X Financial (XYF) 2025 Q3 法說會逐字稿

Hello, and welcome to the X Financial third quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加 X Financial 2025 年第三季財報電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Victoria Yu. Please go ahead.

現在我將把會議交給維多利亞·於。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining today's call. The company's financial results were released earlier today and are available on our Investor Relations website at ir.xiaoyinggroup.com.

謝謝接線生。大家好，感謝各位參加今天的電話會議。本公司財務表現已於今日早些時候發布，可在我們的投資者關係網站 ir.xiaoyinggroup.com 上查閱。

On the call today from X Financial are Mr. Kan Li, President; Mr. Frank Fuya Zheng, Chief Financial Officer; and Mr. Noah Kauffman, Chief Financial Strategy Officer. Mr. Li will start with a brief overview of our business progress and financial performance. Then Mr. Kauffman will go over some Q3 metrics and highlights. After that, Mr. Zheng will share updates on financials, regulatory insights and our 2025 outlook. Afterwards, Mr. Li, Mr. Zheng and Mr. Kauffman will be available to answer your questions during the Q&A session.

今天出席電話會議的 X Financial 代表有：總裁李侃先生；財務長鄭福亞先生；以及財務策略長諾亞考夫曼先生。李先生將首先簡要概述我們的業務進展和財務表現。接下來，考夫曼先生將介紹第三季的一些指標和亮點。之後，鄭先生將分享財務方面的最新進展、監管方面的見解以及我們對 2025 年的展望。之後，李先生、鄭先生和考夫曼先生將在問答環節回答您的問題。

I remind you that this call may contain forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and involve known or unknown risks, uncertainties and other factors. These factors are difficult to predict and many are beyond the company's control, which may cause actual results, performance or achievements to differ materially from those described in these statements. Further information on these and the other risks can be found in our SEC filings. The company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required by law.

我提醒各位，本次通話可能包含1995年《私人證券訴訟改革法案》安全港條款下的前瞻性聲明。此類聲明是基於管理層目前的預期，並涉及已知或未知的風險、不確定性及其他因素。這些因素難以預測，而且許多因素超出公司的控制範圍，這可能導致實際結果、績效或成就與這些聲明中所描述的內容有重大差異。有關這些風險和其他風險的更多信息，請參閱我們向美國證券交易委員會提交的文件。除法律另有規定外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

It is now my pleasure to introduce Mr. Kan Li.

現在我榮幸地向大家介紹闔立先生。

Thank you, Victoria, and hello, everyone. The third quarter of 2025 marked a very different phase for our business compared with the strong momentum we experienced in the first half of the year. After a record performance in Q2, we deliberately moderated our growth pace to navigate a more regulated and disciplined operating environment. During the quarter, we facilitated and originated RMB33.64 billion in loans representing an 18.7% increase year-over-year, but 13.7% decline sequentially from the previous quarter. This moderation was intentional as we prioritized asset quality and risk management over near-term volume expansion.

謝謝你，維多利亞，大家好。與上半年強勁的發展勢頭相比，2025 年第三季標誌著我們業務進入了一個截然不同的階段。在第二季取得創紀錄的業績之後，我們有意放緩了成長速度，以適應更規範和自律的經營環境。本季度，我們促成和發放貸款336.4億元人民幣，年增18.7%，但季減13.7%。我們有意採取這種節制措施，因為我們優先考慮資產品質和風險管理，而不是短期交易量的擴張。

Our team remained focused on maintaining prudent risk discipline while serving qualified borrowers and protecting portfolio health, enhancing our technology platform, data analytics and underwriting precision to improve decision-making and efficiency, strengthening partnerships and operational process to support long-term scalability under evolving regulatory standard.

我們的團隊始終專注於保持審慎的風險紀律，同時服務合格的借款人並保護投資組合的健康，增強我們的技術平台、數據分析和承保精準度，以提高決策和效率，加強合作夥伴關係和運營流程，以支持在不斷變化的監管標準下實現長期可擴展性。

We also continued improving borrower experiences by simplifying application flows, accelerating approval times and expanding transparency across our credit and repayment channel. At the same time, we refined our collection infrastructure and monitoring system to proactively managing credit risk and improve repayment outcomes. These initiatives allow us to better serve customers while protecting the platform's long-term stability.

我們也透過簡化申請流程、加快審批速度和提高信貸和還款管道的透明度，不斷改善借款人的體驗。同時，我們完善了催收基礎設施和監控系統，以主動管理信用風險並改善還款結果。這些措施使我們能夠更好地服務客戶，同時保障平台的長期穩定性。

Despite a softer operating backdrop, we maintained solid profitability and positive earnings. Total net revenue reached RMB1.96 billion, reflecting a 23.9% increase year-over-year though down 13.7% sequentially from Q2 record level. This performance demonstrates our ability to adapt quickly and maintain resilience through disciplined execution and operational control. Credit quality. We did observe early signs of credit pressure during the quarter, consistent with broader market trends.

