Waterdrop Inc (WDH) 2023 Q4 法說會逐字稿

Good morning, everyone. This is [Tracy Lisang], Investor Relations, required to welcome everyone to Waterdrop's Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded.

大家，早安。我是投資者關係部 [Tracy Lisang]，歡迎大家參加 Waterdrop 第四季和 2023 財年財報電話會議。（操作員說明）提醒一下，今天的電話會議正在錄音。

Please note the discussion today will contain forward-looking statements within the Safe Harbor provisions of the US Private Securities and the Litigation Reform Act of 1985. Forward-looking statements are subject to risks and uncertainties and the comps actual results differ materially from our current expectations. Potential and uncertainties include but not limited to those outlined in our public filings with the SEC.

請注意，今天的討論將包含美國私人證券安全港條款和 1985 年訴訟改革法案中的前瞻性聲明。前瞻性陳述受到風險和不確定性的影響，實際結果與我們目前的預期有重大差異。潛在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內容。

The company does not undertake any obligation to update any forward-looking statements, except as required and applicable law. Also, this call includes discussion of certain non-GAAP measures. Please refer to our earnings release for a compilation between non-GAAP and GAAP. Joining us today on the call are Peng Shen, our Founder, Chairman and CEO; Mr. Yang Guang, Co-Founder, Director, SVP, and GM of the International business;Mr. Zhu Zetao, GM of Crowdfunding and Pharmatech Business; [Mr. Miguel], Board Secretary.

除根據要求和適用法律外，本公司不承擔更新任何前瞻性聲明的義務。此外，本次電話會議也討論了某些非公認會計準則措施。請參閱我們的收益報告，以了解非公認會計原則和公認會計原則之間的彙編。今天參加我們電話會議的還有我們的創辦人、董事長兼執行長沉鵬；楊光先生，共同創辦人、董事、資深副總裁、國際業務總經理；朱澤濤，眾籌及醫藥科技業務總經理； [先生。米格爾]，董事會秘書。

And we'll be happy to take some of the questions in Mandarin line at the end of the conference call.

我們很樂意在電話會議結束時用普通話回答一些問題。

Hello, everyone. This is Shen Peng. Let's talk about our industry development first. Looking back in 2023, thanks to the various economy stimulus targets, the Chinese economy shows a gradually stable and recovery trend. With setback, the regulation of the personal insurance industry remains cautious, as it is continue to evolve towards high-quality development.

大家好。這是沉鵬。我們先來說說我們的產業發展。回顧2023年，得益於各項經濟刺激目標，中國經濟呈現逐步穩定回升的態勢。遭遇挫折後，人身保險業監理仍保持謹慎，持續邁向高品質發展。

So, as we saw challenges and opportunities, we firmly relate with the clear guidance and gradual implementation of new regulation policies that helped in vision stability and sustainability of the industry will improve further in the future. Market participates with brand and technological advantages are more likely to stand out, as such, we will build up new quality productivities with improved technologies and innovative business models, leading our industry to its transformation and upgrading.

因此，當我們看到挑戰和機會時，我們堅定地支持新的監管政策的明確指導和逐步實施，這有助於展望未來行業的穩定性和可持續性將進一步提高。具有品牌和技術優勢的市場參與者更容易脫穎而出，我們將以改進的技術和創新的商業模式打造新的優質生產力，引領產業轉型升級。

We'll feel the confidence about this. In terms of financial performance, in Q4 of 2023, the company continues to uphold its entrepreneurial spirit and pursue healthy business development, which was adapted by stable and resilient financial results. Total revenue reached about 659 million since Q1 of 2022, we have continuously recorded stable profitability for every quarter.

我們會對此充滿信心。財務表現方面，2023年第四季，公司持續秉持創業精神，追求業務健康發展，財務表現穩定且富有韌性。自2022年第一季以來，總營收達到約6.59億，每季我們都持續錄得穩定的獲利能力。

In the fourth quarter, the front-line performance further improved with GAAP net profit attributable to the company reaching about 59.1 million, representing a 61% Q-on-Q growth. Official year 2023, the GAAP net profit attributed to the company is about 167 million. In the meantime, we saw consistent cash inflow from operations, building up our cash balance. As of the end of 2023, the cash, cash equivalents and short-term investments totaled about 3.39 billion, an 8% increase from last quarter.

