Huize Holding Limited Reports Strong Q3 2024 Results, Driven by AI Solutions and International Expansion

Huize Holding Limited Reports Third Quarter 2024 Unaudited Financial Results - Huize Holding (NASDAQ:HUIZ)

SHENZHEN, China, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Huize Holding Limited, ("Huize", the "Company" or "we") HUIZ, a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today announced its unaudited financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Financial and Operational Highlights Record high insurance premiums: Gross written premiums ("GWP") reached a quarterly record high of RMB2,060.7 million in the third quarter of 2024, compared to RMB1,245.1 million in the same period of 2023. First year premiums ("FYP") more than doubled year-over-year to RMB1,354.4 million in the third quarter of 2024, driven by strong demand for long-term savings products, our sophisticated product innovation capabilities, and our omnichannel distribution platform.Increasing contribution from international businesses: Alongside robust domestic demand, revenue contribution from our international businesses surged to 19% in the third quarter of 2024, up 8 percentage points sequentially, driven primarily by our steady growth of the Hong Kong business. The cumulative number of insurance clients served broke through a significant milestone reaching 10.1 million as of September 30, 2024. Huize cooperated with 123 insurer partners in mainland China and internationally, including 77 life and health insurance companies and 46 property and casualty insurance companies, as of September 30, 2024.As of September 30, 2024, cash and cash equivalents were RMB242.6 million (US$34.6 million). Mr. Cunjun Ma, Founder and CEO of Huize, said, "We delivered a very strong set of business results, with total GWP reaching a record quarterly high of over RMB2 billion, and FYP more than doubling to RMB1.4 billion in the third quarter of 2024. This performance primarily reflects our core competencies in quality customer acquisition, product innovation, and AI solution development, allowing us to capitalize on the tremendous demand for long-term savings products amid an evolving regulatory regime in China, alongside our active diversification into international markets." "Additionally, we continued to attract high-quality mass affluent customers, as evidenced by our sustainably high average FYP ticket size of approximately RMB 79,000 for savings products, and our 13th- and 25th-month persistency ratio for long-term life and health insurance products, which remained among the highest levels in the industry at above 95%. We also enjoyed substantial efficiency gains thanks to the deployment of self-developed AI solutions across our operations, with our expense-to-revenue ratio improving by 5 percentage points year-over-year to 24%, enabling us to achieve net profit of RMB18.7 million and non-GAAP net profit1 of RMB18.3 million during the quarter." "Our overseas expansion, through our international arm, Poni Insurtech, gained stronger momentum, with revenue contribution from our international businesses reaching 19% in the third quarter, up 8 percentage points sequentially. This acceleration largely reflects our success in capturing market share in Hong Kong. Following the acquisition of Global Care, a leading Vietnam-based Insurtech company in September, we have been accelerating recruitment and empowering its distribution partners to accelerate business growth. We plan to enter two additional markets -- Singapore and the Philippines -- within the next 12 months, gradually expanding our footprint in markets across Southeast Asia with significant potential. We believe these strategic initiatives will further diversify our revenue streams, with a target of international revenue contributions to reach 30% by 2026." "Looking ahead, we remain committed to becoming a leading pan-Asian digital insurance distribution platform. While further solidifying our leadership in mainland China, we will replicate and localize our successful home market-proven business model to capitalize on the tremendous untapped market opportunities across Southeast Asia, reinforcing our strategy for sustainable, long-term growth." _________________ 1 Non-GAAP net profit is a non-GAAP financial measure. For more information on the non-GAAP net profit, please see the section of "Use of Non-GAAP Financial Measure Statement" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release. Third Quarter 2024 Financial Results GWP and operating revenue GWP facilitated on our platform was RMB2,060.7 million (US$293.6 million) in the third quarter of 2024, an increase of 65.5% from RMB1,245.1 million in the same period of 2023. Within GWP facilitated in the third quarter of 2024, FYP accounted for RMB1,354.4 million (or 65.7% of total GWP), an increase of 110.1% year-over-year. Renewal premiums accounted for RMB706.3 million (or 34.3% of total GWP), an increase of 17.6% year-over-year. Operating revenue was RMB369.7 million (US$52.7 million) in the third quarter of 2024, an increase of 26.4% from