Q1 2025 Waterdrop Inc Earnings Call
Tracy Li: Good morning, everyone. This is Tracy Li from Waterdrop Investor Relations.
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Tracy.
Tracy Li: It's my pleasure to welcome everyone to Waterdrop's first quarter 2015 earnest conference call. All participants are in listening mode in our English line. As a reminder, today's conference call is being recorded.
Baxter: Baxter relation if necessary as we welcome everyone to first quarter 25 earnings call.
Speaker Change: I'll participate in listen only mode. Our English line as a reminder, today's conference is being recorded.
Unknown Executive: Please note that the discussion today will come from forward-looking statements made under the SIPP-COPPER Prohibition of U.S. Private Security and the Legislative Reform Act of 1995. Forward-looking statements are subject to risk and uncertainties, and may cause actual results to differ maturely from our current expectations. Potential risk and uncertainties include, but are not limited to, the spotlights in our public files with the FTC. The company does not undertake any obligation to update any forward-looking statements, except as required under applicable law.
Speaker Change: Please note that discussion today will contain forward looking statements and the tougher conditions.
Speaker Change: Pardon me journey and the litigation Reform Act.
Speaker Change: Forward looking statements are subject to risks and uncertainties.
Speaker Change: Actual results could differ materially from our current expectation.
Speaker Change: Yes.
Speaker Change: But not eliminate.
Speaker Change: Hi.
Speaker Change: And if you have any other agent.
Speaker Change: Forward looking statements.
Speaker Change: Actually I think I'm a lot.
Unknown Executive: Also, this call includes discussion of certain NAMGAP matters. Please refer to our earnings release for consideration between NAMGAP and GAAP.
Speaker Change: On this call.
Speaker Change: non-GAAP measures please refer to our earnings release.
Speaker Change: Thank you.
Tracy Li: Joining us today on the call are Mr. Shen Hong, our Founder, Chairman and CEO, Mr. Ren Wei, Director and GM of the Insurance Business, Mr. Zhixia Ying, Head of the Finance Department, and Mr. Justin Guo, Secretary.
Speaker Change: Joining us today.
Speaker Change: <unk>, our founder Chairman and CEO, Mr. Jeremy Darroch.
Speaker Change: Character and GM health insurance.
Speaker Change: Yes.
Speaker Change: Hello, Thank you kaki.
Speaker Change: Yes.
Speaker Change: The tax rate.
Unknown Executive: We will have you take some of the questions in the middle of the line at the end of the presentation.
Speaker Change: We were happy to take some of the question.
Speaker Change: Okay.
Peng Shen: Good afternoon, everyone. This is Peng Shen. In the first quarter, Waterdrop achieved robust business growth while maintaining a steady profitability. Our revenue reached over 750 million yuan, up by 7% year-over-year, with net profit attributed to the company's ordinary shareholders about 110 million yuan, a significant 34.2% year-over-year growth. This marks our 13th consecutive quarter of SCAP profitability. As a segment, our insurance system continues proactive as well as strategies driving first-year premiums up by 19% year-over-year, contributing to an 8% year-over-year increase in insurance revenue. For medical profiling, as a pioneer of online service platforms for individuals seeking financial help, we strictly adhere to regulatory guidelines, keeping legally assisting 3.47 million patients.
Speaker Change: Good afternoon, everyone vintage and Paul in the first quarter, what is that machismo, Boston, well, while maintaining steady profitability.
Speaker Change: Our revenue reached over 760 million events by seven.
Speaker Change: As a percent year over year.
Speaker Change: Net profit actually.
Speaker Change: The company's ordinary shareholders about one Julien.
Speaker Change: Yes.
Speaker Change: You may begin.
Speaker Change: Four 2% year over year.
Speaker Change: This marks our 15th consecutive quarter is catch.
Speaker Change: Okay ability.
Speaker Change: That's one of our insurance business.
Speaker Change: Well Genesis.
Speaker Change: It's Ravi first year premiums I mentioned present year over year contributing to an 8% year over year increase.