第四季度，第一線業績進一步改善，歸屬於公司的GAAP淨利達到約5,910萬美元，較上季成長61%。2023年官方公佈的GAAP淨利約為1.67億美元。同時，我們看到來自營運的持續現金流入，增加了我們的現金餘額。截至2023年末，現金、現金等價物及短期投資合計約33.9億元，較上季成長8%。

Our MI cash reserves strengthened our foundation for carrying out steady business development plan; good enough for our long-term growth initiatives and enabling us to embrace industry changes with confidence and technology competitiveness. From a business perspective, in Q4, all business segments maintained stable and healthy development, continuously solidifying our leading position in the industry.

我們的MI現金儲備為實施穩健的業務發展計畫奠定了基礎；足以滿足我們的長期成長計劃，並使我們能夠充滿信心和技術競爭力地迎接行業變革。從業務來看，四季各業務部門維持平穩健康發展，產業領先地位不斷鞏固。

For life insurance marketplace despite difficult industry situation, we actively developed the new products and models with our insight and (inaudible) and continuously generated steady growth. (inaudible) We remain committed to our (inaudible) user first service promote. Continuously particularly in development of multi-level medical support system. We consistently improved its transparency and operational efficiency while in the segment was reduced compared to last quarter.

對於壽險市場，儘管產業形勢嚴峻，我們憑藉洞察力積極開發新產品和新模式（聽不清楚），並持續實現穩定成長。（聽不清楚）我們仍致力於（聽不清楚）用戶至上的服務推廣。特別是不斷發展多層次醫療保障體系。我們不斷提高其透明度和營運效率，而該部門與上季相比有所減少。

(spoken in mandarin) We continuously enhance its service capability through business upgrade. In Q4, the number of empowering clients increased significantly, making good growth in our cooperation with both domestic and foreign comfortable company. For the full year, this segment recorded year-over-year revenue growth of nearly 70%.

（國語）我們透過業務升級不斷提升服務能力。第四季度，賦能客戶數量大幅成長，與國內外舒適公司的合作取得良好成長。全年來看，該部門的營收年增近70%。

For R&D, as a technology-driven company, we maintained substantial investment in R&D and applied some of those in AI large land remodel, OM patents. In the fourth quarter, our stock development LLM were artificial and completed internet test and embraced external application to intermodal cases which brought efficiency improvements throughout the entire insurance services.

研發方面，作為一家技術驅動型公司，我們保持了大量的研發投入，並在AI大土地改造、OM專利等方面進行了一些應用。第四季度，我們的存量開發LLM人工完成了網路測試，並對外應用於聯運案件，帶來了整個保險服務的效率提升。

Now, I will touch upon our charity and ESG initiative. We do actively incorporate ESG principles into various effect of our operations, environmental protection, talent in the community investment, tightly integrated ESG values with our corporate DNA. The latest ESG ratings involves Waterdrop in China's leading ESC institution tribute. It shows that our ESG ratings have recently been upgraded to A, the leading score among players in the insurance sector.

現在，我將談談我們的慈善和 ESG 倡議。我們積極將ESG原則融入我們的營運、環境保護、人才社區投資等各個方面，將ESG價值觀與我們的企業DNA緊密結合。最新的ESG評級將水滴納入中國領先ESC機構的致敬之列。這顯示我們的ESG評級近期已提升至A級，在保險業中處於領先水準。

So, without charity perform, we remain gallant with our CSR. We (spoken in mandarin) medical support information system, which have affected most assessment security critical unit assurance, medical assistance and charity in finance risks. Upon its launch in August 2023, it has assisted the government in establishing provincial level medical support platform. By year-end, nearly a thousand patient has applied on this platform. These projects have been honored with the (inaudible).

