Kwok Tam: Thanks, Amy. It’s Ron here again. Thanks for joining again. So the first question on the regulatory — the self-inspection notice. I think this is something that we have been taking seriously ever since the first regulation came out on the online insurance marketing business compliance requirements two years ago. And then we have been continuously adapting to the regulatory changes and this is something that has not been — it’s definitely not new to us. And in fact, we have — basically over the last two years we have been adjusting our business processes, we have been strengthening our controls of our third-party channel partners into the compliance requirements. We have clear guidelines and clear requirements for our channel partners to obey and to abide by in order to cooperate with us on a compliant manner.
But we have been holding compliance very highly throughout the last two years. And I think this self-inspection is just an execution step by the regulators based on the earlier regulatory framework and this is not a new regulatory requirement per se. It’s just an execution step. So for Huize, because we have been maintaining high standards of compliance throughout our whole ecosystem, we are glad to be confident that, first of all, we will be fully compliant with the regulators’ self-inspection requirements. We will also encourage our third-party channel partners to cooperate fully. And we should come up on this three month inspection, which starts from April 3. And to finish by June 3, we should come up with this self-inspection even stronger from a competitive standing versus some of our peers in the industry, just because of the higher compliance standards that we have here at Huize.
And I just want to note that also to give you a sense of regulatory compliance that we have. We’re actually one of the only two insurance intermediaries in China, which is operating on the online context , which has voluntarily connected our backend system to the regulators east system, which mandates a real time sharing of transaction data with the regulatory body. So I think we are one of the very few market participants that are able to do this. And I think this is a very strong testament as to our compliance with the regulations. So that would be the first question. And the second question on the future development of our business vis-a-vis the upstream insurance partners. I think that, yes, I think the Ping An Health Insurance is a very good example of now that we are moving into a post pandemic world and also that the more stringent requirements on the regulator side would mandate that we would be working even more now with the mid-sized or larger sized insurance companies in the market.
And Ping An Health Insurance definitely is a very strong first step in this foray. And the long term health insurance product remains to be a very attractive market segment for China. I think that working with Ping An definitely will keep us a very strong advantage in the market in providing good variable money and customer centric products, which will help address some of the vacuum in the marketplace right now. So that will be the question number two. For full year guidance, I think that, again, we are giving up clear guidance on the profitability side of the P&L. For top line, I think we are cautiously optimistic that we will continue to sustain macro recovery, we should see modest growth in the premium facilitated this year.
Operator: Thank you. We’ll now move on to our next question. Our next question comes from the line of Rick Zhao from Morgan Stanley. Please go ahead. Your line is open.
Rick Zhao: The first question is that, the regulatory is doing research on reducing the pricing rate, what might be the potential impact of the company and any preparation from our side? And second question is that, with the China’s economy and the consumer recovery, have we seen a better selling trend on production products like the and also medical versus the pandemic and (ph) industry? Thanks.
Kwok Tam: Thanks, Rick. Thanks for joining. Welcome you to Huize story. I think the first question on the pricing front, yes, I think that we do note that the regulators are now looking to maybe adjusting the pricing rates on the products. And I think the short term impact on, not just the company, but also on the overall industry is that, we might see some of the current products to reach the end of the lifecycle. So I think that might be translating to some of the accelerated sales of some of these existing products in the next quarter or two. I think that will be some of the short term impact, which actually should be a net positive for the company, because we are well positioned in terms of the product supply side. We have a very good market leading products that we can facilitate to the market.
For a longer — medium to longer term, I think that because we have always been very focused on co developing new products with our upstream insurer partners, we are fully prepared and we are already in discussions to iterate the savings products into the next version, maybe post the pricing rate regulatory changes. So I think we are fully anticipating some of these changes going into the second half this year and 2024 onwards. So with that, I think that again because of the way that we have been operating with a very clear focus on middle class mass affluent families in China. I think that the good quality customer base and the ability that we can acquire new customers will provide us an upper end in terms of negotiating and working with the larger middle sized — mid to larger sized issuance partners to help co-develop new versions of these savings products and help products to the marketplace to adapt to the changes in the regulatory side.
So I think that will be the first question. Second question, I think I told the other analyst earlier on the call. We are seeing some modest recovery in Q1. On a year on year basis, actually, are quite strong versus Q1 of last year. So we are still cautiously optimistic. I think the broader external environment is definitely very challenging right now as we speak. I think the geopolitical tensions remain extremely tight. So still a lot of uncertainties on the exports and I think that will also have some effect on the SMEs in China and so forth into consumer covenants. But then I think Q1, we are seeing modest and healthy recovery across the key product segments, i.e., long term health and long term savings — long term savings products. So I think that we should be hopeful for a modest rebound in the first half this year.
Thank you.