Q4 2025 Waterdrop Inc Earnings Call

Speaker #2: This is for provision of U.S. security. We seem to have trouble. Please wait on the line while we reconnect. Good morning, everyone. This is Tracy Lee from Waterdrop Investor Relations.

Operator: We seem to have trouble. Please wait on the line while we reconnect.

Tracy Li: Good morning, everyone. This is Tracy Li from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop Q4 and fiscal year 2025 Earnings Conference Call. All participants are in listen-only mode in our English line. As a reminder, today's conference call is being recorded. Please note that discussion today will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks 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 filings with the SEC. The company does not undertake any obligation to update any forward-looking statements except as required in applicable law. Also, this call includes discussion of certain NON-GAAP measures.

Tracy Li: Good morning, everyone. This is Tracy Li from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop Q4 and fiscal year 2025 Earnings Conference Call. All participants are in listen-only mode in our English line. As a reminder, today's conference call is being recorded. Please note that discussion today will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks 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 filings with the SEC. The company does not undertake any obligation to update any forward-looking statements except as required in applicable law. Also, this call includes discussion of certain NON-GAAP measures.

Speaker #2: It's my pleasure to welcome everyone to the Waterdrop fourth quarter and fiscal year 2025 earnings conference call. All participants are in listen-only mode in our English line.

Speaker #2: As a reminder, today's conference call is being recorded. Please note that today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995.

Speaker #2: Forward-looking statements are subject to risks 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 through the ICC.

Speaker #2: The company does not undertake any obligation to update any forward-looking statement, except as required by applicable law. Also, this call includes discussion of certain mandated matters, which refer to our earnings bill list.

Peng Shen: Please refer to our earnings release for reconciliation between NON-GAAP and GAAP. Joining us today on the call are Mr. Peng Shen, our Founder, Chairman and CEO, Mr. Wei Ran, Director and GM of Insurance Business, Mrs. Xiaoying Xu, Head of Finance, and Mrs. Jieru Li, Board Secretary. We'll be happy to take some of the questions in the manager line at the end of the conference call. Now let me invite our CEO, Peng Shen, to start. Dear investors and analysts, thank you for joining Waterdrop Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. Looking back at 2025, we executed firmly on our AI-plus insurance strategy, delivering tangible progress in both AI application and the business growth. Our financial performance were robust. We saw significant top line and bottom line expansion, further solidified our core fundamentals.

Tracy Li: Please refer to our earnings release for reconciliation between NON-GAAP and GAAP. Joining us today on the call are Mr. Peng Shen, our Founder, Chairman and CEO, Mr. Wei Ran, Director and GM of Insurance Business, Mrs. Xiaoying Xu, Head of Finance, and Mrs. Jieru Li, Board Secretary. We'll be happy to take some of the questions in the manager line at the end of the conference call. Now let me invite our CEO, Peng Shen, to start.

Speaker #2: Forward consideration between mandate and gap. Joining us today on the call are Mr. Chenpeng, our founder, chairman, and CEO; Mr. Renwei, director and GM of Insurance Business; Mrs. Xiaoying, head of finance department; and Mrs. Li Yiru, board secretary.

Speaker #2: We'll be happy to take some of the questions in the mandatory line at the end of the conference call. Now, let's invite our CEO, Peng Shen, to start.

Peng Shen: Dear investors and analysts, thank you for joining Waterdrop Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. Looking back at 2025, we executed firmly on our AI-plus insurance strategy, delivering tangible progress in both AI application and the business growth. Our financial performance were robust. We saw significant top line and bottom line expansion, further solidified our core fundamentals.

Speaker #2: Dear investors and analysts, thank you for joining the Waterdrop Fourth Quarter and fiscal year 2025 earnings conference call. Looking back at 2025, we executed firmly on our AI-plus insurance strategy, delivering tangible progress in both AI application and business growth.

Speaker #2: Our financial performance was robust. We saw significant top-line and bottom-line extensions, further solidifying our core fundamentals. For the fiscal year 2025, our revenue reached $3.98 billion, up 43.5%, with our net profit attributable to ordinary shareholders reaching $570 million, registering a year-on-year growth of 54.8%.