Speaker Change: Revenue from Marvell.
Speaker Change: At the 10 year, Hawaii service.
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Speaker Change: You mean, it will be at 15 347.
Peng Shen: Yifeng platform into stable execution with over 8000 patients enrolled today. With further advances in our AI capabilities, establishing in the three benchmarks for insurance applications, R&D expenses in Q1 totaled $56 million, up by 3.6% as part of the project. Our Waterdrop Guardian AI insurance experts expanded across more scenarios, including internal use in maternity insurance, WECOM, and accidental furnishings.
Speaker Change: Hum.
Speaker Change: Paul mentioned stable execution.
Speaker Change: With over 6000 patients.
Speaker Change: Okay.
Speaker Change: We further advanced our.
Speaker Change: It already.
Speaker Change: Establishing industry benchmark insurance application R&D expenses in Q1, which included nearly.
Speaker Change: Five.
Speaker Change: By three 6%.
Speaker Change: What is the Guardian AI insurance expert.
Speaker Change: No more.
Speaker Change: Thank you.
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Speaker Change: Friendship.
Peng Shen: We're going to shareholders in our priority by end of May 2025 we have repurchased approximately 54.2 million ADF in the open market totaling 1.07 million dollars. This May we distribute our third cash given of 7.3 million dollars.
Speaker Change: Returns to shareholders and in our priority.
Speaker Change: Sage 105, we have repurchased approximately $84 2 million in the open market growing one point of view.
Speaker Change: This may we distribute our third division.
Speaker Change: Oh yeah.
Speaker Change: Hi.
Peng Shen: Waterdrop remains committed to social responsibility and sustainable development, actively creating shared value for society. As of March 31, 2025, Waterdrop's charity platform has partnered with 117 public charitable organizations, launching over 15.5 thousand projects, including rapid response to the COVID-19 pandemic. In the second quarter, to further increase, we anticipate that the annual revenue will grow by over 20% year-over-year. In the second half of the year, the company intended to increase its investment in driving business growth, which may have a certain negative impact on the annual profit.
Speaker Change: What is your outlook remains committed to social responsibility and sustainable development accurately creating share value.
Speaker Change: Finally at March 31, 25, what is our charity welcome Hunter with 117, Blake charitable organization launching or 15 five families. Okay.
Speaker Change: <unk> rapid response to that.
Speaker Change: Great.
Speaker Change: Currently we expect our revenue growth rate in constant.
Glenn Conor: Well Glenn Conor.
Speaker Change: Quarter to date, and we anticipate that the annual revenue will grow by over 20% year over year in the second half year.
Speaker Change: How many intended to eat crazy embankment and driving business, well, which may have a third inactivate impact on the annual.
Speaker Change: Okay.
Unknown Executive: I will now pass the round to update our performance in each room.
Speaker Change: I will now with Rocky you update our performance in June.
Speaker Change: Great.
Speaker Change: Yeah.
Unknown Executive: Thank you, Peng Shen. In the first quarter, our insurance business achieved an FIP of approximately 2.09 million yuan, with a year-over-year growth of 19.3% and a quarter-over-quarter growth of 10.2%. Insurance-related revenue reached about 660 million yuan, increasing by 8.4% year-over-year and by 13% quarter-over-quarter. The insurance business generated operating profit of approximately 115 million yuan, with an operating profit margin of 23%. FIP for short-term insurance reached 1.5 billion yuan, with 30.1% year-over-year growth and 4.6% quarter-over-quarter.
Speaker Change: Oh, Thank you Jean Paul.
Speaker Change: Yeah.
Speaker Change: Our insurance business achieved.
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Speaker Change: The insurance is generating operating profit by approximately 115 days with an operating profit margin of 23%.
Speaker Change: People, California and showing it.
Speaker Change: The one 5 billion with 31% year over year growth in Brooklyn.
Speaker Change: Brooklyn is part of them per berth.
