Core Insights - Waterdrop Inc. reported strong financial results for Q4 and FY 2024, with significant increases in net profit and operating revenue, highlighting sustained profitability and growth in its insurance business [2][3][12] Financial Performance - In Q4 2024, Waterdrop achieved net operating revenue of RMB 686.8 million and a net profit of RMB 99.6 million, marking a 68.5% increase year-over-year [2] - For the full year 2024, net operating revenue rose by 5.4% to RMB 2,771.8 million, while net profit surged by 119.8% to RMB 367.5 million [3] - Operating expenses accounted for 45.1% of revenue in Q4 and 46.1% for the year, showing a decrease of 8.7 percentage points year-on-year [2][3] Shareholder Returns - Waterdrop declared a cash dividend of US$0.02 per ADS, with a payment date expected around April 30, 2025 [4] - The company has repurchased approximately 52.1 million ADSs for a total of US$103.7 million since initiating its share repurchase program in September 2021 [5] Insurance Business Highlights - Waterdrop's insurance-related revenue in Q4 2024 was RMB 582.4 million, with first-year premiums (FYP) reaching RMB 1,897.9 million, a 24.5% increase year-over-year [6] - The annual FYP for 2024 was RMB 7,472.8 million, reflecting a 5.1% growth [7] - The insurance business generated an annual operating profit of RMB 477.2 million [6] Medical Crowdfunding and Digital Solutions - Waterdrop Medical Crowdfunding raised RMB 67.5 billion for 3.40 million patients, demonstrating its impact in the healthcare sector [8] - The platform was recognized as a pioneer in China's standardized medical crowdfunding sector [9] - Waterdrop's Digital Clinical Trial Solution generated revenues of approximately RMB 25.5 million in Q4 2024, a 22.9% increase year-over-year [10] Strategic Initiatives - The company is focusing on optimizing customer acquisition channels and diversifying product offerings, resulting in a 14.9% increase in new users acquired [7] - Waterdrop is integrating AI-driven solutions to enhance its insurance ecosystem, improving customer interactions and sales strategies [7][12] Leadership Changes - Waterdrop appointed Mr. Chen Lin as an independent director and member of the audit committee, effective March 11, 2025 [13]

Core Insights - Waterdrop Inc. reported outstanding financial results for Q4 and the full year of 2024, achieving a 119.8% year-on-year increase in net profit attributable to ordinary shareholders [3][15][20] - The company aims for faster growth in 2025 while enhancing its core competitiveness through technology [9] Financial and Operational Highlights for Q4 2024 - Net operating revenue increased by 4.2% year-over-year to RMB686.8 million (US$94.1 million) [9] - Operating costs and expenses rose by 0.2% year-over-year to RMB633.9 million (US$86.8 million) [10] - Net profit attributable to ordinary shareholders reached RMB99.6 million (US$13.6 million), a 68.7% increase year-over-year [11][15] - First-year premiums (FYP) from the insurance business amounted to RMB1,897.9 million (US$260.0 million), representing a 24.5% year-over-year increase [11] Business Segments Performance - The insurance business generated an FYP of RMB7,472.8 million (US$1,023.8 million) for the year, marking a 5.1% year-over-year growth [4] - Crowdfunding service fees increased by 62.8% year-over-year to RMB65.1 million (US$8.9 million) in Q4 2024 [12] - Digital clinical trial solution income grew by 22.9% year-over-year to RMB25.5 million (US$3.5 million) [6][12] Strategic Developments - Waterdrop Medical Crowdfunding was recognized as a pioneer in China's standardized medical crowdfunding sector [5] - The company integrated AI-driven models to enhance its insurance ecosystem, improving customer interactions [7] Cash Position and Shareholder Returns - As of December 31, 2024, the cash position was RMB3,670.3 million (US$502.8 million) [25] - The company announced a cash dividend of approximately US$7.3 million, with a share repurchase program totaling approximately US$103.7 million as of February 28, 2025 [8][22][21] Annual Financial Results for 2024 - Net operating revenue for the year increased by 5.4% year-over-year to RMB2,771.8 million (US$379.7 million) [17] - Operating costs and expenses decreased by 1.7% year-over-year to RMB2,593.7 million (US$355.3 million) [18] - Net profit attributable to ordinary shareholders for the year was RMB367.5 million (US$50.3 million), compared to RMB167.2 million for 2023 [20]

