Q1 2024 Yiren Digital Ltd Earnings Call

Okay.

Operator: Good day, and welcome to the IRINN Digital First Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode.

Unknown Attendee: Good day and welcome to the Yirend Digital first quarter, 2024 earnings 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.

Good day and welcome to the Iridium Digital first quarter 2024 earnings conference call.

All participants will be in listen only mode.

Operator: 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 the star key and then one on a touch-tone phone.

Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Unknown Attendee: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded.

Speaker Change: After today's presentation, there will be an opportunity to ask questions.

Speaker Change: To ask a question you May press Star and then one on a touchtone phone.

Speaker Change: He was draw your question. Please press Star then two.

Speaker Change: Please note the C band is being recorded.

Keyao He: I would now like to turn the conference over to Keyao He, Investor Relations Officer. Please go ahead.

Operator: To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Keyao He, Investor Relations Officer. Please go ahead.

Speaker Change: I would now like to turn the conference over to <unk> Investor Relations Officer. Please go ahead.

Keyao He: Thank you, operator. Good morning and good evening, everyone. This call features a presentation by the founder, chairman, and CEO of Credit Yif. Our CEO, Mr. Ning Tang, and our CFO, Ms. Na Mei, and our SVP, Ms. Mei Zhao will also attend the Q&A session after the prepared remarks. Before beginning, we would like to remind you that discussions during this call contain forward-looking statements made under the State Cyber Provision of the U.S. Civil Security Indication Reform Act of 1995.

Speaker Change: Thank you operator, good morning, or evening, everyone they'd coffee chats, the presentation by the founder and Oh.

Speaker Change: Oh up credit E. L E Ms Kathleen Chao and our CFO Nick <unk>.

Na Mei: Na Mei, and our FTP needs Mei Zhao with also attend the Q&A session after the prepared remark. Before beginning, we would like to remind you that the discussions during this call campaign for a looking statement made under the same kind of division of U.S. service security education reform act of 1995. That statement assesses risks, assesances, and factors, and then calls actually dealt to Zafar, mature risk, and means contained in any such statement. Studying the major regarding future risks, assessments, or factors is included in our filing with the U.S. Securities and Exchange Commission.

Speaker Change: And I'll ask me Nathan I'll go and start the Q&A session. After the prepared remarks.

Keyao He: Sub-segments are subject to risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any sub-segment. Certain information regarding filter rates and certainty of factors is included in our filing with the U.S. Security and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under the relevant laws. During the call, we will be referring to certain non-gap financial measures and certain micro-measures to review and assess our operating performance.

Speaker Change: They're probably gaining when I can remind you that discussions during this call contain forward looking statements made under the same kind of division if you ask where their securities.

Speaker Change: So at 90 95.

Speaker Change: That statements are subject to risks uncertainties.

Speaker Change: And thats it.

Speaker Change: Actual results could differ materially from those contained in any such statements.

Speaker Change: Studies are making regarding cigarette I think we all sat test as reported.

Speaker Change: Well the U S Securities and Exchange Commission.

Na Mei: Would you now undertake any obligations to update any forward-looking statement as required in the relevant roles? During the call, we will be referring to certain man-gap financial measures; a certain measure measures to review Zafar's operating performance. This man-gap financial measures are now concerned to be considered in association or, as a substitute, for the financials that may be prepared and presented in order to do a gap.

We do not undertake any obligation to update any forward looking statements.

Speaker Change: And that's the relevant laws.

Speaker Change: During the call, we'll be referring to certain non-GAAP financial my dad I've got the mic would that cause you know that our operating performance. These non-GAAP financial measures and now we've done that because they're not in isolation or as a substitute for the finances and make them a tad I presented in accordance with GAAP.

Na Mei: For his mention about his man-gap financial measures, under the continuation of gap measures, please refer to any questions.

Speaker Change: Making about his mandate and as Omega and reconciliation of GAAP measures. Please refer any questions I will.

Keyao He: These non-gap financial measures are now intended to be considered in isolation or as a substitute for the financial information prepared and presented according to US GAAP for information about these manned gas energy measures and the recommendation of gas measures.

Ning Tang: Or we now have a name for opening remarks. Thank you all for joining our earnings conference call today. We are pleased to report another solid quarter with stable growth in our top line and overall business scale during a traditional oxygen in the industry, while maintaining healthy profitability. Moreover, we are excited to announce that our AI lab initiative has begun to use early results.

Speaker Change: Now that they can make the opening remarks.

Speaker Change: Yeah.

Ning Tang: Please refer to our earnings press release. I will now pass it to Ning for opening remarks. Thank you all for joining our earnings conference call today. We are pleased to report another solid quarter, with stable growth in our top line and overall business scale during a traditional off-season in the industry while maintaining healthy profitability. Moreover, we are excited to announce that our AI lab initiative has begun to use early results, as AI integration continues to permeate all aspects of our operations before delving into our business performance.

Thank you all for joining our earnings conference call today.

Speaker Change: We are pleased to report another solid quarter.

With stable growth in our top line and the overall business scale.

Speaker Change: Traditional off season in the industry.

Well maintaining healthy profitability.

Speaker Change: Moreover, we are excited to announce that our <unk>.

Speaker Change: Lab M. D. C has begun to you early results.

Ning Tang: As AI integration continues to permeate all aspects of our operations, before delving into our business performance, I would like to highlight our recent branding upgrades. As you may know, we've re-branded our Chinese company name from Yiren Jingke to Yiren Zhi Ke. The term Jingke meaning syntax has been replaced with Zhi Ke, signifying intelligent technology or AI technology. This change underscores our commitment to ongoing technological innovation and our dedication to enhancing our customer experience. Our core mission of leveraging technology to deliver value to our clients remains unwavering.

Speaker Change: Our integration continues to permeate all aspects of our operation.

Speaker Change: Before delving into our business performance.

Ning Tang: I would like to highlight our recent branding upgrade. As you may know, we've rebranded our Chinese company name from Yiren Jingke to Yiren Zhike. The term Jinghe, meaning fintech, has been replaced by Zhike, signifying intelligent technology or AI technology.

Speaker Change: I would like to highlight our recent branding operate.

Speaker Change: As you May know, we re branded our Chinese company name from urine being caught up to you to be cool.

Speaker Change: Tom King cool.

Speaker Change: Meaning impact.

Speaker Change: It has been replaced with G cool stickney by intelligent technology or AI technology.

Ning Tang: This change... underscores our commitment to ongoing technological innovation and our dedication to enhancing our customer experience. Our core mission of leveraging technology to deliver value to our clients remains unwavering. Now, I would like to go through our business highlights for this quarter. First, regarding our financial services. The first quarter of 2024 saw static growth with total loan volume reaching RMB 11.9 billion.

Speaker Change: This change.

Speaker Change: Our commitment to ongoing technological innovation and our dedication to enhancing our customer experience.

Speaker Change: Our core mission of leveraging technology to deliver value to our clients remain.

Speaker Change: Slavery.

Ning Tang: Now I would like to go through our business highlights for this quarter. First, regarding our financial services business, the first quarter of 2024 saw a steady growth with total loan volume reaching R&B 11.9 billion, marking an 86% increase year-over-year and the fifth consecutive quarter growth. The number of borrowers experienced a slight decline to 1.35 million from 1.37 million in the quarter, influenced by seasonal factors as well as our emphasis on quality growth and a strategic shift toward a higher quality borrower segment. Additionally, our loan facilitation platform, the Yi Xiang Hua App, has seen a surge in popularity.

Ning Tang: Marking an 86% increase year over year and the fifth consecutive quarter of growth. The number of borrowers experienced a slight decline to 1.35 million from 1.37 million in the prior quarter, influenced by seasonal factors, as well as our emphasis on quality growth and a strategic shift toward a higher quality borrower, Additionally, our loan facilitation platform, the Yixianghua app, has seen a surge in popularity, is monthly active users grew to over 4.4 million in the first quarter of 2024, up from 3.5 million last quarter, representing a 26% increase.

Speaker Change: Now I would like to go through our business highlights for this quarter.

First regarding our financial services business.

The fourth quarter up 2024 saw a steady growth.

Speaker Change: With total loan volume, reaching RMB 11 9 billion.

Marketing and 86% increase year over year.

Speaker Change: Consecutive quarter growth.

Speaker Change: The number of borrowers experienced a slight decline to one five.

Speaker Change: $5 million from 1.37 million in the prior quarter.

Speaker Change: Wants to buy seasonal factors as well as our emphasis on quality growth and our strategic shift towards a higher quality borrowers.

Speaker Change: Additionally, our long supposed to be patient platform that you don't want that.

Speaker Change: Seen a surge in popularity.

Ning Tang: Its monthly active users grew to over 4.4 million in the first quarter of 2024, up from 3.5 million last quarter, representing a 26% increase. This impressive growth is due to our improved customer services and enhanced the efforts to boost customer engagement. It's also worth mentioning that our AI integration into loan facilitation business has shown concrete progress. Currently, our proprietary large language model-based intelligent voice interaction model has been applied into our telemarketing as a management and customer service, which has brought visible improvement in efficiency. For instance, our intelligent robots used for customer acquisition are now able to make over 400,000 phone calls daily.

Speaker Change: Its monthly active users grew to over $4 4 million in the fourth quarter of 2024.

Around $3 5 million last quarter.

Speaker Change: Presenting a 26% inquiries.

Ning Tang: This impressive growth is due to our improved customer services and enhanced efforts to boost customer engagement. It's also worth mentioning that our AI integration into the loan facilitation business has shown concrete progress. Currently, our proprietary large-language model-based intelligent voice interaction model has been applied to telemarketing, asset management, and customer service, which has brought visible improvements in efficiency. For instance, our intelligent robots used for customer acquisition are now able to make over 400,000 phone calls daily. Doubling the previous volume. In addition, our telemarketing team has seen an almost 40% improvement in customer conversion rate through the use of AI-powered robots. Currently, the voice recognition accuracy of our system has reached 92%.

Speaker Change: This impressive growth is due to our improved customer service.

Speaker Change: The efforts to boost customer engagement.

Speaker Change: It's also worth mentioning that our AI integration into loan facilitation business has shown complete progress.

Speaker Change: Lee our proprietary large language model based intelligent voice interaction model has been applied into our telemarketing as a management and customer service, which has brought visible improvement in efficiency.

Speaker Change: For instance, our intelligent robots used for customer acquisition are now able to make over 400000 phone calls daily.

Ning Tang: Doubling the previous model, in addition, our telemarketing team has seen almost 40% improvement in customer conversion rate through the use of AI-powered robots. Currently, the voice recognition accuracy of our system has reached 92%, and this ratio is expected to increase as we continue to fine-tune our models and train them with more data.

Speaker Change: Doubling the previous volume.

Speaker Change: In addition, our telemarketing team has seen in almost a 40% increase.

Speaker Change: In customer conversion rate through the use of AI powered the robots.

Firstly, the voice recognition accuracy of our system has reached 92%.

Ning Tang: And this ratio is expected to increase as we continue to fine-tune our models and train them with more data. Meanwhile, our international business has been showing strong momentum, with a 60% increase in total loan volume compared to the previous quarter. In the first quarter of 2024, our Philippine market achieved a milestone by surpassing RMB 10 million in monthly loan volume, showcasing exceptional growth. Additionally, we've seen a continued decline in customer acquisition costs as we continue to optimize our products and enhance our conversion rate.

Speaker Change: This ratio is expected to increase as we continue to fine tune, our models and train them with more data.

Ning Tang: Meanwhile, our international business has been showing strong momentum, with a 60% increase in total loan volume compared to the previous quarter. In the first quarter of 2024, our Philippine market achieved a milestone by surpassing R&B 10 million in monthly loan volume, showcasing exceptional growth. We have seen a continuous decline in customer acquisition costs as we continue to optimize our products and enhance our conversion rate. Specifically, the cost of acquiring borrowers in March decreased by double digits compared to January. Furthermore, our overseas operations extensively leverage AI technology. For example, our anti-fraud AI models are highly effective in detecting image fraud.

Speaker Change: Meanwhile, our international business has been showing strong momentum.

Speaker Change: With a 50% increase in total loan volume compared to the previous quarter.

Speaker Change: In the first quarter of 'twenty 'twenty four our Philippine market achieved a milestone by surpassing RMB 10 million in monthly loan volume.

Speaker Change: Showcasing exceptional growth.

Speaker Change: Additionally, we've seen a continued decline in customer acquisition costs as we continue to optimize our products and our conversion rate.

Ning Tang: Specifically, the cost of acquiring borrowers in March decreased by double digits compared to January. Furthermore, our overseas operations extensively leverage AI technology for their anti-fraud AI models are highly effective in detecting image fraud. For example, our black-and-white document detection model boasts an accuracy rate of over 97%, and our mobile screenshot detection model achieves an accuracy rate of 99%.

Speaker Change: But physically the cost to acquire new borrowers in March.

Speaker Change: Or is that by double digits compared to January.

Speaker Change: Furthermore, our overseas operations extensively leverage AI technology.

Speaker Change: For example, our Antifraud models are highly effective in detecting image brought.

Ning Tang: Our black and white document detection model, both an accuracy rate of over 97%, and our mobile screenshot detection model achieves an accuracy rate of 99%. These AI models have significantly enhanced our risk management efficiency, reducing potential fraud losses.

Speaker Change: Our black and white Bachman detach the model well and accurately.

Speaker Change: Over 797%.

And our mobile screenshots detach the motto achieved the upper is great up 19, 9%.

Ning Tang: These AI models have significantly enhanced our risk management efficiency, reducing potential fraud loss. Now, turning to asset quality, in the first quarter of 2024, the overall delinquency rate of our loan portfolio increased, with the 15 to 89-day delinquency rate rising to 3.9% due to industry-wide credit quality fluctuations.

These AI models have significantly enhanced our risk management efficiency, reducing potential fraud losses.

Ning Tang: Now, turning to asset quality. In the first quarter of 2024, the overall delinquency rate of our loan portfolio increased, with the 15 to 89 day delinquency rate rising to 3.9% due to industrialized credit quality fluctuations. However, we are actively upgrading our customer base and fine-tuning our risk control standards through AI analysis. As a result, the asset quality of new customers continues to improve. The M1 collection rate in the first quarter of 2024 has increased by 67 basis points compared to the prior quarter. As the proportion of assets from our new borrowers continues to increase, the risk indicators of our overall loan portfolio started to decline in May and continue to trend downward.

