X Financial

Hello and welcome to the ex-financial second quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. 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 2. 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 today's call. The company's financial results were released earlier today and are available on our investor relations website at ir.xiaoyingroup.com. On the call today from X Financial are Mr. Ken Lee, President, Mr. Frank Fuya Zheng, Chief Financial Officer, and Mr. Noah Kaufman, Chief Financial Strategy Officer. Mr. Lee will start with a brief overview of our business progress and financial performance. Then Mr. Kaufman will go over some key Q2 metrics and highlights. After that, Mr. Zheng will share updates on financials regulatory insights, and our 2025 outlook. Afterwards, Mr. Li, Mr. Zheng, and Mr. Kaufman will be 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 involve known or unknown risks uncertainties, and other factors. These factors are difficult to predict, and many are beyond the company's control, which may cause actual results, performance, and achievements to differ materially from those described in these statements. Further information on these and other risks can be found in our SEC filings. The company undertakes no obligation to update any forward-looking statements. as a result of new information, future events, or otherwise, except as required by law. It is now my pleasure to introduce Mr. Ken Lee.

Thank you, Victoria. And hello, everyone. We are very pleased with our continued momentum in 2025. In the second quarter, we facilitated RMB 38.99 billion in loans, a 10.9% sequential increase and a strong 71.4% growth year over year. This was another standout quarter for Originations, supported by robust borrower demand and the continued advance in risk management. Our team remained committed to expanding market opportunities through both new partnerships and the deepening of existing relationships. further strengthening our technology platform and underwriting models to drive probability and scalability. Carefully balancing growth opportunities with prudent risk management as we increase access to qualified borrowers. We also continue improving borrower experience by speeding up decision making, streamlining applications, and enhancing transparency simultaneously We have made meaningful enhancements to platform reliability and borrowing facing tools, empowering users to make informed credit decisions and managing repayments confidently. Despite the ongoing regulatory environment and macroeconomic uncertainty, we delivered significant sequential growth in loan volume and revenue. Total revenue reached RMB 2.27 billion, up 17.3% sequentially. and notably higher at 65.6% growth year over year. These results reflected disciplined execution and ongoing expansion of our platform and capabilities. Operational and credit quality update. We also continued making positive strides in asset quality as of June 30th. Our 31 to 60 day delinquency rate improved to 1.16%, down from 1.29% a year ago, reflecting nearly a 10% improvement year over year. The 91 to 180 days delinquency rate was 2.91%, substantially lower than the 4.38% in Q2 2024, demonstrating a meaningful 33% reduction year over year. These improvements highlight our continued commitment to disciplining the borrower screening and the rigorous underwriting practices. We have also proactively improved borrower engagement, leveraging timely communication, and customized repayment assistance programs. These initiatives continue to drive better borrower behavior, significantly contributing to the stability and the quality of our portfolio. With that, I'll now turn it over to Noah, who will walk through additional financial and operational highlights from the second quarter.