Core Viewpoint - Waterdrop Inc. has appointed Mr. Chen Lin as an independent director and a member of the audit committee, effective March 11, 2025, following the resignation of Mr. Ning Zhu due to personal reasons [1][2]. Group 1: Appointment Details - Mr. Chen Lin replaces Mr. Ning Zhu on the Board of Directors and the audit committee [1]. - Mr. Zhu's resignation was not due to any disputes or disagreements with the Company [2]. Group 2: Mr. Chen Lin's Background - Mr. Lin has held various positions at The University of Hong Kong, including Chair of Finance and Associate Vice President [3]. - He has served as an independent non-executive director for multiple companies since 2019, including Allianz Global Investors Fund Management Co., Ltd. and China Merchants Land Asset Management Co., Limited [3]. - Mr. Lin is involved in several advisory roles, including the Task Force on Promoting Web3 Development and the Fintech Advisory Group of the Securities and Futures Commission [4]. Group 3: Educational Qualifications - Mr. Lin holds a PhD in economics, a master's degree in economics, and an MBA from the University of Florida, along with a bachelor's degree in engineering from South China University of Technology [5]. Group 4: Company Statement - The Company expressed confidence that Mr. Lin's expertise will add significant value and positively impact people's lives [6]. - The Company also acknowledged Mr. Zhu's contributions and wished him well in his future endeavors [6]. Group 5: Company Overview - Waterdrop Inc. is a technology platform focused on insurance and healthcare services, aiming to leverage technology to provide services to billions [7].

Core Viewpoint - Waterdrop Inc. is set to announce its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2024, on March 12, 2025, before U.S. markets open [1] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for March 12, 2025, at 8:00 AM U.S. Eastern Time [2] - Dial-in details for the conference call include various international and toll-free numbers for participants from the United States, Hong Kong, and Mainland China [2] Conference Call Access - Telephone replays of the conference call will be available two hours after its conclusion until March 19, 2025 [3] - Live and archived webcasts of the conference call will be accessible on the Company's investor relations website [3] Company Overview - Waterdrop Inc. is a technology platform focused on insurance and healthcare services, aiming to create a positive social impact [4] - Founded in 2016, the company offers comprehensive services through Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding [4]

Core Insights - Waterdrop Inc. has announced a strategic integration with DeepSeek to enhance its AI-driven insurance ecosystem, aiming for significant business growth and innovative applications of large-scale AI models in specialized insurance scenarios [1][2][3] Group 1: AI Integration and Service Enhancement - The integration of AI technology is set to transform traditional insurance agents into expert consultants, improving service precision and efficiency across the insurance service chain [2][4] - Waterdrop's AI Insurance Expert supports multi-modal interactions, managing complex dialogues and outperforming entry-level human agents in efficiency, with user engagement lasting up to 50 minutes per session [4][5] Group 2: Quality Inspection and Cost Reduction - Waterdrop has introduced a Large-scale AI Model Insurance Quality Inspection Solution that analyzes complex conversations and user intent, ensuring 100% coverage across all channels and reducing operational costs by over 50% compared to traditional manual inspections [5][6] Group 3: Personalized Insurance Solutions - The company is leveraging AI and big data analytics to create personalized insurance solutions for specific demographic segments, addressing disparities in healthcare access for historically underserved groups [6][7] - In 2024, Waterdrop launched 174 tailored insurance products, representing over 92% of its offerings, showcasing its commitment to innovative, technology-driven approaches in the insurance industry [7]

