Q3 2023 Waterdrop Inc Earnings Call
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Speaker 2: Good morning, everyone. This is Li Congjun from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop's third quarter 2023 earnings conference call. All participants are in listening only mode in our English line. As a reminder, today's conference call is being recorded.
Good morning, everyone. This is me talking from mortgage Albi map their relation and it's my pleasure to welcome everyone to wanted officer Curt Omaha, Three earnings Conference call. All participants are in a listen only mode. In our English line is a reminder, today's conference call is being recorded.
Speaker 2: Please note that the discussion today will contain forward-looking statements made under the state proper provision of U.S. private security and the Litigation Reform Act of 1995. Forward-looking statements are subject to risk and uncertainty that may cause actual results to differ materially from our current expectations.
Please note that this discussion today will contain forward looking statements made under the safe Harbor provision of U S private securities.
Litigation Act of 1995 forward looking statements are subject to risk dependent uncertainties that may cause actual results to differ materially from our current expectations.
Speaker 2: Potential risk and uncertainties include but not limited to those outlined in our public findings with the SEC.
Risks and uncertainties include but are not limited to those outlined in our public filings with the SEC.
Speaker 2: The company does not undertake any obligation to update any forward-looking statement, except as required in applicable law. Also, this call includes discussion of certain land- GAAP measures . Please refer to our earnings release for consideration between land-gap and gap.
The company does not undertake any obligation to update any forward looking statement, except as required and applicable law also did call include discussion of certain non-GAAP measures. Please refer to our earnings release floor cause variation between non-GAAP and GAAP.
Speaker 2: Joining us today on the call are Mr. Shen Peng, our founder, chairman, and CEO , Mr. Yang Guang, co-founder, director, finance VP, and GM of international business, Mr. Zhu Zetiao, GM of Accord Funding and Pharmatech business.
Joining us today on the call and Mr. Cheng Peng, our founder Chairman and CEO, Mr. Young <unk> co founder director and as VP and GM of International business. Mr include Vitol G M of a corresponding in pharma type of thing.
Mr Charron region, Foreign Secretary and it would be happy to take some of your question in memory of light at the end of the conference call.
Speaker 2: Mr. Chen Ruicheng, foreign secretary, and I would be happy to take some of the questions in the memory line at the end of the conference call.
Hello, everyone.
Speaker 2: This is Shempong. Thank you for joining our 3rd Quarter 2003 EARNINGS Conference Call.
Is it share pump. Thank you for joining our third quarter 'twenty There three earnings conference call.
Speaker 2: This quarter, the domestic economy in China is still in the recovery process.
This quarter the domestic economy in China is due in the recovery profile.
Speaker 2: Why risk factors, including adjustments in product policies, have temporarily impacted the life insurance system?
By risk factors, including adjustments in product policies have a temporary impact the life insurance business.
With the improvement in industry transparency, and an Asian, coupled with Stuart gradual acceptance of new product policy in the market.
Speaker 2: with the improvement in industry transparency and standardization, coupled with your gradual acceptance of new product policy in the market.
Speaker 2: The company believes that the life insurance industry is entering a new development stage.
The company believes that the life insurance industry is entering a new revised development.
Development stage.
[noise] facing both opportunity and challenge.
Speaker 2: The company actively responds to regulatory directions, striving to enhance business health and efficiency.
The company actively respond to regulatory direction, Scribing, who has business health and efficiency.
Speaker 2: prioritizing user certification. The company leveraged its key insight into user needs to solidify user service and product innovation capabilities, embracing industry change with an efficient and dynamic approach.
For our in hiring either certification the comedy language is keen insight into user needs to fall any by either service and product innovation capabilities engraving industry, changing with any vision and dynamic approach.
Speaker 2: In the third quarter, the company continued to focus on creating value for users, achieving a resilient financial performance with approximately $6.9 billion in revenue, maintaining a profitable trend for the past seven quarters.
In the third quarter. The company continued to focus on creating value for users achieving a resilient financial components was approximately $6 9 billion in revenue margin.
