Q1 2024 Waterdrop Inc Earnings Call
Unknown Executive: Good morning, everyone. This is Tracy Li from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop's first quarter 2024 earnings conference call. All participants are in listening only mode on our English line.
Good morning, everyone. This is shrinking the brown Investor Relations, if not Florida will come maybe wanted to pick up first quarter earnings conference call. All participants in a listen only mode in our English line as a reminder, today's conference call is being recorded.
Unknown Executive: As a reminder, today's conference call is being recorded. Please note that the discussion today will consist of forward-looking statements made under the state appropriate provisions of the U.S. Private Security Act and the Litigation Reform Act of 1995.
Speaker Change: Note that discussion today will contain forward looking statements and the safe Harbor provisions of your wife Private Security and Litigation Reform Act up 1995 forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current.
Unknown Executive: Forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public findings with the SEC. This committee does not undertake any obligation to update any forward-looking statement except that it is required under applicable law.
Speaker Change: But these are risks and uncertainties include but are not limited to those outlined in our public filings with SEC.
Speaker Change: The company does not undertake any obligation to update any forward looking statement, except as required.
Speaker Change: And I think of a law also this call includes discussion of certain non got merit. Please refer to our earnings release, or our company Asian Fernandez and guests.
Unknown Executive: Also, this call includes discussion of certain NANDGAP matters. Please refer to our earnest plea for our considerations between NANDGAP and GAP. Joining us today on the call are Mr. Yang Guang, Co-Founder, Director, Senate VP, and GM of International Business; and Mr. Yang Wei, Director and GM of Insurance Business. Mrs. Xu Xiaoying, Head of Finance, and Mrs. Jessamine Lee, Board Secretary. We'll be happy to take some of the questions in the minute line at the end of the conference call. Hello everyone,
Speaker Change: Tony I'll tell you on the call.
Speaker Change: Mr. Young won't co founder director and SVP, and GM of international business material Doctor and GMO insurance.
Speaker Change: Maybe she got her.
Speaker Change: Her name.
Speaker Change: Definitely the secretary will be happy to take some of the questions in the many rely.
Speaker Change: The conference call.
Unknown Executive: Thank you for joining us for our First Quarter Funding for EARNS conference call. Since the beginning of 2024, the domestic economy remains on track for recovery, leading to steady growth in the personal insurance industry. Waterdrop, the company, continues to pursue high-quality development while improving our quality and efficiency. In terms of our financial performance, total revenue of Q1 reached 705 million, up 16.3% year-over-year. Yet net profit attributed to the company reached 80.6 million, a significant increase of 62.2% year-over-year. Furthermore, since Q1 of 2002, we have continuously recorded profitability for nine consecutive quarters. In Q1, all our business segments maintained robust performance.
Speaker Change: Hello, everyone and thank you for joining us.
Speaker Change: Our first quarter earnings conference call.
Speaker Change: Is that beginning of 2020 for the domestic economy remains thoughtful recovery netting to a steady growth in personal insurance industry.
Speaker Change: But what do you drive the comedy continues to pursue high quality development, while improving our quality and integration.
Speaker Change: In terms of our financial performance total revenue in Q1 reached 700 by yearend up 16, 3% year over year GAAP net profit attributable to the company reached a D points.
Speaker Change: Our significant Greenfield 62, 2%.
Speaker Change: In Q1 up 102, we have continuously recording profitability for nine consecutive quarters.
Speaker Change: In Q1, all of our business segments maintained all of our insurance business, we actually optimize the critical brain explore new service model.
Unknown Executive: For our insurance business, we actively optimize the product offerings, explore new service models, and continue to strengthen AIJC empowerment. Insurance premiums significantly increased sequentially, representing an operating margin of over 20%. With Waterdrop Medical Corp. funding, we are actively participating in a multi-level medical assistance system to continue improving service quality. The spending block was further reduced.
Speaker Change: Aig's empowerment.
Speaker Change: <unk> premium doing anything crazy correct sequentially.
Representing an.
Speaker Change: Operating margins of over 20%.