Peng Shen: For the fiscal year 2025, our revenue reached CNY 3.98 billion, up 43.5%, with our net profit attributable to ordinary shareholders reached CNY 570 million, registering a year-on-year growth of 54.8%. Notably, we met our guidance to the market and have now delivered GAAP profitability for 16 consecutive quarters. Our InsurTech segment was outstanding, with revenue surging 51.3% and an operating margin of roughly 18%. Furthermore, our LLM integration significantly added the value of our medical crowdfunding platform. Our platform has responded to 3.68 million patients this year, and our digital clinical trial solutions enrolled over 4,000 patients this year. Reflecting the strong performance in H2 2025, our board approved our fifth cash dividend of 3 cents per ADS, totaling $10.8 million.

Tracy Li: For the fiscal year 2025, our revenue reached CNY 3.98 billion, up 43.5%, with our net profit attributable to ordinary shareholders reached CNY 570 million, registering a year-on-year growth of 54.8%. Notably, we met our guidance to the market and have now delivered GAAP profitability for 16 consecutive quarters. Our InsurTech segment was outstanding, with revenue surging 51.3% and an operating margin of roughly 18%. Furthermore, our LLM integration significantly added the value of our medical crowdfunding platform. Our platform has responded to 3.68 million patients this year, and our digital clinical trial solutions enrolled over 4,000 patients this year. Reflecting the strong performance in H2 2025, our board approved our fifth cash dividend of 3 cents per ADS, totaling $10.8 million.

Speaker #2: Notably, we met our guidance to the market and have now delivered GAAP profitability for 16 consecutive quarters. Our interest rate segment was S&L, with revenue surging 51.3% and an operating margin of roughly 18%.

Speaker #2: Furthermore, our LLM integration significantly added a lift. The value of our medical performance platform—our platform has great spots for 3.68 million patients since its launch, and our digital clinical trial solutions enrolled over 4,000 patients this year.

Speaker #2: Reflecting the strong performance in the second half of 2025, our board approved our fifth cash dividend of $0.03 per ADS, totaling $10.8 million. This will be paid in late April to early May to shareholders recorded as of April 24, 2026.

Tracy Li: This will be paid in late April to early May to shareholders of record as of 24 April 2026, US Eastern Time. Meanwhile, our share repurchase plan remains on track, with 60.7 million ADSs repurchased for about $118 million for the end of February 2026. On the technology front, we are accelerating our shift to become an AI-native company. As of year-end 2025, we filed 72 LLM-related patent applications, including nine international ones. Throughout the year, we deployed a multi-modal AI agent spanning text, voice, and virtual interactions across all core workflows, from acquisition and conversation, sales, productivity, and customer service to quality control and R&D.

Peng Shen: This will be paid in late April to early May to shareholders of record as of 24 April 2026, US Eastern Time. Meanwhile, our share repurchase plan remains on track, with 60.7 million ADSs repurchased for about $118 million for the end of February 2026. On the technology front, we are accelerating our shift to become an AI-native company. As of year-end 2025, we filed 72 LLM-related patent applications, including nine international ones. Throughout the year, we deployed a multi-modal AI agent spanning text, voice, and virtual interactions across all core workflows, from acquisition and conversation, sales, productivity, and customer service to quality control and R&D.

Speaker #2: US Eastern time. Meanwhile, our share repurchase agreement is on track, with 60.7 million ADS repurchased for about $118 million by the end of February 2026.

Speaker #2: In our technology plan, we are accelerating our shift to become an AI-native company. As of the end of year-end 2025, we have filed 72 LLM-related patent applications.

Speaker #2: Including nine international ones. Throughout the year, we deployed the motion model AI agent, spending task taxes, voice, and virtual interactions across all core workflows.

Speaker #2: From acquisition and conversation, sales, productivity, and customer service to quality control and R&D. The average stage is now production-ready, delivering notable operational gains. This capability is unified under the WaterDrop C, so AI—our company-wide platform for configuring scenario-specific agents—is now also open to industry partners.