RMB292.4 million in the same period of 2023. The increase was primarily driven by the increase in FYP facilitated. Operating costs Operating costs were RMB267.0 million (US$38.0 million) in the third quarter of 2024, an increase of 41.0% from RMB189.3 million in the same period of 2023, primarily due to an increase in channel expenses. Operating expenses Selling expenses were RMB43.3 million (US$6.2 million) in the third quarter of 2024, a decrease of 11.9% from RMB49.1 million in the same period of 2023, primarily due to a decrease in personnel costs. General and administrative expenses were RMB32.1 million (US$4.6 million) in the third quarter of 2024, an increase of 49.5% from RMB21.5 million in the same period of 2023. This increase was primarily due to an increase in rental and utilities expenses. Research and development expenses were RMB14.0 million (US$2.0 million) in the third quarter of 2024, a decrease of 2.0% from RMB14.3 million in the same period of 2023, primarily due to a decrease in personnel costs. Net profit and Non-GAAP net profit for the period Net profit was RMB18.7million (US$2.7 million) in the third quarter of 2024, compared to net profit of RMB20.2 million in the same period of 2023. Non-GAAP net profit was RMB18.3 million (US$2.6 million) in the third quarter of 2024, compared to non-GAAP net profit of RMB18.5 million in the same period of 2023. Cash and cash equivalents As of September 30, 2024, the Company's cash and cash equivalents amounted to RMB242.6 million (US$34.6 million), compared to RMB249.3 million as of December 31, 2023. Conference Call The Company's management team will hold an earnings conference call at 7:00 A.M. Eastern Time on Tuesday, December 10, 2024 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, December 10, 2024). Details for the conference call are as follows: Event Title: Huize Holding Limited's Third Quarter 2024 Earnings Conference Call Registration Link: https://register.vevent.com/register/BI6f8fe18c6ef94d6baa48203895575679 All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a confirmation email containing dial-in numbers and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.huize.com. About Huize Holding Limited Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service. For more information, please visit http://ir.huize.com or follow us on social media via LinkedIn (https://www.linkedin.com/company/huize-holding-limited), Twitter (https://twitter.com/huizeholding) and Webull (https://www.webull.com/quote/nasdaq-huiz). Use of Non-GAAP Financial Measure Statement In evaluating our business, we consider and use non-GAAP net profit/(loss) attributable to common shareholders as a supplemental measure to review and assess our operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP net profit/(loss) attributable to common shareholders as net profit/(loss) attributable to common shareholders excluding share-based compensation expenses. Such adjustments have no impact on income tax because either the non-GAAP adjustments were recorded at entities located in tax free jurisdictions, such as the Cayman Islands or because the non-GAAP adjustments were recorded at operating entities located in the PRC for which the non-GAAP adjustments were not deductible for tax purposes. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net profit/(loss) attributable to common shareholders enables our management to assess our operating results without considering the impact of share-based compensation expenses. We also believe that the use of this non-GAAP financial measure facilitates investors' assessment of our operating performance. This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net profit/(loss) attributable to common shareholders is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP financial measure may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited. The non-GAAP financial measure should not be considered in isolation or construed as an alternative to net profit/(loss) attributable to common shareholders or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measure in light of the most directly comparable GAAP measure, as shown below. The non-GAAP financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Huize's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, business outlook and quotations from management in this announcement, contain forward-looking statements. Huize may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huize's goal and strategies; Huize's expansion plans; Huize's future business development, financial condition and results of operations; Huize's expectation regarding the demand for, and market acceptance of, its online insurance products; Huize's expectations regarding its relationship with insurer partners and insurance clients and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huize's filings with the SEC. All information provided in this press release is as of the date of this press release, and Huize does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: Investor Relations Kenny Lo Investor Relations Manager