Waterdrop Inc (WDH) 2024 Q3 法說會逐字稿

Good morning, everyone. This is [Tracy Lee] from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop's Third Quarter 2024 Earnings Conference Call. All participants are in a listen only mode in our English line. As a reminder, today's conference is being recorded.

大家早安。我是 Waterdrop 投資者關係部門的 [Tracy Lee]。我很高興歡迎大家參加 Waterdrop 2024 年第三季財報電話會議。在我們的英語熱線中，所有參與者都處於只聽模式。提醒一下，今天的會議正在錄製中。

Please note that this discussion today will contain forward-looking statements made under safe harbor provisions of Private Securities and the Litigation Reform Act of 1995.

請注意，今天的討論將包含根據《私人證券法》和《1995 年訴訟改革法》的安全港條款所作的前瞻性陳述。

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but not limited to, those outlined in our public filings with the SEC. The company does not undertake any obligation to update any forward-looking statement except as required under applicable law.

前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。潛在風險和不確定性包括但不限於我們向美國證券交易委員會提交的公開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 matters. Please refer to our earnings release for a reconciliation between non-GAAP and GAAP. Joining us today on the call are Mr. Shen Peng, our Founder, Chairman and CEO; Mr. Ran Wei, Director and GM of Insurance Business; Mr. Xu Xiaoying, Head of the Finance Department; and Mrs. Jasmine Lee, Board Secretary.

此外，本次電話會議也討論了某些非公認會計準則事項。請參閱我們的收益報告，以了解非 GAAP 和 GAAP 之間的對帳。今天參加電話會議的有我們的創辦人、董事長兼執行長沈鵬先生、保險業務總監兼總經理冉煒先生、財務部長徐小英先生和董事會秘書李茉莉女士。

We will be happy to take some questions in the Mandarin line at the end of the conference call.

我們將很樂意在電話會議結束時透過普通話熱線回答一些問題。

Hello, everyone. This is Shen Peng. In Q3, the company remains committed to healthy operations and sustainable growth, delivering solid results. Total revenue for this quarter reached CNY704 million, and net profit attributable to ordinary shareholders was around CNY92.8 million, reflecting a year-over-year increase of over 150%. For the 9 months of 2024, the company reported total revenue of CNY2.08 billion, up 5.8% year-on-year, and net profit attributable to ordinary shareholders of CNY216 million, 142% increase compared to the last year.

大家好。我是沈鵬。第三季度，公司繼續致力於健康營運和永續成長，並取得了穩健的業績。本季總營收達7.04億元人民幣，歸屬於普通股股東的淨利約9,280萬元人民幣，較去年同期成長逾150%。2024年前9個月，公司實現營業總收入20.8億元，較去年成長5.8%；歸屬於普通股股東的淨利2.16億元，較去年成長142%。

Since Q1 of 2022, we have achieved profitability for 11 consecutive quarters. In Q3, each of our business segments focus on enhancing user value with key metrics showing steady growth. In insurance business, we targeted senior, mothers and individuals with pre-existing conditions, expanding our network of insurers and launched of several innovative products. First year premiums totaled over CNY2 billion, a significant increase year on year, with operating profit margin above 20%.

自2022年第一季以來，我們已連續11個季度實現盈利。第三季度，我們各業務部門均著力提升用戶價值，關鍵指標穩定成長。在保險業務方面，我們瞄準老年人、母親和有既往疾病的個人，擴大了我們的保險公司網絡，並推出了多種創新產品。首年保費收入超過20億元，較去年同期大幅成長，營運利潤率超過20%。

In medical crowdfunding, we actively responded to new charity law and the merits for administration of online service platform for individuals seeking finance help, both user members and crowdfunding amounts continue to rise while the segment loss was further narrowed, reinforcing the sustainability of our operations.

