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spk06: Ladies and gentlemen, thank you for standing by and welcome to WHOISER Holding Limited's first quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, we will have the question and answer session. Today's conference call is being recorded and the webcast replay will be available. Please visit the WHOISER's IR website at ir.whoiser.com under the events and webcast section. I'd now like to hand the conference over to your speaker host today, Ms. Harriet Hu, who is our Investor Relations Director. Please go ahead, Harriet.
spk04: Thank you, operator. Hello, everyone. Welcome to our earnings conference call for the first quarter of 2023. Our financial and operating results were released earlier today and are currently available on both our IR website and the Newswire. Before we continue, I would like to refer you to the safe harbor statement in our earnings press release, which also applies to this call, as we will be making forward-looking statements. Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained in our earnings press release and file links with the ACC. Joining us today are our founder and CEO, Mr. Chunjun Ma, COO, Mr. Li Jiang. Co-CFO, Mr. Minghan Xiao, and Co-CFO, Mr. Ron Tam. Mr. Ma will start a call by providing an overview of the company's performance and operational highlights for the first quarter of 2023. Mr. Tam will then provide details on the financial results for the period before we open up the call for questions. I will now turn the call over to Mr. Ma.
spk00: Hello. Welcome to the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first quarter of the first Compared with the fourth quarter of 2022, the three major indicators of insurance, income and profit have achieved a double growth. Basic plate stable development, the first quarter of the whole platform out of the total insurance has reached RMB19.3 billion, the return rate has increased by 33.4%, the total income is about RMB300 million, the return rate has increased by 15.7%. After adjustment,
spk04: Hello, everyone, and thank you for joining Huizi's first quarter 2023 earnings conference call. In the first quarter of 2023, as China's economy gradually recovers and the private consumption and consumer confidence improves, the insurance industry showed clear signs of revival. We leverage this positive trend by actively refining our product offerings and business strategies to strengthen our comprehensive online to offline O2O integrated digital insurance service ecosystem. As a result, Huize reported another set of remarkable results in the first quarter of 2023. On a sequential basis, total growth return premiums, or DWP, operating revenue and non-GAAP net profit all achieved double-digit growth during the period. Total GWP facilitated on our platform reached RMB 1.93 billion, marking a 33.4% sequential increase. Our total operating revenue and non-GAAP net profit also increased by 15.7% and 30.3% quarter-over-quarter to approximately RMB 300 million and RMB 18.4 million in the first quarter.
spk00: 32.8% of the new single insurance fee of Chu Xu County increased by 50.4% to 3.4 billion yuan. On the other hand, the long-term strategy advantage and its long-term effects continue to help us develop the price of insurance. In the first quarter, the total insurance fee ratio of the long-term line was 92.7%, which was higher than 90% in the 14 consecutive quarters. The long-term insurance fee was 12.7 billion yuan, which increased by 23.2%.
spk04: In terms of product mix, first year premium or FYP facilitated on our platform increased by 58.6% sequentially to approximately RMB 660 million. FYP of our long-term health insurance product and the savings product increased by 32.8% and 50.4% quarter over quarter to RMB 180 million and RMB 340 million, respectively, highlighting the high-quality growth driven by our comprehensive product offering. At the same time, we continue to benefit from our strategic focus on distributing long-term insurance products and the competitive edge we have established TWP contribution of our long-term insurance product was 92.7%, marking the 14th consecutive quarter above 90%. Renewal premiums also demonstrated significant growth, rising by 23.2% sequentially to RMB 1.27 billion.
spk00: Since the end of the first quarter, the platform has accumulated more than 8.7 million. Our core long-term users' image has always maintained its superiority. Among the long-term users of the first quarter, the customer ratio of customers in the second quarter and above is 66.2%, and the average age is 33.9 years old. At the same time, we will further release the value of the entire life cycle value of the operating users, and build an army of 4,120 yuan for the long-term At the end of the first quarter, our cumulative number of insurance clients reached 8.7 million.