Tracy Li: Every stage is now production-ready, delivering measurable operating gains. This capability is unified under what is called C.AI, our company-wide platform for the configuring scenario-specific agents, now also open to industry partners. Beyond internal use, we are pioneering open collaboration from chapter zero, or what is called Guardian AI Copilot, which is called CloudSquare. Built on a distributed architecture design, our CloudSquare enables different AI agents to autonomously communicate and collaborate. Early demos have already validated its core workflow, seamlessly multi-round dialogue and automatically topic closure between AI agents. In terms of the ESG, we partnered with 119 organizations to launch over 15,500 projects, earning global recognition for our poverty reduction efforts and upgrading our ESG rating to A+.

Peng Shen: Every stage is now production-ready, delivering measurable operating gains. This capability is unified under what is called C.AI, our company-wide platform for the configuring scenario-specific agents, now also open to industry partners. Beyond internal use, we are pioneering open collaboration from chapter zero, or what is called Guardian AI Copilot, which is called CloudSquare. Built on a distributed architecture design, our CloudSquare enables different AI agents to autonomously communicate and collaborate. Early demos have already validated its core workflow, seamlessly multi-round dialogue and automatically topic closure between AI agents. In terms of the ESG, we partnered with 119 organizations to launch over 15,500 projects, earning global recognition for our poverty reduction efforts and upgrading our ESG rating to A+.

Speaker #2: Beyond engineering use, we are pioneering open collaboration infrastructure via our WaterDrop Guardian AI Copilot, which is called Cloudflare. Built on a distributed architecture design, our Cloudflare enables different AI agents to autonomously communicate and collaborate.

Speaker #2: Early demos have already validated its core workflow, seamlessly enabling multi-round dialogue and automatic task closure between AI agents. In terms of ESG, we partnered with 119 organizations to launch over 15,000 and 500 products, earning global recognition for our privacy reduction efforts and upgrading our ESG rating to A-plus.

Speaker #2: As we enter our 10th anniversary in 2026, our goal is to move beyond just using AI tools to becoming truly AI-native companies. We aim to digitally reconstruct our entire value chain, embedding AI as a structural competitive advantage.

Wei Ran: As we enter our tenth anniversary in 2026, our goal is to move beyond just using AI tools to becoming truly AI-native company. We aim to digitally reconstruct our entire value chain, embedding AI as a structural competitive advantage. We expect it to sustain the momentum this year with moderately higher investment in marketing and AI, targeting double-digit growth in both revenue and profit. Now I will pass to Wei Ran to introduce the development of the insurance business. Thanks, Peng Shen. In Q4, our insurance business continued its strong momentum. Insurance-related income surged 125% year-over-year to RMB 1.31 billion, while operating profit grew 42% year-over-year to RMB 160 million. On the traffic side, we have sharpened our real-time user identification.

Peng Shen: As we enter our tenth anniversary in 2026, our goal is to move beyond just using AI tools to becoming truly AI-native company. We aim to digitally reconstruct our entire value chain, embedding AI as a structural competitive advantage. We expect it to sustain the momentum this year with moderately higher investment in marketing and AI, targeting double-digit growth in both revenue and profit. Now I will pass to Wei Ran to introduce the development of the insurance business.

Speaker #2: We expect to sustain the momentum this year with moderately higher investment in marketing and AI, targeting double-digit growth in both revenue and profit. Now I'll pass to Renwei to introduce the development of the insurance business.

Wei Ran: Thanks, Peng Shen. In Q4, our insurance business continued its strong momentum. Insurance-related income surged 125% year-over-year to RMB 1.31 billion, while operating profit grew 42% year-over-year to RMB 160 million. On the traffic side, we have sharpened our real-time user identification.

Speaker #2: Thanks, Chenpeng. In the fourth quarter, our insurance business continued its strong momentum. Insurance-related income surged 125% year-on-year to $1.31 billion, while operating profit grew 42% year-on-year to $150 million.

