Waterdrop (WDH) Q1 2025 Earnings Call June 05, 2025 08:00 AM ET Moderator Good morning, everyone. This is Tracy Li from Investor Relations. It's my pleasure to welcome everyone to Waterdrop's First Quarter twenty twenty five Earnings Conference Call. All participants are in listen only mode in our English line. As a reminder, today's conference call is being recorded. Please note that discussion today will contain forward looking statements made under the cover provision of U. I. Private Securities and the ...

Core Viewpoint - Waterdrop Inc. reported strong financial and operational growth in the first quarter of 2025, with significant increases in revenue and profit compared to previous periods [3][10]. Financial and Operational Highlights - Net operating revenue for Q1 2025 increased by 7.0% year-over-year to RMB 753.7 million (US$ 103.9 million) and by 9.7% quarter-over-quarter [9]. - Net profit attributable to ordinary shareholders reached RMB 108.2 million (US$ 14.9 million), marking a 34.2% year-over-year increase [10][15]. - First-year premiums generated through the insurance business reached RMB 2,092.4 million (US$ 288.3 million), representing a 19.3% year-over-year increase [10]. - Insurance-related income amounted to RMB 658.0 million (US$ 90.7 million), an increase of 8.4% year-over-year [11]. - Digital clinical trial solution income grew by 11.5% year-over-year to RMB 23.0 million (US$ 3.2 million) [12]. Insurance Business Performance - The insurance business saw a 30.1% year-over-year increase in short-term insurance premiums [4]. - Long-term insurance premiums grew by 27.6% quarter-over-quarter, indicating operational resilience despite product iteration challenges [4]. Crowdfunding and Risk Management - Waterdrop Medical Crowdfunding expanded its verification platform to cover 92% of domestic cities, enhancing risk control and campaign validation processes [5]. - Cumulatively, around 475 million people donated an aggregate of RMB 68.8 billion to 3.47 million patients through the crowdfunding platform [10]. AI and Technology Integration - The penetration of 'AI Insurance Expert - Medical Insurance' facilitated over RMB 2 million in monthly premiums [7]. - The 'AI Service Quality Copilot' improved unit operational efficiency by 83% since its launch [7]. Shareholder Value and Cash Position - The company distributed approximately US$ 7.3 million in cash dividends and repurchased around 54.2 million ADSs for a total consideration of approximately US$ 106.6 million as of May 31, 2025 [8][18]. - As of March 31, 2025, the cash position was RMB 3,543.3 million (US$ 488.3 million) [17].