Core Viewpoint - Waterdrop Inc. has demonstrated strong performance in Q3 2025, indicating a transition into a high-quality growth phase, supported by its AI strategy and shareholder return policies [1][2] Financial Performance - In Q3 2025, Waterdrop achieved a net operating revenue of 975 million yuan, a significant year-on-year increase of 38.4% [1] - The net profit attributable to shareholders reached 158 million yuan, reflecting a year-on-year growth of 60.1%, with the net profit margin expanding from 14.1% to 16.3% [1] AI Strategy and Implementation - The dual acceleration of revenue and profit in Q3 validates the effectiveness of Waterdrop's AI strategy, with the "AI Medical Insurance Expert" driving a remarkable 82% quarter-on-quarter increase in premium scale [2] - The introduction of the industry's first AI underwriting assistant, "KEYI.AI," has reduced complex case processing time from minutes to seconds, achieving an accuracy rate of 99.8% [2] - Waterdrop has launched the "Waterdrop Sea. AI" low-code platform, enabling employees to quickly build AI solutions, thereby reducing R&D and operational marginal costs [2] Management Insights - The CEO of Waterdrop emphasized that AI technology is the core driver for enhancing business quality and efficiency, leading to double-digit growth in revenue and profit [2] - The company aims to leverage technological advancements to deepen the integration and innovative application of AI across its business chain, ensuring long-term value for users, partners, and shareholders [2]

Core Viewpoint - Waterdrop Inc. has demonstrated strong performance in Q3 2025, indicating a transition into a high-quality growth phase, supported by its AI strategy and shareholder return policies [1][2] Group 1: Financial Performance - In Q3 2025, Waterdrop achieved a net operating revenue of 975 million yuan, a significant year-on-year increase of 38.4% [1] - The company's net profit attributable to shareholders reached 158 million yuan, reflecting a year-on-year growth of 60.1%, with the net profit margin expanding from 14.1% to 16.3% [1] - Waterdrop has maintained profitability for 15 consecutive quarters, showcasing its consistent financial health [1] Group 2: AI Strategy and Efficiency - The dual acceleration in revenue and profit in Q3 validates the effectiveness of Waterdrop's AI strategy, with premium scale driven by the "AI Medical Insurance Expert" increasing by 82% quarter-on-quarter [2] - The introduction of the AI underwriting assistant "KEYI.AI" has reduced complex case processing time from minutes to seconds, achieving an accuracy rate of 99.8%, thereby enhancing risk control efficiency [2] - Waterdrop has launched the "Waterdrop Sea. AI" low-code platform, enabling employees to quickly build AI solutions, which lowers R&D and operational marginal costs, creating a comprehensive technological moat [2] Group 3: Management Insights - The CEO of Waterdrop emphasized that AI technology is the core driver for enhancing business quality and efficiency, leading to double-digit growth in revenue and profit [2] - The company aims to leverage technological advancements to integrate AI capabilities throughout its business operations, ensuring sustainable growth and long-term value for users, partners, and shareholders [2]

Core Viewpoint - The roundtable discussion focused on the high-quality development path of the major illness fundraising industry, emphasizing the importance of information authenticity, fund security, and the division of responsibilities among stakeholders [1][2]. Group 1: Regulatory Framework and Implementation - The "Management Measures for Personal Assistance Network Service Platforms" was implemented in December 2023, establishing operational norms and regulatory requirements for platforms like Waterdrop Fundraising [1]. - The past year has highlighted the verification of fundraising information authenticity and fund security as essential compliance requirements for the industry [1][2]. Group 2: Challenges in Information Verification - A case involving a fundraiser who misrepresented their financial situation raised concerns about ensuring the authenticity of fundraising information [2]. - Experts noted that while the theoretical responsibilities of government, platforms, and third-party audits are clear, practical challenges exist due to the lack of access to comprehensive data across various departments [3]. Group 3: Solutions for Information Verification - Suggestions for improving information verification include establishing a cross-departmental information sharing mechanism and utilizing social networks for public oversight [4]. - Waterdrop Fundraising has implemented a "verification" and "reporting" mechanism, requiring fundraisers to be verified by acquaintances before withdrawing funds [4]. Group 4: Fund Security and Transparency - Waterdrop Fundraising has a fund custody agreement with Ping An Bank, ensuring that donations are kept in a separate account for secure management [5][6]. - Experts discussed the challenges of tracking whether funds are used for intended medical treatments, suggesting that platforms should require users to provide receipts and consider phased payments [6]. Group 5: Ethical Considerations in Fund Allocation - In a case where funds remained after a patient's death, Waterdrop Fundraising sought the opinions of 140,000 donors to determine the allocation of remaining funds, highlighting the importance of donor consent [7]. - Experts expressed differing views on whether remaining funds could be used for other family needs, emphasizing the need for collaborative solutions rather than rigid rules [7]. Group 6: Building Trust through Transparency - Trust in the major illness fundraising sector relies on information transparency and collaboration among various stakeholders, including government, platforms, and third-party audits [8]. - The industry plays a crucial role in addressing the "last mile" of patient assistance, with nearly 4 million patients incurring out-of-pocket medical expenses exceeding 50,000 yuan annually [8]. Group 7: Insurance and Risk Awareness - Discussions included the potential for fundraising platforms to offer insurance products, enhancing public awareness of insurance needs related to major illnesses [10]. - Experts emphasized the importance of informing users about insurance options and respecting their rights to make informed choices [10].

