Q1 2026 Jiayin Group Inc Earnings Call

June 23, 2026

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's Q1 2026 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question and answer session, and instructions will follow up in today's call. If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Sam Li from Investor Relations of Jiayin Group. Please proceed.

Speaker #2: Good day, ladies and gentlemen. Thank you for standing by, and welcome to Jiayin Group's first quarter 2026 earnings conference call. Currently, all participants are in listen-only mode.

Speaker #2: Later, we will conduct a question-and-answer session, and instructions will follow. If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Sam Lee from Investor Relations of Jiayin Group.

Speaker #2: Please proceed.

Speaker #3: Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the first quarter of 2026.

Sam Li: Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for Q1 2026. We released our earnings results earlier today. The press release is available on the company's website, as well as from Newswire Services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunlin, Chief Financial Officer, and Ms. Qi Dan, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.

Sam Lee: Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for Q1 2026. We released our earnings results earlier today. The press release is available on the company's website, as well as from Newswire Services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunlin, Chief Financial Officer, and Ms. Qi Dan, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.

Speaker #3: We released our earnings results earlier today. The press release is available on the company's website, as well as from newswire services. On the call with me today is Mr. Dinggui Yan.

Speaker #3: Chief Executive Officer, Mr. Fan Chunlin; Chief Financial Officer, and Ms. Qi Dan, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S.

Speaker #3: The Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today.

Speaker #3: Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement, except as required under applicable law.

Sam Li: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Please note that unless otherwise stated, all figures mentioned during the conference call are in RMB. With that, let me now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan. Hello everyone. Thank you for joining our Q1 2026 earnings conference call. Hello everyone. Thank you for joining our Q1 2026 earnings conference call. During Q1 2026, the consumer lending industry remained in an adjustment phase.

Sam Lee: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Please note that unless otherwise stated, all figures mentioned during the conference call are in RMB. With that, let me now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

Speaker #3: Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures.

Speaker #3: Please note that, unless otherwise stated, all figures mentioned during the conference call are in Chinese renminbi. With that, let me now turn the call over to our CEO, Mr. Dinggui Yan.

Speaker #3: Mr. Yan will deliver his remarks in Chinese, and I will follow up with the corresponding English translations. Please go ahead, Mr. Yan.

Speaker #4: 大家好，感谢各位参加嘉音科技2026年第一季度业绩电话会议。

Speaker #3: Hello everyone. Thank you for joining our first quarter 2026 earnings conference call.

[Translator]: Hello everyone. Thank you for joining our Q1 2026 earnings conference call.

Speaker #4: 2026年第一季度消费信贷行业处于调整消化期，信贷需求恢复节奏偏缓，行业整体承压。在此背景下，我们聚焦在优质存量用户的运营和商业模式的结构化升级。本季度，我们实现贷款交易量193亿元，同比下降45.8%，受行业周期波动及规模收缩的影响，收入下降叠加成本端的阶段性压力。本季段录得净亏损6,170万元。

Dinggui Yan: Hello everyone. Thank you for joining our Q1 2026 earnings conference call.

[Translator]: During Q1 2026, the consumer lending industry remained in an adjustment phase.

Speaker #3: During the first quarter of 2026, the consumer lending industry remained in an adjustment phase. The recovery in credit demand continued at a relatively gradual pace.

Sam Li: The recovery in credit demand continued at a relatively gradual pace, and the industry as a whole remained under pressure. Against this backdrop, we focused on refining the operations of our high-quality existing borrower base and the structural enhancement of our business model. During the quarter, we achieved transaction volumes of RMB 19.3 billion, representing a year-over-year decrease of 45.8%. Revenue was impacted by industry cyclicality and volume contraction, while temporary cost pressures persisted during the period. As a result, we recorded a net loss of approximately RMB 61.7 million for the quarter. This quarter, we concentrated on the refined management and engagement of our high-quality existing borrower base. Through cross analysis of user risk scores and platform behavioral insights, we segmented our existing borrowers into groups and implemented differentiated engagement strategies and operating strategies tailored on each group's credit profile and borrowing intent.

[Translator]: The recovery in credit demand continued at a relatively gradual pace, and the industry as a whole remained under pressure. Against this backdrop, we focused on refining the operations of our high-quality existing borrower base and the structural enhancement of our business model. During the quarter, we achieved transaction volumes of RMB 19.3 billion, representing a year-over-year decrease of 45.8%. Revenue was impacted by industry cyclicality and volume contraction, while temporary cost pressures persisted during the period. As a result, we recorded a net loss of approximately RMB 61.7 million for the quarter.

Speaker #3: And the industry as a whole remained under pressure. Against this backdrop, we focused on refining the operations of our high-quality existing borrower base and the structural enhancement of our business model.

Speaker #3: During the quarter, we achieved transaction volume of RMB 19.3 billion, representing a year-over-year decrease of 45.8%. Revenue was impacted by industry cyclicality and volume contraction, while temporary cost pressures persisted during the period.

Speaker #3: As a result, we recorded a net loss of approximately RMB 61.7 million for the quarter.

Speaker #4: 本季度我们重点布局优质存量用户的精益化运营，通过对存用户风险评分与平台行为数据的交叉分析，我们将存量客群进行分层，并基于不同群体的信用水平与意愿强度，匹配差异化的出达策略与运营方案。本季度重复借款人交易量占比达到76.3%，相较去年同期增加4.4个百分点，高年轻用户不仅贡献了稳定的信贷需求，也验证了存量深耕策略的初步成效。

Speaker #3: This quarter, we concentrated on the refined management and engagement of our high-quality, existing borrower base. Through cross-analysis of user risk scores and platform behavioral insights, we segmented our existing borrowers into groups and implemented differentiated engagement strategies and operating strategies tailored to each group's credit profile and borrowing intent.

[Translator]: This quarter, we concentrated on the refined management and engagement of our high-quality existing borrower base. Through cross analysis of user risk scores and platform behavioral insights, we segmented our existing borrowers into groups and implemented differentiated engagement strategies and operating strategies tailored on each group's credit profile and borrowing intent.

Speaker #3: Repeat borrowing contribution accounted for 76.3% this quarter, representing an increase of 4.4 percentage points from the same period last year. These highly engaged users not only contributed to stable repeat borrowing demand, but also validated the initial effectiveness of our strategy to deepen engagement with existing borrowers.

Sam Li: Repeat borrowing contribution accounted for 76.3% of transaction volume during the quarter, representing an increase of 4.4 percentage points from the same period last year. These highly engaged users not only contributed to stable repeat borrowing demand, but also validated the initial effectiveness of our strategy to deepen engagement with existing borrowers. The 90-plus day delinquency ratio was 2.25% as of the end of Q1, increasing sequentially. For higher risk borrower segments, we continue to tighten underwriting criteria and credit limit controls to facilitate an orderly run off of portfolio risk exposure. For high quality borrowers, we further analyze borrower needs and work closely with our operations team to refine borrower management and engagement strategies, with a focus on improving retention. Meanwhile, we are embedding AI capabilities into our operations to drive the productization of risk management and continuously refining and developing reusable standardized solutions.

