Q4 2025 Yiren Digital Ltd Earnings Call

March 19, 2026

Good day and welcome to the yard mine digital fourth quarter and full year 2025 earnings conference call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero after today's presentation there.

It will be an opportunity to ask questions to ask a question. Please press Star then one on your Touchtone phone.

John Your question. Please press Star then two please note. This event is being recorded I would now like to turn the call over to Mr. Joe Yeah, you're.

Director of Investor Relations of your Iron Digital. Please go ahead ma'am.

Okay.

Zoya Ji: Thank you, operator. Good morning and good evening, everyone. Today's call features a presentation by our founder, chairman, and CEO, Mr. Ning Tang, and our CFO, Mr. William Hui. There will be a question and answer session after the prepared remarks. Before beginning, we'd like to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provision of U.S. Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any such statements. Further information regarding such risks, uncertainties, or factors is included in our filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under relevant law.

Thank you operator.

Good morning, and good evening, everyone. Today's call features a presentation by our founder chairman and if they all meet Janine town and our CFO Mr. William Wei there will be a question and answer session. After the prepared remarks.

Before beginning we'd like to remind you that discussions during this call contain forward looking statements made under the safe Harbor provision of U S private security and vegetation with Swarm Act.

Wow.

1995, such statements are subject to a risk on snacking occasion, and the factors that can cause actual results to differ materially from those contained in any such statements.

Further information regarding such risks uncertainties or factors is included in our filings with the U S Securities and Exchange Commission, we do not undertake any obligation to update any forward looking statements as required under relevant law.

Zoya Ji: During the call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about those non-GAAP financial measures and the reconciliation to GAAP measures, please refer to our earnings press release. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on our IR website. I will now pass it on to our CEO, Mr. Tang, for opening remarks.

During the call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and assess our operating performance is now gaps by national measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented.

In accordance with U S. GAAP for information about those non-GAAP financial measures and it really constellation to GAAP measures.

Please refer to our earnings press release.

As a reminder, this conference is being recorded in addition, an investor presentation and a webcast a replay of this conference call will be available on our IR.

Our web site.

I will now puppies to oversee all of Mr. Tao for opening remarks.

Ning Tang: Thank you, Zoya. Good day, everyone, and thank you all for joining us. In 2025, we celebrated 10-year anniversary of our listing on the New York Stock Exchange. Together, we've reached many milestones. We made a breakthrough in our AI innovation, where we completed regulatory filing of our own large language model, Zhiyu. In the second half of the year, we released our first multi-agent platform, Magicube. With support of these AI tools, we incubated our internet insurance business, which has achieved strong growth quarter after quarter in 2025. 2025 was also a year that demanded the best of us, and our team delivered. Heightened credit regulations and industry-wide deterioration in credit quality created significant pressure across our business. Yet we navigated these headwinds with discipline and operational resilience. Equally important, we enter 2026 with growing confidence.

Thank you joelle good.

Good day, everyone and thank you all for joining us.

In 2020 five we celebrated 10 year anniversary of our listing on the New York Stock Exchange.

Either we've reached many milestones.

We made a breakthrough in our AI innovation, where we completed regulatory filings of our own large language mono June.

In the second half of the year.

We released our first multi agent platform magic too.

With support of these AI tools, we incubate it our internet insurance business, which has achieved.

We're all quarter.

Well quarter after quarter in 2020 five.

Plenty plenty of five was also a year that demanded the basketballs boss.

And our team believes work.

Heightened according to the regulations and the industry wide deterioration in credit quality.

Significant pressure across our business.

Yet we navigated these how do weeks with discipline and operational resilience.

Equally important we under 2026 with growing confidence.

Ning Tang: Our next generation fintech platform is gaining meaningful traction and validating the strategic investments we've made. I'm deeply grateful to our entire team for their dedication and resolve through one of the most challenging periods in our recent history. The rapid advancement of AI is fundamentally reshaping the industries we operate in, and we believe we are uniquely positioned to lead that transformation. Our years of deep vertical expertise in credit facilitation and insurance brokerage, combined with the AI infrastructure and agent technologies we've purposefully built, give us a differentiated foundation to reimagine our business ecosystem, accelerating growth and unlocking new avenues of innovation. Amid these challenges, we made meaningful progress on the two strategic priorities that will define Yiren Digital's next chapter. The continued scaling of internet insurance distribution as our second core growth engine, and the accelerating integration of AI capabilities across our business operations.

Our next generation Fintech platform is gaining meaningful traction and are validating the strategic investments we've made.

I'm deeply grateful to our entire team for their dedication and resolve.

One of the most challenging periods in our recent history.

The rapid advancement of AI is fundamentally reshaping the industries, we operate in.

And we believe we are uniquely positioned to lead that transformation.

Our year, so deep vertical expertise in quality simplicity patient and insurance brokerage combined with the infrastructure and you Didnt technologies, we've purposefully built.

Gave us a differentiated gates foundation to re imagine our business ecosystem.

The salary can grow and unlocking new avenues of innovation.

I mean, there's challenges we made a meaningful progress on the strategic priorities that will that would be fine immediate host next chapter.

The continued scaling of didn't turn out the insurance distribution.

Our second core growth engine.

And then celebrating integration of AI capabilities across our business operations.

Ning Tang: Both are delivering results and both give us confidence in the trajectory ahead. For years, we have applied our proprietary AI capabilities to continuously analyze our platform data, systematically searching for where our next growth opportunity lies. That process of discipline discovery led us to a clear and compelling insight. Our users demonstrated strong, validated demand for online insurance products, demand that was underserved and ripe for a technology-driven solution. In Q3 2025, gross written premiums generated through our internet insurance distribution business surged by 206% quarter over quarter. This strong momentum continued in Q4 with another 95% quarter over quarter growth. The revenue contribution to the segment had reached 22% in Q4.

Both are delivering results and both give us confidence in that.

Doctors are hot.

For years, we have applied our proprietary AI capabilities to continuously analyze our platform data.

Systematically searching for where our next growth opportunity lies.

That process, so principally in discovery led us to a clear and compelling insight.

Our users demonstrated strong validated demand for online insurance products.

Demand that was underserved and the right for a technology driven solution.

In the third quarter of 2025 gross written premiums generated through our internet of insurance distribution business surged to by 206% quarter over quarter.

This strong momentum continued in the fourth quarter with another 95% quarter over quarter as well.

And there's a revenue contribution to the segment had a rich the 22% in the fourth quarter.

