Waterdrop Inc (WDH) 2022 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for standing by for Waterdrop Inc.'s second-quarter 2022 earnings conference call. (Operator instructions) As a reminder, today's conference call is being recorded.

早安，女士們、先生們，感謝你們出席 Waterdrop Inc. 的 2022 年第二季財報電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄音。

I would now like to turn the meeting over to your host for today's call, Ms. Xiaojiao Cui. Please proceed, Ms. Cui.

現在我想將會議交給今天電話會議的主持人崔小嬌女士。請崔女士繼續。

Thank you, operator. Hello, everyone. Thank you for joining Waterdrop's second-quarter 2022 earnings conference call.

謝謝你，接線生。大家好。感謝您參加 Waterdrop 2022 年第二季財報電話會議。

Please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities and Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

請注意，今天的討論將包含根據1995 年美國私人證券和訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述受到風險和不確定性的影響，可能導致實際結果與我們的結果存在重大差異。當前的期望。

Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. The company does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

潛在風險和不確定性包括但不限於我們向 SEC 公開提交的文件中概述的風險和不確定性。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

Also, this call includes discussion of certain non-GAAP measures. Please refer to our earnings release for a reconciliation between non-GAAP and GAAP.

此外，本次電話會議也討論了某些非公認會計準則措施。請參閱我們的收益發布，以了解非公認會計原則和公認會計原則之間的調節。

Joining us today on the call are Mr. Shen Peng, our Founder, Chairman, and CEO; Mr. Yang Guang, Co-Founder, Director, and VP; Mr. Hu Yao, Co-Founder, Director, and VP; Mr. Ran Wei, our partner; Mr. Zhu Zetao, Partner and General Manager of Medical Crowdfunding and Patient Services. We will be available for a Q&A session after the remarks.

今天加入我們電話會議的還有我們的創辦人、董事長兼執行長沉鵬先生；楊光先生，共同創辦人、董事、副總裁；胡耀先生，共同創辦人、董事、副總裁；冉偉先生，我們的合夥人；朱澤濤先生，合夥人、醫療眾籌及病患服務部總經理。發言結束後我們將舉行問答環節。

Now, I would like to turn the call over to our CEO, Mr. Shen Peng. Please go ahead.

現在我想把電話轉給我們的執行長沉鵬先生。請繼續。

(interpreted) Hello, everyone. Thank you for joining our second-quarter 2022 earnings conference call.

（譯）大家好。感謝您參加我們的 2022 年第二季財報電話會議。

There have been a range of external challenges and uncertainties in this quarter. Demand for insurance products has been delayed, as a result of weakening consumer confidence caused by the COVID resurgence and other external factors. Despite these headwinds, Waterdrop is still firmly committed to being user centric, steadily developing its business and creating shareholder value.

本季存在一系列外部挑戰和不確定性。由於新冠疫情死灰復燃等外在因素導致消費者信心減弱，保險產品需求出現延遲。儘管面臨這些不利因素，水滴仍然堅定致力於以使用者為中心，穩步發展業務並創造股東價值。

We also proactively explored new businesses opportunities in this evolving market environment. In the second quarter, we made further progress on reforming our business strategy, maintained momentum, and achieved record-high profitability.

我們也在不斷變化的市場環境中積極探索新的商機。二季度，我們經營策略改革深入推進，維持發展動能，獲利能力再創新高。

Our revenues increased by 8.1% quarter over quarter. We achieved non-GAAP net profit for three consecutive quarters and GAAP profit for two consecutive quarters. On top of this, our net profit almost doubled sequentially, reaching RMB207 million, and once again exceeding market expectations.

我們的營收季增 8.1%。我們連續三個季度實現非 GAAP 淨利潤，連續兩季實現 GAAP 利潤。除此之外，我們的淨利較上季成長近一倍，達到人民幣2.07億元，再次超越市場預期。

Despite some cross-quarter fluctuations and the fact that our insurance business is currently the only profit contributor, our brilliant results confirmed that we have entered into a phase of steady profitability. In the second half of 2022, we will appropriately increase our investments in new businesses.

儘管出現了一些跨季度的波動，而且保險業務是目前唯一的利潤貢獻者，但我們的亮麗業績證實了我們已經進入了穩定獲利的階段。 2022年下半年，我們將適當增加新業務的投入。

Although the current economic cycle is near bottoming, we remain optimistic about the Chinese economy and the healthcare industry, and we'll maintain our strategy of achieving high-quality and sustainable development. Our confidence comes from our strong determination. We will strive to achieve the goal we set for the shareholders at the beginning of the year, which is to achieve a healthy and sustainable operating profit for our existing business for 2022.

儘管當前經濟週期已接近觸底，但我們對中國經濟和醫療健康產業仍持樂觀態度，並堅持高品質永續發展策略。我們的信心來自於我們堅強的決心。我們將努力實現年初為股東設定的目標，即2022年現有業務實現健康可持續的營業利潤。

In the last few quarters, we have adjusted our business strategy from pursuing scale expansion and rapid growth to cultivating a healthier and more sustainable growth. Our operating and financial performance is heading in a positive direction. Having said that, we have been constantly reviewing our business strategy, and in the second quarter, we made some realignment to our organizational structure and the business divisions. We believe such adjustments will allow us to achieve even higher goals in future.

過去幾個季度，我們調整了經營策略，從追求規模擴張和快速成長轉向培育更健康、更永續的成長。我們的營運和財務表現正朝著正面的方向發展。儘管如此，我們一直在不斷審視我們的業務策略，在第二季度，我們對我們的組織架構和業務部門進行了一些調整。我們相信，這樣的調整將使我們在未來實現更高的目標。

Our current strategy remains to enhance the value of our products and cater to users' needs. We adhere to two principles when implementing these strategies: sound operations with full compliance and a high-quality and sustainable development. Specifically, in daily operations, we have proposed four pillars to prioritize: management, efficiency, service quality, and reputation, so as to assist the refinement and implementation of our strategy.

我們目前的策略仍然是提升產品價值並滿足用戶需求。我們實施這些策略遵循兩個原則：全面合規穩健經營和高品質永續發展。具體來說，在日常營運中，我們提出了管理、效率、服務品質、聲譽四大支柱，以協助策略的細化和實施。

Looking to the second half of the year and beyond, we will strive to implement our development strategy, strengthen our capabilities, and cope with market changes in a proactive, flexible, and agile way. We will identify and seize new business opportunities and spare no effort to explore a healthier growth model.

展望下半年及以後，我們將努力落實發展策略，增強自身能力，積極主動、靈活敏捷地應對市場變化。我們將尋找並抓住新的商機，全力探索更健康的成長模式。

Overall, the implementation of our strategy will build on the solid frameworks formed by our product innovation capabilities, technological innovation, and the synergies created among various unique business segments. Particularly in the near future, with China's population aging more rapidly, the upcoming demand for insurance coverage will continue to increase and evolve.

整體而言，我們策略的實施將建立在我們的產品創新能力、技術創新以及各個獨特業務板塊之間形成的協同效應所形成的堅實框架之上。特別是在不久的將來，隨著中國人口老化速度加快，未來的保險需求將不斷增加和演變。

We will persist in working hard and keeping in a low profile. We also strive to leverage our solid fundamentals and high technological capabilities to efficiently and accurately explore new opportunities that emerge at any time and do our best to reap additional returns from the new model.

我們將堅持努力、低調行事。我們也努力運用紮實的基礎和高超的技術能力，高效、準確地探索隨時出現的新機遇，盡最大努力從新模式中獲得額外回報。

As for technology platform for insurance and healthcare services, since our inception in 2016, we have persistently adhered to our mission of leveraging internet technologies to make insurance protection more inclusive and accessible to the public and bring insurance and healthcare services to billions.

