LexinFintech Holdings Ltd. (LX) 2026 Q2 法說會逐字稿

Good day, and thank you for standing by, and welcome to Lexin's second quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位好，感謝您的等候，歡迎參加樂信 2026 年第二季度業績電話會議。(接線員指示) 請注意，今天的會議將被錄音。

I would now like to hand the conference over to your first speaker today, Head of Capital Markets, Mr. Will Tan. Thank you. Please go ahead.

現在我想把會議交給今天的第一位發言人——資本市場負責人 Will Tan 先生。謝謝。請開始。

Thank you, operator. Hello, everyone. Welcome to our second quarter 2026 earnings conference call. Our results were released earlier today and are currently available on our IR website. Today, you will hear from our Chairman and CEO, Mr. Jay Wenjie Xiao, who will provide an update on overall performance and the strategies of our business. Our CRO, Mr. Arvin Zhanwen Qiao, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Zheng, will discuss our financial performance.

謝謝，接線員。各位好。歡迎參加我們 2026 年第二季度業績電話會議。我們的業績已於今日稍早發布，並已在我們的投資者關係網站上提供。今天，您將聽取我們董事長兼執行長肖文杰先生就整體表現及業務策略的更新。隨後，我們的首席風險官喬展文先生將就風險管理舉措及最新進展提供更多細節。最後，我們的首席財務官鄭詹姆斯先生將討論我們的財務表現。

Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release, which will also apply to this call as we will be making forward-looking statements. Last, please note that all figures are presented in RMB terms and all comparisons are made on a quarter-over-quarter basis, unless otherwise stated. Please kindly note Jay and Arvin will give their whole remarks in Chinese first, then the English version will be delivered by Jay's and Arvin's AI-based voices.

在繼續之前，我想請各位參閱我們業績新聞稿中的「安全港」聲明；由於我們將發表前瞻性陳述，該聲明同樣適用於本次電話會議。最後，請注意，除非另有說明，所有數據均以人民幣呈列，且所有比較均以環比為基準。也請注意，Jay 與 Arvin 將先以中文完整發言，之後英文版本將由 Jay 與 Arvin 的 AI 語音播報。

With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and CEO of Lexin.

接下來，我很高興把電話會議交給樂信董事長兼執行長肖文杰先生。

(interpreted) Hi, everyone. Let me start by sharing our business performance for the second quarter of 2026. Since the second quarter, the industry operating environment has faced ongoing headwinds, most notably in late June, risk events involving certain peers triggered a widespread tightening and even suspension of funding supply across the industry, severely impacting the industry landscape and shaking market confidence. As a result, our loan facilitation operations across both online consumer finance and offline inclusive finance were materially affected. We swiftly took the following decisive measures to mitigate the impacts on us.

(口譯) 各位好。我先分享我們 2026 年第二季度的業務表現。自第二季度以來，行業經營環境持續面臨逆風，尤其在 6 月下旬，部分同業的風險事件引發全行業資金供給普遍收緊甚至暫停，嚴重衝擊行業格局並動搖市場信心。因此，我們在線消費金融與線下普惠金融兩條線的貸款撮合業務均受到實質影響。我們迅速採取以下果斷措施，以降低對我們的影響。

First, driving cost efficiency to enhance resilience through market cycles. We rapidly streamlined our organizational structure, optimized headcount and accelerated AI adoption. These measures effectively reduced operating expenses and enhanced our long-term sustainability through industry cycles.

第一，推動降本增效，提升穿越週期的韌性。我們快速精簡組織架構、優化人員配置並加速 AI 應用落地。這些措施有效降低了營運費用，並提升了我們在行業週期中的長期可持續性。

Second, tightening risk controls to maintain stable asset quality. We proactively scaled back overall loan volume and adopted a prudent approach to new loan origination. This ensures the risk profile of new loans remains well controlled, safeguarding the long-term stability and resilience of our business.

第二，收緊風控，保持資產品質穩定。我們主動下調整體放款規模，並對新增放款採取審慎策略。這確保新增貸款的風險輪廓保持在可控範圍內，保障我們業務的長期穩定與韌性。

Third, strengthening financial discipline to enhance operational efficiency. We prioritize the recovery of receivables and security deposits and drove a measured and steady scale down of facilitated loan balance, safeguarding our funding security and operational stability.

第三，加強財務紀律，提升營運效率。我們優先推進應收款與保證金回收，並推動撮合貸款餘額有節奏、穩步下降，以保障資金安全與營運穩定。

Fourth, advancing our diversification strategy and accelerating business transformation. In our non-loan facilitation operations, we leveraged years of ecosystem advantages to accelerate our transition from a guarantee backed model to a tech-empowered model, laying a solid foundation for business recovery.

第四，推進多元化策略，加速業務轉型。在非貸款撮合業務方面，我們依託多年生態優勢，加速從「擔保增信」模式向「科技賦能」模式轉型，為業務復甦奠定堅實基礎。

We have always placed compliance at the forefront of our operations. Despite current industry headwinds, we continue to demonstrate strong operational resilience, maintain organic cash generation capability and ensure long-term operational safety and reliability. Now, let me walk you through our second quarter business performance.

我們始終將合規置於經營的首位。儘管當前行業逆風仍在，我們仍持續展現出較強的經營韌性，保持內生現金創造能力，並確保長期經營的安全性與可靠性。接下來，我向各位介紹我們第二季度的業務表現。

In the second quarter, we achieved a loan volume of RMB55.43 billion, generated revenue of RMB3.19 billion and net profit of RMB101 million. On the risk front, while day one delinquency ratio picked up due to broader industry headwinds, our 30-day collection rate showed an improvement. Despite current industry volatility, we remain confident in our long-term prospects. Let me explain why.

