Core Insights - Waterdrop Inc. reported a net operating revenue of RMB 838.0 million for Q2 2025, marking a 23.9% year-over-year increase, with a net profit of RMB 140.2 million, up 58.7% from the previous year, maintaining profitability for the fourteenth consecutive quarter [1] - The company has repurchased approximately 55.7 million American Depositary Shares (ADSs) since September 2021 and approved a cash dividend of US$10.9 million, a 50% increase over the previous dividend [2] Insurance Business Performance - Insurance-related revenue reached RMB 738.6 million in Q2 2025, a 28.7% year-over-year increase, with operating profit at RMB 170.9 million, up 39% year-over-year [3] - First-year premiums (FYPs) generated by the insurance business amounted to RMB 3,204.3 million, reflecting an 80.2% year-over-year increase, with short-term policies growing by 95.0% and long-term policies by 45.4% [4][3] Product Innovations - Waterdrop introduced the first Million Medical Insurance policy with no health declaration required and guaranteed renewal for five years, targeting users with chronic conditions [5] - The upgraded maternity insurance product "Jie Hao Yun" now covers mothers with pre-existing conditions, and the suite of insurance products for pre-existing conditions has lowered entry barriers for users [5] Medical Crowdfunding Achievements - Waterdrop Medical Crowdfunding raised a cumulative RMB 70 billion for 3.54 million patients, with around 480 million people participating in donations [6] - The platform launched 'Waterdrop Co-Help' in partnership with Guangzhou's Civil Affairs Bureau, integrating social and public welfare resources [7] Digital Clinical Trials - The E-Find Platform generated revenues of approximately RMB 27.7 million, a 34.2% year-over-year increase, enrolling 999 patients in Q2 2025 [8][9] - The platform expanded its collaboration to 198 pharmaceuticals and contract research organizations, initiating services for 114 new programs [9] AI Integration and Productivity - Monthly premiums facilitated by the 'AI Medical Insurance Expert' increased by 155% compared to the previous quarter, enhancing user experience through AI applications [10][11] - The company launched 'KEYI.AI', a real-time AI underwriting assistant, with plans to extend its availability to industry partners [11] Future Outlook - The CEO expressed confidence in the company's growth trajectory, emphasizing the integration of AI into sales and service processes, and the commitment to providing long-term value for users, partners, and shareholders [13]

Core Insights - Waterdrop Inc. reported a net operating revenue of RMB 753.7 million and a net profit of RMB 108.2 million for Q1 2025, marking a 34.2% increase year-over-year and achieving profitability for the thirteenth consecutive quarter [1] - The company has repurchased approximately 54.2 million American Depositary Shares (ADSs) since initiating its share repurchase program in September 2021 [2] Financial Performance - Insurance-related revenue reached RMB 658.0 million, an 8.4% increase year-over-year, with operating profit from the insurance business totaling RMB 151.4 million [3] - First-year premiums (FYPs) from the insurance business amounted to RMB 2,092.4 million, reflecting a 19.3% year-over-year increase [3] Business Growth and Innovation - Waterdrop's insurance business experienced a 30.1% year-over-year increase in short-term premiums, driven by refined user acquisition strategies and product innovation, including the upgrade of the "Jiehaoyun" product to version 5.0 [4] - The introduction of the Million Medical Insurance product offers unique features such as a health declaration waiver and guaranteed renewal for five consecutive years [4] Technological Advancements - The "AI Insurance Expert - Medical Insurance" application facilitated over RMB 2 million in monthly premiums, while the "AI Service Quality Copilot" improved operational efficiency by 83% [5] - Waterdrop has partnered with four property and casualty insurers to pilot AI-driven applications in the auto insurance sector [5] Social Impact - Waterdrop Medical Crowdfunding has raised a cumulative total of RMB 68.8 billion for 3.47 million patients, with around 475 million people participating in donations [6] - The Digital Clinical Trial Solution generated revenues of approximately RMB 23.0 million, an 11.5% year-over-year increase, with 11,217 patients enrolled in clinical trial programs [7] Leadership Commentary - The CEO emphasized the solid revenue and profit growth in Q1, highlighting the role of AI in enhancing service quality and the commitment to tech-driven value creation [8]

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].