Financial Performance - Net operating revenue for Q3 2024 was RMB 704.1 million, with net profit attributable to ordinary shareholders reaching RMB 92.8 million, a 152.6% increase year-over-year [1] - Operating expenses accounted for 47.9% of revenue, a decrease of 6.9 percentage points year-over-year [1] - The company sustained profitability for the eleventh consecutive quarter [1] Insurance Business - Insurance-related revenue in Q3 2024 was RMB 600.7 million, with operating profit reaching RMB 123 million [3] - First-year premiums (FYPs) generated by the insurance business amounted to RMB 2,041.8 million, a 20.4% increase year-over-year [3] - The company established the "Three Good Services Alliance" with 14 insurance companies and launched "Public Review Panels" to enhance user-centric insurance services [4] AI and Technology Innovations - AI Consultant, powered by the "Waterdrop Guardian" large language model, generated million yuan in monthly premiums by serving user inquiries [5] - The company deployed "AI Service Quality Agent" to streamline service quality inspection processes, replacing manual work [5] - A conversational AI platform was developed to customize AI sales agents for businesses, with pilots initiated in insurance and non-insurance sectors [5] Medical Crowdfunding - Waterdrop Medical Crowdfunding raised RMB 66.3 billion for 3.32 million patients, with 466 million people cumulatively donating as of September 30, 2024 [6] - The platform recorded an operating loss of approximately RMB 17.9 million, though losses have narrowed compared to previous periods [6] Digital Clinical Trials - Waterdrop's Digital Clinical Trial Solution generated revenues of approximately RMB 24.3 million in Q3 2024 [7] - The E-Find Platform cumulatively enrolled over 9,500 patients into 1,137 clinical trial programs as of September 30, 2024 [7] Strategic Vision - The company remains user-centric and explores innovations powered by Large Language Models to boost business growth [8] - Waterdrop aims to build core capabilities and drive high-quality business growth by leveraging advanced technologies, adhering to its mission of bringing insurance and healthcare services to billions through technology [8]

Financial Data and Key Metrics - Total revenue for Q3 2024 reached RMB704 million, with a year-over-year increase of over 150% in net profit attributable to ordinary shareholders, amounting to RMB92.8 million [4] - For the first nine months of 2024, total revenue was RMB2.08 billion, up 5.8% year-on-year, with net profit attributable to ordinary shareholders at RMB260 million, a 142% increase compared to the previous year [5] - The company has achieved profitability for 11 consecutive quarters since Q1 2022 [5] Business Line Performance - Insurance Business: First year premiums totaled over RMB2 billion, with an operating profit margin above 20% [6] - Medical Crowdfunding: User numbers and crowdfunding amounts continued to rise, with segment losses further narrowed [7] - Healthcare Sector: The number of enrolled patients grew both year-on-year and quarter-over-quarter [8] - AI Development: Launched AI Top Sales Platform 3.0, which has expanded partnerships with insurers and initiated pilots in non-insurance sectors like e-commerce and education [9][10][11] Market Performance - Insurance Business: Generated RMB2.04 billion in FYP, with a 20.4% year-over-year increase and a 14.8% quarter-over-quarter increase [18] - Short-term insurance FYP hit RMB1.37 billion, up 30.3% year-over-year and 9.9% quarter-over-quarter [18] - Long-term insurance FYP reached RMB670 million, a year-on-year increase of 4.3% and a quarter-on-quarter increase of 26.4% [23] Company Strategy and Industry Competition - The company is leveraging AI technology to enhance service quality and efficiency, with AI Top Sales 3.0 platform reaching a new milestone in commercialization [11][12] - Waterdrop is investing in R&D to build its next core competitive advantage around AI applications [12] - The company has established collaboration intentions with 10 clients across various industries, with eight already in the testing phase [12] Management Commentary on Operating Environment and Future Outlook - The company remains committed to healthy operations and sustainable growth, focusing on long-term, high-quality growth centered around user needs [15] - AI capabilities and first-mover advantages in large language models position the company for greater opportunities and growth in the future [15] Other Important Information - The company has cumulatively repurchased approximately 50.9 million ADS from the open market, totaling around US$102 million, and completed a second special cash dividend of approximately US$7.3 million [13] - Waterdrop Charity platform has partnered with 115 public charitable organizations and launched over 15,000 charity projects [14] - The company received several strategic awards, including the China ESG Connected Pioneer Award and China ESG Excellence Award [14] Q&A Session - No specific questions or answers were provided in the content [50]