因此，即使沒有慈善表演，我們仍然勇敢地履行我們的企業社會責任。我們醫療保障資訊系統，影響了大部分評估安全關鍵單位保障、醫療救助和慈善金融風險。2023年8月上線後，協助政府建立省級醫療保障平台。截至年底，該平台已有近千名患者申請。這些項目均榮獲（聽不清楚）。

In December 2023, in a response to against an earthquake, (inaudible) and emergency team launched fundraising project to (inaudible). And I would also like to update everyone with our actions taken in the capital market. Regarding the share buyback, as of the end of February 2024. The company has cumulatively repurchased about 39.7 million on open market at a total nearly $88.8 million which affirms our confidence in our business value and its long-term perfect.

2023 年 12 月，為因應地震，（聽不清楚）緊急小組啟動了籌款項目，（聽不清楚）。我也想向大家介紹一下我們在資本市場的最新舉措。關於股票回購，截至2024年2月底。公司已在公開市場累計回購約3,970萬股，回購總額近8,880萬美元，堅定了我們對公司業務價值及其長期完善的信心。

Furthermore, we repurchased shares will be used for ESOP to motivate our challenging employees. Moreover, Waterdrop continues to uphold our commitment to our shareholders; our Board of Directors have approved a special cash dividend signed to a whole of about $15 million, $3 million with $0.04 per ADS.

此外，我們回購的股票將用於員工持股計畫（ESOP），以激勵我們富有挑戰性的員工。此外，水滴繼續恪守對股東的承諾；我們的董事會已批准特別現金股息，總額約為 1500 萬美元，其中每份美國存託股 0.04 美元，其中 300 萬美元。

On the healthy financial performance of the company and its commitment to shareholder value. The company is pleased to bring in effect its first dividend program, and we will strive to continue to return value to shareholders in the future. This is a recap of our development in Q4 competency on our business outlook within the industry.

關於公司健康的財務表現及其對股東價值的承諾。公司很高興實施首次股息計劃，未來我們將努力繼續為股東回報價值。這是我們對產業內業務前景第四季能力發展的回顧。

Looking into 2024, our strategies are -- for insurance metrics base business, we were here to use at first the core principals committing to providing the back-end service to emerging new leaders. Meanwhile, we would develop more customized, better useful money -- and that is the money insurance product through technological innovation to target various (inaudible).

展望 2024 年，我們的策略是－對於保險指標基礎業務，我們首先使用致力於為新興新領導者提供後端服務的核心原則。同時，我們會透過科技創新，開發出更多客製化、更好用的貨幣──那就是貨幣保險產品。（聽不清楚）。

For medical performance, we are continuously take advantage of our [top end] technological capabilities to ensure sustainable development while fulfilling CSR and ESG. For eFan platform, we will continue to leverage capabilities to our advantage actually employ more invasive models which will definitely increase our network communication and create a new growth engine for our long-term growth.

在醫療績效方面，我們不斷利用我們的[高端]技術能力來確保永續發展，同時履行CSR和ESG。對於eFan平台，我們將繼續發揮我們的優勢，實際採用更具侵入性的模型，這必將增加我們的網路溝通，並為我們的長期成長創造新的成長引擎。

With abundant cash reserve, the company will continue to stay in cooperation and investment opportunities around insurance and health care sectors. As for technology, we will accelerate technological retirement by enhancing our AI capability and to the core technological note, which is for the long-term development based on nearly 8 years of the business accumulation, our self-developed LLM has significantly improved internal efficiency and with a further (inaudible).

憑藉充裕的現金儲備，公司將持續維持圍繞保險、醫療健康領域的合作與投資機會。技術方面，我們將透過增強AI能力來加速技術退役，核心技術是為了長遠發展，基於近8年的業務積累，我們自研的LLM顯著提高了內部效率和進一步（聽不清楚）。

Now I will pass (inaudible) to discuss our insurance market (inaudible).