spk04: we remain focused on targeting high-quality customers for our long-term insurance products. During the quarter, about 66.2% of our long-term insurance customers were from higher-tier cities with an average age of 33.9 years old. In terms of FYP, the average ticket size of long-term insurance products and savings products was approximately RMB 4,120 and RMB 44,000. During the quarter, demonstrating our success in unlocking the lifetime value of our users and indicating a positive trend in user engagement, as of February, Our cumulative persistency ratios for long-term insurance in the 13th and 25th months remained at industry high levels of more than 95%, indicating that our high-quality customers show a high level of stickiness and continue to generate stable revenue strength for both Hui Ze and our insured partners. 截至一季度末
spk00: will maintain a stable cooperation relationship with 104 insurance companies. In the first quarter, we noticed that the demand for child protection and family responsibility for users after 80 and 90 years of age is increasing day by day. In line with this market situation, we used return protection as the core, and launched the small peach machine No. 1, the Shao'er heavy-duty line, and the Dinghai pig No. 3, the Dingqi thin line, in order to provide users with a more comprehensive risk response plan. At the same time, we have upgraded and launched the gold satisfaction group No. 3 to increase life insurance in the form of a new double insurance person so that users can use their families as units to plan pension insurance and wealth inheritance In addition, our long-term health insurance, long-term medical insurance, which cooperates with Ping'an Health Insurance, is designed with 20-year warranty, family insurance discount and shared compensation. As of the end of the first quarter, we had cooperated with 104 insured partners. During the quarter, in response to the increasing demand for insurance coverage for children,
spk04: and the huge mortality protection gap. We launched Jiao Tao Qi, number one, a customized child critical illness insurance product, and Ding Hai Zhu, number three, a customized term life insurance product, both of which cater to the protection needs of younger generation customers. Additionally, we launched Xin Man Yi Zhu, number three, an increasing whole life insurance product with the option to convert the policy between single and joint insurance, providing flexibility for customers with pension and inheritance planning needs. We also partnered with Penang Health Insurance to co-develop Changxiang M, a cost-effective customized long-term medical insurance product that offers guaranteed policy renewals for 20 years, discounts on family subscriptions, and family deductible benefits. This product was well received by both customers and the industry and was named one of the most popular medical insurance products designed by insurance intermediaries in 2023. In the first quarter, GWP of our customized products accounted for 60.1% of total GWP.
spk00: Our online and offline integration layout and detailed user operation strategy will further reduce the cost of goods. The profit margin increased by 2.6% in the last quarter to 39.8%. At the same time, we will continue to effectively control the cost and optimize the organizational structure. The total revenue cost will drop by 20.2%, with the sales cost rate dropping by 5.9%. We will continue to stick to the long-term idea
spk04: In the first quarter, our growth margin reached 39.8%, up by 2.6 percentage points sequentially. The increase can be attributed to a reduction in our customer acquisition costs due to our successful O2O integration and the refined user management strategy. Meanwhile, we continued to maintain effective cost controls and optimize our organizational structure. As a result, our total operating expenses decreased by 20.2% year-over-year and our selling expense-to-income ratio declined by 5.9 percentage points on a year-over-year basis. Moving forward, we will maintain our dis-planned approach to cost control and continue improving operational efficiency to achieve sustainable business growth.
spk00: In the first quarter, we actively deployed the strategic layout of online purchase and online service, constantly deepening the integrated insurance service platform in the online market. Currently, we have 16 companies all over the country equipped with localized service teams. At the A-end, will grasp the opportunity of independent agents in the market, from helping agents to quickly select good products, timely survey of user needs, provide high response professional backup services, and so on. Let the agents focus on the customers, and provide customers with more professional services. At the same time, on the basis of the continuous growth of key regional institutions, we have completed the introduction of new regional offline products. In the first quarter,
spk04: We also wrote out our online purchase offline service strategy to deepen the O2O integration of our insurance service ecosystem during the first quarter. So far, we have six successfully established offline service teams in 16 key regions nationwide. In the QA segment, we capitalized on the market opportunities presented by independent agents and empowered them with product filtering tools and real-time insights into customer needs. We also provided insurance agents with efficient professional support enabling them to effectively acquire and engage with customers and deliver the utmost professional services. Moreover, we have expanded our localized operations to more regions and commenced product offerings in these regions. In the first quarter, FYP facilitated by the 2A business reached RMB 74.8 million. equivalent to one-third of the FYP from the 2A business in 2022, which demonstrates the increasing importance of our 2A strategy to our overall business growth.
