☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||
American depositary shares (each representing 20 Class A common shares, par value US$0.00001 per share) Class A common shares, par value US$0.00001 per share* *Not for trading, but only in connection with the listing on the Nasdaq Global Market of American depositary shares. | HUIZ | Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ | Non-accelerated filer | ☐ | |||||
Emerging growth company | ☒ |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☒ | International Financial Reporting Standards as issued | Other ☐ | ||||||
by the International Accounting Standards Board ☐ |
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Item 2. | 4 | |||||
Item 3. | 4 | |||||
Item 4. | ||||||
ITEM 4.A. | ||||||
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Item 5. | 112 | |||||
Item 6. | 130 | |||||
Item 7. | 139 | |||||
Item 8. | 141 | |||||
Item 9. | 142 | |||||
Item 10. | 142 | |||||
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Item 12. | ||||||
Item 13. | ||||||
Item 14. | ||||||
Item 15. | ||||||
Item 16.A. | ||||||
Item 16.B. | ||||||
Item 16.C. | ||||||
Item 16.D. | ||||||
Item 16.E. | ||||||
Item 16.F. | ||||||
Item 16.G. | ||||||
Item 16.H. | ||||||
ITEM 16.I. | 160 | |||||
Item 16. | ||||||
Item 17. | ||||||
Item 18. |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
(i) | the power of attorney, pursuant to which each shareholder of the VIE irrevocably authorized our WFOE or any person designated by our WFOE to act as its |
(ii) |
(iii) | the exclusive option and equity custody agreement, pursuant to which each of the shareholders of the VIE has irrevocably granted our WFOE an exclusive option to purchase, or have its designated third party to purchase, at its discretion, all or part of his or its equity interests in the VIE and/or the assets that the VIE holds at a nominal consideration or the lowest price permitted by applicable PRC law, we have the option to purchase the equity interest in and assets of the VIE at low cost. |
(1) | Shareholders of Shenzhen Huiye Tianze Investment Holding Co., Ltd., or Huiye Tianze, are: (1) Shenzhen Huidecheng Investment Development Limited Partnership and Shenzhen Huideli Consulting Management Limited Partnership, both as our PRC ESOP holding entities, holding an aggregate of 27.56% shares in Huiye Tianze; (2) PRC holding entities of the shareholders of our Cayman Islands holding company, holding shares in Huiye Tianze in a shareholding structure substantially identical to their respective shareholding in our company, and the PRC holding entity of SAIF IV Healthcare (BVI) Limited, a former shareholder of our Cayman Islands holding company. |
Taxation Scenario (1) | ||||
Statutory Tax and Standard Rates | ||||
Hypothetical pre-tax earnings(2) | 100 | % | ||
Tax on earnings at statutory rate of 25% (3) | (25 | %) | ||
Net earnings available for distribution | 75 | % | ||
Withholding tax at standard rate of 10% (4) | (7.5 | %) | ||
Net distribution to Parent/Shareholders | 67.5 | % |
(1) | For purposes of this example, the tax calculation has been simplified. The hypothetical book pre-tax earnings amount, not considering timing differences, is assumed to equal Chinese taxable income. |
(2) | Under the terms of the contractual arrangements among our WFOE, the VIE and its Shareholders, our WFOE may charge the VIE for services provided to the VIE. These fees shall be recognized as expenses of the VIE, with a corresponding amount as service income by our WFOE and eliminate in consolidation. For income tax purposes, our WFOE and VIE file income tax returns on a separate company basis. The fees paid are recognized as a tax deduction by the VIE and as income by our WFOE and are tax neutral. |
(3) | For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate of 25% would be effective. |
(4) | The EIT Law of the PRC imposes a withholding income tax of 10% on dividends distributed by a Foreign Invested Enterprises (“FIE”) to its immediate holding company outside of China. A lower withholding income tax rate of 5% is applied if the FIE’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with China, subject to a qualification review at the time of the distribution. For purposes of this hypothetical example, the table above assumes a maximum tax scenario under which the full withholding tax rate of 10% would be applied. |
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Note 1) | (Note 1) | (Note 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage commission income | — | 8,409 | — | 973,715 | — | 982,124 | — | — | — | 1,215,434 | — | 1,215,434 | — | 865 | — | 2,231,388 | — | 2,232,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | — | — | — | 11,195 | — | 11,195 | 228 | — | — | 4,560 | — | 4,788 | 1,269 | — | 11,494 | — | 12,763 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating revenue | — | 8,409 | — | 984,910 | — | 993,319 | 228 | — | — | 1,219,994 | — | 1,220,222 | 1,269 | 865 | — | 2,242,882 | — | 2,245,016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | — | (6,625 | ) | — | (622,906 | ) | — | (629,531 | ) | — | — | — | (813,507 | ) | — | (813,507 | ) | — | (317 | ) | — | (1,687,770 | ) | — | (1,688,087 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Other cost | — | — | — | (1,837 | ) | — | (1,837 | ) | — | — | — | (2,846 | ) | — | (2,846 | ) | — | — | — | (2,670 | ) | — | (2,670 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs | — | (6,625 | ) | — | (624,743 | ) | — | (631,368 | ) | — | — | — | (816,353 | ) | — | (816,353 | ) | — | (317 | ) | — | (1,690,440 | ) | — | (1,690,757 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Selling expenses | — | (1,546 | ) | — | (163,119 | ) | — | (164,665 | ) | — | — | — | (230,438 | ) | — | (230,438 | ) | — | (4,268 | ) | — | (346,305 | ) | — | (350,573 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | (521 | ) | (7,936 | ) | (35 | ) | (153,324 | ) | — | (161,816 | ) | (4,611 | ) | (8,668 | ) | (7 | ) | (136,921 | ) | — | (150,207 | ) | (5,994 | ) | (18,751 | ) | (52 | ) | (172,822 | ) | — | (197,619 | ) | |||||||||||||||||||||||||||||||||||||||
Research and development expenses | — | — | — | (33,831 | ) | — | (33,831 | ) | — | — | — | (49,135 | ) | — | (49,135 | ) | — | — | — | (120,478 | ) | — | (120,478 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs and expenses | (521 | ) | (16,107 | ) | (35 | ) | (975,017 | ) | — | (991,680 | ) | (4,611 | ) | (8,668 | ) | (7 | ) | (1,232,847 | ) | — | (1,246,133 | ) | (5,994 | ) | (23,336 | ) | (52 | ) | (2,330,045 | ) | — | (2,359,427 | ) | |||||||||||||||||||||||||||||||||||||||
Operating (loss)/income | (521 | ) | (7,698 | ) | (35 | ) | 9,893 | — | 1,639 | (4,383 | ) | (8,668 | ) | (7 | ) | (12,853 | ) | — | (25,911 | ) | (4,725 | ) | (22,471 | ) | (52 | ) | (87,163 | ) | — | (114,411 | ) | |||||||||||||||||||||||||||||||||||||||||
Other income/(expenses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest (expenses)/income | — | 7 | — | (197 | ) | — | (190 | ) | 11 | 645 | — | (1,813 | ) | — | (1,157 | ) | 4 | 840 | 42 | (4,092 | ) | — | (3,206 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized exchange (loss)/income | (97 | ) | 38 | — | 421 | — | 362 | 421 | (14 | ) | 5 | (421 | ) | — | (9 | ) | — | (59 | ) | — | — | — | (59 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment income | — | 718 | — | — | — | 718 | — | — | — | 137 | — | 137 | — | (3,959 | ) | — | (1,369 | ) | — | (5,328 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Others, net | — | (14 | ) | — | 12,690 | — | 12,676 | — | 24 | — | 10,153 | — | 10,177 | — | — | — | 12,627 | — | 12,627 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit before income tax, and share of (loss)/income of equity method investee | (618 | ) | (6,949 | ) | (35 | ) | 22,807 | — | 15,205 | (3,951 | ) | (8,013 | ) | (2 | ) | (4,797 | ) | — | (16,763 | ) | (4,721 | ) | (25,649 | ) | (10 | ) | (79,997 | ) | — | (110,377 | ) | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | — | (37 | ) | — | (20 | ) | — | (57 | ) | — | — | — | (1,768 | ) | — | (1,768 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Share of income/(loss) of equity method investee | — | — | — | (180 | ) | — | (180 | ) | — | — | — | 239 | — | 239 | — | — | — | 2,660 | — | 2,660 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share of income/(loss) of subsidiaries and VIE | 15,520 | 22,572 | 22,607 | — | (60,699 | ) (i) | — | (14,341 | ) | (6,328 | ) | (6,326 | ) | — | | 26,995 | (i) | — | (102,945 | ) | (77,296 | ) | (77,286 | ) | 257,527 | (i) | — | |||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Note 1) | (Note 1) | (Note 1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net profit/(loss) | 14,902 | 15,586 | 22,572 | 22,607 | (60,699 | ) | 14,968 | (18,292 | ) | (14,341 | ) | (6,328 | ) | (6,326 | ) | 26,995 | (18,292 | ) | (107,666 | ) | (102,945 | ) | (77,296 | ) | (77,337 | ) | 257,527 | (107,717 | ) | |||||||||||||||||||||||||||||||||||||||||||
Net profit/(loss) attributable to non-controlling interests | — | 66 | — | — | — | 66 | — | — | — | — | — | — | — | — | — | (51 | ) | — | (51 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net profit/(loss) attributable to Huize Holding Limited | 14,902 | 15,520 | 22,572 | 22,607 | (60,699 | ) | 14,902 | (18,292 | ) | (14,341 | ) | (6,328 | ) | (6,326 | ) | 26,995 | (18,292 | ) | (107,666 | ) | (102,945 | ) | (77,296 | ) | (77,286 | ) | 257,527 | (107,666 | ) | |||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | (32,854 | ) | — | — | — | — | (32,854 | ) | (4,274 | ) | — | — | — | — | (4,274 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation to redeemable preferred shares | (7,431 | ) | — | — | — | — | (7,431 | ) | 1,074 | — | — | — | — | 1,074 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss)/profit attributable to common shareholders | (25,383 | ) | 15,520 | 22,572 | 22,607 | (60,699 | ) | (25,383 | ) | (21,492 | ) | (14,341 | ) | (6,328 | ) | (6,326 | ) | 26,995 | (21,492 | ) | (107,666 | ) | (102,945 | ) | (77,296 | ) | (77,286 | ) | 257,527 | (107,666 | ) | |||||||||||||||||||||||||||||||||||||||||
Net profit/(loss) | 14,902 | 15,586 | 22,572 | 22,607 | (60,699 | ) | 14,968 | (18,292 | ) | (14,341 | ) | (6,328 | ) | (6,326 | ) | 26,995 | (18,292 | ) | (107,666 | ) | (102,945 | ) | (77,296 | ) | (77,337 | ) | 257,527 | (107,717 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | 119 | 105 | — | — | (84 | ) (ii) | 140 | (22,386 | ) | 451 | — | — | (451 | ) (ii) | (22,386 | ) | (5,323 | ) | 1,742 | — | — | (1,742 | ) (ii) | (5,323 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income/(loss) | 15,021 | 15,691 | 22,572 | 22,607 | (60,783 | ) | 15,108 | (40,678 | ) | (13,890 | ) | (6,328 | ) | (6,326 | ) | 26,544 | (40,678 | ) | (112,989 | ) | (101,203 | ) | (77,296 | ) | (77,337 | ) | 255,785 | (113,040 | ) | |||||||||||||||||||||||||||||||||||||||||||
Comprehensive income/(loss) attributable to non-controlling interests | — | 87 | — | — | — | 87 | — | — | — | — | — | — | — | — | — | (51 | ) | — | (51 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income/(loss) attributable to Huize Holding Limited | 15,021 | 15,604 | 22,572 | 22,607 | (60,783 | ) | 15,021 | (40,678 | ) | (13,890 | ) | (6,328 | ) | (6,326 | ) | 26,544 | (40,678 | ) | (112,989 | ) | (101,203 | ) | (77,296 | ) | (77,286 | ) | 255,785 | (112,989 | ) | |||||||||||||||||||||||||||||||||||||||||||
(i) | The elimination represents equity pick-up of net profits and losses in the subsidiaries of the parent company, WFOE and the VIE and its subsidiaries. |
(ii) | The elimination represents equity pick-up of other comprehensive income in the subsidiaries of the parent company. |
As at December 31, 2020 | As at December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 2) RMB’000 | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 2) RMB’000 | Consolidated | |||||||||||||||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalent | 187,217 | 4,893 | 529 | 211,979 | — | 404,618 | 16,291 | 34,783 | 7,073 | 323,011 | — | 381,158 | ||||||||||||||||||||||||||||||||||||
Restricted cash | — | 106,380 | — | 217,950 | — | 324,330 | — | 56,093 | — | 127,315 | — | 183,408 | ||||||||||||||||||||||||||||||||||||
Contract Assets | 216 | — | — | — | — | 216 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Account receivables, net of allowance for impairment | — | — | — | 232,589 | — | 232,589 | — | 207 | — | 777,055 | — | 777,262 | ||||||||||||||||||||||||||||||||||||
Insurance premium receivables | — | — | — | 1,974 | — | 1,974 | — | — | — | 1,217 | — | 1,217 | ||||||||||||||||||||||||||||||||||||
Amount due from related parties | 189 | 62 | — | — | — | 251 | 106 | 22 | — | — | — | 128 | ||||||||||||||||||||||||||||||||||||
Prepaid expense and other receivables | 131,895 | 711 | — | 66,323 | (154,552 | ) (i) | 44,377 | 291,666 | 2,812 | 128,000 | 106,865 | (451,832 | ) (i) | 77,511 | ||||||||||||||||||||||||||||||||||
Total current assets | 319,517 | 112,046 | 529 | 730,815 | (154,552 | ) | 1,008,355 | 308,063 | 93,917 | 135,073 | 1,335,463 | (451,832 | ) | 1,420,684 | ||||||||||||||||||||||||||||||||||
Non-current assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | — | — | — | — | — | — | — | 19,738 | — | 24,680 | — | 44,418 | ||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, net | — | 34 | — | 10,217 | — | 10,251 | — | 661 | — | 47,800 | — | 48,461 | ||||||||||||||||||||||||||||||||||||
Intangible assets, net | — | — | — | 2,030 | — | 2,030 | — | 2,647 | — | 18,979 | — | 21,626 | ||||||||||||||||||||||||||||||||||||
Deferred tax assets | — | — | — | 605 | — | 605 | — | — | — | 605 | — | 605 | ||||||||||||||||||||||||||||||||||||
Long-term investments | — | 9,195 | — | 36,889 | — | 46,084 | — | 13,551 | — | 59,450 | — | 73,001 | ||||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 179,059 | 189,606 | — | — | (368,665 | ) (ii) | — | 76,030 | 239,113 | — | — | (315,143 | ) (ii) | — | ||||||||||||||||||||||||||||||||||
Investment in VIE | — | — | 189,159 | — | (189,159 | ) (ii) | — | — | — | 109,172 | — | (109,172 | ) (ii) | — | ||||||||||||||||||||||||||||||||||
Operating lease right-of-use | — | — | — | 267,352 | — | 267,352 | — | 5,939 | — | 241,880 | — | 247,819 | ||||||||||||||||||||||||||||||||||||
Goodwill | — | — | — | 461 | — | 461 | — | — | — | 461 | — | 461 | ||||||||||||||||||||||||||||||||||||
Other Assets | — | — | — | 838 | — | 838 | — | — | — | 379 | — | 379 | ||||||||||||||||||||||||||||||||||||
Total non-current assets | 179,059 | 198,835 | 189,159 | 318,392 | (557,824 | ) | 327,621 | 76,030 | 281,649 | 109,172 | 394,234 | (424,315 | ) | 436,770 | ||||||||||||||||||||||||||||||||||
Total assets | 498,576 | 310,881 | 189,688 | 1,049,207 | (712,376 | ) | 1,335,976 | 384,093 | 375,566 | 244,245 | 1,729,697 | (876,147 | ) | 1,857,454 | ||||||||||||||||||||||||||||||||||
Liabilities, and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | — | — | — | 31,540 | — | 31,540 | — | — | — | 216,710 | — | 216,710 | ||||||||||||||||||||||||||||||||||||
Accounts payable | — | — | — | 227,532 | — | 227,532 | — | 186 | — | 680,183 | — | 680,369 | ||||||||||||||||||||||||||||||||||||
Insurance premium payables | — | — | — | 187,219 | — | 187,219 | — | — | — | 124,019 | — | 124,019 | ||||||||||||||||||||||||||||||||||||
Contract liabilities | — | — | — | — | — | — | 4,555 | — | — | 2,681 | — | 7,236 | ||||||||||||||||||||||||||||||||||||
Other payables and accrued expenses | 14,836 | 131,368 | 82 | 39,419 | (154,552 | ) (i) | 31,153 | 17,892 | 292,602 | 5,132 | 207,461 | (451,832 | ) (i) | 71,255 | ||||||||||||||||||||||||||||||||||
Payroll and welfare payable | 10,901 | 454 | — | 52,564 | — | 63,919 | 1,357 | — | — | 92,094 | — | 93,451 | ||||||||||||||||||||||||||||||||||||
Income taxes payable | — | — | — | 2,440 | — | 2,440 | — | — | — | 2,440 | — | 2,440 | ||||||||||||||||||||||||||||||||||||
Operating lease liabilities | — | — | — | 12,763 | — | 12,763 | — | 2,524 | — | 12,362 | — | 14,886 | ||||||||||||||||||||||||||||||||||||
Amount due to related parties | — | — | — | — | — | — | — | — | — | 11,875 | — | 11,875 | ||||||||||||||||||||||||||||||||||||
Total current liabilities | 25,737 | 131,822 | 82 | 553,477 | (154,552 | ) | 556,566 | 23,804 | 295,312 | 5,132 | 1,349,825 | (451,832 | ) | 1,222,241 | ||||||||||||||||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term borrowings. | — | — | — | 53,860 | — | 53,860 | — | — | — | 20,000 | — | 20,000 | ||||||||||||||||||||||||||||||||||||
Deferred tax liabilities | — | — | — | 605 | — | 605 | — | 437 | — | 4,455 | — | 4,892 | ||||||||||||||||||||||||||||||||||||
Operating lease liabilities | — | — | — | 252,106 | — | 252,106 | — | 3,787 | — | 245,396 | — | 249,183 | ||||||||||||||||||||||||||||||||||||
Payroll and welfare payable | 4,156 | — | — | — | — | 4,156 | 225 | — | — | — | — | 225 | ||||||||||||||||||||||||||||||||||||
Total non-current liabilities | 4,156 | — | — | 306,571 | — | 310,727 | 225 | 4,224 | — | 269,851 | — | | 274,30 0 | | ||||||||||||||||||||||||||||||||||
Total liabilities | 29,893 | 131,822 | 82 | 860,048 | (154,552 | ) | 867,293 | 24,029 | 299,536 | 5,132 | 1,619,676 | (451,832 | ) | 1,496,541 | ||||||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Common shares | — | — | 485 | 44,766 | (45,251 | ) (ii) | — | — | — | 129,989 | 44,766 | (174,755 | ) (ii) | — | ||||||||||||||||||||||||||||||||||
Class A common shares | 62 | — | — | — | — | 62 | 62 | — | — | — | — | 62 | ||||||||||||||||||||||||||||||||||||
Class B common shares | 10 | — | — | — | — | 10 | 10 | — | — | — | — | 10 | ||||||||||||||||||||||||||||||||||||
Treasury stock | (2,063 | ) | — | — | — | — | (2,063 | ) | (9,545 | ) | — | — | — | — | (9,545 | ) | ||||||||||||||||||||||||||||||||
Additional paid-in capital | 884,920 | 513,631 | 507,623 | 462,858 | (1,484,112 | ) (ii) | 884,920 | 896,772 | 511,805 | 504,922 | 460,157 | (1,476,884 | ) (ii) | 896,772 | ||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (21,972 | ) | 454 | — | — | (454 | ) (ii) | (21,972 | ) | (27,295 | ) | 2,196 | — | — | (2,196 | ) (ii) | (27,295 | ) | ||||||||||||||||||||||||||||||
Accumulated (deficit)/equity | (392,274 | ) | (335,026 | ) | (318,502 | ) | (318,465 | ) | 971,993 | (ii) | (392,274 | ) | (499,940 | ) | (437,971 | ) | (395,798 | ) | (395,751 | ) | 1,229,520 | (ii) | (499,940 | ) | ||||||||||||||||||||||||
Total shareholders’ equity attributable to Huize Holding Limited shareholders | 468,683 | 179,059 | 189,606 | 189,159 | (557,824 | ) | 468,683 | 360,064 | 76,030 | 239,113 | 109,172 | (424,315 | ) | 360,064 | ||||||||||||||||||||||||||||||||||
Non-controlling interests | — | — | — | — | — | — | — | — | — | 849 | — | 849 | ||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 468,683 | 179,059 | 189,606 | 189,159 | (557,824 | ) | 468,683 | 360,064 | 76,030 | 239,113 | 110,021 | (424,315 | ) | 360,913 | ||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | 498,576 | 310,881 | 189,688 | 1,049,207 | (712,376 | ) | 1,335,976 | 384,093 | 375,566 | 244,245 | 1,729,697 | (876,147 | ) | 1,857,454 | ||||||||||||||||||||||||||||||||||
Note 2: | (i) | The elimination mainly represents inter-company loans that the parent company grant to the subsidiaries of the parent company. | ||
(ii) | The elimination represents offsetting entries for investment of the parent company against the equities of the subsidiaries of parent company and the VIE. |
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 3) RMB’000 | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 3) RMB’000 | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 3) RMB’000 | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) operating activities | — | (2,505 | ) | (37 | ) | 120,566 | — | 118,024 | (6,128 | ) | (24,429 | ) | (2 | ) | 168,225 | — | 137,666 | (4,576 | ) | (18,487 | ) | (10 | ) | (152,844 | ) | — | (175,917 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of long-term investment | — | — | — | (2,000 | ) | — | (2,000 | ) | — | — | — | (22,450 | ) | — | (22,450 | ) | — | (11,013 | ) | — | (22,601 | ) | — | (33,614 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of property, equipment and intangible assets | — | — | — | (6,035 | ) | — | (6,035 | ) | — | (34 | ) | — | (8,162 | ) | — | (8,196 | ) | — | (702 | ) | — | (37,359 | ) | — | (38,061 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property, equipment and intangible assets | — | — | — | 60 | — | 60 | — | — | — | — | — | — | — | 19 | — | 961 | — | 980 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of subsidiary, net of cash paid | — | — | — | — | — | — | — | — | — | (569 | ) | — | (569 | ) | — | (2,487 | ) | — | (11,805 | ) | — | (14,292 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of subsidiary | — | 1,037 | — | — | — | 1,037 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries from parent | — | — | — | — | — | — | (245 | ) | — | — | 245 | (i) | — | (247 | ) | — | — | — | 247 | (i) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in WFOE from subsidiaries | — | — | — | — | — | — | — | (485 | ) | — | — | 485 | (ii) | — | — | (129,504 | ) | — | — | 129,504 | (ii) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of inter-company balances | — | (50 | ) | — | — | 50 | (iii) | — | (139,123 | ) | — | — | — | 139,123 | (iii) | — | (161,216 | ) | — | (128,000 | ) | (5,050 | ) | 294,266 | (iii) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of investments | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,930 | — | 890 | — | 3,820 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others | — | — | — | 11 | — | 11 | — | — | — | 137 | — | 137 | — | — | — | 241 | — | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) investing activities | — | 987 | — | (7,964 | ) | 50 | (6,927 | ) | (139,368 | ) | (519 | ) | — | (31,044 | ) | 139,853 | (31,078 | ) | (161,463 | ) | (140,757 | ) | (128,000 | ) | (74,723 | ) | 424,017 | (80,926 | ) | |||||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common share and redeemable preferred shares during Reorganization | 62 | — | — | (62 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from borrowings | — | — | — | 30,000 | — | 30,000 | — | — | — | 105,400 | — | 105,400 | — | — | — | 184,000 | — | 184,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of borrowings | — | — | — | (35,285 | ) | — | (35,285 | ) | — | — | — | (61,266 | ) | — | (61,266 | ) | — | — | — | (40,503 | ) | — | (40,503 | ) |
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 3) RMB’000 | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 3) RMB’000 | Consolidated | Parent company | Subsidiaries of parent company | WFOE | VIE and its subsidiaries | Elimination (Note 3) RMB’000 | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | RMB’000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of convertible bonds | — | — | — | (8,794 | ) | — | (8,794 | ) | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from IPO, net of issurance costs | — | — | — | — | — | — | 340,479 | — | — | — | — | 340,479 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from inter-company balances | — | — | 50 | — | (50 | ) (iii) | — | — | 139,092 | 31 | — | (139,123 | ) (iii) | — | — | 161,216 | 5,050 | 128,000 | (294,266 | ) (iii) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common shares | — | — | — | — | — | — | (2,063 | ) | — | — | — | — | (2,063 | ) | (3,003 | ) | — | — | — | — | (3,003 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from exercise of share option | — | — | — | — | — | — | 503 | — | — | 245 | (245 | ) (i) | 503 | 497 | — | — | 247 | (247 | ) (i) | 497 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash received by subsidiaries from minority shareholders | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 900 | 900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital injection from subsidiaries | — | — | — | — | — | — | — | — | 485 | — | (485 | ) (ii) | — | — | — | 129,504 | — | (129,504 | ) (ii) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | 62 | — | 50 | (14,141 | ) | (50 | ) | (14,079 | ) | 338,919 | 139,092 | 516 | 44,379 | (139,853 | ) | 383,053 | (2,506 | ) | 161,216 | 134,554 | 272,644 | (424,017 | ) | 141,891 | ||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 38 | — | — | — | 38 | (6,268 | ) | (3,752 | ) | — | — | — | (10,020 | ) | (2,381 | ) | (2,631 | ) | — | — | — | (5,012 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net increase in cash and cash equivalents and restricted cash | 62 | (1,480 | ) | 13 | 98,461 | — | 97,056 | 187,155 | 110,392 | 514 | 181,560 | — | 479,621 | (170,926 | ) | (659 | ) | 6,544 | 45,077 | — | (119,964 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents and restricted cash at beginning of year | — | 2,361 | 2 | 149,908 | — | 152,271 | 62 | 881 | 15 | 248,369 | — | 249,327 | 187,217 | 111,273 | 529 | 429,929 | — | 728,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents and restricted cash at end of year | 62 | 881 | 15 | 248,369 | — | 249,327 | 187,217 | 111,273 | 529 | 429,929 | — | 728,948 | 16,291 | 110,614 | 7,073 | 475,006 | — | 608,984 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(ii) | The elimination represents inter-company capital injections between subsidiaries and WFOE. |
(iii) | The elimination represents inter-company loans among the parent company, its subsidiaries, WFOE and the VIE. |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | US$ | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||||||||||
(in thousands, except for percentages, share and per share data) | ||||||||||||||||||||||||||||||||||||||||||||
Summary Consolidated Statements of Comprehensive (Loss)/Income | ||||||||||||||||||||||||||||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages, share and per share data) | ||||||||||||||||||||||||||||||||||||||||||||
Summary Consolidated Statements of Comprehensive (Loss)/Income Operating revenue | ||||||||||||||||||||||||||||||||||||||||||||
Brokerage income | 251,556 | 503,547 | 982,124 | 1,215,434 | 186,273 | 251,556 | 503,547 | 982,124 | 1,215,434 | 2,232,253 | 350,289 | |||||||||||||||||||||||||||||||||
Other income | 11,776 | 5,281 | 11,195 | 4,788 | 734 | 11,776 | 5,281 | 11,195 | 4,788 | 12,763 | 2,003 | |||||||||||||||||||||||||||||||||
Total operating revenue | 263,332 | 508,828 | 993,319 | 1,220,222 | 187,007 | 263,332 | 508,828 | 993,319 | 1,220,222 | 2,245,016 | 352,292 | |||||||||||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue (1) | (164,750 | ) | (316,397 | ) | (629,531 | ) | (813,507 | ) | (124,675 | ) | (164,750 | ) | (316,397 | ) | (629,531 | ) | (813,507 | ) | (1,688,087 | ) | (264,898 | ) | ||||||||||||||||||||||
Other cost | (1,919 | ) | (1,905 | ) | (1,837 | ) | (2,846 | ) | (437 | ) | (1,919 | ) | (1,905 | ) | (1,837 | ) | (2,846 | ) | (2,670 | ) | (419 | ) | ||||||||||||||||||||||
Total operating costs | (166,669 | ) | (318,302 | ) | (631,368 | ) | (816,353 | ) | (125,112 | ) | (166,669 | ) | (318,302 | ) | (631,368 | ) | (816,353 | ) | (1,690,757 | ) | (265,317 | ) | ||||||||||||||||||||||
Selling expenses (1) | (104,980 | ) | (94,613 | ) | (164,665 | ) | (230,438 | ) | (35,316 | ) | (104,980 | ) | (94,613 | ) | (164,665 | ) | (230,438 | ) | (350,573 | ) | (55,012 | ) | ||||||||||||||||||||||
General and administrative expenses (1) | (41,877 | ) | (46,177 | ) | (161,816 | ) | (150,207 | ) | (23,020 | ) | (41,877 | ) | (46,177 | ) | (161,816 | ) | (150,207 | ) | (197,619 | ) | (31,011 | ) | ||||||||||||||||||||||
Research and development expenses (1) | (50,107 | ) | (24,944 | ) | (33,831 | ) | (49,135 | ) | (7,530 | ) | (50,107 | ) | (24,944 | ) | (33,831 | ) | (49,135 | ) | (120,478 | ) | (18,906 | ) | ||||||||||||||||||||||
Total operating costs and expenses | (363,633 | ) | (484,036 | ) | (991,680 | ) | (1,246,133 | ) | (190,978 | ) | (363,633 | ) | (484,036 | ) | (991,680 | ) | (1,246,133 | ) | (2,359,427 | ) | (370,246 | ) | ||||||||||||||||||||||
Operating (loss)/profit | (100,301 | ) | 24,792 | 1,639 | (25,911 | ) | (3,971 | ) | (100,301 | ) | 24,792 | 1,639 | (25,911 | ) | (114,411 | ) | (17,954 | ) | ||||||||||||||||||||||||||
Other income/(expenses) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income/(expenses) | 655 | (27,111 | ) | (190 | ) | (1,157 | ) | (177 | ) | 655 | (27,111 | ) | (190 | ) | (1,157 | ) | (3,206 | ) | (503 | ) | ||||||||||||||||||||||||
Unrealized exchange income/(loss) | 36 | (354 | ) | 362 | (9 | ) | (1 | ) | 36 | (354 | ) | 362 | (9 | ) | (59 | ) | (9 | ) | ||||||||||||||||||||||||||
Investment income | 811 | — | 718 | 137 | 21 | 811 | — | 718 | 137 | (5,328 | ) | (836 | ) | |||||||||||||||||||||||||||||||
Others, net | 1,171 | 4,569 | 12,676 | 10,177 | 1,559 | 1,171 | 4,569 | 12,676 | 10,177 | 12,627 | 1,981 | |||||||||||||||||||||||||||||||||
(Loss)/profit before income tax, and share of income of equity method investee | (97,628 | ) | 1,896 | 15,205 | (16,763 | ) | (2,569 | ) | (97,628 | ) | 1,896 | 15,205 | (16,763 | ) | (110,377 | ) | (17,321 | ) | ||||||||||||||||||||||||||
Income tax expense | (406 | ) | (278 | ) | (57 | ) | (1,768 | ) | (271 | ) | (406 | ) | (278 | ) | (57 | ) | (1,768 | ) | — | — | ||||||||||||||||||||||||
Share of income/(loss) of equity method investee | 989 | 1,310 | (180 | ) | 239 | 37 | 989 | 1,310 | (180 | ) | 239 | 2,660 | 417 | |||||||||||||||||||||||||||||||
Net (loss)/profit | (97,045 | ) | 2,928 | 14,968 | (18,292 | ) | (2,803 | ) | (97,045 | ) | 2,928 | 14,968 | (18,292 | ) | (107,717 | ) | (16,904 | ) | ||||||||||||||||||||||||||
Net profit/(loss) attributable to non-controlling interests | 128 | (224 | ) | 66 | — | — | 128 | (224 | ) | 66 | — | (51 | ) | (8 | ) | |||||||||||||||||||||||||||||
Net (loss)/profit attributable to Huize Holding Limited | (97,173 | ) | 3,152 | 14,902 | (18,292 | ) | (2,803 | ) | (97,173 | ) | 3,152 | 14,902 | (18,292 | ) | (107,666 | ) | (16,896 | ) | ||||||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | (26,474 | ) | (29,118 | ) | (32,854 | ) | (4,274 | ) | (655 | ) | (26,474 | ) | (29,118 | ) | (32,854 | ) | (4,274 | ) | — | — | ||||||||||||||||||||||||
Allocation to redeemable preferred shares | 47,934 | (1,558 | ) | (7,431 | ) | 1,074 | 165 | 47,934 | (1,558 | ) | (7,431 | ) | 1,074 | — | — | |||||||||||||||||||||||||||||
