X Financial

And welcome to the ex-financial fourth quarter 2022 earnings conference call. All participants will be in listen-only mode. If 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 and then one on your telephone keypad. 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 victoria you please go ahead okay thank you operator 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.xiaoyingroup.com. On the call today from ex-financial are Mr. Ken Lee, President, and Mr. Frank Hu-Ya Zheng, Chief Financial Officer. Mr. Lee will give a brief overview of the company's business operations and highlights, followed by Mr. Zheng, 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 cover provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the management's current expectations and the current market and operating conditions and relate to events that are involving known and unknown risks, uncertainties, and other factors. All of these were 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 statement. Further information regarding these and other uncertainties factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement. As a result of new information, future events, or otherwise, except as required under law. It is now my pleasure to introduce Mr. Ken Lee. Mr. Lee, please go ahead.

Hello, everyone. We are very pleased to enter the year with another solid quarter. The non-facilitation amount in the fourth quarter of 2022 exceeded our guidance, and our total net revenue grew rapidly, increasing on both an annual and quarterly basis. Despite the very challenging environment in the midst of the COVID-19 resurgence throughout the year, we achieved a 42% increase in the non-facilitation amount in 2022 and maintained our asset quality at historically high levels. This further demonstrates the resilience of our business model, especially during the challenging times, and confirms that we are on the right track for sustainable growth thanks to strong execution by our team and continuous optimization of our risk control system. In Q4, our total loan amount facilitated and originated reached approximately RMB 22 billion of 66% year-over-year and 9% quarter-over-quarter, bringing our total loan amount for the full year to approximately RMB 74 billion. Our premium borrower base remains stable, and we continue to improve asset quality by leveraging our data-driven and technology-powered risk control system. Our delinquency rate for all outstanding owns past due for 31 to 60 days decreased to 1.02% as of the end of December 2022, from 1.48% a year ago. We have continued to strengthen collaborations with our institutional funding partners and with our credit line provided by them since Q4. We see further opportunities to optimize our funding costs and improve operation efficiency. With the end of the strict COVID control policy and the reopening of China in December last year, the country's focus has shifted back to stimulating economic growth. We believe that domestic consumption will play an important role in driving China's economy growth this year and so far in Q1. We have seen a recovery in consumer sentiment. In addition, small and medium-sized enterprises are expected to receive more support from the government to derive their business recovery and further growth. All of these factors will benefit the overall personal finance market in China, where our business is rooted. On the regulatory side, according to the central bank, Ant Group and 13 other platforms companies have basically completed business with liquidification under the government's guidance and supervision. And the regulators will continue to promote the healthy development of the platform economy. While we believe that the overall regulatory environment will be broadly stable this year, we will closely monitor and adapt quickly to any policy changes. and ensure compliance in our operations. In conclusion, we are cautiously optimistic about the outlook for this year and expect continued rapid growth in our loan facilitation amount and expansion in both our top and bottom lines. Now, I will turn the call to Frank, who will go through our financials.