360數科 (QFIN) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Qfin Holdings second-quarter 2025 earnings conference call. (Operator Instructions) Please also note today's event is being recorded.

女士們，先生們，感謝各位的支持，歡迎參加Qfin Holdings 2025年第二季業績電話會議。 （操作員指示）另請注意，今天的會議正在錄製中。

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季凱倫女士。請開始，凱倫。

Thank you, Jay. Hello, everyone, and welcome to Qfin second-quarter 2025 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Jay。大家好，歡迎參加Qfin 2025年第二季電話會議。我們的財報已於今天稍早發布，可在投資者關係網站上查閱。今天與我一同出席的有：執行長吳海生先生、財務長徐立先生和首席風險長鄭岩先生。

Before we start, I would like to refer you to our safe harbor statement in our 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 non-GAAP financial measures to GAAP financial measures.

在開始之前，我想請您參閱我們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 (non-GAAP) 財務指標。請參閱我們的收益報告，其中包含非公認會計準則 (non-GAAP) 財務指標與公認會計準則 (GAAP) 財務指標的對帳表。

Also, please note that unless otherwise stated, all figures mentioned in this call are in RMB terms. In addition, please note that today's prepared remarks for our CEO will be delivered in English using an AI-generated voice.

另外，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。此外，今天為執行長準備的致詞將以英語透過人工智慧語音朗讀。

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

現在請吳海生先生發言。請您發言。

Hello, everyone. Thank you for joining us today. In the first half of 2025, the global economic landscape faced growing uncertainty amid rising geopolitical tensions. Despite external headwinds, China's economy remained broadly stable and demonstrated strong resilience. The consumer credit industry, which serves as a key driver of boosting consumption is undergoing a wave of supply-side reforms under regulatory guidance.

大家好，感謝大家今天接受我們的訪問。 2025年上半年，地緣政治緊張局勢加劇，全球經濟格局不確定性加劇。儘管外部環境面臨挑戰，但中國經濟整體保持平穩，展現強勁韌性。作為消費成長關鍵引擎的消費信貸產業，在監管的引導下，正經歷供給面改革的浪潮。

The goal of these reforms is to provide inclusive and innovative consumer credit solutions across a variety of consumption scenarios to better address diverse user needs. With a user-centric approach and a focus on the essence of fintech, we are actively leveraging AI to drive upgrades across the consumer credit value chain, reinforcing our leadership in the industry.

這些改革的目標是，為用戶提供普惠創新的消費信貸解決方案，涵蓋多種消費場景，更能滿足用戶多元化的需求。我們秉持以使用者為中心的理念，緊扣金融科技的本質，積極運用人工智慧驅動消費信貸價值鏈升級，鞏固業界領先地位。

By the end of the second quarter, our AI-powered credit decision engine and asset distribution platform empowered a total of 165 financial institutions and served more than 60 million users with approved credit lines on a cumulative basis. Total loan facilitation and origination volume on our platform increased by approximately 16% year over year to RMB84.6 billion.

截至第二季末，我們基於人工智慧的信貸決策引擎及資產配置平台已賦能165家金融機構，累計服務超過6,000萬用戶獲得授信額度批准。平台貸款促成及發放總額年增約16%，達人民幣846億元。

With operational efficiency continuing to improve, our take rate for the quarter reached 5.4%, up almost 1 percentage point year over year. Non-GAAP net income increased by 30.8% year over year to RMB1.85 billion. while non-GAAP EPADS on a fully diluted basis rose by 48.8% to RMB13.63. Despite macroeconomic and regulatory headwinds we maintain strategic discipline and prioritize high-quality growth to achieve solid operating results.

隨著營運效率的持續提升，本季我們的佣金率達到5.4%，較去年同期上升近1個百分點。非公認會計準則淨利潤年增30.8%，達到人民幣18.5億元；非公認會計準則全面攤薄後每股收益（EPADS）成長48.8%，達到人民幣13.63元。儘管面臨宏觀經濟和監管方面的不利因素，我們仍保持戰略紀律，優先考​​慮高品質成長，從而實現了穩健的營運績效。

Given the relatively challenging market environment during the quarter, we continued to refine our risk strategies and models to improve key performance metrics. In April, we slightly tightened our risk standards in response to uncertainty related to potential tariff impacts. As the regulatory developments created additional uncertainty, we further optimized our risk control and asset distribution strategies in June, maintaining our acceptance rate at a reasonable level while improving risk metrics.

鑑於本季相對嚴峻的市場環境，我們持續優化風險策略和模型，以提升關鍵績效指標。 4月份，我們略微收緊了風險標準，以應對與潛在資費影響相關的不確定性。由於監管動態帶來了更多不確定性，我們在6月份進一步優化了風險控制和資產配置策略，在風險指標改善的同時，將接受率保持在合理水平。

As a result, the leading risk indicated FPD or First Payment Default over seven days for new loans facilitated in June decreased by about 5% when compared to that in May, while our C2M2 metric, which measures delinquency rates after 30-day collection remains stable. We also made further upgrades to our risk decisioning AI agent by leveraging large language models, or LLM technology during the quarter.

因此，6月新發放貸款中，主要風險指標FPD（七天內首次還款違約率）較5月份下降了約5%，而我們衡量30天收款後拖欠率的C2M2指標則保持穩定。本季度，我們也利用大型語言模型（LLM）技術，進一步升級了我們的風險決策AI代理。

By integrating 670 models, 7,129 strategy modules and over 100 million historical decisions into the foundation model, we are establishing an end-to-end risk management solution that is moving us steadily toward more intelligent decision-making.

透過將670個模型、7129個策略模組和超過1億個歷史決策整合到基礎模型中，我們正在建立端到端的風險管理解決方案，使我們穩步走向更智慧的決策。

Our user profile enhancement AI agent uses LLM capabilities to activate knowledge association and identify underlying logic behind the data, enriching user profiles for over 20% of our core user base. It refines and cross validates key labels such as industry, income, and occupation, which in turn, optimizes our credit offers.

我們的使用者畫像增強AI代理利用LLM能力啟動知識關聯，辨識資料背後的邏輯，豐富了超過20%核心使用者的使用者畫像。它對行業、收入和職業等關鍵標籤進行細化和交叉驗證，從而優化我們的信貸方案。

Meanwhile, our intelligent algorithm agent runs around the clock to train and fine-tune our models and automatically generates core risk model chains. Two of our core behavior scorecard models, or B scorecard models, improved KS scores, a metric that measures how effectively a model separates risk levels by 89 and 93 basis points, respectively.

