Good morning, ladies and gentlemen, and thank you for standing by for Water Dropping Third Quarter 2024 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. Jasmine Lee. Please proceed, Ms. Lee.
Thank you. Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. private securities and the Litigation Reform Act of 1995.
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 are not limited to, those outlined in your public filings with the SEC. The company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Also, this call includes discussion of certain non-GAAP measures
Please refer to our earnings release for reconciliation between NANDGAP and GAP.
First of all, I would like to invite Mr. Shen to give a speech. Hello, everyone. Thank you for participating in the 3101 launch conference in 2024. 3101 is a company that is determined to pursue healthy business development and sustainable development, and to maintain a stable business. The total revenue of 3101 is 7.04 billion yuan. The total revenue of 3101 is 9,281,000 yuan, which is more than 150% of the total growth.
In the first three quarters of 2024, the company's total revenue reached RMB2.8 billion, and the share price grew by 1.8%, and the share price grew by 1.42%. Since the first quarter of 2022, the company has maintained a steady growth of RMB2.6 billion in the 11th quarter in a row. In this period, the share price of each model has risen by 5.5%.
Among them, the insurance business is focused on catering to the needs of parents and individuals, and the insurance company cooperates with the Internet to promote the promotion of all kinds of innovative projects. In the first half of this year, the number of users will reach 2.4 billion, and the number of applications will increase rapidly. The business has exceeded 20% in 2020. In addition to SiliBao, SiliQou actively uses the platform as well as personal assistance, the Internet platform, and other methods.
The number of users of medical services and insurance companies continues to grow. At the same time, the risk of losing money is also increasing. General medical services and insurance companies continue to work hard, and the cooperation between companies and the Internet is not only increasing, but also increasing rapidly. In addition, I would like to introduce the progress of the company in the field of AI. For example, as a technology company in the health insurance and health industry, we have set up a large model for it, and we are working on it. After two years,
Based on the internal business scene and the accumulation of long-term AI technology, and the opportunity to catch up with AI technology in real time, we have launched an AI top-sales platform based on large-scale, short-range, and low-cost applications. The AI top-sales platform is equipped with real-time AI outsourcing and conversion capabilities. It can support the retail sales and customer business of the Chinese Bitcoin industry.
to help ecological partners improve service efficiency. After the second quarter of this year, we have achieved cooperation in the field of seafood. In the third quarter of this year, the AITOP Sales platform has once again reached a new milestone of commercialization abroad. On the one hand, we have further enhanced the quality of seafood cooperation and maintained the cooperation in the healthy seafood field. What is more important is that AITOP Sales has also started to develop non-risk industries, explore service e-commerce, education,
We need a large number of companies to do this. As of now, including within the industry, we have established a target of 10 clients. All 8 companies have begun to conduct bridge training. This reflects the expansion of the infrastructure of Salesforce AD. The company will continue to invest in R&D. I want AI applications to build the next core capability. We sincerely thank the shareholders and investors for their long-term trust and support. In addition to solid business,
In addition to increasing the value of the company, we will also adopt the method of sharing and recycling to continue to share and recycle. As of the end of November 2020, the company has accumulated about 50.9 million units of 1.2 billion U.S. dollars in recycled goods at the production site, and about 1.02 billion U.S. dollars in post-production. These recycled parts will be used to improve the quality of goods and sell them. At the same time, the company also completed the second special certification phase of the production site.
In the field of enterprise and social management, SIDI has always been a sustainable development initiative. As of the end of September, the SIDI platform has started operations with 115 public projects and 1.5 million public projects have been launched. Within a week, the company also issued a report on ESG in 2022. Also, the Green Financial Institute of Tsinghua University jointly signed an ESG agreement with the Internet insurance industry.
It provides valuable reference for the implementation of ESG in the Internet security industry. Recently, the company has won the ESG Connector Leadership Organization Pioneer Award and the ESG Leadership Award. It shows the company's attention to ESG work and the rapid improvement of ESG technology. The above is a general introduction of the company's 3G network. In the future, the company will continue to advance with technology.
Okay, thank you, Mr. Chen.