第二季度，我們實現放款規模人民幣 554.3 億元，營收人民幣 31.9 億元，淨利潤人民幣 1.01 億元。風險方面，雖然受行業逆風影響，首日逾期率有所上升，但我們的 30 天回收率有所改善。儘管當前行業波動較大，我們對長期前景仍保持信心。我來解釋原因。

First, our deep integration with consumption scenarios gives our e-commerce business unique advantages. Supported by favorable policies and growing consumer demand, we expect our e-commerce business to enjoy healthy growth going forward. We will continue to refine our supply chain system around essential consumer needs and enhance overall operational efficiency.

第一，我們與消費場景的深度融合，使電商業務具備獨特優勢。在利好政策與消費需求增長的支持下，我們預期電商業務未來將保持健康增長。我們將持續圍繞民生剛需完善供應鏈體系，並提升整體營運效率。

Second, our FinTech empowerment business serving corporate clients maintains rapid growth, continuously satisfying licensed institutions demands for high-quality assets. Backed by years of expertise in digital technology, we have established a clear market-leading position. In the second quarter, our FinTech empowerment business delivered solid growth and achieved profitability. As this business well aligns with future regulatory directions and has long-term commercial value, we will continue to increase our investments in this area.

第二，我們面向企業客戶的金融科技賦能業務保持快速增長，持續滿足持牌機構對高品質資產的需求。依託多年數位技術積累，我們已建立清晰的市場領先地位。第二季度，我們的金融科技賦能業務實現穩健增長並達成盈利。由於該業務與未來監管方向高度契合且具備長期商業價值，我們將持續加大在該領域的投入。

Third, AI adoption across our operations has delivered tangible cost savings. AI has been effectively deployed across the entire business processes. Over 100 AI agent roles are currently deployed across key operational scenarios, such as intelligent strategy generation, compliance check, post-loan management and smart customer services, all contributing to our cost reduction targets.

第三，AI 在我們各項營運中的應用帶來了可量化的降本成效。AI 已在全業務流程中得到有效部署。目前已在智能策略生成、合規檢查、貸後管理與智能客服等關鍵營運場景部署超過 100 個 AI 代理角色，均有助於我們達成降本目標。

In the second quarter, our operating expenses decreased by 17.6% quarter-over-quarter. As AI adoption continues to gain traction, we expect further cost reductions in the third quarter. Looking ahead, the impact of the stand-alone event may persist and industry uncertainties remain significant.

第二季度，我們的營運費用環比下降 17.6%。隨著 AI 應用持續深化，我們預期第三季度將進一步降本。展望未來，單一事件的影響可能仍將持續，行業不確定性依然顯著。

We will continue to adopt a prudent operational approach by adopting the following initiatives: First, we will continue to strengthen our operational management, improve our financial position and advance the development of non-loan facilitation business like e-commerce to navigate this industry headwind with confidence. Second, we are adjusting our dividend policy to an annual distribution to provide sufficient capital reserves and a financial buffer for our business transformation. Third, we will accelerate AI investment, particularly in the tech-empowered service space, and work with our partners to expedite the recovery of funding supply. When industry certainty gradually emerges, we will actively explore various shareholder return initiatives in light of our own circumstances, enabling our investors to better share in the value created by the company.

我們將繼續採取審慎的經營策略，落實以下舉措：第一，我們將持續強化營運管理、改善財務狀況，並推進電商等非貸款撮合業務發展，以更有信心地應對行業逆風。第二，我們將調整股利政策為年度派發，以提供充足的資本儲備與財務緩衝，支持業務轉型。第三，我們將加速 AI 投入，特別是在科技賦能服務領域，並與合作夥伴共同推動資金供給加快恢復。當行業確定性逐步顯現時，我們將結合自身情況積極探索多種股東回報方案，讓投資者更好地分享公司創造的價值。

With that, I will now turn the call over to our CRO, Arvin. Thank you.

接下來，我把電話會議交給我們的首席風險官 Arvin。謝謝。

(interpreted) In the second quarter, under the ongoing impact of the new regulations, funding supply across the industry remain tight, leading to a rebound in asset risk within our existing portfolio. Day one delinquency ratio across our total assets rose by roughly 9.5% quarter-over-quarter while 90-day plus delinquency ratio rose from 3.5% to 3.6%.

(口譯) 第二季度，在新規持續影響下，行業資金供給仍然偏緊，導致我們存量資產組合的風險有所回升。我們全量資產的首日逾期率環比上升約 9.5%，90 天以上逾期率則由 3.5% 上升至 3.6%。

In the third quarter, as funding supply tightens further and new loan originations dropped sharply, we expect risk indicators on our outstanding loan portfolio to continue trending upwards on a sequential basis. Compounded by a shrinking loan balance, the 90-day plus delinquency ratio is expected to rise further.

第三季度，隨著資金供給進一步收緊且新增放款大幅下降，我們預期存量貸款組合的風險指標將在環比口徑下持續上行。在貸款餘額收縮的疊加影響下，90 天以上逾期率預計將進一步上升。

Regarding the risk management of our existing portfolio, we continue to strengthen early-stage collections and implement differentiated SMS repayment reminders, among other measures to control the magnitude of risk elevation. Meanwhile, we are stepping up provisioning and ensuring an orderly runoff of these existing assets.