[Translator]: Repeat borrowing contribution accounted for 76.3% of transaction volume during the quarter, representing an increase of 4.4 percentage points from the same period last year. These highly engaged users not only contributed to stable repeat borrowing demand, but also validated the initial effectiveness of our strategy to deepen engagement with existing borrowers.

Speaker #4: 其实一期中末90天以上预期率为22.5%，环比有所上扬。针对高风险客群，我们持续收紧准入策略和额度管控，以实现平稳出清。对于优质客群，我们深挖用户诉求，年终运营团队调整策略，着力提升流程水平，同时将AI能力内嵌，推动风控能力产品化，持续打磨并形成可复用的标准化解决方案。

[Translator]: The 90-plus day delinquency ratio was 2.25% as of the end of Q1, increasing sequentially. For higher risk borrower segments, we continue to tighten underwriting criteria and credit limit controls to facilitate an orderly run off of portfolio risk exposure. For high quality borrowers, we further analyze borrower needs and work closely with our operations team to refine borrower management and engagement strategies, with a focus on improving retention. Meanwhile, we are embedding AI capabilities into our operations to drive the productization of risk management and continuously refining and developing reusable standardized solutions.

Speaker #3: The 90-plus-day delinquency ratio was 2.25% as of the end of the first quarter, increasing sequentially. For higher-risk borrower segments, we continued to tighten underwriting criteria and credit limit controls to facilitate an orderly runoff of portfolio risk exposure.

Speaker #3: For high-quality borrowers, we further analyzed borrower needs and worked closely with our operations team to refine borrower management and engagement strategies. With a focus on improving retention, meanwhile, we are embedding AI capabilities into our operations to drive the productization of risk management, and continuously refining and developing reusable, standardized solutions.

Sam Li: On the business development front, we continue to execute the overall strategy established in the previous quarter and advance our structural upgrade through three key initiatives. The first initiative is the enhancement of our joint operations and tech empowerment model. During the quarter, we actively expanded our technology empowerment services for financial institutions. Under this model, the company acts as a technology and operations service provider, deeply integrating into the entire lending process of partner banks. We provide comprehensive solutions covering borrower engagement and operations, technology services, and risk modeling capabilities. Leveraging our advanced data technologies and extensive operational experience, we empower our partners throughout the credit life cycle. In Q1, the transaction volume generated through our technology empowerment business reached RMB 1.52 billion, representing a sequential increase of approximately 67.6%.

Speaker #4: 在业务拓展方面，延续上季度的整体策略，我们围绕三条主线推进结构化升级。第一条主线是联合运营模式的优化升级。本季度我们积极推进对于金融机构的科技赋能业务。在此模式下，公司作为技术与运营服务方，深度嵌入合作银行的信贷全流程，提供从流量运营、技术服务和风控模型的全链路输出，利用先进的技术数据技术和成熟的运营经验，赋能合作伙伴。一季度科技赋能业务体量达到15.2亿元，环比增长67.6%。这是多年积累的技术服务能力向更深层次合作的自然延伸，也是我们在当前周期下的创新实践。我们看好该业务模式的长期价值，未来规模有望持续提升。

[Translator]: On the business development front, we continue to execute the overall strategy established in the previous quarter and advance our structural upgrade through three key initiatives. The first initiative is the enhancement of our joint operations and tech empowerment model. During the quarter, we actively expanded our technology empowerment services for financial institutions. Under this model, the company acts as a technology and operations service provider, deeply integrating into the entire lending process of partner banks. We provide comprehensive solutions covering borrower engagement and operations, technology services, and risk modeling capabilities. Leveraging our advanced data technologies and extensive operational experience, we empower our partners throughout the credit life cycle. In Q1, the transaction volume generated through our technology empowerment business reached RMB 1.52 billion, representing a sequential increase of approximately 67.6%.

Speaker #3: On the business development front, we continued to execute the overall strategies established in the previous quarter and advanced our structural upgrade through three key initiatives.

Speaker #3: The first initiative is the enhancement of our joint operations and tech empowerment model. During the quarter, we actively expanded our technology empowerment services for financial institutions.

Speaker #3: Under this model, the company acts as a technology and operations service provider, deeply integrating into the entire lending process of partner banks. We provide comprehensive solutions covering borrower engagement and operations, technology services, and risk modeling capabilities.

Speaker #3: Leveraging our advanced data technologies and extensive operational experience, we empower our partners throughout the credit lifecycle. In the first quarter, the transaction volume generated through our technology empowerment business reached RMB 1.52 billion, representing a sequential increase of approximately 67.6%.

Speaker #3: This business represents a natural extension of the technology service capabilities we have accumulated over many years, enabling us to deepen our collaboration with financial institutions.

Sam Li: This business represents a natural extension of the technology service capabilities we have accumulated over many years, enabling us to deepen our collaboration with financial institutions. It also represents an important innovation initiative in the current operating environment. We remain optimistic about the long-term value of this model and expect its scale to continue expanding in the future.

[Translator]: This business represents a natural extension of the technology service capabilities we have accumulated over many years, enabling us to deepen our collaboration with financial institutions. It also represents an important innovation initiative in the current operating environment. We remain optimistic about the long-term value of this model and expect its scale to continue expanding in the future.

Speaker #3: It also represents an important innovation initiative in the current operating environment. We remain optimistic about the long-term value of this model and expect that, if scaled, it will continue expanding in the future.

Speaker #4: 第二条主线是多元化产品布局，利用车礼贷和数字微贷拓展特定场景和客群。车礼贷方面，业年初上线了3.0系统，以实现全流程线上化。公司聚焦于前端的流量运营、风控赋能和撮合匹配。贷后管理及车车辆初始环节只有专业合作方承接，是我们能够将资源集中与上下游合作形成优势互补，是今年年初以来车礼贷业务增长势头良好、整体用户转化率在纯线上业务规模中处于领先地位。多元化产品线持续推进，有助于触达差异化客群，同时为资方机构提供更丰富的资产选择。

Dinggui Yan: 第二条主线是多元化产品布局，利用车抵贷和数字微贷拓展特定场景或客群。车抵贷方面，年初上线的3.0系统已实现全流程线上化。公司聚焦于前端的流量运营、风控赋能和撮合匹配，贷后管理及车辆处置环节则由专业合作方承接，使我们能够将资源集中与上下游合作形成优势互补。自今年年初以来，车抵贷业务增长势头良好，整体用户转化率在纯线上业务规模中处于领先地位。多元化产品线持续推进，有助于触达差异化客群，同时为资方机构提供更丰富的资产选择。

Speaker #3: The second initiative is the development of a diversified product portfolio, including auto-backed loans and digital intelligence microloans, which enables us to serve specific scenarios and borrower segments.