Net loss attributable to common shareholders | (75,713 | ) | (27,524 | ) | (25,383 | ) | (21,492 | ) | (3,293 | ) | (75,713 | ) | (27,524 | ) | (25,383 | ) | (21,492 | ) | (107,666 | ) | (16,896 | ) | ||||||||||||||||||||||
Weighted average number of common shares used in computing net (loss)/profit per share | ||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | 445,272,000 | 445,272,000 | 452,445,068 | 963,817,614 | 963,817,614 | |||||||||||||||||||||||||||||||||||||||
Net loss per share attributable to common shareholders | ||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | (0.17 | ) | (0.06 | ) | (0.06 | ) | (0.02 | ) | (0.00 | ) | ||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for percentages, share and per share data) | ||||||||||||||||||||||||
Weighted average number of common shares used in computing net (loss)/profit per share | ||||||||||||||||||||||||
Basic and diluted | 445,272,000 | 445,272,000 | 452,445,068 | 963,817,614 | 1,021,861,206 | 1,021,861,206 | ||||||||||||||||||
Net loss per share attributable to common shareholders | ||||||||||||||||||||||||
Basic and diluted | (0.17 | ) | (0.06 | ) | (0.06 | ) | (0.02 | ) | (0.11 | ) | (0.02 | ) | ||||||||||||
(1) | Share-based compensation expenses were allocated in operating costs and expenses as follows: |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | 26 | 9 | 43 | 410 | 63 | 26 | 9 | 43 | 410 | (387 | ) | (61 | ) | |||||||||||||||||||||||||||||||
Selling expenses | 196 | 110 | 6,514 | 10,642 | 1,631 | 196 | 110 | 6,514 | 10,642 | (475 | ) | (75 | ) | |||||||||||||||||||||||||||||||
General and administrative expenses | 386 | 726 | 87,980 | 40,820 | 6,256 | 386 | 726 | 87,980 | 40,820 | (665 | ) | (104 | ) | |||||||||||||||||||||||||||||||
Research and development expenses | 203 | 122 | 421 | 381 | 58 | 203 | 122 | 421 | 381 | (297 | ) | (47 | ) | |||||||||||||||||||||||||||||||
Total | 811 | 967 | 94,958 | 52,253 | 8,008 | 811 | 967 | 94,958 | 52,253 | (1,824 | ) | (287 | ) | |||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Summary Consolidated Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | 12,261 | 6,640 | 88,141 | 404,618 | 62,010 | |||||||||||||||
Restricted cash (including amounts of the consolidated VIE of RMB27,992, RMB145,599 thousand, RMB161,186 thousand and RMB217,950 thousand as of December 31, 2017, 2018, 2019 and 2020, respectively) | 28,019 | 145,631 | 161,186 | 324,330 | 49,706 | |||||||||||||||
Accounts receivable, net of allowance for doubtful accounts | 70,690 | 108,434 | 180,393 | 232,589 | 35,646 | |||||||||||||||
Long-term investments | 17,765 | 21,575 | 23,395 | 46,084 | 7,063 | |||||||||||||||
Total assets | 165,777 | 334,084 | 508,805 | 1,335,976 | 204,747 | |||||||||||||||
Accounts payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB15,220 thousand, RMB72,989 thousand, RMB124,441 thousand and RMB227,532 thousand as of December 31, 2017, 2018, 2019 and 2020, respectively) | 15,453 | 73,448 | 124,441 | 227,532 | 34,871 | |||||||||||||||
Insurance premium payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB101,694 thousand, RMB114,447 thousand, RMB125,587 thousand and RMB187,219 thousand as of December 31, 2017, 2018, 2019 and 2020, respectively) | 101,694 | 114,447 | 125,587 | 187,219 | 28,693 | |||||||||||||||
Other payables and accrued expenses (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB25,522 thousand, RMB60,599 thousand, RMB37,678 thousand and RMB39,421 thousand as of December 31, 2017, 2018, 2019 and 2020, respectively) | 26,036 | 36,908 | 30,211 | 31,153 | 4,774 | |||||||||||||||
Payroll and welfare payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB17,017 thousand, RMB31,850 thousand, RMB43,831 thousand and RMB52,564 thousand as of December 31, 2017, 2018, 2019 and 2020, respectively) | 17,017 | 31,850 | 43,993 | 63,919 | 9,796 | |||||||||||||||
Income taxes payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB206 thousand, RMB206 thousand, RMB206 thousand and RMB2,440 thousand as of December 31, 2017, 2018, 2019 and 2020, respectively) | 445 | 250 | 206 | 2,440 | 374 | |||||||||||||||
Total liabilities | 183,919 | 297,549 | 362,831 | 867,293 | 132,919 | |||||||||||||||
Total mezzanine equity | 367,228 | 421,773 | 454,627 | — | — | |||||||||||||||
Total shareholders’ (deficit)/equity | (385,370 | ) | (385,238 | ) | (308,653 | ) | 468,683 | 71,828 | ||||||||||||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 165,777 | 334,084 | 508,805 | 1,335,976 | 204,747 | |||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Summary Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Cash and cash equivalents | 12,261 | 6,640 | 88,141 | 404,618 | 381,158 | 59,812 | ||||||||||||||||||
Restricted cash (including amounts of the consolidated VIE of RMB27,992, RMB145,599 thousand, RMB161,186 thousand, RMB217,950 thousand and RMB151,995 thousand as of December 31, 2017, 2018, 2019, 2020 and 2021, respectively) | 28,019 | 145,631 | 161,186 | 324,330 | 227,826 | 35,751 | ||||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts | 70,690 | 108,434 | 180,393 | 232,589 | 777,262 | 121,969 | ||||||||||||||||||
Long-term investments | 17,765 | 21,575 | 23,395 | 46,084 | 73,001 | 11,456 | ||||||||||||||||||
Total assets | 165,777 | 334,084 | 508,805 | 1,335,976 | 1,857,454 | 291,475 | ||||||||||||||||||
Accounts payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB15,220 thousand, RMB72,989 thousand, RMB124,441 thousand, RMB227,532 thousand and RMB680,183 thousand as of December 31, 2017, 2018, 2019, 2020 and 2021, respectively) | 15,453 | 73,448 | 124,441 | 227,532 | 680,369 | 106,765 | ||||||||||||||||||
Insurance premium payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB101,694 thousand, RMB114,447 thousand, RMB125,587 thousand, RMB187,219 thousand and RMB124,019 thousand as of December 31, 2017, 2018, 2019, 2020 and 2021, respectively) | 101,694 | 114,447 | 125,587 | 187,219 | 124,019 | 19,461 | ||||||||||||||||||
Other payables and accrued expenses (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB25,522 thousand, RMB60,599 thousand, RMB37,678 thousand, RMB39,421 thousand and RMB207,462 thousand as of December 31, 2017, 2018, 2019, 2020 and 2021, respectively) | 26,036 | 36,908 | 30,211 | 31,153 | 71,255 | 11,181 |
As of December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Payroll and welfare payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB17,017 thousand, RMB31,850 thousand, RMB43,831 thousand, RMB52,564 thousand and RMB92,094 thousand as of December 31, 2017, 2018, 2019, 2020 and 2021, respectively) | 17,017 | 31,850 | 43,993 | 63,919 | 93,451 | 14,665 | ||||||||||||||||||
Income taxes payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB206 thousand, RMB206 thousand, RMB206 thousand, RMB2,440 thousand and RMB2,440 thousand as of December 31, 2017, 2018, 2019, 2020 and 2021, respectively) | 445 | 250 | 206 | 2,440 | 2,440 | 383 | ||||||||||||||||||
Total liabilities | 183,919 | 297,549 | 362,831 | 867,293 | 1,496,541 | 234,839 | ||||||||||||||||||
Total mezzanine equity | 367,228 | 421,773 | 454,627 | — | — | — | ||||||||||||||||||
Total shareholders’ (deficit)/equity | (385,370 | ) | (385,238 | ) | (308,653 | ) | 468,683 | 360,913 | 56,636 | |||||||||||||||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 165,777 | 334,084 | 508,805 | 1,335,976 | 1,857,454 | 291,475 | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Summary Consolidated Cash Flow Data: | ||||||||||||||||||||||||||||||||||||||||||||
Net cash (used in)/ provided by operating activities | (85,349 | ) | 66,853 | 118,024 | 137,666 | 21,098 | (85,349 | ) | 66,853 | 118,024 | 137,666 | (175,917 | ) | (27,605 | ) | |||||||||||||||||||||||||||||
Net cash provided by/(used in) investing activities | 57,767 | (3,554 | ) | (6,927 | ) | (31,078 | ) | (4,763 | ) | 57,767 | (3,554 | ) | (6,927 | ) | (31,078 | ) | (80,926 | ) | (12,700 | ) | ||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | 22,988 | 48,572 | (14,079 | ) | 383,053 | 58,706 | 22,988 | 48,572 | (14,079 | ) | 383,053 | 141,891 | 22,266 | |||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (234 | ) | 120 | 38 | (10,020 | ) | (1,536 | ) | (234 | ) | 120 | 38 | (10,020 | ) | (5,012 | ) | (786 | ) | ||||||||||||||||||||||||||
Net (decrease)/ increase in cash and cash equivalents and restricted cash | (4,828 | ) | 111,991 | 97,056 | 479,621 | 73,505 | (4,828 | ) | 111,991 | 97,056 | 479,621 | (119,964 | ) | (18,825 | ) | |||||||||||||||||||||||||||||
Total cash and cash equivalents and restricted cash at beginning of the year | 45,108 | 40,280 | 152,271 | 249,327 | 38,211 | 45,108 | 40,280 | 152,271 | 249,327 | 728,948 | 114,388 | |||||||||||||||||||||||||||||||||
Total cash and cash equivalents and restricted cash at end of the year | 40,280 | 152,271 | 249,327 | 728,948 | 111,716 | 40,280 | 152,271 | 249,327 | 728,948 | 608,984 | 95,563 | |||||||||||||||||||||||||||||||||
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
ITEM 4. | INFORMATION ON THE COMPANY |
A. | History and Development of the Company |
B. | Business Overview |
Type of Insurance Products | Sub-Category | GWP in 2018 (in RMB million) | GWP in 2019 (in RMB million) | GWP in 2020 (in RMB million) | Sub-Category | GWP in 2019 (in RMB million) | GWP in 2020 (in RMB million) | GWP in 2021 (in RMB million) | ||||||||||||||||||||
Life and Health Insurance Products | Long-term health insurance products | 561.7 | 1,423.4 | 2,142.9 | Long-term health insurance products | 1,423.4 | 2,142.9 | 2,617.1 | ||||||||||||||||||||
Short-term health insurance products | 30.1 | 51.2 | 68.1 | Short-term health insurance products | 51.2 | 68.1 | 38.6 | |||||||||||||||||||||
Life insurance products and annuity insurance products | 64.4 | 336.5 | 676.9 | Life insurance products and annuity insurance products | 336.5 | 676.9 | 2,186.4 | |||||||||||||||||||||
Property & casualty insurance products | 284.8 | 203.2 | 132.0 | 203.2 | 132.0 | 176.1 |
Branding, Marketing and Sales |
Data and Technology |
Intellectual Property |
Risk Management and Internal Control |
Competition |
Insurance |
Legal Proceedings |
Regulation |
Regulations on Foreign Investment |
Regulations on Insurance Intermediary Business |
97 | Regulations on Mobile Internet |
99 | Regulations on Information Security The National People’s Congress has enacted legislation that prohibits use of the internet that breaches the public security, disseminates socially destabilizing content or leaks state secrets. Breach of public security includes breach of national security and infringement on legal rights and interests of the state, society or citizens. Socially destabilizing content includes any content that incites defiance or violations of PRC laws or regulations or subversion of the PRC government or its political system, spreads socially disruptive rumors or involves cult activities, superstition, obscenities, pornography, gambling or violence. State secrets are defined broadly to include information concerning PRC national defense, state affairs and other matters as determined by the PRC authorities. Pursuant to applicable regulations, ICP operators must complete mandatory security filing procedures and regularly update information security and monitoring systems for their websites with local public security authorities, and must also report any public dissemination of prohibited content. In December 2015, the Standing Committee of the National People’s Congress promulgated the Anti-Terrorism Law of the PRC, or the Anti-Terrorism Law, which took effect on January 1, 2016 and was amended on April 27, 2018. According to the Anti-Terrorism Law, telecommunication service operators or internet service providers shall (i) carry out pertinent anti-terrorism publicity and education to society; (ii) provide technical interfaces, decryption and other technical support and assistance for the competent departments to prevent and investigate terrorist activities; (iii) implement network security and information monitoring systems as well as safety and technical prevention measures to avoid the dissemination of terrorism information, delete the terrorism information, immediately halt its dissemination, keep relevant records and report to the competent departments once the terrorism information is discovered; and (iv) examine customer identities before providing services. Any violation of the Anti-Terrorism Law may result in severe penalties, including substantial fines. In November 2016, the Standing Committee of the National People’s Congress promulgated the Cyber Security Law of the PRC, or the Cyber Security Law, which took effect on June 1, 2017. In accordance with the Cyber Security Law, network operators must comply with applicable laws and regulations and fulfill their obligations to safeguard network security in conducting business and providing services. Network service providers must take technical and other necessary measures as required by laws, regulations and mandatory requirements to safeguard the operation of networks, respond to network security effectively, prevent illegal and criminal activities, and maintain the integrity, confidentiality and usability of network data. For the further purposes of regulating data processing activities, safeguarding data security, promoting data development and utilization, protecting the lawful rights and interests of individuals and organizations, and maintaining national sovereignty, security, and development interests, on June 10, 2021, Standing Committee of the PRC National People’s Congress published the Data Security Law of the People’s Republic of China, which took effect on September 1, 2021. The Data Security Law requires data processing, which includes the collection, storage, use, processing, transmission, provision, publication of data, to be conducted in a legitimate and proper manner. The Data Security Law provides for data security and privacy obligations on entities and individuals carrying out data activities. The Data Security Law also introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, and the degree of harm it may cause to national security, public interests, or legitimate rights and interests of individuals or organizations if such data are tampered with, destroyed, leaked, illegally acquired or illegally used. The appropriate level of protection measures is required to be taken for each respective category of data. For example, a processor of important data is required to designate the personnel and the management body responsible for data security, carry out risk assessments of its data processing activities and file the risk assessment reports with the competent authorities. State core data, i.e. data having a bearing on national security, the lifelines of national economy, people’s key livelihood and major public interests, shall be subject to stricter management system. Moreover, the Data Security Law provides a national security review procedure for those data activities which affect or may affect national security and imposes export restrictions on certain data and information. In addition, the Data Security Law also provides that any organization or individual within the territory of the PRC shall not provide any foreign judicial body and law enforcement body with any data without the approval of the competent PRC governmental authorities. As the Data Security Law was recently promulgated and has not yet taken effect, we may be required to make further adjustments to our business practices to comply with this law, as well as any adjustments that may be required by the ultimate Personal Information Protection Law. 100 On July 6, 2021, certain PRC regulatory authorities issued Opinions on Strictly Cracking Down on Illegal Securities Activities, which, among others, provides for improving relevant laws and regulations on data security, cross-border data transmission, and confidential information management. It provided that efforts will be made to revise the regulations on strengthening the confidentiality and file management relating to the offering and listing of securities overseas, to implement the responsibility on information security of overseas listed companies, and to strengthen the standardized management of cross-border information provision mechanisms and procedures. On December 28, 2021, the Cyberspace Administration of China, or the CAC, and 12 other governmental authorities jointly issued the Measures for Cybersecurity Review, or the Measures, which became effective on February 15, 2022. The relevant operators shall apply with the Cybersecurity Review Office of CAC for a cybersecurity review under the following circumstances: (i) internet platform operators holding over one million individuals’ personal information pursuing a foreign listing, (ii) operators of ‘‘critical information infrastructure’’ that intend to purchase internet products and services that will or may affect national security, and (iii) internet platform operators carrying out data processing that affect or may affect national security. Besides, the Measures also provides that if the relevant authorities consider that certain network products and services, data processing activities and listings in foreign countries affect or may affect national security, the authorities may initiate a cybersecurity review even if the operators do not have an obligation to report for a cybersecurity review under such circumstances. The Measures also elaborated the factors to be considered when assessing the national security risks of the relevant activities, including among others, risks of core data, important data or a large amount of personal information being stolen, leaked, destroyed, and illegally used or exited the country and risks of critical information infrastructure, core data, important data or a large amount of personal information data being affected, controlled and maliciously used by foreign governments after a foreign listing. On November 14, 2021, the CAC released the Regulations on the Network Data Security (Draft for Comments), or the Draft Regulations, and were open for public comments until December 13, 2021. The Draft Regulations provide that data processors refer to individuals or organizations that autonomously determine the purpose and the manner of processing data. In accordance with the Draft Regulations, data processors shall apply for a cybersecurity review for the following activities: (i) merger, reorganization or division of Internet platform operators that have acquired a large number of data resources related to national security, economic development or public interests to the extent that affects or may affect national security; (ii) listing abroad of data processors which process over one million users’ personal information; (iii) listing in Hong Kong which affects or may affect national security; or (iv) other data processing activities that affect or may affect national security. Besides, data processors that are listed overseas shall carry out an annual data security assessment. On July 30, 2021, the State Council issued the Regulations on Protection of Critical Information Infrastructure, or the Regulations. Pursuant to the Regulations, critical information infrastructure shall mean the important network facilities or information systems of key industries or fields such as public communication and information service, energy, transportation, water conservation, finance, public services, e-government affairs and national defense science, and important network facilities or information systems which may endanger national security, people’s livelihood and public interest once there occur damage, malfunctioning or data leakage to them. The Regulations provide that no individual or organization may carry out any illegal activity of intruding into, interfering with, or sabotaging any critical information infrastructures, or endanger the security of any critical information infrastructures. The Regulations also require that critical information infrastructure operators shall establish a cybersecurity protection system and accountability system, and that the main responsible person of a critical information infrastructure operator shall take full responsibility for the security protection of the critical information infrastructures operated by it. In addition, relevant administration departments of each important industry and sector shall be responsible for formulating the rule of critical information infrastructure determination applicable to their respective industry or sector, and determine the critical information infrastructure operators in their industry or sector.On July 12, 2021, the MIIT and two other authorities jointly issued the Provisions on the Administration of Security Vulnerabilities of Network Products, or the Provisions. The Provisions state that, no organization or individual may abuse the security vulnerabilities of network products to engage in activities that endanger network security, or to illegally collect, sell, or publish the information on such security vulnerabilities. Anyone who is aware of the aforesaid offences shall not provide technical support, advertising, payment settlement and other assistance to the relevant offenders. According to the Provisions, network product providers, network operators, and platforms collecting network product security vulnerabilities shall establish and improve channels for receiving network product security vulnerability information and keep such channels available, and retain network product security vulnerability information reception logs for at least six months. The Provisions also bans provision of undisclosed vulnerabilities to overseas organizations or individuals other than to the product providers. 101 On October 29, 2021, the CAC issued the Measures for Security Assessment of Cross-border Data Transfer (Draft for Comment). According to these measures, in addition to the self-risk assessment requirement for provision of any data outside China, a data processor shall apply to the competent cyberspace department for data security assessment and clearance of outbound data transfer in any of the following events: (i) outbound transfer of personal information and important data collected and generated by an operator of critical information infrastructure; (ii) outbound transfer of important data; (iii) outbound transfer of personal data by a data processor which has processed more than one million users’ personal data; (iv) outbound transfer of more than one hundred thousand users’ personal information or more than ten thousand users’ sensitive personal information cumulatively; (v) such other circumstances where ex-ante security assessment and evaluation of cross-border data transfer is required by the CAC.On August 20, 2021, the Standing Committee of the National People’s Congress of China promulgated the Personal Information Protection Law, which integrates the scattered rules with respect to personal information rights and privacy protection and took effect on November 1, 2021. The Personal Information Protection Law requires, among others, that (i) the processing of personal information should have a clear and reasonable purpose which should be directly related to the processing purpose and should be conducted in a method that has the minimum impact on personal rights and interests, and (ii) the collection of personal information should be limited to the minimum scope as necessary to achieve the processing purpose and avoid the excessive collection of personal information. Personal information processors shall adopt necessary measures to safeguard the security of the personal information they handle. The offending entities could be ordered to correct, or to suspend or terminate the provision of services, and face confiscation of illegal income, fines or other penalties. In addition, the State Secrecy Bureau has issued provisions authorizing the blocking of access to any website it deems to be leaking state secrets or failing to comply with the relevant legislation regarding the protection of state secrets during online information distribution. Specifically, internet companies in the PRC with bulletin boards, chat rooms or similar services must apply for specific approval prior to operating such services. Furthermore, the Provisions on Technological Measures for Internet Security Protection, promulgated by the Ministry of Public Security and became effective in March 2006, require all ICP operators to keep records of certain information about its users (including user registration information, log-in andlog-out time, IP address, content and time of posts by users) for at least 60 days and submit the above information as required by laws and regulations. The Decision on Strengthening Network Information Protection, or the Network Information Protection Decision, which was promulgated by the PRC National People’s Congress in December 2012, states that ICP operators must request identity information from users when ICP operators provide information publication services to the users. If ICP operators come across prohibited information, they must immediately cease the transmission of such information, delete the information, keep relevant records, and report to relevant government authorities.On October 21, 2019, the Supreme People’s Court and the Supreme People’s Procuratorate of the PRC jointly issued the Interpretations on Certain Issues Regarding the Applicable of Law in the Handling of Criminal Case Involving Illegal Use of Information Networks and Assisting Committing Internet Crimes, which came into effect on November 1, 2019, and further clarifies the meaning of Internet service provider and the severe situations of the relevant crimes. 