X Financial

And welcome to the ex-financial second quarter 2024 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 your telephone keypad. To withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Victoria Yu. 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.xiaoyingroup.com. On the call today from X Financial are Mr. Kang Li, President, and Mr. Frank Tu-Ya Zheng, Chief Financial Officer. Mr. Li will give a brief overview of the company's business operations and highlights, followed by Mr. Zhang, 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. Further information regarding risk 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 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 report another solid quarter as we made further progress in improving our profitability. Our proactive management of loan volume based on asset quality dynamics continued to bear fruit in the second quarter. As a result, while loan volume declined year over year, our net income for the quarter grew significantly and reached a record high. The total loan amount facilitated and originated decreased by 12% year-over-year, but increased 6% sequentially to RMB 23 billion. Our total outstanding loan balance was RMB 42 billion at the end of June 2024. Delinquency rates for outstanding loans past due for 31 to 60 days and 91 to 180 days were 1.29% and 4.38%. respectively at the end of the quarter, compared to 1.61% and 4.37% a quarter ago, and 0.96% and 2.5% a year ago. As we have seen an improvement in our asset quality, we have decided to ease our strict controls on loan volumes, and we expect our loan volumes to gradually recover on a year-over-year basis in the second half of the year. Meanwhile, we will continue to strengthen and refine our risk management system to improve asset quality. Our focus remains on sustainable profitability, and we employ flexible tactics to adapt to evolving market conditions to achieve this, and as always, to increase shareholder value. Now, I will turn the call to Frank, who will go through our financials.