Yuanbao Inc. Announces Second Quarter 2025 Unaudited Financial Results

BEIJING, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Yuanbao Inc. (“Yuanbao” or the “Company”) (NASDAQ: YB), a leading technology-driven online insurance distributor in China, today announced its unaudited financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial and Operational Highlights Total revenues in the second quarter of 2025 were RMB1,069.9 million (US$149.4 million), representing a 25.2% year-over-year increase from RMB854.5 million in the same period of 2024.Net income in the second quarter of 2025 was RMB304.7 million (US$42.5 million), representing a 55.6% year-over-year increase from RMB195.9 million in the same period of 2024.Net income margin in the second quarter of 2025 was 28.5%, compared with 22.9% in the same period of 2024.Net operating cash inflow in the second quarter of 2025 was RMB453.2 million (US$63.3 million).Number of new policies1 in the second quarter of 2025 was 7.9 million, representing a 49.9% year-over-year increase from 5.3 million in the same period of 2024. Recent Developments Leveraging the latest large language model (“LLM”) capabilities: YB Agents. The Company has deployed a series of Agents to streamline manual tasks across key R&D and testing processes, significantly enhancing coding efficiency, test coverage, issue detection speed, and overall system stability. The Company is also building an internal Agent development platform that will enable diverse business units to rapidly and cost-effectively develop highly customized Agent applications, addressing specific business pain points.Retrieval-Augmented Generation (RAG) Enhancements. The Company’s proprietary RAG system now leverages GraphRAG technology to lower misidentification and conflation of clauses across multiple insurance plans, addressing a common industry pain point. In addition, the Company has scaled the deployment of its RAG-based, enterprise-level knowledge management platform, improving knowledge accessibility and advancing operations across business functions.Multi-Modal Applications. The Company has developed an over 80-million-parameter speech emotion recognition model that deeply analyzes the acoustic features and temporal patterns of voice signals to provide a granular understanding of user emotional states. The Company has also scaled the application of its self-developed smart voice engine, elevating user satisfaction. Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao, commented, “In the second quarter of 2025, we continue to deliver strong operational and financial performance, reinforcing our leadership in China’s online insurance distributor market. Notably, the number of new policies grew to 7.9 million, underscoring our ongoing success in penetrating underserved markets and serving evolving consumer needs at scale. We also continued to make meaningful strides in technology, advancing our construction of the full consumer service engine. As of the end of June, we had developed over 4,800 models capable of analysis across more than 5,300 labels, an increase of 400 models and 1,000 labels from a year ago. Furthermore, by embedding advanced technologies throughout our value chain, from internal R&D and proprietary knowledge systems to customer service and operational support, we have materially enhanced operational efficiency, user satisfaction, and system stability. Looking ahead, we will deepen our investment in technological innovation and broaden our reach in underserved markets, working closely with our partnered insurance carriers to expand access to high-quality, affordable insurance offerings.” Mr. Ray Wan, Chief Financial Officer of Yuanbao, added, “Outstanding execution drove our robust financial results in the second quarter, highlighted by double-digit growth across both top and bottom lines. Total net revenues rose by 25.2% year over year and 10.3% quarter over quarter, reaching RMB1,069.9 million, while net income surged by 55.6% year over year to RMB304.7 million. Our net income margin expanded by 5.6 percentage points year over year to 28.5%, reflecting our continued gains in operational leverage. We see substantial untapped growth potential in user scale and penetration within the online insurance industry. We will further expand our R&D investments to boost our long-term competitiveness and leverage our strong cash reserves to deliver long-term value to our stakeholders.” ____________________________________1 The number of new policies for a given period represents the total number of both short-term and long-term insurance policies purchased by the Company’s insurance consumers during that period. Second Quarter and First Half 2025 Financial Results Total Revenues. Total revenues in the second quarter of 2025 were RMB1,069.9 million (US$149.4 million), representing a 25.2% year-over-year increase from RMB854.5 million in the same period of 2024. This growth was primarily driven by significant increases in revenues from both insurance distribution services and system services. Total revenues in the first half of 2025 were RMB2,040.0 million (US$284.8 