Yuanbao (YB) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with business in China via subsidiaries and contractual arrangements with a VIE due to PRC restrictions on foreign ownership in insurance and value-added telecom sectors.

• Provides technology-driven online insurance distribution, leveraging a proprietary consumer service cycle engine and advanced data analytics.

• Largest independent insurance distributor in China’s personal life and A&H insurance market by first year premiums in 2023.

• Business model centers on distributing customized insurance products from partnered carriers, with revenue from commissions and system services.

• VIE structure enables consolidation of financials but exposes to regulatory and enforceability risks.

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.

• As of December 31, 2024, total assets were RMB2,779.6 million, with cash and cash equivalents of RMB1,904.7 million.

• Key operating metrics for 2024: 13.9 million insurance consumers, 22.4 million new policies, RMB28.6 billion first year premiums.

Use of proceeds and capital allocation

• 40% to enhance the consumer service cycle engine, 30% to invest in technology and data, 20% to expand consumer reach and geography, 10% for working capital and general purposes.

• Proceeds can only be transferred to PRC subsidiaries via loans or capital contributions, subject to regulatory approval.