investor@huize.com Media Relations mediacenter@huize.com Christensen Advisory In China Ms. Dee Wang Phone: +86-10-5900-1548 Email: dee.wang@christensencomms.com In U.S. Ms. Linda Bergkamp Phone: +1-480-614-3004 Email: linda.bergkamp@christensencomms.com Huize Holding LimitedUnaudited Condensed Consolidated Balance Sheets(all amounts in thousands, except for share and per share data) As of December 31 As of September 30 2023 2024 RMB RMB USDAssets Current assets Cash and cash equivalents 249,258 242,629 34,574 Restricted cash 42,307 46,014 6,557 Short-term investments 8,879 6,833 974 Contract assets, net of allowance for doubtful accounts 41,481 62,772 8,945 Accounts receivables, net of allowance for impairment 178,294 186,133 26,524 Insurance premium receivables 927 2,140 305 Amounts due from related parties 383 984 140 Amount due from shareholders - 632 90 Deferred costs 6,147 - - Prepaid expense and other receivables 78,784 76,026 10,834 Total current assets 606,460 624,163 88,943 Non-current assets Restricted cash 29,687 29,886 4,259 Contract assets, net of allowance for doubtful accounts 12,495 27,918 3,978 Property, plant and equipment, net 54,107 52,292 7,452 Intangible assets, net 50,743 70,491 10,045 Long-term investments 76,688 71,200 10,146 Operating lease right-of-use assets 115,946 109,743 15,638 Other receivables - 8,446 1,204 Goodwill 461 10,935 1,558 Other assets 419 482 64 Total non-current assets 340,546 381,393 54,344 Total assets 947,006 1,005,556 143,287 Liabilities and Shareholders' Equity Current liabilities Short-term borrowings 30,000 20,200 2,878 Accounts payable 211,905 275,341 39,236 Insurance premium payables 37,514 41,180 5,868 Contract liabilities 2,728 59 8 Other payables and accrued expenses 34,850 40,097 5,711 Payroll and welfare payable 56,207 39,822 5,675 Income taxes payable 2,440 2,440 348 Operating lease liabilities 16,949 20,629 2,940 Amount due to related parties 2,451 - - Total current liabilities 395,044 439,768 62,664 Non-current liabilities Deferred tax liabilities 12,048 15,812 2,253 Operating lease liabilities 129,299 121,789 17,355 Payroll and welfare payable 200 1,575 224 Total non-current liabilities 141,547 139,176 19,832 Total liabilities 536,591 578,944 82,496 Shareholders' equity Class A common shares 62 63 9 Class B common shares 10 10 1 Treasury stock (28,580) (29,512) (4,205)Additional paid-in capital 905,958 910,740 129,779 Accumulated other comprehensive loss (14,060) (15,418) (2,197)Accumulated deficits (458,237) (456,025) (64,983)Total shareholders' equity attributable to Huize Holding Limited shareholders 405,153 409,858 58,404 Non-controlling interests 5,262 16,754 2,387 Total shareholders' equity 410,415 426,612 60,791 Total liabilities and shareholders' equity 947,006 1,005,556 143,287 Huize Holding LimitedUnaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)(all amounts in thousands, except for share and per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2024 2023 2024 RMB RMB USD RMB RMB USDOperating revenue Brokerage income 279,110 361,173 51,467 923,029 934,845 133,214 Other income 13,334 8,525 1,215 36,516 28,116 4,007 Total operating revenue 292,444 369,698 52,682 959,545 962,961 137,221 Operating costs and expenses Cost of revenue (184,474) (266,813) (38,021) (597,062) (675,199) (96,215)Other cost (4,841) (164) (23) (15,663) (6,327) (902)Total operating costs (189,315) (266,977) (38,044) (612,725) (681,526) (97,117)Selling expenses (49,129) (43,275) (6,167) (162,751) (134,305) (19,138)General and administrative expenses (21,493) (32,126) (4,578) (92,103) (104,427) (14,881)Research and development expenses (14,305) (14,025) (1,998) (54,620) (46,504) (6,627)Total operating costs and expenses (274,242) (356,403) (50,787) (922,199) (966,762) (137,763)Operating profit/(loss) 18,202 13,295 1,895 37,346 (3,801) (542) Other income/(expenses) Interest income 1,490 1,040 148 2,297 3,360 479 Unrealized exchange loss (101) (26) (4) (309) (270) (38)Investment (loss)/income (613) 1,604 229 (928) (2,232) (318)Others, net 1,299 2,008 286 14,311 6,912 985 Profit before income tax, and share of income of equity method investee 20,277 17,921 2,554 52,717 3,969 566 Share of income of equity method investee 1,359 639 91 365 217 31 Net profit 21,636 18,560 2,645 53,082 4,186 597 Net profit/(loss) attributable to non-controlling interests 1,467 (93) (13) 881 1,974 282 Net profit attributable to common shareholders 20,169 18,653 2,658 52,201 2,212 315 Net profit/(loss) 21,636 18,560 2,645 53,082 4,186 597 Foreign currency translation adjustment, net of tax 3,237 (3,379) (482) 8,489 (1,358) (194)Comprehensive income 24,873 15,181 2,163 61,571 2,828 403 Comprehensive income/(loss) attributable to non-controlling interests 1,467 (93) (13) 881 1,974 281 Comprehensive income attributable to Huize Holding Limited 23,406 15,274 2,176 60,690 854 122 Weighted average number of common shares used in computing net profit per share Basic and diluted 995,606,092 1,013,767,072 1,013,767,072 1,004,018,221 996,483,969 996,483,969 Net profit per share attributable to common shareholders Basic and diluted 0.02 0.02 0.00 0.05 0.00 0.00 Huize Holding LimitedUnaudited Reconciliations of GAAP and Non-GAAP Results(all amounts in thousands, except for share and per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2024 2023 2024 RMB RMB USD RMB RMB USDNet profit attributable to common shareholders 20,169 18,653 2,658 52,201 2,212 315Share-based compensation expenses (1,684) (313) (45) 3,709 7,484 1,067Non-GAAP net profit attributable to common shareholders 18,485 18,340 2,613 55,910 9,696 1,382 HUIZHuize Holding Ltd$5.16-14.8%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Huize Holding Limited Reports Third Quarter 2024 Unaudited Financial Results By Investing.com