現在我將透過（聽不清楚）討論我們的保險市場（聽不清楚）。

In the fourth quarter, the growth of personal insurance financing industry is very still down despite all efforts on new and valid equation and the long-term development and continuously optimize operations. Meanwhile, we actively explored new product offering and platforms expanding customer acquisition channels gaining information for advanced high-quality business segment.

四季度，人身保險金融業儘管努力求新、求實、長遠發展，不斷優化運營，但增速仍顯低迷。同時，我們積極探索新的產品和平台，拓展獲客管道，為先進的優質業務板塊獲取資訊。

In the fourth quarter, FRP reached 1.53 billion. Insurance-related income reached 588 million, and operating profit reached 128 million. For the full year of 2023, the FYP reached about 7.11 billion. Insurance related income reached about 2.34 billion and operating profit reached 528 million. In focus of our FRP of short-term insurance products reached over 990 million. During this quarter, the company strengthened operational management for users, enhancing policy service and optimize user engagement. As a result, it increased customer certification and satisfaction.

第四季FRP達15.3億。保險相關收入5.88億元，營業利潤1.28億元。2023年全年，五年計畫約71.1億元。保險相關收入約23.4億元，營業利益達5.28億元。重點關注的短期保險產品保單規模超過9.9億份。本季度，公司強化用戶營運管理，提升政策服務水平，優化用戶參與度。結果，它提高了客戶認證和滿意度。

The number of users has increased with number of policies per user increased by (inaudible) and the renewal for the short-term insurance remains at a level of 0.25. We were at client users' production enabling the quality and the product choice on leading channels. As a result, it increased premium by 68.6% QoQ, leading to 34.5% sequential increase in premium. As we further strengthened our business offline, the long-term insurance policy reached 530 million, an increase of 22.9% YoY. Among these, life insurance premiums include 115.2% YoY.

用戶數量隨著每個用戶的保單數量增加（聽不清楚）而增加，短期保險的續保保持在 0.25 的水平。我們為客戶用戶的生產提供領先通路的品質和產品選擇。因此，保費環比增長 68.6%，環比增長 34.5%。線下業務進一步加強，長期保單規模達5.3億份，較去年同期成長22.9%。其中，壽險保費較去年同期成長115.2%。

During this quarter, we improved the quality for long-term insurance users to strengthen policy shift with insurance companies to advance more capitalized. Showing the renewal of high interest products in the third quarter, we established (inaudible) in our industry. In terms of online worker channels, we emphasized on the integrated capability of our product portfolio, ensuring a better user experience. At the same time, we cooperate with high-quality stock media channels to grow a high-quality user base.

本季度，我們提升長期保險用戶質量，加強與保險公司的政策轉換，並推動資本化。顯示第三季高興趣產品的更新，我們在我們的行業中建立了（聽不清楚）。在線上員工管道方面，我們強調產品組合的整合能力，確保更好的使用者體驗。同時，我們與優質存量媒體管道合作，培育優質用戶群。

Our offline growth response, we launched the World One program in this quarter. Offline growth rate for all high resources to better serve those high-net-worth customers; this initiative in cooperation with industry partners introduced a one-stop platform in comparison to insurance, insurance planning, and profession. As well as empowered the team of high-quality workers. During the fourth quarter, we spoke to people -- the top performance agents from the team. The number of active agents increased by 108% YoY and products with parallel of long-term insurance products rose by 8% YoY.

我們的線下成長響應，我們在本季度推出了 World One 計劃。所有高資源線下成長率，更能服務高淨值客戶；該舉措與行業合作夥伴合作，推出了保險、保險規劃和專業的一站式平台。並賦能高素質員工隊伍。在第四季度，我們與團隊中表現最好的經紀人進行了交談。活躍代理人數量較去年同期成長108%，與長期保險產品平行的產品較去年同期成長8%。

In the fourth quarter, one of our insurance package enhanced our (spoken in mandarin) but two things within the cooperation of our setback; including R&D, marketing, and product offering. (spoken in mandarin) contributed the FRP of 102 million in the fourth quarter. The policy quality remains as the industry-leading level with a renewal rate remaining above 90%. In the fourth quarter, we continued to deepen its innovative capabilities across health insurance and saving insurance. Regarding health insurance, we launched various of innovative products to our broader user base. Among this, the (spoken in mandarin) health insurance essentially covers all groups with chronic disease, critical disease and illnesses and minor alignment. Through our entitled environment stability users with pre-existing conditions can also buy insurance online reliably.