Ning Tang: 2025 was also a landmark year in the comprehensive build-out of our AI infrastructure, where we closed the gaps and reached significant milestones. Following the regulatory filing of Zhiyu, our proprietary large language model in April, we launched the Magicube in October, our internally developed agent integration platform, purpose-built for enterprise-scale AI deployment. Magicube is the connective infrastructure that enables large-scale coordinated deployment of multi-agents across every critical function of our credit lending business, from sales and risk management to capital planning, compliance, and customer service. With Magicube in place, we have laid the foundation to automate processes with AI-driven agents throughout our operations, a transformation that we believe will fundamentally redefine how Yiren Digital operates and competes in the marketplace. The depth of our AI integration is best reflected in its financial impact.

2025 was also a landmark year in the comprehensive build out of our AI infrastructure.

Where we close the gaps and the reached significant milestones.

Following the regulatory filing that's G. Our proprietary large language model in April we launched the magic Cube in October.

Our internally developed the Asian integration platform purpose built for enterprise scale AI deployment.

Magic too is to come back to infrastructure that enables large scale coordinated deployment of multi agents across every critical function of our quietest lending business.

Sales and risk management to capital planning compliance and customer service.

The magic killed in place, we'll have laid the foundation to automate processes with a I agree then agents throughout our operations.

A transformation that we believe will fundamentally redefine how even digital operates and compete in the marketplace.

But that of our AI integration is past the reflected in this financial impact in.

Ning Tang: In 2025, AI-driven optimizations generated cost savings exceeding RMB 80 million, driven by the deployment of AIGC for marketing and AI-assisted outbound customer service. Capabilities that have structurally reduced our dependence on both external vendors and internal headcount, and better cost and capital efficiency. The operational impact of our AI deployment is best illustrated through concrete examples. Response times for our real-time AIGC-powered customer service script generation were cut by more than half from 1.2 seconds to under 0.6 seconds, delivering measurably smoother customer interactions at scale. In a particularly compelling demonstration of our internal AI capabilities, our R&D team rebuilt our IVR system entirely in-house, decreasing our dependence on an external vendor and reducing the cost per call by 84% from RMB 0.95 to RMB 0.15.

In 2020 five.

Optimization generated cost savings exceeding RMB 80 million drill.

Driven by the deployment of G C for marketing and AI assisted outbound customer service.

Capabilities that have structurally reduced our dependence on both external vendors and internal high pop and better cost and capital efficiency.

The operational impact of our AI deployment is bad, but he loves to Kid who concrete examples.

Spawns times, well, our real time AI G C powered a customer service gripped the generation well cost by more than half from 1.2 seconds too and their 0.6 seconds.

Labor in measurable is more customer interactions at scale.

In a particularly compelling demonstration of our internal AI capabilities, our R&D team rebuild our IV our system entirely you know house decreasing our dependence on not an external vendor and reducing the cost per car by 84%.

RMB 0.952, RMB 0.1 spot.

Ning Tang: Meanwhile, our AI-powered intelligent routing 2.0 system brought a step change in productivity to our fund management team, replacing legacy Excel-based workflows with an intelligent natural language interface driven by our two proprietary AI agents, EQ Agent and Duque Bot, fundamentally modernizing how our team operates day to day. These technological advancements are now just improving how we operate. They are redefining who we are. Our AI-enabled capabilities across intelligent marketing, smart capital management, and advanced risk control have strengthened our ability to deliver technology solutions to the broader credit industry. Revenue from technology-driven services, including networking, marketing, and technical support, has grown significantly year-over-year, validating the commercial potential of our AI capabilities beyond our core business. We are now accelerating this growth to transform the company from a fintech platform into an AI-native company for multiple industries.

Meanwhile, our AI powered.

Intelligent routing 2.0 system brought us stopped change in productivity to our fund management team.

Replacing legacy Excel based workflows.

Intelligent natural language interface, driven by our two proprietary agents.

He kill agent and the two chip balked fundamentally modernizing how our team operate day to day.

These.

Put them a logical advancement.

Oh, just the improving how we operate we are redefining who we are our AI enabled capabilities across intelligent marketing smart capital management and advanced the risk control have strengthened our ability to deliver technology solutions to the broader credit industry.

Revenue from technology, driven services, including malware team marketing and technical support has gone significantly year over year validating the commercial potential of our AI capabilities beyond our core business.

Well now the salary team as well to transform the company from a fintech platform into an AI native company for multiple industries.

Ning Tang: Finally, I'd like to review the performance of our credit solution business against the market backdrop in 2025. In Q4, we facilitated RMB 12.0 billion in loan origination, moderated by 22% year-over-year and 40% quarter-over-quarter. The moderation reflected our financial discipline when credit environment was difficult. We focused on higher quality credit during the quarter, which led to reduction in loan facilitation activities. For the full year, however, total loan facilitation reached RMB 67.8 billion, up by 26% from RMB 53.6 billion in 2024. As of 31 December 2025, the cumulative number of borrowers we had served exceeded 14.3 million, representing a 16% increase from approximately 12.4 million at the end of 2024.

Finally, I'd like to review the performance of our quietest solution business against the market backdrop in 2025.

In the fourth quarter, we facilitated RMB 12.0 belief in long Island Jewish all reach of nations moderated by 22% year over year.

And a 40% quarter over quarter.

The moderation reflected our financial discipline.

Quite an environment most difficult.

We focus on our higher quality credit during the quarter, which led to reduction in loan facilitation activities.

For the full year. However, total loan facilitation reached the RMB $67 8 billion up by 26% from RMB $53 6 billion in 2024.

As of December 31st the 2020 five the accumulated number of borrowers will have served exceeded $14 3 million, representing a 16% increase from approximately $12 4 million at the end of 'twenty 'twenty four.

Ning Tang: During 2025, we strengthened our customer analytics and operational management with a particular focus on maximizing the lifetime value of high-quality repeat borrowers. At the same time, we maintained a prudent approach toward new customer acquisition. Through enhanced data analytics and more refined customer segmentation, we prioritize the management and engagement of high-quality existing borrowers. As a result, our repeat borrowing volume remained high at 77% in Q4 2025, compared to 65% in the same period of 2024. Meanwhile, the average loan ticket size on our lending platform increased from RMB 8,000 in Q1 to RMB 11,500 in Q4 2025. These operational strategies allowed us to effectively control customer acquisition costs while retaining higher quality borrowers with deeper credit insights and stronger brand trust.

During 2025, we strengthened our customer analytics and operational management with a particular focus on maximizing the lifetime value of high quality repeat borrowers.

At the same time, we maintained a prudent approach towards new customer acquisition.

Through enhanced data analytics and the more we find the customer segmentation, we prioritize the management and engagement of high quality existing borrowers.

As a result, our repeat borrowing volume remained high at 77% in the fourth quarter of plus 25 compared to 65% in the same period of 2024.

Meanwhile, the average loan ticket size, our lending platform increased from RMB 8000 in the fourth quarter to RMB 11500 in the fourth quarter of 2025.

This operational strategies allowed us to effectively control customer acquisition costs, while retaining higher quality borrowers with deeper credit insights and strong group grant trough.

