LexinFintech Holdings Ltd.

Good day and thank you for standing by. Welcome to the Lexin third quarter 2025 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 will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Will Tan. Please go ahead.

Thank you, operator. Hello, everyone. Welcome to our third quarter 2025 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. J. Wenjie Xiao, who will provide an update on our overall performance and strategies of our business. Our CFO, Mr. Arvind Zangwen Chow, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Zeng, will discuss our financial performance. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call, as we will be making forward-looking statements. Last, please note that all figures are presented in Renminbi terms, and all comparisons are made on a quarter-over-quarter basis, unless otherwise stated. Please kindly note Jay and Alvin will give their whole remarks in Chinese first, then the English version will be delivered by Jay's and Arvind's AI-based voices. With that, I'm now pleased to turn over the call to Mr. Jay Wenjiexiao, Chairman and CEO of LeXin.

Please. Hello, everyone. I'm very happy to share with you the performance of our Q3 in 2025. In the third quarter, we completed the adjustment and deployment of the business in accordance with the new rules. This time, the adjustment was done smoothly. The key is that the company's continuous risk capability in the past few years and the unique flexibility of the ecological business fully reflect our long-term development concept and the ability to handle the cycle effectively reduced the impact of the new rules on the company. In the context of the fluctuating cycle of the industry, the company has still achieved stable performance in the third quarter. The actual transaction amount is 508.9 billion yuan and the revenue is 34.2 billion yuan. The net profit is 5.2 billion yuan, the net profit is 2%, the net profit is 68%, the net profit is 2.01%, the net profit is 9BP, the net profit is 92BP. We believe that as the new rule falls, the industry will enter the threshold and will further improve. The market is moving in a healthier and more sustainable direction. Our unique ecological business advantages and co-operative capabilities We believe that the long-term investment in the underlying energy and ecological business in the past will gradually turn into a差異化的競爭優勢。公司一直高度重視股東回報。我們此前宣布下半年分紅比例將由25%提升至30%並積極推進股份回購與增持計劃。 As of now, the related repurchase and real-time progress has exceeded half. Next, I would like to introduce some of the key work in the second half of the year. First, we have strengthened the identification of user categories and early response to industry risks. In the third quarter, we have strengthened the identification and active management of user categories according to industry risk trends, effectively balancing business scale and capital risks. In the first quarter, through the historical cycle model, we have targeted and identified a group of users who are affected by the cycle and are unstable, and made corresponding risk strategy adjustments to make the customer group more detailed division, real-time depreciation of interest rates and prices. In the third quarter, we added assets to achieve the balance of risk and profit. Secondly, we improved the product experience with the user as the center. In the third quarter, we promoted the upgrade of product and management capabilities, users care about the system and achieve the results of the construction. Financially, we satisfy the financial service needs of different split users. In the quarter, we combine with financial institutions to optimize the funding supply, expand the coverage of flexible back-and-forth and other flexible solutions, and use customized Re-Offer to increase user satisfaction and annuality, effectively improve the flow of users, and increase the ratio and contribution of good users. . . . . . In the third quarter, the company's unique business ecosystem and each branch co-constructed a more resilient ecosystem. Personal consumption is now facing high-quality users and optimizing service experiences, which significantly strengthens user year-on-year. Separate retail, deep-rooted young customers and core consumer scenarios continue to optimize supply systems. In terms of living consumption, the exchange rate in the quarter increased by 58.5% and increased by 133.8%. In the past two years, the market share of Double 11 has increased by 38% and the daily consumption of consumer goods has also increased by 237%. The stock exchange business has grown in the low-end market, focusing on small and medium-sized enterprises. The quality of assets has been stable and has verified the value of the low-end market. We will continue to expand the investment in the offline market and continue to improve the offline operating system. The number of overseas businesses has also achieved a steady growth. The company has always adhered to the service concept of the user as the center, and considers the protection of consumer rights as the core competitive advantage. In the third quarter, we will strengthen the consumer rights protection system in the system, products, and services. At the system level, we will develop a sustainable strategy to protect consumers. Through a variety of mechanisms, we will promote the protection of consumers and facilitate the transmission of all business segments to actively respond to the needs of users in the field of products and services. By using online customer service, AI customer service AI customer service AI customer service AI customer service AI customer service AI customer service AI customer service AI customer service AI customer service AI customer service AI customer service The joint industry has jointly attacked governance and obtained certain results. In the fourth quarter, the new rules are officially implemented. The industry will enter a more healthy and sustainable stage of development. Based on the completed business adjustment, we will seize the opportunity to increase the investment in ecological businesses and promote company stable development. In the future, we have confidence in the steady growth of performance.