同時，我們的智慧演算法代理全天候運行，訓練和微調我們的模型，並自動產生核心風險模型鏈。我們的兩個核心行為評分卡模型（B評分卡模型）提高了KS評分，該指標衡量模型區分風險等級的有效性，分別提高了89個基點和93個基點。

In Q2, overall liquidity in the financial system remained ample, though we observed some structural differences across asset classes. Despite an uncertain regulatory outlook for the industry, we leveraged our diversified funding partnerships and robust asset quality to maintain a relatively stable funding supply throughout the quarter.

第二季度，金融體系整體流動性依然充裕，但我們觀察到不同資產類別之間存在一些結構性差異。儘管行業監管前景不明朗，但我們憑藉多元化的融資合作關係和穩健的資產質量，在本季度保持了相對穩定的資金供應。

As a leading fintech platform, we continue to demonstrate strength in the ABS market, issuing approximately RMB7.8 billion during the quarter, representing a year over year increase of about 70%. As a result, total ABS issuance in the first half of the year nearly matched the full year total in 2024, with issuance costs declining further to a record low. As a proportion of ABS in our capital heavy funding increased further, our overall funding costs decreased by an additional 10 basis points sequentially.

作為領先的金融科技平台，我們在資產支持證券 (ABS) 市場持續展現強勁勢頭，本季發行規模約人民幣78億元，年增約70%。因此，上半年ABS發行總額已接近2024年全年發行總額，發行成本進一步降至史上最低。隨著ABS在我們資本密集融資中的佔比進一步提升，我們的整體融資成本較上季下降10個基點。

On the user acquisition front, we continue to implement a user-centric strategy, making our offerings available to users wherever they are. Through embedded finance we have significantly deepened our presence across a diverse range of Internet scenarios, including short-form videos, e-commerce, mobility, food delivery and financial services. This enables us to offer users a convenient and seamless borrowing experience while also expanding our brand visibility and market reach.

在用戶獲取方面，我們持續實踐以用戶為中心的策略，確保用戶無論身在何處都能享受到我們的服務。透過嵌入式金融，我們顯著深化了在短片、電商、出行、外帶和金融服務等各類網路場景的佈局。這使我們能夠為用戶提供便利且流暢的借貸體驗，同時也提升了我們的品牌知名度和市場覆蓋範圍。

In Q2, we further extended the network of our embedded finance business by adding four new strategic channels, bringing us close to full coverage across all leading Internet platforms.

第二季度，我們進一步擴展了嵌入式金融業務的網絡，新增了四個策略管道，接近實現所有主要互聯網平台的全覆蓋。

During the quarter, total new credit line users grew 40% year over year to RMB1.79 million, while average cost per credit line user decreased slightly sequentially. The number of new borrowers increased by approximately 60% year over year to 1.23 million. New credit line users from the embedded finance channels increased by 103% year over year while loan volumes surged by roughly 155%. ROA of this segment remained stable throughout the quarter.

本季，新增信貸額度用戶總數較去年同期成長40%至人民幣179萬元，每筆信貸額度用戶平均成本較上季略有下降。新增借款人數量年增約60%至123萬人。來自嵌入式金融通路的新增信貸額度用戶較去年同期成長103%，貸款額度激增約155%。本季該業務類股的資產報酬率（ROA）保持穩定。

In Q2, loan volumes supported by our total Technology Solutions business, increased approximately 150% year over year. We continue to advance our AI plus bank strategy, which focuses on designing and developing AI-powered product tailored for financial institutions.

第二季度，由我們整體技術解決方案業務支持的貸款額年增約150%。我們持續推動「人工智慧+銀行」策略，專注於為金融機構量身打造設計和開發人工智慧驅動的產品。

As part of this effort, we are upgrading our focused pro credit tech solution into a next-generation super AI credit agent to strengthen our B2B services capabilities. We also entered into a strategic partnership with an AI hardware provider to develop a customized all-in-one AI machine that will further enhance the overall competitiveness of our AI products. These offerings will cover core functions such as user acquisition, risk management, and day-to-day operations.

作為這項工作的一部分，我們正在將我們專注的專業信貸技術解決方案升級為下一代超級人工智慧信貸代理，以增強我們的B2B服務能力。我們也與一家人工智慧硬體供應商建立了策略合作夥伴關係，共同開發客製化的一體化人工智慧機器，進一步提升我們人工智慧產品的整體競爭力。這些服務將涵蓋用戶獲取、風險管理和日常營運等核心功能。

For example, we are building an AI agent to empower key credit approval processes by combining multimodal LLM capabilities with our extensive experience serving financial institutions. Once widely adopted, this agent is expected to help address the shortage of risk personnel in lower-tier cities and significantly improve the efficiency of credit approvals. With development partially complete, our AI agent products are already attracting strong interest from banks, securing several commercial orders scheduled for launch in Q3.

例如，我們正在建立一個AI代理，將多模態LLM能力與我們豐富的金融機構服務經驗結合，賦能關鍵的信貸審批流程。一旦該代理商被廣泛採用，預計將有助於解決低線城市風險人員短缺的問題，並顯著提升信貸審批效率。目前，我們的AI代理產品已部分完成開發，並已獲得多個商業訂單，計劃於第三季上線。

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 efficiency of financial services, providing clearer guidance for Internet-based lending practices. We believe the new regulatory guidelines will help further improve the overall health and sustainability of the loan facilitation sector, making consumer finance more accessible and delivering greater value to users.

今年4月，中國國家金融監督管理委員會發布《關於加強商業銀行網路貸款業務管理，提升金融服務品質和效率的通知》，為網路貸款業務提供了更清晰的指導。我們相信，新的監管指引將有助於進一步提升網路貸款產業的整體健康和永續性，使消費金融更加便捷，並為用戶創造更大的價值。

In the near term, the industry will go through an adjustment period to align with these new regulatory requirements. Our prudent operations and strong execution capabilities have enabled us to successfully navigate similar adjustments in the past with resilience and solid results.

短期內，產業將經歷一段適應新監管要求的調整期。我們審慎的營運和強大的執行力，使我們過去能夠以韌性和穩健的業績成功應對類似的調整。

As a leading platform in the industry, we believe we are well positioned to thrive in a healthier and more favorable market environment over the long run and further consolidate our leadership position. Looking ahead to the second half of 2025, we will continue to prioritize prudent compliant operations and optimize products and services to better address user needs while improving overall operational efficiency.

