Core Viewpoint - Waterdrop Inc. reported a 7% year-on-year revenue growth for Q1 2025, reaching 754 million RMB, driven primarily by its insurance-related income [1][3]. Revenue Composition - Insurance-related revenue was the dominant segment, amounting to 658 million RMB, reflecting an 8.4% increase year-on-year [1]. - Service fee income remained stable at 67.1 million RMB, showing no significant change compared to the same quarter last year [1]. - Revenue from digital clinical trial solutions grew by 11.5%, reaching 23 million RMB [1]. Financial Operations - Since initiating a stock repurchase program in September 2021, the company has repurchased approximately 54.2 million American Depositary Shares (ADS) by May 31, 2025 [3]. - In May, the company distributed a cash dividend of 7.3 million USD, indicating a commitment to shareholder returns [3]. - Operating expenses for Q1 2025 were 678 million RMB, a 3% increase year-on-year, with operational costs rising by 13% to 374.2 million RMB [3]. - Sales and marketing expenses decreased by 5.4% to 172.4 million RMB, while general and administrative expenses fell by 15.8% to 74.9 million RMB [3]. - Research and development expenses remained stable at 56.2 million RMB [3]. Profitability - The company achieved an operating profit of 75.9 million RMB in Q1 2025, with an operating profit margin of 10.1% [3]. - Net profit for Q1 2025 was 104 million RMB, demonstrating strong profitability [5]. Cash Flow - As of March 31, 2025, the company held cash reserves of 3.543 billion RMB, slightly down from 3.670 billion RMB at the end of 2024, but still maintaining a healthy cash flow position [5].