Yiren Digital Ltd (YRD) 2025 Q1 法說會逐字稿

Good day, and welcome to the first-quarter 2025 Yiren Digital conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加宜人數字2025年第一季電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Keyao He. Please go ahead.

現在我想將會議交給何克堯。請繼續。

Thank you, operator. Good morning and good evening, everyone. Today's call features the presentation by the Founder, Chairman, and CEO of CreditEase, our CEO, Mr. Ning Tang; and our CFO, Mr. Yuning Feng. Our incoming CFO, Mr. William Hui will join us for the Q&A session after the prepared remarks.

謝謝您，接線生。大家早安，晚上好。今天的電話會議由宜信創辦人、董事長兼執行長、我們的執行長唐寧先生和我們的財務長馮宇寧先生進行演講。我們即將上任的財務長 William Hui 先生將在準備好的發言後參加我們的問答環節。

Before beginning, we will ask to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provision of US Private Securities Litigation Reform Act of 1995. Such statements affected risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any such statements. Further information regarding future risks, uncertainties, or factors is included in our filings with the US Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under the relevant laws.

在開始之前，我們想提醒您，本次電話會議中的討論包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。此類聲明影響風險、不確定性和因素，可能導致實際結果與此類聲明中的結果有重大差異。有關未來風險、不確定性或因素的更多資​​訊包含在我們向美國證券交易委員會提交的文件中。我們不承擔根據相關法律要求更新任何前瞻性陳述的義務。

During the call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and set of operating performance. These non-GAAP financial measures are not intended to be concerned in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For information about these non-GAAP measures and reconciliations to GAAP measures please refer to our annual press release.

在電話會議中，我們將參考某些非公認會計準則財務指標和補充指標來檢視和設定營運績效。這些非公認會計準則財務指標並非旨在孤立地關注或取代根據美國公認會計準則編制和呈現的財務資訊。有關這些非 GAAP 指標以及與 GAAP 指標的對帳信息，請參閱我們的年度新聞稿。

I will now pass over to Ning for opening remarks.

現在請寧總書記致開幕詞。

Thank you all for joining our earnings conference call today. We are pleased to report another solid and healthy quarter, reflecting the strength of our technology transformation strategy, which focuses on sustainable growth, operational efficiency, technology innovation, and international expansion.

感謝大家參加我們今天的收益電話會議。我們很高興地報告本季業績又一個穩健成長的季度，這反映了我們專注於永續成長、營運效率、技術創新和國際擴張的技術轉型策略的實力。

Our core business benefits from domestic economic similar policies that boost consumption and expand credit access, creating sector-wide opportunities. Through our strategic focus on attracting and serving high-quality borrowers, combined with ongoing integration of advanced technology across our support, we are well positioned to capitalize on these favorable conditions and confident in maintaining our growth momentum through 2025.

我們的核心業務受惠於國內類似的經濟政策，這些政策促進消費、擴大信貸管道，創造了全行業的機會。透過我們的策略重點吸引和服務優質借款人，並結合我們支援過程中不斷整合的先進技術，我們完全有能力利用這些有利條件，並有信心在 2025 年之前保持成長勢頭。

Before discussing our operations in detail, I would like to share our interpretation of the new rules on loan facilitation business issued by China's National Financial Regulatory Administration in early April this year. Under the new rules, commercial banks are required to adopt a formal wide list of mechanism for fintech partnerships and comply with standardized financing cost structures. Under the new regulatory framework, we anticipate accelerated consolidation in China's online lending industry due to stricter compliance requirements.

在詳細討論我們的營運之前，我想先分享一下我們對今年4月初中國國家金融監督管理委員會發布的貸款撮合業務新規的解讀。根據新規，商業銀行必須建立正式的金融科技合作機制，並遵守標準化的融資成本結構。在新的監管框架下，由於合規要求更加嚴格，我們預期中國網路借貸產業將加速整合。

While smaller platforms may face pressure in maintaining partnerships with funding sources, major platforms like ours are gaining dominance through compliance advantages and technological strength. Looking ahead, risk management capabilities, regulatory compliance, and the differentiated product pricing capabilities will become critical competitive differentiators, and those are precisely the areas where we are strategically building our operational add.

雖然較小的平台可能面臨與資金來源維持合作關係的壓力，但像我們這樣的大型平台正透過合規優勢和技術實力獲得主導地位。展望未來，風險管理能力、法規遵循以及差異化產品定價能力將成為關鍵的競爭優勢，而這些正是我們策略性地建立營運附加價值的領域。

Now, let me go through our business highlights for this quarter. First, on our financial services business. In the first quarter of 2025, loan volume facilitated reached RMB15.2 billion, representing a slight decline of less than 1% quarter-over-quarter, but a strong 28% increase year-over-year, demonstrating resilience amid seasonal headwinds. We project the double-digit growth in loan volume for the second quarter of this year, attributable to three key growth drivers.

