Good morning, ladies and gentlemen, and thank you for standing by for Waterdrop Inc.'s Q2 2022 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Jiao Jiao Cui. Please proceed, Ms. Cui.
Thank you, operator. Hello, everyone. Thank you for joining Waterdrop Q2 2022 earnings conference call. Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities and the 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 uncertainties 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 under applicable law. Also, this call includes discussion of certain non-GAAP measures.
Please refer to our earnings release for a reconciliation between non-GAAP and GAAP. Joining us today on the call are Mr. Shen Peng, our Founder, Chairman, and CEO. Mr. Yang Guang, Co-founder, Director, and VP. Mr.
Hu Yao, Co-founder, Director, and VP. Mr. Ran Wei, our partner. Mr. Zetao Zhu , Partner and General Manager of Medical Crowdfunding and Patient Services. We will be available for a Q&A session after the remarks. Now, I would like to turn the call over to our CEO, Mr. Shen Peng. Please go ahead. Hello, everyone. Thank you for joining our Q2 2022 earnings conference call. There have been a range of external challenges and uncertainties in this quarter. Demand for insurance products has been delayed as a result of weakening consumer confidence caused by the COVID resurgence and other external factors. Despite these headwinds, Waterdrop is still firmly committed to being user-centric, steadily developing its business, and creating shareholder value. We also proactively explore new business opportunities in this evolving market environment.
In the Q2, we made further progress on reforming our business strategy, maintained momentum, and achieved a record high profitability. Our revenues increased by 8.1% quarter-over-quarter. We achieved non-GAAP net profit for three consecutive quarters and GAAP profit for two consecutive quarters. On top of this, our net profit almost doubled sequentially, reaching RMB 207 million, and once again exceeding market expectations. Despite some cross-quarter fluctuations and the fact that our insurance business is currently the only profit contributor, our brilliant results confirm that we have entered into a phase of steady profitability. In the H 2 of 2022, we will appropriately increase our investments in new businesses.
Although the current economic cycle is near bottoming, we remain optimistic about the Chinese economy and the healthcare industry, and will maintain our strategy of achieving high quality and sustainable development. Our confidence comes from our strong determination. We will strive to achieve the goal we set for the shareholders at the beginning of the year, which is to achieve a healthy and sustainable operating profit for our existing business for 2023. In the last few quarters, we have adjusted our business strategy from pursuing scale expansion and rapid growth to cultivating a healthier and more sustainable growth. Our operating and financial performance is heading in a positive direction. Having said that, we have been constantly reviewing our business strategy, and in the Q2, we made some realignment to our organizational structure and business division.
We believe such adjustments will allow us to achieve even higher growth in future.
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Our current strategy remains to enhance the value of our products and cater to users' needs. We adhere to two principles when implementing this strategy: some operations with full compliance and high quality and sustainable development. Specifically, in daily operations, we have proposed the four pillars to prioritize: management efficiency, service quality, and reputation. So as to assist the refinement and implementation of our strategy.
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Looking to the H 2 of the year and beyond, we will strive to implement our development strategy, strengthen our capabilities, and cope with market changes in a proactive, flexible, and agile way. We will identify and seize new business opportunities and spare no effort to explore a healthier growth model.
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Overall, the implementation of our strategy will build on the solid frameworks formed by our product innovation capabilities, technological innovation, and the synergies created among various unique business segments. Particularly in the near future, with China's population aging more rapidly, the upcoming demand for insurance coverage will continue to increase and evolve. We will persist in working hard and keeping a low profile. We also strive to leverage our solid fundamentals and high technological capabilities to efficiently and accurately explore new opportunities that emerge at any time, and do our best to reap additional returns from the new model.
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As a technology platform for insurance and healthcare services, since our inception in 2016, we have persistently adhered to our mission of leveraging internet technologies to make insurance protection more inclusive and accessible to the public and bring insurance and healthcare services to billions. In July, we released our 2020 to 2021 ESG report, which was the first ESG report published since our IPO. The report details our responsibility, technology and products, industry value chain, workplace development, green development, and other relevant topics. It also illustrates how we leverage our innovative business model and the technological innovation to achieve effective business performance and sustainable progress.