102 Regulations on Internet Privacy The PRC Constitution states that PRC law protects the freedom and privacy of communications of citizens and prohibits infringement of these rights. In recent years, PRC government authorities have enacted legislation on internet use to protect personal information from any unauthorized disclosure. The Network Information Protection Decision provides that electronic information that identifies a citizen or involves privacy of any citizen is protected by law and must not be unlawfully collected or provided to others. ICP operators collecting or using personal electronic information of citizens must specify the purposes, manners and scopes of information collection and uses, obtain consent of the relevant citizens, and keep the collected personal information confidential. ICP operators are prohibited from disclosing, tampering with, damaging, selling or illegally providing others with, collected personal information. ICP operators are required to take technical and other measures to prevent the collected personal information from any unauthorized disclosure, damage or loss. The Administrative Measures on Internet Information Services prohibit an ICP operator from insulting or slandering a third party or infringing upon the lawful rights and interests of a third party. According to the Provisions on Protection of Personal Information of Telecommunication and Internet Users, which was promulgated by MIIT and became effective in September 2013, telecommunication business operators and ICP operators are responsible for the security of the personal information of users they collect or use in the course of their provision of services. Without obtaining the consent from the users, telecommunication business operators and ICP operators may not collect or use the users’ personal information. The personal information collected or used in the course of provision of services by the telecommunication business operators or ICP operators must be kept in strict confidence, and may not be divulged, tampered with or damaged, and may not be sold or illegally provided to others. The ICP operators are required to take certain measures to prevent any divulgence of, damage to, tampering with or loss of users’ personal information. In accordance with the Cyber Security Law, network operators are required to collect and use personal information in compliance with the principles of legitimacy, properness and necessity, and strictly within the scope of authorization by the subject of personal information unless otherwise prescribed by laws or regulations. In the event of any unauthorized disclosure, damage or loss of collected personal information, network operators must take immediate remedial measures, notify the affected users and report the incidents to the relevant authorities in a timely manner. If any user knows that a network operator illegally collects and uses his or her personal information in violation of laws, regulations or any agreement with the user, or the collected and stored personal information is inaccurate or wrong, the user has the right to request the network operator to delete or correct the relevant collected personal information. The relevant telecommunications authorities are further authorized to order ICP operators to rectify unauthorized disclosure. ICP operators are subject to legal liability, including warnings, fines, confiscation of illegal gains, revocation of licenses or filings, closing of the relevant websites, administrative punishment, criminal liabilities, or civil liabilities, if they violate relevant provisions on internet privacy. Pursuant to the Ninth Amendment to the Criminal Law issued by the Standing Committee of the National People’s Congress in August 2015 and becoming effective in November 2015, the standards of crime of infringing citizens’ personal information were amended accordingly and the criminal culpability of unlawful collection, transaction, and provision of personal information has been reinforced. In addition, any ICP provider that fails to fulfill the obligations related to internet information security administration as required by applicable laws and refuses to rectify upon orders, will be subject to criminal liability for (i) any dissemination of illegal information in large scale; (ii) any severe effect due to the leakage of the client’s information; (iii) any serious loss of evidence of criminal activities; or (iv) other severe situations, and any individual or entity that (x) sells or provides personal information to others unlawfully, or (y) steals or illegally obtains any personal information, will be subject to criminal liability in severe situations. In addition, the Interpretations of the Supreme People’s Court and the Supreme People’s Procuratorate of the PRC on Several Issues Concerning the Application of Law in Handling Criminal Cases of Infringing Personal Information, effective in June 2017, have clarified certain standards for the conviction and sentencing in relation to personal information infringement. The PRC government has the power and authority to order ICP operators to turn over personal information if an internet user posts any prohibited content or engages in illegal activities on the internet. The Civil Code further provides in a stand-alone chapter of right of personality and reiterate that the personal information of a natural person shall be protected by the law. Any organization or individual shall legitimately obtain such personal information of others in due course on a need-to-know basis 103 With respect to the security of information collected and used by mobile apps, pursuant to the Announcement of Conducting Special Supervision against the Illegal Collection and Use of Personal Information by Apps, which was issued on January 23, 2019, app operators should collect and use personal information in compliance with the Cyber Security Law and should be responsible for the security of personal information obtained from users and take effective measures to strengthen the personal information protection. Furthermore, app operators should not force their users to make authorization by means of bundling, suspending installation or in other default forms and should not collect personal information in violation of laws, regulations or breach of user agreements. Such regulatory requirements were emphasized by the Notice on the Special Rectification of Apps Infringing upon User’s Personal Rights and Interests, which was issued by MIIT on October 31, 2019. On November 28, 2019, the CAC, the MIIT, the Ministry of Public Security and the SAMR jointly issued the Methods of Identifying Illegal Acts of Apps to Collect and Use Personal Information. This regulation further illustrates certain commonly-seen illegal practices of apps operators in terms of personal information protection, including “failure to publicize rules for collecting and using personal information,” “failure to expressly state the purpose, manner and scope of collecting and using personal information,” “collection and use of personal information without consent of users of such App,” “collecting personal information irrelevant to the services provided by such app in violation of the principle of necessity,” “provision of personal information to others without users’ consent,” “failure to provide the function of deleting or correcting personal information as required by laws” and “failure to publish information such as methods for complaints and reporting.” Among others, any of the following acts of an app operator will constitute “collection and use of personal information without consent of users”: (i) collecting an user’s personal information or activating the permission for collecting any user’s personal information without obtaining such user’s consent; (ii) collecting personal information or activating the permission for collecting the personal information of any user who explicitly refuses such collection, or repeatedly seeking for user’s consent such that the user’s normal use of such app is disturbed; (iii) any user’s personal information which has been actually collected by the app operator or the permission for collecting any user’s personal information activated by the app operator is beyond the scope of personal information which such user authorizes such app operator to collect; (iv) seeking for any user’s consent in a non-explicit manner; (v) modifying any user’s settings for activating the permission for collecting any personal information without such user’s consent; (vi) using users’ personal information and any algorithms to directionally push any information, without providing the optionof non-directed pushing such information; (vii) misleading users to permit collecting their personal information or activating the permission for collecting such users’ personal information by improper methods such as fraud and deception; (viii) failing to provide users with the means and methods to withdraw their permission of collecting personal information; and (ix) collecting and using personal information in violation of the rules for collecting and using personal information promulgated by such app operator.On August 22, 2019, the CAC promulgated the Children Information Protection Provisions, which took effect on October 1, 2019, requiring that before collecting, using, transferring or disclosing the personal information of a child, the Internet service operator should inform the child’s guardians in a noticeable and clear manner and obtain their consents. Meanwhile, internet service operators should take measures like encryption when storing children’s personal information. On March 12, 2021, the CAC and three other authorities jointly issued the Rules on the Scope of Necessary Personal Information for Common Types of Mobile Internet Applications. The Rules specifies the scope of necessary personal information to be collected each for a variety of common mobile internet applications, such as maps and navigation apps, online ride-hailing apps, instant messaging apps, online community apps. Operators of such apps shall not refuse to provide basic services to users on the ground of users’ refusal to provide their personal non-essential information. On April 26, 2021, the MIIT issued the Interim Administrative Provisions on Personal Information Protection in Internet Mobile Applications (Draft for Comment). The draft of the Interim Administrative Provisions on Personal Information Protection in Internet Mobile Applications sets forth two principles of collection and utilization of personal information, namely “explicit consent” and “minimum necessity.”Regulations on Foreign Exchange |
On December 27, 2021, the NDRC and the MOFCOM jointly issued the 2021 Negative List, which became effective on January 1, 2022. Pursuant to the 2021 Negative List, if a domestic company engaging in the prohibited business stipulated in the 2021 Negative List seeks an overseas offering and listing, it shall obtain the approval from the competent governmental authorities. Besides, the foreign investors of the company shall not be involved in the company’s operation and management, and their shareholding percentage shall be subject, mutatis mutandis, to the relevant regulations on the domestic securities investments by foreign investors. On December 24, 2021, the CSRC issued a draft of the Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic Companies, or the Draft Provisions, and a draft of Administration Measures for the Filing of Overseas Securities Offering and Listing by Domestic Companies, or the Draft Administration Measures, for public comments. According to the Draft Provisions and the Draft Administration Measures, the overseas offering and listing by a domestic company, whether directly or indirectly, shall be filed with the CSRC. Specifically, the determination of an indirect offering and listing will be conducted on a “substance over form” basis, and an offering and listing shall be considered as an indirect overseas offering and listing by a domestic company if the issuer meets the following conditions: (i) the operating income, gross profit, total assets, or net assets of the domestic enterprise in the most recent fiscal year was more than 50% of the relevant line item in the issuer’s audited consolidated financial statement for that year; and (ii) senior management personnel responsible for business operations and management are mostly PRC citizens or are ordinarily resident in the PRC, and the main place of business is in the PRC or carried out in the PRC. According to the Draft Administration Measures, an overseas offering and listing is prohibited under any of the following circumstances: (i) if the intended securities offering and listing is specifically prohibited by national laws and regulations and relevant provisions; (ii) if the intended securities offering and listing may constitute a threat to or endangers national security as reviewed and determined by competent authorities under the State Council in accordance with law; (iii) if there are material ownership disputes over the equity, major assets, and core technology, etc. of the issuer; (iv) if, in the past three years, the domestic enterprise or its controlling shareholders or actual controllers have committed corruption, bribery, embezzlement, misappropriation of property, or other criminal offenses disruptive to the order of the socialist market economy, or are currently under judicial investigation for suspicion of criminal offenses, or are under investigation for suspicion of major violations; (v) if, in past three years, directors, supervisors, or senior executives have been subject to administrative punishments for severe violations, or are currently under judicial investigation for suspicion of criminal offenses, or are under investigation for suspicion of major violations; (vi) other circumstances as prescribed by the State Council. According to the Draft Administration Measures, the issuer or its affiliated domestic company, as the case may be, shall file with the CSRC (i) with respect to its initial public offering and listing within three business days, after its initial filing of the listing application to the regulator in the place of the intended listing, (ii) with respect to its follow-on offering within three business days after completion of thefollow-on offering, (iii) with respect to itsfollow-on offering for purpose of acquiring specific assets, within three business days after the first public announcement of the transaction, and (iv) with respect to listing by means of reverse takeover, share swap, acquisition and similar transactions, within three business days after its initial filing of the listing application or the first public announcement of the transaction, as case may be.Non-compliance with the Draft Administration Measures or an overseas listing completed in breach of Draft Administration Measures may result in a warning on the relevant domestic companies or a fine of RMB1 million to RMB10 million on them. If the circumstances are serious, they may be ordered to suspend their business or suspend their business pending rectification, or their permits or businesses license may be revoked. Furthermore, the controlling shareholder, actual controllers, directors, supervisors, and other legally appointed persons of the domestic enterprises may be warned, or fined between RMB500,000 to RMB5,000,000 either individually or collectively.On April 2, 2022, the CSRC released the revised Provision on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments), or the Draft Archives Rules. The Draft Archives Rules were open for public consultations until April 17, 2022. The Draft Archives Rules regulate both overseas direct offerings and overseas indirect offerings. The Draft Archives Rules provide that, among other things, (i) in relation to the overseas listing activities of domestic enterprises, the domestic enterprises are required to strictly comply with the relevant requirements on confidentiality and archives management, establish a sound confidentiality and archives system, and take necessary measures to implement their confidentiality and archives management responsibilities; (ii) during the course of an overseas offering and listing, if a domestic enterprise needs to publicly disclose or provide to securities companies, accounting firms or other securities service providers and overseas regulators, any materials that contain relevant state secrets, government work secrets or that have a sensitive impact (i.e. be detrimental to national security or the public interest if divulged), the domestic enterprise should complete the relevant approval/filing and other regulatory procedures; and (iii) working papers produced in the PRC by securities companies and securities service providers, which provide domestic enterprises with securities services during their overseas issuance and listing, should be stored in the PRC, and the transmission of all such working papers to recipients outside of the PRC is required to be approved by competent authorities of the PRC. | Regulations on Intellectual Property |
Regulations on Tax |
Regulations on Employment and Social Welfare |
C. | Organizational Structure |
(1) | Shareholders of Shenzhen Huiye Tianze Investment Holding Co., Ltd., or Huiye Tianze, are: (1) Shenzhen Huidecheng Investment Development Limited Partnership and Shenzhen Huideli Consulting Management Limited Partnership, both as our PRC ESOP holding entities, holding an aggregate of 27.56% shares in Huiye Tianze; (2) PRC holding entities of the shareholders of our |
D. | Property, Plants and Equipment |
ITEM 4.A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. | Operating Results |
Key Factors Affecting Our Results of Operations |
Key Operating Metrics |
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
Cumulative number of insurance clients (million) | 5.3 | 6.3 | 6.8 | 6.3 | 6.8 | 7.5 | ||||||||||||||||||
Cumulative number of insured (million) | 41.8 | 53.2 | 57.6 | 53.2 | 57.6 | 62.5 | ||||||||||||||||||
GWP facilitated (million RMB) | 941.0 | 2,014.3 | 3,019.9 | 2,014.3 | 3,019.9 | 5,018.2 | ||||||||||||||||||
First year premiums (million RMB) | 749.8 | 1,465.4 | 1,567.9 | 1,465.4 | 1,567.9 | 3,123.8 | ||||||||||||||||||
Renewal premiums (million RMB) | 191.2 | 548.9 | 1,452.0 | 548.9 | 1,452.0 | 1,894.4 |
Key Components of Our Results of Operations |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage income | 503,547 | 99.0 | 982,124 | 98.9 | 1,215,434 | 186,273 | 99.6 | 982,124 | 98.9 | 1,215,434 | 99.6 | 2,232,253 | 350,289 | 99.4 | ||||||||||||||||||||||||||||||||||||||||||
Life and health insurance business | 371,011 | 72.9 | 902,596 | 90.9 | 1,166,118 | 178,715 | 95.6 | 902,596 | 90.9 | 1,166,118 | 95.6 | 2,170,767 | 340,641 | 96.7 | ||||||||||||||||||||||||||||||||||||||||||
Property & casualty insurance business | 132,536 | 26.1 | 79,528 | 8.0 | 49,316 | 7,558 | 4.0 | 79,528 | 8.0 | 49,316 | 4.0 | 61,486 | 9,648 | 2.7 | ||||||||||||||||||||||||||||||||||||||||||
Other income | 5,281 | 1.0 | 11,195 | 1.1 | 4,788 | 734 | 0.4 | 11,195 | 1.1 | 4,788 | 0.4 | 12,763 | 2,003 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
Total operating revenue | 508,828 | 100.0 | 993,319 | 100.0 | 1,220,222 | 187,007 | 100.0 | 993,319 | 100.0 | 1,220,222 | 100.0 | 2,245,016 | 352,292 | 100.0 | ||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | (316,397 | ) | (65.4 | ) | (629,531 | ) | (63.5 | ) | (813,507 | ) | (124,675 | ) | (65.3 | ) | (629,531 | ) | (63.5 | ) | (813,507 | ) | (65.3 | ) | (1,688,087 | ) | (264,898 | ) | (71.5 | ) | ||||||||||||||||||||||||||||
Other cost | (1,905 | ) | (0.4 | ) | (1,837 | ) | (0.2 | ) | (2,846 | ) | (437 | ) | (0.2 | ) | (1,837 | ) | (0.2 | ) | (2,846 | ) | (0.2 | ) | (2,670 | ) | (419 | ) | (0.1 | ) | ||||||||||||||||||||||||||||
Total operating costs | (318,302 | ) | (65.8 | ) | (631,368 | ) | (63.7 | ) | (816,353 | ) | (125,112 | ) | (65.5 | ) | (631,368 | ) | (63.7 | ) | (816,353 | ) | (65.5 | ) | (1,690,757 | ) | (265,317 | ) | (71.6 | ) | ||||||||||||||||||||||||||||
Selling expenses | (94,613 | ) | (19.5 | ) | (164,665 | ) | (16.6 | ) | (230,438 | ) | (35,316 | ) | (18.5 | ) | (164,665 | ) | (16.6 | ) | (230,438 | ) | (18.5 | ) | (350,573 | ) | (55,012 | ) | (14.9 | ) | ||||||||||||||||||||||||||||
General and administrative expenses | (46,177 | ) | (9.5 | ) | (161,816 | ) | (16.3 | ) | (150,207 | ) | (23,020 | ) | (12.1 | ) | (161,816 | ) | (16.3 | ) | (150,207 | ) | (12.1 | ) | (197,619 | ) | (31,011 | ) | (8.4 | ) | ||||||||||||||||||||||||||||
Research and development expenses | (24,944 | ) | (5.2 | ) | (33,831 | ) | (3.4 | ) | (49,135 | ) | (7,530 | ) | (3.9 | ) | (33,831 | ) | (3.4 | ) | (49,135 | ) | (3.9 | ) | (120,478 | ) | (18,906 | ) | (5.1 | ) | ||||||||||||||||||||||||||||
Total operating costs and expenses | (484,036 | ) | (100.0 | ) | (991,680 | ) | (100.0 | ) | (1,246,133 | ) | (190,978 | ) | (100.0 | ) | (991,680 | ) | (100.0 | ) | (1,246,133 | ) | (100.0 | ) | (2,359,427 | ) | (370,246 | ) | (100.0 | ) | ||||||||||||||||||||||||||||
116 | Results of Operations |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages, share and per share data) | (in thousands, except for percentages, share and per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokerage income | 503,547 | 99.0 | 982,124 | 98.9 | 1,215,434 | 186,273 | 99.6 | 982,124 | 98.9 | 1,215,434 | 99.6 | 2,232,253 | 350,289 | 99.4 | ||||||||||||||||||||||||||||||||||||||||||
Other income | 5,281 | 1.0 | 11,195 | 1.1 | 4,788 | 734 | 0.4 | 11,195 | 1.1 | 4,788 | 0.4 | 12,763 | 2,003 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
Total operating revenue | 508,828 | 100.0 | 993,319 | 100.0 | 1,220,222 | 187,007 | 100.0 | 993,319 | 100.0 | 1,220,222 | 100.0 | 2,245,016 | 352,292 | 100.0 | ||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue (1) | (316,397 | ) | (62.2 | ) | (629,531 | ) | (63.3 | ) | (813,507 | ) | (124,675 | ) | (66.7 | ) | (629,531 | ) | (63.3 | ) | (813,507 | ) | (66.7 | ) | (1,688,087 | ) | (264,898 | ) | (75.2 | ) | ||||||||||||||||||||||||||||
Other cost | (1,905 | ) | (0.4 | ) | (1,837 | ) | (0.2 | ) | (2,846 | ) | (437 | ) | (0.2 | ) | (1,837 | ) | (0.2 | ) | (2,846 | ) | (0.2 | ) | (2,670 | ) | (419 | ) | (0.1 | ) | ||||||||||||||||||||||||||||
Total operating costs | (318,302 | ) | (62.6 | ) | (631,368 | ) | (63.5 | ) | (816,353 | ) | (125,112 | ) | (66.9 | ) | (631,368 | ) | (63.5 | ) | (816,353 | ) | (66.9 | ) | (1,690,757 | ) | (265,317 | ) | (75.3 | ) | ||||||||||||||||||||||||||||
Selling expenses (1) | (94,613 | ) | (18.6 | ) | (164,665 | ) | (16.6 | ) | (230,438 | ) | (35,316 | ) | (18.9 | ) | (164,665 | ) | (16.6 | ) | (230,438 | ) | (18.9 | ) | (350,573 | ) | (55,012 | ) | (15.6 | ) | ||||||||||||||||||||||||||||
General and administrative expenses (1) | (46,177 | ) | (9.0 | ) | (161,816 | ) | (16.3 | ) | (150,207 | ) | (23,020 | ) | (12.3 | ) | (161,816 | ) | (16.3 | ) | (150,207 | ) | (12.3 | ) | (197,619 | ) | (31,011 | ) | (8.8 | ) | ||||||||||||||||||||||||||||
Research and development expenses (1) | (24,944 | ) | (4.9 | ) | (33,831 | ) | (3.4 | ) | (49,135 | ) | (7,530 | ) | (4.0 | ) | (33,831 | ) | (3.4 | ) | (49,135 | ) | (4.0 | ) | (120,478 | ) | (18,906 | ) | (5.4 | ) | ||||||||||||||||||||||||||||
Total operating costs and expenses | (484,036 | ) | (95.1 | ) | (991,680 | ) | (99.8 | ) | (1,246,133 | ) | (190,978 | ) | (102.1 | ) | (991,680 | ) | (99.8 | ) | (1,246,133 | ) | (102.1 | ) | (2,359,427 | ) | (370,246 | ) | (105.1 | ) | ||||||||||||||||||||||||||||
Operating (loss)/profit | 24,792 | 4.9 | 1,639 | 0.2 | (25,911 | ) | (3,971 | ) | (2.1 | ) | 1,639 | 0.2 | (25,911 | ) | (2.1 | ) | (114,411 | ) | (17,954 | ) | (5.1 | ) | ||||||||||||||||||||||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income/(expenses) | (27,111 | ) | (5.3 | ) | (190 | ) | (0.0 | ) | (1,157 | ) | (177 | ) | (0.1 | ) | (190 | ) | (0.0 | ) | (1,157 | ) | (0.1 | ) | (3,206 | ) | (503 | ) | (0.1 | ) | ||||||||||||||||||||||||||||
Unrealized exchange income/(loss) | (354 | ) | (0.1 | ) | 362 | 0.0 | (9 | ) | (1 | ) | (0.0 | ) | 362 | 0.0 | (9 | ) | (0.0 | ) | (59 | ) | (9 | ) | (0.0 | ) | ||||||||||||||||||||||||||||||||
Investment income | 718 | 0.1 | 137 | 21 | 0.0 | 718 | 0.1 | 137 | 0.0 | (5,328 | ) | (836 | ) | (0.2 | ) | |||||||||||||||||||||||||||||||||||||||||
Others, net | 4,569 | 0.9 | 12,676 | 1.2 | 10,177 | 1,559 | 0.8 | 12,676 | 1.2 | 10,177 | 0.8 | 12,627 | 1,981 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
(Loss)/profit before income tax, and share of income of equity method investee | 1,896 | 0.4 | 15,205 | 1.5 | (16,763 | ) | (2,569 | ) | (1.4 | ) | 15,205 | 1.5 | (16,763 | ) | (1.4 | ) | (110,377 | ) | (17,321 | ) | (4.9 | ) | ||||||||||||||||||||||||||||||||||
Income tax expense | (278 | ) | (0.1 | ) | (57 | ) | (0.0 | ) | (1,768 | ) | (271 | ) | (0.1 | ) | (57 | ) | (0.0 | ) | (1,768 | ) | (0.1 | ) | — | — | — | |||||||||||||||||||||||||||||||
Share of income/(loss) of equity method investee | 1,310 | 0.3 | (180 | ) | (0.0 | ) | 239 | 37 | 0.0 | (180 | ) | (0.0 | ) | 239 | 0.0 | 2,660 | 417 | 0.1 | ||||||||||||||||||||||||||||||||||||||
Net (loss)/profit | 2,928 | 0.6 | 14,968 | 1.5 | (18,292 | ) | (2,803 | ) | (1.5 | ) | 14,968 | 1.5 | (18,292 | ) | (1.5 | ) | (107,717 | ) | (16,904 | ) | (4.8 | ) | ||||||||||||||||||||||||||||||||||
(1) | Share-based compensation expenses were allocated in operating costs and expenses as follows: |
Year Ended December 31, | ||||||||||||||||||||||||||||||||
Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Cost of revenue | 9 | 43 | 410 | 63 | 43 | 410 | (387 | ) | (61 | ) | ||||||||||||||||||||||
Selling expenses | 110 | 6,514 | 10,642 | 1,631 | 6,514 | 10,642 | (475 | ) | (75 | ) | ||||||||||||||||||||||
General and administrative expenses | 726 | 87,980 | 40,820 | 6,256 | 87,980 | 40,820 | (665 | ) | (104 | ) | ||||||||||||||||||||||
Research and development expenses | 122 | 421 | 381 | 58 | 421 | 381 | (297 | ) | (47 | ) | ||||||||||||||||||||||
Total | 967 | 94,958 | 52,253 | 8,008 | 94,958 | 52,253 | (1,824 | ) | (287 | ) | ||||||||||||||||||||||
B. |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Net cash (used in)/provided by operating activities | 66,853 | 118,024 | 137,666 | 21,098 | 118,024 | 137,666 | (175,917 | ) | (27,605 | ) | ||||||||||||||||||||||
Net cash provided by/(used in) investing activities | (3,554 | ) | (6,927 | ) | (31,078 | ) | (4,763 | ) | (6,927 | ) | (31,078 | ) | (80,926 | ) | (12,700 | ) | ||||||||||||||||
Net cash provided by/(used in) financing activities | 48,572 | (14,079 | ) | 383,053 | 58,706 | (14,079 | ) | 383,053 | 141,891 | 22,266 | ||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 120 | 38 | (10,020 | ) | (1,536 | ) | 38 | (10,020 | ) | (5,012 | ) | (786 | ) | |||||||||||||||||||
Net (decrease)/increase in cash and cash equivalents and restricted cash | 111,991 | 97,056 | 479,621 | 73,505 | 97,056 | 479,621 | (119,964 | ) | (18,825 | ) | ||||||||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 40,280 | 152,271 | 249,327 | 38,211 | 152,271 | 249,327 | 728,948 | 114,388 | ||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 152,271 | 249,327 | 728,948 | 111,716 | 249,327 | 728,948 | 608,984 | 95,563 | ||||||||||||||||||||||||
Payment Due by Period As of December 31, 2021 RMB | ||||
Operating Lease Obligations | ||||
Within one year (including one year) | 28,261 | |||
One to three years (including three years) | 60,835 | |||
Thereafter | 245,770 | |||
Total | 334,866 |
C. | Research and Development, Patents and Licenses, etc. |
D. | Trend Information |
E. |
As of December 31, 2020 RMB | ||||
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. | Directors and |
Directors and Executive Officers | Age | Position/Title | ||
Cunjun Ma | Chairman of the Board of Directors and Chief Executive Officer | |||
Xuchun Luo | Director and Secretary of the Board of Directors | |||
Bin Wei | Independent Director | |||
Jun Ge | Independent Director | |||
Aaron Xiaolei Hou | Independent Director | |||
Li Jiang | Chief Operating Officer | |||
Ronald Tam | Co-Chief Financial | |||
Minghan Xiao | Co-Chief Financial Officer | |||
Kai Ouyang | Chief Technology Officer | |||
Haosheng Song | Chief Content Officer | |||
Yongsheng Wang | Chief Human Resources Officer |
B. | Compensation |
Name | Common Shares Underlying Options and Restricted Shares | Exercise Price (US$/Share) | Date of Grant | Date of Expiration | ||||||
Cunjun Ma | Options: 7,556,701 Restricted Shares: 14,229,183 Options: 3,911,945 | | 0.1567 0.1490 | | June 30, September 8, 2021 | June 30, 2029 September 8, 2031 | ||||
Xuchun Luo | Options: 802,803 Restricted Shares: 3,114,150 Options: 1,600,000 | | 0.1567 0.1490 | | June 30, September 8, 2021 | June 30, 2029 September 8, 2031 | ||||
Li Jiang | Options: * | 0.1567 | June 30, | June 30, | ||||||
Restricted Shares: * | June 30, | |||||||||
Ronald Tam | Options: * Restricted Shares: * | 0.3500 | March 9, 2021 March 9, 2021 | June 30, 2029 June 30, 2029 | ||||||
Minghan Xiao | Options:* | 0.1567 | June 30, | June 30, | ||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | |||||||
Kai Ouyang | Options:* | 0.1567 | June 30, | June 30, | ||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | |||||||
Haosheng Song | Options:* | 0.1567 | June 30, | June 30, | ||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | |||||||
Yongsheng Wang | Options:* | 0.1567 | June 30, | June 30, | ||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | |||||||
Other employees | Options: | 0.1567 | June 30, | June 30, | ||||||
Restricted Shares: Options: 9,722,500 | 0.1490 | September 8, 2021 | September 8, 2031 |
* | Less than 1% of our total outstanding shares. |
C. | Board Practices |
Board Diversity Matrix (As of February 28, 2022) | ||||||||
Country of Principal Executive Offices | PRC | |||||||
Foreign Private Issuer | Yes | |||||||
Disclosure Prohibited Under Home Country Law | No | |||||||
Total Number of Directors | 5 |
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||||
Part I: Gender Identity | ||||||||||||||||
Directors | 1 | 4 | 0 | 0 | ||||||||||||
Part II: Demographic Background | ||||||||||||||||
Underrepresented Individual in Home Country Jurisdiction | 0 | |||||||||||||||
LGBTQ+ | 0 | |||||||||||||||
Did Not Disclose Demographic Background | 0 |
D. | Employees |
As of December 31, 2020 | As of December 31, 2021 | |||||||||||||||
Functions: | Number | % of Total | Number | % of Total | ||||||||||||
Insurance consulting | 348 | 26.5 | 379 | 23.1 | ||||||||||||
Sales, marketing and training | 396 | 30.1 | 599 | 36.4 | ||||||||||||
Client service | 131 | 10.0 | 89 | 5.4 | ||||||||||||
Product management | 38 | 2.9 | 50 | 3.0 | ||||||||||||
Research and technology | 240 | 18.3 | 376 | 22.9 | ||||||||||||
General and administrative | 161 | 12.2 | 151 | 9.2 | ||||||||||||
Total | 1,314 | 100.0 | 1,644 | 100.0 | ||||||||||||
E. | Share Ownership |
Common shares Beneficially Owned | Common shares Beneficially Owned | |||||||||||||||||||||||||||||||
Class A Common Shares | Class B Common Shares | % of Total Common Shares | % of Aggregate Voting Power † | Class A Common Shares | Class B Common Shares | % of Total Common Shares | % of Aggregate Voting Power † | |||||||||||||||||||||||||
Directors and Executive Officers**: | ||||||||||||||||||||||||||||||||
Cunjun Ma (1) | *148,749,500 | 150,591,207 | 28.7 | 76.4 | 152,660,038 | 150,591,207 | 29.1 | 76.5 | ||||||||||||||||||||||||
Xuchun Luo | 12,577,272 | — | 1.2 | — | 13,911,567 | — | 1.3 | * | ||||||||||||||||||||||||
Bin Wei | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Jun Ge | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Aaron Xiaolei Hou | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Li Jiang | * | — | * | — | * | — | * | * | ||||||||||||||||||||||||
Ronald Tam | * | — | * | — | * | — | * | * | ||||||||||||||||||||||||
Minghan Xiao | * | — | * | — | * | — | * | * | ||||||||||||||||||||||||
Kai Ouyang | * | — | * | — | * | — | * | * | ||||||||||||||||||||||||
Haosheng Song | * | — | * | — | * | — | * | * | ||||||||||||||||||||||||
Yongsheng Wang | * | — | * | — | * | — | * | * | ||||||||||||||||||||||||
All Directors and Executive Officers as a Group | 32,680,681 | 150,591,207 | 31.6 | 76.4 | 168,876,435 | 150,591,207 | 30.4 | 76.5 | ||||||||||||||||||||||||
Principal Shareholders: | ||||||||||||||||||||||||||||||||
Huidz Holding Limited (1) | — | 150,591,207 | 14.5 | 71.8 | — | 150,591,207 | 14.5 | 71.8 | ||||||||||||||||||||||||
SAIF IV Healthcare (BVI) Limited (2) | 190,232,260 | — | 18.3 | 6.0 | ||||||||||||||||||||||||||||
Crov Global Holding Limited (3) | 155,929,140 | — | 15.0 | 5.0 | ||||||||||||||||||||||||||||
Wande Weirong Limited (4) | 98,321,680 | — | 9.5 | 3.1 | ||||||||||||||||||||||||||||
CDF Capital Insurtech Limited (5) | 80,991,300 | — | 7.8 | 2.6 | ||||||||||||||||||||||||||||
Bodyguard Holding Limited (6) | 55,110,084 | — | 5.3 | 1.8 | ||||||||||||||||||||||||||||
Crov Global Holding Limited (2) | 155,929,140 | — | 15.0 | 5.0 | ||||||||||||||||||||||||||||
Wande Weirong Limited (3) | 98,321,680 | — | 9.5 | 3.1 | ||||||||||||||||||||||||||||
CDF Capital Insurtech Limited (4) | 80,991,300 | — | 7.8 | 2.6 | ||||||||||||||||||||||||||||
Bodyguard Holding Limited (5) | 55,110,084 | — | 5.3 | 1.8 |
* | Less than 1% of our total common shares on an as-converted basis outstanding as of February 28, |
** | Except as indicated otherwise below, the business address of our directors and executive officers is |
† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B common shares as a single class. In respect of all matters subject to a shareholders’ vote, each Class A common share is entitled to one vote, and each Class B common share is entitled to 15 votes, voting together as a single class. Each Class B common share is convertible into one Class A common share at any time at the option of the holder thereof. Class A common shares are not convertible into Class B common shares under any circumstances. |
(1) | Represents (i) |
138
To our knowledge, as of February 28, Our common shares are divided into Class A common shares and Class B common shares. Holders of Class A common shares are entitled to one vote per share, while holders of Class B common shares are entitled to fifteen votes per share. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company.
