BEIJING,Sept. 4,2024 -- Waterdrop Inc. ("Waterdrop",the "Company" or "we") (NYSE: WDH),a leading technology platform dedicated to insurance and healthcare service with a positive social impact,today announced its unaudited financial results for the three and six months ended June 30,2024and a special cash dividend.
Financial and Operational Highlights for the SecondQuarter of 2024
Substantial growth in profit and positive operating cash flow: In the second quarter of 2024,net profit attributable to our ordinary shareholders reached RMB88.3 million,representing a year-over-year growth of 306.9%. As of June 30,2024,we continued to generate positive operating cash flow during the second quarter of 2024.
Resilient revenue amidst industry challenges: For the second quarter of 2024,the first-year premiums ("FYP") generated through our insurance business amounted to RMB1,778.6 million (US$244.7 million),representing a decrease of 19.0% year over year. Net operating revenue was RMB676.2 million (US$93.0 million),representing a decrease of 0.4% year over year.
Improving margin of insurance segment: For the second quarter of 2024,the operating profit margin of insurance business increased year over year to 21.4%,compared with 16.7% for the same quarter of 2023.
Broadenedcrowdfunding coverage: As of June 30,around 461 million people cumulatively had donated an aggregate of RMB65.1 billion to 3.25 million patients through Waterdrop Medical Crowdfunding.
Digital clinical trial services in good progress: As of June 30,the Company had cumulatively enrolled nearly 8,600 patients into 1,050 clinical trial programs through theE-Find Platform.
Mr.Peng Shen,Founder,Chairman,and Chief Executive Officer of Waterdrop,commented,"During the second quarter of 2024,we delivered sound results in profitability. The quarterly net profit attributable to our ordinary shareholders reached RMB88.3 million,representing a significant year-over-year growth of 306.9%.
Our insurance business has shown sequential developments with FYP increasing by 1.4% quarter-over-quarter. We have continually improved online traffic conversion capabilities and efficiency,driving the number of new users to grow at 15.8%. At the same time,we have effectively sustained the policy renewal rate at high level.
Committed to investment in technology,we further piloted our Shuishou large language model,known as "Waterdrop Guardian",in multiple service scenarios covering medical,critical illness,and auto insurance categories. During the quarter,the Company initiated a strategic cooperation with a property & casualty (P&C) insurer. This is the first time we export a customized solution of non-life insurance and we look forward to empowering more industry partners with AI solutions.
We continually iterate service and business processes in medical crowdfunding to address user pain points. For instance,in regions populated by ethnic minorities,our platform now supports bilingual fundraising,aiding in the spread of cases within local communities and bolstered by AI-assisted bilingual case verification to minimize fraud.
During this quarter,our healthcare-related business maintained its growth,realizing a quarter-over-quarter growth of 4.1%. We collaborated with a total of 185 pharmaceutical companies and contract research organizations ("CROs"). Moreover,we enrolled more than 820 patients and initiated services for 88 new programs during the second quarter of 2024. We stay focused on digitalization trends in clinical trial and multichannel marketing solutions to serve a broader client base from this angle.
We are grateful for the ongoing support of our shareholders and investors,and prioritize shareholder interests and investor returns. The Company has actively carried out share repurchases for three consecutive years,and our board has recently approved a new annual repurchase plan. The repurchased shares will continue to be used in employee share incentive plans.
In addition,we also completed our first special cash dividend in the past quarter. We are pleased to announce that,with the board approval,the Company will soon start the second special cash dividend of approximately US$7.5 million."
Financial Results for the Second Quarter of 2024
Operating revenue,net
Net operating revenue for the second quarter of 2024 decreased by 0.4% year over year to RMB676.2 million (US$93.0 million) from RMB678.7 million for the same period of 2023. On a quarter-over-quarter basis,net operating revenue decreased by 4.1%. Net operating revenue generated by Shenlanbao(1)for the second quarter of 2024 was RMB40.4 million(US$5.6 million).
