Waterdrop Inc. Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results and a Cash Dividend
BEIJING, March 12, 2025 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare service with a positive social impact, today announced its unaudited financial results for the three and twelve months ended December 31, 2024 and a cash dividend.
Financial and Operational Highlights for the Fourth Quarter of 2024
-- Marked improvement in profitability and healthy liquidity: In the fourth
quarter of 2024, net profit attributable to our ordinary shareholders
reached RMB99.6 million (US$13.6 million), representing a year-over-year
growth of 68.7%. We continued to generate positive operating cash flow
during the fourth quarter of 2024.
-- Solid business performance: For the fourth quarter of 2024, the
first-year premiums ("FYP") generated through our insurance business
amounted to RMB1,897.9 million (US$260.0 million), representing an
increase of 24.5% year over year. Net operating revenue was RMB686.8
million (US$94.1 million), representing an increase of 4.2% year over
year.
-- Expanded crowdfunding coverage: As of December 31, 2024, around 470
million people cumulatively had donated an aggregate of RMB67.5 billion
to 3.40 million patients through Waterdrop Medical Crowdfunding.
-- Dependable performance in patient recruitment: As of December 31, 2024,
the Company had cumulatively enrolled 10,395 patients into 1,212
clinical trial programs through the E-Find Platform.
Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "We are pleased to report a set of outstanding financial results for the fourth quarter and the full year of 2024. We have sustained remarkable profitability and doubled our annual net profit attributable to ordinary shareholders, attaining a 119.8% year-on-year increase.
Our insurance business capped off the year with an annual FYP of RMB7,472.8 million (US$1,023.8 million), marking a 5.1% year-over-year growth. Throughout the fourth quarter, we honed our focus on optimizing customer acquisition channels and diversifying product offerings, which yielded robust outcomes. Our targeted acquisition strategies spurred a 14.9% year-over-year surge in new user acquired. Leveraging user insights, we introduced more inclusive short-term insurance products in this quarter, including medical plans tailored for individuals with pre-existing conditions. Furthermore, we sustained our efforts to enhance and diversify our long-term insurance offerings, with disability income insurance alone achieving an FYP exceeding RMB90 million.
As a milestone, Waterdrop Medical Crowdfunding has been officially recognized as a pioneer in China's standardized medical crowdfunding sector. Following new legislation changes, the platform secured designation from the Ministry of Civil Affairs on December 25, 2024, becoming one of the first batch state-endorsed 'Online Service Platforms for Individuals Seeking Financial Help'.
During this quarter, our digital clinical trial solution income continued its growth, realizing a year-over-year increase of 22.9%. We collaborated with a total of 177 pharmaceutical companies and contract research organizations ("CROs"). Moreover, we enrolled 880 patients and initiated services for 79 new programs during the fourth quarter of 2024.
Alternatively, we recently announced the strategic integration and local deployment of DeepSeek models, which marks a significant step forward in our AI-driven insurance ecosystem. Utilizing advanced AI models, Waterdrop's AI Insurance Expert now supports multi-modal interactions, including voice and text. The system excels in managing complex dialogues and assisting with sales strategies, autonomously handling voice communications and consultations for medical insurance products.
Our every decision is guided by the principles of maximizing and prioritizing shareholders' returns. By the end of February 2025, the Company had cumulatively repurchased approximately 52.1 million ADSs from the open market. We are also pleased to announce that, with the board approval, the Company will soon start another cash dividend of approximately US$7.3 million.
Looking ahead to 2025, we aim for faster growth and to scale up our business operations, all the while continuing to contribute to profitability, by using technology to enhance our core competitiveness."
Financial Results for the Fourth Quarter of 2024
Operating revenue, net
Net operating revenue for the fourth quarter of 2024 increased by 4.2% year over year to RMB686.8 million (US$94.1 million) from RMB659.4 million for the same period of 2023. On a quarter-over-quarter basis, net operating revenue decreased by 2.5%.
-- Insurance-related income includes insurance brokerage income and
technical service income. Insurance brokerage income represents
brokerage commissions earned from insurance companies. Technical service
income is derived from providing technical services including customer
relationship maintenance, customer complaint management, claim review,
and user referral services, among other things, to insurance companies,
insurance brokers, and agency companies. Our insurance-related income
amounted to RMB582.4 million (US$79.8 million) in the fourth quarter of
2024, representing a decrease of 0.9% year over year from RMB587.9
million for the fourth quarter of 2023, which was mainly due to the
decrease in technical service income. On a quarter-over-quarter basis,
insurance-related income decreased by 3.0%.