Unknown Executive: on the customer activation site centered on Insurance Branding, we implemented personalized marketing strategies across traffic platforms including TikTok. and Xiaoying Xu, while leveraging real-time API capability. Currently, we explore upgraded coverage and value-added services for existing users, driving premium growth from both new and existing customer bases. On the supply side, we have continued to innovate in healing medical insurance, insurance for substandard risk, and maternity insurance offerings. During the quarter, our product for substandard risk generated premium of 280 million, representing year-on-year growth exceeding 200%. We have further strengthened our collaboration with insurance companies. companies to develop more customized innovation products.
Speaker Change: On the customer acquisition side and your alliance.
Randy: What has dropped each right Randy let me just hit it.
Randy: Personalized marketing strategies across the platform, including signal.
Randy: In the shoulder, while leveraging real time API to the dividend.
Speaker Change: Lee.
Speaker Change: Hello reach and value <unk> service as well.
Speaker Change: So having premiums grow both.
Speaker Change: From both new and existing customer basis.
Speaker Change: On the supply side, we have.
Speaker Change: Movie median medical insurance insurance book box standard risk and retrain insurance offering.
Speaker Change: During the quarter.
Speaker Change: Our products well.
Speaker Change: Generally viewed premium up to 80 million representing year on year.
Speaker Change: <unk> hundred per day, we have furthered our cooperation with insurance company.
Speaker Change: Oh, it's counties to be a lot.
Bob: Hey, Bob.
Bob: More optimized innovation for that.
Unknown Executive: Our exclusive maternity insurance products are being upgraded to version 5.0.
Bob: Our if slump in Mercury insurance product yeah.
Bob: Being upgraded to <unk> five point.
Unknown Executive: She knows about project which needs coverage for volume. and for the first time incorporating medication substance studies, providing expectant mothers with enhanced benefits.
Bob: Oh interesting.
Speaker Change: Poverty.
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Speaker Change: And for the first time operating on medication.
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Speaker Change: Providing exact.
Speaker Change: Expectant mothers with E S.
Unknown Executive: In late April, in partnership with issuers, we launched the ChenYinBao, the industry's first median medical insurance product with both health declaration waivers and a guaranteed review. So this product is available for chronic disease patients and EDVs with suboptimal health, allowing the reviewer up to age 105 and setting new standards for medical insurance coverage. FYP for long-term insurance reached 590 million, representing a 1.6% year-over-year decline with a 27.6% quarter-over-quarter increase. The year-over-year decrease was primarily attributable to the pressure on life insurance products, although we observed a significant growth in disability insurance and critical illness insurance. Disability insurance products contributed over $87 million in premiums. Within critical illness insurance, our digital health service, featuring a flexible health declaration, continued to gain new recommendations since its launch, with multiple upgrades and integrated iterations.
Speaker Change: In late April in partnership with <unk>, We lost a female yeah.
Speaker Change: And you should first Union medical insurance product.
Speaker Change: How healthy acceleration rebirth and guaranteed renewal is currently available for chronic.
Speaker Change: Chronic disease patient and ease of use with some optimal health, allowing them to renew up to age when he would've bi and setting new standards for medical insurance coverage.
Speaker Change: That's why people wanted ensuring information just walking journey and $90 million, representing a one 6% year over year decline with it.
Speaker Change: Seven 6% Carnival recovery rate the year over year decrease was.
Speaker Change: Primarily attributable to the pressure on Joaquin shirt product.
Speaker Change: Early theres, a significant growth in disability insurance and critical illness insurance disability insurance product contributing over 87 million premium within critical in ensuring our.
Speaker Change: You bet.
Speaker Change: Featuring a flexible a housekeeping a region continue to gauge their recognition.
Speaker Change: With multiple upgrades in Hickory iteration.
Unknown Executive: During this quarter, we also introduced an upgraded version of TAMBA Law, a specific insurance product for type 2 diabetes patients, as well as the industry's first family-funded long-term care insurance, furthering Waterdrop's innovation in long-term health insurance products.
Speaker Change: This quarter, we also introduced an upgraded burden.
Speaker Change: All of the different insurance products to treat type two diabetes.