Speaker Change: Now turning to asset quality.

Speaker Change: In the first quarter of 'twenty 'twenty four the overall delinquency rates of our loan portfolio increased.

Speaker Change: With the 15 to 89 day delinquency rate rising to three 9% due to industry wide crowded quality fluctuations.

Ning Tang: However, we are actively upgrading our customer base and fine-tuning our risk control standards through AI analysis. As a result, the asset quality of new customers continues to improve. The M1 collection rate in the first quarter of 2024 increased by 67 basis points compared to the prior quarter.

Speaker Change: Well actively upgrading our customer base and the fine tuning our risk control standards through analysis.

Speaker Change: As a result.

Speaker Change: The quality of new customers continues to improve.

Speaker Change: The one collection rate in the first quarter 2024 has increased by 67 basis points compared to the prior quarter.

Ning Tang: As the proportion of assets from our new borrowers continues to increase, the risk indicators of our overall loan portfolio started to decline in May and continue to trend downward in the funding process. We've experienced a consistent decrease in cost as our network of funding partners grows. In the first quarter of 2024, our funding costs decreased by 43 basis points compared to the previous quarter, a trend we expect to continue throughout the year. Moreover, we achieved a better balance between risk management and profitability. We began engaging more in a risk-taking model, where the company takes the credit risk of the loan specification.

Speaker Change: As the proportion of ASUR.

Speaker Change: From our new borrowers continue to increase the risk indicators of our overall loan portfolio started to decline in may and continue to trend downward.

Ning Tang: On the funding front, we've experienced a consistent decrease in cost as our network of funding partners grows. In the first quarter of 2024, our funding cost decreased by 43 basis points compared to the previous quarter. A trend we expect to continue throughout the year. Moreover, to achieve a better balance between risk management and profitability, we began engaging more in a risk-taking model, where the company takes the credit risk of the loan specifically taking. Therefore, the proportion of loans and the risk-taking model is expected to grow in the coming quarters.

Speaker Change: On the funding front.

Speaker Change: It's been a consistent decrease in costs at our network of funding partners grass.

Speaker Change: In the first quarter of 'twenty 'twenty four our funding costs decreased by 43 basis points compared to the previous quarter.

Speaker Change: A trend we expect to continue throughout the year.

Speaker Change: Moreover to achieve a better balance between risk management and profitability, we began engaging more in risk taking model, whereas the company takes the credit risk of the loan specification.

Ning Tang: Therefore, the proportion of loans and the risk-taking model is expected to grow in the coming quarter. Now, regarding our insurance forklift business, recent regulatory changes have impacted the overall growth of the life insurance sector.

Speaker Change: Therefore, the proportion of loans and the risk taking model is expected to grow in the coming quarters.

Ning Tang: Now, regarding our insurance brokerage business, recent regulatory changes have impacted the overall growth of the life insurance sector. In response, our strategy emphasises pre-array type inequality over quantity, improving profitability and the shifting towards a stronger focus on property insurance. In the first quarter of 2024, our total premiums reached RMB 100 and 12 million, indicating a slight 1% decrease year-over-year. Specifically, life insurance premiums declined by 16% annually, consistent with industry trends. However, property insurance premiums increased by 19% year-over-year, generating R&B 118 million in revenue, a 12% rise compared to the previous year and marking a peak over the past two years.

Speaker Change: Now regarding our insurance brokerage business recent regulatory changes have impacted the overall growth of the life insurance sector.

Ning Tang: In response, our strategy emphasizes prioritizing quality over quantity. Improving profitability and shifting towards a stronger focus on property, In the first quarter of 2024, our total premiums reached RMB 112 million, indicating a slight 1% decrease year over year. Specifically, life insurance premiums declined by 16% annually, consistent with industry trends.

Speaker Change: In response, our strategy emphasizes quality over quantity improving profitability and the shifting towards a stronger focus on property insurance.

In the first quarter of 'twenty 'twenty four hour total premiums reached RMB 112 million, indicating a slight 1% decrease year over year.

The physically life insurance premiums declined by 16% annually.

Speaker Change: Consistent with industry trends.

Ning Tang: However, property insurance premiums increased by 19% year over year, generating RMB118 million in revenue, a 12% rise compared to the previous year and marking a peak over the past two years. Notably, we have optimized our business structure by reducing the proportion of low-margin products. By prioritizing gross profit margin as a key performance indicator for the team, we substantially enhanced the profitability of our property insurance sector.

Speaker Change: However, property insurance premiums increased by 19% year over year.

Speaker Change: Kevin reaching RMB 118 million in revenue.

Speaker Change: A 12% rise compared to the previous year and marking a peak over the past two years.

Ning Tang: Notably, we have optimized our business structure by reducing the proportion of low-market products, such as auto insurance, and focusing on liability insurance and overseas construction insurance by prioritizing growth profit margin as a key performance indicator for the team. We substantially enhanced the profitability of our property insurance segment, achieving a 5.5% improvement in average commission rates. Moreover, our product innovations and customization capabilities have been recognized within the industry, resulting in a steady stream of high-quality orders in our pipeline. During the first quarter of 2024, third-year insurance secured contracts with Xinjiang Transportation Investment Group and ranked the top among three major suppliers.

Kevin: Notably we have optimized our business structure by reducing the proportion of low margin products, such as auto insurance and the focusing our liability insurance and overseas construction in store.

Kevin: By prioritizing gross profit margin as a key performance indicator for the team will substantially enhance the profitability of our property insurance segments.

Ning Tang: Achieving a 5.5% improvement in average commission. More work, our product innovation and customization capability have been recognized within the industry, resulting in a steady stream of high-quality orders from our population. During the first quarter of 2024, He Jiang Insurance secured contracts with Xinjiang Transportation Investment Group and ranked top among its three major suppliers.

Kevin: Achieving a 5.5% improvement in average commission rates.

Kevin: Moreover, our product innovation and personalization capabilities have been recognized within the industry.

Resulting in a steady stream of high quality orders in our pipeline.

Speaker Change: During the first quarter of 2024, plus insurance secured contracts with Xinjiang transportation investment.

And the rank the top.

Speaker Change: Three major suppliers.

Ning Tang: This achievement sets a strong foundation for our future expansion in providing customized services within the construction insurance sector. In the realm of AI integration, our insurance business is actively exploring innovation, innovative applications, and currently developing our proprietary AI-driven insurance renewal reminder robot, following readers' voice training, program testing, and data segmentation, with already begun initial appointment in our operations. Additionally, we are making significant progress in customer acquisition through social media channels. In the first quarter of 2024, we come working leads from our social media efforts into R&B 2.2 million in premiums. This momentum remains strong as we enter into the second quarter.

Ning Tang: This achievement sets a strong foundation for our future expansion in providing customized services within the construction insurance sector, in the realm of AI integration. Our insurance business is actively exploring innovation, innovative applications, and currently developing our proprietary AI-driven insurance renewal reminder robot. Following rigorous voice training, program testing, and data segmentation, we've already begun initial deployment in our operation.

Speaker Change: This achievement sets a strong foundation for our future expansion in providing customized services within the construction insurance sector.

Speaker Change: In the room.

Speaker Change: Our integration.

Speaker Change: Our insurance business is actively exploring innovation innovative applications and currently developing our proprietary AI driven insurers renewal reminder, robot phone.

Speaker Change: Boeing readers was training program testing and data segmentation, we've already begun initial deployment.

Speaker Change: Accretions.

Ning Tang: Additionally, we are making significant progress in customer acquisition through social media channels. In the first quarter of 2024, we converted these from our social media efforts into RMB 2.2 million, 2.2 million in premium. This momentum remains strong as we enter the second quarter. Moving forward, we will continue to focus on strengthening our channel partnerships and overall profitability. However, we maintain a conservative attitude towards life insurance, as the regulatory impact is expected to continue in the foreseeable future for Consumption and Lifestyle Services.

Speaker Change: Additionally, we are making significant progress in customer acquisition, so social media channels in the first part of 'twenty 'twenty four we converted leads from our social media efforts into RMB two two.

Speaker Change: 2 million $2 2 million in premiums this.

Speaker Change: This momentum remains strong as we enter into the second quarter.

Ning Tang: Moving forward, we will continue to focus on strengthening our channel partnerships and overall profitability.

Speaker Change: Moving forward, we will continue to focus on strengthening our channel partnerships and the overall profitability.

Ning Tang: However, we maintain a conservative attitude toward the life insurance sector, as the regulatory impact is expected to continue in the possible future. In the consumption and lifestyle services segment, our total GMB reached R&B 625 million in the first quarter of 2024, making a remarkable 103% year-over-year increase, largely driven by our existing and expanding customer pool. As we continue to deepen penetration within our current customer base, we anticipate the growth rate of this segment will gradually normalize, aligning with our other business segments.

Speaker Change: However, we maintained a conservative attitude towards the life insurance sector as the regulatory impact is expected to continue in the foreseeable future.

Speaker Change: In the consumption and lifestyle services segment, our total GMB reached RMB 625 million in the first quarter of 'twenty 'twenty, four making a remarkable 103% year over year increase.

Ning Tang: Our total GMB reached RMB 625 million in the first quarter of 2024, making a remarkable 103% year over year increase, largely driven by our existing and expanding customer pool. As we continue to deepen penetration within our current customer base, we anticipate the growth rate of this segment will gradually normalize, aligning with our other business sectors. To wrap up my prepared remarks, I would like to reiterate our AI strategy as a foundational direction for our future development. It is structured in three comprehensive phases or three steps.

Speaker Change: Largely driven by our existing and expanding customer pool.

Speaker Change: As we continue to deepen penetration within our current customer base.

Speaker Change: Dissipate the growth rate of this segment will gradually normalize.

Speaker Change: Aligning with our other business segments.

Ning Tang: To wrap up my prepared remarks, I would like to reiterate our AI strategy as the foundational direction for our future development. It is structured in three comprehensive phases or three steps. Firstly, empowering existing business. We are leveraging AI to enhance and optimize our current operations, driving efficiencies and improving outcomes across all segments as we are currently doing. Secondly, building advanced AI capabilities and ecosystem. While we integrate AI into our existing business, we have developed many high-value tools, capabilities, and partnerships. For example, our proprietary thinking intelligent decision-making system has made over one billion decisions by the end of the first quarter of 2024 and has earned industry-wide recognition with the prestigious award.

Speaker Change: To wrap up my prepared remarks, I would like to reiterate our AI strategy.

Speaker Change: The foundational direction for our future development. It is structured in three comprehensive safety all three steps.

Ning Tang: Firstly, empowering existing businesses. We are leveraging AI to enhance and optimize our current operations. Driving Efficiencies and Improving Outcomes Across All Sectors, as we are currently doing. Secondly, building advanced AI capabilities at GecoCity. Well, we integrate AI into our existing business. We have developed many high-value tools, capabilities, and pathways. For example, our proprietary Deakin Intelligent Decision-Making System made over one billion decisions by the end of the first quarter of 2024 and has earned industry-wide recognition with a prestigious award.

Speaker Change: Firstly empowering existing business.

Speaker Change: We are leveraging AI to enhance.

Speaker Change: And optimize our current operations draw.

Speaker Change: Driving efficiencies and improving outcomes across all segments as we are currently doing.

Speaker Change: Secondly building advanced.

Ning Tang: Another example is our AI-driven intelligent customer service, which was honored with the Outstanding Solutions Award at the National Industrial Financial Collaboration Data Modeling Algorithm Competition, among others. Such tools, together with our large-language model training, fine-tuning, and optimization capabilities, can serve not just us but many other industries and enterprises as well. We are keen to explore such business opportunities. Furthermore, we are actively seeking strategic investment and partnership, and have built a healthy pipeline for execution. They can help build better access to top talent and technology.

Speaker Change: <unk> ecosystem.

Speaker Change: Well, we integrate AI into our existing business, we have developed many high value tools capabilities and partnerships.

Speaker Change: For example, our proprietary seeking intelligent decision, making system has made over 1 billion decisions by the end of the first quarter of 'twenty 'twenty four and has earned industry wide recognition with a pre TG Award.

Ning Tang: Another example is our AI-driven intelligent customer service solution, which was honored with the Outstanding Solution Award at the National Industrial Financial Collaboration Data Modeling Azulidum Competition, among others. Such tools, together with our large language model training, sign tuning and optimization, optimization capabilities, can serve not just us but many other industries and enterprises as well. We are keen to explore such business opportunities. Furthermore, we are actively seeking strategic investment and partnership opportunities, and have built a healthy pipeline for execution. They can help build better access to top talents and technologies.

Speaker Change: Another example is our AI driven intelligent customer service solution.

Which was honored with the outstanding solution award at the National Industrial potential collaboration data modeling.

Speaker Change: Competition.

Speaker Change: Among others.

Speaker Change: Such tools together with our large language model training fine tuning and optimization optimization capabilities.

Speaker Change: Sir not just us, but many other industries and enterprises as well.

Speaker Change: We are keen to explore such business opportunities.

Furthermore, we are actively seeking strategic investment and partnership opportunities and have built a healthy pipeline for execution.

Speaker Change: They can help build better access to top talent and technologies.

Ning Tang: Lastly, for the long run, long-term goal exploring future AI commercialization. We endeavor to build AI-needed businesses as our business expansion and company transformation strategy. We believe the high-value tools, capabilities, and the relationships as mentioned above serve as a solid foundation. Our AI strategy is not a sudden shift in business direction, but Azulid's side-by-side approach to upgrading and sharpening our core competitive strength that we build over the past decade of our operations.

Ning Tang: Lastly, for the long run, a long term goal. Exploring Future AI Commercialization. We endeavor to build a I need to be as our business expansion and company transformation strategy. We believe the high-value tools, capabilities, and relationships, as mentioned above, serve as a solid foundation. Our AI strategy is not a sudden shift in business direction but a solid side-by-side approach to upgrading and sharpening our core competitive strength that we've built over the past decade of our prescience.

Speaker Change: Lastly for the long run long term goal is.

Speaker Change: Exploring future AI commercialization.

Speaker Change: We endeavor to build a I need keep businesses.

Our business expansion and the company transformation strategy.

Speaker Change: We believe the high value tools capabilities and the relationships as mentioned above serve as a solid foundation.