關於我們現有資產組合的風險管理，我們持續強化早期催收，並實施差異化的簡訊還款提醒等措施，以控制風險上升幅度。同時，我們正在加大提列準備，並確保這些存量資產有序出清。

On the new loan front, we proactively raised our underwriting standards in response to the evolving risk landscape during the second quarter, limiting the quarter-over-quarter uptick in FPD 30 to a minor level of around 4.6%. For the third quarter, we will maintain tight entry criteria, strength and risk assessment for borrowers with cross-platform debt and filter out high-risk applicants to maintain a stable risk profile for our new loan.

在新增貸款方面，面對第二季風險環境的演變，我們主動提高承保標準，將FPD 30的季比上升幅度限制在約4.6%的輕微水準。第三季，我們將維持嚴格的准入標準，強化對具有跨平台負債借款人的風險評估，並篩除高風險申請人，以維持新增貸款穩定的風險輪廓。

On the technology front, our continued investment and exploration in AI-driven risk control are yielding meaningful results. In credit approval, our credit assessment agent has evolved from merely assisting human reviewers to making autonomous decisions. Notably, its risk detection capability is 3x that of manual review for autonomous rejection and 1.2x for review recommendations and it continues to iterate rapidly.

在科技方面，我們持續投入並探索AI驅動的風控，已取得具實質意義的成果。在授信審批上，我們的信用評估代理已從僅協助人工審核，進化為可自主決策。值得一提的是，其風險偵測能力在自主拒絕方面為人工審核的3倍，在審核建議方面為1.2倍，且仍在快速迭代。

Beyond that, we are building an internal risk control agent expert platform by integrating underlying big data, domain expertise across risk management roles and localized LLM capabilities into a seamless closed loop, we are enabling AI-driven expertise and standardization across the majority of our risk management test. This initiative has not only boosted the outward efficiency of general risk models and routine strategies by over 5x, but also positioned us well for future tech empowerment and risk solution offerings to the industry.

此外，我們正透過整合底層大數據、風險管理各職能的領域專業，以及在地化LLM能力，打造內部風控代理專家平台並形成無縫閉環，使AI驅動的專業能力與標準化覆蓋我們大多數的風險管理測試。此項舉措不僅將通用風險模型與例行策略的對外效率提升逾5倍，也使我們在未來以科技賦能並向行業提供風險解決方案方面具備良好布局。

Looking ahead, while risk may experience short-term fluctuations due to industry headwinds, we are confident that with stringent risk control in place, we can ensure an orderly runoff of existing assets and steady asset quality for new loans, laying a solid foundation for sustainable operations.

展望未來，儘管受行業逆風影響，風險可能出現短期波動，但我們有信心在嚴格風控到位的情況下，確保存量資產有序出清，並維持新增貸款資產品質穩健，為可持續經營奠定堅實基礎。

Next, I will hand over to our CFO, James, to provide a review of the company's financial performance for the second quarter.

接下來，我將交由我們的財務長James，回顧公司第二季的財務表現。

Thanks, Arvin. I will now provide a detailed overview of our second quarter financial results. Please note that all figures are presented in RMB terms and all comparisons are made on quarter-over-quarter basis, unless otherwise stated.

謝謝你，Arvin。我現在將對我們第二季的財務結果作詳細概述。請注意，除非另有說明，所有數據均以人民幣呈列，且所有比較均為季比。

During the second quarter, we continued to advance our business transformation and the new regulatory framework that took effect in the fourth quarter last year, achieving progress that largely met our expectations. However, the landscape has shifted notably just before the second quarter ended. Before I dive into our second quarter financial details, I would like to briefly address recent developments that have created some uncertainty for the industry.

第二季期間，我們持續推進業務轉型，以及去年第四季生效的新監管框架，取得的進展大致符合我們的預期。然而，在第二季結束前夕，外部環境出現了明顯變化。在我深入介紹第二季財務細節之前，我想先簡要說明近期發展，這些變化為行業帶來了一些不確定性。

Recently, risk events evolving certain industry players have triggered heightened regulatory scrutiny. This raised caution among funding partners, leading to an ongoing wide tightening of funding supply. This has impacted low volumes across the industry, including Lexin. That being said, I would like to emphasize two key points to our investors.

近期，部分行業參與者的風險事件演變，引發監管關注升溫。這使資金合作夥伴趨於謹慎，導致資金供給持續且廣泛收緊。這已影響到全行業的低放量，包括樂信。儘管如此，我仍想向投資人強調兩點關鍵事項。

First, compliance has always been our operational bottom line. We have never engaged in any similar non-compliant practices and our business operations stand up to strict scrutiny. Second, we currently have a cash position of RMB2.5 billion, which provides a financial buffer to help us navigate industry volatility and ensure the steady operations of our business. I will talk more about the impact of these recent developments and our countermeasures later in my remarks. With this context, let's now review our second quarter financial performance.

第一，合規一直是我們經營的底線。我們從未從事任何類似的不合規行為，我們的業務運作經得起嚴格審視。第二，我們目前持有人民幣25億元現金，這為我們應對行業波動並確保業務穩健運行提供了財務緩衝。我將在後續發言中進一步談及這些近期發展的影響以及我們的應對措施。在此背景下，讓我們回顧第二季的財務表現。

During the second quarter, total loan origination volume was RMB55 billion, representing a 4.3% decrease sequentially due to the continuous decline in our consumer finance business and partially offset by the steady growth of our FinTech empowerment business and e-commerce business. Total revenue came in at RMB3.2 billion, and net income stood at RMB101 million. Now let me dive into the details and walk you through the key numbers.