Ginny unprofitable train them for the past seven quarters.
Speaker 2: Gap profit reached $36.3 million, showing a QQ growth of $67.3 million.
Cat property reached 36 points reading area, showing a growth of six 8.76 or seven.
Speaker 2: percent and demonstrating the sustainable and high quality development with sustainable net profit and positive operating cash flow at the end of September in the context of continuous share repurchase and acquisition of Chen Lanbao.
Present, and demonstrating that this is sustainable and high quality development with sustainable net profit and positive operating cash flow at the end of September in the context of <unk>.
Tina this share repurchase and acquisition of Chiller mall.
Speaker 2: The company still maintains a robust cash reserve and ability to organic growth.
The company is to maintain it.
Robust casualty burden and the ability to organic growth.
Speaker 2: The combined cash-cash equivalence and short-term investment is about $3.1 billion, providing flexibility and stability for the company to navigate uncertainties and support long-term growth.
The combined cash cash equivalents and short term investment about.
$3 1 billion, providing flexibility and they reality for the company to navigate uncertainties and support long term growth.
All basic business model of the company performed well in the third quarter consolidating our leading position in the industry.
Speaker 2: All the business mottos of the company performed well in the third quarter, consolidating our leading position in the industry.
Frankly, what are your top insurance market place focus on having different health optimizing the product matrix through excellent demand insights and quality improvement and it continued to contribute stable net profit.
Speaker 2: Firstly, Waterdrop Insurance Marketplace focus on enhancing business health, optimizing the product metrics through excellent demand insights and the quality improvement, and it continues to contribute stable net profit.
Speaker 2: Secondly, our Waterloo Medical Core funding platform continues to improve our service and a risk control mechanism. Accumulatedly serving over 3 million patients. Emphasized on transparency and credibility. Actively demonstrating the company's commitment to authenticity.
At least our what is our medical for finding costs continued to improve our service and our risk control mchaney them accumulate E serving over swing I mean patients emphasize wrong spent fund transparency and credibility activity demonstrating the company's commitment to as anticipated.
Speaker 2: The companies are here to be user-centric, consistently enhancing service quality, and advocating for the transformation of service-oriented consultants, with the principle of user-preferred service remote.
The company adhered to the user centric consequently has seemed very quality and advocating for the transformation of service oriented culture with a principal of users first surveys of a moat.
Speaker 2: in terms of digital clinical trial solution business, the eFind platform continues to deepen the collaboration with well-known domestic and international pharmaceuticals, expanding the range of recruited disease types, leveraging technological advantages. We continue to explore innovative opportunities in pharmaceutical fields.
In terms of digital clean go try and throw some visits but you'd find platform continued to depends a collaboration with a well known domestic and international pharmaceuticals, expanding the range of recruiting disease tied leveraging technology called adventures with continuing to explore innovative.
It is in pharmaceutical viewed.
Speaker 2: In addition, we continue to invest in R&D to empower business development. In the third quarter, the company iterated and upgraded our AI technology across various aspects of the product, operations, and service.
In addition, we continually invest in R&D to empower business development in the third quarter the comedy iterate, it and upgraded our AI technology across virus effect of the product operations and surveys.
Speaker 2: With the implementation of our technology, the company will also seek the export opportunity to Europe .
With the implementation of our technology. The company will also be the export opportunity to.
Empowered in Missouri.
Speaker 2: Meanwhile, the company continues to prioritize and enhance its ESG efforts, striving to do a sustainable development of the company and society.
Meanwhile, the company continued to for all the ties and enhance if he has he effort striving to do or sustainable development of the company and society.
Virus initiatives relating to environmental protection in Hawaii right.
Speaker 2: virus initiatives related to environmental protection, employee rights.
Speaker 2: corporate governance are systematically advancing. In September , the company collaborated with IIGS to initiate the online insurance industry ESD white paper.
Corporate governance, I supposed a masterly advancing.
In September the company collaborating with IGF two initiatives the online insurance industry ESD Whitepaper.
