Jianpu Technology Inc.

Thank you, and welcome to the GR&E Technology Inc. First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to hand the conference over to Lucy and Lou. Please go ahead.

Hello, everyone, and thank you for joining us today. Our first call to 2023 will be distributed earlier today, and it's available on our IR website at ir.genpu.ai, as well as on PR Newswire services. On the call today from Genpu Technology, we have Mr. David Yeh, co-founder, chairman, and chief executive officer, 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 section that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Security Application Reform Act of 1995. These forward-looking statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risk, uncertainties, and other factors, all of which are difficult to predict. and many of which are beyond the company's control. This risk may cause the company's actual results or performance to differ materially. Further information regarding this and other risk uncertainties or factors is included in the company's filing with the U.S. SEC. 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 under applicable law. Finally, please note that unless otherwise stated, all figures mentioned during the conference call are in IMD. It is now my pleasure to introduce our co-founder, chairman, and chief executive officer, Mr. David Yeh. David, please go ahead.

Thank you, Li-Ting. Hello, everyone, and thank you for joining us today. Despite the ongoing challenges caused by the lagging effect of COVID, our capital asset, capital platform model, diversification, digital tech, and AI strategies allowed us to benefit from the economic rebound in the first quarter. We are pleased to announce a robust 39.4% year-over-year revenue growth in the first quarter of 2023. At the same time, the net loss was trimmed by a considerably 60.8% year-over-year, leading to a loss margin of 7.2%. the third consecutive quarter with a single digit net loss margin. Looking ahead to the rest of 2023, we remain committed to facilitating the digital transformation of our financial service providers and other ecosystem partners. Moreover, we're excited about the emerging trend in artificial intelligence driven by large language models and its massive application potential. We are actively exploring the feasibility of implementing such new technologies across all facets of our businesses. We drive the development of a tech-based inclusive finance model and empower our business partners more digitally, automatically, and intelligently. We are focused on executing our vision of becoming everyone's financial partner and driving the digital transformation of the financial industry and beyond. Let me now go through three key performance highlights from the first quarter. First, we bolstered our technological and operational capabilities to better serve our partners and stay on the cutting edge of digital transformation. Our revenue from credit card and loan recommendation services during the quarter increased by 30.1 and 32.2% year-over-year, respectively. The robust growth reflects our proven ability to support financial institutions with their digital marketing, user acquisition, customer retention, and risk management. As a leading independent platform for discovery and the recommendation from financial products and services, our years of experience have allowed us to gain deep insight into industry trends. We continuously optimize our digital marketing and risk control models to empower financial service providers. Our operational experience and compliance practices are recognized by our ecosystem partner. Therefore, improving our omnichannel capabilities. Going forward, we will continue to forge stronger relationships with banks and other financial institutions, assisting them with digital transformation, refining marketing strategy, and deepening our client engagement and risk management capabilities. Our commitment to being bank-trusted strategic partners will enable us to provide high-quality and efficient services to adapt to the challenging market demand. Second, our new business initiatives made significant progress. Our continued efforts to drive new business initiatives yield impressive results in terms of category expansion and the delivery of revenue growth of marketing and other services by 80.8% year-over-year in the first quarter. Revenue contribution From marketing and other services for adjacent category also increased from 16.3% of revenue in 2022 to 27.0% in the first quarter of 2023. Our user acquisition and retention capabilities have also gained widespread recognition from leading players in adjacent categories and industries. In the first quarter, we further strengthened our partnership in insurance, telecom, e-commerce, and lifestyle sectors. In particular, we facilitated the acquisition of more than 1 million new users for leading telecom service providers, showcasing our sophisticated digital marketing capability and improving social media and partnership programs. a successful deployment in covering a wider spectrum of users with various needs other than financial sectors. Third, our enhanced operational efficiency and optimized cost structure drove further margin improvement. With the lingering effects of COVID, our ROI remained fairly strong and stable. With an overall year-over-year ROI of 126.3% in Q1, we saw year-over-year ROI improvement of 2.4% for recommendation services and 4.3% points for the new business initiatives during the quarter. The stability demonstrates the resilience and the profitability of our solid business model, even in the face of challenging circumstances. Total operating expenses, including sales and marketing, R&D and G&A, decreased by 11.4% year-over-year in the first quarter. This was driven in part by our targeted streamlining of operations and strategic human resources allocation, resulting in further margin improvement and a decline in net loss. In Q1, Our operating loss and net loss decreased by 56.8 and 60.8% year-over-year, respectively. Operating loss margin and net loss margin improved by 18.2 and 18.3 percentage points year-over-year during this quarter, respectively. In particular, our Q1 net loss margin of 7.2% is the third consecutive quarter of single-digit net loss margin reflecting positively our continued efforts of efficiency improvement under the cost optimization as well as our capability to turn profit in the near future. After sharing our business highlights in the first quarter, I would like to take a few minutes to talk a bit about our artificial intelligence initiatives. Being a financial product recommendation platform built upon big data AI and one of our underlying technology, We are excited about and we're excited by the large trend led by large language model and its transformative impact on AI development. Currently, we are actively implementing and integrating AI tools such as child GPT into our operations. As of March 31st, around 60% of our staff have utilized AI tools and technologies to improve work efficiency and customer service. And this number continues to grow on a daily basis. In addition to this, we are also actively exploring ways to deploy AI across our businesses. For instance, our software as a service based on the customized risk modeling and the management practice we have developed a customized risk control model by fine-tuning an external natural language process model with our proprietary algorithm and data. This enables us to more efficiently deliver risk assessment analysis aligned with our client-specific needs. In summary, AI solutions present an opportunity to enhance our products and service delivery efficiency and effectiveness across various functions such as product development, creative design, marketing, operation, risk management, and other functions. Finally, let me take a few minutes to share our views on the macro environment and our business outlook. Regarding the macro environment, the government and the regulators recently emphasized the revival and expansion of market demand with a particular focus on stimulating private sector consumptions. As such, we anticipate the government's implementation of more effective and relaxed fiscal policy stable and precise monetary policy and additional incentives to promote private and public sector investments. However, we did observe some volatility since the first quarter, predicting GDP growth rate in Q2 may slow down a bit sequentially. Underperformance in aggregate finance in the real economy in April versus market forecasts and the recovery of consumer confidence and household sector confidence is still subject to observation. Overall, because of the lagging impact of COVID, we expect China's economic rebound will remain gradual throughout the first half of 2023 with a more stable footing in the second half. The recent inauguration of the National Financial Regulatory Administration also signals an imminent enhancement in the regulatory oversight of the financial sector, which will result in further patterning of pricing and operational flow of financial products offered by financial institutions. Despite this, we anticipate the government's continued emphasis on high-quality economic growth will provide a solid foundation for our business to grow. Overall, we believe our business is well positioned for a strong recovery Thanks to our efficient capital light business model, constantly innovating digital and AI-based technology, increasing diversification revenue mix, and ongoing efficiency gains. We are leveraging our market-leading position, advanced technology, and a proven track record of execution. to facilitate the digital transformation of the economy and generating long-term value for our customers and shareholders. I will now hand over the call to our CFO, Oscar Chen, to run through our financials. Thank you.