Waterdrop Inc. Announces First Quarter 2025 Unaudited Financial Results

BEIJING, June 5, 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 months ended March 31, 2025.

Financial and Operational Highlights for the First Quarter of 2025

    --  Profit growth with stable liquidity: In the first quarter of 2025, net
        profit attributable to our ordinary shareholders reached RMB108.2
        million (US$14.9 million), marking a solid increase of 34.2%
        year-over-year. We continued to generate positive operating cash flow
        during the first quarter of 2025.
    --  Accelerated business growth: The first-year premiums ("FYP") generated
        through our insurance business reached RMB2,092.4 million (US$288.3
        million) during the first quarter of 2025, representing an increase of
        19.3% year over year. Net operating revenue was RMB753.7 million
        (US$103.9 million), representing an increase of 7.0% year over year.
    --  Expanded crowdfunding coverage: As of March 31, 2025, around 475 million
        people cumulatively had donated an aggregate of RMB68.8 billion to 3.47
        million patients through Waterdrop Medical Crowdfunding.
    --  Steadfast performance in patient recruitment: As of March 31, 2025, the
        Company had cumulatively enrolled 11,217 patients into 1,281 clinical
        trial programs through the E-Find Platform.

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "We achieved remarkable growth in the first quarter of 2025, kicking off the year with robust operational and financial outcomes. Both revenue and profit grew on a year-on-year and quarter-on-quarter basis.

In line with our annual growth objectives, our insurance business maintained a strong upward trajectory. We refined our public domain user acquisition strategies and improved services for private domain users, leading to a notable 30.1% year-over-year increase in short-term insurance premium. Product innovation remains a top priority, as highlighted by the upgrade of 'Jiehaoyun', our industry-first product, to version 5.0. Furthermore, we recently introduced a revolutionary Million Medical Insurance product that uniquely offers both a health declaration waiver and guaranteed renewal for five consecutive years. Despite headwinds from product iteration, our long-term insurance premiums grew by 27.6% quarter-on-quarter, demonstrating operational resilience.

Waterdrop Medical Crowdfunding further enhanced its risk control framework through ongoing upgrades, improving the rigor of campaign validation processes. This quarter, we expanded our verification platform to cover 92% of domestic cities. The system now enables smoother user-led verification of critical credibility factors like housing, vehicle ownership, and income data. These improvements deliver more reliable and efficient risk management.

Our digital clinical trial solution revenue sustained its growth momentum this quarter, reflecting an 11.5% increase compared to the same period last year. We collaborated with a total of 185 pharmaceutical companies and contract research organizations ("CROs"). Meanwhile, we enrolled 822 patients and initiated services for 77 new programs during the first quarter of 2025.

We are pleased to report that Waterdrop Guardian AI applications are playing increasingly critical roles in both internal and external use cases. For instance, the penetration of our 'AI Insurance Expert - Medical Insurance' has further expanded and facilitated over 2 million yuan in monthly premiums this quarter. Additionally, our 'AI Service Quality Copilot' has boosted unit operational efficiency by 83% since its launch. Beyond internal initiatives, we have partnered with four Property and Casualty insurers to pilot AI-driven applications in the auto insurance sector, collaborating to set industry benchmarks.

Every strategic action we take is anchored in our objective of maximizing shareholder value. The Company distributed approximately US$7.3 million in cash dividends this quarter and repurchased a cumulative total of approximately 54.2 million ADSs from the open market as of May 31, 2025.

Our long-standing commitment to user-centric philosophy and AI investment laid the foundation for our achievements. Looking ahead to the upcoming quarters of 2025, we will leverage our proven business know-how to accelerate operational growth, creating greater value to both users and shareholders."

Financial Results for the First Quarter of 2025

Operating revenue, net

Net operating revenue for the first quarter of 2025 increased by 7.0% year-over-year to RMB753.7 million (US$103.9 million) from RMB704.7 million for the same period of 2024. On a quarter-over-quarter basis, net operating revenue increased by 9.7%.