在第四季度，我們的一項保險計劃增強了我們的（普通話）但在我們的挫折中合作的兩件事；包括研發、行銷和產品提供。 （國語）第四季貢獻的FRP為1.02億。保單品質維持業界領先水平，續保率維持在90%以上。第四季度，我們持續深化健康險、儲蓄險等領域的創新能力。健康險方面，我們向更廣泛的用戶群推出了多種創新產品。其中，健保基本上涵蓋所有慢性病、重大疾病、小病及小病族群。透過我們享有的環境穩定性，患有既往疾病的使用者也可以可靠地在線購買保險。

On top of regular health insurance plans, we also launched a product called (spoken in mandarin). This product is the first online long-term critical units insurance plan that covers users with pre-existing conditions. Moreover, we developed further this service and collected (inaudible). In terms of saving insurance products, we launched a product -- the industry first maternal and in fact insurance combined to cover the entire pregnancy period.

除了常規健康保險計劃之外，我們還推出了名為「健康保險」的產品。(國語).該產品是首個涵蓋已有疾病使用者的線上長期重大單位保險計劃。此外，我們進一步開發了這項服務並收集了（聽不清楚）。在儲蓄保險產品方面，我們推出了業界首創的孕產險和事實上險相結合的產品，涵蓋整個懷孕期間。

This product has been widely recognized by users. In terms of saving insurance products, we launched a monthly life insurance product, different from the traditional endowment or other products being marketed, the monthly payment plan is more flexible for users with lower foothold. This is an important practice for us to serving diversified needs across different market segments.

該產品得到了用戶的廣泛認可。在儲蓄保險產品方面，我們推出了月付壽險產品，與傳統的兩全或其他在售產品不同，月付方案對於立足點較低的用戶來說更加靈活。這是我們服務不同細分市場多元化需求的重要實踐。

Next, let me brief you about our development of AI. We apply our insurance focus on (spoken in mandarin). Currently we already covers more growth in the industry including conversion and rider claims perfecting customer service and more agent records, professional service such as end-to-end requirements consulting on the insurance policy terms and clearing confusions to be sorted. We can also (spoken in mandarin) about two major applications; the AI insurance conversion and the user-aid business.

以下我向大家介紹我們人工智慧的發展。我們將保險重點應用於(國語).目前，我們已經涵蓋了行業的更多成長，包括轉換和附加索賠、完善客戶服務以及更多代理記錄、專業服務，例如保單條款的端到端要求諮詢和消除混亂。我們也可以（用國語）了解兩個主要應用； AI保險轉換和用戶援助業務。

Both work on EBITDA on the threshold model where AI insurance conversion acts as smart agent that is equipped with less modern technology, typical of emergency communication with customers in real-time. It can recognize insurance policy and product appearing to the customers as per their needs. It can materialize a record amount of insurance knowledge better as we believe. In this context, the AI insurance can mature including dialogue for opportunity up to 40 minutes, and we are taking into effect the work we are saving over for an average human worked.

兩者都在 EBITDA 的閾值模型上工作，其中人工智慧保險轉換充當智慧代理，配備不太現代的技術，典型的是與客戶即時進行緊急通訊。它可以根據客戶的需求識別出現在客戶面前的保險單和產品。正如我們所相信的那樣，它可以更好地實現創紀錄的保險知識。在這種情況下，人工智慧保險可以成熟，包括長達 40 分鐘的機會對話，我們正在實施我們為普通人工作節省的工作。

The second application with super system can be an entirely co-piloted systems for aiding human agents. For example, based on the conversation between AM and users, it can play a real-time professional kit for insurance reality patterns and recognize more similar products for each converting their time into fine output in a way it’s easier for users to understand and approve insuring the services that patients require in creating customer satisfaction. Concurrently, an assistant has been internally launched at every job. In the development process, we have opportunity in patterns in accumulating multiple patterns related to the last model. In the future, we will continue to hear the path of technology in the industry where the high-quality insurance is similar. This concludes my AI insurance model.