-- Crowdfunding service fees represent the service income earned when
patients successfully withdraw the proceeds from their crowdfunding
campaigns. Our role is to operate the Waterdrop Medical Crowdfunding
platform to provide crowdfunding related services through the internet,
enabling patients with significant medical bills to seek help from
caring hearts through technology (the "medical crowdfunding services").
Our medical crowdfunding services generally consist of providing
technical and internet support, managing, reviewing and supervising the
crowdfunding campaigns, providing comprehensive risk management and
anti-fraud measures, and facilitating the collection and transfer of the
funds. For the fourth quarter of 2024, we generated RMB65.1 million
(US$8.9 million) in service fees, representing an increase of 62.8% year
over year from RMB40.0 million for the fourth quarter of 2023. On a
quarter-over-quarter basis, crowdfunding service fees decreased by 1.1%.
-- Digital clinical trial solution income represents the service income
earned from our customers mainly including biopharmaceutical companies
and leading biotechnology companies. We match qualified and suitable
patients for enrollment in clinical trials for our customers and
generate digital clinical trial solution revenue for successful matches
and we typically charge our customers a fixed unit price per successful
match. For the fourth quarter of 2024, our digital clinical trial
solution income amounted to RMB25.5 million (US$3.5 million),
representing an increase of 22.9% from RMB20.8 million in the same
period of 2023. On a quarter-over-quarter basis, digital clinical trial
solution income increased by 5.2%.
Operating costs and expenses
Operating costs and expenses increased by 0.2% year over year to RMB633.9 million (US$86.8 million) for the fourth quarter of 2024. On a quarter-over-quarter basis, operating costs and expenses decreased by 6.5%.
-- Operating costs increased by 7.2% year over year to RMB323.8 million
(US$44.4 million) for the fourth quarter of 2024, as compared with
RMB302.1 million for the fourth quarter of 2023, which was primarily
driven by (i) an increase of RMB39.1 million in costs of referral and
service fees, partially offset by (ii) a decrease of RMB3.6 million in
personnel costs. On a quarter-over-quarter basis, operating costs
decreased by 4.9% from RMB340.6 million, primarily due to (i) a decrease
of RMB13.2 million in costs of referral and service fees, partially
offset by (ii) an increase of RMB5.7 million in personnel costs.
-- Sales and marketing expenses increased by 4.1% year over year to
RMB182.0 million (US$24.9 million) for the fourth quarter of 2024, as
compared with RMB174.8 million for the same quarter of 2023. The
increase was primarily due to (i) an increase of RMB30.2 million in
marketing expenses for third-party traffic channels, and partially
offset by (ii) a decrease of RMB22.8 million in personnel costs and
share-based compensation expenses. On a quarter-over-quarter basis,
sales and marketing expenses increased by 5.1% from RMB173.2 million,
primarily due to (i) an increase of RMB11.9 million in marketing
expenses to third-party traffic channels, (ii) an increase of RMB2.5
million in sales and marketing personnel costs and share-based
compensation expenses, and partially offset by (iii) a decrease of
RMB5.7 million in outsourced sales and marketing service fees to third
parties.
-- General and administrative expenses decreased by 23.2% year over year to
RMB73.7 million (US$10.1 million) for the fourth quarter of 2024,
compared with RMB96.0 million for the same quarter of 2023. The
year-over-year variance was due to (i) a decrease of RMB22.3 million in
allowance for credit losses, (ii) a decrease of RMB2.7 million in
professional service fees, partially offset by (iii) an increase of
RMB5.7 million in personnel costs and share-based compensation expenses.
On a quarter-over-quarter basis, general and administrative expenses
decreased by 33.6% from RMB111.0 million, due to (i) a non-cash
impairment of intangible assets related to Shenlanbao of RMB20.6 million
recorded in the third quarter of 2024, with no corresponding item in the
fourth quarter, (ii) a decrease of RMB13.7 million allowance for credit
losses, and (iii) a decrease of RMB5.4 million in personnel costs and
share-based compensation expenses.
