BEIJING, March 23, 2022
/PRNewswire/ -- 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
fourth quarter and fiscal year ended December 31, 2021.
Financial and Operational Highlights for the Fourth
Quarter of and Fiscal Year 2021
- Business growth: The first-year premiums ("FYP") generated
through our Waterdrop Insurance Marketplace for 2021 reached
RMB16,363 million (US$2,568 million), representing an increase of
13.4% year over year.
- Effective cost control and business model upgrade: For the
fourth quarter of 2021, our sales and marketing expenses decreased
by 69.2%, and total operating costs and expenses decreased by
47.5%, leading to a decrease in net loss by 85.1% on a quarter over
quarter basis. Thus, we generated approximately RMB5.9 million (US$0.9
million) adjusted net profit compared to adjusted net losses
in previous quarters, our net loss margin narrowed from negative
61.2% to negative 11.8%, and adjusted net profit (/loss) margin
improved from negative 58.2% to positive 1.0% quarter over quarter.
The results have demonstrated our effective cost control and
commitment to achieving profitability.
- Positive cash flow: As of December 31,
2021, our cash and cash equivalents and short-term
investment balance increased to RMB2,787.1
million (US$437.4 million), by
RMB176.0 million from the end of the
third quarter of 2021, as we started to generate positive operating
cash flow, partially offset by the investing and financing cash
outflow.
- Further expanded product offerings: As of December 31, 2021, we offered 364 insurance
products on our platform. Over 90% of our FYP was contributed by
our exclusive customized insurance products. In 2021, the FYP of
critical illness insurance increased by 52.3% year over year,
keeping up with the pace of our product mix optimization since the
beginning of 2021.
- As of December 31, 2021,
approximately 394 million people donated an aggregate of over
RMB48.4 billion to nearly 2.4 million
patients through our Waterdrop Medical Crowdfunding.
Mr. Peng Shen, Founder, Chairman,
and Chief Executive Officer of Waterdrop, commented, "Since the
beginning of the third quarter, the capital market has continued to
be volatile and the growth of the insurance industry has slowed
down. Despite all the challenges, we uphold our commitment to
develop our business in a customer-centric manner and create
sustainable value for our shareholders. We proactively adjusted our
strategy and business model to pursue higher quality development
and continued to deliver encouraging results. For 2022, we will
strive to achieve non-GAAP operating profit for established
business. Meanwhile, we will continue to innovate through our
careful exploration and incubation initiatives in selected
promising areas, as well as staying focused on areas difficult but
valuable to our customers. Against the adverse market environment,
members of senior management also intend to use their personal
funds to purchase the Company's ADSs in due course, pursuant and
subject to applicable laws and the Company's securities trading
policy."
Mr. Guang Yang, Co-founder,
Director and General Manager of Insurance Marketplace, said, "For
our insurance business, the fourth quarter of 2021 was the first
full quarter for our business model upgrade, and we have made solid
progress. Through transformation of our growth model, effective
management of existing users, and enhancement in long-term
technological and innovation capabilities, our user quality and
various efficiency indicators have significantly improved, laying a
solid foundation for us to further realize the profitability of
our established businesses.
Meanwhile, we focused on strengthening the investment in
AI-empowered business. For example, our self-developed AI robot has
made significant progress in intention recognition and human voice
simulation. By continuously refining the service combination
process of 'outbound reach-out robot
+ customer service + online operation', our short-term
insurance renewal rate exceeded 78% in the fourth quarter."
Mr. Yao Hu, Co-founder, Director
and General Manager of Medical Crowdfunding and Healthcare,
commented, "We have been assisting
in the establishment of the poverty alleviation mechanism to
prevent the economically-vulnerable group from falling back into
poverty due to critical illnesses. As of the end of 2021, through
our medical crowdfunding platform, in aggregate, 394 million people have helped 2.4 million patients
out of a critical situation with large medical payment. We
have also actively explored various healthcare business initiatives
and made progress in patient recruitment for clinical trials. "
Mr. Kangping Shi, Chief Financial
Officer of Waterdrop, added, "As at the end of 2021, we have seen
two consecutive quarters in effective cost control and
profitability improvement. In the fourth quarter, our sales and
marketing expense further decreased by 69.2% from the previous
quarter, and we achieved an adjusted net profit of RMB5.9 million in the fourth quarter, compared to
an adjusted net loss of RMB453.6
million in the third quarter. We are delighted to see our
initiatives and efforts in cost control and refined operational
management delivering results, and we are moving faster toward a
more healthy and sustainable direction than expected. We believe we
are on the right track to achieve non-GAAP profit for our
established businesses for the full year of
2022."