超級系統的第二個應用可以是一個完全副駕駛系統，用於輔助人類特工。例如，根據AM和用戶之間的對話，它可以播放保險現實模式的即時專業工具包，並識別出更多類似的產品，將他們的時間以用戶更容易理解的方式轉化為精細的輸出並批准為患者所需的服務提供保險，以創造客戶滿意度。同時，每項工作都在內部設立了一名助理。在開發過程中，我們有機會在模式中累積與上一個模型相關的多個模式。未來，我們將繼續聆聽優質保險類似產業的科技之路。我的人工智慧保險模式到此結束。

I will now turn it over to (inaudible).

我現在將其移交給（聽不清楚）。

Thank you. As of Q4 2023, accumulated total of 450 billion donated more than R52.6 billion to over 3.1 million patients; so medical (inaudible).

謝謝。截至2023年第四季度，累計4,500億蘭特向超過310萬名患者捐贈了超過526億蘭特；如此醫療（聽不清楚）。

I Q4, our platform established with valuable clients which provides (inaudible)with over our offline and high operating additional further to hospitalize patients. In the first quarter, the platform service improvements placed a reminder from public to communicate the frequent blow of patients and fund reviews. The problem with revivers can run them and check the notes of any infection, and supervise the entire running process.

I Q4，我們與有價值的客戶建立的平台，為我們的線下和高運營提供了（聽不清楚）進一步住院患者的服務。一季度，平台服務改進，提醒民眾溝通患者頻繁的打擊和資金審查。有問題的恢復者可以運行它們並檢查任何感染的註釋，並監督整個運行過程。

By continuously comparing or optimizing the process to make the critical units of patient more accurate and efficient; we have continuously communicated in the establishment of our medical sales force unit actively responding to the amendment of charitable law in China. In Q4, the amended version of (inaudible) have passed and incorporated in the events into its probation. Furthermore, on December 21, our medical support to the same project has been awarded (inaudible) hosted by the people saving our lives.

透過不斷比較或優化流程，使患者的關鍵單元更加準確和有效率；我們在醫療銷售團隊的組成上不斷溝通，並積極回應中國慈善法的修改。在第四季度，（聽不清楚）的修訂版本已通過並將事件納入其試用期。此外，12 月 21 日，我們對同一計畫的醫療支援已由拯救我們生命的人們授予（聽不清楚）。

In the fourth quarter, the eFin, our clinical trial patients have maintained steady and healthy investment. We have deals worth of about 20.8 million. From the full year revenue, it was up by 100 million with an increase of 6.9% YoY. In Q4, the collaboration was one measured in 67 from similar companies and CROs. We made great progress on partnering with more legitimacy during this quarter with perfectly joined with supplier leads of two of the Top 5 global entities. And finally, the kick-off projects were welcome and more projects are expected to officially launch in 2024.

第四季eFin，我們的臨床試驗患者保持了穩定健康的投入。我們的交易價值約為 2080 萬美元。從全年營收來看，年增1億，成長6.9%。第四季度，類似公司和 CRO 的合作有 67 家。本季度，我們在與全球前 5 名實體中的兩家供應商領導的完美合作下，在更具合法性的合作方面取得了巨大進展。最後，啟動計畫受到歡迎，預計更多計畫將於 2024 年正式啟動。

Additionally, the events performed by us were operational during this refinancing with Top 3 global FCSRs and officially initiated patient recruitment. In Q4, the company signed 82 new projects. With the rapid development of various drives with R&D, the (inaudible) in China. The infant clause platform continues to improve our ability of quality insurance. So, efficient operation and capabilities and AI-driven message enrolled record number of patients and projects.