作為業界領先的平台，我們相信，我們有能力在更健康、更有利的市場環境中長期蓬勃發展，並進一步鞏固我們的領導地位。展望2025年下半年，我們將繼續以審慎合規營運為重點，優化產品和服務，以更好地滿足用戶需求，同時提升整體營運效率。

We will continue advancing our One Core 2 wins strategy executing on our AI plus credit strategy and enhancing our AI agent platform to drive the digital transformation of financial institutions. Additionally, we are pleased to report encouraging progress in our overseas expansion. This quarter, we took a baby step with the launch of small-scale operations in the UK which those still at an early stage, is delivering a healthy performance across key metrics.

我們將繼續推動「一核兩贏」策略，實施「人工智慧+信貸」策略，並增強我們的人工智慧代理平台，以推動金融機構的數位轉型。此外，我們很高興地報告，我們的海外擴張取得了令人鼓舞的進展。本季度，我們在英國啟動了小規模業務，邁出了堅實的一步，儘管這些業務仍處於起步階段，但在關鍵指標方面均取得了良好的表現。

We will continue to refine our risk models and enhance conversion efficiency. We believe the robust fintech infrastructure this market offers presents significant opportunities for us and are confident that our AI and big data capabilities will create substantial value by addressing underserved local demand. Meanwhile, we are proactively exploring additional international opportunities and our commitment to global expansion has never been stronger.

我們將持續完善風險模型，提升轉換效率。我們相信，中國市場強大的金融科技基礎設施為我們帶來了巨大的機遇，並堅信我們的人工智慧和大數據能力將透過滿足尚未充分滿足的本地需求創造巨大的價值。同時，我們正在積極探索更多國際機遇，我們對全球擴張的決心也比以往任何時候都更加堅定。

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 second-quarter earnings call. Q2 was a blockbuster period, as consumer sentiments swung widely in the quarter was a tariff war related news flow, and persistent economic uncertainties further pressure users' activities.

謝謝海勝。大家早安，晚上好。歡迎參加我們第二季的財報電話會議。第二季度是一個重磅時期，由於關稅戰相關的新聞不斷湧現，消費者信心在本季度大幅波動，持續的經濟不確定性進一步給用戶活動帶來了壓力。

Total net revenue for Q2 was RMB5.22 billion versus RMB4.69 billion in Q1 and RMB4.16 billion a year ago. Revenue from credit-driven services, capital heavy was RMB3.57 billion in Q2 compared to RMB3.11 billion in Q1 and RMB2.91 billion a year ago. The sequential growth was mainly due to the increases in on-balance sheet loans and year-on-year increase was driven by higher capital heavy loan volume.

第二季總淨收入為人民幣52.2億元，第一季為人民幣46.9億元，去年同期為人民幣41.6億元。第二季信貸驅動服務收入（資本密集）為人民幣35.7億元，第一季為人民幣31.1億元，去年同期為人民幣29.1億元。環比成長主要得益於表內貸款增加，較去年成長則得益於資本密集型貸款規模的增加。

Overall funding cost percentage further declined modestly Q on Q as ABS contribute a larger portion of our total fundings in Q2. Revenue from Platform Services capital light was RMB1.65 billion in Q2 compared to RMB1.58 billion in Q1 and RMB1.25 billion a year ago. The year-on-year growth was mainly due to strong contributions from IC and other value-added service, more than offsetting the decline in capitalized loan facilitation.

由於第二季資產支持證券化業務在我們總融資中的佔比有所提升，整體融資成本佔比上季進一步小幅下降。第二季平台服務輕資本化收入為人民幣16.5億元，而第一季為人民幣15.8億元，去年同期為人民幣12.5億元。年成長主要得益於積體電路及其他加值服務的強勁貢獻，足以抵銷資本化貸款促成業務的下降。

Platform service accounted for roughly 51% of our quarter ending loan balance. We made timely adjustment to the business mix in Q2 as we expect to continue to do so in the coming months as market dynamics may change rapidly due to the regulatory updates.

平台服務約佔本季末貸款餘額的51%。我們在第二季度及時調整了業務組合，並預計未來幾個月將繼續調整，因為市場動態可能會因監管更新而迅速變化。

During the quarter, average IRR of the loans we originated and/or facilitated was 21.4% flat Q on Q. Looking forward, we expect pricing to be fluctuate around this level for the coming quarters.

本季度，我們發放和/或促成的貸款平均內部收益率 (IRR) 為 21.4%，環比持平。展望未來，我們預計未來幾季的定價將在此水準附近波動。

Sales and marketing expenses increased 12% Q on Q. The increase was mainly due to larger volume contribution from API channels in both new and existing users.

銷售和行銷費用較上季成長 12%。成長的主要原因是新用戶和現有用戶的 API 管道貢獻量增加。

We added approximately 1.79 million new credit line users in Q2 versus 1.54 million in Q1. We will continue to adjust 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.

我們第二季新增信用額度用戶約179萬，而第一季新增用戶為154萬。鑑於宏觀經濟情勢波動，未來幾個月我們將持續調整新增用戶獲取節奏，進一步優化用戶獲取管道，提升用戶參與度與留存率。

90-day delinquency rate was 1.97% in Q2 compared to 2.02% in Q1. Day one delinquency was 5.1% in Q2 versus 5.0% in Q1. 30-day collection rate was 87.3% in Q2 versus 88.1% in Q1. C-M2, which represent the outstanding delinquency rate after 30 days collection increased modestly Q on Q to 0.64%. And in part due to the mix change in the business, while overall portfolio risk increased modestly in the last couple of quarters and still well within our targeted range.

第二季90天拖欠率為1.97%，而第一季為2.02%。第二季首日拖欠率為5.1%，而第一季為5.0%。第二季30天收款率為87.3%，而第一季為88.1%。 C-M2（代表30天收款後的未償拖欠率）較上季小幅上升至0.64%。部分原因是業務組合的變化，而整體投資組合風險在過去幾季略有上升，但仍在我們的目標範圍內。

As we have gradually timing risk control standard to deal with the recent change in the market, we start to see marginal improvement in new loans quality. We will remain vigilant to manage overall risk exposure, particularly given the latest macro uncertainties.

隨著我們逐步調整風險控制標準以應對近期市場變化，我們開始看到新增貸款品質略有改善。我們將繼續保持警惕，以管理整體風險敞口，尤其是在近期宏觀經濟不確定因素的影響下。

At the same time, we continue to take a conservative approach to book provisions against potential credit loss. Total new provisions for risk-bearing loans in Q2 were approximately RMB2.5 billion versus RMB2.23 billion in Q1. The increase in new provision was mainly due to increase in loan -- risk-bearing loan volume Q on Q and near historical high provision booking ratio. Write-backs of previous provisions were approximately RMB1.18 billion in Q2 versus RMB1.14 billion in Q1.