In the third quarter, Qudi Insurance's annual insurance fees amounted to RMB20.4 billion. The share price increased by 20.04%, and the return rate increased by 14.8%. The insurance-related income amounted to RMB600 million. The share price fell by 3%, and the return rate increased by 4.7%. The operating profit amounted to RMB1.2 billion. The operating profit rate remained in the upper half of the year and remained above 20%. In the quarter,
Short-term annual SMB fee is 13.7 billion RMB, 30.3% growth per annum, and 9.9% growth per annum. The growth is mainly driven by the growth of the new guarantee fee. The company uses multiple channels and multiple methods to create an IP model for products and sales in channels such as Xiaohongshu, Douyin, and Shipinghao, and based on the RPM model,
to further optimize the efficiency of the distributed channels. Q3, the number of new users remains stable, and the number of users remains the same. Based on the needs of specific users, the company optimizes the approach to improve the user experience. Q3, the number of users remains the same, and the contribution list remains the same. Q4, the number of users remains the same, and the contribution list remains the same. Q5, the number of users remains the same, and the contribution list remains the same. Q6, the number of users remains the same, and the contribution list remains the same. Q7, the number of users remains the same, and the contribution list remains the same. Q8, the number of users remains the same, and the contribution list remains the same. Q9, the number of users remains the same, and the contribution list remains the same. Q10, the number of users remains the same, and the contribution list remains the same. Q11, the number of users remains the same, and the contribution list remains the same. Q12,
The company has launched multiple face-to-face ads and face-to-face payments, and has been able to promote and protect products to reduce the threshold for users. Individual products have added features and services to enhance user security. The first-year-scale guarantee of the product contribution to our delivery system is due in February. In terms of motherhood, the product certificate is gradually improving. Good Luck 3.0 version continues to gain users' recognition, and the parent-child group is fully online.
It covers the needs of mother-child protection in all aspects. In the short term, it is expected to drive P3. Short-term, the share of military insurance increases by 14.9%. The company also continues to optimize service quality. In September, we will hold the Shilibao Service Investment Conference. We will establish a No. 3 service alliance with multiple insurance companies. The whole process will improve the user experience. In terms of storage, the first year of the quarter, the official insurance will reach 6.7 billion yuan.
4.3% increase in red rice, 26.4% increase in yellow rice. The online trading environment continues to improve, and the quarterly manufacturing cost of yellow rice has increased. Among them, the content creator's plan is to reduce the cost of yellow rice growth and promote the annual cost increase. At the same time, the company focuses on catering to the needs of the general public, deepening the cooperation, and further expanding the disease
coverage and guaranteed strength. We launched the WUYOU Guai Ai Anji version of Shileng in-depth insurance. Users aged 19 to 70 can apply. The maximum guarantee is 90 years old. Shileng-Q3 contribution first insurance will be about 7,800 yuan. In addition, Xiansheng Baozhu exclusively launched a high-profile special zero-cost insurance.
more than 10 types of high-relevance brain disease life-saving measures to achieve comprehensive coverage of brain health risks. At the service end, Qubibao continues to achieve a low-blood donor system, which covers more than 30 areas, provides health management for long-term users, green channels, and includes child management, education, and emergency resuscitation.
The mobile phone battery life has increased by 1.36 million kilometers in Guangzhou. Shengnanbao has also shown good growth in the third quarter. Independent contribution of 2.6 billion yuan has increased significantly in the same year. The infrastructure has been further strengthened in the quarter. The plan is finally completed, and the manpower and man-made environment have improved. In the third quarter, Shilibao and Shengnanbao continue to cooperate in the development of natural resources. In addition, Shilibao has a large model, which can help Shengnanbao generate content and overcome scenarios.
For the rest of the managers, we have launched a series of services such as upgrading the brand, building a comprehensive service system for insurance, health care, and inheritance, expanding the scope of supply and demand, updating the sales system, and deepening the product service. We have also continued to develop the ability to develop large-scale models in the field of insurance. As of the end of September, the company has applied for 40 patents related to large-scale models and has won 6 patents. So far,
The knowledge base of the water-based water-handle model covers 7,378 mainstream management scenarios. Since this year, the water-based water-handle model has been used to combine the functional optimization of subdivision business scenarios and water-based self-sustaining smart products. Among them, the design agents and systems are built-in, which effectively replace the way that the design scenario was used in the past. The use of AI design and artificial integration greatly improves the efficiency of design.
