Waterdrop Inc. (WDH) Q2 2026 Earnings Call Transcript

Good morning, ladies and gentlemen, and thank you for standing by for Waterdrop Inc.'s second quarter 2026 Financial Results Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to Ms. Tracy Lee. Please proceed, Ms. Lee.

Thank you, operator.

Dear Ambassador and Analyst, this is Tracy Lee from World Job Investor Relations. Please note that discussion today will contain forward-looking statements made in the safe harbor provision of U.S. private securities and the litigation reform act of 1995. Forward-looking statements are separate through risk and incentives that may cause extra results differ materially from our current expectations. Potential risk and uncertainties include but not limited to those outlines in our public findings with the SEC. The company does not undertake any obligation to update any forward-looking statement, except as required in their applicable law. Also, this call includes discussion of certain non-GAAP measures. Please refer to our earnings release for reconciliation between non-GAAP and GAAP. Joining us today on the call, I'm Mr. Shen Peng, our founder, chairman, and CEO. Mr. Yuan Wei, director and GM of insurance business. Mrs. Li Jiewu, Finance VP, Head of Strategy in a Capital Market. Certain members of our management team will deliver their remarks in Mandarin, followed by an English translation. Moreover, a webcast reply will be available on our Investor Relations website. I will now turn the call over to our CEO, Shen Peng. Please go ahead. Dear investors and analysts, Thank you for joining Waterdrop's second quarter 20.6 earnings conference call. In this quarter, we maintain growth momentum and achieve a total revenue of 1.45 billion yuan at 72.8% year-over-year, and the net profit attributable to our ordinary shareholders of 130 million yuan. Since the first quarter of 2022, we have maintained profitability for 18 consecutive quarters.

80.5% . 截至季度末,已累计为382万名大病患者,除其了医疗资金。 数字零用传话实验体制方案业务,高效交付, 单季度日主患者同比提升超过50%。 支撑这些业务的增长, 使AI能力在核心业务场面的深度落地。 这也不断地巩固公司的金融地雷。 截至6月底,公司已申请大模型相关业力88项, Segment-wise, our insurance business continues to optimize user acquisition and conversion,

dropping 80.5% year-over-year revenue growth. Waterdrop Medical for Funding has accumulated rates of medical funds for 3.82 million patients as of the quarter end. Our digital clinical trial solution business performs strongly, with quarterly patient enrollment at over 50% year-over-year. These growth trends were entertained by a deep integration of AI across our core business scenario. And at the end of June, the company has filed 8080 large library model patents, including 10 of them overseas.

Projects are in the 11th October, 5000 萬美元為上限,繼續在公開市場回購股份。 自 2021 年宣布首期回購計畫以來, 截至 2026 年 8 月末, 公司已累計回購約 6,290 萬多 EDS, 耗資約 1.21 億美元。 公司始終整齊可持續發展理念, 確實回購社會。 截至 2026 年 6 月 30 月,

With strong performance and cash reserve, we continue to prioritize shareholder returns. Our board recently approved the two new initiatives. Firstly, the board has approved a cash dividend of $0.03 per ADF, or $0.03 per ordinary share, Payable to holders of the record on October 9, 2006, the aggregate dividend payment is approximately $10.8 million, with payments to be made in early November. Second, the board approved the sixth share repurchase program of up to $15 million over the next 12 months. Since the initial program launched in 2021, we have repurchased approximately 62.9 million ADFs for $121 million as of August 31, 2006. The company remains committed to sustainable development and to giving back to society in meaningful ways. As of June 30, 2016, Waterdrop Charity Platform has partnered with 119 public charitable organizations and launched more than 15,600 charity programs.

AI 能力以深度嵌入各个业务平台 使我们能够更精准地把握住 金融业务中的不断增长的市场需求 巩固变增强 竞争壁垒 与此同时 我们也在积极地幅化 面向全球的 AI 驱动的新业务 现在局部市场已经取得了初步进展 面向2026年全年 我们预期收入同比增长40%以上 营业利润同比增长10%以上

What is your government's focus on growth and investment in core businesses? We expect that our current incremental investment income to continue to translate into solid user base in the future product potential. We always regard technology as a core driver of the company's growth. Today, our AI capabilities are significantly abandoned across the platform, enabling us to better capture growth opportunities in our existing businesses and further sharpen our competitive edge. At the same time, we are actively piloting new AI-driven initiatives for global markets and have made early progress in select markets. Before year of 2026, WaterDrop targets more than 40% year-over-year growth in total revenue and over 10% growth in operating profit. This concludes our overview of WaterDrop's business performance. Now we will walk you through each of our business segments in more detail.

