360數科 (QFIN) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Qifu Technology First Quarter 2025 Earnings Conference Call. (Operator Instructions) Please also note, today's event is being recorded.

女士們、先生們，感謝大家的支持，歡迎參加啟富科技2025年第一季財報電話會議。（操作員指示）另請注意，今天的活動正在被記錄。

At this time, I'd like to turn the conference call over to Ms. Karen Ji, Senior Director of Capital Markets. Please go ahead, Karen.

現在，我想將電話會議交給資本市場高級總監 Karen Ji 女士。請繼續，凱倫。

Thank you, Dessi. Hello, everyone, and welcome to Qifu Technology's First Quarter 2025 Earnings Conference Call. Our earnings release was distributed earlier today and is available on our IR website. Joining me today are Mr. Wu Haisheng, our CEO; Mr. Alex Xu, our CFO; and Mr. Zheng Yan, our CRO.

謝謝你，黛西。大家好，歡迎參加啟富科技2025年第一季業績電話會議。我們的收益報告已於今天早些時候發布，可在我們的 IR 網站上查閱。今天與我一起出席的還有我們的執行長吳海生先生、我們的財務長徐立先生和我們的首席風險長鄭岩先生。

Before we start, I would like to refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Also, please note that unless otherwise stated, all figures mentioned in this call are in RMB terms.

在我們開始之前，我想請您參閱收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出某些前瞻性陳述。此外，本次電話會議也討論了某些非公認會計準則財務指標。請參閱我們的收益報告，其中包含非 GAAP 財務指標與 GAAP 財務指標的對帳。另請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣計算。

Before we start, we would like to let you know that today's prepared remarks from our CEO will be delivered in English using an AI-generated voice.

在我們開始之前，我們想讓您知道，我們執行長今天的準備好的演講將透過人工智慧生成的聲音以英語發表。

Now I will turn the call over to Mr. Wu Haisheng. Please go ahead.

現在我將電話轉給吳海生先生。請繼續。

(spoken by AI) Hello, everyone. Thank you for joining us today. In the first quarter of 2025, China's economy showed early signs of a mild recovery under the guiding principles of stabilizing growth, optimizing structure and managing risks. Meanwhile, the global economy is undergoing profound technological transformation and structural changes. In an increasingly complex and volatile environment, we upheld prudent operations, leveraged AI to reshape the credit value chain and achieved high-quality growth, delivering results that surpassed our expectations.

（AI 朗讀）大家好。感謝您今天加入我們。2025年一季度，在穩健成長、優結構、管風險的整體思維下，中國經濟呈現溫和復甦的初步跡象。同時，全球經濟正經歷深刻的技術變革和結構調整。在日益複雜多變的市場環境下，我們堅持審慎經營，運用人工智慧重塑信貸價值鏈，實現高品質發展，並取得了超乎預期的業績。

By the end of the quarter, our AI-powered credit decision engine and asset distribution platform empowered a total of 163 financial institutions and served more than 58 million users with approved credit lines on a cumulative basis. Total loan facilitation and origination volume on our platform increased by 15.8% year over year. With operational efficiency continuing to improve, our take rate for the quarter reached 5.7%, up 2.2 percentage points year over year. Non-GAAP net income increased by 59.9% year over year to RMB1.93 billion while non-GAAP EPADS on a fully diluted basis rose by 78.5% to RMB13.5.

截至本季末，我們的人工智慧信貸決策引擎及資產配置平台累計賦能163家金融機構，累計服務超過5,800萬名授信用戶。我們平台的貸款促成和發放總量年增了 15.8%。隨著營運效率的持續提升，本季我們的佣金率達到5.7%，較去年同期上升2.2個百分點。非美國通用會計準則淨利潤年增59.9%至19.3億元人民幣，非美國通用會計準則全面攤薄後每股收益年增78.5%至135元人民幣。

Despite macroeconomic headwinds, we have consistently improved upon our past results and outperformed our market commitments through ongoing evolvement and enhancements to our business. At the start of this year, we began rolling out our AI+ credit strategy at scale aimed at building the industry's first AI agent platform to empower core credit processes. We plan to recruit an additional 100 algorithm engineers by the end of the year and accelerate our transformation into an AI-native organization. We have also established our deep bank division, which is driving the research and development of our AI+ bank agent products to support the intelligent upgrade of financial institutions.

儘管面臨宏觀經濟逆風，我們仍透過不斷發展和增強業務，不斷改善過去的業績，並超越我們的市場承諾。今年年初，我們開始大規模推行「AI+信貸」策略，旨在打造業界首個賦能核心信貸流程的AI代理平台。我們計劃在年底前再招募100位演算法工程師，加速向AI原生組織轉型。我們也成立了深度銀行事業部，正在推動AI+銀行代理產品的研發，支持金融機構智慧化升級。

In April, we introduced an internal AI agent platform and, by May, deployed 5 digital employees across key functions such as data analytics, operations, compliance, risk management strategy and financial reconciliation. Our AI agent, ChatBI, is now deeply integrated into our intelligent decision-making and business analysis workflows. This agent provides real-time data insights and attribution analysis, empowering us to dynamically optimize our strategy and enhance decision efficiency.

今年 4 月，我們推出了內部 AI 代理平台，並於 5 月在數據分析、營運、合規、風險管理策略和財務對帳等關鍵職能部門部署了 5 名數位員工。我們的 AI 代理 ChatBI 現已深入融入我們的智慧決策和業務分析工作流程。該代理程式提供即時數據洞察和歸因分析，使我們能夠動態優化策略並提高決策效率。

Risk management has always been a cornerstone of our business. This quarter, we allocated a small portion of our traffic to pilot an end-to-end risk management framework powered by large language models. By training on historical decision logs using DeepSeek, we achieved a notable improvement in AUC, area under curve, to 0.64, a metric that measures risk tiering ability. We also upgraded our data mining capabilities by incorporating video and other multimodal inputs, enabling richer and more diverse feature representations.

風險管理一直是我們業務的基石。本季度，我們分配了一小部分流量來試行由大型語言模型驅動的端到端風險管理框架。透過使用 DeepSeek 對歷史決策日誌進行訓練，我們在 AUC（曲線下面積）方面取得了顯著的提高，達到 0.64，這是衡量風險分層能力的指標。我們還透過結合視訊和其他多模式輸入升級了資料探勘能力，實現了更豐富、更多樣化的特徵表示。

On top of that, we developed a user profiling agent that performs consistency checks on user features with over 95% accuracy, supporting differentiated credit lines and pricing based on user profiles.

