Waterdrop Inc. Announces Second Quarter 2024 Unaudited Financial Results and a Special Cash Dividend

Core Insights - Waterdrop Inc. reported a significant year-over-year net profit growth of 306.9% for Q2 2024, reaching RMB 88.3 million (approximately US$12.1 million) [2][5] - The company announced a special cash dividend of approximately US$7.5 million, following a successful first special cash dividend [2][6] - Despite challenges in the insurance industry, Waterdrop's insurance segment showed an improvement in operating profit margin, increasing to 21.4% from 16.7% year-over-year [2][3] Financial Performance - Net operating revenue for Q2 2024 was RMB 676.2 million (US$93.0 million), a slight decrease of 0.4% year-over-year [3][5] - First-year premiums (FYP) from the insurance business decreased by 19.0% year-over-year to RMB 1,778.6 million (US$244.7 million) [2][3] - Operating costs and expenses decreased by 13.4% year-over-year to RMB 623.8 million (US$85.8 million) [4][5] Operational Highlights - The company has broadened its crowdfunding coverage, with approximately 461 million people donating a total of RMB 65.1 billion to 3.25 million patients [2][3] - Waterdrop's digital clinical trial services have enrolled nearly 8,600 patients into 1,050 clinical trial programs as of June 30, 2024 [2][3] - The company has initiated a strategic cooperation with a property & casualty insurer, marking its first customized solution for non-life insurance [2][3] Shareholder Returns - Waterdrop has actively conducted share repurchases for three consecutive years, with a new repurchase plan approved for up to US$50 million [6][2] - The board approved a special cash dividend of US$0.02 per ADS or US$0.002 per ordinary share, with payment expected around November 2024 [6][2] Segment Performance - The insurance segment generated RMB 573.8 million (US$79.0 million) in income, a decrease of 4.0% year-over-year [3][5] - Crowdfunding service fees increased by 55.2% year-over-year to RMB 69.3 million (US$9.5 million) [3][5] - Healthcare-related income decreased by 17.0% year-over-year to RMB 26.4 million (US$3.6 million) [3][5]