It was learned from Zhongtong Finance that on June 5th, Shuidi Company (WDH.US) released its unaudited performance report for the first quarter of 2024 ending on March 31, 2024. In the first quarter of 2024, Shuidi Company's net operating income was 705 million yuan, a year-on-year increase of 16.3%, and the net profit attributable to the parent company was 80.63 million yuan, a year-on-year increase of 62.2%, which achieved 9 consecutive quarters of profitability. Operating expenses (including sales expenses, management expenses and research and development expenses) accounted for 46.4% of revenue, a year-on-year decrease of 11 percentage points. In addition, since announcing the share buyback plan in September 2021, as of May 31, 2024, Shuidi Company has repurchased about 45.50 million ADS shares from the open market.

Operating profit of insurance business was 129 million yuan, and life insurance accounted for 56.4% of the proportion of the long-term insurance.

According to the performance report, in the first quarter, Shuidi Company's insurance-related revenue was 607 million yuan, a year-on-year increase of 13.1%. In addition, the operating profit of the insurance business in this quarter reached 129 million yuan. The first-year premium generated by Shuidi Insurance was 1.755 billion yuan, a year-on-year increase of 3.7%.

Judging from the performance of this quarter, the underwriting quality of Shuidi's insurance business has improved, especially in the service sector of long-term insurance. The proportion of first-year premium income from life insurance to overall long-term insurance has increased to 56.4%, a year-on-year increase of 9.9 percentage points. On the renewal side, thanks to the efficiency and quality improvement of the business, Shuidi Insurance's renewal rate exceeded 95% this quarter, reflecting the recognition of users for insurance services.

In this quarter, Shuidi Company continued to deepen the insurance technology empowerment, further expanding the functions and application scenarios of the "Shuidi Shoushi Big Model". In the medical insurance scenario, AI insurance consultant can independently talk with users for up to 40 minutes, and the accuracy of AI super assistant in answering insurance-related questions exceeds 90%, which effectively improves the efficiency of sales and quality inspection. Up to now, Shuidi Company has obtained 4 authorized patents related to big models, and has applied for more than 10 patents related to big models in accumulation.

3.17 million patients received a total of 63.8 billion yuan in donations on Shuidi Chou, and 88 new medical service projects were signed.

In this quarter, Shuidi Chou continued to play its role in "emergency relief". As of March 31, 2024, since the launch of Shuidi Chou, approximately 456 million users have donated a total of 63.8 billion yuan to more than 3.17 million patients. In the first quarter, Shuidi Chou had an operating loss of approximately 32.24 million yuan, which was narrower than before.

In order to improve service quality, Shuidi Chou launched a "guardian plan", which improves the fundraising experience in a full process from raising funds efficiently, supporting traffic, ensuring fund security and upgrading the review. For example, the platform launched a "fast-payment green channel", when a fundraising patient is facing an emergency ICU or urgently needs major surgery or organ transplant, after the application is approved, the platform will advance the payment for the patient and the money can be received within an hour. In addition, Shuidi Chou will exempt the service fees for the five-guarantee and extremely poor population, and give love subsidies to patients in accidental disasters or major accidents.

It is worth noting that Shuidi Company's medical service business has made good progress. In the first quarter of 2024, the revenue was about 25.30 million yuan, a year-on-year increase of 7.3%. The cooperative pharmaceutical companies and CRO institutions reached 179, and 88 new projects were signed, with a total of approximately 7,800 patients enrolled.

Shen Peng, the founder and CEO of Shuidi Company, said that in the just-passed quarter, we adhere to the sustainable development strategy, take technological innovation as the core, and drive profitability steadily. In the future, the company's business development still faces significant challenges, so we will continue to focus on high-quality development, continuously expand business boundaries around the company's mission and main race track, and provide greater value to our users and partners.