Our AI strategy is not a sudden shift in business direction.

Speaker Change: Solid start backstop approach to upgrading and sharpening our core competitive strengths that we've built over the past decade of operations.

Ning Tang: We are excited to continue this journey without partners and shareholders to embrace a bright future.

Ning Tang: We are excited to continue this journey with our partners and shareholders to embrace a bright future. Now, I will pass it to Na, who will go through the financial performance for this quarter. Thank you, Ning, and hello everyone.

Speaker Change: We are excited to continue this journey with our partners and shareholders should embrace a bright future.

Unknown Attendee: Now, our happy to know who will go through the financial performance for this corner. Thank you, Ninh, and hello everyone. On this recall, I will only focus on our piece on the High Line. Please refer to our own release, our air guide for each other's details. First of all, we apply to deliver a solid panel with a highway margin. This call of 2024, our 21, which will be 1.4 billion, with a range of 30% increased year-over-year. In the financial service segment, our total loan facilities continue to grow slightly, which will be 11.5 times cheaper, an increase of 86% year-over-year, driving the surrounding bond, all our small and world-renowned products.

Speaker Change: Now our capital now who will go through the financial performance for this quarter.

Speaker Change: Okay.

Speaker Change: Yes.

Na Mei: On this recall, I will only focus on our key financial highlights. Please refer to our earnings release on our website for further details. First of all, we are glad to deliver a solid partner with a high rate margin. In this quarter of 2024, our total revenue reached RMB 1.4 billion, representing a 14% increase year-over-year. In the financial service segment, our total loan facilities continue to grow steadily, reaching RMB 11.5 million, an increase of 86% year-over-year, driving the strong demand for our small reward loan products.

Speaker Change: Yeah.

Speaker Change: Oh, I'm thinking and Hello, everyone I think the call Oh, I'm talking about our people as a pilot please refer to our news release.

Speaker Change: Oh gosh.

Speaker Change: Yeah.

Speaker Change: First of all what life, we believe I'm Tony Conor.

Speaker Change: With market.

Speaker Change: Okay. Thank you for a quick one.

Speaker Change: One 4 billion.

Speaker Change: Okay.

Speaker Change: Yeah, Oh, yeah.

Speaker Change: Secondly, our total loan facility.

Speaker Change: Finally, let me be alone quite fine Hi, Neely.

Speaker Change: It can take two point year over here try buy junk inbound all all normal wedding don't put out.

Na Mei: Revenue from the financial service business increased 53% year-over-year to RMB 738.1 million. In the insurance sector, our gross rental promise is RMB 912 million, representing a decrease of 1% year-over-year. As mentioned by Ning earlier, the decline in our promise is leading to a substantial drop in our life insurance sales, followed by the local registration change, which was occupied by an increase in our property insurance products. Consequently, the portion of our property insurance in our overall primary needs has increased sharply.

Unknown Attendee: We have a new financial service business, due to the 53% or year-old year, to be 1,730, and the 1838, 1.0 billion. This is a short sector, all costs 1.0 billion, which will be 900,000 million, representing a decrease of 1% of year-old year. As mentioned by you earlier, the deep-clean E.R. planet is living during an essential drop in our life, in short sales, falling by the local reputation change, which will also provide an increase of our property insurance products. Consequently, the portion of our property insurance in our overall primary needs increased sharply, compared to our life insurance products.

Speaker Change: So it's difficult to say.

Speaker Change: Oh, Yeah, Oh, yeah.

Speaker Change: Welcome to the MBIA, Inc.

Speaker Change: Eight one points.

Speaker Change: So the fact that Oh quite random format.

Speaker Change: Okay.

Speaker Change: Representing a decrease of.

Speaker Change: A 1% yeah Oh yeah.

Listen to mine only the deepening of our planet.

Speaker Change: So I think sort of lumpy.

Speaker Change: Falling by the local regulation change.

Speaker Change: All right.

Speaker Change: Our carpet in the fourth quarter Consequently propulsion.

Speaker Change: Okay interesting.

Speaker Change: Crime and quite shocking.

Speaker Change: Our life insurance.

Unknown Attendee: The added commuter rate is the property insurance sector slower, resulting in a 36% year-old year decrease in the revenue from our insurance workers' segment, to bring the 100 and the 25-meters of this culture. However, going forward, it will also impact our life insurance business to fairly rebound, in line with Maxine Recovery, but the revenue insurance rate is expected to persist in the short term. In the consumption, as left-held segment, the total loan rate for this culture, which will be 600 and the 25-meters, representing a increase of 100 and the 3% year-old year, drive by our large consumer base.

Speaker Change: I'll make a comment right.

Speaker Change: The interest that lower is that a simplistic pro forma yeah Oh.

Na Mei: Compared to our life insurance products, the average commission rate in the property insurance sector is lower, resulting in a 36% year-over-year decrease in the revenue from our insurance worker segment to RMB 125 million for this quarter.

Speaker Change: Oh, yes, you're quite right.

Speaker Change: Truck brokerage.

So going to 100, and they're trying to find out if you take a call to.

Na Mei: However, going forward, it will also impact our life insurance business to greatly rebound in line with marketing recovery, but the revenue increase will be tied to the system in the short term. In the consumption and lifestyle segment, the total GMV for this quarter reached RMB 625 million, representing an increase of 103% year-over-year, driven by our large consumer base. As mentioned previously, this segment was launched a year ago to serve our users across all our business lines.

Speaker Change: So all of that going forward.

Speaker Change: Also you've had outlined truck business to calling the bottom line with Mack Cali.

Speaker Change: Okay.

Speaker Change: We had a purpose.

Speaker Change: Cell phone with a car.

Speaker Change: Samsung is left out there.

Speaker Change: The total general partner with 625 million represents.

100%.

Speaker Change: Oh, yeah, sorry by our large customer base.

Unknown Attendee: As mentioned previously, this segment is long to the year-old to serve our user across our our business line. Therefore, as though it's penetration growth, this strategy area of this segment goes through to align with our business as includes in the number of combined consumers across the world's business segments. On the expense side, sales and the market spend equal to 161 per cent year-old year to the end of the 200 and 75 million. This growth will travel drive by the right to the expectation of our financial service segments, and it will impact our marketing efforts during and upon new high-quality customers, as will continue to optimize our customer risk of maximum risk.

Speaker Change: It's probably quite a bit with lunch that Oh Oh.

Speaker Change: Our yogurt across all our business lines.

Na Mei: Therefore, as soon as penetration grows, it's time the GMV of this segment goes through to align with our business as the number of our combined consumers across our business segments increases. On the expense side, sales and marketing expense increased 161% year-over-year to RMB 275 million.

Speaker Change: Therefore, and.

Speaker Change: Penetration called.

Speaker Change: T I D.

Mike: Mike one throat to align with our business.

Speaker Change: I didn't quite get it.

Speaker Change: Remember, our combined consumer cross border business.

Speaker Change: Oh, that's fine that's on the market.

Speaker Change: Quite to 151% year over year cause anything at 475 million in his quote was probably try to find the right ticket.

Na Mei: This growth was partly driven by the rapid expansion of our financial service segment and enhanced marketing efforts to gain and acquire new high-quality customers as we continue to optimize our customer risk mix. Research and development expense increased 39% year-over-year to RMB 41 million due to our continuous AI upgrades and technological innovation. Our general under-service cost increased 17% year-over-year to RMB 233 million.

Speaker Change: Completion of our financial services segment.

Speaker Change: Our marketing efforts.

Speaker Change: Hi colleagues.

Speaker Change: The countries outside our customer base.

Unknown Attendee: Research and development is spent in pretty much the same year-old year to the end of the 31 million due to all continuous marketing AI efforts and the technological innovation. On similar underserved costs includes the 70 percent year-old year to the end of the 200 and the 35 million. The growth determine if contribute to our high channel levels in the product insurance business compared to our large insurance. As the portion of product insurance in prime is in place, there is a common response in terms of channel settlement costs. Moreover, our G and A cost in place by 35 percent year-old year to end the 84 million.

Research and development.

Speaker Change #100: Nike brand at year over year to 91 million.

Speaker Change #101: Our country was widening.

Speaker Change #101: And that technology innovation aren't going to understand it.

Yeah, Oh, yeah cause any core.

Speaker Change #101: <unk> hundred.

Na Mei: The growth primarily contributes to our high channel base in the private insurance business compared to our large insurance. As a portion of the private insurance primary increase, there is a corresponding increase in China's settlement cost. Moreover, our G&A cost increased by 32% year-over-year to RMB 84 million, probably due to necessary personal adjustments, which include adding more personal staff and applying additional incentives.

Speaker Change #101: King.

Speaker Change #101: It's firmly in place with the entre.

Our high turnover.

Speaker Change #102: No problem to ensure compliance.

Speaker Change #103: I'm trying to I'm not sure I.

Speaker Change #104: At the close of parking sorry pardon me okay.

Speaker Change #105: So call it sounds like the kind of person.

Speaker Change #106: My Oh, Okay in April.

Speaker Change #106: Right.

Speaker Change #107: Yeah, Oh, yeah, that's it for me and I'm proud of and it gives them that their.

Unknown Attendee: Probably due to next year's personal adjustment, which includes an amount of customer staff and client additional incentives. The line for control assets and the receivable was $120,000 for millions of the culture with a range of $130,000 per cent of year-old year, million due to the growth in our own My ore, as you mentioned earlier, seems to include the violence between our oil risk management costs and the profitability will have started to gradually increase the low water facilities under the risk of taking model. Beautiful, we have a new argument prevailing for computational ability to distract the population under this model.

Speaker Change #108: Firstly on captain.

Speaker Change #108: No.

Speaker Change #109: Additionally capital.

Na Mei: The allowance for contract assets and receivables was RMB 102 billion for the quarter, representing a 150% year-over-year increase, mainly due to the growth in our loan volume facility. Furthermore, as you mentioned earlier, in order to improve the balance between our overall risk management costs and profitability, we have started to gradually increase the loan volume facility under the risk-taking model. Therefore, we have added a new item named Provision for Contingent Liability to reflect the provision under this model.

Speaker Change #110: Well I think all of its available or can be 100 and cool.

Speaker Change #111: Well, maybe it's worth a culture, that's I think a 150% year over year, mainly due to the growth.

Speaker Change #111: Philippe.

Speaker Change #112: Or you mentioned early.

Speaker Change #113: Instead the pilot.

Speaker Change #113: And the profitability that has started to fall gradually Quaker no warning facility.

Speaker Change #114: The kitchen model therefore.

Speaker Change #114: Therefore, we have.

Speaker Change #114: And then prevailing in the country the liability or the fact that prevail in this matter.

Unknown Attendee: Additionally, that's the low water under this model growth. It's time to upgrade increase in our livelihood from our down-to-through rates in the common cultures. Also about the line, we continue to deal with a strong profit of R&D 480 and 86 million discolters, representing a 14-inch increase from the prior year. The general about R&D 300 and 32 million net cash from our 30-inch discolters, an increase of 52% from prior year. On the balance sheet side, our balance sheet will be about with R&D 4209 dealing with cash and the cash equivalent as of the end of this culture.

Speaker Change #114: Additionally, the lower volume.

Na Mei: Additionally, as the loan volume under this model grows, we expect a great increase in our revenue from our guarantee service in the coming quarters. On the bottom line, we continue to deliver a strong profit of RMB 486 million this quarter, representing a 14% increase from the prior year. We generated about RMB 632 million in net cash while operating this quarter, an increase of 62% from the prior year on the Balanchine side. Our balance sheet remains robust with RMB 5.9 billion in cash and cash equivalents as of the end of this quarter.

Aldo well pad.

Speaker Change #115: And Ah graduating class a lab work by all accounts are still it is a common culture.

Speaker Change #116: I'll drop off the line they contributed to our strong profit 400 gig.

Speaker Change #115: Okay.

Speaker Change #117: But you know quite frankly, probably yeah in general about 600 and cooking.

Speaker Change #118: Cash wise.

Speaker Change #119: Okay. Thanks.

Peter: Thanks Peter.

Peter: On the balance sheet side.

Speaker Change #121: Our balance sheet remains robust with games.

Speaker Change #122: The final question I didn't even touch on the cash equivalent as of the end of the call today.

Na Mei: We already have $2.1 million to perform our share purchase in public marketing for the first quarter of this year. We are aiming to increase the total deployment for the share purchase program to $9.5 million by the end of March 2024. We will continue to do our share repurchase and maintain confidence in the fundamental direction of our company's business and its growth potential. Based on our assessment of the current business and the marketing condition, we expect our revenue for the second quarter this year to stand before RMB 1.4 billion to RMB 1.6 billion with a heavily net profit margin. This reflects our current and preliminary view, which is subject to change and uncertainty.

Unknown Attendee: We have already $2.1 million to perform our share approaches in the parking matching for the first quarter of this year. They are our total deployment for the share service program to $5.5 million as the end of March 2024. We will continue to do our share approaches and maintain confidence in the fundamental direction of our company business and its growth potential.

Speaker Change #123: I already told you one really that dollar tree pro forma our shot approaches.

The market for the fourth quarter I think yeah.

Speaker Change #123: Total department took a shot at it from a program to die quantifying the exact dollar at the end of March of 'twenty 'twenty four will contribute to our Charlotte corporate and then made some confidence in the fundamental direction of our company and its growth potential.

Unknown Attendee: This is our assignment of current business and the marketing condition is to expand our running for the second culture this year to stand before R&D 1.4 billion to R&D 1.6 billion. We will have the next part of the model. This will first occur on the preliminary wheel, which will project change and uncertainty. With that, we come to our remarks. A later now, we are open for questions. Thank you.

Speaker Change #123: It's all a seismic of consciousness in the marketing contribution is kind of running them for the second quarter cause here.

Before I get into the $1 4 billion 21, 16 is having a nice profit margin.

Speaker Change #124: Uh huh.

Speaker Change #125: Well it just forgot to change and I'm 30 days is that the council of our remarks.

Operator: With that, we conclude our remarks. Operator, now we are open to questions. Thank you, and thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone.

Operator, well now open for questions. Thank you.

Unknown Attendee: And thank you. We will now begin the question in the answer session. To ask a question, you may press star, then one on your touch 10 fan. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star, then two. At this time, we will pause for a moment to assemble our roster.

Speaker Change #126: And thank you.

