X Financial

hello and welcome to the ex-financial third quarter 2023 earnings conference call all participants will be in listen-only mode after today's presentation will be an opportunity to ask questions please note that this event is being recorded i'd like to turn the conference over to victoria you please go ahead 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.xiaoying.com. On the call today from X Financial are Mr. Ken Lee, President, and Mr. Frank Fu-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 harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the 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. Further information regarding these and other risks, uncertainties, 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 otherwise, except as required under the law. It is now my pleasure to introduce Mr. Kent Li. Mr. Li, please go ahead.

Hello, everyone. We are pleased to see that our established strategy continues to deliver strong results in the third quarter. Our known facilitation and origination amount reached the high end of our previous guidance. And both our top line and bottom line showed a substantial year-over-year improvement. During the quarter, as macroeconomic conditions improved moderately and the regulatory environment stabilized, the personal finance business has returned to normal across the industry, resulting in increased competition. As a result, Our unit borrow acquisition costs increased quarter over quarter. Our loan delinquencies fluctuated within your historical low to middle range. During the third quarter, our total loan amount facilitated an originated increase by 49% year over year and the 14% quarter over quarter to RMB 29 billion. With the total outstanding loan balance reaching nearly RMB 50 billion at the end of September, 2023, Our delinquency rates for all outstanding loans passed due for 31 to 60 days and the 91 to 180 days were 1.11% and 2.5% respectively at the end of the quarter compared with 0.77% and 2.22% respectively a year ago. We have enhanced our efforts to acquire more quality borrowers, but we expect the delinquency rates to continue to fluctuate for some time. we will maintain healthy asset quality leveraging our cutting-edge risk management system and focusing more on asset quality than on expanding the borrower base. Going forward, we will continue to execute our proven strategy and enhance our ability to drive long-term growth and returns for our shareholders. Now, I will turn the call to Frank, who will go through our financials.