Speaker Change: As well as the industry first if I may.
Speaker Change: I had a longtime Caribbean.
Speaker Change: Furthering would've gotten innovation in London and Shanghai.
Unknown Executive: The traditional online stock team maintains steady, corner-cutter growth in the workforce side, with productivity per capita achieving both year-on-year and especially in the spring. Shi Lanbao continues to refine its online last-miner model, independently contributing $110 million in premiums into the wine industry.
Speaker Change: And the traditional online shopping weekends and.
Javier: Javier well in the workforce side.
Speaker Change: With productivity per capita achieving both year over year and that's the question right.
Speaker Change: And I'll continue to refine it online.
Speaker Change: Aldo independently contributing 110 union in Caribbean.
Unknown Executive: to talk on who strengthened its technology collaboration with Waterdrop Insurance. AI service applications currently in beta testing, which can now handle over 100 daily service cases. Waterdrop continues to drive the development of large land grid model capability. As of the end of Q1, the company has filed 51 patents related to LLM technology. And applications continue to enhance operational efficiency across all business segments. The AI service quality co-pilot has improved quality management efficiency by leveraging LLM revision capability to achieve unique operation efficiency by 83%. The AI insurance expert has made significant progress across multiple product lines like the AI insurance expert in medical insurance is gradually scaling its capacity facilitating tuning in monthly premiums outbound in Europe.
Speaker Change: Yes.
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Speaker Change: Launching a series of teachings.
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Speaker Change: Yes.
Speaker Change: What are you all continue to drive.
Speaker Change: The development largely remodel stability.
Speaker Change: And that's the end of Q1, the company had solid 51 patents relating to Aero and technologies and our nation.
Speaker Change: Operational efficiency.
Speaker Change: Ooh business I mean.
Speaker Change: Every colleague Who'll pilot has equal Ali asked me.
Speaker Change: And then I.
Speaker Change: I love it he never aging and.
Speaker Change: And we're listening to the building.
Speaker Change: We need operation efficiency by 83%.
Speaker Change: I mentioned earlier have lead to significant progress across multiple product lines like the AI insurance expertise medical insurance is gradually gathering capacity.
Speaker Change: In June <unk>.
Speaker Change: <unk> premiums.
Speaker Change: I mean Europe.
Unknown Executive: Additionally, WECOM service extended this quarter with the significant launch of maternity insurance service for WECOM clients in March, achieving end-to-end policy underwriting and premium generation. In customer service, our AI-powered support system operated 24-7, resulting in 62% of users and clearance automatically. are in. In the same scenarios, it already handled 94% of service requests without human intervention.
Speaker Change: Additionally, we call it service extend it.
Speaker Change: With the significant loss of maternity insurance service, what we call <unk>.
Speaker Change: In March a shooting into in policy and Youre, writing and a premium generation.
Speaker Change: We survey our AI powered support system operated 20%, resulting fitbit users have to do there.
Speaker Change: Harris.
Speaker Change: In.
Speaker Change: In the thing Nemoral, it's already over 94%.
Speaker Change: Classic without.
Unknown Executive: Beyond medical insurance and customer service, we are actively expanding the AI insurance experts application to new scenarios for ongoing R&D.
Speaker Change: Mentioned yamana that would shrink.
Speaker Change: We are actively expanding that.
Speaker Change: You joined the FERC application euro through ongoing R&D efforts.
Unknown Executive: This concludes our business, insurance business.
Unknown Executive: Please rewind. Thank you, everybody. As of the end of March, one hundred. Around 475 million people cumulatively donated 68.8 billion yuan to about 3.47 million patients through our Waterdrop Medical Group Foundation.
Speaker Change: So one I would now have two of our form factor of Jacqui E. L F.
Speaker Change: Medical.
Speaker Change: And health care.
Speaker Change: Oh, Thank you run rate and that's the end of March.
Speaker Change: Right.
Speaker Change: I mean people may leave you to think of maybe 68 eight given that Q3 40.