See “Item 6. Directors, Senior Management and Employees—E. Share Ownership.”
Contractual Arrangements with See “Item 4. Information on the Company—C. Organizational Structure.” 139 Underlying Options and Restricted Shares | Exercise Price (US$/Share) | Date of Grant | Date of Expiration | ||||||||||||||||||||
Cunjun Ma | Options: 7,556,701 Restricted Shares: 14,229,183 Options: 3,911,945 | | 0.1567 0.1490 | | June June 30, 2019 September 8, 2021 | June 30, 2029 September 8, 2031 | |||||||||||||||||
Xuchun Luo | Options: 802,803 Restricted Shares: 3,114,150 Options: 1,600,000 | | 0.1567 0.1490 | | June 30, 2019 June 30, 2019 September 8, 2021 | June 30, 2029 September 8, 2031 | |||||||||||||||||
Li Jiang | Options: * | 0.1567 | June 30, 2019 | June 30, 2029 | |||||||||||||||||||
Restricted Shares: * | June 30, 2019 | ||||||||||||||||||||||
Ronald Tam | Options: * Restricted Shares: * | 0.3500 | March 9, 2021 March 9, 2021 | June 30, 2029 June 30, 2029 | |||||||||||||||||||
Minghan Xiao | Options:* | 0.1567 | June 30, 2019 | June 30, 2029 | |||||||||||||||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | ||||||||||||||||||||
Kai Ouyang | Options:* | 0.1567 | June 30, 2019 | June 30, 2029 | |||||||||||||||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | ||||||||||||||||||||
Haosheng Song | Options:* | 0.1567 | June 30, 2019 | June 30, 2029 | |||||||||||||||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | ||||||||||||||||||||
Yongsheng Wang | Options:* | 0.1567 | June 30, 2019 | June 30, 2029 | |||||||||||||||||||
Restricted Shares: * Options: * | 0.1490 | June 30, 2019 September 8, 2021 | September 8, 2031 | ||||||||||||||||||||
Other employees | Options: 3,331,310 | 0.1567 | June 30, 2019-August 19, 2019 | June 30, 2029-August 19, 2029 | |||||||||||||||||||
Restricted Shares: 4,571,014 Options: 9,722,500 | 0.1490 | September 8, 2021 | September 8, 2031 |
* | Less than |
C. | Board Practices |
Board Diversity Matrix (As of February 28, 2022) | ||||||||
Country of Principal Executive Offices | PRC | |||||||
Foreign Private Issuer | Yes | |||||||
Disclosure Prohibited Under Home Country Law | No | |||||||
Total Number of Directors | 5 |
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||||
Part I: Gender Identity | ||||||||||||||||
Directors | 1 | 4 | 0 | 0 | ||||||||||||
Part II: Demographic Background | ||||||||||||||||
Underrepresented Individual in Home Country Jurisdiction | 0 | |||||||||||||||
LGBTQ+ | 0 | |||||||||||||||
Did Not Disclose Demographic Background | 0 |
D. | Employees |
As of December 31, 2021 | ||||||||
Functions: | Number | % of Total | ||||||
Insurance consulting | 379 | 23.1 | ||||||
Sales, marketing and training | 599 | 36.4 | ||||||
Client service | 89 | 5.4 | ||||||
Product management | 50 | 3.0 | ||||||
Research and technology | 376 | 22.9 | ||||||
General and administrative | 151 | 9.2 | ||||||
Total | 1,644 | 100.0 | ||||||
E. | Share Ownership |
Common shares Beneficially Owned | ||||||||||||||||
Class A Common Shares | Class B Common Shares | % of Total Common Shares | % of Aggregate Voting Power † | |||||||||||||
Directors and Executive Officers**: | ||||||||||||||||
Cunjun Ma (1) | 152,660,038 | 150,591,207 | 29.1 | 76.5 | ||||||||||||
Xuchun Luo | 13,911,567 | — | 1.3 | * | ||||||||||||
Bin Wei | — | — | — | — | ||||||||||||
Jun Ge | — | — | — | — | ||||||||||||
Aaron Xiaolei Hou | — | — | — | — | ||||||||||||
Li Jiang | * | — | * | * | ||||||||||||
Ronald Tam | * | — | * | * | ||||||||||||
Minghan Xiao | * | — | * | * | ||||||||||||
Kai Ouyang | * | — | * | * | ||||||||||||
Haosheng Song | * | — | * | * | ||||||||||||
Yongsheng Wang | * | — | * | * | ||||||||||||
All Directors and Executive Officers as a Group | 168,876,435 | 150,591,207 | 30.4 | 76.5 | ||||||||||||
Principal Shareholders: | ||||||||||||||||
Huidz Holding Limited (1) | — | 150,591,207 | 14.5 | 71.8 | ||||||||||||
Crov Global Holding Limited (2) | 155,929,140 | — | 15.0 | 5.0 | ||||||||||||
Wande Weirong Limited (3) | 98,321,680 | — | 9.5 | 3.1 | ||||||||||||
CDF Capital Insurtech Limited (4) | 80,991,300 | — | 7.8 | 2.6 | ||||||||||||
Bodyguard Holding Limited (5) | 55,110,084 | — | 5.3 | 1.8 |
* | Less than 1% of our total common shares on an as-converted basis outstanding as of February 28, 2022. |
** | Except as indicated otherwise below, the business address of our directors and executive officers is 49/F, Building T1, Qianhai Financial Centre, Linhai Avenue, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen 518000, People’s Republic of China. |
† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B common shares as a single class. In respect of all matters subject to a shareholders’ vote, each Class A common share is entitled to one vote, and each Class B common share is entitled to 15 votes, voting together as a single class. Each Class B common share is convertible into one Class A common share at any time at the option of the holder thereof. Class A common shares are not convertible into Class B common shares under any circumstances. |
(1) | Represents (i) 6,173,212 Class A common shares issuable to Mr. Ma upon exercise of options within 60 days after February 28, 2022; (ii) 7,105,740 Class A common shares held by Mr. Cunjun Ma in the form of ADSs; and (iii) 150,591,207 Class B common shares directly held by Huidz Holding Limited, a company incorporated in British Virgin Islands that is ultimately controlled by QYRT Family Trust, a trust established under the laws of the British Virgin Islands and managed by HSBC International Trustee Limited as the trustee. Mr. Cunjun Ma is the settlor of the trust and his family member(s) are the trust’s beneficiaries. Mr. Cunjun Ma also has sole voting power to 139,381,086 Class A common shares held by other shareholders of our company, including Wande Weirong Limited, CFO Capital Insurtech Limited, Bodyguard Holding Limited, Tian Jin kun Zhi Enterprise management Limited, Kunlun Technology Limited, Jumi Holding Limited and One Mind Holding Limited. |
(2) | Based on the statement on Schedule 13G filed on February 11, 2021, represents (i) 24,000,000 Class A common shares in the form of 1,200,000 ADSs, and (ii) 131,929,140 Class A common shares held by Crov Global Holding Limited, a company incorporated in the British Virgin Islands. Crov Global Holding Limited is wholly owned by Made-in-China.com |
(3) | Based on the statement on Schedule 13G filed on February 11, 2021 and information provided by Wande Weirong Limited, represents 98,321,680 Class A common shares in the form of 4,916,084 ADSs held by Wande Weirong Limited, a company incorporated in the British Virgin Islands. Wande Weirong Limited is wholly owned by Jiaxing Weirong Investment Management Partnership (Limited Partnership), whose general partner is Wanrong Times Asset Management (Xuzhou) Co., Ltd. Bejing Wanrong Times Capital Management Co., Ltd. is the controlling shareholder of Wanrong Times Asset Management (Xuzhou) Co., Ltd. Mr. Jun Xiong is the controlling shareholder of Bejing Wanrong Times Capital Management Co., Ltd. Mr. Jun Xiong disclaims beneficial ownership of the shares held by Wande Weirong Limited, except to the extent of his pecuniary interests therein. The registered address of Wande Weirong Limited is Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands VG1 110. Wande Weirong Limited has, pursuant to certain irrevocable proxy and power of attorney, delegated the voting power of 5,565,380 Class A common shares to Mr. Cunjun Ma, our chairman and chief executive officer. |
(4) | Based on the statement on Schedule 13G/A filed on February 11, 2021, represents 80,991,300 Class A common shares held by CDF Capital Insurtech Limited, a company incorporated in the British Virgin Islands. CDF Capital Insurtech Limited is wholly owned by Tianjin Chuangdongfang Enterprise Management Partnership (Limited Partnership), whose general partner is Mr. Ke Xiao. The registered address of CDF Capital Insurtech Limited is Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands VG1 110. CDF Capital Insurtech Limited has, pursuant to certain irrevocable proxy and power of attorney, delegated the voting power of 3,339,220 Class A common shares to Mr. Cunjun Ma, our chairman and chief executive officer. |
(5) | Based on the statement on Schedule 13G/A filed on February 11, 2022, represents 55,110,084 Class A common shares directly held by Bodyguard Holding Limited. |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
B. | Related Party Transactions |
* |
C. |
Board Diversity Matrix (As of February 28, 2022) | ||||||||
Country of Principal Executive Offices | PRC | |||||||
Foreign Private Issuer | Yes | |||||||
Disclosure Prohibited Under Home Country Law | No | |||||||
Total Number of Directors | 5 |
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||||
Part I: Gender Identity | ||||||||||||||||
Directors | 1 | 4 | 0 | 0 | ||||||||||||
Part II: Demographic Background | ||||||||||||||||
Underrepresented Individual in Home Country Jurisdiction | 0 | |||||||||||||||
LGBTQ+ | 0 | |||||||||||||||
Did Not Disclose Demographic Background | 0 |
D. | Employees |
As of December 31, 2021 | ||||||||
Functions: | Number | % of Total | ||||||
Insurance consulting | 379 | 23.1 | ||||||
Sales, marketing and training | 599 | 36.4 | ||||||
Client service | 89 | 5.4 | ||||||
Product management | 50 | 3.0 | ||||||
Research and technology | 376 | 22.9 | ||||||
General and administrative | 151 | 9.2 | ||||||
Total | 1,644 | 100.0 | ||||||
E. | Share Ownership |
Common shares Beneficially Owned | ||||||||||||||||
Class A Common Shares | Class B Common Shares | % of Total Common Shares | % of Aggregate Voting Power † | |||||||||||||
Directors and Executive Officers**: | ||||||||||||||||
Cunjun Ma (1) | 152,660,038 | 150,591,207 | 29.1 | 76.5 | ||||||||||||
Xuchun Luo | 13,911,567 | — | 1.3 | * | ||||||||||||
Bin Wei | — | — | — | — | ||||||||||||
Jun Ge | — | — | — | — | ||||||||||||
Aaron Xiaolei Hou | — | — | — | — | ||||||||||||
Li Jiang | * | — | * | * | ||||||||||||
Ronald Tam | * | — | * | * | ||||||||||||
Minghan Xiao | * | — | * | * | ||||||||||||
Kai Ouyang | * | — | * | * | ||||||||||||
Haosheng Song | * | — | * | * | ||||||||||||
Yongsheng Wang | * | — | * | * | ||||||||||||
All Directors and Executive Officers as a Group | 168,876,435 | 150,591,207 | 30.4 | 76.5 | ||||||||||||
Principal Shareholders: | ||||||||||||||||
Huidz Holding Limited (1) | — | 150,591,207 | 14.5 | 71.8 | ||||||||||||
Crov Global Holding Limited (2) | 155,929,140 | — | 15.0 | 5.0 | ||||||||||||
Wande Weirong Limited (3) | 98,321,680 | — | 9.5 | 3.1 | ||||||||||||
CDF Capital Insurtech Limited (4) | 80,991,300 | — | 7.8 | 2.6 | ||||||||||||
Bodyguard Holding Limited (5) | 55,110,084 | — | 5.3 | 1.8 |
* | Less than 1% of our total common shares on an as-converted basis outstanding as of February 28, 2022. |
** | Except as indicated otherwise below, the business address of our directors and executive officers is 49/F, Building T1, Qianhai Financial Centre, Linhai Avenue, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen 518000, People’s Republic of China. |
† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B common shares as a single class. In respect of all matters subject to a shareholders’ vote, each Class A common share is entitled to one vote, and each Class B common share is entitled to |
(1) | Represents (i) 6,173,212 Class A common shares issuable to Mr. Ma upon exercise of options within 60 days after February 28, 2022; (ii) 7,105,740 Class A common shares held by Mr. Cunjun Ma in the form of ADSs; and (iii) 150,591,207 Class B common shares directly held by Huidz Holding Limited, a |
(2) | Based on the statement on Schedule 13G filed on February 11, 2021, represents (i) 24,000,000 Class A common shares in the form of 1,200,000 ADSs, and (ii) 131,929,140 Class A common shares held by Crov Global Holding Limited, a company incorporated in the British Virgin Islands. Crov Global Holding Limited is wholly owned by Made-in-China.com |
(3) | Based on the statement on Schedule 13G filed on February 11, 2021 and information provided by Wande Weirong Limited, represents 98,321,680 Class A common shares in the form of 4,916,084 ADSs held by Wande Weirong Limited, a company incorporated in the British Virgin Islands. Wande Weirong Limited is wholly owned by Jiaxing Weirong Investment Management Partnership (Limited Partnership), whose general partner is Wanrong Times Asset Management (Xuzhou) Co., Ltd. Bejing Wanrong Times Capital Management Co., Ltd. is the controlling shareholder of Wanrong Times Asset Management (Xuzhou) Co., Ltd. Mr. Jun Xiong is the controlling shareholder of Bejing Wanrong Times Capital Management Co., Ltd. Mr. Jun Xiong disclaims beneficial ownership of the shares held by Wande Weirong Limited, except to the extent of his pecuniary interests therein. The registered address of Wande Weirong Limited is Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands VG1 110. Wande Weirong Limited has, pursuant to certain irrevocable proxy and power of attorney, delegated the voting power of 5,565,380 Class A common shares to Mr. Cunjun Ma, our chairman and chief executive officer. |
(4) | Based on the statement on Schedule 13G/A filed on February 11, 2021, represents 80,991,300 Class A common shares held by CDF Capital Insurtech Limited, a company incorporated in the British Virgin Islands. CDF Capital Insurtech Limited is wholly owned by Tianjin Chuangdongfang Enterprise Management Partnership (Limited Partnership), whose general partner is Mr. Ke Xiao. The registered address of CDF Capital Insurtech Limited is Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands VG1 110. CDF Capital Insurtech Limited has, pursuant to certain irrevocable proxy and power of attorney, delegated the voting power of 3,339,220 Class A common shares to Mr. Cunjun Ma, our chairman and chief executive officer. |
(5) | Based on the statement on Schedule 13G/A filed on February 11, 2022, represents 55,110,084 Class A common shares directly held by Bodyguard Holding Limited. |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
ITEM 8. | FINANCIAL INFORMATION |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
A. | Offering and Listing Details |
B. | Plan of Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
ITEM 10. | ADDITIONAL INFORMATION |
A. | Share Capital |
B. | Memorandum and Articles of Association |
(a) | in the case of a meeting called as an annual general meeting, by all the shareholders entitled to attend and vote thereat; and |
(b) | in the case of any other meeting, by a majority of the shareholders having the right to attend and vote at the meeting together holding not less than forty per cent. (40%) of all votes attaching to all the issued shares giving that right. |
C. | Material Contracts |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
D. | American Depositary Shares |
Service | Fees | |
• Issuance of ADSs (e.g., an issuance of ADS upon a deposit of Class A common shares, upon a change in the ADS(s)-to-Shares | Up to U.S. 50 per ADS issued | |
• Cancellation of ADSs (e.g., a cancellation of ADSs for delivery of deposited property, upon a change in the ADS(s)-to-Shares | Up to U.S. 50 per ADS canceled | |
• Distribution of cash dividends or other cash distributions (e.g., upon a sale of rights and other entitlements) | Up to U.S. 50 per ADS held | |
• Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) exercise of rights to purchase additional ADSs | Up to U.S. 50 per ADS held | |
• Distribution of securities other than ADSs or rights to purchase additional ADSs (e.g., upon a spin-off) | Up to U.S. 50 per ADS held | |
• ADS Services | Up to U.S. 50 per ADS held on the applicable record date(s) established by the depositary | |
• Registration of ADS transfers (e.g., upon a registration of the transfer of registered ownership of ADSs, upon a transfer of ADSs into DTC and vice versa, or for any other reason) | Up to U.S. 50 per ADS (or fraction thereof) converted | |
• Conversion of ADSs of one series for ADSs of another series (e.g., upon conversion of Partial Entitlement ADSs for Full Entitlement ADSs, or upon conversion of Restricted ADSs (each as defined in the Deposit Agreement) into freely transferable ADSs, and vice versa | Up to U.S. 50 per ADS (or fraction thereof) transferred |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS MATERIAL |
ITEM 15. | CONTROLS AND PROCEDURES |
ITEM 16.A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16.B. | CODE OF ETHICS |
ITEM 16.C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the Year Ended December 31, | ||||||||||||||||
For the Year Ended December 31, | 2020 | 2021 | ||||||||||||||
2019 | 2020 | |||||||||||||||
(in thousands of RMB) | (in thousands of RMB) | |||||||||||||||
Audit-related fees (1) | 5,540 | 5,730 | 5,730 | 5,150 | ||||||||||||
Tax fees (2) | 956 | 150 | 150 | 150 | ||||||||||||
All other fees (3) | 4,108 | — | — | 650 | ||||||||||||
Total | 10,604 | 5,880 | 5,880 | 5,950 |
(1) | “Audit fees” means the aggregate fees billed for professional services rendered by our principal external auditors for the audits of our annual financial statements and the quarterly reviews of our condensed consolidated financial |
(2) | “Tax fees” means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal external auditors for tax compliance, tax advice, and tax planning. |
(3) | “All other fees” means the aggregate fees billed for professional services rendered by our principal external auditors associated with other advisory services. |
ITEM 16.D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16.E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Month | Total Number of Ordinary Shares Purchased | Average Price Paid Per Ordinary Share (US$) | Total Number of Ordinary Shares Purchased as Part of Share Repurchase Program | Approximate Dollar Value of Ordinary Shares that May Yet Be Purchased Under Share Repurchase Program (US$, in millions) | ||||||||||||
January 2020 | — | — | — | — | ||||||||||||
February 2020 | — | — | — | — | ||||||||||||
March 2020 | — | — | — | — | ||||||||||||
April 2020 | — | — | — | — | ||||||||||||
May 2020 | — | — | — | — | ||||||||||||
June 2020 | 132,940 | 0.3382 | 132,940 | 9.9 | ||||||||||||
July 2020 | — | — | — | — | ||||||||||||
August 2020 | — | — | — | — | ||||||||||||
September 2020 | — | — | — | — | ||||||||||||
October 2020 | — | — | — | — | ||||||||||||
November 2020 | — | — | — | — | ||||||||||||
December 2020 | 763,240 | 0.3501 | 763,240 | 9.7 |
Month | Total Number of Ordinary Shares Purchased | Average Price Paid Per Ordinary Share (US$) | Total Number of Ordinary Shares Purchased as Part of Share Repurchase Program | Approximate Dollar Value of Ordinary Shares that May Yet Be Purchased Under Share Repurchase Program (US$, in millions) | ||||||||||||
January 2021 | — | — | — | — | ||||||||||||
February 2021 | — | — | — | — | ||||||||||||
March 2021 | 106,734 | 9.369 | 106,734 | — | ||||||||||||
April 2021 | — | — | — | — | ||||||||||||
May 2021 | — | — | — | — | ||||||||||||
June 2021 | — | — | — | — | ||||||||||||
July 2021 | — | — | — | — | ||||||||||||
August 2021 | — | — | — | — | ||||||||||||
September 2021 | — | — | — | — | ||||||||||||
October 2021 | — | — | — | — | ||||||||||||
November 2021 | — | — | — | — | ||||||||||||
December 2021 | — | — | — | — |
ITEM 16.F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16.G. | CORPORATE GOVERNANCE |
ITEM 16.H. | MINE SAFETY DISCLOSURE |
ITEM 16.I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM | FINANCIAL STATEMENTS |
ITEM | FINANCIAL STATEMENTS |
ITEM | EXHIBITS |
* | Filed herewith. |
** | Furnished herewith. |
Huize Holding limited | ||||
By: | /s/ Cunjun Ma | |||
Name: | Cunjun Ma | |||
Title: | Chairman of the Board of Directors | |||
and Chief Executive Officer |
Page | ||||
F-2 | ||||
F-3 | ||||
F-7 | ||||
F-9 | ||||
Note | As of December 31, 2019 | As of December 31, 2020 | ||||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||||
Assets | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | 2(g) | 88,141 | 404,618 | 62,010 | ||||||||||||
Restricted cash (including amounts of the consolidated VIE of RMB 161,186 thousand and RMB 217,950 thousand as of December 31, 2019 and 2020, respectively) | 2(h) | 161,186 | 324,330 | 49,706 | ||||||||||||
Contract assets | 2(x) | — | 216 | 33 | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts | 2(i), 3 | 180,393 | 232,589 | 35,646 | ||||||||||||
Insurance premium receivables (including amounts of the consolidated VIE of RMB 2,329 thousand and RMB 1,974 thousand as of December 31, 2019 and 2020, respectively) | 2(j) | 2,329 | 1,974 | 303 | ||||||||||||
Amounts due from related parties | 4 | 280 | 251 | 38 | ||||||||||||
Prepaid expense and other receivables | 5 | 29,196 | 44,377 | 6,801 | ||||||||||||
Total current assets | 461,525 | 1,008,355 | 154,537 | |||||||||||||
Non-current assets | ||||||||||||||||
Property, plant and equipment, net | 6 | 8,006 | 10,251 | 1,571 | ||||||||||||
Intangible assets, net | 7 | 1,652 | 2,030 | 311 | ||||||||||||
Deferred tax assets | 12 | 64 | 605 | 93 | ||||||||||||
Long-term investments | 8 | 23,395 | 46,084 | 7,063 | ||||||||||||
Operating lease right-of-use | 2(s), 22 | — | 267,352 | 40,973 | ||||||||||||
Goodwill | 2(o) | — | 461 | 71 | ||||||||||||
Other assets | 5 | 14,163 | 838 | 128 | ||||||||||||
Total non-current assets | 47,280 | 327,621 | 50,210 | |||||||||||||
Total assets | 508,805 | 1,335,976 | 204,747 | |||||||||||||
Note | As of December 31, 2020 | As of December 31, 2021 | ||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | 2(g) | 404,618 | 381,158 | 59,812 | ||||||||||
Restricted cash (including amounts of the consolidated VIE of RMB 217,950 thousand and RMB 127,315 thousand as of December 31, 2020 and 2021, respectively) | 2(h) | 324,330 | 183,408 | 28,781 | ||||||||||
Contract assets | 2( y ) | 216 | 0 | 0 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts | 2(i), 5 | 232,589 | 777,262 | 121,969 | ||||||||||
Insurance premium receivables (including amounts of the consolidated VIE of RMB 1,974 thousand and RMB 1,217 thousand as of December 31, 2020 and 2021, respectively) | 2(j) | 1,974 | 1,217 | 191 | ||||||||||
Amounts due from related parties | 6 | 251 | 128 | 20 | ||||||||||
Prepaid expense and other receivables | 7 | 44,377 | 77,511 | 12,163 | ||||||||||
Total current assets | 1,008,355 | 1,420,684 | 222,936 | |||||||||||
Non-current assets | ||||||||||||||
Restricted cash (including amounts of the consolidated VIE of RMB NaN and RMB 24,680 thousand as of December 31, 2020 and 2021, respectively) | 2(h) | 0 | 44,418 | 6,970 | ||||||||||
Property, plant and equipment, net | 8 | 10,251 | 48,461 | 7,605 | ||||||||||
Intangible assets, net | 9 | 2,030 | 21,626 | 3,394 | ||||||||||
Deferred tax assets | 1 4 | 605 | 605 | 95 | ||||||||||
Long-term investments | 2(q), | 46,084 | 73,001 | 11,456 | ||||||||||
Operating lease right-of-use | 2( t), 24 | 267,352 | 247,819 | 38,888 | ||||||||||
Goodwill | 2(o) | 461 | 461 | 72 | ||||||||||
Other assets | 7 | 838 | 379 | 59 | ||||||||||