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We attach great importance to our ESG efforts. Along with our strict compliance with relevant laws and regulations, we have developed rigorous management systems in corporate governance, compliance operations, supplier management, employee management, and a low carbon green development. At the same time, we also leverage our business strength and the technological innovation to integrate resources from various partners, thereby promoting sustainable creation of social value.
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In addition, we are actively engaging in establishing a multi-layer medical protection system that serves as a supplementary layer through our Waterdrop Medical Crowdfunding, Waterdrop Insurance Marketplace, Waterdrop Charity, and other businesses so as to prevent critically ill patients from becoming impoverished. As of the end of Q2, a total of 412 million donors provided nearly 15 billion RMB to millions of patients with critical illnesses through our Waterdrop Medical Crowdfunding platform. Leveraging our sophisticated technology, the Waterdrop Charity platform has helped improve the efficiency of fundraising and fund utilization by providing charity organizations with all around support. Our other campaigns cover a wide range of areas, including anti-pandemic actions, disaster relief, poverty alleviation, and rural revitalization.
These initiatives prove that we will adhere to being a responsible company with social responsibility and doing business for good as we pursue business growth.
[Foreign language]
As a leader in our industry, we are committed to driving the healthy development of the ecosystem. In response to the unauthorized fundraising activities in the medical crowdfunding industry, we collaborated with other major medical crowdfunding platforms to crack down on such activities in June. Some intermediaries have acted in the name of helping patients with critical illnesses with funds on medical crowdfunding platforms and charge them on unauthorized referrals for high commissions. This malicious activity not only damages the healthy ecosystem of the industry, but also harms the interests of donors and fundraisers.
Our Waterdrop Medical Crowdfunding platform has taken preemptive steps to identify such unauthorized fundraising activities with high accuracy through a stringent review process and risk control system. On the one hand, our risk management team contacts the fundraisers to verify their crowdfunding claims based on reports and complaints we receive from users.
On the other hand, we have developed a model powered by algorithm and AI technology to analyze fundraising activities based on information and cases referral chain of fundraisers and donors, and proactively screen and identify suspicious unauthorized cases. Our crowdfunding consultants further verify cases by conducting on-site visits and interviews. Once confirmed, we blacklist the fundraisers who have involved in the identified cases so that they will no longer be able to initiate another campaign. At the same time, those malicious intermediaries are restricted from any access, forwarding or commission on the platform. Thanks to these relentless efforts, the number of unauthorized fundraising activities on our platform has been significantly reduced.
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However, recently we have seen some reports posted in the media which have not clearly distinguished between our crowdfunding platform and those malicious intermediaries stating that Waterdrop has charged high services fees for its medical crowdfunding business, leading some users and the public to misunderstand that Waterdrop receives a large percentage of the fundraising amount. This has also led to some misunderstandings about Waterdrop's actions in cracking down on the unauthorized referrals. We would like to clarify that we have always taken a responsible approach toward cracking down on misconduct, safeguarding users' rights and promoting the industry's healthy development. Even though this is not an easy task, we remain committed to doing the right thing despite the tough challenges. We have subsidized the operating costs of our medical crowdfunding platform since its establishment for five years.
Starting from this April, we began to charge a service fee of 3% of the fundraising amount to support our platform's operations and risk controls. We have never charged high service fees and have pledged to restrain unauthorized activities. We have disclosed all of our fundraising campaigns and detailed fund flows to the public and welcome supervision from our users and the public and will take legal measures to bring illegal intermediaries to justice.
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As of today, our Waterdrop Medical Crowdfunding platform has identified and taken legal actions in over 800 unauthorized profit-making referral cases, targeting more than 600 intermediaries engaged in malicious unauthorized activities. We will make every effort to provide the best services for patients with critical illnesses, cater to patients' urgent medical needs, and develop the most reliable medical crowdfunding platform for all users, thereby earning and keeping the trust of each of our customers.