Insurance-related income includes insurance brokerage income and technical service income. Insurance brokerage income represents brokerage commissions earned from insurance companies. Technical service income is derived from providing technical services including customer relationship maintenance,customer complaint management,claim review,and user referral services,among other things,to insurance companies,insurance brokers,and agency companies. Our insurance-related income amounted to RMB573.8 million (US$79.0 million) in the second quarter of 2024,representing a decrease of 4.0% year over year from RMB597.4 million for the second quarter of 2023,which was mainly due to the decrease in FYP. On a quarter-over-quarter basis,insurance-related income decreased by 5.4%.
Crowdfunding service fees represent the service income earned when patients successfully withdraw the proceeds from their crowdfunding campaigns. Ourrole is to operate the Waterdrop Medical Crowdfunding platform to provide crowdfunding related services through the internet,enabling patients with significant medical bills to seek help from caring hearts through technology (the "medical crowdfunding services"). Ourmedical crowdfunding services generally consist of providing technical and internet support,managing,reviewing and supervising the crowdfunding campaigns,providing comprehensive risk management and anti-fraud measures,and facilitating the collection and transfer of the funds. For the second quarter of 2024,we generated RMB69.3million (US$9.5million) in service fees,representing anincrease of 55.2% year over year from RMB44.7million for the second quarter of 2023.On a quarter-over-quarter basis,crowdfunding service fees increased by 2.9%.
We are expanding the healthcare-related services,including digital clinical trial solution and digitalmultichannel marketing solution. Digital clinical trial solution income represents the service income earned from our customers mainly including biopharmaceutical companies and leading biotechnology companies. We match qualified and suitable patients for enrollment in clinical trials for our customers and generate digital clinical trial solution revenue for successful matches and we typically charge our customers a fixed unit price per successful match. Digital multichannel marketing solution income is derived from life science and healthcare companies. Focusing on the needs of our customers,we provide comprehensive digital marketing solutions around the whole life cycle of products through integrated services such as patient screening,medication management,doctor-patient services,innovative payment methods,and channel marketing. For the second quarter of 2024,our healthcare-related income amounted toRMB26.4million (US$3.6 million),representing a decrease of 17.0% from RMB31.8 millionin the same period of 2023.On a quarter-over-quarter basis,healthcare-related income increased by 4.2%.
Operating costs and expenses
Operating costs and expenses decreased by 13.4% year over year to RMB623.8 million (US$85.8 million) for the second quarter of 2024. On a quarter-over-quarter basis,operating costs and expenses decreased by 5.2%. Operating costs and expenses from Shenlanbao(1)for the second quarter of 2024 were RMB57.4 million(US$7.9 million).
Operating costs decreased by 4.2% year over year to RMB319.1 million (US$43.9 million) for the second quarter of 2024,as compared with RMB333.1 million for the second quarter of 2023,which was primarily driven by (i) a decrease of RMB12.9millionin costs of referral andservice fees,(ii) a decrease of RMB8.6 million in the costs for patient recruitment consultants team,partially offset by (iii) an increase of RMB11.5 million in personnel costs mainly due to the consolidation of the financial results of Shenlanbao which incurred personnel costs of RMB16.9 million. On a quarter-over-quarter basis,operating costs decreased by 3.7% from RMB331.2 million,primarily due toa decrease of RMB9.9 million in costs of referral andservice fees.
Sales and marketing expenses decreased by 23.0% year over year to RMB157.4 million (US$21.7 million) for the second quarter of 2024,as compared with RMB204.5 million for the same quarter of 2023. The decrease was primarily due to (i) a decrease of RMB38.0 million in marketing expenses to third-party traffic channels,and (ii) a decrease of RMB33.2 million in personnel costs and share-based compensation expenses,partially offset by (iii) the consolidation of the financial results of Shenlanbao which incurred sales and marketing expenses of RMB30.1 million.Ona quarter-over-quarter basis,sales and marketing expenses decreased by 13.6% from RMB182.1 million,primarily due to (i) a decrease of RMB14.4 million in marketing expenses to third-party traffic channels,(ii) a decrease of RMB4.9 million in sales and marketing personnel costs and share-based compensation expenses,and (iii) a decrease of RMB2.7 million in outsourced sales and marketing service fees to third parties.
