I think that one of the main reasons to do that is we actually implemented some further restructuring in Q4 in terms of our personal headcount in the fourth quarter.

謝謝你，艾米。所以有三個問題。我認為是第一個問題，讓我先解決這個問題。因此，一些費用帳戶出現了連續成長。我認為這樣做的主要原因之一是我們實際上在第四季度對員工人數進行了進一步的調整。

So that has led to some one-time, one-off cost we associated with that exercise. And we do have made some further AI investments in Q4, so that has led to some modest increase in the expense items.

因此，這導致了我們與該演習相關的一些一次性成本。我們確實在第四季度對人工智慧進行了一些進一步的投資，因此導致支出項目略有增加。

So I think over the course of 2025, I think one of the key focus was obviously to further utilize and deploy AI throughout the whole business operations on all fronts on the front end, on the mid-off and back office. I think there's a lot of room for us to further drive cost savings and efficiency in the mid to back office in the tunes of double-digit percentage.

因此，我認為在 2025 年，我認為重點之一顯然是在整個業務運營的各個方面（前端、中台和後台）進一步利用和部署人工智慧。我認為，我們還有很大的空間來進一步推動中後台部門的成本節約和效率，達到兩位數的百分比。

So AI definitely would be leveraged and deployed at large in terms of not just customer acquisition and customer service, but also on the normal cost business operations. So I would note that in Q4, those are relatively one-off trends. So in 2025, I think that we are still targeting to drive a year-over-year decrease in the operating expense ratios across the three key line items there.

因此，人工智慧肯定會被廣泛利用和部署，不僅在客戶獲取和客戶服務方面，而且在正常的成本業務運營方面。因此，我想指出，在第四季度，這些都是相對一次性的趨勢。因此，我認為，到 2025 年，我們的目標仍是推動三個關鍵項目的營運費用率逐年下降。

In terms of gross margin trends, I think, yes, you do note that correctly, that there has been some depression in gross margins over the course of the last few quarters, but I do know that in Q4 of this year or 2024, our group gross margin has actually recovered to around 34.7%. So I think that our outlook for 2025 is definitely to maintain at least that kind of the low to mid-30 range grows margins and ideally, the investments that we're making on the AI front would drive further gross margin improvement and expansion, particularly on the customer acquisition front because that hopefully would drive more scalable, direct-to-see customer acquisitions at low cost.

就毛利率趨勢而言，我想，是的，您確實正確地註意到了這一點，在過去幾個季度中，毛利率有所下降，但我知道，在今年第四季度或 2024 年，我們集團的毛利率實際上已經恢復到 34.7% 左右。因此，我認為我們對 2025 年的展望肯定是至少保持 30% 左右的低點到中位數成長利潤率，理想情況下，我們在人工智慧方面的投資將推動毛利率的進一步提高和擴張，特別是在客戶獲取方面，因為這有望以低成本推動更具可擴展性、直接的客戶獲取。

So I think, hopefully, the gross margin line can improve further. And in terms of the guidance for 2025, we do guide towards a profitable full year of 2025, and we are targeting mid-single digit kind of net profit margin for now. I think that the earnings growth will also be driven by our continued business momentum in the international revenue fund. Obviously, I'm referring to the large contribution but not right now from our Hong Kong business.

因此，我希望毛利率能夠進一步提高。就 2025 年的預期而言，我們確實預期 2025 年全年將實現盈利，目前我們的目標是實現中等個位數的淨利潤率。我認為獲利成長也將受到國際收入基金持續業務動能的推動。顯然，我指的是巨大的貢獻，但目前還不是來自我們的香港業務。

And also, we will be further deploying investments into the two new Southeast Asian markets that we've mentioned just now in the call, and also, investment will be made in AI. So overall, I think 2025, we're looking at profitable year and looking at a reasonable mid-single digit type of profit margin, net profit margin.

此外，我們也將進一步向剛才電話會議中提到的兩個東南亞新市場投入投資，同時也將在人工智慧領域進行投資。所以總的來說，我認為到 2025 年，我們將迎來獲利年，利潤率和淨利潤率將達到合理的中等個位數。

It's very clear.

非常清楚。

Thank you. We have reached the end of the question-and-answer session. And with that, I'll now turn the conference back to Mr. Kenny Lo for closing comments.

謝謝。問答環節已結束。現在，我將會議交還給 Kenny Lo 先生，請他發表最後評論。

Thank you, operator. In closing, on behalf of Huize's 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.

謝謝您，接線生。最後，我謹代表慧澤管理團隊感謝您參加今天的電話會議。如果您需要任何進一步的信息，請隨時與我們聯繫。感謝您今天加入我們。通話到此結束。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。