Yiren Digital Ltd.

Good day and thank you for standing by. Welcome to the year-end digital fourth quarter and fiscal year 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 during the session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to our first speaker today, Ms. Lydia Yu. Please take over, ma'am.

Thank you, and welcome to EARN Digital's fourth quarter and fiscal year 2020 earnings conference call. Today's call feature is a presentation by the founder, chairman, and CEO of Credit East, and CEO of EARN Digital, Mr. Ning Kang, CEO of EARN Credit, Ms. Mei Zhao, and CFO of EARN Digital, Ms. Nan Mei. And CRO of Aaron Gittal, Mr. George Liu, and Mr. Dennis Tong, Director of Aaron Gittal, will join the presenters in a Q&A session. Before beginning, we would like to remind you that discussions during this call contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and certain factors that can cause actual results to differ materially from those contained in any such statements. Further information regarding potential risks, uncertainties, or factors is included in In Detail's filings with the U.S. Securities and Exchange Commission. In Detail does not undertake any obligations to update any forward-looking statements assessed as required under applicable law. During the 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 financial information prepared and presented in accordance with U.S. GAAP. For information about these non-GET measures and reconciliation to GET measures, please refer to our earnings press release. I will now pass it on to Ning for opening remarks.

Thank you, Lydia. Thank you all for joining our fourth quarter and the full year 2020 earnings conference call. Looking back, the year 2020 was an unusual year as we faced a complex macro dynamic with impact from the pandemic and an evolving regulatory environment. Despite that, we are pleased to have accomplished significant milestones and continue our progress in our strategic transition to further solidify our position as China's leading digital personal financial services platform Before I go further into detailed business updates, I would like to highlight three key milestones that we've achieved in year 2020. First, we completed a business restructuring at year end in which we spun off our legacy P2P operation. The spun off operation will be run independently to focus on is smooth transition and winding down. And we expect many investors of our legacy products to transition to our other wealth management products. The restructuring will allow ERIN Digital to solely focus on our strategies to grow our wealth management and the loan facilitation-based credit tech businesses with full force going forward. Secondly, our wealth management business has achieved significant growth with strong demand, with the revenue generated from our current wealth management products, excluding our legacy products, accounting for 31% of our total net revenue in the fourth quarter, up from 12% in the third quarter. Even wealth has also finished its strategic rebranding and repositioned itself as a one-stop asset allocation-based professional wealth management platform, providing our clients with a wider range of well-selected products and optimized services. To date, ERIN Wealth has established partnerships with over 60 financial institutions, and provides over 4,000 products to meet the comprehensive needs of China's mass affluent customers. With both strong product service offerings and significant growth of investor base, we expect our wealth management business to provide strong revenue contribution to our overall business in 2021. Thirdly, as part of our one-stop asset allocation strategy to further enrich our product portfolio and services. We acquired an insurance broker, He Xiang, in 2020 to initiate our insurance business, and it has been growing at a significantly better than expected rate, bringing in strong synergies to our other wealth management products and services. Positioned as a comprehensive insurance broker with both online and offline channels, He Xiang has so far established partnerships with over 150 insurers nationwide and offers over 350 insurance products covering life and property and casualty insurance, serving both individual and corporate clients. He Xiang's business priority in 2021 will be to introduce more new products and to increase the proportion of higher take-rate products, such as life and health care insurance, to further drive the profitability of our wealth management business. Now, I will provide a business update on our wealth management business. and then pass it over to Ms. Mei Zhao, CEO of Eden Credit, to give an update on our credit business. On wealth management, we continue to see impressive growth momentum and that the demand remains strong going into the year of 2021. At the end of December 31, 2020, total client assets for our current products which exclude our legacy products, increased by 71% from prior quarter to RMB 8.6 billion. In light of the joint notice issued by the PBOC and the CBRC on regulating commercial banks to conduct personal deposit businesses through the internet, at the end of January, we have stopped facilitating online bank deposits and shifted our focus to other wealth management products. Online deposits represent only a small portion of our revenue from investors. Thus, the financial impact of this adjustment on our business will be minimal. Meanwhile, our fund products remain the top pick among investors, with Total client assets in fund products increasing by 10% quarter over quarter to RMB 1.5 billion. And then the average investment in fund products per investor reached RMB 61,000 as of end of the fourth quarter. Particularly, our self-selected fund up portfolio products enjoy high demand due to strong performance. which will become a main growth driver going forward. Moreover, we also plan to launch a new securities brokerage business in the second quarter this year, which will further enrich our wealth management offerings and provide investors with high-quality services to the financial markets in both the US and Hong Kong. Targeting the mass affluent and high net worth population, we distinguish ourselves from other online brokers with differentiated value of wider range products and quality services, including customized one-on-one investment consulting services and the bond products. So there are a lot to expect in our wealth management businesses this year. With that, I now turn the call over to May who will highlight some key updates for our credit business.