Q2 2023 CNFinance Holdings Limited Earnings Call

Good day and welcome to the Cm Finance Holdings limited second quarter and first half of 2023 financial results Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

Speaker 1: Good day and welcome to the CN Finance Holdings Limited second quarter and first half of 2023 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

To ask a question you May press Star then one on your Touchtone phone to withdraw from the question queue. Please press Star then two.

Speaker 1: To ask a question you may press star then one on your touch tone phone. To withdraw from the question queue, please press star then two.

Speaker 1: Please note this event is being recorded. I would now like to turn the conference over to Matthew Liu, I.R. Manager. Please go ahead. I.R. Manager. Please go ahead.

Please note. This event is being recorded I would now like to turn the conference over to Matthew Li IR manager. Please go ahead.

Thank you Kate.

Speaker 2: Good morning and evening and welcome to the C&N Finance second quarter and first half of 2023 Financial Results Conference call.

Good morning, and evening and welcome to the Senate Finance second quarter and first half I was totally funded three financial results conference call.

Speaker 2: In today's call, our director and vice president, Mr. Kenjoon, will walk us through the operating results followed by the financial results from our acting CFO , Ms. Lee. After that, we will have...

In today's call, our director and Vice President Mr. Tianjin, well walk us through the operating results followed by the financial results from our acting CFO Mr. Li.

After that we'll have a Q&A session.

Speaker 2: Before we start, I would like to remind you that this conference call contains forward-looking statements within the meeting of Section 21-E of the Securities Exchange Act of 1934 as amended.

Before we start I would like to remind you that this conference call contains forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 1934 as amended.

Speaker 2: and that's defined in the US private security litigation reform act of 1995. These forward-looking statements can be identified by terminology such as bill expects, anticipates, future, intends, plans, believe, estimates, targets, going forward, outlook, and similar statements.

And that's defined in the U S Private Securities Litigation Reform Act of 90 95.

These forward looking statements can be identified by terminology such as expects anticipates future intends plans believes estimates target going forward.

Look similar.

And similar statements.

Speaker 2: Such statements are based upon management's current expectations and current market and operating conditions.

Statements are based upon management's current expectations and current market and operating conditions.

Speaker 2: and relate to events that involve known or unknown risks, uncertainties, and other factors.

And it relates to events that involve known or unknown risks uncertainties and other factors.

Speaker 2: All of which are difficult to predict, and many of which are beyond the company's control.

All of which are difficult to predict and many of which are beyond the company's control.

Speaker 2: which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statement.

Which may cause the company's actual results performance or achievements to differ materially from those in the forward looking statements.

Speaker 2: Further information regarding this and other risks, uncertainties or factors is included in the company's follow-ins with the U.S. Securities and Exchange Commission.

Further information regarding this and other risks uncertainties or factors is included in the company's filings with the U S Securities and Exchange Commission.

Speaker 2: The company does not undertake any obligation to update any forward looking statements as a result of new information, filter events, or otherwise, except as required under law.

The company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise.

Except as required under law.

Now please welcome Mr. Andrey.

Speaker 3: Thank you for your attention.

Sure Josh was robot with US should you have my so tuned for Denmark.

Yeah.

Speaker 3: When certain mahian woman jction djes of farm genong earni arsaniian terrory to ch shambananda eans, I was Chong Ha shaho on kiang Ki qu taj twenty.

And so it came on at least on a woman's Jones and I'm talking about yourself Archie room.

Our son, Uva Digger Archie to choose somebody in the <unk>.

So what's wrong Paul Shaffer.

So when the junk Cui.

I'll touch on the wind.

Thank you for taking the time to join this conference call.

Speaker 2: Thank you for taking the time to join this conference call. We will discuss the final second quarter and first half of 2023 operating and financial results and followed by a Q&A session.

Well you just got to stay on the finance second quarter and first half of 2023 operating and financial results and followed by a Q&A session.

Speaker 3: Thank you for your attention.

So I only all of a sudden you're in DRG, two who have somebody here.

Goes to the Cushing on somebody else should be all dreams Susanna Chui syndrome.

Speaker 3: On's an entior to concil constution. Fun con social is in be toldom B and drump and the social N she show way City and's in the toom B and drump and J.

But all of a sudden.

There are two goes to the gondola sushi on phone calls so shall we usually mean P.

<unk> syndrome, but I'm just issue.

She's always city and St. Jude I mean be colby's symptom pattern too.

Speaker 3: The final tenth digit is 44 million Yuan. Un LISAers?? Moving 1.42%

Susan G. Yes. So she was subpar why are you going to let me be <unk> syndrome, whenever you buy it for sure.

Speaker 3: häng neces

On Sunday and somebody you go through the summer months on Broadway Posse.

Speaker 3: There may be homeomy sendum and refirstces on Nic show are Ian we pomy andendjump by Chief enger johandansson, by you, while you.

So let me be <unk> syndrome, but I'm just pushes on.

Nishu so little audience.

<unk> syndrome by cheap.

Geneva, and Joe Chang Sun by used to one year.

Palm Beach sudden jump I am doing well shar, sorry, Arnie all of a sudden you're.

Speaker 3: Fund ex 25 second In 2007, over the last hundred years We have decreased the trend of high- zasadrobe

Somebody young woman chicken cold Cold you know farzana, so you to which he.

Once you know you shock she's young guns.

During the second quarter, and first half of 'twenty or 'twenty three.

Speaker 2: During the second quarter and first half of 2023, the company achieved year-over-year growth in major performance indicators.

Company achieved year over year girls, the major performance indicators.

Speaker 2: In the second quarter of 2023, the total loan origination volume was 4.5 billion RMB, representing a year-on-year increase of 40-45 percent.

In the second quarter I'll tell you probably three.

Total loan origination volume was $4 5 billion RMB.

But then he a year on year increase of 45%.

Speaker 2: Total interest income was 430,000,000,000 B, representing a year on year increase of 5%.

Total interest income was 430 odd million RMB.

Representing a year on year increase of 5%.

Speaker 2: That income came in as 44 million B, representing a year on year increase of 142%. In the first half,

Net income came in at 40 formulae on B B.

Representing a year on year increase of 142%.

In the first half of 'twenty to 'twenty three.

Speaker 2: Total loans originated was 8 billion INB representing a year-on-year increase of 43%.

Total loans originated was 8 billion RMB.

Presenting a year on year increase of 43%.

Speaker 2: Total interest income was $885 million. Representing a year on your increase.

Interest income was 885 million RMB.

Robert any of your all your increase of 7%.

Speaker 2: The net income was 93 million RMB, representing a year on year growth of 52%.

Net income was 93 million RMB rubber.

Rather than here year on year growth of 52%.

Speaker 2: In the first half of 2023, we focused on achieving high quality development and accomplished the following tasks.

In the first half of 'twenty three.

We focused all achieving a high quality development and.

[noise] accomplished defaulting and tasks.

D. G suite. So you don't you have most of the photo.

Speaker 3: So this will you have more to you like you know, and time to engage you to the coaching you. Do you want to turn but songs on your ship? Judges would you have,

You know most of your life Yong Sun machine P. J, it's huge the country U D loans, which one but she wants when yoshi.

So would you in a corridor of Chicago was awful, but it doesn't cook.

Speaker 3: I expression on the outside when spraying

So on the on the Army's Shabaniyah Johnson me close what you Hope you have Moshe G will of course with foreign Punto beans would you enjoy it goes are you sure I, even though it's only outsource improvement.

Speaker 3: onas an shaommania in her mottor phone. U's sanally may be. Keep back on for on band the social P with the shangguang changein. Why first looking?

All of a sudden if somebody and you can have more of a phone call and you essentially you that maybe.

Johnson to talk on the phone you end up in this issue being treated as Shang Guang G and showroom, which then why are you doing.

First.

The continued to promote the commercial bank partnership.

Speaker 2: And since the launch of Commercial Bank Partnership model, it has gradually gained recognition of the market and our partners, given its competitive price and high-quality borrower base.

Since the launch of commercial Bank partnership model. It has gradually gained recognition of the market and our partner given this competitive price and high quality borrower base.

Speaker 2: After defending the cooperation with private banks in the second half of 2022, the commercial bank partnership started to scale and has become an important part of the company's business and source of income.

After deepening cooperation with probably bags in the second half of 'twenty to 'twenty two the commercial bank partnership started to scale and has become an important part of the company's business and source of income.

Speaker 2: In the first half of 2023, we originated loans of three billion under the commercial bank partnership, accounting for 40% of the overall loan origination volume.

In the first half of 'twenty to 'twenty three we originated along a three building under the commercial bank partnership accounting for 40% of the overall loan origination volume.

Speaker 2: and the associated night drive knew was 50 million RMB.

Andy I showed you at night revenue was 50 million RMB.

Your just your yard young so interim but being sushi and of course, if we more that you're going to see in pool.

Speaker 3: Ichigo ye-yo-jaem ze ng-in??????us

Speaker 3: Cha inerti trans Chang concil treved in ound ja ches in Chamber yo wi was the chaer go chunat humper being cheie the ginger concil tissue tring CLO and.

Do you have a bunch in there she was on Suzhou concert series. So you can volunteer with John Deere for interim, but Johann Rupert Yoko it's unclear.

