Yuanbao (YB) Registration Filing summary

Company overview and business model

• Operates as a technology-driven online insurance distributor in China, leveraging a proprietary consumer service cycle engine and advanced data analytics to match consumers with insurance products from partnered carriers.

• Utilizes a VIE structure due to PRC restrictions on foreign ownership in value-added telecom and insurance intermediary businesses; business is consolidated for accounting purposes but no equity interest in the VIE.

• Offers primarily short-term medical, critical illness, and life insurance products, with a focus on underdeveloped regions and consumers aged 30–60.

• Revenue is generated from commissions and service fees paid by insurance carriers, not directly from consumers.

Financial performance and metrics

• Revenue grew 60.6% from RMB2,045.2 million in 2023 to RMB3,284.5 million (US$450.0 million) in 2024.

• Net income from continuing operations increased from RMB205.2 million in 2023 to RMB865.8 million (US$118.6 million) in 2024.

• Net cash provided by operating activities was RMB1,207.6 million (US$165.4 million) in 2024.

• Number of insurance consumers rose from 8.1 million in 2023 to 13.9 million in 2024; new policies distributed increased from 12.5 million to 22.4 million.

• Top three customers accounted for 60% of revenue in 2024.

Use of proceeds and capital allocation

• Net proceeds of approximately US$24.9 million (or US$28.8 million if over-allotment is exercised) expected.

• Planned allocation: 40% to enhance the consumer service cycle engine, 30% to invest in core technology and data insights, 20% to extend consumer reach and geographical coverage, 10% for working capital and general corporate purposes.