此外，我們舉辦的活動在本次再融資期間與全球前 3 名 FCSR 一起運作，並正式啟動了患者招募。第四季度，公司新簽項目82個。隨著各種驅動器研發的快速發展，（聽不清楚）在中國。嬰兒條款平台不斷提升我們的優質保險能力。因此，高效的營運和功能以及人工智慧驅動的消息註冊了創紀錄的患者和項目數量。

Our project categories including dermatology, respiratory, cardiovascular, immunology, diverse diseases in for line. In terms of CROs, we are acknowledging the experienced operation with perfectly secured inclusive high projects (inaudible) providing more partners with more enhancements such as the insights of medical affairs, product management, product innovation, patient recruitment and mathematics and statistics, and so on.

我們的計畫類別包括皮膚科、呼吸科、心血管科、免疫科等多種疾病。在CRO方面，我們認可其經驗豐富的營運和完善的包容性高專案（聽不清楚）為更多的合作夥伴提供更多的增強，例如醫療事務、產品管理、產品創新、病患招募和數學統計等方面的見解。

Regarding patient service, the opportunity to cooperation and leading the global pool in the patient health management of chronic disease by interpreting technologies that has live models significantly enhances patients service experience and efficiencies, getting higher recognition from customers who also signed contracts with minimum permitting domestic against the entities for medical patient operations, patient application and data insights continuously expanding the number of end service scope of cooperation point.

在患者服務方面，透過具有真人模型的解讀技術，在慢病患者健康管理方面有機會合作並引領全球，顯著提升患者服務體驗和效率，獲得了客戶的高度認可，並以國內最低許可簽訂了合約。

And we continue to strive for technological empowerments while patients having done operations, the integrated AI-driven technology is well performed intelligently and in finding keywords and into action its intention from the conversation with users, allowing the patient to generate single click and reliable segments. Such an application will quickly improve the service quality compared to traditional methods. Reports can be handed over to their young ones to do special financial performance.

我們不斷努力技術賦能，在患者進行手術的同時，整合的人工智慧驅動技術表現出色，能夠從與用戶的對話中找到關鍵字並將其意圖轉化為行動，讓患者能夠產生點擊和可靠的細分。與傳統方法相比，這樣的應用程式將快速提高服務品質。可以將報告交給他們的年輕人來做特別的財務表現。

Thank you, everyone. And we will now move to our financial highlights for the fourth quarter. Before I go into details, 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 financial performance on both, year-over-year and quarter-over-quarter basis, respectively.

謝謝大家。現在我們將討論第四季的財務亮點。在詳細介紹之前，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，分別了解我們同比和環比財務業績的詳細資訊。

For the fourth quarter, our complicated -- our commitment to presume steady and healthy development non-operating revenues decreased by 3% YoY about 659 million. The full year insurance revenue reached about 2.63 billion. Among that insurance related income amounted to about 2.34 billion, with a nominal decrease of 8.5% YoY. Compounding service fees amounted to 162 million with an increase of 4.4% YoY. Critical points of high operation income amounted to 100 million, representing an increase of nearly 70% YoY.

第四季度，我們複雜－我們承諾平穩健康發展，營業外收入較去年同期下降3%約6.59億元。全年保險收入約26.3億元。其中保險相關收入約23.4億元，年減8.5%。複利服務費1.62億元，年增4.4%。營業收入高點臨界點達1億，較去年成長近70%。

Our operating cost and expenses, on YoY basis against the last quarter we consolidated financial results of (spoken in mandarin) with full year the operating cost and expenses increased by 13.5% YoY to 2.64 billion. For the full year, operating cost and incentive increased by -- for Q4 it increased by 4.3% YoY to 633 million. On quarter-on-quarter basis, the operating cost and incentives increased by 8.1% as the adjusted to same page to adapt to changes to -- in the external environment.