Ning Tang: The quality from the legacy assets came under pressure in Q4, with the delinquency rate reaching a cyclical high in October. Our 1- to 30-day delinquency rate for Q4 reached 3.4%. The 31- to 60-day rate was 3.0%, and the 61- to 90-day rate stood at 2.8%. These levels are in line with industry trends and the macroeconomic environment. During 2025, assets under the risk-taking model nearly doubled, which contributed to an increase in our guarantee service revenue as the result of changing credit requirements by our partners. Encouragingly, our leading risk indicators are beginning to turn. Our first payment default rate, FPD thirty for loan delinquency over thirty days, has been on a declining trend since October 2025, recently approaching the levels observed in the first half of 2025.

The quality of from the legacy assets came under pressure in the fourth quarter.

Delinquency rate, reaching a cyclical high in October.

Our one 230 day delinquency rate for fourth quarter reached three 4%.

31% to 60 day rate was 3.0% and then 61 to 90 day rate stood at two 8%.

These levels are in line with industry trends and the macroeconomic environment.

We're in 2025 assets and the risk of taking motto nearly doubled.

Which contributed to an increase in our guaranteed service revenue as a result of changing credit requirements by our partners.

Encouragingly, our lending our leading indicators.

Turning to chart.

Our first payment default rate.

PD 34 loan delinquency over 30 days has been on a declining trend since October 2025.

Recently approaching the levels observed in the first half year of 2025.

Ning Tang: We believe these are early but meaningful signals that the credit cycle is gradually turning, and we expect a broader easing of the credit environment to support continual improvement in both industry conditions and our own asset quality metrics, giving us well-founded confidence in our ability to deliver disciplined and stable operations in 2026. On the institutional funding side, we secured white list status with 29 institutional funding partners as of the end of 2025, and this number continues to grow in the new year, reflecting recognition of our risk management capability and the financial discipline by our partners, as well as less competition in the market and the new regulatory framework. As the industry digests the impact of the new regulations and the market consolidates, we are confident that leading highly compliant players like us will benefit.

We believe these are early but meaningful signals that the credit cycle is gradually turning.

And we expect a broader easing of the credit environment to support competing on the improvement in both industry conditions and our own asset quality matrix.

Ah well founded the company its confidence in our ability to deliver a discipline and the stable operations in 2026.

On the institutional funding side, we secure the widely used the status with 29 institutional funding partners as of the end of 2025 and this number continues to grow in the new year.

Reflecting recognition of our risk management capability and the financial discipline by our partners as well as less competition in the market and the new regulatory framework.

As the industry digests, the impact of the new regulations and the market consolidates we.

We're confident that leading highly compliant players like us will benefit.

Ning Tang: In overseas markets, we expect to gradually expand our operations in the existing Philippines and the Indonesian markets while maintaining prudent financial discipline and a clear focus on profitability. We look forward to showing you more results in the coming quarters. As mentioned earlier, our traditional insurance brokerage business, which is predominantly anchored in a traditional sales network, has found new direction of growth. Amid the regulatory headwind on commission rate and the macroeconomic challenges in Q4, gross written premiums of our insurance brokerage business reached RMB 860.1 million, down 22% year-over-year, while full year premiums reached RMB 3.7 billion, a 17% decline from 2024. However, the composition of the revenue and the premium has changed significantly as contribution from internet insurance business increased rapidly in the past few quarters, largely filling up the gap from the traditional line.

In overseas markets, we expect to gradually expand our operations in the existing Philippines, and Indonesia markets, while maintaining prudent financial discipline and a clear focus on profitability.

We look forward to showing you more results in the coming quarters.

As mentioned earlier, our traditional insurance brokerage business, which is predominantly anchored in a traditional sales network has found new direction of cool.

I mean, the wrap up sort of how do we commission rate and the macroeconomic challenges in the fourth quarter gross written premiums of our insurance brokerage business reached RMB $860 1 million down 22% year over year, while full year premiums reached the RMB three points.

7, billion% to 17% decline from 'twenty to 'twenty four.

However, the composition of the revenue and the premium has changed significantly.

It's contribution from internal insurance business increased rapidly in the past few quarters, largely filling up the gap from the traditional line.

Ning Tang: Our internet insurance business has delivered a meaningful expansion in both customer base and policy volumes, reinforcing our conviction that internet insurance represents a sustainable and a scalable second growth engine for Yiren Digital. For the insurance brokerage business as a whole, at the end of 2025, we had served over 2 million insurance clients, up 33% from 1.553 million at the end of 2024. New policies issued reached 2.3 million, a 25% increase from 1.8 million in 2024. As internet insurance continues to contribute more to our total brokerage revenue in 2026 and serves as a low-cost customer acquisition channel for the entire platform, we are confident that our insurance business will successfully turn to both growth and profitability. To summarize, 2025 was a year that demanded resilience and revealed opportunity.

Our internet of insurance business has delivered a meaningful expansion in both customer base and the policy volumes really reinforcing our conviction that internet insurance represents a sustainable and scalable second growth engine or even digital.

For the insurance brokerage business as a whole at the end of 2025, we had.

And served over 2 million insurance clients.

33% from one point.

Five 3 million at the end of 'twenty 'twenty four.

New policies issued reached $2 3, million% to 25% increase from $1 8 million in 2024.

As Internet insurance continues to contribute more to our total brokerage revenue in 2026 and has served as a low cost customer acquisition channel for the entire platform. We are confident that our insurance business will successfully turned to both growth and profitability.

To summarize plenty of 25, what's the year that demanded resilience and reviewed opportunity.

Ning Tang: We navigated one of the most challenging credit environments in recent history while simultaneously reshaping consumer credit, insurance, and industries far beyond. We intend to be at the forefront of that transformation, not merely a participant in it. We are actively building toward that future, incubating AI native business models, developing technology-driven revenue streams from our credit solutions, and reshaping our insurance brokerage business by fully integrating our online and offline capabilities as the cornerstone of long-term growth. Encouragingly, leading indicators increasingly signal that the worst of the credit stress cycle is behind us, and our core lending business is embracing recovery with renewed momentum. As we enter 2026, we are optimistic about the recovery of our core business. We are confident in our strategy and commitment from the team that delivered through one of the most demanding years.

We navigated one of the most challenging credit environments in recent history, while semi test.

Is reshaping customer consumer credit insurance and industrious far beyond and.

And we intend to be at the wharf brown of that transformation not merely a participant in it.

We are actively building towards that future.

Incubating AI native business models, developing technology, driven revenue streams from our credit solutions and reshaping our insurance brokerage business by fully integrating our online and offline capabilities.

Cornerstone of long term growth.

Encouragingly, leading indicators increasingly signal that the worst of the quieted stress cycle is behind us and novel core lending business is embracing recovery with renewed momentum.