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Regarding share buyback, we continue to implement our repurchase program. In the Q2, we repurchased approximately 1.61 million ADS, and we are continuing to execute the program prudently. At the end of June 2022, the company held cash and cash equivalents and short-term investments totaling CNY 3,288 million. After offsetting the cash outflow for share repurchase, we still achieved a positive cash inflow of over CNY 360 million for the single quarter. At this earnings release, we are announcing that we launch a new share repurchase program so as to continue to buy back shares for another twelve months, in which we set the upper limit and may repurchase up to $80 million worth of our ADS.
This is a decision that was made based on the judgment of the company's current value and our confidence in our long-term sustainable development. Meanwhile, we plan to repurchase the shares for share incentive plans, which will align the interests of our employees with the growth of the company.
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To conclude with people's growing demand for health care in China and as we continue to strengthen our competitive advantages in product innovation and business sector synergies. We still believe that the online insurance and the healthcare sectors offer us a tremendous and untapped opportunity. In this changing environment, we will remain committed to our mission, keeping the focus on user value, solidifying business fundamentals, and pursuing continuous improvement. At the same time, we will also adhere to strict budgeting and objective management and continue to optimize the structure and quality of our business growth, thereby achieving healthy and sustainable profitability of our established business for the full year. I'll pass to Ran Wei to discuss the development of the Waterdrop insurance business for Q2.
Okay. Thank you, Shen Peng. Hello, everyone. Let me give you an update on our insurance business development. Life and health insurance premium growth in China was sluggish for the H 1 of 2022, and has underperformed the P&C insurance industry. Meanwhile, the life and the health insurance reform has not yet had a pronounced effect on the market, and the demand for critical illness insurance products remains weak. Share performance of the listed insurance companies have been languished at a low level for a long time, and their valuation touched a new low at the end of April. Against this backdrop, we have been proactively reforming our business model, optimizing our business operations, and adapting the transformation of our growth mode. This has helped improve our operational efficiency and strengthen the resilience of our business with new growth drivers.
In Q2, our net profit reached RMB 207 million, up by 97% on a sequential basis with the entire profit derived from our insurance business. Now I will walk you through the business performance of our insurance business across 4 aspects. First, results of our business model reform. Looking at the key parameters that demonstrate the continued profitability of our business. In Q2, we further optimized and upgraded our operating system of multiple platforms, multiple product types, and multiple service models, while relentlessly pursuing improvements in both operating efficiency and quality by streamlining our transaction processes to be more user-friendly and enriching our product offerings. We continue to see increased revenues from new customers, and our ticket rate remains at a relatively high level. 1-year LTV increased by 22% quarter-over-quarter, and 101% year-over-year.
In terms of the long-term insurance business, we refined our user group tags, based on which we upgraded the sales needs matching model to identify customers' needs more precisely. This has helped improve the customer service efficiency of our sales team, and sales productivity per our in-house LP increased by 28% quarter-over-quarter. At the same time, we have set up a dedicated team to analyze the sales conversion chain of existing user groups. Through interviews with user groups, we have improved user experience in the conversion and retention processes, thereby helping increase the three-month policy renewal rate of long-term insurance users up by 3 percentage points compared with that in previous quarter.
In terms of existing customer management, we continue to develop our multiple platform operational model for the various marketing platforms, including our WeChat official accounts, WeChat mini programs, Enterprise WeChat accounts, and the Waterdrop app. We clarified the long-term positioning of each of these channels to align them with the needs and preference of different user groups. We have strengthened our product domain operation capability and improved the collaboration between our customer service team and our LP team, yielding remarkable results in retaining core user groups. For instance, short-term insurance premiums originated from these marketing channels reached about RMB 43 million, up by 60%. The number of active app users reached 3.4 million, up by 47%.
At the same time, we set up a dedicated team in our long-term insurance business to explore additional protection needs of our existing users and provide them with lifetime insurance solutions. The insurance premiums originated from the repeat purchases by existing long-term insurance customers increased by 72% quarter-over-quarter, increasing the lifetime value of our users significantly. We also consistently explore new customer acquisition models. WeChat video accounts, we have continuously enriched and polished our content metric of our WeChat video account, tapping into a faster-growing source of WeChat users. Thanks to our deep understanding of the communication patterns and user needs on this new marketing platform. The number of users following our video accounts increased by 44% quarter-over-quarter, and the total insurance premiums originated from these accounts increased by 113% sequentially. Online brokerage.