保險與醫療服務科技平台自2016年成立以來，始終堅持運用網路科技讓保險保障更加普惠、普惠，讓保險與醫療服務惠及數十億人的使命。

In July, we released our 2020 to '21 ESG report, which was the first ESG report published since our IPO. The report details our responsibility, technology and products, industry value chain, workplace development, green development, and other relevant topics. It also illustrates how we leverage our innovative business model and the technological innovation to achieve effective business performance and sustainable process.

7月，我們發布了2020年至21年ESG報告，這是我們自IPO以來發布的第一份ESG報告。報告詳細介紹了我們的責任、技術與產品、產業價值鏈、職場發展、綠色發展等相關主題。它也說明了我們如何利用創新的業務模式和技術創新來實現有效的業務績效和可持續的流程。

We attach great importance to our great ESG efforts. Along with our strict compliance with relevant laws and regulations, we have developed rigorous management systems in corporate governance, compliance operations, supplier management, employee management and a low-carbon green development. At the same time, we also leverage our business strength and technological innovation to integrate resources from various partners, thereby promoting sustainable creation of social value.

我們非常重視我們在 ESG 所做的巨大努力。我們嚴格遵守相關法規，在公司治理、合規營運、供應商管理、員工管理、低碳綠色發展等方面建立了嚴格的管理系統。同時，我們也運用業務實力和技術創新，整合各合作夥伴的資源，推動社會價值的永續創造。

In addition, we are actively engaged in establishing a multi-layered medical protection system that serves as a supplementary layer through our Waterdrop Medical Crowdfunding, Waterdrop Insurance Marketplace, Waterdrop Charity, and other businesses, so as to prevent critically ill patients from becoming impoverished. As of the end of Q2, a total of 412 million patients -- donors provided nearly RMB53.3 billion to millions of patients with critical illnesses through our Waterdrop medical crowdfunding platform.

此外，我們也積極透過水滴醫療眾籌、水滴保險賣場、水滴慈善等業務，建立多層次的醫療保障體係作為補充，防止重症患者陷入貧困。截至第二季末，共有4.12億患者捐贈者透過水滴醫療眾籌平台為數百萬危重病患者提供了近533億元人民幣的捐款。

Leveraging our sophisticated technology, the Waterdrop Charity platform has helped improve the efficiency of fundraising and fund utilization by providing charity organizations with all-around support. Our other campaigns cover a wide range of areas, including anti-pandemic actions, disaster relief, poverty alleviation, and rural revitalization. These initiatives prove that we will adhere to being a responsible company with social responsibility and doing businesses for good as we pursue business growth.

水滴慈善平台憑藉著先進的技術，為慈善組織提供全方位的支持，幫助提高籌款和資金使用效率。我們的其他活動涉及抗疫、救災、扶貧、鄉村振興等廣泛領域。這些舉措證明，我們在追求業務成長的同時，將堅持做一家負責任的企業，有社會責任，向善經營。

As a leader in our industry, we are committed to driving the healthy development of the ecosystem. In response to the unauthorized fundraising activities in the medical crowdfunding industry, we collaborated with other major medical crowdfunding platforms to crack down on such activities in June. Some intermediaries have acted in the name of helping patients with critical illnesses raise funds on medical crowdfunding platforms and charge them on unauthorized referrals for high commissions. This malicious activity not only damages the healthy ecosystem of the industry, but also harms the interest of donors and fund raisers.

身為產業領導者，我們致力於推動生態系統的健康發展。針對醫療眾籌產業未經授權的募款行為，我們於6月份聯合其他主要醫療眾籌平台對此類活動進行了打擊。一些仲介機構以幫助重症病患在醫療眾籌平台籌集資金為名，向未經授權的轉診收取高額佣金。這種惡意行為不僅損害了產業健康的生態系統，也損害了捐贈者和募款者的利益。

Our Waterdrop Medical Crowdfunding platform has taken preemptive steps to identify such unauthorized fundraising activities with high accuracy through a stringent review process and risk control system. On the one hand, our risk management team contacts the fund raiser to verify their crowdfunding claims based on reports and complaints we receive from users. On the other hand, we have developed a model, powered by algorithm and AI technology, to analyze fundraising activities based on information and cases referral chain of fund raisers and donors and proactively screen and identify suspicious unauthorized cases.

我們的水滴醫療眾籌平台已採取先發制人的措施，透過嚴格的審查流程和風險控制體系，高精度地識別此類未經授權的募款活動。一方面，我們的風險管理團隊根據我們收到的用戶報告和投訴聯繫籌款人，核實他們的眾籌主張。另一方面，我們開發了一個基於演算法和人工智慧技術的模型，根據籌款人和捐助者的資訊和案件轉介鏈來分析籌款活動，主動篩選並識別可疑的未經授權的案件。

Our crowdfunding consultants further verify cases by conducting on-site visits and interviews. Once confirmed, we blacklist the fundraisers who have involved in the identified cases so that they will no longer be able to initiate another campaign. At the same time, those malicious intermediaries are restricted from any access, forwarding, or commission on the platform. Thanks to these relentless efforts, the number of unauthorized fundraising activities on our platform has been significantly reduced.

我們的眾籌顧問透過實地探訪、訪談等方式進一步核實案例。一旦得到確認，我們會將參與已識別案件的籌款人列入黑名單，以便他們無法再發起另一場活動。同時，那些惡意中介者也被限制在平台上進行任何存取、轉發或委託。由於這些不懈的努力，我們平台上未經授權的募款活動數量已大大減少。

However, recently, we have seen some reports posted in the media, which have not clearly distinguished between our crowdfunding platform and those malicious intermediaries, stating that Waterdrop has charged high service fees for its medical crowdfunding business, leading some users and the public to misunderstand that Waterdrop received a large percentage of the fundraising amount.

但近期，我們看到一些媒體報道，沒有明確區分我們的眾籌平台和那些惡意中介機構，稱水滴公司對其醫療眾籌業務收取高額服務費，導致部分用戶和公眾產生誤解。 Waterdrop 獲得了籌款金額的很大一部分。

This has also led to some misunderstandings about Waterdrop's actions in cracking down on the unauthorized referrals. We would like to clarify that we have always taken a responsible approach toward cracking down on misconduct, safeguarding users' rights and promoting the industry's healthy development. Even though this is not an easy task, we remain committed to doing the right things despite the tough challenges.

這也導致人們對水滴公司打擊未經授權的推薦行為產生了一些誤解。我們在此鄭重聲明，我們始終以負責任的態度打擊不當行為，維護用戶權益，促進產業健康發展。儘管這不是一件容易的事，但儘管面臨嚴峻的挑戰，我們仍然致力於做正確的事。

We have subsidized the operating costs of our medical crowdfunding platform since its establishment for five years. Starting from this April, we began to charge a service fee of 3% of the fundraising amount to support our platform's operations and risk controls. We have never charged high service fees and have pledged to restrain unauthorized activities. We have disclosed all of our fundraising campaigns and detailed fund flows to the public and welcome supervision from our users and the public and will take legal measures to bring illegal intermediaries to justice.

自從醫療眾籌平台成立以來，我們已經補貼了五年的營運成本。從今年4月開始，我們開始收取募款金額3%的服務費，以支援平台的營運和風險控制。我們從未收取高額服務費，並承諾限制未經授權的活動。我們已向社會公開所有募款活動及資金流向，歡迎用戶和社會公眾監督，並將採取法律措施將非法中介機構繩之以法。

As of today, our Waterdrop Medical Crowdfunding platform has identified and taken legal actions in over 800 unauthorized profit-making referral cases, targeting more than 600 intermediaries engaged in malicious unauthorized activities. We will make every effort to provide the best services for patients with critical illnesses, cater to patients' urgent medical needs, and develop the most reliable medical crowdfunding platform for all users, thereby earning and keeping the trust of each of our customers.