在此基礎上，我們開發了使用者畫像代理，可以對使用者特徵進行一致性檢查，準確率超過95%，支援根據使用者畫像進行差異化信用額度和定價。

In terms of risk strategy, we maintained a differentiated approach in user operations, driving moderate loan growth while preserving ample risk buffers. With loan volume increasing by 15.8% year over year during the quarter, our C-to-M2 metric, which measures delinquency rates after 30-day collections, remained largely stable at 0.6%.

風險策略方面，我們堅持差異化用戶經營，在維持充足風險緩衝的前提下，推動貸款適度成長。本季貸款金額年增 15.8%，而我們的 C-to-M2 指標（衡量 30 天收款後的拖欠率）則大致維持穩定在 0.6%。

In Q1, we made further upgrades to our intelligent asset distribution platform to improve the precision of fund-asset matching. This helped us boost underwriting efficiency and strike a better balance between risk and return of our loan portfolio. Benefiting from our robust asset quality, we maintained our negotiating leverage on the funding side, resulting in a consistent decline in funding costs.

一季度，我們進一步升級智慧資產配置平台，提升基金資產匹配的精準度。這有助於我們提高承保效率，並在貸款組合的風險和回報之間取得更好的平衡。受益於穩健的資產質量，我們維持了在融資方面的談判優勢，融資成本持續下降。

In Q1, we issued RMB6.6 billion in ABS, a year-over-year increase of approximately 25%. With the proportion of ABS in our funding mix growing further, our overall funding costs decreased by an additional 30 basis points sequentially. We expect funding costs for the coming quarters to decrease slightly from Q1 levels.

一季度，我們發行ABS 66億元，年增約25%。隨著我們融資結構中ABS比例的進一步增加，我們的整體融資成本較上季下降了30個基點。我們預計未來幾季的融資成本將較第一季的水準略有下降。

In terms of user acquisition, we have modestly increased our spending and are actively exploring a broader range of channels. In Q1, we added 1.54 million new credit line users, up 6% year over year, with new borrowers increasing approximately 41% year over year to 1.13 million.

在用戶獲取方面，我們適度增加了支出，並積極探索更廣泛的管道。第一季度，我們新增信貸額度用戶154萬，年增6%，新增借款人數量年增約41%，達到113萬。

Our marketing-focused AI agent leverages multimodal recognition technology to analyze user intent in real time, integrate campaign management across multiple channels and enable real-time strategy adjustments. This has significantly improved our user profiling accuracy across channels with the conversion rate of new credit line users to new borrowers increasing by 33% from the same period last year. Our embedded finance business remains a key strategic focus as we continue to expand both the breadth and depth of our channel coverage.

我們以行銷為中心的人工智慧代理利用多模式識別技術即時分析使用者意圖，整合跨多通路的活動管理並實現即時策略調整。這顯著提高了我們跨通路用戶畫像的準確性，新信用額度用戶轉化為新借款人的轉換率比去年同期提高了 33%。隨著我們繼續擴大通路覆蓋的廣度和深度，我們的嵌入式金融業務仍然是我們的關鍵策略重點。

In Q1, we added 7 new channels, spanning from leading Internet platforms and various small- and midsized platforms to banks in multiple regions. We are also in the midst of onboarding 2 additional strategic platforms, signaling broader collaboration with leading Internet traffic platforms and unlocking meaningful and incremental growth potential going forward.

一季我們新增了7個管道，涵蓋了從領先的網路平台、各類中小型平台到多個地區的銀行。我們也正在引進另外兩個策略平台，這標誌著我們與領先的網路流量平台進行更廣泛的合作，並釋放未來有意義的增量成長潛力。

During the quarter, our new credit line users from the embedded finance channels grew 36% year over year while loan volumes surged by roughly 106%. The overall ROA of these channels improved by 20% on a sequential basis.

本季度，我們來自嵌入式金融通路的新信貸額度用戶年增 36%，而貸款量則激增約 106%。這些管道的整體 ROA 環比提高了 20%。

Regarding our technology solutions business, we established partnerships with 3 additional mid- to large-sized municipal banks in Q1, driving loan volume from this segment to grow by roughly 144% year over year, powered by our FocusPRO credittech platform, our proprietary solution for SME lending, which is built on a 3-tiered credit assessment system, gained meaningful scale in loan facilitation volume and delivered better-than-expected risk performance in Q1. This success has created new opportunities for our market expansion and growth in 2025. We have already received a wide range of inquiries from multiple banks about our AI+ bank agent product and recently entered into strategic partnerships with several of them.

關於我們的技術解決方案業務，我們在第一季與另外 3 家中型到大型城市銀行建立了合作夥伴關係，推動該部門的貸款量同比增長約 144％，這得益於我們的 FocusPRO 信貸技術平台，這是我們針對中小企業貸款的專有解決方案，建立在三級信用評估系統之上，在第一季度，貸款量獲得了有意義的表現。這項成功為我們2025年的市場拓展和成長創造了新的機會。我們已經收到多家銀行對我們的AI+銀行代理產品的廣泛諮詢，並且最近與其中幾家銀行建立了戰略合作夥伴關係。

As a key component of these partnerships, we will help banks deploy AI agents across a broad range of applications including marketing and customer acquisition, risk management and loan approval, decision analytics, growth operations, compliance reviews, multimodal recognition, remote banking and digital employees, facilitating their digital and intelligent transformation.

作為這些合作夥伴關係的重要組成部分，我們將幫助銀行在行銷和客戶獲取、風險管理和貸款審批、決策分析、成長營運、合規審查、多模式識別、遠端銀行和數位員工等廣泛應用中部署人工智慧代理，促進其數位化和智慧轉型。

In April, China's National Financial Regulatory Administration issued a notice on strengthening the management of the Internet loan facilitation business of commercial banks to enhance the quality and the efficiency of financial services. The notice provides clearer guidance for Internet-based lending practices, emphasizing that commercial banks should establish equal mutually beneficial partnerships with platform operators and credit enhancement providers, sharing risk responsibilities and adopting a long-term perspective.

今年4月，美國國家金融管理局發布《關於加強商業銀行網路貸款業務管理，提升金融服務品質與效率的通知》。《通知》對網路借貸業務實務做出了更明確的指導，強調商業銀行應與平台營運商、增信機構建立平等互利的合作夥伴關係，共擔風險責任，並著眼長遠。

We view these guidelines as strong regulatory recognition of the value the loan facilitation model provides. By setting clearer industry standards, the notice is expected to improve the overall health and sustainability of the sector. We will continue to engage in proactive and constructive discussions with regulators, regularly reviewing our practices and upholding prudence and compliance in our operations.

