Yiren Digital Ltd.

Thank you for standing by and welcome to the year-end digital fourth quarter and fiscal year 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. At this time, I'd like to turn the conference call over to Keao, Investor Relations Officer. Please go ahead.

Thank you, Rebecca. Good morning and good evening, everyone. Today's call features the presentation by the founder, chairman, and CEO of Credit East, our CEO, Ms. Ming Tang, and our CFO, Ms. Na Mei, our FTP, Ms. Mei Zhao. Meanwhile, our FTP, Ms. Xiao Shang, and our head of consumer finance business, Edward Wong, will join the presenters in the Q&A session. Before beginning, we would like to remind you The discussions during this call contain forward-looking statements made under the Safe Harbor Provision for U.S. Private Securities Litigation Reform Act of 1995. Such statements accepted risks, uncertainties, and factors that encode actual results to differ materially from those contained in any such statement. Further information regarding particular risks, uncertainties, or factors is included in our filings with U.S. Exchange and with the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under this 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 about those non-GAAP measures and reconciliations to GAAP measures, please refer to our earnings press release. I will now pass it to me for opening remarks.

Thank you all for joining our conference call today. We are pleased to deliver an impressive quarter with robust growth in both revenue and profitability, making the full success of our business restructuring and product optimization. despite the volatility of external environment amid the COVID resurgence. Now, as the macroeconomy starts to recover post-COVID and the industry is heading to a more positive direction, we are looking to an accelerated growth of our business. First, an update on our holistic wealth business. As we previously projected, our insurance brokerage business continued in strong momentum in the fourth quarter, 2022. Total premium reached more than RMB 1.3 billion, representing 34% increase quarter over quarter and over 50% growth year on year. For the full year of 2022, Our total premium increased by 61% to approximately RMB 4 billion, significantly outperforming the industry average of 4.6% annual growth rate. What's behind this rapid growth is our strategy in product innovation and customization, as well as operational upgrades. on product innovation. He Xiang has been strengthening cooperation with corporate partners and insurers, and making great efforts to better serve individual and institutional clients through a growing number of diversified products. For example, in order to meet our clients' needs for better financial protection as well as higher investment returns, We started to work with the only mutualized insurance company in China and launched the three tailor-made products for our high network clients months ago, which are rarely seen in the Chinese market with limited penetration. The products have been proven an immediate success right after our launch. In the fourth quarter alone, those three products contributed more than RMB 200 million premium, and the number is still growing. Also, as for our customized exclusive whole life insurance product, Yi Mai Xiang Chuan, that we mentioned last quarter, the premium saw a quarterly increase of 68% to close to RMB 100 million, reflecting its high popularity among our clients. Another example from our property insurance products. As China's outbound investment and construction businesses expand at a fast pace, the demand for relevant insurance protection is on the rise. Leveraging our advantages in product development and rich resources within our business ecosystem, Hejiang started to offer overseas construction insurance services. in the third quarter last year, which had brought in approximately RMB 40 million premium with large ticket size policies as of the end of last year and is expected to post continued solid growth in the year of 2023. As of December 31st, 2022, He Xiang Insurance Brokers had established approximately 40 offline branches nationwide and offered over 840 insurance products from more than 100 insurers. Some of our well-known partners include Taichung Life Insurance, AIA, Aviva, Costco, Life Insurance, et cetera, just to name a few. Moreover, on operational upgrades, we have been improving our service quality and building up our elite agent team since last year. Currently, 10% of our agents in Hejiang are members of MDRT, an independent association of the world's leading life insurance and financial services professionals. And the proportion is much higher than the industry average of 0.2% in China. In October and November last year, the financial regulators issued new rules on life insurance industry, including the regulated cap on commission fee rate and investment returns. The actual impact on our business is manageable, and we have already optimized our product offerings and selections. in response to the regulatory directions to ensure 100% compliance. So due to the product mix adjustment, our revenue generated from insurance business in the fourth quarter showed a slower growth compared to the quick run-up of our premiums. We believe that the new regulation benefits us in the market competition, given He Xiang's rich and diversified product lines that cover both life and property insurance and both 2B and 2C businesses. Now, moving on to our super app wealth platform, Yiren Select. In order to better serve our mass affluent clients in a comprehensive manner, Yiren Select has put more effort to provide customized products and services in the areas of healthcare and beauty, education and study, lifestyle and luxury, which enhance our client engagement and help drive up our new client acquisition efficiencies. In the year 2022, the number of our clients who made a transaction on event select or through our institutional partners saw an increase of 88% year on year. Looking into our holistic wealth business, total client assets reached more than RMB 23 billion as of December 31st, 2022, representing an increase of 21% compared to the end of 2021. Going forward, we expect to continue our high-quality growth with competitive profitability as we continue to optimize our products and operations, focusing more efforts on our core business with higher values and seizing new market opportunities. Meanwhile, as the synergies within Eden Digital's different business lines keep growing, operational efficiencies are expected to further improve. With the macro economy recovering and the domestic consumption rebounding, we expect a healthier business expansion in the year 2023. Now, I will pass it to Mayne, who will go through the highlights of our credit tech business for the fourth quarter.