Huize Holding H1FY26 net profit rises 1,004% to RMB25.3 million
Huize Holding reported H1FY26 net profit of RMB25.3 million, up 1,004% YoY, driven by cost efficiencies despite only 5.8% revenue growth. Adjusted EPS was $0.01 on sales of $106.090 million. Gross written premiums surged 29.8% to an all-time high of RMB4,196.4 million.
*this image is generated using AI for illustrative purposes only.
Huize Holding Limited (NASDAQ: HUIZ) delivered a substantial improvement in profitability during the first half of FY26, with net profit attributable to common shareholders rising to RMB25.3 million (US$3.7 million). This represents a 1,004% increase from the RMB2.3 million reported in the corresponding period of FY25. The company also reported adjusted earnings per share of $0.01 and sales of $106.090 million for the period. The surge in bottom-line performance was primarily driven by disciplined cost management and operating leverage, rather than top-line expansion.
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. The growth was supported by both first-year premiums (FYP) and renewal premiums.
| 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 |
While revenue growth was moderate, gross written premiums (GWP) facilitated on the platform reached an all-time high of RMB4,196.4 million, marking a 29.8% year-over-year increase. First-year premiums 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.
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.
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.
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. 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 driven primarily by one-time reductions in share-based compensation rather than organic revenue growth?
Will the increased advertising spend and R&D investments yield a proportional increase in customer acquisition costs or lifetime value in the second half of FY26?
What impact might the phase 2.0 multi-agent AI architecture have on operational efficiency and cross-selling rates among the 13.1 million existing clients?
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