儘管經營環境較為疲軟，我們仍維持了穩健的獲利能力和正收益。總淨收入達人民幣19.6億元，年增23.9%，但較第二季創紀錄水準較上季下降13.7%。這一表現證明了我們能夠快速適應變化，並透過嚴謹的執行和營運控制來保持韌性。信用品質。本季我們確實觀察到了信貸壓力的早期跡象，這與整體市場趨勢一致。

As of September 30, our 31 to 60-day delinquency rate rose to 1.85% compared with 1.16% at the end of Q2 and 1.02% a year ago. Our 91 to 180-day delinquency rate increased to 3.52%, up from 2.91% in Q2 and 3.22% in Q3 2024. This movement reflects a more cautious borrower environment and rising repayment stress among certain segments.

截至 9 月 30 日，我們的 31 至 60 天逾期率上升至 1.85%，而第二季末為 1.16%，一年前為 1.02%。我們的 91 至 180 天逾期率上升至 3.52%，高於 2024 年第二季的 2.91% 和第三季的 3.22%。這一趨勢反映出借款人環境更加謹慎，以及部分群體還款壓力不斷增加。

In response, we lightened our underwriting criteria reinforced collection effectiveness and expanded borrower engagement. While we expect conditions to remain challenging in the short term, these steps position us well to preserve asset quality and protect the long-term stability of our platform.

為此，我們放寬了承保標準，加強了催收效率，並擴大了與借款人的互動。儘管我們預計短期內情勢仍將充滿挑戰，但這些措施使我們能夠更好地維護資產品質並保障我們平台的長期穩定性。

With that, I'll now turn the call over to Noah, who will walk through additional financial and operational highlights from the third quarter. Noah?

接下來，我將把電話交給諾亞，他將介紹第三季的其他財務和營運亮點。諾亞？

Hello, everyone. It's great to speak with you again. As Kan mentioned, the third quarter required a measured approach following a very strong first half. We deliberately tempered origination growth to ensure prudent risk management and operational stability amid an evolving regulatory environment. I'll begin with an update on that context and then discuss our operational and financial positioning.

大家好。很高興再次與您交談。正如坎恩所說，在經歷了上半場的強勢表現之後，第三節需要採取更穩健的策略。在不斷變化的監管環境下，我們刻意放緩了貸款發放成長速度，以確保審慎的風險管理和營運穩定性。我先介紹一下相關背景，然後再討論我們的營運和財務狀況。

On the regulatory environment, China's fintech sector remains under close supervision with regulators continuing to prioritize consumer protection, transparency and responsible lending practices. During the quarter, authorities reiterated these objectives and discussed further measures to lower borrowing costs for consumers and promote more sustainable development across the online lending industry.

在監管環境方面，中國的金融科技業仍然受到嚴格監管，監管機構繼續優先考慮消費者保護、透明度和負責任的貸款行為。本季度，相關部門重申了這些目標，並討論了進一步降低消費者藉貸成本和促進線上借貸行業可持續發展的措施。

We fully support these efforts and continue to operate with a compliance-first mindset. While these changes may continue to exert pressure on industry pricing and profitability, we believe that a clearer and more consistent framework will ultimately favor disciplined, well-capitalized and transparent platforms. Our long-standing commitment to regulatory alignment and strong internal controls remains a core foundation of our business.

我們全力支持這些舉措，並將繼續秉持合規至上的原則來開展工作。雖然這些變化可能會繼續對行業定價和盈利能力造成壓力，但我們相信，更清晰、更一致的框架最終將有利於紀律嚴明、資金雄厚且透明的平台。我們長期以來對遵守監管規定和加強內部控制的承諾，仍然是我們業務的核心基礎。

On the operational overview, during the quarter, we facilitated RMB33.64 billion in loans, up 18.7% year-over-year and ended the period with RMB62.83 billion in outstanding loan balance, up 37.3% from last year. We facilitated approximately 3.48 million loans, representing a 32% increase year-over-year with an average loan size of RMB9,654. Our active borrower base was approximately 2.44 million, 14.4% lower sequentially, but 24.2% higher year-over-year. These figures demonstrate the resilience of our franchise even as we moderated new origination activity to preserve credit quality.

從營運概況來看，本季我們促成貸款336.4億元人民幣，較上年同期成長18.7%；截至本季末，未償貸款餘額為628.3億元人民幣，較上年同期成長37.3%。我們促成了約348萬筆貸款，年增32%，平均貸款額為人民幣9,654元。我們的活躍借款人數約為 244 萬，環比下降 14.4%，但年增 24.2%。這些數據表明，即使我們為了維持信貸品質而放緩了新的貸款發放活動，我們的特許經營權仍然具有韌性。

We refined our risk models, reduced exposure to lower tier channels and focused more heavily on established higher-quality borrower sources. We also continued to strengthen our AI-driven analytics to improve borrower identification and early delinquency detection. On financial positioning, from a financial perspective, the third quarter reflected the necessary adjustment phase following our record first half. Profitability remained positive but contracted sequentially as overall activity normalized. Year-over-year, revenue and earnings growth was supported by the scale achieved earlier in the year that we recognize that the operating environment will likely remain challenging for several quarters.