現在，讓我來介紹一下本季的業務亮點。首先，關於我們的金融服務業務。2025年第一季，貸款促成額達152億元人民幣，季減不到1%，但較去年同期強勁成長28%，在季節性逆風中展現韌性。我們預計今年第二季貸款量將實現兩位數成長，這得益於三個主要成長動力。

The first one is our growing repeat borrowing rate, which increased significantly to 74% in the first quarter of 2025 compared to 65% in the fourth quarter of 2024. Having successfully upgraded our customer base with higher quality borrowers, we are now focusing on increasing repeat borrowing within this premium segment. This strategic optimization allows us to grow our loan volume while improving customer acquisition cost efficiency, driving superior unit economics across our portfolio.

第一個是我們不斷成長的重複借款率，從 2024 年第四季的 65% 大幅上升至 2025 年第一季的 74%。在成功提升了我們的客戶群質量，增加了借款人的質量後，我們目前正致力於增加這一高端細分市場的重複借款。這種策略優化使我們能夠增加貸款量，同時提高客戶獲取成本效率，從而推動我們整個投資組合實現卓越的單位經濟效益。

Secondly, we have also broadened our traffic channel mix by adding three new partnerships this quarter, including collaborations with travel and lifestyle platforms. These partnerships are already contributing to our borrower acquisition and engagement.

其次，我們也透過本季增加三個新的合作夥伴關係擴大了我們的流量管道組合，包括與旅遊和生活方式平台的合作。這些合作關係已經對我們的借款人獲取和參與做出了貢獻。

Thirdly, we continue to see exceptional results from our AI-driven initiatives, which are a cornerstone of our operations. In April, our proprietary large language model, Zhiyu, received filing approval for commercial use, marking a key milestone in applying our AI technology to enhance marketing and engagement. During the first quarter of this year, Zhiyu generated over 550 advertising pieces in China and 20 video set; 200 advertising texts and 200 images in the Philippines, streamlining campaigns and boost impact.

第三，我們持續看到人工智慧驅動計畫的卓越成果，這是我們營運的基石。今年4月，我們自主研發的大型語言模式「知語」獲得商用備案批准，標誌著我們在應用人工智慧技術提升行銷和參與度方面取得了重要里程碑。今年第一季度，知魚在中國製作了超過 550 則廣告和 20 組影片；在菲律賓製作了 200 篇廣告文字和 200 張圖片，簡化了宣傳活動並提升了影響力。

Moreover, our AI marketing system continues to demonstrate strong performance. Firstly, our AI customer service handled over 30 million customers per month, boosting acquisition efficiency and cutting labor costs. Specifically, for existing customer operations in the fourth quarter of this year, our system serves over 20 million existing borrowers with advancement in semantic recognition and intense detection, enabling more meaningful and efficient interaction.

此外，我們的AI行銷系統持續表現出強勁的表現。首先，我們的AI客服每月服務客戶超過3000萬，提高了獲客效率，降低了人力成本。具體來說，在今年第四季的存量客戶營運中，我們的系統服務了超過2000萬的存量借款人，在語義識別和強度檢測方面取得了進步，實現了更有意義、更有效率的互動。

On average, customer interactions achieved 7.11 per session in the first quarter, up from 6.61 in the prior quarter, which further improved sales conversion. Furthermore, customer service efficiency has also seen concrete improvement. The 20-second call pickup rate has increased to 96% in the first quarter this year from 85% in the prior quarter, delivering a faster, more seamless customer experience, and reinforcing our commitment to high-quality service standards.

第一季平均每場顧客互動次數達到7.11次，高於上一季的6.61次，進一步提高了銷售轉換率。此外，客戶服務效率也得到了實際的提升。今年第一季度，20 秒接聽率已從上一季的 85% 提高至 96%，從而提供更快、更無縫的客戶體驗，並強化了我們對高品質服務標準的承諾。

Additionally, we have launched an AI-powered marketing prediction system, which enables personalized and precise customer profit. Meanwhile, our proprietary AI-driven internal customer service training platform is well received among our employees. It provides a variety of training services such as stimulations, AI-powered business freezing suggestion, real-time AI evaluation feedback, and AI-generated training reports, which has enhanced the agent communication quality and ensure compliance with operational standards.