We will now begin the question and answer session to ask a question you May Press Star then one on your touch 10, Chad if.

Operator: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause for a moment to assemble our roster. Our first question today will come from Matthew Larson of Syncadia. Please go ahead. Good evening, you all.

Speaker Change #127: If you're using a speaker phone please pick up your handset before pressing the keys.

Speaker Change #128: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker Change #128: At this time, we will pause for a moment to assemble our roster.

Matthew Larson: Our first question today will come from Matthew Larson.

Speaker Change #128: Our first class.

Speaker Change #128: 10 today will come from Matthew Larson I think Katie I. Please go ahead.

Matthew Larson: A thin Katie, please go ahead. Good evening. You all. Thanks for taking my call. Mr. Kebble, a comment. Another good quarter. You guys generated quite a bit of cash in earnings, and you do quarter after quarter. And I have been involved in and out of your company's stock since you went public. I have mentioned that in previous conference calls. And I have done quite well over the last year, so stocks have done very well. I am hoping it can break out to kind of a more mainstream. Price level. Working against you is the, you know, just lack of interest in Chinese securities here in the United States.

Matthew Lewton Larson: Thanks for taking my call. I have just a couple of comments. I mean, another good quarter; you guys generate quite a bit of cash and earnings, and you do it quarter after quarter. And I've been involved in and out of your companies, and your stock since you went public; I mentioned that in previous conference calls. And I've done quite well over the last year. So the stock's done very well. I'm hoping it can break out at kind of a more mainstream price level.

Speaker Change #129: Oh good evening you all thanks for taking my call.

Just a couple of comments I mean, another good quarter, you guys generate quite.

Speaker Change #129: Quite a bit of cash and earnings and you do quarter after quarter.

And I've been involved in and out of Europe.

Speaker Change #129: Company's stock since you went public I've mentioned that in previous conference calls.

Speaker Change #130: And I've done quite well over the last year or so are the stock's done very well.

Speaker Change #130: I'm, hoping you can break out your kind of a more mainstream.

Matthew Lewton Larson: Working against you is, you know, just the lack of interest in Chinese. [inaudible] Securities here in the United States, the local markets, the Hang Seng and Shanghai markets have not done well. So you're kind of got the wind in your face, so to speak, versus, you know, the wind at your back, but, And I will... give you guys tremendous credit for improving your public relations over the last few months. You've put out updates on your business.

Speaker Change #131: The price level.

Speaker Change #132: Is it.

Speaker Change #133: Working against you is the you know just the lack of interest in Chinese.

Speaker Change #132: Chinese.

Speaker Change #132: Securities here in the United States.

Matthew Larson: You know, your local markets that hang sang and Shanghai markets have not done well. So you're kind of got the wind in your face, so to speak, versus you know, the wind in your back. But, and I will give you guys tremendous credit for improving your public relations over the last few months. You've put out updates on your business, and you've used, you know, catch words like artificial intelligence quite often, which I think are accurate. I, your company has used algorithms and some level of AI for years to determine your lending activities and acquiring new customers and things like that.

Speaker Change #132: You know the.

Speaker Change #134: Your local markets for hang Seng and.

Speaker Change #134: Shanghai markets are not done well, so you're kind of got the wind in your face so to speak versus.

Speaker Change #134: You know the wind at your back but.

Speaker Change #134: And I won't.

Speaker Change #134: Give you guys is tremendous credit for improving your public relations.

Speaker Change #134: Over the last few months you've put out.

Speaker Change #134: Updates on your business and you've used.

Matthew Lewton Larson: And you've used, you know, catchwords like artificial intelligence quite often, which I think are accurate. All right. Your company has used algorithms and some level of AI for years to determine your lending activities and acquiring new customers and things like that.

Speaker Change #135: Catchwords like artificial intelligence quite often which I think are accurate alright.

Speaker Change #135: The company has used algorithms and some level of.

Speaker Change #135: For years to determine your lending activities and.

Speaker Change #136: And acquiring new customers and things like that so it's quite legitimate and I'm I'm glad that you are highlighting.

Matthew Lewton Larson: So it's quite legitimate, and I'm glad that you are highlighting that sort of technology that your company has used for years. You know, it hasn't helped the stock recently, but your stock has remained elevated, and I'm hoping the next move gets us significantly higher. So thank you, all right. However, an area that we've talked about. One other thing, your earnings announcement today was a lot better. It was broken out in two or three parts; you're comparing it to the year before. It wasn't just a one-line thing.

Matthew Larson: So it's quite legitimate, and I'm glad that you are highlighting that sort of technology that your company has used for years. And, you know, it hasn't helped the suck recently, but your stock has remained elevated, and I'm hoping the next move, you know, gets us significantly higher. So thank you.

Speaker Change #137: That's <unk>.

Short of technology that your company has used for years.

Speaker Change #138: And you know it hasn't helped us like recently, but your stock has remained elevated and I'm, hoping the next move you know gets a significantly higher.

Speaker Change #139: So thank you alright, however are an area that we've talked about it.

Matthew Larson: All right. However, an area that we've talked about of one other thing. I'll say your earnings announcement today was a lot better. It was broken out in two or three parts, comparing it from the year before. It wasn't just a one-line thing. So whoever you're using to get your news out is a great improvement.

One other thing I'll say your earnings are down, but today was a lot better it was broken out in two or three parts, you're comparing it from the year before it wasn't just a one line thing so whoever you're using to get your news out is a great improvement.

Matthew Lewton Larson: So whoever you're using to get your news out is a great improvement. But we've talked in the past about maybe instituting a dividend. Many of your peers that are listed in the United States do have a significant dividend.

Matthew Larson: But we've talked in the past about maybe instituting a dividend. Many of your peers that are listed in the United States do have a significant dividend. QFIN, QIFO, if I'm pronouncing it correctly, or XYF, just announced a tender offer and a dividend. And then G-G-I-N, J-F-I-N, just announced another large dividend. So they're returning, you know, their returning cash to their investors. And, like your company, they traded a very low multiple between one and two times earnings. I wish you would do that. You have a huge amount of cash on your balance sheet. You know, 30 or 40 million presumably wouldn't change your business model or your growth prospects.

But we've talked in the past about maybe instituting a dividend.

Speaker Change #139: Many of your peers.

Speaker Change #139: That are listed in the United States do have a significant dividend.

Matthew Lewton Larson: QFIN, QIFO, if I'm pronouncing it correctly, or XYF, just announced a tender offer and a dividend. And then GIN, JFIN, just announced another large dividend. So they're returning cash to their investors. And like your company, they traded at a very low multiple, between 1 and 2 times earnings. I wish you would do that. You have a huge amount of cash on your balance sheet.

Speaker Change #140: Q F I and <unk>, if I'm pronouncing it correctly or X y F.

Speaker Change #141: Just announced a tender offer and the dividend.

And then G. G I, yeah, J F I N just announced another large dividend.

Speaker Change #142: So they are returning.

Speaker Change #143: But they're there.

Speaker Change #143: They are returning cash to their investors and like your company. They trade at a very low multiple between one and two times earnings I wish you would do that you have a few.

Speaker Change #144: Huge amount of cash on your balance sheet.

Speaker Change #145: You know 30 or 40 billion.

Matthew Lewton Larson: Presumably, it wouldn't change your business model or your growth prospects, but that would really be great for shareholders, and it could very well raise the value of your stock several times that amount. So I continue with that suggestion. Your peer group is doing it.

Speaker Change #145: Presumably wouldn't change your business model.

Speaker Change #146: Or your growth prospects, but that would really be great for shareholders and it could very well raise the value of your stock you know several times that about.

Matthew Larson: But that would really be great for shareholders. And it could very well raise the value of your stock several times that amount. So I continue with that suggestion. Your peer group is doing it. And then also your share buyback is still pretty small.

Speaker Change #147: So I continue with that suggestion, you're your peer group is doing it and.

Matthew Lewton Larson: And also, your share buyback is still pretty small. But outside of that, thank you for another good quarter. I have confidence in your company, and if more interest in the Chinese stock markets is created here, I think your stock could do well. So I'll leave it there. Thank you.

Speaker Change #147: And then also your share buyback is still pretty small.

Matthew Larson: But outside of that, thank you for another good quarter. I have confidence in your company. And if more interested in the Chinese stock markets, it's created here. I think your stock could do well.

But outside of that thank you for another good quarter I, you know I you know what.

Speaker Change #147: I have confidence in your company and if I'm more interested in the Chinese stock markets are.

Speaker Change #147: You know as created here you know I I figure start to do well.

Matthew Larson: So I'll leave it there. Thank you.

Speaker Change #148: So I'll leave it there thank you.

Ning Tang: Thank you, Matthew. A couple of thoughts following your very nice remarks. One is that, indeed, we have improved the way we communicate with the public. Thank you and some other shareholder friends, making this great suggestion. And we will continue to do that. And certainly, artificial intelligence is for us very, very real. And this time is the new new thing and is the real thing. So, for all the industries and companies, we have strong conviction that we are well positioned to capture this great change element of opportunity. So, we have already seen very exciting initial results as we embrace AI strategy.

Ning Tang: A couple of thoughts following your very nice remarks. One is that, indeed, we have improved the way we communicate with the public. Thank you. And some other shareholder friends, yeah, made this great suggestion and will continue to do that. And secondly, artificial intelligence is, for us, very, very real. Yeah. And this time it's the new, new, new thing. And it's the real thing.

Thank you Matthew a couple of yeah thoughts are following your yeah very nice remarks, yeah. One is that Ah. Indeed, yeah, we we have improved.

Speaker Change #149: I like the way we communicate.

Speaker Change #149: With the public yeah.

Speaker Change #149: And so I'm not sure.

Speaker Change #150: Right, Yeah, making this a great suggestion and all continue to yeah.

Speaker Change #150: Do that.

Ning Tang: Yeah. So for all the industries, and the companies, Yeah, and we have that we will, we are well positioned to have this great change element and opportunity. [inaudible] Yeah, we've already seen a very exciting initial. Unknown Attendee, Mei Zhao, Na Mei, Ning Tang, Lydia Yu, Yirendai, Yirendai, Yirendai, AI strategy.

Speaker Change #150: And secondly, our artificial intelligence.

Speaker Change #151: It is for us very very real yeah, and this time that is the new new new King and its the real key yeah. So oh.

Speaker Change #151: For all of the industries and companies, Yeah, and Oh, we have.

Strong conviction that Oh, we will Oh, we are well positioned.

Speaker Change #152: To capture this great.

Great change element opportunity so.

Speaker Change #152: We already see like a very exciting initial.

Speaker Change #152: Yeah.

Speaker Change #152: As we embrace AI strategy, yeah. So we will continue doing that and also talking about that yeah and.

Ning Tang: Yeah, so we will continue doing that and also talking about it. And thirdly, regarding the dividend, yeah, suggestion. While we continue to believe share buyback and investing into the future, like AI, can best serve our shareholders, we hear you and other shareholder friends regarding this issue, are further evaluating this issue, and this is where we are, and we will report more as there's additional progress. Yeah. And it is our intention to really, yeah, serve our shareholders with great value creation in many different ways. Yes. And I appreciate the suggestion that you and some other shareholder friends have given us. And lastly, regarding, yeah, China.

Ning Tang: So, we will continue doing that and also talking about that.

Ning Tang: And certainly, regarding the dividend suggestion, while we continue to be the shared buyback and investing into the future like AI can best serve our shareholders. We hear you and other shareholder friends regarding this issue. And we are evaluating further evaluating this issue. And this is where we are, and we will report more as there's additional progress. And it is our intention to really serve our shareholders with great value creation in many different ways. Yes, and I appreciate the suggestion. You and some other shareholder friends have given us.

Speaker Change #153: Thirdly regarding.

Speaker Change #153: The dividend yeah, a suggestion.

Speaker Change #153: While we continue to be a share buyback and are investing into the future like.

Speaker Change #153: Hi.

Speaker Change #154: Can a basket serve our shareholders.

Speaker Change #155: We hear you.

Speaker Change #156: Yeah Oh.

Speaker Change #156: Right Yeah.

Speaker Change #156: Regarding this issue and Oh, we all are.

Evaluating further.

Speaker Change #157: Both are evaluating yeah.

Speaker Change #157: Issue and yeah.

Speaker Change #157: If this is a where we are.

Speaker Change #157: Yeah, we will.

Speaker Change #158: Report more Oh, there is a.

Speaker Change #158: Additional progress yeah, and it is our.

Speaker Change #158: And passion to really yeah, so being serve our shareholders with great care.

Speaker Change #158: Value creation in many different ways, yes.

Speaker Change #159: I appreciate that.

Speaker Change #160: A suggestion.

Speaker Change #161: You and.

Some other.

Speaker Change #162: Yeah hold on Friday.

Speaker Change #163: Given us and the lastly regarding yeah, China. So indeed, yes, there is.

Ning Tang: And lastly, regarding China, indeed, there is this impact, but we are also growing internationally. And so, yes, and we are in more markets. So, the business is more balanced, and so the story is not just a China story, but a global story; it's not just a fintech story, but an AI story.

Ning Tang: So indeed, yeah, there is this impact that we are also growing internationally. And so, yeah, and we are in more markets. So the business is more balanced.

Speaker Change #163: Impact but.

Speaker Change #164: We are also growing internationally and so yeah, and but we are in more markets. So.

Speaker Change #164: The business that is more balanced and so the story is not that good.

Ning Tang: And so the story is not just a China story, but a global story. It's not just a FinTech story, but an AI story. So I think what we are doing is, really, in terms of a business strategy, transforming the company into an AI player. And in terms of a capital market strategy, we are re-categorizing the company, you might say. And I hope by doing this well for some time, we can best serve our shareholders, including ourselves. Thank you. Our next question today will come from Marco Zhang of DeLonghiu Research. Please go ahead.

Speaker Change #164: China story.

Speaker Change #164: A global story is not just a fintech story.

Our AI story, so I think what we are doing is really in terms of our business strategy transforming the company to an AI player and in terms of our capital market strategy, we are like a REIT category.

Ning Tang: So, I think what we are doing is really, in terms of business strategy, transforming the company to an AI player, and in terms of capital market strategy, we are like recategorizing the company, you may say. And I hope by doing this, yeah, well, for some time, yeah, we can best serve our shareholders, including ourselves. Thank you.

