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Ladies and gentlemen, thank you for standing by and welcome to the Hoytze's second half and full year 2025 earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, we will have a question and answer session. Today's conference call is being recorded and the webcast replay will be available on Hoytse's IR website at ir.hoytse.com under the events and webcasts section. I'd now like to hand the conference over to your speaker host today, Mr. Kenny Lo, Hoytess Investor Relations Director. Please go ahead, Kenny. Thank you, operator. Hello, everyone, and welcome to our second half and full year 2025 earnings conference call. Our financial and operational results were released earlier today and are currently now available on both our IR website and Globe Newswire services. Before we continue, I would like to refer you to a safe harbor statement in our earnings price release which also applies to this call as we will be making forward looking statements please also note that we will discuss non-gap measures today which are more properly explained in our earnings release and filings with the SEC joining us today are our founder and CEO Mr. Chen Jun Ma co-chef Mr. Ming Han Xiao and co-chafer Mr. Ron Tam Mr. Ma will start the call by providing an overview of the company's performance and operational highlights both by Mr. Tan who will go over our financial results for the year 2025. Then we'll open the call for questions. Now I'll turn the call over to Mr. Ma. 发生了根本性的转变,资金正加速地向保险等长期稳健资产的迁移,分红性保陕凭借其保障与增值的双重属性,正成为驱动行业增长的核心动力。 科技层面,生产式IR与IR智能体的技术快速接待,正在深度重构保陆行与生活生态与运营模式,推动行業向更智慧、高效的方向演进。 The rapid digitalization of the Southeast Asian insurance market has led to the rise and fall of the population and the rise of the middle class. The structure is changing day by day. In the face of these changes, Huize has accurately grasped the market's pulse with a preemptive strategic layout. In 2025, Huizhe handed out an exciting results sheet. Welcome to Huize's second half and full year of 2025 earnings conference call. In 2005, China's insurance industry underwent profound structural changes. As bank deposit rates continued to decline, household wealth allocation shifted fundamentally, with capital accelerating to long-term stable assets such as insurance. Participating products that offered both protection and wealth accumulation emerged as the core growth engine for the industry. Furthermore, the around generative AI and AI agent capabilities is deeply reshaping the industry ecosystem and operating models, driving the sector towards greater efficiency and intelligence. Internationally, Southeast Asia insurance markets are expecting accelerating digital penetration, and a growing middle class creating compelling structural opportunities. Our proactive forward-looking strategy actively positioned us to capitalize on this dynamic and deliver a strong performance in 2025. Both GWP and FYP facilitated on our platform, in 2025 reached record highs of RMB $7.4 billion and RMB 4.6 billion, surging 21% and 35% year over year, respectively. Total revenue for the year came in at RMB 1.6 billion, growing approximately 27% from last year. Driven by strong top line , cost efficiency improvement from the strategic deployment of AI solutions across our organization. We delivered non-GAAP net profits of RMB 22.6 million. This marks the first consecutive year of non-GAP profitability, a testament to our resilience execution in a dynamic market and the long-term sustainability of our business model. to provide full-life insurance services to high-growing customers. In 2025, the platform will add about 1.67 million users to Tobao. By the end of the year, the total number of Tobaos will exceed 12 million. In 2025 the average age of long-term Toba users will be 35.3 years old. Of these, 65.8% of users in the second-tier and above cities will continue to display high-quality customer images In the first year of the year, in 2025, the long-term construction fee reached 7,900 yuan and rose by 38% in the same ratio. By the end of December, the annual accumulation rate of the 13th month and the 25th month of the long term will remain higher than 95%, which is the leading standard of the stable housing industry, and fully verifies the quality of service and product competitiveness of the customers. We remain deeply committed to our customer-centric strategy, serving our high-quality customer base across the full insurance lifecycle. In 2025, we added approximately 1.7 million new customers, bringing the total to over 12 million by year-end. The average age of long-term insurance policyholders was 35.3 years, with 65.8% residing in tier two cities or above reflecting our focus on high quality customer demographic segments the average FYP ticket size for long-term insurance approximately RMB 7,900 in 2025 a 38% increase year-over-year as of year-end each of our 15th and 25th month persistency ratios for long-term insurance products remained at industry leading levels of over 95 highlighting our strong retention capabilities and fully validating the quality of our service and the competitive competitiveness of our product offerings 节制联络,会则持续拓展合作生态版图,以与158家保险公司建立并保持稳定的合作关系,持继创新推出多元化,定制化的保陕产品,为应对人口老龄化背景下日益增长的高质量财务规划需求。 