Total non-current assets | 327,621 | 436,770 | 68,539 | |||||||||||
Total assets | 1,335,976 | 1,857,454 | 291,475 | |||||||||||
Note | As of December 31, 2019 | As of December 31, 2020 | ||||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||||
Liabilities, Mezzanine Equity and Shareholders’ (Deficit)/Equity | ||||||||||||||||
Current liabilities | ||||||||||||||||
Short-term borrowings (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 36,880 thousand and RMB 31,540 thousand as of December 31, 2019 and 2020, respectively) | 2(q),9 | 36,880 | 31,540 | 4,834 | ||||||||||||
Accounts payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 124,441 thousand and RMB 227,532 thousand as of December 31, 2019 and 2020, respectively) | 124,441 | 227,532 | 34,871 | |||||||||||||
Insurance premium payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 125,587 thousand and RMB 187,219 thousand as of December 31, 2019 and 2020, respectively) | 125,587 | 187,219 | 28,693 | |||||||||||||
Other payables and accrued expenses (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 37,678 thousand and RMB 39,421 thousand as of December 31, 2019 and 2020, respectively) | 10 | 30,211 | 31,153 | 4,774 | ||||||||||||
Payroll and welfare payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 43,831 thousand and RMB 52,564 thousand as of December 31, 2019 and 2020, respectively) | 43,993 | 63,919 | 9,796 | |||||||||||||
Income taxes payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 206 thousand and RMB 2,440 thousand as of December 31, 2019 and 2020, respectively) | 12 | 206 | 2,440 | 374 | ||||||||||||
Operating lease liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaN and RMB 12,763 thousand as of December 31, 2019 and 2020, respectively) | 2(s), 22 | — | 12,763 | 1,956 | ||||||||||||
Amounts due to related parties (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB nil both as of December 31, 2019 and 2020, respectively) | 4 | 465 | — | — | ||||||||||||
Total current liabilities | 361,783 | 556,566 | 85,298 | |||||||||||||
Note | As of December 31, 2020 | As of December 31, 2021 | ||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term borrowings (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 31,540 thousand and RMB 216,710 thousand as of December 31, 2020 and 2021, respectively) | 2( r), 11 | 31,540 | 216,710 | 34,007 | ||||||||||
Accounts payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 227,532 thousand and RMB 680,183 thousand as of December 31, 2020 and 2021, respectively) | 2( z ) | 227,532 | 680,369 | 106,765 | ||||||||||
Insurance premium payables (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 187,219 thousand and RMB 124,019 thousand as of December 31, 2020 and 2021, respectively) | 187,219 | 124,019 | 19,461 | |||||||||||
Contract liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaNand RMB 2,681 thousand as of December 31, 2020 and 2021, respectively) | 2( y ) | — | 7,236 | 1,135 | ||||||||||
Other payables and accrued expenses (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 39,419 thousand and RMB 207,461 thousand as of December 31, 2020 and 2021, respectively) | 1 2 | 31,153 | 71,255 | 11,181 | ||||||||||
Payroll and welfare payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 52,564 thousand and RMB 92,094 thousand as of December 31, 2020 and 2021, respectively) | 63,919 | 93,451 | 14,665 | |||||||||||
Income taxes payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 2,440 thousand and RMB 2,440 thousand as of December 31, 2020 and 2021, respectively) | 1 4 | 2,440 | 2,440 | 383 | ||||||||||
Operating lease liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 12,763 thousand and RMB 12,362 thousand as of December 31, 2020 and 2021, respectively) | 2( t), 24 | 12,763 | 14,886 | 2,336 | ||||||||||
Amounts due to related parties (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaN and RMB 11,875 thousand as of December 31, 2020 and 2021, respectively) | 6 | 0 | 11,875 | 1,863 | ||||||||||
Total current liabilities | 556,566 | 1,222,241 | 191,796 | |||||||||||
Note | As of December 31, 2019 | As of December 31, 2020 | ||||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||||
Non-current liabilities | ||||||||||||||||
Long-term borrowings (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaN and RMB 53,860 thousand as of December 31, 2019 and 2020, respectively) | 2(q), 13 | — | 53,860 | 8,254 | ||||||||||||
Deferred tax liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 530 thousand and RMB 605 thousand as of December 31, 2019 and 2020, respectively) | 12 | 530 | 605 | 93 | ||||||||||||
Operating lease liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaN and RMB 252,106 thousand as of December 31, 2019 and 2020, respectively) | 2(s), 22 | — | 252,106 | 38,637 | ||||||||||||
Payroll and welfare payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaN both as of December 31, 2019 and 2020, respectively) | — | 4,156 | 637 | |||||||||||||
Other non-current liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 518 thousand and RMB NaN as of December 31, 2019 and 2020, respectively) | 10 | 518 | — | — | ||||||||||||
Total non-current liabilities | 1,048 | 310,727 | 47,621 | |||||||||||||
Total liabilities | 362,831 | 867,293 | 132,919 | |||||||||||||
Note | As of December 31, 2020 | As of December 31, 2021 | ||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||
Non-current liabilities | ||||||||||||||
Long-term borrowings (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 53,860 thousand and RMB 20,000 thousand as of December 31, 2020 and 2021, respectively) | 2( r), 15 | 53,860 | 20,000 | 3,138 | ||||||||||
Deferred tax liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 605 thousand and RMB 4,455 thousand as of December 31, 2020 and 2021, respectively) | 1 4 | 605 | 4,892 | 768 | ||||||||||
Operating lease liabilities (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB 252,106 thousand and RMB 245,396 thousand as of December 31, 2020 and 2021, respectively) | 2( t), 24 | 252,106 | 249,183 | 39,102 | ||||||||||
Payroll and welfare payable (including amounts of the consolidated VIE and its subsidiaries without recourse to the Company of RMB NaN both as of December 31, 2020 and 2021, respectively) | 4,156 | 225 | 35 | |||||||||||
Total non-current liabilities | 310,727 | 274,300 | 43,043 | |||||||||||
Total liabilities | 867,293 | 1,496,541 | 234,839 | |||||||||||
Note | As of December 31, 2019 | As of December 31, 2020 | ||||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||||
Liabilities, Mezzanine Equity and Shareholders’ (Deficit)/Equity (Continued) | ||||||||||||||||
Commitments and contingencies | 23 | |||||||||||||||
Mezzanine equity | ||||||||||||||||
Series A redeemable preferred shares (US$0.00001 par value per share; 204,022,000 and NaN shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) | 15 | 84,072 | 0— | 0— | ||||||||||||
Series B redeemable preferred shares (US$0.00001 par value per share; 185,512,580 and NaN shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) | 15 | 261,272 | 0— | 0— | ||||||||||||
Series B+ redeemable preferred shares (US$ 0.00001 par value per share; 43,937,180 and NaN | 15 | 81,654 | 0— | 0— | ||||||||||||
Series B++ redeemable preferred shares (US$0.00001 par value per share; 16,574,460 and NaN shares authorized, issued and outstanding as of December 31, 2019 and 2020, respectively) | 15 | 27,629 | 0— | 0— | ||||||||||||
Total mezzanine equity | 454,627 | 0— | 0— | |||||||||||||
Shareholders’ (deficit)/equity | ||||||||||||||||
Common shares (US$0.00001 p ar value; 4,549,953,780 and NaNs hares authorized as of December 31, 2019 and 2020, respectively; 483,310,373 and NaN s hares issued and outstanding as of December 31, 2019 and 2020, respectively) | 14 | 33 | 0— | 0— | ||||||||||||
Class A common shares (US$0.00001 p ar value; NaN a s s hares issued and outstanding as of December 31, 2019; 894,456,046s hares issued and 888,506,366 shares outstanding as of December 31, 2020) | 14 | — | 62 | 10 | ||||||||||||
Class B common shares (US$0.00001 p ar value; NaNa nd 800,000,000 s hares authorized as of December 31, 2019 and 2020, respectively; NaN a nd 150,591,207 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 14 | — | 10 | 2 | ||||||||||||
Treasury stock (NaN a nd 896,180 s hares as of December 31, 2019 and 2020, respectively) | 14 | — | (2,063 | ) | (316 | ) | ||||||||||
Additional paid-in capital | 64,882 | 884,920 | 135,620 | |||||||||||||
Accumulated other comprehensive income/(loss) | 414 | (21,972 | ) | (3,368 | ) | |||||||||||
Accumulated deficit | (373,982 | ) | (392,274 | ) | (60,120 | ) | ||||||||||
Total shareholders’ (deficit)/equity | (308,653 | ) | 468,683 | 71,828 | ||||||||||||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 508,805 | 1,335,976 | 204,747 | |||||||||||||
Note | As of December 31, 2020 | As of December 31, 2021 | ||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||
Liabilities and Shareholders’ Equity (Continued) | ||||||||||||||
Commitments and contingencies | 25 | 0 | 0 | 0 | ||||||||||
Shareholders’ equity | ||||||||||||||
Class A common shares (US$0.00001 par value; 7,000,000,000 shares authorized as of December 31, 2020 and 2021, respectively; 894,456,046 shares issued as of December 31, 2020 and 2021, respectively; 888,506,366 shares and 886,166,726 shares outstanding as of December 31, 2020 and 2021, respectively) | 1 6 | 62 | 62 | 10 | ||||||||||
Class B common shares (US$0.00001 par value; 800,000,000 shares authorized as of December 31, 2020 and 2021, respectively; 150,591,207 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 1 6 | 10 | 10 | 2 | ||||||||||
Treasury stock (896,180 shares and 3,436,860 shares as of December 31, 2020 and 2021, respectively) | 1 6 | (2,063 | ) | (9,545 | ) | (1,498 | ) | |||||||
Additional paid-in capital | 884,920 | 896,772 | 140,723 | |||||||||||
Accumulated other comprehensive loss | (21,972 | ) | (27,295 | ) | (4,283 | ) | ||||||||
Accumulated deficit | (392,274 | ) | (499,940 | ) | (78,451 | ) | ||||||||
Total shareholders’ equity attributable to Huize Holding Limited shareholders | 468,683 | 360,064 | 56,503 | |||||||||||
Non-controlling interests | 0 | 849 | 133 | |||||||||||
Total shareholders’ equity | 468,683 | 360,913 | 56,636 | |||||||||||
Total liabilities and shareholders’ equity | 1,335,976 | 1,857,454 | 291,475 | |||||||||||
Year Ended December 31, | ||||||||||||||||||
Note | 2019 | 2020 | 2021 | |||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||||
Operating revenue | ||||||||||||||||||
Brokerage income | 2( y ), 19 | 982,124 | 1,215,434 | 2,232,253 | 350,289 | |||||||||||||
Other income | 11,195 | 4,788 | 12,763 | 2,003 | ||||||||||||||
Total operating revenue | 993,319 | 1,220,222 | 2,245,016 | 352,292 | ||||||||||||||
Operating costs and expenses | ||||||||||||||||||
Cost of revenue | 2( z ) | (629,531 | ) | (813,507 | ) | (1,688,087 | ) | (264,898 | ) | |||||||||
Other cost | (1,837 | ) | (2,846 | ) | (2,670 | ) | (419 | ) | ||||||||||
Total operating costs | (631,368 | ) | (816,353 | ) | (1,690,757 | ) | (265,317 | ) | ||||||||||
Selling expenses | 2 0 | (164,665 | ) | (230,438 | ) | (350,573 | ) | (55,012 | ) | |||||||||
General and administrative expenses | 2 1 | (161,816 | ) | (150,207 | ) | (197,619 | ) | (31,011 | ) | |||||||||
Research and development expenses | (33,831 | ) | (49,135 | ) | (120,478 | ) | (18,906 | ) | ||||||||||
Total operating costs and expenses | (991,680 | ) | (1,246,133 | ) | (2,359,427 | ) | (370,246 | ) | ||||||||||
Operating income/(loss) | 1,639 | (25,911 | ) | (114,411 | ) | (17,954 | ) | |||||||||||
Other income/(expenses) | ||||||||||||||||||
Interest expenses | (190 | ) | (1,157 | ) | (3,206 | ) | (503 | ) | ||||||||||
Unrealized exchange income/(loss) | 362 | (9 | ) | (59 | ) | (9 | ) | |||||||||||
Investment income/(loss) | 2 2 | 718 | 137 | (5,328 | ) | (836 | ) | |||||||||||
Others, net | 12,676 | 10,177 | 12,627 | 1,981 | ||||||||||||||
Profit/(loss) before income tax, and share of (loss)/income of equity method investee | 15,205 | (16,763 | ) | (110,377 | ) | (17,321 | ) | |||||||||||
Income tax expense | 1 4 | (57 | ) | (1,768 | ) | 0 | 0 | |||||||||||
Share of (loss) /income of equity method investee | (180 | ) | 239 | 2,660 | 417 | |||||||||||||
Net profit/(loss) | 14,968 | (18,292 | ) | (107,717 | ) | (16,904 | ) | |||||||||||
Net profit/(loss) attributable to non-controlling interests | 66 | 0 | (51 | ) | (8 | ) | ||||||||||||
Net profit/(loss) attributable to Huize Holding Limited | 14,902 | (18,292 | ) | (107,666 | ) | (16,896 | ) | |||||||||||
Redeemable preferred shares redemption value accretion | 1 7 | (32,854 | ) | (4,274 | ) | 0 | 0 | |||||||||||
Allocation to redeemable preferred shares | (7,431 | ) | 1,074 | 0 | 0 | |||||||||||||
Net loss attributable to common shareholders | (25,383 | ) | (21,492 | ) | (107,666 | ) | (16,896 | ) | ||||||||||
Net profit/(loss) | 14,968 | (18,292 | ) | (107,717 | ) | (16,904 | ) | |||||||||||
Foreign currency translation adjustment, net of tax | 140 | (22,386 | ) | (5,323 | ) | (835 | ) | |||||||||||
Comprehensive income/(loss) | 15,108 | (40,678 | ) | (113,040 | ) | (17,739 | ) | |||||||||||
Year Ended December 31, | ||||||||||||||||||
Note | 2019 | 2020 | 2021 | |||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||||
Comprehensive income/(loss) attributable to non-controlling interests | 87 | 0 | (51 | ) | (8 | ) | ||||||||||||
Comprehensive income/(loss) attributable to Huize Holding Limited | 15,021 | (40,678 | ) | (112,989 | ) | (17,731 | ) | |||||||||||
Weighted average number of common shares used in computing net profit per share | ||||||||||||||||||
Basic and diluted | 2 3 | 452,445,068 | 963,817,614 | 1,021,861,206 | 1,021,861,206 | |||||||||||||
Net loss per share attributable to common shareholders | ||||||||||||||||||
Basic and diluted | 2 3 | (0.06 | ) | (0.02 | ) | (0.11 | ) | (0.02 | ) |
Common shares | Additional paid-in capital | Accumulated other comprehensive (income)/ loss | Accumulated deficit | Non- Controlling interest | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||
Share | Amount | |||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||
Balance at 1 January 2019 | 445,272,000 | 31 | 2,778 | 295 | (388,884 | ) | 542 | (385,238 | ) | |||||||||||||||||||||
Net profit for the year | — | — | — | — | 14,902 | 66 | 14,968 | |||||||||||||||||||||||
Share-based payment compensation | 1 8 | 38,038,373 | 2 | 94,958 | — | — | — | 94,960 | ||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | 1 7 | — | — | (32,854 | ) | — | — | — | (32,854 | ) | ||||||||||||||||||||
Foreign currency translation | — | — | — | 119 | — | 21 | 140 | |||||||||||||||||||||||
Others | — | — | — | — | — | (629 | ) | (629 | ) | |||||||||||||||||||||
Balance at 31 December 2019 | 483,310,373 | 33 | 64,882 | 414 | (373,982 | ) | 0 | (308,653 | ) | |||||||||||||||||||||
Common shares | Class A Common shares | Class B Common shares | Treasury Stock | Additional paid-in capital | Accumulated other comprehensive (income)/ loss | Accumulated deficit | Non- Controlling interest | Total shareholders’ (deficit)/equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at 1 January 2020 | 483,310,373 | 33 | — | — | — | — | — | — | 64,882 | 414 | (373,982 | ) | — | | (308,653 | ) | ||||||||||||||||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | — | — | — | — | — | (18,292 | ) | — | (18,292 | ) | |||||||||||||||||||||||||||||||||||||||||
Issuance of common shares upon Initial Public Offering (“IPO”) | 1 6 | — | — | 105,000,000 | 7 | — | — | — | — | 324,208 | — | — | — | 324,215 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of over-allotment option | 1 6 | — | — | 1,449,060 | 1 | — | — | — | — | 4,851 | — | — | — | 4,852 | ||||||||||||||||||||||||||||||||||||||||||
Re-designation of common shares into Class A common shares and Class B common shares | 1 6 | (483,310,373 | ) | (33 | ) | 332,719,166 | 23 | 150,591,207 | 10 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Conversion and re-designation of redeemable preferred shares into Class A common shares | 1 7 | — | — | 450,046,220 | 31 | — | — | — | — | 458,870 | — | — | — | 458,901 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common shares | 1 6 | — | — | — | — | — | — | 896,180 | (2,063 | ) | — | — | — | — | (2,063 | ) | ||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of option | 1 8 | — | — | 188,100 | — | — | — | — | — | 503 | — | — | — | 503 | ||||||||||||||||||||||||||||||||||||||||||
Share-based payment compensation | 1 8 | — | — | — | — | — | — | — | — | 35,880 | — | — | — | 35,880 | ||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | 1 7 | — | — | — | — | — | — | — | — | (4,274 | ) | — | — | — | (4,274 | ) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | — | — | (22,386 | ) | — | — | (22,386 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2020 | — | — | 889,402,546 | 62 | 150,591,207 | 10 | 896,180 | (2,063 | ) | 884,920 | (21,972 | ) | (392,274 | ) | — | 468,683 | ||||||||||||||||||||||||||||||||||||||||
Common shares | Class A Common shares | Class B Common shares | Treasury Stock | Additional paid-in capital | Accumulated other comprehensive (income)/ loss | Accumulated deficit | Non- Controlling interest | Total shareholders’ (deficit)/equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at 1 January 2021 | 0 | 0— | 889,402,546 | 62 | 150,591,207 | 10 | 896,180 | (2,063 | ) | 884,920 | (21,972 | ) | (392,274 | ) | 0 | 468,683 | ||||||||||||||||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | — | — | — | — | — | (107,666 | ) | (51 | ) | (107,717 | ) | ||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common shares | 1 6 | — | — | — | — | — | — | 2,540,680 | (7,482 | ) | — | — | — | — | (7,482 | ) | ||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of option | 1 8 | — | — | 201,040 | 0 | — | — | — | — | 497 | — | — | — | 497 | ||||||||||||||||||||||||||||||||||||||||||
Share-based payment compensation | 1 8 | — | — | — | — | — | — | — | — | 11,355 | — | — | — | 11,355 | ||||||||||||||||||||||||||||||||||||||||||
Set-up of subsidiaries with non-controlling interests | — | — | — | — | — | — | — | — | — | — | — | 900 | 900 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | — | — | (5,323 | ) | — | — | (5,323 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2021 | 0 | 0— | 889,603,586 | 62 | 150,591,207 | 10 | 3,436,860 | (9,545 | ) | 896,772 | (27,295 | ) | (499,940 | ) | 849 | 360,913 | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
Note | 2018 | 2019 | 2020 | |||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||||
Operating revenue | ||||||||||||||||||
Brokerage income | 2(x), 17 | 503,547 | 982,124 | 1,215,434 | 186,273 | |||||||||||||
Other income | 5,281 | 11,195 | 4,788 | 734 | ||||||||||||||
Total operating revenue | 508,828 | 993,319 | 1,220,222 | 187,007 | ||||||||||||||
Operating costs and expenses | ||||||||||||||||||
Cost of revenue | 2(y) | (316,397 | ) | (629,531 | ) | (813,507 | ) | (124,675 | ) | |||||||||
Other cost | (1,905 | ) | (1,837 | ) | (2,846 | ) | (437 | ) | ||||||||||
Total operating costs | (318,302 | ) | (631,368 | ) | (816,353 | ) | (125,112 | ) | ||||||||||
Selling expenses | 18 | (94,613 | ) | (164,665 | ) | (230,438 | ) | (35,316 | ) | |||||||||
General and administrative expenses | 19 | (46,177 | ) | (161,816 | ) | (150,207 | ) | (23,020 | ) | |||||||||
Research and development expenses | (24,944 | ) | (33,831 | ) | (49,135 | ) | (7,530 | ) | ||||||||||
Total operating costs and expenses | (484,036 | ) | (991,680 | ) | (1,246,133 | ) | (190,978 | ) | ||||||||||
Operating income/(loss) | 24,792 | 1,639 | (25,911 | ) | (3,971 | ) | ||||||||||||
Other income/(expenses) | ||||||||||||||||||
Interest expenses | 20 | (27,111 | ) | (190 | ) | (1,157 | ) | (177 | ) | |||||||||
Unrealized exchange (loss)/income | (354 | ) | 362 | (9 | ) | (1 | ) | |||||||||||
Investment income | — | 718 | 137 | 21 | ||||||||||||||
Others, net | 4,569 | 12,676 | 10,177 | 1,559 | ||||||||||||||
Profit/(loss) before income tax, and share of income/(loss) of equity method investee | 1,896 | 15,205 | (16,763 | ) | (2,569 | ) | ||||||||||||
Income tax expense | 12 | (278 | ) | (57 | ) | (1,768 | ) | (271 | ) | |||||||||
Share of income/(loss) of equity method investee | 1,310 | (180 | ) | 239 | 37 | |||||||||||||
Net profit/(loss) | 2,928 | 14,968 | (18,292 | ) | (2,803 | ) | ||||||||||||
Net (loss)/profit attributable to non-controlling interests | (224 | ) | 66 | — | — | |||||||||||||
Net profit/(loss) attributable to Huize Holding Limited | 3,152 | 14,902 | (18,292 | ) | (2,803 | ) | ||||||||||||
Redeemable preferred shares redemption value accretion | 15 | (29,118 | ) | (32,854 | ) | (4,274 | ) | (655 | ) | |||||||||
Allocation to redeemable preferred shares | (1,558 | ) | (7,431 | ) | 1,074 | 165 | ||||||||||||
Net loss attributable to common shareholders | (27,524 | ) | (25,383 | ) | (21,492 | ) | (3,293 | ) | ||||||||||
Net profit/(loss) | 2,928 | 14,968 | (18,292 | ) | (2,803 | ) | ||||||||||||
Foreign currency translation adjustment, net of tax | 327 | 140 | (22,386 | ) | (3,431 | ) | ||||||||||||
Comprehensive income/(loss) | 3,255 | 15,108 | (40,678 | ) | (6,234 | ) | ||||||||||||
Year Ended December 31, | ||||||||||||||||||
Note | 2018 | 2019 | 2020 | |||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||||
Comprehensive (loss)/income attributable to non-controlling interests | (192 | ) | 87 | 0 | 0 | |||||||||||||
Comprehensive income/(loss) attributable to Huize Holding Limited | 3,447 | 15,021 | (40,678 | ) | (6,234 | ) | ||||||||||||
Weighted average number of common shares used in computing net profit per share | ||||||||||||||||||
Basic and diluted | 21 | 445,272,000 | 452,445,068 | 963,817,614 | 963,817,614 | |||||||||||||
Net (loss)/profit per share attributable to common shareholders | ||||||||||||||||||
Basic and diluted | 21 | (0.06 | ) | (0.06 | ) | (0.02 | ) | (0.00 | ) |
Common shares | Additional paid-in capital | Accumulated other comprehensive (income)/ loss | Accumulated deficit | Non- Controlling interest | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||||
Share | Amount | |||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||
Balance at 1 January 2018 | 445,272,000 | 31 | 5,901 | 0 | (392,036 | ) | 734 | (385,370 | ) | |||||||||||||||||||||||
Net profit for the year | — | — | — | — | 3,152 | (224 | ) | 2,928 | ||||||||||||||||||||||||
Share-based payment compensation | 16 | — | — | 967 | — | — | — | 967 | ||||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | 15 | — | — | (29,118 | ) | — | — | — | (29,118 | ) | ||||||||||||||||||||||
Beneficial conversion feature in connection with issuance of convertible bonds | — | — | 25,028 | — | — | — | 25,028 | |||||||||||||||||||||||||
Foreign currency translation | — | — | — | 295 | — | 32 | 327 | |||||||||||||||||||||||||
Balance at 31 December 2018 | 445,272,000 | 31 | 2,778 | 295 | (388,884 | ) | 542 | (385,238 | ) | |||||||||||||||||||||||
