Q1 2026 Yuanbao Inc Earnings Call

June 10, 2026

Operator: Ladies and gentlemen, good day and welcome to Yuanbao Inc.'s Q1 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Stella Liu, Investor Relations and Strategy Associate Director. Please go ahead.

Speaker #2: Ladies and gentlemen, good day, and welcome to Yuanbao Inc.'s first quarter 2026 earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Stella Liu, Investor Relations and Strategy Associate Director.

Speaker #2: Please go ahead.

Speaker #3: Thank you, Operator. Please note that today's discussion will contain forward-looking statements made under the Safe Harbor Prevention of the U.S. Private Securities Litigation Reform Act of 1995.

Stella Liu: Thank you, operator. Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and discussion. A general discussion of the risk factors that could affect Yuanbao's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will also discuss certain non-GAAP financial measures.

Speaker #3: Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond our complete control and could cause actual results to differ materially from those mentioned in today's press release and discussion.

Speaker #3: A general discussion of the risk factors that could affect Yuanbao's business and financial results is included in certain filings of the Complete with the Securities and Exchange Commission.

Speaker #3: The Company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will also discuss certain non-GAAP financial measures. For definitions of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.

Stella Liu: For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. Joining us today on the call from Yuanbao's senior management are Mr. Rui Fang, our Chairman and Chief Executive Officer, and Mr. Huirui Wan, our Chief Financial Officer. Mr. Fang will deliver his remarks in Chinese, followed by an English translation. We will conclude the call with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on Yuanbao's investor relations website. I will now turn the call over to our Chairman and CEO, Mr. Fang. Please go ahead, sir. Hello, everyone. Thank you for joining us today for our First Quarter 2026 Earnings Conference Call. Please note that all figures will be in RMB unless otherwise noted.

Stella Liu: For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. Joining us today on the call from Yuanbao's senior management are Mr. Rui Fang, our Chairman and Chief Executive Officer, and Mr. Huirui Wan, our Chief Financial Officer. Mr. Fang will deliver his remarks in Chinese, followed by an English translation. We will conclude the call with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on Yuanbao's investor relations website. I will now turn the call over to our Chairman and CEO, Mr. Fang. Please go ahead, sir. Hello, everyone. Thank you for joining us today for our Q1 2026 Earnings Conference Call. Please note that all figures will be in RMB unless otherwise noted.

Speaker #3: Joining us today on the call from Yuanbao's senior management are Mr. Ruifang, our Chairman and Chief Executive Officer, and Mr. Rui Wen, our Chief Financial Officer.

Speaker #3: Mr. Fang will deliver his remarks in Chinese, followed by an English translation. We will conclude the call with a Q&A session. As a reminder, this conference is being recorded.

Speaker #3: In addition, a webcast replay of this conference call will be available on Yuanbao's Investor Relations website. I will now turn the call over to our Chairman and CEO, Mr. Fang.

Speaker #3: Please go ahead, sir.

Speaker #4: 大家好, 欢迎参加元宝2026年第一季度财报电话会。2026年一季度我们延续了上一年稳健增长态势。在规模扩容与盈利质量之间实现了均衡发展。本季度公司总收入为人民币13.16亿元, 同比增长35.6%。净利润为人民币3.88亿元, 同比增长31.4%。净利润率为29.5%。这一表现体现了我们在协同保湿进行产品创新、产品推荐、精细化运营、理赔协助服务和AI深度应用等方面的综合能力。截至一季度末, 公司现金储备为人民币47.4亿元, 为我们持续加大技术投入、推进AI与大数据深度应用以及把握行业结构机会提供了坚实的财务保障。

Speaker #5: Hello, everyone. Thank you for joining us today for our first quarter 2026 earnings conference call. Please note that all figures will be in RMB unless otherwise noted.

Speaker #5: In the first quarter of 2026, we extended the solid growth trajectory we established last year while maintaining a healthy balance between business expansion and profitability quality.

Stella Liu: In Q1 2026, we extended the solid growth trajectory we established last year while maintaining a healthy balance between business expansion and profitability quality. We generated total Q1 revenues of RMB 1.32 billion, representing a year-over-year increase of 35.6%. Net income reached RMB 388 million, up 31.4% year-over-year, with net income margin at 29.5%. This performance underscores our comprehensive strength in collaborating with insurers to drive product innovation, personalized recommendations, refined operations, claim service, and advanced AI integration. As of the end of Q1, our cash reserves totaled RMB 4.74 billion, providing a strong financial foundation for continued investment in technology, deeper application of AI and big data, and capturing structural opportunities within the industry. Meanwhile, we continue to strengthen our data and modeling capabilities.

Speaker #5: We generated total first quarter revenues of 1.32 billion, representing a year-over-year increase of 35.6%. Net income reached 388 million, up 31.4% year-over-year, with net income margin at 29.5%.

Speaker #5: This performance underscores our comprehensive strength in collaborating with insurers to drive product innovation, personalized recommendations, refined operations, claims service, and advanced AI integration. As of the end of the first quarter, our cash reserves totaled 4.74 billion, providing a strong financial foundation for continued investment in technology, deeper application of AI, and big data, and capturing structural opportunities within the industry.

Speaker #4: 与此同时, 我们不断加强数据和模型能力建设。截至一季度末, 公司模型矩阵已包含超过5,000个模型, 可对超过5,800个特征进行分析。在需求洞察、产品推荐和理赔服务等全链路服务优化中发挥了关键作用。另外, 依托我们充裕的现金储备以及持续强劲的经营现金流, 我们很高兴地宣布, 董事会已批准每ADS 1.26美元的年度现金股息及1,500万美元的股份回购计划。我们认为这一系列行动不仅充分体现了公司健康的财务基本面, 更彰显了我们致力于提升股东回报、稳步创造长期企业价值的坚定承诺。

Speaker #5: Meanwhile, we continue to strengthen our data and modeling capabilities. As of quarter end, our model matrix comprised more than 5,000 models capable of analyzing over 5,800 labels.

Stella Liu: As of quarter end, our model matrix comprised more than 5,000 models capable of analyzing over 5,800 labels, playing a critical role in end-to-end service optimization across demand identification, product recommendations, and claims service. In addition, supported by our robust cash position and sustained robust operating cash flow, we are pleased to announce that our board of directors has approved an annual cash dividend of US$1.26 per ADS, together with a $15 million share repurchase program. We believe these actions underscore the strength of our financial foundation and reflect our ongoing commitment to enhancing shareholder returns as we steadily grow the long-term value of our company.

Speaker #5: Playing a critical role in end-to-end service optimization across demand identification, product recommendations, and claims service. In addition, supported by our robust cash position and sustained robust operating cash flow, we are pleased to announce that our board of directors has approved an annual cash dividend of US$1.26 per ADS together with a $15 million share repurchase program.

Speaker #5: We believe this action underscores the strength of our financial foundation and reflects our ongoing commitment to enhancing shareholder returns as we steadily grow the long-term value of our company.

Speaker #4: 当前, 保险行业正迈入以结构优化、价值提效、生态融合为核心的高质量发展阶段。需求侧正在发生深刻变革, 消费者风险保障意识持续增强, 配置行动更为主动, 同时伴随着国家多层次医疗保障体系建设加速推进。商业健康险在医疗健康、创新药支持和家庭风险管理中的作用不断提升。行业大环境持续向好, 不仅拓宽了行业的成长空间, 也为元宝所专注的商业健康险营造了更有利的外部环境。

Rui Fang: 当前保险行业正迈入以结构优化、价值提效、生态融合为核心的高质量发展阶段，需求侧正在发生深刻变革，消费者风险保障意识持续增强，配置行动更为主动。同时，伴随着国家多层次医疗保障体系建设加速推进，商业健康险在医疗健康、创新药支持和家庭风险管理中的作用不断提升。行业大环境持续向好，不仅拓宽了行业的成长空间，也为元宝所专注的商业健康险营造了更有利的外部环境。

Speaker #5: The insurance industry is entering a new phase of high-quality development, characterized by structural optimization, value-driven efficiency enhancement, and ecosystem integration. At the same time, the demand side is undergoing a fundamental shift.

Stella Liu: The insurance industry is entering a new phase of high-quality development, characterized by structural optimization, value-driven efficiency enhancement, and ecosystem integration. At the same time, the demand side is undergoing a fundamental shift. Consumer awareness of risk protection continues to strengthen, and insurance purchasing behavior is becoming increasingly proactive. Meanwhile, the accelerated development of China's multi-tier healthcare protection system is expanding the role of commercial health insurance across healthcare services, innovative drug payment solutions, and family risk management. The overall industry environment continues to improve, expanding the industry's long-term growth potential and creating more favorable external conditions for the commercial health insurance market on which Yuanbao is focused.

Rui Fang: The insurance industry is entering a new phase of high-quality development, characterized by structural optimization, value-driven efficiency enhancement, and ecosystem integration. At the same time, the demand side is undergoing a fundamental shift. Consumer awareness of risk protection continues to strengthen, and insurance purchasing behavior is becoming increasingly proactive. Meanwhile, the accelerated development of China's multi-tier healthcare protection system is expanding the role of commercial health insurance across healthcare services, innovative drug payment solutions, and family risk management. The overall industry environment continues to improve, expanding the industry's long-term growth potential and creating more favorable external conditions for the commercial health insurance market on which Yuanbao is focused.

Speaker #5: Consumers' awareness of risk protection continues to strengthen, and insurance purchasing behavior is becoming increasingly proactive. Meanwhile, the accelerated development of China's multi-tier healthcare protection system is expanding the role of commercial health insurance across healthcare services, innovative drug payment solutions, and family risk management.

Speaker #5: The overall industry environment continues to improve, expanding the industry's long-term growth potential and creating more favorable external conditions for the commercial health insurance market on which Yuanbao is focused.