Speaker Change #164: The company.

You may say and I hope by doing Oh.

Yeah, Oh Wow for some.

Speaker Change #165: Some time, yeah, we can now pass to serve our shareholders including ourselves.

Marco Zhang: Our next question today will come from Marco Zhang of DeLongu Research. Please go ahead. Hi, thanks Management for taking my question. This is Marco from DeLongu Research, so following Mr. Tao's answer to Matthew's question earlier, not just a Chinese story. So my first question is about your international business. So, as you mentioned in your last earnings call, you have a pretty big plan for expansion, international expansion this year, into Southeast Asia, Latin America, and also Mexico.

Speaker Change #165: Our next question today will come from Mark Armstrong After long ago Research. Please go ahead.

Speaker Change #165: Okay.

Marco Zhang: Hi, thanks, management, for taking my question. This is Marco from Global Research. So following Mr. Tang's answer to Matthew's question earlier, not just a Chinese story, so my first question is about your international business. So, as you mentioned in your last earnings call, you have a pretty big plan for international expansion this year into Southeast Asia, Latin America, and also Mexico. Just for our modeling purpose, I don't know if, Unknown Speaker, Keyao He, Unknown Attendee, Mei Zhao, Na Mei, Ning Tang, Lydia Yu, Yirendai, Thank you.

Speaker Change #166: Hi, Thanks management for taking my question. This is Michael from research.

Speaker Change #167: That's helpful. Following Mr. Carlos answer to Matt's question earlier.

Speaker Change #168: Earlier are not just a Chinese story. So my first question is about your international business. So as you mentioned in your last earnings call.

Speaker Change #169: Pretty big plans for expansion I think a national expansion.

Speaker Change #170: South East Asia, Latin America, and also Mexico, I'm just for our modeling purposes I don't know if you can.

Marco Zhang: Just for our modeling purpose, I don't know if you can disclose how much of your revenue this quarter came from your international business and what's your target percentage by the end of 2024. Thank you. Again, going global, being truly global is our clear strategy, and so yeah, we are making very solid progress in Southeast Asia and also Latin America. I mentioned certain information in my to-care remarks, and let me see whether NAC can provide more details at this point. Got it. Yeah, maybe we can talk offline and get this out, yeah. Okay, okay, yeah, and now I'll show it to you.

Speaker Change #171: Can disclose like how much of your revenue this quarter.

Speaker Change #171: From your international business and what's your target percentage by the end of <unk>.

Speaker Change #171: 24.

Ning Tang: Again, going global, being truly global, is our clear strategy. And so, yeah, we are making very solid progress in Southeast Asia and also Latin America. And I mentioned certain information in my prepared remarks. And let me see whether Na can provide more details at this point. Got it. Yeah, maybe we can talk offline and get this and get this out.

Speaker Change #172: Thank you.

Speaker Change #173: Again I'll go in global being truly global is our here.

Speaker Change #173: Strategy and.

Speaker Change #174: So yeah.

Speaker Change #174: We are making very solid progress in southeast Asia, and also a lot of that back.

Speaker Change #175: And I mentioned, a certain information in our you buy.

Speaker Change #176: I take care of their remarks, and let me see where they can.

Speaker Change #176: They provide more details at this point.

Speaker Change #177: Got it yeah, maybe we can talk offline.

Speaker Change #177: As you can get this and get this out yeah.

Ning Tang: Yeah. Okay, okay. Yeah. Unknown Speaker Okay, I will.

Okay.

Speaker Change #177: Okay, Okay yeah.

Na Mei: Sorry, I can't really want to tell you information for your reference about our international business around you for this year. Yes, as mentioned in each individual quality as mentioned by me. Yes, it's also always the business that is mainly one of our main business strategies for our company. And from 2022, after we acquired our licenses to say the game, actually, our OSB business value increased with digital clients. And in this quarter, our OSB value is about 32 million, representing 52% growth compared to the last quarter of 2023.

Speaker Change #178: And not sure okay.

Marco Zhang: Okay, thank you very much.

Speaker Change #178: Yes.

Speaker Change #178: Oh, okay.

Marco Zhang: I'm sorry, I can't really want to tell you the information for your reference to our international business around this year. It's mentioned in each college as mentioned by me. Yes, it's also, the OSC business is mainly our one of our main business strategy for our company, and from 2022 after we acquired our licenses to play the game, actually, our OSC business wallet in course was still tied, and you see, our OSC wallet is accepting about a 32-billion, representing 16-2% close compared to the last quarter of 2023. And for the second quarter of this year, we also have the confidence in our OSC business, and we think that we will maintain the high growth rate, basically same as the first quarter, as maybe the high level of the culture.

Speaker Change #179: That's about as far as I can tell he wants to tell our information for your reference a lot of international business around them for this year.

Speaker Change #180: My friend that you all are each on each call at Atmos inbound, yes, it's always the business, meaning our.

Speaker Change #180: One of our main business is strongly to our company and our phone plentiful on day two after we acquired a license with decitabine.

Speaker Change #181: Actually our OSB business wallet and quite noisy still quiet.

Arthur Oh, Oh, let's say, one or is there something about the neutral meaning are they part of that.

Speaker Change #182: I mean 15 to put down the chrome comply to the lots of calls or alcohol in terms of attendance rate and therefore, the second cause of I'll say, yeah. We also have the comparable not always the business and think of that well maintain the high gross rate.

Na Mei: And for the second quarter of this year, we also have confidence in our OSB business, and we think that we will maintain the high growth rate, basically the same as the first quarter, or maybe higher than the first quarter.

Tim: Anthony It's Tim.

Speaker Change #184: So I'll close the call.

Speaker Change #185: Hi, Dan its like the culture and.

Na Mei: And for the full year of this year, our OSB value increased about five to six times compared to the last year. So we can look forward to our future business. Of course, for revenue, actually, for the first quarter of this year, due to we have only 32 million dollars, so the revenue is not just significantly compared to our total revenue. But for the whole year, based on our forecast, and we expect the total revenue of our OSB to be about 3% to 5% of our overall financial service for the whole year.

Marco Zhang: And for the four year of this year, we spent our OSC loan water is increased about 5 to 60 times, compared to the last year, so we can look forward our future business. Of course, for the revenue, actually, for the first quarter of this year, due to we have only 52 million, the volume shows the total revenue; it's not just significant compared to our revenue, but for the whole year, based on our forecast, and with the total revenue of our OSC, it's about 3% to 5% of our overall financial service for the whole year. Of course, except for the loan volume and the revenue, we also put more attention to our profitability, our OSC product.

Speaker Change #186: For the full year I'll pause here all right.

Speaker Change #187: Once the longwall is equally about five to six times compared to the last year. So they can look for all of your traffic.

Speaker Change #188: Of course, well so why don't you are absolutely for the first calls I'll take the other two will have only 32 million on volume. So it took a while now.

Speaker Change #189: It's about the chocolate significantly compared to outcomes along with our.

Speaker Change #190: But first of all we are based on our forecast.

Speaker Change #190: We had to go out the total round them all on the C. H.

Speaker Change #191: About Oh.

Speaker Change #191: Talk a super fans at four 5% alcohol, our golf R. Marshall filling so first of all yes of course, that's as far as our loan volume on that.

Na Mei: Of course, except for the loan volume and the revenue, we also put more attention to our profitability, our OSB product. Actually, in this quarter, our OSB product, especially in the Philippines, our margin has got a positive result. And so we hope we always have confidence in our OSB department and always think that by the end of this year, the OSB business can contribute more profit, including revenue and the profit margin as well as financial revenue. Okay, thank you. I hope the information is useful for your questions. Thank you. Perfect.

Rami: Rami I'll also put more attention to.

Rami: To our profitability.

Marco Zhang: Actually, in this quarter, our OSC product especially being our margin has got a positive result, and so we hope we ever have some confidence in our OSC department, and always think that by the end of this year, the OSC business can contribute to the model of policy that encourages the revenue and the profit margin as well, overall financial service revenue. Of course, thank you. I hope the information is useful for your questions. Thank you. That's perfect.

Speaker Change #193: Actually they've called our I'll say you put on this platform that's really been our Martin has got a positive goes out and that's the only way home Oh.

I would have the confidence in our own safety promise and the only things that hurt by farmhouse cookie.

Speaker Change #194: Oh, I see a business account contract tomorrow, a proxy contest.

Speaker Change #194: The other part of the margin.

Speaker Change #194: Okay.

Speaker Change #195: I hope so.

Speaker Change #196: For your question.

Marco Zhang: That answers my question about your international business.

Speaker Change #197: Perfect that answers my question.

Marco Zhang: Yeah, that answers my question about your international business. Yeah, and my second question is about AI. So, congratulations on your successful launch of AI Lab last quarter. And you also mentioned in your last earnings call that you aim to expand your AI expertise beyond those fintech verticals to more selected sectors. Is there any progress there that you can disclose?

Marco Zhang: My second question is about AI.

Mike: Yeah, and Mike My second question.

Speaker Change #198: It's about AI. So so congratulations on the successful launch of I'll say I left last quarter and you also mentioned in our last earnings call that you want to.

Marco Zhang: So congratulations on your successful launch of AI Lab last quarter. And you also mentioned in your last earnings call that you need to expand your AI expertise beyond the feedback verticals to more selected sectors. Is there any progress there that you can disclose? And also as you have a much stronger cash position and you change your Chinese name from your feedback to your smart tech.

Speaker Change #199: It expands our expertise beyond the impact our verticals to more selective.

Speaker Change #199: Is there any progress there that you.

Marco Zhang: And also, as you have a much stronger cash position and you changed your Chinese name from Yuan Fintech to Yuan Smartech, do you have any strategic plans in AI, such as acquisitions, in the near future? Thank you. And so the new Chinese name is more like AI tech or intelligent tech. Yeah. So yeah, but it's smart.

Speaker Change #199: You can't disclose and also as you have a much stronger cash position and you changed your Chinese name from <unk>.

Speaker Change #199: Taxes.

Speaker Change #200: Smart Tech.

Marco Zhang: Do you have, so do you have any strategic plans in AI, such as acquisitions in the near future? Thank you. And so the new Chinese name is more like the ear and AI tech or ear and intelligence tech. Yeah, so yeah, but it's smart. Yeah, thank you.

Speaker Change #201: So do you have a strategy.

Speaker Change #202: Strategic clients and AI are such as acquisitions in the near future.

Speaker Change #203: Thank you and so the yeah.

Speaker Change #204: New Chinese name is more like a year end.

Speaker Change #205: Tack or ear and intelligent yeah.

Speaker Change #206: Yeah, So yeah very smart yeah. Thank you Anna.

Ning Tang: Yeah. Thank you. And so what we're doing right now is that, as I mentioned, there are three steps. Yeah. The first step is that we utilize AI really well in our existing businesses and in our company management operations. And because it's really not an easy, easy thing to do our existing business well. As you know, given the risk situation, we need to do better risk management, etc. There's always competition, and so on.

Ning Tang: And so what we're doing right now is that, as I mentioned, there are three steps. Yeah, the first step is that we utilize AI really well in our existing businesses and in our company management operations. Yeah. And because it's really not an easy, easy thing to do our existing business well. As you know, you know, even like risk like a situation like you know, we need to do better risk management so on. Like, you know, there's always competition so on. And yeah, so we need to utilize AI really well in our existing business. At the same time, though, we are preparing for the future. For example, we train our models, right? Like the capability of training like our own models, fine-tuning, done, optimizing them is actually quite valuable.

Speaker Change #206: So.

What we're doing right now is back.

Speaker Change #206: Yeah.

Speaker Change #206: There are three steps yeah. The first step is that we are utilizing AI.

Speaker Change #207: Really well in our existing businesses and in our company and management and operations.

Speaker Change #207: Yeah, and and because it's really not a easy easy thing to do our existing business.

Speaker Change #208: Well as you know you don't even get a like a.

Speaker Change #208: Like Oh.

Speaker Change #208: And like you know, we need to Oh I do back here at least the management.

Speaker Change #208: So long like a you know there's always competition so long.

Speaker Change #209: Yeah, So oh, we need to utilize AI really well.

Speaker Change #209: We've seen our business at the same time, though.

Ning Tang: And yeah, so we need to utilize AI really well in our existing business. But at the same time, though, we are preparing for the future. For example, we train our models, right?

Speaker Change #209: We are.

Speaker Change #209: Caring for the future for example, Oh, we train our models right like there actually the BTT training like our own models are fine tuning a dumb optimizing them.

Ning Tang: The capability of training our own models, fine-tuning them, optimizing them, and it's actually quite valuable for many other companies in the field. Yeah, so, and also many of the, like, agents we'd say, like, you know, or yeah, we use in our own business, the way we build the agents, the way we use them, yeah, it's also very valuable for other companies and industries. So we are a product Productizing, yeah, is that the right word? Like a productizing machine, yeah.

Speaker Change #209: Is actually quite valuable.

Ning Tang: Yeah, and for many other companies and industries. Yeah, so, and also many of the like agents, you to say, like, you know, or yeah, we use in our own business, the way we build the agents, the way we use them. Yeah, it's also very valuable for other companies and industries. So we are product productizing. Yeah, is that the right word, like a productizing. Yeah, so, so making such capability, such tools into products, which we can sell to other companies, industries. So that's like, yeah, one key thing we are doing right now.

Speaker Change #209: Valuable Yeah, Oh for many other companies.

Speaker Change #210: Our investors yeah, So and also many of the like Oh.

Speaker Change #210: Can you just say like a you know it.

Speaker Change #210: Yes.

Speaker Change #210: Or yeah.

Speaker Change #210: We use in our own business the way we build the agents the way we use them. Yeah. Ah is also very valuable.

Speaker Change #211: For our other companies.

Industries. So we are a product.

Speaker Change #212: Hi, Yeah is that the right word like a product yeah.

Ning Tang: So making such capabilities, such tools into products which we can sell to other companies and industries. So that's like, yeah, one key thing we are doing right now. But at the same time, you know, as I mentioned, we are looking to do some incubation and strategic investment work, like focusing on AI-native business opportunities. So we are still in the early stage of exploration and implementation, yeah, but there will be more coming out, yeah, we will report, yeah, on a timely basis.

Speaker Change #213: So making search capability is second tools into <unk>.

Speaker Change #213: Our products are.

Speaker Change #214: Which we can sell to either.