Being too there are cheaper ginger.

So the tissue paging coastal Susanna she's in shovel judge at all or any of our son Uva Digger aren't you do more towards those that you Didnt need you don't feel you Archie.

Speaker 3: Judge earnie alustanian peirare to move tos entig NI IL cheyear.

Speaker 3: Clo and teaching Sham way back on Co called and poleon back on the quao. He will not showsure you went in the switching.

I was wondering did you show them, where you talked one cohort at the podium.

On the critical Tijuana Sushi went in the switching.

Speaker 3: Pounds with HAM and chun unt in the yali, being which you Chang, but that's what I year way more keep, went about ch.

Bonds with home and Joan Dillard, you're launching the Yardy Speedways Eugenia, but that's what are your way more she went up all the time.

Second.

Speaker 2: We continued to reduce funding costs and achieved a breakthrough in the scale of funds raised to support sales partners for obliged to repurpose the liquid loans.

We've continued to reduce funding costs and achieved a breakthrough in the scale films raised to support sales partners for all aged two repurchase delinquent loans.

Speaker 2: Under the current market condition, the company continued to maintain dialogue with founding partners on lowering the cost and optimizing the financing structure.

Under the current market condition. The company continued to maintain dialogue with founding partners, a lowering of the cost and optimizing the financing structure.

And made positive progress.

Speaker 2: As of the end of the second quarter of 2023, the accumulated amount of funding raised to support sale partners, this default repurchase was $700 million RMB.

As of the end of the second quarter. After only 23, the accumulated amount of funding raised to support sale partners.

Default repurchase was 700 million RMB.

Speaker 2: which has helped to ease their liquidity pressure and has provided strong support to further expand their business.

Which has helped to ease their liquidity pressure and has provided strong support to further expand their business.

Speaker 3: Different put on changenges and thirtier chy like T go reduce ent ING in the friendship G. also your saying you have a phone com.

Does that put on ginger issues in Korea.

Eli Pogo to it is a huge huge it does unions of friendship.

G who he or she was telling you you have a phone call in Washington.

Speaker 3: I was very curious as further video from communicating using the text quality of this product claims to revenue company with all the speculations of ??? firmly sought to SMS

Well me Johann until your children, but assume shingle puncture homeboy chairman the Tiguan bolt on Puget home.

Speaker 3: Of a charudge on the thir ity I will charge that King was or a jge our earning our Sun new essential hall owns the farth on type on the your we and the Ise J truning air MO the B, the Shaba also Sha.

Well my Josh on the do you deal with charter that Ingersoll doing.

It all army, our Sunday, new essential answer the phone when they usually go away by Mr. Shaw.

Joe tuning them, whatever I, Miss chabal useful or structure.

Third.

Speaker 2: We continue to refine our credit decision mechanism. Since the beginning of the year, we have optimized our bottle assessment.

We've continued to refine our credit Decisioning mechanism.

Since the beginning of the ear.

We have optimized our ballroom or assessment.

Operator: Good day, and welcome to the CNFinance Holdings Ltd. Second quarter and first half of 2023 Financial Results Conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you may press star than one on your touch tone to withdraw from the question, please press star then two. Please note this event is being recorded.

Operator: Good day and welcome to the CNFinance Holdings Ltd. Second quarter and first half of 2023 Financial Results Conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded.

Speaker 2: We analyzed influential factors of historical defaulted borrowers and started trial run of a risk control model procured from a vial established commercial bank.

Analyzed influential factors of historical defaulted borrowers in.

And it started trial right now if a risk control model procured from a vial established commercial bank.

Speaker 2: At the same time, we have strengthened the evaluation of collector value by applying the property rating system. As of 30th of 2023, the delinquency rate of loans originated by the company was approximately 15% down from 18% as of the end of 2022.

At the same time, we have strengthened the evaluation of collateral value.

By applying the property a rating system.

As of June 30 yourself, Tony is on the trade.

The delinquency rate of loans originated by the company what's.

Matthew Lou: I would now like to turn the conference over to Matthew Lou, IR manager. Please go ahead. Thank you, Kate.

Matthew Lou: I would now like to turn the conference over to Matthew Lou, IR manager. Please go ahead. Thank you Kate.

It was approximately 15% down from 18% as of the end of 2022.

Speaker 3: And CHA com and changer opportunity and side fun fions in a T may or the also, and hun a million way. So you J artis for are far with young cur because hobby turns a countryyouutoldum cary just coch huning City, changy her ton away here a father to mother proort, you know hun young chees sho ch T.

Phone churn homerun Ginger between as you you know what it's going to start.

Matthew Lou: Good morning and evening and welcome to the CNFinance Second Quarter and first half of 2023 Financial Results Conference call.

Matthew Lou: Good morning and evening and welcome to the CNFinance Second quarter and first half of 2023 Financial Results Conference call.

One is on shoes on Charlene Chu shouldn't really ultra front.

Oh sure when we're going to wait till.

Matthew Lou: In today's call, our director and vice president, Mr. Qian Jun, will walk us through the operating results followed by the financial results from our acting CFO, Ms. Lee. After that, we will have a Q&A session.

Matthew Lou: In today's call, our director and vice president, Mr. Qian Jun, will walk us through the operating results followed by the financial results from our acting CFO, Ms. Lee. After that, we will have a Q&A session.

What'd you ought to use without fault with two young coach Hugo So you will be doing so going to your children.

He is just because you shouldnt see Citi Ginger Jones, you always hear a father Chunghwa Porcino here, Joan she she's tweets Sarnia Chi Chi.

Matthew Lou: Before we start, I would like to remind you that this conference call contains forward-looking statements within the meeting of Section 21-E of the Securities Exchange Act of 1934, as amended. And that's defined in the U.S, private securities litigation reform act of 1995. This forward-looking statements can be identified by terminology, such as bill, expects, anticipates, future, intends, plans, beliefs, estimates, targets, going forward, outlook, and similar statements. Such statements are based upon management's current expectations and current market and operating conditions.

Matthew Lou: Before we start, I would like to remind you that this conference call contains forward-looking statements within the meeting of Section 21-E of the Securities Exchange Act of 1934 as amended and that's defined in the U.S, private securities litigation reform act of 1995. This forward-looking statements can be identified by terminology such as bill expects anticipates future intends plans believe estimates target going forward outlook and similar statements such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks uncertainties and other factors all of which are difficult to predict and many of which are beyond the company's control which may cause the company's actual results performance or achievements to differ materially from those in the forward-looking statements further information regarding this and other risks uncertainties or factors is included in the company's following with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise except as required under law.

Speaker 3: Thank tab in IA will, like injured heultter, try to achieve women junkes. regenerent cult in fundamentity, pong to we more truly herw ES gener, the granshe D the to bk.

Sorry, it's probably Jean Jacques Wheeler injured child trunk charge, which you woman junkies retention cogent unfortunate through which he controlled way more truly unquote wages you end up once you do it you don't you saw a vocal.

Speaker 2: Currently, there are still uncertainties associated with China's economy.

Currently there are still uncertainties associated with China's economy.

Matthew Lou: And relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding this and other risks, uncertainties, or factors, is included in the company's findings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements, as a result of new information, future events, or otherwise, except as required under law.

Speaker 2: and the downward trend of the real estate market has not been reversed. However, people believe that with China proposing to give full play the role of both aggregate and structural monetary policy too.

And the downward trend of the real estate market has not been reversed.

Or.

I'll leave that with each with China proposing to give full play off both aggregate and structural monetary policy twos.

Speaker 2: and to vigorously support scientific and technological innovations, the real economy, as well as the development of SMEs.

And to vigorously support scientific and technological innovations.

Real economy, as well as the development of Smes.

Speaker 2: China's inclusive financial success will continue to be in a peer rate of strategic opportunities.

China's inclusive financial.

We continue to be in the pure rate of strategic opportunity.

Speaker 2: against this back-top, in order to overcome the challenges and seize the opportunity.

Against the against this backdrop, you all there to overcome the challenges and seize the opportunities.

Speaker 2: We will continue to pursue high quality development by coordinating growth of scale, as a quality, and ensuring compliance are planned in groups.

But it will continue to pursue high quality development by co ordinating growth of scale asset quality and ensuring compliance.

Plastics.

D G suite using your way more.

Speaker 3: The G ICT using your quim more. We forgot qu fund that con cou were MA Jan tissue 1: one tramping treturn 20 twos due to the high H time teen functionity on clergy financial show.

I forgot I couldn't go on from there took one cool woman junk tissue one one sometimes two to three.

The truth.

He is how're you want a timesheet palm should even clergy financial show.

First.

We will focus on growth.

Jun Qian: Now, please welcome Mr. Chen Jun. Thank you for taking the time to join this conference call. We will discuss seven finance, second quarter, and first half of 2023 operating and financial results, and followed by a Q&A session.

Jun Qian: Now please welcome Mr. Qian Jun. Thank you for taking the time to join this conference call. We will discuss seven finance, second quarter and first half of 2023 operating and financial and followed by a Q&A session. [inaudible] The company officially released 5 billion RMB. The company officially released 5 billion RMB. [inaudible] In the first half of 2023, we originated loans of three billion under the commercial bank partnership, accounting for 40% of the overall loan origination volume, and the associated night drive-new was 50 million RMB.