Speaker #2: On the traffic side, we have sharpened our real-time user identification. Leveraging our self-deployed 50-millisecond data models, we can now capture potential user attributes with millisecond precision in high-concurrency traffic.

Wei Ran: Leveraging our self-deployed 50-millisecond data models, we can now capture potential user attributes with millisecond precision in high-concurrency traffic. This allows for hourly health updates and rapid A/B testing, which has significantly improved the accuracy of our high-quality traffic filtering and laid a solid foundation for our FYT growth. Regarding product supply, our market first having launched version 2.0 this quarter. The new zero deductible feature now covers both projected long-term medical costs and routine medical expenses. Additionally, our pre-existing condition product gained strong traction with FYT at nearly 70%, while our disability insurance contributed about CNY 100 million FYT, validating our long-term strategy. Most importantly, AI is now embedded in every node of our service chain.

Tracy Li: Leveraging our self-deployed 50-millisecond data models, we can now capture potential user attributes with millisecond precision in high-concurrency traffic. This allows for hourly health updates and rapid A/B testing, which has significantly improved the accuracy of our high-quality traffic filtering and laid a solid foundation for our FYT growth. Regarding product supply, our market first having launched version 2.0 this quarter. The new zero deductible feature now covers both projected long-term medical costs and routine medical expenses. Additionally, our pre-existing condition product gained strong traction with FYT at nearly 70%, while our disability insurance contributed about CNY 100 million FYT, validating our long-term strategy. Most importantly, AI is now embedded in every node of our service chain.

Speaker #2: This allows for hourly hot updates and rapid A/B testing. We have significantly improved the accuracy of our high-quality traffic filtering and later established a solid foundation for our FY2 growth.

Speaker #2: Regarding product supply, our market-first campaign launched version 2.0 this quarter. The new zero-deductible feature now covers both prohibited long-term medical costs and routine medical expenses.

Speaker #2: Additionally, our pre-existing condition product gained strong traction, with FY2 app nearly 70%. While feasibility insurance contributed about $100 million in FY2, validating our long-term strategy.

Speaker #2: And most importantly, AI is now embedded in every node of our search chain. On the user side, our AI Pro insurance agent on the mini program drove a 33% sequential increase in premiums, while our AI medical insurance experts generated over $15 million in FY2 at 145% quarter over quarter.

Wei Ran: On the user side, our AI pro insurance agent on the mini program drove 33% sequential increase in premium, while our AI Medical Insurance Expert generated over RMB 50 million in FYT at 145% quarter over quarter. We have also expanded this AI capability to standard health products, WeCom generating incremental more premiums of over RMB 1 million. For human agent empowerment, our Life Planner Copilot has cumulatively assisted in over 370,000 inquiries as of this quarter end. Our Waterdrop C.AI AI platform is now fully operational, and having completed the Q4 rollout of the core module like workflow agent, batch testing, and proactive task triggers.

Tracy Li: On the user side, our AI pro insurance agent on the mini program drove 33% sequential increase in premium, while our AI Medical Insurance Expert generated over RMB 50 million in FYT at 145% quarter over quarter. We have also expanded this AI capability to standard health products, WeCom generating incremental more premiums of over RMB 1 million. For human agent empowerment, our Life Planner Copilot has cumulatively assisted in over 370,000 inquiries as of this quarter end. Our Waterdrop C.AI AI platform is now fully operational, and having completed the Q4 rollout of the core module like workflow agent, batch testing, and proactive task triggers.

Speaker #2: We have also expanded this AI capability to standard health products, which are generating incremental monthly premiums of over $1 million. For human agent empowerment, our Life Planner Copilot has cumulatively assisted in over 370,000 inquiries as of this quarter end.

Speaker #2: Our WaterDrop C AI platform is now formally operational, and having completed the fourth quarter rollout of the core module—like workflow agents, batch testing, and proactive task triggers—this infrastructure powers our shelf AI planner deployed across both the WeChat official accounts and the mini programs to handle product recommendations, business facilitation, and user agent matching. We have even opened the platform to our partners, like insurers, to uplift industry-wide efficiency.