Sam Li: The second initiative is the development of a diversified product portfolio, including auto-backed loans and digital intelligence microloans, which enables us to serve specific scenarios and borrower segments. For our auto-backed loan business, the version 3.0 system launched earlier this year has achieved end-to-end fully digitalized operations. We remain focused on borrower engagement and operations, risk empowerment, and matching while specialized partners handle post-loan servicing and vehicle disposal. This collaborative model allows us to concentrate resources on our core strengths while creating complementary advantages with upstream and downstream partners. Since the beginning of this year, the auto-backed loan business has maintained strong growth momentum, with overall user conversion rates ranking among the highest in the market under a full online operating model. The continued expansion of our diversified product portfolio helps us reach differentiated borrower groups while providing funding partners with broader asset options.

[Translator]: The second initiative is the development of a diversified product portfolio, including auto-backed loans and digital intelligence microloans, which enables us to serve specific scenarios and borrower segments. For our auto-backed loan business, the version 3.0 system launched earlier this year has achieved end-to-end fully digitalized operations. We remain focused on borrower engagement and operations, risk empowerment, and matching while specialized partners handle post-loan servicing and vehicle disposal. This collaborative model allows us to concentrate resources on our core strengths while creating complementary advantages with upstream and downstream partners. Since the beginning of this year, the auto-backed loan business has maintained strong growth momentum, with overall user conversion rates ranking among the highest in the market under a full online operating model. The continued expansion of our diversified product portfolio helps us reach differentiated borrower groups while providing funding partners with broader asset options.

Speaker #3: For our auto backloan business, the Version 3.0 system launched earlier this year has achieved end-to-end fully digitalized operations. We remain focused on borrower engagement and operations, risk empowerment, and matching, while specialized partners handle post-loan servicing and vehicle disposal.

Speaker #3: This collaborative model allows us to concentrate resources on our core strengths while creating complementary advantages with upstream and downstream partners. Since the beginning of this year, the auto backloan business has maintained strong growth momentum, with overall user conversion rates ranking among the highest in the market under a fully online operating model.

Speaker #3: The continued expansion of our diversified product portfolio helps us reach differentiated borrower groups, while providing funding partners with broader asset options.

Speaker #4: 第三条主线是海外业务。印尼地区一季度放款规模环比增长20%，同比翻番。通过深化与当地资金方的合作，不断拓宽合作版图。墨西哥地区目前业务规模尚小，但增长较快。我们在当地的合作伙伴一季度放款规模同比增长35%，相较去年同期已实现高速增长。报告期内，海外地区涉入规模逐步提升，我们将继续秉持全球化战略，以投资布局为切入点，输出先进的技术与运营经验，稳步构建公司未来发展的增长引擎。

Dinggui Yan: 第三条主线是海外业务。印尼地区一季度放款规模环比增长20%，同比翻番。通过深化与当地资金方的合作，不断拓宽合作版图。墨西哥地区目前业务规模尚小，但增长较快。我们在当地的合作伙伴一季度放款规模同比增长35%，相较去年同期已实现高速增长。报告期内，海外地区收入规模逐步提升。我们将继续秉持全球化战略，以投资布局为切入点，输出先进的技术与运营经验，稳步构建公司未来发展的增长引擎。

Speaker #3: The third initiative is our international business. In Indonesia, loan volume increased by 20% quarter-over-quarter, and more than doubled year-over-year in the first quarter.

Sam Li: The third initiative is our international business. In Indonesia, loan volume increased by 20% quarter-over-quarter, and more than doubled year-over-year in Q1. By deepening cooperation with local funding partners, we continue to expand our presence in the market. In Mexico, while currently small in scale, growth has been even faster. Our local partner loan volume increased by 35% sequentially during Q1, and also delivered strong year-over-year growth. During the reporting period, revenue scale from overseas markets continued to increase. We will continue to execute our globalization strategy, leveraging strategic investments as an entry point to export our advanced technology capabilities, and operational expertise, and steadily build the segment into a growth engine for the company's future development.

[Translator]: The third initiative is our international business. In Indonesia, loan volume increased by 20% quarter-over-quarter, and more than doubled year-over-year in Q1. By deepening cooperation with local funding partners, we continue to expand our presence in the market. In Mexico, while currently small in scale, growth has been even faster. Our local partner loan volume increased by 35% sequentially during Q1, and also delivered strong year-over-year growth. During the reporting period, revenue scale from overseas markets continued to increase. We will continue to execute our globalization strategy, leveraging strategic investments as an entry point to export our advanced technology capabilities, and operational expertise, and steadily build the segment into a growth engine for the company's future development.

Speaker #3: By deepening cooperation with local funding partners, we continue to expand our presence in the market. In Mexico, while currently small in scale, growth has been even faster.

Speaker #3: Our local partner loan volume increased by 35% sequentially during the first quarter and also delivered strong year-over-year growth. During the reporting period, revenue scaled from overseas markets continued to increase.

Speaker #3: We will continue to execute our globalization strategy, leveraging strategic investments as an entry point to export our advanced technology capabilities and operational expertise. We will steadily build the segment into a growth engine for the company's future development.

Speaker #4: 在人工智能领域，我们依旧研究清晰的战略主线在推进，将AI融入金融科技服务场景，加速推进科技服务能力。工程智能方面，风控模型迭代周期从天数压缩至1小时以内，恰恰好策略能快速响应市场环境的变化，也是向合作机构输出的核心能力。核心技术能力在研发加速方面，智能体生成代码占总AI代码量的30%。研发效率提升约20%，进一步夯实AI规模化投产的工程基础。助席辅助方面，自研模型全面上线客服环节，意图识别率从78%提升至93%。助席效率提升的同时，模型调用成本降低90%。此外，在办公智能领域，我们对Open Cloud进行了企业安全化改造，部署了AI助手加引小龙虾，覆盖多种场景，逐步构建整个组织的工作范式，让AI成为每位员工的合作伙伴，持续释放人员效率。AI正从辅助工具演变为公司运营效率提升的内生驱动力。

Dinggui Yan: 在人工智能领域，我们依旧沿着清晰的战略主线在推进，将AI融入金融科技服务场景，加速推进科技服务能力。工程智能方面，风控模型迭代周期从天数压缩至一小时以内，确保策略能快速响应市场环境的变化，也是向合作机构输出的核心技术能力。在研发加速方面，智能体生成代码占总AI代码量的30%，研发效率提升约20%，进一步夯实AI规模化投产的工程基础。作息辅助方面，自研模型全面上线客服环节，意图识别率从78%提升至93%，作息效率提升的同时，模型调用成本降低90%。此外，在办公智能领域，我们对OpenCloud进行了企业安全化改造，部署了AI助手JiayinClau，覆盖多种场景，逐步构建整个组织的工作范式，让AI成为每位员工的合作伙伴，持续释放人员效率。AI正从辅助工具演变为公司运营效率提升的内生驱动力。

Sam Li: In artificial intelligence, we continue to execute against a clear strategic roadmap by integrating AI technologies into our fintech ecosystem and accelerating the evolution of our technology service capabilities. In intelligent engineering, the feature iteration cycle for our risk management models has been reduced from several days to less than 1 hour, enabling strategies to respond rapidly to changes in market conditions. This capability has also become a core technology offering provided to our institutional partners. For R&D acceleration, AI agents now generate approximately 30% of all AI-assisted code, improving development efficiency by around 20%, and further strengthening the engineering foundation for large-scale AI deployment. In service assistance, our proprietary models have been fully deployed across customer service operations. Intent recognition accuracy improved from 78% to 93%, significantly enhancing service efficiency while reducing model inference costs by 90%.

