China requires insurance companies raising registered capital below RMB 100 million (or equivalent) to set aside 20% of actual increase as capital margin

China requires insurance companies raising registered capital below RMB 100 million (or equivalent) to set aside 20% of actual increase as capital margin

Beijing, Sept. 4, 2025 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare services with a positive social impact, today announced its unaudited financial results for the three and six months ended June 30, 2025 and a cash dividend. The company reported a solid increase in profitability and significant growth in insurance premiums, driven by the integration of AI into its operations.

Financial Highlights

- Net Profit: Net profit attributable to ordinary shareholders reached RMB140.2 million (US$19.6 million), representing a 58.7% year-over-year increase.
- Insurance Premiums: The first-year premiums (FYP) generated through the insurance business reached RMB3,204.3 million (US$447.3 million), up by 80.2% year-over-year.
- Operating Revenue: Net operating revenue increased by 23.9% year-over-year to RMB838.0 million (US$117.0 million).
- Crowdfunding: As of June 30, 2025, around 480 million people had cumulatively donated RMB70.0 billion to 3.54 million patients through Waterdrop Medical Crowdfunding.
- Clinical Trials: The Company had cumulatively enrolled 12,216 patients into 1,385 clinical trial programs through the E-Find Platform.

AI Integration and Strategic Initiatives

Waterdrop's strong performance was bolstered by the effective integration of AI into its sales and service processes. The "Waterdrop Guardian" AI Application Suite, which includes 'AI Medical Insurance Expert', 'AI Customer Service Agent', and 'Life Planner Copilot', significantly enhanced operational efficiency and user experience. The company also launched 'KEYI.AI', a real-time AI underwriting assistant for consultants, and expanded its collaboration with 198 pharmaceutical and contract research organizations.

Capital Margin Requirement

In line with China's regulatory requirements, Waterdrop Inc. must set aside 20% of the actual increase as capital margin for raising registered capital below RMB 100 million (or equivalent). This requirement ensures that companies maintain adequate capital reserves to meet regulatory standards and operational needs.

Dividend and Share Repurchase

Waterdrop's board of directors recently approved an enhanced cash dividend of US$10.9 million, representing a 50% increase over the previous dividend. The board also authorized a fifth annual share repurchase scheme. Since the launch of the first share repurchase program in 2021, the company has repurchased approximately 55.7 million ADSs for US$109.0 million as of August 31, 2025.

Looking Ahead

Waterdrop Inc. is committed to delivering both top-line and bottom-line growth in the second half of 2025. The company believes that tech-driven innovation is the core strategy and source of business excellence, and looks forward to delivering a compelling success story, as well as value to its users, partners, and shareholders.

References

[1] https://tirto.id/waterdrop-inc-announces-second-quarter-2025-unaudited-financial-results-and-a-cash-dividend-hhde