Financials Author：Yiru Qian Editor：Tao Ni Mar 21, 2022 11:48 PM (GMT+8)

Huize’s revenue and net loss both expanded by over 80% in the fiscal year of 2021

Huize, Ma Cunjun

The licensed Chinese digital insurance product and service platform Huize Holding Limited (HUIZ:NASDAQ) reported the fourth quarter and full-year 2021 financial results on March 18, 2022.

For the fourth quarter of 2021, Huize booked a revenue of CNY 976.3 million (USD 59.86 million), up 151.6% year-on-year. The net profit reported was CNY 19.8 million, compared to a non-GAAP net profit of CNY 21.6 million. The total gross written premiums, or GWP, facilitated on Huize’s online platform in Q4 increased by 90.2% year-over-year to CNY 1.99 billion.

According to the financial report, its operating costs in the fourth quarter were CNY 748.0 million, representing an increase of 156.2% year-on-year; the selling expenses were CNY 112.3 million, an increase of 57.1% year-on-year. The research and development expenses shot up by 190.8% to CNY 46.1 million in Q4, which Huize  attributed mainly to an increase in the number of R&D staff.

For the whole year 2021, the insurtech firm reported CNY 2.245 billion in revenue, marking an increase of 84.0% year-on-year, and its net loss was CNY 107.7 million, an 83% expansion over the previous year.

The total GWP facilitated for the year increased by 66.2% from the same period a year earlier to CNY 5.02 billion, among which the first-year premium accounted for 62.2%.

In partnership with 109 insurance companies as of Q4 2021, Huize offers more than 1,000 products and one-stop insurance solutions, from risk assessment and online consultations to product recommendations and claims assistance services. To date, it has served a total of 58.4 million users according to its official website.

The financial report stated that Huize's Board of Directors has approved a share repurchase. According to the plan, the company would repurchase CNY 5 million worth of American Depositary Receipts (ADRs) over the next 12 months and opt to fund thebuyback with its existing cash balance. "It reflects our confidence in Huize's long-term growth prospects," said Cunjun Ma, founder and CEO of Huize.

Previously, Huize’s shares dipped to USD 0.61, setting a record low and down nearly 96% from its high of USD 14.80. However, as of press time, its share price rose back to USD 1.2, with a total market capitalization of USD 68.53 billion.