Financial Results for the Fourth Quarter
of 2021
Operating revenue, net
Net operating revenue for the fourth quarter of 2021
decreased by 27.3% year over year to RMB603.9 million (US$94.8
million) from RMB830.3 million
for the same period of 2020, which was primarily due to the
decrease of insurance related income.
- 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 to
insurance companies, insurance brokerage, and agency companies,
including customer relationship maintenance, customer complaint
management, claim review, user referral services, etc. Our
insurance related income amounted to RMB582.2 million (US$91.4million) in the fourth quarter of 2021,
representing a decrease of 26.1% year over year from RMB788.1 million for the fourth quarter of 2020,
which was mainly due to the decrease in insurance brokerage
income.
- Net operating revenue from management fee income was nil for
the fourth quarter of 2021, compared to RMB18.3 million for the same quarter of 2020,
which was mainly due to the cessation of the mutual aid business at
the end of March 2021. Following this
adjustment, the corresponding management fee income from the mutual
aid business is no longer a revenue stream for the Company since
the second quarter of 2021 and onwards. Excluding such management
fee income, the adjusted net operating revenue(1) for
the fourth quarter of 2021 decreased by 25.6% compared with the
same period of 2020.
_____________
|
Note:
(1) See the sections entitled "Non-GAAP Financial Measures" for
more information.
|
Operating costs and expenses
Operating costs and expenses decreased by RMB425.3 million, or 38.6% year over year, to
RMB677.8 million (US$106.4 million) for the fourth quarter of 2021
from RMB1,103.1 million for the same
period of 2020.
Attributable to the effective cost control measures since the
third quarter, operating costs and expenses for the fourth quarter
of 2021 decreased by 47.5% compared to the third quarter of
2021.
- Operating costs decreased by 21.4% year over year to
RMB197.1 million (US$30.9 million) for the fourth quarter of 2021,
compared with RMB250.9 million for
the fourth quarter of 2020, which was mainly due to (i)
RMB65.7 million decrease in
professional and outsourced customer service fees; (ii)
RMB4.7 million decrease of payout
investigation cost due to the cessation of mutual aid business, and
partially offset by (iii) an increase of RMB19.4 million in personnel cost for our
expanded consultants and insurance agents team. On a
quarter-over-quarter basis, operating costs decreased by 33.5%,
primarily due to a decrease in personnel cost and professional and
outsourced customer service fees.
- Sales and marketing expenses decreased by 63.8% year over year
to RMB241.0 million (US$37.8 million) for the fourth quarter of 2021,
compared with RMB666.4 million for
the fourth quarter of 2020. The decrease was primarily due to
RMB485.0 million decrease in
marketing expenses to third-party traffic channels, and offset by
(i) an increase of RMB32.4 million in
payroll and related expenses for employees involved in sales and
marketing functions, and (ii) RMB28.9
million increase in outsourced sales and marketing service
fees to third parties. On a quarter-over-quarter basis, sales and
marketing expenses materially decreased by 69.2% from RMB781.7 million for the third quarter of 2021.
This was mainly due to the decrease of RMB467.2 million in marketing expenses to
third-party traffic channels and RMB50.8
million in outsourced sales and marketing service fees to
third parties under our cost control plan and more strict budgeting
for expenses.
- General and administrative expenses increased by 25.9% year
over year to RMB148.7 million
(US$23.3 million) for the fourth
quarter of 2021, compared with RMB118.1
million for the fourth quarter of 2020. The increase was
primarily due to (i) RMB10.5 million
increase in personnel cost; (ii) RMB39.0
million increase in impairment loss over prepayment, and
partially offset by a decrease of RMB26.6
million in share-based compensation expenses. On a
quarter-over-quarter basis, general and administrative expenses
increased by 33.5% from RMB111.4
million for the third quarter of 2021, which was mainly due
to the net impact of an increase of RMB39.0
million in impairment loss and a decrease of
RMB2.5 million in share-based
compensation expenses.