第二季，總放款規模為人民幣550億元，因消費金融業務持續下滑而季比下降4.3%，但部分被金融科技賦能業務與電商業務的穩健成長所抵消。總營收為人民幣32億元，淨利為人民幣1.01億元。接下來我將深入細節，帶各位了解關鍵數據。

First, the net revenue of the credit business, which is derived by adding up credit facilitation service income and tech empowerment service income, net of credit costs, which consists of provisions fair value changes and funding costs was RMB981 million, representing a 32.5% or RMB473 million decrease quarter-over-quarter. This was due to the decline of both credit facilitation service income and tech empowerment service income. Specifically, credit facilitation service income representing our capital heavy business decreased by 43.6% to RMB508 million, primarily driven by lower loan volumes in our online consumer finance business with rising funding costs and our prudent decision to maintain adequate provisioning.

第一，信貸業務淨收入（由信貸撮合服務收入與科技賦能服務收入相加，扣除信貸成本；信貸成本包括準備金、按公允價值變動及資金成本）為人民幣9.81億元，季比下降32.5%，即人民幣4.73億元。這主要由於信貸撮合服務收入與科技賦能服務收入均出現下滑。具體而言，代表我們重資本業務的信貸撮合服務收入下降43.6%至人民幣5.08億元，主要受線上消費金融業務放量下降、資金成本上升，以及我們審慎決策以維持充足提列準備所致。

Meanwhile, our tech empowerment service income, representing our capital light business decreased by 14.4% to RMB473 million. This was mainly attributable to the revenue decrease from value-added services and the scale down of legacy ICP portfolio.

同時，代表我們輕資本業務的科技賦能服務收入下降14.4%至人民幣4.73億元。這主要歸因於增值服務收入下降，以及存量ICP資產組合規模縮減。

Second, net revenue of the installment e-commerce business, defined as the installment e-commerce revenue net of cost of inventory sold, increased by RMB122 million to RMB329 million. So the total net revenue, summing the credit business and the installment e-commerce business added up to RMB1.3 billion, a 21.1% or RMB351 million decrease quarter-over-quarter.

第二，分期電商業務淨收入（定義為分期電商收入扣除存貨銷售成本）增加人民幣1.22億元至人民幣3.29億元。因此，信貸業務與分期電商業務合計的總淨收入為人民幣13億元，季比下降21.1%，即人民幣3.51億元。

On the expense side, operating expenses, including sales and marketing, research and development, general and administrative expenses and processing and servicing costs decreased by 17.6% or RMB244 million to RMB1.2 billion. Tax and others decreased by 9.3% or RMB6 million to RMB62 million.

在費用端，營業費用（包括銷售及行銷、研發、一般及行政費用，以及處理與服務成本）下降17.6%，即人民幣2.44億元，至人民幣12億元。稅費及其他下降9.3%，即人民幣600萬元，至人民幣6,200萬元。

Consequently, total expenses added up to RMB1.2 billion, a decrease of 17.2% or RMB251 million. By deducting the total expenses of RMB1.2 billion from the total net revenue of RMB1.3 billion, we arrived at a net income of RMB101 million, a decrease of 49.7% or about RMB100 million quarter-over-quarter.

因此，總費用合計為人民幣12億元，下降17.2%，即人民幣2.51億元。以總淨收入人民幣13億元扣除總費用人民幣12億元後，我們實現淨利人民幣1.01億元，季比下降49.7%，約人民幣1億元。

To sum up, the decrease in this quarter's net income was largely attributable to three combined factors: A revenue decrease resulting from the ongoing scale down of our loan facilitation business due to regulatory impact; an increase in provisioning driven by our prudent risk approach; and despite our cost optimization efforts, expense reduction led to top line contraction, temporarily squeezing our near-term profitability. Now I would like to walk you through the three key highlights from this quarter.

總結而言，本季淨利下滑主要由三項因素共同造成：受監管影響，我們持續縮減貸款撮合業務規模導致收入下降；基於審慎風險策略而增加提列準備；以及儘管我們持續進行成本優化，費用下降也伴隨營收端收縮，短期內擠壓了我們的近端獲利能力。接下來我想帶各位回顧本季三項重點亮點。

First, the growing diversification of our business mix. While our overall loan origination volume experienced a minor decline of 4.3% in the second quarter, our FinTech empowerment service successfully bucked the trend with continued growth of 8%. As a result, the loan volume contribution from our FinTech empowerment and the e-commerce business has now reached 45%.

第一，我們的業務組合日益多元化。雖然第二季整體放款規模小幅下降4.3%，但我們的金融科技賦能服務逆勢成長，持續增長8%。因此，來自金融科技賦能與電商業務的放款量貢獻目前已達45%。

As we discussed last quarter, the steady expansion of our FinTech empowerment business continues to lay the groundwork for a highly visible long-term revenue pipeline and higher asset quality. Complementing this pivotal shift, our installment e-commerce business maintained a steady momentum continuing to serve as reliable stabilizer for our broader portfolio.

