Huize Shares Dive On 7% Revenue Decline In Q2; Brokerage Income Falls 7.2%

Digital insurance platform Huize Holding Ltd HUIZ reported a second-quarter FY21 revenue decline of 7% year-on-year to $33.9 million.
Q2 Revenue of RMB218.6 million was below its outlook of RMB230 million - RMB250 million.
The decrease was primarily due to a 5.1% decrease in FYP facilitated, offset by a 32.0% increase in renewal premiums.
Brokerage income declined 7.2% Y/Y to $33.7 million. Gross Written Premiums increased by 12.1% Y/Y to $103.5 million.
EPS loss was $(0.01). Operating loss widened to $(12.04) million.
Huize held $66.7 million in cash and equivalents.
Outlook: Huize expects to achieve FY21 revenue of RMB1.7 billion ($263 million), implying a 40% growth Y/Y, versus the consensus of $274.74 million.
The Chinese stocks are trading lower following reports of a renewed crackdown on the tech and internet sector.
Price Action: HUIZ shares traded lower by 7.5% at $2.73 in the premarket session on the last check Thursday.