我們認為這些指導方針是監管機構對貸款便利化模式所提供的價值的有力認可。透過制定更清晰的行業標準，該通知有望改善該行業的整體健康和可持續性。我們將繼續與監管機構進行積極和建設性的討論，定期審查我們的做法，並在營運中堅持審慎和合規。

The increasingly complex international landscape has added uncertainty to the pace of China's economic recovery. That said, we believe the economy will remain fundamentally resilient over the long run, supported by China's technological innovation, supply chain upgrades and government measures to boost domestic demand.

國際情勢日趨複雜，為中國經濟復甦步伐增添了不確定性。儘管如此，我們相信，在中國技術創新、供應鏈升級和政府擴大內需措施的支持下，中國經濟長期仍將維持基本面韌性。

At the press conference held on May 7 this year, the State Council Information Office announced a package of financial policies aimed at stabilizing markets and managing expectations, including guidance for financial institutions to increase support for key consumption verticals. More recently, we are seeing encouraging progress in US-China trade talks. Overall, the macroeconomic and policy landscape is showing signs of stabilization, which will provide a favorable environment for the steady development of the consumer credit industry.

今年5月7日，國務院新聞辦公室舉行記者會，宣布了一系列穩市場、調預期的金融政策，包括指導金融機構加強對重點消費領域的支持。最近，我們看到中美貿易談判取得了令人鼓舞的進展。整體來看，宏觀經濟和政策環境呈現穩定跡象，將為消費信貸產業平穩發展提供良好環境。

As we progress through 2025, we remain cautiously optimistic. In the near term, our focus will be on enhancing operational efficiency, optimizing capital allocation and enhancing shareholder returns. Over the long term, we will continue executing our One Core, Two Wings strategy. We expect our core loan facilitation business to sustain high-quality growth while our technology solutions business will continue to empower financial institutions to accelerate their intelligent transformation through our AI+ strategy.

隨著我們邁入2025年，我們仍然保持謹慎樂觀的態度。短期內，我們的重點將放在提高營運效率、優化資本配置和提高股東回報。從長遠來看，我們將繼續執行「一核兩翼」策略。我們預計，我們的核心貸款促成業務將保持高品質成長，而我們的技術解決方案業務將繼續透過我們的AI+策略賦能金融機構加速其智慧轉型。

Internationally, we will focus on near-prime segments in markets with relatively stable regulatory environments, leveraging our leading fintech capabilities to build a strong competitive edge. In Q1, we issued USD690 million in convertible senior notes, further expanding our international funding channels and improving capital allocation efficiency. 100% of the proceeds from this issuance will be allocated to share buybacks.

在國際上，我們將專注於監管環境相對穩定的市場的近優質領域，利用我們領先的金融科技能力來打造強大的競爭優勢。一季度，我們發行了6.9億美元可轉換優先票據，進一步擴大了國際融資管道，提升了資金配置效率。本次發行所得款項將全數用於股票回購。

Adopting a cash-par settlement structure allows us to significantly reduce the potential dilution to existing shareholders. On the 25th of March pricing date, we concurrently completed a USD227 million share repurchase, resulting in an immediate 3.6% reduction in our share count. Combined with our USD450 million share repurchase program that took effect on the 1st of January, we expect our total repurchases this year to be no less than USD680 million. Based on the current share price, we estimate our total share count will decrease by approximately 11% when compared to the beginning of the year.

採用現金平價結算結構使我們能夠大幅減少現有股東的潛在稀釋。在 3 月 25 日的定價日，我們同時完成了 2.27 億美元的股票回購，導致我們的股票數量立即減少 3.6%。加上我們1月1日生效的4.5億美元股票回購計劃，我們預計今年的總回購額將不少於6.8億美元。根據目前的股價，我們估計我們的總股數將比年初減少約 11%。

We are confident in the future of our company and remain dedicated to delivering long-term value to our shareholders. Moving forward, we will continue to prioritize efficient capital allocation and shareholder value creation through recurring share buybacks and dividends.

我們對公司的未來充滿信心，並將繼續致力於為股東創造長期價值。展望未來，我們將繼續優先考慮有效的資本配置和透過定期股票回購和股利創造股東價值。

With that, I will now turn the call over to Alex.

說完這些，我現在將電話轉給亞歷克斯。

Thank you, Haisheng. Good morning and good evening, everyone. Welcome to our first quarter earnings call.

謝謝你，海昇。大家早安，晚上好。歡迎參加我們的第一季財報電話會議。

We started 2025 with a solid Q1 as overall user activities were stronger than normal seasonality. While macro environment appeared stabilizing early in the year, impacts from trade war added uncertainty recently. We will continue to focus on efforts to optimize operations and manage risk exposures in an uncertain market.

由於整體用戶活動強於正常季節性，我們以穩健的第一季開啟了 2025 年。儘管年初宏觀環境看似趨於穩定，但近期貿易戰的影響增加了不確定性。我們將繼續致力於優化營運和管理不確定的市場中的風險敞口。

Total revenue for Q1 was RMB4.69 billion versus RMB4.48 billion in Q4 and RMB4.15 billion a year ago. Revenue from credit-driven service capital-heavy was RMB3.11 billion in Q1 compared to RMB2.89 billion in Q4 and RMB3.02 billion a year ago. The sequential growth was mainly due to increases in on-balance sheet loans and lower early repayment discount. Overall funding costs further declined modestly QoQ as ABS contribute a larger portion of our total funding in Q1.

第一季總營收為46.9億元人民幣，第四季為44.8億元人民幣，去年同期為41.5億元。第一季度，信貸驅動型服務（資本密集）收入為 31.1 億元，而第四季為 28.9 億元，去年同期為 30.2 億元。環比成長主要由於表內貸款增加及提前還款折扣降低。由於 ABS 在第一季占我們總融資額的比重較大，因此整體融資成本較上季進一步小幅下降。

Revenue from platform service capital-light was RMB1.58 billion in Q1 compared to RMB1.59 billion in Q4 and RMB1.14 billion a year ago. The year-on-year growth was mainly due to strong contribution from ICE and other value-added service, more than offsetting the decline in capital-light loan facilitation. Platform service accounts for roughly 56% of quarter ending loan balance. We expect the ratio to be roughly stable in the near term.

第一季輕資本平台服務收入為人民幣 15.8 億元，而第四季為 15.9 億元，去年同期為 11.4 億元。年成長主要得益於ICE和其他加值服務的強勁貢獻，足以抵銷輕資本貸款便利化的下降。平台服務約佔季度末貸款餘額的56%。我們預計該比率在短期內將大致保持穩定。

During the quarter, average IRR of the loans we originated and/or facilitated was 21.4% compared to 21.3% in prior quarter. Looking forward, we expect pricing to be fluctuated around this level for the coming quarters.