醫療眾籌領域，我們積極響應新慈善法及個人理財網路服務平台管理辦法的利好，用戶規模及眾籌金額持續上升，分部虧損進一步收窄，增強了經營的可持續性。

In the healthcare sector, our strong execution capabilities allow us to expand our network with pharmaceuticals with a number of enrolled patients growing both year-on-year and quarter-over-quarter. We're also delighted to report notable progress in AI. As a tech company rooted in insurance and health care, Waterdrop is on the forefront of integrating large language models into our industry.

在醫療保健領域，我們強大的執行能力使我們能夠擴大與製藥公司的網絡，入院患者的數量逐年和逐季度都在增長。我們也很高興地報告人工智慧領域取得了顯著進展。作為一家紮根於保險和醫療保健領域的科技公司，Waterdrop 處於將大型語言模型融入我們行業的前沿。

Following two years of focused development, we launched AI Top Sales Platform 3.0, conversational AI platform that customized AI sales agents for businesses, features, advanced AI abilities of outbound calling, and conversational interaction, capable of supporting a voice-based sales and customer service across various B2C industry and helping our ecosystem partners enhance service quality and efficiency.

經過兩年的專注研發，我們推出了AI智銷平台3.0，這是一款對話式AI平台，為企業客製化AI銷售員，提供豐富的功能，具備外呼、對話互動等先進的AI能力，能夠支援各B2C產業的語音銷售與客服，幫助生態夥伴提升服務品質與效率。

Following our collaboration with P&C insurers in Q2, the AI Top Sales 3.0 platform reached a new milestone in commercialization this quarter. We expanded our partnership with more insurers and have initiated pilots with companies in noninsurance sectors, including e-commerce and education, where there is high demand for large-scale customer service team.

繼第二季與財險公司合作後，AI Top Sales 3.0平臺本季商業化進程再創佳績。我們擴大了與更多保險公司的合作夥伴關係，並已與電子商務和教育等非保險業的公司開展試點，這些行業對大規模客戶服務團隊的需求很高。

As of now, we have established collaborations intentions with 10 clients across various industries, with 8 already in the testing phase. This highlights the vast market potential for our sales agent solution. Going forward, we will continue investing in R&D to build our next core competitive advantage around AI applications. We value the trust from our investors and prioritize shareholder return.

截至目前，我們已與10個不同產業的客戶達成合作意向，其中8個已進入測試階段。這凸顯了我們的銷售代理解決方案的巨大市場潛力。未來，我們將持續投入研發，圍繞人工智慧應用打造我們的下一個核心競爭優勢。我們珍惜投資者的信任，並優先考慮股東回報。

By the end of November '24, the company has cumulatively repurchased approximately 50.9 million ADSs from the open market totaled around USD102 million. Moreover, we recently completed our second special cash dividend of approximately $7.3 million.

截至2024年11月底，該公司已累計從公開市場回購約5,090萬股ADS，總額約1.02億美元。此外，我們最近完成了第二次特別現金股息，總額約 730 萬美元。

For corporate social responsibility, as of the end of September, the Waterdrop charity platform has covered with 115 public charitable organizations and launched over 15,000 charity projects. During this quarter, we published our 2023 ESG report and so co-authored the ESG white paper for the online insurance industry.

在企業社會責任方面，截至9月底，水滴公益平台已涵蓋115家公益組織，進行公益計畫超過1.5萬個。本季度，我們發布了2023年ESG報告，並共同撰寫了網路保險業的ESG白皮書。

With the CUAC Green Finance Institute offering valuable insight into the industry ESG practice. Recently, the company received several strategic awards, including the China ESG Connected Pioneer Award and China ESG Excellence award, reflecting our commitment to ESG and our strong progress in this area. This concludes our update on business performance in Q3.

CUAC 綠色金融研究所為產業 ESG 實踐提供了寶貴的見解。近期，公司榮獲中國ESG互聯先鋒獎、中國ESG卓越獎等多項策略獎項，體現了我們對ESG的承諾以及在該領域的強勁進展。這就是我們對第三季業務表現的更新。

Looking ahead, Waterdrop will continue to leveraging technology focusing on long-term, high-quality and sustainable growth centers around user needs. As AI continue to transform more industries, our AI capabilities and first-mover advantages in the large language model, position us for greater opportunities and growth in the future.