Speaker #4: 与此同时, 供给端也在紧跟市场变化, 加速迭代升级。以健康险领域为例, 随着DRG、DIP付费方式全面覆盖, 创新医疗、创新药的保障需求持续释放, 推动医疗保障范围不断扩容升级, 加大对先进医疗项目的保障覆盖。此外, 保险加服务的生态融合模式成为行业主流趋势。保险日益与健康管理、抗氧服务等生态深度绑定, 行业从产品供给能力比拼升级为生态整合能力的综合比拼。

Rui Fang: 与此同时，供给端也在紧跟市场变化，加速迭代升级。以健康险领域为例，随着DRG/DIP付费方式全面覆盖，创新医疗、创新药的保障需求持续释放，推动医疗保障范围不断扩容升级，加大对先进医疗项目的保障覆盖。此外，保险加服务的生态融合模式成为行业主流趋势。保险日益与健康管理、康养服务等生态深度绑定，行业从产品供给能力比拼升级为生态整合能力的综合比拼。

Stella Liu: The supply side of the industry is also keeping pace with market dynamics, accelerating iteration and upgrades to better meet evolving consumer demand. For example, in the health insurance sector, the nationwide rollout of DRG/DIP payment systems has significantly increased demand for coverage related to innovative medical treatments and drugs, driving continued expansion and upgrading of medical insurance product coverage and broader protection for advanced medical treatments. In addition, the insurance plus services ecosystem model is becoming an increasingly mainstream industry trend. Insurance products are now being more deeply integrated with wider ecosystems such as health management, rehabilitation, and convalescence services. As a result, industry competition is evolving from pure product supply capabilities to a broader context of ecosystem integration.

Rui Fang: The supply side of the industry is also keeping pace with market dynamics, accelerating iteration and upgrades to better meet evolving consumer demand. For example, in the health insurance sector, the nationwide rollout of DRG/DIP payment systems has significantly increased demand for coverage related to innovative medical treatments and drugs, driving continued expansion and upgrading of medical insurance product coverage and broader protection for advanced medical treatments. In addition, the insurance plus services ecosystem model is becoming an increasingly mainstream industry trend. Insurance products are now being more deeply integrated with wider ecosystems such as health management, rehabilitation, and convalescence services. As a result, industry competition is evolving from pure product supply capabilities to a broader context of ecosystem integration.

Speaker #5: The supply side of the industry is also keeping pace with market dynamics, accelerating iteration and upgrades to better meet evolving consumer demand. For example, in the health insurance sector, the nationwide rollout of DRG and DIP payment systems has significantly increased demand for coverage related to innovative medical treatments and drugs.

Speaker #5: Driving continued expansion and upgrading of medical insurance product coverage and border protection for advanced medical treatments. In addition, the insurance plus services ecosystem model is becoming an increasingly mainstream industry trend.

Speaker #5: Insurance products are now being more deeply integrated with wider ecosystems, such as health management, rehabilitation, and convalescent services. As a result, industry competition is evolving from pure product supply capabilities to a broader context of ecosystem integration.

Speaker #4: That's a big insight.元宝始终以产品与服务为核心, 构筑长期发展根基。在产品端, 元宝协同保持一体, 持续迭代普惠产品, 精准覆盖带病投保人群, 新市民等细分群体。我们第一时间在产品中全面纳入了三宝创新药目录, 紧随行业政策的新趋势, 满足大众对前沿疗法与优质用药的保障需求。在服务端, 元宝以科技能力深度嵌入理赔全流程, 上线智能理赔、助赔功能, 由元宝协助合作保湿, 对小额低风险案例展开初步评估, 依托自研理赔审核系统, 通过自动核验理赔材料, 自动核算理赔金额等技术赋能, 有效提升保险公司理赔效率, 优化用户理赔体验, 显著提升小额理赔响应的及时性。

Rui Fang: 在此背景下，元宝始终以产品与服务为核心，构筑长期发展根基。在产品端，元宝协同保司一起持续迭代普惠产品，精准覆盖待定投保人群、新市民等细分群体。我们第一时间在产品中全面纳入了商保创新药目录，紧随行业政策的新趋势，满足大众对前沿疗法与优质用药的保障需求。在服务端，元宝以科技能力深度嵌入理赔全流程，上线智能理赔助赔功能，由元宝协助合作保司对小额低风险案例展开初步评估。依托自研理赔审核系统，通过自动核验理赔材料、自动核算理赔金额等技术赋能，有效提升保险公司理赔效率，优化用户理赔体验，显著提升小额理赔响应的即时性。

Speaker #5: Against this spectrum, we have consistently placed products and services at the center of our long-term development strategy. On the product side, we continue to work closely with insurance carriers to enhance and iterate our inclusive insurance offerings.

Stella Liu: Against this backdrop, we have consistently placed products and services at the center of our long-term development strategy. On the product side, we continue to work closely with insurance carriers to enhance and iterate our inclusive insurance offerings, with a focus on addressing the needs of specialized customer segments, including individuals with pre-existing conditions and new urban residents. We acted swiftly to fully integrate the Commercial Health Insurance Innovative Drug Catalogue into our product offerings, keeping pace with emerging policy trends and broadening public access to advanced therapies and high-quality medications. On the service side, we have integrated our technological capabilities throughout the claims process with the launch of our intelligent claims assistance feature, which assists partnered insurers in conducting preliminary reviews of low-value, low-risk claims.

Rui Fang: Against this backdrop, we have consistently placed products and services at the center of our long-term development strategy. On the product side, we continue to work closely with insurance carriers to enhance and iterate our inclusive insurance offerings, with a focus on addressing the needs of specialized customer segments, including individuals with pre-existing conditions and new urban residents. We acted swiftly to fully integrate the Commercial Health Insurance Innovative Drug Catalogue into our product offerings, keeping pace with emerging policy trends and broadening public access to advanced therapies and high-quality medications. On the service side, we have integrated our technological capabilities throughout the claims process with the launch of our intelligent claims assistance feature, which assists partnered insurers in conducting preliminary reviews of low-value, low-risk claims.

Speaker #5: With a focus on addressing the needs of specialized customer segments, including individuals with pre-existing conditions and new urban residents, we acted swiftly to fully integrate the commercial insurance innovative drug catalog into our product offerings, keeping pace with emerging policy trends and broadening public access to advanced therapies and high-quality medications.

Speaker #5: On the service side, we have integrated our technological capabilities throughout the claims process with the launch of our intelligent claims assistance feature, which assists partnered insurers in conducting preliminary reviews of low-value, low-risk claims. Our proprietary claims review system automatically verifies claims documents and calculates claim amounts, improving insurers' claims processing efficiency, enhancing the overall user claims experience, and significantly shortening response times for small-value claims.

Stella Liu: Our proprietary claims review system automatically verifies claims documents and calculates claims amounts, improving insurance claims processing efficiency, enhancing the overall user claims experience, and significantly shortening response times for small value claims.

Rui Fang: Our proprietary claims review system automatically verifies claims documents and calculates claims amounts, improving insurance claims processing efficiency, enhancing the overall user claims experience, and significantly shortening response times for small value claims.

Speaker #4: 在这一行业演进过程中, 互联网保险的角色定位也已发生本质变化。它不再只是传统销售渠道的线上延伸, 而是演化为行业基础设施, 通过数据和技术串联其用户的需求, 产品供给和服务能力, 成为驱动保险业模式升级与效率重塑的关键力量。尤其在健康险与普惠保障领域, 产品日益多元, 条款责任合法规则及理赔流程日趋专业与丰富, 消费者更倾向于通过线上渠道获取信息对比方案, 并借助AI工具辅助理解与选择。行业竞争核心正从流量获取与产品销售逐渐转向对AI技术能力、专业服务能力以及长期用户信任的综合构建。在一趋势下, 元宝集成AI能力建设作为组织能力升级的核心战略。AI保险大模型在元宝进入规模化落地阶段, 深入嵌入核心业务, 实现了运营效率与用户体验的双重升级。

Rui Fang: 在这一行业演进过程中，互联网保险的角色定位也已发生本质变化。它不再只是传统销售渠道的线上延伸，而是演化为行业基础设施，通过数据和技术串联起用户的需求、产品、供给和服务能力，成为驱动保险业模式升级与效率重塑的关键力量。尤其在健康险与普惠保障领域，产品日益多元，条款责任、核保规则及理赔流程日趋专业与丰富。消费者更倾向于通过线上渠道获取信息、对比方案，并借助AI工具辅助理解与选择。行业竞争核心正从流量获取与产品销售，逐渐转向对AI技术能力、专业服务能力以及长期用户信任的综合构建。在此趋势下，元宝集成AI能力建设作为组织能力升级的核心战略。AI保险大模型在元宝进入规模化落地阶段，深入嵌入核心业务，实现了运营效率与用户体验的双重升级。

Stella Liu: Amid this industry evolution, the role of internet insurance has undergone a fundamental transformation. It is no longer merely an online extension of traditional insurance distribution channels. Instead, it has evolved into industry infrastructure by leveraging data and technology to connect user demand, insurance product supply, and service capabilities. It has become a pivotal force driving business model upgrades and reshaping industry efficiency. This shift is particularly evident in the health insurance and inclusive protection segments, where product offerings have grown increasingly diverse, while policy terms, coverage benefits, underwriting rules, and claims processes have become more specialized and comprehensive. Consumers increasingly prefer to obtain information and compare solutions online, leveraging AI-powered tools to better understand and select insurance products.

Rui Fang: Amid this industry evolution, the role of internet insurance has undergone a fundamental transformation. It is no longer merely an online extension of traditional insurance distribution channels. Instead, it has evolved into industry infrastructure by leveraging data and technology to connect user demand, insurance product supply, and service capabilities. It has become a pivotal force driving business model upgrades and reshaping industry efficiency. This shift is particularly evident in the health insurance and inclusive protection segments, where product offerings have grown increasingly diverse, while policy terms, coverage benefits, underwriting rules, and claims processes have become more specialized and comprehensive. Consumers increasingly prefer to obtain information and compare solutions online, leveraging AI-powered tools to better understand and select insurance products.

Speaker #5: Amid this industry evolution, the role of Internet insurance has undergone a fundamental transformation. It is no longer merely an online extension of traditional insurance distribution channels.

Speaker #5: Instead, it has involved into industry infrastructure, by leveraging data and technology to connect user demands, insurance product supply, and service capabilities. It has become a pivotal force driving business model upgrades and reshaping industry efficiency.

Speaker #5: This shift is particularly evident in the health insurance and inclusive protection segments, where product offerings have grown increasingly diverse. Policy terms, coverage benefits, underwriting rules, and claims processes have become more specialized and comprehensive. Consumers increasingly prefer to obtain information and compare solutions online, leveraging AI-powered tools to better understand and select insurance products.

Speaker #5: As a result, the industry's competitive focus is gradually shifting away from pure traffic acquisition and product sales toward the comprehensive development of AI capabilities, professional service expertise, and long-term user trust.

Stella Liu: As a result, the industry's competitive focus is gradually shifting away from pure traffic acquisition and product sales towards the comprehensive development of AI capabilities, professional service expertise, and long-term user trust. Against this backdrop, Yuanbao has prioritized the development of integrated AI capabilities as a core strategic initiative for organizational upgrading. Our AI insurance large language model has now been deployed at scale and is deeply integrated into our core business operations, delivering meaningful improvements in both operational efficiency and user experience.