截至目前，水滴醫療眾籌平台已識別出800餘起未經授權的營利轉介案件並採取法律行動，針對600多家從事惡意未經授權活動的中介機構。我們將盡力為重症病患提供最佳的服務，滿足病患迫切的醫療需求，為所有使用者打造最值得信賴的醫療眾籌平台，從而贏得並維持每位顧客的信任。

Regarding share buyback, we continue to implement our repurchase program. In the second quarter, we repurchased approximately 1.61 million ADS, and we are continuing to execute the program prudently. At the end of June 2022, the company held cash and cash equivalents and short-term investments totaling RMB3,288 million. After offsetting the cash outflow for share repurchase, we still achieved a positive cash inflow of over RMB360 million for the single quarter.

關於股票回購，我們繼續實施回購計畫。第二季度，我們回購了約161萬股ADS，我們正在繼續謹慎執行該計劃。截至2022年6月末，本公司持有現金及現金等價物及短期投資總計人民幣32.88億元。抵銷股票回購現金流出後，單季仍實現超3.6億元人民幣的正現金流入。

At this earnings release, we are announcing that we launched a new share repurchase program so as to continue to buy back shares for another 12 months, in which we upsized the upper limit and may repurchase up to USD80 million worth of our ADS. This is a decision that was made based on the judgment of the company's current value and our confidence in our long-term sustainable development. Meanwhile, we plan to reserve repurchased shares for share incentive plans, which will align the interest of our employees with the growth of the company.

在本次財報發布中，我們宣布啟動一項新的股票回購計劃，以便在接下來的 12 個月內繼續回購股票，其中我們提高了上限，最多可以回購價值 8000 萬美元的 ADS。這是基於對公司當前價值的判斷以及對公司長期可持續發展的信心而做出的決定。同時，我們計劃將回購股份預留用於股權激勵計劃，使員工的利益與公司的發展一致。

To conclude, with people's growing demand for healthcare in China, and as we continue to strengthen our competitive advantages in product, innovation, and business sector synergies, we still believe that the online insurance and healthcare sectors offer us a tremendous and untapped opportunities. In this changing environment, we will remain committed to our mission, keeping the focus on user value, solidifying business fundamentals, and pursuing continuous improvement. At the same time, we will also adhere to strict budgeting and objective management and continue to optimize the structure and the quality of our business growth, thereby achieving healthy and sustainable profitability of our established business for the full year.

總而言之，隨著中國人們對醫療保健的需求不斷增長，隨著我們不斷增強在產品、創新和業務部門協同方面的競爭優勢，我們仍然相信在線保險和醫療保健領域為我們提供了巨大的尚未開發的機會。在這個不斷變化的環境中，我們將堅守使命，聚焦使用者價值，夯實業務基礎，追求持續改善。同時，我們也將堅持嚴格預算和目標管理，持續優化業務成長結構和質量，實現全年既定業務健康持續獲利。

I'll pass to Ran Wei to discuss the development of the Waterdrop insurance business for Q2.

以下請冉偉談談水滴保險業務第二季的發展。

Okay. Thank you, Shen Peng. Hello, everyone. Let me give you an update on our insurance business development.

好的。謝謝你，沉鵬。大家好。讓我向大家介紹一下我們保險業務的發展。

Life and health insurance premium growth in China was [sluggish] for the first half of 2022 and has underperformed the P&C insurance industry. Meanwhile, the life and health insurance reform has not yet had a pronounced effect on the market, and the demand for critical illness insurance products remained weak. Share performance of the listed insurance companies has been languished at a low level for a long time, and their valuation touched a new low in the end of April.

2022 年上半年，華人壽與健康保險保費成長[緩慢]，表現落後於財產險和意外險產業。同時，壽險和健康險改革尚未對市場產生明顯影響，重大疾病險產品需求仍疲軟。上市保險公司股價表現長期低點徘徊，估值在4月底再創新低。

Against this backdrop, we have been proactively reforming our business model, optimizing our business operations and bettering the transformation of growth model. This has helped improve our operational efficiency and strengthened the resilience of business with new growth drivers. In Q2, our net profit reached RMB207 million, up by 97% on a sequential basis, with the entire profit derived from our insurance business.

在此背景下，我們積極改革業務模式，優化業務運營，推動成長方式轉型。這有助於提高我們的營運效率，增強業務韌性，形成新的成長動力。第二季度，我們的淨利達到2.07億元人民幣，較上季成長97%，全部利潤來自保險業務。

Now, I will review the business performance of our insurance business across four aspects. First, results of our business model reform. Looking at the key parameters that demonstrates the continued profitability of our business. In Q2, we further optimized and upgraded our operating system with multiple platforms, multiple product supplies, and multiple service models, while relentlessly pursuing improvements in both operating efficiency and quality by streamlining our transaction processes to be more user friendly and enriching our product offerings.

以下我從四個方面回顧我們保險業務的經營情況。一是商業模式改革的成果。查看證明我們業務持續獲利能力的關鍵參數。第二季度，我們進一步優化升級了多平台、多產品供應、多服務模式的作業系統，同時不斷追求操作效率和品質的提升，簡化交易流程，更加人性化，豐富產品種類。

We continued to see increased revenues from new customers, and our take rate remained at a relatively high level. One-year LTV increased by 22% quarter on quarter and 101% year over year. In terms of the long-term insurance business, we refined our user group tax, based on which we upgraded the sales mix match model to identify customers' needs more precisely. This has helped improve the customer service efficiency of our sales team. And sales productivity per our in-house LTV increased by 28% quarter over quarter.

我們繼續看到新客戶的收入增加，我們的接受率保持在相對較高的水平。一年期 LTV 環比成長 22%，年增 101%。長期保險業務方面，我們細化了用戶群體稅費，在此基礎上升級了銷售組合匹配模型，更精準地識別客戶需求。這有助於提高我們銷售團隊的客戶服務效率。我們內部 LTV 的銷售效率較上季成長了 28%。

At the same time, we have set up a dedicated team to analyze the sales conversion chain of existing user groups. Through interviews with user groups, we have improved user experience in the conversion and retention processes, thereby helping increase the three-month policy renewal rate of long-term insurance users up by 3 percentage points compared with that in previous quarters.

同時，我們成立了專門的團隊來分析現有用戶群的銷售轉換鏈。透過對使用者群體的訪談，改善了使用者在轉換和留存過程中的體驗，從而幫助長期保險使用者的三個月保單續保率較前幾個季度提高了3個百分點。

In terms of existing customer management, we continue to develop our multiple platform of operational model for various marketing platforms, including our WeChat official accounts, WeChat mini-programs, enterprise WeChat accounts, and Waterdrop app. We clarified the long-term positioning of each of these channels to align them with the needs and the preference of different user groups.

在現有客戶經營方面，我們持續開發微信公眾號、微信小程式、企業微信、水滴APP等多種行銷平台的多平台營運模式。我們明確了各個管道的長期定位，以適應不同使用者群體的需求和偏好。

We have strengthened our profit domain operations capability and improved the collaboration between our customer service team and our LP team, yielding remarkable results in retaining core user groups. For instance, short-term insurance premiums originated from these marketing channels reached about RMB43 million, up by 60%. The number of active app users reached 3.4 million, up by 47%.

強化利潤域營運能力，提升客服團隊與LP團隊的協作，核心用戶群留存成效顯著。例如，這些行銷通路的短期保險保費達到約4,300萬元，成長60%。應用程式活躍用戶數達340萬，成長47%。

At the same time, we set up a dedicated team in our long-term insurance business to explore additional protection needs of our existing users and provide them with lifetime insurance solutions. The insurance premiums originated from the repeat purchases by existing long-term insurance customers increased by 72% quarter on quarter, increasing the lifetime value of our users significantly, and also consistently explore new customer acquisition models.

同時，我們在長期保險業務上設立了專門的團隊，探索現有用戶的額外保障需求，為他們提供終身保險解決方案。存量長期保險客戶重複購買產生的保費較上月成長72%，大幅提升用戶終身價值，並持續探索新的獲客模式。

WeChat video accounts -- we have continuously enriched and polished our content metric of our WeChat video account, tapping into a faster-growing source of the WeChat users. Thanks to our deep understanding of the communication patterns and user needs of this new marketing platform, the number of users following our video accounts increased by 44% quarter over quarter, and the total insurance premiums originated from this account increased by 113% sequentially.