我們改進了風險模型，減少了對低層通路的投入，更注重成熟的高品質借款人來源。我們也持續加強人工智慧驅動的分析，以改善借款人識別和早期違約檢測。從財務角度來看，第三季反映了我們創紀錄的上半年業績之後必要的調整階段。獲利能力維持正值，但隨著整體經濟活動恢復正常，獲利能力較上季下降。與去年同期相比，營收和利潤成長得益於年初取得的規模，但我們也意​​識到，未來幾季的經營環境可能仍將充滿挑戰。

Our focus now is on cost efficiency and disciplined execution, ensuring that every aspect of our expense structure reflects today's more measured pace of activity. We also maintained a conservative capital position and ample liquidity. Our balance sheet continues to generate healthy cash flow and remains a source of strength for the organization. We are managing funding and capital deployment with caution, maintaining flexibility to adapt to any future regulatory or market adjustments. Our financial strategy remains centered on capital efficiency and long-term value preservation.

我們現在的重點是成本效益和嚴謹的執行，確保我們費用結構的各個方面都能反映出當今更加穩健的業務節奏。我們也維持了穩健的資本狀況和充足的流動資金。我們的資產負債表持續產生健康的現金流，仍是公司實力的來源。我們正在謹慎地管理資金和資本部署，保持靈活性以適應未來任何監管或市場調整。我們的財務策略仍以資本效率和長期價值保值為中心。

We continue to deliver returns on equity above 20%, supported by tight cost management and share repurchases that have reduced our outstanding share count. Even as industry conditions soften, we remain focused on stability, liquidity and financial discipline rather than pursuing growth at the expense of prudence.

我們透過嚴格的成本管理和股票回購減少了流通股數量，從而繼續保持 20% 以上的股本回報率。即使產業環境趨於緩和，我們仍將專注於穩定、流動性和財務紀律，而不是以犧牲審慎為代價來追求成長。

Looking ahead, our priorities remain clear: safeguard asset quality, strengthen liquidity and maintain financial resilience. The external environment may stay uncertain but our disciplined financial management and focus on operational control position X Financial to navigate continued volatility and adjust responsibly as the market evolves.

展望未來，我們的優先事項依然明確：保障資產品質、增強流動性、維持財務韌性。外部環境可能仍然不明朗，但我們嚴謹的財務管理和對營運控制的重視，使 X Financial 能夠應對持續的波動，並隨著市場的發展做出負責任的調整。

With that, I'll now hand the call over to Frank to discuss our financial performance in greater detail. Go ahead, Frank.

接下來，我將把電話交給弗蘭克，讓他更詳細地討論我們的財務表現。請繼續，弗蘭克。

Thank you, Noah. Hello, everyone. I will walk through our third quarter financial results and discuss our capital position and outlook. The financial highlights. In the third quarter of 2025, total net revenue was RMB1.96 billion, representing a 23.9% increase year-over-year, but a 13.7% decline from Q2. The year-over-year growth was supported by higher average loan balances and the carryover effect of prior facilitation activity, where the sequential decline reflect our intentional reduction in loan volumes.

謝謝你，諾亞。大家好。我將詳細介紹我們第三季的財務業績，並討論我們的資本狀況和前景。財務亮點。2025年第三季度，淨收入總額為人民幣19.6億元，年增23.9%，但較第二季下降13.7%。年比增速得益於平均貸款餘額的增加以及先前貸款促進活動的延續效應，而同比增速的下降則反映了我們有意減少貸款規模。

Income from operations was RMB331.9 million down 29.9% year-over-year and 46.4% sequentially, primarily due to higher provision for credit losses and a guarantee liability. Our operation margin was 18.5% compared with 29.7% in Q2 and 32.2% a year ago. Net income came in at RMB421.2 million, up 12.1% year-over-year, but down 20.2% sequentially. Non-GAAP adjusted net income was RMB438.2 million, up 1% from last year and down 26.1% from Q2. Basic and diluted earnings per ADS were RMB10.56 and RMB10.08 respectively, while return on equity stood at 21.5%.

營業收入為人民幣3.319億元，年減29.9%，季減46.4%，主要原因是信貸損失準備增加和擔保負債增加。我們的營業利益率為 18.5%，而第二季為 29.7%，去年同期為 32.2%。淨利為人民幣4.212億元，年增12.1%，但季減20.2%。非GAAP調整後淨利為人民幣4.382億元，較上年同期成長1%，較第二季下降26.1%。每股美國存託憑證基本收益和稀釋收益分別為人民幣10.56元和人民幣10.08元，而股本回報率為21.5%。

These results reflect the impact of higher provision and lower volume, but also show that our core business remains profitable and cash generative despite a more cautious operational environment.

