Second Quarter 2023 Financial Results
GWP and operating revenue
GWP facilitated on our
platform was RMB1,377.7 million (US$190.0 million) in the second quarter of 2023, an increase of 58.0% from RMB871.8 million in the same period of 2022. Within GWP, FYP accounted for RMB897.9 million (or 65.2% of total GWP), an
increase of 85.2% year-over-year. Renewal premiums accounted for RMB479.8 million (or 34.8% of total GWP), an increase of 24.0% year-over-year.
Operating revenue was RMB368.2 million (US$50.8 million) in the second quarter of 2023, an increase of 48.3% from RMB248.2 million in the same
period of 2022. The increase was primarily driven by the increase in FYP facilitated on our platform.
Operating costs
Operating costs were RMB243.6 million (US$33.6 million) in the second quarter of 2023, representing an increase of 40.2% from RMB173.7 million in the
same period of 2022. Operating costs grew at a slower pace than operating revenue, primarily due to a reduction in personnel costs.
Operating
expenses
Selling expenses were RMB57.3 million (US$7.9 million) in the second quarter of 2023, a decrease of 3.7% from RMB59.5 million
in the same period of 2022, primarily due to a decrease in salaries and employment benefits.
General and administrative expenses were
RMB37.1 million (US$5.1 million) in the second quarter of 2023, an increase of 6.8% from RMB34.7 million in the same period of 2022, mainly due to an increase in salaries and employment benefits and share-based compensation expenses,
partly offset by a reduction in rental and utilities expenses.
Research and development expenses were RMB22.0 million (US$3.0 million) in the second
quarter of 2023, a decrease of 9.5% from RMB24.3 million in the same period of 2022, primarily due to a decrease in technology service fee.
Net profit and Non-GAAP net profit for the period
Net profit in the second quarter of 2023 was RMB14.1 million (US$1.9 million), compared with a net loss of RMB39.4 million in the same period of
2022.
Non-GAAP net profit was RMB19.0 million (US$2.6 million) in the second quarter of 2023, compared with
a non-GAAP net loss of RMB37.5 million in the same period of 2022.
Cash and cash equivalents
As of June 30, 2023, the combined balance of the Companys cash and cash equivalents amounted to RMB247.6 million (US$34.1
million), compared to RMB277.2 million as of December 31, 2022.
Share Repurchase Program
Year to date as of June 30, 2023, the Company had purchased an aggregate of 1,032,242 ADSs for a total amount of approximately US$1.3 million under
its share repurchase program.