微信視訊帳號－我們不斷豐富且完善微信視訊帳號的內容指標，挖掘快速成長的微信用戶來源。由於我們對這個新行銷平台的溝通模式和用戶需求的深刻理解，我們的影片帳戶的關注用戶數量環比增長了44%，來自該帳戶的保費總額環比增長了113%。

Online brokerage -- we have set up and dedicated units in our insurance department to promote the online brokerage business, with the insurance planner model included. Leveraging our multi-channel exploration in Q1, the insurance planner model has a clear operating mode of customer attraction through live streaming and insurance content, with the insurance planner responsible for promoting sales conversions.

線上經紀－我們在保險部門設立了專門的部門來推廣線上經紀業務，其中包括保險策劃師模式。保險策劃師模式藉由我們第一季的多通路探索，透過直播和保險內容吸引客戶，營運模式清晰，保險策劃師負責促進銷售轉換。

With the establishment of our live streaming team and our insurance planner team, the number of live streaming events increased and the number of live stream viewers grew by 140% quarter on quarter. With strict cost control in place, we have achieved an initial validation, scaling up these operations.

隨著直播團隊和保險策劃團隊的成立，直播活動數量增加，直播觀看人數較上季增加140%。透過嚴格的成本控制，我們已經實現了初步驗證，擴大了這些業務。

Second, product innovation. In Q2, we have continued to launch more high-quality insurance products. The total number of product offering has increased by 44% this quarter. In terms of short-term insurance product offerings, we now have 11 different cost-effective versions of million RMB coverage medical insurance products. We also improved our critical illness products by offering more flexible options for health declarations and premium payments. Thanks to our ability to accurately match user needs, the policy renewal rate remains at a high level of 90%.

二是產品創新。二季度，我們持續推出更多優質保險產品。本季提供的產品總數增加了 44%。在短期保險產品方面，我們目前擁有11個不同性價比版本的百萬元醫療保險產品。我們也改進了重大疾病產品，為健康申報和保費支付提供更靈活的選擇。得益於我們精準匹配用戶需求的能力，保單續保率始終保持在90%的高水準。

In addition, the continued enrichment of our product offerings has significantly improved our ability to reactivate dormant users. For example, to meet the needs of customers with pre-existing illness conditions, we launched Waterdrop Blue Ocean, a series of customized and cost-effective critical illness products. The product has simplified the policy enrollment and claim settlement process and waives the health declaration requirements while keeping underwriting risk under control. This will, to some extent, ease the concerns of senior citizens and patients with chronic diseases who are seeking to purchase IC insurance. In addition, we have launched Waterdrop Cruiser, a new accident insurance product, which waives the health declaration requirements and relaxes the age limit for insurance applicants to 80 years old.

此外，我們產品的不斷豐富也顯著提高了我們重新激活休眠用戶的能力。例如，針對已有疾病客戶的需求，我們推出了水滴藍海系列客製化、高性價比重疾產品。該產品簡化了投保和理賠流程，免除了健康申報要求，同時控制了承保風險。這將在一定程度上緩解老年人和慢性病患者購買IC保險的擔憂。此外，我們還推出了意外險新產品“水滴巡遊”，免除健康申報要求，投保年齡限制放寬至80歲。

As returns from investment products offered by banks have been trending downward, there is increasing customer demand for investment products that offer stable returns. In response to this demand, we added incremental life insurance policies to our long-term insurance product offerings in Q2. We also provided our sales team with special training of distribution of these new products, especially to high-net-worth individuals.

隨著銀行投資產品收益呈現下降趨勢，客戶對收益穩定的投資產品的需求不斷增加。為了滿足這項需求，我們在第二季在長期保險產品中增加了增量人壽保險保單。我們也為我們的銷售團隊提供了新產品分銷的特殊培訓，特別是針對高淨值人士。

The insurance premium for incremental life industry products totaled more than RMB20 million in second quarter. Meanwhile, empowered by annuity products launched in Q1 and the private domain operating capability of traffic coming from our enterprise WeChat account, our long-term insurance team has achieved a quarter-over-quarter increase in annuity insurance premiums of 324% in Q2.

第二季增量壽險產品保費總額超過2,000萬元。同時，借助第一季推出的年金產品和企業微信流量私域營運能力，長險團隊第二季年金保費較上季成長324%。

Third, upgrades -- updates on the O2O brokerage business. We continue to explore different brokerage service models in different regions and cities. At the end of Q2, we had 11 regional brokerage licenses. During the quarter, we set up a branch in Shaanxi and then two new outlets in Hubei province. The brokerage team expanded to nearly 600 staff, generating the total premium income of about RMB8 million in quarter two.

第三是升級－O2O經紀業務更新。我們不斷探索不同地區、不同城市的不同經紀服務模式。截至第二季末，我們擁有 11 個區域經紀牌照。本季度，我們在陝西設立了一家分公司，隨後在湖北省設立了兩家新分店。經紀團隊擴充至近600人，第二季總保費收入約800萬元。

Four, actively empower industry with technology. In terms of technology export, we launched our project for Huanong Property Insurance in Q2. This is the first time that we have exported our CRM system and deployed with AI outbound capability to a third party. We currently have the ability to provide full chain marketing solutions for the insurance industry. This includes user acquisitions, private domain management, and empowering offline agents with sales conversion capability. Through these solutions, we can help insurance companies and insurance intermediaries digitalize their marketing process, thereby driving user base expansion and premium growth. In the second half of this year, we will continue to work with more partners on different tech projects.

四是積極科技賦能產業。在技​​術輸出方面，我們第二季啟動了華農財險計畫。這是我們第一次將CRM系統匯出給第三方，並部署AI外呼能力。目前我們有能力為保險業提供全鏈條行銷解決方案。這包括用戶獲取、私人管理以及為線下代理商提供銷售轉換能力。透過這些解決方案，我們可以幫助保險公司和保險中介機構實現行銷流程數位化，從而推動用戶群擴張和保費成長。今年下半年，我們將繼續與更多合作夥伴合作不同的科技專案。

Above is a brief on the insurance business, and let me hand over to Zhu Zetao for the updates of our medical crowdfunding and patient recruitment business.

以上是保險業務的簡單介紹，以下請朱澤濤介紹我們醫療眾籌和病患招募業務的最新情況。

Thanks, Ran Wei. I would like to share some updates on our medical crowdfunding business.

謝謝冉薇。我想分享一下我們醫療眾籌業務的一些最新情況。

As of the end Q2, the cumulative number of donors, which is 412 million, helping 2.58 million patients raise approximately RMB53.3 billion cumulatively. Since April of this year, our platform has ceased to fully subsidize its service fees and started to charge a service fee of 3% up to a maximum amount of RMB5,000 for a single campaign. This is to cover part of the operational cost and help more patients with critical illnesses raise fund. The user number and fundraising amount on our platform has remained stable even after the charge of the service fee.

截至第二季末，累計捐贈人數4.12億，幫助258萬名患者累計籌集善款約533億元。今年4月起，平台不再全額補貼服務費，開始以3%收取服務費，單次最高5,000元。這是為了支付部分營運費用，並幫助更多的重症患者籌集資金。即使收取服務費後，我們平台的用戶數量和募款金額仍然保持穩定。

As part of our commitment to promote best practices and orderly development of the industry, we have recently established an Operational Transparency Committee to continuously promote the authenticity of the campaigns initiated at our medical fund raising platform, the fund flow transparency, as well as the rationality and transparency of the platform rules. The committee consists of Waterdrop's core management team, experts in the field of law, charity, and public media, with our CEO, Mr. Shen Peng, as Head of the committee.