In individual development scenarios, the total workload was covered, and the number of hours to process the workload was 7 times that of the normal mode. This has indeed improved the efficiency of the business. In the cloud, the AI sitting agent has the ability to communicate at an advanced level, and can independently interact with users from end to end. In the internal unit, the contribution of millions of medical insurance fees, drug sales,
AI-based learning agents further enhance technical capabilities, create long-term memory modules, increase the mechanism of answering and processing in human-to-human dialogue, and solve long-term problems. The above is the progress of the third quarter of the security business. Next, I will introduce the development situation of the second business of this quarter. Thank you, Ranwei. As of the end of Q3 of the second quarter of the year, the number of water drops has accumulated about 4.66 billion.
The total number of patients has reached 3.32 million, and the total amount of donations has exceeded 6.63 billion yuan. The number of users and the amount of donations continue to increase. September 5, 2024 is the ninth Chinese Charity Day, and it is also the first day of the newly amended Chinese People's Republic Charity Act. On the same day, the Ministry of Civil Affairs, the Ministry of National Internet Information, the Ministry of Industry and Information Planning, the Ministry of Public Security,
The Financial Supervisory Bureau jointly introduced the Personal Assistance Network Service Platform Management Act, which clarifies the management features of the Personal Assistance Network Service Platform, including the specific requirements of payment standards, capital management, and anti-industrial embezzlement. The implementation and issuance of these industry laws and regulations have improved the standardization and transparency of the industry, and provided solid legal guarantees for the prosperous development of the industry.
Our deep contribution is the life line of Waterdrop. In this quarter, Waterdrop has been constantly implementing control strategies to enhance information transparency. For example, we have implemented a public monitoring and reporting mechanism to ensure that the platform can clearly and timely communicate with the public on the case page to ensure that the platform can clearly and timely communicate with the public on the case page to ensure that the platform can clearly and timely communicate with the public on the case page to maintain a transparent and efficient monitoring environment. At the same time, as a technology company, Waterdrop is also constantly exploring the technology's potential for the platform.
For example, ShuiDiChou utilizes algorithmic technology to achieve high-level warning of cases after a full day. Even in the early hours of the night, from 1am to 6pm, the platform can also detect high-level questionable cases through smart recognition, make a stop-loan, stop-loan, and other emergencies to ensure that the risk of cases can be quickly reduced. At ShuiDi, we believe in science and technology. In the future, we will continue to protect every heart through science and technology innovation and a perfect control mechanism.
In this quarter, the number of medical-related businesses in the company has steadily increased. In terms of digital clinical trials, in the third quarter, the number of patients successfully registered in the platform was 909. Since the establishment of the business, the number of registered patients has been over 9,500, and the trend of steady growth has been maintained. Thanks to the excellent efficiency and quality of the patent, the cooperation between the general medical and domestic and foreign investment pharmaceutical companies continues.
In this quarter, there are 184 new partnerships with pharmaceutical companies and CIOs, and 88 new partnerships. This quarter, the brands have played the role of major partners or exclusive recruiters in several projects. For example, in a rare 8.0 tumor clinical trial project, the general brand, as the exclusive recruiter of the head of the transnational pharmaceutical company, used the precise analysis and intelligent matching of the most large number of positive cases and case data to help the winner exceed the expected target of joining the group.
With the development of the industry, the leading pharmaceutical companies are also paying close attention to the key role of new technologies such as artificial intelligence and big data in the development of new drugs. Due to the professional advantages of general medicine in the digital field, the platform has been invited many times to share its expertise with domestic and foreign pharmaceutical companies, and has been widely recognized. This has also contributed to the continuous expansion of the cooperation in the field of cooperative adaptation and cooperation. In terms of digital channels for marketing business, the platform has widely used AI technology in various sections of patient service in the past quarter, which has greatly improved the efficiency of service.
