LexinFintech Holdings Ltd.

Good day and thank you for standing by. Welcome to the Lexin fourth 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 one and one 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 fourth quarter 2025 earnings conference call. Our results were released earlier today and are currently available on our IR website. 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 CIO, Mr. Arvin Zhang Wenqiao, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Deng, 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 R&B terms, and all comparisons are made on quarter-over-quarter basis, unless otherwise stated. Please kindly note Jay and Arvind 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 Wenjie Xiao. Chairman and CEO of Lexin, please.

Hello, everyone. I am very happy to share with you the performance of our company in 2025. In the fourth quarter, we adjusted the business structure under the new rules and completed a large-scale project. In the fourth quarter, we adjusted the business structure under the new rules and completed a large-scale project. In the fourth quarter, we adjusted the business structure under the new rules and completed a large-scale project. In the fourth quarter, we adjusted the business structure under the new rules and completed a large-scale project. In the fourth quarter, the company achieved a transaction amount of 500 billion yuan, revenue of 3 billion yuan, and the number of active users was 453 million, and the number of new active users was 88.4 million. In the whole year of 2025, the company's transaction amount reached 2,053 billion yuan, and the new profit was 17 billion yuan, which increased by 52.4%. Next, I would like to introduce some of the key work progress since the fourth quarter. to meet the requirements of the new rules and meet the requirements of the new rules. In the fourth quarter, as the new rules of the industry officially come to an end, on the basis of the business adjustment and system deployment that the company has completed in the early stages, we insist on using the users as the center, continuing to optimize product governance and personalize service experience. We strictly implement the business in the framework of the new rules. At the same time as effectively improving the company's sustainable management and resistance to risk, Through personal credit, branch sales, general finance, etc. multi-faceted business Accurate, efficient, connect financial services and market needs Help actual economic development, promote consumption, health growth Second, comprehensively strengthen risk management, industry business stable development Since the fourth quarter, the risk of the industry has been rising In the quarter, the company optimized the risk strategy, monitoring the quality of new assets Strengthen the recognition and acquisition of high-quality customers By using more real-time data to increase the simplicity and accuracy of risk recognition, the new asset risk indicators will be significantly improved. In terms of storage assets, we focus on the precision operation of high-quality assets. By optimizing the price-to-performance ratio and building a decentralized pricing system, improving product competitiveness and customer experience, and ensuring that the storage asset risk continues to stabilize, the company has stabilized the overall risk range in the quarter, and the asset quality has remained stable. The overall risk indicator is improving rapidly. Since January to February this year, many risk indicators have shown good trends. The dew rate has dropped more than 10% compared to the high point in October. Third, unique ecological businesses are strengthening their advantages in the period of industry change. In the fourth quarter, separate sales businesses are narrowing down the living and consumption scene, continuing to improve the supply chain, enriching the supply of food, clothing, and other products. In the Double 11 and Double 12 e-commerce big events, We continue to strengthen marketing and operation, and by avoiding discounts and other measures, we have steadily improved the activity and transaction performance of users, and we have consolidated the advantage of diversification of retail sales. In the quarter, we continue to strengthen the construction and investment of customer capacity, and we have increased the number of new and new customers in the quarter. At the same time, we focus on improving the business of old customers by diversifying the pricing and price strategy, and we are continuously increasing the activity of users. In the quarter, general meeting, digital, and overseas business have all achieved steady growth, further highlighting the company's business model. Fourth, in-depth use of AI technology to improve user service experience. In the fourth quarter, the company continues to upgrade its large-model application technology. Customer service intelligence is successfully applied to core scenarios such as receivables, transactions, and refunds. Reply accuracy is more than 90%, and the average response time is within three seconds. In this scenario, only 3.4% of the power is transferred. This greatly improves the service efficiency and experience. In the future, we will continue to promote the 10-stage landing application of no-person service at night to achieve a 24-hour non-stop service. In the future, we will further apply large model landing in the core part of the wind control, such as the rule system. Large model auxiliary system gradually replace the traditional rule system. Accuracy is increased to 89%. In the wind control strategy part, large model support strategy, deep modeling customer data, deep modeling customer data, implementation of differential strategy, automatic deepening and full process assessment, decision accuracy and response efficiency continue to improve. User operation part, to match the needs of the user in the self-converting, accurately identify the needs of the user, guide user self-management, reduce the cost of artificial service, and improve the user experience. The company has always insisted on the service concept of the user as the center, The consumer's right to protection is the core competitive advantage. In the fourth quarter, the standardization and optimization of the service process and the ability of self-discipline, the overall service efficiency and response speed have been improved. We will further deepen the precision operation of user group services by continuing to optimize the user-based service platform functions to improve user satisfaction. In the fourth quarter, the policy level will introduce a series of consumer-based development of the existing economy, and develop a multi-net direction for the industry. We have always relied on the policy requirements of the country to fully play our own advantage, to increase the investment in small and medium-sized product services in the consumer scene, and to provide more comprehensive full-service and timely assistance for the development of small and medium-sized products with rich products through low-input and low-input methods. We believe that in 2026, the market will have more opportunities. The company will seize the opportunity to stick to the bottom line and stick to the user as the center. deep-rooted multi-faceted ecological business, continue to improve the company's operability and the ability to match the cycle. In 2026, we will also increase the investment in small and medium-sized enterprises and high-quality consumer groups, continue to increase the proportion of high-quality customers, build better customer groups, and establish a more stable business base with better source of profit, and encourage high-quality growth, and create long-term and sustainable returns for shareholders.