Shen Peng: Waterdrop Company should be more transparent

Financial Circle Network November 18 news On November 17, at the second media open day held by Waterdrop Chip, Shen Peng, a member of the Fengtai Comprehensive Five Branches of the China Democratic Construction Association and the founder and CEO of Waterdrop Company, responded to the outside world's question about "How to survive without service fees for Waterdrop Chip?" When the topic was discussed, he said that the company's profit sector is mainly the inclusive health insurance business, from which the company obtains a certain profit to maintain the healthy and sustainable operation of the water drop chip business.

"Now many people know water drop chip, but do not know our inclusive health insurance business water drop insurance, many people will guess how water drop chip survives, since there is no fundraising service fee, why can it survive sustainably?" Shen Peng said that in recent years, the outside world has some misunderstandings about the company, and the company will do a good job in the business, educate the public at the same time, and at the same time make itself more transparent.

Recently, some self-media have said that "water drops raise fundraising funds into the company's capital pool" and "charge 18% high handling fees". In this regard, Hu Yao, co-founder of Waterdrop Company and general manager of Waterdrop Chip and Medical Business Group, responded on November 17 that Since its inception, Waterdrop Chip has insisted on subsidizing the service fees of fundraising users. Every love fund of the caring person who supports the patient in the water drop fund is directly entered into the water drop fund special account of Ping An Bank, which is specially managed and used, and is not affected by the operation status of the platform, so as to ensure the safety and transparency of the fundraising funds to the greatest extent. Previously, the audit report issued by Beijing Zhongtian Huamao Accounting Firm confirmed that "Waterdrop Chip did not find any misappropriation or squeezing of account funds in the special account of the bank and the special account for capital settlement".

On November 17, Shui Di Chip also announced the latest interest situation of the special account for fundraising funds: in the second quarter of 2021, the special fund account generated interest of 734,000 yuan, and from January 2020 to the end of June 2021, the total interest generated by the fund management account was 7.019 million yuan (the interest generated before January 2020 has been fully used to subsidize the third-party channels to pay the handling fee when the fundraising user withdraws). Shui Di Chip also announced that it will donate 1 million yuan in interest to the China Siyuan Project Poverty Alleviation Foundation.

Shen Peng pointed out when explaining the company's business model that at the beginning of the business, the company focused on the rescue of serious diseases and major diseases, and later in order to make the company's survival better, it did universal insurance (water drop insurance) and medical business, and the positioning of the entire company was to do related business around the needs of patients with serious diseases, and form a supplementary medical service system in addition to medical insurance.

Shen Peng stressed that Waterdrop Chip is a free Internet product for personal serious illness help, but WaterDrop Chip is not a public welfare organization, but a social enterprise. Droplet does not contribute revenue to the company, but it consumes a lot of labor costs and operating costs, which are borne by the waterdrop company.

According to public data, as of the end of June 2021, about 372 million caring people have helped support nearly 2.1 million patients with serious illnesses with financial difficulties to raise more than 42.8 billion yuan of medical assistance through the water drop fundraising platform of WaterDrop.

According to the financial report of Waterdrop in the second quarter of this year, the company's revenue was 939 million yuan, mainly from insurance-related businesses, including commissions for sales of products and income from providing technical services for insurance institutions.

Shen Peng said, "At the beginning of our establishment, we wanted to solve social problems in a commercial way, and designed a series of businesses, which synergized with each other to form a benign business model, which can make reasonable money while solving problems, make this direction sustainable, and become bigger and bigger." ”

This article originated from the Financial Circle Network