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Waterdrop Inc. Releases 2023 Annual Report: Sustained Profitability and Impressive Growth in Innovative Businesses

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Waterdrop Inc. released its 2023 annual report, showcasing sustained profitability and impressive growth in innovative businesses. The company recorded net operating revenue of RMB 2.63 billion, net profit of RMB 167 million, and operating cash flow of RMB 407 million. Waterdrop Insurance Marketplace reported a first-year premium of RMB 7.109 billion, collaborated with 101 insurance companies, and offered 1,357 online insurance products to 115.3 million customers. The company acquired Shenlanbao, developed a large language model 'ShuishouGPT', and ventured into digital clinical trial solutions, achieving 69% revenue growth in 2023.

Waterdrop Inc. ha pubblicato il suo rapporto annuale del 2023, evidenziando una redditività sostenuta e una crescita impressionante nei settori innovativi. La società ha registrato un ricavo operativo netto di 2,63 miliardi di RMB, un utile netto di 167 milioni di RMB e flussi di cassa operativi per 407 milioni di RMB. Waterdrop Insurance Marketplace ha riportato premi annuali per il primo anno di 7,109 miliardi di RMB, ha collaborato con 101 compagnie di assicurazione e offerto 1.357 prodotti assicurativi online a 115,3 milioni di clienti. L'azienda ha acquisito Shenlanbao, sviluppato un grande modello di linguaggio 'ShuishouGPT' e si è lanciata nelle soluzioni per la sperimentazione clinica digitale, registrando una crescita del fatturato del 69% nel 2023.
Waterdrop Inc. ha publicado su informe anual de 2023, mostrando rentabilidad sostenida e impresionante crecimiento en negocios innovadores. La compañía registró ingresos operativos netos de 2.63 mil millones de RMB, un beneficio neto de 167 millones de RMB y un flujo de caja operativo de 407 millones de RMB. Waterdrop Insurance Marketplace reportó una prima en el primer año de 7.109 mil millones de RMB, colaboró con 101 compañías de seguros, y ofreció 1,357 productos de seguros en línea a 115.3 millones de clientes. La empresa adquirió Shenlanbao, desarrolló un gran modelo de lenguaje 'ShuishouGPT', y se aventuró en soluciones de ensayos clínicos digitales, logrando un 69% de crecimiento en ingresos en 2023.
워터드랍 인크가 2023년 연간 보고서를 발표하여 지속 가능한 수익성과 혁신적인 비즈니스에서 인상적인 성장을 보여주었습니다. 회사는 순영업 수익 26억 3천만 위안, 순이익 1억 6700만 위안, 영업 현금 흐름 4억 700만 위안을 기록했습니다. 워터드랍 보험 마켓플레이스는 첫 해 프리미엄으로 71억 90만 위안을 보고하고, 101개 보험사와 협력하며 1357개의 온라인 보험 상품을 1억 1530만 고객에게 제공하였습니다. 회사는 신란바오를 인수하고 대규모 언어 모델 '수수호GPT'를 개발하였으며, 디지털 임상 시험 솔루션 분야로 진출하여 2023년에 69%의 매출 성장을 달성하였습니다.
Waterdrop Inc. a publié son rapport annuel pour 2023, mettant en évidence une rentabilité soutenue et une croissance impressionnante dans les entreprises innovantes. La société a enregistré un revenu opérationnel net de 2,63 milliards de RMB, un bénéfice net de 167 millions de RMB et un flux de trésorerie opérationnel de 407 millions de RMB. Le marché des assurances Waterdrop a rapporté une prime de première année de 7,109 milliards de RMB, a collaboré avec 101 compagnies d'assurances, et a offert 1 357 produits d'assurance en ligne à 115,3 millions de clients. L'entreprise a acquis Shenlanbao, développé un grand modèle de langue 'ShuishouGPT', et s'est aventurée dans les solutions d'essais cliniques numériques, réalisant une croissance de revenus de 69% en 2023.
Waterdrop Inc. hat seinen Jahresbericht 2023 veröffentlicht, der eine anhaltende Rentabilität und beeindruckendes Wachstum in innovativen Geschäftsbereichen zeigt. Das Unternehmen verzeichnete einen Nettobetriebserlös von 2,63 Milliarden RMB, einen Nettogewinn von 167 Millionen RMB und einen Betriebscashflow von 407 Millionen RMB. Waterdrop Insurance Marketplace meldete eine Erstjahresprämie von 7,109 Milliarden RMB, arbeitete mit 101 Versicherungsunternehmen zusammen und bot 1.357 Online-Versicherungsprodukte für 115,3 Millionen Kunden an. Das Unternehmen übernahm Shenlanbao, entwickelte das Großsprachmodell 'ShuishouGPT' und expandierte in digitale Lösungen für klinische Studien, was zu einem Umsatzwachstum von 69% im Jahr 2023 führte.
Positive
  • Waterdrop Inc. reported sustained profitability with net operating revenue of RMB 2.63 billion and net profit of RMB 167 million in 2023.