展望未來，水滴將繼續以技術為依賴，圍繞著用戶需求，實現長期、高品質、可持續的成長。隨著人工智慧不斷改變更多產業，我們的人工智慧能力以及在大型語言模型方面的先發優勢，為我們未來帶來更大的機會和成長。

I will now pass to Ran Wei to discuss our insurance business in Q3.

現在請冉偉討論我們第三季的保險業務。

Thanks, Mr. Peng Shen. In Q3, the insurance business generated about CNY2.04 billion in FRP at 20.4% YoY and 14.8% quarter over quarter. Insurance-related income was about CNY600 million, representing a decrease of 3% YoY and an increase of 4.7% quarter on quarter. Operating profit was around CNY120 million. The operating profit margin was maintained at above 20%.

謝謝彭申先生。第三季度，保險業務實現固定收益約20.4億元，年增20.4%，季增14.8%。保險相關收入約6億元，較去年同期下降3%，較上季成長4.7%。營業利潤約1.2億元。營業利益率維持在20%以上。

During this quarter, our short-term insurance equity hit CNY1.37 billion, 30.3% YoY and 9.9% quarter on quarter. The increase in premiums on new policies primarily drive the growth. The company reach out to new customers through multiple channels and methods creating product IP on platforms like Little Red Book, TikTok, and WeCom videos, collaborating with influencers and further optimizing customer acquisition efficiency based on our RTA model, the number of new users in Q3 remains stable on a quarter-on-quarter basis.

本季度，公司短期保險權益達13.7億元，年增30.3%，較上季成長9.9%。新保單保費的成長是推動這一成長的主要因素。公司透過多種管道和方式獲取新用戶，在小紅書、抖音、微信影片等平台打造產品IP，與網紅合作，並基於RTA模型進一步優化獲客效率，Q3新增用戶數季比維持穩定。

Taking existing users, the company is committed to improving user experience and iterating insurance product offering according to the needs of different user profile. Leading to an increase in premiums sequentially. For example, regarding inclusive insurance products, the company has launched several products that do not require tax disclosure, have a deductible and a pre-existing addition, thereby lowering our user barriers.

本公司立足現有用戶，致力於提升用戶體驗，並根據不同用戶群的需求不斷迭代保險產品。導致保費連續增加。例如在普惠險產品方面，公司推出了多款無需報稅、有免賠額、有預存附加險的產品，降低了用戶的使用門檻。

Some products have added a special medical checkup service to enhancing user protection. In Q3, the FYP of tax pre-existing position insurance was nearly CNY200 million. In terms of maternity insurance, the 3.0 version of (inaudible) continue to gain user recognition and the parent-child critical illness insurance has been successfully launched. Due to this combined effect, the average premium for short-term medical insurance has increased 14.9% sequentially in Q3.

部分產品增加了專案體檢服務，增強使用者保障。三季度，稅務預存險首年保額近2億元。生育險方面，3.0版本（聽不清楚）持續獲得用戶認可，親子重疾險也成功上線。受此綜合影響，第三季短期醫療保險平均保費較上季上漲14.9%。

In September, we held a Waterdrop insurance service ecosystem conference, where we practically partnered with several insurers, we must ensure to establish the triple group service agent alliance, aiming to enhance the entire user experience.

9月我們舉辦了水滴保險服務生態大會，在會上我們與多家保險公司進行了務實的合作，確保建立三重集團服務代理人聯盟，以提升整個用戶的體驗。

The FYP for long-term insurance in this quarter reached CNY607 million, a year-on-year increase of 4.3% and a quarter-on-quarter increase of 26.4%. The online sales teams has been stepping in their games -- stepping up in their games, boosting efficiency and driving increased premium per capita sequentially. The last final model, which is content driven has been a major player in the growth spurt, especially with the rising trend of annual payment product.