As we enter 2026, we're optimistic about the recovery of our core business. We are confident in our strategy and commitment from the team that delivered through one of the most demanding gears.

Ning Tang: Our AI foundation has been laid, and we continue building it. With that, I'll now pass it over to William, who will provide more details on the financials for this quarter and the full year.

Our AI Foundation has been laid and the weak continue building it.

With that I will now pass it over to William who will provide more details on the financials for this quarter and that the full year.

Ka Chun William Hui: Thank you, Ning. Hello, everyone. I will be walking you through our financial performance for Q4 and full year 2025. Please refer to our earnings release and IR deck for further details, both available on our website. This quarter reflects continued progress across several of our key strategic priorities. First, our investment in AI are beginning to translate into tangible outcomes. We achieved direct net cost savings of approximately RMB 80 million, driven by improvements in areas such as high sales conversion, customer service automations, and risk management efficiency. This figure excludes other business benefits from AI, such as avoidance of fraud losses, savings from staff training, and other indirect cost savings because of AI. In addition, our proprietary AI technology is beginning to generate revenue in new business within the credit solutions and internet insurance segment. Second, our internet insurance business continues to gain momentum.

Thank you <unk> Hello, everyone I will be walking you through our financial performance for the fourth quarter and full year 2025.

Please refer to our earning release and IR for further details.

Both are available on our website.

This quarter reflects continue.

Progress across several of our key strategic priorities.

First.

Our investment is beginning to translate into.

Principal outcomes.

We achieved direct net cost savings.

Lynn.

18 million RMB.

Driven by improvements.

Areas, such as high sales conversion.

Customer service automation.

Management efficiency.

This figure excludes.

<unk> benefits from a is the truth.

Appointment of losses.

Greetings from staff training.

Indirect cost savings because of AI.

In addition, our proprietary AI technology is beginning to generate revenue new Christmas with the credit solutions.

Insurance segment.

Second our Internet insurance business continues to gain momentum.

Ka Chun William Hui: During the quarter, we recorded gross written premiums of RMB 50 million, representing 95% quarter-over-quarter growth. The annualized premium reached RMB 267 million in Q4, representing 36% growth quarter-over-quarter, up from as initially announced in Q4 of 2024. The revenue accounted for 22% of the revenue from our entire insurance segment in Q4 of 2025. We expect this revenue contribution to continue to grow and take a bigger revenue share in 2026. For the credit solution business, 2025 was a unique year. We began with a very good growth momentum, seeing a 43% growth in loan facilitation volume in the first half of 2025. However, we subsequently faced a downward trend in the credit cycle alongside regulatory changes.

During the quarter, we recorded gross written premiums of 50 million RMB.

Present in 95% quarter over quarter growth.

Yeah, and new lines premium reach.

267 million isn't going to be in the fourth quarter.

36% growth quarter over quarter.

From the Triple in Maryland, and the fourth quarters of 2024.

The revenue accounted for 22% of the revenue from our entire insurance segment, the fourth quarters of 2025.

We expect this to happen.

<unk> contribution to continue to grow.

Ticket because.

Revenue shares in 2026.

While the credit solutions business.

25 last year.

He came with a very good growth momentum.

43% growth in patient volume in the first half of 2025.

Yeah.

However, subsequent phase of public trading liquidity cycle alongside.

With the regulatory changes.

Ka Chun William Hui: In the second half of 2025, we shift our strategic priority to credit quality over loan growth, resulting in a 22% year-over-year contraction in our loan volume. Having said that, we are seeing early signs of turnaround in our credit cycle. Key credit metrics have improved. The 30 days first payment delinquency, or FPD rate, peaked in October 2025 and began to stabilize and trend down in November 2025. Figures for December 2025 and January 2026 have improved more than expected. The delinquency rate in February was 38% below the peak, which is already back to the May 2025 level when credit quality began to deteriorate. However, as a reminder, there is typically a lag of one or two quarters before these improvements are fully reflected in our financial results.

In the second half of 2025.

Our strategic priority to credit quality overall loan growth.

Is something in the 22% year over year.

Construction genome.

Liam.

Got that.

Yeah.

The turnaround in the credit cycle.

Key credit metrics improve.

There are 30 days for its premium delinquency.

Right.

In October 2025.

It became to stabilize and trend down.

Remember 2025.

Figures for December 2025 between January 2026 improved more than expected.

They're dealing with you in February it was 38% below the peak.

Which is already back to the late 2025 level and credit quality.

Deteriorate.

However, as a reminder, as a reminder, there is typically a lack of one or two quarters before things improve.

Were not fully reflected in all.

Provincial result.

Ka Chun William Hui: Overall, we remain focused on maintaining strong balance sheet with cash positions of CNY 3.3 billion while continuing to invest in AI capabilities and high growth opportunities. We believe this balanced approach positions us well for sustainable long-term growth. Turning to the key financial figures for Q4 and full years of 2025. Total revenue for the full year 2025 was CNY 5.72 billion, representing 1.5% decrease from 2024. The decrease was a result of prioritizing credit quality over loan growth in the second half of the year as we tightened our credit policy in response to a challenging credit environment. Full year loan facilitation volume was CNY 67.8 billion, representing 26% growth comparing to the full years of 2024.

Okay.

Oh, because we're maintaining a strong balance sheet.

With the cash position of $3 3 billion in R&D.

While continuing to invest in capabilities in high growth opportunities.

We believe this balanced approach position us well for sustainable.

Long term growth.

Turning to the key financial figures for the fourth quarter of 2025.

Total revenue for the full year 2025 was.

Slide 17 spot quoted 72 billion in R&D.

Representing one 5% decrease from 2024.

The decrease was the result of prioritizing credit quality overall loan growth in the second half of the year.

As we pointed out.

Our credit policy.

On to a challenging credit environment.

Loan facilitation volume was.

67 billion already.

Presenting 26% growth comparing to two full years of 2024.

Ka Chun William Hui: This growth was driven by strong performance in Q1, Q2, Q3, partially offset by a contraction in loan volume during Q4 2025. Our guarantee services also saw significant growth, with revenue reaching RMB 612 million in Q4 2025, up nearly 196% year-over-year as we shift more loan origination to a risk-taking model during the year. Regarding credit quality, our 31 to 60 days and 61 to 90 days delinquency rates reached 3% and 2.8% respectively in Q4. While the 1 to 30 days delinquency rate reached 3.4% in Q4 2025.

This growth was driven by strong performance in the first three quarters.

Partially offset by a contraction in.

Loan volume during the fourth quarters of 2025.

Our guarantee services also saw significant growth with revenue, reaching 612 million RMB.

The fourth quarters of 2025.

<unk> hundred 96% year over year.

As we ship more who no origination to a risk taking multiple during the year.

Regarding credit quality.

About 31% to 60 days.

61 to 90 days delinquency rates reached 3%.