正如我們上季所討論，金融科技賦能業務的穩步擴張，持續為高度可見的長期收入管線與更高的資產品質奠定基礎。與此關鍵轉型相輔相成的是，我們的分期電商業務保持穩健動能，持續作為我們更廣泛資產組合的可靠穩定器。

Second, the solid growth and expanding profitability of our installment e-commerce business. Consistent with our strategy from the previous quarter, we maintained a disciplined approach prioritizing asset quality and risk control over share volume expansion amidst the current macro environment. As a result, our e-commerce loan volume maintained stable at RMB2.3 billion, more importantly, our ongoing focus on operational refinement yielded solid profitability improvement.

第二，我們的分期電商業務保持穩健增長並持續擴大利潤率。延續上一季度的策略，在當前宏觀環境下，我們保持審慎經營方針，優先保障資產品質與風險控制，而非追求規模份額擴張。因此，我們的電商貸款規模維持穩定在人民幣23億元；更重要的是，我們持續聚焦營運精細化，帶來了顯著的盈利能力提升。

Gross profit for this segment reached RMB329 million, representing a 58.7% increase, while gross margin -- gross profit margin expanded from 9.4% last quarter to 14.1%. By seamlessly integrating consumption scenario into our broader ecosystem, this segment continues to serve as a valuable revenue driver, adding another layer of resilience to our diversified revenue streams.

該分部毛利達人民幣3.29億元，同比增長58.7%，同時毛利率——毛利率由上季度的9.4%提升至14.1%。透過將消費場景無縫融入我們更廣泛的生態體系，該分部持續成為重要的收入驅動力，為我們多元化收入來源增添了另一層韌性。

Third, our prudent provisioning strategy, the industry dynamics unfolding in late June, including a tightened funding supply and as anticipated, upward tick in sector-wide risk resulting from peer level risk events, which I noted earlier, have introduced a new market complexity. Incorporating these cautious forward-looking industry expectations into our risk-assessed models, we adopted a more conservative provisioning approach for our second point portfolio. As a result of the strict and prudent stance, our overall credit cost increased 9.6% sequentially to RMB1.4 billion during the quarter.

第三，我們審慎的撥備策略。6月下旬出現的行業動態，包括資金供給收緊，以及如預期般因同業風險事件（我先前提到的）導致全行業風險上行，為市場帶來了新的複雜性。我們將這些更為謹慎的前瞻性行業預期納入風險評估模型後，對我們的第二點（second point）資產組合採取了更保守的撥備方法。在嚴格且審慎的立場下，本季度我們的整體信用成本環比上升9.6%至人民幣14億元。

To better understand of our provisioning, let's look at our growth provision metrics. By stripping out the net accounting impact of fair value changes, our gross provision ratio for new capital-heavy loans was at 7.8% higher than the last quarter. Furthermore, our provision coverage ratio remained robust at 230%. Now let's move on to our operating expense items.

為了更好地理解我們的撥備情況，我們來看一下撥備相關指標。剔除公允價值變動的淨會計影響後，我們新增的資本密集型貸款的總撥備率為7.8%，高於上季度。此外，我們的撥備覆蓋率仍保持在230%的穩健水平。接下來我們看營運費用項目。

On the cost and expense side, our total operating expenses decreased by 17.6%, or RMB244 million to RMB1.1 billion, mainly due to the decrease of the sales and marketing expenses of RMB165 million, and partially offset by a onetime decrease in G&A expenses driven by costs associated with our organizational optimization.

在成本與費用方面，我們的營運費用總額下降17.6%，即減少人民幣2.44億元至人民幣11億元，主要由於銷售及市場費用減少人民幣1.65億元；同時，因組織優化相關成本帶來的一次性影響，使一般及行政費用出現一次性下降，部分抵消了上述降幅。

For balance sheet items, as of June 30, our cash position would include cash, cash equivalents and restricted cash was approximately RMB2.5 billion. Shareholders' equity remained solid at about RMB12 billion. Now turning to our business outlook.

在資產負債表項目方面，截至6月30日，我們的現金狀況（包括現金、現金等價物及受限制現金）約為人民幣25億元。股東權益保持穩健，約為人民幣120億元。下面轉到我們的業務展望。

As I mentioned earlier, the risk events involving certain players have created acceptive wide impacts and losing has not been immune to these headwinds. Specifically, we are facing two main challenges: First, a contraction in new loan volume; and second, the liquidity squeeze resulting from funding supply has constrained some borrowers' cash flows, and could potentially impair their repayment capacity leading to increased risk volatility in the coming quarters.

如我先前提到的，涉及部分市場參與者的風險事件已造成相當廣泛的影響，我們也未能完全免受這些逆風影響。具體而言，我們面臨兩項主要挑戰：第一，新發放貸款規模收縮；第二，由於資金供給收緊引發的流動性擠壓限制了部分借款人的現金流，並可能削弱其償付能力，從而在未來幾個季度帶來更高的風險波動。

Against this backdrop, we are taking proactive and decisive measures to navigate this environment. First, we are maintaining dialogue with our funding partners to reinforce mutual trust. This ensures that we are well positioned to resume normal funding supply as soon as the market conditions permit.

在此背景下，我們正採取積極且果斷的措施以應對當前環境。第一，我們持續與資金合作夥伴保持溝通，以強化彼此信任。這將確保在市場條件允許時，我們能夠儘快恢復正常的資金供給。

Second, amidst the industry-wide funding squeeze, we are prioritizing cash flow management while optimization and operational efficiency, including staff reduction to safer our core business fundamentals.