Wei Ran: This infrastructure powers our self-help AI planner deployed across both the WeChat official accounts and mini programs to handle the product recommendations, business facilitation, and user-agent matching. We have even opened the platform to our partners like insurers to uplift the industry-wide efficiency. In after-sales, our AI Customer Service Agent handled over 1.4 million inquiries per month. The AI-powered quality control copilot drove per-ticket efficiency to 2.75 times that of the manual-only baseline. This concludes the insurance business update for Q4. Now I will pass to Zetao Zhu to introduce the progress of our medical crowdfunding and healthcare businesses.

Zetao Zhu: This infrastructure powers our self-help AI planner deployed across both the WeChat official accounts and mini programs to handle the product recommendations, business facilitation, and user-agent matching. We have even opened the platform to our partners like insurers to uplift the industry-wide efficiency. In after-sales, our AI Customer Service Agent handled over 1.4 million inquiries per month. The AI-powered quality control copilot drove per-ticket efficiency to 2.75 times that of the manual-only baseline. This concludes the insurance business update for Q4. Now I will pass to Zetao Zhu to introduce the progress of our medical crowdfunding and healthcare businesses. Thank you, Wei Ran.

Speaker #2: In after-sales, our AI customer service agent handled over the month. AI-powered quality control copilot drove per capita efficiency to 2.75 times that of the manual baseline.

Speaker #2: And this concludes the insurance business update for the fourth quarter. Now I will pass to Photo Sector to introduce the progress of our medical performance and the healthcare business.

Zetao Zhu: Thank you, Wei Ran. As of the end of 2025, approximately 490 million people have cumulatively donated a total of CNY 72.3 billion to 3.68 million patients through WeChat's medical crowdfunding platform. This quarter, while maintaining robust platform governance and user experience, we strengthened risk control in two key areas. To protect our users' privacy, we have fully upgraded our system with large language models capable of identifying sensitive data and applying dynamic data masking in real time. Critical information frequently seen in their complaints, like user ID numbers, bank accounts, and the medical record ID. We have moved from manual redaction to automatic detection and masking. This guarantees end-to-end security for user data across our entire platform, fundamentally preventing any risk of information theft. Secondly, our content authenticity.

Speaker #2: Thank you, Renwei. As of the end of 2025, approximately 490 million people have cumulatively donated a total of ¥72.3 billion to 3.68 million patients through the Waterdrop medical crowdfunding platform.

Tracy Li: As of the end of 2025, approximately 490 million people have cumulatively donated a total of CNY 72.3 billion to 3.68 million patients through WeChat's medical crowdfunding platform. This quarter, while maintaining robust platform governance and user experience, we strengthened risk control in two key areas. To protect our users' privacy, we have fully upgraded our system with large language models capable of identifying sensitive data and applying dynamic data masking in real time. Critical information frequently seen in their complaints, like user ID numbers, bank accounts, and the medical record ID. We have moved from manual redaction to automatic detection and masking. This guarantees end-to-end security for user data across our entire platform, fundamentally preventing any risk of information theft. Secondly, our content authenticity.

Speaker #2: In this quarter, while maintaining robust platform governance and user experience, with strengthening risk control in two key areas to protect our user privacy, we have fully upgraded our system with large library models capable of identifying sensitive data and applying dynamic data masking in real time.

Speaker #2: For critical information frequently seen in their campaigns, like user ID numbers, bank accounts, and medical record IDs, we have moved from manual redaction to automatic detection and masking.

Speaker #2: And this guarantees end-to-end security for users' data across our entire platform, fundamentally preventing any risk of information theft. Secondly, regarding our campaign authenticity, we deployed a new model combining a medical knowledge graph with credential validation.

Tracy Li: We deployed a new model combining a medical knowledge graph with a credential validation. This system can cross-reference the clinical logic to precisely identify the fabricated receipts, ensuring every donation can reach those patients who are truly in need. On the user service front, we launched a standardized inquiry toolkit to bring full clarity to our service scope of fee structures and campaign deadlines. This initiative reinforce our commitment to transparency and ensure our users are fully informed. Moving to the healthcare business, our E-Find platform sustained high-quality growth, partnered with 224 pharmaceutical companies and enrolled in a record of 14,555 cumulative patients. Initiated 131 new programs. Once again, we set a new quarterly enrollment record. This quarter, we achieved a major milestone.