作為我們推動行業最佳實踐和有序發展的承諾的一部分，我們最近成立了營運透明度委員會，以不斷提升我們醫療籌款平台發起活動的真實性、資金流向的透明度以及合理性。以及平台規則的透明度。該委員會由水滴公司核心管理團隊、法律、慈善、公共媒體領域的專家組成，由執行長沈鵬先生擔任委員會主任。

To better safeguard the rights and interest of both the fundraisers and the donors, the committee will collaborate with public security authorities, hospitals, and other industry partners to crack down on fundraising fraud, while actively seeking advice from the public to ensure that each donation is open, transparent, and traceable. Meanwhile, the committee will constantly interact with the experts and optimize the rules of the platform. In the future, Waterdrop will make every effort to avoid fraudulent fundraising and misappropriation of funds, ensuring the overall security of fund raised from our platform.

為更好維護募款人和捐贈人雙方權益，組委會將聯合公安機關、醫院等行業合作夥伴，嚴厲打擊募捐詐騙行為，同時積極徵求社會公眾意見，確保每筆捐款得到妥善處理。公開、透明、可追溯。同時，組委會將不斷與專家互動，優化平台規則。未來，水滴將盡力避免詐欺集資、挪用資金等行為，確保平台資金的整體安全。

Next, let me talk about the progress of our patient recruitment business. In Q2, the COVID outbreaks in various cities of China has adversely affected the launch of new clinical trials. Nonetheless, our E-Find patient platform sustains overall high growth momentum and successfully enrolled approximately 700 patients for clinical trials. The E-Find patient platform also participated in over 60 new clinical trial programs by partnering with innovative pharmaceutical manufacturers, including leading multinational enterprise in the industry, bringing the total number of clinical trial programs for new drug registration to more than 300.

接下來我來講一下我們的病患招募業務的進度。第二季度，中國多個城市的新冠肺炎疫情對新臨床試驗的啟動產生了不利影響。儘管如此，我們的 E-Find 患者平台仍保持整體高速成長勢頭，並成功招募了約 700 名患者進行臨床試驗。 E-Find患者平台也與創新藥製造商合作，參與了60多個新藥臨床試驗項目，其中包括業界領先的跨國企業，使新藥註冊臨床試驗項目總數達到300多個。

The E-Find patient platform has now collaborated with more than 100 innovative pharmaceutical manufacturers and CROs in China and worldwide, helping us win the wider recognition of our partners and establish a good reputation across the industry. In the past few quarters, the platform has grown to become a leading patient recruitment platform in China, in particular for oncology-related clinical trials. Our deliberate efforts, capabilities in quickly, accurately recruiting patients suitable for the trial projects and high operational efficiency all drove this accomplishment.

E-Find患者平台現已與中國及全球100多家創新醫藥製造商和CRO合作，幫助我們贏得了合作夥伴更廣泛的認可，在業界建立了良好的聲譽。在過去的幾個季度中，該平台已發展成為中國領先的患者招募平台，特別是在腫瘤相關的臨床試驗方面。我們的刻苦努力、快速、準確招募適合試驗計畫的患者的能力以及高營運效率都推動了這項成就。

We further expanded the scope of our clinical trials service in the second quarter. Apart from continuing to achieve rapid progress in the oncology and chronic disease clinical trials, we also made new breakthroughs in the rare disease segment. For years, we have seen patients with rare disease struggling to find the right medication, but this dilemma has started to reverse as patients have gained more public attention recently. This has led to a significant increase in the number of clinical trials for rare disease.

第二季我們進一步擴大了臨床試驗服務範圍。除了腫瘤和慢病臨床試驗持續取得快速進展外，我們在罕見疾病領域也取得了新的突破。多年來，我們看到患有罕見疾病的患者正在努力尋找合適的藥物，但隨著患者最近獲得更多公眾關注，這種困境已經開始扭轉。這導致罕見疾病的臨床試驗數量顯著增加。

However, as patients with rare diseases are widely dispersed across the country, it is challenging to enroll the appropriate patients to participate in trials of a new specific drug. This has longed down the progress of pharmaceutical companies in bringing new drugs to the market. Nevertheless, we found that many of these patients are also registered users of our Waterdrop Medical Crowdfunding platform, who are seeking financial aid after being plagued by their diseases for years.

然而，由於罕見疾病患者廣泛分佈於全國各地，招募合適的患者參與新藥的試驗具有挑戰性。這長期拖慢了製藥公司將新藥推向市場的進度。不過，我們發現，這些患者中有不少也是我們水滴醫療眾籌平台的註冊用戶，他們在被疾病困擾多年後正在尋求經濟援助。

In Q2, we worked with several partners on clinical trials for rare disease treatment. Using our structured data processing technologies, we are capable of matching patients with the most appropriate clinical trial, thereby accelerating the R&D and go-to-market progress of our partners.

第二季度，我們與多個合作夥伴合作進行罕見疾病治療的臨床試驗。利用我們的結構化資料處理技術，我們能夠為患者配對最合適的臨床試驗，從而加速合作夥伴的研發和上市進程。

This concludes my part, and let me turn over the call to Hu Yao to discuss our technology innovation topics.

我的發言到此結束，接下來我將電話轉給胡耀，討論我們的技術創新主題。

(interpreted) Thank you, Zetao. I'm going to talk about our second-quarter technology innovation update from three aspects.

（翻譯）謝謝澤濤。我從三個方面講一下我們第二季的技術創新情況。

First, let's start from the intelligent risk control for medical crowdfunding business. In response to malicious intermediaries who refer the needy to our medical crowdfunding services just to collect commissions, our AI team has applied knowledge mapping technology to analyze the statistical characteristics of sample cases and developed two models to identify the high-risk, unauthorized fundraising activities and the malicious intermediaries engaged in such activities, respectively. To date, the models have realized an accuracy rate of over 90%. This has effectively reduced the number of malicious and unauthorized fundraising activities and enhanced our risk control capabilities for our medical crowdfunding business.

首先我們從醫療眾籌業務的智慧風控開始。針對惡意中介為了收取佣金而推薦有需要的人使用我們的醫療眾籌服務，我們的人工智慧團隊應用知識圖譜技術來分析樣本案例的統計特徵，並開發了兩個模型來識別高風險、未經授權的眾籌活動和惡意中介分別從事此類活動。迄今為止，這些模型的準確率已達到 90% 以上。這有效減少了惡意和未經授權的募款活動，增強了我們醫療眾籌業務的風險控制能力。

The second one is intelligent dialogue platform. In Q2, we completed a major upgrade of our chatbot platform. We have upgraded it into an intelligent dialogue platform by integrating various functions such as outbound chatbots, customer service chatbot, virtual employees, and technology export projects. For instance, we added the chat status features in our outbound chatbots. By including eight types of chat status features and several modes, the chatbot is capable of engaging in more human-like dialogues with users, further improving its intention recognition accuracy rates by 15%.

二是智慧對話平台。第二季度，我們完成了聊天機器人平台的重大升級。我們將其升級為智慧對話平台，整合了外撥聊天機器人、客服聊天機器人、虛擬員工、技術輸出專案等多種功能。例如，我們在出站聊天機器人中新增了聊天狀態功能。透過包含八種聊天狀態功能和多種模式，聊天機器人能夠與用戶進行更人性化的對話，其意圖識別準確率進一步提高了15%。

In addition, our customer service chatbot can solve more than 80% of inquiries raised by users, and the intention recognition technology achieved an accuracy rate of over 95% for the overall intelligent dialogue platform. For transferring customers' requests from chatbot mode to manual mode on a real-time basis, we have upgraded our loss control model for phone calls to an intelligent dispatching algorithm, which enables us to further improve sales force productivity. According to users' needs and choice, we have also integrated this algorithm with our recommendation algorithm to offer a better user experience during the conversation.