- Research and development expenses increased by 34.4% year over
year to RMB91.0 million (US$14.3 million) for the fourth quarter of 2021,
compared with RMB67.7 million for the
same period of 2020. The increase was primarily due to RMB12.7 million increases in research and
development personnel cost and share-based compensation expenses,
as our research and development team continued to expand to enhance
our competitive capabilities in technology. On a
quarter-over-quarter basis, research and development expenses
decreased by 11.6% compared to the third quarter of 2021, mainly
due to the optimization of our organizational structure.
Operating loss for the fourth quarter
of 2021 was RMB73.9
million (US$11.6 million),
compared with a loss of RMB272.8
million for the same period of 2020. Compared to the
third quarter of 2021, operating loss for the fourth quarter of
2021 significantly decreased by 85.6%.
Interest income for the fourth quarter of
2021 was RMB12.2 million (US$1.9 million), compared
with RMB8.8 million for the same period of 2020. The
increase was primarily due to the increase in our bank balance
and short-term investments as a result of the receipt of net
proceeds from the completion of our initial public offering in
May 2021. The Company does not
generate interest income from the medical crowdfunding
business.
Income tax expense for the fourth quarter of
2021 was RMB5.0 million
(US$0.8 million), compared with an
income tax benefit of RMB13.6 million
for the same period of 2020.
Net loss attributable to Waterdrop for
the fourth quarter of 2021 was RMB71.2 million (US$11.2 million), compared with a net loss of
RMB403.8 million for the same period
of 2020, and decreased by 85.1% compared with a net loss of
RMB477.0 million for the third
quarter of 2021.
Adjusted net profit attributable to
Waterdrop for the fourth quarter of
2021 was RMB5.9 million
(US$0.9 million), compared with an
adjusted net loss of RMB191.4 million
for the same period of 2020, and an adjusted net loss of
RMB453.6 million for the third
quarter of 2021.
Cash and cash equivalents and short-term
investment
As of December 31, 2021, the
Company had combined cash and cash equivalents and short-term
investment of RMB2,787.1 million
(US$437.4 million), as compared with
RMB2,255.1 million as of
December 31, 2020.
Financial Results for the Fiscal Year
of 2021
Operating revenue, net
Net operating revenue for the year of 2021 increased by
5.9% year over year to RMB3,205.9
million (US$503.1 million)
from RMB3,027.9 million for the year
of 2020, which was primarily due to the increase of
insurance related income.
- 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 to
insurance companies, insurance brokerage and agency companies,
including customer relationship maintenance, customer complaint
management, claim review, and user referral services, etc. Our
insurance related income amounted to RMB3,071.0 million (US$481.9million) in 2021, representing an
increase of 6.3% year over year from RMB2,889.5 million for the year of 2020, which
was mainly due to the increase in insurance brokerage income.
- Net operating revenue from management fee income was
RMB2.7 million for the year of 2021,
compared to RMB109.8 million for the
year of 2020, which was mainly due to the cessation of the mutual
aid business at the end of March
2021. Excluding such management fee income, the adjusted net
operating revenue(1) for the year of 2021 increased by
9.8% compared with the year of 2020.
_____________
|
Note:
(1) See the sections entitled "Non-GAAP Financial Measures" for
more information.
|
Operating costs and expenses
Operating costs and expenses increased by RMB1,544.6 million, or 43.8% year over year, to
RMB5,068.8 million (US$795.4 million) for the year of 2021 from
RMB3,524.2 million for the year of
2020.
- Operating costs increased by 42.1% year over year to
RMB1,054.5 million (US$165.5 million) for the year of 2021, compared
with RMB742.3 million for the year of
2020, which was mainly due to (i) the cost of RMB76.8 million that incurred in relation to the
cessation of the Waterdrop Mutual Aid business; (ii) RMB73.2 million increase in professional and
outsourced customer service fees; and (iii) an increase of
RMB148.5 million in personnel cost
for our expanded consultants and insurance agents team.