本季度，我們發放和/或促成的貸款平均 IRR 為 21.4%，而上一季為 21.3%。展望未來，我們預計未來幾季的價格將在這個水平附近波動。

Sales and marketing expenses increased 13% QoQ and 42% year-on-year. The sequential and year-on-year increase were mainly due to larger volume contribution from API channels in both new and existing users. We added approximately 1.54 million new credit line users in Q1 versus 1.69 million in Q4. We will make timely adjustment to the pace of new user acquisition in the coming months given the volatile macro condition and further optimize our user acquisition channels and improve user engagement and retention.

銷售和行銷費用較上季成長13%，較去年同期成長42%。環比和年成長主要由於新用戶和現有用戶的 API 管道貢獻量增加。我們在第一季增加了約 154 萬名新信用額度用戶，而第四季則增加了 169 萬名。鑑於宏觀環境波動，我們將在未來幾個月及時調整新用戶獲取的節奏，進一步優化用戶獲取管道，提高用戶參與度和留存率。

90-day delinquency rate was 2.02% in Q1 compared to 2.09% in Q4. Day 1 delinquency was 5.0% in Q1 versus 4.8% in Q4. 30-day collection rate was 88.1% in Q1, essentially flat QoQ. Another key risk metric, C-M2, which represent the outstanding delinquency rate after the 30-day collection, increased modestly QoQ to 0.6%, still within our comfortable range. We will remain vigilant to manage overall risk exposure particularly given the latest macro uncertainty and try to maintain relatively stable risk metrics in the coming quarters.

第一季 90 天拖欠率為 2.02%，而第四季為 2.09%。第一季第一天拖欠率為 5.0%，而第四季為 4.8%。第一季 30 天收款率為 88.1%，與上一季基本持平。另一個關鍵風險指標 C-M2（代表 30 天收款後的未償拖欠率）較上季小幅上升至 0.6%，仍在我們可接受的範圍內。考慮到最近的宏觀不確定性，我們將保持警惕，管理整體風險敞口，並努力在未來幾季保持相對穩定的風險指標。

At the same time, we continue to take conservative approach to book provisions against potential credit losses. Although new provision for risk-bearing loans in Q1 were approximately RMB2.23 billion versus RMB2.07 billion in Q4, the increase in new provision was mainly due to increases in risk-bearing loan volume QoQ and higher provision booking ratio. Write-backs of previous provisions were approximately 1.14 billion in Q1 versus 1.02 billion in Q4.

同時，我們繼續採取保守的方式提列撥備，以防範潛在的信用損失。雖然第一季風險貸款已撥備新增約22.3億元，而第四季為20.7億元，但新增撥備的增加主要是由於風險貸款規模環比增加，以及撥備計提率提高所致。第一季度，先前撥備的回撥約為 11.4 億美元，而第四季為 10.2 億美元。

Provision coverage ratio, which is defined as total outstanding provisions divided by total outstanding delinquent risk-bearing loan balance between 90 and 180 days, were 666% in Q1, a historical high compared to 617% in Q4.

撥備覆蓋率（定義為未償還撥備總額除以未償還的90至1​​80天之間的拖欠風險貸款總額）第一季為666%，與第四季的617%相比創歷史新高。

Non-GAAP net profit was RMB1.93 billion in Q1 compared to RMB1.97 billion in Q4. Non-GAAP net income per fully diluted ADS were RMB13.53 in Q1 compared to RMB13.66 in Q4 and RMB7.58 a year ago as strong earning growth and proactive share repurchase created significant EPADS accretion.

第一季非美國通用會計準則淨利為人民幣19.3億元，第四季為人民幣19.7億元。第一季非美國通用會計準則每股美國存託憑證攤薄淨利潤為 13.53 元人民幣，而第四季度為 13.66 元人民幣，去年同期為 7.58 元人民幣，這得益於強勁的盈利增長和積極的股票回購帶來了 EPADS 的大幅增長。

At the end of Q1, total outstanding ADS share count was approximately 134.5 million compared to 142 million at the end of Q4 and 155 million a year ago.

第一季末，流通在外的 ADS 股總數約為 1.345 億股，而第四季末為 1.42 億股，去年同期為 1.55 億股。

Effective tax rate for Q1 was 18% compared to our typical ETR of approximately 15%. The higher-than-normal ETR was mainly due to withholding tax provision related to cash distribution from onshore to offshore.

第一季的有效稅率為 18%，而我們的典型 ETR 約為 15%。ETR 高於正常水準主要是由於與從境內到境外的現金分配有關的預扣稅撥備。

With higher contribution from capital-heavy models, our leverage ratio, which is defined as risk-bearing loan balance divided by shareholders' equity, was 2.7x in Q1, still near the low end of historical range. We expect to see the leverage ratio fluctuated around this level in the near future.

由於資本密集模式的貢獻增加，我們的槓桿率（定義為風險承擔貸款餘額除以股東權益）在第一季為 2.7 倍，仍然接近歷史低點。我們預期近期槓桿率將在此水準附近波動。

We generated approximately RMB2.81 billion cash from operations in Q1 compared to RMB3.05 billion in Q4. Total cash and cash equivalents and short-term investments was RMB14.03 billion in Q1 compared to RMB10.36 billion in Q4. The increase in cash was mainly due to the net proceeds from our USD690 million CB issuance. As we continue to generate strong cash flow from our operation, we will further optimize our capital allocation to support our business initiatives and to return to our shareholders.

我們第一季的經營活動產生的現金流量約為人民幣 28.1 億元，而第四季為 30.5 億元。第一季現金及現金等價物及短期投資總額為 140.3 億元，第四季為 103.6 億元。現金增加主要是因為我們發行6.9億美元可轉債的淨收益。隨著我們繼續從營運中產生強勁的現金流，我們將進一步優化資本配置，以支持我們的業務計劃並回報我們的股東。

We started to execute the $450 million share repurchase plan on January 1. As of May 19, 2025, we had in aggregate purchased approximately 4.4 million ADS in the open market for a total amount of approximately USD178 million, inclusive of commissions, at the average price of USD40.2 per ADS, ahead of the time schedule. In addition, on March 25, we successfully priced our USD690 million CB offering and repurchased approximately 5.1 million ADSs concurrently with the aggregate value of approximately USD227 million. The concurrent buyback and the net share settlement mechanism makes CB immediately accretive to EPADS at issuance.

