We are an insurance agency service provider in Shandong province, the PRC, dedicated to distributing a wide range of insurance products covering (i) property insurance products, (ii) life and health insurance products, (iii) accident insurance products and (iv) automobile insurance products, to both corporate and household insurance clients. We acquired Haier Insurance Agency from Haier Group in 2017 and have been the designated insurance agency service provider to handle and manage all insurance related matters for Haier Group in the PRC. Revenue attributable or relating to Haier Group accounted for approximately 25.3%, 32.0%, 25.5%, 18.8% and 23.1% of our total revenue for the years ended 31 December 2021, 2022 and 2023 and the four months ended 30 April 2023 and 2024, respectively. According to Frost & Sullivan, the China insurance intermediary industry has experienced constant growth and will maintain a steady growth trend, and the scale of underwriting premium in the industry is expected to grow at a CAGR of 12.8% between 2024 and 2028, reaching RMB1,505.5 billion in 2028. Our total revenue increased from RMB120.0 million for FY2021 to RMB174.0 million for FY2023, representing a CAGR of 20.4%, and from RMB53.4 million for 4M2023 to RMB58.6 million for 4M2024.
We collaborate and cooperate with different industry participants including insurance company partners, which are our customers, insurance agents and strategic channel partners to promote and distribute insurance products from our insurance company partners to corporate and household insurance clients. Leveraging our sales channels, we promote and distribute insurance products underwritten by insurance companies to insurance clients and receive commission from insurance companies for successful purchase of their insurance products by our insurance clients. Our services cover major stages of insurance business including assistance on risk assessment and product selection, confirmation of insurance policy, premium payment, policy administration and insurance claims. Our sales channels, with are primarily offline, comprise (i) sales through insurance agents (whom we engage to promote and distribute insurance products to mainly our household insurance clients, in return for commissions we paid for successful purchase of insurance products by insurance clients), (ii) referral from strategic channel partners (through whom a large population of corporate and household insurance clients are referred, in return for referral fees we paid for successful purchase of insurance products by insurance clients) and (iii) direct sales. At the upstream end, we provide insurance agency services to our insurance company partners, expand their insurance client base, whilst at the downstream end, we distribute insurance products to our corporate and household insurance clients and enhance their user experience.
Through our access to a comprehensive mix of insurance products and our in-depth understanding and analysis of the risk portfolios in different scenarios, we are able to provide insurance solutions and recommend different combinations of existing insurance products with different premium rates offered by our insurance company partners to our insurance clients, taking into account their particular needs and risk exposure with an aim to maximise their insurance claim coverage in the cost-effective manner. We provide insurance knowledge, training and IT support to our insurance agents, to facilitate their distribution of insurance products to our insurance clients. We also provide IT services and consulting services as an extension of our insurance agency business, to various participants, including insurance companies, insurance intermediaries and other companies from different industries. During the Track Record Period, we had connected with: (i) over 70 insurance companies as our customers, covering the top three insurance groups in the PRC in terms of market capitalisation; (ii) insurance agents across Shandong, Hebei, Henan and Jilin provinces; (iii) 20 strategic channel partners, and (iv) we had distributed insurance products to over 20,000 corporate insurance clients and 368,000 household insurance clients.
Since our establishment in 2017, we have developed our online platforms, including our ‘‘Corporate Insurance Interactive Service Platform (企業保險交互服務平台)’’, our ‘‘Quan Zhanggui (全掌櫃)’’ APP, our WeChat official account and WeChat mini programme ‘‘Quan Zhanggui Claim Centre (全掌櫃理賠中心)’’, to enhance user experience of our insurance clients and provide comprehensive service support to our insurance agents. For details of their functionalities, please refer to the section headed ‘‘Business — Our Online Platforms’’ in this document. For FY2021, FY2022, FY2023 and 4M2024, revenue attributable to our insurance agency business amounted to RMB116.1 million, RMB130.7 million, RMB155.7 million and RMB54.8 million, respectively.
We extended and developed our IT services by leveraging on our IT technology and knowhow accumulated over years in view of the inherent commonality between the digitalised solutions we developed for our insurance agency business and the digitalised solutions demanded by our customers. We offer IT services to various participants, including companies in insurance industry and companies from different industries, by designing and developing digitalised solutions based on their needs. For FY2021, FY2022, FY2023 and 4M2024, revenue attributable to our IT services amounted to RMB1.3 million, RMB15.0 million, RMB15.8 million and RMB3.2 million, respectively.
In view of the insurance clients base we gained from insurance agency business, the derived cross-selling opportunities drove us to provide consulting services including HR consulting services and marketing and promotion services, which have gradually become one of our business segments. In particular, we provide advice to our customers on human resource management and recruitment strategies, and provide recruitment services directly to locate, attract and identify suitable talents for our customers. Based on our marketing and promotion capabilities accumulated in the insurance agency business and the insurance client base we have access to, we also provide marketing and promotion services to our customers, including the design of promotional materials and advertisements, etc. For FY2021, FY2022, FY2023 and 4M2024, revenue attributable to our consulting services amounted to RMB2.7 million, RMB2.7 million, RMB2.5 million and RMB0.6 million, respectively.
Source: Zhongmiao (01471) Prospectus (IPO Date : 2024/07/29) |