Jianpu Technology Inc.

Good day and welcome to the Janpu Technology Incorporated second quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Colin Chung, Please go ahead, sir.

Thank you, Operator. Hello, everyone, and thank you for joining us today. Our second quarter and first half year 2022 earnings release were distributed earlier today and is available on our IR website at ir.genpool.ai, as well as on PR need-wide services. On the call today from GenPool Technology, we have Mr. David Yeh, co-founder, chairman, and chief executive officer of and Mr. Oscar Chen, Chief Financial Officer. Mr. Yeh will talk about our operations and company highlights, followed by Mr. Chen, who will discuss the financials and guidance. They will all be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains four looking statements as defined in Section 21E of the Securities Exchange of 1934 and the U.S. Market Security Litigation Reform Act of 1995. These four looking statements are based on management's current expectations, the current market and operating conditions, and relates to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control. These risks may cause the company's actual results or performance to differ materially. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the USFCC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required on the applicable one. Finally, please note that unless otherwise stated, all pages mentioned during the conference call are in written indeed. It is now my pleasure to introduce our co-founder chairman and chief executive officer, Mr. David Yeh. David, please go ahead.

Thank you, Colin. Hello, everyone, and thank you for joining us today. During the second quarter, the rolling lockdowns across China caused by the resurgence of COVID-19 resulted in a more challenging macro environment. Nevertheless, we continue to deliver another quarter of strong results with a total revenue of 34% and a bottom line improvement by 9%. The solid results primarily result from four areas. Number one, diversification of our revenue base. Number two, strong omnichannel marketing capabilities. Number three, continued operating efficiency improvements. Number four, disciplined cost cutting and optimization. The results also demonstrated our persistence in pushing forth our vision of becoming everyone's financial partner. Let me start today by going through the key highlights for the second quarter, then share some of our views on the current macro environment and the regulatory dynamics in China and how they could potentially impact our businesses before turning over to Oscar to go through the financial performance. First, our diversification strategy has enhanced our business resilience and it supports the the strong revenue growth under the current challenging macro environment. Nowadays, we generate our revenue via our platform by offering recommendation services of credit card loans and insurance products as well as other products and services. We are cooperating with 1,500 more financial service providers and other customers throughout the ecosystem. of consumers and small businesses credit product offering. We provide our marketing and user acquisition capability, data analysis, and risk management solutions, and other technological and services, enabling financial institutions' digital transformation. Geographically, we serve our users across the country with very low concentration risk. In the second quarter of 2022, we further penetrated into the tertiary cities with around 65% of the loan recommendation revenue contribution from 7- and 3-tier cities versus 55% in the first quarter. As you may know, 7- and 3-tier cities, the impacts from COVID are actually less severe compared to Shanghai and other larger cities. In the second quarter, the resurgence of COVID has prompted multiple lockdowns across China. Some of our business operations still rely on face-to-face communications and on-site implementation with customers. These current measures have brought about certain challenge. However, thanks to our diversification strategy, our recommendation business continued to achieve significant growth. with revenues increasing 38% year-over-year and 42% quarter-over-quarter. In particular, we kept our market leading position in the credit card recommendation business and the revenue from our credit card recommendation business maintained robust growth of 36% year-over-year. Our long recommendation business also benefited from a more diversified customer base with revenue growth at 42% year-over-year. Second, we continue to enhance our omnichannel marketing capabilities to enable the digital transformation of the financial industry. This allowed us to capture the increasing demand from financial institutions for identifying and engaging new users from different geographies and younger demographics. Our big data solutions also improve the risk management capabilities and the customer acquisition efficiencies of financial service providers. In Q2, we made certain achievements to further diversify our user base and strengthen our omni-channel solutions. Our social media and partner program continued its leading position, delivering both growth and efficiency. Our share in mainstream media and acquisition channels with various consumption scenarios continue to grow solidifying our widely recognized position in the industry. Another initiative worth mentioning is our efforts in promoting DCEP or digital currency electronic payment. In recent years, the Chinese authority have focused on the quantitative qualitative development of the economy, primarily driven by ongoing digital transformation, including the introduction and the promoting of its digital currency, DCEP. Since 2019, the central bank has conducted a pilot test of DCEP in different consumption scenarios in various cities, leveraging our leading position in our recommendation businesses. Our team had a significant win in partnering with a large bank to market the digital wallet. We were right on the government's commitment and investment in promoting the application of DCEP to explore further business opportunities in this area. Third is the ongoing improvement in our operating efficiency. Against the backdrop of macroeconomy and regulatory uncertainties, we continue to strive to achieve a good balance between managing our continued growth and operating efficiency. Our overall ROI, or revenue from recommendation services, advertising, and marketing services, divided by the corresponding cost of acquisition and promotion, continues to improve by 8% points. sequentially in the first half of 2022, of which the ROI of our recommendation businesses improved by seven percentage points versus the second half of 2021. We also continue to see an encouraging trend in our new initiatives, delivering an 11 percentage points ROI improvement versus the second half of 2021. Finally, our disciplined cost cutting and optimization measures help to reduce loss significantly. As we continue to optimize our operating costs and expenses while better utilizing the company's resources, we have enhanced our overall productivity leading to a margin improvement and a lower net loss in the second quarter. Our operating loss reduced significantly by 48% year-over-year, while our adjusted net loss margin further improved by 80 percentage points compared with the second quarter of 2021. Over the coming quarters, we will maintain this approach of disciplined spending, striving to achieving further improvement in our productivity and margin. I will now take a few minutes to discuss the latest macro environment. regulatory dynamics and our business outlook. With regard to the macro and regulatory environment, the rolling lockdown across China has prompted moderation of real GDP growth to 0.4% year-over-year in the second quarter. Nevertheless, the State Council Executive Meeting held in late July stated that China's economy should grow is a reasonable range this year with a particular emphasis on the stability of employment and inflation. This should be achieved by the expansion of effective investment and the continued promotion of private consumption. Meanwhile, the meeting also called for the active and consistent development of the digital consumption. We believe the government will maintain a more relaxed physical policy and the monetary policy to revive the economy in the near term. We have seen signs of a liquidity injection into the financial system with banks accelerating their loan growth recently. The government also calls for continued promotion of private consumption, particularly for developing digital consumption. This should be a positive catalyst. to facilitate further expansion of our loan and credit card recommendation businesses given our leading position in the market. The government issued new regulations and policies in terms of internet lending and credit card business, advocating banks to engage in digital transformation, product innovation, and the development of online credit businesses. This should benefit the market leaders like us. Lastly, the COVID control measures still leave uncertainties that may continue to have impact on certain segments of our operations for the next few quarters. However, our robust and resilient results for the second quarter highlight the strong benefits of our diversification strategy. Thus, we are cautiously optimistic about our business performance for the second half of this year. In summary, we believe our strong business model, investments in omnichannel marketing capability, leadership position in digital transformation solution, and disciplined cost control measures will ultimately deliver better business results for the next quarter. I will now turn the call over to our CFO, Oscar Chen, who will discuss our financial results. Thank you.