Speaker Change: One 7 million patients through our workshop medical.
Unknown Executive: We focus on three keys. this quarter. First, we optimized our process design by introducing an online flash requirement. the campaign initiation.
Speaker Change: We focused on three key Texas.
Speaker Change: Corner.
Speaker Change: Uh huh.
Speaker Change: We optimized our workforce that's designed by introducing.
Speaker Change: Slash refinement.
Speaker Change: So can he initiation stage.
Unknown Executive: Wu, Anshu, Wu Xingchain, Naoming Hong, Lin Yun. Communicate the Plum Courtyard.
Speaker Change: Absolutely.
Speaker Change: We will clearly communicated to them communicate the problem or.
Unknown Executive: embarking on this impressive venture. So in this upper left corner of the image you see water and in the center water and you can see the one tank right there I was talking about. So this is Benchmark City. And in the middle, right over there, is Wei Ran's office. Carefully educating users about our social... as well as relevant laws and regulations.
Speaker Change: Orientation.
Speaker Change: Sure Neely.
Speaker Change: We have carefully educated users.
Speaker Change: How old are special supervision for Canada, as well as relevant a law and regulation works. That's a healthy correction in insurance application a big driver established and you've heard me say part.
Unknown Executive: Health Declaration in Insurance Application, this matter established an interrogative court. Additionally, Waterdrop continues to be We do stand in line for the verification deadline for three high-risk scenarios, housing, vehicle ownership, are integrating artificial verification. Traffic Management Bureau and the local government service platform covering 92% of the city nationwide, we significantly improved the efficiency and quality of risk verification. Regarding the most concerning issue of farm security, Waterdrop implemented an intelligence monitoring platform combining system surveillance and manual follow-up. For five high-risk scenarios, the system can generate optimal risk control solutions based on every model. During the ideal frequency and timing for human intervention, the technological approach has effectively reduced the risk of fraud, misappropriation, and ensured the safety of donated funds.
Speaker Change: And it shouldn't be a what are you hoping to me has its risk control verifications fidelity.
Speaker Change: It's not a super saturating, who met all their lead humor, and why did you get it wrong.
Speaker Change: Hi, cereal housing vehicle ownership and so on.
Speaker Change: Integrating all physical verification channel it sounds like.
Speaker Change: From a traffic management Bureau, and the local governments football February 19, two per Se now did he nationwide, we significantly improved the efficiency and quality risks clarification regarding the most concern issue on security is that the economy is headed and how it is.
Speaker Change: Monitoring.
Speaker Change: Money is it fits them all.
Speaker Change: So Vivian and many will pull off for fiber hybrid neural nets itself can't generate optimal optimal risk control solution.
Speaker Change: Based on our reserve model.
Speaker Change: Did you find that ideal frequency in timing.
Speaker Change: We envision the technology.
Speaker Change: Knowledgeable approach.
Speaker Change: It effectively reduces wasteful raw misappropriation and ensuring the safety of <unk>.
Speaker Change: That would be fine.
Unknown Executive: In the mid-quarter, Waterdrop's healthcare-related business maintained steady development. The digital clinical trial solution business partnered with 285 pharmaceuticals and bureaus, securing 77 new projects. During the quarter, 822 patients have been enrolled, and the cumulative number of enrolled patients is long.
Speaker Change: In the big partner, what does that health care related business, you can see the divisional clinical type solutions.
Speaker Change: With five five.
Speaker Change: Five boss beautiful euro maturity of 77.
Speaker Change: 800 and plant utilization.
Speaker Change: And accumulative never healthy rotation launch.
Unknown Executive: were awarded in 2002, I'm so proud, I wanted It has 147 academs, 11,206 foreigners, Revenue from digital clinical trials has grown by 11.5% year-over-year. The platform continues to sustain the oncology field, expanding its collaborative projects with others in thoracic, graft, gastrointestinal tumors, thereby strengthening its industry competitiveness. Additionally, leveraging its extensive patient database and digital recruitment strategies, a chronic and a rare disease, earning well-deserved recognition. Currently, in this quarter, the platform has actively extended a digital-only channel marketing initiative. The objective is to upgrade our modern human strengths, so Waterdrop partnered with a medical device company to jointly develop an intelligent service system for diabetes.
