On September 25, Waterdrop Inc. (WDH.US) published its "2024 Environmental, Social and Governance (ESG) Report," comprehensively disclosing the company's technological exploration and achievements over the past year in corporate governance, technological innovation, product responsibility, talent development, environmental protection, and sustainable ecosystems. Waterdrop Inc.'s ESG rating score continues to maintain an A grade, remaining at the industry forefront.

The report reveals that Waterdrop Inc. has been persistently advancing AI technology innovation, with artificial intelligence patent applications exceeding 100, continuously enhancing user product experience. Meanwhile, the company actively engages in charitable causes, focusing on assisting vulnerable groups, rural revitalization, educational support, and emergency disaster relief, committed to addressing social issues.

Shen Peng, Founder and CEO of Waterdrop Inc., emphasized: "As an innovation-driven enterprise guided by mission and values, we do not limit our success metrics to short-term economic returns, but build upon the harmonious coexistence of environmental, social and governance capabilities, continuously advancing corporate sustainable development management and practices."

**Deepening AI Technology Innovation with Over 100 Artificial Intelligence Patents**

As a representative insurtech company, Waterdrop Inc. began exploring AI solutions to address insurance supply-side shortages in 2019. Leveraging advanced R&D capabilities and focusing on user needs and efficient operations, the company independently developed the "Waterdrop Guardian Large Model," which passed the National Cyberspace Administration's algorithm registration in 2024 and obtained multiple large model development patent authorizations. By the end of 2024, the cumulative number of large model-related patent applications reached 48, with over 100 artificial intelligence-related patents authorized.

The report shows that Waterdrop Inc. continued deepening technological innovation in 2024, with annual R&D investment reaching 217 million yuan. The "Waterdrop Guardian Large Model" can provide more professional, accurate, and easily understandable recommendations for insurance brokers and users, bringing deep empowerment and efficiency improvements to the entire insurance service chain. The "Waterdrop Guardian AI Insurance Expert" can conduct natural conversations for up to 50 minutes, interpret over 7,000 insurance products, cover more than 10,000 medical insurance-related questions, and provide high-quality full-process insurance product services for users.

Simultaneously, Waterdrop Inc. continues focusing on the differentiated protection needs of elderly, pre-existing condition, and female populations, launching diversified inclusive products such as "Good Pregnancy Coverage" and "Disability Insurance," promoting insurance product innovation and enhancing insurance accessibility and inclusiveness. In 2024, the company created 174 inclusive products, with pre-existing condition insurance claims reaching 38.128 million yuan.

**Active Participation in Multi-level Medical Security System Construction with Cumulative Assistance Amount Exceeding 50 Million Yuan**

On December 25, 2024, Waterdrop Crowdfunding officially became a personal assistance network service platform designated by the Ministry of Civil Affairs, marking the industry's entry into a new phase of healthier and more standardized development. By the end of 2024, with donations from 470 million caring individuals, Waterdrop Crowdfunding raised 67.5 billion yuan in assistance funds, helping 3.4 million patients with serious illnesses.

Based on the special characteristic that major illness fundraising mainly relies on patients' social network dissemination, the Waterdrop Crowdfunding platform has introduced a public reporting mechanism, inviting public participation in supervision to ensure those truly in need receive assistance.

The report shows that since 2021, Waterdrop Inc. has successively collaborated with medical insurance and civil affairs departments in Zhejiang Jinyun, Hainan, and Guangzhou on government-social assistance coordination. By the end of 2024, through Zhejiang Jinyun's "Jinqing Help" medical insurance poverty prevention application, 632 people were assisted with social participation funds reaching 13.8796 million yuan; through Hainan's "Haihui Help" multi-level medical assistance information platform, 1,929 people were assisted with cumulative total assistance exceeding 39 million yuan.

Utilizing internet platform mechanisms and technological advantages to actively participate in multi-level medical security system construction, Waterdrop Inc.'s exploration has effectively reduced the medical burden for patients with serious illnesses, becoming a beneficial supplement to the current social assistance and medical security systems.

**Focusing on Vulnerable Group Assistance with Rural Medical Centers Covering Over 500,000 Beneficiaries**

As China's leading insurtech and healthcare platform, Waterdrop Inc. consistently upholds the mission of "using internet technology to help the broad masses have insurance and medical care, protecting hundreds of millions of families," integrating social responsibility into the core of corporate development. Currently, the company has formed a comprehensive service system covering insurance protection, major illness assistance, and pharmaceutical innovation.

The report shows that Waterdrop Inc. actively engages in social welfare causes, focusing on vulnerable group assistance, rural revitalization, educational support, and emergency disaster relief, promoting social issue improvement. In 2024, the company built 30 rural medical centers, with cumulative construction of 167 medical centers, covering over 500,000 beneficiaries.

Notably, this report first disclosed Scope 1 to Scope 3 greenhouse gas emissions and energy and waste management data. Waterdrop Inc.'s operational greenhouse gas emissions totaled 402.22 tons of CO2 equivalent, a 33.32% year-on-year decrease. This disclosure marks an important step for Waterdrop Inc. in climate change response and environmental data refined management.

Professor Guo Yi, Vice Chairman of the Social Responsibility and Sustainable Development Professional Committee of the China Enterprise Management Research Association and Director of the Economics and Management Department at Beijing Technology and Business University, affirmed the report, stating: "Waterdrop Inc.'s ESG report is content-rich, data-detailed, and well-illustrated, meeting stakeholder expectations and well reflecting ESG information disclosure requirements for reliability, relevance, verifiability, understandability, timeliness, and consistency."

Dr. Lu Jianzhong, former Director of the Global Reporting Initiative (GRI) and Vice Chairman of the Sustainable Development Professional Committee of the China Association for Management Science, noted: "Beyond the ESG content, the report dedicates substantial coverage to technological innovation and ecosystem construction efforts, demonstrating the organic integration of Waterdrop Inc.'s sustainable business strategy and social responsibility commitment."