Speaker Change: But what is the medical care funding, we are actively participating in multiple medical assistance.
Speaker Change: To continue improving every quality Beckman Lockwood further read you.
Unknown Executive: For healthcare-related business, we continue to collaborate with domestic and international pharmaceutical companies, expanding to digital marketing solutions. During Q1, our revenue increased 7.3% worldwide. In the first quarter, we continued to invest in R&D. Right now, we have obtained four LLM-related patents and submitted over 10 more patent applications. We are committed to improve efficiency in the entire insurance service loop; for our CSR and ESG efforts, Waterdrop adhered to sustainable development in ESG management implementation and as well as discoloration. In the latest rating published by IGF, our rating increased to A-, requesting great list forwarding, and yes.
Speaker Change: Our health care related business, we continue to collaborate with domestic and international Pharmaceuticals.
Speaker Change: Turning to our digital marketing solution.
Speaker Change: During Q1, our revenue increased 7.3% Y O y.
In the first quarter, we continued to invest in R&D right now we have obtained for L. O M related heaven.
Speaker Change: I made it over 10 more pay application, we are committed to improving efficiency and ensuring every group.
Speaker Change: Well receive R&D, yes. He effort what did you all here to sustainable development, ESD management implementation and as long as it.
Speaker Change: These color.
Speaker Change: In the latest ratings published by I hate to ask our rating to a minus requesting a great next forwarding at Yankee.
Unknown Executive: As of NFQ1, our charity platform has partnered with 112 public charity organizations and launched more than 15,000 projects. HappyBunk, one of the multi-level medical assistance platforms we joined, was awarded a 2023 Project of the Year at the 8th China Charity Annual Conference. In the capital market, we recently paid our first special cash dividend since listing. We look forward to bringing more value to our shareholders in the future. Regarding share buyback, as of the end of May 2024, the company has cumulatively repurchased $45.5 million of ADF in the open market for a total consideration of about $95.9 million.
Speaker Change: As of the end of Q1, our charity platform has partnered.
Speaker Change: Partnering with 100, and I'll hurry charity organization.
Speaker Change: Loss of more than 15000 project.
Speaker Change: One a multi level Michael isn't our only joined it was awarded a 23 for a couple of year in eight China charity annual conference.
Speaker Change: What's their camera market, we recently paid our first if that's okay.
Speaker Change: Since listing we look forward to bringing more value for shareholders in the future.
Speaker Change: Regarding share buyback and that's the end of May 'twenty money for the company has cumulatively repurchased 45. Finally here you know open market for a total consideration of about $95 $9 million.
Unknown Executive: The repurchased shares will continue to be used for ESOPs to motivate our talented team. This is a recap of our performance in Q1. For the full year of 2024, Waterdrop's financial guidance remains unchanged.
Speaker Change: The repurchased shares will continue to be used for yourself to motivate our talented team. This is a recap of our performance in Q1 for the full year upon year before what is wrong financial guidance remains unchanged for a.
Unknown Executive: First, a profitable year with double-digit revenue growth. Second, an insurance operating margin above 8%. Third, sustained growth in healthcare-related revenue. To achieve our goals, we will implement the following steps.
Speaker Change: Property every year with double digit revenue growth.
Speaker Change: In insurance, the operating margin of about 8%, they're substantive growth and health care related revenue to achieve our goals we will implement.
The pooling strategy.
Unknown Executive: For the insurance business, we will adhere to our user-first principle, further optimize Capital Conversion, explore new service models and product innovation, invest in AIPC, and disrupt business operations to improve efficiency for both ourselves and users. We will continue to take advantage of technology capability to ensure sustainable development, well-fulfilling social value, and meeting user needs in Healthcare Business, where we will swiftly move through penetration worldwide, expanding the comprehensive service capability to more disease categories, and actively exploring digital marketing to broaden business boundaries, with Obama Cash Reserve, while seeking suitable partnership and M&A targets around the insurance and healthcare sectors.
