The Zhitong Finance App learned that on March 26, Shuidi (WDH.US) announced the unaudited results report for the fourth quarter and full year of 2023 as of December 31, 2023. In the fourth quarter of 2023, Shuidi's net revenue was 659 million yuan, and net profit was 59.06 million yuan. Profit increased 60.7% month-on-month, and achieved profit for 8 consecutive quarters. Looking at the full year of 2023, net operating income was 2,631 million yuan, and net profit attributable to mother was 167 million yuan. Since the launch of the share repurchase program was announced in September 2021, as of the end of February 2024, Shuidi has spent a total of about US$88.8 million to repurchase approximately 39.7 million ADS (American Depositary Shares) shares from the open market.

The annual revenue of the insurance business was 2.34 billion yuan, and the renewal rate exceeded 95%

According to the performance report, Shuidi's insurance-related revenue in the fourth quarter was 590 million yuan, accounting for 89% of Shuidi's overall revenue. Furthermore, the operating profit of the insurance business reached 128 million yuan this quarter. Furthermore, in 2023, first-year premiums reached 7.109 billion yuan, annual revenue of 2.34 billion yuan, and annual operating profit of 528 million yuan.

Judging from the performance in the fourth quarter, the main core indicators of Shuidi's insurance-related business are growing at an accelerated pace. The number of users is growing steadily, the number of insurance policies per capita has risen for two consecutive quarters, and the user renewal rate is over 95%. As of December 31, 2023, Shuidi Platform provided customers with 1,357 insurance products. The abundant supply of products has also increased the renewal rate, with the water drop warranty renewal rate exceeding 95% in the fourth quarter.

In order to enhance the service experience, Shuidi has continuously strengthened scientific and technological innovation. Currently, it has applied for more than 10 patents related to the big model. Among them, the “Water Drop Water Protection Model” developed by Shuidi Company has been tested and used internally, which will bring deep empowerment and efficiency to the entire insurance service chain.

A total of 62.6 billion yuan was raised for 3.1 million patients, and losses in the major disease fund-raising business narrowed

In addition to the insurance business, the water drop funding business continues to play a “emergency emergency” role. As of December 31, 2023, since the launch of Waterdrop Fundraising, approximately 450 million users have donated 62.6 billion yuan to more than 3.1 million patients. The operating loss of Waterdrop Funding in 2023 was approximately RMB 246 million.

It is worth noting that Shuidi's new business, Yifan Pharmaceutical, showed growth potential and achieved revenue of 101 million yuan for the full year of 2023, an increase of 69% over the previous year. In the fourth quarter, Yifan Pharmaceutical cooperated with 167 pharmaceutical companies and CRO, an increase of 32 over the previous quarter. According to the data, Yifan Pharmaceutical has recruited more than 6,900 patients and signed more than 890 clinical trial projects.

Eight consecutive quarters of profit enabled Shuidi to maintain sufficient cash reserves. As of December 31, 2023, the total amount of cash and cash equivalents and short-term investments held by Shuidi was $3.393 billion, an increase of 8.1% over the previous month. Cash reserves of this scale provide a solid foundation for steady business development and can support Shuidi's long-term planning and layout for future growth.

Shen Peng, founder and CEO of Shuidi Company, said that looking back at 2023, Shuidi Company adhered to the “user-centered” concept, insisted on pursuing sustainable and healthy development, and had strong performance in various businesses. Facing 2024, the health, innovation and sustainability of the industry will be further improved. Shuidi will also use new technology and models to create new quality productivity, continuously improve service levels, and achieve higher quality growth.