本季長期險首年保費達6.07億元，年增4.3%，季增26.4%。線上銷售團隊一直在加強他們的遊戲 - 加強他們的遊戲，提高效率並連續提高人均保費。最後一種模式，即內容驅動模式，在成長高峰中發揮了重要作用，尤其是年度付費產品的上升趨勢。

On the supply side, we have been catering to the needs of senior -- we strengthened ties with insurance companies and broaden the scope and the protection of our disability insurance offering. We rolled out new edition of our disability income loss insurance, which covers people from 1927 and extended coverage up to 90. This quarter, disability insurance brought in around CNY78 million in FYP, plus together with our insurance partners, we have built exclusive Lucky Star critical illness policy that covers 10 common brain conditions, giving comprehensive protection against brain health risks.

在供應方面，我們一直在滿足老年人的需求——我們加強了與保險公司的聯繫，並擴大了殘障保險的範圍和保障範圍。我們推出了新版殘障收入損失保險，從 1927 年開始涵蓋人群，並將覆蓋範圍擴大到 90 歲。本季度，失能保險首年保額約7,800萬元，同時攜手保險夥伴，打造專屬的幸運星重疾險，涵蓋10種常見腦部疾病，為腦部健康風險提供全方位保障。

On the service side, we continue to build up Waterdrop premium or club membership system covering over 30 benefits for our members, offering health management, medical express medical express access and the high-end customized service such as wealth management, children educational planning and emergency assistant for both long-term and short-term insurance users, leading to an increase of renewal rate in long-term products.

在服務端，我們持續打造水滴尊享會員體系，為會員提供30餘項權益，為長短期保險用戶提供健康管理、醫療快線、財富管理、子女教育規劃、緊急救援等高端客製化服務，提升長期產品的續保率。

Shenlanbao Insurance sector has also showed strong growth in Q3 contributing CNY260 million in FYP with a significant increase in both year-on-year and quarter-on-quarter. During this quarter Shenlanbao further strengthen its lifetime and planner team, leading to a further rise in premium per capita.

深藍寶保險部門三季也表現強勁，首年保費貢獻2.6億元，年比、季比均大幅成長。本季深藍寶進一步加強了壽險和規劃師隊伍建設，人均保費收入進一步上漲。

In Q3, Waterdrop insurance marketplace and Shenlanbao continued to deepen its collaboration in product and risk and research development, leveraging the Waterdrop LLM to enhance content generation and customer service scenarios for Shenlanbao. In terms of offline brokerage, Waterdrop [Shinchin] has announced a brand new upgrade.

第三季度，水滴保險市場與深藍寶持續深化在產品、風險和研發方面的合作，利用水滴法律碩士為深藍寶增強內容產生和客戶服務場景。在線下經紀方面，水滴[信誠]宣布全新升級。

Anything in comprehensive service system that integrates insurance, health care and legacy planning. Its initiative in encompass a range of service, including expanding product offerings in the rating service system and billing mid-platform services, all designed to empower brokers in their concession.

集保險、醫療保健和遺產規劃於一體的綜合服務體系。其措施涵蓋一系列服務，包括擴大評級服務系統中的產品供應和計費中台服務，所有這些都是為了增強經紀人的特許經營權。

As for technology, the company continued to invest in insurance large language model. As of the end of September, the company has applied for over 40 patents related to LLM with six parents granted.

在技術方面，該公司繼續投資保險大語言模型。截至九月底，該公司已申請法學碩士相關專利40餘項，其中6項已授權。

Firstly, to date, the knowledge base of our Waterdrop Guardian has covered over 7,000 mainstream insurance products. Since the beginning of this year, the company has developed several intelligence products based on this.

