X Financial

Hello and welcome to the ex-financial third quarter 2024 earnings conference call. All participants will be in a 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 the 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 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 conference and our website at ir.xiaoyingroup.com. On the call today from exponential are Mr. Ken Lee, president, and Mr. Frank Puyat-Zheng, chief financial officer. Ms. Li will give a brief overview of the company's business operations and highlights, followed by Ms. 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 management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risk uncertainties or 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 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. Kent Lee. Mr. Lee, please go ahead.

Hello, everyone. We are pleased to report another strong quarter with loan volume exceeding our forecast and a significant sequential improvement in asset quality. In the third quarter, we continued to promptly adjust loan volumes based on risk level. As asset quality improved, we further intensified our borrower acquisition efforts, which have yielded very positive results. Both the top and the bottom line continue to grow year over year. Non-GAAP-adjusted net income reached a new record high. Specifically, on the operational front, our total known amount facilitated and originated was down 4% year on year, but up 25% sequentially to RMB 28 billion, above the high end of our guidance. The iniquity rates for all outstanding loan past due for 31 to 60 days and 91 to 180 days were 1.02% and 3.22% respectively at the end of the quarter, compared to 1.29% and 4.38% a quarter ago, and 1.11% and 2.50% a year ago. We are pleased with this improvement in asset quality and will continue to optimize our risk management system through advanced technology. In September this year, the Chinese government unveiled a comprehensive stimulus package aimed at improving liquidity, boosting the property market, stabilizing financial markets, and stimulating consumption. We expect this will provide a meaningful boost to the microeconomic recovery. as an integral part of the economy, the personal finance market we serve should benefit from this upturn. We have already observed a positive sign in the market and are committed to adjusting loan volumes in line with the risk levels. As a result of this favorable environment, we are raising our guidance and expect our monthly loan volume to exceed RMB 10 billion in the fourth quarter, setting a new record. Now, I will turn the call to Frank, who will go through our financials.