Core Viewpoint - Waterdrop Inc. reported strong financial performance for Q2 2025, with significant growth in revenue and profit driven by AI integration in its insurance and fundraising operations [1][2][3]. Financial Performance - The company achieved net operating revenue of 838 million yuan, a year-on-year increase of 23.9% [1]. - Net profit attributable to shareholders reached 140 million yuan, up 58.7%, marking 14 consecutive quarters of profitability [1]. - Operating expenses as a percentage of revenue decreased by 6.4 percentage points to 38.7% [1]. Insurance Business Growth - Insurance-related revenue for the quarter was 739 million yuan, reflecting a year-on-year growth of 28.7% [1]. - The operating profit from insurance reached 171 million yuan, a 39% increase [1]. - The first-year scale premium for insurance business grew by 80.2% to 3.204 billion yuan [1]. AI Integration and Product Development - The company enhanced customer acquisition and operational efficiency through AI applications, leading to a 95% increase in first-year scale premiums for short-term insurance and a 45.4% increase for long-term insurance [2]. - Waterdrop launched innovative insurance products, including a medical insurance plan without health declarations and a maternity insurance product for mothers with pre-existing conditions [2]. AI Technology Advancements - AI technology contributed to a 155% increase in scale premiums for AI medical insurance experts [3]. - The company developed an AI-based insurance product knowledge database, aiding insurance advisors with real-time information on approximately 7,000 insurance products [3]. - AI applications improved customer service and underwriting processes, significantly reducing processing times and increasing accuracy [3]. Fundraising Operations - AI models were applied to enhance case authenticity verification and fund security in fundraising operations [4]. - The company established a dynamic monitoring algorithm for real-time fund verification and developed models to identify malicious promotional behaviors [4]. Social Impact and User Engagement - Since its inception, Waterdrop's fundraising platform has facilitated approximately 4.8 billion users donating 70 billion yuan to 3.54 million patients [5]. - The company initiated the "Waterdrop Co-assistance" project in collaboration with Guangzhou Civil Affairs, enhancing the accuracy of aid distribution [6]. Shareholder Returns - Waterdrop has repurchased approximately 55.7 million ADS since announcing its buyback plan in September 2021 and plans to initiate a new round of cash dividend distribution [6].