首先，到目前為止，我們的水滴守護者的知識庫已經涵蓋了7000多種主流保險產品。今年以來，該公司已在此基礎上開發了多款智慧產品。

Secondly, the quality inspection process has been revolutionized with our AI service quality agents which has efficiently replaced the previous menu sampling method, by implying the AI preliminary check followed by human review, we have significantly boosted inspection efficiency, achieving full coverage in certain scenarios. And it processed orders at a pace that 3.7x factor than the conversional method, tangibly increasing our operational effectiveness.

其次，我們革新了質檢流程，用AI服務品質助理高效取代了以往的菜單抽查方式，透過AI初檢再人工審核的方式，大幅提升了質檢效率，在部分場景實現了全覆蓋。它處理訂單的速度比轉換方法快 3.7 倍，實際提高了我們的營運效率。

Thirdly, in the service scenario, Waterdrop Guardian developed the conversational skills of how do you use a human interaction in insurance product.

第三，在服務場景中，水滴守護發展如何在保險產品中運用人性化互動的對話技能。

During this quarter, our AI agent further enhanced its technology capabilities, integrating the long-term model and improving handling low-quality response in daily conversations and addressing a long-tail issue. This is a summary of this quarter's insurance performance.

本季度，我們的AI代理進一步增強了其技術能力，整合了長期模型，並改進了處理日常對話中的低品質回應並解決了長尾問題。這是本季保險業績的總結。

Next, Jasmine will introduce the developments of our company's crowdfunding and health-related business in Q3.

接下來Jasmine將為大家介紹我們公司眾籌及健康相關業務在第三季的進展。

Thanks, Mr. Ran. At the end of Q3 2024, around CNY466 million people cumulatively donated CNY66.3 billion to about 3.32 million patients through our Waterdrop medical crowdfunding. This quarter marks significant milestone for our medical crowdfunding business in the industry as a whole.

謝謝冉先生。截至2024年第三季末，約4.66億人透過水滴醫療眾籌累計向約332萬名患者捐款663億元。本季是我們醫療眾籌業務在整個行業中的一個重要里程碑。

Following the issuance of the merit for administration of online service platform for individuals seeking financial help released by Ministry of Civil Affairs of PRC and other government deployments on the September 5, 2024. These merits outline specific regulations on fee structures, fund management and the fight against illegal activities, establishing a legal framework and enhancing operational guidance and transparency in the crowdfunding industry.

依照2024年9月5日民政部印發的《個人經濟困難網路服務平台管理方法》等政府部署，這些優點概述了費用結構、資金管理和打擊非法活動的具體規定，建立了法律框架並增強了眾籌行業的營運指導和透明度。

We understand that the credibility is lifeblood of our platform. This quarter, we have been continually refining our risk control strategy to enhance transparency.

我們明白信譽是我們平台的生命線。本季度，我們不斷完善風險控制策略，以提高透明度。

For instance, by iterating our public supervision mechanism, we ensure that the verification and handling of the report rate cases are clearly and properly communicated on the page, bolstering transparent and efficient oversight environment in cooperation with the public. At the same time, as the technology company, Waterdrop is continually exploring how technology can inherit platform.

例如，透過完善群眾監督機制，確保檢舉案件核查處理情況在頁面上清晰、準確公佈，營造透明且有效率的監督環境，實際維護群眾合法權益。同時，身為科技公司，水滴也不斷探索科技如何傳承平台。

For example, our crowdfunding system employs algorithms to delivers one of the core pillar for high-risk cases. The platform is equipped to recognize the response to high-risk situation in real time. Even outsiders, the regular working hour platform of 1:00 AM to 6:00 AM by taking immediately emergency measures, such as popping crowdfunding cases and the spending payments, ensuring swift content of any risky cases.

例如，我們的眾籌系統採用演算法來為高風險案例提供核心支柱之一。該平台具備即時識別高風險狀況的應對能力。即使是外來者，平台的正常工作時間也是凌晨1點到6點，透過立即採取緊急措施，例如彈出眾籌案例和支出支付，確保任何有風險的案例都能迅速得到解決。

At Waterdrop, we firmly believe in the positive power of technology. In future, we will continue to protect every act of -- through technology innovation and improve the risk control mechanism. In healthcare-related business, this quarter, our health-related business maintained steady growth for digital clinical trial solutions business, our platform enrolled 909 new patients in Q3, adding to the cumulative total of over 9,500 since our launch, showing a consistent growth trajectory.

