Huize (Nasdaq: HUIZ), a top insurance service provider in China, announced on Tuesday a $5 million share buyback plan in a show of "confidence in the prospects for its business."
The company said in a statement today that its chairman and chief executive officer, Cunjun Ma, and certain other members of the management team will use their funds to repurchase up to $5 million of Huize's American depositary shares during a six-month period. The repurchased shares will be placed under a half-year lock-up period.
"Huize has been at the forefront as an innovator in the online insurance industry while maintaining strict compliance within the industry's regulatory framework," Ma said in the statement.
"We believe Huize has been a recipient of widespread industry recognition and is well-positioned to capitalize on the tremendous growth opportunities ahead. Our focus on distributing long-term life and health insurance products provides us with stable financial performance and better visibility on future revenues."
Ma also said that despite the headwinds for U.S.-listed Chinese companies, he feels Huize to be well-equipped to cope with the challenges.
The news sent HUIZ shares up 15 cents at open; in the afternoon, the stock settled to yesterday's close of $2.34 a share.
Huize facilitates insurance, with a focus on long-term life and health insurance products, through its one-stop platform in China, operating through a B2B2C model. Huize does not assume any underwriting risks, instead generating revenue from its insurer partners. Its platform connects insurers with customers, helping reach a wider target and providing a tailored experience.
Huize positions itself as a tech-driven company targeting the younger generation. According to its website, Huize collaborated with 75 insurer partners and counted over 7 million insurance clients, with 58 million insured as of the first quarter of 2021.
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