Yiren Digital Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the year-end digital first quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question at that time, you'll need to press star 1 on your telephone. I'd now like to hand over to your first speaker today, Ms Lydia Yu. Thank you. Please go ahead.

Thank you and welcome to EARN Digital's first quarter 2020 earnings conference call. Today's call features the presentation by the Founder, Chairman, and CEO of Credit East, and CEO of EARN Digital, Mr. Ning Tang, CFO of EARN Digital, Mr. Zhong Bi, and CRO of EARN Digital, Mr. Michael Ji. Before beginning, we would like to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provisions, the U.S. Private Securities and Litigation Reform Act. of 1995. Such statements are subject to risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any such statement. Further information regarding potential risks, uncertainties, or factors is included in UN Digital's filing to the U.S. Securities and Exchange Commission. UN Digital does not undertake any obligations to update any foreign statements, except as required under applicable law. During a call, We will be referring to several non-GAAP financial measures and supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about these non-GAAP measures and reconciliation to GAAP measures, please refer to our earnings press release. I will now pass it on to our CEO, Ning, for opening remarks.

Thank you all for joining our first quarter 2020 earnings conference call today. The first quarter of this year has been a challenging one as the coronavirus shocked the entire global economy. During this unprecedented time, our core businesses remained stable while we made substantial progress to diversify and Enrich our business lines and continue our business transition to China's leading digital personal financial service platform. We took proactive measures to ensure our business operating at a healthy level, giving customers the best service we can offer, making our own contribution to fight against COVID-19. Now let me talk about our credit tech business. To maintain business resilience and to position ourselves for the long term, we were focused on three areas in our credit tech business this year. First, stabilize and improve risk performance. Second, invest in new areas of growth. And third, grow our institutional funding mix. I'll now talk about our actions in each of these areas. Our first priority is stabilizing and improving risk performance. In the first quarter of 2020, loan originations decreased 77% from prior quarter to RMB 1.8 billion. as we proactively tighten the credit and decrease the business volume to control credit risk in light of the COVID-19. Our fast and timely response allowed us to operate at profitable level in the first quarter despite a challenging micro environment. Our second focus is on exploring additional opportunities and investing in new areas of growth. We have recently launched several new credit products to diversify our loan portfolio and to better meet a full spectrum of mainstream consumer credit needs. The short, tenuous, smaller ticket size revolving loan product offers credit solutions for a wider range of online and offline This product has been very well received, growing more than 100% month over month. For this product, we will partner with large traffic channels like Xiaomi and OPPO Finance so that we will be able to significantly expand our business with diversified consumption scenarios, reduce customer acquisition costs, and improve operating efficiency as well as portfolio quality. Last quarter, we mentioned that we will be rolling out auto loans this year as auto loans typically have a better risk profile than unsecured consumer loans. Our auto loan segment have shown a visible growth momentum since March. And in particular, our auto leasing business is estimated to reach RMB 1.5 billion in loan origination in the first half of this year. And we expect this product segment to be one of the main revenue drivers in the second half of this year. In the second half of the year, together with our channel partners, We also hope to build a consumption platform to enrich our credit ecosystem with a member-only online e-commerce platform. Our third area of focus is on growing our institutional funding mix. We are pleased to report that our institutional funding mix has increased to 40% in the first quarter of 2020. are from 14% last quarter, and we expect this proportion to increase to over 50% in the second quarter this year. We are also actively expanding our institutional partners from banks to trust companies, other licensed financial institutions, and consumer finance companies. Next, on wealth management, our online wealth management business has seen strong growth. in particular for non-P2P wealth management products and services. The number of non-P2P investors increased by 23% from prior quarter to 26,436 as of March 31, 2020. The AUA of non-P2P products increased 37% 67% quarter-over-quarter to RMB 1.7 billion. Average investor investment amount of non-P2P wealth management products has seen steady growth to 65K RMB, up from 48K RMB in previous quarter, driven by both increased investment amount for single product as well as multiple product selection representing good progress in our efforts on developing investor habits in using an asset allocation investment strategy. For mutual fund products within wealth management, we witnessed strong demand during the first quarter with AUA increasing by 17% and with sales volume increasing by 30% from February to March 2020, driven by our new product offerings. We expect this growth trend to continue through the year. We have also been investing in investor education through a variety of online courses to help investors develop a long-term investment horizon. And we also noted a significant improvement in average AUA per investor in mutual fund products, which has increased to RMB 36.8K in March 2020. With that, I will now turn the call over to our CFO, Jun, who will discuss our financial results for the quarter.