Speaker 2: In order to reach a wider range of borrowers, we will continue to improve our product mix, launch differentiated products with low interest rates, and leverage technology to ensure that

In order to a ratio of wider range of borrowers little continue to improve our product mix launch differentiated products with low interest rates and.

And leverage technology plenty of power sales.

Speaker 3: There are twentusion: falier y GA are South andrilla almost junkey FE by year E and C and trans causing three Chang.

Dr. Ginger infusion Korea, Youll horses in Chile, while majority sheep or you will show you shouldn't she intensive coaching to change here well no I don't we don't do a whole loan called who haul cohort in Georgetown to cooling the quantity how do you deal with a single shipping.

Speaker 3: We are going to be the best of people, good-for-nothing, good-for-nothing. We are going to be the best of people, good-for-nothing, good-for-nothing.

Speaker 3: chee ch y Ji techag on U C do Chen ching hoand the yadi.

G. She yards you only pick one you shouldn't June June.

We're in the yard.

Second.

Speaker 2: with a refined credit decisioning mechanism and optimized asset quality.

Well, they'll refine credit decisioning mechanism and optimize asset quality.

Jun Qian: [inaudible] In the first half of 2023, we focused on achieving high quality development and accomplished the following tasks. [inaudible] In the first half of 2023, we originated loans of three billion under the commercial bank partnership, accounting for 40% of the overall loan origination volume, and the associated night driving was 50 million RMB. In the second half of 2023, we developed loans of three billion under the commercial bank partnership, accounting for 40% of the overall loan origination volume, accounting for 40% of the overall loan origination volume, and the associated night driving was 50 million RMB.

Speaker 2: We will continue to shift our business to core areas in first tier and new first tier cities.

They'll continue to shift our business to core areas in first here and new first tier cities.

In credit Decisioning process literally thoroughly evaluate study off borrower collateral and the sales partners introduced thus far over.

Speaker 2: In currently decision-in process, we will thoroughly evaluate the capacity of the borrower, collector and the sales partner introduced the borrower.

Speaker 2: We will better manage sales partners and evaluate collateral to reduce the delinquency rate and continue to help sales partners release pressure.

Little better manage sales partners and evaluate the collateral to reduce the delinquency rate and continue to help sales partners released pressure.

Speaker 3: De ch jah Co hou jge kchi Foran mocha, or mentioned kiva passroomcom washing or MACH Tong jac ual sign H the phonecom washing jus and talk aboutatchin arsan and the honey's try.

These are just your job or could your total judge unquote your phone on mute.

Sure, well merchandised or possibly even Washington woman. She won't Congress, usually we're showing you on the phone call and wishing each user in tow boats in Austin and the hunger of switches Chile.

Speaker 3: So SP MO numbergo child war with each other and two another Ping .panda MO here Co want change Italian G or to twentney, you for the G C per, or we jump one to shut on numbergo. You found a year since fiveire on the general curge, year B, the K on C or Nigro total slitch, year P.

So it starts with you in Washington, uncles Enchant, one with each of them.

She was on the shingle Pandora Mooching carve out or you do once in a change of the Italian gonzo. So the journey, you've put a juicy chicken paying for when were you jumped one to <expletive> Armstrong Lingo you found out of you she doesn't ship in Florida in the genome could each year.

English U K, John causal Niger poses for each year.

Chicago on paper.

Third.

Speaker 2: We will continue to invest in science and technology to empower our business.

We will continue to invest in science and technology to empower our business.

Speaker 2: We're developing a big data model to enhance our capability to evaluate followers.

We're developing a big data model to enhance our capability to evaluate borrowers.

Speaker 2: We are working on making the risk control model procured, more suitable to our business using historical long data. We have accumulated in the past two decades.

We are working on making the risk control model procured more suitable to our business using historical long data we have accumulated in the past two decades.

Speaker 2: Our developers have completed the preliminary research and are working on developing the system.

Our developers have completed the preliminary research and are working on developing the system.

Speaker 2: At the same time, we are also looking for opportunities to collaborate with or invest in other fintech companies whose advantages could be synergistical with our business.

At the same time, we're also looking for opportunities to collaborate with or invest in other fintech companies, whose advantages could be synergistic with our business.

Yes, Luke who don't judge your uncle weekends are Ya Chu, who.

Speaker 3: tobo H, hun regions her good and she gives her her herwe patsure the ST shoulder. Being able. A jumy Ho, we F here.

Homegoods Orange Hungry Jones Huh, good she's Dupont, who hook replace Windows 10 children.

Joan Hooper Holmes here.

Four.

Speaker 2: We will strengthen compliance inspections and audits to further minimize compliance risk, by means of routine inspections, case audits, and compliance training.

Clearly strengthening compliance inspections and others to further minimize compliance risks.

It means a routine inspections pass audits and compliance training.

Speaker 3: In my second year of trial the ??ic educated staff approved the purchase quite expensive.

Show Me, what you own should your integrity jokingly junior shouldn't be it with her.

You show on your friend you direct you to go there.

And that's what's wrong.

Speaker 2: Now, I would like to hand the call over to Ms. J. Lee.

Now I would like to hand, the call over to Mr. Jay Lee.

Speaker 2: who will walk you through our second quarter and first half financial results.

Who will walk you through our second quarter and first half financial results.

[noise] [noise]. Thank you no I liked.

Speaker 4: this for the second corner of page 23.

Sure and first.

He's noted currency.

Hi.

All right.

[noise] that's otherwise.

For the second quarter up 23.

Total interest and fee income.

Speaker 4: 5% 430 416 416 416 voision 5 416 7-4 3-4 2-3 at 10nm network full moisture

Piper.

Perhaps.

400.

Trade and finance.

Right right.

Speaker 4: and the 300, I don't know if you can see it. I'm sorry. I'm sorry. I already... I already... I pray that I... I pray that I... I'm sorry. I'll see. I can... I can...

The 300.

[noise] right.

Okay.

[noise] technique.

Jun Qian: In the second half of 2023, we originated loans of three billion under the commercial bank partnership, and the associated night drive-new was 50 million RMB, and the associated night drive-new was 50 million RMB, and the associated night drive-new was 50 million RMB. Second, we continued to reduce funding costs and achieved a breakthrough in the scale of funds raised to support sales partners for obliged to repart its delinquent loans. Under the current market condition, the company continued to maintain dialogue with funding partners on lowering the cost and optimizing the financing structure, and made positive progress.

Speaker 1: cour me everyone.

Pardon me everyone.

Speaker 1: Please hold on for the speaker line to be reconnected.

Please hold on for the speaker line to be reconnected.

[music].

Jun Qian: Second, we continued to reduce funding costs and achieved a breakthrough in the scale of funds raised to support sales partners for obliged to repart its delinquent loans. Under the current market condition, the company continued to maintain dialogue with funding partners on lowering the cost and optimizing the financing structure, and made positive progress. As of the end of the second quarter of 2023, the accumulated amount of funding raised to support sales partners this default repartus was 700 million RMB, which has helped to ease their liquidity pressure and has provided strong support to further expand their business.

Speaker 5: The.

Jun Qian: Third, we continued to reduce funding costs in the scale of funds raised to support sales partners, and made positive progress in the scale of funds raised to support sales partners this default repartus was 700 million RMB.

Jun Qian: As of the end of the second quarter of 2023, the accumulated amount of funding raised to support sales partners' default repartus was 700 million RMB, which has helped to ease their liquidity pressure and has provided strong support to further expand their business. [inaudible] Third, we continued to refine our credit decision mechanism. Since the beginning of the year, we have optimized our borrowers' assessment. At the same time, we have strengthened the evaluation of collector value by applying the property rating system.

Jun Qian: Third, we continued to refine our credit decision mechanism. Since the beginning of the year, we have optimized our borrowers' assessment, we analyzed influential factors of historical defaulted borrowers, and started trial run of a risk control model procured from a while established commercial bank. At the same time, we have strengthened the evaluation of collector value by applying the property rating system. As of 30th of 2023, the liquidity rate of loans originated by the company was approximately 15% down from 18% as of the end of 2022.

Speaker 6: The.

Jun Qian: As of 2030 and 2023, the liquidity rate of loans originated by the company was approximately 15% down from 18% as of the end of 2022. [inaudible] Currently there are still uncertainties associated with China's economy, and the downward trend of the real estate market has not been reversed. However, we believe that with China proposing to give full play the role of both aggregate and structural monetary policy choose, and to vigorously support scientific and technological innovations, the real economy, as well as the development of SMEs, China's inclusive financial situation will continue to be in a period of strategic opportunity.

Speaker 6: The So I get.

Jun Qian: [inaudible] Currently, there are still uncertainties associated with China's economy, and the downward trend of the real estate market has not been reversed. However, we believe that with China proposing to give full play the role of both aggregate and structural monetary policy tools, and to vigorously support scientific and technological innovations, the real economy, as well as the development of SMEs, China's inclusive financial situation will continue to be in a period of strategic opportunity.

We have the speaker line rejoined please go ahead.

Yeah.

Thank you Kate.