Speaker Change: Our insurance business, we were here to argue the first principle further optimize tropical conversion explore new service models and product innovation investing in our D. C. Starting business operations to improve efficiency, both ourselves and history.
Speaker Change: Who medical core founding we will continue to take advantage of the technology capabilities to ensure sustainable development, well drilling social value and meeting their needs.
Speaker Change: Well health care business, we will remove the penetration worthwhile.
Speaker Change: Spanning the comprehensive.
Speaker Change: The ability to have more do these categories and actively exploring digital marketing to brought in different Banca yet.
With Obama cash reserves with thinking suitable partnership and M&A targets around insurance and health care sectors.
Unknown Executive: Looking ahead, the company will continue to strengthen its business value, and its barriers to getting by our mission and values will continue to see more segmentation opportunities. Now I will pass to Yang Wei to discuss our insurance business in Q1. Thanks, Yang.
Speaker Change: Looking ahead the company will continue to strengthen its business value added barriers that embody our mission and value will continue to see for a SEC.
Speaker Change: When it's a patient opportunity.
Speaker Change: Now I will pass to wrong way to describe our insurance.
Speaker Change: One.
Speaker Change: Thanks, Yeah.
Yang Guang: This quarter, our insurance business demonstrated steady growth. The total FYP reached about $1.75 billion, increasing by 3.7% year-over-year. Insurance-related income was $610 million, up by 13.1% worldwide.
Speaker Change: This quarter, our insurance business demonstrate thank.
Speaker Change: Well the total FY two reached about 175 billion increased by three 7% year over year insurance related income with 610 million up by 13, 1% Y O y.
Yang Guang: Upgrading profits for the insurance business reached 130 units. FYP for short-term insurance products was $1.15 billion in the first quarter, representing a sequential increase of 15.9%. Notably, new policy FYP growth was 41.6% sequentially.
Speaker Change: Operating profit for the insurance isn't reached 130.
Speaker Change: I've heard people talk home insurance product with 115 billion in the first quarter, representing a sequential increase of 15, 9%, notably new policy FY <unk> grew by 41, 6% sequentially. We have continually improved online traffic conversion and based on the user profile.
Yang Guang: We have continually improved online traffic conversion, and based on the user profile of each content distribution platform, we specifically optimized our product offering or calling date. Our policy renewal rate remains at a high level consistently above 95%, which indicates strong user recognition. FYP for long-term insurance products amounted to $600 million in Q1, representing a Q3 growth of 13.4%. The contribution of what it generated for long-term insurance products to overall FYP was further increased. The FYP of life insurance products to overall long-term products increased to 56.4%.
Speaker Change: Content distribution platform, we physically optimized our product offering accordingly.
Speaker Change: Our policy renewal rate remains at a high level companies only about 95%, which indicates a strong U very recognition I find people long term insurance product amounted to 600 million in Q1, representing a Q3 growth of 13, 4% the contribution of widespread teeth are generating.
Speaker Change: For long term insurance products to over all FY <unk> with further increase that's why people like.
Speaker Change: Our life insurance products to our old long term productivity increased to 50 656, 4%.
Yang Guang: We got a sequential increase in productivity per capita by 6.4%; the overall quality of long-term policies further improved, with the first-year retention rate increasing by 2% per percentage point in sequential growth. We continue to develop our offline brokerage. In Q1, we launched our new brand of offline brokers, Shuiyi Xingchen, aimed to provide more comprehensive offline services and strengthen our brand awareness. On Shen Lanbao, we got a sequential increase in FIP.
We got a sequential increase in productivity per cabinet up by six 4%. The overall quality of long term policy further improved with the first year retention rate increasing by 2%.
Speaker Change: The mid point sequentially.
Speaker Change: We continue to do that with our offline brokerage.
Speaker Change: In Q1, we launched our new brand of offline brokers using 10 aim to provide more comprehensive offline surveys extra spending our brand awareness.
Speaker Change: Oh, My Gosh, we got sequential increase in at like heat.