spk00: At the C-end, the task is to continue the fine-tuning of regular operations, from goods, tourists, and live customers, to carry out precise layout, to integrate 18 customer demand indicators in four dimensions according to the algorithm, from multiple scenarios to the needs of customers, In the QC segment, we continued to refine our operations
spk04: with a strong emphasis on compliance and a strategic focus on customer acquisition, retention, and activation. To better serve our customers, we have deployed sophisticated algorithms that effectively integrate 18 distinct indicators of customer demand across four dimensions, allowing us to analyze customer demand across various scenarios. and make targeted recommendations of the most suitable products and services. In addition, we leverage our comprehensive CRM system to track customer outreach, analyze customer behavior and feedback, and develop tailored follow-up strategies and solutions. In the first quarter, through targeted promotions, branding and customer engagement activities We reached more than 70,000 users and achieved more than 10,000 sales conversions.
spk00: With the transformation of the insurance industry, digitalization and exclusive mode have become new breakthroughs. We believe that the future insurance intermediary market will grow at a high speed. We will consolidate HuiZhe as the core advantage of a step-by-step insurance intermediary platform to strengthen cooperation with insurance companies as the insurance industry undergoes gradual reform, digitalization and the independent agent business model will act as new growth drivers
spk04: we are confident that the insurance intermediary market will sustain the strong growth in the future. To capitalize on this trend, we will consolidate our core strengths as the leading insurance intermediary platform, strengthen our cooperation with our insured partners in areas such as strategy, operations, and processes, provide customers with the most suitable products and services to meet their needs, and drive deeper integration of our O2O ecosystem to enhance customer experience. Our primary goal is to fulfill the long-term protection needs of our customers while achieving sustainable revenue and net profit growth.
spk00: Next, please welcome our CFO, Ron.
spk04: This concludes my prepared remarks for today. I will now turn the call to our CFO, Mr. Ron Tam, and he will provide an overview of our key financial highlights for the first quarter.
spk01: Thank you, Mr. Ma and Harriet, and good evening to the audience in the Asia time zone, and good morning for those in the U.S. In the first quarter, the insurance industry in China experienced a gradual recovery, which is in line with the improving consumer confidence and household income. As operating conditions have improved, sector-wide growth within premiums increased 9% year-over-year to a number around 1.6 trillion RMB. Leveraging our omnichannel distribution ecosystem, we have achieved business growth that far outpaced and outperformed the overall market trajectory We delivered a 44% year-over-year and 33% quarter-on-quarter growth in total GWP facilitated on our platform, which has reached RMB 1.9 billion in the first quarter. We have also added 300,000 new customers to our ecosystem in Q1, which brings the total number to 8.7 million by the end of the first quarter. During the period, we have recorded a non-gap net profit of RMB 18 million, which is the second straight quarter of profitability. putting us on track to meet the full year non-GAAP net profit guidance of RMB 30 million, which we have given out to the market last quarter. This success can be attributed to the successful execution of our key business strategies. Firstly, we continued our strategic focus on long-term insurance products, with the GWP contribution from long-term products remaining at about 90% for the 14th consecutive quarter. Secondly, we continue to target high-quality new generation consumers and empower insurance agents throughout our omni-channel distribution platform, extensive product offerings, and advanced technology. Our 2A2C business line generated a very solid quarter, with total FYP of RMB 75 million alone in the first quarter, representing a year-over-year increase of over 400%. And lastly, we continue to focus on cost efficiency enhancements throughout the organizational structure, which leads to further cost savings and improvement in operating leverage. I will now recap the key highlights and takeaways from this quarter's operating results. First, total CWP increased by 33% sequentially, reaching 1.9 billion RMB. This growth was driven primarily by a quarter-on-quarter increase in both first-year premiums and renewal premiums of 58.6% and 23.2% respectively. Second, our persistency ratio for long-term life and health insurance remained at an industry high level. As of February, the 13th month persistency ratio stood at 97% and the 25th month persistency ratio stood at 96%. And third, the average ticket size for long-term savings insurance products was RMB 44,000 in the first quarter. This continues to reflect the sound quality and high potential lifetime value potential of our customer base. These overall positive metrics were primarily driven by our continuous