Lei Jianping reported on April 17
Waterdrop Corporation (ticker symbol: "WDH") today filed a prospectus with the US SEC for listing on the New York Stock Exchange. Previously, the market rumored that the valuation of Waterdrop Company may be between $6 billion and $8 billion.
The founder of Waterdrop Company is Shen Peng, who was the No. 10 employee of Meituan and the national head of Meituan Takeaway.
The purpose of the funds raised by the IPO of Waterdrop is to strengthen and expand the health services and health insurance business, research and development.
The founding of Waterdrop originated when he was 12 years old and was hospitalized due to injury
Founded in April 2016, Waterdrop has three major businesses, namely "Waterdrop Mutual Aid", "Waterdrop Chip" and "Waterdrop Protection", and is currently the fastest growing Internet health protection platform in China.
Shen Peng once said that the original intention of founding Waterdrop stemmed from being hospitalized for 8 months due to injury and illness at the age of 12. During his hospitalization, Shen Peng saw that doctors could save people from water and fire, and also saw how a serious illness quickly consumed a family's savings.
In early 2016, the mother of a colleague of Shen Peng's Meituan group had a brain aneurysm, and the lack of funds quickly put the treatment in trouble. This colleague had to ask Shen Peng for help, so Shen Peng called on colleagues to give support, everyone transferred to the Alipay account of the colleague who asked for help, because this fundraising operation was not convenient and transparent enough, it took nearly 1 month to raise the required funds, and the colleague's mother almost missed the best time for treatment.
Shen Peng once said, "I am a person who emphasizes execution, and I will do something immediately when I think of it." ”
Of course, the development process of water drops has also encountered various problems, in December 2019, water drops companies encountered a storm of public opinion, mainly the video of water drops pushing "sweeping the building" to attract widespread attention from the society. In the video, the water drop chip push personnel without verifying the patient's condition, economic situation and other information, apply the template, fill in the fundraising amount at will, and guide the patient to initiate fundraising.
This move was accused of undermining everyone's trust in public welfare and the public being deceived. After that, Shen Peng issued an article to apologize to the public, saying that if the offline team is no longer well managed, it will hand over the water drop fund to the relevant public welfare organizations. Shen Peng once issued an internal letter, saying that the water drop company was questioned, criticized and blamed by the outside world, and the value created by the water drop chip seemed to be written off in the mouths of individuals.
Shen Peng also said that some netizens understand water drop chip as a charity public welfare organization, in fact, the core essence of water drop chip is a free Internet personal serious illness help tool, which can help patients with serious illnesses in distress to seek help from friends and solve the problem of medical funds more efficiently.
Recently, the Droplet Mutual Aid Platform under Waterdrop Company announced the upgrade of the service model, and the original platform mutual aid plan was terminated. The official of WaterDrop Chip has also issued a statement clarifying the relationship between Water Drop Chip and Water Drop Mutual Aid, saying that Water Drop Chip is a free Internet service platform for personal serious illness help, and Water Drop Chip and Water Drop Mutual Aid are two completely different independent businesses under Water Drop Company. At present, the water drop fundraising business operates as usual, is not affected by the upgrade of the droplet mutual aid, and will continue to provide fundraising services for fundraising users for serious illnesses, and also insists that no service fee will be charged to users.
Waterdrop Chip also responded to the platform capital security issues that users are concerned about, saying that Waterdrop Chip has reached a cooperation with Ping An Bank, and the fundraising funds will directly enter the special management account of the bank entity, and be isolated from the water drop chip platform's own funds to achieve special management and special use.
Annual revenue of 3 billion
According to the prospectus, the revenue of Waterdrop in 2018, 2019 and 2020 was 238 million yuan, 1.51 billion yuan and 3.028 billion yuan (about 484 million US dollars), respectively;
The main income of the water drop company comes from the water drop insurance. By the end of 2020, Waterdrop Insurance cooperated with 62 insurance companies to provide users with 200 health and life insurance products. The number of paid users of Waterdrop Insurance is 19.2 million, and the cumulative number of paid policies has reached 30.7 million.
In 2020, the first-year premium (FYP) completed by Waterdrop Insurance was 14.426 billion yuan, and the commission income was 2.695 billion yuan, accounting for 89.1% of the overall revenue of Waterdrop Company.