Core Viewpoint - Waterdrop Inc. has demonstrated strong financial performance in Q3 2025, driven by robust core business expansion and enhanced operational efficiency through technology, particularly AI [1][2]. Financial Performance - In Q3 2025, Waterdrop achieved a net operating revenue of 975 million yuan, representing a significant year-on-year increase of 38.4% [1]. - The company's net profit attributable to shareholders reached 158 million yuan, marking a year-on-year growth of 60.1%, indicating improved profitability [1]. - The insurance segment, as a cornerstone of the business, generated revenue of 870 million yuan, up 44.8% year-on-year [1]. Operational Efficiency - The report highlights that the increase in revenue and profit growth is attributed to the company's refined operations and technological empowerment [2]. - AI technology has been pivotal in enhancing the operating profit margin, with operating expenses as a percentage of revenue decreasing by 8.3 percentage points to 39.6% [2]. - The operating profit from the insurance business grew by 44.0% year-on-year, showcasing the effectiveness of AI in improving operational efficiency [2]. AI Technology Impact - The application of AI, such as the "AI Medical Insurance Expert" service, has been a key catalyst for premium growth, contributing to an 82% increase in premiums [1]. - The large-scale deployment of AI customer service, represented by "Bao Xiaohui," has significantly improved user service efficiency and experience [2]. - The AI quality inspection assistant has enhanced productivity, achieving a performance level 2.4 times that of a purely manual model [2]. Future Outlook - The company plans to continue leveraging advancements in AI technology to drive high-quality growth and deepen integration across its business operations [3]. - Waterdrop aims to explore AI agents with multimodal interaction capabilities to handle more complex insurance inquiries and services, potentially elevating productivity to new heights [2].

Core Viewpoint - The "Green and Sustainable Finance Forum 2025" held in Hong Kong recognized Waterdrop Inc. for its outstanding contributions in the ESG field, highlighting the importance of sustainable finance in the region [1][3]. Group 1: Event Overview - The forum attracted over 400 senior executives from various sectors, including government, banks, financial institutions, and academia [1]. - The event featured the "Hong Kong Green and Sustainable Finance Awards 2025," where Waterdrop Inc. received the "ESG Disclosure Contribution Pioneer Award" for its achievements in ESG practices and information disclosure [1][3]. Group 2: Waterdrop Inc. Achievements - Waterdrop Inc. has been recognized for its long-term commitment to sustainable development and continuous improvement of its ESG governance system [3]. - The company released its 2024 ESG report, detailing its efforts in corporate governance, technological innovation, product responsibility, talent development, and environmental protection [6]. Group 3: Social Contributions - Waterdrop Inc. has focused on aiding vulnerable groups and has made significant contributions to public welfare, including helping 3.61 million patients and raising 71.2 billion yuan in funds through its platform [7]. - The company has established 188 rural medical rooms, benefiting over 500,000 individuals, and collaborated with 119 charitable organizations to launch over 1.55 million public welfare projects [7]. Group 4: International Expansion - Waterdrop Inc. has accelerated its international expansion, establishing offices in Hong Kong, Singapore, and the United States, and has adopted a dual headquarters model [7]. - The establishment of a licensed insurance brokerage in Hong Kong aims to provide professional insurance brokerage and wealth planning services to individual and corporate clients [8].