We have proposed the second branch, which will only provide an optimized and diversified retirement planning plan, to actively integrate the market's strong demand for a branch insurance. In addition, we have also specifically proposed two products worth 1 million yuan, the new sales No. 2 and the long-term case No. 3, By year end, our partner ecosystem grew to 158 insured partners allowing us to continue expanding the differentiated customized products we offer. To address the growing demand for wealth management and financial planning solutions in an aging society, we launched DaJiaHuiSuen 2.0, a participating annuity product designed to provide premium diversified retirement planning solutions. We also launched two customized million yen medical insurance products, Xin XiangXiu 2.0 and Changxiang and 3.0. Each offering differentiated features including 20-year guaranteed renewal and simplified health underwriting that cater to the diverse health protection needs of different customer segments. Together, these launches reinforce our core competitiveness in the medical insurance segment and lay a solid foundation for our long-term sustainable growth. and product recommendation, health insurance, and compensation, to achieve intelligent service experience. In 2025, the self-serve rate of new users driven by AR has increased by 50%. At the same time, we have introduced AR that can be independently completed sales transformation. In addition, the introduction of AR planning room is exactly this transformation. AR can directly generate personalized family insurance plans according to the image of the user, In addition, Huize has been promoted to a financial planning partner for the entire life cycle of the user. Recently, Huizhe officially released the online AI payout. Its AI payouts intelligence has completed a comprehensive connection with the core payout system. The first payout case that was reviewed by AI took only 23 minutes and was successfully solved. It became the first payouts practice completed by AI intelligence in the insurance intermediary industry. and successfully realized the full network of services. In the future, we will co-construct and connect the smart ecosystem of users, insurance companies, and agents, and integrate AI elements into insurance services and financial planning. We will fully build an AI-driven insurance ecosystem. We began fostering an AI native culture across the organization during the year, deploying AI solutions across the insurance service value chain. This significantly improved our expense-to-revenue ratio, which fell 5.9 percentage points year-over-year to 26.3%, and was a key contributor to our return to full-year profitability. We also deployed our AI solutions across the entire customer journey, covering intent recognition, product recommendations, and writing claims. This meaningfully enhanced the user experience and supported a 50% year- over-year increase AI-driven self-service policy purchases among new users in 2025. Our AI systems are now capable of independently completing sales conversion. The launch of our AI financial planner highlights this evolution into a full lifecycle financial planning partner for our customers. AI cannot directly generate personalized family insurance plans directly from individual users profiles. more recently we launched our AI claims service with our AI agent fully embedded across core claim system the first AI reviewed claims were settled in just 23 minutes and marks the first fully end-to-end AI agent driven claim settlement in China's insurance intermediary sector and the completion of our intelligent closed-loop service capability looking ahead we will To collaborate with insurance carriers to build an intelligent, connected ecosystem spanning users, insurers, and agents, embedding AI across every stage of insurance services and financial planning to fully realize our vision of an AI-driven insurance platform. successfully obtained financial advisory and insurance economic license issued by the Singapore Financial Management Bureau, and officially opened the local business layout. At the same time, we actively promote the overseas export of internal technology applications, and expand the Singapore market in an innovative way with AIR FULEN, bringing consumers a new experience of insurance procurement. In the Hong Kong market, with the difference in insurance product functions, 市场对香港保险产品的需求持续强烈 香港业务于2025年实现显度的增长 业務营收同比提升超过两倍 在越南 Global Care的全年总保费同比增長了106% 收入同比 증长了84% 尤为值得关注的是 GoSale的业物线实现了突破性的増长 平台用户数年内增加了4倍 总保费同比增长超过三倍,充分验证了我们在东南亚市场的素质化分销模式的规模化能力。 Our international business continues to deliver a strong performance. In Singapore, headquarters of Ponyinchi Tech, we obtained a financial advisor and exempt insurance license from the Monetary Authority of Singapore, formally establishing our local operational footprint. Simultaneously, we are actively expanding our proprietary AI solutions to Singapore to offer an innovative and differentiated insurance experience. Demand for our insurance products in Hong Kong remained robust in 2025, with revenue increasing more than two-fold year-over-year, driven by their differentiated product features. In Vietnam, global care generated a 106% year-over-year increase in full-year GWP and an 84% increase in revenue growth. Notably, the GSL business line has a standout performance, with platform users quadrupling during the year and premiums growing more than three-fold year-on-year. Strongly, they hang the scalability of our digital distribution model in Southeast Asia. In the future, we will continue to focus on three major strategic directions to promote the high-quality development of the company. First, to fully restore the service quality of AR, and continue to provide customers with the best insurance service experience. Through AR, we can optimize the workflow of each section, and return the resources released to improve the quality of service, and expand more AR application scenarios, so that technology can really serve people. 第二,深化产品创新,聚焦核心赛道,持续定制打造创心参与化的保险产物,精准满足精细化客群的多元需求,持續发力分红险及长期健康险的产품迭代与革新,为客户构建覆盖医疗与财富管理的全方位保障。 