  • The company achieved eight consecutive quarters of profitability since the first quarter of 2022.

  • Waterdrop Insurance Marketplace had a first-year premium of RMB 7.109 billion, with total revenue of RMB 2.34 billion and operating profit of RMB 528 million in 2023.

  • Waterdrop acquired Shenlanbao, enhancing its long-term insurance sales capabilities.

  • The company developed 'ShuishouGPT', a large language model, to improve operational efficiency in insurance business functions.

  • Waterdrop ventured into digital clinical trial solutions, partnering with pharmaceutical companies and CROs, achieving strong revenue growth of 69% in 2023.

Negative
  • Although the annual report highlights positive growth, there might be risks associated with the digital clinical trial solutions segment, including regulatory challenges and competition.

  • Despite impressive revenue figures, the company's sustainability in maintaining profitability over the long term may be subject to market fluctuations and changing consumer preferences.

Insights

Waterdrop Inc.'s release of their annual report indicates a robust financial health, highlighted by their consistent profitability over eight consecutive quarters. Their net operating revenue of RMB 2.63 billion coupled with a net profit of RMB 167 million illustrates efficient cost management and revenue generation. The substantial cash reserves of RMB 3.393 billion offer financial flexibility and represent a strong liquidity position. Investors should note the company's operating cash flow of RMB 407 million, which reflects its ability to generate cash from its core business operations. The share repurchase initiative and special cash dividend of approximately $15 million indicate confidence in the company's future and a commitment to return value to shareholders.

From an investment perspective, aggressive share repurchase activities could suggest undervaluation from management's perspective or a means to enhance earnings per share. The attractive dividend payout could appeal to income-focused investors, but the sustainability of such rewards is contingent on continued financial performance and strategic growth initiatives. Waterdrop's acquisition of Shenlanbao posits strategic expansion and could present synergistic opportunities to bolster its insurance segment. However, investors should remain vigilant about the costs and integration risks associated with such acquisitions.

The reported first-year premiums (FYP) of RMB 7.109 billion in Waterdrop Insurance Marketplace is indicative of solid sales momentum in acquiring new insurance policies. By offering 1,357 various online insurance products and collaborating with 101 insurance companies, Waterdrop has positioned itself as a diverse platform catering to extensive consumer needs. The focus on personalized insurance products, backed by data analysis and actuarial expertise, signifies a competitive edge in a market that favors customization. The introduction of the 'Triple Excellence Service' initiative is poised to enhance customer loyalty and attract new customers by emphasizing premium service, product quality and efficient claims processing.

The implementation of a large language model (LLM), 'ShuishouGPT', is a testament to Waterdrop's commitment to technological innovation. Through improving operational efficiencies in consultation, underwriting and claims processing, Waterdrop may be able to reduce costs and improve margins. However, the effectiveness of these AI-driven improvements will need to be monitored for their impact on customer satisfaction and operational efficiency over time.

Waterdrop's foray into digital clinical trial solutions demonstrates its strategic intent to diversify and tap into the growing market of clinical research. The collaboration with 204 pharmaceutical companies and Contract Research Organizations (CROs) by 2023 and the recruitment of over 3,300 patients for clinical trial programs, position the company as a significant player in this niche. The segment's strong annual revenue growth of 69% to RMB 101 million suggests that this could become a substantial revenue stream for the company. This diversification strategy could mitigate risk by reducing dependency on the core insurance business.

The Waterdrop Crowdfunding platform's continued success in providing emergency aid is not only a corporate social responsibility triumph but also strengthens the brand's reputation. The expansion of the offline advisory network may enhance service experience and foster community trust, which can indirectly contribute to the company's bottom line. As an investor, one should evaluate the potential long-term benefits against the costs of maintaining and expanding these services.