And two 8% respectively in the fourth quarter.

Well, the 1% to 30 day delinquency rate each street.

In the fourth quarters of 2025.

Ka Chun William Hui: This reflects the higher risk environment and in response, we have tightened our credit policies. Our upgraded AI-driven risk management system is enabling us to more frequently and effectively assess and mitigate risks across our portfolio. Looking at the same metrics on a monthly basis, the delinquency rate peaked in October and gradually decreased in December 2025. For instance, the 1 to 30 days FPD rates decreased by 38% from October 2025 to January 2026. For the customer acquisitions, our AI models have enhanced our ability to understand customer behavior and execute more effective precision marketing strategies to drive higher sales conversion. As a result, customer acquisition cost as a percentage of total loan facilitation volume declined by 80 basis points to a record low in the Q4 compared to the same period in 2024.

This reflects the higher risk environment anyway.

Response.

Clayton.

Our credit policies.

Our upgrade interest in risk management system is enabling us to more frequently.

Secondly, assess and mitigate risk across our portfolio.

Who can get the same metrics on a monthly basis that delinquencies. They peak a program in October.

Gradually decrease in December 2025.

For instance.

The one to 30 days of PT rate.

Creased by 38% is from October 2025.

January we Couldnt really say.

<unk>.

Well the customer acquisitions.

Our models have it here.

Our ability to understand customer behavior.

And execute.

Precision marketing strategies to drive higher sales conversion.

As a result customer acquisition cost as a percentage of.

Total loan facilitation volume declined by 80 basis points to a record low.

Fourth quarter compared to the same period.

24.

Ka Chun William Hui: In the insurance brokerage segment, our gross written premium decreased by 22% year-over-year to RMB 860 million in Q4 2025, and the full year gross premium was down by 17% year-over-year. The decrease was due to a premium from the traditional channel which decreased by RMB 290 million. That decrease was partially offset by RMB 50 million increase from the internet insurance. For Q4 2025, revenue from the overall insurance brokerage segment was RMB 84 million compared to RMB 106 million in the same period of 2024. The internet insurance revenue contributions accounts for 22% of the total segment revenue in the fourth quarter and 14% for the full years of 2025.

In the insurance brokerage segment gross written premiums decreased 22% year over year too.

260 million R&D in the fourth quarter of 2025.

And our full year gross premium was down 17%.

Year over year.

The decrease was due to a premium from the traditional channel.

Which decreased by 219 billion R&D.

That decrease was partially offset by <unk>.

2 million RMB increased some reinsurance from the Internet insurance for.

For the fourth quarter of 2025.

Revenue also grew.

Brokerage segment.

84 million compared.

Compared to 106 million R&D in the same period of two.

<unk> 24.

The Internet insurance revenue contributions accounts for 22% of the total segment revenue in the fourth quarter.

And 14% for the full year of 2025.

Ka Chun William Hui: It has become a significant part of the business. The integration of our online and offline channel, combined with our AI-driven sales and servicing capabilities, enhances the overall customer experience while supporting a more competitive customer acquisition cost structure for our traditional business. This integrated approach also creates opportunities for increased synergies across channels. We also recorded technology-driven marketing service revenue in Q4. As we are transforming our organization into an AI-solution platform company, we look forward to presenting you more details in the coming quarters as these services scale. On the expense side, sales and marketing expenses in Q4 2025 decreased by 31% year-over-year to RMB 206 million.

It has become a significant significant part of the business.

The integration of online and offline channel combined with our AI.

Chicken sales and servicing capabilities.

And the overall customer experience.

Pointing more competitive.

Customer acquisition cost structure for our traditional business.

This integrated approach also creates opportunities for increased synergies across channels.

We also recorded technology trip in marketing service revenue in the fourth quarter.

And we are transforming our organization into AI solution from the company.

We look forward to presenting you with more details in the coming quarter at all.

This is east services scale.

On the expense side sales and marketing expenses in the fourth quarter of 2025 decreased by 31% year over year to 206 million RMB.

Ka Chun William Hui: This is attributable to lower origination volume, lower acquisition costs for new customer driven by AI, and an increase in our repeat borrower ratio to 76% through the year. The overall customer acquisition cost as a percentage of loan volume decreased by 80 basis points in Q4 2025 compared to the same period of 2024. It was a record low, reflecting less competition in the market as some players exited the market following the new regulation. Our AI marketing strategy, which was driving a better customer acquisition efficiency. Research and development expenses decreased by 26% year-over-year to CNY 121 million in Q4 2025. This was due to a high base effect from the expense of our credit analysis system development project in the second half of 2024.

This is attributed a triple a trip to go to lower origination volume.

Lower acquisition cost per new customer throughput by AI.

And an increase in our repeat borrower ratio to 76% through the year.

The overhaul.

We shouldn't cost as a percentage of loan volume decreased by eight.

Basis points in the fourth quarter of 2025 compared to the same period of 2024.

It was a record low.

Less competition in the market and from some players exit the market following the new regulation.

And also our marketing strategy, which was driving a better customer acquisition efficiency.

Research and development expenses decreased by 26% year over year to <unk>.

20 million RMB in the fourth quarter of 2025.

This was due to a high base effects from the expense of credit analysis system development projects in the second half of 2024.

Ka Chun William Hui: The full year R&D expenses were RMB 407 million, representing 1.3% decrease from 2024. With the innovative AI tools, we are building more for less. We will continue to invest in talent and AI infrastructure to enhance the overall productivity of the R&D team. Origination, servicing and other operating costs increased by 27% year-over-year to RMB 251 million in Q4 2025. This was driven by increased commission rates for asset recovery services to boost collection incentive during a challenging credit environment. Full year origination and servicing costs decreased by 11% to RMB 786 million, driven by decrease in insurance brokerage business costs, along with an increased AI automation as over 81% of our first payment delinquency cases are being handled by our AI agents.

Full year R&D expenses were 407 million RMB.

Presenting one 3% decrease from 2024.

With the innovative AI tools recruiting more for less we will continue to invest in talent and infrastructure to enhance the overall productivity of the orange.

R&D team.

Yeah.

Our origination servicing and other operating costs increased by 27% year over year.

Two 200.

Two 1 million RMB in the fourth quarter of <unk>.

2025.

This was driven by increased commission rates.

Recovery services to booth to booth collections incentive during a challenging credit environment.

Full year origination and servicing costs decreased by 11% to 786 million R&D.

Driven by a decrease.

In insurance brokerage business comes along with it.

AI automation and over 81% of our first.

Payment even cases.

Nope I O agents.