Balance at 1 January 2019 | 445,272,000 | 31 | 2,778 | 295 | (388,884 | ) | 542 | (385,238 | ) | |||||||||||||||||||||||
Net profit for the year | — | — | — | — | 14,902 | 66 | 14,968 | |||||||||||||||||||||||||
Share-based payment compensation | 16 | 38,038,373 | 2 | 94,958 | — | — | — | 94,960 | ||||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | 15 | — | — | (32,854 | ) | — | — | — | (32,854 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | 119 | — | 21 | 140 | |||||||||||||||||||||||||
Others | — | — | — | — | — | (629 | ) | (629 | ) | |||||||||||||||||||||||
Balance at 31 December 2019 | 483,310,373 | 33 | 64,882 | 414 | (373,982 | ) | — | (308,653 | ) | |||||||||||||||||||||||
Common shares | Class A Common shares | Class B Common shares | Treasury Stock | Additional paid-in capital | Accumulated other comprehensive (income)/ loss | Accumulated deficit | Non- Controlling interest | Total shareholders’ (deficit)/equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at 1 January 2020 | 483,310,373 | 33 | — | — | — | — | — | — | 64,882 | 414 | (373,982 | ) | — | (308,653 | ) | |||||||||||||||||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | — | — | — | — | — | (18,292 | ) | — | (18,292 | ) | |||||||||||||||||||||||||||||||||||||||||
Issuance of common shares upon Initial Public Offering (“IPO”) | 14 | — | — | 105,000,000 | 7 | — | — | — | — | 324,208 | — | — | — | 324,215 | ||||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of over-allotment option | 14 | — | — | 1,449,060 | 1 | — | — | — | — | 4,851 | — | — | — | 4,852 | ||||||||||||||||||||||||||||||||||||||||||
Re-designation of common shares into Class A common shares and Class B common shares | 14 | (483,310,373 | ) | (33 | ) | 332,719,166 | 23 | 150,591,207 | 10 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Conversion and re-designation of redeemable preferred shares into Class A common shares | 15 | — | — | 450,046,220 | 31 | — | — | — | — | 458,870 | — | — | — | 458,901 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common shares | 14 | — | — | — | — | — | — | 896,180 | (2,063 | ) | — | — | — | — | (2,063 | ) | ||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of option | 16 | — | — | 188,100 | — | — | — | — | — | 503 | — | — | — | 503 | ||||||||||||||||||||||||||||||||||||||||||
Share-based payment compensation | 16 | — | — | — | — | — | — | — | — | 35,880 | — | — | — | 35,880 | ||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred shares redemption value accretion | 15 | — | — | — | — | — | — | — | — | (4,274 | ) | — | — | — | (4,274 | ) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | — | — | (22,386 | ) | — | — | (22,386 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2020 | — | — | 889,402,546 | 62 | 150,591,207 | 10 | 896,180 | (2,063 | ) | 884,920 | (21,972 | ) | (392,274 | ) | — | 468,683 | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net profit/(loss) | 2,928 | 14,968 | (18,292 | ) | (2,803 | ) | ||||||||||
Adjustments to reconcile net profit/(loss) to net cash provided by operating activities: | ||||||||||||||||
Allowance for doubtful account | 376 | 626 | 1,218 | 187 | ||||||||||||
Depreciation and amortization | 3,082 | 3,779 | 5,108 | 783 | ||||||||||||
Unrealized exchange loss/(income) | 354 | (362 | ) | 9 | 1 | |||||||||||
Share-based compensation expense | 967 | 94,958 | 35,880 | 5,499 | ||||||||||||
Interest expense | 862 | 190 | 1,157 | 177 | ||||||||||||
Investment income | — | (718 | ) | (137 | ) | (21 | ) | |||||||||
Share of (income)/loss of equity method investee | (1,310 | ) | 180 | (239 | ) | (37 | ) | |||||||||
Interest on convertible bond | 26,249 | — | — | — | ||||||||||||
Deferred income tax | 190 | 20 | (466 | ) | (71 | ) | ||||||||||
Amortization of right-of-use | — | — | 8,408 | 1,289 | ||||||||||||
Amortization of Directors and Officers Liability Insurance premium | — | — | 6,127 | 939 | ||||||||||||
Loss on disposal of Property, plant and equipment | — | — | 44 | 6 | ||||||||||||
33,698 | 113,641 | 38,817 | 5,949 | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase in account receivables | (38,120 | ) | (74,508 | ) | (52,824 | ) | (8,096 | ) | ||||||||
(Increase)/decrease in insurance premium receivables | (6,133 | ) | 6,814 | 355 | 54 | |||||||||||
Increase in prepaid expense and other receivables | (4,152 | ) | (6,860 | ) | (30,755 | ) | (4,713 | ) | ||||||||
Increase in amounts due from related parties | (1,580 | ) | 10,266 | 29 | 4 | |||||||||||
Increase/(decrease) in amounts due to related party | — | 465 | (465 | ) | (71 | ) | ||||||||||
Increase in other assets | (3,831 | ) | (10,332 | ) | — | — | ||||||||||
Increase in contract assets | — | — | (216 | ) | (33 | ) | ||||||||||
Increase in accounts payable | 57,995 | 52,163 | 103,091 | 15,799 | ||||||||||||
Increase in insurance premium payables | 12,753 | 11,140 | 61,632 | 9,446 | ||||||||||||
Increase in payroll and welfare payable | 14,833 | 12,143 | 24,082 | 3,691 | ||||||||||||
(Decrease)/increase in tax payable | (195 | ) | 37 | 2,234 | 342 | |||||||||||
Increase in other payables and accrued expenses | 1,585 | 3,055 | 2,577 | 395 | ||||||||||||
Decrease in operating lease liabilities | — | — | (10,891 | ) | (1,669 | ) | ||||||||||
Net cash provided by operating activities | 66,853 | 118,024 | 137,666 | 21,098 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of long-term investment | (2,500 | ) | (2,000 | ) | (22,450 | ) | (3,441 | ) | ||||||||
Purchase of property, equipment and intangible assets | (1,139 | ) | (6,035 | ) | (8,196 | ) | (1,256 | ) | ||||||||
Proceeds from disposal of property, equipment and intangible assets | 85 | 60 | 0 | 0 | ||||||||||||
Acquisition of subsidiary, net of cash paid | (569 | ) | (87 | ) | ||||||||||||
Others | 0 | 1,048 | 137 | 21 | ||||||||||||
Net cash used in investing activities | (3,554 | ) | (6,927 | ) | (31,078 | ) | (4,763 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from borrowings | 29,484 | 30,000 | 105,400 | 16,153 | ||||||||||||
Repayments of borrowings | (13,912 | ) | (35,285 | ) | (61,266 | ) | (9,389 | ) | ||||||||
Proceeds from convertible bonds | 33,000 | — | — | — | ||||||||||||
Repayments of convertible bonds | — | (8,794 | ) | — | — | |||||||||||
Proceeds from IPO, net of issuance costs | — | — | 340,479 | 52,181 | ||||||||||||
Repurchase of Class A common shares | — | — | (2,063 | ) | (316 | ) | ||||||||||
Proceeds from exercise of share options | — | — | 503 | 77 | ||||||||||||
Net cash provided by/(used in) financing activities | 48,572 | (14,079 | ) | 383,053 | 58,706 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 120 | 38 | (10,020 | ) | (1,536 | ) | ||||||||||
Net increase in cash and cash equivalents and restricted cash | 111,991 | 97,056 | 479,621 | 73,505 | ||||||||||||
Total cash and cash equivalents and restricted cash at beginning of year | 40,280 | 152,271 | 249,327 | 38,211 | ||||||||||||
Total cash and cash equivalents and restricted cash at end of year | 152,271 | 249,327 | 728,948 | 111,716 | ||||||||||||
Year Ended December 31 | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net profit/(loss) | 14,968 | (18,292 | ) | (107,717 | ) | (16,904 | ) | |||||||||
Adjustments to reconcile net profit/(loss) to net cash provided by operating activities: | ||||||||||||||||
Allowance for doubtful account | 626 | 1,218 | 1,445 | 227 | ||||||||||||
Depreciation and amortization | 3,779 | 5,108 | 7,424 | 1,165 | ||||||||||||
Unrealized exchange (income)/ loss | (362 | ) | 9 | 59 | 9 | |||||||||||
Share-based compensation expense | 94,958 | 35,880 | 11,355 | 1,782 | ||||||||||||
Interest expense | 190 | 1,157 | 3,206 | 503 | ||||||||||||
Investment (income)/loss | (718 | ) | (137 | ) | 5,328 | 836 | ||||||||||
Share of loss/(income) of equity method investee | 180 | (239 | ) | (2,660 | ) | (417 | ) | |||||||||
Deferred income tax | 20 | (466 | ) | — | — | |||||||||||
Amortization of right-of-use | — | 8,408 | 32,941 | 5,169 | ||||||||||||
Amortization of Directors and Officers Liability Insurance premium | — | 6,127 | 7,798 | 1,224 | ||||||||||||
Loss on disposal of Property, plant and equipment | — | 44 | (194 | ) | (30 | ) | ||||||||||
113,641 | 38,817 | (41,015 | ) | (6,436 | ) | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase in account receivables | (74,508 | ) | (52,824 | ) | (545,678 | ) | (85,629 | ) | ||||||||
Decrease in insurance premium receivables | 6,814 | 355 | 757 | 119 | ||||||||||||
Increase in prepaid expense and other receivables | (6,860 | ) | (30,755 | ) | (40,020 | ) | (6,280 | ) | ||||||||
Decrease in amounts due from related parties | 10,266 | 29 | 123 | 19 | ||||||||||||
Increase/(decrease) in amounts due to related party | 465 | (465 | ) | 11,875 | 1,863 | |||||||||||
Decrease/(increase) in other assets | (10,332 | ) | — | — | — | |||||||||||
Decrease/(increase) in contract assets | — | (216 | ) | 216 | 34 | |||||||||||
Increase in accounts payable | 52,163 | 103,091 | 452,550 | 71,015 | ||||||||||||
Increase/(decrease) in insurance premium payables | 11,140 | 61,632 | (63,200 | ) | (9,917 | ) | ||||||||||
Increase in payroll and welfare payable | 12,143 | 24,082 | 25,578 | 4,014 | ||||||||||||
Increase in tax payable | 37 | 2,234 | — | — | ||||||||||||
Increase in other payables and accrued expenses | 3,055 | 2,577 | 29,860 | 4,686 | ||||||||||||
Decrease in operating lease liabilities | — | (10,891 | ) | (14,199 | ) | (2,228 | ) | |||||||||
Increase in contract liabilities | — | — | 7,236 | 1,135 | ||||||||||||
Net cash provided by/(used in) operating activities | 118,024 | 137,666 | (175,917 | ) | (27,605 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of long-term investment | (2,000 | ) | (22,450 | ) | (33,614 | ) | (5,275 | ) | ||||||||
Purchase of property, equipment and intangible assets | (6,035 | ) | (8,196 | ) | (38,061 | ) | (5,973 | ) | ||||||||
Proceeds from disposal of property, equipment and intangible assets | 60 | — | 980 | 154 | ||||||||||||
Proceeds from disposal of investments | — | — | 3,820 | 599 | ||||||||||||
Acquisition of subsidiary, net of cash acquired | — | (569 | ) | (14,292 | ) | (2,243 | ) | |||||||||
Others | 1,048 | 137 | 241 | 38 | ||||||||||||
Net cash used in investing activities | (6,927 | ) | (31,078 | ) | (80,926 | ) | (12,700 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from borrowings | 30,000 | 105,400 | 184,000 | 28,874 | ||||||||||||
Repayments of borrowings | (35,285 | ) | (61,266 | ) | (40,503 | ) | (6,356 | ) | ||||||||
Repayments of convertible bonds | (8,794 | ) | — | — | — | |||||||||||
Proceeds from IPO, net of issuance costs | — | 340,479 | — | — | ||||||||||||
Repurchase of Class A common shares | — | (2,063 | ) | (3,003 | ) | (471 | ) | |||||||||
Proceeds from exercise of share options | — | 503 | 497 | 78 | ||||||||||||
Cash received by subsidiaries from minority shareholders | — | — | 900 | 141 | ||||||||||||
Net cash (used in)/provided by financing activities | (14,079 | ) | 383,053 | 141,891 | 22,266 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 38 | (10,020 | ) | (5,012 | ) | (786 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash | 97,056 | 479,621 | (119,964 | ) | (18,825 | ) | ||||||||||
Total cash and cash equivalents and restricted cash at beginning of year | 152,271 | 249,327 | 728,948 | 114,388 | ||||||||||||
Total cash and cash equivalents and restricted cash at end of year | 249,327 | 728,948 | 608,984 | 95,563 | ||||||||||||
Year e nded December 31 | ||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | Year ended December 31 | |||||||||||||||||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||||||||||||||||||
Supplemental disclosure of cash flow information | ||||||||||||||||||||||||||||||||
Cash paid for interest | (1,473 | ) | (2,094 | ) | (4,386 | ) | (672 | ) | (2,094 | ) | (4,386 | ) | (7,813 | ) | (1,226 | ) | ||||||||||||||||
Cash paid for income tax | (283 | ) | 0 | 0 | 0 | 0— | 0— | 0— | 0— | |||||||||||||||||||||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||||||||||||||||||||||||||
Accretion on redeemable preferred shares to redemption value | (29,118 | ) | (32,854 | ) | (4,274 | ) | (655 | ) | (32,854 | ) | (4,274 | ) | — | — | ||||||||||||||||||
Issuance of redeemable preferred shares from conversion of the convertible bonds | 25,427 | 0 | ||||||||||||||||||||||||||||||
Supplemental disclosure of non-cash operating activities | ||||||||||||||||||||||||||||||||
Operating lease assets obtained in exchange for operating lease liabilities | — | — | 270,256 | 41,419 | — | 270,256 | 13,400 | 2,103 |
(a) | History and Reorganization |
(a) | History and Reorganization (Continued) |
Principal Subsidiaries | Date of Incorporation/ Establishment | Place of Incorporation/ Establishment | Percentage or Indirect Economic Economic Interest | Principal Activities | ||||||||||||||
Smart Choice Ventures Limited | January 14, 2015 | British Virgin Islands | 100 | % | Investment holding | |||||||||||||
Hong Kong Smart Choice Ventures Limited (“HK Smart Choice”) | February 18, 2015 | Hong Kong | 100 | % | Investment holding | |||||||||||||
Zhixuan International Management Consulting (Shenzhen) Co., Ltd. | June 9, 2015 | PRC | 100 | % | Management consulting and marketing consulting | | ||||||||||||
100 | % | |||||||||||||||||
Huize Hong Kong Insurance Broker Limited | May 5, 2021 | Hong Kong | 100 | % | | Insurance brokerage service | | |||||||||||
VIE | ||||||||||||||||||
Shenzhen Huiye Tianze Investment Holding Co., Ltd (“Huiye Tianze”) | October 30, 2014 | PRC | 100 | % | Investment, investment consulting service | | ||||||||||||
VIE’s Principal Subsidiaries | ||||||||||||||||||
Huize Insurance Brokerage Co., Ltd. (“Huize Insurance Brokerage”) | October 14, 2011 | PRC | 100 | % | Insurance brokerage service | | ||||||||||||
Shenzhen Huize Shidai Co., Ltd. (“Huize Technology”) | April 28, 2012 | PRC | 100 | % | | Technology development and Internet information consulting service | | |||||||||||
Hefei Huize Internet Technology Co., Ltd. (“Hefei Huize”) | August 5, 2015 | PRC | 100 | % | | Technology development and Internet information consulting service | | |||||||||||
Shenzhen Zhixuan Wealth Investment Management Co., Ltd. (“Zhixuan Investment”) | April 20, 2016 | PRC | 100 | % | | Management consulting, Investment consulting and | | |||||||||||
Huize (Chengdu) Internet Technology Co., Ltd. (“Chengdu Huize”) | May 11, 2018 | PRC | 100 | % | Technology development consulting service | | ||||||||||||
and Internet information consulting service |
(a) | Basis of presentation |
(b) | Basis of consolidation |
(b) | Basis of consolidation (Continued) |
(b) | Basis of consolidation (Continued) |
As of | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
RMB | RMB | |||||||
Current assets | 478,453 | 730,815 | ||||||
Non-current assets | 46,267 | 318,392 | ||||||
Total assets | 524,720 | 1,049,207 | ||||||
Current liabilities | 368,617 | 553,478 | ||||||
Non-current liabilities | 1,054 | 306,570 | ||||||
Total liabilities | 369,671 | 860,048 | ||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Total operating revenue | 498,228 | 984,910 | 1,219,994 | |||||||||
Net profit | 29,973 | 22,806 | (6,326 | ) | ||||||||
Net cash provided by operating activities | 67,049 | 104,565 | 168,504 | |||||||||
Net cash used in investing activities | (3,541 | ) | (6,927 | ) | (31,078 | ) | ||||||
Net cash provided by/ (used in) financing activities | 48,720 | 823 | 44,134 | |||||||||
Net increase in cash and cash equivalents | 112,228 | 98,461 | 181,560 | |||||||||
Cash and cash equivalents at beginning of year | 37,680 | 149,908 | 248,369 | |||||||||
Cash and cash equivalents at end of year | 149,908 | 248,369 | 429,929 | |||||||||
As of | ||||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB | RMB | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalent | 211,979 | 323,011 | ||||||
Restricted cash | 217,950 | 127,315 | ||||||
Account receivables, net of allowance for impairment | 232,589 | 777,055 | ||||||
Insurance premium receivables | 1,974 | 1,217 | ||||||
Prepaid expense and other receivables | 66,323 | 106,865 | ||||||
Total current assets | 730,815 | 1,335,463 | ||||||
Non-current assets | ||||||||
Restricted cash | — | 24,680 | ||||||
Property, Plant and Equipment, net | 10,217 | 47,800 | ||||||
Intangible assets, net | 2,030 | 18,979 | ||||||
Deferred tax assets | 605 | 605 | ||||||
Long-term investments | 36,889 | 59,450 | ||||||
Operating lease right-of-use assets | 267,352 | 241,880 | ||||||
Goodwill | 461 | 461 | ||||||
Other Assets | 838 | 379 | ||||||
Total non-current assets | 318,392 | 394,234 | ||||||
Total assets | 1,049,207 | 1,729,697 | ||||||
Liabilities and Shareholders’ Equity | ||||||||
Short-term borrowings | 31,540 | 216,710 | ||||||
Accounts payable | 227,532 | 680,183 | ||||||
Insurance premium payables | 187,219 | 124,019 | ||||||
Contract liabilities | — | 2,681 | ||||||
Other payables and accrued expenses | 39,419 | 207,461 | ||||||
Payroll and welfare payable | 52,564 | 92,094 | ||||||
Income taxes payable | 2,440 | 2,440 | ||||||
Operating lease liabilities | 12,763 | 12,362 | ||||||
Amount due to related parties | — | 11,875 | ||||||
Total current liabilities | 553,477 | 1,349,825 | ||||||
Non-current liabilities | ||||||||
Long-term borrowings | 53,860 | 20,000 | ||||||
Deferred tax liabilities | 605 | 4,455 | ||||||
Operating lease liabilities | 252,106 | 245,396 | ||||||
Total non-current liabilities | 306,571 | 269,851 | ||||||
Total liabilities | 860,048 | 1,619,676 | ||||||
Shareholders’ equity | ||||||||
Common shares | 44,766 | 44,766 | ||||||
Additional paid-in capital | 462,858 | 460,157 | ||||||
Accumulated deficit | (318,465 | ) | (395,751 | ) | ||||
Total shareholders’ equity attributable to Huize Holding Limited shareholders | 189,159 | 109,172 | ||||||
Non-controlling interests | — | 849 | ||||||
Total shareholders’ equity | 189,159 | 110,021 | ||||||
Total liabilities and shareholders’ equity | 1,049,207 | 1,729,697 |
(b) | Basis of consolidation (Continued) |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Operating revenue | ||||||||||||
Brokerage commission income | 973,715 | 1,215,434 | 2,231,388 | |||||||||
Other income | 11,195 | 4,560 | 11,494 | |||||||||
Total operating revenue | 984,910 | 1,219,994 | 2,242,882 | |||||||||
Operating costs and expenses | ||||||||||||
Cost of revenue | (622,906 | ) | (813,507 | ) | (1,687,770 | ) | ||||||
Other cost | (1,837 | ) | (2,846 | ) | (2,670 | ) | ||||||
Total operating costs | (624,743 | ) | (816,353 | ) | (1,690,440 | ) | ||||||
Selling expenses | (163,119 | ) | (230,438 | ) | (346,305 | ) | ||||||
General and administrative expenses | (153,324 | ) | (136,921 | ) | (172,822 | ) | ||||||
Research and development expenses | (33,831 | ) | (49,135 | ) | (120,478 | ) | ||||||
Total operating costs and expenses | (975,017 | ) | (1,232,847 | ) | (2,330,045 | ) | ||||||
Operating income/(loss) | 9,893 | (12,853 | ) | (87,163 | ) | |||||||
Other income/(expenses) | ||||||||||||
Interest expenses | (197 | ) | (1,813 | ) | (4,092 | ) | ||||||
Unrealized exchange income/(loss) | 421 | (421 | ) | 0 | ||||||||
Investment income | 0 | 137 | (1,369 | ) | ||||||||
Others, net | 12,690 | 10,153 | 12,627 | |||||||||
Profit before income tax, and share of (loss)/income of equity method investee | 22,807 | (4,797 | ) | (79,997 | ) | |||||||
Income tax expense | (20 | ) | (1,768 | ) | 0 | |||||||
Share of (loss)/income of equity method investee | (180 | ) | 239 | 2,660 | ||||||||
Net profit/(loss) | 22,607 | (6,326 | ) | (77,337 | ) | |||||||
Net profit/(loss) attributable to non-controlling interests | 0 | 0 | (51 | ) | ||||||||
Net profit/(loss) attributable to Huize Holding Limited | 22,607 | (6,326 | ) | (77,286 | ) | |||||||
Redeemable preferred shares redemption value accretion | 0 | 0 | 0 | |||||||||
Allocation to redeemable preferred shares | 0 | 0 | 0 | |||||||||
Net profit/( loss ) attributable to common shareholders | 22,607 | (6,326 | ) | (77,286 | ) | |||||||
Net profit/( loss ) | 22,607 | (6,326 | ) | (77,337 | ) | |||||||
Foreign currency translation adjustment, net of tax | 0 | 0 | 0 | |||||||||
Comprehensive income/(loss) | 22,607 | (6,326 | ) | (77,337 | ) | |||||||
Comprehensive income/(loss) attributable to non-controlling interests | 0 | 0 | (51 | ) | ||||||||
Comprehensive income/(loss) attributable to Huize Holding Limited | 22,607 | (6,326 | ) | (77,286 | ) |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Net cash provided by/(used in) operating activities | 120,566 | 168,225 | (152,844 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of long-term investment | (2,000 | ) | (22,450 | ) | (22,601 | ) | ||||||
Purchase of property, equipment and intangible assets | (6,035 | ) | (8,162 | ) | (37,359 | ) | ||||||
Proceeds from disposal of property, equipment and intangible assets | 60 | 0 | 961 | |||||||||
Acquisition of subsidiary, net of cash paid | 0 | (569 | ) | (11,805 | ) | |||||||
Payments of inter-company balances | 0 | 0 | (5,050 | ) | ||||||||
Proceeds from disposal of investments | 0 | 0 | 890 | |||||||||
Others | 11 | 137 | 241 | |||||||||
Net cash used in investing activities | (7,964 | ) | (31,044 | ) | (74,723 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of common share and redeemable preferred shares during Reorganization | (62 | ) | 0 | 0 | ||||||||
Proceeds from borrowings | 30,000 | 105,400 | 184,000 | |||||||||
Repayments of borrowings | (35,285 | ) | (61,266 | ) | (40,503 | ) | ||||||
Repayments of convertible bonds | (8,794 | ) | 0 | 0 | ||||||||
Proceeds from inter-company balances | 0 | 0 | 128,000 | |||||||||
Proceeds from exercise of share option | 0 | 245 | 247 | |||||||||
Cash received by subsidiaries from minority shareholders | 0 | 0 | 900 | |||||||||
Net cash (used in)/provided by financing activities | (14,141 | ) | 44,379 | 272,644 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||
Net increase in cash and cash equivalents and restricted cash | 98,461 | 181,560 | 45,077 | |||||||||
Total cash and cash equivalents and restricted cash at beginning of year | 149,908 | 248,369 | 429,929 | |||||||||
Total cash and cash equivalents and restricted cash at end of year | 248,369 | 429,929 | 475,006 | |||||||||
(b) | Basis of consolidation (Continued) |
(c) | Business combinations and |
(d) | Use of estimates |
(e) | Comprehensive Income and Foreign Currency Translation |
(f) | Convenience translation |
(g) | Cash and cash equivalents |
(h) | Restricted cash |
(i) | Accounts Receivable |
(j) | Insurance Premium Receivables |
(k) | Fair value measurement |
(l) | Property, Plant and Equipment, net |
Category | Estimated useful life | Residual | ||||||
Office furniture and equipment | 0%~ | |||||||
Computer and electronic equipment | 3~5 years | 0%~ | ||||||
Motor vehicles | 4~5 years | |||||||
Leasehold improvements | | shorter of remaining lease period and estimated | NaN |
(m) | Intangible assets, net |
Category | Estimated useful life | Residual value | ||||||
Domain name | 10 years | 0 | % | |||||
Purchased computer software | 0 | % |
(n) | Impairment of long-lived assets and intangible assets |