efforts to deepen our user engagement and also convert upselling opportunities. In the first quarter, we saw a notable recovery in demand for long-term health insurance products, with FYP for this category increasing by 33% sequentially. We have also maintained our market leadership in long-term savings products and solidified our position in that market segment. The GWP contribution of our long-term insurance products remained above 90% for the 14th quarter. Looking ahead, we anticipate a more balanced product mix between the long-term health and long-term savings categories, which aligns with our evolving customer needs and with the market dynamics in the China context. The recovery in FYP helped drive a 16% sequential increase in our total operating revenue, which has reached RMB $299 million in the first quarter. We remain very focused on tightening our marketing channel costs and optimizing our group-wide structure to improve our profit margin and operational efficiency. As a result, our operating costs in Q1 increased at a slower pace than revenue, rising 11% in Q1 quarter-on-quarter to RMB $118 million. This has led to a healthy improvement in our gross margin to 39.8% from 37.2% in Q1. In Q1, our total operating expenses decreased by 20% yield per year. Our GAAP net profit and non-GAAP net profit were both approximately RMB 18 million in the first quarter, and this translates to a non-GAAP net margin of 6.2%. As of the end of the first quarter, we continue to maintain ample liquidity, as evidenced by a combined balance of cash and cash equivalents of RMB 230 million. We've continued to repurchase shares from the open market under our existing share repurchase program. And as of the end of the March quarter, we have repurchased an aggregate in this year, year-to-date, approximately 484,000 ADSs, which demonstrates our management's continued confidence in our business model and our long-term growth prospects. Moving forward, we will strengthen the integration of our O2O ecosystem. This should help us gain market share among high-quality, new-generation consumers and solidify our position as a top-tier insurance intermediary in China. We will also focus on providing a wide range of products and services across all scenarios and empowering independent agents and our insurer partners. As we improve our operational efficiency and allocate our capital more effectively, we will strive to enhance shareholder value and achieve sustainable business resilience. Now, turning to our outlook for the year. We remain optimistic regarding the sustained recovery in the domestic economy, consumer confidence, and consumption activity in China, which should provide a further boost to the insurance industry. With an anticipated macro recovery, our improved operational efficiency, our ability to continue to attract new mass affluent consumers, and our efforts in sales conversion and upselling, and in light of the better than expected performance in the first quarter, we are now revising upwards our outlook guidance and currently expect to achieve a non-GAAP net profit of not less than 50 million RMB in 2023. And with that, we will now open up the call to questions. Thanks and over to you, operator.
spk06: Thank you, dear participants. As a reminder, to ask a question, you need to press star 11 on your telephone keyboard and wait for your name to be announced. To withdraw your question, please press star 11 again. Dear participants, please state your question in Chinese language first and then in English. Now we're going to take our first question. And the first question comes from the line of Yu Yu Zhang from CICC. Your line is open. Please ask your question.
spk05: Hello, Mr. Guan. I am Zhang Yu, a member of Zhang Jin Group. First of all, congratulations to the company for achieving a very good performance in the first quarter. I am mainly concerned about the two issues related to the distribution of product sales. The first one is about the combination of a new product in the first quarter. How much is the current percentage of insurance or savings products? The second question is that we also pay attention to the domestic insurance products. The green and green line is under the background of the bottom line. How is the sales situation of Chu Xuxian in the second quarter of the company? How do we see the future of a sales hole in Chu Xuxian? The company also mentioned that the long-term health insurance of the first quarter is also in a warm recovery. As of now, has the situation changed? Did we see a strong recovery? Or is it still a state of low recovery? I've got two questions. And the first one is about the current product mix. So could you give us some more details on the product mix based on FYD in the first quarter? What's the proportion of saving products? And the second one is about the growth momentum. We know that previously China's insurance regulator has asked the insurers to lower estimated returns for newly launched products. So what's our savings product sales momentum in recent weeks. And we noticed that, too, you've mentioned in an earlier conference call that the company saw a mild recovery on long-term health product sales in the first quarter, and now we are at the end of May, so is there still a recovery? Thanks.