- Sales and marketing expenses increased by 45.7% year over year
to RMB3,104.8 million (US$487.2 million) for the year of 2021, compared
with RMB2,130.5 million for the year
of 2020. The increase was primarily due to (i) RMB489.9 million increase in marketing expenses
to third-party traffic channels; (ii) RMB78.8 million increase in payroll and related
expenses for employees involved in sales and marketing functions,
and (iii) RMB413.2 million increase
in outsourced sales and marketing service fees to third
parties.
- General and administrative expenses increased by 30.3% year
over year to RMB530.5 million
(US$83.3 million) for the year of
2021, compared with RMB407.2 million
for the year of 2020. The increase was primarily due to (i)
RMB79.0 million increase in
professional service fees and personnel cost; and (ii) RMB39.0 million increase in impairment loss.
- Research and development expenses increased by 55.2% year over
year to RMB379.0 million
(US$59.5 million) for the year of
2021, compared with RMB244.2 million
for the year of 2020. The increase was primarily due to
RMB124.5 million increases in
research and development personnel cost and share-based
compensation expenses, as our research and development team
continued to expand to enhance our competitive capabilities in
technology.
Operating loss for the year of
2021 was RMB1,862.8
million (US$292.3 million),
compared with a loss of RMB496.2
million for the year of 2020.
Interest income for the year of 2021 was
RMB48.7 million (US$7.6 million), compared
with RMB26.5 million for the year of 2020. The
increase was primarily due to the increase in our bank balance
and short-term investments as a result of the receipt of net
proceeds from the completion of our initial public offering in
May 2021. The Company does not
generate interest income from the medical crowdfunding
business.
Income tax benefit for the year of 2021 was
RMB221.0 million (US$34.7 million), compared with income tax
expense of RMB50.2 million
for the year of 2020.
Net loss attributable to Waterdrop for
the year of 2021 was RMB1,574.1
million (US$247.0 million),
compared with net loss of RMB663.9
million for the year of 2020.
Adjusted net loss attributable to
Waterdrop for the year of 2021 was
RMB1,220.9 million (US$191.6 million), compared with adjusted net
loss of RMB284.0 million for the year
of 2020.
Share Repurchase Plan
Pursuant to the 12-month share repurchase program announced
on September 8, 2021, since the announcement up to the end of
the fourth quarter, we cumulatively repurchased approximately 1,361
thousand ADSs from the open market with cash for a total
consideration of approximately US$2.6 million.
Business Outlook
The Company expects to achieve non-GAAP profit for established
business, i.e., existing business as of our IPO date, for the year
of 2022. This forecast is based on the current market conditions
and reflects the Company's preliminary view and estimates, which
are all subject to changes.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD" or "US$") at specified rates solely for
the convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of
RMB6.3726 to US$1.00, the noon buying rate in effect on
December 30, 2021 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or 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 Measures
The Company uses non-GAAP financial measures, such as
adjusted net operating revenue and adjusted net profit/loss, in
evaluating the Company's operating results and for financial and
operational decision-making purposes. Adjusted net operating
revenue represents net operating revenue excluding management fee
income from mutual aid business. Adjusted net profit/loss
represents net loss excluding share-based compensation expense,
impact of terminating the mutual aid plan, foreign currency
exchange gain or losses, impairment loss and share of results of
equity method investee. Such adjustments have no impact on income
tax.
These non-GAAP financial measures should not be considered in
isolation or construed as an alternative to net loss or any other
measure of performance or as an indicator of our operating
performance. Investors are encouraged to review the Company's
historical non-GAAP financial measures to the most directly
comparable GAAP measures. Adjusted net operating revenue and
adjusted net profit/loss presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to our data. The
Company encourages investors and others to review its financial
information in its entirety and not rely on a single financial
measure.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.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 the SEC, 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 third
parties. 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 and online
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 and online
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
March 23, 2022 at 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:
United
States:
|
1-323-794-2551
|
Hong Kong:
|
852-3008-1527
|
Mainland
China:
|
400-120-9101
|
Elite Entry
Number:
|
1077796 #
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the Elite Entry Number to join the call.