Yang Guang: And Waterdrop Insurance Marketplace at Shen Lanbao really enhanced synergy in sales resources, content marketing, and product partnerships. Our capability in catering various products to meet user needs continues to improve. During this quarter, we launched QiBao, a long-term medical insurance product that guarantees renewal for 20 years and aims to provide high-value coverage for females. [Inaudible] Our wheel shop disability income insurance for the elderly exceeded 10 million in FYP for the first month it launched, reflecting strong market demand.
Speaker Change: And what are the drop in insurance marketplace.
Speaker Change: We have here in.
Speaker Change: In the South resources content marketing and correct harnesses.
Speaker Change: Our credibility in catering virus product to meet their needs continue to improve.
Speaker Change: During this quarter, we launched T ball.
Speaker Change: Long term medical insurance product that was guaranteed to eastern Europe for 20 years and aim to provide high value coverage yet.
Especially for female.
Speaker Change: Oh, we'll show feasibility incoming Sean for the elderly have exceeded 10 billion in FY <unk> for the fourth market along with walking a strong market demand.
Yang Guang: Targeting the marketing segment, we have successfully upgraded one of our star products, Jiahaoyun, to version 2.0, which gained top recognition on the Wireless platform. For people with pre-existing conditions, we upgraded our PocoBot to over a zero waiting period and extended it in real age up to 105 years old.
Speaker Change: Targeting them.
Speaker Change: The marketing segment, we have successfully upgraded to one of our star products.
Speaker Change: To version 2.0, which game talk origination on wireless platform.
Speaker Change: Well people with pretty busy existing foundation, we upgraded our football two hour zero, we can't hear it in saying that if you ROE age up to 105 years old the old.
Yang Guang: The overall carrier insurance product achieved 100 million FYP during Q1, continuing to gain users' trust. Moving on to technology empowerment, in Q1, we continued to expand the application of our traditional CTTs. The accuracy and efficiency of our large-length remodel have been significantly improved.
Speaker Change: All carriers insurance product.
Speaker Change: She's the 100 million in FY P drink wine continually to can use it.
Speaker Change: Yes.
Speaker Change: Moving on to technology empowerment in Q1, we continued to expand the application of our cheap the accuracy and efficiency of our lost memory models have significantly improved our AI broker has reached 90% of the average level.
Yang Guang: Our AI broker has reached 90% of the average level of human brokers in the health insurance sector, capable of conducting independent dialogues with other clients for up to 40 minutes. Meanwhile, our AI co-pilot, which has been widely and internally tested, reached an accuracy rate of over 90%. Insurance, Molly's QA, significantly, boosting the efficiency of stalls, quality controls, and others. We also actively explore external applications to empower the industry, with several partnerships currently under negotiation. By now, we have obtained four LLM-related patents and submitted over 10 more patent applications.
Speaker Change: Human broker in health insurance sector capable of conducting independent dialogues with our clients for up to 40 minutes.
Speaker Change: Meanwhile, our AI co pilot, which has you know widely in internally has it reached an accuracy rate.
Speaker Change: And 90%.
Speaker Change: In insurance molecule weight.
Speaker Change: Stickney personally those things the efficiency I'll stall, a quality controls and others.
Speaker Change: We are also actually for accidental application to empower the industry.
Speaker Change: With several partnerships currently under negotiation.
Speaker Change: So now we have 110 for Arrow and really do you come here and somebody paid over 10 more having application.
Yang Guang: Looking ahead, we will remain dedicated to positioning ourselves at the forefront. This concludes my remarks for today, and I now have to adjust myself for an overview of medical response and healthcare. Thank you, Rongwei.
Speaker Change: Looking ahead, we remain dedicated to positioning ourselves as a full front.
Jeff: That concludes my remarks for today and we now have two Jeff me for an overview of medical for funding and health care business.
Speaker Change: Thank you wrong way.
Jessamine Lee: As of NFQ1.24, around 456 million people in the community donated $63.8 billion to over 3.17 million patients through our Waterdrop Medical Group Funding. We sustain a focus on transparency and keep strengthening our risk management mechanism. For instance, before manual verification, we integrated algorithm recognition to identify false or fake medical documents and Mitigate Related Risk Effects. In addition, for patients with a high risk of passing away, withdrawal of the donations is made in batches according to the stage of treatment, reducing the risk of farm misappropriation. The higher the authenticity we have, the greater the domes include in the app.