Contributing to the practice and development of inflammation is clear for the industry.
Speaker 2: contributing to the practice and development of EIC information disclosure for the industry.
Speaker 2: in addition to business development. The company actively fulfilled the CSR. In August , due to the flood in Beijing, workshop public welfare platform collaborated with well-known charitable foundations to assist the stricken area. The platform launched a special topic on our homepage, and we donated many suppliers to the Beijing Youth Development Foundation.
In addition to business development the company actively compete with a C. S. R. In August due to the flooding in Beijing will shop.
Blake welfare platform collaborating with well known and charitable foundation to assist the stricken area. The platform launched a special topics, our homepage and we donated many suppliers to the baking youth development Foundation.
As a as a September 30, 20 home suite. The plug them had collaborated with 112 public a charitable organizations in areas such a serious illness assistance emergent needs without the relief and education support.
Speaker 2: As of September 30, 2023, the platform has collaborated with 112 public charitable organizations in areas such as serious illness assistance, emergency doctor relief, and education support, raising a total of over $123 billion with over 70 million participants.
A total of over 123 billion with over $17 million, putting the pain.
Leveraging our business and technology advantage, we actively participate in the construction of multi level medical system.
Speaker 2: Leveraging our business and technology advantages, we actively participate in the construction of multi-level medical systems, implementing one-stop-assistance tools such as hyperphone and so on in many cities.
Implementing one stop affecting tools, such as having a ball and so in many cities.
Speaker 2: In terms of share repurchase, as of November 30, 2023, the company has cumulatively repurchased about $38.5 million from the open market, spanning over
In terms of a share repurchase as of November 30, 23. The company has cumulatively you repurchased about 38.5.
Find me nearly an atheist from the open market spanning over.
Speaker 2: 87.4 million U.S. dollars. This reflects the company's strong confidence in its inner value and long-term sustainable development.
87.4 million U S dollars.
This reflects the company's strong comparatives.
In our value and long term sustainable development.
Speaker 2: The repurchased shares will continue to be used for ESOP to enhance internal dynamic and promote mutual growth with our employees.
The repurchased shares will continue to be used when he stopped to enhance internal dynamic and promote mutual growth with our employees.
Speaker 2: The above is a brief review of business performance in Q3. Although facing the challenging micro environment, we're still fully confident in ourselves and in the industry. Looking forward.
There probably is a brief review of business performance in Q3.
Those facing the challenging micro environment with this really confidence in yourself and the industry.
Looking forward.
Speaker 2: To the last quarter of this year, our strategies include frequently frequent on-site, online, and digital transformation. The insurance business will continue to be user-centric, striving to achieve long-term healthy and stable development. Meanwhile, we will continue to enhance team efficiency, consolidate the business foundation, and provide users with professional and thoughtful service.
To the last quarter of this year. Our strategies include frankly, driven all by online and digital transformation. The insurance I think that will continue to be user centric striving to achieve long term healthy and stable development.
While we will continue to enhance team efficiency consolidated by the basic foundation, and providing users with professional and stuff of service.
Speaker 2: Secondly, the core founding business will continue to adhere to user-first and easy-to-read service models, leading the industry towards high-quality development.
Secondly, the corresponding dividend will continue to adhere user first and injury service model, leading the industry towards high quality development.
Speaker 2: We will also adhere to transparent operations and implement strict risk management while actively fulfilling CFR.
We will also adhere to transparent accretion and implement strict risk management, well actively fulfilling staff off.
Speaker 2: Thirdly, leveraging big data to fund suitable business will continue to increase industry penetration globally in order to construct a long-term growth engine.
Certainly leveraging big data the pharmaceutical business, where continued increase industry penetration globally.
In order to construct a long term growth engine.
Firstly, the company will make use of Campbell.
Speaker 2: Firstly, the company will make use of its Campbell cash reserves and seek cooperation and investment opportunities around insurance and healthcare sectors.
Bold cash reserves and.
Cooperation and investment opportunities around insurance and health care veterans.