Speaker 2: Thank you, Kate. Sorry. Now please welcome Mr. Lee to continue with the financial results of student finance.

I'm sorry, now is at all time on Australia to continue with the financial results I'll stay on finance.

Speaker 7: Total interest and safe expenses decreased by 3% to 182 million, compared to 187 million, Plasma we do to lower finding toast from truck companies.

Total interest and fee expenses decreased by 3% to 182 million.

The year to 187 million, primarily due to lower finding toast from trucking company.

Speaker 4: That increase and the fee incomes was $250 million, but the increase of 12% from $223 million.

Net interest and fee income was 250 million, representing an increase of 12% from 223 million.

Jun Qian: Against this backdrop, in order to overcome the challenges and seize the opportunities, we will continue to pursue high quality development by coordinating growth of scale, as a quality, and ensuring compliance, our plans include. First, we will focus on growth. In order to reach a wider range of borrowers, we will continue to improve our product mix, lots differentiated products with low interest rates, and leverage technology to empower sales. [inaudible] Second, we will refine credit decision in mechanism and optimize as a quality.

Speaker 4: Net revenue under the commercial bank partnership model. Representing phase charge to commercial banks, the surveys including introducing borrowers, initial credit assessments, the third thing low in from the banks to the borrower, and providing technical assistance to the borrower and the banks.

Jun Qian: Against this backdrop, in order to overcome the challenges and seize the opportunities, we will continue to pursue high-quality development by coordinating growth of scale, as a quality, and ensuring compliance, our plans include. First, we will focus on growth. In order to reach a wider range of borrowers, we will continue to improve our product mix, launch differentiated products with low interest rates, and leverage technology to empower sales. Second, we will refine credit decision in mechanism and optimize as a quality.

Net revenue under the commercial bank partnership modal represent insane charge to a commercial bank.

Including introducing borrowers initial crowded.

With that I think loans from the banks to the borrower and providing technical assistance to the borrower and a bank.

Speaker 4: net of pay pay to third party insurance company and the commissions pay to south channels.

Oh, they paid to third party insurance company and the commissions paid to sell channels was 29 million as compared to 0.7 million. The company has been collaborating with commercial banks in 2021 and that's collaboration well skilled in the second half.

Speaker 4: was 29 million as compared to 0.7 million.

Speaker 4: The company has been collaborating with commercial banks in 1,221 and such collaboration broke and scaled in the second half of 2022.

2022.

Speaker 4: The outstanding loan principle under the commercial bank partnership was 4.5 billion as a June 30, 2023 as compared to 0.3 billion as of June 30, 2022.

The outstanding loan principal under the commercial bank partnership.

$4 5 billion to one.

32023, as compared to 0.3 billion as of June 30, 2022.

Oh aberration coast for self partners was 83 million as compared to.

Speaker 4: Collaboration codes for self-potteners was 83 million as compared to

Speaker 4: 77 million, primarily due to the increase of low-end recommended by self-potners under the commercial bank partnership.

77 million, primarily due to the increase of loans recommended by putting it under the commercial bank partnership.

Speaker 4: net increase in the seed income after collaboration cost was $100.96 million, representing an increase of 33% from $147 million per region.

Net interest and fee income as a collaboration coast one hungry.

96 million, representing an increase of 33% from 147 million.

Jun Qian: We will continue to shift our business to core areas in first-tier and new-first-tier cities. In credit decision in process, we will thoroughly evaluate the ability of borrowers, collectors, and sales partners introduced as borrowers. We will better manage sales partners and evaluate collectoral to reduce the delinquency rate and continue to help sales partners release pressure. Third, we will continue to add technology to our core areas. In the past, we developed a large-scale model.

Jun Qian: We will continue to shift our business to core areas in first tier and new first tier cities. In credit decision in process, we will thoroughly evaluate a quality of borrowers, collectible, and sales partners introduced as borrowers. We will better manage sales partners and evaluate collectible to reduce the delinquency rate and continue to help sales partners release pressure. [inaudible] Third, we will continue to invest in science and technology to empower our business.

Provision for credit can lose it.

Speaker 4: Representing provision for credit losses under the trust lending model and the expected credit losses of guarantee under the commercial bank partnership model in relation to certain financial guarantee arrangements the company entered into with a third-party guarantee

Presenting provision for credit losses, losing anger trustful lending model and we expect these credit and does it guarantee under the commercial bank partnership model in relation to the start of financial guarantee arrangement.

Company entered into with a third party guarantor.

Speaker 4: Guinas, Guinas. Guinas. Guinas. Gu?ang administrator. Gu third builder workers. Guisman workers, Guisman workers. Guisman workers, Guisman workers,

Provides guarantee stairways commercial bank partners.

Speaker 4: increased by 26% to 51 million from 68 million, primarily due to the decrease in outstanding loan principles of the liquid loans resulting from our constant oil improving credit rate control mechanism.

By 26% to 51 million from 68 million, primarily due to the decrease in outstanding principal.

Jun Qian: We hope that through the impact of the oil industry, we will continue to[inaudible] We will continue to invest in science and technology to empower our business. We are developing a big data model to enhance our capability to evaluate followers. We are working on making the risk control model procured more suitable to our business using historical loan data we have accumulated in the past two decades. Our developers have completed the preliminary research and are working on developing the system. At the same time, we are also looking for opportunities to collaborate with or invest in other fintech companies whose advantages could be synergistical with our business.

Delinquent loans, resulting from our constantly improving credit weight control can even.

Speaker 4: Realized games on skills of investment net, representing realized games from the cells of investment securities, for 12 million, as compared to 8 million. The increase was primarily due to effective fine management.

Realized gains on scale of in Washington.

Representing realized gains from the south.

I mean securities well have a million as compared to 8 million. The increase was primarily due to effective management.

Speaker 4: other gangs next. Decraced by 97%.

Other gangs net.

By 97%. So is there a point 8 million from 30 million, primarily due to the decrease of crowded right Mitch.

Speaker 4: to 0.8 million from 30 million, primarily due to the decrease of credit rates, mitigation position, profited by the self-potners as a result of our refined management on self-potners.

Mitigation position for BT by the South partners as a result of our refined management.

Jun Qian: We're developing a big data model to enhance our capability to evaluate followers. We're working on making the risk control model procured more suitable to our business using historical loan data. We have accumulated in the past two decades. Our developers have completed the preliminary research and are working on developing the system. At the same time, we're also looking for opportunities to collaborate with or invest in other FinTech companies whose advantages could be synergistical with our business. [inaudible] We will continue to work on developing the system.

Partners.

Speaker 4: Total operating expenses increased by 8% to 99 million, compared with 91 million.

Total operating expenses increased by 8% to 99 million compared with nine 1 million.

Speaker 4: InfoE, compensation and the benefits was 61 million as compared to 49 million, primarily attributed to an increase in the performance-based bonus base as a result of an increase in low-end-ovenation volume during the second quarter of 2023.

Employee compensation and benefits was 61 million.

The age to 49 million, primarily attributed to an increase in the performance space. The only thing as it reads out of an inkling loan carbonation volumes during the second quarter of 'twenty to 'twenty three.

Speaker 4: Other expenses increased by 26% to 36 million from 29 million.

Other expenses increased by 26% to 36 million from 29 million.

Speaker 4: Finally due to the increase in space pay to local channels for introducing self-potners to the company

I would like to go to the inquiry.

<unk>, two local channels or introducing south partners to the company.

Operator: [inaudible] William Gregozeski, Matthew Lou, Zhai Bin, CNFinance Holdings Ltd. William Gregozeski, Matthew Lou, Zhai Bin, CNFinance Holdings Ltd. William Gregozeski, Matthew Lou.

Speaker 4: net income increased by 142% to 44 million from 80 million for the first half of

Net income increased by 142% to 44 million.

Aiding right.

For the first half of 'twenty two 'twenty three.

Speaker 4: Follow-intrace and cease-income increased by 7% to 85 million from 827 million.

Total interest and fee income increased by 7% to eight hungry and 85 million from 827 million.

Speaker 4: Intrace and financial service space are low in increased by 5% to 830 and 7 million from 766.

Interest and financing service fee on loans increased by 5% to eight three and $7 million from 766.

Speaker 4: Parmowai attributes to the increase of average sales of sending loan principles in the first half of 2023 as compared to the same period of 2022.

Primarily attribute to the increase of average daily outstanding loan principal in the first half of 2020 is training needs.

Here too the thing theory all.

'twenty two.

Interest income charged yourself partners increased by 8% to 66 million from 56 million.

Speaker 4: interest income charge to self partners increased by 80% to 66 million from 56 million.

Speaker 4: Primarily due to the fact that the company allow more self-potners to repurchase the default loan in installments to help self-potners easier, pressure on cash flow in the first half of 2020.

Primarily due to the fact that the company allow more south partners to reap a change the default flowing in installment so have some partner easier pressure on cash flow in the first half 2023.

Well, the only trained and selling expenses decreased by 6% with three hungry and 66 million.

Speaker 4: So the one trade and state expenses decreased by 6% to 366 million from 388 million.

388 million.

Speaker 4: primarily due to lower finding codes from trust companies in the first half also 2020.

Primarily due to lower finding coast from Trust company in the first half also 'twenty two 'twenty three.

