LexinFintech Holdings Ltd.

Good day and thank you for standing by. Welcome to Le Sing FinTech fourth quarter 2024 earnings conference call. At this time, all participants are in a 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 an 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 host today, Mr. Will Tan. Please go ahead.

Thank you, operator. Hello, everyone. Welcome to our fourth quarter 2024 earnings conference call. Our results were released earlier today and are currently available on our IR website. Today, you will hear from our chairman and CEO, Mr. Jay Wenjie Xiao, who will provide an update on overall performance and strategies. Our CFO, Mr. Alvin Zhang Wenqiao, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Chen, will discuss our financial performance. 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 do not assume any obligations to update any forwarding statement except as required under applicable laws. Last, please note that all figures are presented in RMB terms and all comparisons are made on quarter-over-quarter basis unless otherwise stated. Please kindly note, Jay and Arvin will give their whole remarks in Chinese first. Then, the English version will be delivered by Jay's and Arvin's AI-based voices. With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and CEO of LeXin. Please.

大家好,很高兴和各位分享我们2024年四季度业绩。 四季度,我们秉承着稳健的经营策略, 着力扩大新增优质资产量级, Adjusting asset profitability Under continuous risk data dual drive The company's overall asset risk has been further reduced Profit stability improvement In the fourth quarter, our transaction amount is 519.6 billion yuan Management balance amount 11102.7 billion yuan Revenue 36.6 billion yuan Long gap net profit 309 billion yuan Continuous multi-segment continuous improvement Revenue profit into a fast track of confirmed growth Next, I will introduce to you the two highlights of the four-season business. The first highlight is that the added assets continue to be high-quality documents, and the risk of large-scale assets continues to decline, and profit is growing rapidly. Compared with the last quarter, this quarter, the added asset early risk indicator FPD7 dropped by about 8%, FPD30 dropped by about 9%, and the full asset loss rate dropped by 4%, and the 90 plus bad rate dropped by 3%. First of all, the risk reduction is due to the long-term construction of the company's recognition power, wind control tools, and so on. On the recognition power, the four seasons are introduced through multi-dimensional data, multi-dimensional three-dimensional data, to build a distributed customer-specific data system and recognition model, to strengthen the real-time recognition of user risks, and to assist in correcting the stability of the model through the latest large model technology. System type The risk recognition accuracy rate has increased by 15%. The risk stability has increased by 10%. On the wind control tool, we have built a wind control laboratory for the risk automation test in four seasons. It is a set of small-scale experiment, A-B verification, long-term observation, and dynamic strategic evolution. A new method helps each wind control decision and strategic treatment have data and因果支撑. In the fourth quarter, the company has fully enhanced the digging and operation of high-quality customers. On the one hand, through the establishment of a scenario-specific model, the whole life cycle strategy system to reconstruct the end of the scenario, expand the customer channels and scenarios, and add active users to continue to grow. On the other hand, based on the work model of rapid test verification, fully upgrade and optimize the decision-making system, The price and risk match are more accurate. Based on these effective measures, the price competitiveness and profitability of high-quality customers have significantly improved. High-quality assets have increased significantly. The company's high-quality customers are steadily growing. The stability and sustainability of the business are further strengthened. More specific mistakes about risks will be further explained by the CIO later. The second highlight is . . . . . Thank you very much. The following region's trading volume accounted for more than sixty-five percent of the total business in three consecutive seasons. Overseas business in the cycle of time and risk, middle and back-end rich people, etc. At the same time, the focus is on strengthening local operation management and continuing to explore the new model of customers. The continuation and stability of the business in the cycle of new customers has also been significantly improved. At present, overseas business is still in the stage of exploration and development. The company will continue to promote the stable development of overseas business. In the fourth quarter, the company launched a new asset division model. The digital distribution platform has been further established. The GMV ratio continues to increase. Through this model, the company effectively cooperates with financial institutions to achieve mutual benefits, and continues to increase the company's income and profit. Benefit from the continuous improvement of the company's overall assets, our assets have been welcomed by more financial institutions. Funding sources and structures are more diverse and healthy. Funding costs continue to decrease. In terms of technical investment, the company pays great attention to technical development and applications. The company's development investment of 1.51 billion yuan in the fourth quarter continues to build the leading competitiveness of the industry, especially in the field of AI big models. Through the introduction of deep-seq and other domestic advanced big models, the company has completed the localization deployment. Lexin has a large model base. At present, the base is in the company's telecommunications, revenue, development code support, data analysis, and other daily operations. Deep landing, system execution, and development scenarios. We believe AI will be the core of the company's future There is a huge potential in the transformation of human resources. The company will also increase the strategic investment of AI to maintain industry competitiveness and create greater value. Consumer rights and security is the core competitive advantage and key ability of Lexin. It is to remember that the company has further strengthened the digitalization and systematization of consumer rights and security. Through AI big models and other tools, comprehensively optimize product service focus. In fact, the discovery of service shortcomings continues to complete the consumer communication mechanism, strengthen the consumer communication experience, and win the trust of more consumers. To assist small and medium-sized enterprises in development, the company is actively developing the general financial concept, and continues to improve the feasibility and convenience of financial services through product and service innovation, to assist small and medium-sized enterprises in relieving the problem of long-term debt. The company has issued small and medium-sized loans of more than 300 billion yuan throughout the year. Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan to joining us today.