For example, in the patient-scientific response phase, our smart assistants can quickly and accurately respond to patient consultations and provide professional medical services. In the treatment phase, we use AI and medical understanding technology to assist in the high standard and professionalism of artificial selection to ensure the service. In addition, the platform also utilizes structured medical data and large models to guide patients to complete smart follow-up, and effectively enhance the patient's full-scale management awareness and one-to-one trust in tumors and chronic diseases.
The platform will cooperate with industry partners to jointly explore the applications and possibilities of AI technology in the medical field, and assist in the digital transformation of the industry. Next, the person in charge of the company's financial department will introduce the situation of the company's financial performance in the third quarter. Thank you, Director. Hello, everyone. Next, I will briefly introduce the financial performance in the third quarter of 2024.
Please note that all the financial data mentioned below is divided by RMB. In addition, the financial data and the return on investment can be found in the information released on the RR website of some reference companies. Beijing continues to optimize its financial performance and the growth of profitability is particularly significant. In terms of revenue, our total revenue is 7.04 billion yuan, and the return on investment is 4.1%. In terms of distribution, the contribution of insurance business revenue is about 600 million yuan, and the return on investment growth is 4.7%.
The initial fee for ShuiDiQou is 6,580,000 yuan, and the return is 15% lower. The number of patients in clinical trials is 2,430,000 yuan, and the return is 17.4%. In terms of cost, the operating cost of this quarter is 3.41 billion yuan, which is 6.7% higher than the 3.19 billion yuan in the last quarter. This is mainly due to the refund of this quarter, which is about 32.6 million yuan higher than the last quarter.
From the perspective of sales tax, this period is about 1.73 billion yuan, and the return is 10% higher. This is mainly due to the fact that the business has increased investment strength on the basis of economic and high-performance operations, driving the increase in the investment tax of third-party liquidity. The return on investment tax in this period is 1.11 billion yuan, and the return on investment tax has increased by about 17 million yuan. This is mainly due to the related tax cuts from Shenzhen Nanbao. The original investment tax is about 53 million yuan, and the return on investment tax remains stable.
From the perspective of profit and loss, the company's profitability has increased by more than double in the third quarter. The total net profit has reached 9,280,000 yuan, which is 2.5 times that of the same period last year. The return has also increased by 5.1% healthily. The risk-benefit-benefit ratio has also remained stable at more than 20%.
Under the continuous progress, this quarter, we still maintain the consistent trend of operating cash flows. The company has plenty of cash reserves. As of September 30, 2027, the company's cash-based operating capital has increased by 34.4 billion yuan. It continues to support the company in the flexibility and stability of shareholder returns, strategic deployment, and so on. To sum up, the strong performance of the company in the past quarter has shown the firm's determination in changing the market.
In the future, we will continue to stick to our business philosophy and strategic choices, and continue to achieve steady growth for our company. This concludes the financial situation of the 2020 financial year. Next, we will move on to the Q&A session. Thank you. Okay, thank you, Xiaoying. Dear listeners, we will now start the Q&A session. If you have any questions, you can press the question mark on the phone and then press 1. If you want to withdraw a question, press the question mark and then press 2.
In addition, this meeting will also be broadcast live on the Jingmen financial platform. If you are participating through the Jingmen platform, you can also ask questions through text on the platform. The first question I received here is from Jeffery Guo from Zhongjing Company. The question is, can the management team
Thank you for the question. Let me answer this question. Compared to the same period last year, we have maintained a stable income and immigration situation this year. However, due to the volatility of the season of the insurance business, usually it is a relatively low-income quarter in all four seasons. This trend will continue this year.
In 2024, the insurance industry under the guidance of relevant policies underwent a period of transition adjustment. The company also made some adjustments to the basic model of insurance and investment of resources. Although there were some challenges in the short term, we are very optimistic about the future development of the industry and the company's competitiveness. Looking ahead to the whole year of 2024, the company is expected to achieve a growth of about 5% at the revenue end, and at the same time pay a net profit that has increased significantly.