Speaker Change #214: Companies industries. So that's lifestyle, yeah, one T. Yeah thing we are doing right now.

Ning Tang: At the same time, you know, as I mentioned, we are looking to do some like incubation and strategic investment work, like focusing on AI native business opportunities. So we are still in the early stage of exploration and implementation. Yeah, but there will be more coming out. Yeah, we will report. Yeah, on a timely, yeah, in a timely way.

Speaker Change #214: Same time, you know as I mentioned, we are looking.

Speaker Change #215: Looking to do some like a like the incubation and strategic Oh.

Speaker Change #216: But work like focusing on meeting our business opportunities. So we are still in early stage.

Speaker Change #216: Hello, reshape and implementation yeah, there will be a more coming out yeah, we will report.

Had timely.

Speaker Change #216: Yeah.

Speaker Change #216: In a timely way and.

Ning Tang: And so regarding acquisition. Yeah, so we have interested in doing smarter. I'm an a. Yeah, so there's actually indeed one idea. Yeah, we are currently evaluating. As it progresses, yeah, to a certain stage, we will be in a position to share more.

Ning Tang: And so regarding acquisition, yeah, we are interested in doing smart M&A, yeah, so there's actually one idea we are currently evaluating. As it progresses, yeah, to a certain stage, we will be in a position to, yeah, share more. But overall, I think we are doing the first step, which is utilizing AI in our own business. And the second step, which is developing, like advanced, yeah, building advanced AI capabilities and the ecosystem through productizing the tools and, yeah, solutions we use in our own business for future business opportunities. And also, yeah, we are looking to build a strategic relationship through investment and, yeah, smart M&A. Hope I can share more next time.

Speaker Change #216: So regarding acquisition yeah. So we are interested in doing a smarter.

Yeah. So there's actually indeed, the one idea yeah. We are currently evaluating.

Speaker Change #216: Or.

Speaker Change #216: It progresses, yeah to certain states are we will be in a position to share more but the overall I think we are doing the first step which is utilizing AI in our own business and the second step which is the developing like at the bottom.

Ning Tang: But overall, I think we are doing the first act, which is utilizing AI in our own business. And the second step, which is developing like advanced, yeah, building an advanced AI capabilities and the ecosystem through like productizing the tools. And, yeah, solutions we use in our own business for the future, like business opportunities. And also, yeah, we are looking to do like to build a strategic relationship through investment and, yeah, smart MLA. Hope I can see more. Yeah, next time.

Speaker Change #216: Yeah building advanced AI capabilities in the ecosystem through like a path back type thing.

Speaker Change #217: The twos and Ah Ah yeah.

Speaker Change #217: Yeah.

Speaker Change #218: So do we.

Speaker Change #218: We use in our own business.

Speaker Change #218: Sure Yeah future business opportunities.

Speaker Change #219: And Oh, so yeah, we're looking to do like a two building strategic relationships, who are you Mad men and.

Speaker Change #219: Yeah, that's smart.

Speaker Change #220: M&A hope.

Speaker Change #221: Hope I can't see any more yes next time.

Marco Zhang: Okay, great. Yeah, that's great to hear. And congratulations again on another strong quarter. And we look forward to hearing more good news from the company operator.

Speaker Change #221: Okay.

Ning Tang: Great. Yeah, that's great to hear. And congratulations again on another strong quarter, and we look forward to hearing more. Operator. I have no more questions. Thank you. Our next question today will come from Andrew Corporate, a private investor. Please go ahead.

Speaker Change #222: Right Yeah, that's that's great to hear and congratulations again on another strong quarter and we look forward to hearing more good news from the company operator, I have no more questions.

Andrew Corporate: I have no more questions. Thank you.

Speaker Change #223: Thank you.

Andrew Corporate: Our next question today will come from Andrew Corporate, a private investor. Please go ahead. Hello, Mr. Ning Tang and the company. Thank you for your great result and great work on this company.

Speaker Change #223: Our next question today will come from Andrew corporate a private investor. Please go ahead.

Andrew Corporate: Hello, Mr. Ning Tang and the company. Thank you for your great results and great work in this company. I wanted to first start with a remark that YRD is still trading at 1.4, or even 1.5 times price earnings, but the net profit increased quarter on quarter, so it's lower right now. And my question is, my first question is, how did the net cash from operations increase by 62% from the previous quarter 1, 2023?

Andrew Corporate: Hello, Mr Ning Tang and no company. Thank you for your great results and the great work on this company.

Andrew Corporate: I wanted to first start with a remark that where where these field trading at 1.4 or even it was 1.5 price earnings, but the net profit increased quarter on quarters. So it's lower right now. And my question is, you know, my question first question is, how did the net cash from operations increase? This by 62% from the previous quarter, 123. And why that way? I said, your pardon. What about the 60%? The net cash from operations increased by 62% from last year. I was wondering why this happened or should we expect this in quarter to quarter 3 quarter 4 better cash performance, better net cash.

Andrew Corporate: I wanted to first start with a remark that ER, where where do you still trading at 1.4 or even it was 1.5 price earnings, but the net profit increased quarter on quarter. So it's slower right now and my question is.

Andrew Corporate: and Y. I beg your pardon, what about the 60%? I was wondering why this happened, or should we expect this in Q2, Q3, Q4, better cash performance, better net cash provided by operations, should we expect it to be 30-40% roughly in Q2, Q3, Q4? and Na.

Speaker Change #225: My question first question is how did the net cash from operations increased by 62% from the previous quarter, one can be to a degree.

Okay.

Speaker Change #225: And why.

Speaker Change #226: I beg your pardon Oh, what about 60%.

Speaker Change #226: The net cash from operations increased by 62% from last year I was wondering why this happened or what should we expect to see them quarter to quarter of Freeport or for better cash performance, but are not cash.

Unknown Attendee: Net cash provided by operations should be expected to be 30, 40% roughly in quarter to quarter 3 quarter 4. You don't hear? Yeah, I will answer your question. Yeah, as you mentioned, in this culture, our R&D is 41 eating, and also it's the required increase to try to comply to the first quarter of last year. But actually, it's a later decrease compared to last year in the 20th and the 6th quarter of last year. The total research and the development plan is 48 meetings. Yeah, and the decrease in this cloud at the mailing deal to where we take active action to do some staffing adjustments.

Speaker Change #227: Net cash provided by operations should we expect it to be 30, or 40% ROTC well in quarter two quarter three quarter four.

Speaker Change #226: Yeah.

Speaker Change #228: Zero in your hand.

Andrew Corporate: Thank you. Bye. Bye. Bye.

Speaker Change #229: Yeah, Yeah yeah.

Na Mei: Yeah, I will answer your question. Yeah, as you mentioned, in this quarter, our R&D is 41 million, and also, it's required to increase to try to compare to the first quarter of last year, but actually, it's a little decreased compared to our last year in the last year, in 2026. In the first quarter of last year, the total research and development path was 48 million.

Joe: Yeah Joe.

Speaker Change #231: Sure Yeah. So my sense is counter.

Speaker Change #232: Oh RMB is a fortune one eating and also is there.

Speaker Change #233: Plans are in place, they're trying to comply to the fourth quarter of last year, but actually it's a later would be quite complex to them I say here.

Speaker Change #233: That's been either kind of condensate in the first quarter of last year.

Speaker Change #233: That's helpful.

Speaker Change #233: And I do a lot of your path, it's like an eight meeting.

Speaker Change #234: Yeah and.

Speaker Change #234: Crazy they've called out the mailing their two way where you take active action two to do some staffing attachment Oh, maybe replace some lower technical staff to replace off hire techniques.

Unknown Attendee: For example, maybe replace some lower technical staff to replace some higher technical staff. So there's some staff cost of the technical staff will be a little decrease in this culture. However, although this cloud is complied to last quarter, it's a little decrease. We still have our more R&D moment and expensive in the next future. And in our R&D plan, we hope in this low year, our R&D is about 100 meetings and 200 meetings. And, compared to the last year, the total R&D is 140 meetings. So, compared the low year, we still put our appetite to R&D plan.

Speaker Change #235: Or are there some that come off the technical stopping therapy and they totally get acquainted with the culture.

Na Mei: However, although this quarter compared to last quarter, it's a little decreased; we still have more R&D enrollment and expense in the future. And in our R&D plan, we hope that this whole year, our R&D expense is about 100 million and 200 million. Okay, again, I asked about net cash used, provided by operations. So it's like cash from operations. It increased a lot, and I was happy about it. But it's okay.

Speaker Change #236: I would also think Toyota is comprised two two last counter it's the nature of the quake was still have Oh mall R&D at Golden pass it is nice to see.

Speaker Change #237: Altera and are in our in all our I D.

Speaker Change #238: Well, let's hope and faith, knowing you're all on the I pad is a volatile 100 of the meeting and a 200 meeting and a complaint to the last two years. The total I'm doing it 100 it for Tonight.

Speaker Change #239: Comprised of ammonia.

Speaker Change #240: They will put our I'm sorry for two idea okay.

Unknown Attendee: Okay. Again, I asked about net cash use provided by operations. So it's like cash from operations. It increased a lot, and I was happy about it. But okay. Second question is, your guidance is again, I think reiterated in 2023 last quarter in 2023 Q4. You provided a guidance, a middle guidance, a midbound guidance of 6.4 billion RMB. With the current projections in Q2 of 1.4 to 1.6 billion RMB, if you continue doing 1.6 billion RMB in Q3 and Q4, you should achieve the midbound target of 6.4 billion RMB. I think you're expecting that, right, on the revenue guidance.

Speaker Change #239: Okay.

Speaker Change #241: Okay again, I asked about net cash provided.

Speaker Change #242: Provided by operation So it's like cash from operations. So it increased a lot then it was.

Speaker Change #243: Happy about it but okay.

Speaker Change #244: Second question is your guidance is again I think reiterated in.

Andrew Corporate: The second question is, your guidance is again, I think, reiterated. In 2023, the last quarter of 2023 Q4, you provided a guidance, a middle guidance, a mid-bound guidance of 6.4 billion RMB. With the current projections in Q2 of 1.4 to 1.6 billion RMB, if you continue doing 1.6 billion RMB in Q3 and Q4, you should achieve the mid-bound target of 6.4 billion RMB

Speaker Change #245: In 2020 free last quarter until they can do for your Q4, you provided a guidance and we don't guide on some inbound kind us all six points for a beta not M. B a with the current projections in Q2.

Speaker Change #246: For one four to $1 6 billion RMB East you continue doing one point seems to be going on and be in Q3, and Q4, you should achieve them is bound to target of $6 4 billion RMB Ah I think you were expecting that right on the revenue guidance.

Andrew Corporate: I think you're expecting that right on revenue guidance. So my question is actually the revenue guidance which you provided in 2023 Q4, if you will reach the mid-bound to the upper bound of that guidance because you succeeded better, or how are you feeling in Q2, Q1? Wang.

Unknown Attendee: So my question is actually the revenue guidance, which you provided in 2023 Q4, if you will reach midbound to upper bound of that guidance because you succeeded better or how are you feeling in Q2, Q1, Q1. And now, can you please, yeah. Sorry. So you gave a guidance in 2023 Q4. No, no, no, no, no. I'm asking my colleague to respond, yeah. Okay, my apologies. If you don't understand anything, I think for the whole year of 2020, 2020 Q4, this is our current assessment; we can meet the total of the total revenue in the culture of the last year.

Speaker Change #247: Well My question is actually the revenue guidance, which you provided in your 2023 Q4.

Speaker Change #248: <unk>, if you will reach meet the bound to upper bound of that guide down is because you have succeeded but there or how are you feeling in Q2 Q1.

Speaker Change #248: Q1.

Speaker Change #248: Okay.

Speaker Change #248: Yeah.

Na Mei: And now, can you please, uh, yeah. Unknown Speaker 1 Sorry, so you gave guidance in 2013-2014? Unknown Speaker 1 No, no, no.

Speaker Change #249: And now can you please.

Yeah.

Speaker Change #249: Sorry, so you.

Speaker Change #249: You you gave a guidance.

Na Mei: I'm asking my colleague to respond. Yeah. Unknown Speaker 1 Okay.

Speaker Change #249: Hum.

Speaker Change #250: My colleague to respond yes [laughter].

Na Mei: Thank you. Thank you. Okay, my apologies. If you don't understand anything, I can repeat it.

Speaker Change #251: But I just don't understand anything like that.

Speaker Change #252: Got it.

Speaker Change #252: Yeah.

Na Mei: Yeah, I think for the whole year of this 2024, with our current assessment, we can meet our total outlook of the total revenue we released in the third quarter of the last year. But for this quarter, because this is the lockdown festival in China mainland, because like the 20th festival, and during this festival, it's not our business peak season, and it's a low season. That is why you can see our revenue cannot increase much.

Speaker Change #253: Yeah. Thanks for the one year after 'twenty kind of thing I'm trying to do for a light way, it's all kind of plasma, which I need to our.

Oh, absolutely how much was around.

Speaker Change #254: So called out off the last year and by the fourth its culture. Because this is a long song festival in China, mainly because of all the claims that smoke and therefore, the orange basketball, if all went out on.

Unknown Attendee: But for this culture, because this needs to be like some festival in China, it's a big season, and it's a low season. That is why you can see our revenue can now increase the much. But in the future, we think generally we can meet the guidance on local needs before, yeah. We have confidence that our business will have your contribution for the whole year. Okay, just if you reach this midbound guidance, you will have 31% or 30.6% growth increase in revenue with 1.4% strength for anybody here in this school, and you're also AF powered.

Speaker Change #254: It needs to pick things up and it's a loan they want that is why you can see on.

Kevin Yoki mountain and increased demand.

Na Mei: But in the future, we think generally we can meet the guidance we gave in our outlook we released before. Yeah, we have the confidence that our business revenue contribution for the whole year. Okay, just if you reach this mid-bound guidance, you will have 31% or 30.6% growth in revenue with 1.4% for anybody here on this call, and you're also AI-powered. Okay, my last question or one of the last is, your prepaid expenses and other assets in the balance sheet have increased quite a lot.

Speaker Change #254: Trucks.

Speaker Change #254: We think are generally what I can.

Speaker Change #256: Our guidance on what the local or at least the people we have the confidence that you all can.

Speaker Change #255: Contribution from the warrior.