Zetao Zhu: We deployed a new model combining a medical knowledge graph with a credential validation. This system can cross-reference the clinical logic to precisely identify the fabricated receipts, ensuring every donation can reach those patients who are truly in need. On the user service front, we launched a standardized inquiry toolkit to bring full clarity to our service scope of fee structures and campaign deadlines. This initiative reinforce our commitment to transparency and ensure our users are fully informed. Moving to the healthcare business, our E-Find platform sustained high-quality growth, partnered with 224 pharmaceutical companies and enrolled in a record of 14,555 cumulative patients. Initiated 131 new programs. Once again, we set a new quarterly enrollment record. This quarter, we achieved a major milestone.

Speaker #2: This system can cross-reference the clinical logic to precisely identify the fabricated receipts, ensuring every donation can reach those patients who are truly in need.

Speaker #2: On the user service front, we launched a standardized inquiry toolkit to bring full clarity to our service scope, fee structures, and campaign deadlines.

Speaker #2: This initiative reinforced our commitment to transparency and ensures our users are fully informed. And moving to the healthcare business, our e-fund platform sustained high-quality growth, partnered with 224 pharmaceutical companies and CROs.

Speaker #2: And enrolled in a record of 14,000 and 55 cumulative patients. Initiatives 131 new programs once again set up a setting a new cognitive enrollment record.

Speaker #2: This quarter, we achieved a major milestone with WaterDrop's proprietary drug patient matching technology, the first of its kind in China, which has been officially granted a national invention patent.

Zetao Zhu: That was our proprietary drug patient matching technology, the first of its kind in China, was officially granted a national invention patent. By combining deep neural networks with natural language processing, our technology achieves end-to-end precision matching between patients and clinical trials. They use a rule-based filtering for structured data like age and lab results while analyzing unstructured medical records against that trial criteria to uncover the hidden match. The dual engine approach shrinks the weeks of the manual screening workloads down to minutes, strongly accelerating the clinical trial process. Building on this, we significantly expand our outreach while continuing to grow our patient base in complex and rare cancer cases.

Tracy Li: That was our proprietary drug patient matching technology, the first of its kind in China, was officially granted a national invention patent. By combining deep neural networks with natural language processing, our technology achieves end-to-end precision matching between patients and clinical trials. They use a rule-based filtering for structured data like age and lab results while analyzing unstructured medical records against that trial criteria to uncover the hidden match. The dual engine approach shrinks the weeks of the manual screening workloads down to minutes, strongly accelerating the clinical trial process. Building on this, we significantly expand our outreach while continuing to grow our patient base in complex and rare cancer cases.

Speaker #2: By combining deep neural networks with mature language processing, our technology achieved end-to-end perception matching between patients and clinical trials. It used a rule-based filtering for structured data like age and lab results, while analyzing unstructured medical records against that trial criteria to uncover the hidden match.

Speaker #2: The dual engine approach can strongly shrink the weeks of the manually screening workload down to minutes, strongly accelerating the clinical trial process. And beyond this, we significantly expand our reach out while continuing to grow our patient base in complex and rare cancer cases.

Speaker #2: Our digital clinical trial revenue related to chronic disease surgery grew 30% this quarter compared to the previous three-quarter average. This strengthens the ability of multiple diseases and departments, and has made a solid foundation for our sustainable long-term growth.

Zetao Zhu: Our revenue, digital clinical trial revenue related to chronic disease surged 30% this quarter compared to the previous three-quarter average. This expansion stability across multiple disease and departments and have laid a solid foundation for our sustainable long-term growth. Now I will pass to Xiaoying Xu, our Head of Finance, to discuss our financial performance in this quarter.

