This is Tracy Lee from Wholesaleps Investor Relations. It is my pleasure to welcome everyone to Autodesk's 3rd Quarter 2024 Earnings Conference Call. All participants are in listen-only mode on our English line. As a reminder, today's conference is being recorded. Please note that this discussion today will contain forward-looking statements made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and advancements include, but are not limited to, those outlined in our public filings with the SEC. The company does not undertake any obligation to update any forward-looking statements except as required by applicable law. Also, this call includes a discussion of certain non-GAAP measures. Please refer to our earnings release for a reconciliation between non-GAAP and GAAP measures. Mr. Peng Shen, our Founder, Chairman, and CEO; Mr. Liang Wei, Director and GM of the Insurance Business; Mrs. Xixia Yin, Head of the Finance Department; and Mrs. Stephanie Both, Secretary, will be happy to take some of the questions at the end of the conference call.

Hello, everyone. In Q3, the company remains committed to healthy operations and sustainable growth, delivering solid results. Total revenue for the mid-quarter reached 704 million yen, and net profit attributable to ordinary shareholders was around 92.8 million yen, reflecting a year-over-year increase of over 160%. For the nine months of 2024, the company reported total revenue of 2.08 billion yen, up 5.8% year-on-year, and net profit attributable to ordinary shareholders was 216 million yen, a 142% increase compared to last year. Since Q1 of 2022, we have achieved profitability for 11 consecutive quarters. In Q3, each of our business segments focused on enhancing user value, with key metrics showing steady growth in the insurance business, targeting seniors, mothers, and individuals with pre-existing conditions, expanding our network of insurers, and launching several innovative products. First-year premiums totaled over 2 billion yen, a significant increase year-on-year, with an operating profit margin of about 20%. In medical performance, we actively responded to new charging laws and merits for administration as an online service platform for individuals seeking financial help. Both user numbers and per-funding amounts continue to rise, while the segment loss was further narrowed, reinforcing the sustainability of our operations. In the healthcare sector, our strong execution capabilities allowed us to expand our network with pharmaceuticals, with the number of enrolled patients growing both year-on-year and quarter-over-quarter. We are also delighted to report notable progress in AI. As a tech company rooted in insurance and healthcare, Volusoft is at the forefront of integrating large language models into our industry. Following two years of focused development, we launched AI Top Sales Platform 3.0, a conversational AI platform that customizes AI sales agents for business. It features advanced AI capabilities, including offline calling and conversational interaction, supporting voice-based sales and customer service across various…

Thanks, Mr. Shen. In Q3, the insurance business generated about 2.04 billion yen, with ARFPP at 20.4% year-over-year and 14.8% quarter-over-quarter. Insurance-related income was about 600 million yen, representing a decrease of 3% year-over-year and an increase of 4.7% quarter-over-quarter. Operating profit was around 120 million yen, with the operating profit margin maintained at about 20%. During this quarter, our short-term insurance FSA is 1.307 billion yen, a 30.3% year-over-year increase and 9.9% quarter-over-quarter. The increase in premiums on new policies currently drives the company to reach out to new customers through multiple channels and methods, creating product IT on platforms like Literacy Group, TikTok, and Wecom Videos, collaborating with influencers, and further optimizing customer acquisition and patient needs on our RTA model. The number of new users in Q3 remained stable on a quarter-on-quarter basis. The company is committed to improving user experience and iterating its insurance product offering according to the needs of different user profiles, leading to an increase in premiums sequentially. For example, regarding inclusive insurance products, the company has launched several products that do not require tax disclosure, have zero deductibles, and effectively address pre-existing conditions, thereby lowering user barriers. Some products have added special medical checkup services to enhance their connection. In Q3, the FIP upgrade in position insurance was nearly 200 million yen. In terms of maternity insurance, the 3.0 version continues to gain user recognition, and the parent-child critical illness insurance has been successfully launched. Due to this combined effect, the average premium for Shell Home Medical Insurance has increased 14.9% sequentially in each of its rates. In September, we held the Waterdrop Insurance Service Ecosystem Conference, where we strategically partnered with several insurers to establish the triple good service and align us, aiming to enhance the entire user experience. The FIP…