在水滴，我們堅信科技的正面力量。未來我們將持續透過科技創新來保障每一個行為，並完善風險控制機制。在醫療健康相關業務方面，本季度，我們的醫療健康相關業務保持了數位化臨床試驗解決方案業務的穩定增長，平台在第三季度新增患者909名，自上線以來累計患者超過9500名，呈現持續增長的態勢。

Building on excellent fulfillment efficiency and quality. E-Find platform continue to expand and deepen in partnerships with leading pharmaceuticals, both domestically and internationally. In Q3, we collaborated with a total of 184 pharmaceuticals and CRO. During this quarter, the platform played key roles as a primary partner and even exclusive recruitment partner in several projects.

以卓越的履行效率和品質為基礎。E-Find 平台持續擴大和深化與國內外領先製藥公司的合作。第三季度，我們共與184家藥廠及CRO達成合作。本季度，該平台在多個專案中發揮了關鍵作用，作為主要合作夥伴甚至獨家招募合作夥伴。

For instance, in a clinical trial for rare oncology targets as an exclusive recruitment partner for the top MNC, we leverage precise analysts and intelligence matching of patient medical records to help pharmaceutical existing their enrollment target.

例如，在針對罕見腫瘤標靶的臨床試驗中，作為頂級跨國公司的獨家招募合作夥伴，我們利用精準的分析師和患者病歷的智慧匹配，幫助製藥公司實現其招募目標。

As the industry moves towards high-quality growth top pharmaceuticals are embracing AI and big data in new drug development. E-Find platform with its digital expertise has been sharing insights with leading domestic and international pharmaceutical, earnings broad recognition. This has spurred the ongoing cooperation in new therapeutic areas.

隨著行業走向高品質成長，頂級製藥公司正在新藥開發中採用人工智慧和大數據。E-Find平台憑藉其數位化專業知識與國內外領先的製藥公司分享見解，廣受認可。這促進了新治療領域的持續合作。

In Q3 alone, we signed 88 new projects. In digital multichannel marketing business, the platform has further integrated AI technology into various patient service stages. For example, in patient education and careers, our AI assessments quickly address the questions, delivering professional medical advice and service efficiency.

光是第三季度，我們就簽署了88個新項目。在數位多通路行銷業務上，平台進一步將AI技術融入患者服務的各個環節。例如，在病患教育和職業發展方面，我們的AI評估可以快速解決問題，提供專業的醫療建議和服務效率。

For quality control AI systematic attack deployment, many checks are holding service standards and professionalism, plus using structured medical data and large language models, we guide patients in follow-up enhancing their disease management awareness and compliance.

對於品管AI系統性攻關部署，多項把關注重服務規範化、專業化，並結合結構化醫療數據和大型語言模型，指導患者隨訪，提升患者疾病管理意識和依從性。

Looking ahead the platform will continue to collaborate with industry partners to explore further applications and possibilities of AI technology in pharmaceutical scenario of supporting the industry's digital transformation. Thanks for listening. I will now hand over to Xu Xiaoying to discuss our financial performance.

未來平台將持續攜手產業夥伴，共同探索人工智慧技術在醫藥場景下的進一步應用和可能性，支援產業數位轉型。謝謝聆聽。現在我將交給徐曉英來討論我們的財務表現。

Hello, everyone, I will now walk you through our financial highlights for the third quarter. Before I go into details, please remind you that all numbers quoted here will be RMB, and please refer to our earnings release for detailed information on our financial performance on both the year-on-year and quarter-on-quarter basis, respectively.