million), representing a 33.4% year-over-year increase. Insurance Distribution Services. Revenues from insurance distribution services in the second quarter of 2025 were RMB350.6 million (US$48.9 million), representing a 29.6% year-over-year increase from RMB270.6 million in the same period of 2024. This growth was mainly due to an increase in the number of policies purchased by insurance consumers on Yuanbao’s platform, partly driven by the Company’s enhanced targeted marketing efforts. Revenues from insurance distribution services in the first half of 2025 were RMB672.4 million (US$93.9 million), representing a 36.5% year-over-year increase. System Services. Revenues from system services in the second quarter of 2025 were RMB718.2 million (US$100.3 million), representing a 23.8% year-over-year increase from RMB579.9 million in the same period of 2024. This growth was primarily driven by the Company’s enhanced ability to provide partnered insurance carriers with more effective marketing services and accurate analytics services, enabled by the Company’s continuously improving full consumer service cycle engine. Additionally, the increase was attributable to an expanded provision of system services to both existing and newly acquired partnered insurance carriers. Revenues from system services in the first half of 2025 were RMB1,365.1 million (US$190.6 million), representing a 32.3% year-over-year increase. Others. Revenues from other services in the second quarter of 2025 were RMB1.1 million (US$0.2 million), representing a 71.7% year-over-year decrease from RMB4.0 million in the same period of 2024. Revenues from other services in the first half of 2025 were RMB2.4 million (US$0.3 million), representing a 51.7% year-over-year decrease. Total Operating Costs and Expenses. Total operating costs and expenses in the second quarter of 2025 were RMB772.2 million (US$107.8 million), representing a 16.0% year-over-year increase from RMB665.5 million in the same period of 2024. Total operating costs and expenses in the first half of 2025 were RMB1,452.8 million (US$202.8 million), representing a 19.7% year-over-year increase. Operations and Support Expenses. Operations and support expenses in the second quarter of 2025 were RMB40.9 million (US$5.7 million), remaining stable compared with RMB40.8 million in the same period of 2024. Operations and support expenses in the first half of 2025 were RMB85.7 million (US$12.0 million), representing an 8.3% year-over-year increase. Selling and Marketing Expenses. Selling and marketing expenses in the second quarter of 2025 were RMB602.1 million (US$84.0 million), representing a 14.1% year-over-year increase from RMB527.5 million in the same period of 2024. This increase was primarily due to enhanced marketing efforts to attract new consumers and retain existing consumers. Selling and marketing expenses in the first half of 2025 were RMB1,095.2 million (US$152.9 million), representing a 14.5% year-over-year increase. General and Administrative Expenses. General and administrative expenses in the second quarter of 2025 were RMB47.5 million (US$6.6 million), representing a 6.3% year-over-year increase from RMB44.7 million in the same period of 2024. This increase was primarily due to higher personnel costs, including salary, bonus, and benefits. General and administrative expenses in the first half of 2025 were RMB114.1 million (US$15.9 million), representing a 28.4% year-over-year increase. Research and Development Expenses. Research and development expenses in the second quarter of 2025 were RMB81.7 million (US$11.4 million), representing a 55.4% year-over-year increase from RMB52.6 million in the same period of 2024. This increase was primarily due to intensified research and development efforts and an expansion in R&D personnel, aimed at reinforcing the Company’s leadership position as a technology-driven online insurance distributor. Research and development expenses in the first half of 2025 were RMB157.8 million (US$22.0 million), representing a 75.8% year-over-year increase. Investment Income. Investment income in the second quarter of 2025 was RMB10.0 million (US$1.4 million), compared with RMB0.5 million in the same period of 2024. This growth was primarily due to higher investment income from short-term investments. Investment income in the first half of 2025 was RMB16.9 million (US$2.4 million). Net Income and Net Income Margin. Net income in the second quarter of 2025 was RMB304.7 million (US$42.5 million), representing a 55.6% year-over-year increase from RMB195.9 million in the same period of 2024. Net income margin in the second quarter of 2025 was 28.5%, compared with 22.9% in the same period of 2024. Net income in the first half of 2025 was RMB599.8 million (US$83.7 million), representing an 82.5% year-over-year increase. Net income margin in the first half of 2025 was 29.4%. Non-GAAP Adjusted Net Income2 and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in the second quarter of 2025 was RMB325.2 million (US$45.4 million), representing a 57.8% year-over-year increase from RMB206.1 million in the same period of 