EX-99.1 2 tm2423346d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Waterdrop Inc. Announces Second Quarter 2024 Unaudited Financial Results and a Special Cash Dividend

 

BEIJING, Sept. 4, 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, today announced its unaudited financial results for the three and six months ended June 30, 2024 and a special cash dividend.

 

Financial and Operational Highlights for the Second Quarter of 2024

 

●Substantial growth in profit and positive operating cash flow: In the second quarter of 2024, net profit attributable to our ordinary shareholders reached RMB88.3 million, representing a year-over-year growth of 306.9%. As of June 30, 2024, we continued to generate positive operating cash flow during the second quarter of 2024.

 

●Resilient revenue amidst industry challenges: For the second quarter of 2024, the first-year premiums ("FYP") generated through our insurance business amounted to RMB1,778.6 million (US$244.7 million), representing a decrease of 19.0% year over year. Net operating revenue was RMB676.2 million (US$93.0 million), representing a decrease of 0.4% year over year.

 

●Improving margin of insurance segment: For the second quarter of 2024, the operating profit margin of insurance business increased year over year to 21.4%, compared with 16.7% for the same quarter of 2023.

 

●Broadened crowdfunding coverage: As of June 30, 2024, around 461 million people cumulatively had donated an aggregate of RMB65.1 billion to 3.25 million patients through Waterdrop Medical Crowdfunding.

 

●Digital clinical trial services in good progress: As of June 30, 2024, the Company had cumulatively enrolled nearly 8,600 patients into 1,050 clinical trial programs through the E-Find Platform.

 

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, “During the second quarter of 2024, we delivered sound results in profitability. The quarterly net profit attributable to our ordinary shareholders reached RMB88.3 million, representing a significant year-over-year growth of 306.9%.

 

Our insurance business has shown sequential developments with FYP increasing by 1.4% quarter-over-quarter. We have continually improved online traffic conversion capabilities and efficiency, driving the number of new users to grow at 15.8%. At the same time, we have effectively sustained the policy renewal rate at high level.

 

Committed to investment in technology, we further piloted our Shuishou large language model, known as "Waterdrop Guardian", in multiple service scenarios covering medical, critical illness, and auto insurance categories. During the quarter, the Company initiated a strategic cooperation with a property & casualty (P&C) insurer. This is the first time we export a customized solution of non-life insurance and we look forward to empowering more industry partners with AI solutions.

 

We continually iterate service and business processes in medical crowdfunding to address user pain points. For instance, in regions populated by ethnic minorities, our platform now supports bilingual fundraising, aiding in the spread of cases within local communities and bolstered by AI-assisted bilingual case verification to minimize fraud.

 

During this quarter, our healthcare-related business maintained its growth, realizing a quarter-over-quarter growth of 4.1%. We collaborated with a total of 185 pharmaceutical companies and contract research organizations (“CROs”). Moreover, we enrolled more than 820 patients and initiated services for 88 new programs during the second quarter of 2024. We stay focused on digitalization trends in clinical trial and multichannel marketing solutions to serve a broader client base from this angle.

 

We are grateful for the ongoing support of our shareholders and investors, and prioritize shareholder interests and investor returns. The Company has actively carried out share repurchases for three consecutive years, and our board has recently approved a new annual repurchase plan. The repurchased shares will continue to be used in employee share incentive plans.

 

In addition, we also completed our first special cash dividend in the past quarter. We are pleased to announce that, with the board approval, the Company will soon start the second special cash dividend of approximately US$7.5 million.”

 

1

 

 

Financial Results for the Second Quarter of 2024

 

Operating revenue, net

 

Net operating revenue for the second quarter of 2024 decreased by 0.4% year over year to RMB676.2 million (US$93.0 million) from RMB678.7 million for the same period of 2023. On a quarter-over-quarter basis, net operating revenue decreased by 4.1%. Net operating revenue generated by Shenlanbao1 for the second quarter of 2024 was RMB40.4 million (US$5.6 million).