The insurance products sold by Waterdrop Insurance are divided into short-term insurance (insurance term is one year and less) and long-term insurance (insurance period of more than one year), of which the commission income of long-term insurance business from 2018 to 2020 is 1.51 million yuan, 173 million yuan and 650 million yuan, accounting for 0.6%, 11.5% and 21.5% of the company's revenue.
In 2018, 2019 and 2020, the costs and expenses of Waterdrop were 426 million yuan, 1.7 billion yuan and 3.524 billion yuan (about 540 million US dollars), respectively, and the highest costs and expenses were sales and marketing expenses, which were 185 million yuan, 1.056 billion yuan and 2.13 billion yuan (about 326 million US dollars) respectively.
The operating losses of Shuidi in 2018, 2019 and 2020 were 188 million yuan, 195 million yuan and 496 million yuan (about 76.05 million US dollars), respectively.
Waterdrop's adjusted net losses for 2018, 2019 and 2020 were 160 million yuan, 297 million yuan and 284 million yuan (about $43.525 million), respectively, and Adjusted EBITDA was -140 million yuan, -159 million yuan and -247 million yuan (about $37.9 million), respectively.
Among them, the revenue of Waterdrop in the fourth quarter of 2020 was 830 million yuan, down 4% from 863 million yuan in the previous quarter, and 54% from the revenue of 538 million yuan in the same period of the previous year.
Waterdrop's costs and expenses for the fourth quarter of 2020 were $1.1 billion, up 12 percent from $983 million in the previous quarter and up 58 percent from $697 million in the same period last year.
Waterdrop's operating loss for the fourth quarter of 2020 was 273 million yuan, compared with an operating loss of 120 million yuan in the previous quarter and an operating loss of 160 million yuan in the same period last year.
Waterdrop's operating margin for the fourth quarter of 2020 was -33%, compared to -30% in the same period last year.
The net loss attributable to the company in the fourth quarter of 2020 was 400 million yuan, compared with a net loss attributable to the company in the previous quarter of 139 million yuan, and a net loss attributable to the company in the same period last year was 180 million yuan.
As of December 31, 2020, Waterdrop held cash and cash equivalents of $1,062 million (approximately US$162 million), compared to $964 million for the same period last year.
Tencent Boyu Gaorong is a shareholder
In August 2020, Qiu Hui, former co-founder and CTO of Uxin Group, joined Waterdrop as a partner and CTO.
In November 2020, Shi Kangping, former CFO of Maoyan Entertainment, joined Shuidi as the CFO of Shuidi Company, reporting to Shen Peng, founder and CEO of Shuidi.
With over 20 years of experience in accounting and finance, Shi Kangping joined Maoyan Entertainment in February 2018 as Chief Financial Officer, with overall responsibility for Maoyan Finance, Legal, IR, Internal Audit And other departments. From December 2016 to December 2017, Shi Kangping served as the Chief Financial Officer of Ping An Good Doctor.
Since the establishment of The Waterdrop Company, it has obtained many financings, Shen Peng completed the resignation procedures from the Meituan, and the first angel investment of 50 million yuan arrived in the account, and the investors included Tencent, IDG, Gao Rong, Lighting Fund, and Zhen Fund.
In 2019, Waterdrop completed nearly 500 million yuan of B round financing and more than 1 billion yuan of C round financing.
In August 2020, Waterdrop announced that it had completed a SERIES D financing of US$230 million, jointly led by Swiss Re Group and Tencent, and followed by old shareholders such as IDG Capital and Light Global Fund.
Waterdrop has a total of 3,641,265,290 shares, and before the IPO, the management team of Waterdrop Company, with founder Shen Peng, co-founder Yang Guang and Hu Yao as the core, held 26.4% of the shares.
Among them, the Shen Peng family holds 801,904,979 shares, holding about 21.97%.
Tencent is the largest institutional shareholder, holding 22.1% of the shares. Boyu Capital, Gaorong Capital and Swiss Re held 11.9%, 6.5% and 5.7% of the shares respectively.
Waterdrop's investors also include IDG Capital, Meituan, Innovation Factory and other investors.
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