Ka Chun William Hui: General and administrative expenses for the quarter increased by 4.8% year-over-year to RMB 44 million. We have imposed tighter cost control to lower the expenses further. The allowance for contract assets and receivable for the Q4 decreased by 46% year-over-year to RMB 296 million, driven by higher receivables from guarantee services and financing services that meet industry level higher risk profile of assets. Provisions for contingent liability this quarter increased by 343% year-over-year to RMB 1.1 billion, reflecting the growth in loan origination volume under the risk-taking model, which grew by 48% year-over-year. Under the current accounting standard, we are required to recognize provisions for contingent liability immediately upon loan origination under the risk-taking models, while the corresponding revenue is amortized over the loan period.

General and administrative expenses for the quarter increased by four 8% year over year to $44 million R&D.

We have imposed tighter cost control to Laguardia expenses further.

Yeah allowance for contract assets and receivables for the fourth quarter decreased by 46% year over year.

Two 296 million RMB.

And by higher receivables from Guaranty surfaces.

And financing services.

Industry level higher disposal of assets.

Provisions for contingent liabilities this quarter increased by 343% year over year to $1 1 billion RMB.

I think that the growth in loan origination volume under the risk taking model.

Which grew by 48% year over year.

Under the current accounting standard we are required to recognize provisions for contingent liabilities immediately upon loan origination.

Under the risk taking models.

Well the corresponding revenue is amortized over the long period.

Ka Chun William Hui: The increasing proportion of the risk-taking model loan volume will continue to have an accounting impact on our earnings in the coming quarters. As previously noted, accounting standards give rise to a timing mismatch that results in a near-term earnings pressure when risk-taking model loan volume grows because standby guarantee liability is recorded on the balance sheet at loan inception. This liability will be amortized to become guarantee service revenue over the guarantee period in the future, where the provisions for the associated guarantee related contingent liability and standby guarantee liabilities are recognized upfront in accordance with GAAP, resulting in timing mismatch for revenue and cost. This timing mismatch is expected to normalize when the loan balance under the risk-taking model stabilize. When the amortized revenues from the legacy assets balance out the provisions from new loans.

Yeah.

The increasing proportion of the risk.

Model.

Loan volume has gone well continue to her.

And the accounting impact on our earnings in the coming quarters.

As previously noted our accounting standards.

Rise to a timing mismatch that result in a near term earnings pressure when we're picking motto along with volume growth because in fact guarantee liability is recorded on tea.

And she said long inception.

This liability will be amortized to become recurring service revenue over.

The current period, and the future's, where the provisions for.

Okay associated guarantee related contingent liability and standby guarantee liabilities are recognized upfront and according with.

In accordance with GAAP.

We something timing mismatch for revenue and cost.

This timing mismatch is expected to normalize when the loan policy under the respective models stabilize.

When he Emerald cards revenues from the legacy assets.

So the conditions from new loans.

Ka Chun William Hui: For the Q4 of 2025, GAAP net loss amounts to RMB 882 million, largely due to higher accounting provisions driven from the guarantee business as mentioned. The moderation in performance of the traditional, insurance business and RMB 109 million fair value loss on the crypto assets. For the full years of 2025, the GAAP net income was 144.5 million RMB. To match the revenue and contingent liability accrual after adjusting for revenue from the stand-ready guarantee liabilities, our non-GAAP net income for the full year 2025 was about RMB 834 million.

For the fourth quarters of 2025 net loss amounted to 882 million R&D largely due to higher got killed in provisions driven from the turnkey business as mentioned.

The motivation and performance of the traditional.

Our insurance business and 100.

And 9 million RMB fair value loss on the crypto asset.

For the full years of 2025.

GAAP net income was 14 $14 5 million RMB.

To match, the revenue and credentials my priority of crude.

After adjusting for revenue from the spin ready turnkey liabilities.

Our non-GAAP net income for the full year 2025.

Once about 830 34 million RMB.

Ka Chun William Hui: Regarding our cash flow, we recorded a net cash outflow from our operation of RMB 198 million in Q4 of 2025, but our balance sheets remain strong with cash and cash equivalents of RMB 3.3 billion as of 31 December 2025. Looking ahead to 2026, our non-lending business will continue to drive our revenue growth while our credit performance continue to improve on a sequential basis. As this is a conservative forecast, as our delinquency figures are improving more than expected, we may revise our forecast during the year. Overall, we are optimistic about the business as the core business has shown signs of recovery. Our internet business has become a significant growth contributor, and our AI platform engine is starting to deliver results. That's the end of our presentation.

So regarding our cash flow.

We recorded.

Net cash outflow from our operation of 190 million RMB in the fourth quarter of 2025.

Our balance sheet remains strong with cash and cash equivalents of three threep.

D ourselves.

731 2025.

Looking ahead to 2026, our nonbanking business will continue to drive our revenue growth.

Our credit performance continue to improve on this.

Potential cases.

This is Michael.

And this is a conservative forecast.

Our delinquency pictures are improving more than expected.

These moments.

Forecasters next year overall.

Mistakes about the business as the caucuses has shown signs of recovery.

Our internet business as a company.

Significant growth contributor.

It's powerful engine.

Is starting to deliver results.

So.

Yeah.

Presentation operations back to you.

Ka Chun William Hui: Operators, back to you.

Operator: Thank you.

Thank you and.

Zoya Ji: Thanks.

Operator: We will now begin.

Zoya Ji: Thanks. Yeah. Go ahead, sorry.

Yeah.

Go ahead I'll begin the question and answer session.

Operator: We now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a 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. Our first question will come from Connie Gu with Piacente. Please go ahead.

To ask a question you May press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed.

Would like to withdraw your question. Please press Star then two.

And our first question will come from Connie <unk> with <unk>. Please go ahead.

Connie Gu: Thank you, management, for taking my question. My question is about AI. You mentioned that internal AI transformation has brought significant cost savings to the company in 2025. Looking to the longer term, do you expect further cost savings or a broader potential for AI application scenarios? When we compare in-house developed AI agents to the third-party ones, what are the specific advantages? How do you view the security of the popular AI tools lately, like OpenAI? Thank you very much.

Thank you management for taking my question and my question is about AI.

You mentioned that.

No.

Right.

On cost savings to the company when we took on five and so looking to the longer term too.

That's further costs to stay well.

A broader potential for AI applications scenarios.

And when we compare it in house developed AI agents sort of third party lines.

The advantages are.

How do you view that as the purity of the popular right.

AI to slightly like Oh.

Well, thank you very much.

Ka Chun William Hui: Thank you for your question regarding AI. Actually, let me explain more.

Ning Tang: Thank you for your question regarding AI. Actually, let me explain more.

Thank you for your question regarding our AI and actually let me yeah.

Exploring more yeah.

Ning Tang: Yeah. Talk more about our AI strategy. I think it's extremely important because we are, as I reported early on, redefining the company. Yeah. Previously, it's a fintech company utilizing technology to do better finance, credit work to begin with. Then we included insurance. In the future, it's going to be a AI agent, AI native company, not only for credit and insurance subsectors, but also for more financial services subsectors and a few select industries in the coming couple of years. Basically, it's going to be a different value proposition evolving from our past. Let me explain more. Yeah. When we first started to utilize AI, it was more like a tool for cost saving to do our existing processes better, cheaper. Yeah, AI as a tool.