[Translator]: In artificial intelligence, we continue to execute against a clear strategic roadmap by integrating AI technologies into our fintech ecosystem and accelerating the evolution of our technology service capabilities. In intelligent engineering, the feature iteration cycle for our risk management models has been reduced from several days to less than 1 hour, enabling strategies to respond rapidly to changes in market conditions. This capability has also become a core technology offering provided to our institutional partners. For R&D acceleration, AI agents now generate approximately 30% of all AI-assisted code, improving development efficiency by around 20%, and further strengthening the engineering foundation for large-scale AI deployment. In service assistance, our proprietary models have been fully deployed across customer service operations. Intent recognition accuracy improved from 78% to 93%, significantly enhancing service efficiency while reducing model inference costs by 90%.

Speaker #3: In artificial intelligence, we continue to execute against a clear strategic roadmap by integrating AI technologies into our fintech ecosystem and accelerating the evolution of our technology service capabilities.

Speaker #3: In intelligent engineering, the feature iteration cycle for our risk management models has been reduced from several days to less than one hour, enabling strategies to respond rapidly to changes in market conditions.

Speaker #3: This capability has also become a core technology offering provided to our institutional partners. For R&D acceleration, AI agents now generate approximately 30% of all AI-assisted code.

Speaker #3: We have improved development efficiency by approximately 20% and have further strengthened the engineering foundation for large-scale AI deployment. In service assistance, our proprietary models have been fully deployed across customer service operations.

Speaker #3: Intent recognition accuracy improved from 78% to 93%, significantly enhancing service efficiency while reducing model inference costs by 90%. In addition, in workplace intelligence, we have completed enterprise-grade security enhancements for Open Cloud and deployed our proprietary AI agent, Jiayin Cloud.

Sam Li: In addition, in workplace intelligence, we have completed enterprise-grade security enhancements for OpenCloud, and deployed our proprietary AI agent, JiayinClau, across a wide range of daily work scenarios. These initiatives are gradually reshaping the way our organization operates, enabling AI to serve as a collaborative partner for every employee, and continuously unlocking productivity gains. AI is steadily evolving from a supporting tool into an intrinsic driver of operational efficiency across the company.

[Translator]: In addition, in workplace intelligence, we have completed enterprise-grade security enhancements for OpenCloud, and deployed our proprietary AI agent, JiayinClau, across a wide range of daily work scenarios. These initiatives are gradually reshaping the way our organization operates, enabling AI to serve as a collaborative partner for every employee, and continuously unlocking productivity gains. AI is steadily evolving from a supporting tool into an intrinsic driver of operational efficiency across the company.

Speaker #3: Across a wide range of daily work scenarios, these initiatives are gradually reshaping the way our organization operates, enabling AI to serve as a collaborative partner for every employee and continuously unlocking productivity gains.

Speaker #3: AI is steadily evolving from a supporting tool into an intrinsic driver of operational efficiency across the company.

Speaker #4: 我们始终是安全与责任为企业的生命线，充分发挥多模态AI技术优势，持续筑牢用用户权益的安全防线，一季度累计识别并阻断七大借款人约29万人。拦截黑产恶意攻击11.3万件，我们持续推动风控战略从事后防御向事前主动拦截引进，尤其是在身份识别、图像识别等多模态大模型领域已取得了实质性进展。通过引入声纹、图算法、距离分析等技术，推动反欺诈能力从传统结构化规则识别逐步升级为多模态感知加图算法加工程化落地的综合防御体系。截至目前，多模态反欺诈识别累计识别了500万条疑似黑音视频样本，识别准确率超过90%。

Dinggui Yan: 我们始终视安全与责任为企业的生命线。充分发挥多模态AI技术优势，持续筑牢用户权益的安全防线。一季度累计识别并阻断欺诈借款人约29万人，拦截黑产恶意攻击11.3万件。我们持续推动风控战略，从事后防御向事前主动拦截引进，尤其是在声纹识别、图像识别等多模态大模型领域已取得了实质性进展。通过引入声纹识别、图算法、剧烈分析等技术，推动反欺诈能力从传统结构化规则识别逐步升级为多模态感知，加图算法，加工程化落地的综合防御体系。截至目前，多模态反欺诈识别累计识别了500万条疑似黑产音视频样本，识别准确率超过90%。

Speaker #3: We have always regarded security and responsibility as the lifeline of our business. Leveraging the advantages of multimodal AI technologies, we continue to strengthen the protection of user interests.

Sam Li: We have always regarded security and responsibility as the lifeline of our business. Leveraging the advantages of multimodal AI technologies, we continue to strengthen the protection of user interests. During Q1, we identified and blocked approximately 290,000 fraudulent borrowers and intercepted 113,000 malicious applications associated with organized fraud activities. We continue to advance our risk management strategy from a reactive defense model towards proactive prevention and preemptive interception. In particular, we have achieved substantial progress in multimodal large language model applications, including voiceprint recognition, image recognition technologies. By integrating voiceprint analysis, graph algorithms, clustering technologies, and other advanced techniques, we are transforming our anti-fraud framework from traditional structured rule-based detection into a comprehensive prevention and control system built upon multimodal perception, graph analytics, and scalable engineering implementation.

[Translator]: We have always regarded security and responsibility as the lifeline of our business. Leveraging the advantages of multimodal AI technologies, we continue to strengthen the protection of user interests. During Q1, we identified and blocked approximately 290,000 fraudulent borrowers and intercepted 113,000 malicious applications associated with organized fraud activities. We continue to advance our risk management strategy from a reactive defense model towards proactive prevention and preemptive interception. In particular, we have achieved substantial progress in multimodal large language model applications, including voiceprint recognition, image recognition technologies. By integrating voiceprint analysis, graph algorithms, clustering technologies, and other advanced techniques, we are transforming our anti-fraud framework from traditional structured rule-based detection into a comprehensive prevention and control system built upon multimodal perception, graph analytics, and scalable engineering implementation.

Speaker #3: During the first quarter, we identified and blocked approximately 290,000 fraudulent borrowers and intercepted 113,000 malicious applications associated with organized fraud activities. We continue to advance our risk management strategy from a reactive defense model toward proactive prevention and preemptive interception.

Speaker #3: In particular, we have achieved substantial progress in multimodal large language model applications, including voiceprint recognition and image recognition technologies. By integrating voiceprint analysis, graph algorithms, clustering technologies, and other advanced techniques, we are transforming our anti-fraud framework from traditional structured, rule-based detection into a comprehensive prevention and control system built upon multimodal perception, graph analytics, and scalable engineering implementation.