General and administrative expenses decreased by 2.1% year over year to RMB94.0 million (US$12.9 million) for the second quarter of 2024,compared with RMB96.0 million for the same quarter of 2023. The year-over-year variance was due to (i) a decrease of RMB5.5 million in personnel costs and share-based compensation expenses,(ii) a decrease of RMB8.4 million in professional service fees,partially offset by (iii) an increase of RMB12.6 million allowance for doubtful accounts.On a quarter-over-quarter basis,general and administrative expenses increased by 5.6% from RMB89.0 million,due to (i) an increase of RMB8.0million allowance for doubtful accounts,partially offset by (ii) a decrease of RMB1.7 million in professional service fees.
Research and development expenses decreased by 38.5% year over year to RMB53.3 million (US$7.3 million) for the second quarter of 2024,compared with RMB86.7 million for the same period of 2023. The decrease was primarily due to a decrease of RMB35.3 million in personnel costs and share-based compensation expenses,partially offset by the consolidation of the financial results of Shenlanbao. On a quarter-over-quarter basis,research and development expenses decreased by 4.8% from RMB56.0million,which was mainly due to a decreaseofRMB2.8million in research and development personnel costs and share-based compensation expenses.
Operating profitfor the secondquarter of 2024 was RMB52.4million(US$7.2million),as compared withan operating loss of RMB41.6 million forthe secondquarter of 2023and an operating profit of RMB46.4million for the firstquarter of 2024.
Interest incomefor the secondquarter of 2024 was RMB37.5 million(US$5.2 million),as compared withRMB37.6 million forthe second quarter of 2023 and RMB39.8 million for the first quarter of 2024. The decrease was primarily due to the decrease in our short-term and long-term investments.
Income tax expensefor the secondquarter of 2024 was RMB7.0million (US$1.0 million),as compared with an income tax benefit of RMB10.5million forthesecond quarterof 2023 and an income tax expense of RMB8.6 million for the first quarter of 2024.
Net profit attributable to the Company's ordinary shareholders for the secondquarter of 2024 was RMB88.3 million(US$12.1 million),as compared with RMB21.7million for the same period of 2023,and RMB80.6million for the firstquarter of 2024.
Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP(2)) for the second quarter of 2024 was RMB108.7 million (US$15.0 million),as compared with RMB50.3 million for the same period of 2023,andRMB98.4 million for the first quarter of 2024.
Cash and cash equivalents and short-term investments
As of June30,the Company had combined cash and cash equivalents and short-term investments of RMB2,933.3 million (US$403.6 million),as compared with RMB3,393.4 million as of December 31,2023.
(1)
We started to consolidate the financial results of Shenzhen Cunzhen Qiushi Technology Co.,Ltd.and its subsidiaries (collectively,"Cunzhen Qiushi",also known as "Shenlanbao") in the third quarter of 2023.
(2)
See the sections entitled "Non-GAAP Financial Measure" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this announcement.
Share Repurchase Programs
Pursuant to the share repurchase programs launched in September 2021,September 2022 and September 2023,respectively,we had cumulatively repurchased approximately 49.3 million ADSs from the open market with cash for a total consideration of over US$100.4 million as of August 31,2024.
The board of the directors of the Company (the "Board") has approved a new share repurchase program whereby the Company is authorized to repurchase its own ordinary shares in the form of American depository shares with an aggregate value of up to US$50 million during the 12-month period through September 9,2025. The Company expects to fund the repurchase out of its existing cash balance. The Company's proposed repurchase may be made from time to time in the open market at prevailing market prices,in privately negotiated transactions,in block trades and/or through other legally permissible means,depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Board will review the share repurchase program periodically,and may authorize adjustment of its terms and size or suspend or discontinue the program.
Special Cash Dividend
The Board has approved a special cash dividend of US$0.02 per ADS or US$0.002 per ordinary share to shareholders of record as of the close of business on October 11,2024. The payment date is expected to be on or around November 5,2024 for holders of ordinary shares and on or around November 8,2024 for holders of ADSs.