此外，我們也推出了人工智慧行銷預測系統，實現個人化、精準的客戶利潤。同時，我們自主研發的人工智慧驅動的內部客戶服務培訓平台也受到了員工的一致好評。提供模擬訓練、AI業務凍結建議、即時AI評估回饋、AI生成訓練報告等多種訓練服務，提升座席溝通質量，確保符合營運標準。

Now, let's turn to the funding aspect. In the first quarter of 2025, we added four new institutional funding partners bringing our total number of funding sources to nearly 60. Meanwhile, our funding costs continued to decline by 9 basis points in March compared to December 2024, paving the way for our long-term high-quality growth.

現在，讓我們來談談資金方面。2025 年第一季度，我們增加了 4 個新的機構融資合作夥伴，使我們的融資來源總數達到近 60 個。同時，我們的融資成本在3月份較2024年12月繼續下降9個基點，為我們的長期高品質成長鋪平了道路。

Regarding our asset quality, risk indicators remain stable at historical lows in the first quarter of 2025. As of March 31, delinquency rates for loans past due for 1 to 30 days, 31 to 60 days, and the 61 to 90 days were 1.6%, 1.2%, and 1.2%, showing negligible fluctuation from the previous quarter. This stability reflects our commitment to maintaining high asset quality through rigorous risk management practices.

關於我們的資產質量，2025年第一季的風險指標保持穩定，處於歷史低點。截至3月31日，逾期1至30天、31至60天、61至90天的貸款拖欠率分別為1.6%、1.2%、1.2%，與上一季相比波動不大。這種穩定性反映了我們致力於透過嚴格的風險管理實務來維持高資產品質的承諾。

It's worth mentioning that AI has played a pivotal role in enhancing our asset management efficiency. Take loan collection work for instance. In the fourth quarter of 2025, 83% of day one delinquent cases, 29% of day two cases, and 28% day three cases in the domestic market were handled by AI collection robots, saving approximately RMB1.9 million monthly in labor costs. In the Philippines, AI collection strategies have reduced the complaint by 14% quarter-over-quarter, further improving our operational efficiency and service quality.

值得一提的是，人工智慧在提升我們資產管理效率方面發揮了關鍵作用。以貸款催收工作為例。2025年第四季，國內市場83%的第一天拖欠案件、29%的第二天拖欠案件和28%的第三天拖欠案件由AI收款機器人處理，每月節省約190萬元人民幣的人工成本。在菲律賓，AI收集策略使投訴量較上月減少了14％，進一步提高了我們的營運效率和服務品質。

Now, let's look at our overseas business, which continues to demonstrate strong momentum. In the first quarter of 2025, our loan volumes in the Philippines reached RMB123.7 million, representing a 74% growth compared to the fourth quarter of 2024 with new borrowers' loan facilitation up 108% quarter-over-quarter, taking the way for our continued growth in the next phase as we will drive up our repeat borrowing later this year.

現在，讓我們來看看我們的海外業務，它繼續表現出強勁勢頭。2025年第一季，我們在菲律賓的貸款金額達到1.237億元人民幣，較2024年第四季成長74%，新借款人的貸款便利度環比成長108%，為我們下一階段的持續成長鋪平了道路，因為我們將在今年稍後提高重複借款。

Looking ahead, we anticipate a double-digit growth in loan volume in the Philippines for the second quarter this year. Meanwhile, preparations for our expansion into Indonesia are progressing well with operations expected to launch in the second half of 2025.

展望未來，我們預計今年第二季菲律賓的貸款量將達到兩位數成長。同時，我們向印尼擴張的準備工作進展順利，預計將於 2025 年下半年開始營運。

We are also leveraging AI to optimize marketing, enhanced intent recognition, and reduce costs further supporting our international growth. With that said, AI remains central to our strategy. In addition to using AI in our operations, we are expanding our AI ecosystem through investments in AI technologies and exploring potential acquisition opportunities globally. These efforts support collaboration while building up innovation and time to market.

我們也利用人工智慧來優化行銷、增強意圖識別並降低成本，進一步支持我們的國際成長。話雖如此，人工智慧仍然是我們策略的核心。除了在營運中使用人工智慧之外，我們還透過投資人工智慧技術來擴展我們的人工智慧生態系統，並在全球範圍內探索潛在的收購機會。這些努力支持協作，同時促進創新和上市時間。

Now, going to our insurance business. Our insurance corporate market continues to face headwinds due to regulatory tightening and the market contraction, particularly in the life insurance segment. In the fourth quarter of 2025, our total premiums reached RMB801.8 million, with revenue of RMB71.5 million, reflecting a sharp decline of 12% and 43% year-over-year, in line with broader industry trends.