16.4% DA5金利用率约1.8亿元 环比提升20% 基于AI模型 在用户需求洞察与转化上的持续打磨 转化效率环比优化 机动内新用户环比与增长32.3% 场景方面 凭借需求洞察和多元供给能力 我们及时承接住了 本季度分红储蓄型产品的需求窗口 带动场景 保费环比增长33.4% Hello, everyone.

This is Chang Wei. Let me briefly update you on our insurance business. In the second quarter, insurance-related income reached 1.33 billion yuan at 80.5% year-over-year and 16.4% quarter-over-quarter. Operating profit was 180 million yuan at 20% from the previous quarter. With continued refinement in our AI-driven user insight and conversion capabilities, newly acquired customers rose 32.3% sequentially. The first-tier premiums of long-term insurance grows 33.4% sequentially, as we capture market demand for endowment insurance this quarter.

In the supply chain, the quality of the product is the main feature of the product. In this way, there are several products in the end. Thank you.

On the product side, our core strategy room is improving the accessibility of insurance This quarter, we delivered several new products in line with this direction, including the launch of Gong Yibao, the market-first long-term critical illness insurance product, requiring no health disclosure and offering five-year guaranteed renewability. We're also expanding our Zixing Gao Zhao product metrics, which now includes the market-first specify disease insurance, offering lifetime coverage with no health disclosure. During this quarter, products for users with pre-existing conditions contribute 310 million yuan in FIP, and disability insurance at 84 million. Thank you very much. side, we adopted differentiated scenario-based operations across customer touch points. In this quarter, AI applications across our user-facing interaction scenarios helped generate nearly 100 million in FIP. Among them, AI Pro Insurance generates FIP in millions each month. FIP is facilitated by our AI medical insurance experts, rose by 25.6% sequentially. In weak time scenario, AI executed our strategies directly from the demand identification and user profiling to key movement engagement and batch outreach, contributing over 10 million yuan in FIP during this quarter. Long-term insurance sales, the value of AI ultimately comes down to expanding what our life planners can do. As a part in, our interwriting assistant, Koi.ai, has answered more than 13,000 interwriting questions since its launch. Our AI super-presence assistants have constantly outperformed human life planners on annual premium per lead. And the number of users is served for nearly 50% sequentially. Powered by multi-agent collaboration, Our AI conversion model captures user preference from natural language interaction, turning them to doable profiles we can draw on over time, and proactively surface topics tailored to each user, effectively extending the range of every live planner we have.

That concludes our update on the insurance business for the second quarter. 接下来我来汇报一下车和要业务在二季度的表现 截至2026年6月底水利筹捐款人数累计约4.99亿人 累计数捐换者达到382万人 累计筹款金额约747亿人 本季度我们继续聚焦AM风控模型 重点推进两个关键模块的迭代进展 一是资产隐瞒识别模块 原有方式中分控策略更多一类及与业务经验人工设定的规则 稳定度我们进一步扩大AI语义理解的能力的应用深度 以模型协谱的方式对身份证信息医疗材料与用户生存内容 进行联合语义分析 识别房产 割产以及收入等维度的隐瞒信息 并由AI分控模型的信息的真实性与关联性做出研判 自动识别其中可能存在的资产状况隐去矛盾 升级后的通控模型 体系相较原有正和规则 覆盖更全面 抓取更准 审核效率显著提升 二是敏感身份识别文化 取缔筹通过社交媒体信息 文案素材 提供所正等要素进行联合语义分析 系统可识别有高化体性身份的群体 并据此及时开展旅行 风险评估与升级 基于AM模型对职业与收入的区间推断 跟模块目前无需依赖人工维护的先验规则 即可完成对安利发行人身份的自主识别 得以有效地将潜在风险拦截在发酵之前 Next, let me briefly update on WaterDrop Medical Co-Fonding and healthcare businesses.

As of the end of June 2006, WaterDrop Medical Co-Fonding had cumulatively contributions from around 499 million donors, helped to 3.82 million patients, and raised a total of 74.7 billion. This quarter, we continued to upgrade our AI-driven risk control models, further improving asset the concealment detection, and sensitive identity detection. By combining semantic analysis of ID information, medical materials, and user-generated content, the upgraded engine can better identify heating inconsistency and improve risk control efficiency.

