X Financial

Hello and welcome to the ex-financial fourth quarter 2020 earnings conference call. All participants will be in 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 a touch-tone phone. 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 Tanya Wang. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. The company's results were released earlier and are available on the company's IR website at ir.tiaoingroup.com. On the call today from X Financial, Mr. Simon Chen, President, and Mr. Fletcheran, Chief Financial Officer. Mr. Chen will give a brief overview of the company's business operations and highlights, followed by Mr. Chen, who will go through the financials. They are all available to answer your questions during the Q&A session. I remind you that this call may contain forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions, and relate 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, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. for the information regarding this and other risks, uncertainties, and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not take any obligation to update any forward-looking statements as a result of new information, future events, or otherwise effects as required under law. It is now my pleasure to introduce Mr. Simon Chen. Mr. Chen, please go ahead.

Hello, everyone. We are very pleased to close out 2020 with a substantial business recovery in the fourth quarter. Our top line saw year-on-year growth, mainly driven by the recovery in the loan facilitation amount, which was almost back to the levels of the same period of 2019. With unprecedented challenges due to the impact of COVID-19, I'm very proud of our team in navigating the challenging environment after our business was significantly impacted. We also have successfully completed our business transformation from the P2P model to the loan facilitation model based on 100% institutional funding. In February 2021, the China Banking and Insurance Regulatory Commission finalized guidelines on internet loan business by commercial banks with a classification on capital limits in joint lending and other requirements. The change could be favorable for industry in the long run, along with the Chinese government's work on the anti-monopoly law. We believe all these initiatives will help build a healthy and sustainable business environment for online lending business. and provide more opportunities for qualified loan facilitators of a certain scale. At the present, some of our funding partners have been gradually adjusting the way they cooperate with us in order to comply with the new regulations. In the meantime, we will closely monitor regulatory developments and evolving industry landscape and adjust our strategies and services in compliance with government policies and market trends. We are encouraged by the operational performance during the quarter that will help drive most growth in 2021. Driven by increasing demand of Shell Inc. card loan, our flagship product, our loan solicitation amount of Shell Inc. card loan increased by 16.8% quarter-over-quarter In the meantime, the total number of loans facilitated by Shell InCard loan increased by 14.3 quarter over quarter. As of the end of 2020, our total loan outstanding balance of Shell InCard loan reached RMB 13 billion, an increase of 19.6% quarter over quarter. In 2021, we will continue to optimize our product portfolio with the focus on Shell InCard loan which target prime borrowers and has proven to meet customer needs and fit better into our strategy to drive long-term profitable growth. By the end of 2020, we have also cleared all our sending nodes in our P2P business and exited all related P2P business. In the meantime, we further strengthen our cooperation with financial institutions after we achieved 100% institutional funding for the new loan facilitation throughout the platform by the end of the second quarter of 2020. Moving forward this year, we will continue to expand our cooperation with more financial institutions, especially regional funding partners, to enable more geographic coverage of our loan product offerings. In the meantime, we will explore more opportunities to deepen our cooperation with existing funding partners by leveraging our proven capabilities in offering better products, technology, and risk management systems. Looking ahead, our business recovery has continued to be driven by growing market demand so far this year. Leveraging our quality borrowables, cutting-edge risk management systems, trust worthy brands, and strengthen partnerships with financial institutions. We will continue to improve our top line and bottom line in the short term, and I believe we are on track to deliver long-term sustainable growth. Now I will turn the call to Frank, who will go through our financials.