Speaker Change #257: Okay. Just if you reach it gives me bound guidance, you will have 31% or 36% of growth increasing revenue with one point for crush strength for anybody here going to school and you're also airport. Okay. My last question or one of the last is your prepaid the prepaid expenses and other.

Na Mei: It's a current asset, from what I know. My question is, what caused this increase year-on-year and also from quarter four, from last quarter. They increased, I think, by 800 million RMB or 900 million RMB. The prepaid expenses increased a lot, the current asset, prepaid expenses, and other assets. Unknown Speaker What caused it?

Unknown Attendee: Okay, my last question, or one of the last, is you were prepared expenses and other assets in the balance sheet. It increased quite a lot. It's a current asset from the panel. My question is, what caused this increase year-on-year, and also from Q4 or from last quarter, they increased, I think, by 800 R&B, 800 million R&B or 900 million R&B. The prepaid expenses increased a lot, a current asset, prepaid expenses and other assets. What caused that? It's a good thing, I think. It's like a counter-receivable increase. It's a hard question, but the same with them.

Speaker Change #258: That's in the balance sheet it increased quite a lot. It's a current asset friends from what I know my question is what caused this increase.

Speaker Change #258: Year on year and also from quarter four from last quarter. They increased I think by 800, 800, RMB 800 million RMB or 900 million in R&D. The prepaid expenses increased a lot the current assets prepaid expenses and other assets what caused that.

Andrew Corporate: It's a good thing, I think. It's like accounts receivable is increasing. It's a hard question.

Speaker Change #259: It's a good thing I think that's what it looks like the accounts receivable is increasing.

It's a hard question, but the thing with them.

Speaker Change #259: Yeah.

Speaker Change #259: Okay.

Speaker Change #259: Okay.

Na Mei: Now he's probably looking into the details. Okay, yeah, so pre-paid expenses, yeah, they increased a lot. Yeah, yeah, yeah, yeah, just to comply with the by the end of the last year, our proprietary plans and other sites are a way to present some inquiries, compared to the end of last year, because considering our business development, some of our suppliers need to ask for payment from customers. So, like, like some channel costs and like some AI investment, we should put a prepayment amount over our channel costs to our suppliers.

Unknown Attendee: Nice, probably looking into the details. Okay, yeah, so prepaid expenses, they increased a lot. Yeah. So if you compare to the by the end of the last year, our profile, you can't and other sites that we present some increase compared to the end of last year. To talk, consider our business development way south of the place to ask to prepare and to present some customers. So we like some channel culture and the life of AI, your wife, my wish is to put proponents among our channel culture towards suppliers. So to order for the purpose of our proponents to talk to our suppliers is because we can't talk about cooperation with our partners and can can fix some good access at least the other good channel culture.

Speaker Change #260: [laughter] nice probably looking into the email.

Speaker Change #260: Oh, Okay. Yeah. So prepaid expenses you had to increase their luck.

Speaker Change #260: Yeah, Yeah, yeah, Yeah. So should comprise goes up by the end of the last year our co Pi.

Speaker Change #260: And as I said.

Speaker Change #260: Right.

Speaker Change #261: Then to US Army and quake all comprises an overlap you have to talk a copy there are our business be one of them our way off on the plasma tool has to play a part to play the game in town Cosmos.

Speaker Change #261: They were like a lifestyle channel Costa and then I thought you had a your.

Your wife, my relationship with a prepayment of some amount of our Oh channel constant.

Speaker Change #261: Our suppliers.

Speaker Change #262: So on a two year old and for the first of all I'll take them in to talk to our suppliers have to constantly kind of hard ball corporation with our partner.

Na Mei: So for the purpose of our prepayment to our suppliers, because we can have our cooperation with our partners and can fix some good assets released and other good, good channel costs. So you can see there is some increase in our proprietary assets that is mainly due to our prepayment to our suppliers in the last about three or four months to fix some good, good resources and good supply service. I want to congratulate you on these results. I'm actually very happy, and you're doing great.

Speaker Change #263: Downtown pancakes it sounds good.

Speaker Change #263: And either I agree with that and go to channel concept. So you can see there is some increased our place pretty tightly.

Unknown Attendee: So you can say there's some increase of our property. That is mainly due to our procurement to our society. And once about three or four months to fix some good resources and to the supply. Okay.

Speaker Change #264: That is mainly due to our regimen into our hot and warm.

Speaker Change #264: Apologize for that.

Speaker Change #265: Two fixed uncle, who then sells it and couldn't supply from it.

Speaker Change #264: Yeah.

Speaker Change #264: Okay.

Andrew Corporate: Again, I want to congratulate you for these results. I'm not. I'm actually very happy, and you're the exacting of great question for Mr. Ning Tang, or actually a suggestion. If you change the name in Chinese company to AI or whatever from Iran Digital to AI Iran AI or something AI in the name. Could you change also the New York Stock Exchange name or the the LTD which appears when you say search where this talk on Google or whatever. You see Iran Digital LTD. Could you change the name of the LTD also to Iran AI? Maybe it will catch more eyes of investors.

Speaker Change #266: Again, I want to congratulate you for these results I'm not I'm I'm actually very happy and your existing Oh, great. A question for Mr. Ning Tang or actually a suggestion if you change the name in Chinese company to AI or whatever from ear and digital to AI era in AI or something.

Andrew Corporate: A question for Mr. Ning Tang, or actually a suggestion, if you change the name of the Chinese company to AI or whatever, from Yiren Digital to Yiren AI or something, AI in the name, could you change also the New York Stock Exchange name or the LTD, which appears when you search this stock on Google or whatever? You see Yiren Digital LTD. Could you change the name of the LTD also to AI? Maybe it will catch more eyes of investors if the name change, or like the name change in Chinese. Yeah, my I really like the even digital English name.

Speaker Change #267: The name.

Speaker Change #268: Could you change also the New York stock exchange name or the L. P D, which appears when you say its search where destock on the Google or whatever you use you'll see you're in digital has to be could you change the name of the LGD also to Iran. AI, maybe it will catch more eyes open restaurants.

Andrew Corporate: If the name change or yeah. My I really like the Iran Digital English name. Okay. As you wish. Okay. Yeah. Digital is a greater yeah. Yeah. But investors, the investors see the Chinese name. Investors don't see the Chinese name. You must Google Translate the Chinese name. So American investors in your stock exchange is a digital. We don't see AI in the name. I see. Okay. If you did the name change in Chinese. I don't know if you did the name change in China.

The name change or like the name change or any idea.

Andrew Corporate: Okay, as you wish. Okay. Yeah, digital is great.

Yeah, My I really like that you're going to digital English name. Okay anyway. She got it okay. Yeah digital is a great yeah.

Andrew Corporate: Yeah. Like, yes, but investors, investors see the Chinese name; investors don't see the Chinese name; you must Google translate the Chinese name. So American investors on your stock exchange, they see digital; they don't see AI in the name. I see. Okay. If you did the name change in China, I know if you did the name change in China, maybe you think about it.

Speaker Change #269: It's about the investors the investors see the Chinese name investors don't see the Chinese named you must Google translate for the Chinese name [laughter], So American investors and you'll start to see digital they don't see AI in the name.

Speaker Change #270: I see okay or it should be the name change and change I don't know if you need a name change in China, maybe you think about it. Thank you very much [laughter], yeah, and if you have one more question.

Andrew Corporate: Maybe you think about it. Thank you very much. Yeah. And if you have one more question. Say sorry. Yeah. Our I really want our interested prospect investors shareholders to look a bit further into all the details. Right. And not just the name. But I will say you mentioned banker on what is like the 98. So I experience like if you just added dot com. Yeah. Your name, like all the sudden, your automatic. It goes off like you know. It is a three. Yeah. But yeah. My my my sense is that. Yeah. So it's probably good for the short term.

Speaker Change #271: So you say sorry.

Speaker Change #271: Yeah.

I really want to our yeah interested at.

Speaker Change #271: Prospect in Boston that shareholders could look a bit there.

Speaker Change #271: Or they're into all the detail right and not just that name.

Andrew Corporate: Thank you very much. And if you have one more question, I really want our interested prospects, investors, shareholders to look a bit further into all the details, right? And not just the name, but I was an investment banker on Wall Street in 1998 and 1999.

Speaker Change #272: I would say our investment banker.

98, yeah.

Ning Tang: So I experienced like if you just add a.com to your name, like all of a sudden, your market cap goes up like, you know, three or four times. But my sense is that, yeah, so it's probably, yeah. Unknown Attendee, Mei Zhao, Na Mei, Ning Tang, Lydia Yu, Yirendai, The change made in China is mainly because the original Chinese name suggested that Fintan, if we are more than FinTech, we better change the name.

Speaker Change #272: So I, yeah variance, but something like that if you just added dotcom yay or nay on all this.

Speaker Change #273: Your magic at that it goes up like a you know.

Speaker Change #273: Yeah.

Yeah.

Speaker Change #273: My sense is that right yeah. So it's it's probably.

Speaker Change #273: Good for the short term, but they really are yeah. So.

Ning Tang: But really, yeah. I'm not. So yeah. Yeah. You're setting the Chinese in Chinese. It's Iran artificial something where you set the previous guy who asked the questions that the name. The change made in China is mainly because the original Chinese name suggested the Fintech. If we are more than Fintech, we better change the name, but the English name, Yirendai Digital, doesn't suggest the Fintech. Yeah, my chances digital includes certain includes Fintech, Notion, but also includes like AI Notion. But I took your point and all things about it.

Speaker Change #273: So yeah, [laughter], yeah, you're setting the Chinese in Chinese at yearend artificial something where you set the previous.

Speaker Change #274: Hi, who asked the question so that's the name.

Speaker Change #274: Okay.

Speaker Change #275: That change made in China, it's mainly because the original Chinese name suggested that Fintech. If we have more density tests, we better change the name, but the English name ear and digital banking said Katz Citi pack, Yeah, My sense is digital.

Ning Tang: But the English name, Yiren Digital, doesn't suggest FinTech. Yeah, my sense is that digital includes the FinTech notion, but it also includes AI. But I took your point, and I will think about it. Okay. Maybe Yiren Digital, FinTech, and AI or small AI capital, I don't know, whatever, as you wish. Thank you very much, sir.

Speaker Change #276: All inclusive, including these include thin pack notion that also includes like I said, but I took your point out or think about okay, maybe Iran, Fintech and AI or small aia's capital island or whatever else you wish. Thank you very much Sir and the last question also.

Andrew Corporate: Okay, maybe Yirend, Fintech, and AI, or small AI capital, I don't know whatever, as you wish. Thank you very much, sir.

Andrew Corporate: And the last question, also about AI, you said I would have to read the transcript. You have so many achievements this quarter. But you said 400,000 calls were provided by an AI-powered language model. So there was like an AI language model, smart language model, selling or doing the sales rep as a sales rep, but it was AI. Did I understand correctly? 400,000 calls? Yeah, yeah, I think it's outbound calls, yeah. Other automated, yeah, intelligent calls to cross that with customers. Okay, so customers joined or they bought whatever they entered the Yirendai Digital because of this 400,000 calls, which were powered by AI.

Andrew Corporate: And the last question was also about AI. You said, I will have to read the transcript, you have so many achievements this quarter, but you said 400,000 calls were provided by an AI-powered language model. So there was like an AI language model, a smart language model selling or doing the sales rep as a sales rep, but it was AI.

Speaker Change #277: About the eye you said the I have to read the trash because you have so many achievements this quarter, but you said 400000 close were provided by an AI powered language model. So there was like a knee I language models smart language models, selling or doing the sales rep as a sales rep, but it wasn't.

Did I understand correctly.

Andrew Corporate: Did I understand correctly? 400,000 calls? Yeah. Yeah, I think it's our bond cost. Yeah, out of automated, yeah, intelligent cost to prospect.

Speaker Change #278: 400000 calls yeah.

Yeah, I think is Oh Banca call yeah.

Speaker Change #279: Although automated.

Speaker Change #279: Yeah.

Speaker Change #279: The call to prospect.

Our customer.

Ning Tang: Okay, so customers joined or they bought your whatever they entered the digital world because of these 400,000 calls, which were powered by AI. Very interesting. Yeah, we made this number of calls to try and sign them up. Mm-hm, mm-hm.

Speaker Change #280: Okay, so customers joined or are they.

Speaker Change #280: They bought their for whatever they entered the ear and digital because of this 400000 calls which were powered by a very interesting yeah. Yeah. Yeah. We we we made this member cost could try and yeah.

Andrew Corporate: Yeah, very interesting. Yeah, yeah, yeah, we made this number of calls to try and, yeah, find them on. Very nice. Okay, thank you very much, sir, and thank you also for the $2 million repurchases, and I hope they will continue. Even though there are peanuts compared to your cash balance, but whatever. I hope you continue to grow and continue to execute and build something so beautiful. Your team features of it, they're very nice. And thank you very much for you being also a great shareholder of the company and the CEO.

Speaker Change #281: It signed them all.

Speaker Change #281: Mhm.

Andrew Corporate: Okay, thank you very much, sir. And thank you also for the $2 million repurchases, and I hope they will continue, even though they are peanuts compared to your cash balance, but whatever. I hope you continue to grow and continue to execute and build something so beautiful. Your team's pictures of it, they're very nice.

Speaker Change #281: It's a pretty nice okay.

Speaker Change #282: Thank you very much Sir and thank you also for the $2 million of repurchase Susan I hope they will continue even though they are peanuts compared to a cash balance about whatever I hope you continue to grow and to continue to execute and build something so beautiful and your team are features of it out there they're very nice and thank you very much for your bingo.

Andrew Corporate: And thank you very much for being also a great shareholder of the company and the CEO. Have a wonderful day. Bye bye. Our next question today will come from Peter Ryu of Bluebird Advisory. Please go ahead.

So a great shareholder of the company and have a wonderful day bye bye.

Unknown Attendee: Have a wonderful day. Bye-bye. Thank you.

Speaker Change #283: Thank you.

Peter Rue: Our next question today will come from Peter Rue of Bluebird Advisory. Please go ahead. Thank you, good evening.

Speaker Change #283: Our next question today will come from Peter Ruiz of Bluebird Advisory. Please go ahead.

Peter Ryu: Thank you. Good evening. It's disappointing that the CEO and founder are absent for the second consecutive quarter. Oh, thank you. I apologize, Mr. Tang.