Core Insights - Waterdrop Company is leveraging AI technology to transform health insurance services from "manual reliance" to "intelligent decision-making" by 2025 [1][2] - The launch of the AI underwriting expert "KEYI.AI" has significantly improved underwriting efficiency, reducing average processing time by 80%, response speed by 260 times, and achieving an accuracy rate of 99.8% [1][4] Group 1: AI Underwriting Transformation - The traditional health insurance underwriting process is plagued by inefficiencies, with an average processing time of 3-5 days and a high likelihood of misjudgment due to human error [2][3] - "KEYI.AI" integrates a professional knowledge base with large model reasoning capabilities, allowing for rapid analysis of user health information and precise matching with insurance policy requirements [3][4] - The system can provide underwriting conclusions in as little as 10 seconds, addressing issues of ambiguity and lack of clarity in traditional processes [3][4] Group 2: Comprehensive AI Integration - Waterdrop is extending AI capabilities across the entire insurance service chain, creating a smart closed loop from underwriting to customer service, sales, and claims [4][5] - The AI customer service tool "Bao Xiaohui" has been upgraded to support voice interaction, significantly improving service efficiency and reducing customer query handling time [5][6] - The claims process has been enhanced by the introduction of the AI digital employee "Bang Bang," which automates claims material identification and progress tracking, reducing processing time by 43.3% [7][8] Group 3: Industry Collaboration and Ecosystem Building - Waterdrop is promoting digital transformation in the health insurance industry by sharing AI capabilities and collaborating with insurance companies to create inclusive product offerings [8][9] - The establishment of the "Inclusive Product Alliance" aims to develop specialized products for underserved groups, resulting in the launch of 214 insurance products by November 2025 [8][9] - The focus on vertical integration of AI applications in the insurance sector marks a shift from generic technology to specialized solutions tailored for industry needs [9][10] Group 4: Future Outlook and Value Creation - The application of AI in health insurance is expected to shift from labor-intensive models to intelligent collaborative frameworks, enhancing automation in underwriting and customer service [10][11] - Waterdrop's approach demonstrates a dual focus on efficiency and inclusive protection, validating the potential of AI to create both commercial and social value [11][12] - The ongoing evolution of large model technology and integration with medical data is anticipated to further advance the health insurance sector towards smarter and more inclusive solutions [11][12]

Core Insights - Waterdrop Inc. participated in the "Jinqing Help" innovative model for digital healthcare poverty alleviation, which has gained international recognition as a global best poverty reduction case [1][4] - The "Global Poverty Case Collection Activity" aims to promote successful poverty alleviation practices worldwide, with Waterdrop's initiative being highlighted among 637 recommended cases from over 4,500 submissions [1][2] Group 1 - The "Jinqing Help" project focuses on proactive poverty prevention by identifying high medical expenses and facilitating multi-departmental collaboration to assist vulnerable populations [2][3] - The project has successfully monitored 100% of the population in Jinyun County, identifying 20,000 individuals with high out-of-pocket medical expenses and providing assistance to 720 people, totaling 16.22 million yuan in aid [4] - Waterdrop's innovative approach has led to a 16.14% reduction in personal medical expenses and a 15% increase in comprehensive insurance coverage in the region [4] Group 2 - The initiative has received multiple accolades, including recognition as the best application in Zhejiang Province's digital society and third place in the National Smart Medical Insurance Competition [4] - Waterdrop plans to replicate and promote the successful "Jinqing Help" model in other regions, expanding diverse assistance channels to benefit more families in need [4]

Core Viewpoint - The 2025 Global Poverty Reduction Partnership Seminar held in Beijing highlighted the importance of collaborative efforts in addressing poverty challenges, showcasing the successful inclusion of the "JinQingBang" innovative model by Waterdrop Company as a global best practice in poverty alleviation [1][3]. Group 1: Global Poverty Reduction Case Collection - The "Global Poverty Reduction Case Collection" initiative aims to gather original and outstanding poverty alleviation cases from organizations and individuals worldwide, promoting successful practices through published case studies and visual products [3]. - Since its launch in 2018, the initiative has collected over 4,500 poverty alleviation cases and selected 637 recommended cases from 88 countries and regions, receiving positive responses both domestically and internationally [3]. Group 2: JinQingBang Project Overview - The "JinQingBang" project, initiated by Waterdrop Company in collaboration with local government and health authorities, addresses the issue of poverty caused by medical expenses in Jinyun County, Zhejiang Province [5][7]. - The project focuses on proactive poverty prevention by identifying high medical expenses and coordinating multi-departmental support to assist affected individuals in rebuilding their capabilities [7]. Group 3: Impact and Achievements - As of November 2025, the "JinQingBang" project has monitored 100% of the population in Jinyun County, identifying 20,000 individuals with high out-of-pocket medical expenses and providing assistance to 720 people, totaling 16.22 million yuan in aid [9]. - The initiative has successfully reduced the total personal medical expenses by 16.14% and improved the comprehensive insurance coverage rate by 15%, establishing a robust safety net against poverty due to medical costs [9]. Group 4: Future Plans and Recognition - Waterdrop Company plans to replicate and promote the successful experiences of the "JinQingBang" project in collaboration with local governments, aiming to expand diverse assistance channels for more families in need [11]. - The innovative case has received multiple accolades, including recognition as the best application in Zhejiang Province's digital society and third place in the National Smart Medical Insurance Competition, further solidifying its status as a benchmark in poverty prevention [11].

