Why did WRD's operating expenses surge in Q4 2024?

Huize Holding Limited's operating expenses increased by 37.0% in Q4 2024, primarily due to an increase in channel expenses. The surge in operating expenses can be attributed to several key factors: 1. **Increase in FYP**: The rise in First Year Premiums (FYP) by 30.5% year-over-year, reaching RMB3,421.0 million in 2024, was driven by robust demand for long-term savings products, effective omnichannel distribution, and proactive expansion into international markets. This increase in FYP indicates a growing business volume, which often correlates with higher operating expenses. 2. **International Business Expansion**: Huize's expansion into international markets, particularly with the partnership with Uber to launch autonomous driving services in Abu Dhabi, could have led to increased expenses related to market entry, regulatory compliance, and operational setup. Emerging markets may require additional investments in marketing, technology, and local infrastructure, which can elevate operating costs. 3. **Market and Regulatory Environment**: Navigating an evolving regulatory environment in China could have necessitated additional expenses to adapt and comply with new regulations or guidelines. Such adaptations can include investments in technology, legal fees, and training, which directly impact the operating expense line item. In summary, Huize's operating expenses surged in Q4 2024 due to a combination of increased business activity (as indicated by the rise in FYP), strategic expansion into international markets, and the costs associated with navigating and adapting to a changing regulatory landscape.