Speaker Change: 1200 and Jeep.
Speaker Change: Our revenue from digital clinical tied to real by 11, 5% year over year performance.
Speaker Change: See the ecology, you examine is collaborating with perfect it's harder.
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Speaker Change: That's strange happened all tumors, thereby strengthen it even victory a comparison at Edison.
Speaker Change: Indeed, averaging eight homes that patients that have it and do the whole would permit in the fall.
Speaker Change: She's a multiple parts, so E bike and a rare diseases, Ernie well well right.
Speaker Change: In Asia.
Speaker Change: Finally in this quarter is as follows.
Speaker Change: We added a.
Speaker Change: Our digital Omnichannel marketing indicate it loves it he actually got modestly bad, but what are you up or it.
Speaker Change: With.
Speaker Change: Our medical device, how many to jointly develop and see how long do you survey them with diabetes.
Unknown Executive: This product is expected to be launched in the second quarter, collaborating with our partners to enhance the efficiency of patient health management.
Speaker Change: These products is that going to be a loss.
Speaker Change: We're collaborating with our partners to enhance the efficiency of patrons Hoffman.
Xiaoying Xu: Now I will hand over to Xiaoying, our Head of Financial Department, to discuss our financial performance in this project. Thank you. Hello everyone and right now we'll go through our financial highlights for the first quarter of 2015.
Speaker Change: Right now Oh.
Speaker Change: I hand over to shorten our head of finance departments to get back our financial performance and Goodbye.
Speaker Change: Thank you gentlemen.
Speaker Change: Hello, everyone every now I'll walk you through our financial highlights for the first quarter.
Xiaoying Xu: Before I go into details, please be reminded that all members told you here will be on mute and free to refer to our earnings release for detailed information on our financial performance on both the year-over-year and quarter-on-quarter basis respectively. In the first quarter of 2025, All Business Second Annual Waterdrop is reversed for related proponents. The Waterdrop is accommodated through a revenue of $754,000, representing a 7% year-over-year import. By different segments, insurance-related income contributed approximately $658 million in revenue, up by 8.4% over the year. 7.1 million, earning people year-over-year. Digital Clinical Trial Solutions System generated about $22 million in revenue, growing by 11.5% year-over-year.
Speaker Change: Before I go into detail.
Speaker Change: Please be reminded that all numbers quoted here will be RMB increased refer to our earnings release for detailed information on our financial performance.
Speaker Change: Year over year and part of them.
Speaker Change: This accurately.
Speaker Change: Yeah.
Speaker Change: Hmm.
Speaker Change: Yeah.
Speaker Change: No first of all one way obviously the second angle what are you off to her first saw it.
Speaker Change: But how many total revenues.
Speaker Change: Good for you.
Speaker Change: Yeah.
Speaker Change: Uh huh.
Speaker Change: By different.
Speaker Change: Insurance related.
Speaker Change: Forget it.
Speaker Change: Nearly 658 unit revenue up by eight 4%.
Speaker Change: For the.
Speaker Change: Hi.
Speaker Change: Second one again.
Speaker Change: All year over year.
Speaker Change: Digital clinical tie solution system, and we're thinking about.
Speaker Change: Yes, ebrahim well when he by 11, 5% year over year in terms of the operation the company focus on enhancing efficiency and quality.
Xiaoying Xu: In terms of operations, the company focuses on enhancing efficiency and quality. In first quarter, total operating costs and expenses amounted to... Union, representing a year-on-year... about three percent. The growth rate was lower than their revenue growth rate. Among this, operating costs for this product reached a $374 million, an increase of 13 percent on YYP. This was primarily used due to about 37.7 million rates. and the services during this period, along with notice of 2.8 million South and Barking expenses amounting to $172 million, different by approximately $546 million worldwide. So.