Talk more about our AI strategy and I.

I think it's a.

Extremely important because we are.

As I reported earlier on redefining.

The company.

Previously.

It's a fintech.

Fintech company utilizing technology to do.

Better.

Finance.

Great work to begin there than we included in shorts.

But in the future.

It's going to be a AI agent, Hey, I need your company not only for <unk>.

Credit and insurance.

Subsectors.

But also for more.

Financial services.

Sub sectors and.

A few select industries in.

In the coming.

Couple of years.

So basically.

It's going to be different.

Value proposition.

Evolving from our past.

Let me explain more.

Yeah.

So when we first or.

Started to utilize.

Hi.

It looks more like a tool.

For cost savings.

To do our existing processes.

Better cheaper yeah.

Also too.

Ning Tang: That's like in, like, 2023, 2024. But from last year, and even more so this year, you just mentioned OpenAI. AI is now a colleague. It's now a person. Yeah, a worker. That means we are going to do businesses differently. We're going to re-engineer our business processes for credit and insurance existing businesses. At the same time, because our technologies, our AI capabilities have been well tested, proven in these heavily regulated, demanding, super tight security standard industries, sectors. Our AI capabilities, our agents can be utilized for other financial services needs, subsectors, and going beyond financial services subsectors to more industries. This is the strategy. This is the development process. Yeah. Going forward, we're going to do AI more and more for our credit, for our insurance businesses.

That's like in <unk>.

Like a 2023 2024.

Back from last year.

And even more so this year you just mentioned the open call.

AI is now a.

Colleague.

It's now a person.

Yeah Walker.

So that means.

We are going to do businesses differently.

We're going to re engineer.

Our business processes.

Or.

Got it and.

Insurance.

Existing businesses.

And at the same time, because our technologies, our AI capabilities has been well tested proven in.

This.

Heavily.

Regulated demanding super tight security.

Standard.

Industries.

Sectors.

Our AI capabilities our agents.

Can be utilized.

More either.

National services.

Needs sub sectors and going beyond.

Financial services sub sectors.

Two more.

Industries.

So this is the strategy.

This is the development process.

Yeah.

So going forward, we're going to do AI.

More and more for our credit is good for our insurance businesses, but at the same time.

Ning Tang: At the same time, we'll look for more subsectors in financial services and new verticals beyond the financial services to leverage our AI capabilities, proven capabilities. Yeah. This is the strategy we have, and my vision is after 1 year, 2 year, 3 years, Yiren Digital will be a different company. It's not totally away from our traditional businesses. We will do like a credit, we'll do insurance. These are great, yeah, applications for AI, but at the same time, we're going to do more. Yeah, there are better also subsectors for AI applications, agents and growth, yeah, for us going forward. This is the strategy we have in mind, and we are executing. Thank you.

Look for more.

More.

Subsectors in financial services, and new verticals beyond financial services to leverage our <unk>.

<unk> capabilities.

Proven capabilities.

So this is the strategy.

We have.

And <unk>.

My vision is.

After.

One year two years three years.

Even digital.

We will be a different company.

It's not totally away from our traditional business is they will do we will do like acquired it will do insurance they sound great.

Yeah applications for AI, but at the same time, we're going to do more.

There are better also.

Sectors for AI applications.

And.

And growth yeah for us going forward.

So this is the strategy we have.

In mind and we are executing.

Kim.

Ka Chun William Hui: Yeah. Just to add to Ning's comment with the numbers. In 2025, we already achieved a cost saving of CNY 80 million, and that is on top. Those are the direct, just the direct costs, and that's on top of other indirect cost savings, such as the avoidance of fraud losses, which was approximately CNY 180 million last year. Also other costs like the staff trainings and office space and all that.

Yeah, just to add to it means comment with the numbers.

In 2025 already.

<unk> a cost saving of ETE in R&D and that is on par and those are direct just the direct cost and thats on top of other indirect cost savings.

Such as the.

And so for us it's rich.

It was an approximate $180 million R&D last year.

And also other costs like the us.

Staff trainings and office space and all that.

Ka Chun William Hui: I think just to add on to Ning's comments, we are transforming the company from just using the AI to save costs to using the AI to generate revenue. The way AI will help us is it will reduce our time to market with the technologies and also the analytics that will help us to identify new business opportunities. Thanks.

So I think just to.

And on to Q named Commons.

We are transforming the company from just being.

Yeah.

Using AI to save cost to us.

To generate revenue.

So yeah.

It will help us is oh, we.

Reduce.

Our time to market.

Got it.

The technologies and also the analytics that will help us to identify a.

New business opportunities.

Thanks.

Operator: The next question will come from Guan Yong with Zhineng Securities. Please go ahead.

The next question will come from one yard.

Atlanta Securities. Please go ahead.

Guan Yong: Guan Yong. Since the new loan facilitation regulation issued in October 2025, the industry has generally experienced a significant impact. Has the company seen any improvement in this effect so far? How do you expect the industry risk environment to evolve over the course of the year?

[Analyst] (Zhineng Securities): Guan Yong. Since the new loan facilitation regulation issued in October 2025, the industry has generally experienced a significant impact. Has the company seen any improvement in this effect so far? How do you expect the industry risk environment to evolve over the course of the year?

Quantifying it all sounds to me, you're always huh towell, yes. It could I can rely on you put in so Paulo. So now that you've got 20 junction ringtone Midtown concern can slow down that you saw before you go to a whole gland you Joseph.

And so when they go home and you tell me on that kind of content from home listen you got to hang around the country.

Trying to take advantage of that.

When I say that.

Thanks to new loan facilitation regulation issued in October 2018, despite the industry has generally experienced a significant impact has a company thing any improvement in that in fact, so far how do you expect industry risk environment to evolve over the course of the yen.

Yeah.

Ka Chun William Hui: Okay. Thank you. Thank you for your questions. Based on our credit performance metrics, our risk level peaked in last October and now showing signs of recovery. The new industry regulation had a short-term impact on us, our funding partners, and our peers. We believe the industry has already adapted to this short-term impact, position itself for better long-term developments. Our January FPD 30 and DPD 30 metrics, which track 30 days delinquency rate, have dropped by 38% to the level seen in May 2025 when this cycle began. Since the new regulation took effect in October, our cost of capital has decreased by 93 basis points.

Okay. Thank you. Thank you for your questions.

Interest on our credit performance metrics, our risk level peak.

In the landfill program and now showing signs of recovery.

New industry regulation had a short term impact on us.

Our funding partners and our peers.

We believe the industry has arrived yet.