這些結果反映了撥備增加和交易量減少的影響，但也表明，儘管經營環境更加謹慎，我們的核心業務仍然盈利且能產生現金流。

Balance sheet liquidity. Our balance sheet remains strong. Total assets stood at RMB14.69 billion, up 26.4% year-over-year and the total shareholders' equity was RMB7.93 billion, up 15% year-over-year. We ended the quarter with approximately RMB1.55 billion in cash and restricted cash, providing ample liquidity to support operations and capital returns.

資產負債表流動性。我們的資產負債表依然穩健。總資產為人民幣146.9億元，較去年成長26.4%；股東權益總額為人民幣79.3億元，較去年成長15%。本季末，我們持有約人民幣15.5億元的現金及受限現金，為營運和資本回報提供了充足的流動性。

Capital returned to the shareholders. From January 1, 2025, through November 20, 2025, X Financial repurchased an aggregate of approximately RMP 4.26 million ADS, including approximately 3.80 million ADS and 2.76 million Class A ordinary shares, for a total consideration of approximately $67.9 million under its share repurchase program. The company now has approximately $48 million remaining under its existing $100 million share repurchase plan, which is effective through November 30, 2026.

資本返還給股東。從 2025 年 1 月 1 日至 2025 年 11 月 20 日，X Financial 根據其股票回購計劃，共回購了約 426 萬股美國存託股份 (ADS)，其中包括約 380 萬股 A​​DS 和 276 萬股 A​​ 類普通股，總對價約為 6790 萬美元。該公司目前在其現有的 1 億美元股票回購計畫下還剩下約 4,800 萬美元，該計畫有效期至 2026 年 11 月 30 日。

This program underscores the company's confidence in its long-term growth outlook and its commitment to enhancing the shareholder value. Repurchases under the program remains subject to market conditions and other factors and may be modified or suspended at the management's discretion.

該計劃凸顯了公司對其長期成長前景的信心以及提升股東價值的承諾。該計劃下的股票回購仍受市場狀況和其他因素的影響，管理層可酌情修改或暫停該計劃。

Outlook for Q4 2025. Based on current trends, X Financial expects the total loan amount facilitated and originated in the fourth quarter of 2025 to be in the range of RMB21 billion to RMB23 billion. The total loan amount facilitated and originated for the full year 2025 is expected to be in the range of RMB128.82 billion to RMB130.8 billion.

2025年第四季展望。根據目前的趨勢，X Financial 預計 2025 年第四季促成和發放的貸款總額將在人民幣 210 億元至人民幣 230 億元之間。預計2025年全年促成並發放的貸款總額將介於人民幣1,288.2億元至人民幣1,308億元之間。

This guidance reflects a measured pace of origination following the sequential decline in the third quarter and the management's continued focus on asset quality, credit discipline and the probability optimization rather than aggressive volume expansion. The company remains attentive to evolving regulatory landscape and the changing credit conditions while maintaining confidence in resilient borrower demand, prudent risk control and disciplined execution to support sustained long-term growth.

這項指導意見反映了繼第三季環比下降之後，貸款發放速度趨於平穩，以及管理層繼續專注於資產品質、信貸紀律和機率優化，而不是激進地擴張貸款量。公司密切關注不斷變化的監管環境和信貸狀況，同時對借款人強勁的需求、審慎的風險控制和嚴謹的執行充滿信心，以支持持續的長期成長。

With that, I hand the call back to our President, Kan Li for closing remarks.

接下來，我將電話交還給我們的總裁閔立，請他致閉幕詞。

Thank you, Frank. The third quarter marked a period of recalibration for our company. We have made a deliberate choice to prioritize quality and discipline over near-term growth, ensuring our platform remains resilient amid a changing operating landscape. While we expect challenges to persist in the coming quarters, we remain confident in our ability to navigate them with prudence, maintain profitability and position X Financial for steady, sustainable performance over time.

謝謝你，弗蘭克。第三季是我們公司調整重組的時期。我們經過深思熟慮，選擇優先考慮品質和紀律，而不是短期成長，以確保我們的平台在不斷變化的營運環境中保持韌性。儘管我們預計未來幾季仍將面臨挑戰，但我們仍有信心謹慎應對這些挑戰，保持獲利能力，並使 X Financial 在未來實現穩定、可持續的業績成長。

This concludes our prepared remarks. We will now open the call for questions. Operator, please go ahead.

我們的發言稿到此結束。現在開始接受提問。操作員，請開始。

(Operator Instructions) Chen Yang, Runjian.

（操作員指示）陳陽，潤健。

So my first question is around the take rate guidance. So the management has provided guidance on the fourth quarter loan origination volume, which is quite 30% lower than prior levels. What would be the expected take rate for the fourth quarter given the current risk situation which may be stabilizing or deteriorating in the past week or so or the past two months.

所以我的第一個問題是關於成交率指導。因此，管理層對第四季度貸款發放量給出了預期，比之前的水平下降了30%。鑑於當前風險情勢（過去一周左右或過去兩個月內可能趨於穩定或惡化），第四季度的預期成交率是多少？

And my second question is around the capital allocation. So given the business volume is already lower since the third quarter and maybe even further reduced in the coming years, the return on equity may drop significantly in the future. So is the company considering returning more capital to shareholders and keep the company running on a smaller book while higher capital efficiency?