Third, we will continue to focus on free strategic priorities to drive high-quality growth. First, we will continue to deploy AI across our business to deepen service quality and improve user experience. By using AI to streamline workflows, we'll deploy freed up resources to further improving service quality, and expanding AI application scenarios, facilitating technology and creating real value for our customers. Second, we will deepen product innovation in our core growth areas, developing differentiated and innovative products tailored to specific customer segments. Our focus will remain on participating products in long-term health insurance to address demand for comprehensive coverage across both healthcare and wealth management. Third, we'll accelerate and deepen our international expansion through the Pony Industry Tag, growing the proportion of overseas revenue calculation and delivering sustainable long-term value for our shareholders. This concludes my prepared remarks for today, I will now turn the call to our CFO, Mr. Ruan Tam, who will provide an overview of our key financial highlights. Thank you, Mr. Mai and Kenny. Good evening, everyone. First of all, we closed out the year very strongly with another solid performance despite a volatile macroeconomic and geopolitical landscape. On a full-year basis, both gross return premiums and first-year premiums facilitated on our platform has reached record highs of RMB 7.4 billion and RMB 4.6 billion, respectively, representing year-over-year increases of 21% and 35%, while total revenue grew 27% year- over-year to RMB $1.6 billion. Notably, we gained profitability with net profit of RMB $4 million and non-GAAP net profit RMB RMB$23 million. Our financial position remains solid with cash and cash equivalents of RMD $251 million as of the year-end. This exceptional performance was driven by our omni-channel distribution network, expanding high-quality customer base, and efficiency gains from the strategic deployment of our advanced proprietary AI solutions, underpinned by continued progress in the execution of our international expansion strategy. Looking at our core business, long-term insurance products continue to be our strategic focus, which accounts for over 90% of our total GWP in 2025. FYP from our long-term savings products surged 48% year-over-year to RMB $3.5 billion in 2025. Notably, FYP for annuity products more than doubled year- over-year to RMD $1 billion, which is driven by robust demand for wealth management and financial planning solutions in a lowering interest rate environment in China. We have capitalized on national strategic guidance to build a multi-tiered healthcare protection system and the release of national commercial insurance innovative drug catalog with the launch of Lin Yuan medical insurance products to address the long-term comprehensive health protection needs of mid to high-income families. By leveraging our well established omni-channel distribution network and advanced AI solutions we We have significantly enhanced customer acquisition and engagement. Our total customer base has reached 12.3 million as of December 31, 2025, reflecting an increase of approximately 1.7 million customers over the full year. The repurchase ratio for our long-term insurance products remained solid at 36%, highlighting our ability to grow customer lifetime value through effective upselling and cross-selling. I would like to highlight several key operational achievements for the year that further demonstrate this progress. The FYP from our IFA business has increased by 44% sequentially to RMB $215 million in the second half of 2025, reflecting the impact our AI solutions are having in enhancing the productivity of both our internal and independent financial FYP from our short-term health and accident insurance grew 12% year-over-year to RMB $613 million, demonstrating our ability to innovate and deliver an increasingly diverse range of product offerings. As of December 31, 2025, our 13th and 25th month persistency ratios for long-term life and health insurance has remained at industry-leading levels of over 95%, underscoring the strong customer loyalty we attract with these diverse product offerings and the effectiveness of a post-sales servicing. The average ticket size of a long-term savings product rose 37% year-over-year to RMB $103,000 in 2025, driven in part by the increased sales of premium products internationally. In 2025, we have implemented our systematic three-pillar AI strategy to enhance internal operational efficiency, to improve customer experience, and to drive platform transformation. Internally, we are fostering an AI-native culture across the organization, deploying AI solutions tailored to various business units that automate routine tasks and optimize workflows. On the customer front, we have upgraded our AI app with multi-agent architecture that facilitates integrated end-to-end user journeys with product recommendations, insurance underwriting, and policy servicing. Additionally, we also unlocked new revenue opportunities through AI-driven product and service innovations. For instance, our AI financial planner is capable of designing tailored family insurance solutions based on client-specific information. Collectively, these AI solutions have delivered meaningful cost savings and productivity gains. Our total operating expenses increased at a slower pace than revenue, rising by just 3.4% year-over-year to RMB $415 million, And consequently, our expense-to-income ratio improved significantly by 5.9 percentage points year-over-year to 26.3% for the full year of 2025. Furthermore, our AI-driven self-directed policy purchases grew by 50% year-ever-year in 2025, underscoring the effectiveness of our AI agents. Pony Intratech, our international arm, delivered another strong performance and remains a key pillar of our long-term growth strategy. In Vietnam, our maturity-owned subsidiary, Global Care, achieved impressive growth, with a number of insurance policies issued increasing by 