Speaker #3: To date, our multimodal anti-fraud system has identified approximately 5 million suspicious audio and video samples associated with fraudulent and illicit activities, with an accuracy rate exceeding 90%.

Sam Li: To date, our multimodal anti-fraud system has identified approximately 5 million suspicious audio and video samples associated with fraudulent and illicit activities, with an accuracy rate exceeding 90%.

[Translator]: To date, our multimodal anti-fraud system has identified approximately 5 million suspicious audio and video samples associated with fraudulent and illicit activities, with an accuracy rate exceeding 90%.

Speaker #4: 股东回报方面，公司已将现行回购计划展期至2027年6月12日。剩余回购额度约为4,960万美金。我们将结合市场环境和公司的实际运营情况统筹安排各项股东回报举措。

Dinggui Yan: 股东回报方面，公司已将现行回购计划展期至2027年6月12日，剩余回购额度约为4,960万美金。我们将结合市场环境和公司的实际运营情况，统筹安排各项股东回报举措。

Speaker #3: Turning to shareholder returns, we have extended our current share repurchase program through June 12, 2027, with approximately $49.6 million remaining available under the program.

Sam Li: Turning to shareholder returns. We have extended our current share repurchase program through 12 June 2027, with approximately $49.6 million remaining available under the program. We will continue to evaluate market conditions and our operational performance and comprehensively evaluate and implement various shareholder return initiatives.

[Translator]: Turning to shareholder returns. We have extended our current share repurchase program through 12 June 2027, with approximately $49.6 million remaining available under the program. We will continue to evaluate market conditions and our operational performance and comprehensively evaluate and implement various shareholder return initiatives.

Speaker #3: We will continue to evaluate market conditions and our operational performance, and comprehensively evaluate and implement various shareholder return initiatives.

Speaker #4: 介于宏观环境、仍存在不确定性，公司保持审慎态度，预计2026年第二季度交易量为95亿元至105亿元。我们将继续以稳健经营保障行稳资源，以深度以运营深度换取发展韧性，力求以精益化的经营能力构造长期发展的护城河。

Dinggui Yan: 鉴于宏观环境仍存在不确定性，公司保持审慎态度，预计2026年第二季度的交易量为95亿元至105亿元。我们将继续以稳健经营保障行稳致远，以运营深度换取发展韧性，力求以精益化的经营能力，构建长期发展的护城河。

Speaker #3: Given the continuing uncertainty in the macroeconomic environment, we remain prudent in our outlook. We currently expect transaction volume for the second quarter of 2026 to be between RMB 9.5 billion and RMB 10.5 billion.

Sam Li: Given the continuing uncertainty in the macroeconomic environment, we remain prudent in our outlook. We currently expect transaction volume for Q2 2026 to be between RMB 9.5 billion and RMB 10.5 billion. Looking ahead, we will continue to prioritize disciplined operations and sustainable development through deeper operational experience and enhanced organization resilience. We aim to build a durable competitive moat.

[Translator]: Given the continuing uncertainty in the macroeconomic environment, we remain prudent in our outlook. We currently expect transaction volume for Q2 2026 to be between RMB 9.5 billion and RMB 10.5 billion. Looking ahead, we will continue to prioritize disciplined operations and sustainable development through deeper operational experience and enhanced organization resilience. We aim to build a durable competitive moat.

Speaker #3: Looking ahead, we will continue to prioritize disciplined operations and sustainable development through deeper operational experience and enhanced organizational resilience. We aim to build a durable competitive moat.

Speaker #4: 下面请CFO樊总介绍本季度的财务表现。

Dinggui Yan: 下面请CFO范总介绍本季度的财标。

Speaker #3: With that, I will now turn the call over to our CFO, Mr. Chunlin Fan. Please go ahead.

Sam Li: With that, I will now turn the call over to our CFO, Mr. Chunlin Fan. Please go ahead.

[Translator]: With that, I will now turn the call over to our CFO, Mr. Chunlin Fan. Please go ahead.

Speaker #1: Thank you, Mr. Yan, and hello everyone. Thank you for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB.

Chunlin Fan: Thank you, Mr. Yan, and hello everyone. Thank you for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB, and all percentage changes refer to year-over-year comparisons unless otherwise noted. As Mr. Yan noted earlier, we remained disciplined in our execution during the first quarter and delivered transaction volume in line with our previous guidance. Transaction volume was RMB 19.3 billion, representing a decrease of 45.8% from the same period of 2025. Our net revenue was RMB 756.7 million, representing a decrease of 57.4% from the same period of 2025. Moving on to costs. Facilitation and servicing expense was RMB 331.6 million, representing a decrease of 1.3% from the same period of 2025.

Speaker #1: End-of-period percentage changes refer to year-over-year comparisons unless otherwise noted. As Mr. Yan noted earlier, we remained disciplined in our execution during the first quarter and delivered transaction volume in line with our previous guidance.

Speaker #1: Transaction volume was $19.3 billion, representing a decrease of 45.8% from the same period of 2025. Our net revenue was $756.7 million, representing a decrease of 57.4% from the same period of 2025.

Speaker #1: Moving on to costs, facilitation and servicing expense was RMB 331.6 million, representing a decrease of 1.3% from the same period of 2025. Allowance for uncollectible receivables, contra assets, prepaid expenses and other current assets and others was RMB 1.1 million, compared with RMB 2.025 million.

Chunlin Fan: Allowance for uncollectible receivables, counterassets, prepaid expenses, and other current assets and others was RMB 1.1 million, compared with RMB 17.5 million for the same period of 2025, primarily due to the decrease in allowance for overseas contingent guarantees. Sales and marketing expense was RMB 340.1 million, representing a decrease of 49.6% from the same period of 2025, primarily due to decreased borrower acquisition expenses. General and administrative expense was RMB 44.1 million, representing a decrease of 16.5% from the same period of 2025, primarily due to decreased professional service fees. R&D expense was RMB 109.8 million, representing an increase of 24.6% from the same period of 2025, primarily driven by an increase in technology infrastructure expenses and employee costs. Non-GAAP loss from operation was RMB 17.1 million, compared with RMB 606.6 million non-GAAP income from operation in the same period of 2025.

Speaker #1: Primarily due to the decrease in allowance for overseas contingent guarantees. Sales and marketing expense was $340.1 million, representing a decrease of 49.6% from the same period of 2025.

Speaker #1: Primarily due to decreased borrower acquisition expenses. General and administrative expense was $44.1 million, representing a decrease of 16.5% from the same period of 2025.

Speaker #1: Primarily due to decreased professional service fees. R&D expense was $109.8 million, representing an increase of 24.6% from the same period of 2025, primarily driven by an increase in technology infrastructure expenses and employee costs.

Speaker #1: Non-GAAP loss from operation was $70.1 million, compared with $606.6 million Non-GAAP income from operation in the same period of 2025. Consequently, our net loss for the first quarter was $61.7 million, compared with $539.5 million net income in the same period of 2025.

