BEIJING, Sept. 25, 2025 -- On September 25th, Waterdrop Inc. released its 2024 Environmental, Social and Governance (ESG) Report (hereinafter "the Report"), which offers an in-depth overview of the Company's progress and initiatives in corporate governance, technology innovation, product responsibility, talent development, environmental protection, and sustainable ecosystem development. The Company maintained its ESG rating at A level, underscoring its ESG progress at the forefront of the industry.

The Report highlights that Waterdrop Inc. has sustained its focus on AI innovation, with more than 100 related patents to further improve user experience with its products. At the same time, the Company has strengthened its commitment to public welfare, with initiatives targeting vulnerable groups, rural revitalization, educational support, and disaster relief, aiming to drive positive social change.

Peng Shen, Founder and Chief Executive Officer (CEO) of Waterdrop Inc., emphasized: "As a company guided by mission and values, we define success not just in terms of short-term financial gains, but by our capacity to foster a harmonious integration of environmental, social, and governance priorities. At the same time, sustainability management remains at the heart of our corporate strategy and is deeply embedded in every aspect of our operations."

Digging into AI Innovation with Over 100 Related Patents

Waterdrop Inc., a pioneer in China's insurance technology sector, has been exploring the application of artificial intelligence to bridge gaps in insurance supply since 2019. Leveraging its leading R&D capabilities and focusing on business priorities such as user needs and operational efficiency, the Company developed the "Waterdrop Guardian" large language model (LLM) , which has obtained algorithm registration with the Cyberspace Administration of China in 2024 and obtained multiple patents related to LLM development. By the end of 2024, the Company had filled a total of 48 patent applications related to LLM, with more than 100 authorized patents in the field of artificial intelligence. The Report reveals that in 2024, Waterdrop Inc. strengthened its commitment to sci-tech innovation, investing RMB 217 million in R&D.

According to the Report, the "Waterdrop Guardian" LLM equips insurance brokers and users with professional, accurate, and accessible advice, driving greater empowerment and efficiency across the insurance value chain. The "Waterdrop Guardian AI Insurance Expert" can engage in natural conversations lasting up to 50 minutes, interpret over 7,000 insurance products, and respond to more than 10,000 health insurance queries—delivering comprehensive, high-quality, end-to-end insurance services to users.

At the same time, Waterdrop Inc. has broadened its focus to address the diverse protection needs of seniors, women, and individuals with pre-existing conditions. The Company has rolled out a range of inclusive products—including "Jiehaoyun" and "Disability Insurance"—aimed at enhancing innovation, accessibility, and inclusiveness in insurance products. In 2024, Waterdrop Inc. launched 174 inclusive insurance products in total, with claims under pre-existing medical condition policies amounting to RMB 38.128 million.

Strengthening Role in Multi-level Medical Protection System, with Cumulative Relief Funding Exceeding RMB 50 Million

On December 25, 2024, Waterdrop Medical Crowdfunding was officially designated by the Ministry of Civil Affairs as Online Personal Help-seeking Service Platforms, signaling a new phase of healthier and more standardized industry development. By the end of 2024, the platform had raised RMB 67.5 billion in donations from 470 million contributors, providing critical support to 3.4 million patients with severe illnesses. To enhance transparency, Waterdrop Medical Crowdfunding also introduced a public reporting mechanism that encourages citizens to participate in oversight, ensuring that aid reaches those most in need.

The Report further notes that since 2021, Waterdrop Inc. has collaborated with local Healthcare Security Bureau and Civil Affairs Authorities in regions such as Jinyun (Zhejiang), Hainan, and Guangzhou to strengthen the coordination of government and social assistance. By the end of 2024, "Jin Qing Bang" medical poverty-prevention application in Jinyun supported 632 patients and mobilized RMB 13.88 million in social contributions, while "Hai Hui Bang" multi-level medical assistance information platform in Hainan aided 1,929 patients with total relief exceeding RMB 39 million. By leveraging its internet-based platforms and technological strengths, Waterdrop is playing an increasingly important role in China's multi-level medical protection system—easing the financial burden of patients with severe illnesses and serving as a valuable complement to the national social assistance and healthcare systems.

Expanding Support to Vulnerable Groups, Providing Rural Medical Clinic Access to Over 500 Thousand Beneficiaries

As one of China's leading insurance technology and healthcare platforms, Waterdrop Inc. remains committed to its mission of "We at Waterdrop aspire to bring insurance and healthcare service to billions through technology," integrating social responsibility into the heart of its corporate strategy. Over the years, the Company has built a comprehensive service ecosystem spanning insurance coverage, critical illness fundraising, and pharmaceutical innovation. The Report highlights Waterdrop Inc.'s strong commitment to social welfare, with initiatives addressing the needs of vulnerable groups, rural revitalization, education, and disaster relief to help tackle pressing social issues. The year also saw the construction of 30 new rural medical clinics, increasing the total to 167 medical clinics nationwide, collectively serving more than 500 thousand beneficiaries.

Notably, the Report includes, for the first time, disclosure of Scope 1–3 greenhouse gas emissions, as well as data on energy use and waste management. Waterdrop Inc. reported operational greenhouse gas emissions of 402.22 tons of CO₂ equivalent in 2024—a 33.32% year-on-year reduction. This milestone reflects a significant step in the Company's efforts to combat climate change and enhance the precision of its environmental data management.

Professor Yi Guo, Vice Chairperson of the Committee on Social Responsibility and Sustainability of the Chinese Institute of Business Administration and Dean of the Faculty of Economics and Management at Beijing Technology and Business University, commended on the Report. He stated: "Waterdrop's ESG Report is comprehensive, with detailed data and well-illustrated presentation, aligning with the expectations of the Company's stakeholders. It effectively demonstrates the requirements of ESG disclosure in terms of reliability, relevance, verifiability, comprehensibility, timeliness, and consistency."

Dr. Jianzhong Lyu, former Board Member of Global Reporting Initiative (GRI) and Deputy Director of Sustainability Committee, China Management Science Society remarked: "Beyond the three pillars of ESG, the Report dedicates extensive discussion to Waterdrop's achievements in technological innovation and ecosystem development, underscoring the organic integration of its sustainable business strategy with its commitment to social responsibility."