Rui Fang: As a result, the industry's competitive focus is gradually shifting away from pure traffic acquisition and product sales towards the comprehensive development of AI capabilities, professional service expertise, and long-term user trust. Against this backdrop, Yuanbao has prioritized the development of integrated AI capabilities as a core strategic initiative for organizational upgrading. Our AI insurance large language model has now been deployed at scale and is deeply integrated into our core business operations, delivering meaningful improvements in both operational efficiency and user experience.

Speaker #5: Against this backdrop, Yuanbao has prioritized the development of integrated AI capabilities as a core strategic initiative for organizational upgrading. Our AI insurance large language model has now been deployed at scale and is deeply integrated into our core business operations.

Speaker #5: Delivering meaningful improvements in both operational efficiency and user experience.

Rui Fang: 在AI技术应用方面，我们构建了基于多智能体协同的智能服务体系，面向消费者推出了智能化保险咨询与规划应用。系统围绕保险决策关键环节，提供了产品保障内容解读、带病投保辅助判断、保险方案规划建议以及条款解释与对比等能力。通过多轮对话持续补充用户信息，实现了个性化的保险咨询与规划服务。

Speaker #4: 在AI技术应用方面, 我们构建了基于多智能体协同的智能服务体系。面向消费者推出了智能化保险咨询与规划应用。系统围绕保险决策关键环节, 提供了产品保障内容解读, 带病投保辅助判断。保险方案规划建议以及条款解释与对比等能力, 通过多轮对话持续补充用户信息, 实现了个性化的保险咨询与规划服务。

Stella Liu: In terms of AI applications, we have developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning tool for consumers. The system focuses on key stages of the insurance decision-making process, offering functions such as interpretation of product coverage and benefits, underwriting eligibility assessment for users with pre-existing medical conditions, insurance planning suggestions, and policy explanation and comparison. Through multi-turn conversations, the system continuously refines user profiles to deliver personalized insurance consultation and planning services.

Rui Fang: In terms of AI applications, we have developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning tool for consumers. The system focuses on key stages of the insurance decision-making process, offering functions such as interpretation of product coverage and benefits, underwriting eligibility assessment for users with pre-existing medical conditions, insurance planning suggestions, and policy explanation and comparison. Through multi-turn conversations, the system continuously refines user profiles to deliver personalized insurance consultation and planning services.

Speaker #5: In terms of AI applications, we have developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning tool for consumers.

Speaker #5: The system focuses on key stages of the insurance decision-making process, offering functions such as interpretation of product coverage and benefits, underwriting eligibility assessment for users with pre-existing medical conditions, insurance planning suggestions, and policy explanation and comparison.

Speaker #5: Through multi-tiered conversations, the system continuously refines user profiles to deliver personalized insurance consultation and planning services.

Speaker #4: 技术上, 公司以保险专业知识库与领域模型能力为核心, 构建覆盖产品条款、合法规则及服务流程的结构化知识体系。目前, 公司知识库以覆盖数千款保险产品及条款信息, 并沉淀了涵盖保险、医疗及服务流程的专业知识数据。数据条目在数百万级以上, 同时针对保险场景的模型训练与优化, 提升对复杂语义、健康状况描述及投保规则的理解能力。在系统架构上, 通过多智能体分工协同机制, 实现需求理解、信息补全、知识检索与方案生成等任务的模块化执行, 提升复杂咨询场景下的响应质量与稳定性。

Rui Fang: 技术上，公司以保险专业知识库与领域模型能力为核心，构建覆盖产品条款、核保规则及服务流程的结构化知识体系。目前，公司知识库已覆盖数千款保险产品及条款信息，并沉淀了涵盖保险、医疗及服务流程的专业知识数据，数据条目在数百万级以上。同时，针对保险场景的模型训练与优化，提升对复杂语义、健康状况描述及投保规则的理解能力。在系统架构上，通过多智能体分工协同机制，实现需求理解、信息补全、知识检索与方案生成等任务的模块化执行，提升复杂咨询场景下的响应质量与稳定性。

Speaker #5: From a tech standpoint, we have built a structured knowledge system centered on an insurance expertise knowledge base and domain-specific modeling capabilities. Covering product clauses underwriting rules and service workflows, the knowledge base currently encompasses thousands of insurance products and their policy details with millions of accumulated professional knowledge data entries spanning insurance, healthcare, and service processes.

Stella Liu: From a tech standpoint, we have built a structured knowledge system centered on insurance expertise knowledge base and domain-specific modeling capabilities, covering product clauses, underwriting rules, and service workflows. The knowledge base currently encompasses thousands of insurance products and their policy details with millions of accumulated professional knowledge, data, insurance planning, insurance, healthcare, and service processes. Through model training and optimization tailored to insurance scenarios, the system consistently enhances its own understanding of complex semantics, health condition descriptions, and policy rules. Architecturally, a multi-agent collaborative mechanism enables modular execution of tasks such as requirement comprehension, information completion, knowledge retrieval, and solution generation, improving response quality and stability across complex consultation scenarios.

Rui Fang: From a tech standpoint, we have built a structured knowledge system centered on insurance expertise knowledge base and domain-specific modeling capabilities, covering product clauses, underwriting rules, and service workflows. The knowledge base currently encompasses thousands of insurance products and their policy details with millions of accumulated professional knowledge, data, insurance planning, insurance, healthcare, and service processes. Through model training and optimization tailored to insurance scenarios, the system consistently enhances its own understanding of complex semantics, health condition descriptions, and policy rules. Architecturally, a multi-agent collaborative mechanism enables modular execution of tasks such as requirement comprehension, information completion, knowledge retrieval, and solution generation, improving response quality and stability across complex consultation scenarios.

Speaker #5: Through model training and optimization tailored to insurance scenarios, the system consistently enhances its own understanding of complex semantics, health condition descriptions, and policy rules, architecturally a multi-agent collaborative mechanism enables modular execution of tasks such as requirement comprehension, information completion, knowledge retrieval, and solution generation, improving response quality and stability across complex consultation scenarios.

Rui Fang: 在业务效果方面，上述能力有效提升了用户对保险产品的理解程度与决策效率，增强咨询过程的专业性与信任感。同时，通过将专业知识与服务能力的产品化沉淀，持续提升消费者保险咨询服务的标准化、专业化与智能化水平。在组织能力升级上，公司将集成AI能力建设作为核心战略，推动AI agent在公司全职能、全流程的规模化部署与深度普及，加速从工具化AI向组织化AI的范式跃迁，形成底座加技能加场景的三层架构，支撑智能体在复杂业务场景下的快速组装与稳定运行。

Speaker #4: 在业务效果方面, 上述能力有效提升了用户对保险产品的理解程度与决策效率。增强咨询过程的专业性与信任感, 同时通过将专业知识与服务能力的产品化沉淀, 持续提升消费者保险咨询服务的标准化、专业化与智能化水平。在组织能力升级上, 公司将集成AI能力建设作为核心战略。推动AI agent在公司全职能、全流程的规模化部署与深度普及, 加速从工具化AI向组织化AI的范式跃迁。形成底座加技能加场景的三层架构。支撑智能体在复杂业务场景下的快速组装与稳定运行。

Speaker #5: In terms of business outcomes, these capabilities have measurably enhanced users' understanding of insurance products, improved their decision-making efficiency, and strengthened the professionalism and trustworthiness of the consultation process.

Stella Liu: In terms of business outcomes, these capabilities have measurably enhanced users' understanding of insurance products, improved their decision-making efficiency, and strengthened the professionalism and trustworthiness of the consultation process. At the same time, by productizing professional knowledge and service capabilities, we continue to improve the level of standardization, professionalism, and intelligence in consumer-facing insurance consultation services. We have adopted integrated AI capability development as our core strategic organizational upgrade strategy, driving the large-scale deployment and deep integration of AI agents across all functions and processes, and accelerating the paradigm shift from tool-based AI to organization-wide AI. Our three-tier architecture of platform plus skills plus scenarios enables rapid compensation and reliable operation of AI agents across complex business scenarios.

Rui Fang: In terms of business outcomes, these capabilities have measurably enhanced users' understanding of insurance products, improved their decision-making efficiency, and strengthened the professionalism and trustworthiness of the consultation process. At the same time, by productizing professional knowledge and service capabilities, we continue to improve the level of standardization, professionalism, and intelligence in consumer-facing insurance consultation services. We have adopted integrated AI capability development as our core strategic organizational upgrade strategy, driving the large-scale deployment and deep integration of AI agents across all functions and processes, and accelerating the paradigm shift from tool-based AI to organization-wide AI. Our three-tier architecture of platform plus skills plus scenarios enables rapid compensation and reliable operation of AI agents across complex business scenarios.

Speaker #5: At the same time, by productizing professional knowledge and service capabilities, we continue to improve the level of standardization, professionalism, and intelligence in consumer-facing insurance consultation services.

Speaker #5: We have adopted integrated AI capability development as our core strategic organizational upgrade strategy, driving the large-scale deployment and deep integration of AI agents across all functions and processes, and accelerating the paradigm shift from tool-based AI to organization-wide AI. Our threat-tier architecture of platform plus skills plus scenarios enables rapid compensation and reliable operation of AI agents across complex business scenarios.

Speaker #4: 最后, 在行业影响力建设方面, 今年5月, 元宝联合清华大学五道口金融学院中国保险与养老金融研究中心连续第五年发布2025年中国互联网保险消费者洞察报告。持续追踪中国互联网保险消费者的行为变化与需求演进。这不仅为行业提供了重要参考, 也让我们能够更深入地把握线上智能和理性化的消费趋势, 并将这些洞察反哺到产品匹配、AI服务和运行运营体系的建设中。进一步巩固元宝在互联网保险领域的领先地位。

Rui Fang: 最后，在行业影响力建设方面，今年五月，元宝联合清华大学五道口金融学院中国保险与养老金融研究中心连续第五年发布《2025年中国互联网保险消费者洞察报告》，持续追踪中国互联网保险消费者的行为变化与需求演进。这不仅为行业提供了重要参考，也让我们能够更深入地把握线上、智能和理性化的消费趋势，并将这些洞察反哺到产品匹配、AI服务和运营体系的建设中，进一步巩固元宝在互联网保险领域的领先地位。

Speaker #5: Before I conclude, I want to touch on industry influence and thought leadership. In May this year, 元宝 together with the China Center for Insurance and Pension Finance Research at Tsinghua University PBC School of Finance released the 2025 China Internet Insurance Consumer Insights Report for the fifth consecutive year.