第二，在全行業資金緊縮之際，我們將優先加強現金流管理，同時推進優化與提升營運效率，包括裁員，以保障我們核心業務基本面更為穩健。

Third, like Jay mentioned earlier, we are proactively exploring new business models, centering on technology empowerment services for B and consumers. These initiatives will safeguard our long-term sustainable growth and lay a solid foundation for our future business trajectory.

第三，正如Jay先前提到的，我們正主動探索新的商業模式，重點聚焦於面向B端與消費者的科技賦能服務。這些舉措將保障我們長期可持續增長，並為未來業務發展軌跡奠定堅實基礎。

Looking ahead, given the regulators heightened their scrutiny to resolve the risks associated with certain industry players, along with the potential introduction of new industry regulations, we have limited visibility on when funding partners will resume normal operations and the exact time line for our loan volumes to normalize remains uncertain. Compounded by the industry-wide liquidity squeeze, we expect our revenue to further decrease and the credit risks and costs to trend upward in the third quarter, for which we will make adequate provisions.

展望未來，鑑於監管機構加強審查以化解部分行業參與者相關風險，以及可能推出新的行業監管規則，我們對資金合作夥伴何時恢復正常運作的可見度有限，我們貸款規模恢復正常的具體時間表仍不確定。再加上全行業流動性擠壓，我們預期第三季度收入將進一步下降，信用風險與信用成本將呈上行趨勢，對此我們將計提充足撥備。

Additionally, we have initiated a series of organizational optimization to navigate industry uncertainties with the resulting onetime expenses primarily recognized in the third quarter. Consequently, we expect the company to record a net loss in the third quarter. As for the remainder of the year, due to the limited visibility at this time, we will provide further guidance as the year progresses.

此外，為應對行業不確定性，我們已啟動一系列組織優化，相關一次性費用將主要在第三季度確認。因此，我們預期公司第三季度將錄得淨虧損。至於今年剩餘時間，由於目前可見度有限，我們將隨著年度進展提供進一步指引。

In light of ongoing industry uncertainties, the Board has made a decision to adjust our dividend distribution policy from a semi-annual to annual payment. Therefore, any potential dividend declarations for 2026 will be assessed when we announce our fourth quarter results in early 2027. This proactive step allows us to optimize liquidity, fortify our core operations and maintain strategic flexibility needed to navigate near-term market volatility.

鑑於行業不確定性仍在持續，董事會已決定將股息分配政策由半年派息調整為年度派息。因此，任何關於2026年的潛在股息宣告，將在我們於2027年初公布第四季度業績時再行評估。此項前瞻性舉措有助於我們優化流動性、鞏固核心營運，並保持應對短期市場波動所需的策略彈性。

I would emphasize that delivering shareholder value remains our top priority, and we view this as a prudent adjustment that may be temporary as the market visibility improves, and the Board will actively reassess our capital allocation strategy and explore renewed initiatives to drive shareholder returns.

我想強調，為股東創造價值仍是我們的首要任務；我們認為這是一項審慎的調整，隨著市場可見度改善，該調整可能是暫時性的。董事會將積極重新評估我們的資本配置策略，並探索新的舉措以提升股東回報。

In conclusion, while navigating this industry-wide transition, we are taking decisive and proactive measures to safeguard our liquidity protect long-term shareholder value and pivot ourselves for sustainable growth once the market normalizes.

總結而言，在應對全行業轉型的過程中，我們正採取果斷且積極的措施，以保障流動性、保護長期股東價值，並在市場恢復正常後，推動公司轉向可持續增長。

(Operator Instructions) Judy Zhang, Citi.

(接線員指示) 花旗，Judy Zhang。

(spoken in foreign language) Let me translate. I've got two questions. The first question is, what's your take on the recent risk events in the industry? How has it affected the industry and your business? And what steps are you taking in response? And second question is, how do you expect the risk trend to evolve in the third quarter?

(外語發言) 我來翻譯。我有兩個問題。第一個問題是，您如何看待近期行業內的風險事件？它對行業以及你們的業務造成了哪些影響？你們正在採取哪些應對措施？第二個問題是，你們預期第三季度風險趨勢將如何演變？

(interpreted) The recent events doing certain peers have trigger crisis of confidence among funding providers, posting a broad-based tightening and even suspension of funding across the industry. That said, these are isolated cases, though they do involve potential criminal conduct, and we wouldn't be surprised to see more regulatory measures follow.

(口譯) 近期涉及部分同業的事件引發了資金提供方的信心危機，導致全行業資金普遍收緊，甚至出現暫停供資的情況。不過，這些屬於個別案例，儘管其中可能涉及刑事違法行為；我們也不會意外看到後續出台更多監管措施。

We expect funding supply in the loan facilitation sector to remain tight for a while, and the adjusting sales will likely last longer than initially expected. As for us, we've always operated strictly in compliance with regulation, and we don't have any of the issues at these institutions, but we're not immune to the broader industry trend.

我們預計貸款撮合行業的資金供給仍將在一段時間內保持緊張，相關調整階段可能會比最初預期更長。就我們而言，我們一直嚴格合規經營，並不存在這些機構所出現的問題，但我們也無法完全免受更廣泛的行業趨勢影響。

With funding from tightening, our loan facilitation business took a meaningful fit in hit in July. As a result, new loan originations have contracted notably and asset quality is facing further volatility in line with the broader market.