SHENZHEN, China, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Huize Holding Limited, (Huize, the Company or we) (NASDAQ: HUIZ), a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia, today announced its unaudited financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Financial and Operational Highlights Mr. Cunjun Ma, Founder and CEO of Huize, said, We delivered a very strong set of business results, with total GWP reaching a record quarterly high of over RMB2 billion, and FYP more than doubling to RMB1.4 billion in the third quarter of 2024. This performance primarily reflects our core competencies in quality customer acquisition, product innovation, and AI solution development, allowing us to capitalize on the tremendous demand for long-term savings products amid an evolving regulatory regime in China, alongside our active diversification into international markets. Additionally, we continued to attract high-quality mass affluent customers, as evidenced by our sustainably high average FYP ticket size of approximately RMB 79,000 for savings products, and our 13th- and 25th-month persistency ratio for long-term life and health insurance products, which remained among the highest levels in the industry at above 95%. We also enjoyed substantial efficiency gains thanks to the deployment of self-developed AI solutions across our operations, with our expense-to-revenue ratio improving by 5 percentage points year-over-year to 24%, enabling us to achieve net profit of RMB18.7 million and non-GAAP net profit1 of RMB18.3 million during the quarter. Our overseas expansion, through our international arm, Poni Insurtech, gained stronger momentum, with revenue contribution from our international businesses reaching 19% in the third quarter, up 8 percentage points sequentially. This acceleration largely reflects our success in capturing market share in Hong Kong. Following the acquisition of Global Care, a leading Vietnam-based Insurtech company in September, we have been accelerating recruitment and empowering its distribution partners to accelerate business growth. We plan to enter two additional markets"Singapore and the Philippines"within the next 12 months, gradually expanding our footprint in markets across Southeast Asia with significant potential. We believe these strategic initiatives will further diversify our revenue streams, with a target of international revenue contributions to reach 30% by 2026. Looking ahead, we remain committed to becoming a leading pan-Asian digital insurance distribution platform. While further solidifying our leadership in mainland China, we will replicate and localize our successful home market-proven business model to capitalize on the tremendous untapped market opportunities across Southeast Asia, reinforcing our strategy for sustainable, long-term growth. _____ 1 Non-GAAP net profit is a non-GAAP financial measure. For more information on the non-GAAP net profit, please see the section of Use of Non-GAAP Financial Measure Statement and the table captioned Unaudited Reconciliations of GAAP and Non-GAAP Results set forth at the end of this press release. GWP facilitated on our platform was RMB2,060.7 million (US$293.6 million) in the third quarter of 2024, an increase of 65.5% from RMB1,245.1 million in the same period of 2023. Within GWP facilitated in the third quarter of 2024, FYP accounted for RMB1,354.4 million (or 65.7% of total GWP), an increase of 110.1% year-over-year. Renewal premiums accounted for RMB706.3 million (or 34.3% of total GWP), an increase of 17.6% year-over-year. Operating revenue was RMB369.7 million (US$52.7 million) in the third quarter of 2024, an increase of 26.4% from RMB292.4 million in the same period of 2023. The increase was primarily driven by the increase in FYP facilitated. Operating costs Operating costs were RMB267.0 million (US$38.0 million) in the third quarter of 2024, an increase of 41.0% from RMB189.3 million in the same period of 2023, primarily due to an increase in channel expenses. Operating expenses Selling expenses were RMB43.3 million (US$6.2 million) in the third quarter of 2024, a decrease of 11.9% from RMB49.1 million in the same period of 2023, primarily due to a decrease in personnel costs. General and administrative expenses were RMB32.1 million (US$4.6 million) in the third quarter of 2024, an increase of 49.5% from RMB21.5 million in the same period of 2023. This increase was primarily