此外，我們的客服聊天機器人可以解決用戶提出的80%以上的詢問，意圖識別技術使整個智慧對話平台的準確率達到95%以上。為了將客戶的請求從聊天機器人模式即時轉移到手動模式，我們將電話損失控制模型升級為智慧調度演算法，這使我們能夠進一步提高銷售人員的生產力。根據用戶的需求和選擇，我們還將演算法與我們的推薦演算法結合，以在對話過程中提供更好的用戶體驗。

Our AI-powered content production platform provides a lineup of useful tools for content creators. Powered by AI capabilities, the platform will generate corresponding marketing content, following the content material submitted by the original creator. While enriching our marketing content, the platform also helps improve efficiency and lower the cost of content production.

我們的人工智慧內容製作平台為內容創作者提供了一系列有用的工具。在人工智慧能力的支援下，平台將根據原創者提交的內容素材產生相應的行銷內容。該平台在豐富我們行銷內容的同時，也有助於提高效率、降低內容製作成本。

Currently, we have developed three function modules for our platform, namely test generation, speech synthesis, and video synthesis. To be more specific, first, as for the speech synthesis, our platform can simulate human-like speeches with flexible configurations, various types of reverberations, and voice properties, such as speed and volume, are available in this speech synthesis. Currently, the module supports six sound control functions. Our team is also exploring the underlying intelligence speech technology of voice cloning, which we expect to integrate into our speech synthesis module in the future.

目前，我們為我們的平台開發了三個功能模組，即測試生成、語音合成和視訊合成。具體來說，第一，在語音合成方面，我們的平台可以模擬類人的語音，配置靈活，各種類型的混響以及語音屬性，例如速度和音量，都可以在這個語音合成中使用。目前此模組支援六種聲音控制功能。我們團隊也在探索語音複製的底層智慧語音技術，預計未來會整合到我們的語音合成模組中。

And second, in respect of video synthesis, the module has incorporated technologies related to lip syncs, AI-powered face swap, animation style transfer, motion transfer, and virtual human live broadcast. The lip sync technology has been successfully applied in multiple business scenarios, including Waterdrop WeChat video account, the WeChat video accounts of our brokers, as well as the video advertising promotions at Douyin.

其次，在影片合成方面，此模組融入了口型同步、AI換臉、動畫風格轉換、動作轉換、虛擬人直播等相關技術。口型同步技術已成功應用於多個業務場景，包括水滴微信影片號碼、券商微信影片號碼、抖音影片廣告促銷等。

I will now hand over to Yang Guang to discuss our second-quarter financial performance.

現在我將請楊光討論我們第二季的財務表現。

Thank you, Hu Yao. Hello, everyone. I will now walk you through our financial highlights for the second quarter of 2022. Before I go into details on this financial performance, please be reminded that all numbers quoted here will be in RMB. And please refer to our earnings release for the detailed information on our comparative financial performance, both the year-over-year and quarter-over-quarter basis, respectively.

謝謝你，胡耀。大家好。現在，我將向您介紹我們 2022 年第二季的財務亮點。在詳細介紹本次財務業績之前，請注意，此處引用的所有數字均以人民幣為單位。請參閱我們的收益報告，以了解我們的比較財務表現（分別為同比和環比）的詳細資訊。

Despite the challenging external environment, we have entered a relatively stable profit-making stage after we turned profitable for three consecutive quarters. Our net operating revenue firmed up, and our net profit almost doubled on a quarter-over-quarter basis.

儘管外部環境充滿挑戰，但我們在連續三個季度獲利後，已進入相對穩定的獲利階段。我們的營業淨收入穩定，淨利環比幾乎翻倍。

Our net operating revenue decreased by 25.3% year over year to RMB701 million from RMB939 million, mainly due to the decrease in insurance-related income by RMB273 million, but partially offset by the increase in the crowdfunding service fee of RMB56 million. The decrease of interest-related income was mainly due to the decrease in the first-year premium, but offset by the improvement of our take rate.

營業淨收入由9.39億元減少至7.01億元人民幣，較去年同期下降25.3%，主要是由於保險相關收入減少2.73億元人民幣，但被眾籌服務費增加5,600萬元人民幣部分抵銷。利息相關收入的下降主要是由於首年保費的下降，但被我們的拿取率的提高所抵消。

Our operating revenue growth sustained with a quarter-over-quarter increase of 8.1% in Q2, which demonstrated a more healthy and a solid growth trend. The take rate further increased from 34% in Q1 to 38% in Q2, primarily driven by the consistent quality enhancement in our insurance business.

第二季營業收入持續成長，季增8.1%，呈現更健康、穩健的成長態勢。接受率從第一季的 34%進一步上升至第二季的 38%，主要是由於我們的保險業務品質持續提升。

Operating costs and expenses for Q2 decreased by 68.9% year over year to RMB546 million. On a quarter-over-quarter basis, operating costs and expenses increased marginally by 2.5%.

第二季營運成本及費用年減68.9%至人民幣5.46億元。按季度計算，營運成本和費用小幅增加 2.5%。

To break it down, operating costs were RMB245 million, down by 6.1% year over year, mainly due to the decrease in professional and outsourced customer service fee of RMB33 million and a decrease in personnel costs of RMB58 million. On quarter-over-quarter basis, operating costs increased by 57.9%, mainly due to the accounting reclassification of certain crowdfunding-related service fees, from sales and marketing expenses to operating costs, as we started to charge crowdfunding service fees since April 2022.

其中，營業成本為人民幣2.45億元，年減6.1%，主要是因為專業及外包客服費用減少人民幣0.33億元，人員成本減少人民幣0.58億元。按季度計算，營運成本增加了 57.9%，主要是由於我們自 2022 年 4 月起開始收取眾籌服務費，因此將某些與眾籌相關的服務費用從銷售和行銷費用重新分類為營運成本。

Sales and marketing expenses decreased by 88.4% year over year to RMB144 million for the second quarter of 2022. The decrease was primarily due to a RMB956 million decrease in marketing expenses to third-party traffic channels and a RMB136 million decrease in outsourced sales and marketing service fees to third parties. So on a quarter-over-quarter basis, sales and marketing expenses also decreased by 29.3%.

2022年第二季銷售及行銷費用年減88.4%至人民幣1.44億元。下降主要由於第三方流量通路行銷費用減少人民幣9.56億元以及外包銷售及行銷費用減少人民幣1.36億元向第三方收取的服務費。因此，與上一季相比，銷售和行銷費用也下降了 29.3%。

G&A expenses decreased by 42.3% in Q2 to RMB86 million year over year due to the combined impact of a decrease of RMB54 million in share-based compensation expenses and a decrease of RMB6.7 million in personnel costs. On a quarterly basis, the G&A expenses decreased by 15.6%.

由於股權激勵費用減少人民幣 5,400 萬元和人員成本減少 670 萬元人民幣的綜合影響，第二季管理及行政費用年減 42.3% 至 8,600 萬元。按季度計算，G&A 費用下降 15.6%。

R&D expenses decreased by 29.8% to RMB70 million year over year and remained stable quarter by quarter, reflecting the optimization of our organizational structure during last year.

研發費用年減29.8%至人民幣7,000萬元，季減穩定，反映去年我們組織架構的最佳化。

In this quarter, we continue to report a non-GAAP profit of RMB233 million and a US GAAP net profit of RMB207 million, compared with a net loss in the same quarter of last year. This once again proved the effectiveness of our business strategy to enhance the overall revenue quality.

本季度，我們繼續報告非美國通用會計準則利潤為人民幣 2.33 億元，美國通用會計準則淨利潤為人民幣 2.07 億元，而去年同期為淨虧損。這再次證明了我們提升整體收入品質的經營策略的有效性。

As of June 30, 2022, our cash and cash equivalents and short-term investment balance increased to RMB3,288 million, an increase of RMB364 million or 12.4% from the end of the last quarter despite actively implementing a share repurchase program under the compliance framework.

截至2022年6月30日，公司在合規情況下積極實施股份回購計劃，現金及現金等價物及短期投資餘額增加至人民幣32.88億元，較上季度末增加人民幣3.64億元，增長12.4%框架。

So during the past few quarters, we have provided the following financial guidance: enhancing revenue quality and profitability and achieving profit for full year of 2022. In Q2, we have made good progress in delivering this guidance and encouraging results. So going forward, we will strive to deliver high-quality growth and enhance our long-term competitive strength.