31% year-over-year, driving a surge of 106% and 84% year over year growth in GWP and revenue, respectively. Our IFA business in Vietnam had a particularly standout year with a number of active platform users quadrupling and policies each year growing by 2.3-fold year-over-year in 2025, while GWP and revenue from this channel also grew significantly over 3.8 times and 2.5 times respectively. GlobalCare also onboarded new merchant partners and launched Vietnam's first influencer platform in july a proven distribution model that's pioneered by quasar in china further extending our digital reach in the local market in singapore we obtain approval from the mas to operate as a financial advisory and exempt insurance broker marking a significant milestone in our regional expansion this license reinforces our dual regional hub strategy across singapore and hong kong positioning us to attract cross-border assets and deliver premier protection and wealth management solutions to consumers across asia collectively the continued expansion of pony intratech will diversify our revenue streams and create new growth drivers enhancing long-term shareholder value for huiza in conclusion we are confident in our ability to capitalize on the opportunities arising from china's evolving industry landscape and the broader Asian market. Domestically, prevailing low time deposit rates are expected to continue to encourage retail depositors to reallocate the wealth towards higher yield savings and participating insurance products. In parallel, aligned with the national strategic directive to establish a multi-tiered protection system, demand for long-term commercial insurance protection for health is expected to grow steadily, underpinning healthy and sustainable development across the entire value chain internationally through pony intratech we are replicating our proven model in china and proprietary ai solutions to drive our expansion into high growth southeast asian markets with a particular focus on the young and fast-growing middle-class demographic in the region we remain steadfastly committed to strengthening our positioning as asia's leading intratec platform by harnessing our advanced data analytics fully integrated ai solutions and proven market penetration strategy our vision remains focused on building an ai driven intelligence ecosystem that seamlessly connects consumers our carrier partners and distribution partners while consistently delivering and doing value to all stakeholders and with that we will conclude the opening remark and open up the call to questions thank you very much and over to you operator thank you so much dear participants if you would like to ask a question please press star 1 1 on your telephone keypad and wait for your name to be announced to withdraw a question piece press star one and one again please stand by we'll compile the career in a roster this will take a few moments once again if you would like to answer the question please start one one and now we're going to take our first question and it comes from Kenny Lim from UOBK here. Your line is open, please ask your question. Good evening, Ron. First of all, congratulations on a strong result. So a few couple of questions for my end. First, your OPEX was well-contained, but I noticed that the operating costs grew faster than the revenue. So could you give us more color on this, and how are you going to improve this and second question will be uh we know that a few uh regulatory changes in hong kong like the broker referral fee cap and also the commercial spreading are taking effect this year so how does uh who is the plan to sustain your pro momentum in hk yeah these two questions okay great thank you jenny uh for your two questions on the first question regarding the observation on the operating costs going faster than revenue growth. I think in effect that would mean that there's a depressed gross margin year-over-year. The main reason for this has to do with the makeup of our revenue for the domestic market and also the international markets. The domestic market revenue contribution has declined because of the high growth of our international revenues and our international revenue segment occurs a slightly lower gross margin and therefore but what that is the observation that you've made that the operation operating cost has you know the growth of that has surpassed revenue growth and that has to do with the the make of the revenue as I just explained so that's the first question we do expect that the gross margins or operating margin to remain to remain at this level and we do expect a slight improvement over the course of this year your second question on the Hong Kong market with cuts to the regulatory cap on the referral fees and also on the Commission spreading that has been in effect since on first of this year first of general this year we do accept and which has been seen in the market that there's been a dampening effect on the growth momentum of the overall brokerage market channel in Hong Kong specifically coming from the MCV segment which obviously I think most of the China based you know both focus on focused on but however we do we do note that the underlying growth drivers for customers to seek out offshore product in Hong Kong remains very robust, and the momentum has not decreased year over year. We do see that with the substantive maturity of time deposits in the onshore market, which is to the tune of, for various estimates, putting that at around 3 to 5 trillion RMB and a meaningful proportion of this could be allocated to offshore markets and Hong Kong would definitely be a natural recipient of this of this also and therefore the underpinning growth momentum should remain relatively robust for the Hong Kong savings plan which is the main you know product that