 

·Insurance-related income includes insurance brokerage income and technical service income. Insurance brokerage income represents brokerage commissions earned from insurance companies. Technical service income is derived from providing technical services including customer relationship maintenance, customer complaint management, claim review, and user referral services, among other things, to insurance companies, insurance brokers, and agency companies. Our insurance-related income amounted to RMB573.8 million (US$79.0 million) in the second quarter of 2024, representing a decrease of 4.0% year over year from RMB597.4 million for the second quarter of 2023, which was mainly due to the decrease in FYP. On a quarter-over-quarter basis, insurance-related income decreased by 5.4%.

 

·Crowdfunding service fees represent the service income earned when patients successfully withdraw the proceeds from their crowdfunding campaigns. Our role is to operate the Waterdrop Medical Crowdfunding platform to provide crowdfunding related services through the internet, enabling patients with significant medical bills to seek help from caring hearts through technology (the “medical crowdfunding services”). Our medical crowdfunding services generally consist of providing technical and internet support, managing, reviewing and supervising the crowdfunding campaigns, providing comprehensive risk management and anti-fraud measures, and facilitating the collection and transfer of the funds. For the second quarter of 2024, we generated RMB69.3 million (US$9.5 million) in service fees, representing an increase of 55.2% year over year from RMB44.7 million for the second quarter of 2023. On a quarter-over-quarter basis, crowdfunding service fees increased by 2.9%.

 

·We are expanding the healthcare-related services, including digital clinical trial solution and digital multichannel marketing solution. Digital clinical trial solution income represents the service income earned from our customers mainly including biopharmaceutical companies and leading biotechnology companies. We match qualified and suitable patients for enrollment in clinical trials for our customers and generate digital clinical trial solution revenue for successful matches and we typically charge our customers a fixed unit price per successful match. Digital multichannel marketing solution income is derived from life science and healthcare companies. Focusing on the needs of our customers, we provide comprehensive digital marketing solutions around the whole life cycle of products through integrated services such as patient screening, medication management, doctor-patient services, innovative payment methods, and channel marketing. For the second quarter of 2024, our healthcare-related income amounted to RMB26.4 million (US$3.6 million), representing a decrease of 17.0% from RMB31.8 million in the same period of 2023. On a quarter-over-quarter basis, healthcare-related income increased by 4.2%.

 

Operating costs and expenses

 

Operating costs and expenses decreased by 13.4% year over year to RMB623.8 million (US$85.8 million) for the second quarter of 2024. On a quarter-over-quarter basis, operating costs and expenses decreased by 5.2%. Operating costs and expenses from Shenlanbao1 for the second quarter of 2024 were RMB57.4 million (US$7.9 million).

 

·Operating costs decreased by 4.2% year over year to RMB319.1 million (US$43.9 million) for the second quarter of 2024, as compared with RMB333.1 million for the second quarter of 2023, which was primarily driven by (i) a decrease of RMB12.9 million in costs of referral and service fees, (ii) a decrease of RMB8.6 million in the costs for patient recruitment consultants team, partially offset by (iii) an increase of RMB11.5 million in personnel costs mainly due to the consolidation of the financial results of Shenlanbao which incurred personnel costs of RMB16.9 million. On a quarter-over-quarter basis, operating costs decreased by 3.7% from RMB331.2 million, primarily due to a decrease of RMB9.9 million in costs of referral and service fees.

 

·Sales and marketing expenses decreased by 23.0% year over year to RMB157.4 million (US$21.7 million) for the second quarter of 2024, as compared with RMB204.5 million for the same quarter of 2023. The decrease was primarily due to (i) a decrease of RMB38.0 million in marketing expenses to third-party traffic channels, and (ii) a decrease of RMB33.2 million in personnel costs and share-based compensation expenses, partially offset by (iii) the consolidation of the financial results of Shenlanbao which incurred sales and marketing expenses of RMB30.1 million. On a quarter-over-quarter basis, sales and marketing expenses decreased by 13.6% from RMB182.1 million, primarily due to (i) a decrease of RMB14.4 million in marketing expenses to third-party traffic channels, (ii) a decrease of RMB4.9 million in sales and marketing personnel costs and share-based compensation expenses, and (iii) a decrease of RMB2.7 million in outsourced sales and marketing service fees to third parties

 

1We started to consolidate the financial results of Shenzhen Cunzhen Qiushi Technology Co., Ltd. and its subsidiaries (collectively, “Cunzhen Qiushi”, also known as “Shenlanbao”) in the third quarter of 2023.