-- Research and development expenses decreased by 9.3% year over year to
RMB54.3 million (US$7.4 million) for the fourth quarter of 2024,
compared with RMB59.8 million for the same period of 2023. The decrease
was primarily due to a decrease of RMB5.8 million in personnel costs and
share-based compensation expenses. On a quarter-over-quarter basis,
research and development expenses slightly increased by 2.5% from
RMB53.0 million.
Operating profit for the fourth quarter of 2024 was RMB53.0 million (US$7.3 million), as compared with RMB26.6 million for the fourth quarter of 2023 and RMB26.5 million for the third quarter of 2024.
Interest income for the fourth quarter of 2024 was RMB35.8 million (US$4.9 million), as compared with RMB34.7 million for the fourth quarter of 2023 and RMB36.0 million for the third quarter of 2024.
Income tax expense for the fourth quarter of 2024 was RMB1.9 million (US$0.3 million), as compared with RMB15.2 million for the fourth quarter of 2023 and an income tax benefit of RMB7.8 million for the third quarter of 2024.
Net profit attributable to the Company's ordinary shareholders for the fourth quarter of 2024 was RMB99.6 million (US$13.6 million), as compared with RMB59.1 million for the same period of 2023, and RMB99.0 million for the third quarter of 2024.
Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP((1))) for the fourth quarter of 2024 was RMB107.1 million (US$14.7 million), as compared with RMB74.7 million for the same period of 2023, and RMB126.0 million for the third quarter of 2024.
Financial Results for the Fiscal Year of 2024
Net operating revenue for the year of 2024 increased by 5.4% year over year to RMB2,771.8 million (US$379.7 million) from RMB2,630.7 million for the year of 2023, which was primarily due to the increase of crowdfunding service fees and insurance related income.
-- Our insurance-related income amounted to RMB2,363.8 million (US$323.8
million) in 2024, representing an increase of 1.0% year over year from
RMB2,340.9 million for the year of 2023, which was mainly due to the
increase in insurance brokerage income.
-- Our crowdfunding service fees amounted to RMB267.7 million (US$36.7
million) in 2024, representing an increase of 64.5% year over year from
RMB162.7 million for the year of 2023.
-- Our digital clinical trial solution income amounted to RMB91.1 million
(US$12.5 million) in 2024, representing a decrease of 9.4% year over
year from RMB100.5 million for the year of 2023.
Operating costs and expenses
Operating costs and expenses decreased by 1.7% year over year to RMB2,593.7 million (US$355.3 million) for the year of 2024, mainly due to the effective cost control measures.
-- Operating costs increased by 10.0% year over year to RMB1,314.7 million
(US$180.1 million) for the year of 2024, compared with RMB1,195.5
million for the year of 2023, which was primarily driven by (i) an
increase of RMB138.8 million in costs of referral and service fees,
partially offset by (ii) a decrease of RMB12.3 million in the costs for
crowdfunding consultants team, and (iii) a decrease of RMB10.3 million
in the costs for digital clinical trial solution consultants team.
-- Sales and marketing expenses decreased by 6.2% year over year to
RMB694.8 million (US$95.2 million) for the year of 2024, compared with
RMB740.5 million for the year of 2023. The decrease was primarily due to
(i) a decrease of RMB93.1 million in personnel costs and share based
compensation costs, partially offset by (ii) an increase of RMB40.6
million in marketing expenses to third-party traffic channel, and (iii)
an increase of RMB12.5 million in outsourced sales and marketing service
fees to third parties.
-- General and administrative expenses decreased by 8.6% year over year to
RMB367.7 million (US$50.4 million) for the year of 2024, compared with
RMB402.4 million for the year of 2023. The year-over-year variance was
due to (i) a decrease of RMB32.5 million in the professional service
fee, (ii) a decrease of RMB18.3 million in general and administrative
personnel costs and share-based compensation expenses, (iii) a decrease
of RMB5.9 million in office rental and office administrative expenses,
partially offset by (iv) a non-cash impairment of intangible assets
related to Shenlanbao of RMB20.6 million recorded in 2024, and (v) an
increase of RMB9.6 million in allowance for credit losses.
-- Research and development expenses decreased by 27.6% year over year to
RMB216.5 million (US$29.7 million) for the year of 2024, compared with
RMB299.1 million for the year of 2023. The decrease was primarily due to
a decrease of RMB79.9 million in research and development personnel
costs and share-based compensation expenses.