(o) | Goodwill |
(p) | Asset acquisition |
(q) | Long-term investments |
(i) | Equity investments accounted for using the equity method |
(ii) | Investments accounted for at fair values |
(iii) | Equity investments measured at measurement alternative and NAV practical expedient |
(r) | Short-term and long -term borrowings |
s ) | Insurance Premium Payables |
t ) | Lease |
u ) | Share-based Compensation |
v ) | Fair Value of Redeemable Preferred Shares and Common Shares |
w ) | Redeemable Preferred Shares and Convertible Bond |
x ) | Employee Benefit Plans |
y ) | Revenue recognition |
y ) | Revenue recognition (Continued) |
z ) | Cost of revenue |
aa ) | Selling expenses |
bb ) | General and Administrative Expenses |
cc ) | Others, net |
dd ) | Taxation |
( dd ) |
ee ) | Net |
ff ) | Segment reporting |
gg ) | Significant Risk and Uncertainties |
gg ) | Significant Risk and Uncertainties (Continued) |
Year Ended December 31 | ||||||||||||||||||||||||
2018 RMB | % | 2019 RMB | % | 2020 RMB | % | |||||||||||||||||||
Customer K | — | 0 | % | — | 0 | % | 292,975 | 24 | % | |||||||||||||||
Customer I | — | 0 | % | 57,081 | 6 | % | 157,750 | 13 | % | |||||||||||||||
Customer L | 1,851 | 0 | % | 35,791 | 4 | % | 152,296 | 12 | % | |||||||||||||||
Customer B | 99,425 | 20 | % | 184,035 | 19 | % | 97,624 | 8 | % | |||||||||||||||
Customer H | — | 0 | % | 124,946 | 13 | % | 67,823 | 6 | % | |||||||||||||||
Customer C | 44,296 | 9 | % | 142,443 | 14 | % | 63,179 | 5 | % | |||||||||||||||
Customer A | 100,123 | 20 | % | 94,182 | 10 | % | 32,347 | 3 | % | |||||||||||||||
245,695 | 49 | % | 638,478 | 66 | % | 863,994 | 71 | % | ||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||||||
2019 | % | 2020 | % | 2021 | % | |||||||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||||||
Customer A | 94,182 | 10 | % | 32,347 | 3 | % | 715,287 | 32 | % | |||||||||||||||
Customer K | — | 0 | % | 292,975 | 24 | % | 489,862 | 22 | % | |||||||||||||||
Customer L | 35,791 | 4 | % | 152,296 | 12 | % | 191,059 | 9 | % | |||||||||||||||
Customer H | 124,946 | 13 | % | 67,823 | 6 | % | 186,036 | 8 | % | |||||||||||||||
Customer B | 184,035 | 19 | % | 97,624 | 8 | % | 156,754 | 7 | % | |||||||||||||||
Customer C | 142,443 | 14 | % | 63,179 | 5 | % | 62,753 | 3 | % | |||||||||||||||
Customer I | 57,081 | 6 | % | 157,750 | 13 | % | 46,972 | 2 | % | |||||||||||||||
638,478 | 66 | % | 863,994 | 71 | % | 1,848,723 | 83 | % | ||||||||||||||||
As of December, 31 | As of December, 31 | |||||||||||||||||||||||||||||||
2019 RMB | % | 2020 RMB | % | 2020 | % | 2021 | % | |||||||||||||||||||||||||
RMB | RMB | |||||||||||||||||||||||||||||||
Customer A | 13,057 | 6 | % | 464,289 | 60 | % | ||||||||||||||||||||||||||
Customer H | — | 0 | % | 165,688 | 21 | % | ||||||||||||||||||||||||||
Customer K | — | 0 | % | 67,726 | 29 | % | 67,726 | 29 | % | 32,702 | 4 | % | ||||||||||||||||||||
Customer L | 1,995 | 1 | % | 38,040 | 16 | % | 38,040 | 16 | % | 20,156 | 3 | % | ||||||||||||||||||||
Customer A | 35,128 | 19 | % | 13,057 | 6 | % | ||||||||||||||||||||||||||
Customer I | 42,444 | 24 | % | 6,502 | 3 | % | ||||||||||||||||||||||||||
Customer J | 33,380 | 19 | % | 6,571 | 3 | % | ||||||||||||||||||||||||||
112,947 | 63 | % | 131,896 | 57 | % | 118,823 | 51 | % | 682,835 | 88 | % | |||||||||||||||||||||
hh ) | Recent Accounting Pronouncements |
( hh ) | Recent Accounting Pronouncements (Continued) |
As of December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
RMB | RMB | |||||||||||||||
Investments accounted for at fair value | ||||||||||||||||
Listed equity securities | 840 | 0 | 0 | 840 | ||||||||||||
As of | ||||
December 31, 2021 | ||||
RMB | ||||
Cash | 1,954 | |||
Intangible assets — Insurance adjusting licenses | 3,067 | |||
Intangible assets — Insurance agency licenses | 12,336 | |||
Accounts receivable, net of allowance for doubtful accounts | 37 | |||
Prepaid expense and other receivables | 194 | |||
Property, plant and equipment, net | 19 | |||
Intangible assets, net | 30 | |||
Total assets acquired | 17,637 | |||
Accounts payable | (3 | ) | ||
Payroll and welfare payable | (22 | ) | ||
Income taxes payable | (2 | ) | ||
Deferred tax liabilities | (3,851 | ) | ||
Total liabilities assumed | (3,878 | ) | ||
Net assets acquired | 13,759 | |||
As of | ||||||||||||||||
December 31, 2019 | December 31, 2020 | As of | ||||||||||||||
RMB | RMB | December 31, 2020 | December 31, 2021 | |||||||||||||
RMB | RMB | |||||||||||||||
Accounts receivable | 181,520 | 234,313 | 234,313 | 780,431 | ||||||||||||
Less: allowance for doubtful accounts | (1,127 | ) | (1,724 | ) | (1,724 | ) | (3,169 | ) | ||||||||
Accounts receivable, net | 180,393 | 232,589 | 232,589 | 777,262 | ||||||||||||
As of | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
RMB | RMB | |||||||
Balance at the beginning of the year | 574 | 1,127 | ||||||
Provision for doubtful accounts | 626 | 709 | ||||||
Write-offs | (73 | ) | (112 | ) | ||||
Balance at the end of the year | 1,127 | 1,724 | ||||||
6. Related party balances and transactions |
Entity or individual name | Relationship with the Group | |
Cunjun Ma | Chief Executive Officer and Director of the Group | |
Individual Director or Officer | Directors or Officers of the Group | |
Shareholders and minority shareholders | Shareholders and minority shareholders |
As of | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
RMB | RMB | |||||||
Amounts due from related parties | ||||||||
Shareholders | 280 | 251 | ||||||
280 | 251 | |||||||
Xiaoke Huixuan (Shenzhen) Technology Co., Ltd. (“Xiaoke”) | ||||||||
Company that the Group has significant influence | ||||||||
For the year ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Technology service fee to Xiaoke | 0— | 0— | 11,609 | |||||||||
Others | 0— | 0— | 552 | |||||||||
Total | 0— | 0— | 12,161 | |||||||||
6. Related party balances and transactions (Continued) Details of related party balances as of December 31, 2020 and 2021 are as follows: Amounts due from related parties:
The amount due from related parties represents the advance miscellaneous fees for shareholders. Amounts due to related parties:
The amount due to Xiaoke represents the payable for technology service. F-4 1 HUIZE HOLDING LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (All amounts in thousands, except share data, or otherwise noted) 7. Prepaid expenses and other receivables and other assets |
As of | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
RMB | RMB | |||||||
Current portion: | ||||||||
Prepaid input value-added tax | 6,000 | 15,331 | ||||||
Advances to suppliers | 7,341 | 11,523 | ||||||
Rental and other deposits | 4,697 | 11,285 | ||||||
Advances to share repurchase (note 14) | — | 4,479 | ||||||
Interest receivables (a) | 2,372 | 908 | ||||||
Directors and Officers Liability Insurance premium | 5,181 | 558 | ||||||
Advances to staff (b) | 402 | 395 | ||||||
Claim advance on behalf of insurer | 1,671 | 371 | ||||||
Government subsidy | 1,378 | 0 | ||||||
Others | 154 | 117 | ||||||
29,196 | 44,967 | |||||||
Less: Allowance for impairment | — | (590 | ) | |||||
29,196 | 44,377 | |||||||
Non-Current portion: | ||||||||
Capitalized IPO expenses | 13,746 | 0 | ||||||
Advances to long-term assets | 417 | 838 | ||||||
14,163 | 838 | |||||||
As of | ||||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB | RMB | |||||||
Current portion: | ||||||||
Prepaid input value-added tax | 15,331 | 44,017 | ||||||
Rental and other deposits | 11,285 | 14,532 | ||||||
Advances to suppliers | 11,523 | 13,731 | ||||||
Interest receivables (a) | 908 | 2,177 | ||||||
Advances to staff (b) | 395 | 970 | ||||||
Directors and officers liability insurance premium | 558 | 658 | ||||||
Claim advance on behalf of insurer | 371 | 77 | ||||||
Advances to share repurchase | 4,479 | — | ||||||
Others | 117 | 1,939 | ||||||
44,967 | 78,101 | |||||||
Less: Allowance for impairment | (590 | ) | (590 | ) | ||||
44,377 | 77,511 | |||||||
Non- portion:current | ||||||||
Prepayment related to investment | — | 200 | ||||||
Advances to long-term assets | 838 | 179 | ||||||
838 | 379 | |||||||
(a) | This represented accrued interest income on bank deposits. |
(b) | This represented advances to staff of the Group for daily business operations which are unsecured, interest-free and repayable on demand. |
As of | ||||||||||||||||
December 31, 2019 | December 31, 2020 | As of | ||||||||||||||
RMB | RMB | December 31, 2020 | December 31, 2021 | |||||||||||||
RMB | RMB | |||||||||||||||
Computer and electronic equipment | 12,478 | 17,313 | 17,313 | 31,041 | ||||||||||||
Leasehold improvements | 4,873 | 4,958 | 4,958 | 27,238 | ||||||||||||
Office furniture and equipment | 2,774 | 2,820 | 2,820 | 10,755 | ||||||||||||
Motor vehicles | 987 | 2,360 | 2,360 | 2,443 | ||||||||||||
Total | 21,112 | 27,451 | 27,451 | 71,477 | ||||||||||||
Less: Accumulated depreciation (1) | (13,106 | ) | (17,200 | ) | (17,200 | ) | (23,016 | ) | ||||||||
Property, equipment and equipment, net | 8,006 | 10,251 | 10,251 | 48,461 | ||||||||||||
(1) | Depreciation expenses for the years ended December 31, |
As of | As of | |||||||||||||||
December 31, 2019 | December 31, 2020 | December 31, 2020 | December 31, 2021 | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Insurance agency license (note 4) | — | 12,336 | ||||||||||||||
Insurance adjusting license (note 4) | — | 3,067 | ||||||||||||||
Insurance brokerage license | — | 2,647 | ||||||||||||||
Software and system | 2,141 | 2,943 | 2,943 | 5,436 | ||||||||||||
Domain name | 580 | 580 | 580 | 580 | ||||||||||||
Total | 2,721 | 3,523 | 3,523 | 24,066 | ||||||||||||
Less: Accumulated amortization (1) | (1,069 | ) | (1,493 | ) | (1,493 | ) | (2,440 | ) | ||||||||
Intangible assets, net | 1,652 | 2,030 | 2,030 | 21,626 | ||||||||||||
(1) | Amortization expenses for the years ended December 31, |
As of | ||||
December 31, 2020 | ||||
RMB | ||||
2021 | 512 | |||
2022 | 466 | |||
2023 | 354 | |||
2024 | 311 | |||
2025 | 211 |
As of | ||||
December 31, 2021 | ||||
RMB | ||||
2022 | 1,164 | |||
2023 | 1,051 | |||
2024 | 734 | |||
2025 | 445 | |||
2026 | 66 |
Equity securities without readily determinable fair value | Equity Method | Total | ||||||||||
RMB | RMB | RMB | ||||||||||
Balances at January 1, 2018 | 10,000 | 7,765 | 17,765 | |||||||||
Additions | 2,500 | — | 2,500 | |||||||||
Share of earnings/(loss) of an equity investee | — | 1,310 | 1,310 | |||||||||
Balances at December 31, 2018 | 12,500 | 9,075 | 21,575 | |||||||||
Balances at January 1, 2019 | 12,500 | 9,075 | 21,575 | |||||||||
Additions | 2,000 | — | 2,000 | |||||||||
Share of earnings/(loss) of an equity investee | — | (180 | ) | (180 | ) | |||||||
Balances at December 31, 2019 | 14,500 | 8,895 | 23,395 | |||||||||
Balances at January 1, 2020 | 14,500 | 8,895 | 23,395 | |||||||||
Additions | 1,000 | 21,450 | 22,450 | |||||||||
Share of earnings/(loss) of an equity investee | — | 239 | 239 | |||||||||
Reclassification | 9,195 | (9,195 | ) | — | ||||||||
Balances at December 31, 2020 | 24,695 | 21,389 | 46,084 | |||||||||
Equity investments measured under measurement alternative | Equity Method | Investment accounted for at fair value | Equity investments measured under NAV practical expedient | Total | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
Balances at January 1, 2019 | 12,500 | 9,075 | 0— | 0— | 21,575 | |||||||||||||||
Additions | 2,000 | 0— | 0— | 0— | 2,000 | |||||||||||||||
Share of earnings/(loss) of an equity investee | 0— | (180 | ) | 0— | 0— | (180 | ) | |||||||||||||
Balances at December 31, 2019 | 14,500 | 8,895 | 0— | 0— | 23,395 | |||||||||||||||
Balances at January 1, 2020 | 14,500 | 8,895 | 0— | 0— | 23,395 | |||||||||||||||
Additions | 1,000 | 21,450 | 0— | 0— | 22,450 | |||||||||||||||
Share of earnings/(loss) of an equity investee | 0— | 239 | 0— | 0— | 239 | |||||||||||||||
Reclassification | 9,195 | (9,195 | ) | 0— | 0— | 0— | ||||||||||||||
Balances at December 31, 2020 | 24,695 | 21,389 | 0— | 0— | 46,084 | |||||||||||||||
Balances at January 1, 2021 | 24,695 | 21,389 | 0— | 0— | 46,084 | |||||||||||||||
Additions | 12,500 | 9,900 | 4,641 | 6,373 | 33,414 | |||||||||||||||
Share of earnings/(loss) of an equity investee | 0— | 2,660 | 0— | 0— | 2,660 | |||||||||||||||
Fair value change | 0— | 0— | (1,339 | ) | (2,885 | ) | (4,224 | ) | ||||||||||||
Realized gain/(loss) | 0— | 0— | 265 | 0— | 265 | |||||||||||||||
Exchange adjustments | 0— | 0— | 203 | 29 | 232 | |||||||||||||||
Impairment | (1,610 | ) | 0— | 0— | 0— | (1,610 | ) | |||||||||||||
Disposal | (890 | ) | 0— | (2,930 | ) | 0— | (3,820 | ) | ||||||||||||
Balances at December 31, 2021 | 34,695 | 33,949 | 840 | 3,517 | 73,001 | |||||||||||||||
As of | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
RMB | RMB | |||||||
Bank borrowings (1) | 30,000 | 30,000 | ||||||
Current portion of long-term borrowings (note 13) | 6,880 | 1,540 | ||||||
36,880 | 31,540 | |||||||
As of | ||||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB | RMB | |||||||
Bank borrowings (1) | 30,000 | 170,000 | ||||||
Current portion of long-term borrowings (note 15) | 1,540 | 46,710 | ||||||
31,540 | 216,710 | |||||||
(1) | The Group obtained short-term borrowings to support its operation. The borrowings bear interest 4.50% for the year ended December 31, 2020 and interest ranging from for the year ended December 31, |
As of | ||||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB | RMB | |||||||
Other tax payables | 12,797 | 32,006 | ||||||
Other payable to suppliers | 4,208 | 17,365 | ||||||
Accrued marketing expense -loyalty points | 3,175 | 7,414 | ||||||
Professional fees | 5,623 | 7,068 | ||||||
Advances from the insured | 3,047 | 3,211 | ||||||
Interest payable | 206 | 655 | ||||||
Deposits | 312 | 625 | ||||||
Government housing benefit | 800 | 0 | ||||||
Others | 985 | 2,911 | ||||||
31,153 | 71,255 | |||||||
As of | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
RMB | RMB | |||||||
Current portion: | ||||||||
Other tax payables | 7,469 | 12,797 | ||||||
Professional fees | 9,807 | 5,623 | ||||||
Other payable to suppliers | 5,992 | 4,208 | ||||||
Accrued marketing expense -loyalty points | 595 | 3,175 | ||||||
Advances from the insured | 3,593 | 3,047 | ||||||
Government housing benefit | 840 | 800 | ||||||
Deposits | 269 | 312 | ||||||
Interest payable | 53 | 206 | ||||||
Rental expense payable | 637 | — | ||||||
Others | 956 | 985 | ||||||
30,211 | 31,153 | |||||||
Non-Current portion: | ||||||||
Payables for long-term assets | 518 | — | ||||||
Other non-current liabilities total | 518 | — | ||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | For the Year Ended December 31, | |||||||||||||||||||||
RMB | RMB | RMB | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||||||
Current income tax expense | 88 | 37 | 2,234 | 37 | 2,234 | 0 | ||||||||||||||||||
Deferred income tax expense/(benefit) | 190 | 20 | (466 | ) | 20 | (466 | ) | 0 | ||||||||||||||||
Income tax expense | 278 | 57 | 1,768 | 57 | 1,768 | 0 | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | For the Year Ended December 31, | |||||||||||||||||||||
RMB | RMB | RMB | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||||||
Profit/(Loss) before income tax | 3,206 | 15,025 | (16,524 | ) | 15,025 | (16,524 | ) | (107,717 | ) | |||||||||||||||
Tax expense/(benefit) at EIT tax rate of 25% | 802 | 3,756 | (4,131 | ) | 3,756 | (4,131 | ) | (26,929 | ) | |||||||||||||||
Effect of different tax rates applicable to different subsidiaries of the Group | 6,381 | (3,394 | ) | 490 | (3,394 | ) | 490 | (3,195 | ) | |||||||||||||||
Changes in valuation allowance | (9,343 | ) | (24,412 | ) | 1,290 | (24,412 | ) | 1,290 | 37,948 | |||||||||||||||
Investment income not subject to tax | (17 | ) | (171 | ) | (34 | ) | (171 | ) | (34 | ) | (769 | ) | ||||||||||||
Expenses not deductible for tax purposes | 2,679 | 29,067 | 11,561 | 29,067 | 11,561 | 2,872 | ||||||||||||||||||
Research and development tax credit | (3,261 | ) | (4,789 | ) | (7,408 | ) | (4,789 | ) | (7,408 | ) | (12,627 | ) | ||||||||||||
Effect on deferred tax assets due to change in tax rates | 3,037 | — | — | — | — | 2,700 | ||||||||||||||||||
Income tax expense | 278 | 57 | 1,768 | 57 | 1,768 | 0 | ||||||||||||||||||
December 31, 2019 | December 31, 2020 | |||||||||||||||
RMB | RMB | December 31, 2020 | December 31, 2021 | |||||||||||||
RMB | RMB | |||||||||||||||
Deferred tax assets | ||||||||||||||||
Advertising expenses | 0 | 1,105 | ||||||||||||||
Net accumulated losses carry forward | 30,177 | 31,218 | 31,218 | 67,714 | ||||||||||||
Depreciation and amortization | 118 | 160 | 160 | 271 | ||||||||||||
Allowance for doubtful accounts | 251 | 575 | 575 | 940 | ||||||||||||
Accrued expenses | 2,729 | 3,153 | 3,153 | 4,171 | ||||||||||||
Less: valuation allowance | (33,211 | ) | (34,501 | ) | (34,501 | ) | (73,596 | ) | ||||||||
Net deferred tax assets | 64 | 605 | 605 | 605 | ||||||||||||
Deferred tax liabilities | ||||||||||||||||
Intangible assets | 0 | 4,287 | ||||||||||||||
Gain on equity method investee | 530 | 605 | 605 | 605 | ||||||||||||
Net deferred tax liabilities | 530 | 605 | 605 | 4,892 | ||||||||||||
For the years Ended December 31, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | For the years Ended December 31, | |||||||||||||||||||||
RMB | RMB | RMB | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||||||
Balance at the beginning of the year | 66,966 | 57,623 | 33,211 | 57,623 | 33,211 | 34,501 | ||||||||||||||||||
Additions | 7,182 | 2,173 | 7,318 | 2,173 | 7,318 | 37,961 | ||||||||||||||||||
Acquisition of subsidiaries | 0 | 0 | 1,147 | |||||||||||||||||||||
Reversals | (16,525 | ) | (26,585 | ) | (6,028 | ) | (26,585 | ) | (6,028 | ) | (13 | ) | ||||||||||||
Balance at end of the year | 57,623 | 33,211 | 34,501 | 33,211 | 34,501 | 73,596 | ||||||||||||||||||
Maturity | Principal | Interest Rate | As of | |||||||||||||||||||||||||||||||||
Type | Maturity Date | Principal Amount | Interest Rate Per Annum | As of | Date | Amount | Per Annum | December 31, 2020 | December 31, 2021 | |||||||||||||||||||||||||||
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Bank loan | September 30, 2020 | 15,000 | 7.00 | % | 6,818 | 0 | ||||||||||||||||||||||||||||||
Bank loan | October 1, 2020 | 25,000 | 7.00 | % | 62 | 0 | ||||||||||||||||||||||||||||||
Bank loan | May 20, 2022 | 20,000 | 4.60 | % | 0 | 20,000 | May 20, 2022 | 20,000 | 4.60 | % | 20,000 | 20,000 | ||||||||||||||||||||||||
Bank loan | May 19, 2023 | 20,000 | 4.75 | % | 0 | 20,000 | May 19, 2023 | 20,000 | 4.75 | % | 20,000 | 20,000 | ||||||||||||||||||||||||
Bank loan | July 19, 2022 | 15,400 | 3.85 | % | 15,400 | July 19, 2022 | 29,400 | 3.85 | % | 15,400 | 26,710 | |||||||||||||||||||||||||
Total | 6,880 | 55,400 | 55,400 | 66,710 | ||||||||||||||||||||||||||||||||
Less: Current portion of long-term borrowings | Less: Current portion of long-term borrowings | (6,880 | ) | (1,540 | ) | Less: Current portion of long-term borrowings | (1,540 | ) | (46,710 | ) | ||||||||||||||||||||||||||
0 | 53,860 | 53,860 | 20,000 | |||||||||||||||||||||||||||||||||
Series A Shares | Series B Shares | Series B+ Shares | Series B++ Shares | Series A Shares | Series B Shares | Series B+ Shares | Series B++ Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount (RMB) | Number of Shares | Amount (RMB) | Number of Shares | Amount (RMB) | Number of Shares | Amount (RMB) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2018 | 204,022,000 | 73,225 | 185,512,580 | 223,998 | 43,937,180 | 70,005 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 16,574,460 | 25,427 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Shares redemption value accretion | — | 5,165 | — | 17,920 | — | 5,601 | — | 432 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2018 | 204,022,000 | 78,390 | 185,512,580 | 241,918 | 43,937,180 | 75,606 | 16,574,460 | 25,859 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount (RMB) | Number of Shares | Amount (RMB) | Number of Shares | Amount (RMB) | Number of Shares | Amount (RMB) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2019 | 204,022,000 | 78,390 | 185,512,580 | 241,918 | 43,937,180 | 75,606 | 16,574,460 | 25,859 | 204,022,000 | 78,390 | 185,512,580 | 241,918 | 43,937,180 | 75,606 | 16,574,460 | 25,859 | ||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Shares redemption value accretion | — | 5,682 | — | 19,354 | — | 6,048 | — | 1,770 | — | 5,682 | — | 19,354 | — | 6,048 | — | 1,770 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2019 | 204,022,000 | 84,072 | 185,512,580 | 261,272 | 43,937,180 | 81,654 | 16,574,460 | 27,629 | 204,022,000 | 84,072 | 185,512,580 | 261,272 | 43,937,180 | 81,654 | 16,574,460 | 27,629 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2020 | 204,022,000 | 84,072 | 185,512,580 | 261,272 | 43,937,180 | 81,654 | 16,574,460 | 27,629 | 204,022,000 | 84,072 | 185,512,580 | 261,272 | 43,937,180 | 81,654 | 16,574,460 | 27,629 | ||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Shares redemption value accretion | — | 788 | — | 2,634 | — | 701 | — | 151 | — | 788 | — | 2,634 | — | 701 | — | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion and re-designation of preferred shares into Class A common shares | (204,022,000 | ) | (84,860 | ) | (185,512,580 | ) | (263,906 | ) | (43,937,180 | ) | (82,355 | ) | (16,574,460 | ) | (27,780 | ) | (204,022,000 | ) | (84,860 | ) | (185,512,580 | ) | (263,906 | ) | (43,937,180 | ) | (82,355 | ) | (16,574,460 | ) | (27,780 | ) | ||||||||||||||||||||||||||||||||
Balances as of December 31, 2020 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0— | 0— | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2021 | 0— | 0— | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the year Ended December 31, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | For the year Ended December 31, | |||||||||||||||||||||
RMB | RMB | RMB | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||||||
Cost of revenue | 9 | 43 | 410 | 43 | 410 | (387 | ) | |||||||||||||||||
Selling expenses | 110 | 6,514 | 10,642 | 6,514 | 10,642 | (475 | ) | |||||||||||||||||
General and administrative expenses | 726 | 87,980 | 40,820 | 87,980 | 40,820 | (665 | ) | |||||||||||||||||
Research and development expenses | 122 | 421 | 381 | 421 | 381 | (297 | ) | |||||||||||||||||
967 | 94,958 | 52,253 | 94,958 | 52,253 | (1,824 | ) | ||||||||||||||||||
Number of options | Weighted Average exercise price | Aggregate intrinsic value RMB | Number of options | Weighted Average exercise price | Aggregate intrinsic value | |||||||||||||||||||
RMB | ||||||||||||||||||||||||
Outstanding at January 1, 2018 | 12,860,000 | 0.53 | ||||||||||||||||||||||
Granted | 316,360 | 1.42 | ||||||||||||||||||||||
Exercised | — | — | ||||||||||||||||||||||
Forfeited | (2,080,000 | ) | 0.55 | |||||||||||||||||||||
Outstanding at January 1, 2019 | 11,096,360 | 0.55 | 11,096,360 | 0.55 | ||||||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||||||
Exercised | (7,420,000 | ) | 0.56 | (7,420,000 | ) | 0.56 | ||||||||||||||||||