spk01: Thank you, Yu-Yu. It's Ron here. Regarding your first question on the FYP product mix in the first quarter, I think that we can break it down for you. So we have a total of $661 million of FYP, and of that, roughly $180 million is coming from protection, so coming from long-term health and term life products. So that $180 million number represents about 32% quarter-on-quarter growth. So that will give you some sense of the recovery in the long-term health space. And $340 million roughly is from the long-term savings segments, which includes the increasing crew life category and also the annuity category. So that number has increased by 50% quarter on quarter versus Q4. So roughly around 28% of the FYP in Q1 is from protection, roughly 51% of the FYP is from long-term savings. So that will be the product mix question. With respect to the second question on the downward revision on the so-called guaranteed return from 3.5 to 3.0 trend and how is that impacting sales, I think what we've seen in the second quarter is we are actually seeing increasing momentum of sales in the second quarter. with respect to probably the imminent transition to the 3.0% product pricing. So I think Q2 we should probably expect to see a larger increase in sales of this product versus Q1. But then going forward into the second half of the year, what we've seen in quarter two as well to date is that we are seeing a pickup in annuities, especially in China, it's called Yala Lianjin. So this category is actually picking up in momentum. And in the second quarter, we're seeing that the momentum should probably be continued towards the second half of the year when I think the market transitions from the increasing whole life product into annuities. And that's what we're expecting to see as an industry trend in China. But then in terms of the product mix for the second half, we probably will be seeing a more balanced mix between protection and savings, as likely the early consumption of savings product would mean that there will be more seasonality effect from the first half versus the second half in 2023 for the savings product category. So that will be the second question. And the third question regarding the long-term health, the protection product momentum. Q1, we definitely see a relatively robust recovery from Q4 of last year. Q4 was definitely very challenging from a macroeconomic standpoint in China. So Q1, we see that with consumer confidence recovery with increasing overconsumption, insurance property has been a beneficiary of the overall confidence and household income recovery. So Q1, we see a relatively robust recovery momentum. In Q2, we see that continuing, but the probably the pace of the growth would be somewhat more lukewarm than Q1. But then I think that the long-term health category as an absolute amount for Q2 would probably be more or less be around the same level as Q1. But then I think longer term, we see that with continued recovery in the macroeconomic picture, And we've continued improving in consumer confidence. We do expect long-term health or protection products to increase in terms of the proportion of the product mix in the second half of the year. So I think that will be the answer to your third question.
spk07: Thank you. Now we're going to take our next question.
spk06: Please stand by. And the next question comes from the line of Amy Chan from Citi. Your line is open. Please ask your question.
spk03: Hi, this is Amy from Citi. And first I want to congratulate the management on such a robust sequential growth in the first quarter. So my first question is regarding to the increasing whole life product. I'm just wondering what percentage it accounted for in terms of FYP and GWP facilitated in the first quarter as well as year-to-date. And in going into the third quarter and the fourth quarter, what kind of products mix are we looking at? And the second question is on brokerage income. If we look at it on a year-over-year basis, it's actually relatively flat. but actually we locked a very robust FYP growth in the first quarter. I'm wondering if, whether this has something to do with your 2A channel and then agent channel. Thank you.
spk01: Okay, thank you. So the two questions, I think the first question we probably have touched upon in the response to the question just now from CICC. The increasing whole life product in the first quarter, I think in terms of our public disclosure, we have lumped together the long-term savings product categories, which includes the increasing whole life and the annuities as a whole. So this category has accounted for 51%, 5-1% of our FYP for the first quarter. And if you are asking about the outlook for the rest of the year, I think in Q2, we probably see a higher proportion of our FYP coming from the increasing whole life slash annuities categories probably more than 51% in the second quarter but then that will come down in the second half as we transition to the new product pricing landscape as we all know from 3.5 to 3.0 so in Q3 we will see probably a relatively weak sales of long-term savings in the increasing whole life segment but then we do see that a complementary make-up from the annuities product, as we see that the growth momentum in the annuities category continues to be quite strong in Q2, year-to-date. So, second question on the brokerage income. Yes, we do acknowledge that the year-on-year growth on the brokerage income side is relatively flat. I think that has to do with mainly the lower commission rates, particularly with the savings product category. from this quarter versus the same for last year. So I think that the so-called tick rate decrease has been the main contribution factor to the recipe flat performance in mortgage income from last year to this year.
spk06: Thank you. Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced. Please state your questions in Chinese language first and then in English.
spk07: Now we're going to take our next question.
spk06: And the next question comes from from Guotai Junan Security. Your line is open. Please ask your question.
spk02: Thank you very much for giving me the opportunity to ask this question. I have two questions about the strategy. The first question is that the management team mentioned that our company is now implementing a integrated strategy of online buyers and online services. I would like the management team to give us a more detailed introduction to the current business layout of this strategy and how our company is considering what goals we can achieve through such a strategy. This is the first question. The second question is, We can also see that insurance companies in the past two years have gradually turned to creating insurance services, such as health insurance or medical insurance, such an ecosystem. So it's good for the insurance industry to do a good job. We also want to know if the company has any similar strategies in terms of customers and in terms of customers, what measures can we take? my first question is you mentioned that you have deployed an online purchase offline service strategy so could you elaborate more on this strategy and what do you aim to achieve with this strategy my second question is your major peers have moved towards creating health health and insurance or medicine and insurance to facilitate customer acquisition. So what are your key customer acquisition strategies and how do you plan to optimize your customer acquisition costs? Thank you.