Thank you very much. 雖患者基础大,但項目普遍衰敗率高,對於招募品牌的體驗精度和速度要求高。 二季度,難兵入組患者同比提升80%,有力證明了金牌在高效衰敗率場景的穩定交付能力。 與此同時,旅約口碑及正向賬號也更深更廣的合作信任。 In our healthcare businesses, our performance exceeding expectations across several key metrics.

We enrolled more than 1,500 patients in this quarter at 54% year-over-year, and cumulative patient is served, surpassing 17,000. Growth was driven by the higher matching efficiency and a stronger enrollment capability. Oncology projects remained at work for focus, while chronic disease projects have grown most of the sequential growth this quarter. Although chronic disease studies have a larger patient pool, they typically carry a higher screening failure rates and increase greater demands on matching procession and speed. Chronic disease enrollment increased 80% year-over-year in the second quarter, further validating our enrollment ability in high screening failure zero. Meanwhile, our proven enrollment track record is translating into deeper and broader trust among partners. In this quarter, Infant Platform signed 167 new projects, and a number of pharmaceutical companies and CROs we partnered with the past 255. Going forward, we will continue to optimize operational efficiency and work with our partners to advance digitalization across the clinical disease procession. This concludes our update on crowdfunding and healthcare businesses. Hello, everyone.

This is Li DiRu. Next, I will walk you through our financial highlights for the second quarter of 2026. Before I go into details, please remind us that all the numbers coded here will be in R&B, and please refer to our earnings release for detailed information on our financial performance on both the year-over-year and quarter-over-quarter basis, respectively. In the second quarter of 2026, Woodard Jobs delivered net operating revenue of 1,448 million yuan, up 72.8 percent year-over-year, maintaining a strong growth momentum. Our insurance business contributed about 1,333 million in revenue, representing an 80.5 percent increase year-over-year. Nine insurance businesses accounted for around 7.9% of total revenue, including 63.6 million yuan from medical crowdfunding service fees and 35.2 million yuan from our digital clinical trial solutions. Total operating costs and expenses came in at about 1,337 million yuan in the second quarter, up 80.5% year-over-year. Operating costs were 537 million yuan, increasing 29% year-over-year. The increase was primarily driven by business-scale expansion, including an increase of around 63.8 million yuan in cost of referral and service fees, as well as an increase of 21.4 million yuan in short-message service costs and 11.2 million yuan in personnel costs, respectively. Sales and marketing expenses reached nearly 638 million yuan compared with 199 million yuan in the same quarter of 2025. The year-over-year increase mainly reflected our active step-up in public domain traffic investment, with marketing expenses for third-party traffic channels increasing by about 415 million yuan and marketing-related professional technical service fees increasing by around 21.8 million yuan. GNA expenses were 93.4 million, up 27.2% year-over-year, mainly due to an increase of 33.3 million yuan in allowance for credit losses. This was partially offset by decreases of nearly 10.5 million yuan in personnel costs and share-based compensation expenses. R&D expenses were 68.8 million yuan, up 32.4% year-over-year. The increase was mainly driven by cloud server fees, token fees, and other IT support expenses, which rose by about 11.1 million yuan, as well as an increase of 6.3 million yuan in personnel costs and share-based compensation expenses. For this quarter, operating profit reached about 111 million yuan, up 14.3% year-over-year and 39.2% quarter-over-quarter. However, due to tax-related items and non-recurring gains and losses, net profit attributable to shareholders was around 126 million yuan, down 10.3% year-over-year, but up 27.9% quarter-over-quarter. As of June 30, 2026, cash and cash equivalents, short-term investments, and other cash positions totals about 2.653 billion yuan. Our cash reserve maintains EMBO and provides solid support for both business investments and shareholder returns. In terms of shareholder returns, since the long-term first share repurchase program, We have cumulatively repurchased 62.9 million ADS for approximately 120 million U.S. dollars as of August 31, 2026. And recently, the board approved the six-share repurchase programs, in which we plan to repurchase up to $50 million over the next 12 months, and also approved the six-cash dividend of approximately $10.8 million U.S. dollars. Overall, both the quality and scale of growth in our core businesses improved this quarter. The continuous deployment of AI across every scenario in our business is becoming an important driver of efficiency gains. Meanwhile, we're expanding proactively while investing presently in new initiatives in global markets, which for now have very limited impact on our current period financial results. As these initiatives reach a larger scale, we will keep the capital market informed in a timely manner. In the future, the company will remain committed to discipline strategic investments and continue creating long-term value for users and shareholders. That concludes the company's financial results for the second quarter of 2026. We will now move on to the Q&A session.

