Yiren Digital Ltd.

Thank you for standing by and welcome to the year-end digital third quarter 2022 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Keao He, IR officer. Please go ahead.

Thank you, Rita. Good morning and good evening, everyone. Today's call features the presentation by the founder, chairman, and CEO of Credit East, our CEO, Mr. Ming Tang, and our CFO, Ms. Na Mei, our SVP, Ms. Mei Zhao, Raymond Fung, COO of UNCLAB, will join the presenters in the 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 Provision for U.S. Private Security Legislation Reform Act of 1995. Such statements are accepted risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any such statement. Further information regarding presented risks and certainty of factors is included in our filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under relevant law. During the call, we will be referring to certain 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 the U.S. GAAP. For information on non-GAAP measures and recent consideration to GAAP measures, please refer to our ending press release. I will now pass it on to Min for opening remarks.

Hi, everyone. Thank you for joining our conference call today. We are very pleased to deliver a resilient quarter with solid business recovery and continued improvement in profitability post our product restructuring and pandemic resurgence in the first half of this year. As the macro environment gradually rebounds and our revenue structure continues to evolve and upgrade, we have full confidence to embrace an accelerated growth path in the quarters to come. First, an update on our holistic wealth management business. Our insurance brokerage business continues its strong momentum this quarter, becoming an essential revenue pillar. In the third quarter of 2022, total premiums reached RMB $1 billion. representing a 36% increase year over year, surpassing the industry average growth rate by over six times. Revenue generated from He Xiang Insurance brokerage services reached RMB 189 million, accounting for more than 22% of total revenue. and we expect to see an accelerated double-digit growth in the fourth quarter. The rapid expansion of our insurance brokerage business is fueled by He Xiang's outstanding capabilities in product customization and innovation. Distinguished from other insurance brokers, He Xiang excels in analyzing and exploring different clients' specific needs in their life, and working scenarios. Therefore, our products enjoy a strong advantage of exclusiveness in the market. For example, one of our whole life insurance products, tailor-made for high net worth clients, called Yi Mai Xiang Chuan, closed nearly RMB 60 million in premiums this quarter alone. Another example, our customized group insurance products targeting kids and teens with vision care services will hit the market soon, which is expected to contribute sizable premium in the coming quarters. Moreover, our property insurance products also saw continued growth for the past 22 consecutive months and the demand remains strong as we expand into more fast-developing areas, such as litigation, preservation, liability insurance business. Another highlight I would like to point out is that second-year renewal rate for our long-term insurance products reached 96.6% as of the end of third quarter this year, much higher than the industry average of 85%. which has further proven the high quality of our services. Regarding the new regulation on online insurance sales, that's been a hot topic in the industry this year. The actual impact on our business has been minimal due to the complexity and richness of our product metrics and our relatively low reliance on online channels. In the third quarter this year, the total number of insurance products offered exceeded 750, up from around 650 in the prior quarter. Looking ahead, the momentum remains strong for both our life and property insurance segments. Now, moving on to a bigger picture of our holistic wealth business. In the third quarter of 2022, total client assets reached RMB 22.8 billion, an increase of 31% year-over-year, particularly on Yiren Select's platform, which is the upgraded version of Yiren Wealth and our super app strategy. Average client assets held by each client through our institutional partners reached more than RMB 350,000, representing a year-over-year growth of 36%. With the ongoing penetration of our Life Plus Finance initiatives and the balanced asset allocation investment educational concept, in the third quarter, the number of clients with client assets over RMB 1 million increased by 57% from prior year, a vivid reflection of the enhanced recognition for our improved serving capabilities. Before we move on to an update on credit, I want to mention that we have officially closed our online brokerage arm, China Glory, in the fourth quarter last year to be compliant with new regulations. Going forward, we will focus our efforts on our core wealth business lines and in creating a powerful flywheel effect that will help our loyal and growing member base with additional financial management solutions that match their needs for investment, savings, and insurance protections while also increasing their lifetime value to us. Looking into the year of 2023, we expect to realize increasing synergies between each business line as He Xiang Insurance Forkridge continues to customize products and services that match the needs of our customers within the Yiren digital ecosystem. Our customer base is also expected to continue to expand with higher acquisition efficiencies as our consumption-driven businesses start to ramp up in scale. and drive up overall customer engagement. Now, I will pass it to Mei, who will go through the highlights of our credit tax business for the third quarter.