我們於1月1日開始執行4.5億美元的股票回購計畫。截至2025年5月19日，我們已提前在公開市場累計購入約440萬股ADS，總金額約1.78億美元（含佣金），平均價格為每股ADS 40.2美元。此外，3月25日，我們成功發行6.9億美元的可轉債，同時回購約510萬股美國存託憑證，總價值約2.27億美元。同時回購和淨股份結算機制使得 CB 在發行時立即增值至 EPADS。

Altogether, so far in 2025, we bought back approximately 9.6 million ADS for a total amount of USD405 million, including commissions, at an average price of $42.3 per ADS. The accelerated pace of share repurchase further demonstrate management's confidence and commitment to the future of the company. And the management intend to further use share repurchase to achieve actual EPADS accretion.

總體而言，到 2025 年為止，我們以每股 42.3 美元的平均價格回購了約 960 萬股 A​​DS，總金額為 4.05 億美元（包括佣金）。股票回購步伐的加快進一步顯示了管理階層對公司未來的信心和承諾。管理層有意進一步利用股票回購來實現實際的 EPADS 增值。

Finally, regarding our business outlook. Where we observed some tentative signs of marginal improvement in user activity early in the year, macro uncertainties persist. We will continue to take a prudent approach in business planning for 2025 and focus on enhancing efficiency of our operation. For the second quarter of 2025, the company expects to generate non-GAAP net income between RMB1.75 billion and RMB1.85 billion, representing a year-on-year growth between 24% and 31%. This outlook reflects the company's current and preliminary view, which is subject to material changes.

最後，關於我們的業務前景。儘管我們在今年年初觀察到用戶活動略有改善的初步跡象，但宏觀不確定性仍然存在。我們將繼續以審慎的態度製定2025年的業務規劃，並致力於提高營運效率。2025年第二季度，公司預計非美國通用會計準則淨利潤在17.5億元至18.5億元之間，年增24%至31%。該展望反映了公司當前的初步觀點，可能會發生重大變化。

With that, I would like to conclude our prepared remarks. Operator, we can now take some questions.

至此，我想結束我們的準備演講。接線員，我們現在可以回答一些問題。

(Operator Instructions) Richard Xu, Morgan Stanley.

（操作員指示）摩根士丹利的 Richard Xu。

(spoken in foreign language) So I'll just do a translation. There's 2 questions. What kind of impact of changes do we expect once the new loan facilitation rules come to -- into effect in October 2025? Secondly is, what's the latest trends QFIN is seeing on the credit quality? How does it compare to second half of 2022 and 2023 when QFIN was -- started to tighten credit risks?

（用外語說）所以我只做翻譯。有 2 個問題。一旦新的貸款便利化規則在 2025 年 10 月生效，我們預計會產生什麼樣的變化影響？其次，QFIN 看到的信用品質最新趨勢是什麼？與 2022 年下半年和 2023 年 QFIN 開始收緊信貸風險時相比如何？

And will that impact the total expected loan growth for the year?

這會影響全年預期貸款總額的成長嗎？

Okay, Richard. Thank you. I can -- let me take your first question, and our CRO will answer your second question. In terms of regulation, in our opinion, the new rules released in April is a positive signal in the sense that regulator recognize the value of loan facilitation platform. The regulator's intention is to promote a more orderly and healthy development of the industry, setting principles and gradually sequencing out the long-tail platforms, which are less capable of complying with the industry standards and meet regulatory requirements.

好的，理查德。謝謝。我可以—讓我回答您的第一個問題，我們的 CRO 將回答您的第二個問題。監管方面，我們認為，4月份出台的新規是一個積極信號，表明監管機構認識到了貸款便利平台的價值。監管機構的意圖是促進行業更加有序、健康地發展，制定原則並逐步淘汰那些不太符合行業標準和監管要求的長尾平台。

At the same time, the new rules recognize the value of leading loan facilitation platforms and encourage banks to adopt a white-list approach, set clear entry standards and build equal long-term and mutually beneficial partnerships based on risk sharing.

同時，新規也肯定了領先的貸款便利平台的價值，鼓勵銀行採取白名單制度，設定明確的准入標準，在風險共擔的基礎上建立平等、長期、互利的合作夥伴關係。

In conclusion, with the implementation of the new rules, the industry will become more organized, which will enhance the overall health and sustainability of the loan facilitation sector. As a leading industry player, we believe we will benefit from the less competitive market environment. We will continue to engage in proactive and constructive discussions with regulators, review our practices and operate with prudence and in compliance.

總之，隨著新規則的實施，該行業將變得更加組織化，這將增強貸款便利化產業的整體健康和永續性。作為行業領導企業，我們相信我們將受益於競爭不那麼激烈的市場環境。我們將繼續與監管機構進行積極、建設性的討論，審查我們的做法，並審慎合規地運作。

And for your second question, Zheng Yan, can you answer it?

第二個問題，鄭艷，您能回答嗎？

(spoken in foreign language)

（用外語說）

Okay. Let me do the translation for Mr. Zheng. (interpreted) First of all, I want to say that so far, our asset quality has remained largely stable. Our C-to-M2 ratio, which measures the delinquency rate after 30-day collections, has fluctuated within a narrow band, which is in line with our expectations.

好的。讓我為鄭先生做翻譯。(翻譯)首先我想說的是，到目前為止，我們的資產品質大致保持穩定。我們的 C 與 M2 比率（衡量 30 天收款後的拖欠率）在一個窄幅區間內波動，這符合我們的預期。

First, we believe that current situation is completely incomparable to that in the second half of 2022 and 2023. Our average C-to-M2 ratio was 0.64% in the second half of 2022 and 0.69% in the second half of 2023. The volatility in the second half of 2023 was partially due to the macro uncertainties and some line controls by China's telecom careers. In Q1, our C-to-M2 ratio came in at 0.6%, which is significantly better than the second half of 2022 and 2023. And we expect this metric to remain largely stable going forward.

首先，我們認為現在的情況與2022年下半年、2023年的情況完全不能比。2022 年下半年，我們的平均 C/M2 比率為 0.64%，2023 年下半年為 0.69%。2023年下半年的波動部分是由於宏觀不確定性和中國電信業的一些線路控制。第一季度，我們的 C 與 M2 比率為 0.6%，明顯優於 2022 年下半年和 2023 年。我們預計這項指標未來將基本保持穩定。

Right now, our risk levels remain well under control, and we don't see a need to make any major adjustments to our risk policies. Therefore, as for the loan volume growth on a full year basis, it will largely depend on the consumers' credit demand.