大家好，現在我將向大家介紹我們第三季的財務亮點。在我詳細介紹之前，請提醒您，這裡引用的所有數字均為人民幣，有關我們同比和環比財務表現的詳細信息，請參閱我們的收益報告。

In Q3, the company continued to optimize financial performance with notable growth in profitability. Our total revenue for this quarter was CNY704 million, showing a moderate quarter-on-quarter growth of 4.1%, bringing it down by business segment. The insurance business contributed approximately CNY600 million in revenue, a quarter-on-quarter increase of 4.7%. The performing segment will generate services of around CNY65.8 million quarter-on-quarter decrease of about 5%. digital clinical trial solution generated revenue of CNY24.3 million, a quarter-on-quarter increase of 17.4%.

第三季度，公司財務表現持續優化，獲利能力顯著提升。本季我們的總營收為 7.04 億元，季增 4.1%，但由於業務部門營收下降，季增溫和。保險業務貢獻收入約6億元人民幣，較上季成長4.7%。執行板塊服務收入約人民幣6,580萬元，季減約5%。數位化臨床試驗解決方案收入約人民幣2,430萬元，較上季成長17.4%。

Regarding operations -- operating costs and expenses our operating costs amounted to CNY341 million, up 6.7% compared to the previous quarter, mainly due to a rise of CNY32.6 million referral and service fees partially offsetted by the reduction of personnel costs. Sales and marketing expenses were CNY173 million, a 10% quarter-on-quarter increase, driven by a strategic increase in advertising efforts based on the accurate and efficient operations, leading to a higher marketing expenses to third-party traffic channels.

關於營運——營運成本和費用我們的營運成本為人民幣 3.41 億元，比上一季成長 6.7%，主要是由於推薦費和服務費增加人民幣 3,260 萬元，但被人員成本的減少部分抵消。銷售及市場推廣費用為人民幣1.73億元，環比增長10%，主要由於公司基於精準高效運營的策略性加大廣告投放力度，導致第三方流量渠道的營銷費用增加。

General and administrative expenses were CNY111 million, an increase of CNY17 million from the previous quarter, primarily due to the internal loss of intangible assets related to the acquisition of Shenlanbao. R&D expenses were CNY53 million remaining stable compared to the previous quarter. In Q3, the company's profitability will -- profitability improved significantly year-on-year with net profit attributable to ordinary shareholders reaching CNY92.8 million, 2.5x the third quarter last year, and a healthy quarter-over-quarter growth of 5.1%. The operating profit margin for the insurance business remained consistently strong at over 20%.

一般及行政開支為人民幣 1.11 億元，較上一季增加 1,700 萬元，主要由於收購深藍寶相關的無形資產內部損失。研發費用為人民幣5,300萬元，與上一季相比維持穩定。第三季度，公司獲利能力較去年大幅提升，歸屬於普通股股東的淨利達9,280萬元，為去年第三季的2.5倍，季增5.1%，維持健康成長。保險業務營業利益率持續維持在20%以上的強勁水準。

With sustainable net profit, we continue to maintain positive operating cash inflow, ensuring a balance cash reserve as of September 30, 2024, the company had a cash position totaled about CNY3,44 billion, supporting the company's flexibility and stability in shareholder returns and strategy deployment.

在淨利潤可持續的前提下，我們繼續保持正的經營性現金流入，確保截至2024年9月30日的現金儲備保持平衡，公司現金頭寸總額約為人民幣34.4億元，支持公司在股東回報和戰略部署方面的靈活性和穩定性。

In summary, the strong performance in Q3 highlights Waterdrop's resilience with facing the navigating market change. Looking ahead, we will continue to uphold our business philosophy and strategic choice, driving the company healthy growth.

總而言之，第三季的強勁表現凸顯了水滴在應對市場變化方面的韌性。展望未來，我們將持續秉承既定的經營理念和策略選擇，推動公司健康發展。

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

女士們、先生們，今天的電話會議就到此結束。我們非常感謝您的加入。玩的很開心。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，現在您可以斷開連接了。