We have set up a dedicated unit in our insurance department to promote the online brokerage business with the insurance planner model included, leveraging our multiple multi-channel exploration in Q1. The insurance planner model has a clear operating model of customer attraction through live streaming and insurance content, with the insurance planner responsible for promoting sales conversions. With establishment of our live streaming team and our insurance planner team, the number of live streaming events increased, and the number of live stream viewers grew by 140% quarter-over-quarter. With strict cost control disciplines, we have achieved an initial validation scaling up these operations. Second, product innovation. In Q2, we have continued to launch more high-quality insurance mode product. The total number of product offering have increased by 44% this quarter.
In terms of short-term insurance product offerings, we now have 11 different cost-effective versions of RMB 1 million coverage medical insurance products. We also improved our critical illness products by offering more flexible options for health declarations and premium payments. Thanks to our ability to accurately match user needs, the policy renewal rate remains at a high level of 90%. In addition, the continued enrichment of our product offering has significantly improved our ability to reactivate dormant users. For example, to meet the needs of customers with pre-existing illness conditions, we launched Waterdrop Blue Ocean, a series of customized and cost-effective illness products. The product has simplified the policy enrollment and claim settlement process, and with the health declaration requirements while keeping underwriting risk under control.
This will, to some extent, ease the concerns of senior citizens and patients with chronic diseases who are seeking to purchase IC insurance. In addition, we have launched Waterdrop Cruiser, new accident insurance product, which waives the health declaration requirements and relaxes the age limits for insurance applicants to 80 years old. As returns from investment products offered by banks have tended downward, there is increasing customer demand for investment products that offer stable returns. In response to this demand, we added the incremental life insurance policy to our long-term insurance product offerings in Q2. We also provided our sales team with special training on distribution of these new products, especially to high-net-worth individuals. The insurance premiums of incremental life insurance products totaled more than CNY 20 million in Q2.
Meanwhile, empowered by annuity products launched in Q1, the private domain operating capability of traffic coming from our Enterprise WeChat account. Our long-term insurance team has achieved a quarter-over-quarter increase in annuity insurance premiums of 324% in Q2. Third, upgrades. Updates on auto brokerage business. We continued to explore different brokerage service models in different regions and cities. At the end of Q2, we had 11 regional brokerage licenses. During the quarter, we set up a branch in Shanxi and two new outlets in Hubei Province. The brokerage team expanded to nearly 600 staff, generating a total premium income of about CNY 8 million in Q2 . Four, actively empower industry with technology. In terms of technology export, we launched our project for Hualong Property Insurance in Q2.
This is the first time that we have exported our CRM system deployed with AI under advanced capability to a third party. We currently have the ability to provide full chain marketing solutions for the insurance industry. This includes user acquisition, private domain management, and empowering of offline agents with sales conversion capability. Through these solutions, we can help insurance companies and insurance intermediaries digitalize their marketing process, thereby driving user base expansion and premium growth. In the H 2 of this year, we will continue to work with more partners on different tech projects. The above is a brief on insurance business, and let me hand over to the top for the update of our medical consulting and patient recruitment business.
Thanks, Ran Wei. I would like to share some updates on our medical crowdfunding business. As of the end of Q2, the cumulative number of donors, which is 412 million, helping 2.58 million patients raise approximately RMB 53.3 billion cumulatively. Since April of this year, our platform has ceased to fully subsidize the service fee and started to charge a service fee of 3% up to a maximum amount of RMB 5,000 for a single campaign. This is to cover part of the operational cost and help more patients with critical illnesses raise funds. The user number and fundraising amounts on our platform has remained stable even after the charge of service fee.
As part of our commitment to promote best practice and overall development of the industry, we have recently established an operational transparency committee to continuously promote the authenticity of the campaign initiated at our medical fundraising platform, the fund for transparency as well as the rationality and transparency of the platform rules. The committee consists of Waterdrop's core management team, experts in the field of law, charity, and public media, with our CEO, Mr. Shen Peng, as head of the committee.
To better safeguard the rights and interests of both the fundraiser and the donors, the committee will collaborate with public security authorities, hospitals, and other industry partners to crack down on fundraising fraud, while actively seeking advice from the public to ensure that each donation is open, transparent, and traceable. Meanwhile, the committee will constantly interact with the experts and optimize the rules of the platform.
