Huize Holding net profit rises 1,004% in H1FY26 to RMB25.3 million
- Net profit surged 1,004% YoY to RMB25.3 million in H1FY26
- Gross written premiums hit record RMB4.2 billion, up 29.8%
- Operating expenses fell to RMB175 million, improving efficiency
- International revenue reached RMB220 million from Vietnam and Singapore
- Cash position stands at RMB241.4 million; no capital raise planned
*this image is generated using AI for illustrative purposes only.
Huize Holding Limited (NASDAQ: HUIZ) reported a RMB25.3 million (US$3.7 million) net profit for the first half of FY26, a 1,004% increase from RMB2.3 million in the prior year period. The surge was driven by disciplined cost management and operating leverage, with gross written premiums reaching an all-time high of RMB4,196.4 million.
Financial Performance
Total operating revenue increased 5.8% year-over-year to RMB719.8 million (US$106.1 million), up from RMB680.5 million in H1FY25. Gross written premiums (GWP) facilitated on the platform grew 29.8% to RMB4,196.4 million. First-year premiums (FYP) accounted for 65.8% of total GWP, growing 48.7% to RMB2,763.0 million. Renewal premiums contributed the remaining 34.2%, rising 4.2% to RMB1,433.4 million.
| Metric | H1FY26 | H1FY25 | Change |
|---|---|---|---|
| Operating Revenue | RMB719.8 million | RMB680.5 million | +5.8% |
| Gross Written Premiums | RMB4,196.4 million | RMB3,233.7 million | +29.8% |
| Net Profit (Attributable) | RMB25.3 million | RMB2.3 million | +1,004% |
| Adjusted EPS | $0.01 | N/A | N/A |
What the Numbers Show
The divergence between modest revenue growth and explosive profit growth highlights a significant shift in cost structure. General and administrative expenses fell 31.4% to RMB33.0 million, largely due to reduced share-based compensation and office expenses. This reduction helped lower the expense-to-income ratio by 1.8 percentage points to 24.2%. Meanwhile, selling expenses rose 10.0% to RMB109.8 million due to higher advertising spend, and research and development expenses increased 7.8% to RMB31.7 million. The company also reported a non-GAAP net profit of RMB3.1 million, reversing a non-GAAP net loss of RMB3.3 million in the prior year period.
Management highlighted that AI investments are driving tangible returns through lower customer acquisition costs and improved agent productivity. Co-CFO Ron Tam noted that while international markets are profitable overall, Vietnam remains in a high-growth phase with minimal losses. Hong Kong has been profitable since last year, while Singapore is expected to drive profitability this year. The company continues to invest approximately US$10 million annually in AI-related R&D and capital expenditures.
Operational Highlights
Huize expanded its customer base to 13.1 million cumulative insurance clients as of June 30, 2026, adding approximately 789,000 new customers in the first half. The platform partnered with 159 insurers, including 90 life and health companies and 69 property and casualty firms. Customer quality metrics remained strong, with 13th- and 25th-month persistency ratios for long-term products exceeding 95%. The average age of customers purchasing long-term insurance was 35.3 years, with 62.5% residing in tier-two cities or above.
The average FYP ticket size for long-term insurance products increased 25% year-over-year to approximately RMB8,211. The repurchase ratio for long-term insurance products remained high at 33.3%. FYP from long-term savings products rose more than 45% year-over-year to RMB2 billion, while long-term health insurance FYP grew by 1.6x to RMB204 million.
International Expansion
Huize’s international arm, Pony InsurTech, generated approximately RMB220 million in revenue during the first half. In Vietnam, GlobalCare saw gross written premiums and revenue increase approximately 45% and 24% year-over-year, respectively. The local IFA business also made progress, with policies issued growing 48% year-over-year. In Singapore, the company focused on serving high-value customers with protection and wealth allocation needs. Management stated there are no plans to enter new international markets in the next 12 to 24 months, preferring to scale existing operations.
Balance Sheet Position
As of June 30, 2026, Huize held RMB241.4 million (US$35.6 million) in cash and cash equivalents, a slight decrease from RMB250.8 million at the end of FY25. Management expressed confidence in the company’s cash position, indicating no immediate need for raising additional capital unless a major M&A opportunity arises. The company continues to invest in its AI strategy, upgrading its AI App to a phase 2.0 multi-agent architecture and launching new financial planning features that achieved a 45% report generation rate among active users.
How sustainable is the current profit surge given that it was largely driven by one-time reductions in share-based compensation rather than organic revenue growth?
What specific AI-driven metrics will Huize use to validate that its $10 million annual R&D investment is yielding long-term competitive advantages over traditional insurers?
Could the decision to pause new international market entry for 12-24 months signal capital constraints or a strategic pivot to consolidate profitability in Vietnam and Singapore?
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