Speaker Change: And that was the end of Q1 'twenty and for around 450 Big thing I mean, he told me we can be donated.
Speaker Change: 3.8, due in two or three points 17 million patients through our wouldn't dragon medical for funding.
Speaker Change: We just haven't focused on transparency and keeps strengthening our risk manager metabolism.
Speaker Change: But informed before many of the verification with integrating algorithms reclamation to I don't know if I fall.
Speaker Change: They can medical documents.
Speaker Change: And mitigate rearrangement risks.
Speaker Change: Actually.
Speaker Change: In addition.
Speaker Change: For patients with a high risk of pumping await withdraw all the donations made it in batches according to the faithful treatment.
Speaker Change: Reducing the rates on a per patient.
Speaker Change: Repeating that the higher.
Speaker Change: As anticipated we have the greater the dorms enthusiasm with would be.
Jessamine Lee: In the meantime, we constantly prioritize user experience and constantly improve service quality. For urgent cases, we open up an advanced payment application portal for people who have passed the race control review. When patients need to withdraw funds but the 24-hour public notice period hasn't ended, we will use our own funds as an advance payment.
Speaker Change: In the meantime, we constantly are already high skew their experience and constantly improve service quality.
Speaker Change: Urgent cases, we opened Irvine payment application portal vocations will have passed the.
Speaker Change: The risk control review.
Speaker Change: We know when patients need to withdraw the pound.
Speaker Change: But 24 hours public notice period, it had been and we will use our own bonds at the end of last payment.
Jessamine Lee: This ensures that the patient can properly get a fund for their treatment. During Q1, we actively participated in multi-level medical assistance programs initiated by local governments in China. In February, on International Rare Disease Day, Waterdrop launched a special rare disease care program on top of our existing support initiative.
Speaker Change: This ensure that a patient can properly get upon severe treatment.
Speaker Change: During Q1, we actually participated in.
Moody: Moody's I won't medical assistance programs initiated by local governments in China.
Moody: In February.
Moody: International rare disease day, well have dropped launched especially with rare disease care program on top of our existing supporting initiatives.
Jessamine Lee: By the end of Q1, more than 67,000 patients with rare diseases have asked for help through our Waterdrop Medical Co-foundation platform and received donations of more than 1.5 billion yuan from 4.9 million donors contributing through our platform. Waterdrop Medical Corresponding, Charitable Funds, and Collaboration with Pharmaceuticals We provide a fast track for rare disease patients to respond, as well as dedicated consultants and fundraising support. Waterdrop Charity works with charitable funds to help patients seek medical resources, get local medical insurance policies updated, and so on.
Speaker Change: By the end of Q1 more than 57000 patients with rare diseases have excellent house through our would've dropped medical for farming.
Speaker Change: And have received donations of more than $1 5 billion yen.
Speaker Change: From a 48.9 million donors.
Speaker Change: Contributing through our platform.
Speaker Change: What are you all medical couponing charity bonds and a collaboration with pharmaceuticals, we provide us off the track for rare disease patients, who respond as well as dedicated consultant and I kind of referenced court. What are you sharing your works with a charity fonts to help it.
Speaker Change: Patients seek medical resources get local medical insurance policy updates and so on.
Jessamine Lee: Through that, we've continuously updated our care initiatives for patients, bringing more hope to those in need. In Q1, our healthcare-related business continued its momentum. We expanded our digital capabilities in clean food supply solutions and the multi-channel marketing solution. For this quarter, healthcare-related income reached $25.3 million, representing an increase of 7.3% year-over-year. The number of corporations of suitable NCROs reached 179, and the number of new programs, which is 88, both feverish, women's high level. [inaudible] As of the date, about 7,800 patients were enrolled.
Sure that will continuously after you hear our care initiatives location, bringing them more hope to those in need.