    --  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 RMB658.0 million (US$90.7 million) in the first quarter of
        2025, representing an increase of 8.4% year-over-year from RMB606.8
        million for the first quarter of 2024, which was mainly due to an
        increase in insurance brokerage income. On a quarter-over-quarter basis,
        insurance-related income increased by 13.0%.
    --  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 first quarter of 2025, we generated RMB67.1 million
        (US$9.3 million) in service fees, remaining stable compared with the
        service fees of RMB67.4 million for the first quarter of 2024. On a
        quarter-over-quarter basis, crowdfunding service fees increased by 3.1%.
    --  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 first quarter of 2025, our digital clinical trial
        solution income amounted to RMB23.0 million (US$3.2 million),
        representing an increase of 11.5% from RMB20.6 million in the same
        period of 2024. On a quarter-over-quarter basis, digital clinical trial
        solution income decreased by 9.9%.

Operating costs and expenses

Operating costs and expenses increased by 3.0% year over year to RMB677.8 million (US$93.4 million) for the first quarter of 2025. On a quarter-over-quarter basis, operating costs and expenses increased by 6.9%.

    --  Operating costs increased by 13.0% year over year to RMB374.2 million
        (US$51.6 million) for the first quarter of 2025, as compared with
        RMB331.2 million for the first quarter of 2024, which was primarily
        driven by (i) an increase of RMB37.7 million in costs of referral and
        service fees, (ii) an increase of RMB2.8 million in the costs for the
        digital clinical trial solution consultants team, and (iii) an increase
        of RMB1.7 million in personnel costs. On a quarter-over-quarter basis,
        operating costs increased by 15.6% from RMB323.8 million, primarily due
        to (i) an increase of RMB28.3 million in costs of referral and service
        fees, and (ii) an increase of RMB8.4 million in the costs for the
        crowdfunding consultants team.
    --  Sales and marketing expenses decreased by 5.4% year over year to
        RMB172.4 million (US$23.8 million) for the first quarter of 2025, as
        compared with RMB182.1 million for the same quarter of 2024. The
        decrease was primarily due to (i) a decrease of RMB5.9 million in
        outsourced sales and marketing service fees to third parties, (ii) a
        decrease of RMB5.6 million in personnel costs and share-based
        compensation expenses, partially offset by (iii) an increase of RMB4.5
        million in marketing expenses for third-party traffic channels. On a
        quarter-over-quarter basis, sales and marketing expenses decreased by
        5.3% from RMB182.0 million, primarily due to (i) a decrease of RMB7.5
        million in marketing expenses for third-party traffic channels, and (ii)
        a decrease of RMB1.9 million in outsourced sales and marketing service
        fees to third parties.
    --  General and administrative expenses decreased by 15.8% year over year to
        RMB74.9 million (US$10.3 million) for the first quarter of 2025,
        compared with RMB89.0 million for the same quarter of 2024. The
        year-over-year variance was due to (i) a decrease of RMB9.8 million in
        professional service fees, and (ii) a decrease of RMB4.0 million in
        allowance for credit losses. On a quarter-over-quarter basis, general
        and administrative expenses increased by 1.7% from RMB73.7 million, due
        to (i) an increase of RMB4.7 million in allowance for credit losses,
        partially offset by (ii) a decrease of RMB2.6 million in professional
        service fees.
    --  Research and development expenses remained stable at RMB56.2 million
        (US$7.8 million) for the first quarter of 2025, maintaining nearly the
        same level as RMB56.0 million for the same period of 2024. On a
        quarter-over-quarter basis, research and development expenses increased
        by 3.6% from RMB54.3 million. The increase was primarily due to an
        increase of RMB1.7 million in personnel costs and share-based
        compensation expenses.

Operating profit for the first quarter of 2025 was RMB75.9 million (US$10.5 million), as compared with RMB46.4 million for the first quarter of 2024 and RMB53.0 million for the fourth quarter of 2024.