同時，我們繼續採取保守的策略來提列潛在信用損失撥備。第二季風險類貸款新增自撥總額約為人民幣25億元，而第一季為人民幣22.3億元。新增撥備的增加主要由於貸款（風險類貸款）規模較上季成長，以及撥備率接近歷史高點。第二季已撥回的前期撥備約為人民幣11.8億元，而第一季為人民幣11.4億元。

Provision coverage ratio, which is defined as total outstanding provision divided by total outstanding delinquent risk-bearing loan balance between 90 and 180 days remained near historical high at 662% in Q2.

撥備覆蓋率（即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）在第二季仍接近歷史高位，為662%。

Non-GAAP net profit was RMB1.85 billion in Q2 compared to RMB1.93 billion in Q1. Please note, in Q2, we booked RMB170 million loss associated with the currency derivative instrument related to our CB issuance partially offset by approximately RMB108 million foreign exchange gains. Also, in Q1, we will benefit by approximately RMB188 million tax rebate whereas in Q2, tax rebate was only approximately RMB26 million.

第二季非公認會計準則淨利為人民幣18.5億元，第一季為人民幣19.3億元。請注意，第二季我們計入了與發行可轉債相關的貨幣衍生工具損失人民幣1.7億元，但約人民幣1.08億元的匯兌收益部分抵銷了這一損失。此外，第一季我們將獲得約人民幣1.88億元的退稅，而第二季的退稅僅為2,600萬元左右。

Non-GAAP net income per fully diluted ADS was RMB13.63 in Q2 compared to RMB13.53 in Q1 and RMB9.16 a year ago as strong earnings growth and the proactive share repurchase created significant EPADS accretion.

第二季非美國通用會計準則每股美國存託憑證攤薄淨利潤為 13.63 元人民幣，而第一季度為 13.53 元人民幣，去年同期為 9.16 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 Q2, total outstanding ADS share count was approximately RMB132.4 million compared to RMB134.5 million at the end and RMB148.8 million a year ago.

第二季末，流通在外的 ADS 股本總額約為 1.324 億元人民幣，而本季末為 1.345 億元人民幣，去年同期為 1.488 億元。

Effective tax rate for Q2 was 19.3% compared to our typical ETR of approximately 15%. And the higher-than-normal ETR was mainly due to withholding tax provision related to the cash distribution from onshore to offshore. With higher contribution from capital heavy model, our leverage ratio which is defined as a risk-bearing loan balance divided by shareholders' equity was 2.8x in Q2, still near the low end of historical range.

第二季的實際稅率為19.3%，而我們通常的實際稅率約為15%。高於正常水準的實際稅率主要源自於與境內外現金分配相關的預扣稅撥備。由於資本密集模式的貢獻較高，我們的槓桿率（定義為風險承擔貸款餘額除以股東權益）在第二季為2.8倍，仍接近歷史低點。

We expect to see leverage ratio fluctuated around this level in the near future. We generate approximately RMB2.62 billion cash from operation in Q2. compared to RMB2.81 billion in Q1. Total cash and cash equivalent and short-term investment was RMB13.34 billion in Q2 compared to RMB14.03 billion in Q1. As we continue to generate strong cash flow from operations, we may deploy additional cash to support our business initiatives in the rapid changing market dynamic.

我們預期近期槓桿率將在此水準附近波動。第二季度，我們營運產生的現金約為人民幣26.2億元，而第一季為人民幣28.1億元。第二季現金及現金等價物及短期投資總額為人民幣133.4億元，第一季為人民幣140.3億元。隨著我們繼續產生強勁的營運現金流，我們可能會投入更多現金來支持我們在快速變化的市場環境中的業務發展。

We started to execute RMB458 million repurchase plan in January 1. As of August 14, 2025, we had in aggregate purchased approximately 7.1 million ADS in the open market for a total amount of approximately USD277 million, inclusive of commissions at an average price of USD38.9 per ADS. The pace of the repurchase is consistent with the timeline.

我們於2025年1月1日開始執行4.58億元的回購計畫。截至2025年8月14日，我們已在公開市場累計回購約710萬股美國存託憑證（ADS），總金額約2.77億美元（含佣金），平均回購價格為每股ADS 38.9美元。回購節奏與計畫時間線一致。

Given the increased uncertainty ahead, we may continue to execute our buyback programs opportunistically in the near term, and in the long run, we are still committed to deliver industry-leading returns to our shareholders. In accordance to our current dividend policy, our Board has approved the dividend of USD0.38 per Class A ordinary share or USD0.76 per ADS for the first half of 2025 to the holders of record of Class A ordinary share and ADS as of close of business on September 8, 2025, Hong Kong and New York time, respectively.

鑑於未來不確定性增加，我們可能會在短期內繼續適時執行回購計劃，而從長遠來看，我們仍致力於為股東帶來行業領先的回報。根據我們目前的股利政策，董事會已批准向截至2025年9月8日香港時間及紐約時間收盤時登記在冊的A類普通股和美國存託憑證持有人派發2025年上半年每股A類普通股0.38美元或每股美國存託憑證0.76美元的股息。

Finally, regarding our business outlook. Given the persistent economic uncertainty and fast-changing market dynamic, we will continue to take a prudent approach in business planning for the rest of 2025 and and focus on enhancing efficiency of our operation. For the third quarter of 2025, the company expects to generate non-GAAP net income between RMB1.6 billion and RMB1.8 billion. This outlook reflects the company's current and preliminary view, which is subject to material changes.

最後，關於我們的業務展望。鑑於持續的經濟不確定性和快速變化的市場動態，我們將繼續在2025年剩餘時間內採取審慎的業務規劃，並專注於提升營運效率。公司預計2025年第三季的非公認會計準則淨利潤將介於人民幣16億元至人民幣18億元之間。此展望反映的是公司目前的初步預測，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.

好了，我的發言就到此結束。接線員，我們現在可以回答一些問題了。

(Operator Instructions) Richard Zuo, Morgan Stanley.

（操作員指示）摩根士丹利的 Richard Zuo。

(spoken in foreign language)

（用外語說）

I'll also translate the question. First of all, what's the management's latest outlook on the loan volume growth. Are we seeing any signs of potentially rebound in the consumer loan demand compared to particularly we start up the year?

我來翻譯一下這個問題。首先，管理階層對貸款額成長的最新展望是什麼？與年初相比，我們是否看到消費貸款需求可能出現反彈的跡象？

Secondly, what's the latest news on the take rate? Any areas performing better than expected? Do we expect the take rate to remain at determine level over the next several years? If any change, what will be the factors that are driving those changes?