我的第二個問題是關於資金配置的。鑑於自第三季以來業務量已經下降，未來幾年可能還會進一步下降，未來股本回報率可能會大幅下降。那麼，該公司是否考慮向股東返還更多資本，並在維持較小帳面規模的同時提高資本效率？

So I will also translate my question in Chinese, if that would help.

如果用中文翻譯我的問題會有幫助的話，我也會把我的問題翻譯成中文。

(spoken in foreign language)

（用外語說）

This is Frank. I'll answer your take rate question and let Kan answer your return on capital question. Noah will take a capital return question. You start to see the effect of impact of this so-called new regulation in the third quarter a little bit. But I think the full impact will not be fully realized in another quarter two or so. So I think at this time, whatever talking about next year regarding even take rate is very premature, and we have a very wide guess gap. But we also did not never disclosure to take rate before. So we are not going to do that.

這是弗蘭克。我會回答你的收益率問題，讓 Kan 來回答你的資本報酬率問題。諾亞將回答一個關於資本報酬率的問題。第三季開始，你開始看到這項所謂新規的影響有所顯現。但我認為，其全部影響可能還需要再過兩個季度左右才能完全顯現。所以我覺得現在談論明年的普及率還為時過早，我們對此的猜測差距非常大。但我們之前也從未披露過採取這種做法。所以我們不會那樣做。

But I will say that, I think that this new regulatory regime will have a material negative impact on everything on volume, on margin, on profitability, and take rate is part of a effect of profitability. So you will -- you will -- you can assume the take rate will have a material negative impact in the future. That's I can -- at the best I can discuss with you.

但我認為，這種新的監管制度將對銷售、利潤率、獲利能力等各個方面產生實質的負面影響，而佣金率是獲利能力影響的一部分。所以你可以假設，未來接受率將產生實質的負面影響。這就是我所能和你討論的全部了。

Noah, do you want to have a second question to answer?

諾亞，你想回答第二個問題嗎？

Thanks, Chen, for the question. So on capital return. Capital return remains an important part of our strategy. We've been making active share repurchases, buying approximately [$67.9 million] through November 20. And as Frank mentioned before, we still have about $48 million remaining under the $100 million authorization, which runs through November 2026. We'll continue to use the program in a disciplined manner subject to market conditions, and we view repurchases at current valuation levels and attractive investment in our own business.

謝謝陳的提問。所以，關於資本回報。資本回報仍然是我們策略的重要組成部分。截至 11 月 20 日，我們一直在積極回購股票，已購買約 6,790 萬美元。正如弗蘭克之前提到的，在 1 億美元的授權範圍內，我們還有大約 4,800 萬美元剩餘，該授權有效期至 2026 年 11 月。我們將繼續根據市場情況，以嚴謹的方式使用該計劃，我們認為在目前的估值水平上進行回購是對我們自身業務的有吸引力的投資。

On the dividends, of course, we maintain a recurring dividend and based on the current profitability profile, even with the industry-wide margin pressure that Frank just spoke to, we expect to be able to maintain and sustain the dividend at the current level. We believe having sufficient -- we believe we have sufficient earnings power and balance sheet strength to support that commitment.

關於股息，我們當然會維持經常性股息，並且根據目前的盈利狀況，即使像弗蘭克剛才提到的那樣，整個行業的利潤率都面臨壓力，我們也預計能夠將股息維持在目前的水平。我們相信我們擁有足夠的獲利能力和資產負債表實力來支持這項承諾。

And more broadly, just in terms of how we think about capital allocation, the Board regularly evaluates optimal capital allocation, including balancing organic growth, share repurchases and dividends. And so today's share price buybacks, I think, still remain a compelling use of capital, but we remain open-minded and focused on whichever option delivers the highest long-term value for shareholders.

更廣泛地說，就我們對資本配置的思考方式而言，董事會定期評估最佳資本配置，包括平衡內生成長、股票回購和股利。因此，我認為，如今的股票回購仍然是資本的一種有效利用方式，但我們仍保持開放的心態，專注於能夠為股東帶來最高長期價值的任何選擇。

So in summary, we intend to continue executing the buyback program prudently, maintain the current dividend and allocate capital in the way that best supports sustainable growth for shareholders.

總而言之，我們打算繼續謹慎地執行股票回購計劃，維持目前的股息水平，並以最有利於股東可持續增長的方式分配資本。

Joseph Martelli, Spark Capital.

約瑟夫·馬泰利，Spark Capital。

How does the team view the regulatory environment going ahead into early 2026? And may we have more color on the uptick in delinquencies?

團隊如何看待 2026 年初的監管環境？我們能否更詳細地了解青少年犯罪率上升的原因？

I'll take that question. I think, again, it's very difficult to forecast what the regulators will do in the future. So our approach has always been just be compliant with whatever regulations specified. So that being said, what we saw right now is regulators are very focused -- very focused on the consumer protection.