 

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·General and administrative expenses decreased by 2.1% year over year to RMB94.0 million (US$12.9 million) for the second quarter of 2024, compared with RMB96.0 million for the same quarter of 2023. The year-over-year variance was due to (i) a decrease of RMB5.5 million in personnel costs and share-based compensation expenses, (ii) a decrease of RMB8.4 million in professional service fees, partially offset by (iii) an increase of RMB12.6 million allowance for doubtful accounts. On a quarter-over-quarter basis, general and administrative expenses increased by 5.6% from RMB89.0 million, due to (i) an increase of RMB8.0 million allowance for doubtful accounts, partially offset by (ii) a decrease of RMB1.7 million in professional service fees.

 

·Research and development expenses decreased by 38.5% year over year to RMB53.3 million (US$7.3 million) for the second quarter of 2024, compared with RMB86.7 million for the same period of 2023. The decrease was primarily due to a decrease of RMB35.3 million in personnel costs and share-based compensation expenses, partially offset by the consolidation of the financial results of Shenlanbao. On a quarter-over-quarter basis, research and development expenses decreased by 4.8% from RMB56.0 million, which was mainly due to a decrease of RMB2.8 million in research and development personnel costs and share-based compensation expenses.

 

Operating profit for the second quarter of 2024 was RMB52.4 million (US$7.2 million), as compared with an operating loss of RMB41.6 million for the second quarter of 2023 and an operating profit of RMB46.4 million for the first quarter of 2024.

 

Interest income for the second quarter of 2024 was RMB37.5 million (US$5.2 million), as compared with RMB37.6 million for the second quarter of 2023 and RMB39.8 million for the first quarter of 2024. The decrease was primarily due to the decrease in our short-term and long-term investments.

 

Income tax expense for the second quarter of 2024 was RMB7.0 million (US$1.0 million), as compared with an income tax benefit of RMB10.5 million for the second quarter of 2023 and an income tax expense of RMB8.6 million for the first quarter of 2024.

 

Net profit attributable to the Company’s ordinary shareholders for the second quarter of 2024 was RMB88.3 million (US$12.1 million), as compared with RMB21.7 million for the same period of 2023, and RMB80.6 million for the first quarter of 2024.

 

Adjusted net profit attributable to the Company’s ordinary shareholders (non-GAAP2) for the second quarter of 2024 was RMB108.7 million (US$15.0 million), as compared with RMB50.3 million for the same period of 2023, and RMB98.4 million for the first quarter of 2024.

 

Cash and cash equivalents and short-term investments

 

As of June 30, 2024, the Company had combined cash and cash equivalents and short-term investments of RMB2,933.3 million (US$403.6 million), as compared with RMB3,393.4 million as of December 31, 2023.

 

Share Repurchase Programs

 

Pursuant to the share repurchase programs launched in September 2021, September 2022 and September 2023, respectively, we had cumulatively repurchased approximately 49.3 million ADSs from the open market with cash for a total consideration of over US$100.4 million as of August 31, 2024.

 

The board of the directors of the Company (the “Board”) has approved a new share repurchase program whereby the Company is authorized to repurchase its own ordinary shares in the form of American depository shares with an aggregate value of up to US$50 million during the 12-month period through September 9, 2025. The Company expects to fund the repurchase out of its existing cash balance. The Company’s proposed repurchase may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Board will review the share repurchase program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program.

 

Special Cash Dividend

 

The Board has approved a special cash dividend of US$0.02 per ADS or US$0.002 per ordinary share to shareholders of record as of the close of business on October 11, 2024. The payment date is expected to be on or around November 5, 2024 for holders of ordinary shares and on or around November 8, 2024 for holders of ADSs.

 

2See the sections entitled “Non-GAAP Financial Measure” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this announcement.

 

3

 

 

Supplemental Information

 

We organize and report our business in three operating segments:

 

·Insurance, which mainly includes Waterdrop Insurance Marketplace, Shenlanbao Insurance Marketplace and technical support service;

 

·Crowdfunding, which mainly includes Waterdrop Medical Crowdfunding; and

 

·Others, which mainly include Digital Clinical Trial Solution and other new initiatives.

