Yuanbao (YB) investor relations material

Executive summary

• Total revenues for Q2 2025 reached RMB1.07 billion, up 25.2% year over year and 10.3% quarter over quarter.

• Net income surged 55.6% year over year to RMB305 million, with a net income margin of 28.5%.

• Record 7.9 million new policies issued in Q2, up 49.9% year over year, reflecting expanding user base and market penetration.

• Advanced technology deployment, including LLM-based agents and GraphRAG, enhanced efficiency and user satisfaction.

• Cash reserves stood at RMB3.42 billion as of June, supporting future expansion and innovation.

Financial highlights

• Insurance distribution services revenue grew 29.6% year over year to RMB350.6 million.

• System services revenue increased 23.8% year over year to RMB718.2 million.

• Total operating expenses rose 16% year over year to RMB772.2 million.

• R&D expenses increased 55.4% year over year to RMB81.7 million.

• Operating cash flow for the quarter was RMB453.2 million, with liquidity up 99% year over year.

Outlook and guidance

• Full-year 2025 revenue expected to grow at least 20–30% year over year, with profit margin above 20%.

• Plans to deepen investment in technological innovation and expand reach in underserved markets.

• Management sees substantial untapped growth potential in user scale and industry penetration.

• No explicit guidance for 2026 provided.

• Business model expected to remain resilient despite macro uncertainties, with focus on ROI optimization.