Stella Liu: Before I conclude, I want to touch on industry influence and thought leadership. In May this year, Yuanbao, together with the Research Center for China Insurance and Pension Finance at Tsinghua University PBC School of Finance, released the 2025 China Internet Insurance Consumer Insights Report for the fifth consecutive year. The report continues to track evolving consumer behaviors and changing demand trends in China's internet insurance market. It serves as a valuable reference point for the industry while allowing us to develop deeper insights into the ongoing shifts toward digitalization, intelligence services, and increasingly rational consumer decision making. We incorporate those insights into our product matching capabilities, AI-powered services, and operational system development, reinforcing Yuanbao's leading position in the internet insurance industry.

Rui Fang: Before I conclude, I want to touch on industry influence and thought leadership. In May this year, Yuanbao, together with the Research Center for China Insurance and Pension Finance at Tsinghua University PBC School of Finance, released the 2025 China Internet Insurance Consumer Insights Report for the fifth consecutive year. The report continues to track evolving consumer behaviors and changing demand trends in China's internet insurance market. It serves as a valuable reference point for the industry while allowing us to develop deeper insights into the ongoing shifts toward digitalization, intelligence services, and increasingly rational consumer decision making. We incorporate those insights into our product matching capabilities, AI-powered services, and operational system development, reinforcing Yuanbao's leading position in the internet insurance industry.

Speaker #5: The report continues to track evolving consumer behaviors and changing demand trends in China's internet insurance market. It serves as a valuable reference point for the industry while allowing us to develop deeper insights into the ongoing shifts, toward digitalization, intelligent services, and increasingly rational consumer decision-making.

Speaker #5: We incorporate these insights into our product matching capabilities, AI-powered services, and operational system development, reinforcing Yuanbao's leading position in the internet insurance industry.

Speaker #4: 展望未来, 在15规划开局起步, 健康中国战略持续落地的背景下, 居民健康保障意识的全面提升, 对保险服务的专业化、个性化、全周期化需求日益凸显。行业正加速从规模扩张向高质量发展的转型。这与元宝长期坚持的科技驱动、用户为本、普惠初心的战略方向高度契合。面向未来, 我们将继续围绕集成AI能力建设、深化AI agent在保险服务全流程中的落地应用, 持续提升用户需求洞察、产品推荐、咨询服务等能力, 实现运营效率与用户体验的双重升级。为构建全生命周期的健康与保障生态奠定坚实基础。依托稳健的财务基本面, 持续的盈利能力、深厚的数据与大模型技术积累, 以及对用户真实需求的长期洞察, 我们有信心把握行业结构的机遇, 持续为用户提供更专业、便捷、可信赖的保险服务, 为消费者合作伙伴与股东创造长期可持续的价值, 为健全多层次医疗保障体系守护民生福祉贡献元宝力量。

Rui Fang: 展望未来，在十五五规划开局起步、健康中国战略持续落地的背景下，居民健康保障意识的全面提升，对保险服务的专业化、个性化、全周期化需求日益凸显，行业正加速从规模扩张向高质量发展的转型。这与元宝长期坚持的科技驱动、用户为本、普惠初心的战略方向高度契合。面向未来，我们将继续围绕集成AI能力建设，深化AI agent在保险服务全流程中的落地应用，持续提升用户需求洞察、产品推荐、咨询服务等能力，实现运营效率与用户体验的双重升级，为构建全生命周期的健康与保障生态奠定坚实基础。依托稳健的财务基本面、持续的盈利能力、深厚的数据与大模型技术积累，以及对用户真实需求的长期洞察，我们有信心把握行业结构性机遇，继续为用户提供更专业、便捷、可信赖的保险服务，为消费者、合作伙伴与股东创造长期可持续的价值，为健全多层次医疗保障体系，守护民生福祉贡献元宝力量。

Speaker #5: Looking ahead, against the spectrum of the launch of the 15th five-year plan and the ongoing implementation of the healthy China strategy, public awareness of health protection is rising and demand for more professional, personalized, and full-life cycle insurance services is growing with it.

Stella Liu: Looking ahead, against the backdrop of the launch of the 15th Five-Year Plan and the ongoing implementation of the Healthy China Strategy, public awareness of health protection is rising, and the demand for more professional, personalized, and full lifecycle insurance services is growing with it. The industry's accelerating transition from scale-driven expansion to high-quality development aligns closely with Yuanbao's long-standing strategic focus on technology-driven development, user centricity, and commitment to inclusive protection. Going forward, we remain focused on building integrated AI capabilities, deploying AI agent deployment across the full insurance process. We will continue to enhance our ability to identify user needs, match users with suitable products, and deliver advisory services, thereby upgrading both operational efficiency and user experience. These efforts will lay a solid foundation for establishing a full lifecycle health and protection ecosystem.

Rui Fang: Looking ahead, against the backdrop of the launch of the 15th Five-Year Plan and the ongoing implementation of the Healthy China Strategy, public awareness of health protection is rising, and the demand for more professional, personalized, and full lifecycle insurance services is growing with it. The industry's accelerating transition from scale-driven expansion to high-quality development aligns closely with Yuanbao's long-standing strategic focus on technology-driven development, user centricity, and commitment to inclusive protection. Going forward, we remain focused on building integrated AI capabilities, deploying AI agent deployment across the full insurance process. We will continue to enhance our ability to identify user needs, match users with suitable products, and deliver advisory services, thereby upgrading both operational efficiency and user experience. These efforts will lay a solid foundation for establishing a full lifecycle health and protection ecosystem.

Speaker #5: The industry's accelerating transition from skills-driven expansion to high-quality development aligns closely with Yuanbao's long-standing strategic focus on technology-driven development, user-centricity, and commitment to inclusive protection.

Speaker #5: Going forward, we remain focused on building integrated AI capabilities deeply AI agent deployment across the full insurance process. We will continue to enhance our ability to identify user needs, match users with suitable products, and deliver advisory services thereby upgrading both operational efficiency and user experience.

Speaker #5: These efforts will lay a solid foundation for establishing a full-life cycle health and protection ecosystem, supported by our solid financial foundations, sustained profitability, extensive data assets, and large model capabilities as well as long-term insights into users' real needs.

Stella Liu: Supported by our solid financial foundations, sustained profitability, extensive data assets, and large model capabilities, as well as long-term insights into users' real needs, we are confident we can capture the industry's structural opportunities. We will continue to provide users with more professional, convenient, and trustworthy insurance services, generating long-term sustainable value for consumers, partners, and shareholders, while helping to strengthen China's multi-tiered medical protection system and safeguarding public wellbeing.

Rui Fang: Supported by our solid financial foundations, sustained profitability, extensive data assets, and large model capabilities, as well as long-term insights into users' real needs, we are confident we can capture the industry's structural opportunities. We will continue to provide users with more professional, convenient, and trustworthy insurance services, generating long-term sustainable value for consumers, partners, and shareholders, while helping to strengthen China's multi-tiered medical protection system and safeguarding public wellbeing.

Speaker #5: We are confident we can capture the industry's structural opportunities. We will continue to provide users with more professional, convenient, and trustworthy insurance services, generating long-term sustainable value for consumers, partners, and shareholders.

Speaker #5: While helping to strengthen China's multi-tiered medical protection system and safeguarding public well-being.

Speaker #4: 下面请我们CFO来为大家介绍一下我们一季度的财务表现。谢谢各位。

Rui Fang: 下面请我们CFO来为大家介绍一下我们一季度的财务表现。谢谢各位。

Speaker #5: Now I'll turn the call over to our CFO, Ray Wan, to present our financial results for the first quarter of 2026. Thank you, everyone.

Stella Liu: Now I'll turn the call over to our CFO, Ray Wan, to present our financial results for Q1 2026. Thank you, everyone.

Rui Fang: Now I'll turn the call over to our CFO, Ray Wan, to present our financial results for Q1 2026. Thank you, everyone.

Speaker #6: Thank you, Mr. Fong. And thank you, everyone, for joining today's earnings conference call. I'm pleased to walk you through our first quarter 2026 financial results.

Huirui Wan: Thank you, Michelle Fong. Thank you everyone for joining today's earnings conference call. I'm pleased to walk you through our Q1 2026 financial results. We started the year with a strong all-around performance marked by healthy double-digit top-line growth, solid profitability, and a strengthened cash position. We also continued to make meaningful progress on integrating AI more deeply across our organization. Total revenues for Q1 came in at RMB 1.3 billion, a 35.6% year-over-year increase. This growth was broad-based with meaningful contributions from both insurance distribution system services. Looking at our revenue mix, insurance distribution services contributed RMB 411.3 million, a 27.8% year-over-year increase. This reflected a higher volume of policies purchased through our platform, supported in part by our targeted marketing initiatives. System service revenues totaled RMB 904.6 million, up 39.8% year-over-year.

Huirui Wan: Thank you, Mr. Fang. Thank you everyone for joining today's earnings conference call. I'm pleased to walk you through our Q1 2026 financial results. We started the year with a strong all-around performance marked by healthy double-digit top-line growth, solid profitability, and a strengthened cash position. We also continued to make meaningful progress on integrating AI more deeply across our organization. Total revenues for Q1 came in at RMB 1.3 billion, a 35.6% year-over-year increase. This growth was broad-based with meaningful contributions from both insurance distribution system services. Looking at our revenue mix, insurance distribution services contributed RMB 411.3 million, a 27.8% year-over-year increase. This reflected a higher volume of policies purchased through our platform, supported in part by our targeted marketing initiatives. System service revenues totaled RMB 904.6 million, up 39.8% year-over-year.

Speaker #6: We started the year with a strong all-around performance marked by healthy double-digit top-line growth, solid profitability, and a strengthened cash position. We also continue to make meaningful progress on integrating AI more deeply across our organization.

Speaker #6: Total revenues for the first quarter came in at $1.3 billion, a 35.6% year-over-year increase. This growth was broad-based, with meaningful contributions from both insurance distribution system services. Looking at our revenue mix, insurance distribution services contributed $411.3 million, a 27.8% year-over-year increase.

Speaker #6: This reflected a higher volume of policies purchased through our platform, supported in part by our targeted marketing initiatives. System service revenues totaled $904.6 million, up 39.8% year-over-year.

Speaker #6: Growth this year was led by continued refinements to our full consumer service cycle engine, which enabled us to deliver more effective marketing and customer-related services to our partnered insurance carriers.