我來回答這個問題。我認為，再次強調，很難預測監管機構未來會採取什麼行動。所以我們一直以來的做法就是遵守所有規定的條款。綜上所述，我們目前看到的是監管機構非常重視──非常重視消費者保護。

So our approach has -- considering that we have lowered our loan volume, that we are not aggressively growing our portfolio in the sense that we are trying to shrink our portfolio a bit in order to making sure that we are not generating a lot of complaints from our side. I think that's probably what we can do at this moment. Sorry, what's your -- I think you have the -- can you repeat second part of it?

因此，我們採取的方法是——考慮到我們已經降低了貸款規模，我們並沒有積極擴大我們的投資組合，而是試圖稍微縮小我們的投資組合，以確保我們不會因此收到很多投訴。我覺得這大概是我們目前能做的了。抱歉，你的──我想你有──你能再說一次後半部嗎？

I was asking about the delinquencies, the uptick in them and how we might see that continuing?

我當時問的是青少年犯罪率上升的情況，以及這種趨勢可能會如何持續下去？

Yes. I think we do. Yeah, I think whenever there's a huge impact on the industry and especially considering that the overall economy in China right now is not at the greatest time. So I think it's natural for us to see an uptick in the portfolio delinquency. I think that's what we're experiencing right now.

是的。我認為我們確實如此。是的，我認為每當產業受到巨大衝擊時，尤其考慮到目前中國整體經濟狀況並不樂觀。所以我認為，投資組合違約率上升是正常的。我認為這就是我們目前正在經歷的。

Our forecast, again, the forecast future is very difficult for us, but we do think that the delinquency rate will continue to climb. So Frank just mentioned that we think it's going to take 1 or 2 quarters for it to stabilize. So even though that we are not sure when it's going to stabilize. And our approach can only be that we are trying to be very stringent in our credit policy. That is why you see our portfolio scale begin to drop.

我們再次預測，預測未來對我們來說非常困難，但我們認為違約率將繼續攀升。弗蘭克剛才提到，我們認為需要一到兩個季度才能穩定下來。所以即便如此，我們也不確定它何時才能穩定下來。我們只能採取非常嚴格的信貸政策。這就是為什麼你會看到我們的投資組合規模開始下降的原因。

Let me just say a few more words. On the redisclosure of 91 days and 180 days delinquency rate for the Q3 is like 3.52%, which is higher than previous quarter 2.91% and the previous 3.22%. So it's higher than previous quarter, higher than last year. We have been -- everyone is having -- trying to -- everyone's best -- to its best to control it. By the time we try -- the delinquency rate is still developing, still not stabilized yet.

讓我再補充幾句。第三季 91 天和 180 天逾期率的重新揭露為 3.52%，高於上一季的 2.91% 和前一季的 3.22%。所以它比上一季高，也比去年同期高。我們一直在——每個人都在——努力——每個人都盡了全力——盡力控制它。等我們嘗試的時候——違約率仍在發展，尚未穩定下來。

But we believe maybe in a month or two, it should be stabilized. Unless there's more negative impact from the new measures were coming up. Otherwise, we fully anticipate within like one or two months, delinquency rate will be stabilized very soon in one or two months. I hope that will add some color to your question.

但我們相信，或許一兩個月後，情況應該會穩定下來。除非新措施還會帶來更多負面影響。否則，我們完全預期在一兩個月內，違約率很快就會穩定下來。希望這能為你的問題增添一些色彩。

(Operator Instructions)

（操作說明）

Joseph, if I could just add a little bit to what Frank and Kan have already said just on the delinquency side. So -- of course, we see higher delinquencies in Q3 consistent with the broader industry environment. The macro backdrop has been challenging, and that's affected borrower repayment behavior across multiple segments in response. Of course, we've tightened the underwriting standard and shifted further towards higher-quality borrowers and intensified our collection and verification process. These actions basically give us confidence that we can appropriately -- will be appropriately reserved for current delinquencies and potential losses.

Joseph，關於青少年犯罪方面，我能否在 Frank 和 Kan 已經提到的內容上補充一點？因此——當然，我們看到第三季的違約率上升，這與整個產業環境相符。宏觀環境充滿挑戰，這也影響了多個領域借款人的還款行為。當然，我們已經收緊了承保標準，進一步轉向更高品質的借款人，並加強了催收和核實流程。這些措施基本上讓我們有信心，我們可以適當地——將會適當地——將資金用於應對當前的違約行為和潛在的損失。

But I think a key point that both Frank and Kan were pointing to is that the loans typically have a duration of 10 to 12 months. And so when delinquencies rise in a particular period, those vintages generally run off within a few quarters and the newer vintages originated under the tighter underwriting become a larger share of the book. The result is a natural credit cycle effect where you have elevated delinquencies from prior vintages working through the system.