due to an increase in rental and utilities expenses. Research and development expenses were RMB14.0 million (US$2.0 million) in the third quarter of 2024, a decrease of 2.0% from RMB14.3 million in the same period of 2023, primarily due to a decrease in personnel costs. Net profit and Non-GAAP net profit for the period Net profit was RMB18.7million (US$2.7 million) in the third quarter of 2024, compared to net profit of RMB20.2 million in the same period of 2023. Non-GAAP net profit was RMB18.3 million (US$2.6 million) in the third quarter of 2024, compared to non-GAAP net profit of RMB18.5 million in the same period of 2023. Cash and cash equivalents As of September 30, 2024, the Company's cash and cash equivalents amounted to RMB242.6 million (US$34.6 million), compared to RMB249.3 million as of December 31, 2023. Conference Call The Company's management team will hold an earnings conference call at 7:00 A.M. Eastern Time on Tuesday, December 10, 2024 (8:00 P.M. Beijing/Hong Kong Time on Tuesday, December 10, 2024). Details for the conference call are as follows: Event Huize Holding Limited's Third Quarter 2024 Earnings Conference Call Registration Link: https://register.vevent.com/register/BI6f8fe18c6ef94d6baa48203895575679 All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a confirmation email containing dial-in numbers and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.huize.com. About Huize Holding Limited Huize Holding Limited is a leading insurance technology platform connecting consumers, insurance carriers and distribution partners digitally through data-driven and AI-powered solutions in Asia. Targeting mass affluent consumers, Huize is dedicated to serving consumers for their life-long insurance needs. Its online-to-offline integrated insurance ecosystem covers the entire insurance life cycle and offers consumers a wide spectrum of insurance products, one-stop services, and a streamlined transaction experience across all scenarios. By leveraging AI, data analytics, and digital capabilities, Huize empowers the insurance service chain with proprietary technology-enabled solutions for insurance consultation, user engagement, marketing, risk management, and claims service. For more information, please visit http://ir.huize.com or follow us on social media via LinkedIn (https://www.linkedin.com/company/huize-holding-limited), Twitter (https://twitter.com/huizeholding) and Webull (https://www.webull.com/quote/nasdaq-huiz). Use of Non-GAAP Financial Measure Statement In evaluating our business, we consider and use non-GAAP net profit/(loss) attributable to common shareholders as a supplemental measure to review and assess our operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP net profit/(loss) attributable to common shareholders as net profit/(loss) attributable to common shareholders excluding share-based compensation expenses. Such adjustments have no impact on income tax because either the non-GAAP adjustments were recorded at entities located in tax free jurisdictions, such as the Cayman Islands or because the non-GAAP adjustments were recorded at operating entities located in the PRC for which the non-GAAP adjustments were not deductible for tax purposes. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net profit/(loss) attributable to common shareholders enables our management to assess our operating results without considering the impact of share-based compensation expenses. We also believe that the use of this non-GAAP financial measure facilitates investors' assessment of our operating performance. This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net profit/(loss) attributable to common shareholders is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP financial measure may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited. The non-GAAP financial measure should not be considered in isolation or construed as an alternative to net profit/(loss) attributable to common shareholders or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measure in light of the most directly comparable GAAP measure, as shown below. The non-GAAP financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Huize's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, confident and similar statements. Among other things, business outlook and quotations from management in this announcement, contain forward-looking statements. Huize may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huize's goal and strategies; Huize's expansion plans; Huize's future business development, financial condition and results of operations; Huize's expectation regarding the demand for, and market acceptance of, its online insurance products; Huize's expectations regarding its relationship with insurer partners and insurance clients and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huize's filings with the SEC. All information provided in this press release is as of the date of this press release, and Huize does not undertake any obligation to update any forward-looking statement, except as required under applicable law.