Chunlin Fan: Consequently, our net loss for Q1 was RMB 61.7 million, compared with RMB 539.5 million net income in the same period of 2025. Our basic and diluted net loss per share were both RMB 0.29, compared with RMB 2.63 basic and diluted net income per share in Q1 of 2025. Basic and diluted net loss per ADS were both RMB 1.16, compared with RMB 10.12 basic and diluted net income per ADS in Q1 of 2025. Each ADS represents four Class A ordinary shares of the company. We ended this quarter with RMB 43.4 million in cash and cash equivalents, compared with RMB 61.8 million at the end of the previous quarter. With that, we can open the call for questions. Ms. Qi, our Chief Risk Officer, and I will answer your questions. Operator, please proceed.

Speaker #1: Our basic and diluted net loss per share were both $0.29, compared with $2.53 basic and diluted net income per share in the first quarter of 2025.

Speaker #1: Basic and diluted net loss per ADS were both $1.16, compared with $10.12 basic and diluted net income per ADS in the first quarter of 2025.

Speaker #1: Each ADS represents four Class A ordinary shares of the company. We ended this quarter with $43.4 million in cash and cash equivalents, compared with $61.8 million at the end of the previous quarter.

Speaker #1: With that, we can open the call for questions. Mr. Qi, our Chief Risk Officer, and I will answer questions. Operator, please proceed.

Speaker #2: Thank you. If you would like to ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced.

Operator: Thank you. If you would like to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. Thank you. We will now begin with our first question. This is from Jihao Li from CSC. Please go ahead.

Speaker #2: To withdraw your question, please press star 1 and then 1 again. Please stand by while we compile the Q&A roster. Thank you. We will now begin with our first question.

Speaker #2: This is Zihao Li from CSC. Please go ahead.

Speaker #4: 好，感谢管理层给我这个提问的机会。我是中信建投非营利子行，我这边有两个问题想请教一下公司。一是我们看到公司第一季度出现了接近6,200万的亏损，也是公司上市以来的首次单季度转亏。想请问一下背后的主要原因是什么？另外，我们也很关心管理层如何看待未来盈利能力的改善。公司在日常经营层面是否已经做出了一些调整？谢谢。下面我将翻译一下我的问题。 Okay. Hello, management. I'm Jerry Lee, Fang China Securities. We have seen the company's reported net loss of almost 62 million for the fourth quarter.

Jihao Li: 感谢管理层给我这个提问的机会。我是中信建投，我这边有两个问题想请教一下公司。一是我们看到公司第一季度出现了接近6,200万的亏损，也是公司上市以来的首次单季度转亏。想请问一下背后的主要原因是什么？另外，我们也很关心管理层如何看待未来盈利能力的改善，那公司在日常经营层面是否已经做出了一些调整？谢谢。下面我翻译一下我的问题。Okay.

Jihao Li: Hello, management. I'm Jerry Li from China Securities. We have seen the company's reported a net loss of almost RMB 62 million for Q1. It is the first quarterly loss since listing. What are the primary drivers behind this performance? Any operational adjustments to improve profitabilities moving forward? Thank you.

[Translator]: Hello, management. I'm Jerry Li from China Securities. We have seen the company's reported a net loss of almost RMB 62 million for Q1. It is the first quarterly loss since listing. What are the primary drivers behind this performance? Any operational adjustments to improve profitabilities moving forward? Thank you.

Speaker #4: This is the fourth consecutive quarterly loss since listing. What are the primary drivers behind this performance? Are there any operational adjustments planned to improve feasibility moving forward? Thank you.

Speaker #3: 我是公司CEO严定贵。我想就您提出的这两个问题的话做如下的作答。第一个就是我们这一季度录得的亏损到6,170万元。自从去年的Q2开始，然后提及9号文，然后的话从11号开始执行9号文，整个行业实际上是面临一个非常巨大的业绩下滑。不仅是我们，整个行业皆是如此。因为9号文要求把贷款的最高利率从36%压降到24%。从去年的11号到今天的5号，今年的9号，6月份，整个市场的话已经总体压降了接近5,000亿的贷款规模。所以的话，我们从去年的11号开始，根据监管的要求，我们的话将利率水平调整到24，整体的业绩规模下降还是很明显的。由于的话，业绩下降非常的剧烈，再叠加去年11号开始，由于规模急剧下降，然后借款人由于供给不足造成的这种踩踏，违约率持续上升。所以的话，在今年，不好意思，你先开始。

Dinggui Yan: 我是公司CEO严定贵，我想就您提出的两个问题做如下的作答。第一个就是我们这一季度录得的亏损到6,170万元。自从去年的Q2开始，提及这个九号文，然后从11月开始执行这个九号文，整个行业实际上是面临一个非常巨大的业绩下滑。不仅仅是我们，整个行业皆是如此。因为九号文要求把贷款的最高利率从36%压降到24%。从去年的11月到今年的6月份，整个市场已经总体压降了接近5,000亿的贷款规模。所以我们从去年的11月开始，根据监管的要求，我们把利率水平调整到24%，整体的业绩规模下降还是很明显。由于业绩下降非常的剧烈，再叠加去年11月开始，由于规模急剧下降，借款人由于供给不足造成的这种踩踏，违约率持续上升。所以的话在今年。不好意思，你先开始。Hi, Jerry。I'm the CEO 严定贵。I will answer your question.

[Translator]: Hi, Jerry。I'm the CEO 严定贵。I will answer your question.

Speaker #5: Hi, Jerry. I'm the CEO, Yan Dinggui. I will answer your question. Regarding the loss of $61.7 million, ever since the new regulation came out last year and was implemented in October, where the lower rate cap was enforced, from October to June, the overall market loan volume has reduced by $500 million.

Dinggui Yan: On the loss of RMB 61.7 million

[Translator]: On the loss of RMB 61.7 million

Sam Li: Ever since the new regulation came out last year and implemented in October, where the lower rate cap was enforced from October to June, the overall market loan volume has reduced by RMB 500 billion. Due to this significant lowering of the loan volume, there has been a liquidity crunch from the borrower side.

[Translator]: Ever since the new regulation came out last year and implemented in October, where the lower rate cap was enforced from October to June, the overall market loan volume has reduced by RMB 500 billion. Due to this significant lowering of the loan volume, there has been a liquidity crunch from the borrower side.

Speaker #5: And due to this significant lowering of the loan volume, there has been a liquidity crunch on the borrower side.

Speaker #4: 所以的话，这个叠加9号文造成的信贷供给严重不足，然后由于借款人的供给不足，所以造成了违约大面积上升，给行业带来了非常巨大的冲击。所以从去年的11号开始，我们就在用非常高效、非常低顺位的这种努力去解决可能带来的资产恶化带来的冲击。

Dinggui Yan: 所以这个叠加九号文造成的信贷供给严重不足，然后由于借款人的供给不足，所以造成了违约大面积上升，给行业带来了非常巨大的冲击。所以从去年的11月开始，我们就在用非常高效、非常低顺位的这种努力去解决可能带来的资产恶化冲击。

Sam Li: Ever since the new regulation and the liquidity crunch on the borrower side since implementation on 1 October, we've tried many methods to be highly efficient to resolve the credit risk brought on by the aftereffect of the implementation.