其次，關於接受率的最新消息是什麼？有哪些領域表現優於預期？我們預計未來幾年接受率會維持在確定的水平嗎？如果有變化，推動這些變化的因素是什麼？

Thank you, Richard. Let me take your first question, and Alex can take your second one. For the customer demand, a few days ago, PBOC released the latest financial data for July. From January to July, short-term household loans decreased by RMB383 billion, which is quite unusual and shows that consumer confidence and credit demand remains soft.

謝謝理查德。我來回答您的第一個問題，亞歷克斯可以回答您的第二個問題。關於消費需求，幾天前，中國人民銀行公佈了7月最新的金融數據。 1-7月，居民短期貸款減少了3,830億元人民幣，相當不尋常，顯示消費者信心和信貸需求仍然疲軟。

Meanwhile, government has introduced policies to subsidize consumer loans. This should help lift credit demand, but it will take time to see any meaningful impact. From what we are seeing day to day, the situation is broadly in line with the [mecon] data. Effective demand for our products remains soft at the moment. and we haven't seen a clear sense of recovery. Recent industry adjustments have also made it harder for some users to get loans. This has driven up demand from this group, but most of them does not meet our risk standards.

同時，政府推出了消費貸款補貼政策。這應該有助於提振信貸需求，但要看到任何實質效果仍需時日。從我們日常觀察來看，情況與[mecon]的數據大致相符。目前，我們產品的有效需求仍然疲軟，而且我們還沒有看到明顯的復甦跡象。近期的行業調整也使一些用戶獲得貸款變得更加困難。這推高了這類用戶的需求，但他們中的大多數人並不符合我們的風險標準。

In the second half of the year, given the regulatory uncertainty and ongoing industry adjustments, we will put risk management as our top priority. We will take a more cautious approach through our loan origination and facilitation, which could mean some pullback in Q3. By Q4, we should have a clearer view once the new rules are implemented.

鑑於下半年監管的不確定性和持續的行業調整，我們將把風險管理視為首要任務。我們將在貸款發放和促成業務方面採取更加謹慎的態度，這可能導致第三季業務有所回落。到第四季度，新規實施後，我們應該能對未來有更清晰的認識。

Okay, Richard, I will take the second part of your question. Our Q2 take rate was 5.4%. If you calculate based on our guidance for Q3, basically, you're talking about around 5% take rate. This is still quite consistent with what we have been saying the beginning of the year. And I think that outlook doesn't really change at this point.

好的，理查德，我來回答你問題的第二部分。我們第二季的佣金率為5.4%。如果根據我們對第三季的預期來計算，佣金率基本上約為5%。這與我們年初所說的情況仍然相當一致。我認為目前這個前景並沒有太大改變。

However, there's still some near-term volatility, in particular related to the new regulation being effective on October 1. So it's still hard to say how and when these new regulations will be implemented. So the impact from the regulation to the take rate is hard to predict at this point in time. So that's kind of in the near term.

然而，短期內仍存在一些波動，尤其是與10月1日生效的新規有關。因此，目前還很難確定這些新規將如何以及何時實施。因此，目前很難預測該規對佣金率的影響。所以，這還只是短期內的事情。

But longer term, after this new round of a regulatory change, we're expecting the market being cleaned up, meaning the long-tail portion being kind of clean out of the market, whereas the industry getting to the more consolidated stage, the competition and other factors will become more rational. And overall, will be sort of beneficial to the long-term operation as well as the take rate.

但從長遠來看，新一輪監管改革之後，我們預期市場將得到淨化，長尾部分將被清除出市場，產業將進入更整合的階段，競爭和其他因素也將更加理性。總體而言，這將有利於長期營運和盈利率。

I think regardless how the regulatory changes will be the demand is still there in terms of the segment of a current customer. And we, in the history, has proved that we're one of the best in terms of operations in this segment regarding the funding, the customer acquisition, the efficiency and the risk management.

我認為，無論監管如何變化，就現有客戶群而言，需求仍然存在。而且，我們的歷史經驗已經證明，在融資、客戶獲取、效率和風險管理方面，我們在該領域的營運表現名列前茅。

These are our advantage. In the past, we have been through many rounds of the regulatory adjustment in every single one of those times, we emerged more health there and stronger, I don't think this will be the exception this time around.

這些都是我們的優勢。過去，我們經歷了多輪監管調整，每一次調整都讓我們變得更健康、更強大，我想這次也不會例外。

Lincoln, JPMorgan.

林肯、摩根大通。

(spoken in foreign language)

（用外語說）

Okay. Now, I'm going to translate my questions. So the first one is a follow-up on the new regulation. So what would be the estimated impact of the new regulation on our ICE business? And what is our current strategy and regarding the products under the 24% plus benefit loan products. And after the official implementation in October, will there be any impact on the competitive landscape and customer acquisition costs for the product that's priced within 24%.

好的。現在我要翻譯我的問題。第一個問題是關於新規的後續問題。新規預計會對我們的ICE業務產生什麼影響？我們目前的策略是什麼？以及關於24%以上福利貸款產品的產品策略是什麼？ 10月正式實施後，對於24%以內定價的產品，競爭格局與客戶獲取成本會受到什麼影響？

And my second question is about our overseas expansion. So what are the main considerations of the company when we select the target market? And in the UK, so could management please provide more details on how we have -- how the progress is going? And are we trying to grow organically or partnering with some local players?

我的第二個問題是關於我們的海外擴張。那麼，公司在選擇目標市場時主要考慮哪些因素？在英國，管理階層能否提供更多關於我們進展的細節？我們是嘗試有機成長，還是與一些本地公司合作？

Okay. Thank you, Lincoln about the regulatory. First, I want to say that we see the new rules that is a positive for the industry. There may be some near-term adjustments. But over the longer term, they should improve the overall health and the sustainability for the sector.

好的。謝謝林肯關於監管方面的問題。首先，我想說，我們認為新規對產業有利。短期內可能會有一些調整，但從長遠來看，這些調整應該會改善整個產業的健康和永續性。

We could see a healthier system with less intense competition, lower marketing and risk costs and better user retention. We were commenting that to promote fair competition. This will benefit companies with stronger technology capabilities. Smaller players without such advantage will gradually exit the market, allowing the stronger ones to capture a larger share of the market.

我們可以看到一個更健康的體系，競爭不那麼激烈，行銷和風險成本更低，用戶留存率更高。我們之前評論說，這是為了促進公平競爭。這將有利於技術實力更強的公司。缺乏這種優勢的小型企業將逐漸退出市場，讓實力更強的企業佔更大的市場份額。

Second, regarding ICE, it is positioned as a referral service. We refer users to smaller platforms or financial institutions based on users' risk profile and the risk advertised for the institutions. For this business, we don't participate in the pressing or risk decisions. ICE helps meet certain user needs and also deliver good returns for financial institutions. Although there is still some uncertainty around the final details of the new policy, we have already conducted a comprehensive assessment and the prepared different alternative plans.