Speaker 2: Last but not least, the company will accelerate technology empowerment and enhance AI abilities to build core technology competitiveness, thereby supporting the implementation of long-term strategies and empower the industry.
That's been a list the company will have salaried and technology empowerment, and he has I abilities to be a core technology competitiveness.
Thereby supporting the implementation of long term strategies and empowered industry.
Speaker 2: In summary, the company will continue to prioritize user value, focusing on high-quality development and advancing business synergy and organic growth, constantly expanding business boundaries to better bring insurance and healthcare service to billions through technology.
In summary, the company will continue to put all of the tissue the value focusing on high quality development.
And it was.
And one thing that I've seen any and organic growth constantly expanding business boundaries.
To better bring.
Bring insurance and health care service to billions their technology.
Speaker 2: And next, I will pass the runway to introduce the development of our insurance business in this quarter.
And that's our path to round way to introduce really about development of our insurance business into a corner.
Yeah.
Speaker 2: In the first three quarters, the growth rate of life insurance slowed down.
In the first three quarters, the gross rate of life insurance book down.
Speaker 2: Against the backdrop, the FYP reached $16.95 billion in this quarter.
Against the backdrop for FY P reached $16 95 billion in new products.
With 38% longtime ensuring propulsion.
Speaker 2: with 38% long-term insurance proportion.
Speaker 2: Insurance-related income reached $6.2 billion, and the operating profit reached $1.5 billion.
Insurance related income reached $6 2 billion.
The operating profit reached one point by Vivian.
Among them the F O P of shelter insurance isn't reached a pinpoint life events. During this call and the company actively utilize AI technology to enhance the user acquisition capability.
Speaker 2: Among them, the FIP of Shelton Insurance Business reached 10.5 billion. During this quarter, the company actively utilized the AI technology to enhance user acquisition capabilities and the service quality.
And the service quality.
Speaker 2: On the customer acquisition side, the number of new users increased by 20% year-over-year.
On the customer acquisition side.
Number of new users increased by 20% year over year.
The company actively did not give out the officials who can keep using the last model to enhance content production.
Speaker 2: The company actively developed the facial TPT using the live model to enhance content.
Capabilities.
Drilling a significant craze and wechat channel views with the sequential growth.
Speaker 2: getting a significant increase in WeChat channel views, with a sequential growth of 16% in the following numbers.
16% in the balloon members.
Speaker 2: The company also continued to upgrade the intelligence dialogue checkbook.
The company also continued to upgrade the E intelligence dialogue trying to vote.
Speaker 2: driving a sequential increase of 6% in the renewal rate for short-term insurance and it's remaining above 9%.
Driving a sequential increase of 6% in the renewal rate for short term insurance.
And it's a remaining of about 19%.
Long term insurance based in Berlin.
Speaker 2: long-term insurance business is further developed in the third quarter.
In the third quarter.
Speaker 2: achieving a FIP of $640 million.
Achieving our FY tee off 640 million.
Speaker 2: an increase of 17% year-over-year and 9% quarter-over-quarter. The average premium per policy increased by 43% year-over-year and 4% sequentially.
Increased 17% year over year.
And 9% quarter over quarter.
The average premium per policy increased by 43% year over year.
And 4% sequentially.
Brokerage income increased by 11% year over year and 18% sequentially.
Speaker 2: Brokerage income increased by 11% year-over-year and 18% sequentially.
The company here.
Speaker 2: to improving the capability of long-term insurance service teams.
Two improving the stability of longtime ensuring service team.
Speaker 2: and continuously optimizing the service quality, achieving a sequential increase of 23% in FYP of private domain operations.
And continuously optimizing the service quality.
Achieving a sequential increase of 23% in FY P of private domain operation.
Speaker 2: The platform's long-term insurance product offerings further expanded. The proportion of life insurance users increased sequentially, driving an almost 2% increase in the first-year renewal rate.
The program long term insurance product offerings further east than at the propulsion of life insurance users increased sequentially, driven and almost 2% increase in the first the first year renewal rate.
