LexinFintech Holdings Ltd.

Good day and thank you for standing by. Welcome to Listing First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. please be advised that today's conference is being recorded. And I'd like to hand the conference over to your first speaker today, Will Tan, IR Director of the company. Please go ahead.

Thank you, operator. Hello, everyone. Welcome to our first quarter 2026 earnings conference call. Our results were released earlier today and concurrently 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 the strategies of our business. Our CIO, Mr. Arvin Tsang Wenqiao, 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 present 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 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, sir. Hello, everyone. I am very pleased to share with you the performance of our first quarter of 2026. In the first quarter, in the face of the macroeconomic environment and industry challenges, the company has set up a long-standing, unique, and diverse ecological business, which has shown a stronger business mentality. In the quarter, in-season sales, offline fairs, and 2B digital technology business and other trading products are close to 50% of the ecological business. The number of real estate is higher than the online real estate business, which has become the company's new growth curve. New and old business can be converted to initial completion. The long-term effect of multilateral development is that the company is heading for stable and sustainable health development. In the quarter, the company's trading volume is 578.98 billion yuan, which is 15.9% higher than the growth. increase growth by 12.2%, revenue 33.09 billion, active users 516.7 million, return growth by 14.1%, increase growth by 8.6%, new active users 144.4 million, return growth by 63%, increase growth by 101.6%, net profit 2.01 billion, multiple risk indicators maintain stability and continue to improve. Next, I would like to introduce you to the progress of our work. First, the multi-faceted ecological business accounted for nearly 50% and became a new growth engine. Although the first quarter has the impact of the Spring Festival holiday, the company's split sales, offline meeting, 2B digital technology, and other business still grow steadily, and the volume of transactions is greatly increased, bringing new momentum to the company's performance. High efficiency connects the traffic platform and financial institutions to open a new space for 2B growth. In the first quarter, the company's 2B digital technology business, which has been in place for many years, began to grow rapidly. Our Yunxi Technology PRO solution is combined with technical ability and operating experience to create a bridge between the Internet traffic platform and various financial institutions, allowing the cooperation platform traffic to achieve accurate and efficient distribution. The most stable and profitable assets of the cooperating institutions are fully realized by the three sides. Separate sales and perfect supply chain fully penetrates into the demand and consumption scenarios. Separate sales and business deep-rooted supply and consumption scenarios, perfect supply chain system, rich, eat, wear, use, go, buy, fish, and so on. The cooperation advantage of the leading brand in the market, and added nearly 150 well-known head brands, and launched a brand special sales channel with more than 20 domestic and foreign fashion and sports brands. Since the channel was launched, the total sales of special sales brands has increased by 43%, which has fully met the needs of users for quality consumption. For scenes such as nameshifting, festive gifts, and other consumer events such as New Year's Day, New Year's Eve, and Spring Festival, the platform has launched many large-scale activities that continue to drive consumer growth. In the 3C digital field, continuous and non-exhaustive discounts effectively promote the improvement of user activity, and the sales of high-quality users in the platform and trading orders have increased by 37.5% in the quarter. Supply and exchange business to expand the current layout, and to dig up new values in the lower market. The company's offline supply and exchange business has always focused on localization management. In the face of special industries such as nomads and carp, the company has launched a unique risk model for industry customers. and a mysterious strategy to assist the local financial institutions to accurately match the financial needs of individual business owners and local financial institutions to promote universal financial vitality and continue to flow to the local area to assist the development of the local economy. In the quarter, overseas business has also achieved stable development. The scale, profit and asset quality continue to maintain steady growth. The second is to optimize the risk strategy and optimize product evidence. The asset quality has improved. In the first quarter, we continue to optimize the risk strategy Deeply integrated algorithms and models greatly improve channel connectivity and target user selection efficiency. Newly launched true-to-heart report, interpretation of the intelligence system, and interactive true-to-heart function. Make user identification more accurate. Effectively supports personalized pricing and pricing of high-quality customers. The company opens up all products from the beginning to the end, flexible functions. Focusing on white-collar, micro-customer groups to create differentiated, lean, and complex strategies. Through long-term management, we can clean up the price and support the positive customer group. We continue to promote the active positive customer group. The company's asset quality in the quarter continues to stabilize and recover. Added assets and total assets have the same risk of improvement. Total asset loss rate decreased by about 7% in the fourth quarter. The 30-day loss rate remained high. The new customer quality has improved significantly. There has been a significant increase in the number of customers who have applied. We estimate that the number of new customers will drop by about 6% in the first quarter. In the first quarter, the company continues to expand its resources for the improvement of sales and customer experience. We will strengthen the coordination and coordination between the front desk service sales team and all business conditions, so that the information is transmitted smoothly and the response to the problem is more immediate. The overall handling of the closed ring mechanism is more efficient. In terms of service experience, through the automation of route allocation and queue strategy, and the introduction of high-end warning mechanisms, the efficiency of user service has been significantly improved. The core user service indicators have been further improved. In terms of user care, we use a more perfect model to strengthen the user's interest in various groups, and implement more targeted service care. Overall, it has improved the user's experience and satisfaction, and it has also hit the black and gray. The company is actively responding to related department deployments in terms of financial KV production, playing a technical advantage in the field of artificial intelligence and big data, and perfecting the whole chain of defense and governance systems that break down cases at risk time to effectively maintain the legal rights of consumers. Looking forward to the future, the company will continue to work hard on the basis of good growth attitude in the multilayered layout to achieve stage results and continue to sell and distribute digital technology. Hi, everyone. Thanks for joining us today for our first quarter 2026 earnings call.