其次，關於ICE，它的定位是推薦服務。我們會根據用戶的風險狀況以及機構宣傳的風險，將用戶推薦給規模較小​​的平台或金融機構。對於這項業務，我們不參與催收或風險決策。 ICE有助於滿足特定用戶需求，同時也為金融機構帶來良好的回報。儘管新政策的最終細節仍存在一些不確定性，但我們已經進行了全面評估，並制定了不同的替代方案。

For the users referred through ICE, we currently see a sufficient safety buffer and solid returns. We can actually serve these users under our own balance sheet. Capital-heavy and capital light loan presentation models. We expect our take rates will remain healthy after this transition. We have prepared a few Plan B options and we are evaluating them with our financial partners. We will explore all fiscal plans and ensure that our approach will balance our user experience with long-term business sustainability.

對於透過ICE推薦的用戶，我們目前擁有充足的安全緩衝和穩健的回報。我們實際上可以在自己的資產負債表下為這些用戶提供服務。我們採用重資本和輕資本的貸款呈現模式。我們預計，在此次轉型後，我們的貸款利率將保持健康。我們已經準備了一些B計劃方案，並正在與金融合作夥伴進行評估。我們將探索所有財務計劃，並確保我們的方法能夠平衡用戶體驗和長期業務可持續性。

As the official implementation date approach, we will keep a close dialogue with regulators and financial institutions to make sure our business stay compliant.

隨著正式實施日期的臨近，我們將與監管機構和金融機構保持密切對話，以確保我們的業務保持合規。

At this point, we don't yet know exactly how the new rules will be rolled out, and we will not make bet on policy direction. We always see technology and operations as our core drivers. We believe it's best to focus on things that don't change, the areas that can help enhance our tech capabilities in the long term. In this industry, companies come and go.

目前，我們還不清楚新規將如何實施，我們也不會對政策方向進行押注。我們始終將技術和營運視為核心驅動力。我們認為，最好專注於那些不會改變的事情，那些能夠長期提升我們技術能力的領域。在這個行業裡，公司來來去去。

In the end, the ones that remain may not be the biggest but they will be the ones with real technology and a strong commitment to serving users. That's how we have always operated and that's how we will continue to operate. The industry has been through many rounds of adjustments, and each time, we have proven our ability to navigate each cycle and thrive in a better way.

最終，留下來的企業或許不是規模最大的，但一定是那些擁有真正技術、並堅定致力於服務用戶的企業。我們一直以來都是如此，也將繼續如此。這個行業經歷了多輪調整，每一次，我們都證明了我們有能力駕馭每個週期，並以更好的方式蓬勃發展。

And for the second question about overseas expansion. Our vision is to become one of the most respected fintech companies globally. The overseas expansion is a very important part of our strategy for the next few years. When choosing a target market, we look at several factors, including the regulatory environment, openings to fintech innovation and financial infrastructure. So first, the financial industry needs to be regulated.

第二個問題是關於海外擴張的。我們的願景是成為全球最受尊敬的金融科技公司之一。海外擴張是我們未來幾年策略中非常重要的一部分。在選擇目標市場時，我們會考慮幾個因素，包括監管環境、金融科技創新的開放程度以及金融基礎設施。首先，金融業需要受到監管。

It will provide a clear framework for what can't and can be done, issuing fair competition. That's why we focus on markets with relatively stable regulatory systems. Second, we also look at the local fintech access system and the weather regulators encourage innovation. In such market, we can learn from the experience of early players and leverage our unit strength to expand the market together. Third, we also look closely at how mature the local financial infrastructure is.

它將為哪些事情可以做、哪些事情不能做提供一個清晰的框架，從而促進公平競爭。正因如此，我們專注於監管體系相對穩定的市場。其次，我們也會關注當地金融科技的進入製度以及監理機構鼓勵創新的程度。在這樣的市場，我們可以從早期參與者的經驗，並利用我們各自的優勢共同拓展市場。第三，我們也會密切關注當地金融基礎設施的成熟度。

Our advantage is applying AI and big data technology to evaluate user risk more accurately and provide different products and pricing -- and so a solid infrastructure is critical. In the UK, we have only taken a big step so far, monthly loan volume are still very small compared to our overall portfolio.

我們的優勢在於運用人工智慧和大數據技術更精準地評估用戶風險，並提供差異化的產品和定價——因此，堅實的基礎設施至關重要。在英國，我們目前才邁出了一大步，每個月的貸款金額與我們的整體投資組合相比仍然很小。

What matters more for us at this stage is and during our understanding of local market and refining our risk models. This naturally involves a process of trial and error. So we will take our time and move forward cautiously.

現階段，對我們來說更重要的是了解本地市場並完善風險模型。這自然需要一個反覆試驗的過程。因此，我們會循序漸進，謹慎前進。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(spoken in foreign language) So I'll translate my question. So my first question is about asset quality. So we have a slight uptick in the ratio in Q2. Could you give us some color on drivers? And how it has been a trend so far in July and August.

（外語）我來翻譯一下我的問題。我的第一個問題是關於資產品質的。第二季度，該比率略有上升。能否介紹一下驅動因素？以及截至目前7月和8月的趨勢如何？

Also looking ahead in the coming months, how should we expect the C2 to evolve along with the implementation of the new regulation?

展望未來幾個月，我們該如何預期 C2 將隨著新法規的實施而發展？

So second question is regarding your Q3 earnings guidance, so we have seen there's some Q-on-Q decline and you also implied a wider range than before. So what are the underlying function that we are adopting such as volume asset quality and loan mix.

第二個問題是關於您第三季的獲利預期，我們看到環比有所下降，而且您也暗示了比之前更大的幅度。那麼，我們採用的底層指標是什麼呢？例如，資產品質和貸款組合。

(spoken in foreign language)

（用外語說）

(interpreted) okay. Thanks for your question, Alex. Let me do the translation. In Q2, our day 1 delinquency rate remained relatively stable, but the collection rate decreased from 88.1% in Q1 to 87.3%, and our C2M2 came in at around 0.64%, slightly higher than 0.60% in Q1. Breaking it down, there were several reasons.

