Xingtao Chen

Xingtao Chen asked about the key drivers behind Yuanbao's model efficiency and ROI, the potential for further improvements in net income margin and ROI, and management's view on the competitive landscape of the industry over the coming years.

Answer

CFO Ray Wan attributed ROI to the full digitization and automation of the insurance full-cycle engine, optimizing conversion at every step. He sees potential for further efficiency but emphasizes balancing growth with profitability to capture market share. He noted the competitive landscape remains stable due to impartial ad bidding, with Yuanbao's iterative feedback loop and deep collaboration providing a sustained edge.

Xingtao Chen asked about the key drivers behind Yuanbao's model efficiency and whether there is further room for improvements in net income margin and ROI. He also sought management's view on the competitive landscape of the industry over the coming years.

Answer

Ray Wan, CFO, attributed Yuanbao's ROI to the full digitization and automation of its insurance full-cycle engine, leading to comprehensive efficiency uplift. He noted potential for further efficiency, balanced with market share growth. He stated that the impartial ad bidding process and Yuanbao's comprehensive iterative feedback loop are key competitive advantages in the stable industry landscape.

Xingtao Chen from CICC Research inquired about Huize's strategy for enhancing professional capabilities in selling participating insurance products, plans for deeper collaboration with insurers on product development, and sales guidance for the second half of the year. Additionally, Chen asked how Huize plans to further leverage AI technology to boost product sales, improve long-term customer relationship management, and achieve greater cost control efficiency, specifically referencing Xiaoma Claims.

Answer

Co-CFO Ron Tam explained that Huize anticipated the shift to participating insurance, actively trained agents and IFAs, and co-developed customized savings products with leading brands like Aviva-COFCO and Generali, establishing a competitive moat and ranking among the top three distributors. Tam expects continued sequential growth in participating insurance distribution for Q3 and Q4. Regarding AI, Tam detailed its deployment in customer acquisition through DeepSeek-powered mobile app for customized recommendations, in underwriting for risk management and conversion, and in long-term CRM by memorizing customer interactions for personalized dialogues.

Xingtao Chen from CICC Research inquired about Huize Holding Limited's strategic shift towards participating insurance, including approaches to enhance team professional capabilities, plans for deeper collaboration with insurers on product development, and sales performance guidance for the second half of the year. Additionally, Chen asked how Huize intends to further leverage AI technology, specifically mentioning Xiaoma Claims, to boost product sales, improve long-term customer relationship management, and achieve greater cost control efficiency.

Answer

Co-CFO Ron Tam explained that Huize anticipated the industry shift to participating insurance, actively promoting agent training and channel partner education, which has yielded benefits. He highlighted successful co-development of customized savings products with leading brands like Aviva-COFCO, Generali, and Primerica, positioning Huize among the top three distributors in China. Tam expects continued sequential growth for participating insurance in Q3 and Q4 due to consumer education and product attractiveness. Regarding AI, Tam detailed its deployment in customer acquisition via the DeepSeek-powered mobile app for customized product recommendations, investment in underwriting for risk management and conversion, and AI tools for long-term CRM by memorizing customer interactions. He emphasized that this is just the beginning of their AI journey.