Summary of Conference Call Records Company and Industry Overview - The conference call primarily discusses the performance and strategic initiatives of a company referred to as "3101" within the health insurance and technology sector, particularly focusing on AI applications and insurance services [1][2][12]. Key Financial Performance - Total revenue for 3101 reached **7.04 billion yuan**, with a **150% growth** compared to previous periods [1]. - In the first three quarters of 2024, total revenue was **2.8 billion yuan**, with a share price increase of **1.8%** [1]. - Annual insurance fees for Qudi Insurance amounted to **20.4 billion yuan**, with a **20.04%** increase in share price and a **14.8%** return rate [4]. - Operating profit for the quarter was **1.2 billion yuan**, maintaining an operating profit rate above **20%** [4]. - Operating costs increased to **3.41 billion yuan**, a **6.7%** rise from the previous quarter [10]. Growth and Strategic Initiatives - The company has maintained a steady growth trajectory, with **11 consecutive quarters** of revenue growth at **2.6 billion yuan** [1]. - The AI top-sales platform has been launched, enhancing service efficiency and expanding into non-risk industries [2]. - The company is focusing on optimizing service quality and user experience through various channels, including social media platforms like Xiaohongshu and Douyin [4][5]. AI and Technology Integration - The company has developed an AI-based business model that has begun to show significant contributions, exceeding **one million yuan** monthly [15]. - AI applications are being integrated into various business processes, enhancing efficiency in customer interactions and service delivery [7][9][15]. ESG and Sustainability Efforts - The company has made strides in ESG initiatives, winning awards for leadership in this area and launching numerous public projects [3]. - The SIDI platform has initiated **115 public projects**, emphasizing sustainable development [3]. Market Trends and Future Outlook - The health insurance industry is undergoing a transition, with expectations of **5% revenue growth** for the year 2024 [12]. - The company is optimistic about future developments in the insurance sector, particularly regarding the integration of medical and commercial insurance data [12][13]. - The focus will be on customizing insurance products to meet user needs and enhancing service capabilities through technology [13]. Additional Insights - The company is actively exploring partnerships and collaborations to enhance its service offerings and market reach [9][12]. - There is a noted increase in the number of users and medical service engagements, indicating a growing market demand [2][4]. This summary encapsulates the key points discussed during the conference call, highlighting the company's financial performance, strategic initiatives, technological advancements, and market outlook.

