The Internet insurance service platform Huisuo updated its prospectus filed with the SEC on September 25th, which identified the listing location as NASDAQ.
Editor’s note: This article is from WeChat public account “IPO knows early” (ID: Ipozaozhidao), author Uncle C.
According to the IPO, the Internet insurance service platform chose to update its prospectus filed with the SEC on September 25th, which determined the listing location as NASDAQ.
According to the previous plan, Huixun plans to raise up to US$150 million in the form of issuing ADS (American Depositary Shares) under the symbol “HUIZ”. Morgan Stanley, Citibank and CICC will be the lead underwriters of the IPO and Tiger Securities will be the underwriters.
According to the prospectus, Huizhi Founding Team has been engaged in online insurance business since 2006. The main business model is to distribute insurance products underwritten by its partner insurance companies on its own platform and help them reach consumers of insurance products. As well as platform customers, in the process, Huixuan mainly earns income by collecting commissions from cooperative insurance companies.
At the same time, Huixuan also cooperated with insurance companies to launch comprehensive insurance covering health insurance, life insurance, accident insurance, travel insurance, corporate insurance, etc., focusing on long-term life insurance with a term of more than one year. Health insurance products. For the six months ended June 30, 2019, Huixuan provided a total of approximately 214 life and health insurance products and approximately 861 property and accident insurance products; during the same reporting period, life insurance and health insurance products were brought Commissions come to account for 89.8% of total revenue.
The prospectus quoted Oliver Wyman’s data as saying that Huixun is the largest third-party Internet long-term life insurance and health insurance service platform in China, based on 2018 total insurance premiums.
As of June 30, 2019, Huixuan has reached a cooperation with 67 insurance companies to provide services to 5.8 million policyholders. At the same time, the policyholders of the platform also have a younger trend. As of June 30, the average age of policyholders who purchase life insurance and health insurance through the platform is 32 years old.
Financial data shows that Huizhi’s total revenue in 2017 and 2018 was 263 million yuan and 509 million yuan respectively, an increase of 93.5%. It is worth noting that the adjusted net profit (Non-GAAP) in 2017 was a loss of 96.23 million yuan, and in 2018 it was turned into a profit, and the adjusted net profit was 30.14 million yuan.
As of June 30, 2019, Huizhi’s revenue was 451 million yuan, an increase of 147.8% compared with 182 million in the same period of 2018. The adjusted net profit was also 4.81 million yuan from the same period last year. Increased to 74.18 million yuan.
In terms of income structure, the commission generated by Huize through the platform to sell insurance products underwritten by insurance partners is the most important source, accounting for 95.5% and 99.0% of the total revenue in 2017 and 2018, respectively. This ratio also reached 99.2% in the first half of 2019. Among them, commission income from life insurance and health insurance accounted for 50.4% and 72.9% of the annual revenue, respectively, and Huizhi also expects this revenue to continue to be the company’s main source of income.
In the current shareholder structure, Ma Cunjun, founder and CEO of Huixuan, directly holds 16.1% of the company through Huidz Holding Limited, and A-share listed company Focus Technology (002315) holds 19.7% of the shares through Crov Global Holding Limited. Bodyguard Holding Limited, which holds 5.9% of the company’s shares, is Huizhi’s employee incentive platform.
Institutional investors, Safford Investment Fund held 21.0% through SAIF IV Healthcare (BVI) Limited, and the founder of Wanxiang Capital, Xiong Jun, held a 10.5% share through Wande Weirong Limited, creating a foreign investment through CDF Capital InsurTech Limited holds 8.7%, while Dachen Ventures holds a 5.1% stake in the company through Tianjin Kunzhi Enterprise Management Partnership.
Hui chooses in the prospectus that the funds raised will be used to improve its customer efficiency and risk control capabilities, design and development of more products, and for general company operations and potential investments.