Supplemental Information
We organize and report our business inthree operating segments:
Insurance,which mainly includesWaterdrop Insurance Marketplace,Shenlanbao Insurance Marketplace and technical support service;
Crowdfunding,which mainly includes Waterdrop Medical Crowdfunding; and
Others,which mainly include Digital Clinical Trial Solution and other new initiatives.
The table below sets forth the segment operating results,with the six-month comparative figures retrospectively adjusted to conform to this presentation.
For the Three Months Ended
For the Six Months Ended
June 30,2023
March 31,2024
June 30,2023*
June 30,2024
RMB
RMB
RMB
USD
RMB
RMB
USD
(All amounts in thousands)
Operating revenue,net
Insurance**
597,437
606,777
573,832
78,962
1,133,780
1,180,609
162,457
Crowdfunding
44,677
67,350
69,323
9,539
86,699
136,673
18,807
Others
36,586
30,573
33,001
4,541
64,386
63,574
8,748
Total consolidated operating
revenue,net
678,700
704,700
676,156
93,042
1,284,865
1,380,856
190,012
Operating profit/(loss)
Insurance**
99,759
129,163
122,955
16,919
254,714
252,118
34,693
Crowdfunding
(64,131)
(32,237)
(22,936)
(3,156)
(125,265)
(55,173)
(7,592)
Others
(47,877)
(31,432)
(27,450)
(3,778)
(84,444)
(58,882)
(8,103)
Total segment operating
(loss)/profit
(12,249)
65,494
72,569
9,985
45,005
138,063
18,998
Unallocated item***
(29,393)
(19,130)
(20,205)
(2,780)
(76,319)
(39,335)
(5,412)
Total consolidated operating
(loss)/profit
(41,642)
46,364
52,364
7,205
(31,314)
98,728
13,586
Total other income
52,835
42,781
38,366
5,280
89,606
81,147
11,166
Profit before income tax
11,193
89,145
90,730
12,485
58,292
179,875
24,752
Income tax benefit/(expense)
10,504
(8,588)
(7,026)
(967)
13,130
(15,614)
(2,149)
Net profit
21,697
80,557
83,704
11,518
71,422
164,261
22,603
*
Staring from the second quarter of 2023,our chief operating decision maker starts to manage the business by three operating
segments and assess the performance and allocate resources under the new operating segment structure. The six-month
comparative figures were retrospectively adjusted to conform to this presentation.
**
The Company started to consolidate the financial results ofShenlanbao since July 4,2023 and reported the results of
Shenlanbao under the Insurance segment.
***
The share-based compensation represents an unallocated item in the segment information because our management does
not consider this as part of the segment operating performance measure.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars ("USD" or "US$") at specified rates solely for the convenience of the reader. Unless otherwise stated,all translations from RMBto USD were made at the rate of RMB7.2672 to US$1.00,the noon buying rate in effect on June28,2024in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMBor USD amounts referred could be converted into USD or RMB,as the case may be,at any particular rate or at all. For analytical presentation,all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
Non-GAAP Financial Measure
The Company usesnon-GAAP financial measure,adjusted net profit attributable to our ordinary shareholders,in evaluating the Company's operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profitattributable to our ordinary shareholdersexcluding share-based compensation expenseattributable to our ordinary shareholders and foreign currency exchange gain or losses. Such adjustments have no impact on income tax.
The non-GAAP financial measure isnot presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measure haslimitations as analytical tools and when assessing the Company's operating performance,investors should not consider it in isolation,or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Investors are encouraged to review the Company's historical non-GAAP financial measure to the most directly comparable GAAP measure. Adjusted net profit attributable to our ordinary shareholders presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measure differently,limitingitsusefulness as a comparative measure to our data.
The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure,all of which should be considered when evaluating the Company's performance.