目前，我們的風險等級仍然得到良好的控制，我們認為沒有必要對我們的風險政策做出任何重大調整。因此，全年貸款額的成長，很大程度上取決於消費者的信貸需求。

In Q1, we saw early signs of a mild recovery in credit demand and overall trends also seem to be stabilizing. However, the consistently changing global trade environment has increased macro uncertainty. While recent US-China talks have shown some encouraging progress, we still need to monitor how things will develop and what kind of impact that will have on China's economy. So we will stay prudent in our operations at this moment.

第一季度，我們看到信貸需求出現溫和復甦的早期跡象，整體趨勢似乎也趨於穩定。然而，全球貿易環境的持續變化增加了宏觀不確定性。儘管最近的中美談判取得了一些令人鼓舞的進展，但我們仍需關注事態將如何發展以及將對中國經濟產生什麼樣的影響。因此，我們目前在營運中將保持謹慎。

Last, I want to say that our business model is quite diversified, meaning that we can easily shift between asset-heavy and asset-light. That gives us the flexibility to adjust our asset allocation and balance between growth and risk. Based on what we've seen now, our outlook for full year loan volume growth is largely unchanged from what we expected at the early start of the year.

最後我想說，我們的商業模式非常多元化，也就是說，我們可以輕鬆地在重資產和輕資產之間轉換。這使我們能夠靈活地調整資產配置以及成長與風險之間的平衡。根據我們目前看到的情況，我們對全年貸款量成長的預期與年初的預期基本上沒有變化。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(spoken in foreign language) I will do a translation. So my first question is about the asset quality indicators. And specifically, we saw day 1 delinquency ratio was up by 2 consecutive quarter and now reaching 5.0% in the quarter and then also bringing C-to-M2 ratio to 0.60%. So can you share with more color on the reason behind? And how do you expect this indicator to trend going forward?

（外語）我會做翻譯。我的第一個問題是關於資產品質指標。具體來說，我們看到第一天拖欠率連續兩季上升，目前本季達到 5.0%，同時 C/M2 比率也達到 0.60%。那麼，您能否更詳細地解釋背後的原因呢？您預期該指標未來趨勢如何？

Second question is on the credit demand trends in the last 2 months since we are seeing more noises coming from the external environment. So just wondering, how has been the QoQ trend in terms of credit demand?

第二個問題是關於過去兩個月的信貸需求趨勢，因為我們看到來自外部環境的噪音越來越多。所以我只是想知道，信貸需求的環比趨勢如何？

(spoken in foreign language)

（用外語說）

(interpreted) Okay. First of all, I want to say that the slight fluctuation in our C-to-M2 ratio were in line with our expectations and also well within the target range we have set for our risk performance. Overall speaking, our asset quality is at a healthy level compared to historical trends.

（翻譯）好的。首先我想說的是，我們的C/M2比率的小幅波動是符合我們預期的，並且也在我們為風險表現設定的目標範圍內。整體來看，我們的資產品質與歷史趨勢相比處於健康水準。

As for the increase in the day 1 delinquency rate, it was mainly driven by the change in our loan mix. In Q1, the percentage of loan volume from our embedded finance channel increased by 31% from last quarter. And this business line usually has a higher day 1 delinquency rate compared to our app-based or H5-based business.

至於第一天拖欠率的上升，主要是由於我們的貸款組合的變化。第一季度，我們嵌入式金融通路的貸款額比上季成長了31%。與我們基於應用程式或基於 H5 的業務相比，這條業務線通常第一天的拖欠率更高。

Also, our overall loan volume was roughly flat QoQ, leading to a smaller portion of early-stage loans, which usually have a lower day 1 delinquency rate. These 2 structural change has led to a slight increase in our day 1 delinquency rate. And our collection rate is very stable, as our CFO just mentioned in his prepared remarks.

此外，我們的整體貸款量較上季基本持平，導致早期貸款所佔比例較小，而此類貸款的第一天拖欠率通常較低。這兩項結構性變化導致我們第一天的拖欠率略有上升。我們的收款率非常穩定，正如我們的財務長剛才在他的準備好的發言中提到的那樣。

In April, given the uncertainty around tariff impact, we slightly tightened our credit standards. Since then, our risk indicators have remained stable through both April and May. Moving forward, we will continue to adjust our risk strategy on a dynamic basis. We expect our C-to-M2 ratio for the full year to remain largely stable around 0.6% level based on the assumption that the macro environment doesn't change dramatically. Thank you.

四月份，鑑於關稅影響的不確定性，我們略微收緊了信貸標準。自那時起，我們的風險指標在四月和五月一直保持穩定。未來我們將持續動態調整風險策略。在宏觀環境沒有發生較大變化的假設下，我們預期全年貨幣供給量與M2比率將基本穩定在0.6%左右。謝謝。

And in terms of the credit demand, Alex, for the average daily loan volume, April was roughly in line with March. We did see some fluctuation in borrow activities due to the impact of US-China trade tensions. But we proactively expand our customer reach through partnership with diversified channels. We should be able to mitigate the potential decline in credit demand. In May, credit demand slightly decreased sequentially partly due to the May Day holiday.

就信貸需求而言，Alex，就日均貸款量而言，四月與三月份基本持平。由於中美貿易緊張局勢的影響，我們確實看到借貸活動出現了一些波動。但我們透過與多元化管道的合作積極擴大客戶範圍。我們應該能夠減輕信貸需求的潛在下降。5月份信貸需求較上季略有下降，部分原因是五一假期。

But this is just normal seasonality. Based on what we are seeing now, we expect loan volume in Q2 will be largely on track as we planned at the start of the year. Thank you.

但這只是正常的季節性現象。根據我們目前看到的情況，我們預計第二季的貸款量將基本上按照我們年初計劃的水平進行。謝謝。

Emma Xu, Bank of America Securities.

美國銀行證券公司的 Emma Xu。

(spoken in foreign language) So with recent China-US trade escalation, how do you assess the potential impact of the tariff tensions in the future? And will you tighten lending standards? And my second question is, what strategy is management currently adopting regarding potential ADR delisting risk? Will you consider a dual primary listing in Hong Kong where you take measures to improve the liquidity of your Hong Kong ticker?

（外語）那麼，隨著近期中美貿易戰升級，您如何評估未來關稅緊張局勢的潛在影響？您會收緊貸款標準嗎？我的第二個問題是，管理階層目前針對潛在的 ADR 退市風險採取了什麼策略？您是否會考慮在香港進行雙重主要上市，並採取措施提高香港股票的流動性？

Okay. In terms of tariffs, we believe the direct impact of tariffs on our business is quite limited. First, the vast majority of our loan volume is in consumer lending. Second, we reviewed the industries of users -- of our users are involved in. In Q1, those related to exports accounted for just around 4% of our total loan volume.