Interest income for the first quarter of 2025 was RMB33.8 million (US$4.7 million), as compared with RMB39.8 million for the first quarter of 2024 and RMB35.8 million for the fourth quarter of 2024.

Income tax expense for the first quarter of 2025 was RMB13.3 million (US$1.8 million), as compared with RMB8.6 million for the first quarter of 2024 and RMB1.9 million for the fourth quarter of 2024.

Net profit attributable to the Company's ordinary shareholders for the first quarter of 2025 was RMB108.2 million (US$14.9 million), as compared with RMB80.6 million for the same period of 2024, and RMB99.6 million for the fourth quarter of 2024.

Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP((1))) for the first quarter of 2025 was RMB130.0 million (US$17.9 million), as compared with RMB98.4 million for the same period of 2024, and RMB107.1 million for the fourth quarter of 2024.

Cash position((2))

As of March 31, 2025, cash position of the Company was RMB3,543.3 million (US$488.3 million), as compared with RMB3,670.3 million as of December 31, 2024.



     
           (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 54.2 million ADSs from the open market with cash for a total consideration of approximately US$106.6 million as of May 31, 2025.

Supplemental Information

We organize and report our business in the following operating segments:

    --  Insurance, which mainly includes insurance brokerage service and
        technical service;
    --  Crowdfunding, which mainly includes crowdfunding service; and
    --  Others, which do not individually or in the aggregate meet the
        quantitative and qualitative thresholds to be individually reportable
        and are aggregated.

The table below sets forth the segment operating results, with the three-month comparative figures retrospectively adjusted to conform to this presentation.


                                                                                                                                                
       
            For the Three Months Ended


                                                                                                                                 March 31, 2024            December 31, 2024                        March 31, 2025


                                                                                                                                       RMB                        RMB                         RMB                       USD


                                                                                                                                                  
       (All amounts in thousands)



             
                Operating revenue, net



              Insurance                                                                                                                606,777                       582,442               657,988                     90,673



              Crowdfunding                                                                                                              67,350                        65,138                67,131                      9,251



              Others                                                                                                                    30,573                        39,244                28,575                      3,938



             
                Total consolidated operating revenue, net                                                                    704,700                       686,824               753,694                    103,862



             
                Operating costs and expenses



              Insurance                                                                                                              (477,614)                    (479,856)            (506,575)                  (69,808)



              Crowdfunding                                                                                                            (99,587)                     (87,147)             (97,299)                  (13,408)



              Others                                                                                                                  (62,005)                     (45,177)             (54,000)                   (7,442)



             
                Operating profit/(loss)



              Insurance                                                                                                                129,163                       102,586               151,413                     20,865



              Crowdfunding                                                                                                            (32,237)                     (22,009)             (30,168)                   (4,157)



              Others                                                                                                                  (31,432)                      (5,933)             (25,425)                   (3,504)



             
                Total segment operating profit                                                                                65,494                        74,644                95,820                     13,204



             Unallocated items*                                                                                                       (19,130)                     (21,684)             (19,927)                   (2,746)



             
                Total consolidated operating profit                                                                           46,364                        52,960                75,893                     10,458



             Total other income                                                                                                         42,781                        40,443                41,690                      5,745



             
                Consolidated profit before income tax                                                                         89,145                        93,403               117,583                     16,203





             * The share-based compensation represents unallocated items in the segment information because our management does
      not consider this 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 RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 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, and impact of terminating the mutual aid plan on non-GAAP adjustments. Such adjustments have no impact on income tax.

