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Waterdrop Inc. Reports Strong Financial Performance in Q1 2025

Waterdrop Inc. has released its financial results for the first quarter of 2025, showcasing a robust performance driven by growth in profits and innovative product offerings. The company, operating in the realms of insurance and healthcare service, has reported substantial increases in both net profit and operating revenue.

Financial Highlights

In the first quarter of 2025, Waterdrop reported a net profit of RMB 108.2 million (approximately US$14.9 million), marking a remarkable 34.2% increase year-over-year. This achievement underscores the company's solid operational footing as it continues to generate positive cash flow.

Operating revenue also experienced a significant uplift, reaching RMB 753.7 million (around US$103.9 million), which is a 7% increase from the previous year. This growth can be attributed to enhanced performance in various segments, particularly the company's insurance brokerage and medical crowdfunding services.

Insurance Business Growth

Waterdrop's insurance segment has seen further development, with first-year premiums reaching RMB 2,092.4 million (or US$288.3 million), an increase of 19.3% compared to the same period last year. The company has refined its user acquisition strategies and bolstered its services, resulting in a 30.1% rise in short-term insurance premiums. Notably, the upgrade of their flagship insurance product, 'Jiehaoyun', to version 5.0 reflects Waterdrop’s commitment to continuous innovation. Additionally, they have launched a groundbreaking Million Medical Insurance product that is unique in offering a waiver for health declarations and renewable coverage for up to five years.

Medical Crowdfunding Advances

The company has also expanded its crowdfunding initiatives, which have proven to be critical to its operational success. By the end of Q1 2025, approximately 475 million people had contributed around RMB 68.8 billion toward the medical expenses of 3.47 million patients through Waterdrop Medical Crowdfunding. This expansion has strengthened its risk control framework and improved validation processes, enhancing both reliability and efficiency in managing crowdfunding campaigns.

Patient Recruitment and Clinical Trials

Waterdrop's E-Find Platform continues to excel in patient recruitment for clinical trials, enrolling 11,217 patients into 1,281 clinical programs as of March 31, 2025. This is a testament to the company's ongoing collaboration with pharmaceutical firms and CROs, which enhances its reputation and capability in the digital clinical trial space.

Innovative Technology and AI Applications

The role of AI in Waterdrop's strategy is becoming increasingly pronounced, with applications such as the 'AI Insurance Expert - Medical Insurance', contributing to premium revenues exceeding 2 million yuan monthly. The 'AI Service Quality Copilot' has further improved operational efficiency by 83% since its launch. Collaborations with Property and Casualty insurers have set new benchmarks for industry standards, leveraging AI to redefine insurance practices and customer service.

Share Buybacks and Long-Term Growth

Waterdrop has actively managed its capital structure, having distributed approximately US$7.3 million in cash dividends while also executing share repurchase programs totaling around 54.2 million ADSs by the end of May 2025. This strategic move emphasizes its dedication to enhancing shareholder value and reflects a positive outlook for the company’s future growth.

Conclusion

Looking ahead, Waterdrop is poised to accelerate its operational growth through strategic innovation and expansion of services. With an unwavering commitment to its user-centric philosophy, the company aims to create greater value for its users and shareholders throughout 2025 and beyond. As Waterdrop navigates the challenges of an evolving insurance and healthcare landscape, its combination of technology-driven solutions and social impact sets it apart in the industry, maximizing both financial performance and societal benefits.

For more detailed financial insights and strategic direction, Waterdrop Inc. will hold an earnings conference call on June 5, 2025, at 8:00 AM U.S. Eastern Time. Participants are encouraged to join and partake in discussions regarding the company's continued growth trajectory.

About Waterdrop Inc.

Waterdrop Inc. (NYSE: WDH) is a technology platform dedicated to insurance and healthcare services, focusing on providing innovative solutions for social good. Founded in 2016, Waterdrop continues to revolutionize access to insurance and healthcare, enhancing the lives of millions through its digital platforms. Visit www.waterdrop-inc.com for more information.