 

The table below sets forth the segment operating results, with the six-month comparative figures retrospectively adjusted to conform to this presentation.

 

   For the Three Months Ended   For the Six Months Ended 
   June 30, 2023   March 31, 2024   June 30, 2024   June 30, 2023*   June 30, 2024 
   RMB   RMB   RMB   USD   RMB   RMB   USD 
    (All amounts in thousands) 
Operating revenue, net                                   
Insurance**   597,437    606,777    573,832    78,962    1,133,780    1,180,609    162,457 
Crowdfunding   44,677    67,350    69,323    9,539    86,699    136,673    18,807 
Others   36,586    30,573    33,001    4,541    64,386    63,574    8,748 
Total consolidated operating revenue, net   678,700    704,700    676,156    93,042    1,284,865    1,380,856    190,012 
Operating profit/(loss)                                   
Insurance**   99,759    129,163    122,955    16,919    254,714    252,118    34,693 
Crowdfunding   (64,131)   (32,237)   (22,936)   (3,156)   (125,265)   (55,173)   (7,592)
Others   (47,877)   (31,432)   (27,450)   (3,778)   (84,444)   (58,882)   (8,103)
Total segment operating (loss)/profit   (12,249)   65,494    72,569    9,985    45,005    138,063    18,998 
Unallocated item***   (29,393)   (19,130)   (20,205)   (2,780)   (76,319)   (39,335)   (5,412)
Total consolidated operating (loss)/profit   (41,642)   46,364    52,364    7,205    (31,314)   98,728    13,586 
Total other income   52,835    42,781    38,366    5,280    89,606    81,147    11,166 
Profit before income tax   11,193    89,145    90,730    12,485    58,292    179,875    24,752 
Income tax benefit/(expense)   10,504    (8,588)   (7,026)   (967)   13,130    (15,614)   (2,149)
Net profit   21,697    80,557    83,704    11,518    71,422    164,261    22,603 

 

* Staring from the second quarter of 2023, our chief operating decision maker starts to manage the business by three operating segments and assess the performance and allocate resources under the new operating segment structure. The six-month comparative figures were retrospectively adjusted to conform to this presentation.
** The Company started to consolidate the financial results of Shenlanbao since July 4, 2023 and reported the results of Shenlanbao under the Insurance segment.
*** The share-based compensation represents an unallocated item in the segment information because our management does not consider this as part of the segment operating performance measure.

 

Exchange Rate

 

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD" or "US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 2024 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

 

Non-GAAP Financial Measure

 

The Company uses non-GAAP financial measure, adjusted net profit attributable to our ordinary shareholders, in evaluating the Company's operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profit attributable to our ordinary shareholders excluding share-based compensation expense attributable to our ordinary shareholders and foreign currency exchange gain or losses. Such adjustments have no impact on income tax.

 

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The non-GAAP financial measure is not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measure has limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider it in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Investors are encouraged to review the Company's historical non-GAAP financial measure to the most directly comparable GAAP measure. Adjusted net profit attributable to our ordinary shareholders presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measure differently, limiting its usefulness as a comparative measure to our data.

 

The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance.

 

For more information on the non-GAAP financial measure, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

Safe Harbor Statement

 

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. Waterdrop may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Waterdrop's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Waterdrop's mission, goals and strategies; Waterdrop's future business development, financial condition and results of operations; the expected growth of the insurance, medical crowdfunding and healthcare industry in China; Waterdrop's expectations regarding demand for and market acceptance of our products and services; Waterdrop's expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance, medical crowdfunding and healthcare industry. Further information regarding these and other risks is included in Waterdrop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Waterdrop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

Conference Call Information

 

Waterdrop's management team will hold a conference call on September 4, 2024 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time on the same day) to discuss the financial results. Dial-in details for the earnings conference call are as follows:

 

International: 1-412-317-6061
United States Toll Free: 1-888-317-6003
Hong Kong Toll Free: 800-963976
Hong Kong: 852-58081995
Mainland China: 4001-206115
Chinese Line (Mandarin) Entry Number: 9073979
English Interpretation Line (Listen-only Mode) Entry Number: 6371615

 

Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call.