For more information on the non-GAAP financial measure,please see the table captioned "Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of theU.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things,quotations in this announcement,contain forward-looking statements. Waterdrop may also make written or oral forward-looking statements in its periodic reports to theSEC,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to thirdparties. Statements that are not historical facts,including statements about Waterdrop's beliefs,plans and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: Waterdrop's mission,goals and strategies; Waterdrop's future business development,financial condition and results of operations; the expected growth of the insurance,medical crowdfunding and healthcare industry in China; Waterdrop's expectations regarding demand for and market acceptance of our products and services; Waterdrop's expectations regarding its relationships with consumers,insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance,medical crowdfunding and healthcare industry. Further information regarding these and other risks is included in Waterdrop's filings with the SEC. All information provided in this press release is as of the date of this press release,and Waterdrop does not undertake any obligation to update any forward-looking statement,except as required under applicable law.
Conference Call Information
Waterdrop's management team will hold a conference call on September 4,2024at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time on the same day) to discuss the financial results. Dial-in details for the earnings conference call are as follows:
International:
1-412-317-6061
United States Toll Free:
1-888-317-6003
Hong Kong Toll Free:
800-963976
Hong Kong:
852-58081995
Mainland China:
4001-206115
Chinese Line (Mandarin)Entry Number:
9073979
English Interpretation Line (Listen-onlyMode) Entry Number:
6371615
Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call.
Telephone replays will be accessible two hours after the conclusion of the conference call until September 11,2024 by dialing the following numbers:
United States Toll Free:
1-877-344-7529
International:
1-412-317-0088
Chinese Line Access Code:
7243413
English Interpretation Line Access Code:
8969523
A live and archived webcast of the conference call will also be available at the Company's investor relations website athttp://ir.waterdrop-inc.com/.
About Waterdrop Inc.
Waterdrop Inc. (NYSE: WDH) is a leading technology platform dedicated to insurance and healthcare service with a positive social impact. Founded in 2016,with the comprehensive coverage of Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding,Waterdrop aims to bring insurance and healthcare service to billions through technology. For more information,please visit www.waterdrop-inc.com.
For investor inquiries,please contact
Waterdrop Inc.
IR@shuidi-inc.com
WATERDROP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands,unless otherwise noted)
As of
December 31,2023
June 30,2024
RMB
RMB
USD
Assets
Current assets
Cash and cash equivalents
396,905
719,036
98,943
Restricted cash
577,121
507,151
69,786
Short-term investments
2,996,527
2,214,227
304,688
Accounts receivable,net
693,110
718,002
98,800
Current contract assets
572,871
611,290
84,116
Amount due from related parties
65
169
23
Prepaid expense and other assets
189,846
194,769
26,801
Total current assets
5,426,445
4,964,644
683,157
Non-current assets
Non-current contract assets
134,383
154,745
21,294
Property,equipment and software,net
33,878
30,729
4,228
Intangible assets,net
177,407
173,635
23,893
Long-term investments
211,758
581,813
80,060
Right of use assets,net
59,851
63,580
8,749
Deferred tax assets
24,190
31,279
4,304
Goodwill
80,751
80,751
11,112
Total non-current assets
722,218
1,116,532
153,640
Total assets
6,148,663
6,081,176
836,797
Liabilities,Mezzanine Equity and Shareholders' Equity
Current liabilities
Amount due to related parties
9,509
10,031
1,380
Insurance premium payables
591,953
521,272
71,729
Accrued expenses and other current liabilities
597,684
651,874
89,701