因此，在過去的幾個季度中，我們提供了以下財務指導：提高收入品質和盈利能力，並實現2022 年全年盈利。第二季度，我們在實現這一指導和令人鼓舞的業績方面取得了良好進展。未來，我們將努力實現高品質成長，增強長期競爭力。

Thank you. That's all for my part. Now, let's turn to Q&A.

謝謝。這就是我的全部內容。現在，我們進入問答環節。

(Operator Instructions) Michael Li, Bank of America.

（操作員指示）Michael Li，美國銀行。

Thank you. (spoken in Chinese) Congratulations, management, on the performance in second quarter. And I saw the improvement of your insurance business in terms of take rate and also product mix. So my question is that what is your growth strategy for insurance business? And any plans to upgrade your product mix and channels? Thanks.

謝謝。 （中文） 恭喜管理層第二季的業績。我看到你們的保險業務在接受率和產品組合方面都有所改善。所以我的問題是，你們的保險業務成長策略是什麼？你們有計劃升級產品組合和通路嗎？謝謝。

Okay. Thank you, Michael. That's a very good question. From a user growth perspective, there were three business models for growth directly 2C, 2A2C, and 2B2C. Our core growth driver is directly 2C in the past. We also have built up our capability in 2A2C and 2B2C for a while.

好的。謝謝你，麥可。這是一個非常好的問題。從使用者成長角度來看，直接成長的商業模式有2C、2A2C、2B2C三種。我們的核心成長動力過去直接是2C。我們在2A2C和2B2C方面的能力也已經建立了一段時間。

Going forward, there were opportunities in all of the three business models. So on the directly 2C front, we need to explore the opportunities in traffic ecosystems and deploy our results accordingly. First, let's look at the WeChat ecosystem. I will talk about four growth opportunities of WeChat ecosystem.

展望未來，這三種商業模式都存在著機會。所以在直接2C方面，我們需要探索流量生態系統中的機會並相應地部署我們的成果。首先我們來看看微信生態系。我講一下微信生態的四個成長機會。

First of all, in the growth opportunity from Waterdrop Medical Crowdfunding. Waterdrop Medical Crowdfunding operates a 10-million-level DAU platform, where we effectively educate users about insurance protection and insurance awareness. And it can help us convert users into millions of new short-term insurance customers and new gift insurance policyholder each year. The conversion efficiency in our crowdfunding channel increased by more than 30% from the first half of 2022.

首先是來自水滴醫療眾籌的成長機會。水滴醫療眾籌運作千萬級DAU平台，有效教育使用者保險保障和保險意識。它可以幫助我們每年將用戶轉化為數百萬新的短期保險客戶和新的禮品保險保單持有人。眾籌通路轉換效率較2022年上半年提升30%以上。

The second is growth opportunity from the rise of WeChat video accounts. WeChat had shifted its focus and traffic to WeChat video accounts, which already have 450 million DAU so far. So users have seen better connection between their WeChat video accounts and WeChat official accounts and mini-programs, making it a very new growth venue for customer education and conversion. So our WeChat video account has now surpassed our 100 million in monthly video viewership, directed a monthly flux of a few hundred thousand new followers to our WeChat official account and posted a two-fold growth in monthly premiums for the past few months in a row.

二是微信視訊帳號崛起帶來的成長機會。微信已將重點和流量轉移到微信視訊帳戶，目前該帳戶的 DAU 已達 4.5 億。因此，用戶看到微信視訊帳號與微信公眾號和小程式之間有了更好的聯繫，這使其成為客戶教育和轉換的一個非常新的成長場所。所以我們的微信影片號碼現在月影片觀看量已經突破1億，微信公眾號每月新增幾十萬粉絲，每月保費連續幾個月增加兩倍。

The third one is growth opportunity from private domain operations of our enterprise WeChat account. The private domain operations of enterprise WeChat is another focus on WeChat. This platform offers strong user management function and infrastructure support and provides a better means for each users and user operations. Our enterprise WeChat account has reached millions of users and continue to attract hundreds of thousands of new users each month, contributing over RMB10 million premiums each month.

第三個是企業微信私域營運的成長機會。企業微信的私域運作是微信的另一個重點。該平台提供了強大的用戶管理功能和基礎設施支持，為每個用戶和用戶操作提供了更好的手段。我們的企業微信帳號已覆蓋數百萬用戶，並持續每月吸引數十萬新用戶，每月貢獻超千萬元溢價。

The fourth one is the opportunity in refining our existing user management. We consistently strengthen our user lifetime management by utilizing different scenarios of many marketing platforms, match suitable insurance products and services for our users in different scenarios, and further apply our AI capability to bolster online sales conversion. So we have effectively improved our short-term insurance conversion, repeat purchase, and policy renewal.

第四個是完善我們現有用戶管理的機會。我們不斷加強用戶生命週期管理，利用多個行銷平台的不同場景，為不同場景的用戶配對合適的保險產品和服務，並進一步運用人工智慧能力支撐線上銷售轉換。因此，我們有效提升了短期保險轉換、重複購買和續保的能力。

In addition, online user operations can also continuously deepen our understanding of user group profiles and improve our sales conversion capability, which allows us to match our users, insurance products, and sales staff more precisely, and thereby facilitating the conversion from a gift insurance or short-term insurance policyholder to a long-term insurance customer.

此外，線上用戶營運還可以不斷加深我們對用戶群概況的了解，提高我們的銷售轉換能力，使我們能夠更精準地匹配用戶、保險產品和銷售人員，從而促進從禮險或保險的轉換。短期保險保單持有人到長期保險客戶。

In addition to WeChat ecosystem, we have also explored the growth opportunity in short video or content platforms such as Douyin, Kuaishou, and Xiaohongshu. China's netizens spend more than half of their consumption time on short video or content platforms. Leveraging various market tools, including graphic ads, videos, and live streaming, it's easier to acquire high-quality, new insurance customers of better insurance awareness, education background, and high income level from social media platforms.

除了微信生態之外，我們還探索了抖音、快手、小紅書等短影片或內容平台的成長機會。中國網友一半以上的消費時間都花在短影片或內容平台。透過圖文廣告、影片、直播等多種市場工具，更容易從社群媒體平台獲取保險意識較好、教育程度較高、收入水準較高的優質新保險客戶。

So we engage these users and acquire those leads on the platform by our insurance planners who are more user need oriented. We will promote our insurance products to the users online or through telemarketing, thereby generating more incremental insurance premium.

因此，我們吸引這些用戶，並透過更以用戶需求為導向的保險規劃師在平台上獲取這些線索。我們將透過網路或電話行銷的方式向用戶推廣我們的保險產品，從而產生更多的保費增量。

Our sales productivity is very high at around RMB100,000 per capita. This presents an efficient long-term insurance conversion model for the next-generation insurance consumers and also a very important direction for our future investments and capability building.

我們的銷售效率非常高，人均約10萬元。這為下一代保險消費者提供了一種高效的長期保險轉換模式，也是我們未來投資和能力建構的一個非常重要的方向。

In terms of 2A2C, we are confident about offline brokerage model in the long run. We think the offline brokers serve as a very important complement to our customer acquisition capability. In particular, they can help us acquire more middle-class and affluent customers. So we hope to build up a professional, productive, and high-quality offline broker team dedicated to serving the Chinese new middle class and affluent urban residents.

就2A2C而言，長期來看，我們對線下經紀模式充滿信心。我們認為線下經紀商是我們獲客能力的一個非常重要的補充。特別是，他們可以幫助我們獲得更多的中產階級和富裕客戶。因此我們希望打造一支專業、高效、高素質的線下經紀團隊，致力於服務中國新中產階級和富裕城市居民。

Our short-term to medium-term goal is to build the fundamental team and the management systems and the empowerment platform within the next one to three years, while achieving growth at scale. We believe that it will become a powerful growth driver in the medium to long run.

