X Financial

Hello and welcome to the Ex-Finance Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask a question. Note, this event is being recorded. I would now like to turn the conference over to Tania Wen. Please go ahead.

Thank you, operators. Hello, everyone, and thank you for joining us today. The company's results were released earlier today and are available on the company's IR website at ir.tiaoyinggood.com. On the call today from X Financial are Mr. Ken Lee, President, and Mr. Van Voyagen, Chief Financial Officer. Mr. Lee 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 section. I remind you that this call may contain follow-up looking statements under the State Harbor provisions of the Private Security Delegation 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 non-honorary facilities and other factors. 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 from the forward-looking statement. For the information regarding this and other authorities and factors is included in the company's filing with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information future events, or other effects as required on the law. It is now my pleasure to introduce Mr. Ken Li. Mr. Li, please go ahead.

Hello, everyone. We are pleased with our performance this past quarter, given the great challenges brought by the significant economic slowdown amid the escalation of COVID-19 containment measures in China. We continue to scale up our loan facilitation volume while improving asset quality quarter-over-quarter. Total loan facilitated and provided during the past quarter maintained a steady growth on both a yearly and quarterly basis, exceeding the high end of our forecast thanks to our effective risk management system and premium borrower base. We saw a meaningful decrease in the democracy rate from the previous quarter. We have further demonstrated our business resilience and ability to navigate tough conditions. During the second quarter, our total loan amount facilitated and provided reached RMB 17 billion, representing an increase of 32% year-over-year and 11% quarter-over-quarter. The delinquency rate for all outstanding loans past due for 31 to 60 days as of June 30, 2022, decreased 2.93% from 1.31% as of March 31, 2022. While the asset quality of the financial industry as a whole deteriorated during the quarter due to the macro headwinds, we're managing to improve our asset quality as we continue to enhance our risk management system. We expect our asset quality to remain stable in the second half of the year. During the past quarter, we stepped up our efforts to acquire more high-quality borrowers as a result, Our number of active borrowers increased 72% on those yearly and quarterly basis and reached a high level of over 1 million in this quarter. We are pleased to see that our products and services have been well received by extensive and growing user base. This is a testament to our for reliability and it has laid a solid foundation for our future growth. Going forward, we will continue to expand and deepen our cooperation with our institutional funding partners to jointly serve the diverse financial needs of small and micro businesses and consumers in China. On the regulatory side, the China Banking and Insurance Regulatory Commission issued a notice on strengthening the management of commercial banks' internet known business to improve the quality and efficiency of financial services on July 15th. The new rules affirm the positive role of international further refine and clarify the requirements for international management and extend the grace period for the rectification of international operations to June 2023 from July 2022. This initiative aims to promote the stable and healthy development of the international business and it is part of the government's to stimulate strategy to revive the pandemic economy by encouraging more credit to stimulate investments and consumption. This is conductive to the overall development of the financial industry and the extended grace period also give us more time to explore marketing opportunities under the new regulation, especially financial services for small and micro businesses. Looking ahead, With the COVID-19 pandemic subsiding and the macroeconomy gradually rebounding, we are cautiously optimistic about our business in the second half of the year with an increasing accommodated environment. We expect to see steady sequential growth in upcoming quarters. Now, I will turn to the call to Frank, who will go through our financials.