Speaker Change #284: Thank you good evening.

Peter Rue: It's disappointing that the CEO and founder is not on the call for the second consecutive quarter. I'm the founder and the CEO of the company. This is Nick Pan speaking. Oh, thank you. I apologize, Mr. Tang. I've been doing a lot of talking. I did prepare remarks, yeah, and then I answered the number of the questions. Okay, thank you. Yeah, no, that is over here. That was definitely here. Yeah, hello. Okay.

Peter Ruiz: It's disappointing.

Speaker Change #286: That the CEO and founder.

Speaker Change #287: Not on the call.

Speaker Change #288: For the second consecutive quarter.

<unk>: I'm, the founder and CEO of the company. This is <unk> speaking.

Ning Tang: I've been I've been doing a lot of talking. I did prepare the remarks. Yeah. And then I answered a number of questions. I have actually participated in every earnings conference call since the company went public. Were you on last quarter?

<unk>: Oh, Thank you I apologize Mr. Tang I've been I've been doing.

<unk>: A lot of faulting.

<unk>: I I I I did the prepared remarks, yeah, Yeah, and then I answered that a number of questions.

Okay. Thank you.

Speaker Change #290: Oh, Oh, Oh definitely here, yeah Hello, Okay.

Peter Rue: I have actually participated in every earnings conference call since the company went public. Were you on last quarter? I thought you were traveling. Yes. Yes, no, the sample, our sample, my colleague was traveling, yeah, and she's with us now. Yeah.

I have actually participated in every earnings conference call I think the company one topic.

Ning Tang: I thought you were traveling. Yes. Yes, no. The CFO, our CFO, my colleague, was traveling. Yeah, and she's with us now.

Speaker Change #291: Where you are in last quarter I thought you were traveling yes, yes.

CFO: Yes, no the CFO I'll stand for my colleague was traveling.

Yeah.

Speaker Change #293: She is with us now.

Peter Ryu: Unknown Speaker Yeah, and I do have trouble understanding your CFO, but it could be my phone. My question is, I. The reason your stock is so low is people don't have faith, and Yu, because of all the changes. I think having a dividend, you have a lot of cash; it's not a good use of shareholder cash. I know you're the main shareholder, and I know. I don't really care what other little people say, but you, um..., just having money in the bank. Unknown Attendee, Mei Zhao, Na Mei, Ning Tang, Lydia Yu, Yirendai, Yirendai, Yirendai, would probably greatly increase your overall.

Peter Rue: Yeah, and I, and I do have trouble understanding your CFO, but it could be my phone. My question is, I, the reason your stock is so low is it's people don't have space in you because of, well, all the changes. I think having a dividend, you have a lot of cash; it's not a good use of shareholder cash. I know you're the main shareholder, and I know if I don't really care what other people say, but you, just having money in the bank is not a good. It hurts your return on invested capital. So it's hurting your fundamentals, and you should either put that to better use or return it to shareholders.

Speaker Change #294: Yeah, Yeah, Yeah, and I and I do have trouble understanding your CFO, but it could be my phone.

My question is.

Speaker Change #294: I.

Speaker Change #295: The reason your stock is so low as people don't have to face.

Speaker Change #296: And you.

Speaker Change #296: Because of.

Speaker Change #297: Well all the changes I think having a dividend you have a lot of cash it's not a good.

Speaker Change #297: Use of shareholder cash I know you have the main shareholder and I know.

Speaker Change #298: You, probably don't really care, what people say, but you.

Speaker Change #299: Just having money in the bank.

Speaker Change #300: Is that a good it hurts your return on invested capital. So it's hurting your fundamentals.

Speaker Change #300: And you should either put that to better use or return it to shareholders and like Matthew said.

Peter Rue: And like Matthew said, a small $50 million dividend would probably greatly increase your overall market capitalization by that or more. And it would instill some confidence in the market that you treat your fellow small shareholders with respect. My second question is, even though you made $90 million of cash, your cash balance did not increase at all. In fact, it went down a little bit. And, as a prior gentleman said, your prepaid expenses and other assets went up 200%. It's the second largest item, second largest asset on your balance sheet. And I did not understand what your CFO was saying.

Matthew Lewton Larson: Small $50 million dividend.

Speaker Change #302: Would probably greatly increase your overall.

Peter Ryu: Market Capitalization by that or more, and it would instill some confidence in the market that you treat your fellow small shareholders with respect. My second question is, even though you made $90 million in cash, your cash balance did not increase at all. In fact, it went down a little bit, and, as the prior gentleman said, your prepaid expenses and other assets went up 200%.

Speaker Change #303: Market capitalization by that or more.

Speaker Change #304: And that word and still some carpet in.

Speaker Change #305: And the market.

That you treat your fellow small shareholders with respect my second question is even though you paid $90 million of cash.

Speaker Change #306: Your cash balance did not increase at all in fact, it went down a little bit.

Speaker Change #307: And as the prior gentleman said.

Peter Ryu: It's the second largest item, the second largest asset on your balance sheet, and I did not understand why. Unknown Speaker What was your CFO saying? Prepaid Expenses and Other Assets, what are they? That went from 400 million RMB to 1.2 billion RMB, an increase of over 800 million RMB, a 200% increase. Could you, the founder, Mr. Tang, tell us? Because I can understand you better than your CFO. First of all, thank you very much for your Yeah, asking again about the dividend. Yeah, so we understand. Yeah, the importance of this issue. But did you? Were you there?

Your prepaid expenses and other assets.

Speaker Change #308: It went up 200%, it's the second largest item.

Speaker Change #308: Second largest asset.

Speaker Change #308: On your balance sheet.

Speaker Change #309: And I did not understand.

Speaker Change #310: Your CFO was saying.

Peter Rue: Prepaid expenses and other assets. What are prepaid expenses and other assets that went from 400 million R&B to 1.2 million R&B, an increase of over 800 million R&B, a 200% increase.

Speaker Change #311: Prepaid expenses and other assets.

Speaker Change #311: Our prepaid expenses and other assets that.

Speaker Change #312: That went from 400 million RMB.

Speaker Change #312: Two 1.2 billion RMB.

Speaker Change #312: An increase of over 800 million.

Speaker Change #312: M B, a 200% increase.

Speaker Change #312: Yeah.

Peter Rue: Could you, the founder, Mr. Tang, tell us that I can understand you better than your CFO? So, first of all, thank you very much for your asking again about the dividend. Yes, the importance of this issue, but did you, were you there at the beginning of the Q&A session? My, yeah, I heard your answer to Matthew, and you said that it is under consideration. I was hoping you would announce that this month, since you've had three months to hear our feedback in the last conference call.

Speaker Change #313: Could you the founder Mr. Tang tell us because I can understand you better than your CFO.

Speaker Change #314: First of all thank you very much for it.

Speaker Change #314: Yeah.

Speaker Change #314: And again about that that'd be burdened yeah the awareness.

Speaker Change #314: Yeah.

Speaker Change #315: Yeah Yeah.

Speaker Change #316: The importance of this issue, but it did do it where are you there.

Ning Tang: At the beginning of the q&A session? Was I clear about my, uh, yeah, well, yeah, yeah, yeah, yeah, yeah. I heard your answer to Matthew.

Speaker Change #316: The beginning of the Q&A session.

Speaker Change #316: Clear about that.

Peter Ryu: And you said that it is under consideration. I was hoping you would announce that this month since you've had three months to hear our feedback from the last conference call. And I don't know if I should sell your stock or keep it for another three months if you're just going to tell us in another three months that you're still investigating it.

Speaker Change #316: My yeah.

Speaker Change #317: Well, yes.

Speaker Change #318: Yes, yes, yes, I heard your answer to Matthew and you said that it is under consideration.

I was hoping you would announce this months since you've had three months.

Speaker Change #319: To hear our feedback from the last conference call.

Ning Tang: And I don't know if I should sell your stock or keep it for another three months. If you're just going to tell us in another three months that you're still investigating it, you've had three months to think about it, and you did nothing today with regards to the dividend. And so I don't have to repeat my, yeah, I'm sorry. Yeah, at the beginning of the Q&A session. And yeah, we will try and do a good job evaluating this issue. And regarding the prepaid expenses, I don't know what additional color 10 now provided, but now can you be, yeah, how about, if you can?

Speaker Change #319: Dan.

Dan: And I don't know if I should sell your stock or cheaper for another three months, if you're just going to tell us in another three months that you're still investigating that you've had three months.

Dan: Think about it and you did nothing today with.

Ning Tang: You've had three months, [inaudible] with regard to the dividend. So I don't have to repeat my answer at the beginning of the Q&A session, and yeah, we will try and do a good job evaluating this issue. And regarding the prepaid expenses, I don't know what additional color I can now provide, but now can you please, yeah, help out? If you can.

Dan: With regard to the dividend.

Speaker Change #321: And so I don't have to repeat my yeah yeah.

Speaker Change #321: The beginning of that.

Speaker Change #322: A Q&A session.

Speaker Change #322: Yeah, we will.

Speaker Change #322: Yeah.

Speaker Change #322: Try and do.

Speaker Change #322: Do a good job evaluating this issue and the regarding the that the prepaid expenses.

Speaker Change #323: I don't know what additional color can now provide.

Speaker Change #324: Now can you please that yeah.

Speaker Change #324: Help out.

Speaker Change #325: If you can.

Na Mei: Yeah, I can add some information about our cash management we can do currently. First, we now use our funds to service our current business. For example, we used our funds to cooperate with a trust company to set up a trust plan to facilitate our Yi Xiang Hua loan. And in the first quarter of this year, our cooperation with the trust plan was about 500 million RMB. And we also plan to use our funds to acquire some financial licenses which our financial service business requires.

Unknown Attendee: Yeah, I can answer an information about our touch measurement. We can do currently. And a quick survey, we now use our phone to go with our current business. For example, we used to do our phone to cover the way the trust company, to set up the trust of blind, to facilitate our use of our loan. And the foot the cover of this year, our cooperation with the Trust of Blind is about $500 million. And we also plan to use our phone to apply some financial license, which our financial bill is making quite, yeah, the foot, the foot, the foot, and the second foot. As I mentioned in my quick, we also continue to do our paybacks continually and set up a separate blind for all staff.

Speaker Change #326: Oh, Yeah, I can add some information about our cash management, we can do a comparable.

Speaker Change #326: Uh huh.

Speaker Change #326: Now.

Speaker Change #327: I'll try to go into all kind of business like Samsung pay to our filing to calculate the rates across the company.

Speaker Change #327: To us that have the attractive flying to facilitate all of you sound quite alone and is the first to call. The fifth year, Oh, a calculation that I talk to clients a voluntary five psi hungry the meaning.

Speaker Change #327: And Oh, so trying to I guess I found it quite some natural lifecycle, which our financing needs are quiet.

Na Mei: Yeah, the first purpose. And the second purpose, as I mentioned in my script, we also continue to do our share payback consistently and set up exemplary clients for our staff. And for this quarter, we have used 2.1 million dollars to do our share purchase in marketing, and we have accumulated about 10 million US dollars to do this.

Speaker Change #327: So first the first that's the first and the second part so as I mentioned in my script. We're also continuing to do our shadow payback.

Speaker Change #328: Uh huh.

Speaker Change #329: Well I'll start.

Speaker Change #330: And Oh, well this half what you got to put $1 million to our a sharper trends in the magazine and and accumulate it went to pop out.

Unknown Attendee: And for this talk, I don't have what is the two-count $1 million to do our shell purchase in the marketing. And I'm accumulated way to talk about to meeting US dollars to do the thing. And we're also able to continue our shell courses in the future. And there will also come things up; we'll make the water pump. And there will finally find lots, but most of the, as you mentioned, they're doing and getting that to, we will keep on licensing now. And I left the RMP, except for self-tapping. Could you add them to also perform on its terminal license?

Speaker Change #331: I mean U S dollars.

Na Mei: And we will also keep on continuing our share purchase in the future. And we're also confident in our business development. And finally, but not least, as I mentioned, during any gain, we will keep on developing our AI lab and LMP, except for the technical development. Also, from our external advisors, we advise the AI areas. So also, it's our preliminary review. We can say if something is finalized about our advice, obviously, the external AI areas will find time to show public awareness.

Speaker Change #331: We're also came home country you also of course in the future.

Speaker Change #332: I know that also comes in in August one and then finally my last one button mouse laughter.

Speaker Change #333: But there are they and their teams that are well known coupons I think now I'll ask Andrew L. M. P is that airports out technical due out of them.

Speaker Change #333: From my is $10 wisely.

Unknown Attendee: Yeah, so also it's a trading and a really real, we can see if something centralized about our license, obviously on the terminal, and it's a real finding, coming to show the public awareness. Okay, I hope I can give something for you. Thank you. Thank you.

Speaker Change #333: Yeah.

Speaker Change #333: So oh, so its ultra eliminate ways that we can stay way, if it's something kind of like about always weizmann honestly and 10 O olive oil finding tending to show the public awareness.

Speaker Change #334: I hope I can give you something important information. Please thank you.

Yeah.

Unknown Attendee: And ladies and gentlemen, at this time, we will conclude our question-and-answer session, and we will also conclude the Yirend digital conference call. If you have further questions, please contact the Investor Relations team at Yirend Digital. Thank you for attending today's presentation.

Speaker Change #335: Thank you.

Na Mei: Okay, I hope I can give you some more information for you. Thank you. And ladies and gentlemen, at this time, we will conclude our question and answer session, and we will also conclude the ERIN Digital conference call. If you have further questions, please contact the Investor Relations Team at Yarn Digital. Thank you for attending today's presentation. You may now disconnect. Keyao He, Unknown Executive, Unknown Attendee, Mei Zhao, Na Mei, Ning Tang, Lydia Yu, Yirendai, Ning Tang, Yirendai. Yirendai. [inaudible]

Speaker Change #336: And ladies and gentlemen at this time, we will conclude our question and answer session and we will also conclude the yarn digital conference call.

Speaker Change #337: If you have further questions. Please contact the Investor relations team at yarn that at all.

Speaker Change #338: Thank you for attending today's presentation you may now disconnect.

Unknown Attendee: You may now disconnect.

Speaker Change #338: [music].

Speaker Change #338: Okay.

Speaker Change #338: [music].

Speaker Change #338:

Speaker Change #338: Yeah.

Speaker Change #338: [music].