現在，談談我們的保險業務。由於監管收緊和市場萎縮，我們的保險公司市場繼續面臨阻力，尤其是在人壽保險領域。2025年第四季，我們的總保費達到人民幣8.018億元，營收為人民幣7,150萬元，年比大幅下降12%和43%，與產業整體趨勢一致。

To navigate these challenges, we are adopting a dual-pronged strategy. For life insurance, we are leveraging new media customer acquisition and digital channels to drive momentum. For property insurance, we are capitalizing on emerging opportunities by expanding embedded insurance in sectors such as AI robots and the low altitude economy. By focusing on providing tailored high-value products, we are aligning with new growth areas in the economy, driving innovation and strengthening our partnership.

為了因應這些挑戰，我們採取了雙管齊下的策略。對於人壽保險，我們正在利用新媒體客戶獲取和數位管道來推動發展。對於財產保險，我們正在利用新興機會，擴大人工智慧機器人和低空經濟等領域的嵌入式保險。透過專注於提供客製化的高價值產品，我們正在與經濟中的新成長領域保持一致，推動創新並加強我們的合作關係。

Based on current assessments, we anticipate a remarkable recovery in our insurance brokerage business next quarter. Moreover, we are also seeing growing synergies between our lending and insurance businesses with premiums from cross selling up 67% quarter-over-quarter, demonstrating the effectiveness of our integrated business model.

根據目前的評估，我們預計下個季度我們的保險經紀業務將顯著復甦。此外，我們的貸款和保險業務之間的綜效也日益增強，交叉銷售保費較上季成長 67%，證明了我們綜合業務模式的有效性。

Now, for the consumption and lifestyle business segment. Following a strategic review, we determined that the segment has reached an optimal scale with high penetration. It will require a substantial investment to grow the business to the next level. As a result, we are realigning resources to focus more on financial services and AI-driven innovation, where we see greater opportunities for sustainable growth.

現在，談談消費和生活方式業務領域。經過策略評估，我們確定該細分市場已達到最佳規模並具有較高的滲透率。要將業務​​發展到下一個階段，需要大量投資。因此，我們正在重新調整資源，更專注於金融服務和人工智慧驅動的創新，我們看到了更大的永續成長機會。

As we look ahead to 2025, we see significant opportunities for both our core business and the new areas emerging as we transform into a more international and technology-driven organization. We will continue to emphasize AI-driven innovations and applications as one of our four pillars of growth. By pursuing a path of global high-quality development, we are confident in our ability to achieve sustainable progress, and we will remain focused on creating long-term value for our customers, partners, and shareholders.

展望2025年，隨著我們向更國際化和技術驅動的組織轉型，我們看到核心業務和新興領域都面臨重大機會。我們將繼續強調人工智慧驅動的創新和應用作為我們的四大成長支柱之一。透過走全球高品質發展之路，我們有信心實現永續發展，並將繼續專注於為客戶、合作夥伴和股東創造長期價值。

Finally, we have a management change to announce. Mr. Yuning Feng, our current CFO, will step down from his position on July 30, 2025, due to personal reasons. We sincerely thank Yuning for his dedication and contributions to Yiren Digital and wish him all the best in his future endeavors.

最後，我們要宣布一項管理階層變動。公司現任財務長馮宇寧先生因個人原因將於2025年7月30日卸任。我們衷心感謝宇寧對宜人數字的奉獻和貢獻，並祝福他在未來的事業中一切順利。

We are delighted to welcome Mr. William Hui as our new CFO. With nearly two decades of experience in investment banking and capital markets, William has a strong track record in global investment operations. Since joining our parent company, CreditEase, in 2017, he has played a key role in driving investment and capital market strategy. His extensive leadership background and expertise are invaluable as we continue to grow and strengthen our organization.

我們非常高興地歡迎 William Hui 先生擔任我們的新任財務長。William 擁有近二十年的投資銀行和資本市場經驗，在全球投資營運方面擁有出色的表現。自 2017 年加入我們的母公司宜信以來，他在推動投資和資本市場策略方面發揮了關鍵作用。隨著我們組織的不斷發展和壯大，他豐富的領導背景和專業知識非常寶貴。

With that, I will pass it to Yuning, who will go through the financial performance for this quarter.

接下來，我將把報告交給雲寧，由她來報告本季的財務表現。

Thank you, Mr. Tang, and thank you for all your kind wishes. So hello, everyone on this call, I will be focused on our key financial highlights. Please refer to our earnings release and IR deck for further details, both available on our website.