但我認為弗蘭克和坎都指出的一個關鍵點是，貸款期限通常為 10 到 12 個月。因此，當某一時期違約率上升時，這些年份的貸款通常會在幾個季度內到期，而根據更嚴格的承保規定產生的較新的貸款則在貸款總額中佔比更大。其結果是自然信貸週期效應，即以前年份遺留的高額違約貸款正在系統中逐步顯現。

And then, performance gradually reverts towards historical norms as the tightened vintages season. The entire industry is, of course, in a contractionary phase with most platforms tightening risk criteria and pulling back from higher-risk segments.

然後，隨著年份酒的成熟，酒莊的表現逐漸恢復到歷史正常水準。當然，整個產業正處於收縮階段，大多數平台都在收緊風險標準，並退出高風險領域。

While this environment can temporarily put pressure on borrowers and repayment behavior, it also sets the foundation for better quality vintages going forward. So as the older weaker vintages mature and exit the portfolio, we expect credit metrics to gradually normalize over the medium term. The near-term volatility is still possible and presumably likely. Our focus remains on prudent underwriting and disciplined portfolio management and strong collections, and we will continue to provision conservatively and manage the book to ensure losses remain within our tolerance.

雖然這種環境可能會暫時給借款人和還款行為帶來壓力，但它也為未來更高品質的葡萄酒奠定了基礎。因此，隨著較老、較弱的年份債券到期並退出投資組合，我們預期信用指標將在中期內逐步恢復正常。短期內市場波動仍然可能發生，而且很可能發生。我們將繼續專注於審慎的承保、嚴謹的投資組合管理和強有力的收款，並將繼續保守地提列準備金和管理帳簿，以確保損失保持在我們可承受的範圍內。

That's all for me, but thanks for the question, Joseph.

我的問題就這些了，謝謝你的提問，約瑟夫。

(Operator Instructions) Ramzi, NTS Trading.

（操作員說明）Ramzi，NTS Trading。

I have two questions. Well, the first one is given the concerns around the credit quality, I'm curious if any of the funding partners have reduced their funding commitments or changed or structured their terms. And then the second question, which I think, Noah, you did go over, but I want to know if management -- or what would it take for management to consider being more aggressive on the share buyback program, just given the depressed price? And have you guys ever considered anything such as an accelerated share purchase program? That is all yes.

我有兩個問題。首先，鑑於對信用品質的擔憂，我很好奇是否有任何融資夥伴減少了他們的融資承諾，或改變或調整了他們的條款。第二個問題，我想諾亞，你已經談到了，但我想知道，鑑於股價低迷，管理層是否會考慮在股票回購計劃上採取更積極的措施？你們有沒有考慮過加速股票買進計畫之類的措施？是的，就這些了。

This is Noah. Thanks very much for your question. So I guess, first to the first part on the funding and liquidity. Our funding and liquidity position remains stable. As of September, we held about RMB1.5 billion in total cash and restricted cash which provides a solid liquidity buffer for our operations. We manage liquidity conservatively and maintain sufficient cash to support near-term needs across servicing, collection and platform operations.

這是諾亞。非常感謝您的提問。所以我想，首先要談談資金和流動性的問題。我們的資金和流動性狀況保持穩定。截至9月份，我們持有約15億元的現金和受限現金，為我們的營運提供了充足的流動性緩衝。我們以保守的方式管理流動性，並維持充足的現金，以支援服務、收款和平台營運的近期需求。

On the funding side, we work with a diverse network of institutional partners, including banks and licensed consumer finance companies that originate loans through the platform. And these relationships have been built over many years, and the vast majority of our partners have completed the required regulatory white listing and continue to operate with us normally.

在資金方面，我們與多元化的機構合作夥伴網路合作，包括銀行和持牌消費金融公司，這些公司透過該平台發放貸款。這些合作關係是經過多年建立起來的，我們絕大多數的合作夥伴都已完成必要的監管白名單程序，並繼續與我們正常合作。

Regarding our actual funding costs, we did see a general rise in funding rates from 2024 into 2025, in line with the broader industry trends. However, on a quarter-to-quarter basis, funding costs have been relatively stable, and we've not experienced any material disruption in accessing funding. And so looking ahead, as regulatory implementation becomes clear and both banks and platforms adapt fully to the new framework, we're hopeful that the funding costs will gradually normalize from the elevated levels seen this year.

關於我們的實際融資成本，我們確實看到融資率從 2024 年到 2025 年普遍上升，這與更廣泛的行業趨勢一致。然而，從季度來看，資金成本相對穩定，我們在獲取資金方面沒有遇到任何實質的中斷。因此，展望未來，隨著監理實施逐漸明朗，銀行和平台也全面適應新框架，我們希望融資成本能從今年的高點逐步恢復正常。

Basically, clarity and consistency in the regulatory environment should also help reduce risk premiums over time. So we'll continue to maintain prudent liquidity management, keeping adequate cash reserves and coordinating closely with funding partners and ensuring our platform remains compliant and attractive from a risk management standpoint. As far as what would motivate us to do a more aggressive buyback. I don't know, Frank, do you have any comments on that?