In the third quarter. The company has demonstrated resilience in developing new service model.
Speaker 2: In the third quarter, the company demonstrated resilience in developing new service models. Like in our life planning segment, amid a market with declining interest rates, the company continued to build content capabilities and online planning service around the combination of life planners and e-insurance.
Like in our life planners Beckman.
Market with declining interest rates the company continued to build content.
Capabilities and online planning service around the combination of lifetime nurse and insurance.
The team continues to grow.
Speaker 2: achieving a new monthly FYP record despite the challenging market conditions.
Achieving a new mark they are quite a few records despite the challenging market condition.
In the online brokerage sector. The company continue to enhance the functionality of our App.
Speaker 2: In the online brokerage sector, the company continues to enhance the functionality of our app, advancing towards industry.
And I think to where is industry leading tools.
In this quarter S. I P O offline brokerage increased by 7% year over year in the average productivity per capita improved by 16% year over year.
Speaker 2: In this quarter, FYP of offline brokerage increased by 7% year-over-year, and the average productivity per capita improved by 16% year-over-year.
Regarding shamble what are what is the only insurance market place engine I'm pretty.
Speaker 2: Regarding Shenlanbao, what does our insurance market claim in Shenlanbao? Preliminary is for business signature.
Mary is of course, they've been synergy.
Speaker 2: significantly enhancing content marketing capability. The monthly FYP auction unboxed a new high during this.
Significantly enhancing content marketing capability.
The Montney athlete P auction and bought a new high during this quarter.
In Q3, the company optimizing insurance products to meet the rising demand.
Speaker 2: In Q3, the company optimizing its insurance products to meet the rising demand.
Speaker 2: In the health insurance sector, the company introduced Waterdrop Lanshan Outpatient and Emergency Insurance. It is a groundbreaking product and is the first in the industry that covers medical expenses in the low secondary level community.
In the health insurance sector.
The company introduced wattage out lunching outpatient and emergency insurance I think the one breaking product and in the first thing industry cover medical expenses in the in blow secondary level commodity.
Speaker 2: Hospitals and township hospitals.
Hospitals in town of habit Township hospital.
Which address the shortcomings of existing product in the market.
Speaker 2: which address the shortcomings of existing product in the market.
Targeting users with.
Speaker 2: pre-existing conditions. The company upgraded its service by introducing Waterdrop iWU Cancer Recurrence Insurance. This product provides comprehensive coverage with high coverage amount, offering flexible options for wide range of users. Additionally, the company launched Waterdrop Blue Ocean No. 3 Series Unit Insurance, further enhancing the experience for sub-health users.
Pre negotiated exerts inhibition the company upgrading a survey by introducing what I will you cancer recurrence insuring.
This product provides comprehends encourage with high coverage a month offering flexible options for a wide range of users.
Additionally, the company launched what her job with Blue Ocean remember three serious units insurance.
Enhancing the experience for compounds to users.
Speaker 2: The company also responds to public policy shifts in savings insurance by offering diverse options tailored to different segmental populations and scenarios.
The company also respond to public.
Put a policy shift in savings and insurance offerings diverse options tailored to different segmental population engineer.
Speaker 2: In Q3, Waterdrop continued to enhance its insurance technology capabilities, investing in large models and AI technology to empower our business and deliver high quality insurance services.
In Q3, what is all continued to enhance its insurance technology capability investing in large motors and AI technology to empower our business and to deliver high quality insurance of it.
Like how many annualize the algorithms and AI to automatically identify potential intention in the pre balanced attack.
Speaker 2: The company utilized the algorithms and AI to automatically identify potential intentions in the pre-sales process. Significantly improved efficiency by 20% with the assistance of AI technology. Salesmen were able to achieve more refined user segmentation. Effectively engaged.
If anything they improve efficiency by 20%.
We've been consistent of AI technology salesman, we're able to achieve more refined user segmentation.
Effectively engaged.
With all the users.
Speaker 2: The company also leveraged smart model technology to create an insurance assistant based on our water drop insurance knowledge fake data.