Speaker Change: In Q1, our health care related business continue its momentum.
Speaker Change: We expanded our digital capabilities, including switch Phy solutions and multi channel marketing solution.
Speaker Change: For this quarter in healthcare related income reached 25 point screening them.
Speaker Change: Representing an increase of seven 3% year over year.
Speaker Change: Nevertheless, cooperation becomes beautiful bureaus reached the 179.
Speaker Change: And the number of new programs reached 88 will triggers women's hydro.
Speaker Change: Leveraging our broad patient base and strong digital ability.
Speaker Change: He found platform continue to enbrel substantive suitable candidates for our pharmaceutical clients in Q1 <unk> platform fits ethylene rode over 800 patients as of the date about the 7800 patients where you broke our performance has been recognized by our clients.
Jessamine Lee: Our performance has been recognized by our clients. For instance, in the RISIS-Clinical Trial Project for Global Top 5, we worked as an exclusive Chinese third-party patient recruitment partner and successfully enrolled over 60 patients within three months, which is 20% faster than the regular time needed. As we fight resignation in the industry, we continue to deepen our cooperation with leading pharmaceuticals and CROs, both domestically and internationally. We have already cooperated with 7 out of the global top 10 pharmaceuticals. The CRO business continues to steady develop as our reputation and influence strengthens. We want a new bid for a clinical trial in the field of cell therapy for listing pharmaceuticals in Q1.
Speaker Change: And derived this language I have predictable global top it took five and Nancy will.
Speaker Change: We look at our exclusive Chinese third party.
Speaker Change: As you know recruitment partner and successfully rolled over 60 patients within three months.
Speaker Change: Which is 20% faster than the regular time need it.
Speaker Change: And we have fulfillment against rates in the AG industry.
We continue to deepen our cooperation with leading pharmaceutical Santa zero, both domestically and internationally.
Speaker Change: We have already cooperate with seven Paolo Global top 10 unsuitable.
Speaker Change: Our old business continued to its steady development as our reputation and influence strengthened.
Speaker Change: A new bed for a clean with higher projecting the feudal cell therapy.
Speaker Change: And for listing pharmaceutical in Q1. In addition to key clinical trial version of our own completed.
Jessamine Lee: In addition, two key clinical trials those in our platform completed their initiation in the first quarter, including the smooth launch of new brands in Q1. Looking ahead, we'll continue to explore potential digitalization in the healthcare sector. The platform will continue to build and improve integrated solutions across the entire industry chain. In Q1, we further expanded in the field of digital multi-channel marketing, leveraging our experience in patient management for chronic diseases; we saw an increasing number of clients, and cooperation with MNCs after the dipends.
Speaker Change: Initiation in the first quarter, including the smallest of launching a few rent figures.
Speaker Change: Looking ahead, we will continue to explore potential digitalization is a health care perspective.
Speaker Change: One continuous debuted and Ah in crew integrated solutions across the entire industry churn in.
Speaker Change: In Q1, we further expanded in the period up digital multichannel marketing leveraging our experience in patient management for chronic disease, we saw an increasing number of clients.
Speaker Change: Cooperation with Emmis ease up are they depend Meanwhile, we signed a strategic cooperation with a leading domestic digital it was believed that what is your off will become the preferred partner in marketing for more and more pharmaceutical via bulk conclude my speech now.
Jessamine Lee: Meanwhile, we signed a strategic cooperation with a leading domestic pharmaceutical company. We believe that Waterdrop will become a preferred partner in marketing for more and more pharmaceuticals. This concludes my speech. Now I will pass to Mrs. Xu Xiaoying, the head of finance, to discuss the company's financial performance. Thank you, Jasmine.
Speaker Change: When he says he was the head of finance to discuss the company's financial performance.
Unknown Executive: Hello everyone, I will now walk you through our financial highlights for Q1. Before I go into details, please be reminded that all numbers quoted here will be in RMB. Please refer to our earnings release for detailed information on our financial performance on both the year-on-year and quarter-on-quarter basis, respectively. We are thrilled to kick off 2024 with solid financial results. The company's revenue in Q1 amounted to $705 million, representing a QQ growth of 16.3%. The revenue structure is more diversified, of which the insurance-related income amounted to $607 million.
