$元保(YB)$ 25Q1 earning call Q&A session (讯飞语音转文字, 无订正哈):

Operator: One moment for the first question, our first question comes from the line of Amy chen from city. Please go ahead.

Amy Chen: Hi, thank you for giving me this opportunity to the questions. And this is a reason for the research. My first question is regarding your first year premium growth, we noted that you looked quite robust total revenue growth. And we're just wondering how is the sales momentum in the first quarter and has this momentum continued into the second quarter? The second question I have is that we noted a new reporting that the consumer interest protection committee in Shanghai actually raised a few alerts or comments regarding some less appropriate solving behaviors of internet insurance products. And a few brokers for names in this new, including an insurance watercraft, et cetera. Has this impacted yourselves in the past few weeks? And what kind of measures would you take to ensure full compliance during sales partners? The third question is regarding your AI model efficiency that we notice that the percentage of marketing expenses out of total revenue actually decline year over year. But what I'm wondering if I do expect to see continued efficiency improvements or eventually there would be a feeling at some point. Thank you.

CFO: Thank you. I this is very one. I'll take the q&a question. The first question on FYP as mister fang mentioned, his remarks are cooperation of metrics from maintained double digit growth in the first quarter. First year premiums reached RMB 9 . 5 billion up 35 . 3 % year over year. Now we didn't give second quarter guidance, but we expect a double digit growth and five people to 4 years 2025. Next question regarding the issued risk alert. So we are fully aware of the recent risk alert issue by the Shanghai consumer interest protection committee. Now, we have not been named in this report and has had no direct impact on our business. Compliance has always been a Top priority for us. We built a full insurance sales management system that followed all regulatory requirements for covering every step of the sale process. Our goal is to make sure that consumers rights are fully respected and protected in response to the risk alert. We've established and improved our compliance management system and related mechanisms to achieve comprehensive coverage, benefit the control of the associated risks. Additionally, and lastly, we will continue to conduct dynamic monitor, evaluation, optimization, intimately upgrading our products and services to provide consumers with more reassuring it and convenient insurance experiences. Your third question regarding a model efficiency is whether there's gonna be a ceiling at some point. The short answer is no. Our angels composed of it, deeply integrated and highly scalable model architecture, networks of interconnected models and a suite of systems and tools. In addition to that, every aspect of our operations can be made more efficient leveraging AI we believe there's still considerable potential for optimization in our engine. We will continuously iterate the model, doing more models, extract more data insight, and further improve the accuracy of the model's predictions. As we mentioned, in the earnings relief. In the first quarter, we also made a lot of optimization systems and tools by applying lom we're developing agent applications based on open AI agent SDK released by open air open source, which enables us to quickly build and assemble Asian workflows and Complete business empowerment. And also with the recent release of open source ll MS. We follow up with adopting models such as dcr one, q one 3 series, q 12 . 5, vln and cognitive four. So internally, we've deployed multiple locally hosted on to build and build an internal alarm, API platform using light on them, enabling our r and d team to quickly access and develop with these elements. In the following quarters of this year, we will also conduct more exploration and implementation need that, but to enhance the efficiency of our operations as well as their engines. Excellent.

Operator: Thank you for the questions. One moment for the next question. Our next question comes from Thomas wang, from Goldman Sachs. Please go here. Byebye.

Thomas Wang: Thank you. Congrats on good results. Couple question. Firstly, maybe can you give some color on first quarter take rate and commission rate? And then secondly, we've seen some of the platform, like may 20 JD to provide social insurance for delivery personnel. I just want to check whether you see any impact from that on your business. Thank you.

CFO:Thank you, Thomas. So the premium propose in the first quarter increased, because we made some product adjustment. We've always been trying to join a customized insurance products with insurance carriers, making them more attractive to consumers. In the first quarter of this year, we promoted some products with lower deductibles and better production. The premiums of these products, as a result, increase marginally as they offer more value to consumers for the take rate quarterly fluctuations are not meaningful due to many factors. However, from the perspective of this year, our secret will remain relatively steady. I would also like to that is we always focus on optimize in rri starting growth and profitability. Take care is only one of the factors among many, such as price for policy cross selling, CAC et cetera, that we need to consider in tandem.

Now, with respect to our seat in our life, from our financial performance, it can be seen that we consistently maintain an roi for at least over one for at least 11 quarters. In the first quarter of 2025, the proportion of our sales and marketing expenses. The revenue was 50 . 8 %, a decrease of 12 . 8 percent compared with 63 . 6 % in the same period last year. This reflects the efficiency improvement of our engine and the company's strategic goal of continuously pursuing a better roi are your last question regarding main . GD providing social insurance fertility personnel. We don't see any impact from JD or made one providing social insurance to the delivery personnel. In fact, you think of it as a positive. What they're offering is government provide social insurance while we provide commercial insurance, the two are fundamentally different and complimentary. Our commercial health insurance serves as an upgrade primarily talking to those with social medical insurance. And for the office for those without social medical insurance coverage we offer. Our commercial health insurance will be different term and pricing. And providing social insurance for delivery personnel is beneficial to our overall business. Social insurance typically covers every day, lower cost medical needs like outpatient visit. Our product, by contrast, protect against major risks, serious illness or accident. Helping individuals and families avoid financial hardship from unexpected high cost events. What also sets us apart is our ability to provide tailor protection. For example, if the user, it is a delivery worker, frequently on the road or away from home, we may recommend adding coverage for traffic accidents or the town hospitalization for to better match their real world risk that needs. Overall, we see these developments as helping to raise the insurance awareness. And we remain focused on delivering flexible, high value protection that fills the gaps that social insurance doesn't cover.

Operator: Thank you for your questions. And that concludes the q and a sessions are likely to the conference back over the management for any additional closing compliments.