Yuanbao (YB) investor relations material

Executive summary

• Achieved strong Q1 2026 results with revenue of RMB 1.32 billion, up 35.6% year-over-year, and net income of RMB 388 million, up 31.4% year-over-year, maintaining a net income margin of 29.5%.

• Launched AI-powered insurance consultation and planning applications, integrating innovative drug catalog and intelligent claims assistance to enhance user experience and operational efficiency.

• Maintained robust cash reserves of RMB 4.74 billion, supporting ongoing investment in technology and AI.

• Board approved an annual cash dividend of US$1.26 per ADS and a US$15 million share repurchase program, reflecting confidence in long-term growth.

Financial highlights

• Total revenues for Q1 2026 were RMB 1,315.9 million (US$190.8 million), a 35.6% year-over-year increase.

• Insurance distribution services revenue was RMB 411.3 million, up 27.8% year-over-year; system service revenues were RMB 904.6 million, up 39.8% year-over-year.

• Net income was RMB 387.6 million (US$56.2 million), a 31.4% year-over-year increase; net income margin at 29.5%.

• Non-GAAP adjusted net income reached RMB 408.8 million (US$59.3 million), up 31% year-over-year, with a margin of 31.1%.

• Cash and equivalents totaled RMB 4.74 billion (US$687.5 million), up 71.4% year-over-year and 17.4% from year-end 2025.

Outlook and guidance

• Focus on building integrated AI capabilities and deploying AI agents across insurance processes to enhance user experience and operational efficiency.

• Committed to enhancing user needs identification, product matching, and advisory services for a full-lifecycle health and protection ecosystem.

• Confident in capturing industry structural opportunities and generating sustainable value for stakeholders.