Huirui Wan: Growth here was led by continued refinements to our full consumer service cycle engine, which enabled us to deliver more effective marketing and customer-related services to our partnered insurance carriers. Deeper engagement with both existing partners and newly onboarded carriers also contributed to the increase. Turning to expenses. Total operating expense costs for the quarter rose 29.1% year-over-year to RMB 878.6 million. Operation and support expenses came in at RMB 47.5 million, up a modest 6% year-over-year. Selling and marketing expenses increased 29.4% year-over-year to RMB 638.2 million, reflecting our continuing investment in consumer acquisition engagement. General admin expenses were RMB 86.6 million, up 30% year-over-year, primarily driven by higher salaries. Research and development expenses rose 39.7% year-over-year to RMB 106.3 million, as we continue to grow our R&D headcount and broaden our technical capabilities, which remain core to differentiating our online insurance distribution platform.

Speaker #6: Deepened engagement with both existing partners and newly onboarded carriers also contributed to the increase. Turning to expenses, total operating expenses for the quarter rose 29.1% year-over-year to $878.6 million.

Speaker #6: Operation and support expenses came in at $47.5 million, up a modest 6% year-over-year. Selling and marketing expenses increased 29.4% year-over-year to $638.2 million, reflecting our continued investment in consumer acquisition and engagement.

Speaker #6: General admin expenses were $86.6 million, up 30% year-over-year. Primarily driven by higher salaries. Research and development expenses rose 39.7% year-over-year to $106.3 million, as we continue to grow our R&D headcount and broaden our technical capabilities, which remain core to differentiating our online insurance distribution platform.

Speaker #6: Before the operating line, income tax expense for the quarter was $69.4 million, compared with $6.7 million a year ago, primarily driven by a higher effective tax rate during the quarter.

Huirui Wan: Before the operating line, income tax expense for the quarter was RMB 69.4 million, compared with RMB 6.7 million a year ago, primarily driven by a higher effective tax rate during the quarter. Net income for the quarter was RMB 387.6 million, a 31.4% year-over-year increase, with a net income margin of 29.5%. Non-GAAP adjusted net income reached RMB 408.8 million, up 31% year-over-year, with a non-GAAP adjusted net income margin of 31.1%. Our cash position grew during the quarter. As of 31 March 2026, our cash and cash equivalents, time deposits, restricted cash, short-term investments, and long-term bank deposits total RMB 4.74 billion, an increase of 71.4% year-over-year and 17.4% from year-end 2025. Net cash provided by operating activities in the quarter was RMB 721.3 million, reflecting the underlying cash generation power of our business.

Speaker #6: Net income for the quarter was $387.6 million, a 31.4% year-over-year increase, with a net income margin of 29.5%. Non-GAAP adjusted net income reached $408.8 million, up 31% year-over-year.

Speaker #6: With a non-GAAP adjusted net income margin of 31.1%. Our cash position grew during the quarter. As of March 31, 2026, our cash and cash equivalents, time deposits, restricted cash, short-term investments, and long-term bank deposits totaled $4.74 billion.

Speaker #6: This represents an increase of 71.4% year-over-year and 17.4% from year-end 2025. Net cash provided by operating activities in the quarter was $721.3 million. Reflecting the underlying cash generation power of our business, this balance sheet strength provides us with ample flexibility to continue investing in our strategic priorities, including the build-out of our integrated AI capabilities.

Huirui Wan: This balance sheet strength provides us with ample flexibility to continue investing in our strategic priorities, including the build-out of our integrated AI capabilities. Our financial performance enables us to invest in growth while also delivering on our commitment to long-term shareholder value. Let me now turn to how we are returning value to our shareholders. First, regarding the dividend. The board has approved an annual cash dividend of $1.26 per ADS or $0.21 per ordinary share. The record date is set for a close of business on 2 July 2026. We expect to pay ordinary shareholders on or around 21 July 2026, and ADS holders on or around 28 July 2026. Please note that precise timing of receipts may vary based on the processing efficiency of the respective brokerages. Future dividends remain subject to the approval of our board of directors. Second, regarding the share repurchase program.

Speaker #6: Our financial performance enables us to invest in growth while also delivering on our commitment to long-term shareholder value. Let me now turn to how we are returning value to our shareholders.

Speaker #6: First, regarding the dividend, the Board has approved an annual cash dividend of $1.26 per ADS, or $0.21 per ordinary share.

Speaker #6: The record date is set for a close of business on July 2, 2026. We expect to pay ordinary shareholders on or around July 21, 2026.

Speaker #6: An ADS holders on or around July 28, 2026. Please note that precise timing of receipts may vary based on the processing efficiency of the respective brokerages.

Speaker #6: Future dividends remain subject to the approval of our board of directors. Second, regarding the share repurchase program, the board has authorized us to repurchase up to US dollars 15 million of our ordinary shares in the form of ADS over a 12-month period.

Huirui Wan: The board has authorized us to repurchase up to $15 million of our ordinary shares in the form of ADS over a 12-month period. As Rui Fang mentioned, this reflects our board's confidence in our long-term growth prospects. We plan to fund these repurchases entirely from our existing cash balance. The board will review this program periodically and may adjust, suspend, or discontinue it based on market conditions. To close, our first quarter results reinforce both the durability of our growth model and our ability to expand while maintaining financial discipline and strong profitability. This financial strength also supports both a cash dividend and a share repurchase program, underscoring our commitment to capital discipline and direct shareholder returns. Looking ahead, we will remain focused on driving high-quality revenue growth, unlocking further operating leverage, and delivering lasting value for our shareholders.

Huirui Wan: The board has authorized us to repurchase up to $15 million of our ordinary shares in the form of ADS over a 12-month period. As Rui Fang mentioned, this reflects our board's confidence in our long-term growth prospects. We plan to fund these repurchases entirely from our existing cash balance. The board will review this program periodically and may adjust, suspend, or discontinue it based on market conditions. To close, our Q1 results reinforce both the durability of our growth model and our ability to expand while maintaining financial discipline and strong profitability. This financial strength also supports both a cash dividend and a share repurchase program, underscoring our commitment to capital discipline and direct shareholder returns. Looking ahead, we will remain focused on driving high-quality revenue growth, unlocking further operating leverage, and delivering lasting value for our shareholders.

Speaker #6: As Mr. Fong mentioned, this reflects our board's confidence in our long-term growth prospect. We plan to fund these repurchases entirely from our existing cash balance.

Speaker #6: The board will review this program periodically and may adjust, suspend, or discontinue it based on market conditions. To close, our first quarter results reinforce both the durability of our growth model and our ability to expand while maintaining financial discipline, and strong profitability.

Speaker #6: This financial strength also supports both a cash dividend and a share repurchase program. Underscoring our commitment to capital discipline and direct shareholder returns. Looking ahead, we will remain focused on driving high-quality revenue growth, unlocking further operating leverage, and delivering lasting value for our shareholders.

Speaker #6: Thank you, and I will now like to open the call to Q&A. Operator, please go ahead.

Huirui Wan: Thank you, and I would now like to open the call to Q&A. Operator, please go ahead.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced.

Operator 1: Thank you. We will now begin the question and answer session. To ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. We will now proceed to take our first question. Our first question comes from the line of Amy Chen of Citi. Please ask your question. Amy, your line is open.

Operator: Thank you. We will now begin the question and answer session. To ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. We will now proceed to take our first question. Our first question comes from the line of Amy Chen of Citi. Please ask your question. Amy, your line is open.

Speaker #1: To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Speaker #1: We will now proceed to take our first question. And our first question comes from the line of Amy Chen of Citi. Please ask your question, Amy, your line is open.

Amy Jy Chen: Hi, this is Amy from Citi Research. I would first like to congratulate the management on a quarter of very robust results. My question is on marketing efficiency. Year to date in 2026, have you seen continuous improvement in marketing efficiency? I would like to learn more about how AI deployment has enabled this and in particular, in which phase, say customer acquisition or conversion or post-sale services, where AI helped the most.

Speaker #4: Hi, this is Amy from Citi Research, and I would first like to congratulate the management on a quarter of robust results. So, my question is on marketing efficiency.

Speaker #4: The year-to-date in 2026, have you seen continuous improvement in marketing efficiency? And I would like to learn more about how AI deployment has enabled this and, in particular, in which phase the customer acquisition or conversion or post-sale services where AI helped the most.具体是在哪一些环节?

Speaker #4: 谢谢。

Speaker #3: 好, 多谢 Amy。其实我们业务规模其实在扩大的背景下, 我们的获客效率一直保持非常稳健。的趋势。这里主要体现在我们销售以及市场推广费用持续展现出良好的经营杠杆效应。但是在 AI 这个角度, 我们其实整个的获客模型跟整个的引擎一直是通过 AI 来驱动的。所以这方面没有一个变化, 但是还是持续的完全通过 AI 来去做整个的获客生命周期。那尽管规模扩大通常伴随着获客成本上升的行业常态, 我们的技术驱动引擎和持续优化能力其实抵消了一部分这个趋势吧, 也就是为什么我们过去在 15 个季度中我们都是一直是保持了一个有比较健康的净利润的过程。

Rui Fang: Our customer acquisition efficiency has remained robust as our business scale has expanded, as reflected in our sustained operating leverage in selling and marketing expenses. Our customer acquisition usually based on core engine, but we don't have any changes now. While rising acquisition costs typically accompany business growth in this industry, our tech-driven engine and continuous improvements help offset this trend. Over the past 15 quarters, we have successfully controlled cost growth and stabilized margins amid intense competition. From an AI perspective, our model has consistently been AI-driven with no major changes.

Speaker #4: Our customer acquisition efficiency has remained robust as our business scale has expanded, as reflected in our sustained operating leverage in selling and marketing expenses. Our customer acquisition is usually based on our core engine, and we don't have any changes now, while rising acquisition costs typically accompany business growth in this industry.

Speaker #4: Our tech-driven engine and continuous improvements help offset this trend. Over the past 15 quarters, we have successfully controlled cost growth and stabilized margins amid intense competition.

Speaker #4: So from an AI perspective, our model has consistently been AI-driven with no major changes.

Speaker #1: Thank you. We will now take our next question from the line of Yue Shi from China Security Company. Please ask your question. Yue, your line is open.

Operator 1: Thank you. We will now take our next question from the line of Yue Xu from China Securities Co., Ltd. Please ask your question. Yue, your line is open.

Operator: Thank you. We will now take our next question from the line of Yue Xu from China Securities Company. Please ask your question. Yue, your line is open.

Yue Xu: Congratulations on another strong quarter. My question is regarding the marketing policy. We see some new rules from April 2026 banning using personal accounts to market financial products, including insurance products. Just wondering how much will this impact our customer acquisition model?

Speaker #5: Okay. Congratulations on another strong quarter. My question is regarding the marketing policy. We see some new rules from April 2026 banning the use of personal accounts to market financial products, including insurance products.