Xiaoying Xu: Our revenue, digital clinical trial revenue related to chronic disease surged 30% this quarter compared to the previous three-quarter average. This expansion stability across multiple disease and departments and have laid a solid foundation for our sustainable long-term growth. Now I will pass to Xiaoying Xu, our Head of Finance, to discuss our financial performance in this quarter. Thank you. Hello, everyone. I will now walk you through our financial highlights for the Q4 and the fiscal year 2025. Before I go into details, please be reminded that all numbers quoted here will be RMB. Please refer to our earnings release for detailed information on our financial performance on both the year-on-year and quarter-over-quarter basis, respectively.

Speaker #2: And now I will pass to our Head of Finance Department to discuss our financial performance in this quarter. Thanks, Gerald. Hello, everyone. I will now walk you through our financial highlights for the fourth quarter and the fiscal year 2025.

Xiaoying Xu: Thank you. Hello, everyone. I will now walk you through our financial highlights for the Q4 and the fiscal year 2025. Before I go into details, please be reminded that all numbers quoted here will be RMB. Please refer to our earnings release for detailed information on our financial performance on both the year-on-year and quarter-over-quarter basis, respectively. In Q4, our performance growth accelerated significantly, with quarterly revenue more than doubling year-on-year to RMB 1.41 billion at 105.5%. For the full year 2025, revenue reached RMB 3.98 billion at 43.5% year-on-year, concluding the year on a strong note. By segment, the insurance segment remained a stable cornerstone, with full year insurance-related income reaching approximately RMB 3.58 billion, at 51.3% year-on-year. The other segments accounted for about 10.1% of the total revenue, with medical profiling services at RMB 260 million, and with digital clinical trial services income at RMB 118 million.

Speaker #2: Before I go into details, please be reminded that all members quoted here will be R&D. And please refer to our earnings release for detailed information on our financial performance.

Speaker #2: And both the year-on-year and quarter-over-quarter basis, respectively. In the fourth quarter, our performance growth accelerated significantly, with quarterly revenue more than doubling year-on-year to $1.41 billion, at 105.5%.

Tracy Li: In Q4, our performance growth accelerated significantly, with quarterly revenue more than doubling year-on-year to RMB 1.41 billion at 105.5%. For the full year 2025, revenue reached RMB 3.98 billion at 43.5% year-on-year, concluding the year on a strong note. By segment, the insurance segment remained a stable cornerstone, with full year insurance-related income reaching approximately RMB 3.58 billion, at 51.3% year-on-year. The other segments accounted for about 10.1% of the total revenue, with medical profiling services at RMB 260 million, and with digital clinical trial services income at RMB 118 million.

Speaker #2: For the full year 2025, revenue reached $3.98 billion, up 43.5% year-on-year, concluding the year on a strong note. By the second, the insurance business remained stable and constant, with full-year insurance-related income reaching approximately $3.58 billion, up 51.3% year-on-year.

Speaker #2: The other segments of credit were about 10.1% of the total revenue, with medical profounding services at $260 million and the digital clinical trial surgery income at $118 million.

Speaker #2: Operating costs for the quarter reached 680 million. That's 109.2% year-on-year, driven by a 320 million increase in cost in the referral and service fees, and a 26.8 million rise in S&S costs.

Tracy Li: Operating costs for the quarter reached RMB 680 million, 109.2% year-on-year, driven by a RMB 320 million increase in costs under referral and service fees, and a RMB 26.8 million rise in SMS costs. Driven by rapid business expansion, operating costs and expenses in Q4 rose to RMB 1.33 billion, 109.4% year-on-year. For full year, operating costs and expenses increased 39.1% for 2024, below the pace of revenue growth. Sales and marketing expenses was roughly RMB 510 million, 178.4% year-on-year, with significant improvement in customer acquisition efficiency. The company proactively scaled up investments, resulting in a roughly RMB 280 million year-on-year increase in marketing expenses for third-party traffic channels.