Speaker 4: Net increase and speed income was 500 and 80 millions, representing an increase of 80% from 400 and 39 million.

Net interest and fee income was five hungry and $18 million, representing an increase of 18% from four hungry and $39 million.

Speaker 4: Net revenue under the Commercial Bank Partnership model was $50 million as compared to $0.9 million.

Net revenue under the commercial bank partnership model with 15 million as compared to 0.9 million.

Operator: Pardon me, everyone. Please hold on for the speaker line to be reconnected.

Speaker 4: Collaboration codes for self-potteners increased by 6% to 166 million from 156 million in the same period of 2022.

Collaboration called for some partners increased by 6% to one Hungary, and 66 million from one hungry and 56 million in the same theory of 2020 two.

Speaker 4: formerly due to the increase of loans recommended by self partners under the commercial bank partners.

Primarily due to the increase of loan recommendation.

Lending by South partners I'm, there's a commercial bank partnership.

Speaker 4: For regions for credit loovies, increased by 136% to 130 million from 55 million.

Provision for credit and so that's increased by 136% to $130 million from 55 million Zain Kuwait was the combined effect of the increase in expected credit losses of guarantee either.

Speaker 4: The increase was the combined effect of the increase in expected credit losses of guarantee under the Commercial Bank Partnership models as the organization volume grew and scaled rapidly in the first half of 2023 and the reversal of allowance in the first quarter of 2022.

Commercial bank partnership model as the Albany, Arginase carbonation volume grow and scale rapidly in the first half of 2023 and a reversal of allowance in the first quarter of 2022 due to the fact that the company is told US the remaining loans in there.

Speaker 4: Due to the fact that the company disposed the remaining loans under the traditional association model, the third parties and the allowance of such loans was reserved. Not well.

The traditional facilitation model to third party and allowing all such a lowest wasn't reserved.

Now while this south of noise was 4 million as compared to 42 million in the things you read off 2022.

Speaker 4: was 4 million as compared to 42 million in the same period of 2022.

Speaker 4: The net law that in the first half of 2022 was parmoid a tribute to the fact that the company dispels the remaining loans under the traditional facilitation model, which were all facilitated.

Net loss in the first half of 2022 was primarily attribute to the fact that the company is power the remaining loan Oh, there's a traditional facilitation model, which were all facilitated prior to 2019 to third parties in box during the first quarter.

Operator: William Gregozeski, Matthew Lou, Simon Tan, Jay Li, Jun Qian, Christian Arnell, William Gregozeski, Matthew Lou, Simon Tan, Jay Li, Jun William Gregozeski, Matthew Lou, Simon Tan, Jay Li, Jun Qian, William Gregozeski, Matthew Lou, Simon Tan, Jay Li, Jun Qian, We have those speaker line rejoins. Please go ahead. Thank you, Kate. Sorry.

Speaker 4: prior to 2019 to start the party.

Speaker 4: in buck during the first quarter of 2022.

2022.

Other gains net.

Speaker 4: Other gains net decreased by 65% to 17 million from 48 million in the same period of 2022. Formerly due to the decrease of credit risk mitigation position for FATED by the self-potners as a result of our refined management on self-pot.

Rate by 65%.

17 million from 48 million English thinks he ran off 2022.

Primarily due to the decrease of credit risk mitigation position for <unk>.

The South partners as a result of our refined management some partner.

Total operating expenses increased by 5% to one hungry and 17 9 million compared with 171 million in the same period of 2022.

Speaker 4: So the operating expenses increased by 5% to 179 million compared with 171 million in the same period of 2022.

Speaker 4: In 4E, compensation and benefits increased by 4% to 95% from 92 million in the same period in 2022.

Employee compensation and benefits increased by 4% to 95 from 92 million existing period in 2022.

Other expenses increased by 40% to 60 million from 53 million, primarily due to the increase in fees paid to local channels for introducing partners to the company.

Speaker 4: Other expenses increased by 40% to 60 million from 63 million, primarily due to the increase in sales paid to local channels for introducing sales partners to the company. Net income in

Net income increased by.

Speaker 4: 62% to 93 million from 61 million in the same period of 2022.

This is 2% to 93 million from $61 million in the same period of <unk>.

Operator: We have those speaker line rejoined. Please go ahead. Thank you, Kate. Sorry.

'twenty two.

Speaker 4: As of June 30, 2023, the company had cash and cash equivalents and restrictive cash of 1.9 billion.

As of June 30, 2023 the company had cash and cash equivalents and restricted cash.

Jay Li: Now, please welcome Ms. Jay Li to continue with the financial results of CNFinance, primary due to lower finding cost from truck companies. Not interest and fee incomes was 250 million, representing an increase of 12% from 223 million. Net revenue under the commercial bank partnership model, representing face charge to commercial banks, the surveys including introducing borrowers, initial credit assessments, The net of state pay to third-party insurance company and the commission's pay to south channels was 29 million as compared to 0.7 million.

One 9 billion.

Speaker 4: compared with 1.8 billion as of December 31, 2022, including 1.3 billion and 1.2 billion from structured funds as of June 30, 2023 and December 31, 2022, respectively.

Compared with $1 8 billion as of December 31, 2020 two.

Lee: Total interest in state expenses decreased by 3% to 182 million, compared to 187 million, primary due to lower finding cost from truck companies. That interest and fee incomes was $250 million, representing an increase of 12% from $223 million.

One 3 billion and $1 2 billion one sector funds as of June 32023, and December 31, 2022 respectively.

Which could only be used to grant new loans and activity.

Speaker 4: which could only be used to grant new loans and activities.

Speaker 4: The delicacy ratio, excluding loan health of sales, for loans organized by the company, decreased from...

Well if you like.

Quincy ratio, excluding loans held for sale for loans originated by the company equate aiding.

Lee: Net revenue under the commercial bank partnership model, representing face charge to commercial banks, including introducing borrowers, initial credit assessments, facilitating loans from the banks to the borrower and providing technical assistance to the borrower and banks. The net of state pay to third party insurance company and the commission's pay to south channels was 29 million as compared to 0.7 million. The company has been collaborating with commercial banks in 2021 and such collaboration broke and scaled in the second half of 2022.

Speaker 4: Eiting points 3% as of December 31, 2022.

Aiding 0.3% as of December 31, 2022.

Speaker 4: So 15.2% as of June 30, 2023.

0.2% as of July 32023.

Speaker 4: The MCL RISHAL, excluding low-end powder cells.

NPL ratio, excluding loans held for sale for loans originated by the company increased from one 1% as of December 31, 22 to one 4% as of June 30, 'twenty 'twenty right.

Speaker 4: for loans organized by the company in crates from 1.1% as of December 31, 2022, to 1.4% as of June 30, 2023.

Jay Li: The company has been collaborating with commercial banks in 2021 and such collaboration broke and scaled in the second half of 2022. The outstanding alone principle under the commercial bank partnership was 4.5 billion as of 2030-2023 as compared to 0.3 billion as of 2030-2022. Collaboration codes for south partners was 83 million as compared to 77 million, primarily due to the increase of loans recommended by south partners under the commercial bank partnership. Nutting trees and seed income after collaboration codes was 196 million, representing an increase of 33% from 177 million per region for credit loses.

Well, we would like the size of Corona infection.

Speaker 4: Now we would like to start the C-N-A section. I'll read it.

Lee: The outstanding alone principle under the commercial bank partnership was 4.5 billion as of 2030-2023 as compared to 0.3 billion as of 2030-2022. Collaboration codes for south partners was 83 million as compared to 77 million, primarily due to the increase of loans recommended by south partners under the commercial bank partnership. Nutting trees and seed income after collaboration codes was 100 and 96 million, representing an increase of 33% from 177 million per region for credit loses.

Okay.

Yes.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw from the question queue. Please press Star then two.

Speaker 1: I'm going to 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 your speaker phone, please pick up your hands that before pressing the key. To withdraw from the question, Q, please press star then two.

Speaker 1: The first question is from William Gregor Zeski of Green Ridge Global. Please go ahead.

The first question is from William Blair.

Greg Rusedski of Green Ridge Global Please go ahead.

Speaker 8: Hi, I was hoping you could kind of provide an update on the demand you're seeing from the SME clients in terms of the number of SMEs trying to take out loans, the size, the type, whether it's the trust or the commercial, and how does that compare to last?

Oh, Hi, I was hoping you could kind of provide an update on the demand you're seeing from the SME clients.

In terms of the number of asks him he's trying to take out loan the size the type whether it's the trust of the commercial.

And how does that compare to last year.

Jay Li: Representing per region for credit largest loses under the trust lending model and the expected credit loses of guarantee under the commercial bank partnership model in relation to certain financial guarantee arrangements, the company entered into with a third-party guarantee, who provides guarantee surveys commercial bank partners decreased by 26% to 51 million from 68 million, primarily due to the decrease in outstanding loan principles of adequate loans resulting from our constantly improving credit risk control mechanism. Realized gains on scales of investment net, representing realized gains from the south of investment securities was 12 million as compared to 8 million.