Speaker #5: So just wondering how much will this impact our customer acquisition model? 2026 年 4 月份的时候, 监管部门发布了一些关于这个金融产品网络营销的这个新的这个政策。然后想请教一下这个管理层, 就是怎么看待这个政策可能对我们获客模式的影响, 它可能会受益还是会受损。对。

Speaker #3: 多谢。其实截止目前, 这管理办法的发布并未对我们的获客模式造成任何有实质性的影响。这一方面是因为我们始终坚持合规先行, 早已建立了完善的营销行为, 管理制度, 并配套强制性的合规审查流程。那另一方面, 我们的核心业务逻辑与持牌保险公司的深度合作, 所有产品条款均经监管审批或备案, 保证业务合规开展。我们始终坚持与监管机构的保持长期积极的沟通, 努力确保公司战略始终与最新的政策导向保持一致。

Rui Fang: 多谢。其实截止目前，这个管理办法的发布并未对我们的获客模式造成任何实质性的影响。这一方面是因为我们始终坚持合规先行，早已建立了完善的营销行为管理制度，并配套强制性的合规审查流程。另一方面，我们的核心业务逻辑与持牌保险公司深度合作，所有产品条款均经监管审批或备案，保证业务合规开展。我们始终坚持与监管机构保持长期积极的沟通，努力确保公司战略始终与最新的政策导向保持一致。

Stella Liu: To date, the release of this regulation hasn't had any material impact on our user acquisition model. First, prioritizing compliance. We have long established marketing management systems and mandatory compliance reviews. Furthermore, our core business model is built on deep collaboration with licensed issuers. All of our product terms are either filed with or approved by the regulators, ensuring ongoing compliance across our operations. We are also committed to maintaining long-term proactive communication with regulatory authorities to ensure our corporate strategy remains aligned with the latest policy direction.

Rui Fang: To date, the release of this regulation hasn't had any material impact on our user acquisition model. First, prioritizing compliance. We have long established marketing management systems and mandatory compliance reviews. Furthermore, our core business model is built on deep collaboration with licensed issuers. All of our product terms are either filed with or approved by the regulators, ensuring ongoing compliance across our operations. We are also committed to maintaining long-term proactive communication with regulatory authorities to ensure our corporate strategy remains aligned with the latest policy direction.

Speaker #4: To date the release of this regulation hasn't had any material impact on our user acquisition model. First prioritizing compliance, we have long established marketing management systems and mandatory compliance reviews.

Speaker #4: Furthermore, our core business model is built on deep collaboration with licensed issuers. All of our product terms are either filled with or approved by the regulators ensuring ongoing compliance across our operations.

Speaker #4: We are also committed to maintaining long-term proactive communication with regulatory authorities to ensure our corporate strategy remains aligned with the latest policy direction.

Speaker #1: Thank you. We will now proceed to take our next question. The question comes from Thomas Wong of Goldman Sachs. Please go ahead, Thomas—your line is open.

Operator 1: Thank you. We will now proceed to take our next question. The question comes from Thomas Wang of Goldman Sachs. Please go ahead, Thomas. Your line is open.

Operator: Thank you. We will now proceed to take our next question. The question comes from Thomas Wang of Goldman Sachs. Please go ahead, Thomas. Your line is open.

Thomas Wang: 感谢管理层。根据今天的业绩，我想问一下，我们现在也看到了一个正的一个流程，也看到今天公司给这个股东的回报有举措。我也希望我们再多讲一讲，就是这个后面的一些考量，我们未来对这个股东回报率的考量。 Thomas Wang from Goldman Sachs. My question is on shareholder return. It's good to see that we got positive retained profit and the dividend and the buyback. Can you just give us a little bit color on your thinking and how you think about shareholder return in the future? Thank you.

Speaker #3: 就是根据本次季报的披露, 我们已经批出了两项非常核心的举措吧, 这个其实跟之前大家对于我们的预期跟市场沟通也是相对至少一致吧。一个是实施了每股每 ADS 1.26 美元的年度现金股息, 20 启动总额最高 1,500 万美元的股份回购计划。那这一连串动作充分地彰显了我们对于业务场景前景的长期信心以及提升长期企业价值的坚定承诺。那正如方总所强调的, 这不仅体现了公司健康的财务基本面, 也是我们资本配置策略的重要一环。那我们也希望通过这种资本回馈方式在保障公司未来发展的同时, 稳步为股东创造可持续的回报。当然对于 2026 年的股东回报政策, 我们会到时再进行相应的披露。

Thomas Wang: Thomas Wang from Goldman Sachs. My question is on shareholder return. It's good to see that we got positive retained profit and the dividend and the buyback. Can you just give us a little bit color on your thinking and how you think about shareholder return in the future? Thank you.

Rui Fang: 好，多谢Thomas。其实根据本次季报的披露，我们已经批出了两项非常核心的举措，这个其实跟之前大家对我们的预期，跟市场沟通也是相对一致。一个是实施了每ADS 1.26美元的年度现金股息，二是启动总额最高1,500万美元的股份回购计划。这一连串动作充分地彰显了我们对于业务前景的长期信心，以及提升长期企业价值的坚定承诺。正如方总所强调的，这不仅体现了公司健康的财务基本面，也是我们资本配置策略的重要一环。我们也希望通过这种资本回馈方式，在保障公司未来发展同时，稳步为股东创造可持续的回报。对于2026年的股份回报政策，我们会到时再进行相应的披露。

Stella Liu: As disclosed in today's Q1 results, our board has approved two core initiatives: an annual cash dividend of US$1.26 per ADS and a share repurchase program of up to $15 million, which is aligned with what we communicated with the market before. This action is fully demonstrated our long-term confidence in our business outlook and our firm commitment to enhancing long-term corporate value. As our Chairman, Mr. Fang, emphasized, this reflects both our healthy financial fundamentals and a key component of our capital allocation strategy. Through shareholder return strategies, we aim to steadily create sustainable value for our shareholders while securing the company's future growth. For 2026, we will review our shareholder return policies again.

Rui Fang: As disclosed in today's Q1 results, our board has approved two core initiatives: an annual cash dividend of US$1.26 per ADS and a share repurchase program of up to $15 million, which is aligned with what we communicated with the market before. This action is fully demonstrated our long-term confidence in our business outlook and our firm commitment to enhancing long-term corporate value. As our Chairman, Mr. Fang, emphasized, this reflects both our healthy financial fundamentals and a key component of our capital allocation strategy. Through shareholder return strategies, we aim to steadily create sustainable value for our shareholders while securing the company's future growth. For 2026, we will review our shareholder return policies again.

Speaker #4: As disclosed in today's first quarter results, our Board has approved two core initiatives and an annual cash dividend of $1.26 per ADS, as well as a share repurchase program of up to $15 million.

Speaker #4: This is aligned with what we communicated with the market before. This action fully demonstrates our long-term confidence in our business outlook and our firm commitment to enhancing long-term corporate value.

Speaker #4: As our Chairman, Mr. Fang, emphasized, this reflects both our healthy financial fundamentals and a key component of our capital allocation strategy. Through shareholder return strategies, we aim to steadily create sustainable value for our shareholders while securing the complex future growth.

Speaker #4: And for 2026, we will review our shareholder return policies again.

Speaker #1: Thank you. We will now take our next question from Sing Tao Chen at CICC. Please go ahead, Sing Tao. Your line is open.

Operator 1: Thank you. We will now take our next question from Xintao Chen of CICC. Please go ahead, Xintao, your line is open.

Operator: Thank you. We will now take our next question from Xintao Chen of CICC. Please go ahead, Xintao, your line is open.

Xintao Chen: Hi management, this is Chen Xintao from CICC Research. Thank you very much for the opportunity to ask a question and congratulations on the excellent result in the Q1. We noticed that the company recently co-published the 2025 China Internet Insurance Consumer Insights Report with Tsinghua University, which highlights the excellent legislation of online insurance distribution and point to AI as a key driver in consumers purchase decisions. Could management add some color on whether the company plan more strategies or scenarios around AI-empowered consumer decision making to enhance consumer outreach and drive higher conversion?

Speaker #6: Hi, management. This is Chen Xingtao from CICC Research. Thank you very much for the opportunity to ask a question. And congratulations on the excellent result in the first quarter.

Speaker #6: So we noticed that the company recently co-published the 2025 China Online Insurance Customer Insights Report with Tsinghua University, which highlights the acceleration of online insurance distribution and points to AI as a key driver in consumers' purchase decisions.

Speaker #6: So could management add some color on whether the company plan more strategies or scenarios around AI-powered consumer decision-making to enhance consumer outreach and drive higher conversion?

Speaker #6: Thank you. 首先非常感谢管理层给我提问的机会, 也祝贺管理层再次取得非常优秀的业绩。那我们也关注到公司最近期和清华大学联合发布了 2025 年中国互联网保险消费者洞察报告。那其中也提到保险产品销售的线上化在加速, 并且 AI 正在成为消费者购险决策的一个重要的助力。那想请教管理层, 围绕 AI 赋能消费者决策这一个环节, 公司未来是否有更多的具体策略或者是落地的场景来强化对于消费者的精准的触达, 提升客户的转化? 谢谢。

Xintao Chen: Thank you。管理层晚上好，首先非常感谢管理层给我提问的机会，也祝贺管理层再次取得非常优秀的业绩。我们也关注到公司近期和清华大学联合发布了2025年中国互联网保险消费者洞察报告，其中也提到保险产品销售的线上化在加速，并且AI正在成为消费者购险决策的一个重要的助力。想请教管理层，围绕AI赋能消费者决策这一个环节，公司未来是否有更多的具体策略或者落地的场景来强化对于消费者的精准的触达，提升客户的转化？谢谢。

Speaker #3: 那陈总, 我们其实已经有了, 我们已经构建了基于多智能体协同的智能服务系统, 并以面向消费者推出了智能化的保险咨询以及规划应用。这套系统深入嵌入用户决策的各个环节, 提供从产品条款解读, 带病投保辅助判断, 到个性化方案规划及对比的全流程服务。那通过多轮对话不断补全用户信息, 我们可以不仅解决保险条款复杂难懂的痛点, 更显著降低了用户的决策门槛, 提升了咨询的专业性与信任感。那在技术底层, 我们以覆盖数千款产品, 数百条专业数据的保险知识库为核心, 通过针对保险场景优化的领域模型, 精准理解复杂的健康状况与投保规则。通过多智能体的分工协作, 我们将需求理解知识检索与方案生成模块化。那确保了服务的高质量与稳定性。那这套系统将我们的服务能力以及产品化标准化了。那未来我们将继续依托自研技术深化 AI 在精准出达与决策辅助中的应用。巩固我们在智能保险服务领域的领先优势。