A telephone replay will be accessible through 11:00 AM U.S. Eastern Time, March 30, 2022 by dialing the following
numbers:
United
States:
|
1-719-457-0820
|
International:
|
1-888-203-1112
|
Hong Kong:
|
852-5808-3200
|
Mainland
China:
|
400-120-1651
|
Access
Code:
|
1077796 #
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://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.
Xiaojiao Cui
IR@shuidi-inc.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-1380-111-0739
E-mail: Eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
WATERDROP
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, unless otherwise noted)
|
|
|
As
of
|
|
December 31,
2020
|
|
December 31,
2021
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
1,061,962
|
|
817,719
|
|
128,318
|
Restricted
cash
|
261,387
|
|
667,664
|
|
104,771
|
Short-term
investments
|
1,193,160
|
|
1,969,362
|
|
309,036
|
Accounts
receivable
|
539,791
|
|
643,843
|
|
101,033
|
Current contract
assets
|
824,544
|
|
563,611
|
|
88,443
|
Amount due from
related parties
|
813
|
|
1049
|
|
165
|
Prepaid expense
and other assets
|
651,080
|
|
369,794
|
|
58,027
|
Total current
assets
|
4,532,737
|
|
5,033,042
|
|
789,793
|
Non-current
assets
|
|
|
|
|
|
Non-current
contract assets
|
24,006
|
|
29,889
|
|
4,690
|
Property,
equipment and software, net
|
28,724
|
|
44,762
|
|
7,024
|
Intangible
assets, net
|
53,034
|
|
56,753
|
|
8,906
|
Long-term
investments
|
2,741
|
|
11,812
|
|
1,854
|
Right of use
assets, net
|
60,694
|
|
59,081
|
|
9,271
|
Deferred tax
assets
|
-
|
|
11840
|
|
1858
|
Goodwill
|
3,119
|
|
3,420
|
|
537
|
Total non-current
assets
|
172,318
|
|
217,557
|
|
34,140
|
Total
assets
|
4,705,055
|
|
5,250,599
|
|
823,933
|
|
|
|
|
|
|
Liabilities,
Mezzanine Equity and Shareholders'
(Deficit)/Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Amount due to
related parties
|
9,789
|
|
20,449
|
|
3,209
|
Insurance
premium payables
|
607,326
|
|
685,028
|
|
107,496
|
Deferred
revenue
|
22,017
|
|
803
|
|
126
|
Accrued expenses
and other current liabilities
|
595,606
|
|
498,752
|
|
78,265
|
Current lease
liabilities
|
36,551
|
|
44,113
|
|
6,922
|
Total current
liabilities
|
1,271,289
|
|
1,249,145
|
|
196,018
|
Non-current
liabilities
|
|
|
|
|
|
Non-current
lease liabilities
|
27,709
|
|
14,477
|
|
2,272
|
Deferred tax
liabilities
|
225,745
|
|
13,551
|
|
2,126
|
Total non-current
liabilities
|
253,454
|
|
28,028
|
|
4,398
|
Total
liabilities
|
1,524,743
|
|
1,277,173
|
|
200,416
|
|
|
|
|
|
|
Total mezzanine
equity
|
4,837,336
|
|
-
|
|
-
|
Shareholders'
(deficit)/equity
|
|
|
|
|
|
Ordinary
shares
|
41
|
|
-
|
|
-
|
Class A ordinary
shares
|
-
|
|
107
|
|
17
|
Class B ordinary
shares
|
-
|
|
27
|
|
4
|
Additional
paid-in capital
|
-
|
|
7,329,420
|
|
1,150,146
|
Accumulated
other comprehensive income/(loss)
|
14,956
|
|
(21,492)
|
|
(3,373)
|
Accumulated
deficit
|
(1,672,021)
|
|
(3,334,636)
|
|
(523,277)
|
Total
shareholders' (deficit)/equity
|
(1,657,024)
|
|
3,973,426
|
|
623,517
|
Total liabilities,
mezzanine equity and shareholders' (deficit)/equity
|
4,705,055
|
|
5,250,599
|
|
823,933
|
WATERDROP
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(All amounts in
thousands, except for share and per share data, or otherwise
noted)
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