Lee: Representing per region for credit losses under the trust lending model and the expected credit losses of guarantee under the commercial bank partnership model in relation to certain financial guarantee arrangements, the company entered into with a third party guarantee who provides guarantee surveys commercial bank partners decreased by 26% to 51 million from 68 million primarily due to the decrease in outstanding loan principles of the liquid loans resulting from our constantly improving credit risk control mechanism. Realized gains on scales of investment net, representing realized gains from the south of investment securities was 12 million as compared to 8 million.

All right.

Speaker 2: apro of teer sound, shinning potential which he had a futual shoirts beyond from the carline.

Huddle rooms here sure is a shining example, central Richie you had a huge oh sure.

So when you cut a lot.

Cause yesterday.

Essentially that when there's an assumption here that one of them for you yet since you don't want a general rule they.

Speaker 2: the number of people who applied for a loan and the amount of money they asked for a loan. And how much the trust model and the bank model are. And what are the differences between these numbers compared to last year?

You seem to have more show up in your home or for food.

In some different waterfall and how does this work.

2 million some EUR from mobile.

Speaker 3: Home nego and Le several own sociushi PO kind of J the down CHA which year through the ch the techack on ficshow she also sat J.

This whole neighborhood. She S N. Gen. Good suddenly the lenses to plug all that kind of watch them. They don't Shun show each year through the June two though.

Definitely show she also show jumbo.

Speaker 3: What are the oth should you have? And several want to imppeed the pimmiltenia way which came phar ego being.

What's sort of your Leesville should you. She opens so we don't do joint teed up we didn't know we were chimney Ahmed Pasha email.

You saw on the atone sheet.

Jay Li: The increase was primarily due to effective fine management, other gains net decreased by 97% to 0.8 million from 30 million, primarily due to the decrease of credit risk mitigation positions prohibited by the south partners as a result of our refined management on south partners. Total value by 8% to 99 million compared with 91 million. Employee compensation and benefits was 61 million as compared to 49 million, primarily a tribute to an increase in the performance-based loan policies as a result of an increase in loan organization volume during the second quarter of 2023.

Speaker 3: If you have any questions, please post them in the Q&A box.

Lee: The increase was primarily due to effective fine management, other gains net decreased by 97% to 0.8 million from 30 million, primarily due to the decrease of credit risk mitigation position, profited by the south partners as a result of our refined management and south partners. Total operating expenses increased by 8% to 99 million, compared with 91 million. Employee compensation and benefits was 61 million as compared to 49 million, primarily a tribute to an increase in the performance based bonuses as a result of an increase in low and organization volumes during the second quarter of 2023.

If you're somebody who wants us to June so long, you know and to see what I'm, saying here.

Speaker 3: You don't, do you national G 500 type part in Java? Somebody will see you by 20 years sts and sanchum power you shall.

You don't do you think there should be ginger 500, it could be probably wants to enjoy that somebody would have to see.

Tony yourselves in the Ascension Barbara it's Michelle.

Speaker 3: youofphone on the arsanian charty. Do who someal the proble tech on pie? Who, from their way you CHA by. You should Cho be. You are power, you sh.

My phone, while I'm, sorry on the outside New York.

Well if somebody in the Falkland pick one piece will soon be a way to deal with children young but they should be.

Uhm Barbara you sharp.

Speaker 3: Number on, should's Johnson be away by M chbaak wasbw. We ll talk on now with official we.

A pone b shoot syndrome somebody away by Mr. Bock with schuh.

My phone one yeah, we use tissue you quote.

Porsche the Jimmy Dean.

Speaker 3: How do these things on? Not I just the sue Co and just request.

The only thing Jonathan just tissue cool I understood.

So based on they released that does and theatre itself July we're seeing the overall loan demand.

Speaker 2: So based on the released data and figures of July , we're seeing the overall loan demand of MSE owners to decrease. So I have a set of data for you here. So the new loans in July , China's new loans in July , what

Uh huh.

M S E owners too.

Jay Li: Other expenses increased by 26% to 36 million from 29 million, primarily due to the increase in state pay to local channels for introducing south partners to the company. Net income increased by 142% to 44 million from 80 million, for the first half of 2023. Follow-in traits and a cease-income increase by 7% to 885 million from 827 million. Intrace and financial service space are lowend increased by 5% to 837 million from 766 million.

Two a decrease.

Lee: Other expenses increased by 26% to 36 million from 29 million, primarily due to the increase in state pay to local channels for introducing south partners to the company. Net income increased by 142% to 44 million from 80 million.

So I have a set of data for you here.

So the new loans in July China's new loans in July it was.

Speaker 2: 528 buildings, IMB, which has decreased 270 billion IMB as compared to the same period of last year.

528 building I M B, which has decreased 270 billion RMB as compared to the same period of last year.

Speaker 2: and the Moundem New Loans issued to the real economy was 36 billion, which has decreased.

And among them new alone was issued to the Israel economy was 36 building.

Lee: For the first half of 2023, follow-in traits and a cease-income increase by 7% to 885 million from 827 million, increase in financing service space, unloading increased by 5% to 837 million from 766 million, primary attribute to the increase of average value of sending loan principles in the first half of 2023 as compared to the same period of 2022. Interest income charge to self partners increased by 80% to 66 million from 56 million, primary due to the fact that the company allow more self partners to repurchase the default loan in installments to help self partners ease their pressure on cash wealth in the first half of 2023.

Which has decreased.

Speaker 2: by 389 buildings as compared to the same period of last year. As of since finance, so in the second quarter and the first half of 2023, our number of transactions were...

By 389 building, that's compared to the same period of last year.

Also in finance.

So in the second quarter and the first half of 'twenty to 'twenty three our number of transactions were.

62 to 69.

Speaker 2: 62,69 and 11,812.

And 11812.

Speaker 2: respectively, which representing a year on year growth of 18% and 16%.

Jay Li: Primary attributes to the increase of average sales of sending loan principles in the first half of 2023 as considered to the same period of 2022. Intrace income charge to self-partners increased by 80% to 66 million from 56 million. Primary due to the fact that the company allow more self-partners to repurchase the default loan in installments to help self-partners ease their pressure on cash wealth in the first half of 2023. Follow-in traits and cease-expenses decreased by 6% to 366 million from 388 million.

Respectively, which represents a year on year growth of plus 18% and 16%.

Speaker 2: And the long origination volume was 4.5 billion and 8 billion in the second quarter and first half of 2023 respectively, which representing a year on year growth of 45% and 43% respectively.

And the loan origination volume was 4.5 billion and 8 billion in the second quarter and first half of 2023, respectively.

It's representing a year on year growth of 45% and 43%.

Actively.

Speaker 3: From the pro the nega forum PE. So chin home MO prolongbpeie. Who the are UE to try be the social food Chang by new year? Need you how moion, how the nega Columbia social young Chang by you should cheap.

Timber told on the <expletive> for Olympias leukaemia, she room all suite.

The Columbia School, but you have to do.

John D or B Swisher switching you bought a new year.

Lee: So the one trait and state expenses decreased by 6% to 366 million from 388 million, primary due to lower finding cost from trust companies in the first half of 2023. Net increase and cease-income was 500 and 80 million, representing an increase of 80% from 400 and 39 million. Net revenue under the commercial bank partnership model was 15 million as compared to 0.9 million. Collaboration cost for self partners increased by 6% to 166 million from 156 million in the same period of 2022, primary due to the increase of loans recommending by self partners under the commercial bank partnership.

Pete.

Are you home or shoot a part of the makeup of lumpiness or should it be unchanged, but it was a cheap.

Speaker 2: The spin head is 100 times more.

There's somebody new Union seemed almost the whole bumpy so should she couldn't keep up.

Jay Li: Primary due to lower finding cost from trust companies in the first half of 2023. Net intrace and cease-income was 500 and 80 million representing an increase of 80% from 400 and 39 million. Net revenue under the commercial bank partnership model was 15 million as compared to 0.9 million. Collaboration cost for self-partners increased by 6% to 166 million from 156 million in the same period of 2022. Primary due to the increase of loans recommended by self-partners under the commercial bank partnership.

Yeah.

Speaker 2: No knew how moisture ne to on the pie, So you had sued.

What about your home or shoot me a hold on that piece.

Yes for sure.

Speaker 9: Okay, so as for the sublits from TRAS model and bank model. So in the second quarter of 2023, we originated working 101.

Okay. So as far the splits from trust motto, and then bank motto.

So in the in the second quarter I'll tell you 23 originated.

Well, if you want 101 loan.

Speaker 9: Conjections under the trust lending model and that number under the commercial bank partnership was 2,167 As for the first half of 2023 the number of transactions under trust lending model was 7,734 and that number under commercial bank partnership was 4,074

Cause vaccine under the trusted any model and that number under the chemical Bank partnership was 2167 for the first half of 293.

The number of transactions under clustered on the motto was 7734 and that number under a commercial bank partnership was 4007 hundred 74.

Lee: For regions for credit to do this increased by 136% to 130 million from 55 million. The increase was the combined effect of the increase in expected credit largest of guarantee under the commercial bank partnership models as alternate organization volume grow and scale rapidly in the first half of 2023 and a reversal of allowance in the first quarter of 2022 due to the fact that the company disposes a remaining loan under the traditional facilitation model.