[Translator]: Ever since the new regulation and the liquidity crunch on the borrower side since implementation on 1 October, we've tried many methods to be highly efficient to resolve the credit risk brought on by the aftereffect of the implementation.

Speaker #5: Ever since the new regulation and the liquidity crunch on the borrower side, since the implementation on October 1, we've tried many highly efficient methods to resolve the credit risk brought on by the after-effects of the implementation.

Speaker #4: 所以我这个回答也可以回答你第二个问题，也就是说从今年春节以后，实际上我们经历了非常艰难的2月底。贷偿是一个非常庞大的数字，但是从3月份开始，整个的信贷持续向好，然后我们已经度过了最艰难的这段时间。由于我们在11号开始压缩了我们的信贷规模，让我们能够更选择性地去接受优质资产，因为本身资金供给也不足，规模下降导致的收入的减少，叠加我们在当时没有去考虑裁员等等费用压缩的计划，所以的话造成了我们一季度收入方面和我们的支出是不太匹配。所以造成了亏损。

Dinggui Yan: 所以我这个回答也可以回答你第二个问题，也就是说从今年春节以后，实际上我们经历了非常艰难的2月底。待偿是一个非常庞大的数字，但是从3月份开始，整个的信贷持续向好，然后我们已经度过了最艰难的这段时间。由于我们在11月号开始压缩了我们的信贷规模，让我们能够更选择性地去接受优质资产，因为本身资金供给也不足。规模下降导致的收入的减少，叠加我们在当时没有去考虑裁员等等费用压缩的计划，所以造成了我们一季度收入方面和我们的支出不太匹配，所以造成了亏损。

Speaker #5: So, ever since Chinese New Year, we've had a very difficult adjustment period, combined with the lack of cost reduction actions last year. So, the faster decrease in loan volume than the decrease in cost reduction.

Sam Li: Ever since Chinese New Year, we've had a very difficult adjustment period, combined with no cost reduction actions last year. There's a faster decrease in loan volume than the decrease in cost reduction. That explains most of the difference in the loss.

[Translator]: Ever since Chinese New Year, we've had a very difficult adjustment period, combined with no cost reduction actions last year. There's a faster decrease in loan volume than the decrease in cost reduction. That explains most of the difference in the loss.

Speaker #5: So, that explains most of the difference in the loss.

Speaker #4: 所以我们从Q2开始，我们已经取得了一定的进展。首先第一个就是我们压缩了我们的成本。所以我们在现金流这个方面，然后得到了有效的支撑。在业绩方面，我们也很好地去平衡了我们的收入和我们的支出。让我们在Q2很好地度过了由于供给不足所造成的大面积的客户的风险的出清。所以的话，到今天为止，我可以非常负责任地跟您说，我们现在已经取得了非常好的进展。

Dinggui Yan: 所以我们从Q2开始，已经取得了一定的进展。首先第一个就是我们压缩了我们的成本，使我们在现金流这个方面得到了有效的支撑。在业绩方面，我们也很好地去平衡了我们的收入和我们的支出，让我们在Q2很好地度过了由于供给不足所造成的这个大面积的客户的风险的出清。所以到今天为止，我可以非常负责任跟您说，我们现在已经取得了非常好的进展。

Speaker #5: So, ever since Q2, we've implemented a lot of cost control and reduction. So the cash flow will be better next quarter, and from the volume and revenue perspective, we've balanced out our cash flow, revenue, and expenses.

Sam Li: Ever since Q2, we've implemented a lot of cost control and reduction. The cash flow will be better next quarter. From the volume and revenue perspective, we've balanced out our cash flow, revenue, and expenses. We're better equipped to have better cash flow and better liquidity for the upcoming quarter.

[Translator]: Ever since Q2, we've implemented a lot of cost control and reduction. The cash flow will be better next quarter. From the volume and revenue perspective, we've balanced out our cash flow, revenue, and expenses. We're better equipped to have better cash flow and better liquidity for the upcoming quarter.

Speaker #5: So we're better equipped to continue to have improved cash flow and better liquidity for the upcoming quarter.

Speaker #4: 好吧，这个是我的回答。

Dinggui Yan: 好吧，这个是我的回答。

Speaker #5: That's my response to your question.

Sam Li: That's my response to your question.

[Translator]: That's my response to your question.

Speaker #2: Thank you. We will now take our next question. This is from Hua Rong from Jin Yu Assets. Please go ahead.

Operator: Thank you. We will now take our next question. This is from Hua Rong, from Jin Yu Asset. Please go ahead.

Speaker #1: What are you telling me 好，我是来自金玉资产的分析师华荣。我有个问题想请教一下，能否请管理层介绍一下一季度以及四五月份的风险趋势？近期风险状况是否有所改善？ Hello, management. Could you provide some color on the risk trends throughout the first quarter and into April and May?

Hua Rong: 管理层你好，我是来自金域资产的分析师华蓉，我有个问题想请教一下，能否请管理层介绍一下一季度以及四五月份的风险趋势，近期风险状况是否有所改善？Hello Management, could you provide some color on the risk trends through the first quarter and into April and May? Are we seeing an improvement in the risk metrics? Thank you.

Hua Rong: 管理层你好，我是来自金域资产的分析师华蓉，我有个问题想请教一下，能否请管理层介绍一下一季度以及四五月份的风险趋势，近期风险状况是否有所改善？

[Translator]: Hello Management, could you provide some color on the risk trends through the first quarter and into April and May? Are we seeing an improvement in the risk metrics? Thank you.

Speaker #1: Are we seeing an improvement in the risk metrics? Thank you.

Speaker #4: 那我就请我们新加入的我们的组织的CRO，契丹女士去回答这个问题。契丹女士在加入我们这个组织之前，曾经是腾讯微众银行的风险官，然后请契丹女士回答我们的问题。

Dinggui Yan: 那我就请我们新加入的组织的CRO，祁丹女士去回答这个问题。祁丹女士在加入我们这个组织之前，曾经是腾讯那个微众银行的风险官，然后请祁丹女士回答问题。

Speaker #5: I would like to welcome Ms. Qidan, our new Chief Risk Officer, to answer this question. She’s from Tencent WeBank, and she used to be in risk and risk management over there.

Sam Li: I would like to welcome Miss Qidan, our new Chief Risk Officer, to answer this question. She is from Tencent WeBank, and she used to be in risk management over there. I would like to welcome her to answer this question.

[Translator]: I would like to welcome Miss Qidan, our new Chief Risk Officer, to answer this question. She is from Tencent WeBank, and she used to be in risk management over there. I would like to welcome her to answer this question.

Speaker #5: So I would like to welcome her to answer this question.

