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Waterdrop Inc. Announces Second Quarter 2021 Unaudited Financial Results BEIJING , September 8 , 2021 - 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 second quarter ended June 30 , 2021 . Financial and Operational Highlights for the Second Quarter of 2021 • • • We achieved outstanding business growth in the second quarter of 2021. The first - year premiums ( " FYP " ) generated through our Waterdrop Insurance Marketplace for the second quarter reached RMB5,357 million ( US $ 829.6 million ) , representing an increase of 94.1 % year over year . The number of insurance customers and FYP per customer both grew rapidly . A total of 4.2 million customers purchased insurance policies from Waterdrop during the second quarter of 2021 , an increase of 53.0 % year over year . The number of cumulative insurance customers reached 102.1 million and cumulative paying insurance customers reached 24.9 million as of June 30 , 2021. The FYP per customer increased to RMB1,267 , or 26.9 % year over year . We continued to expand and enrich our product offerings . As of June 30 , 2021 , we offered 275 insurance products on our platform . Over 90 % of our FYP was contributed by our exclusive customized insurance products . In terms of product mix , the FYP of critical illness insurance increased by 120 % in the second quarter of 2021 , continuing our strong performance seen in the first quarter after the changes in the regulatory definition of critical illness . Net operating revenue increased by 38.0 % to RMB939.4 million ( US $ 145.5 million ) year over year . Excluding the impact from the cessation of our mutual aid business in March 2021 , the adjusted net operating revenue ( ¹ ) increased by 44.4 % year over year . As of June 30 , 2021 , approximately 372 million people donated an aggregate of over RMB42.8 billion to nearly 2.1 million patients through our Waterdrop Medical Crowdfunding . Waterdrop Medical Crowdfunding charges zero service fees and we do not generate any revenues from medical crowdfunding business . Mr. Peng Shen , Founder , Chairman and Chief Executive Officer of Waterdrop , commented , " Waterdrop's listing on the NYSE in the second quarter of 2021 marked an important milestone since our inception . Recently , the capital markets have witnessed an increase in volatility and the insurance industry in China has entered a period of transformation , which have affected the overall investment sentiment . We believe our well - established business infrastructure , organizational capabilities , and competitive advantages will allow us to efficiently adapt to the new trends and challenges . To demonstrate our confidence in the long - term sustainable development and consistent commitment to generating shareholder value , we have decided to launch a share repurchase program and have obtained the Board approval . " Mr. Guang Yang , Co - founder , Director and General Manager of Insurance Marketplace , commented , " We strive to serve a broader range of users with better customer experience , to develop products and services tailored for different groups , and to contribute to new innovations on the supply side . During the second quarter , we have made some encouraging progress in offering new products that go beyond our existing portfolio , including but not limited to cancer insurance , outpatient medical insurance , and critical illness insurance for substandard groups . In terms of channel development , we have been evaluating the market window for appropriate opportunities to invest in external traffic and build vast customer base . To improve our efficiency in external traffic channels , we have also increased the use of technological applications and automatic service tools . We believe recent regulatory initiatives will benefit the long - term development of the industry . We will remain fully compliant with regulatory requirements and take the lead in upgrading and optimizing business model for online insurance . " Mr. Kangping Shi , Chief Financial Officer of Waterdrop , added , " Although the overall industry growth decelerated in the second quarter , we managed to achieve strong growth of 44.4 % year over year in adjusted net revenue on a comparable basis . This performance has demonstrated our proven success in customer acquisition , aptitude in customer service , as well as the strong demand from our targeted markets . In light of the latest regulatory trends and industry competition dynamics , we would gradually focus more on quality enhancement than volume growth . Going forward , we will further improve our cost structure and adjust our budget plan through more refined operational management and stricter cost controls . In the third quarter , we expect to materially reduce our sales and marketing expenses . " 1