我們中短期的目標是在未來一到三年內打造基礎團隊、管理系統和賦能平台，同時實現規模成長。我們相信，從中長期來看，它將成為強大的成長動力。

Then, on the 2B2C front, we hope to achieve win-win cooperation with partners who are rich in user resource by leveraging our strength in system building, insurance product offerings, and customer conversion. On one hand, we have established an insurance product distribution platform to connect insurance companies, agencies, and individual brokers, so as to improve the efficiency of insurance distribution and then deliver mutual benefit for partners as well as consumers.

那麼在2B2C方面，我們希望發揮我們在系統建置、保險產品供應、客戶轉換等方面的優勢，與擁有豐富用戶資源的合作夥伴實現合作共贏。一方面，我們建立了保險產品分銷平台，連結保險公司、代理商、個人經紀人，提高保險分銷效率，實現合作夥伴和消費者的互利共贏。

On second hand, we have been leveraging our strong capability in user operations and conversion to launch sales leads collaboration with third-party partners and help them monetize their user base. So this 2B2C business model has brought in more than RMB10 million monthly premiums and maintained a fast growth trend.

另一方面，我們利用強大的用戶營運和轉換能力，與第三方合作夥伴進行銷售線索合作，幫助他們實現用戶變現。這種2B2C的商業模式每月帶來的保費超過1000萬元，並維持快速成長的趨勢。

In addition to the three growth models that I have mentioned, we believe insurance services for people with pre-existing medical conditions in hospital and pharmacy scenarios also have promising growth potential. In China, there are more than 300 million people with pre-existing conditions, and their needs are almost underserved in the traditional insurance models. So we're able to accurately reach them.

除了我提到的三種成長模式之外，我們認為醫院和藥局場景下針對已有疾病的保險服務也有很大的成長潛力。在中國，有超過3億人患有既往病史，傳統保險模式幾乎無法滿足他們的需求。所以我們能夠準確地聯絡他們。

And we have customized various products to meet the needs of these people through product innovation. At present, we can reach tens of thousands of people with pre-existing conditions each month that have potential to convert to insurance consumers, which may bring incremental premiums at millions of RMB level.

而我們透過產品創新客製了各種產品來滿足這些人的需求。目前，我們每個月可以接觸到數以萬計的已有疾病的人，這些人有潛力轉化為保險消費者，這可能會帶來數百萬元等級的保費增量。

So in sum, our core growth drivers in the near term are the incremental user growth in the WeChat ecosystem and the existing user operation in the midterm -- say, in one or three years in addition to the growth from the WeChat ecosystem, we are also positive about the growth from social media platforms like Douyin, as well as the 2B distribution model. For long term, we believe our offline brokerage business and insurance services for people with pre-existing conditions both are powerful growth drivers.

所以總而言之，我們近期的核心成長動力是微信生態的增量用戶成長和中期的現有用戶營運——比如說一到三年除了微信生態的成長之外，我們對抖音等社群媒體平台以及2B分銷模式的成長也持正面態度。從長遠來看，我們相信我們的離線經紀業務和針對已有疾病的保險服務都是強大的成長動力。

That's all. Thank you.

就這樣。謝謝。

Thank you.

謝謝。

Qingqing Mao, CICC.

毛慶慶，中金公司。

Hi, management. This is Qingqing from CICC. Thanks for taking my questions. We have seen some reports posted in media regarding the unauthorized fundraising activities and malicious intermediaries in the medical crowdfunding industry. You also mentioned about it in the previous presentation.

嗨，管理層。我是中金公司的慶慶。感謝您回答我的問題。我們看到一些媒體報道醫療眾籌產業存在未經授權的募款活動和惡意中介機構。您在之前的演講中也提到過這一點。

My question is, could you further explain the service and revenue model of your crowdfunding platform? And with the current revenue contribution in Q2, can you please tell us more about the details? That's all for me. By the way, I wish you a happy Mid-Autumn Festival.

我的問題是，您能進一步解釋一下你們眾籌平台的服務和收入模式嗎？從目前第二季的營收貢獻來看，您能否告訴我們更多細節？這就是我的全部。順便祝您中秋節快樂。

(interpreted) Thank you for your question. As the leading online platform for patients with critical illness to seek financial help in China, Waterdrop Medical Crowdfunding provide users with comprehensive and detailed fundraising services, including detailed -- dedicated customer services, instant withdrawal of the funds, fundraising acceleration, and more.

（翻譯）謝謝你的提問。作為國內領先的危重患者在線尋求財務幫助平台，水滴醫療眾籌為用戶提供全面細緻的籌款服務，包括細緻的專屬客服、資金即時提取、籌款加速等。

In order to maintain high-quality services to our users, we ceased to fully subsidize the service fees and started to charge service fees from April 7 this year. The decision was made after taking into account the industry research expert advice and the platform's operational needs. The service fee was equal to 3% of the withdrawal amount for a single campaign up to a maximum amount of RMB5,000. This is in addition to the 0.6% payment channel fee charged by the third party. It should be clearly noted that the purpose of charging the service fee is to support the operational maintenance cost and expenses of the platform in order to realize the sustainable and healthy operations of the platform.

為了維持對用戶的高品質服務，我們從今年4月7日起不再全額補貼服務費，開始收取服務費。該決定是在考慮了行業研究專家的建議和平台的營運需求後做出的。服務費為單次提現金額的3%，最高金額為人民幣5,000元。這還不包括第三方收取的 0.6% 支付通道費。需要明確的是，收取服務費的目的是為了支援平台的營運維護成本和費用，以實現平台的持續健康運作。

As mentioned just now, we are committed to -- as reported just now, the platform has facilitated fundraising of RMB2.3 billion this quarter, and we generated service fee income of RMB56 million for the funds raised, meaning that the overall take rate is still lower than 3% because we still subsidize certain special cases where the patients are in critically serious situations. We haven't covered all the costs for fundraising business yet. All of our profit of the Waterdrop Group still came from the insurance-related business only.

正如剛才提到的，我們承諾——正如剛才報道的那樣，本季度平台已經促成了23億元人民幣的融資，我們為所籌集的資金產生了5600萬元的服務費收入，這意味著整體的接受率是還是低於3%，因為我們對一些病情危重的特殊情況仍有補助。我們還沒有涵蓋籌款業務的所有費用。水滴集團的所有利潤仍僅來自保險相關業務。

As mentioned just now by Shen Peng, we are committed to driving the healthy development of the whole industry. In response to the unauthorized fundraising activities and malicious intermediaries in the medical crowdfunding industry, we will continue to crack down on such activities.

剛才沉鵬提到，我們致力於推動整個產業的健康發展。針對醫療眾籌產業中未經授權的集資活動和惡意中介機構，我們將繼續嚴厲打擊此類活動。

The issue of unauthorized fund raising activity is not only the phenomenon in the field of medical crowdfunding industry, but also an issue relating to the internet governance. In the future, we will continue to improve the quality of our services and provide users with more professional, detailed, and sustainable services. We will always actively take social responsibility and work hand-in-hand with the National Healthcare Security Administration and the regulatory authorities, as well as other relevant social organizations, to make joint efforts to maintain the healthy ecosystem of the whole industry. Thank you.

未經授權的集資活動問題不僅是醫療眾籌產業的現象，也是涉及網路治理的問題。未來，我們將持續提升服務質量，為使用者提供更專業、更細緻、更永續的服務。我們將始終積極承擔社會責任，與國家醫療保障局和監管部門以及其他相關社會組織攜手努力，共同努力維護整個產業的健康生態。謝謝。

Thank you. And ladies and gentlemen, we are now approaching the end of the conference call. Thank you for your participation on today's conference. You may now disconnect, and have a nice day.

謝謝。女士們、先生們，我們的電話會議即將結束。感謝您參加今天的會議。現在您可以斷開連接，祝您有美好的一天。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。