Operating profit for the year of 2024 was RMB178.2 million (US$24.4 million), compared with an operating loss of RMB6.7 million for the year of 2023.
Interest income for the year of 2024 was RMB149.1 million (US$20.4 million), compared with RMB136.0 million for the year of 2023.
Income tax expense for the year of 2024 was RMB9.7 million (US$1.3 million), compared with RMB0.6 million for the year of 2023.
Net profit attributable to the Company's ordinary shareholders for the year of 2024 was RMB367.5 million (US$50.3 million), compared to RMB167.2 million for the year of 2023.
Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP) for the year 2024 was RMB440.2 million (US$61.2 million), compared to RMB295.6 million for the year of 2023.
Cash position((2))
As of December 31, 2024, cash position of the Company was RMB3,670.3 million (US$502.8 million), as compared with RMB3,571.6 million as of December 31, 2023.
(1) See the sections entitled "Non-GAAP Financial Measure" and "Reconciliations of GAAP and Non-GAAP Results" for
more information about the non-GAAP measures referred to in this announcement.
(2) Cash position includes cash and cash equivalents, short-term investments, and long-term debt investments included in
long-term investments.
Share Repurchase Programs
Pursuant to the share repurchase programs launched in September 2021, September 2022, September 2023 and September 2024, respectively, we had cumulatively repurchased approximately 52.1 million ADSs from the open market with cash for a total consideration of approximately US$103.7 million as of February 28, 2025.
Cash Dividend
The Board has approved a cash dividend of US$0.02 per ADS or US$0.002 per ordinary share, for a total amount of approximately US$7.3 million, to shareholders of record as of the close of business on April 11, 2025. The payment date is expected to be on or around April 30, 2025 for holders of ordinary shares and on or around May 2, 2025 for holders of ADSs.
Supplemental Information
We organize and report our business in three operating segments:
-- Insurance, which mainly includes Waterdrop Insurance Marketplace,
Shenlanbao Insurance Marketplace and technical support service;
-- Crowdfunding, which mainly includes Waterdrop Medical Crowdfunding; and
-- Others, which mainly include Digital Clinical Trial Solution and other
new initiatives.
The table below sets forth the segment operating results, with the twelve-month comparative figures retrospectively adjusted to conform to this presentation.
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* Starting from the second quarter of 2023, our chief operating decision maker began managing the business through three
operating segments and assessing performance and allocating resources under this new operating segment structure. The
twelve-month comparative figures were retrospectively adjusted to conform to this presentation.
** The share-based compensation and impairment of intangible assets acquired from business combination represent
unallocated items in the segment information because our management does not consider these as part of the segment
operating performance measure.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars ("USD" or "US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
Non-GAAP Financial Measure
The Company uses non-GAAP financial measure, adjusted net profit attributable to our ordinary shareholders, in evaluating the Company's operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profit attributable to our ordinary shareholders excluding share-based compensation expense attributable to our ordinary shareholders, foreign currency exchange gain or losses, impact of terminating the mutual aid plan, impairment of intangible assets acquired from business combination and related tax effects on non-GAAP adjustments.
The non-GAAP financial measure is not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measure has limitations as analytical tools and when assessing the Company's operating performance, investors should not consider it in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Investors are encouraged to review the Company's historical non-GAAP financial measure to the most directly comparable GAAP measure. Adjusted net profit attributable to our ordinary shareholders presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measure differently, limiting its usefulness as a comparative measure to our data.
The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance.
For more information on the non-GAAP financial measure, please see the table captioned "Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. Waterdrop may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Waterdrop's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Waterdrop's mission, goals and strategies; Waterdrop's future business development, financial condition and results of operations; the expected growth of the insurance, medical crowdfunding and healthcare industry in China; Waterdrop's expectations regarding demand for and market acceptance of our products and services; Waterdrop's expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance, medical crowdfunding and healthcare industry. Further information regarding these and other risks is included in Waterdrop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Waterdrop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Conference Call Information
Waterdrop's management team will hold a conference call on March 12, 2025 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time on the same day) to discuss the financial results. Dial-in details for the earnings conference call are as follows:
International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Hong Kong Toll Free: 800-963976
Hong Kong: 852-58081995
Mainland China: 4001-206115
Chinese Line (Mandarin) Entry Number: 8850389
English Interpretation Line (Listen-only Mode) Entry Number: 2865357
Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call.