Rui Fang: 多谢陈总。我们其实已经有了，我们已经构建了基于多智能体协同的智能服务系统，并已面向消费者推出了智能化的保险咨询以及规划应用。这套系统深入嵌入用户决策的各个环节，提供从产品条款解读、待定投保辅助判断，到个性化方案规划及对比的全流程服务。通过多轮对话不断补全用户信息，我们可以不仅解决保险条款复杂难懂的痛点，更显著降低了用户的决策门槛，提升了咨询的专业性与信任感。在技术底层，我们以覆盖数千款产品、数百条专业数据的保险知识库为核心，通过针对保险场景优化的领域模型，精准理解复杂的健康状况与投保规则。通过多智能体的分工协作，我们将需求理解、知识检索与方案生成模块化，来确保服务的高质量与稳定性。这套系统将我们的服务能力进行产品化、标准化了。未来我们将继续依托自研技术，深化AI在精准回答与决策辅助中的应用，巩固我们在智能保险服务领域的领先优势。

Stella Liu: Yes, absolutely. For example, this quarter, we developed an AI-powered service system based on multi-agent collaboration, and launched an intelligent insurance consultation and planning application for consumers. This system has been deeply embedded across all decision-making stages, providing full process support such as policy interpretation, pre-existing condition assessment, and personalized plan comparison. Through multi-turn conversations that progressively enrich user profiles, we have addressed the pain point of complex policy terms, significantly lowered the barriers to user decision making, and enhanced both professionalism and trust. On the technical side, our core is a structured knowledge system spanning thousands of products and millions of data points, coupled with a domain-specific model optimized for insurance scenarios to precisely understand complex health conditions and underwriting rules. By modularizing user intent comprehension, knowledge retrieval, and plan generation through multi-agent collaboration, we ensure high service quality and consistency.

Rui Fang: Yes, absolutely. For example, this quarter, we developed an AI-powered service system based on multi-agent collaboration, and launched an intelligent insurance consultation and planning application for consumers. This system has been deeply embedded across all decision-making stages, providing full process support such as policy interpretation, pre-existing condition assessment, and personalized plan comparison. Through multi-turn conversations that progressively enrich user profiles, we have addressed the pain point of complex policy terms, significantly lowered the barriers to user decision making, and enhanced both professionalism and trust. On the technical side, our core is a structured knowledge system spanning thousands of products and millions of data points, coupled with a domain-specific model optimized for insurance scenarios to precisely understand complex health conditions and underwriting rules. By modularizing user intent comprehension, knowledge retrieval, and plan generation through multi-agent collaboration, we ensure high service quality and consistency.

Speaker #4: Yes, absolutely. For example, this quarter we developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning application for consumers.

Speaker #4: This system has been deeply embedded across all decision-making stages, providing full process support such as policy interpretation, pre-existing condition assessment, and personalized plan comparison.

Speaker #4: Through multi-term conversations that progressively enrich user profiles, we have addressed the pain point of complex policy terms, significantly lowered the barriers to user decision-making, and enhanced both professionalism and trust.

Speaker #4: On the technical side, our core is a structured knowledge system spanning thousands of products and millions of data points. Coupled with a domain-specific model optimized for insurance scenarios, this allows us to precisely understand complex health conditions and underwriting rules.

Speaker #4: By modularizing user intent comprehension, knowledge retrieval, and plan generation through multi-agent collaboration, we ensure high service quality and consistency. This system has successfully standardized and prototyped our service capabilities.

Stella Liu: This system has successfully standardized and prototyped our service capabilities. Moving forward, we will continue to leverage our proprietary tech to deepen AI application in precision, reach, and decision support, consolidating our leadership in intelligent insurance services.

Rui Fang: This system has successfully standardized and prototyped our service capabilities. Moving forward, we will continue to leverage our proprietary tech to deepen AI application in precision, reach, and decision support, consolidating our leadership in intelligent insurance services.

Speaker #4: Moving forward, we will continue to leverage our proprietary tech to deepen AI application in precision, reach, and decision support, consolidating our leadership in intelligent insurance services.

Speaker #1: Thank you. We will now take our next question from Yuanliao Citics. Please go ahead, Yuan. Your line is open.

Operator 1: Thank you. We will now take our next question from Yuan Liao of Citics. Please go ahead. Yuan, your line is open.

Operator: Thank you. We will now take our next question from Yuan Liao of Citics. Please go ahead. Yuan, your line is open.

Speaker #5: 管理层晚上好, 欢迎接受。感谢接受我的提问。那我的问题是, 那我们当下看到 AI agent 的一个快速发展, 如何去看待这个 agent 时代对我们的商业模式和这个竞争的一个影响? Thanks, management, for taking my questions. Congrats for the strong quarter results. And my question is about the AI agent influence on our business model and the competition landscape.

Liao Yuan: 管理层晚上好，感谢接受我的提问。我的问题是，我们当下看到 AI agent 的一个快速发展，如何去看待这个 agent 时代对我们的商业模式和竞争的影响？Thanks management for taking my questions. Congrats for the strong quarter results. My question is about the AI agent influence on our business model and the competition landscape. How should we think about the impact of the agent era on our business model and competition? Thank you.

Liao Yuan: Thanks management for taking my questions. Congrats for the strong quarter results. My question is about the AI agent influence on our business model and the competition landscape. How should we think about the impact of the agent era on our business model and competition? Thank you.

Speaker #5: So how should we think about the impact of the agent era on our business model and competition? Thank you.

Speaker #3: 那多谢这个问题。其实关于市场关注的 AI agent 的新入口是否能够成为保险销售的主流场景, 我们目前认为还是有待进一步观察吧。那市场主要存在两种销售模式, 一种是通过线上信息流系统触达。那我们这种, 另外一种是通过传统的代理人。那核心逻辑在于我们需要理解代理式 AI 未来如何影响内容消费平台的销售模式, 以及它是否会重塑 SEO 和 GEO 的流量发现分发机制吧。但就元宝而言, 我们的产品主要通过主流的互联网平台进行分销。那在可预见的未来, 这些平台可能依然还是会占据用户大量的时间, 时间的占比。但不过我们确实认为有部分产品未来可能会受到 AI agent 技术的冲击, 比如那些需要用户投入高决策心智或者是决策周期比较长, 建军保费较高的产品, 以及高度依赖主动搜索或者是电商发现渠道的产品。那随着 AI 智能体能力的成熟, 这些领域可能会迎来一些变革。那更重要的是, AI 在信息发现和搜索领域的广泛应用, 本质上是帮助全行业更高效的教育客户。那当消费者能更轻松地理解保险产品时, 大众对商业保险的认知度、信任感以及整体的渗透率都将迎来稳步的提升。

Rui Fang: 多谢这个问题。其实关于市场关注的AI agent等新入口是否能够成为保险销售的主流场景，我们目前认为还是有待进一步观察。市场主要存在两种销售模式，一种是通过线上信息流系统触达，像我们这种，另外一种是通过传统的代理人。核心逻辑在于我们需要理解，代理式AI未来如何影响内容消费平台的销售模式，以及它是否会重塑SEO和GEO的流量发现分发机制。但就元宝而言，我们的产品主要通过主流的互联网平台进行分销。在可预见的未来，这些平台可能依然还是会占据用户大量的时间占比。不过我们确实认为有部分产品未来可能会受到AI agent技术的冲击，比如那些需要用户投入高决策心智，或者是决策周期比较长、进军保费较高的产品，以及高度依赖主动搜索或者是电商发现渠道的产品。随着AI智能体能力的成熟，这些领域可能会迎来一些变革。更重要的是，AI在信息发现和搜索领域的广泛应用，本质上是帮助全行业更高效地教育客户。当消费者能更轻松地理解保险产品时，大众对商业保险的认知度、信任感以及整体的渗透率都将迎来稳步的提升。

Speaker #4: Regarding whether new entry points like AI agents can become mainstream channels for insurance sales, we believe the viability of this scenario remains to be seen.

Stella Liu: Regarding whether new entry points like AI agents can become mainstream channels for insurance sales, we believe the viability of this scenario remains to be seen. There are two methods of serving today. One is online through info systems, and the other is through traditional human agents. The key is to understand how agentic AI will reshape the sales dynamics of content consumption platforms, and whether it will transform SEO or GEO discovery methods. We believe that major internet platforms where we currently distribute our products will continue to command a significant share of user time spent in the foreseeable future. That said, we do believe that products requiring more user mindshare for decision-making, such as higher premium products, which are typically sold through search or e-commerce discovery channels, will potentially be affected by the advent of agentive AI capabilities.

Rui Fang: Regarding whether new entry points like AI agents can become mainstream channels for insurance sales, we believe the viability of this scenario remains to be seen. There are two methods of serving today. One is online through info systems, and the other is through traditional human agents. The key is to understand how agentic AI will reshape the sales dynamics of content consumption platforms, and whether it will transform SEO or GEO discovery methods. We believe that major internet platforms where we currently distribute our products will continue to command a significant share of user time spent in the foreseeable future. That said, we do believe that products requiring more user mindshare for decision-making, such as higher premium products, which are typically sold through search or e-commerce discovery channels, will potentially be affected by the advent of agentive AI capabilities.

Speaker #4: There are two methods of selling today: one is online through infinite assistance, and the other is through traditional human agents. The key is to understand how agentic AI will reshape the sales dynamics of content consumption platforms, and whether it will transform SEO or geo-discovery methods.

Speaker #4: We believe that major internet platforms, where we currently distribute our products, will continue to command a significant share of user time spent in the foreseeable future.

Speaker #4: That said, we do believe that products requiring more user might share for decision-making, such as higher premium products which are typically sold through search or e-commerce discovery channels, will potentially be affected by the advent of agentic AI capabilities.

Speaker #4: More importantly, the widespread use of AI for information discovery and search will better educate consumers about insurance products. This, in turn, will help raise awareness, build trust, and drive the overall adoption of commercial insurance.

Stella Liu: More importantly, the widespread use of AI for information discovery and search will better educate consumers about insurance products. This in turn will help raise awareness, build trust, and drive the overall adoption of commercial insurance.

Rui Fang: More importantly, the widespread use of AI for information discovery and search will better educate consumers about insurance products. This in turn will help raise awareness, build trust, and drive the overall adoption of commercial insurance.

Speaker #1: Thank you. We will now proceed to take our next question from the line of Yingying Xu from Zhe Shan Securities. Please go ahead, Yingying; your line is open.