Jay Li: For regions for credit losers increased by 136% to 130 million from 55 million. The increase was the combined effect of the increase in expected credit losses of guarantee under the commercial bank partnership models as the organization volume grow and steal rapidly in the first half of 2020. And a reversal of allowance in the first quarter of 2022 due to the fact that the company disposed the remaining loans under the traditional facilitation model to third parties and allowance of such loans was reserved.

Speaker 2: So I think the reason why we achieved growth when the entire market is going on downward trend.

Yeah. This is Sean she shops that you werent here a woman.

It wont be Trina <unk> syndrome and its.

So what kind of yield you're selling them.

<unk>.

So I think the reason why we okay.

If the girl with the entire market is going on a downward trend.

Speaker 9: has the two, the reason was two faults.

Has the two the the reason was twofold.

Speaker 2: At first, the average age difference relayed through the program

Do you know, it's a good tune into which you know you should easily you took a big issue.

Junior to go from one to choose through Sunday.

Speaker 9: So first of all, in the same period of 2022, our business was under the negative influence of the pandemic control and prevention. So the basic number is rather low. The other thing is, the overall rate of growth is not that high. The overall price is lower.

So first of all in the same period off of 'twenty to 'twenty two hour our business was under the negative influence of the up and down the control and prevention. So the bear this number is rather low.

Lee: The third part is in the allowance of such loans was reserved. Net Lovers on south of loans was 4 million as compared to 42 million in the same period of 2022. The net Lovers in the first half of 2022 was primary attribute to the fact that the company dispels the remaining loans under the traditional facilitation model which were all facilitated prior to 2019 to serve parties in bulk during the first quarter of 2022.

Jay Li: Net lawless on south of loans was 4 million as compared to 42 million in the same period of 2022. The net lawless in the first half of 2022 was primary attribute to the fact that the company disposed the remaining loans under the traditional facilitation model which were all facilitated prior to 2019 to third parties in bulk during the first quarter of 2022. Other gains net decreased by 65% to 17 million from 48 million in the same period of 2022.

John I'm wondering if you can go from what are we most young high it will go down he wishes on the chunky Chunky hope you Jody.

Speaker 2: No woman should a charge H soof changeship. Were time you change at the punution or may there are some need and GIR's sating much or we need also T on the P.

So a woman she should have Joshua young shows will be cheering Shaw, who was telling me the change of the pollution or was there somebody ensuring good citizens Shashi me two months ago. When you don't bullshit change on the price.

And I think the second reason enough. Our growth is that are we are still relatively small and our market share is relatively low so with our continued efforts to build build ourselves to up to a to push out more products, where you weren't able to.

Speaker 9: I think the second reason of our growth is that we are still relatively small. Our market share is relatively low. With our continued efforts to build our sales to push out more products, we were able to achieve a growth when the entire market is downworked in this work half of 2023.

Lee: Other games net decreased by 65% to 17 million from 48 million in the same period of 2022, formerly due to the decrease of credit risk mitigation position for fitted by the self-potners as a result of our refined management of self-potners. Total operating expenses increased by 5% to 179 million compared with 171 million in the same period of 2022. In 4E compensation and benefits increased by 4% to 95% from 92 million in the same period in 2022.

Jay Li: Formerly due to the decrease of credit risk mitigation position for fitted by the sound partners as a result of our refined management on sound partners. Total operating expenses increased by 5% to 179 million compared with 171 million in the same period of 2022. In 4E compensation and benefits increased by 4% to 95% from 92 million in the same period in 2022. Other expenses increased by 14% to 16 million from 63 million.

To achieve a growth when the.

The entire market is down on a downward trend in the first half of 2023.

Speaker 2: parlot chingle Gia and tangent attack on jma technology, ching and ING use of sanions.

Fair enough Zynga junior in tons, you know took one junior terrace.

Chilean Pucci get useful function.

Speaker 2: In the same period last year, the total amount of loans was about 600,000 yuan, and this year it is about 700,000 yuan.

Well, maybe a junior into Wuxi Dungeon type one pump you took went to maybe make a jingle we usually than usual walking into your number of junior you would choose you why are you doing.

Speaker 9: I supported the average tickicide. So in the same period of 2022, our average tickicide was somewhere near 600,000.

I suppose the average ticket size. So I'm in the same period I've done it will get to our average ticket size was somewhere near 600000.

Lee: Other expenses increased by 40% to 16 million from 63 million, formerly due to the increase in face paid to local channels for introducing self-potners to the company. Net income increased by 62% to 93 million from 61 million in the same period of 2022.

Speaker 9: And I has increased in 2023 to around 700,000.

And I have increased in 2023 to <unk>.

Around 700000.

Jay Li: Formerly due to the increase in face paid to local channels for introducing sound partners to the company. Net income increased by 52% to 93 million from 61 million in the same period of 2022. As of June 30, 2023, the company had cash and cash equivalence and restrictive cash of 1.9 billion compared with 1.8 billion as of December 31, 2022, including 1.3 billion and 1.2 billion from structured funds as of June 30, 2023 and December 31, 2022, respectively.

Speaker 2: bandjine do geninger assumption that we ality should talk TR a diststgical question to the do your someb?

Benjamin Theurer from June with assumption there.

The chute zone.

Christian did without you know somebody.

Speaker 2: Woman where to go two time back two country anion woman TR the Jo year would over some easian coition the h'.t has you put an oin?

Woman without some good coupons different just on Shin young untrue women should even be telling you where the Volvo Shang you shouldn't cause she shouldn't do well he chu who's used to something that you enjoy them.

Lee: As of June 30, 2023, the company had cash and cash equivalent and restricted cash of 1.9 billion compared with 1.8 billion as of December 31, 2022, including 1.3 billion and 1.2 billion from structured funds as of June 30, 2023 and December 31, 2022, respectively. Which could only be used to grant new loans and activities. The delicacy ratio, excluding loan health of self for loans organized by the company, decreased from 80.3% as of December 31, 2022. The 15.2% as of June 30, 2023, the MCL ratio, excluding loan health of self for loans organized by the company, increased from 1.1% as of December 31, 2022 to 1.4% as of June 30, 2023.

Speaker 9: So I think the rhythm behind the increase of our ticket size was mainly due to that we have since the fourth quarter of 2022 to maintain the overall asset quality. We have made a decision to shift our business to the core area of tier one and new tier one cities.

So I think the the rhythm behind the inquiries of I've already Tickicide was mainly due to that we have.

The fourth quarter, our Sunday 22, two to maintain the overall asset quality, we have made a decision to shift our business to be a core area of care won a new tier one cities.

Speaker 2: We are on the development of the culture centres.

Well then shouldn't change you enjoy sure when there is a G. T shirts, you quoted 40 times Super important maturity issue.

Jay Li: Which could only be used to grant new loans and activities. The delicacy ratio excluding loans' health of sales for loans organized by the company decreased from 80.3% as of December 31, 2022. So 15.2% as of June 30, 2023. The MCL ratio excluding loans' health of sales for loans organized by the company increased from 1.1% as of December 31, 2022 to 1.4% as of June 30, 2023.

Speaker 2: Can a esian questionhition, CA the En sure the question, the holy pro, you are in part youngger that they don't.

Turning to start you shouldn't cause you shouldn't.

What's the go to sort of cause he chooses to her young eagle bulks it shouldnt be that they do.

Something that at times she.

Speaker 9: So we still believe despite the overall downward trend and uncertainties associated with the China real estate market, the assets in the core area of Tier 1, New Tier 1, City will still maintain its value and even gradually go up.

So we still believe despite the overall downward trend and uncertainties associated with the tie in China's real estate market the assets in the core area of tier one neutral on a city little still maintain its value and even a gradually go up.

Thank you.

Yeah.

Speaker 8: Great, thank you for all that. Are you guys even with uncertainty of the economy, do you still think you'll see origination growth over the next few months?

Great. Thank you for all that are you guys, even with the uncertainty of the economy do you still think you'll see.

Operator: Now, we would like to start with doing a section of what it says.

Operator: Now, we would like to start with doing a section of what it says.

Origination growth over the remainder of the year.

Speaker 9: A town changing psuading ING the injunction in gener TR in the P of.

That don't championship was ready machine.

Operator: I 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 your speaker phone, please pick up your hands up before pressing the key. To withdraw from the question, Q, please press star then two.

Operator: I will now begin the question and answer session to ask a question you may press star then one on your touch tone.

China, India.

Alejandro could get you don't get all of them.

Operator: If you are using your speaker phone, please pick up your hands up before pressing the key to withdraw from the question queue, please press star then two.

Do you know, what my heart, Virginia under a woman into ultra.

Speaker 2: Do you know woman had to change in the and woman ANS who ating the father movie also also social teeniors. And brback one COL, a mobile soci number, either for the out show to the MO, choing woman to your.

All true just a few minutes and good luck won Paloma appeal, especially a number either for the mutual.

William Gregozeski: The first question is from William, the Gregorz Eski of Green Ridge Global. Please go ahead. Hi, I was hoping you could kind of provide an update on the demand you're seeing from the SME clients in terms of the number of SMEs trying to take out loans, the size, the type, whether it's the trust or the commercial, and how does that compare to less. Here. There are some changes.