Okay, thank you, Ziru. Ladies and gentlemen, we will now begin our Q&A session. To ask a question, please press Start 1 on your telephone. To withdraw your question, please press Start 2. In addition, this conference is being webcast live on the CNTR platform. If you're joining through the platform, you may also submit your question in writing there. To take our first question, and it comes from the line of Amy Chen of City. Her question is, in terms of the mainland China, Chinese business in Hong Kong, media have reported that mainland tax authorities made tax policy dividends. Has management seen any change either in international business or domestic business? and how do you have to reduce your policies in the state and the state of state?

Thank you to your question. So, let's go back to the last question. In the last few years of the public's public loan, we've got to understand the information that this must be a fixed debt. We understand that it is not a quote that it is a quote that it is not a quote that it is a quote that it is a quote that it is. The news is that the public loan is not a quote that is a quote that is a quote that is a quote. 但香港保险产品在多B种配置、全球医疗、财富传承等方面的差异化价值是非常明确的 在满足对客户群的相关需求上仍然具备吸引力 港险市场的底层支撑逻辑是没有变化的 定位人数点市场的当前核心增长驱动力来源于广大居民健康保障意识的持续增强商业保险的多层政策利好和产业单持续的保险产品创新以及当前低利率环境下居民储蓄向保险的长期稳健资产迁移的结构性趋势 水滴公司覆盖多元客户群,多市场和多服务模式,整体业务组合非常稳健,无论客户需求落在每个承接品内,我们都有信心和能力做好承接与服务。 Regarding recent market attention, we're reading that what we're seeing reflects the enforcement of tax rules that have long been placed rather than a new policy specifically targeting Hong Kong insurance.

In the new term, the media coverage has some effect on our customer sentiment, but the depreciating value of Hong Kong insurance products like a loaded currency allocation, access to global health care resources, and inheritance funding are really clear and fundamental drivers of the Hong Kong insurance market have now changed. Turning to the drivers of mainland China insurance market today, the growth is driven by a writing health protection awareness, policy telling for commercial health insurance, continued product innovation, and the structural shift of household savings into long-term assets such as insurance in the current low interest rate in the month. Waterdrop serves as a diversifying user customer base across multiple markets and multiple service models, and our business makes remain solid and we're confident in serving user demand wherever it rises. Next question from Xin Tao Chen of CSCC. The question is, we have noticed that several insurers have recently launched health insurance products targeting customers with pre-existing positions. How does management evaluate this opportunity in this category, and what are jobs for the strategy in this area? 以及水滴是在如何规划这类产品的产品策略方面? 感谢陶总的提问 从大趋势上来讲随着体检越来越普及慢性病 在病生存也越来越常见 统计学意义上的零瑕疵的完美标题其实已经很少

而传统健康品长期更擅长存报健康人 大量隐蔽人群、慢病人群的保障需求是客观存在的 所以行业共识比较清楚 就是要从保健康人转向保更多人健康 这即使需求和机会也是商保补充支付 扩大覆盖面的确定性方向 代表你产品最典型的早期实践是各地的混民宝 现在已经逐步拓展到商业低疗险、重疾险、失能险等更多商保产品选种 这种延伸不是简单降低投保门槛 本质上是在细风疾病风险的基础上 建立差异化的城堡与领培模型 呈现定向可保可培 降低投保门槛是水利公司在产品定制策略上持续发力的主线 供给端 我们会按照多成绩 多年龄层 多病种去识别需求 重点 从而能和保俗 共同设计更优的组织条件 责任范围 同时在货客端 借助互联网平台在AI用户洞察方面的优势 让对的用户买到它适合的保险产品 通常期来看的话 随着未来医保和商保数据逐渐打通 As checkouts become more common,