Speaker #1: 好，我介绍一下。这是我们的资产受去年整体风险的上涨冲击下，其实新客的风险在去年9月份是达到一个风险的峰值，老客的新放款风险是在去年11月份在峰值。在这个之后，其实是一个逐步回落改善的趋势。

Dan Qi: 我介绍一下，我们的资产受去年整体风险的上涨冲击下，新客的风险在去年九月份达到一个风险的峰值，老客的新放款风险是在去年十月份峰值。在这个之后，其实是一个逐步回落改善的趋势。

Sam Li: The deterioration in asset quality caused by the rise in credit risk last year has been improving. Credit risk among the new borrowers peaked in September last year, while the risk associated with new loans facilitated to existing borrowers peaked in November. Since then, both have trended downward and shown steady improvement.

Speaker #5: So, the deterioration in asset quality caused by the rise in credit risk last year has been improving. Credit risk among new borrowers peaked in September last year, while the risk associated with new loans facilitated to existing borrowers peaked in November.

[Translator]: The deterioration in asset quality caused by the rise in credit risk last year has been improving. Credit risk among the new borrowers peaked in September last year, while the risk associated with new loans facilitated to existing borrowers peaked in November. Since then, both have trended downward and shown steady improvement.

Speaker #5: Since then, both have trended downward and shown steady improvement.

Speaker #1: 在新客是从去年的Q4开始，我们通过主动的调整获客渠道的组合和优化模型策略，获客的整个体量进行了绝对控制。新客风险持续改善，今年3到4月的新客风险已经回落到去年全年的低值的一个水位。

Dan Qi: 在新客是从去年的Q4开始，我们通过主动地调整获客渠道的组合和优化模型策略，获客的整个体量进行了绝对控制，新客风险持续改善。今年三到四月的新客风险已经回落到去年全年的低值的一个水平。

Sam Li: For new borrowers, since Q4 of last year, we proactively really adjusted our borrower acquisition mix and the channel mix and optimized our risk models while really controlling the overall volume of new borrower acquisition. As a result, the new borrower credit performance has continued to improve. By March and April of this year, the new borrower metrics has already declined to the lowest levels recorded during the entire last year.

[Translator]: For new borrowers, since Q4 of last year, we proactively really adjusted our borrower acquisition mix and the channel mix and optimized our risk models while really controlling the overall volume of new borrower acquisition. As a result, the new borrower credit performance has continued to improve. By March and April of this year, the new borrower metrics has already declined to the lowest levels recorded during the entire last year.

Speaker #5: For new borrowers, since Q4 of last year, we proactively adjusted our borrower acquisition mix, channel mix, and optimized our risk models.

Speaker #5: While really controlling the overall volume of new acquisition, borrower acquisition, as a result, the new borrower credit performance has continued to improve. So by March and April of this year, the new borrower metrics had already declined to the lowest levels recorded during the entire last year.

Speaker #1: 老客的新增资产方面，一季度的风险是逐步回落的。那四五月份风险较去年高峰期已经下降了25%到30%，回落到了去年五六月份的水平。风险管理上，我们是挑选了融资和偿债能力更强、资产和资质更好的客户进行准入，主动对抗风险能力较弱的高共债、高资金饥渴和弱资产的客户，缩短了贷款的期限和压降了授信额度。从准入、授信、期限上主动的调整了资产的结构，通过收缩经营体量提升经营质量。

Dan Qi: 老客的新增资产方面，一季度的风险是逐步回落的。四五月份风险较去年高峰期已经下降了25%到30%，回落到了去年五六月份的水平。风险管理上，我们是挑选了融资和偿债能力更强、资产和资质更好的客户进行准入，主动对抗风险能力较弱的高共债、高资金饥渴和弱资产的客户，缩短了贷款的期限和压降了授信额度，从准入授信期限上主动地调整了资产的结构，通过收缩净体量，提升经营质量。

Speaker #5: With respect to the newly facilitated loans for existing borrowers, the risk levels continue to decline throughout the first quarter. In April, by April and May, the risk metrics has really fallen by approximately 25% to 30% from their peak levels, returning to levels seen in May and June of last year.

Sam Li: With respect to the newly facilitated loans for existing borrowers, the risk levels continued to decline throughout Q1. By April and May, the risk metrics have really fallen by approximately 25% to 30% from their peak levels, returning to levels seen in May and June of last year. From a risk management perspective, we have really tightened our borrower selection criteria by focusing on borrowers with stronger financial and repayment capabilities, as well as more stable asset and credit profiles. At the same time, for the higher risk borrowers, such as those with elevated leverage, significant multi-borrowing exposure, greater liquidity stress, or weaker asset profiles, for those borrowers, we have proactively shortened the loan tenures and reduced credit limits. By making these adjustments to the borrowing emission standards, credit limits and loan terms, we have really actively optimized our asset mix.

[Translator]: With respect to the newly facilitated loans for existing borrowers, the risk levels continued to decline throughout Q1. By April and May, the risk metrics have really fallen by approximately 25% to 30% from their peak levels, returning to levels seen in May and June of last year. From a risk management perspective, we have really tightened our borrower selection criteria by focusing on borrowers with stronger financial and repayment capabilities, as well as more stable asset and credit profiles. At the same time, for the higher risk borrowers, such as those with elevated leverage, significant multi-borrowing exposure, greater liquidity stress, or weaker asset profiles, for those borrowers, we have proactively shortened the loan tenures and reduced credit limits. By making these adjustments to the borrowing emission standards, credit limits and loan terms, we have really actively optimized our asset mix.

Speaker #5: So from a risk management perspective, we've really tightened our borrower selection criteria. By focusing on borrowers with stronger financial and repayment capabilities, as well as more stable asset and credit profiles, at the same time, for the higher risk borrowers, such as those with elevated leverage, significant multi-borrowing exposure, greater liquidity stress, or weaker asset profiles, for those borrowers, we have proactively shortened the loan tenures and reduced credit limits.

Speaker #5: So, by making these adjustments to the borrowing, emission standards, credit limits, and loan terms, we have really actively optimized our asset mix.

Speaker #5: So, while this has resulted in a more measured pace of business growth, it has significantly improved the overall quality of our operations.

Sam Li: While this has resulted in a more measured pace of business growth, it has significantly improved the overall quality of our operations. Yeah, that's my answer to your question.

[Translator]: While this has resulted in a more measured pace of business growth, it has significantly improved the overall quality of our operations. Yeah, that's my answer to your question.

Speaker #1: 我听明白了。

Speaker #5: Yeah, that's my answer to your question.

Speaker #1: 谢谢管理层。我没有其他问题。

Hua Rong: 谢谢关一彤，我没有其他问题。

Speaker #2: Thank you. Seeing no more questions, I will return the call to Sam for closing remarks. Please go ahead.

Operator: Thank you. Seeing no more questions, I will return the call to Sam for closing remarks. Please go ahead.

Speaker #5: Thank you, operator. And thank you all for participating on today's call. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

Sam Li: Thank you, operator, and thank you all for participating on today's call. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

Sam Lee: Thank you, operator, and thank you all for participating on today's call. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

Operator: Thank you all again. This concludes the call. You may now disconnect.

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