are being distributed by brokers in Hong Kong. so with that we do believe that we would expect that strong global momentum would persist for our hong kong business in 2026. so back to your operator kenny any further questions thank you so much dear participants as a reminder if you would like to ask a question please press star one one on your telephone keypad and now we're going to take our next question and the question comes line of mona wang from greenridge global your line is open please ask a question uh hello everyone this is mona from green with global and uh it's great to see the company delivering several positive development recently and there are two questions the one question there was some more growth growth margin on compression in the first half of 2025 as compared to the same period in 2024 when looking at brokerage income against the cost of revenue so uh if uh except the ai is there opportunity another opportunity for the margin expansion and the second question yourself strong the top line growth and the strong back back to a profitability in 2025 but the stock still trade below cash value so why do you think the stock is not moving with the fundamentals. Thank you. Great. Thank for the questions, Mona, and thanks for joining us for the first time. Appreciate your attendance. And with respect to your two questions, I believe the first question was about the compression of gross margin as it compares across 2025 and 2024, and whether AI could have a positive effect on improving gross margins. So I think two fronts here. I think as I explained to Kenny just now in his first question, the gross margin depression in 2025 has to do with the make-up of our revenue, and specifically the contribution of our international revenues to the overall revenue pool, which has increased substantially over the course of 2025. And as a result, the gross margin has decreased because the international revenue carries a lower gross margin as compared to our domestic or mainland China revenue segment. So therefore, as a result of the two, the gross margin has been decreased. However, as you know very accurately, with the deployment of AI solutions and the initial results that we are seeing, obviously, AI deployment has a significant cost savings or productivity efficiency improvement in the business flow in the mid-to-back office. As you can see, the expense ratio has improved by almost 6%, and that's more to do with the expense or cost savings point of view. But on a growth margin level, I think that what we can potentially envisage over the course of the next few years as AI continues to be deployed in the front line, i.e. in terms of customer acquisition, in terms of lead generation, we do believe that there could be a potential for a significant re-rating or upgrade of our gross margin going forward. For example, we have noted in the opening remarks that, you know, AI has been driving a 50% year-over-year increase in self-service policy purchases by our customers in 2025. Our AI systems are capable of independently completing sales conversions, you know, and we have been generating, you know, over millions of RMB or premiums already through the AI engines. So this, obviously, we do have the high hopes and high expectations that AI will continue to drive and scale our revenue generating capabilities to the tune that we don't need any human interaction or involvement in the entire customer acquisition and conversion process. So I think that's something that we are continuing to work hard towards, and that probably is the holy grail in terms of how AI can scale our profitability over the foreseeable future. So that's the thing that we have already proven to the market, and we will continue to invest in AI-driven growth in 2026. With respect to your second question about the fundamentals somehow is not tying with our share price performance, we do note that the market has been radically pessimistic, I believe, on the performance of our company. It may have to do with the switch of our reporting schedule. the second half last year we have migrated to a half yearly announcement schedule and therefore the market may have certain concerns on the continued sustainable growth and you know performance of the company but as we have shown in this earnings release we have delivered strong growth not in terms of just top line and or premium growth but also in in terms of bottom line profitability, we have demonstrated that we are able to, you know, operate a very resilient business model. And with the advances in AI and our strong investment in AI-related proprietary products, you know across our business value chain, both in the front end and , we do expect that altogether we are looking at a very much of a robust growth momentum in 2026. So that would hopefully drive a re-rating in our share price. As you have noted, that our share price right now is trading even below our net asset value. And therefore, there's significant room for us to re-rate our share prices to the more of an intrinsic value. And that's the question. Thank you. Thank you Dear speakers, we'll just give a moment for our participants to press star 1-1 if they have any additional questions. Once again, if you would like to ask a question, please press star-1-1. That rounds out the questions for today. I would now like to hand the conference over to your speaker, Mr. Kenny Low, Hoytis IA Director, for any closing remarks. Thank you, O'Reilly. In closing, on behalf of OHS management team, we would like to thank you for your participation in today's call. If you require any further information, feel free to reach out to us. Thank you for joining us today. This concludes the call. This concludes today's conference call. Thank you all for participating. You may now disconnect. Have a nice day. END