And aquatic units and living with pre-existing conditions are far more typical. So a clean standard life is actually quite rare. And traditional health care insurance has long focused on healthy life, but millions of people with pre-existing conditions do go and protect it. The industry consensus is clear we're shifting our ground and ensuring more healthy people to protecting the health of more people. This is both a real-demand side opportunity and a clear path of commercial insurance expanding as coverage. And early practice with civil-level inclusive health plans, that logic is not moving to more the commercial medical insurance, criminal illness insurance, disability insurance, and This is not simply losing and writing, it is segmenting the disease risk and building depreciated and writing and claims. So the certain risk can actually be written and paid. But what is that lowering coverage threshold is central to our current strategy. As I said, we break the demand down by scenarios, age, and conditions, and co-design terms and coverage with our insurer partners on the accreditation side we use platform and the AI insights to match the right product to the right customer so people with pre-existing conditions can actually find something that works for them longer term our view is that a health cover for people with pre-existing conditions can become more like auto insurance people can actually buy it, claim on it, and renew it. Accessibility and sustainability will have to move together. We'll take our next two questions from Liu Wu of Gu Taijian International. The question is, is there a clear timeline for AI agents to start generating commercial value? And how will AI investment impact on R&D census ratio going forward?

And what other new initiatives Thank you very much. 呃 就是如前面这个业绩发布的时候 我们也介绍过啊 我们公司的这个AI的能力 其实是嵌入到我们的核心业务 尤其是像保险业务的货客和保理赔等各个业务环节当中去的 所以我们看待AI商业化以及价值呢 也是基于各个环节的具体的提效空间 或者是增量空间的不同来去做衡量 那整体来说我们还是希望能够通过AI能力和AI工具的全面融合 最终还是能够提升公司整体在财务上的收入增长的能力 和这个利润创造能力 所以我们认为AI agent 包括AI应用的价值呢 最后还是会体现在公司整体的 这个业绩的交互上 我们不会有一个单独的这个AI板块的 单独的这样商业化的区分 那也像前面说过 就是我们在不同的这个服务场景下 其实用AI的方式会不同 比如说我们在货客随便转化的场景 那AI其实现在是可以直接参与用户 关于保险的咨询和购买的决策的 那这个季度内呢 这一类的场景整体辅助实现了保费已经接近1亿元了 那在长浅的这个转化的尤其是我们服务顾问的服务的场景下 AI的工具主要是能够帮助这些顾问去提升他们的处理信息和展业的效率 然后能够间接的助力转化助力转化然后也能够去释放他们的产能 那这边我们的AI的工具比如说也有这个叫合保助手可以到AI 包括超级授钱小助理 这个都在业务中 在日常的经营中在落地 那在中后台的运营支持的场景方面 我们的AI质减和AI客服等应用 也已经是在全量的运营 基本上在全面承接我们业务规模扩张 这个周期内带来的服务量的增长 关于我们在AI上的投入 我看问题有问到 就公司的研发费用方面 我们整体的研发费用率 确实整体来看 还是在比较稳定的一个区间内的 但实际上从XX来看我们还是会在费用的结构上去做一些主动的调优 那主要还是把研发资源向这个更侧重于这个AI前沿科技的投入上面去做倾斜 那这里面去包括我们在算法和模型相关人材梯队的一些建设 那也包括我们在支撑AI应用落地所需要的一些token相关的这个成本的投入 那我们预期后续呢随着AI应用电传量的持续提升 这份投入肯定还是会预计保持一个自然的增长 I think the first thing we need to be at the line of data seinem needs to be presented on the field And the overall result of the results Let the entire company say that we're in an appropriate place This is the company's activity on the day of AI The value of its value And both witnesses There's a question on our new rails We asked about our own business We still have an interest in this Thank you very much. 啊,目前已经在全球主要市场进行了试点的销售也收到了一些比较初步的这个积极的反馈 但整体来看这个业务还是处于比较早期的阶段还是需要,呃,一个周期去验证,呃,包括当前对公司的这个财务报表的影响也是非常有限的 那我们呃,也相信这个过程中积累的经验,无论是对这,像业务本身还是对公司整体的能力的沉淀都是非常有价值的 As previously introduced, our AI is expanding across a forward value chain as the acquisition that receives pre-screening and claims, and it rolls by stage.