 

Telephone replays will be accessible two hours after the conclusion of the conference call until September 11, 2024 by dialing the following numbers:

 

United States Toll Free: 1-877-344-7529
International: 1-412-317-0088
Chinese Line Access Code: 7243413
English Interpretation Line Access Code: 8969523

 

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.waterdrop-inc.com/.

 

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About Waterdrop Inc.

 

Waterdrop Inc. (NYSE: WDH) is a leading technology platform dedicated to insurance and healthcare service with a positive social impact. Founded in 2016, with the comprehensive coverage of Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding, Waterdrop aims to bring insurance and healthcare service to billions through technology. For more information, please visit www.waterdrop-inc.com.

 

For investor inquiries, please contact

Waterdrop Inc.

IR@shuidi-inc.com

 

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WATERDROP INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, unless otherwise noted)

 

   As of 
   December 31, 2023   June 30, 2024 
   RMB   RMB   USD 
Assets            
Current assets               
Cash and cash equivalents   396,905    719,036    98,943 
Restricted cash   577,121    507,151    69,786 
Short-term investments   2,996,527    2,214,227    304,688 
Accounts receivable, net   693,110    718,002    98,800 
Current contract assets   572,871    611,290    84,116 
Amount due from related parties   65    169    23 
Prepaid expense and other assets   189,846    194,769    26,801 
Total current assets   5,426,445    4,964,644    683,157 
Non-current assets               
Non-current contract assets   134,383    154,745    21,294 
Property, equipment and software, net   33,878    30,729    4,228 
Intangible assets, net   177,407    173,635    23,893 
Long-term investments   211,758    581,813    80,060 
Right of use assets, net   59,851    63,580    8,749 
Deferred tax assets   24,190    31,279    4,304 
Goodwill   80,751    80,751    11,112 
Total non-current assets   722,218    1,116,532    153,640 
Total assets   6,148,663    6,081,176    836,797 
                
Liabilities, Mezzanine Equity and Shareholders’ Equity               
Current liabilities               
Amount due to related parties   9,509    10,031    1,380 
Insurance premium payables   591,953    521,272    71,729 
Accrued expenses and other current liabilities   597,684    651,874    89,701 
Short-term loans   137,557    -    - 
Current lease liabilities   32,908    37,246    5,125 
Total current liabilities   1,369,611    1,220,423    167,935 
Non-current liabilities               
Non-current lease liabilities   27,293    26,462    3,641 
Deferred tax liabilities   73,305    95,592    13,154 
Total non-current liabilities   100,598    122,054    16,795 
Total liabilities   1,470,209    1,342,477    184,730 
                
Mezzanine Equity               
Redeemable non-controlling interests   92,760    88,099    12,123 
                
Shareholders' equity               
Class A ordinary shares   112    112    15 
Class B ordinary shares   27    27    4 
Treasury stock   (12)   (15)   (2)
Additional paid-in capital   7,003,423    6,860,770    944,073 
Accumulated other comprehensive income   144,107    182,747    25,147 
Accumulated deficit   (2,561,963)   (2,393,041)   (329,293)
Total shareholders' equity   4,585,694    4,650,600    639,944 
Total liabilities, mezzanine equity and shareholders' equity   6,148,663    6,081,176    836,797 

 

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WATERDROP INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(All amounts in thousands, except for share and per share data, or otherwise noted)

 