我們的營運成本和費用，與上季相比，我們綜合了（國語）財務業績，全年營運成本和費用年增 13.5% 至 26.4 億。全年營運成本和激勵措施有所增加——第四季度年增 4.3% 至 6.33 億美元。環比來看，營運成本和激勵措施為適應外部環境變化而調整，較去年同期成長8.1%。

For Q4, operating cost were about 202 million, increased by 8.5% year-over-year, and decreased by 3.2% in the QoQ. The sequential decrease is primarily due to the decrease of 5.8 million in service fees. And secondly, a decrease of 2.3 million in the cost of patient including compounding fee for Q4 economic sense has increased by 26.9% YoY to 175 million. The increase was primarily due to the consolidation of (spoken in mandarin) for generating expenses of 39 million. And secondly, an increase of 15.8 million on third-party traffic channel fee, personally offset by a decrease of 21.1 million in personnel costs and share-based comprehensive expenses.

第四季營業成本約2.02億元，年增8.5%，季減3.2%。環比下降主要是由於服務費減少了580萬元。其次，第四季經濟意義上的患者費用（包括複利費）減少了230萬，年增26.9%至1.75億。增加的主要原因是合併（普通話）產生的費用為 3,900 萬。其次，第三方流量通路費用增加了1580萬，個人成本和股份綜合費用減少了2110萬。

On Q3 basis, it decreased by 6.9%, primarily due to a decrease of 11.3 million in reference marketing, personnel costs and share-based comprehensive expenses. G&A expenses were 96 million, a decrease of 19.1% and 16.3% YoY and QoQ. The decrease was mainly about personnel costs and share-based comprehensive expenses, and professional service fee. R&D expenses was 59.8 million, a decrease of 13.6% YoY and 19.1% QoQ respectively. The decrease were mainly about personnel costs and share-based comprehensive expenses.

第三季下降6.9%，主要參考行銷、人員成本和股權綜合費用減少1,130萬。G&A 費用為 9,600 萬元，年比和季比分別下降 19.1%和 16.3%。減少的主要原因是人員成本和股份綜合費用以及專業服務費。研發費用為5,980萬元，年減13.6%，季減19.1%。減少的主要原因是人員成本和股份綜合費用。

For Q4, net profit attributed to the company was 59.1 million or GAAP net profit attributes for the company’s shareholders was 74.7 million. For Q1 2022, the company has achieved from Q1 2022 we have achieved GAAP net profit for eight consecutive quarters, as well year net income, cash, cash equivalents, and short-term investments amounted to 3.39 billion, an 8% increase from the last quarter. The abundant cash reserves positioned us well to focus on our long-term development priority.

第四季度，歸屬於公司的淨利潤為 5,910 萬美元，或歸屬於公司股東的 GAAP 淨利潤為 7,470 萬美元。For Q1 2022, the company has achieved from Q1 2022 we have achieved GAAP net profit for eight consecutive quarters, as well year net income, cash, cash equivalents, and short-term investments amounted to 3.39 billion, an 8% increase from the last四分之一.充裕的現金儲備使我們能夠專注於我們的長期發展重點。

To finally reward shareholders and investors’ confidence, our Board of Directors has approved a special test dividend to approximately 15 million with 0.4 cents for ordinary shares and 0.4 cents for ADS. The shareholders of ordinary shares and ADS of the recorded date of April 19, 2024, US at same time are entitled to receive it.

為了最終回報股東和投資者的信心，我們的董事會批准了約 1500 萬股的特別測試股息，其中普通股 0.4 美分，美國存託股 0.4 美分。同時登記日為美國2024年4月19日的普通股和ADS股東均有權領取。

In summary, we made our financial guidance to the market as we achieved the profitability in each quarter of 2023. By 2024, we will continue to create shareholder value with healthy growth and profit.

綜上所述，我們在2023年每季實現獲利的同時，對市場做出了財務指引。到2024年，我們將繼續以健康的成長和利潤創造股東價值。

And ladies and gentlemen, that will conclude today's conference call. We do thank you for joining. Have a good time.

女士們、先生們，今天的電話會議到此結束。我們非常感謝您的加入。玩的很開心。

The conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。我們感謝您參加今天的演講。現在您可以斷開線路。