好的。就關稅而言，我們認為關稅對我們業務的直接影響相當有限。首先，我們的貸款絕大部分是消費貸款。其次，我們回顧了用戶所處的行業。第一季度，與出口相關的貸款僅占我們貸款總額的4%左右。

Among them, only about 1% were in sectors likely to be significantly impacted by US tariffs. For these users, we have already adjusted our transaction and asset allocation strategies to mitigate potential impact from tariffs.

其中，只有約1%的企業屬於可能受到美國關稅嚴重影響的產業。對於這些用戶，我們已經調整了交易和資產配置策略，以減輕關稅的潛在影響。

On the policy side, US-China tariff talks have achieved some encouraging progress, and we view that as a positive for both credit demand and asset quality. However, the global trade landscape has been shifting quite a bit this year. And this has added uncertainty to China's macro environment and may affect people's consumption sentiments. Weaker exports could put pressure on areas such as CapEx and household consumption. So in April, out of caution, we slightly tightened our risk strategy.

政策方面，中美關稅談判取得了一些令人鼓舞的進展，我們認為這對信貸需求和資產品質都是利多。然而，今年全球貿易格局卻發生了很大變化。這為中國宏觀環境增添了不確定性，可能影響居民的消費情緒。出口疲軟可能會對資本支出和家庭消費等領域造成壓力。因此，四月份，出於謹慎考慮，我們略微收緊了風險策略。

So far, overall risk levels have remained largely stable. We will continue to monitor how the tariff situation impacts risk performance and dynamically adjust our strategy as needed.

目前，整體風險水準基本上保持穩定。我們將繼續監控關稅狀況如何影響風險表現，並根據需要動態調整我們的策略。

In addition, our diversified business model also makes us more flexible to react to the potential challenges.

此外，多元化的業務模式也讓我們更靈活地應對潛在的挑戰。

And then for your second question, CFO, you can answer it.

然後對於您的第二個問題，財務官，您可以回答。

Sure, Emma. As you know, this ADR delisting basically resurface every few years depending on the US side of the political need. Given that in early May, the US and China entered into at least a tentative kind of agreement on the tariff, so compared to early April, I think the delisting risk clearly kind of reduced by quite a bit.

當然，艾瑪。如你所知，根據美國方面的政治需要，ADR 退市基本上每隔幾年就會重新出現一次。鑑於5月初美國和中國就關稅問題達成了至少是初步協議，因此與4月初相比，我認為退市風險顯然降低了不少。

But with that said, we have been carefully evaluating the potential risk of the delisting. I think we're well prepared, and we have a very clear plan to respond what-if kind of a scenario.

但話雖如此，我們也一直在謹慎評估退市的潛在風險。我認為我們已經做好了充分的準備，我們有一個非常明確的計劃來應對各種可能發生的情況。

As you know, in November 2022, we completed the secondary listing in Hong Kong. This basically has given our shareholders more flexibility. They can choose to continue trading in US or move to in Hong Kong market. So even in the worst-case scenario where -- when our ADSs are forced to delist, investors would still be able to trade on our shares seamlessly in Hong Kong.

大家知道，2022年11月，我們完成了在香港的第二次上市。這實際上為我們的股東提供了更多的靈活性。他們可以選擇繼續在美國交易，或轉向香港市場。因此，即使在最壞的情況下——當我們的 ADS 被迫退市時，投資者仍然能夠在香港無縫交易我們的股票。

As for liquidity, currently about 99% of our trading volume is in the US market. And in Hong Kong, obviously, it's very, very light. This is mainly because US trading offer investors more flexibility and relatively low transaction costs.

至於流動性，目前我們約99％的交易量都在美國市場。而在香港，顯然光線非常非常明亮。這主要是因為美國交易為投資者提供了更大的靈活性和相對較低的交易成本。

However, if a force to delist were to happen, all the tradings would probably naturally shift from the US to Hong Kong. And accordingly, the liquidity in Hong Kong will, for sure, improve significantly.

然而，一旦強制退市發生，所有交易可能會自然從美國轉移到香港。那麼香港的流動性一定會大幅改善。

At that point, our Hong Kong listing would automatically convert from a secondary listing to a primary listing in accordance with the Hong Kong Exchange rules, okay? And we only need to file some additional document after that conversion or, I mean, secondary to primary convert happening as after providing the document support. Therefore, we believe the secondary listing that we already have already provides sufficient protection for our shareholders. We will continue to obviously monitor it as the situation evolves and take correct measures based on our ongoing assessment on this matter.

到時候，我們的香港上市，依照港交所的規則，會自動從二次上市轉為一次上市，好嗎？我們只需要在轉換之後提交一些額外的文件，或者，我的意思是，在提供文件支援之後，從二次轉換到主要轉換。因此，我們相信，我們現有的二次上市已經為我們的股東提供了足夠的保護。我們將繼續密切關注事態發展，並根據對此事的持續評估採取正確的措施。

Cindy Wang, China Renaissance.

Cindy Wang，中華復興。

(spoken in foreign language) So in first quarter, the number of new users with approved credit was down 9% sequentially, the CAC up 22%. So what is the reasoning behind it? And since April, the trade war may cause a potential slowdown in loan demand. Has it affected the quality of new borrowers? And have you adjusted customer acquisition strategy?

（外語）因此，在第一季度，獲得信貸批准的新用戶數量環比下降了 9％，而 CAC 則上升了 22％。那麼這背後的原因是什麼呢？自4月份以來，貿易​​戰可能會導致貸款需求放緩。這是否影響了新借款人的品質？你們有調整過客戶獲取策略嗎？

So how do you expect the customer acquisition cost in the second quarter?

那麼您預計第二季的客戶獲取成本如何？

Okay. Cindy, first, the increase in unit customer acquisition cost in Q1 was mainly driven by a change in our business mix. About 30% of our sales expenses came from API channels in the quarter. Unlike other channels, we pay channel fees for both new borrowers and repeat borrowers for API. But when we calculate cost per user, we only count new users, not repeat runs.

好的。Cindy，首先，第一季單位客戶獲取成本的增加主要是由於我們的業務組合變化所致。本季我們約有30%的銷售費用來自API通路。與其他管道不同，我們向 API 的新借款人和重複借款人支付通路費用。但是當我們計算每個用戶的成本時，我們只計算新用戶，而不計算重複運行的用戶。

So when API channels contribute to a higher percentage of loan volume, it pushes up our unit acquisition costs however, the API channels are generating incremental loan volume for the company, and the acquisition cost per loan through API is much lower than in-feed marketing. We are able to recover the cost of -- the cost with just the first loan issuance.