Operator 2: Thank you. We will now proceed to take our next question from the line of Yingying Xu from Zheshang Securities. Please go ahead, Yingying, your line is open.

Operator: Thank you. We will now proceed to take our next question from the line of Yingying Xu from Zheshang Securities. Please go ahead, Yingying, your line is open.

Yingying Xu: 好，恭喜公司取得的业绩，也感谢给我提问的这个机会。我的问题主要就是关于客户留存和续保率。那除了依靠持续的流量投放来弥补客户流失之外，贵公司目前是否有更有效的客户运营策略，能够在快速转化和用户体验之间取得一个更好的平衡，并进一步提升续保率呢？Thank you for taking my question, and congratulations on the results. My question is about customer retention and renewal rates.

Yingying Xu: Thank you for taking my question, and congratulations on the results. My question is about customer retention and renewal rates. Aside from continuing traffic acquisition, could management share what customer engagement and retention initiatives Yuanbao is currently focusing on to better balance conversion efficiency and user experience, and further improve policy renewal rates? Thank you.

Speaker #6: 好, 恭喜公司取得业绩也感谢给我提问的这个机会。我的问题主要就是关于客户流程和续保率。那除了依靠持续的流量投放来弥补客户流失之外, 那贵公司目前是否有更有效的这个客户运营策略能够在快速转化和用户体验之间能取得一个更好的平衡并进一步提升续保率呢? 嗯, thank you for taking my question and congratulations on the results. My question is about customer retention and renewal rates. Aside from continual traffic acquisition, could management share what customer engagement and retention initiatives Yuanbao is to better balance conversion efficiency and user experience?

Yingying Xu: Aside from continuing traffic acquisition, could management share what customer engagement and retention initiatives Yuanbao is currently focusing on to better balance conversion efficiency and user experience, and further improve policy renewal rates? Thank you.

Speaker #6: And further improve policy renewal rates? Thank you.

Speaker #3: 感谢。其实通过线上获客对我们而言依然非常重要, 因为我们相信国内的商业健康险市场仍然存在一个极大的渗透空间。那我们将持续在创新产品与服务上进行投入, 不断用优化用户体验。那在产品创新上, 我们通过协同保司深度定制, 比如说零免赔额、医疗险多次赔付、重疾险等高获得感的产品, 从源头提升用户的粘性跟价值感。此外, 我们正在持续推出更多衍生服务, 比如以科技能力深度嵌入理赔全流程, 通过引入AI, 我们协助合作保司实现了更高效、更快的理赔响应。这不仅让我们有了更多切实的能向市场传递用户口碑的正面素材, 更重要的是, 它能从根本上增强用户对我们的信任, 而信任正是我们拉动长期续保率的关键基石。那我们坚信, 只要我们持续协同保司在产品上做创新, 并不断去拉高用户对短险价值的认知,

Rui Fang: 感谢。其实通过线上获客对我们而言依然非常重要，因为我们相信国内的商业健康险市场仍然存在一个极大的渗透空间。那我们将持续在创新产品与服务上进行投入，不断优化用户体验。那在产品创新上，我们通过协同保司深度定制，比如说零免赔额、医疗险多次赔付、重疾险等高获得感的产品，从源头提升用户的黏性跟价值感。此外，我们正在持续推出更多衍生服务，比如以科技能力深度嵌入理赔全流程。通过引入AI，我们协助合作保司实现了更高效、更快的理赔响应。这不仅让我们有了更多切实的、能向市场传递用户口碑的正面素材，更重要的是，它能从根本上增强用户对我们的信任，而信任正是我们拉动长期续保率的关键基石。那我们坚信，只要我们持续协同保司在产品上做创新，并不断去拉高用户对短险价值的认知，这些底层的努力最终都会在我们核心业务指标和财报数据上切切实实地反映出来。

Stella Liu: Customer acquisition through online channels remains very important to us because we believe that China's commercial health insurance market remains significantly under-penetrated. We continue to invest in new products and services for our consumers to improve user experience. In terms of product innovation, we collaborated with insurers to deeply customize high-perceived value products such as zero-deductible medical insurance and multi-claim critical illness plans, building user stickiness from the start. Additionally, we are continuously rolling out value-added services, particularly the deep integration of our technology capabilities throughout the entire claims process. By leveraging AI, we have enabled our partner insurers to achieve significantly more efficient and faster reaction times when handling user claims. This not only provides us with tangible, positive user experience stories to share with the market, more importantly, it fundamentally strengthens user trust, which is the cornerstone for improving long-term policy renewal rates.

Rui Fang: Customer acquisition through online channels remains very important to us because we believe that China's commercial health insurance market remains significantly under-penetrated. We continue to invest in new products and services for our consumers to improve user experience. In terms of product innovation, we collaborated with insurers to deeply customize high-perceived value products such as zero-deductible medical insurance and multi-claim critical illness plans, building user stickiness from the start. Additionally, we are continuously rolling out value-added services, particularly the deep integration of our technology capabilities throughout the entire claims process. By leveraging AI, we have enabled our partner insurers to achieve significantly more efficient and faster reaction times when handling user claims. This not only provides us with tangible, positive user experience stories to share with the market, more importantly, it fundamentally strengthens user trust, which is the cornerstone for improving long-term policy renewal rates.

Speaker #4: Customer acquisition through online channels remains very important to us, because we believe that China's commercial health insurance market remains significantly under-penetrated. We continue to invest in new products and services for our consumers.

Speaker #4: To improve user experience, in terms of product innovation, we collaborated with insurers to deeply customize as zero-deductible medical insurance and multi-claim user stickiness from the continuously rolling out value-added services, particularly the deep integration of start.

Speaker #4: our technology capabilities. Additionally, we are Throughout the entire claims process, by leveraging AI, we have enabled our partner insurers to achieve significantly more efficient and faster reaction times when handling user claims.

Speaker #4: This not only provides us with tangible positive user experience stories, to share with the market, but more importantly, it fundamentally strengthens user trust, which is the cornerstone for improving long-term policy renewal rates.

Speaker #4: We believe that our efforts to continually collaborate with insurers to innovate and increase the awareness of the value of short-term commercial insurance policies will lead to improved metrics.

Stella Liu: We believe that our efforts to continually collaborate with insurers to innovate and increase the awareness of the value of short-term commercial insurance policies will lead to improved metrics.

Rui Fang: We believe that our efforts to continually collaborate with insurers to innovate and increase the awareness of the value of short-term commercial insurance policies will lead to improved metrics.

Speaker #1: Thank you. We will now take our next question from the line of Jie Jiesun of Shenwan Hongyuan Securities. Please ask your question. Jie, your line is open.

Operator 2: Thank you. We will now take our next question from the line of Jixi Sun of Shenwan Hongyuan Securities. Please ask your question, Jixi. Your line is open.

Operator: Thank you. We will now take our next question from the line of [Jixi Sun] of Shenwan Hongyuan Securities. Please ask your question, Jixi. Your line is open.

Sun Liqi: 各位领导晚上好，恭喜元保取得了非常亮眼的业绩。我是来自申万宏源证券的分析师孙立琪，感谢给我这次提问的机会。我想请教一下，就是公司此前曾经提到了在主业的计划之上，去做一些创新业务的探索，是否方便分享一下具体布局方向的规划，以及相应的探索预计在什么时候可以有比较明显的成效？

Speaker #7: Good morning, 大家晚上好, 恭喜一季报取得了非常亮眼的业绩。我是来自 Shenwang Hongyuan 证券的分析师孙立奇, 感谢给我这次提问的机会。我想请教一下, 就是公司此前曾经提到了在主业的计划之上去做一些创新业务的探索, 是否方便分享一下具体布局方向的规划, 以及相应的探索预计在什么时候可以有比较明显的成效? This is Jack, it's on from Shenwang Hongyuan Securities. Congratulations on the impressive result of the first quarter of 2026.

Stella Liu: This is Jixi Sun from Shenwan Hongyuan Securities. Congratulations on the impressive results of Q1 2026. As previously mentioned, on top of Yuanbao's core business, the company is planning to explore some innovative initiatives. Could you please share more details on the specific areas and strategic direction of these explorations? When should we expect to see meaningful progress or tangible results from these efforts? Thank you.

[Analyst] (Shenwan Hongyuan Securities): This is [Jixi Sun] from Shenwan Hongyuan Securities. Congratulations on the impressive results of Q1 2026. As previously mentioned, on top of Yuanbao's core business, the company is planning to explore some innovative initiatives. Could you please share more details on the specific areas and strategic direction of these explorations? When should we expect to see meaningful progress or tangible results from these efforts? Thank you.

Speaker #7: As previously mentioned, on top of Yuanbao's core business, the company is planning to explore some innovative initiatives. Could you please share more details on the specific areas and strategic direction of these explorations?

Speaker #7: And when should we expect to see meaningful progress or tangible results from this effort? Thank you.

Rui Fang: 多谢。那我们始终坚持以主业为核心，在此基础上积极探索并评估各类创新业务的机会。不过目前各项探索均未达到我们可披露的阶段，因此我们暂时没有具体的细节可以对外披露。

Speaker #3: 感谢。那我们其实始终坚持以主业为核心, 在此基础上积极探索并评估各类创新业务的机会。不过目前各项探索均未达到我们可披露的阶段, 因此我们暂时没有具体的细节可以对外披露。

Stella Liu: We are always exploring and evaluating innovative and new business while remaining anchored in our core business. However, our current explorations are not yet at a disclosable stage. Therefore, we have no specific details to disclose at this time.

Rui Fang: We are always exploring and evaluating innovative and new business while remaining anchored in our core business. However, our current explorations are not yet at a disclosable stage. Therefore, we have no specific details to disclose at this time.

Speaker #4: We are always exploring and evaluating innovative and new businesses while remaining anchored in our core business. However, our current explorations are not yet at a disclosable stage; therefore, we have no specific details to disclose at this time.

Speaker #1: Thank you. That concludes the question and answer session. I'd like to turn the conference back to management for any additional or closing comments.

Operator 2: Thank you. That concludes the question and answer session. I'd like to turn the conference back to the management for any additional or closing comments.

Operator: Thank you. That concludes the question and answer session. I'd like to turn the conference back to the management for any additional or closing comments.

Speaker #4: Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly. Our presented financial communications.

Stella Liu: Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly or our Piacente Financial Communications. Our contact information for IR in both China and the US can be found in today's press release. Have a great day.

Speaker #4: Our contact information for IR in both China and the US can be found in today's press release. Have a great day.

Operator 2: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

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