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 June 5, 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:                               0072517



     English Interpretation Line (Listen-only Mode) Entry Number:        8162178

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 June 12, 2025 by dialing the following numbers:



     United States Toll Free:                 1-877-344-7529



     International:                           1-412-317-0088



     Chinese Line Access Code:                       9960990



     English Interpretation Line Access Code:        6469856

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, 2024                   March 31, 2025


                                                                                                                                     RMB                     RMB                       USD



     
           Assets



     
           Current assets



       Cash and cash equivalents                                                                                                       986,323         1,158,059                    159,585



       Restricted cash                                                                                                                 520,588           603,924                     83,223



       Short-term investments                                                                                                        1,612,619           778,068                    107,221



       Accounts receivable, net                                                                                                        716,206           768,855                    105,951



       Current contract assets                                                                                                         619,436           632,525                     87,164



       Amount due from related parties                                                                                                     257               270                         37



       Prepaid expense and other assets                                                                                                182,641           192,849                     26,575



     
           Total current assets                                                                                                    4,638,070         4,134,550                    569,756



     
           Non-current assets



       Non-current contract assets                                                                                                     153,749           171,226                     23,596



       Property, equipment and software, net                                                                                           240,024           240,846                     33,189



       Intangible assets, net                                                                                                          153,011           152,979                     21,081



       Long-term investments                                                                                                         1,114,160         1,649,792                    227,347



       Right of use assets, net                                                                                                         46,872            36,970                      5,095



       Deferred tax assets                                                                                                              27,028            21,278                      2,932



       Goodwill                                                                                                                         80,751            80,751                     11,128



     
           Total non-current assets                                                                                                1,815,595         2,353,842                    324,368



     
           Total assets                                                                                                            6,453,665         6,488,392                    894,124





     
           Liabilities, Mezzanine Equity and Shareholders' Equity



     
           Current liabilities



       Amount due to related parties                                                                                                    10,616            10,851                      1,495



       Insurance premium payables                                                                                                      537,344           624,202                     86,017



       Accrued expenses and other current liabilities                                                                                  704,035           791,425                    109,061



       Short-term loans                                                                                                                198,373



       Current lease liabilities                                                                                                        34,573            30,973                      4,268



     
           Total current liabilities                                                                                               1,484,941         1,457,451                    200,841



     
           Non-current liabilities



       Non-current lease liabilities                                                                                                    10,971             5,707                        786



       Deferred tax liabilities                                                                                                         84,185            91,680                     12,634



     
           Total non-current liabilities                                                                                              95,156            97,387                     13,420



     
           Total liabilities                                                                                                       1,580,097         1,554,838                    214,261





     
           Mezzanine Equit
                y



       Redeemable non-controlling interests                                                                                             76,133            72,193                      9,948





     
           Shareholders' equity



       Class A ordinary shares                                                                                                             112               113                         16



       Class B ordinary shares                                                                                                              27                27                          4



       Treasury stock                                                                                                                     (15)             (16)                       (2)



       Additional paid-in capital                                                                                                    6,832,214         6,784,389                    934,914



       Accumulated other comprehensive income                                                                                          159,550           163,106                     22,477



       Accumulated deficit                                                                                                         (2,194,453)      (2,086,258)                 (287,494)



     
           Total shareholders' equity                                                                                              4,797,435         4,861,361                    669,915



     
           Total liabilities, mezzanine equity and shareholders' equity                                                            6,453,665         6,488,392                    894,124


                                                                                                               
              
                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


                                                                                                                                                                               March 31,
                                                                                                                                                                                  2024       December 31, 2024                           March 31, 2025


                                                                                                                                                                                  RMB              RMB                             RMB                         USD





             
                Operating revenue, net                                                                                                                                704,700               686,824                   753,694                      103,862



             
                Operating costs and expenses
                (i)



              Operating costs                                                                                                                                                 (331,243)            (323,836)                (374,218)                    (51,569)



              Sales and marketing expenses                                                                                                                                    (182,146)            (182,038)                (172,396)                    (23,757)



              General and administrative expenses                                                                                                                              (88,961)             (73,725)                 (74,943)                    (10,327)



              Research and development expenses                                                                                                                                (55,986)             (54,265)                 (56,244)                     (7,751)



             
                Total operating costs and expenses                                                                                                                  (658,336)            (633,864)                (677,801)                    (93,404)