2024. Non-GAAP adjusted net income margin in the second quarter of 2025 was 30.4%, compared with 24.1% in the same period of 2024. Non-GAAP adjusted net income in the first half of 2025 was RMB637.4 million (US$89.0 million), representing a 77.2% year-over-year increase. Non-GAAP adjusted net income margin in the first half of 2025 was 31.2%. Basic and Diluted Net Income per ADS.3 Basic net income per ADS in the second quarter of 2025 was RMB27.33 (US$3.82), compared with RMB6.01 in the same period of 2024. Diluted net income per ADS in the second quarter of 2025 was RMB6.48 (US$0.90), compared with RMB4.33 in the same period of 2024. Basic net income per ADS in the first half of 2025 was RMB48.32 (US$6.75). Diluted net income per ADS in the first half of 2025 was RMB12.95 (US$1.81). Cash Position and Cash Flow As of June 30, 2025, the Company had cash and cash equivalents, time deposits, restricted cash and short-term investments of RMB3.42 billion (US$477.2 million), representing a 99.1% year-over-year increase and a 23.6% increase quarter over quarter. In the second quarter of 2025, net cash provided by operating activities was RMB453.2 million (US$63.3 million). In the first half of 2025, net cash provided by operating activities was RMB878.4 million (US$122.6 million). ____________________________________2 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. See “Use of Non-GAAP Financial Measure” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.3 Each ADS represents six of the Company’s Class A ordinary shares, par value US$0.0001 per share. Exchange Rate This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all. Conference Call The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on August 27, 2025 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the second quarter of 2025. Participant Online Registration:https://register-conf.media-server.com/register/BI7612f863c56346c48bcd9e1f5c34e928 Participants should complete online registration using the link provided above at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at ir.yb-inc.com. About Yuanbao Inc. Yuanbao Inc. is a leading technology-driven online insurance distributor in China, committed to protecting health and well-being through innovative technology. Leveraging its proprietary consumer service cycle engine and advanced technologies, Yuanbao delivers customized insurance solutions from its partnered insurance carriers to over ten million insurance consumers throughout the entire insurance lifecycle, ranging from personalized recommendations to post-sales services. Through deep collaboration with insurance carriers and the use of data-driven insights, Yuanbao empowers carriers to tailor flagship products, enhances consumer engagement, and drives scalable and efficient distribution. For more information, please visit: ir.yb-inc.com. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company uses non-GAAP financial measures, including adjusted net income and adjusted net income margin, in evaluating the Company’s operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expense, and adjusted net income margin represents adjusted net income as a percentage of revenue. Such adjustments have no impact on income tax. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as an analytical tool and when assessing the Company’s operating performance, investors should not consider it in isolation. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted net income 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 a comparative measure to the Company’s data. For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release. 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. Yuanbao 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 Yuanbao’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: Yuanbao’s mission, goals and strategies; Yuanbao’s future business development, financial condition and results of operations; the expected growth of the insurance industry in China; Yuanbao’s expectations regarding demand for and market acceptance of its products and services; Yuanbao’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 industry. Further information regarding these and other risks is included in Yuanbao’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yuanbao does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: Yuanbao Inc.E-mail: ir@yb-inc.com Piacente Financial CommunicationsHui FanTel: +86-10-6508-0677E-mail: yb@thepiacentegroup.com In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050E-mail: yb@thepiacentegroup.com YUANBAO INC.UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except for share and per share data) As of December 31, 2024 As of June 30, 2025 RMB RMBUSDASSETS Current assets: Cash and cash equivalents 1,904,674 1,319,407184,182 Time deposits 80,000 449,88562,802 Restricted cash 15,000 15,0002,094 Short-term investments 336,217 1,634,412228,155 Accounts receivable, net 260,958 349,32648,764 Prepayments and other current assets, net 75,964 26,4973,699 Amount due from related parties - 4,300600 Total current assets 2,672,813 3,798,827530,296 Non-current assets: Property and equipment, net 4,896 6,278876 Intangible assets, net 58,049 58,0028,097 Right-of-use assets 19,335 15,8192,208 Deferred tax assets, net 6,936 8,4931,186 Other non-current assets, net 17,611 17,6032,457 Total non-current assets 106,827 106,19514,824 TOTAL ASSETS 2,779,640 3,905,022545,120 LIABILITIES Current liabilities: Accounts payable 10,676 18,7372,616 Contract liabilities 117,649 93,28113,022 Salary and welfare payable 160,690 120,47316,817 Taxes payable 51,359 33,5654,685 Current lease liabilities 13,447 13,6121,900 Accrued expenses and other current liabilities 586,990 956,960133,586 Total current liabilities 940,811 1,236,628172,626 Non-current liabilities: Non-current lease liabilities 5,714 1,506210 Deferred tax liabilities, net 46,030 58,7338,199 Total non-current liabilities 51,744 60,2398,409 TOTAL LIABILITIES 992,555 1,296,867181,035 TOTAL MEZZANINE EQUITY 3,420,882 - - SHAREHOLDERS' DEFICIT: Ordinary shares 71 - - Class A ordinary shares - 134 19 Class B ordinary shares - 55 8 Additional paid-in capital 198,664 3,141,956 438,600 Statutory reserves 80,975 80,975 11,304 Accumulated deficit (1,932,128) (631,540)(88,160)Accumulated other comprehensive income 18,621 16,575 2,314 TOTAL SHAREHOLDERS' (DEFICIT)/EQUITY (1,633,797) 2,608,155 364,085 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' (DEFICIT)/EQUITY 2,779,640 3,905,022 545,120 YUANBAO INC.UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(All amounts in thousands, except for share, per share data, ADS and per ADS data) For the three months ended, For the six months ended, June 30, 2024 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMBUSD RMB RMBUSDRevenues 854,456 1,069,926 149,356 1,528,992 2,039,982 284,771 Operating costs and expenses*: Operations and support (40,791) (40,900)(5,709) (79,123) (85,656)(11,957)Selling and marketing expenses (527,488) (602,075)(84,046) (956,355) (1,095,225)(152,888)General and administrative expenses (44,689) (47,496)(6,630) (88,900) (114,136)(15,933)Research and development expenses (52,576) (81,723)(11,408) (89,788) (157,821)(22,031)Total operating costs and expenses (665,544) (772,194)(107,793) (1,214,166) (1,452,838)(202,809)Other income: Interest income 6,314 5,941 829 12,331 11,169 1,559 Exchange gains/(loss) 96 (1,730)(241) 130 (1,868)(261)Investment income 524 10,048 1,403 666 16,927 2,363 Others, net 11 3,818 533 802 4,257 594 Income before income taxes 195,857 315,809 44,087 328,755 617,629 86,217 Income tax expenses - (11,118)(1,552) (47) (17,836)(2,490)Net income 195,857 304,691 42,535 328,708 599,793 83,727 Accretion to preferred shares redemption value (89,411) 679,209 94,814 (154,018) 700,795 97,827 Net income attributable to Yuanbao Inc.’s ordinary shareholders 106,446 983,900 137,349 174,690 1,300,588 181,554 Net income 195,857 304,691 42,535 328,708 599,793 83,727 Other comprehensive income/(loss): Foreign currency translation adjustments 1,014 (1,730)(241) 1,410 (2,046)(286)Total comprehensive income 196,871 302,961 42,294 330,118 597,747 83,441 Accretion to preferred shares redemption value (89,411) 679,209 94,814 (154,018) 700,795 97,827 Comprehensive income attributable to Yuanbao Inc.’s ordinary shareholders 107,460 982,170 137,108 176,100 1,298,542 181,268 Net income per share attributable to Yuanbao Inc.’s ordinary shareholders Basic 1.00 4.56 0.64 1.85 8.05 1.12 Diluted 0.72 1.08 0.15 1.21 2.16 0.30 Net income per ADS attributable to Yuanbao Inc.’s ordinary shareholders Basic 6.01 27.33 3.82 11.12 48.32 6.75 Diluted 4.33 6.48 0.90 7.29 12.95 1.81 Weighted average number of ordinary shares used in computing net income per share Basic 106,262,125 216,003,981 216,003,981 94,294,012 161,484,125 161,484,125 Diluted 271,276,565 282,080,766 282,080,766 270,630,314 277,999,233 277,999,233 YUANBAO INC.UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (CONTINUED)(All amounts in thousands, except for share, per share data, ADS and per ADS data) *Share-based compensation expenses are included in the operating costs and expenses as follows： For the three months ended, For the six months ended, June 30, 2024 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMBUSD RMB RMBUSDOperations and support - (10)(1) - (21)(3)Selling and marketing expenses (2,622) (3,816)(533) (7,248) (7,546)(1,053)General and administrative expenses (5,617) (9,963)(1,391) (17,722) (18,400)(2,569)Research and development expenses (2,000) (6,745)(942) (6,067) (11,646)(1,626)Total (10,239) (20,534)(2,867) (31,037) (37,613)(5,251) **Each ADS represents six ordinary shares. YUANBAO INC.RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (UNAUDITED)(All amounts in thousands, unless otherwise noted) For the three months ended, For the six months ended, June 30, 2024 June 30, 2025 June 30, 2024 June 30, 2025 RMB RMBUSD RMB RMBUSDNet income 195,857 304,69142,535 328,708 599,79383,727Add: Share-based compensation expenses 10,239 20,5342,867 31,037 37,6135,251Non-GAAP adjusted net income 206,096 325,22545,402 359,745 637,40688,978

Yuanbao Inc. Announces Second Quarter 2025 Unaudited Financial Results

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