December 31,
2020
|
|
September 30,
2021
|
|
December 31,
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue,
net
|
|
830,343
|
|
779,305
|
|
603,888
|
|
94,763
|
|
3,027,948
|
|
3,205,914
|
|
503,078
|
Operating costs
and expenses(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
(250,875)
|
|
(296,317)
|
|
(197,133)
|
|
(30,934)
|
|
(742,258)
|
|
(1,054,475)
|
|
(165,470)
|
Sales and
marketing expenses
|
|
(666,425)
|
|
(781,671)
|
|
(241,010)
|
|
(37,820)
|
|
(2,130,535)
|
|
(3,104,769)
|
|
(487,206)
|
General and
administrative expenses
|
|
(118,109)
|
|
(111,419)
|
|
(148,715)
|
|
(23,337)
|
|
(407,171)
|
|
(530,522)
|
|
(83,250)
|
Research and
development expenses
|
|
(67,684)
|
|
(102,889)
|
|
(90,967)
|
|
(14,275)
|
|
(244,230)
|
|
(378,990)
|
|
(59,472)
|
Total operating
costs and expenses
|
|
(1,103,093)
|
|
(1,292,296)
|
|
(677,825)
|
|
(106,366)
|
|
(3,524,194)
|
|
(5,068,756)
|
|
(795,398)
|
Operating
loss
|
|
(272,750)
|
|
(512,991)
|
|
(73,937)
|
|
(11,603)
|
|
(496,246)
|
|
(1,862,842)
|
|
(292,320)
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
8,833
|
|
11,928
|
|
12,192
|
|
1,913
|
|
26,515
|
|
48,662
|
|
7,636
|
Fair value
change of warrant
|
|
(150,244)
|
|
-
|
|
-
|
|
-
|
|
(150,685)
|
|
-
|
|
-
|
Foreign
currency exchange (loss)/gain
|
|
(2,307)
|
|
12,708
|
|
(5,616)
|
|
(881)
|
|
(1,335)
|
|
9,349
|
|
1,467
|
Others,
net
|
|
(901)
|
|
3,133
|
|
1,198
|
|
188
|
|
8,052
|
|
9,764
|
|
1,532
|
Loss before income
tax, and share of loss in equity method
investee
|
|
(417,369)
|
|
(485,222)
|
|
(66,163)
|
|
(10,383)
|
|
(613,699)
|
|
(1,795,067)
|
|
(281,685)
|
Income tax
benefit/(expense)
|
|
13,571
|
|
8,247
|
|
(5,034)
|
|
(790)
|
|
(50,155)
|
|
220,987
|
|
34,678
|
Share of loss
in equity method investee
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
-
|
|
-
|
Net loss
attributable to Waterdrop Inc.
|
|
(403,798)
|
|
(476,975)
|
|
(71,197)
|
|
(11,173)
|
|
(663,869)
|
|
(1,574,080)
|
|
(247,007)
|
Deemed dividend
on modification on preferred shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67,975)
|
|
-
|
|
-
|
Deemed dividend
upon issuance of warrants
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(90,268)
|
|
-
|
|
-
|
Preferred
shares redemption value accretion
|
|
(90,657)
|
|
-
|
|
-
|
|
-
|
|
(285,668)
|
|
(152,287)
|
|
(23,897)
|
Net loss
attributable to ordinary shareholders
|
|
(494,455)
|
|
(476,975)
|
|
(71,197)
|
|
(11,173)
|
|
(1,107,780)
|
|
(1,726,367)
|
|
(270,904)
|
Net
loss
|
|
(403,798)
|
|
(476,975)
|
|
(71,197)
|
|
(11,173)
|
|
(663,869)
|
|
(1,574,080)
|
|
(247,007)
|
Other
comprehensive (loss)/income :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment, net of tax
|
|
(767)
|
|
(14,140)
|
|
(10,465)
|
|
(1,642)
|
|
(14,008)
|
|
(36,640)
|
|
(5,750)
|
Unrealized
gains/(loss) on available for sale investments, net of
tax
|
1,491
|
|
(181)
|
|
154
|
|
24
|
|
1,724
|
|
192
|
|
30
|
Comprehensive
loss
|
|
(403,074)
|
|
(491,296)
|
|
(81,508)
|
|
(12,791)
|
|
(676,153)
|
|
(1,610,528)
|
|
(252,727)
|
Weighted average
number of ordinary shares
used in computing net loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
1,182,300,611
|
|
3,940,716,014
|
|
3,935,102,446
|
|
3,935,102,446
|
|
1,174,583,516
|
|
2,990,507,749
|
|
2,990,507,749
|
Net loss per share
attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(0.42)
|
|
(0.12)
|
|
(0.02)
|
|
(0.00)
|
|
(0.94)
|
|
(0.58)
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Share-based compensation expenses are
included in the operating costs and expenses as
follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
December 31,
2020
|
|
September 30,
2021
|
|
December 31,
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(2,114)
|
|
(2,363)
|
|
(1,876)
|
|
(294)
|
|
(4,538)
|
|
(10,853)
|
|
(1,703)
|
General and
administrative expenses
|
|
(52,504)
|
|
(28,412)
|
|
(25,880)
|
|
(4,061)
|
|
(210,011)
|
|
(190,252)
|
|
(29,855)
|
Research and
development expenses
|
|
(5,184)
|
|
(5,265)
|
|
(4,018)
|
|
(631)
|
|
(13,279)
|
|
(25,056)
|
|
(3,932)
|
Total
|
|
(59,802)
|
|
(36,040)
|
|
(31,774)
|
|
(4,986)
|
|
(227,828)
|
|
(226,161)
|
|
(35,490)
|
WATERDROP
INC.
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
(All amounts in
thousands, unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
December 31,
2020
|
|
September 30,
2021
|
|
December 31,
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
|
830,343
|
|
779,305
|
|
603,888
|
|
94,763
|
|
3,027,948
|
|
3,205,914
|
|
503,078
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
18,333
|
|
-
|
|
-
|
|
-
|
|
109,828
|
|
2,745(ii)
|
|
431
|
Adjusted net
operating revenue
|
|
812,010
|
|
779,305
|
|
603,888
|
|
94,763
|
|
2,918,120
|
|
3,203,169
|
|
502,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
December 31,
2020
|
|
September 30,
2021
|
|
December 31,
2021
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(403,798)
|
|
(476,975)
|
|
(71,197)
|
|
(11,173)
|
|
(663,869)
|
|
(1,574,080)
|
|
(247,007)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
59,802
|
|
36,040
|
|
31,774
|
|
4,986
|
|
227,828
|
|
226,161
|
|
35,490
|
Foreign
currency exchange loss/(gain)
|
|
2,307
|
|
(12,708)
|
|
5,616
|
|
881
|
|
1,335
|
|
(9,349)
|
|
(1,467)
|
Fair value
change of warrant
|
|
150,244
|
|
-
|
|
-
|
|
-
|
|
150,685
|
|
-
|
|
-
|
Impact of
terminating the mutual aid plan (iii)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
96,697
|
|
15,174
|
Impairment
loss
|
|
-
|
|
-
|
|
39,717
|
|
6,232
|
|
-
|
|
39,717
|
|
6,232
|
Share of
results of equity method investee
|
-
|
|
-
|
|
-
|
|
-
|
|
15
|
|
-
|
|
-
|
Adjusted net
(loss)/profit
|
|
(191,445)
|
|
(453,643)
|
|
5,910
|
|
926
|
|
(284,006)
|
|
(1,220,854)
|
|
(191,578)
|
(ii) This represents the net management fee
revenue related to the mutual aid business for the twelve months
ended December 31, 2021 after recording the RMB19.9 million
reduction of management fee revenue previously recognized for each
participant to the extent of the cumulative amount earned until
March 26, 2021.
|
(iii) This
represents the estimated cost of medical expenses and cost of
one-year health insurance coverage. RMB19.9 million (US$3.1
million) was accounted for as a reduction of management fee revenue
previously recognized for each participant to the extent of the
cumulative amount earned until March 26, 2021. RMB76.8 million
(US$12.1 million) was recorded as operating costs.
|
View original
content:https://www.prnewswire.com/news-releases/waterdrop-inc-announces-fourth-quarter-and-fiscal-year-2021-unaudited-financial-results-301508740.html
SOURCE Waterdrop Inc.