因此，當 API 管道在貸款量中所佔比例較高時，就會推高我們的單位獲取成本。然而，API 管道正在為公司產生增量貸款量，透過 API 獲得的每筆貸款的獲取成本遠低於資訊流行銷。我們僅透過發放第一筆貸款就能收回成本。

In addition, we increased spending on in-feed marketing this quarter to reach higher-quality users. Although these channels usually have higher acquisition costs compared to others, such as app store or data-driven marketing, users from these channels tend to deliver stronger and healthier value in the medium to long term. We have also tried new strategies in this space, carrying our approach to different pricing segments and applying different operations across the full year journey.

此外，本季我們增加了資訊流行銷的支出，以接觸更高品質的用戶。儘管這些管道通常比應用程式商店或數據驅動行銷等其他管道具有更高的獲取成本，但從中長期來看，這些管道的用戶往往會帶來更強大、更健康的價值。我們也在這個領域嘗試了新的策略，將我們的方法應用於不同的定價細分市場，並在全年實施不同的營運。

Furthermore, I want to say that we pay more attention to the efficiency of customer acquisition rather than the cost of customer acquisition. As we optimize the entire acquisition journey, the end-to-end approach has made our targeting more accurate in terms of both user quality and intent. This, in turn, boosts our overall lending efficiency for new users.

另外我想說我們更注重獲客的效率而不是獲客的成本。隨著我們優化整個獲取過程，端到端方法使我們在用戶品質和意圖方面的定位更加準確。這反過來又提高了我們對新用戶的整體借貸效率。

This quarter, our conversion rate from new credit line users to new borrowers reached 74%, up from around 55% in the same period last year. That is to say that our end-to-end customer acquisition efficiency remains very healthy. Since the start of Q2, users' credit needs have been affected by the ongoing trade tension, which in turn will also have a certain impact on our customer acquisition efficiency.

本季，我們的新增信用額度用戶到新增借款人的轉換率達74%，高於去年同期的55%左右。也就是說，我們的端到端客戶獲取效率仍然非常健康。自第二季開始，用戶的信貸需求受到持續的貿易緊張局勢的影響，這反過來也會對我們的客戶獲取效率產生一定的影響。

Going forward, we will continue to closely monitor changes in the macro environment and the competitive landscape and adjust our acquisition pace accordingly. We will also carefully evaluate our acquisition cost against the LTV of new users and further optimize our channels to improve efficiency. Thank you.

未來，我們將繼續密切關注宏觀環境和競爭格局的變化，並相應調整收購節奏。我們還將根據新用戶的生命週期價值仔細評估我們的獲取成本，並進一步優化我們的管道以提高效率。謝謝。

Yada Li, CICC.

中金公司，李亞達。

(spoken in foreign language) Then I will do a translation. My question is, given the policy stimulus to promote domestic consumption, looking ahead, how do we view the trend of loan demand, funding and liquidity from bank partners and the company's loan strategy? Amid this recovery environment, can we expect that the company can maintain a low funding cost in the long run and may adopt a more proactive loan strategy in the future? That's all.

（外語）那我來翻譯一下。我的問題是，在促進國內消費的政策刺激下，展望未來，我們如何看待貸款需求、銀行合作夥伴的資金和流動性趨勢以及公司的貸款策略？在這種復甦環境下，我們能否預期該公司能夠長期維持較低的融資成本，並在未來採取更積極主動的貸款策略？就這樣。

Okay. Yada, since the start of the year, China has rolled out a range of supportive policies aimed at boosting consumption, such as trading subsidies and guidelines for stronger support to consumer lending. These measures have made a positive impact as we can see in the quarter. In the Q1 macro data, retail sales were up 4.6% year over year, beating market expectations. Credit demand on our platform was also slightly better than typical seasonal trends.

好的。雅達表示，今年以來，國家推出了一系列促進消費的支持政策，例如交易補貼、加強對消費貸款支持力度的指導方針等。正如我們在本季所看到的，這些措施已經產生了積極的影響。在第一季宏觀數據中，社會消費品零售總額年增4.6%，超出市場預期。我們平台上的信貸需求也略優於典型的季節性趨勢。

On the funding side, the government announced cuts to both the interest rate and the reserve ratio in May. So we expect the funding environment to remain relatively supportive this year, with some room for a further decrease in funding costs. In addition, we plan to further expand our ABS issuance and optimize our funding structure. Overall, we expect our funding cost for 2025 to decrease slightly from Q1 levels. And finally, about our lending strategy, I think it really depends on the risk outlook and the customer demand.

融資方面，政府5月宣布調降利率及存款準備率。因此我們預計今年融資環境仍將相對有利，融資成本還有進一步下降的空間。此外，我們計劃進一步擴大ABS發行規模，優化融資結構。總體而言，我們預計 2025 年的融資成本將較第一季的水準略有下降。最後，關於我們的貸款策略，我認為這實際上取決於風險前景和客戶需求。

Although our risk indicators remain largely stable, at the moment, there is still some uncertainty in the broader macro environment. Therefore, we will continue to maintain a prudent strategy, pursuing high-quality and sustainable growth. That's all. Thank you.

儘管我們的風險指標基本上保持穩定，但目前宏觀環境仍存在一些不確定性。因此，我們將繼續保持審慎的策略，追求高品質、永續的成長。就這樣。謝謝。

Yes. Yada, I just want to add one little point here. So as you know, we are very much focused on the take rate of the -- of our portfolio. And as in our previous discussion with the market, we communicate that we continue to see from a full year basis, we'll continue to see improvement this year, '25 versus '24 in terms of the net take rate, assuming there's no dramatic macro changes from now to the year-end. I think that's still the assumption we're looking at, and I think that's still on topic.

是的。是的，我只想在這裡補充一點。所以如你所知，我們非常關注我們投資組合的接受率。正如我們之前與市場的討論一樣，我們表示，從全年來看，我們將繼續看到今年的改善，25 年與 24 年相比，淨吸收率將有所改善，假設從現在到年底沒有發生重大的宏觀變化。我認為這仍然是我們正在考慮的假設，而且我認為這仍然是主題。

Thank you.

謝謝。

There are no further questions at this time. I'll now hand back to management for closing remarks.

目前沒有其他問題。現在我將把發言交還給管理階層，請他們作最後發言。

Okay. Thank you, everyone, to -- again, to join us for this conference call. If you have any additional questions, feel free to contact us off-line. Thank you.

好的。再次感謝大家參加這次電話會議。如果您有任何其他問題，請隨時離線與我們聯繫。謝謝。

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

謝謝。今天的會議就到此結束了。感謝您的參與。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。