從根本上講，監管環境的清晰性和一致性也有助於隨著時間的推移降低風險溢價。因此，我們將繼續保持審慎的流動性管理，保持充足的現金儲備，與融資夥伴密切協調，確保我們的平台在風險管理方面保持合規性和吸引力。至於是什麼會促使我們採取更積極的股票回購策略。我不知道，弗蘭克，你對此有什麼看法嗎？

Yeah. We have almost continuously to do the buyback in this year from May 2025 all the way down to late November. And we did most of buybacks from open market. We still believe the buyback is the best way to return shareholder value. But the result is not that great.

是的。從 2025 年 5 月到 11 月下旬，我們幾乎需要持續進行股票回購。而且我們大部分的股票回購都是透過公開市場進行的。我們仍然認為股票回購是回報股東價值的最佳方式。但結果並不理想。

And currently, our stock is a little bit higher, maybe 50%, 60% higher than the same period last year. But a lot of our peers, their stock is already below last year's period. But almost everyone, the balance sheet is more strong than -- at this time, the balance sheet is more strong than the same time last year.

目前，我們的股價略高，可能比去年同期高出50%到60%。但我們許多同業的股價已經低於去年同期水準。不過，幾乎所有公司的資產負債表都比去年同期更穩健。

So I think the market is assuming we're not just -- don't have -- the stock price tells us the market believe us probably do not even have a future. And also, we will waste our money in our hand and just waste it. Otherwise, not make anything new. But I think that is not the belief we have. We think we have -- we can -- we believe we can do both. We can take care of the shareholder return and maybe do something new. And whether Chinese cash loan market is totally dead or not, once again, we will have that judgment to maybe a little bit long, maybe in another quarter or two.

所以我認為市場認為我們並非──不──股價告訴我們，市場相信我們可能根本沒有未來。而且，他們還認為我們會把錢浪費掉，白白浪費掉，否則就無法創造任何新東西。但我認為我們並不這麼認為。我們相信我們能夠做到——我們能夠做到——我們相信我們能夠做到兩者兼顧。我們既可以保障股東回報，也可以嘗試一些新的東西。至於中國現金貸款市場是否徹底消亡，我們可能還需要一段時間才能做出判斷，也許還需要一兩個季度。

But I think even with that new regulatory regime, I think we are -- we still have -- at least we still have cash to do something new, right, to try something new. So that's regarding the buyback. And also, I'd say it again, we are -- as Noah already said, we are determined to maintain the current dividend rate which is $0.28 for 2 times in a year. So based on current stock price, $9, it is a 6% yield. So I think even without buyback, it's a decent return for the shareholder.

但我認為，即便在新監管環境下，我們仍然——至少我們仍然有足夠的現金去做一些新的事情，嘗試一些新的東西。這就是關於股票回購的問題。而且，我還要再說一遍，正如諾亞之前所說，我們決心維持目前的股息率，即每年兩次，每次0.28美元。所以，以目前的股價9美元計算，收益率是6%。所以我覺得即使不進行股票回購，對股東來說也是不錯的回報。

It's better than you put the money in the banks, right? And so that's our thinking. We will continue to do and we will maybe rely on more next year, rely more on the dividend side instead on the buyback side. And that's what I try to say. Thank you.

總比把錢存銀行強，對吧？這就是我們的想法。我們將繼續這樣做，明年我們可能會更加依賴分紅而不是股票回購。這就是我想表達的意思。謝謝。

Just to add on really quickly to what -- I think as the valuation became deeply disconnected from the fundamentals of the stock trades at levels that imply excessive credit or regulatory risk relative to our performance. Buybacks would become the highest return on capital. But I think as it stands, historically, it's always a trade-off between ROIC from organic growth versus share repurchases versus dividends. Hope that answers your question.

我只想快速補充一點——我認為，隨著估值與股票基本面嚴重脫節，目前的交易水平意味著相對於我們的業績而言，存在過高的信用風險或監管風險。股票回購將成為資本報酬率最高的投資方式。但我認為，從歷史角度來看，這始終是在有機成長帶來的投資報酬率、股票回購和分紅之間進行權衡。希望這能解答你的疑問。

We can say too now, right now, the markets are pricing that isn't the case. But it's just a matter of what makes the most sense for X via --

我們現在也可以說，就目前而言，市場定價並未反映出這種情況。但這只是對 X 而言最合理的方案的問題——

This concludes our question-and-answer session. I would like to turn the conference back over to Victoria Yu for any closing remarks.

問答環節到此結束。現在我將會議交還給維多利亞·於女士，請她作閉幕致詞。

Thank you, everyone, for joining us today. If you have additional questions, please reach out to our Investor Relations team directly. We appreciate your interest and look forward to speaking with you again soon. Operator, back to you.

感謝各位今天蒞臨。如有其他疑問，請直接聯絡我們的投資者關係團隊。感謝您的關注，期待盡快與您再次交流。接線員，請接通。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議到此結束。感謝各位參加今天的報告。您現在可以斷開連線了。