BEIJING, April 29, 2024 /PRNewswire/ -- On April 25, 2024, Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare service with a positive social impact, released its annual report on Form 20-F for the fiscal year ending December 31, 2023. For 2023, the Company recorded a net operating revenue of RMB 2.63 billion and a net profit of RMB 167 million, respectively. As of December 31, 2023, Waterdrop had combined cash and cash equivalents and short-term investments of RMB 3.393 billion, with an operating cash flow of approximately RMB 407 million. Since the first quarter of 2022, the Company has achieved profitability for eight consecutive quarters. The annual report provides a more detailed disclosure of Waterdrop's operations in 2023.

In 2023, the Company continued to carry out its share repurchase program. And in the first quarter of 2024, Waterdrop collectively repurchased approximately 41.27 million shares of American Depositary Shares (ADS) from the public market. In March 2024, our board of directors also approved a special cash dividend of approximately US$15 million.

For 2023, Waterdrop Insurance Marketplace, our insurance segment, reported a first-year premiums (FYP) of RMB 7.109 billion. Total revenue for the segment reached RMB 2.34 billion with an operating profit of RMB 528 million. By the end of 2023, the Company collaborated with 101 insurance companies and offered 1,357 various online insurance products to 115.3 million customers, covering short-term and long-term health insurance and life insurance categories. Most of the offerings are customized products developed in collaboration with insurance providers, tailored to meet the specific needs of consumers and backed by our robust data analysis and actuarial expertise.

To enhance user experience, Waterdrop Insurance Marketplace brought in experienced insurance consultants to provide personalized one-on-one consultation services. Our consultants have extensive expertise in assessing individual customer needs, providing tailored guidance, and assisting customers in selecting the optimal insurance solutions. Since early 2021, Waterdrop Insurance Marketplace has undertaken an initiative to integrate its online and offline insurance operations to enhance broker capabilities and improve customer experience.

To further our commitment to service excellence, Waterdrop recently rolled out the "Triple Excellence Service" initiative, which focuses on providing premium service, high-quality products, and efficient claim processing. This initiative spans the full spectrum of insurance services, covering policy planning, product customization, and claims service to streamline the insurance process and improve overall customer satisfaction.

In June 2023, Waterdrop acquired Shenlanbao, a domestic online insurance brokerage firm known for providing services including insurance education, product reviews, one-on-one insurance planning, and policy management. The strategic acquisition will help Waterdrop meet the vast insurance market demand and enhance its long-term insurance sales capabilities.

Meanwhile, Waterdrop remains dedicated to improving customer service and consistently invests in technological innovations. We developed and tested a large language model (LLM) called "ShuishouGPT", which has been in beta use, to apply across range of insurance business functions including consultation, underwriting, claims processing, and customer service. The new application has already meaningfully increased our operational efficiency and reinforced the robustness of the overall insurance service chain.

In 2023, Waterdrop continued to fulfill its mission in providing emergency aid through Waterdrop Crowdfunding platform. As of December 31, 2023, approximately 450 million individuals contributed a total of about RMB 62.6 billion through the platform to aid over 3.1 million patients. To enhance the service experience, we also established online and offline advisory teams. By the end of 2023, the offline advisory network had extended its reach to 225 cities across 30 provinces nationwide, ensuring broad and effective service coverage.

The Company has also ventured into digital clinical trial solutions, covering Phase I to III clinical trials across several therapeutic areas including oncology, chronic diseases, and some rare diseases. We have partnered with 204 pharmaceutical companies and Contract Research Organizations (CROs) by 2023, successfully recruiting over 3,300 patients for more than 500 clinical trial programs. The segment experienced strong annual revenue growth of 69% to RMB 101 million in 2023.

In an earlier research notes by Goldman Sachs, the investment bank maintained a "Buy" rating on Waterdrop, with a 12-month target price of $2.4, demonstrating its positive view of the prospects of the Company.

 

Cision View original content:https://www.prnewswire.com/news-releases/waterdrop-inc-releases-2023-annual-report-sustained-profitability-and-impressive-growth-in-innovative-businesses-302130870.html

SOURCE Waterdrop Inc.

FAQ

What is the net profit recorded by Waterdrop Inc. in 2023?

Waterdrop Inc. recorded a net profit of RMB 167 million in 2023.

How many online insurance products were offered by Waterdrop Insurance Marketplace in 2023?

Waterdrop Insurance Marketplace offered 1,357 online insurance products to 115.3 million customers in 2023.

What is the name of the large language model developed by Waterdrop Inc.?

Waterdrop Inc. developed a large language model called 'ShuishouGPT'.

What is the revenue growth percentage for Waterdrop's digital clinical trial solutions segment in 2023?

Waterdrop's digital clinical trial solutions segment experienced strong annual revenue growth of 69% in 2023.

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