LexinFintech Holdings Ltd.

Good day and thank you for standing by. Welcome to Le Shing FinTech third quarter 2024 earnings conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 11 on your telephone. You'll then hear the automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the call over to your first speaker today, Ms. Mandy Tong. Thank you. Please go ahead.

Thank you, Desmond. Good morning and good evening, everyone. Welcome to Le Xin's Third Quarter 2024, Earthings Conference Call. Our results were issued earlier today and can be found on our IR website. Joining me today are our CEO, Jay Hsiao, CRO, Arvin Chow, and CFO James Chung. Before we get started, I'd like to remind you of our Safe Harbor Statement in our earnings press release, which also applies to this call. During the call, we may refer to business outlooks and forward-looking statements, which are based on our current plans, estimates, and projections. The actual results may differ materially, and we undertake no obligation to update any forward-looking statements. Last, unless otherwise stated, all figures mentioned are in RMB. Jay will first provide an update on our overall performance. Arvind will discuss risk management updates. Lastly, James will cover the financial statements in more detail. I will now turn the call over to Jay. Please kindly note, in today's agenda, Jay will give his whole remarks in Chinese. Then the English version will be delivered via J's AI-based voice. J, go ahead, please.

Hello, everyone. I am very happy to share with you our business plan for the third quarter of 2021. In the third quarter, we insist on both risks and data, adopt a stable business strategy, reduce the risk of bankruptcy, and improve the asset structure. As new assets with low risk continue to enter, The overall structure of the company's assets is gradually improving. The trade volume of the third quarter is 5.1 billion yuan. The management revenue is 1,112.5 billion yuan. The revenue is 36.6 billion yuan. The net profit is 3.1 billion yuan. The revenue and profit will return to the stable growth channel. As the overall assets basically continue to improve, it is expected that the revenue and profit will continue to improve. The performance of the third quarter has two main highlights. First, The continuous risk system construction shows the effect. In the quarter, the new asset continues to improve. The large-scale asset risk has come to a turning point. The new asset early risk indicator FPDT fell by about 13%. The full asset return rate fell by about 9% compared to the second quarter. In the third quarter, the company focused on increasing the added value of high-quality assets. The low-end growth strategy fell completely. The optimization of the focus channel hair, the increase in the number of target customers, the deep digging of the company's past demand for more than 200 million potential customers, and the targeted implementation of re-alpha. Accelerate the delivery of high-quality and pure customers, introduce three-way data, and create a risk model dedicated to small and micro customers. The targeted and high-quality small and micro customers' precision recognition ability exceeds 10%. At the same time, upgrade the self-reliant anti-crime model, effectively locate and timely intercept suspicious fraud behavior. The platform's anti-fraud capability has been further improved. As the added asset quality continues to improve, the company's large-scale risk continues to decline, and the improvement of next year's performance has established a good foundation. The second bright point is to continue to promote detailed operation, adjust the capital asset ratio model, and the company's profit and loss capability steadily increases. In the third quarter, the profit and loss ratio increased by 8.45% to 223 BP. In the third quarter, with the decline of large-scale risks, the quality of assets continues to improve. Our assets are welcomed by more financial institutions. The financial structure is more diverse and healthy, leading to a continuous decline in financial costs. Compared to the second quarter, 98 BP has been reduced, creating a new low in history. In the third quarter, the company focuses on young customers. By optimizing products to match the needs of young customers, For the benefit of small and medium-sized customers, increase the operating capacity of big and medium-sized customers, widen the customer channel, and optimize the price-to-price reduction, reserve, power outage, etc. strategy, and introduce exclusive small and medium-sized business funds. In this quarter, the exchange rate of medium-sized customers increased by 78%, and the second is for the benefit of the community of high-quality workers. From the pricing strategy of Golan Le Jin Card, through the activity of the price, profit, and other means to stimulate the activity of customers, In the third quarter, the company based on the new accurate customer division, adjusted the capital asset ratio model, and launched the digital distribution platform. The digital distribution platform is a clear asset division model. The company does not bear capital risk losses, but through traffic distribution to earn technology service income. After the model is launched, we can effectively The growth of the performance of the company is inseparable from the continuous investment of technology and research. The company's research and research investment in the third quarter is 1.49 billion yuan. Continuous competition to build a leading industry. Management and management fully expose the movement of the operating system. Quickly capture the movement of business and operation indicators. Automatic output and volume of movement reasons. In the system, the system covers about 400 core business indicators in the business line. Accordingly, from the traditional artificial model of the number of weeks to the number of hours, or even minutes, to assist the business and management of the intelligent decision-making, the accuracy of the actual intention of the AI large model is further improved. In post-management scenarios, the accuracy rate is increased by 17% compared to the external color. Effective assistance businesses reduce costs and increase efficiency. In the field of consumer rights protection, which we have always paid special attention to, the third phase continues to improve the consumer consultation communication mechanism and customer service management system. Increase the digitalization and systematization of customer service, including the analysis system to improve the problem, launch a first-tier customer service authorization system, optimize customer service processes, and greatly improve customer service processing efficiency. deep-dive into a wide range of customer service data, analyze and respond to customer experience, improve the dynamic capacity and resolution of first-line customer service issues, strengthen business coordination, improve the insurance review mechanism, identify and solve insurance issues as soon as possible, and fully protect consumer rights. In the future, we will continue to follow the business principle of audit, promote risk, continue to decline, improve the profitability of assets, It is time to increase the supply and demand force to promote steady growth in business scale. As new assets are added, the proportion of new and high-quality assets is gradually increasing, and the amount of assets is gradually decreasing. It is expected that the overall risk will continue to improve rapidly. We are full of confidence in the increase in profit next year. To further return to shareholders, from the beginning of 2025, our share price ratio will increase from 20% of the current profit margin to 25%. Good morning and good evening, everyone.