On the 18th, Huiz. NASDAQ announced its unaudited financial results for the fourth quarter and the whole year as of December 31, 2021 through its official website. Throughout the year, the revenue of huise in 2021 was 2.245 billion yuan (RMB, the same below), an increase of 84.0% year-on-year; The net loss was 107.7 million yuan, an increase of 83% year-on-year. The net loss under non US GAAP was 109.5 million yuan, a year-on-year increase of 422.06%.
First look at the fourth quarter results. In Q4 of 2021, the revenue of Huize was 976.3 million yuan, an increase of 151.6% year-on-year; The net profit is 19.8 million yuan, and the net profit under non US GAAP is 21.6 million yuan.
In the fourth quarter, the total premium (GWP) of smart choice increased by 90.2% to 1.990 billion yuan.
Ma Cunjun, founder and CEO of wise choice, said: "the board of directors approved a share repurchase plan, which reflects our confidence in the long-term growth prospects of wise choice."
According to the financial report, the operating cost of Huize Q4 was 748 million yuan, a year-on-year increase of 156.2%. The sales expense was 112.3 million yuan, a year-on-year increase of 57.1%. The R & D cost was 46.1 million yuan, a year-on-year increase of 190.8%. Huize said that it was mainly due to the increase in the number of R & D personnel.
Look at the annual financial data. In 2021, Huize's total premium recorded 5.018 billion yuan, a year-on-year increase of 66.2%. In the GWP promoted in 2021, the first year premium ("FYP") is RMB 3.124 billion, accounting for 62.2%; The renewal premium was 1.894 billion yuan, accounting for 37.8%.
For the whole year of 2021, the operating cost of smart choice was RMB 1.691 billion, with a year-on-year increase of 107.1%. The sales expense was 351 million yuan, a year-on-year increase of 52.1%. The R & D cost was 121 million yuan, a year-on-year increase of 145.2%. As of the end of the reporting period, the total balance of cash and cash equivalents of smart choice was 381 million yuan and 405 million yuan at the end of 2020.
According to the financial report, the board of directors of wise choice has approved a share repurchase plan, according to which wise choice can repurchase US $5 million American depositary receipts in the next 12 months. The company plans to fund the repurchase from its existing cash balance.
It is worth mentioning that on March 15, just before the release of the annual report, Huize's share price fell to $0.61, setting a new record low again, with a high of $14.8, down nearly 96%. However, in the subsequent trading from the 16th to the 18th, Huize's share price was raised back above $1. As of press time, Huize's share price is $1.20 per share. At present, the total market value of the company is only US $623237 million.
Huize previously claimed to be "the first share of global insurance e-commerce". Relying on Huize insurance network to locate independent online insurance products and service platform, it provides "one-stop insurance service". Its main business model is to sell insurance products online for insurance partners, help cooperative companies attract a large number of insurance customers to buy insurance products, and then earn commissions from cooperative insurance companies, The commission fee ranges from 7% to 110% of the first year's premium.
Huize landed on NASDAQ on February 12, 2020. The main operating company in China is Shenzhen Huiye natural selection Investment Holding Co., Ltd. (hereinafter referred to as "Huize investment"). At that time, its total IPO size was in the range of US $43.71 million to US $53.01 million.
As an insurance broker, Huize's Insurance platform itself has no traffic and is very dependent on indirect sales channels. From its annual reports over the years, the operating cost of Huize has increased year by year, and the overall performance growth rate has declined. In addition, Huize has been at a loss since its inception to 2017. In 2017, Huize's adjusted net loss was as high as 96.23 million yuan. Since then, from 2018 to 2019, it began to turn losses into profits. The good times are not long. By 2020, Huize will have a net loss of 18.3 million yuan, more than twice that of 2019.
According to the official website of Huize insurance, up to now, Huize insurance has served 58.4 million users and provided more than 1000 insurance products, mainly life and health insurance products and property and accident insurance products.
With the release of the measures for the supervision of Internet insurance business and a series of relevant regulations by the CBRC, only the self operated platform of licensed institutions can sell insurance, strengthening the supervision of the industry. This adds uncertainty to the Internet insurance track to a certain extent. Huize said in the prospectus that in the past, some cooperative user traffic channels have not obtained the business license required for cooperation or have completed regulatory registration.
