Yiren Digital Ltd.

Good day and welcome to the IRIN Digital Third Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Kaya Ha. Please go ahead.

Good morning and good evening, everyone. Today's call features a presentation by our founder, chairman, and CEO of Credit East, our CEO, Mr. Ning Chao, and our CFO, Mr. William Huo. It will be in a Q&A session after the prepared remarks. Before beginning, we'd like to remind you that discussions during this call contain forward-looking statements made under the State Harbor Provision of U.S. Public Security Mitigation Reform Act of 1995. That statement accepts the risk Uncertainties and factors that can cause actual results differ, particularly if some of those contain any fact statements. For the information regarding such risks, uncertainty or factors is inclusive in our findings for the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under the relevant law. During the call, we will be referring to certain non-debt 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 financial measures and reconciliation to GAAP measures, please refer to our earnings criteria. I will now pass it to Ming for opening remarks.

Thank you all for joining us today. This past quarter presented a more challenging operating environment than we've seen in recent periods, driven primarily by heightened regulatory uncertainty and a more cautious credit backdrop. While these factors weighed on parts of our business, we moved quickly to adjust our risk posture and protect asset quality. I'm pleased to share that these actions have been effective. And at the same time, our internet insurance segment continues to deliver solid growth, reinforcing the resilience and diversification of our platform. As we look ahead, we remain focused on discipline execution and positioning the company for the next generation FinTech with AI and blockchain As part of our ongoing transformation, we continue to advance our agentic AI capabilities to enhance process efficiency and strengthen unit economics. These innovations are helping us offset the margin pressure associated with rising credit risk. Our agentic platform, Magic Cube, is already demonstrating meaningful impact. improving sales conversion, elevating risk controls, and driving greater overall productivity. With that, let me walk you through the key business highlights for the quarter. First, turning to our financial services segment, we facilitated on the $20.2 billion in loan origination during this quarter, up 51% year over year. our repeat borrowing rate remained at a record high of 77%, in line with last quarter and 16 percentage points higher than a year ago, while the number of our total borrowers decreased by 11% to 1.3 million compared to the same period last year due to the tightening of credit policies. Our total cumulative borrower base increased by 21% year-on-year to 14 million. We also continued to see healthy structural improvements across our borrower base. Average size for new loan from our lending platform rose from RMB 7,000 to RMB 10,100. driven by our ongoing shift toward higher credit quality customer segments and a better credit predictability from repeat borrowers. We expect this favorable mixed trend to continue as we continue to trade up for better quality borrowers. Our agentic AI has delivered remarkable productivity boost in our operations. For marketing, our AI-driven marketing agent continues to deliver strong results. It enhanced the customer's profiling accuracy and expanded the pool of identified high-intent users by 38% quarter over quarter. In addition, our proprietary AI agent now generates tailored responses across a wide range of customer inquiries. effectively reactivating dormant users and driving a 15% increase in their ATP engagement. For customer service, our LLM-powered service robot continued to strengthen its performance with response accuracy rising from roughly 80% to over 92%. Meanwhile, The rate of inquiries requiring escalation to human agents declined by nearly 15% quarter over quarter. For quality control and risk management, we continue to optimize our multi-model models. Fraud detection coverage increased from a weekly manual sampling of 450 cases to 5,800 by agentic AI, while accuracy improved to 91%. Now, let's turn to capital allocation. As of September 30th, 2025, our total outstanding loan balance is RMB 34.2 billion, representing 10% quarter-to-quarter growth. Our funding cost rose by 55 basis points during the quarter, in line with the sector trend. We are now included in the wide list of nearly 30 compliant funding partners under the new regulatory framework, positioning us as one of the leading players in the market. On asset quality and credit risk, we continue to see industry-wide pressure discordant. Although we proactively tighten our credit policies, our risk indicators edged up in Q3. As of September 30th, our one to 30 day delinquency rate stood at 2.7%. Well, the 31 to 60 day and the 61 to 90 day delinquency rates were 1.7% and 1.4% respectively. The good news is that we see the risk indicators for the loan portfolio from new borrowers begin to trend down in November. which is a proof of effectiveness of our upgraded credit strategy. However, from a conservative point of view, we expect the industry-wide impact on the overall asset quality to continue in the fourth quarter, and that the recovery is likely to begin early next year as the market stabilizes. Our AI-driven collection capabilities played an important role in mitigating early stage difficulties. This automation drove productivity growth, reducing labor costs by an average of RMB 5 million per month, up from RMB 2.7 million in the second quarter, while improving service quality. Turning to our overseas business, Our Indonesian operations launched on schedule in September 2025, and we expect this segment to contribute significant growth in 2026. Now, turning to our insurance brokerage business. After navigating significant regulatory headwinds and the commission pressure in 2024, we entered 2025 with a transformed operating model. Our insurance business has shifted from a high-touch, high-cost brokerage approach to a digital, low customer acquisition cost, high-margin model by tapping into new insurance demand within our existing customer acquisition channels in the platform. This has allowed us to focus on a healthier, more profitable customer base that is contributing meaningfully to segment margins. In the third quarter of 2025, gross return premium reached RMB 1.15 billion, an increase of 35% quarter over quarter. Revenue from the segment was RMB 84.2 million, up 45% from the prior quarter. Our internet insurance business continued its rapid expansion. delivering RMB 196 million in annualized premium, representing 204% quarter-over-quarter growth. Total customer number rose 93% quarter-over-quarter to 229,363, driven by more precise marketing and still low penetration within the target segment. We expect the internet insurance business to sustain strong momentum over the coming quarters. Finally, while we continue to strengthen and scale our core business, we are also investing strategically into the future, building on our technology capabilities and our position within the broader FinTech ecosystem We are exploring new ways to better serve customers and manage assets through AI and the blockchain enabled solutions. We see AI and blockchain as core strategic pillars for the future of our business, especially as we expand our footprint globally. We are investing in the systems and the capabilities needed to build our next generation FinTech infrastructure while deepening partnerships with key industry players. In October, we signed an MOU with Chainark, a leading crypto solutions provider in Singapore. And we also announced our plan to launch an Ethereum staking service, which is currently undergoing testing. This initiative marks an important milestone in our journey toward delivering seamless 24 by 7 global financial services. Over the next few quarters, we look forward to introducing additional products designed to enhance financing efficiency and asset monetization for our customers. To conclude on the quarter, While the third quarter brought its share of challenges, the progress we've made demonstrates that our diversification and the forward-looking strategy are working. We've built a stronger, more resilient foundation that positions us well for sustainable growth and value creation in the quarters ahead. I'm confident that by staying disciplined and continuing to execute on our priorities, will emerge even stronger. With that, I'll now pass it over to William, who will provide more details on the financials for the quarter.