In the future, Waterdrop will make every effort to avoid fraudulent fundraising and misappropriation of funds, ensuring the overall security of funds raised from our platform. Next, let me talk about the progress of our patient recruitment business. In Q2, the COVID outbreak in various cities of China has adversely affected the launch of new clinical trials. Nonetheless, our YYF patient platform sustains overall high growth momentum and successfully enrolled approximately 700 patients for clinical trials. The YYF patient platform also participated in over 60 new clinical drug trial programs by partnering with innovative pharmaceutical manufacturers, including leading multinational enterprise in the industry, bringing the total number of clinical trial programs for new drug registration to more than 300.
The YYF patient platform has now collaborated with more than 100 innovative pharmaceutical manufacturers and CROs in China and worldwide, helping us win the wider recognition of our partners and establish a good reputation across industry. In the past few quarters, the platform has grown to become a leading patient recruitment platform in China, in particular for oncology-related clinical trials. Our deliberate effort, capability in quickly, accurately recruiting patients suitable for the trial projects and high operational efficiency are key accomplishments. We further expanded the scope of our clinical trial service in Q2. The platform continued to achieve rapid growth progress in the oncology and chronic disease clinical trials. We also made new breakthroughs in the rare disease segment.
For years, we have seen patients with rare disease struggling to find the right medication, but this dilemma has started to reverse as patients have gained more public attention recently. This has led to a significant increase in the number of clinical trials for rare disease. However, as patients with rare diseases are widely dispersed across the country, it is challenging to enroll the appropriate patient to participate in trials of a new specific drug. This has prolonged the progress of pharmaceutical companies in bringing new drugs to the market. Nevertheless, we found that many of these patients are also registered users of our Waterdrop Medical Crowdfunding platform, who are seeking financial help after being plagued by their diseases for years. In Q2, we worked with these stable partners on clinical trials for rare disease treatment.
Using our structured data process technologies, we are capable of matching patients with the most appropriate clinical trial, thereby accelerating the R&D and go-to-market progress of our partners. This concludes my part, and let me turn over the call to Yao Hu to discuss our technology innovation updates.
[Foreign Language]
Thank you, Zetao Zhu. I'm going to talk about our Q2 technology innovation updates from three aspects.
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First, let's start from the intelligent risk control for medical crowdfunding business. In response to malicious intermediaries who refer the needy to our medical crowdfunding services just to collect commission, our AI team has applied knowledge matching technology to analyze the statistical characteristics of sample cases and developed two models to identify the high-risk unauthorized fundraising activities and the malicious intermediaries engaging such activities respectively. To date, the models have realized an accuracy rate of over 90%. This has effectively reduced the number of malicious unauthorized fundraising activities and enhanced our risk control capabilities for our medical crowdfunding business.
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The second one is intelligent dialogue platform. In Q2, we completed a major upgrade of our chatbot platform. We have upgraded it into an intelligent dialogue platform by integrating various functions such as outbound chatbot, customer service chatbot, virtual employees, and technology export projects. For instance, we added the chat data features in our outbound chatbot. By including eight types of chat data features and several modes, the chatbot is capable of engaging in more human-like dialogues with users, further improving its intention recognition accuracy rates by 15%. In addition, our customer service chatbot can solve more than 80% of inquiries raised by users, and the intention recognition technology achieved an accuracy rate of over 95% for the overall intelligent dialogue platform.
For transferring customers' requests from chatbot modes to manual modes on a real-time basis, we have upgraded our loss control model for phone calls to an intelligent dispatching algorithm, which enables us to further improve sales force productivity. According to users' needs and choice, we have also integrated this algorithm with our recommendation algorithm to offer a better user experience during the conversation.
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Our AI-powered content production platform provides a lineup of useful tools for content creators. Powered by AI capabilities, the platform will generate corresponding marketing content following the content materials submitted by the original creator. While enriching our marketing content, the platform also helps improve efficiency and lower the cost of content production. Currently, we have developed three function modules for our platform, namely text generation, speech synthesis, and video synthesis. To be more specific, first, as for the speech synthesis, our platform can simulate human-like speeches with flexible configurations. Various types of reverberations and the voice properties, such as speed and volume, are available in this speech synthesis.