Xiaoying Xu: Operating costs for the quarter reached RMB 680 million, 109.2% year-on-year, driven by a RMB 320 million increase in costs under referral and service fees, and a RMB 26.8 million rise in SMS costs. Driven by rapid business expansion, operating costs and expenses in Q4 rose to RMB 1.33 billion, 109.4% year-on-year. For full year, operating costs and expenses increased 39.1% for 2024, below the pace of revenue growth. Sales and marketing expenses was roughly RMB 510 million, 178.4% year-on-year, with significant improvement in customer acquisition efficiency. The company proactively scaled up investments, resulting in a roughly RMB 280 million year-on-year increase in marketing expenses for third-party traffic channels.

Speaker #2: Driven by rapid business expansion, operating costs and expenses in the fourth quarter rose to $1.33 billion, up 109.4% year-on-year. For the full year, operating costs and expenses increased 39.1% from 2024.

Speaker #2: Below the pace of revenue growth, sales and marketing expenses were roughly $510 million at 178.4% year-on-year, with significant improvements in customer acquisition efficiency. The company proactively scaled up investments, resulting in a roughly $280 million year-on-year increase in marketing expenses for third-party traffic channels.

Tracy Li: G&A expenses were RMB 77.1 million, a modest year-on-year increase of 4.6%, mainly due to a RMB 6.77 million increase in allowance for party losses and a RMB 5.2 million in professional services, partially offset by RMB 6.5 million reduction in personnel costs. Research and development expenses were approximately RMB 66.2 million, up 21.9% year-on-year, primarily driven by a RMB 6.4 million increase in personnel costs and a RMB 5.8 million rise in cloud server fees. Company's profits improved significantly year-on-year. Net profit attributable to the company's ordinary shareholders for Q4 was RMB 162 million, up 62.7% year-on-year. For full year, the net profit attributable to the ordinary shareholders reached about RMB 570 million, up 54.8%.

Speaker #2: G&A expenses were $77.1 million, a modest year-on-year increase of 4.6%, mainly due to a $6.7 million increase in allowance for credit losses and a $5.2 million increase in professional services.

Xiaoying Xu: G&A expenses were RMB 77.1 million, a modest year-on-year increase of 4.6%, mainly due to a RMB 6.77 million increase in allowance for party losses and a RMB 5.2 million in professional services, partially offset by RMB 6.5 million reduction in personnel costs. Research and development expenses were approximately RMB 66.2 million, up 21.9% year-on-year, primarily driven by a RMB 6.4 million increase in personnel costs and a RMB 5.8 million rise in cloud server fees. Company's profits improved significantly year-on-year. Net profit attributable to the company's ordinary shareholders for Q4 was RMB 162 million, up 62.7% year-on-year. For full year, the net profit attributable to the ordinary shareholders reached about RMB 570 million, up 54.8%.

Speaker #2: Partially offset by $6.5 million reductions in personnel costs. And research and development expenses were approximately $66.2 million, at 21.9% year-on-year. Primarily driven by a $6.4 million increase in personnel costs and a $5.8 million rise in cross-services. Companies' profits improved significantly year-on-year.

Speaker #2: Net profit attributed to the company's ordinary shareholders for the fourth quarter was ¥162 million, up 62.7% year-on-year. For the full year, the net profit attributed to the ordinary shareholders reached about ¥570 million, up 54.8%.

Speaker #2: The company maintained an ample cash position of about $3.205 billion to $3.25 billion as of the end of 2025, providing strong support for our future growth.

Tracy Li: The company can maintain ample cash position of about CNY 3.25 billion as of the end of 2025, providing a strong support for our future growth. This concludes our financial overview for the Q4 and the full year 2025. Now, ladies and gentlemen, with that, we will conclude today's conference call. We do thank you for joining. Have a good time.

Xiaoying Xu: The company can maintain ample cash position of about CNY 3.25 billion as of the end of 2025, providing a strong support for our future growth. This concludes our financial overview for the Q4 and the full year 2025. Now, ladies and gentlemen, with that, we will conclude today's conference call. We do thank you for joining. Have a good time.

Speaker #2: And this concludes our financial review for the fourth quarter and the fiscal year 2025. Now, ladies and gentlemen, with that, we will conclude today's conference call.