We're not commercializing AI as a standalone business, and its value will show up in our top-line growth and bottom-line growth will deliver. And as I were introduced earlier, in the user targeting and conversion, our AI directly supports user consultation and purchase decisions, giving nearly 100 million in FIP. And in our long-term insurance advisory tools like our co-e.ai and our AI Pre-Source Assistant to help our lab planners work more efficiently and close more cases. Our operation, our AI customer service and quality instruction application have fully absorbed the extra volume as we scale. And our R&D side, the overall R&D ratio is stable, but we are actively shifted resources towards AI, both in the talent and in token cost. As usage scales, the fan will grow naturally, but we are disciplined about ROI and their age scenarios, and it will keep the overall ratio to a reasonable range. And then turning to our new initiative, we are incubating a portable AI office assistant, a smart hardware product that will leverage our AI agent know-how, in-house R&D, and China's supply chain strength. Adding in pilot sales across major global markets with some encouraging early feedback. That said, it's still an early stage and its financial impact is limited for now. And the experience we're gaining along the way, both for the business and for the company overall, is generally valuable. Now take our next question from Kate Liu of UOB Kiham. Her question is, from product and supply perspective, which insurance category does the management view as having the strongest growth potential? The next question is from the U.S. Kate's question. She's the question is, from供給 and the product's perspective, is the question is, from the supply and the product's perspective, is there any other options?

Thank you Kate's question. This question is, from the supply perspective, 嗯 居民健康意识的提升 人口老龄化的加深 健康险正在总标准化成绩 走向更细分 更贴近实际需求的方向发展 比如说是在病体举行过的病毒险 中高端医疗险 以及涵盖健康管理 养老服务等全艺术这个产品 以上这些其实是 做我们也是市场看好 也判断一致方向的产品 过去传统产品覆盖不到或者服务不够精细的需求正在不断的挖掘出来 我们也会持续关注以上几个大方向的机会 还有几类产品 同时的话这几类产品和我们在线渠道积累的能力是比较契合的 一方面互联网保险平台规模化的机组播客能力 能够打破空间和地域的限制 提高保障的可及性 There are two forces that are reshaping our health insurance,

like raising health protection awareness and aging population. So the market is shifting from the standardized products to more tailored to actual needs. Demand-driven coverage, including, like, insurance for previous conditions, needs to heighten medical insurance and products bundled with health management and elderly care services. The demand that traditional products never really served is being a lot. We will keep building in this area. And this gap theory plays right into the strengths we've viewed through our online platform. We can reach broadly and target precisely, leveraging our AI capability and spot protection gaps in specific customer groups. can match them with the right products, and deliver better, faster service at the point of user consultation. So we will keep building on what we are uniquely good by. Okay, we will now take our next question from Xi Yu Wo of China Security. The question is, noticing the strong growth in Q2, and could you walk us through your recently customer acquisition investment and outcomes, and what we can expect on the cost side for the rest of 2016 and into 2017.

Thank you very much. So you can see that our insurance insurance and earnings in 2016 year one year of the basis of the year. This year, our new users have increased 30% of this year. This whole thing looks like we're in the use of the use of the use of the use of the use of the use of the use of the use of the use. Of course, we are never planning on similar products. We are not trying to look after the market main line. We can also look at the AI's capability, and if we can better perform the software, which is the best thing to demonstrate. We also share some settings. And how to get started. 具体的2026年的下半年和2027年的这个全年的周期呢 我们其实在这个战略的方向上还是保持连续的 所以我们还是会预期一个比较保持积极的货客节奏 提升我们对于目标人群的覆盖 让更多的用户去了解这个保险以及保险配置的价值 同时我们也预期在当前这个货客投入的周期内带来的这个用户呢 会在后续的整个的用户的生命周期内 通过我们想说当前保单的续保 包括说不同选种的付购 或者是这种为家庭去配置的 这样的家保的用户的购买决策中 把用户生命周期的价值 足够的得以释放 这个是我们看当前的货客节奏 包括后续的货客的投入 和我们对于更中期用户增长 带来的用户价值的综合的一个观点

It's due in an investment circle in the user acquisition in Q2, and that speed is already show up in the numbers, like insurance revenue and operating profit, both grow further from the last quarter. And the new users were actually up more than 30% sequentially. This is a combined result of better reach out and the conversion and product supply. And in terms of the user acquisition strategy, we are now—actually, we are not simply pursuing the cost reduction. What matters most of us is how we leverage AI capability to better align our product supply with our user profiles and improving conversion efficiency. So currently, AI has been embedding across the entire process from our customer acquisition to service, and it's continually improving our efficiency across our core scenarios. For the second half of 2006 and the full year of 2007, our strategy direction remains consistent. We continue to expect to maintain an active user acquisition pace, exceeding outreach to target customer segments, and broadening user education coverage. And at the same time, we expect the user value generated by the current period acquisition to be gradually realized through renewals and upsells and cross-sells over the sequential user life circle. Further questions online, and this concludes our Q&A session for today. Thank you to all the investors and analysts who joined us today. Betsy, operator, back to you.

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