In 2025, we plan to fully invest our resources, focus on business growth, further consolidate, and raise wages in the competitive industry. Thank you. Thank you, Xiaoying. Jeffrey, I have another question. The second question is, what does the management team think about the trend of the policy of uniting medical insurance with commercial insurance data, and how will it affect the company's business plan in the future? Thank you, Jeffrey. I'll answer this question.
about health insurance and commercial insurance, we think that the future policy is expected to develop commercial insurance in all aspects, from product calculation to insurance and compensation, especially to directly expand the degree of product supply to the local population. And in the field of health insurance,
In the past two years, the health care sector has been a key focus of Shili Health Care's business. In the third quarter, Shili Health Care's series of products contributed close to 200 million yuan in the first year. So we are paying close attention to the landing rhythm of relevant policies.
If Libao data is further open, we will actively cooperate with investors to explore more customized insurance products that meet the needs of you and your users. In addition, in the user service sector, Shiba Inu has been strengthening the construction of the Meru system in the past two years to enhance the user's need for observation, coverage and service capability. In Xiaohongshu,
We have already established a rich content operating system on the content platform of video and other rapid development. This kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service, this kind of service
The third question is still about insurance business. It's from Edwin Liu from CLSA. The question is, I noticed that in Q3, the insurance fee increased by 20% on average, but the insurance-related income increased by 3% on average. I would like to ask the management team, why is the exchange rate of insurance fee and income uneven? Okay, thank you for your question. I will continue to answer. The exchange rate of insurance fee to income is called take rate. In terms of take rate,
In this quarter, the price of TechWave has fallen. This is mainly related to the change in our short-term business. In Q3 this year, the short-term FYP growth was significant. The final ratio of the short-term FYP was 67%, compared to 62% in the same period last year, which is significantly higher than before.
Short-term application itself is the first common thing, so the overall ticker rate has dropped. In addition, as the low-end users are more sensitive to prices, we have also tried some high-priced products to attract customers. Most of the products are relatively low, which has also caused some pressure on the low-end ticker rates at the time. Short-term applications are the main entrance to ensure the growth of platform users.
The current mutual strategy will have a certain impact on the short-term take-aways, but in the next one to three years, there will be a need for insurance, infrastructure, payment, or long-term return, which will further contribute to the growth of the subsequent cycle of business. Thank you. Okay, the next question is from Zhang Muyang, an analyst from Guotai International.
His question is, notice that the company's AI applications are starting to have external voice landing. Can you share the business proposal for the company's P&L impact and subsequent planning? Thank you for the question. I am Shen Peng. I will answer this question. Let me first introduce the development process of our company in the field of AI. As early as early as 2021, before the big model came out,
We have actually done data security services, especially in the case of客服. But at that time, we could only build 1-2 minutes with the user-to-user conversation. In 2022, the appearance of Chen's GPP led to technological breakthroughs. We also saw that Qiong's biggest opportunity was to start integrating our long-term long-term storage data and storage volume data to train a data model in the insurance industry.
Based on this, we developed an AI-based business that is close to business level. At present, our AI-based business is already online in the domestic business environment. Every month, the contribution fee has exceeded one million yuan. This insurance business has achieved a new level of content. In addition, we have also made some attempts in terms of introduction based on biotechnology, as mentioned by Yalu just now. In the third quarter, we launched a business called the lowest-cost business, which optimized the traditional USB business.
In terms of cost, you must pay attention to some of the above-mentioned increases and decreases. In addition, we are also actively exploring to provide a large number of companies and companies that meet the needs of this kind of diversified service industry based on large-scale transformation, and we have also started cooperation with some potential customers to carry out an in-depth test training to polish the product. I hope we will have more clear progress in 2025.
From a large-scale industry perspective, the whole model of commercialization is still relatively short-term. Short-term income and contribution are still relatively limited. However, long-term, up to three to five years, there is still a lot of room for improvement. Okay, thank you. Okay, so far, no further questions have been received on the line. That's the end of this meeting. Thank you to all investors and analysts for attending. Thank you all.
We are now approaching the end of the conference call. Thank you for your participation in today's conference. You may now disconnect. Have a good day.