隨著資金進一步收緊，我們的貸款撮合業務在7月受到明顯衝擊。因此，新貸款發放顯著收縮，資產品質也將隨整體市場出現更大的波動。

That said, we are in a solid position. We have ample capital reserves and organic cash generation capability to meet the needs of ongoing operations. We remain on the wireless of major fund partners, which should allow us to resume loan origination as soon as conditions allow. And we have sufficient provision in place to manage and already wind down the existing portfolio.

儘管如此，我們仍處於穩健的位置。我們擁有充足的資本儲備與內生現金創造能力，可滿足持續營運需求。我們仍在與主要資金合作夥伴保持密切溝通，這將使我們能在條件允許時儘快恢復貸款發放。同時，我們已計提充足撥備，以管理並逐步收縮現有資產組合。

In response to the new environment, we are accelerating our transaction focusing on a few key areas. First, we are doubling down on our diversification strategy and accelerating on our tech empowerment transition. As economic growth continue to provide underlying support for credit demand, we see a clear into trend for financial institutions to develop their own lending business compliantly. We are well positioned to ride this trend with our tech empowerment model. i.e., leveraging our capabilities in traffic, risk management, AI and operations to help financial institutions grow their own lending business in a low-risk and sustainable way.

為應對新的環境，我們正加速推進轉型，聚焦於幾個關鍵領域。第一，我們將進一步加碼多元化策略，並加速向科技賦能轉型。隨著經濟增長持續為信貸需求提供底層支撐，我們看到金融機構合規發展自營放貸業務的趨勢日益明確。我們具備以科技賦能模式把握這一趨勢的良好條件，即利用我們在流量、風險管理、AI與營運方面的能力，幫助金融機構以低風險、可持續的方式發展其自營放貸業務。

We've been building our ecosystem for years, and we are advancing transition for guaranteed back loan presentation model to attack-in power model, and that positions us well for long-term sustainable growth ahead. Meanwhile, it's worth stressing that our e-commerce business will keep growing steadily and continue to contribute profit. These diverse businesses are our differentiated advantages compared with our peers.

我們多年來持續打造生態系統，並正推進從「擔保回購貸款撮合模式」向「科技賦能模式」轉型，這使我們在未來具備長期可持續成長的良好基礎。同時，值得強調的是，我們的電商業務將持續穩健成長並繼續貢獻利潤。這些多元化業務是我們相較同業的差異化優勢。

Second, we are driving cost efficiency to strengthen our ability to navigate industry cycle. We've rolled out a series of organizational streamlining and efficiency measures, and we expect management costs come down by 30% to 40%. As a result, we are seeing a faster decision-making, significantly higher productivity per employee, and a stronger foundation for long-term operational sustainability and resilience to market cycles, all of which create a runway we need to execute our transformation.

第二，我們正推動成本效率，以強化我們穿越產業週期的能力。我們已推出一系列組織精簡與提效措施，預期管理成本將下降30%至40%。因此，我們看到決策更迅速、員工人均生產力顯著提升，並為長期營運的可持續性與對市場週期的韌性奠定更強基礎，這些都為我們執行轉型提供所需的跑道。

Third, we are deepening our AI integration across the board in key operations, risk management and customer services. By embedded AI more deeply into our processes, we are simplifying workflows, improving efficiency and further reducing operating costs so that we stay lean and agile even in a volatile environment.

第三，我們正在關鍵營運、風險管理與客戶服務等方面全面深化AI整合。透過將AI更深度嵌入流程，我們正在簡化工作流程、提升效率並進一步降低營運成本，使我們即使在波動環境中也能保持精實與敏捷。

Looking ahead, we don't expect the regulatory and funding environment to ease anytime soon. Recovery will take time. In the near term, we will stay disciplined, continue to adopt prudent operational approach and ensure an orderly wind down of risk assets. Over the medium to long term, we will accelerate the transition to a tech and power model by empowering financial institutions with our technology solutions and driving our operational efficiency through AI, so that we are well adapted to the new regulatory landscape and position for long-term sustainable growth.

展望未來，我們預期監管與資金環境短期內不會放鬆。復甦需要時間。短期內，我們將保持紀律，持續採取審慎的營運方式，並確保風險資產有序出清。中長期而言，我們將透過以技術解決方案賦能金融機構、並以AI提升營運效率，加速向科技賦能模式轉型，以更好適應新的監管格局並為長期可持續成長做好布局。

(interpreted) Following the industry in late June, we did see some volatilities in a few risk indicators recently driven by a sector-wide liquidity shock. Looking ahead to Q3, with funding supply tightening further and our proactive risk management measures in place, new loan originations will decline materially. As a result, we expect existing portfolio rate to remain upward pressure sequentially, compounded by a further contracting loan balance, the 90 days plus delinquency ratio is expected to rise further.

（口譯）在6月下旬行業事件之後，受全行業流動性衝擊影響，我們近期確實在少數風險指標上看到一些波動。展望第三季，隨著資金供給進一步收緊且我們的主動風險管理措施到位，新貸款發放將顯著下降。因此，我們預期存量資產組合的風險水準將在環比上仍面臨上行壓力；再加上貸款餘額進一步收縮，預計90天以上逾期率將進一步上升。

On the collection side, due to the industry-wide regulatory campaign and higher compliance requirements for loan collection practices, our collection rate will also see a decline. That said, with our prudent risk approach and adequate provisioning, we have the capability to manage an orderly wind down of existing risk assets. Our goal is to keep any risk fluctuation within our risk appetite.