Speaker Change: First quarter total operating costs and extend.
Speaker Change: He says it's amounting to approximately be considering.
Speaker Change: 8 million, representing a year over year increase about 3% in both states with lower isn't there reference luxury.
Speaker Change: This operating cost whether it's with.
Speaker Change: With partners of 374 does mean increase up 13% Y O y basis.
Speaker Change: Oh it was.
Speaker Change: Primarily due to about 37.7 you raised.
Speaker Change: We're through service fees during this theory, along with more of a $2 8 million.
Speaker Change: Hum.
Speaker Change: Did you have a clean supply solution.
Speaker Change: Stop in marketing expenses amounted to 100, and some changes in person by proxy.
Speaker Change: Thank you.
Xiaoying Xu: Reduction will finally result in offshore thermocane therapy and a related operational Through the progressive application of AI capabilities, internal operational efficiency continues to improve with a difference of 5.9 million and 5.6 million respectively in this area.
Speaker Change: M <unk>.
Speaker Change: Reduction was finally with boxes and also the marketing service fee and it related operational Paul.
Speaker Change: That's driven the progressive hip application of the eye because the village.
Speaker Change: Internal operational efficiency.
Speaker Change: It's a different buyer.
Speaker Change: I mean in $5 6 million, respectively, and yes, it will be really in fact investments in customer acquisition.
Xiaoying Xu: moving to the impact assessment. and Summer Acquisition led to a zero year growth. General and Administrative expenses were $74.9 million, down 15.8% year-over-year. Finally, attributable to improvements in the company's management, efficiency, and their reductions. Professional Services are being expensive for approximately $56.2 million remaining staples. focus more on getting. In the first quarter, the company achieved a net profit attribute to all new shareholders of $108 million, representing a significant year-over-year growth of 34.2%. As of the end of Q1 2025, the company maintains ample cash reserves of about $3.5 billion. 54, Delim, with an operating capital of $146.
Speaker Change: Okay.
Speaker Change: I E N E trade.
Speaker Change: Marketing expenses for third party channels Andrew.
Speaker Change: Andrew This I need back stopping my marketing expenses for the few rates decreased by 5.4 convinced you here.
Speaker Change: General and administrative expenses were 70 429.
Speaker Change: I mean down 15, 8% year over year friendly beautiful two people names.
Speaker Change: These medicines efficiency and a reduction in.
Speaker Change: Professional services and R&D expenses were approximately $56 2 million for many people year over year.
Speaker Change: However, the structure of R&D cost to have further adjusted.
Speaker Change: You focus more on getting your facility.
Speaker Change: In the first quarter the company achieved net postpaid attribute to the all the new shareholders.
Speaker Change: 108 unions representing.
Speaker Change: Year over year from 34 two.
Speaker Change: 2% as of the end of Q1 for 25, the company retains ample cash reserves of about $3 50, 54 meetings with operating cash flow continues to be positive.
Xiaoying Xu: The cost generated net operating cash inflow of $94.5 million financial support for future business growth.
Speaker Change: It was this quarter.
Speaker Change: The court has generated net operating cash inflow.
Speaker Change: More important findings, providing sufficient financial support for future system right.
Xiaoying Xu: In summary, the strong first quarter performance demonstrated Waterdrop's sustainable and stable traffic growth, with notable progress across multiple business segments. Moving forward, we will adhere to the business path of driving growth and improving efficiency through technological improvement, and continue to do the first steady performance.
Speaker Change: In summary, the strong performer on that demonstrate what a what is a sustainable and stable chopping block.
Speaker Change: This notable progress optimally would be impacted.
Speaker Change: Moving forward it will be a future path of driving growth and efficiencies booked an upswing on it and continue to be the first study.
Unknown Executive: and a little bit more, but that will conclude today's
Speaker Change: And they didn't they didn't live with that we will conclude today's conference call. We do thank you for joining have a good time.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Thanks, Matt.
Speaker Change: Thanks, Matt.
Speaker Change: Yes.
Speaker Change: Yes.