Core Viewpoint - The 2025 Global Poverty Reduction Partnership Seminar held in Beijing highlighted the importance of collaborative efforts in addressing poverty challenges, showcasing the "Jinqing Help" innovative model by Waterdrop Company as a global best practice in poverty alleviation [1][2]. Group 1: Global Poverty Reduction Case Collection - The "Global Poverty Reduction Case Collection" initiative aims to gather original and outstanding poverty alleviation cases from around the world, promoting successful practices through published case collections and visual products [2]. - Since its launch in 2018, the initiative has received over 4,500 poverty alleviation cases, with 637 selected from 88 countries and regions, generating positive responses both domestically and internationally [2]. - The initiative has become an important global public product, providing decision-makers and practitioners with effective solutions to real community challenges [2]. Group 2: "Jinqing Help" Model - The "Jinqing Help" project, initiated by Waterdrop Company in collaboration with local government and health authorities, addresses the issue of poverty caused by medical expenses in Jinyun County, Zhejiang Province [4]. - The project shifts from "passive relief" to "proactive poverty prevention," utilizing a closed-loop process to identify and assist individuals facing high medical costs [5]. - By integrating multiple support channels, the project has successfully reduced the financial burden on individuals, with a total assistance amount of 16.22 million yuan, leading to a 16.14% reduction in personal medical expenses [7][9]. Group 3: Future Prospects - Waterdrop Company plans to continue collaborating with local governments to replicate and promote the successful experiences of the "Jinqing Help" model, expanding diverse assistance channels to benefit more families in need [9]. - The "Jinqing Help" model has received several accolades, including recognition as the best application in Zhejiang Province's digital society and a third prize in the National Smart Medical Insurance Competition, establishing it as a benchmark in poverty prevention [9].

Summary of Waterdrop Conference Call Company Overview - **Company**: Waterdrop - **Industry**: Insurance and Healthcare Services - **Founded**: 2016 - **Key Offerings**: Medical crowdfunding platform, insurance marketplace, and clinical trial patient matching platform [2][3] Core Business Segments 1. **Digital Insurance Brokerage**: Largest segment contributing nearly 90% of total revenue, operating under brands Waterdrop, Shenlanbao, and Waterdrop Financial [4][5][15] 2. **Medical Crowdfunding**: Charges a 6% service fee on raised funds, with a $1,000 fee per campaign [5][6] 3. **E-Find**: Charges pharmaceutical clients a fixed price per patient enrolled [6] Financial Performance - **Q3 2025 Revenue**: Over $136 million, with a net profit of over $22 million (16% margin) [15][16] - **Revenue Growth**: Insurance segment revenue increased 45% year-over-year to $122 million; total revenue up by almost 40% year-on-year [17][18] - **Cash Reserves**: Approximately $490 million as of September 2025; committed to shareholder returns with a recent dividend payout of $10.9 million [16][19] Market Insights - **Insurance Market Size**: $600 billion total premium paid annually in China, with 40% of healthcare expenditure from out-of-pocket payments [7][8] - **Market Penetration**: Only 7% of insurance policies sold by third-party brokers in China, compared to higher percentages in the U.S. and U.K. [8][9] Customer Acquisition and Retention - **Customer Segmentation**: Short-term plans account for 60-70% of total premium, while long-term plans contribute 50% of revenue [22] - **Retention Rates**: Approximately 50% for short-term plans and over 90% for long-term plans [23] Technology and Innovation - **AI Utilization**: AI enhances customer acquisition, underwriting, and operational efficiency, with 70% of customer service requests processed by AI [26][28] - **Investment in R&D**: Approximately $8.2 million spent on R&D in the latest quarter [18] Regulatory Environment - **Stability in Regulations**: Recent commission rate caps have stabilized the regulatory environment, allowing for healthier business operations [29][30] Competitive Landscape - **Market Position**: Waterdrop operates in a large, underserved market with limited direct competition, focusing on scalable and sustainable business models [30][31] Capital Allocation Strategy - **Dividends and Buybacks**: Consistent dividend payouts and share buyback programs, with a focus on balancing growth investments and shareholder returns [32] Future Outlook - **Growth Projections**: Guidance for over 20% year-on-year growth in revenue and profits, with confidence in surpassing this target [19][20] Conclusion - Waterdrop is positioned to capture significant opportunities in the growing insurance market, leveraging technology and a proven business model to drive profitability and shareholder value [20]