在催收方面，由於全行業監管整治以及對貸後催收合規要求提高，我們的催收率也將出現下降。不過，憑藉我們審慎的風險策略與充足的撥備，我們有能力對存量風險資產進行有序出清。我們的目標是將任何風險波動控制在我們的風險偏好範圍內。

Alex Ye, UBS.

Alex Ye，瑞銀。

(spoken in foreign language) So my question is, given the impact of recent industry risk events, how should we think about the financial performance for the second half of the year?

（以外語發言）我的問題是，考慮到近期行業風險事件的影響，我們應如何看待今年下半年的財務表現？

This is James. I'm going to take this question. Looking ahead to the second half, the overall market visibility still remains limited given the ongoing uncertainties around the funding supply recovery and the regulatory trends. So as a result, we are not providing any specific financial guidance at this point. However, against the backdrop of sector-wide liquidity tightening, we expect our third quarter performance to be under pressure, mainly due to the following factors.

我是James。我來回答這個問題。展望下半年，鑑於資金供給復甦及監管趨勢仍存在不確定性，整體市場能見度仍然有限。因此，我們目前不提供任何具體的財務指引。不過，在全行業流動性收緊的背景下，我們預期第三季業績將承壓，主要原因如下。

On the revenue side, obviously, the sector-wide funding tightening had a material impact on our new loan originations in supply in July and August, last 2 months. If this situation continues, our Q3 loan organization volume will come down a lot which will directly weigh on our top line.

在收入端，顯然，全行業資金收緊在7月和8月（過去兩個月）對我們新增貸款發放供給造成了實質影響。若此情況持續，我們第三季的貸款撮合量將大幅下降，並將直接拖累營收表現。

On the cost and expense side, there are two structural factors at play. One is the credit cost. Liquidity tightening across the sector has led to an uptick in default risks within our existing portfolio. In line with our prudent risk management approach, we will subside sufficient provisions for the associated potential risks, which obviously will drive up the credit cost for the quarter.

在成本與費用端，有兩個結構性因素在起作用。其一是信用成本。全行業流動性收緊導致我們存量資產組合的違約風險上升。依循我們審慎的風險管理策略，我們將就相關潛在風險計提充足撥備，這將明顯推升本季的信用成本。

Second, the operating expenses. In Q3, we proactively streamlined our organizational structure, optimized headcount and enhance efficiency. This generated a one-off severance-related costs, which will temporarily drive up our G&A expenses for the quarter.

第二是營運費用。在第三季，我們主動精簡組織架構、優化人員編制並提升效率。這產生了一次性的遣散相關成本，將在短期內推高本季的一般及行政費用（G&A）。

Over the long run, however, the benefits of these cost savings and efficiency initiatives will gradually flow through to our financials. So if I factor in all of this, we expect the company to record a net loss in the third quarter. For Q4, we'll update our business and financial guidance as we get more clarity on the regulatory front.

但從長期來看，這些節流與提效舉措的效益將逐步反映在財務表現中。綜合以上因素，我們預期公司第三季將錄得淨虧損。至於第四季，待監管方面更明朗後，我們將更新業務與財務指引。

While the short-term performance is under pressure, we are steadily resolving existing portfolio risks, advancing our technology empowered transformation and driving organizational efficiency. This will, for sure, solidify our capitalized operation foundations and positioning ourselves well for steady resilient growth under the new regulatory cycle.

儘管短期業績承壓，我們正穩步化解存量資產組合風險、推進科技賦能轉型並提升組織效率。這將確實鞏固我們資本化經營的基礎，並使我們在新的監管週期下具備穩健且具韌性的成長定位。

(inaudible), CICC.

（聽不清），中金公司。

(spoken in foreign language) Let me quickly translate my question. Following the change to your dividend policy, how should we view your long-term plans to return value to shareholders?

（以外語發言）我快速翻譯一下我的問題。在你們調整股利政策之後，我們應如何看待你們長期向股東回饋價值的計畫？

(interpreted) In response to the recent industry volatility triggered by recent events at certain tiers, the Board after -- has decided to change our dividend distribution from a semi-annual to annual schedule. Board believes that maintaining ample liquidity and financial flexibility, and preserving sufficient capital results and the financial buffer are our business transformation will help us navigate the industry adjustment most and that, in turn, will better protect long-term shareholder interest.

（口譯）針對近期由某些層級事件引發的行業波動，董事會在……之後決定將股利分配由半年一次調整為每年一次。董事會認為，維持充足流動性與財務彈性、保留足夠的資本實力與財務緩衝，以支持我們的業務轉型，將有助於我們更好地應對行業調整，並進而更好地保障股東的長期利益。

I would like to suggest that our commitment to creating and returning value to shareholders has not wavered. As the industry gradually recovers and the business performance improves over time, the Board will actively evaluate a range of shareholder return options, including share buybacks based on our specific circumstances at that time.

我想強調，我們為股東創造並回饋價值的承諾從未動搖。隨著行業逐步復甦、業務表現隨時間改善，董事會將基於當時的具體情況，積極評估多種股東回報選項，包括股份回購等。

Thank you for the questions. At this time, there are no further questions from the line. I would like to hand the call back to management for closing.

感謝各位的提問。目前線上沒有更多問題。我想把電話交回管理層作結語。

Thank you. This conference is now concluded. Thank you for joining today's call. If you have any more questions, please do not hesitate to contact us. Thanks again.

謝謝。本次會議到此結束。感謝各位參加今天的電話會議。如有任何其他問題，請隨時與我們聯繫。再次感謝。

That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝各位的參與。您現在可以掛斷電話。