Forfeited | (3,676,360 | ) | 0.52 | (3,676,360 | ) | 0.52 | ||||||||||||||||||
Outstanding at December 31, 2019 | — | — | — | — | — | — | ||||||||||||||||||
Exercisable at December 31, 2019 | — | — | — | — | — | — | ||||||||||||||||||
Number of options | Weighted Average exercise price (US$) | |||||||||||||||
Number of options | Weighted Average exercise price (US$) | |||||||||||||||
Outstanding at January 1, 2019 | — | — | — | — | ||||||||||||
Granted | 19,463,440 | 0.1607 | 19,463,440 | 0.1607 | ||||||||||||
Exercised | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Outstanding at December 31, 2019 | 19,463,440 | 0.1607 | 19,463,440 | 0.1607 | ||||||||||||
Vested and exercisable at December 31, 2019 | — | — | — | — | ||||||||||||
Outstanding at January 1, 2020 | 19,463,440 | 0.1607 | 19,463,440 | 0.1607 | ||||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | (707,396 | ) | 0.1607 | (707,396 | ) | 0.1607 | ||||||||||
Forfeited | (2,601,993 | ) | — | (2,601,993 | ) | 0.1607 | ||||||||||
Outstanding at December 31, 2020 | 16,154,051 | 0.1607 | 16,154,051 | 0.1607 | ||||||||||||
Vested and exercisable at December 31, 2020 | 5,004,126 | 0.1607 | 5,004,126 | 0.1607 | ||||||||||||
Outstanding at January 1, 2021 | 16,154,051 | 0.1607 | ||||||||||||||
Granted | 21,631,945 | 0.1609 | ||||||||||||||
Exercised | (201,040 | ) | 0.1607 | |||||||||||||
Forfeited | (740,231 | ) | 0.1607 | |||||||||||||
Outstanding at December 31, 2021 | 36,844,725 | 0.1608 | ||||||||||||||
Vested and exercisable at December 31, 2021 | 11,884,664 | 0.1709 | ||||||||||||||
As of December 31, 2020 | As of December 31, 2021 | |||||||||||||||||||||||||||||||
Options number | Weighted average exercise price per option | Weighted average remaining contractual life (years) | Aggregate intrinsic value | Options number | Weighted average exercise price per option | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||||||||||||||
US$ | US$ in thousand | US$ | US$ | |||||||||||||||||||||||||||||
in thousand | ||||||||||||||||||||||||||||||||
Outstanding | 16,154,051 | 0.1607 | 8.50 | 3,059 | 36,844,725 | 0.1608 | 8.71 | 0 | ||||||||||||||||||||||||
Exercisable | 5,004,126 | 0.1607 | 8.50 | 948 | 11,884,664 | 0.1709 | 7.97 | 0 | ||||||||||||||||||||||||
Expected to vest | 11,149,925 | 0.1607 | 8.50 | 2,111 | 24,960,061 | 0.1560 | 9.07 | 0 |
Weighted average | ||||||||
2020 | 2021 | |||||||
Exercise price (US$) | 0.1607 | 0.1608 | ||||||
Expected forfeiture rate (post-vesting) | 8.30 | % | 10.85 | % | ||||
Expected volatility | 39.58 | % | 40.57 | % | ||||
Excepted term (in years) | 8.50 | 8.71 | ||||||
Expected dividend yield | 0 | % | 0 | % | ||||
Risk-free interest rate | 0.7782 | % | 1.4658 | % |
Options to Employees | Weighted Average Grant-Date Fair Value | |||||||||||||||
Options to Employees | Weighted Average Grant-Date Fair Value | |||||||||||||||
Non-vested at January 1, 2019 | — | — | — | — | ||||||||||||
Granted | 23,809,190 | 4.20 | 23,809,190 | 4.20 | ||||||||||||
Vested | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Non-vested at December 31, 2019 | 23,809,190 | 4.20 | 23,809,190 | — | ||||||||||||
Non-vested at January 1, 2020 | 23,809,190 | 4.20 | 23,809,190 | — | ||||||||||||
Granted | — | — | — | — | ||||||||||||
Vested | (7,000,739 | ) | — | (7,000,739 | ) | — | ||||||||||
Forfeited | (3,475,844 | ) | — | (3,475,844 | ) | — | ||||||||||
Non-vested at December 31, 2020 | 13,332,607 | 4.20 | 13,332,607 | — | ||||||||||||
Non-vested at January 1, 2021 | 13,332,607 | — | ||||||||||||||
Granted | 320,000 | 2.49 | ||||||||||||||
Vested | (4,925,510 | ) | — | |||||||||||||
Forfeited | (613,553 | ) | — | |||||||||||||
Non-vested at December 31, 2021 | 8,113,544 | — | ||||||||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Brokerage income | ||||||||||||
-Life and Health insurance business | 902,596 | 1,166,118 | 2,170,767 | |||||||||
-Property and Casualty insurance business | 79,528 | 49,316 | 61,486 | |||||||||
Brokerage income subtotal | 982,124 | 1,215,434 | 2,232,253 | |||||||||
Other income | 11,195 | 4,788 | 12,763 | |||||||||
Total operating revenue | 993,319 | 1,220,222 | 2,245,016 | |||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Salaries and employment benefits | 97,000 | 129,327 | 222,428 | |||||||||
Advertising and marketing expenses | 47,927 | 71,472 | 97,945 | |||||||||
Rental and utilities expenses | 5,323 | 6,961 | 13,781 | |||||||||
Office expenses | 3,658 | 5,877 | 5,623 | |||||||||
Travelling expenses | 1,927 | 1,689 | 3,734 | |||||||||
Business development | 471 | 384 | 761 | |||||||||
Depreciation and amortizations | 289 | 444 | 680 | |||||||||
Share-based compensation expenses | 6,514 | 10,642 | (475 | ) | ||||||||
Others | 1,556 | 3,642 | 6,096 | |||||||||
Total | 164,665 | 230,438 | 350,573 | |||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Salaries and employment benefits | 35,547 | 51,457 | 87,321 | |||||||||
Rental and utilities expenses | 1,468 | 2,332 | 33,486 | |||||||||
Professional service expenses | 13,343 | 20,075 | 31,868 | |||||||||
Office expenses | 3,058 | 3,811 | 8,532 | |||||||||
Bank charges | 7,380 | 7,849 | 7,955 | |||||||||
Directors and Officers Liability Insurance premium | — | 6,127 | 7,798 | |||||||||
VAT Surcharge | 3,423 | 3,845 | 6,954 | |||||||||
Depreciation and amortizations | 1,538 | 1,875 | 2,195 | |||||||||
Travelling expenses | 2,682 | 1,648 | 1,675 | |||||||||
Bad debt expense | 626 | 1,218 | 1,445 | |||||||||
Share-based compensation expenses | 87,980 | 40,820 | (665 | ) | ||||||||
Other | 4,771 | 9,150 | 9,055 | |||||||||
Total | 161,816 | 150,207 | 197,619 | |||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Brokerage income | ||||||||||||
-Life and Health insurance business | 371,011 | 902,596 | 1,166,118 | |||||||||
-Property and Casualty insurance business | 132,536 | 79,528 | 49,316 | |||||||||
Brokerage income subtotal | 503,547 | 982,124 | 1,215,434 | |||||||||
Other income | 5,281 | 11,195 | 4,788 | |||||||||
Total operating revenue | 508,828 | 993,319 | 1,220,222 | |||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Salaries and employment benefits | 61,843 | 97,000 | 129,327 | |||||||||
Advertising and marketing expenses | 21,606 | 47,927 | 71,472 | |||||||||
Share-based compensation expenses | 110 | 6,514 | 10,642 | |||||||||
Rental and utilities expenses | 5,263 | 5,323 | 6,961 | |||||||||
Office expenses | 2,132 | 3,658 | 5,877 | |||||||||
Travelling expenses | 1,655 | 1,927 | 1,689 | |||||||||
Depreciation and amortizations | 383 | 289 | 444 | |||||||||
Business development | 466 | 471 | 384 | |||||||||
Others | 1,155 | 1,556 | 3,642 | |||||||||
Total | 94,613 | 164,665 | 230,438 | |||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Salaries and employment benefits | 28,963 | 35,547 | 51,457 | |||||||||
Share-based compensation expenses | 726 | 87,980 | 40,820 | |||||||||
Professional service expenses | 3,910 | 13,343 | 20,075 | |||||||||
Bank charges | 3,374 | 7,380 | 7,849 | |||||||||
Directors and Officers Liability Insurance premium | — | — | 6,127 | |||||||||
VAT Surcharge | 2,136 | 3,423 | 3,845 | |||||||||
Office expenses | 1,554 | 3,058 | 3,811 | |||||||||
Rental and utilities expenses | 1,158 | 1,468 | 2,332 | |||||||||
Depreciation and amortizations | 1,201 | 1,538 | 1,875 | |||||||||
Travelling expenses | 719 | 2,682 | 1,648 | |||||||||
Bad debt expense | 376 | 626 | 1,218 | |||||||||
Other | 2,060 | 4,771 | 9,150 | |||||||||
Total | 46,177 | 161,816 | 150,207 | |||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Interest on convertible bond | 26,249 | — | — | |||||||||
Interest expenses | 862 | 190 | 1,157 | |||||||||
Total | 27,111 | 190 | 1,157 | |||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | For the Year Ended December 31, | |||||||||||||||||||||
RMB | RMB | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net profit/(loss) | 2,928 | 14,968 | (18,292 | ) | 14,968 | (18,292 | ) | (107,717 | ) | |||||||||||||||
Less: Net profit/(loss) attributable to non-controlling interests | (224 | ) | 66 | — | 66 | — | (51 | ) | ||||||||||||||||
Net profit/(loss) attributable to common shares and redeemable preferred shares | 3,152 | 14,902 | (18,292 | ) | 14,902 | (18,292 | ) | (107,666 | ) | |||||||||||||||
Redeemable Preferred Shares redemption value accretion | (29,118 | ) | (32,854 | ) | (4,274 | ) | (32,854 | ) | (4,274 | ) | — | |||||||||||||
Allocation to redeemable preferred shareholders | (1,558 | ) | (7,431 | ) | 1,074 | (7,431 | ) | 1,074 | — | |||||||||||||||
Net loss attributable to common shareholders-Basic and diluted | (27,524 | ) | (25,383 | ) | (21,492 | ) | (25,383 | ) | (21,492 | ) | (107,666 | ) | ||||||||||||
Denominator: | ||||||||||||||||||||||||
Denominator for basic loss per share weighted-average common shares outstanding | 445,272,000 | 452,445,068 | 963,817,614 | 452,445,068 | 963,817,614 | 1,021,861,206 | ||||||||||||||||||
Dilutive effect of restricted shares | — | — | — | — | — | — | ||||||||||||||||||
Dilutive effect of share options | — | — | — | — | — | — | ||||||||||||||||||
Denominator for diluted loss per share weighted-average common shares outstanding | 445,272,000 | 452,445,068 | 963,817,614 | 452,445,068 | 963,817,614 | 1,021,861,206 | ||||||||||||||||||
Basic and diluted loss per share | (0.06 | ) | (0.06 | ) | (0.02 | ) | (0.06 | ) | (0.02 | ) | (0.11 | ) |
December 31, 2020 | ||||
As of December 31, 2020 | As of December 31, 2021 | |||||||
RMB | RMB | |||||||
Operating lease right-of-use | 267,352 | 247,819 | ||||||
Operating lease liabilities | 264,869 | 264,069 |
December 31, 2020 | ||||
For the Year Ended December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Operating lease cost | 8,293 | 46,102 | ||||||
Short term lease cost | 622 | 385 | ||||||
Total lease cost | 8,915 | 46,487 | ||||||
As of December 31, 2020 | ||||
RMB | ||||
2021 | 25,598 | |||
2022 | 21,922 | |||
2023 | 21,126 | |||
2024 | 33,303 | |||
2025 | 35,268 | |||
Thereafter | 210,502 | |||
Total operating lease payments (undiscounted) | 347,719 | |||
Less: Imputed interest | (82,850 | ) | ||
Total operating lease liabilities (discounted) | 264,869 | |||
As of December 31, 2021 | ||||
RMB | ||||
2022 | 28,261 | |||
2023 | 26,639 | |||
2024 | 34,196 | |||
2025 | 35,268 | |||
2026 | 37,400 | |||
Thereafter | 173,102 | |||
Total operating lease payments (undiscounted) | 334,866 | |||
Less: Imputed interest | (70,797 | ) | ||
Total operating lease liabilities (discounted) | 264,069 | |||
For the Year Ended December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Cash paid for amounts included in operating lease liabilities | 11,383 | 27,360 | ||||||
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||
Assets | ||||||||||||
Cash and cash equivalent | 187,217 | 16,291 | 2,556 | |||||||||
Contract assets | 216 | 0— | 0— | |||||||||
Amount due from related parties | 189 | 106 | 17 | |||||||||
Prepaid expense and other receivables | 131,895 | 291,666 | 45,770 | |||||||||
Long-term investments | 179,059 | 76,030 | 11,931 | |||||||||
Total assets | 498,576 | 384,093 | 60,274 | |||||||||
Liabilities and Shareholders’ equity | ||||||||||||
Other payables and accrued expenses | 14,836 | 17,892 | 2,808 | |||||||||
Contract liabilities | 0 | 4,555 | 715 | |||||||||
Payroll and welfare payable | 15,057 | 1,582 | 248 | |||||||||
Total liabilities | 29,893 | 24,029 | 3,771 | |||||||||
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||
Shareholders’ equity | ||||||||||||
Class A common shares (US$0.00001 par value; 7,000,000,000 shares authorized as of December 31, 2020 and 2021, respectively; 894,456,046 shares issued as of December 31, 2020 and 2021, respectively; 888,506,366 shares and 886,166,726 shares outstanding as of December 31, 2020 and 2021, respectively) | 62 | 62 | 10 | |||||||||
Class B common shares (US$0.00001 par value; 800,000,000 shares authorized as of December 31, 2020 and 2021, respectively; 150,591,207 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 10 | 10 | 2 | |||||||||
Treasury stock (896,180 shares and 3,436,860 shares as of December 31, 2020 and December 31, 2021, respectively) | (2,063 | ) | (9,545 | ) | (1,498 | ) | ||||||
Additional paid-in capital | 884,920 | 896,772 | 140,723 | |||||||||
Accumulated other comprehensive loss | (21,972 | ) | (27,295 | ) | (4,283 | ) | ||||||
Accumulated deficit | (392,274 | ) | (499,940 | ) | (78,451 | ) | ||||||
Total shareholders’ equity | 468,683 | 360,064 | 56,503 | |||||||||
Total liabilities and shareholders’ equity | 498,576 | 384,093 | 60,274 | |||||||||
Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | USD$ Note 2(f) | |||||||||||||
Operating revenue | ||||||||||||||||
Other income | — | 228 | 1,269 | 199 | ||||||||||||
Total operating revenue | — | 228 | 1,269 | 199 | ||||||||||||
Operating cost and expenses | ||||||||||||||||
General and administrative expenses | (521 | ) | (4,611 | ) | (5,994 | ) | (942 | ) | ||||||||
Operating loss | (521 | ) | (4,383 | ) | (4,725 | ) | (743 | ) | ||||||||
Other expense | ||||||||||||||||
Interest | — | 11 | 4 | 1 | ||||||||||||
Unrealized exchange (loss)/income | (97 | ) | 421 | — | — | |||||||||||
Loss before income tax, and share of loss of subsidiaries and VIEs | (618 | ) | (3,951 | ) | (4,721 | ) | (742 | ) | ||||||||
Share of income/(loss) of subsidiaries and VIEs | 15,520 | (14,341 | ) | (102,945 | ) | (16,154 | ) | |||||||||
Net profit/(loss) | 14,902 | (18,292 | ) | (107,666 | ) | (16,896 | ) | |||||||||
Redeemable preferred shares redemption value accretion | (32,854 | ) | (4,274 | ) | — | — | ||||||||||
Allocation to redeemable preferred shares | (7,431 | ) | 1,074 | — | — | |||||||||||
Net loss attributable to common shareholders | (25,383 | ) | (21,492 | ) | (107,666 | ) | (16,896 | ) | ||||||||
Net profit/(loss) | 14,902 | (18,292 | ) | (107,666 | ) | (16,896 | ) | |||||||||
Foreign currency translation adjustment, net of tax | 119 | (22,386 | ) | (5,323 | ) | (835 | ) | |||||||||
Total comprehensive income/(loss) | 15,021 | (40,678 | ) | (112,989 | ) | (17,731 | ) | |||||||||
Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | USD$ | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net profit/(loss) | 14,902 | (18,292 | ) | (107,666 | ) | (16,896 | ) | |||||||||
Adjustments to reconcile net profit/(loss) to net cash used in operating activities: | ||||||||||||||||
Unrealized exchange income/(loss) | 97 | (421 | ) | — | — | |||||||||||
Share of (income)/loss of subsidiaries and VIEs | (15,520 | ) | 14,341 | 102,945 | 16,154 | |||||||||||
Interest income | — | (11 | ) | — | — | |||||||||||
(521 | ) | (4,383 | ) | (4,721 | ) | (742 | ) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase/(decrease) in other payables and accrued expenses | 1,343 | (1,340 | ) | (4,730 | ) | (742 | ) | |||||||||
Increase/(decrease) in contract liabilities | 0 | — | 4,555 | 715 | ||||||||||||
(Increase)/decrease in prepaid expense and other receivables | (59 | ) | — | 21 | 3 | |||||||||||
(Increase)/decrease in other assets | (763 | ) | — | — | — | |||||||||||
(Increase)/decrease in account receivables and contract assets | — | (216 | ) | 216 | 34 | |||||||||||
(Increase)/decrease in amount due from related parties | — | (189 | ) | 83 | 13 | |||||||||||
Net cash used in operating activities | — | (6,128 | ) | (4,576 | ) | (719 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||
Investments in subsidiaries and consolidated VIEs | — | (245 | ) | (247 | ) | (39 | ) | |||||||||
Payments of inter-company balances | — | (139,123 | ) | (161,216 | ) | (25,298 | ) | |||||||||
Net cash used in investing activities | — | (139,368 | ) | (161,463 | ) | (25,337 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of common shares and redeemable preferred shares | 62 | — | — | — | ||||||||||||
Proceeds from initial public offering, net of issuance costs | — | 340,479 | — | — | ||||||||||||
Proceeds from exercise of options | — | 503 | 497 | 78 | ||||||||||||
Repurchase of Class A common shares | — | (2,063 | ) | (3,003 | ) | (471 | ) | |||||||||
Net cash provided by /(used in) financing activities | 62 | 338,919 | (2,506 | ) | (393 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (6,268 | ) | (2,381 | ) | (374 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash | 62 | 187,155 | (170,926 | ) | (26,823 | ) | ||||||||||
Total cash and cash equivalents and restricted cash at beginning of year | — | 62 | 187,217 | 29,378 | ||||||||||||
Total cash and cash equivalents and restricted cash at end of year | 62 | 187,217 | 16,291 | 2,555 | ||||||||||||
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||
Assets | ||||||||||||
Cash and cash equivalent | 62 | 187,217 | 28,692 | |||||||||
Contract assets | — | 216 | 33 | |||||||||
Amount due from related parties | — | 189 | 29 | |||||||||
Prepaid expense and other receivables | 8,480 | 131,895 | 20,214 | |||||||||
Long-term investments | 152,845 | 179,059 | 27,442 | |||||||||
Other assets | 763 | — | — | |||||||||
Total assets | 162,150 | 498,576 | 76,410 | |||||||||
Liabilities and Shareholders’ (Deficit)/equity | ||||||||||||
Other payables and accrued expenses | 16,176 | 14,836 | 2,274 | |||||||||
Payroll and welfare payable | — | 15,057 | 2,308 | |||||||||
Total liabilities | 16,176 | 29,893 | 4,582 | |||||||||
Mezzanine equity | ||||||||||||
Series A redeemable preferred shares (US$0.00001 par value per share; 204,022,000 shares and 204,022,000 shares authorized, issued and outstanding as of December 31, 2018 and 2019) | 84,072 | — | — | |||||||||
Series B redeemable preferred shares (US$0.00001 par value per share; 185,512,580 shares and 185,512,580 shares authorized, issued and outstanding as of December 31, 2018 and 2019) | 261,272 | — | — | |||||||||
Series B+ redeemable preferred shares (US$ 0.00001 par value per share; 43,937,180 shares and 43,937,180 shares authorized, issued and outstanding as of December 31, 2018 and 2019) | 81,654 | — | — | |||||||||
Series B++ redeemable preferred shares (US$0.00001 par value per share; 16,574,460 shares and 16,574,460 shares authorized, issued and outstanding as of December 31, 2018 and 2019) | 27,629 | — | — | |||||||||
Total mezzanine equity | 454,627 | — | — | |||||||||
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||
Shareholders’ (Deficit)/equity | ||||||||||||
Common shares (US$0.00001 par value; 483,310,373 shares and NaN shares issued and outstanding as of December 31, 2019 and 2020) | 33 | — | — | |||||||||
Class A common shares (US$0.00001 par value; NaN shares issued and outstanding as of December 31, 2019; 894,456,046 shares issued and 888,506,366 shares outstanding as of December 31, 2020) | — | 62 | 10 | |||||||||
Class B common shares (US$0.00001 par value; NaN and 150,591,207 s hares issued and outstanding as of December 31, 2019 and December 31, 2020, respectively) | — | 10 | 2 | |||||||||
Treasury stock (NaN and 896,180 shares as of December 31, 2019 and December 31, 2020, respectively) | — | (2,063 | ) | (316 | ) | |||||||
Additional paid-in capital | 64,882 | 884,920 | 135,620 | |||||||||
Accumulated other comprehensive income/(loss) | 414 | (21,972 | ) | (3,368 | ) | |||||||
Accumulated deficit | (373,982 | ) | (392,274 | ) | (60,120 | ) | ||||||
Total shareholders’ (deficit)/equity | (308,653 | ) | 468,683 | 71,828 | ||||||||
Total liabilities and shareholders’ (deficit)/equity | 162,150 | 498,576 | 76,410 | |||||||||
Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | USD$ Note 2(f) | ||||||||||||||
Operating revenue | ||||||||||||||||
Other income | — | — | 228 | 35 | ||||||||||||
Total operating revenue | — | — | 228 | 35 | ||||||||||||
Operating cost and expenses | ||||||||||||||||
General and administrative expenses | (50 | ) | (521 | ) | (4,611 | ) | (707 | ) | ||||||||
Operating loss | (50 | ) | (521 | ) | (4,383 | ) | (672 | ) | ||||||||
Other expense | ||||||||||||||||
Interest (expense)/income | (26,249 | ) | — | 11 | 2 | |||||||||||
Unrealized exchange (loss)/income | (325 | ) | (97 | ) | 421 | 65 | ||||||||||
Loss before income tax, and share of loss of subsidiaries and VIEs | (26,624 | ) | (618 | ) | (3,951 | ) | (605 | ) | ||||||||
Share of income/(loss) of subsidiaries and VIEs | 29,776 | 15,520 | (14,341 | ) | (2,198 | ) | ||||||||||
Net profit/(loss) | 3,152 | 14,902 | (18,292 | ) | (2,803 | ) | ||||||||||
Redeemable preferred shares redemption value accretion | (29,118 | ) | (32,854 | ) | (4,274 | ) | (655 | ) | ||||||||
Allocation to redeemable preferred shares | (1,558 | ) | (7,431 | ) | 1,074 | 165 | ||||||||||
Net loss attributable to common shareholders | (27,524 | ) | (25,383 | ) | (21,492 | ) | (3,293 | ) | ||||||||
Net profit/(loss) | 3,152 | 14,902 | (18,292 | ) | (2,803 | ) | ||||||||||
Foreign currency translation adjustment, net of tax | 295 | 119 | (22,386 | ) | (3,431 | ) | ||||||||||
Total comprehensive income/(loss) | 3,447 | 15,021 | (40,678 | ) | (6,234 | ) | ||||||||||
Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | USD$ | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net profit/(loss) | 3,152 | 14,902 | (18,292) | (2,803) | ||||||||||||
Adjustments to reconcile net profit/(loss) to net cash used in operating activities: | ||||||||||||||||
Unrealized exchange income/(loss) | 325 | 97 | (421) | (65) | ||||||||||||
Share of (income)/loss of subsidiaries and VIEs | (29,776) | (15,520 | ) | 14,341 | 2,198 | |||||||||||
Interest expense/(income) | 26,249 | — | (11) | (2) | ||||||||||||
(50) | (521) | (4,383) | (672) | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase/(decrease) in other payables and accrued expenses | 8,793 | 1,343 | (1,340) | (205) | ||||||||||||
(Increase)/decrease in prepaid expense and other receivables | (8,743) | (59) | (139,123) | (21,322) | ||||||||||||
(Increase)/decrease in other assets | — | (763) | — | — | ||||||||||||
(Increase)/decrease in account receivables and contract assets | — | — | (216 | ) | (33 | ) | ||||||||||
(Increase)/decrease in amount due from related parties | — | — | (189 | ) | (29 | ) | ||||||||||
Net cash (used in)/provided by operating activities | — | — | (145,251) | (22,261) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Investments in subsidiaries and consolidated VIEs | — | — | (245) | (38) | ||||||||||||
Net cash provided/(used in) by investing activities | — | — | (245) | (38) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of common shares and redeemable preferred shares | — | 62 | — | — | ||||||||||||
Proceeds from initial public offering, net of issuance costs | — | — | 340,479 | 52,181 | ||||||||||||
Proceeds from exercise of options | — | — | 503 | 77 | ||||||||||||
Repurchase of Class A common shares | — | — | (2,063) | (316) | ||||||||||||
Net cash provided by financing activities | — | 62 | 338,919 | 51,942 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (6,268) | (961) | ||||||||||||
Net increase in cash and cash equivalents and restricted cash | — | 62 | 187,155 | 28,682 | ||||||||||||
Total cash and cash equivalents and restricted cash at beginning of year | — | — | 62 | 10 | ||||||||||||
Total cash and cash equivalents and restricted cash at end of year | — | 62 | 187,217 | 28,692 | ||||||||||||