（翻譯）好的。謝謝你的提問，Alex。我來翻譯一下。第二季度，我們的首日拖欠率保持相對穩定，但回收率從第一季的 88.1% 下降到 87.3%，我們的 C2M2 約為 0.64%，略高於第一季的 0.60%。具體來說，有幾個原因。

So first, for embedded finance business, the risk level of our embedded finance business increased, and these channels also made up a larger share of our total loan volume in Q2. For us, managing risk metrics for this business isn't just about keeping them as low as possible. It is about striking the balance between the competitiveness and the risk performance also keeping a healthy margin of safety.

首先，對於嵌入式金融業務而言，我們嵌入式金融業務的風險水準有所上升，這些管道在我們第二季的總貸款額中所佔的份額也更大。對我們來說，管理這項業務的風險指標不僅僅是將其保持在盡可能低的水平，而是要在競爭力和風險績效之間取得平衡，並保持健康的安全邊際。

So in Q2, we actually made a number of targeted adjustments. We improved the conversion rate for channels with a higher safety margin and tightened risk standards for those with a lower margin. These adjustments are all about to make a proper margin. So right now, all our channels are running within a reasonable buffer range.

所以在第二季度，我們實際上做了一些針對性的調整。我們提高了安全邊際較高的通路的轉換率，並收緊了邊際較低通路的風險標準。這些調整都是為了確保邊際的合理性。所以目前，我們所有通路的運作都在合理的緩衝範圍內。

(interpreted) so for the ad business, we will break it down into new and existing loan book. the risk level for existing loan book through our app also increased though to a lesser extent than that in embedded finance. The primary reason is the new rules issued in April which had led to a tighter liquidity for some platforms. Overall, industry risks on the rest are mainly reflecting a slight decline in the collection rate metrics in Q2. For the new loans, the rate levels through our app came down in Q2.

（解讀）因此，對於廣告業務，我們將其細分為新增貸款和現有貸款。透過我們應用程式的現有貸款的風險水平也有所上升，但幅度小於嵌入式金融。主要原因是4月發布的新規導致部分平台流動性收緊。總體而言，其餘業務的行業風險主要反映了第二季催收率指標的略微下降。對於新增貸款，透過我們應用程式的利率水準在第二季度有所下降。

In April and May, the early risk indicator on FD30 was down about 9% from Q1. in June, given the potential impact of funding liquidity on the risk performance, we further optimized our risk management and asset distribution strategies to keep funding supply stable and improve risk metrics.

四月和五月，FD30的早期風險指標較第一季下降了約9%。六月份，考慮到資金流動性對風險表現的潛在影響，我們進一步優化了風險管理和資產配置策略，以保持資金供應穩定並改善風險指標。

So for the new loan in June, since the performance of LPD-30 hasn't completed yet, -- so we will look at another leading indicator for risk metrics, which is FPD 7. We noted it has further declined by approximately 5% compared to May. Since July and August, due to industry concerns over the implementation of new rules, funding supply has tightened further, keeping the overall risk performance in the sector under pressure.

對於6月的新貸款，由於LPD-30的表現尚未完成，我們將關注另一個風險指標的領先指標，即FPD 7。我們注意到，與5月份相比，該指標進一步下降了約5%。自7月和8月以來，由於業界對新規實施的擔憂，資金供應進一步收緊，導致該行業的整體風險表現持續承壓。

In response, we have been making coordinated efforts across both pre-loan and post loan management processes. On the preloan side, we have enhanced the A4 and B scores predictive power by incorporating variables generated by multimodal AI agents, which simultaneously -- while we simultaneously tighten risk control policies to reduce risk exposure in new transactions to respond for the impact from the new rule implementation.

為此，我們一直在貸前和貸後管理流程中協調努力。在貸前方面，我們透過整合多模態人工智慧代理產生的變量，增強了A4和B評分的預測能力。同時，我們同時收緊風險控制政策，以降低新交易的風險敞口，應對新規實施帶來的影響。

On the post loan side, on the fifth of July, we implemented enhancements to our collection strategies and operations. for the (inaudible) from July 16 and July 28, the 16-day collection rate is performed on par with that in the same period of June. Further refinement was introduced in early August, which have been proven effective so far. The seven day collection rate has improved by 1 percentage point compared to the average of the same period of June and July.

在貸後方面，我們於7月5日實施了改進的催收策略和營運措施。 （聽不清楚）從7月16日至7月28日，16天催收率與6月同期持平。 8月初我們進一步改進了催收措施，目前已證明效果顯著。 7天催收率與6月和7月同期的平均值相比提高了1個百分點。

Finally, we have always been prudent with booking provisions. This quarter, our new provisions worth about 5% of our new risk berry loans. -- well above our historical vintage loss. Our provision coverage ratio in Q2 reached 662%, also near a record high. Thus, our financial position remains highly robust with ample cushion to manage potential risks.

最後，我們始終謹慎計提撥備。本季度，我們新增撥備約佔新增風險資產貸款的5%，遠高於我們歷史同期的損失。第二季度，我們的撥備覆蓋率達到662%，也接近歷史最高水準。因此，我們的財務狀況依然穩健，擁有充足的緩衝來管理潛在風險。

We have been through many challenges before and we have always responded quickly and effectively for the every single time. This time, we are still confident that we can keep the risk well within a reasonable range.

我們之前經歷過很多挑戰，每次都能快速有效地應對。這次，我們仍然有信心將風險控制在合理的範圍內。

Alex, I will take your second part of the question. As you know, with these new regulatory rules come into effect soon, the industry is actually going through quite a bit of adjustment. And as we mentioned in previous comments, this may lead to tightening liquidity and volatility in the risk for the entire industry. That's the reason why we decided to further tightening the risk management control on top of what we have did in Q2.

Alex，我來回答你問題的第二部分。正如你所知，隨著這些新的監管規則即將生效，整個行業實際上正在經歷相當大的調整。正如我們之前的評論中提到的，這可能會導致整個行業的流動性收緊和風險波動性加劇。這就是為什麼我們決定在第二季的基礎上進一步加強風險管理控制的原因。

Because of that, you probably will see a modest decline in the loan volume in Q3 versus Q2 there. And in terms of loan mix, I think we -- the current assumption is that because of regulatory change, you may continue to see movement from ICE to other segments of our business.

因此，你可能會看到第三季的貸款金額較第二季略有下降。就貸款組合而言，我認為——目前的假設是，由於監管變化，你可能會繼續看到從ICE轉向我們業務其他部門的貸款。

That's one kind of force behind that. But at the same time, because we are controlling -- we're timing the overall risk management control, so the other segment may also see some sequential decline as well. So at the end of the day, there's a good chance the mix will shift from the light to the heavy side and -- but not in any large magnitude matter.