Currently, the module supports six sound control functions. Our team is also exploring the underlying intelligent speech technology of voice cloning, which we expect to integrate into our speech synthesis module in the future.
Second, in respect of video synthesis, the module has incorporated technologies related to lip syncs, AI-powered face swap, animation style transfer, motion transfer, and virtual human live broadcast. The lip sync technology has been successfully applied in multiple business scenarios, including Waterdrop WeChat video accounts, the WeChat video accounts of our brokers, as well as the video advertising promotions at Douyin. I will now hand over to Yang Guang to discuss our Q2 financial performance.
Thank you, Yao Hu. Hello, everyone. I will now walk you through our financial highlights for the Q2 of 2022. Before I go into details on this financial performance, please be reminded that all numbers quoted here will be in RMB. Please refer to our earnings release for the detailed information on our comparative financial performance on both the year-over-year and quarter-over-quarter basis, respectively. Despite the challenging external environment, we have entered a relatively stable profit-making stage after we turned profitable for three consecutive quarters. Our net operating revenue firmed up and our net profit almost doubled on a quarter-over-quarter basis.
Our net operating revenue decreased by 25.3% year-over-year to RMB 701 million from RMB 939 million, mainly due to the decrease in insurance related income by RMB 273 million, but partially offset by the increase in the crowdfunding service fee of RMB 56 million. The decrease of interest related income was mainly due to the decrease in the first year premium, but offset by the improvement of our take rate. Our operating revenue growth sustained with a quarter-over-quarter increase of 8.1% in Q2, which demonstrated a more healthy and a solid growth trend. The take rate further increased from 34% in Q1 to 38% in Q2, primarily driven by the consistent quality enhancement in our insurance business.
Operating costs and expenses for Q2 decreased by 68.9% year-over-year to RMB 546 million. On a quarter-over-quarter basis, operating costs and expenses increased marginally by 2.5%. To break it down, operating costs were RMB 245 million, down by 6.1% year-over-year, mainly due to the decrease in professional and outsourced customer service fee of RMB 33 million and a decrease in personnel cost of RMB 58 million. On a quarter-over-quarter basis, operating costs increased by 57.9%, mainly due to the accounting reclassification of certain crowdfunding related service fees from sales and marketing expenses to operating costs, as we started to charge crowdfunding service fee since April 2022.
Sales and marketing expenses decreased by 88.4% year-over-year to RMB 144 million for the Q2 of 2022. The decrease was primarily due to RMB 952 million decrease in marketing expenses to third-party traffic channels and a RMB 136 million decrease in outsourced sales and marketing service fees to third parties. On a quarter-over-quarter basis, sales and marketing expenses also decreased by 29.3%. G&A expenses decreased by 42.3% in Q2 to RMB 86 million year-over-year due to the combined impact of a decrease of RMB 54 million in share-based compensation expenses and a decrease of RMB 6.7 million in personnel cost. On a quarterly basis, the G&A expenses decreased by 15.6%.
R&D expenses decreased by 29.8% to CNY 70 million year-over-year, and it remains stable quarter-over-quarter, reflecting the optimization of our organizational structure during last year. In this quarter, we continue to report a non-GAAP profit of CNY 233 million and a U.S. GAAP net profit of CNY 207 million compared with the net loss in the same quarter of last year. This once again proved the effectiveness of our business strategy to enhance the overall revenue quality.
As of June 30, 2022, our cash and cash equivalents and short-term investment balance increased to CNY 3,288 million, an increase of CNY 364 million or 12.4% from the end of the last quarter, despite actively implementing a share repurchase program under the compliance framework.
During the past few quarters, we have provided the following financial guidance, enhancing revenue quality and profitability and achieving profit for full year of 2022. In Q2, we have made good progress in delivering this guidance and encouraging results. Going forward, we will strive to deliver high quality growth and enhance our long-term competitive strengths. Thank you, that's all for my part. Now let's turn to Q&A.
Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speaker phone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, please press star then two. We also ask that you please limit yourself to two questions at a time so that others can get their questions in as well. In addition, for those who speak Chinese, would you please ask your questions in Chinese first, followed by the English translation. We will now pause momentarily to assemble our roster. Today's first question comes from Michael Li at Bank of America. Please go ahead.
Thank you. My main question is about the insurance business. I see that in the Q2, actually, insurance business growth is still pretty good, especially on the basis of cost control. I saw the take rate also improved. The critical illness ratio also improved. These are all good signs. I would like to ask, going forward, what kind of growth strategy do we have in the insurance business, especially in terms of products and channels? I will say it again in English. Congratulations management for on the performance in Q2. I saw the improvement of your insurance business, in terms of, like, take rate and also product mix.
My question is that, what is your growth strategy for insurance business and any plans to upgrade your product mix and the channels? Thanks.
Okay, thanks, Michael. That's a very good question. From a user growth perspective, there were three business models for growth. Direct to C, to A to C, and to B to C. Our core growth driver is directly to C in the past. We also have built up our capability in to A to C and to B to C for a while. Going forward, there were opportunities in all of those three business models. On the directly to C front, we needed to explore the opportunities in traffic ecosystems and deploy our resources accordingly. First, let's look at the WeChat ecosystem. Our focus on about four growth opportunities of WeChat ecosystem. First of all is the growth opportunity from Waterdrop Medical Crowdfunding.
Waterdrop Medical Crowdfunding operates a 10 million level DAU platform where we effectively educate users about insurance protection and insurance awareness. It can help us convert users into millions of new short-term insurance customers and new health insurance policyholders each year. The conversion efficiency in our crowdfunding channel increased by more than 30% from the H 1 of 2022. The second is growth opportunity from the rise of WeChat video accounts. WeChat is shifting its focus and traffic to WeChat video accounts, which already have 450 million DAU so far. Users have seen better connection between their WeChat video accounts and their WeChat official accounts and real progress, making it a very big growth value for customer education and conversion.
Our WeChat video accounts have now surpassed 100 million in monthly video viewership, directed a monthly influx of 300,000 new followers to our WeChat official accounts, and posted twofold growth in monthly premium for the past three months in a row. The third one is growth opportunity from private domain operations of our Enterprise WeChat account. The private domain operations of Enterprise WeChat is another focus of WeChat. This platform offers strong user management functions and infrastructure support and provides an effective means to reach users and user operations. Our Enterprise WeChat account has reached millions of users and continue to attract hundreds of thousands new users each month, contributing over RMB 10 billion premium each month. The fourth one is the opportunity in refining our existing user management.
We consistently strengthen our user lifetime management by analyzing different scenarios on many marketing platforms, match suitable insurance products and services for our users in different scenarios, and further apply our AI capability to bolster online sales conversion. We have effectively improved our short-term insurance conversion, repeat purchase, and policy renewal. In addition, online user operation can also continuously deepen our understanding of user group profiles and improve our sales conversion capability, which allows us to match our users' insurance products and sell them more precisely, and thereby facilitating the conversion from P&C insurance or short-term insurance policyholder to a long-term insurance customer. In addition to WeChat ecosystem, we have also explored the growth opportunity in short video or content platforms such as Douyin, Kuaishou, and Xiaohongshu.
Chinese like to spend more than half of their consumption time on short video or content platforms. Leveraging various marketing tools, including graphic ad videos and live streaming, it's easier to acquire high quality new insurance customers, a better insurance awareness, education background, and high income level from social media platforms. We engage these users and acquire leads on the platform by our insurance planners who are more user-led oriented. We will promote our insurance products to the users online or through telemarketing, thereby generating more incremental insurance premium. The sales productivity is very high at around RMB 100,000 per capita. We think this presents effective efficiency long-term insurance conversion model for the next generation insurance consumers, and also it is a very important direction for our future investments and capability building.
In terms of 2C, we're confident about offline broker model in the long run. We think the offline brokers serves as a very important complement to our customer acquisition capability. In particular, they can help us acquire more middle class and affluent customers. We hope to build up a professional, productive, and high quality offline broker team dedicated to serving the Chinese new middle class and affluent urban residents. Our short to medium term goal is to build the fundamental team and the management system and the empowerment platform within the next 1-3 years while achieving growth and scale. We believe that it will become a powerful growth driver in the medium to long run.
