Yuanbao (YB) Registration Filing summary

Company overview and business model

• Operates as a technology-driven online insurance distributor in China, integrating insurance with advanced data analytics and AI to deliver personalized products and services to consumers and insurance carriers.

• Utilizes a proprietary full consumer service cycle engine, supporting over 4,500 predictive models for targeting, conversion, and post-sales services.

• Partners with 69 insurance carriers, distributing 12.5 million new policies to 8.1 million consumers in 2023, with a focus on short-term medical, critical illness, and life insurance products.

• Operates through a Cayman Islands holding company structure, with business in China conducted via wholly-owned subsidiaries and contractual arrangements with a VIE due to foreign ownership restrictions.

Financial performance and metrics

• Revenue grew 140.5% from RMB850.3 million in 2022 to RMB2,045.2 million (US$291.4 million) in 2023; revenue for the nine months ended September 30, 2024 was RMB2,395.8 million (US$341.4 million), up 59.6% year-over-year.

• Achieved profitability in 2023 with net income from continuing operations of RMB205.2 million (US$29.2 million); net income for the nine months ended September 30, 2024 was RMB573.5 million (US$81.7 million).

• Generated net cash inflow from operating activities of RMB55.1 million in 2022, RMB426.6 million (US$60.8 million) in 2023, and RMB930.4 million (US$132.6 million) in the nine months ended September 30, 2024.

• Majority of revenue (over 60%) comes from system services provided to insurance carriers, with the remainder from insurance distribution commissions.

Use of proceeds and capital allocation

• Plans to allocate approximately 40% of IPO proceeds to enhance the consumer service cycle engine, 30% to invest in core technology and data insights, 20% to extend consumer reach and geographic coverage, and 10% for working capital and general corporate purposes.

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