spk01: Okay, thank you for the questions. So with respect to the first question on the online offline strategy, I think we have been telling the market for quite some time by now that we have always wanted to pursue an integrated model with online customer acquisition and offline customer service comprehensive kind of strategy. And this year we've been able to accelerate the development of this finally after the post-COVID era where we can really push things on the ground and to deploy human resources over the country. So by now we have already deployed significant human resources on the ground in over 17 provincial areas in China. So with respect to the specific locations, in addition to your traditional tier one and upper tier two cities, which we all know, and which will be necessary coverage for us already, we've further expanded our geographical coverage to places like Hubei, Jilin, Jiangsu, Zhejiang, So these areas are also representing the top 20 GDP per capita regions of China, and these are the important areas where we want to expand our offline coverage from a services standpoint. So to further expand on our strategy, I think we have already accumulated 8.7 million customers, paying customers on our platform, and we have reached to a point where we want to further improve our ability to service these customers and to further try to upsell these customers for higher value products, which includes insurance products, which also includes other products, for example, healthcare service, elder care services. And with the offline locations, we are now able to have a face-to-face interaction with these high value customers that we can try to upsell. And therefore, we will be able to further maximize the long-term value, the LTV potential of these high-quality customers, which we all have been witnessing in the last two years. We have started from a relatively lower ticket size protection product, a 4,000 RMB kind of critical illness product. Now we're already selling 40,000 RMB type of savings products like the long-term whole life insurance products. So we are seeing that trend continue as our customers further mature and further accumulate wealth And if we were able to service them in an offline context, we were able to connect them with a higher premium customer service representatives or agents who will. We were able to further increase the lifetime value potential for our customer base. So that's one very important element of the strategy. The second element of strategy is the new 2A2C business line that we have. deployed starting from last year, which have already surpassed 200 million of RMB for the year alone last year, and now we're already seeing almost 100 million in the first quarter. So that new business line has picked up momentum, and with the new offline coverage, this will further accelerate the connectivity that we have with the local regions, where the local agents can also have the local presence with our platform, they will be able to service the local region customers more effectively. So that will be the second point on the online to offline strategy. So I think overall we've always been trying to leverage on our online presence from a product supply standpoint, from a services standpoint, and from an overall branding perspective to empower all the agents the in-house agents that we have on our 2C segments, you know, to our 2B, 2C segments, which include the third-party channel partners, the KOLs and the, you know, the well-mentioned channels. And now the 2A, 2C channels, which are the independent agents over the country, are now realizing the synergies that they can extract from working with Fraser as a platform provider. And we've seen that translating into the group momentum and into our, you know, top-line results, as we have shown previously. in the last five quarters since the start of 2022. So that will be my answer to your first question. On your second question on the ecosystem approach, whether we wanted to improve not just from an insurance standpoint, but also providing other services like healthcare and elder care, we've actually already been investing in this regard. We have been quietly investing in our own healthcare services platform. We've actually have been trial testing this healthcare platform internally, and we will be voting this out probably when it's more mature in the second half of the year to provide healthcare services, which are a higher frequency in nature, and also will be allowing us to further extract wallet share from our existing customer base. and also improve our knowledge and insights into our customers as they consume these healthcare products. Another point on the healthcare services segment is that we are also now expanding into Hong Kong and also potentially in the next three years, we're also looking at Southeast Asia expansion. So with the healthcare elements, I think we are also able to derive synergies from a mainland Chinese customer base perspective with our Hong Kong product providers and to provide that linkage to facilitate the MCV business in the near future. So I think that will be an exciting growth prospect for Fraser as a whole, and we will work to provide further information on this business line as it becomes more scalable. Thank you.
spk06: Thank you. The speakers don't have further questions at this time, and I would like to hand the conference over to our management team for any closing remarks.
spk04: Thank you, operator. So on behalf of WHOISA's management team, we would like to thank you for your participation in today's call. And if you require any further information, please feel free to reach out to the IR team. And thank you for joining us today. This concludes the call.
spk01: Thank you, everyone.
spk06: That concludes our conference for today. Thank you for your participation. You may now disconnect.
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