   For the Three Months Ended   For the Six Months Ended 
   June 30, 2023   March 31, 2024   June 30, 2024   June 30, 2023   June 30, 2024 
   RMB   RMB   RMB   USD   RMB   RMB   USD 
Operating revenue, net   678,700    704,700    676,156    93,042    1,284,865    1,380,856    190,012 
Operating costs and expenses(i)                                   
Operating costs   (333,140)   (331,243)   (319,101)   (43,910)   (581,123)   (650,344)   (89,490)
Sales and marketing expenses    (204,548)   (182,146)   (157,413)   (21,661)   (377,949)   (339,559)   (46,725)
General and administrative expenses   (95,997)   (88,961)   (93,978)   (12,932)   (191,795)   (182,939)   (25,173)
Research and development expenses   (86,657)   (55,986)   (53,300)   (7,334)   (165,312)   (109,286)   (15,038)
Total operating costs and expenses   (720,342)   (658,336)   (623,792)   (85,837)   (1,316,179)   (1,282,128)   (176,426)
Operating (loss)/profit   (41,642)   46,364    52,364    7,205    (31,314)   98,728    13,586 
Other income                                   
Interest income   37,618    39,804    37,510    5,162    68,494    77,314    10,639 
Foreign currency exchange gain/(loss)   838    1,514    (444)   (61)   1,120    1,070    147 
Others, net   14,379    1,463    1,300    179    19,992    2,763    380 
Profit before income tax   11,193    89,145    90,730    12,485    58,292    179,875    24,752 
Income tax benefit/(expense)   10,504    (8,588)   (7,026)   (967)   13,130    (15,614)   (2,149)
Net profit   21,697    80,557    83,704    11,518    71,422    164,261    22,603 
Net loss attributable to mezzanine equity classified as non-controlling interests shareholders   -    (75)   (4,586)   (631)   -    (4,661)   (641)
Net profit attributable to ordinary shareholders   21,697    80,632    88,290    12,149    71,422    168,922    23,244 
Other comprehensive income:                                   
Foreign currency translation adjustment, net of tax   64,434    25,143    13,497    1,857    67,820    38,640    5,317 
Unrealized loss on available for sale investments, net of tax   (3,508)   -    -    -    (1,551)   -    - 
Total comprehensive income   82,623    105,700    97,201    13,375    137,691    202,901    27,920 
Total comprehensive loss attributable to mezzanine equity classified as non-controlling interests shareholders   -    (75)   (4,586)   (631)   -    (4,661)   (641)
Total comprehensive income attributable to ordinary shareholders   82,623    105,775    101,787    14,006    137,691    207,562    28,561 
Weighted average number of ordinary shares used in computing net profit per share                                   
Basic   3,795,521,186    3,696,619,172    3,660,589,600    3,660,589,600    3,831,316,817    3,678,604,386    3,678,604,386 
Diluted   3,949,592,050    3,756,462,107    3,734,346,444    3,734,346,444    3,988,673,677    3,745,404,276    3,745,404,276 
Net profit per share attributable to ordinary shareholders                                   
Basic   0.01    0.02    0.02    0.00    0.02    0.05    0.01 
Diluted   0.01    0.02    0.02    0.00    0.02    0.05    0.01 

 

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(i)Share-based compensation expenses are included in the operating costs and expenses as follows.

 

   For the Three Months Ended   For the Six Months Ended 
   June 30, 2023   March 31, 2024   June 30, 2024   June 30, 2023   June 30, 2024 
   RMB   RMB   RMB   USD   RMB   RMB   USD 
Sales and marketing expenses   (7,888)   (1,820)   (1,320)   (181)   (24,417)   (3,140)   (432)
General and administrative expenses   (18,122)   (14,327)   (16,285)   (2,241)   (44,582)   (30,612)   (4,212)
Research and development expenses   (3,383)   (2,983)   (2,600)   (358)   (7,320)   (5,583)   (768)
Total   (29,393)   (19,130)   (20,205)   (2,780)   (76,319)   (39,335)   (5,412)

 

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WATERDROP INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, unless otherwise noted)

 

   For the Three Months Ended   For the Six Months Ended 
   June 30, 2023   March 31, 2024   June 30, 2024   June 30, 2023   June 30, 2024 
   RMB   RMB   RMB   USD   RMB   RMB   USD 
Net profit attributable to the Company’s ordinary shareholders   21,697    80,632    88,290    12,149    71,422    168,922    23,244 
Add:                                   
Share-based compensation expense attributable to the Company’s ordinary shareholders   29,393    19,260    20,015    2,754    76,319    39,274    5,404 
Foreign currency exchange (gain)/loss   (838)   (1,514)   444    61    (1,120)   (1,070)   (147)
Adjusted net profit attributable to the Company’s ordinary shareholders   50,252    98,378    108,749    14,964    146,621    207,126    28,501 

 

 

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