這是背後的一種力量。但同時，由於我們正在控制——我們正在掌控整體風險管理控制的時間，所以其他部分也可能會出現一些環比下降。所以最終，資產組合很有可能從輕倉轉向重倉──但幅度不會很大。

So that's the mix change. Because of the mix change, as you know, the capital heavy side of a mix typically has the higher revenue recognition percentage, but slower revenue recognition pace versus the light part of the mix. So that's why these two forces also will play a role in terms of overall revenue and the profitability kind of booking there. And then from a risk perspective, as we can see from the July and August risk level, you probably still continue to see some upward movement in terms of risk Q3 versus Q2, but very modest, well within our controlled range.

這就是業務組合的變化。如您所知，由於業務組合的變化，資本密集型業務通常具有更高的收入確認百分比，但收入確認速度會比資本密集型業務慢。因此，這兩股力量也會對整體收入和獲利能力產生影響。從風險角度來看，正如我們從7月和8月的風險水準中看到的那樣，第三季的風險水準可能仍會相對於第二季有所上升，但幅度非常小，完全在我們的可控範圍內。

And in -- because of that, we will continue to book very heavily on the provision. And certainly, we'll continue to have a huge amount of write-back as we do in every other quarters there. Other key elements for the financials, for example, the pricing, the funding cost and the customer acquisition, I would say will probably be relatively stable versus Q2.

正因如此，我們將繼續大量提列撥備。當然，我們將繼續進行大量的撥備回撥，就像我們在其他季度一樣。其他財務關鍵要素，例如定價、融資成本和客戶獲取，我認為與第二季相比可能相對穩定。

Emma Xu, Bank of America Securities.

美國銀行證券公司的 Emma Xu。

(spoken in foreign language) So I have a question about the buyback. So what is the current progress of the share buyback. As the company's stock price has significantly retreated from its high, do you have plan to increase the scale of your buyback?

（外語）我有一個關於回購的問題。那麼，股票回購目前的進展如何？鑑於公司股價已從高點大幅回落，你們是否有計劃增加回購規模？

Sure, Emma. Let me take this one. So as I mentioned earlier, so far to this date, we already -- the RMB450 million program will execute RMB277 million exactly on time in terms of time line. Combined with what we did associated with the CB issuance, this year, so far, we already spent over USD500 million in the (inaudible) and it's already exceeded the 2024 full year repurchase amount. In terms of share count reduction.

當然，艾瑪。我來接這個。正如我之前提到的，到目前為止，我們已經——4.5億元人民幣的計劃將按時完成2.77億元。加上我們發行可轉換債券的相關工作，今年到目前為止，我們已經在（聽不清楚）方面花費了超過5億美元，這已經超過了2024年全年的回購金額。就股份數量減少而言。

So far this year, we already repurchased about 12.2 million ADS, basically versus the beginning of the year, we reduced the share count by about 9% so far this year.

今年到目前為止，我們已經回購了約 1,220 萬股 A​​DS，與年初相比，今年到目前為止我們的股票數量減少了約 9%。

Obviously, there's a lot of things going on in terms of macro environment and also in terms of regulatory uncertainties, there could be -- that could induce the additional volatility in the market. We will take more in some flexible pace in terms of manage the buyback to basically enhance the capital allocation efficiency. And as I mentioned earlier, in the long run, we are still committed to deliver the industry-leading shareholder returns through the sustainable growth as well as a sustainable shareholder return program.

顯然，宏觀環境和監管方面的不確定性都存在著許多因素，這些因素可能會引發市場進一步波動。我們將採取更靈活的節奏來管理回購，以從根本上提高資本配置效率。正如我之前提到的，從長遠來看，我們仍然致力於透過永續成長和永續股東回報計劃，實現業界領先的股東回報。

Cindy Wang, China Renaissance.

Cindy Wang，中華復興。

(spoken in foreign language) So this year, the total ABS in first half, the issuance amount has been matched the full year if we look at the second half of this year, so what's the ABS issuance target in 2025? And And also because ABS issuance increase, do you see there's any funding cause room to further go down in second half of this year?

（外語）那麼，今年上半年的ABS總量，如果從下半年來看，已經和全年持平了。那麼2025年的ABS發行目標是多少呢？而且，由於ABS發行量的增加，您認為下半年融資成本還有進一步下降的空間嗎？

Okay. Thank you, Cindy. I'm glad you mentioned this topic. This year, supported by government policies to boost consumption, the market environment for consumer finance ABS issuance has been quite favorable. The issuance pace has also picked up.

好的。謝謝Cindy。很高興你提到這個主題。今年在政府消費促進政策的支持下，消費金融ABS的發行市場環境比較好，發行節奏也加快了。

In the first half of 2025, our ABS issuance reached about RMB14.4 billion, up about 45% from the same period last year. That's already close to the full year level in 2024. And now insurance costs have also decreased further through a record low. As we mentioned before, ABS issue tend to be seasonal.

2025年上半年，我們的ABS發行量約為人民幣144億元，較去年同期成長約45%。這已經接近2024年全年的水平。目前，保險成本也進一步下降，創下歷史新低。正如我們之前提到的，ABS的發行往往具有季節性。

In the first half, demand and liquidity are usually stronger. So we make the most of that window to accelerate issuance. In the second half, liquidity is generally tighter, so we will balance insurance costs and slow the pace a bit. That means the trend of our funding cost will also be influenced by the pace of our ABD issuance. For the full year of 2025, we expect our total ABS solutions will grow by over 30%.

上半年的需求和流動性通常較為強勁。因此，我們會充分利用這個視窗期來加快發行速度。下半年，流動性通常會收緊，因此我們會平衡保險成本，並稍微放慢發行速度。這意味著我們的融資成本趨勢也將受到資產支持證券 (ABD) 發行速度的影響。我們預計，2025 年全年，我們的資產支持證券 (ABS) 解決方案總量將增加 30% 以上。

As a percentage of ABS in our funding mix increases, we expect our funding cost in 2025 to decrease meaningfully compared to 2024.

隨著我們融資結構中 ABS 的比例增加，我們預計 2025 年的融資成本將較 2024 年大幅下降。

That concludes our question-and-answer session. I'll now hand back to management for closing remarks.

我們的問答環節到此結束。現在，我將把發言權交還給管理階層，請他們發表結束語。

Okay. Thank you again for everyone to join the conference call. If you have additional questions, feel free to contact us off-line. Thank you. Have a good day.

好的。再次感謝大家參加電話會議。如果您還有其他問題，請隨時離線與我們聯絡。謝謝。祝您愉快。

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

謝謝。今天的會議到此結束。感謝您的參與。現在可以斷開連線了。

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.

本記錄中標註（翻譯）的部分由現場翻譯人員朗讀。該翻譯人員由本次活動的贊助商提供。