Short-term loans
137,557
-
-
Current lease liabilities
32,908
37,246
5,125
Total current liabilities
1,369,611
1,220,423
167,935
Non-current liabilities
Non-current lease liabilities
27,293
26,462
3,641
Deferred tax liabilities
73,305
95,592
13,154
Total non-current liabilities
100,598
122,054
16,795
Total liabilities
1,470,209
1,342,477
184,730
Mezzanine Equity
Redeemable non-controlling interests
92,760
88,099
12,123
Shareholders' equity
Class A ordinary shares
112
112
15
Class B ordinary shares
27
27
4
Treasury stock
(12)
(15)
(2)
Additional paid-in capital
7,003,423
6,860,770
944,073
Accumulated other comprehensive income
144,107
182,747
25,147
Accumulated deficit
(2,561,963)
(2,393,041)
(329,293)
Total shareholders' equity
4,585,694
4,650,600
639,944
Total liabilities,mezzanine equity and shareholders' equity
6,797
WATERDROP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(All amounts in thousands,except for share and per share data,or otherwise noted)
For the Three Months Ended
For the Six Months Ended
June 30,2024
RMB
RMB
RMB
USD
RMB
RMB
USD
Operating revenue,012
Operating costs and expenses(i)
Operating costs
(333,140)
(331,243)
(319,101)
(43,910)
(581,123)
(650,344)
(89,490)
Sales and marketing expenses
(204,548)
(182,146)
(157,413)
(21,661)
(377,949)
(339,559)
(46,725)
General and administrative expenses
(95,997)
(88,961)
(93,978)
(12,932)
(191,795)
(182,939)
(25,173)
Research and development expenses
(86,657)
(55,986)
(53,300)
(7,334)
(165,312)
(109,286)
(15,038)
Total operating costs and expenses
(720,342)
(658,336)
(623,792)
(85,837)
(1,316,179)
(1,282,128)
(176,426)
Operating (loss)/profit
(41,586
Other income
Interest income
37,618
39,804
37,510
5,162
68,494
77,314
10,639
Foreign currency exchange gain/(loss)
838
1,514
(444)
(61)
1,120
1,070
147
Others,net
14,379
1,463
1,300
179
19,992
2,763
380
Profit before income tax
11,603
Net loss attributable to mezzanine equity classified as non-
controlling interests shareholders
-
(75)
(4,586)
(631)
-
(4,661)
(641)
Net profit attributable to ordinary shareholders
21,632
88,290
12,149
71,422
168,922
23,244
Other comprehensive income:
Foreign currency translation adjustment,net of tax
64,434
25,143
13,497
1,857
67,820
38,640
5,317
Unrealized loss on available for sale investments,net of tax
(3,508)
-
-
-
(1,551)
-
-
Total comprehensive income
82,623
105,700
97,201
13,375
137,691
202,901
27,920
Total comprehensive loss attributable to mezzanine equity classified
as non-controlling interests shareholders
-
(75)
(4,586)
(631)
-
(4,661)
(641)
Total comprehensive income attributable to ordinary shareholders
82,775
101,787
14,006
137,691
207,562
28,561
Weighted average number of ordinary shares used in computing
net profit per share
Basic
3,795,521,186
3,696,619,172
3,660,589,600
3,831,817
3,678,604,386
3,386
Diluted
3,949,592,050
3,756,462,107
3,734,346,444
3,988,673,677
3,745,404,276
3,276
Net profit per share attributable to ordinary shareholders
Basic
0.01
0.02
0.02
0.00
0.02
0.05
0.01
Diluted
0.01
0.02
0.02
0.00
0.02
0.05
0.01
(i)Share-based compensation expenses are included in the operating costs and expenses as follows.
For the Three Months Ended
For the Six Months Ended
June 30,2024
RMB
RMB
RMB
USD
RMB
RMB
USD
Sales and marketing expenses
(7,888)
(1,820)
(1,320)
(181)
(24,417)
(3,140)
(432)
General and administrative expenses
(18,122)
(14,327)
(16,285)
(2,241)
(44,582)
(30,612)
(4,212)
Research and development expenses
(3,383)
(2,983)
(2,600)
(358)
(7,320)
(5,583)
(768)
Total
(29,393)
(19,130)
(20,205)
(2,780)
(76,319)
(39,335)
(5,412)
WATERDROP INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands,unless otherwise noted)
For the Three Months Ended
For the Six Months Ended
June 30,2024
RMB
RMB
RMB
USD
RMB
RMB
USD
Net profit attributable to the Company's ordinary shareholders
21,244
Add:
Share-based compensation expense attributableto the Company's
ordinary shareholders
29,393
19,260
20,015
2,754
76,319
39,274
5,404
Foreign currency exchange (gain)/loss
(838)
(1,514)
444
61
(1,120)
(1,070)
(147)
Adjusted net profit attributable to the Company's ordinary
shareholders
50,252
98,378
108,749
14,964
146,621
207,126
28,501