Speaker Change: Thank you Jeff Me, Oh, Hello, everyone I will now walk you through our financial highlights for Q1 before I go into details. Please be reminded that all numbers quoted here will be RMB and.
Speaker Change: Please refer to our earnings release for detailed information on our financial performance, almost a year on year and quarter over quarter basis, respectively.
Unknown Executive: The core funding business contributed revenue of $67.4 million, and healthcare-related income of about $25.3 million. At the same time, the company also continued to focus on operational efficiency, with overall operating costs and expenses of $658 million, up 10.5% year-on-year and 4.5% quarter-over-quarter. Among them, Q1 operating costs were approximately $331 million. Operating costs showed a year-on-year increase of 33.6% because of the competitive nature involved, representing a sequential increase of 9.6%, mainly due to an increase in referrals and receipts, in terms of expenses.
Speaker Change: We are thrilled to kick off turn when he four with solid financial result.
Look how many revenue into one amounted to 705 million, representing a cube cube growth of 16.3 prevent the revenue structure is more diversified upwards, which the insurance related income amount to 607 Union the profiling business contribute revenue.
Speaker Change: $67 4 million and the health care related income.
Speaker Change: The $25 3 million with all three business segments growing steadily.
And the same time the company also I'll continue to focus on operational efficiency with overall operating costs and expenses of 66 658 million up 10.5% year on year and 4% quarter over quarter.
Speaker Change: Among them Q1 operating cost.
Speaker Change: Approximately $331 million operating costs showed a year over year increase of 33, 6% because of the competitor helps rumble.
Speaker Change: We're presenting us decreasing by nine 6%, mainly due to an increase in referral and repeat.
Speaker Change: In terms of extended.
Unknown Executive: S&M expenses amount to $182 million, representing an increase of 5% and 4.2% on YOY and QOQ basis, respectively, which maintain a healthy and steady trend and benefiting from our effective cost control. G&A expenses amount to $89 million, representing a decrease of 7.1% and 7.3% on YOY and QOQ basis, respectively. R&D expenses amount to $56 million, decreasing due to the impact of team restructuring
Speaker Change: I mean granted amount to 182 million, representing an increase of 5% and 42% on Y O Y M. Q O Q basis, respectively, which maintain a healthy in that age range.
Speaker Change: And benefiting from our if in fact people cost control G&A expenses amounting to 88 9 million, representing a decrease of seven 1% and seven 3% on a Y O Y on people, who visit R&D expenses amounted to $6 million decrease.
Speaker Change: Due to the impact of tumor restructuring in Q1, our profitability improved significantly net profit attributed to the comedy ordinary shares amounted to 80 points.
Unknown Executive: In Q1, our profitability improved significantly. Net profit attributed to the company and ordinary shares amounted to $80.6 million, an increase of 62.2% on YOY and 36.5% on QOQ. Since Q1 of 2002, we have continuously recorded profitability for two consecutive years, which generated a net cash-in flow from our operating activities of $179 million. Looking ahead, we will continue to create value for our users and shareholders through great profitability and growth. And ladies and gentlemen, with that, we will conclude today's conference. So we do thank you for joining us. Have a good time!
Speaker Change: 1 billion, an increase of 62, 2% a year over year and 36, 5% a quarter over quarter. Since Q1 of 2002, we have continuously recorded profitability for two consecutive years, we generated a net cash inflow from our operating activities of 100.
Speaker Change: 17, 9 million looking ahead, we will continue to create value for our users and of shareholders with great profitability and growth.
Speaker Change: And ladies and gentlemen, with that we'll conclude today's conference call. We do thank you for joining have a good time.
Speaker Change: Oh preschool vinyl conference has now concluded we thank you for attending today's presentation and you may now disconnect.
Speaker Change: Yeah.
Speaker Change: Okay.
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Speaker Change: Okay.
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Speaker Change: Yeah.
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