Telephone replays will be accessible two hours after the conclusion of the conference call until March 19, 2025 by dialing the following numbers:
United States Toll Free: 1-877-344-7529
International: 1-412-317-0088
Chinese Line Access Code: 3826090
English Interpretation Line Access Code: 4441327
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.waterdrop-inc.com/.
About Waterdrop Inc.
Waterdrop Inc. (NYSE: WDH) is a leading technology platform dedicated to insurance and healthcare service with a positive social impact. Founded in 2016, with the comprehensive coverage of Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding, Waterdrop aims to bring insurance and healthcare service to billions through technology. For more information, please visit www.waterdrop-inc.com.
For investor inquiries, please contact
Waterdrop Inc.
IR@shuidi-inc.com
WATERDROP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, unless otherwise noted)
As of
December 31,2023 December 31, 2024
RMB RMB USD
Assets
Current assets
Cash and cash equivalents 396,905 986,323 135,126
Restricted cash 577,121 520,588 71,320
Short-term investments 2,996,527 1,612,619 220,928
Accounts receivable, net 693,110 716,206 98,120
Current contract assets 572,871 619,436 84,862
Amount due from related parties 65 257 35
Prepaid expense and other assets 189,846 182,641 25,020
Total current assets 5,426,445 4,638,070 635,411
Non-current assets
Non-current contract assets 134,383 153,749 21,064
Property, equipment and software, net 33,878 240,024 32,883
Intangible assets, net 177,407 153,011 20,962
Long-term investments 211,758 1,114,160 152,639
Right of use assets, net 59,851 46,872 6,421
Deferred tax assets 24,190 27,028 3,703
Goodwill 80,751 80,751 11,063
Total non-current assets 722,218 1,815,595 248,735
Total assets 6,148,663 6,453,665 884,146
Liabilities, Mezzanine Equity and Shareholders' Equity
Current liabilities
Amount due to related parties 9,509 10,616 1,454
Insurance premium payables 591,953 537,344 73,616
Accrued expenses and other current liabilities 597,684 704,035 96,452
Short-term loans 137,557 198,373 27,177
Current lease liabilities 32,908 34,573 4,736
Total current liabilities 1,369,611 1,484,941 203,435
Non-current liabilities
Non-current lease liabilities 27,293 10,971 1,503
Deferred tax liabilities 73,305 84,185 11,533
Total non-current liabilities 100,598 95,156 13,036
Total liabilities 1,470,209 1,580,097 216,471
Mezzanine Equit
y
Redeemable non-controlling interests 92,760 76,133 10,430
Shareholders' equity
Class A ordinary shares 112 112 15
Class B ordinary shares 27 27 4
Treasury stock (12) (15) (2)
Additional paid-in capital 7,003,423 6,832,214 936,009
Accumulated other comprehensive income 144,107 159,550 21,858
Accumulated deficit (2,561,963) (2,194,453) (300,639)
Total shareholders' equity 4,585,694 4,797,435 657,245
Total liabilities, mezzanine equity and shareholders' equity 6,148,663 6,453,665 884,146
WATERDROP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(All amounts in thousands, except for share and per share data, or otherwise noted)
For the Three Months Ended For the Twelve Months Ended
December 31, 2023 September 30,
2024 December 31, 2024 December 31, 2023 December 31, 2024
RMB RMB RMB USD RMB RMB USD
Operating revenue, net 659,364 704,141 686,824 94,095 2,630,707 2,771,821 379,738
Operating costs and expenses
(ii)
Operating costs (302,143) (340,560) (323,836) (44,365) (1,195,544) (1,314,740) (180,119)
Sales and marketing expenses (174,817) (173,172) (182,038) (24,939) (740,451) (694,769) (95,183)
General and administrative expenses (95,959) (110,988) (73,725) (10,100) (402,395) (367,652) (50,368)
Research and development expenses (59,806) (52,951) (54,265) (7,434) (299,060) (216,502) (29,661)
Total operating costs and expenses (632,725) (677,671) (633,864) (86,838) (2,637,450) (2,593,663) (355,331)
Operating profit/(loss) 26,639 26,470 52,960 7,257 (6,743) 178,158 24,407
Other income
Interest income 34,659 36,005 35,802 4,905 136,043 149,121 20,429