William Gregozeski: The first question is from William, the Gregorz Eski of Green Ridge Global. Please go ahead. Hi, I was hoping you could kind of provide an update on the demand you're seeing from the SME clients in terms of the number of SMEs trying to take out loans, the size, the type, whether it's the trust or the commercial, and how does that compare to less. Here. What changes do you have? [inaudible] So, as for this blitz from TRAS model and bank model, so in the second quarter of 2023, we originated working 101 long transactions under the trust lending model and that number under the commercial bank partnership was 2,167.

As a newbie.

Maybe I'll switch gears you women portfolio.

Speaker 9: Well, first off, we're still sticking to the target we made at the beginning of the year of reaching long origination of 20 billion RMB.

Well first of all we're still sticking to your target of them made at the beginning of the year of reaching loan originations of 20 billion RMB.

Darren I don't know hoarding or whether you wish others chickens eat mobile normal woman.

Speaker 2: Inmaya, as a tool for development, for the future, with fundamental data, including scientific development ito changed the core story.

Yeah, but I'm sure the central Florida woman things, our Changzhou goat genome Central project.

Sorry, we don't have a chip on them that they're doing oh.

Speaker 2: The neither kingddo people, the people charg that you your from IA on ch sociwho changem noility. The secondly.

People, who are either pingo <unk> cool.

The two charts, you'll shut up a home phone yeah.

Some folks who are cheaper than the woody.

Secondly, illegal steel.

Speaker 9: insist on our high quality development, whether or not given in the evaluation of forward, as well as the estimation of collector value.

Insist on our a high.

Quality development.

Not giving in in devaluation of borrower as well as the estimation of the collateral value.

Speaker 3: Don't know like J ommachinian Torun youngbody does for MO Ho moian Cheng hundred FIG women man, J a figure trying have ship up even.

So when the Mary Jo Malone.

Well, Virginia and pulled on Yum by either a different part of maybe who you're eligible to Washington cause I was just wondering.

Oh, sorry, it's sugar they jump shoot yourself either.

Speaker 9: So as I mentioned, our market share is still relatively low, even though we gave, even though given the 20 building origination target.

So as I mentioned, our market share is still relatively low even though we pay even even though given the tons you're building a region they shouldn't target.

Yeah.

Thank you.

Yeah.

Speaker 8: Okay, thanks. And then last question is regarding the sales partners. The interest on the loans to the sales partners was down this quarter. Is that a sign of just less loans going into default or sales partners having more liquidity and what's kind of the, you know, how active are the corporate Options, So when we are sort of heading a down payment application S is really an investment for them because they just haven't got their own%.

Okay. Thanks, and then last question is regarding the sales partners.

The interest on the loan to the sales partners was down this quarter is that a.

A sign of just less loans going into default or sales partners, having more liquidity and what's kind of the.

You know how active are the sales partners right now.

Yeah.

Speaker 9: second question is, iPhone 5 times A fourth task is to to???

I mean, you are the ones you're sure. So I'd say, there's barbell xiaomi as shown.

Jun Qian: [inaudible] In the second quarter of 2023, we are re-regulated working 100 and 111 long-term, and we are[inaudible] So I think the rhythm behind the increase of our ticket size was mainly due to that we have since the fourth quarter of 2022 to maintain the overall As a quality, we have made a decision to shift our business to the core area of tier 1 and new tier 1 cities So we still believe despite the overall downward trend and uncertainties associated with the China's real estate market, the assets in the core area of tier 1 and new tier 1 cities will still maintain its value and even gradually go up Thank you. Great, thank you for all that.

South Florida associated maybe Alicia if they don't use a single shot down the number of days.

Oh sure shipyard mean cohorts come on board and I'm not sure. There's a bunch of it are they going to go down he was Jewish or don't take but that's when she choose Gee harsher short time and they don't.

No real change in colonial so that shot one without as much yet.

Speaker 2: Because who paren while the indertial chy ortity you need there some Tina on changes to countrytriia through the sho coend of we go that they only.

Because it appears you can go through Jimmy that Eugene.

I mean do you know.

Ginger Junior Terrace, where they shrunk.

We're going to wiggle that digital suite.

Speaker 2: A also Tri to put the chunky, the thousand inching, E cological issue on the chunk.

We also started with a chunky.

Adult use off would you we go to a degree that you saw there.

Hum.

So we see this change as a positive indicator.

Speaker 9: So we see this change as a positive indicator. So we believe that means there are less defaults, and which indicates that the overall asset quality is improving, which has caused less sales partners that have to repurchase the defaulted loan, and that has caused such number to decrease. And also, for FAS.

So we believe that means there there are less.

<unk>.

And Vicki niches that are the overall asset quality is improving which has caused less sales partners. They have to repurchase the default alone and that has caused that number to two to two degrees and also.

Speaker 2: According to France we commonly identify that the increases of COVID-19 in number of people in the development process are being continued to come to hold a strong boost

Yeah.

On a weird I find them going down it won't take a particular sogou.

Do you want loosened up.

What should your father and imagine a while she was G. G. R G or just you would either.

I think in the future. If this number is that if this number of pips going down at all it means that our business is it is getting better our.

Speaker 9: I think in the future, if this number keeps going down, it only means that our business is getting better. Means that our sales partners are doing better, are performing well.

It means dollar sales partners are doing doing better are performing awhile.

Any any okay anything else.

Okay.

Speaker 1: That concludes the question and answer session. I would like to turn the conference back over to Matthew Lou for closing remarks.

That concludes the Chin and answer session I would like to turn the conference back over to Matthew Lu for closing remarks.

Speaker 9: Thank you. And thank you again for drawing us today. If you have any other questions, please feel free to contact us.

Thank you.

Thank you again for joining us today, if you have any other questions. Please feel free to contact us.

Speaker 9: at IR at cash China dot the end. Thank you.

I, a caf, China Darcy and thank you.

Speaker 1: The conference has now concluded. Thank you for attending today's presentation. It may now be.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

William Gregozeski: As for the first half of 2023, the number of transactions under trust lending model was 7,734. And that number under commercial bank partnership was 4,774. So, I think the reason why we achieved growth when the entire market is going on downward trend has to the reason was twofold. So, first of all, in the same period of 2022, our business was under the negative influence of the pandemic control and prevention. So, the basic number is the other low.

William Gregozeski: And I think the second reason of our growth is that we are still relatively small and our market share is relatively low. So, with our continued efforts to build our sales to push out more products, we were able to achieve a growth when the entire market is going on downward trend in the first half of 2023. So, in the same period of 2022, our average ticket size was somewhere near 600,000. And I had increased in 2023 to around 700,000.

William Gregozeski: So I think the rhythm behind the increase of our ticket size was mainly due to that we have since the fourth quarter of 2022 to maintain the overall As a quality, we have made a decision to shift our business to the core area of tier one and new tier one cities. So we still believe despite the overall downward trend and uncertainties associated with China's real estate market, the assets in the core area of tier one and new tier one city will still maintain its value and even gradually go up.

William Gregozeski: Thank you. Great, thank you for all that. Are you guys even with the uncertainty of the economy? Do you still think you'll see you know, origination growth over the remainder of the year? First of all, we're still sticking to the target we made at the beginning of the year of reaching the long origination of 20 billion RMB. Secondly, we will still insist on our high quality development whether or not given in the evaluation of as well as the estimation of the collector value. So as I mentioned, our market share is still relatively low even though given the 20 billion origination target. Thank you. Okay, thanks.

Jun Qian: Are you guys even with the uncertainty of the economy? Do you still think you'll see you know, origination growth over the remainder of the year? Well, first of all, we're still sticking to the target we made at the beginning of the year of reaching the long origination of 20 billion RMB. Secondly, we will still insist on our high quality development whether or not given So as I mentioned, our market share is still relatively low even though given the 20 billion origination target. Thank you. Okay, thanks.

Jun Qian: And then last question is regarding the sales partners. The interest on the loans to the sales partners was down this quarter. Is that a sign of just less loans going into default or sales partners having more liquidity and what's kind of the, you know, how active are the sales partners right now? The second question is in your report, it seems like the profit of the sales partner is actually like this. This is the statement that the sales partner and the sales partner are just put in this debt, just to let this debt go, or to say that their overall financial situation, or some change.

William Gregozeski: And then last question is regarding the sales partners. The interest on the loans to the sales partners was down this quarter. Is that a sign of just less loans going into default, or sales partners having more liquidity, and what kind of the, you know, how active are the sales partners right now? The second question is, in your report, it seems to me that the profit flow is actually like this. This is a statement, a partner with me is just put up this debt, just to let this debt go, or to say that their[inaudible]

Jun Qian: So we see this change as a positive indicator. So we believe that means there are less defaults and which indicates that the overall asset quality is improving, which has caused less sales partners that have to repurchase the defaulted loan, and that has caused such number to decrease. And also, if you want to talk about the future of the development process, this is getting better, means that our sales partners are doing better, are performing well.

Operator: That concludes the question and answer session.

Matthew Lou: I would like to turn the conference back over to Matthew Liu for closing remarks. Thank you. And thank you again for drawing us today. If you have any other questions, please feel free to contact us at iraccashina.com. Thank you.

Operator: The conference has now concluded. Thank you for attending today's presentation.