The company also leverage modern technology to create and ensuring consistent based on our what his off insurance knowledge of big data.
Speaker 2: This system can answer questions related to insurance application claims, coverage responsibilities, premiums, and so on.
This assistant can't answer questions relating to insurance application claim coverage responsibility premiums and so on.
Speaker 2: assisting our staff members in promptly interacting to users' concerns.
Assisting our adult men to and probably interesting to do there's concern.
Speaker 2: Additionally, the company successfully launched an intelligent copywriting assistant with content production capabilities to assist our development in crafting more accurate and professional personalized content.
Additionally.
The company successfully launched and intelligent copywriting assistant with content production capabilities to assist our stockman in crafting more accurate and professional personalized content.
Speaker 2: Since its launch, over 1,000 developments have utilized this tool, significantly improved our efficiency.
Since its launch over solving 1000 Feldman has utilized its been tool significantly improved our efficiency.
Speaker 2: The above was about insurance business performance in Q3. Now, let's how we'll introduce the program of what is our core funding and digital clinical trial solution.
Bob was about insurance business performance in Q3, now, but how we'll introduce the program without a corresponding in theater to acquaint go twice version.
Thank you.
And that's the end of Q3, what is your medical couponing platform have accumulated 404 and by no means owners, a fitbit over 3 million patients and raised over six to $1 3 billion.
Speaker 2: As of the end of Q3, Waterdrop's medical care funding platform has accumulated $445 million, assisted over 3 million patients, and raised over $61.3 billion.
Speaker 2: both user numbers and fundraising amount continue to grow. In Q3, Waterdrop Operating Transparency Committee further enhanced platform interference. The platform revamped the fundraising information display page with four different models like information discovery, platform verification, public confirmation.
Both you their members on our writing them off continue to grow.
In Q3, what is the operating transparency committee further enhanced platform to very.
The problem revamped the front of rising information display page with four different models like inflammation discovered talk on verification public on combination.
And if on the cover.
Then provide a more comprehensive representation of key detail and.
Speaker 2: and to enhance consultant service. We conduct the first water drop consultant service month in August . We stimulize.
And two he has about 10 service when come back the first but what it all comes with a very small over it within their lives.
Speaker 2: our consulting operations with the release of the service handbook and improve overall service quality and risk awareness. As a result, overall user certification rose to 98 percent and the NPS for Fundraiser increased from 55 to 70 percent.
Our consulting the accretion with the release of surveys Handbook and improve overall service quality and risk awareness.
But over all users certification rose 98 prevent and the M. P. S. Four five either increased from 55% to 70%.
Speaker 2: in Q3 will continue the transition to service-oriented consultants in 45 strategic hospitals nationwide. This approach received high praise from both hospitals and patients. The platform will further improve the efficiency of service-oriented consultants while maintaining service quality.
In Q3, we continued the transition to series Orientate, a couple of times in 45 strategic hospitals nationwide.
Approach with risk.
Say the high praise from both hospitals and patients.
Will further improve the efficiency of service oriented because bolton, while maintaining service quality.
We probably had a few they experience hosting them first with donor and on arrival date in September with Athene open and transparency gathering trunk.
Speaker 2: We prioritize user experience, hosting the first donor and fundraiser open day in September with the same open and transparency gathering trust. The company CEO , Shen Peng and myself gather with donors and fundraisers to have deep communication on fundraising service experience, on transparency and case authenticity.
How many C O shrimp hung in adults together with donors and for advisors to have deep communication on underwriting service experience launching parents, he and case and since his body the.
Speaker 2: The company will continue to listen to user feedback, focus on technology innovation to enhance their efficiency and transparency. We'll honor the trust of every user.
The company will continue to listen to their feedback focused on technology innovation to enhance their efficiency and transparency will honor the trust of every visit.
Due to clinical trials, and losing business show stable and healthy development in this quarter. It was a quality revenue of about 27.6 million representing a year over year growth of 60.7 per se.