Foreign currency exchange gain/ (loss) 6,956 7,909 (963) (132) 4,342 8,016 1,098
Others, net 2,848 16,928 5,604 768 30,598 25,295 3,465
Profit before income tax 71,102 87,312 93,403 12,798 164,240 360,590 49,399
Income tax (expense)/ benefit (15,164) 7,843 (1,936) (265) (555) (9,707) (1,330)
Net profit 55,938 95,155 91,467 12,533 163,685 350,883 48,069
Net loss attributable to mezzanine equity classified (3,119) (3,818) (8,148) (1,116) (3,536) (16,627) (2,278)
as non-controlling interests shareholders(i)
Net profit attributable to ordinary shareholders 59,057 98,973 99,615 13,649 167,221 367,510 50,347
Other comprehensive income:
Foreign currency translation adjustment, net of tax (39,390) (83,054) 89,187 12,219 37,413 44,773 6,134
Unrealized loss on available for sale investments, (29,330) (4,018) (1,551) (29,330) (4,018)
net of tax
Total comprehensive income 16,548 12,101 151,324 20,734 199,547 366,326 50,185
Total comprehensive loss attributable to (3,119) (3,818) (8,148) (1,116) (3,536) (16,627) (2,278)
mezzanine equity classified as non-controlling
interests shareholders(i)
Total comprehensive income attributable to 19,667 15,919 159,472 21,850 203,083 382,953 52,463
ordinary shareholders
Weighted average number of ordinary shares used
in computing net profit per share
Basic 3,698,466,876 3,624,431,887 3,620,987,566 3,620,987,566 3,769,679,736 3,650,504,339 3,650,504,339
Diluted 3,762,270,456 3,689,357,838 3,699,552,300 3,699,552,300 3,880,861,496 3,719,776,955 3,719,776,955
Net profit per share attributable to ordinary shareholders
Basic 0.02 0.03 0.03 0.00 0.04 0.10 0.01
Diluted 0.02 0.03 0.03 0.00 0.04 0.10 0.01
(i) Corrections were made to certain line items of the comparative figures for the three months ended September 30, 2024, because of an omitted attribution to non-controlling interests, resulted in a
reclassification impact amounting to RMB6,168. Accordingly, net profit attributable to ordinary shareholders and net gain (loss) attributable to mezzanine equity classified as non-controlling interests
shareholders previously reported at RMB92,805 and RMB2,350 are restated to RMB98,973 and RMB(3,818), respectively. The reclassification does not have a material impact on the consolidated financial
statements nor Non-GAAP results.
(ii) Share-based compensation expenses are included in the operating costs and expenses as follows.
For the Three Months Ended For the Twelve Months Ended
December 31, 2023 September 30,
2024 December 31, 2024 December 31, 2023 December 31, 2024
RMB RMB RMB USD RMB RMB USD
Sales and marketing expenses (1,991) (1,993) (1,692) (232) (35,352) (6,825) (935)
General and administrative expenses (18,693) (21,297) (17,336) (2,375) (85,335) (69,245) (9,486)
Research and development expenses (2,104) (2,563) (2,656) (364) (13,182) (10,802) (1,480)
Total (22,788) (25,853) (21,684) (2,971) (133,869) (86,872) (11,901)
WATERDROP INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, unless otherwise noted)
For the Three Months Ended For the Twelve Months Ended
December 31, 2023 September 30,
2024 December 31, 2024 December 31, 2023 December 31, 2024
RMB RMB RMB USD RMB RMB USD
Net profit attributable to the Company's ordinary shareholders
(i) 59,057 98,973 99,615 13,649 167,221 367,510 50,347
Add:
Share-based compensation expense attributable to the 22,556 25,673 21,502 2,946 132,686 86,449 11,843
Company's ordinary shareholders
Foreign currency exchange (gain)/ loss (6,956) (7,909) 963 132 (4,342) (8,016) (1,098)
Impact of terminating the mutual aid plan (iii) (14,985) (2,053) (14,985) (2,053)
Impairment of intangible assets acquired from business 12,336 12,336 2,817
combination(i)
Tax effects on non-GAAP adjustments(i) (3,084) (3,084) (704)
Adjusted net profit attributable to the Company's ordinary 74,657 125,989 107,095 14,674 295,565 440,210 61,152
shareholders
(iii) This represents the reversal of the difference between estimated cost of medical expense coverage and actual payment.
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SOURCE Waterdrop Inc.