<unk> reduced short term impact position itself for long term developments.

Our January F. P D 30, and TPG certain metrics.

Which track 30 day delinquency rate of drug.

Top by 38% to the levels seen in the 2025 when the cycle began.

When the new regulation took effect in October our cost of capital.

Since the new regulation took effect in October.

Our cost of capital has decreased by 93 basis points.

Ka Chun William Hui: Meanwhile, our customer acquisition cost as a percentage of loan volume continued to drop by another 0.8% to a record low now. Indicating after the new regulation, the competition has been eased and we view this as a positive signal. Our balance sheets remain solid, providing the financial strength to manage potential risk as these improvements continue to flow through the business. Overall, we remain confident in the long-term fundamentals of our business. We think the new business will make the industry healthier. Thank you.

Meanwhile, our customer acquisition cost as a percentage of loan volumes continue to drop by.

And other fuel 0.8% yield right.

<unk> now so indicating after the new regulation.

The competition is.

The east end.

We view this as a positive signal.

And our balance sheet remains solid providing the financial strength to manage potential risks.

Proven continue.

So through the business.

But overall, we remain confidence in our long term fundamentals of our business.

We think the new business will make the industry healthier.

Thank you.

Zoya Ji: Thank you for this question. Yeah.

Thank you.

Next question. Your next question will come from your long Lou.

Operator: The next question will come from Yulong Lu. Please go ahead.

Please go ahead.

Yulong Lu: Hey, Ning,

[Analyst]: [Foreign language]

Right, Yeah Quentin talk more.

Three dollar trees are concerned with how long they'll just propulsion sanjaya when I'm talking about how many of your portfolio.

We've always had trouble from here with the ordering them, but you are funding the mobile.

Yulong Lu: Hello, management team. I've noticed that the company's internet insurance distribution business has demonstrated strong breakout growth. Could you elaborate on the development targets and the strategic priorities for this segment in the new year? Additionally, compared with traditional insurance distribution models, where do you see our key competitive advantages are?

[Translator]: Hello, management team. I've noticed that the company's internet insurance distribution business has demonstrated strong breakout growth. Could you elaborate on the development targets and the strategic priorities for this segment in the new year? Additionally, compared with traditional insurance distribution models, where do you see our key competitive advantages are?

John Real quick Miranda.

While financial should something trying to unload took a pause and show you where to find them well in the kingdom to use it without taking the naughty children.

Huntington units in that.

Hello management team after now tasted that accompanies Internet insurance distribution does not has demonstrated a strong breakout growth could you elaborate on that.

Nine targets and strategic priorities for this segment.

Additionally, compared with traditional insurance distribution model, where do you see of a key competitive advantage of die.

Ning Tang: Okay. Let me take first crack and William can add to it. The internet insurance business market potential is very big. You may well remember that our credit facilitation business actually was quite offline several years ago. Then we successfully moved it to online to digitally transform the business. That was absolutely necessary, the right thing to do, bring us growth opportunities. The same is happening for our insurance brokerage business, but not exactly the same. Let me explain. While more and more businesses are moving online. The online part will be bigger and bigger contribution to our insurance business, top line, bottom line. The same is happening as the credit business going from offline to online.

Okay, Let me take a first.

Crack and yeah, William can yeah add to it.

The insurance Internet insurance business.

Our market potential is very big yeah.

And you may well remember that our credit facilitation business.

Actually it was quite a offline.

Several years ago.

And then we successfully moved the date to online.

To yeah.

Really transform the business.

That was absolutely necessary.

The thing to do.

Bring us.

And growth opportunities.

And the same is happening.

Our insurance brokerage business.

Well not exactly to say, let me explain.

Wow.

More and more businesses are moving.

Online.

Yeah, So the online part will be.

The bigger and bigger.

Contribution.

To our insurance business.

Topline and Bottomline.

And the same is happening yeah.

Yeah.

As the credit business going from offline to online.

Ning Tang: The difference is we will still have offline part, but that offline part is also going to be more and more kind of like, the so-called offline and online. Meaning our offline colleagues will do more and more online activities like, you know, live streaming, like, you know, WeChat, Douyin, kind of, applications. We'll do that more and more. The offline part will be also more and more effective. As you have seen, the online part, the purely online part, is showing great potential, super faster growth, and that's also very promising. Going forward, the insurance brokerage business will have this, high-growing, like, offline part, kind of being offline-online combined model. This is the vision we have for our insurance business. William, you have anything to add?

The difference is.

We will still have.

Offline.

Park.

But that offline park.

It's also going to be more in the more kind of like a the so called the offline and online meaning our offline colleagues.

We will do more and more all of our activities.

Like a live streaming.

Like.

Oh yeah.

When we chat.

Now in kind of yeah.

Applications.

We will do that more and more so.

So the offline part will be also.

More and more effective.

And as you have seen.

<unk>.

Online part the purely online part.

Is showing great.

Potential.

Super fast growth.

And that's also very promising.

So going forward the insurance brokerage business will have this year.

Yeah.

Hi, growing like online.

Bart.

And also a more efficient like.

Like our offline part kind of being offline online combined.

Model.

So this is the vision.

Rob.

Are.

Insurance business.

And the women.

You have anything to add.

Ning Tang: I'd like to add something, like, our online internet insurance business is growing so fast. Much faster than our credit business, transforming from offline to online. Because pretty much all the tools have been built for the credit business. The analytics, the AI agents capabilities, so on, have been built, so it's a much faster acceleration process. The same logic goes for what I just mentioned, us moving to other, like, verticals, other industries. The same kind of AI infrastructure, the agent capabilities have been built. Of course, we need to add new kind of like vertical domain expertise. That's also essential. To begin with, the technology platform capabilities have been built, so it's a much faster, much accelerated process. Thank you.

And by the way I like to add something why like our online internet of insurance business.

Is a growing Ah yeah, so fast much faster than our quiet as a business are transforming from offline to online because.

Pretty much all of the tools have been built.

For the credit business.

The analytics to AI agent capabilities. So long has been built.

It's a much faster acceleration process and at the same logic goes for what I just mentioned.

Perhaps moving to father.

Like what he calls other industries.

The same kind of AI infrastructure the agent capabilities.

Has been built of course, we need to add.

New kind of like a vertical domain expertise, that's also essential but to begin with.

The technology platform capabilities have been built so it's a much faster much accelerated process.

Thank you.

Operator: That will conclude our question and answer session. If you have any further questions, please connect to the IR team of Yiren Digital or Piacente Financial Communications. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

And that will conclude our question and answer session. If you have any further questions. Please connect to the IR team of the IRA and digital our Piceance and <unk>.

For instance financial communications.

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

Zoya Ji: Thank you.

Thank you.

Ning Tang: Thank you.

Thank you.

[noise].

Okay.

[noise].

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