Financial Performance - Net profit attributable to ordinary shareholders for Q3 2024 reached RMB 92.8 million (US$ 13.2 million), a year-over-year increase of 152.6%[15] - Operating revenue for Q3 2024 increased by 2.6% year over year to RMB 704.1 million (US$ 100.3 million) from RMB 686.5 million in Q3 2023[11] - Operating profit for Q3 2024 was RMB 26.5 million (US$ 3.8 million), compared to an operating loss of RMB 2.1 million in Q3 2023[14] - The net profit for the nine months ended September 30, 2024, was RMB 259,416 thousand, an increase of 140.5% compared to RMB 107,747 thousand for the same period in 2023[23] - Total operating costs and expenses for the three months ended September 30, 2024, were RMB 677,671 thousand, a decrease of 10.5% compared to RMB 623,792 thousand in the previous quarter[36] Revenue Sources - First-year premiums (FYP) from the insurance business amounted to RMB 2,041.8 million (US$ 290.9 million), representing a year-over-year growth of 20.4%[10] - Crowdfunding service fees increased by 83.0% year over year to RMB 65.8 million (US$ 9.4 million) in Q3 2024[12] - Digital clinical trial solution income grew by 17.4% quarter-over-quarter, despite a year-over-year decrease of 12.1% to RMB 24.3 million (US$ 3.5 million)[7][12] - The insurance segment generated operating revenue of RMB 600,726 thousand for the three months ended September 30, 2024, representing a 3.3% decrease from RMB 619,269 thousand in the prior year[23] Cash and Assets - Cash position as of September 30, 2024, was RMB 3,440.1 million (US$ 490.2 million), down from RMB 3,571.6 million at the end of 2023[17] - Cash and cash equivalents increased to RMB 442,145 thousand as of September 30, 2024, up from RMB 396,905 thousand as of December 31, 2023[34] - Total current assets decreased to RMB 4,409,038 thousand as of September 30, 2024, from RMB 5,426,445 thousand as of December 31, 2023[34] - The company’s total liabilities increased to RMB 1,516,916 thousand as of September 30, 2024, compared to RMB 1,470,209 thousand as of December 31, 2023[34] Research and Development - Research and development expenses decreased by 28.4% year over year to RMB 53.0 million (US$ 7.5 million) in Q3 2024[20] - Research and development expenses for the three months ended September 30, 2024, were RMB 52,951 thousand, down 0.7% from RMB 53,300 thousand in the previous quarter[36] Shareholder Information - The company had cumulatively repurchased approximately 50.9 million ADSs for a total consideration of approximately US$ 102.3 million as of November 30, 2024[18] - Basic net profit per share attributable to ordinary shareholders for the three months ended September 30, 2024, was RMB 0.03, compared to RMB 0.02 in the previous quarter[36] - The weighted average number of ordinary shares used in computing net profit per share for the three months ended September 30, 2024, was 3,624,431,887[36] Other Income and Expenses - Total other income for the three months ended September 30, 2024, was RMB 60,842 thousand, an increase of 64.8% from RMB 36,914 thousand in the prior year[23] - Interest income for the three months ended September 30, 2024, was RMB 36,005 thousand, a slight decrease from RMB 37,510 thousand in the previous quarter[36] Future Engagement - The company plans to hold a conference call on December 11, 2024, to discuss financial results, indicating ongoing engagement with investors[29]

Financial Performance - Net profit attributable to ordinary shareholders reached RMB92.8 million in Q3 2024, a year-over-year growth of 152.6% [2] - Net operating revenue increased by 2.6% year-over-year to RMB704.1 million in Q3 2024 [2] - Adjusted net profit attributable to ordinary shareholders (non-GAAP) was RMB126.0 million in Q3 2024, up from RMB74.3 million in the same period of 2023 [6] Insurance Business - First-year premiums (FYP) generated through the insurance business amounted to RMB2,041.8 million in Q3 2024, representing a 20.4% year-over-year increase [2] - Insurance-related income was RMB600.7 million in Q3 2024, a 3.0% year-over-year decrease, mainly due to a decline in technical service income [4] - The insurance business maintained an operating profit margin above 20% in Q3 2024 [2] Crowdfunding and Digital Clinical Trials - Cumulative donations through Waterdrop Medical Crowdfunding reached RMB66.3 billion, benefiting 3.32 million patients as of September 30, 2024 [2] - Crowdfunding service fees increased by 83.0% year-over-year to RMB65.8 million in Q3 2024 [4] - Digital clinical trial solution income grew by 17.4% quarter-over-quarter to RMB24.3 million in Q3 2024 [3] AI and Technology Initiatives - The 'AI Consultant' conversational AI agent generated million yuan in monthly premiums by serving user inquiries [3] - The 'AI Service Quality Agent' was deployed to streamline service quality inspections, replacing manual work [3] - The 'AI Top Sales Platform 3.0' was launched, customizing AI sales agents for businesses, with pilots initiated in insurance and non-insurance sectors [3] Operational Highlights - The company enrolled over 9,500 patients into 1,137 clinical trial programs through the E-Find Platform as of September 30, 2024 [2] - Collaborated with 184 pharmaceutical companies and contract research organizations (CROs) in Q3 2024 [3] - Cumulative repurchase of approximately 50.9 million ADSs from the open market by the end of November 2024 [3] Regulatory and Industry Developments - The 'Measures for Administration of Online Service Platforms for Individuals Seeking Financial Help' was issued on September 5, 2024, providing a legal framework for the fundraising sector [3] - The company's digital clinical trial solution income continued to grow, reflecting the industry's increasing reliance on technology for patient recruitment [3]