Speaker 2: Digital Clean Control Solution business shows stable and healthy development in this quarter, with a quarterly revenue of about $27.6 million, representing a year-on-year growth of $60.7 billion.
Speaker 2: During Q3, the E-Find platform expanded its collaboration with over 135 pharmaceutical and CROs, signing over 90 new projects with a rapid expansion.
No in Q3, but he signed off on expanded its collaboration was over 135 pharmaceutical and see our old finding over 90.
New projects with a rapid expansion.
Speaker 2: Benefiting an excellent ability of recruitment and project management, Collaborations was leading MNCs really deep in this quarter. The platform entered into an exclusive.
And if any axon and the ability of recruitment and top project management.
Collaborations with leading and N C is really good in this quarter.
<unk> entered into are excluded.
Speaker 2: participate in recruitment partnerships with the RISIS Clinical Trial Project with one of the world's top five MNCs. Additionally, supply process for initiatives with two top five MNCs with formal collaboration expected in Q4.
Cutting to paint recruitment punish it with the rise of clinical tire and predict with one of the worst 12 5 million and six originally supplied without SCOR initiatives with two top fire and then these with full formal collaboration expected in Q4.
Speaker 2: The InSign platform continues to expand the application of cutting-edge technology to accelerating new drug development.
The England plus of them continuing to expand the application of cutting edge technology to our salaries and new drug development.
Speaker 2: Leveraging big data and structured information from community-acquired projects.
Leveraging big data and the sculptor inflammation from clinic or try to push it.
Speaker 2: The program uses AI-driven matching systems to enhance efficiency in connecting patients with suitable products.
The program will use AI driven matching system to enhance the infusion E in connecting patients with.
Beautiful perfect.
Speaker 2: In patient service, due to our wild serious illness patient base, we have developed an efficient private domain platform about patient management and core expertise in medical service. The platform offers
Inpatient service due to our wireless serious illness patient base, we have developed and.
Efficient public domain platform about patient management and a core expertise in medical service the problem all vary.
Speaker 2: patient management and integrated services such as patient selection, medication management, medical service, innovative payment solutions, and data insight and so on. Providing the digital marketing solution covers the entire product life cycle.
Patient management and.
Our integrity service such as patients faction medication management medical service innovative payment solutions and data insight into law, providing the digital marketing solutions cover the entire product life circle.
Speaker 2: In Q3, a formal collaboration has been commenced with a leading agency focused on the health management of chronic disease patients. And that's all. And now I'll pass to Yangguang.
In Q3.
Formal collaboration have been immersed with our living and that would be focused on the health management of chronic disease patient.
And that's all in our pass through the ongoing for the next part.
Thanks, that's all.
Speaker 2: Hello everyone, I will now walk you through our financial highlights for the third quarter.
Hello, everyone I will now walk you through our financial highlights for the third quarter.
Speaker 2: Before I go into detail, please be reminded that all members quoted here will be in R&D. And please refer to our earnest relief for the detailed information on our financial performance on both year-over-year and quarter-over-quarter basis, respectively.
Before I go into video please be reminded that all members quota here will be RMB and please refer to our earnings release for the detailed information on our financial performance on both year over year and quarter over quarter basis, respectively.
Speaker 2: in Q3, despite a unique period of product adjustment. The company demonstrated robust profitability. The company revenue was $686 million, a slightly Q2 increase from $679 million.
In Q3, despite a unique period of put our assessment the company demonstrated rip off the perfect profitability. The company revenue was 686 million are slightly Q2 increased from $679 million.
Speaker 2: segmented report. It is the first quarter that we started to consolidate in the financial results of Shenlanbao. And the report is the result and there's an insurance.
Was that many report it in the first quarter that we started to consolidate in the financial result option involved and they reported that.
The result, and or the insurance related is that correct.
Our reinsurance really in income was 619.
I'm showing a three 7% Q O Q inquiry.
Bombing service fee or 36 million due to a quango solution income was about.
Speaker 2: 27.6 million with a remarkable 60.7% year-over-year growth.
27.6 minute with a remarkable 60 60 point.
Even prevent it year over year growth.
