Waterdrop Inc. Announces Second Quarter 2024 Unaudited Financial Results and a Special Cash Dividend, Net profit rises 306.9% year-on-year

Core Insights - Waterdrop Inc. reported a net operating revenue of RMB 676 million and a net profit of RMB 88.3 million for Q2 2024, marking a 306.9% increase year-on-year and achieving profitability for the tenth consecutive quarter [1] - The company declared a second special cash dividend of approximately US$7.5 million following the completion of its first special cash dividend [1] - Waterdrop has repurchased approximately 49.3 million American Depositary Shares (ADSs) since September 2021 and has approved a new share repurchase program with an aggregate value of up to US$50 million [2] Financial Performance - The insurance-related revenue for Waterdrop amounted to RMB 573.8 million in Q2 2024, with an operating profit of RMB 123 million [3] - First-year premiums (FYPs) generated by the insurance business reached RMB 1,778.6 million [3] - Operating expenses accounted for 45.1% of revenue, a decrease of 12 percentage points year-on-year [1] Technology and Innovation - Waterdrop is committed to investing in technology, piloting the Shuishou large language model ("Waterdrop Guardian") across various insurance service scenarios [4] - The company has established a strategic cooperation with a property & casualty insurer, marking its first customized solution for non-life insurance [4] Healthcare Initiatives - Waterdrop Medical Crowdfunding raised RMB 65.1 billion for 3.25 million patients, with approximately 461 million people participating in donations [5] - Despite an operating loss of RMB 22.9 million, the losses have narrowed compared to previous periods [5] - The healthcare-related business generated revenues of approximately RMB 26.4 million in Q2 2024, and nearly 8,600 patients were enrolled in over 1,050 clinical trial programs through the E-Find Platform [5] Strategic Vision - The CEO emphasized the implementation of a high-quality development strategy, focusing on technological innovation and sustainable growth across all business segments [6] - The company aims to strengthen core operations and explore opportunities to apply AI solutions within the industry [6]