Thanks, Mr. Liang. As of the end of Q3 2024, around 466 million people were related to the domain, with 66.3 million patients through our platform. This quarter marks a significant milestone for our medical performance business and the industry as a whole. For the insurance of the merits for administration, its online service platform for individuals seeking health help was released by the Ministry of Civil Affairs and other government departments on September 5, 2021. This merit outlines specific regulations on fee structures, fund management, and the fight against illegal activities, establishing a legal framework and enhancing operational guidance and transparency in the product quoting process. We understand that credibility is less likely if not properly communicated. This quarter, we have been continually refining our risk control strategy to enhance transparency, for instance, by iterating our public supervision to ensure that the verification and handling of reported cases are clearly and properly communicated on the platform, bolstering a transparent and efficient oversight environment in cooperation with the public. At the same time, as a technology company, Waterdrop is continuing to explore how technology can empower the industry. For example, our co-funding system employs AI to recognize and respond to high-risk situations in real-time, even outside regular working hours, like from 1 to 6 AM. By taking immediate emergency measures such as pausing crosshanging cases and suspending payments, we ensure swift containment of any risky cases. Waterdrop firmly believes in the positive power of technology. In the future, we will continue to protect every act of co-funding as well as technologies that may improve the risk control mechanism. In the healthcare-related business, this quarter, our health-related business moved towards steady growth. For our clinical trial solution business, our platform enrolled 909 new patients in Q3, adding to the cumulative total…

Thank you. Hello, everyone. I will now discuss our financial highlights for the quarter. Before I go into details, please be reminded that all numbers here are in RMB, and please refer to our earnings release for detailed information on financial performance on both a year-on-year and quarter-on-quarter basis, respectively. In Q3, the company continued to optimize financial performance, with notable growth in profitability. Our total revenue for this quarter was 104 million yen, showing a moderate quarter-on-quarter growth of 4.1%. Breaking it down by business segment, the insurance business contributed approximately 600 million yen in revenue, a quarter-on-quarter increase of 4.7%. The corresponding segment generated service fees of around 665.81 million yen, a quarter-on-quarter decrease of about 5%. Digital clinical trials generated revenue of 24.3 million yen, a quarter-on-quarter increase of 17.4%. Regarding operating costs and expenses, our operating cost amounted to 341 million yen, a 6.7% increase compared to the previous quarter, mainly due to a rise of 32.6 million yen in referral and service fees, partially offset by the reduction of personnel costs. Sales and marketing expenses were 173 million yen, a 10% quarter-on-quarter increase driven by a strategic increase in advertising efforts on accurate and efficient operations, leading to higher marketing expenses to third-party traffic channels. General and administrative expenses increased by 17 million yen from the previous quarter, primarily due to the impairment loss of intangible assets related to the acquisition of Chunghwa. R&D expenses were 53 million yen, remaining stable compared to the first quarter. In Q3, the company's profitability improved significantly year-on-year, with net profit attributable to ordinary shareholders reaching 92.8 million yen, 2.5 times the third quarter last year, and a healthy quarter-on-quarter growth of 5.1%. The operating profit margin for the insurance business remained consistently strong at over 20%. With sustainable net profit, we continue to maintain positive operating cash inflow, ensuring a balanced cash reserve. As of September 30, 2024, the company had a cash position totaling about 3.44 billion yen, supporting the company's flexibility and ability in shareholder returns and strategic goals deployment. In summary, the strong performance in Q3 highlights Waterdrop's resilience in navigating market changes. Looking ahead, we will continue to uphold our business philosophy and strategic choices, driving the company's healthy growth. Ladies and gentlemen, with that, we will conclude today's conference call. We thank you for joining. Have a good day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.