             
                Operating profit                                                                                                                                       46,364                52,960                    75,893                       10,458



             
                Other income



              Interest income                                                                                                                                                    39,804                35,802                    33,814                        4,660



              Foreign currency exchange gain/(loss)                                                                                                                               1,514                 (963)                  (2,103)                       (290)



              Others, net                                                                                                                                                         1,463                 5,604                     9,979                        1,375



             
                Profit before income tax                                                                                                                               89,145                93,403                   117,583                       16,203



              Income tax expense                                                                                                                                                (8,588)              (1,936)                 (13,328)                     (1,837)



             
                Net profit                                                                                                                                             80,557                91,467                   104,255                       14,366



              Net loss attributable to mezzanine equity classified as non-                                                                                                         (75)              (8,148)                  (3,940)                       (543)
        controlling interests shareholders



             
                Net profit attributable to ordinary shareholders                                                                                                       80,632                99,615                   108,195                       14,909



             
                Other comprehensive income:



              Foreign currency translation adjustment, net of tax                                                                                                                25,143                89,187                  (14,056)                     (1,937)



              Unrealized (loss)/gain on available for sale investments, net of tax                                                                                                                  (29,330)                   17,612                        2,427



             
                Total comprehensive income                                                                                                                            105,700               151,324                   107,811                       14,856



              Total comprehensive loss attributable to mezzanine equity                                                                                                            (75)              (8,148)                  (3,940)                       (543)
        classified as non-controlling interests shareholders



             
                Total comprehensive income attributable to ordinary shareholders                                                                                      105,775               159,472                   111,751                       15,399



             
                Weighted average number of ordinary shares used in computing
      net profit per share



              Basic                                                                                                                                                       3,696,619,172         3,620,987,566             3,620,380,862                3,620,380,862



              Diluted                                                                                                                                                     3,756,462,107         3,699,552,300             3,711,999,000                3,711,999,000



             
                Net profit per share attributable to ordinary shareholders



              Basic                                                                                                                                                                0.02                  0.03                      0.03                         0.00



              Diluted                                                                                                                                                              0.02                  0.03                      0.03                         0.00







             (i) Share-based compensation expenses are included in the operating costs and expenses as follows.




                                                                                                                                                                                         
     
        For the Three Months Ended


                                                                                                                                                                               March 31,
                                                                                                                                                                                  2024       December 31, 2024                           March 31, 2025


                                                                                                                                                                                  RMB              RMB                             RMB                         USD



             Sales and marketing expenses                                                                                                                                       (1,820)              (1,692)                  (1,899)                       (262)



             General and administrative expenses                                                                                                                               (14,327)             (17,336)                 (15,527)                     (2,140)



             Research and development expenses                                                                                                                                  (2,983)              (2,656)                  (2,501)                       (344)



             
                Total                                                                                                                                                (19,130)             (21,684)                 (19,927)                     (2,746)


                                                                                                             
              
                WATERDROP INC.


                                                                                              
              
                RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS


                                                                                           
              
                (All amounts in thousands, unless otherwise noted)




                                                                                                                                                                                
     
        For the Three Months Ended


                                                                                                                                                                      March 31,
                                                                                                                                                                         2024       December 31, 2024                     March 31, 2025


                                                                                                                                                                         RMB              RMB                       RMB                  USD





           
                Net profit attributable to the Company's ordinary shareholders                                                                                  80,632                99,615             108,195                14,909



           
                Add:



            Share-based compensation expense attributable to the Company's                                                                                              19,260                21,502              19,750                 2,722
      ordinary shareholders



            Foreign currency exchange (gain)/ loss                                                                                                                     (1,514)                  963               2,103                   290



            Impact of terminating the mutual aid plan(ii)                                                                                                                                  (14,985)



           
                Adjusted net profit attributable to the Company's ordinary                                                                                      98,378               107,095             130,048                17,921
      shareholders







           (ii) This represents the reversal of the difference between estimated cost of medical expense coverage and actual payment.

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