On the 2B2C front, we hope to achieve win-win cooperation with partners who are rich in users' resource by leveraging our strength in sustainability, insurance product offerings, and customer conversion. On one hand, we have established an insurance product distribution platform to connect insurance companies, agencies, and individual brokers, so as to improve the efficiency of insurance distribution and deliver mutual benefits for partners as well as consumers. On the second, we have been leveraging our strong capability in user operations and conversion to launch self-leads collaboration with third-party partners and help them monetize their user base. These 2B2C business models have brought in more than CNY 10 million monthly premiums and maintain a faster growth trend.
In addition to the three growth models that I have mentioned, we believe insurance services for people with pre-existing medical conditions in hospital and pharmacy scenario also have promising growth potential. In China, there are more than 300 million people with pre-existing conditions, and their needs are underserved in the traditional insurance models. We're able to accurately reach them, and we have customized various products to meet the needs of these people through product innovation. At present, we can reach tens of thousands of people with pre-existing conditions each month that have potential to convert to insurance consumers, which may bring incremental premiums at millions of RMB level. In the sum, our core growth drivers in the near term are the incremental user growth in the WeChat ecosystem and the existing user operation.
In the midterm, say, in 1 or 3 years, in addition to the growth from the WeChat ecosystem, we are also positive about the growth from social media platforms like Douyin as well as the two B.
Distribution model. For long term, we believe our offline working business and insurance services for people with pre-existing conditions, both are powerful growth drivers. That's all. Thank you.
Thank you.
Thank you. Our next question comes from Qingqing Mao with CICC. Please go ahead.
Hi, management. This is Qingqing from CICC. Thanks for taking my question. We have seen some reports posted in media regarding the unauthorized fundraising activities and malicious intermediaries in the medical crowdfunding industry. We also mentioned about it in a previous presentation. My question is, could you further explain the service and the revenue model of your crowdfunding platform? And what's the current revenue contribution in Q2? Could you please tell us more about the details? That's all for me. By the way, wish you a Happy Mid-Autumn Festival.
Thank you for your question, and let me translate for Shen Peng. As the leading online platform for patients with critical illness to seek financial help in China, Waterdrop Medical Crowdfunding provides users with comprehensive and detailed fundraising services, including detailed dedicated customer services, instant withdrawal of the funds from business operations and so on. In order to maintain high quality services to our users, we seek to fully subsidize the service fees and started to charge service fees from April seventh this year. The decision was made after taking into account the industry research, expert advice, and the platform's operational needs. The service fee was equal to 3% of the withdrawal amount for a single campaign, up to a maximum amount of CNY 5,000.
This is in addition to the 0.6% payment channel fee charged by the third party. It should be clearly noted that the purpose of charging the service fee is to support the operational maintenance costs and expenses of the platform in order to realize the sustainable and healthy operations of the platform. As mentioned just now, as reported just now, the platform has facilitated fundraising of RMB 2.3 billion in this quarter, and we generated service fee income of RMB 56 million for the funds raised. Meaning that the overall take rate is still lower than 3% because we still subsidize certain special cases where the patients are in critically serious situations. We haven't covered all the costs for the fundraising business yet.
All of our profits of the Waterdrop Group still came from the insurance-related business only. As mentioned just now by Shen Peng, we are committed to driving the healthy development of the whole industry. In response to the unauthorized fundraising activities and the malicious intermediaries in the medical crowdfunding industry, we will continue to crack down on such activities. On the issue of the unauthorized fundraising activity is not only the phenomenon in the field of medical crowdfunding industry, but also an issue relating to the internet governance. In the future, we will continue to improve the quality of our services and provide users with more professional detail and sustainable services.
We will always actively take social responsibility and work hand in hand with the National Healthcare Security Administration and the regulatory authorities, as well as other relevant social organizations to make joint efforts to maintain the healthy ecosystem of the whole industry. Thank you.
Thank you. Ladies and gentlemen, we are now approaching the end of the conference call. Thank you for your participation on today's conference.