Speaker 2: Operating cost and expenses increased by 7.6% in year-over-year, decreased by 4.4% in QQ.
Operating cost and expenses increased by 7.6% a year over year decrease by four points or presenting Q O Q.
Speaker 2: operating costs decreased by 8.5% year-over-year to $313 million, mainly due to, firstly, a $19.5 million decrease in the cost of one-year health insurance coverage related to termination of Mutual Aid Plan, which occurred the same quarter last year.
Premium cockpit decreased by eight 5% year over year to 315 million, mainly due to firstly, a $19 5 million decrease in the copper one year health insurance coverage related to termination of mutual a plan.
Which was occurred the same quarter half year.
Speaker 2: Second reason was 9.4 million decrease in cost of refueling and servicing.
Second reason would be it was my point 4 million decrease in cost of or fewer than 30 P. S.
Speaker 2: S&M expenses increased by 36.1% year-over-year to $187.7 million. It was primarily due to, firstly, the consolidation of Shengnanbao, which generated a S&M expense of $28.1 million.
F N M expense has increased by 38% to 36.1% year over year to $187 7 million and it was primarily due to firstly the consolidation I'll turn on ball, which generated.
Dynamic sense of $28 1 million.
Speaker 2: Secondly, $14.4 million increase in marketing expenses to third-party traffic channels. And thirdly, $9.1 million increase in personal costs and share-based comprehensive expenses.
Secondly, a 14 point for you the increase in marketing expenses to third party traffic channels and thirdly, a $9 1 million increase in personal cost and share based to comprehend any expenses.
Speaker 2: In this quarter, the company proactively adjusts certain advertising strategies. There was a 41.3 million major decrease in marketing expenses to third-party traffic channels, partially offsetted by the consolidation of Shenandoah. SNM expenses decreased by 8.2% sequentially.
In this quarter the company proactively adjust certain advertising strategies. There was a 41 point swing maybe any major decrease in marketing expenses to third party travel channels.
Surely off that aided by the consolidation of auction on bolt.
<unk> expenses decreased by 8.2% sequentially.
Speaker 2: G&A expenses increased by 39.7% year-over-year to $114.6 million, and increased by 19.4% significantly, both QOQ and YOY variance due to the consolidation of Shenanbao and the increase in professional service fees.
G&A expenses increased by 39, 7% a year over year to $114 6 million.
<unk> increased by 19.4% sequentially.
Q O Q and Y O Y Byron are due to the consolidation of option on Dol and the increase in.
Professional service fees.
Speaker 2: R&D expenses decreased by 5.7% year-on-year to $73.9 million.
R&D expenses decreased by 5.7% year over year to $73 9 million.
Speaker 2: The decrease was primarily due to personal costs and share-based comprehensive expenses.
The decrease was primarily due to personnel costs and Shepherd share base comprehensive extensive.
Speaker 2: But the gap net profit attributed to the company in Q3 was $74.8 million. The gap net profit was $36.3 million. And we have generated gap profits over the past seven quarters.
But Justin Knight Covid attributed to the company in Q3 with <unk>.
74.8 million the GAAP net profit was $36 3 million and we were we have January case got Crockett over the past seven quarters.
Speaker 2: As of the end of September , 2003, the company had.
As of the end of September 29th Street, the comedy had.
Combined cash cash equivalents and shell coming back then of $3 1 billion, indicating.
Speaker 2: Combined cash-cash equivalence and short-term investments of $3.1 billion, indicating sufficient cash reserves.
Sufficient cash reserve.
Speaker 2: Overall, the business performance in Q3 was stable. Looking ahead, we will continue to focus on end-user value and sustainable high-quality development.
Overall the business performance in Q3 was stable looking ahead, we will continue to focus on the value and sustainable high quality development.
Speaker 2: And ladies and gentlemen, with that, we will conclude today's conference call. We do thank you for joining. Have a good time.
Ladies and gentlemen, with that we will conclude today's conference call. We do thank you for joining have a good time.
Yeah.
[music].
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