謝謝唐先生，也謝謝您的一切美好祝福。大家好，在本次電話會議中，我將重點討論我們的主要財務亮點。請參閱我們的收益報告和 IR 演示文稿以了解更多詳細信息，它們均可在我們的網站上找到。

Firstly, we are pleased to report a steady growth in the first quarter of 2025. Our total revenue increased 13% year-over-year to RMB1.6 billion.

首先，我們很高興地報告2025年第一季實現了穩定成長。總營收年增13%至人民幣16億元。

In the Financial Services segment, total loan facilitation reached RMB15.2 billion in the first quarter, up 28% year-over-year. The growth was primarily driven by robust demand for our small revolving loan products, coupled with a steady increase in demand from repeat higher-quality borrowers. The platform's ability to attract, retain, and mentor high-quality borrowers has been a key driver of the sustained growth in long volume. As a result, revenue from this segment surged by 59% year-over-year to RMB1.2 billion in the first quarter.

金融服務類股，第一季貸款促成總額達152億元人民幣，較去年同期成長28%。成長主要得益於我們小額循環貸款產品的強勁需求，以及重複高品質借款人的需求穩定成長。該平台吸引、留住和指導高品質借款人的能力是長期借款量持續成長的關鍵驅動力。因此，該部門第一季營收年增59%至人民幣12億元。

Further highlighting the platform's success in meeting growing customer demand. In the fourth quarter, the revenue from guaranteed service reached RMB380 million compared to RMB17 million in the same period last year, reflecting the growing loan volume facilitated under the risk-taking model. As loan balance under retaking model continued to grow, we expect higher revenue contribution from the guaranteed services.

進一步凸顯了該平台在滿足日益增長的客戶需求方面的成功。第四季度，擔保服務收入達到人民幣3.8億元，去年同期為人民幣1,700萬元，反映風險承擔模式下的貸款量不斷增長。隨著回購模式下的貸款餘額持續成長，我們預期擔保服務的收入貢獻將更高。

In the Insurance sector, our gross region premium totaled RMB802 million in the first quarter of 2025, making a 12% year-over-year decline. The decline was mainly driven by industry-wide new sales contraction need regulatory changes. Consequently, revenue from our Insurance segment declined 43% year-over-year to RMB71 million.

在保險領域，2025年第一季度，我們的區域總保費總計人民幣8.02億元，年減12%。下降的主要原因是全行業新車銷售萎縮以及監管變化的需要。因此，我們保險部門的收入年減43%至人民幣7,100萬元。

In the Consumption and Lifestyle segment, as we strategically scaled back product offering since the second half in 2024, the total revenue dropped 40% year-over-year to RMB308 million. Following our strategic review, just as Mr. Tang mentioned, we have decided to focus more on our financial service and AI-driven innovation to optimize our ROI as we see greater business opportunity there.

在消費與生活板塊，由於我們自2024年下半年起策略性縮減產品供應，總收入年減40%至人民幣3.08億元。經過策略評估，正如唐先生所提到的，我們決定更加專注於金融服務和人工智慧驅動的創新，以優化我們的投資回報率，因為我們看到那裡有更大的商業機會。

On the expense side, sales and marketing spend in the first quarter edged down 0.1% year-over-year to RMB277 million, which remained stable. This reflects better cost efficiency from development of our AI technology. Research and development expenses increased 112% year-over-year to RMB86 million as we increased our investment in AI productivity and productions technologies, strategic recruitment of specialized tenants. Origination, servicing, and other operating costs was RMB225 million in the fourth quarter, down 4% year-on-year, which remains stable. G&A expenses for the quarter increased by 15% year-over-year to RMB96 million, the increase reflects our enhanced incentive bonuses and increased employee benefit expenses.

費用方面，第一季銷售及行銷支出年減0.1%至2.77億元，維持穩定。這體現了我們的人工智慧技術發展帶來的更好的成本效率。由於我們加大了對人工智慧生產力和生產技術的投入，以及對專業租戶的策略性招募，研發費用年增 112% 至 8,600 萬元。第四季發起、服務及其他營運成本為2.25億元，年減4%，維持穩定。本季的一般及行政費用年增 15% 至人民幣 9,600 萬元，這一增長反映了我們增加的激勵獎金和增加的員工福利費用。

The allowance for contract assets and receivables for the quarter was RMB153 million, up 49% year-over-year. This is mainly driven by the continued growth of loan volume facilitated on our platform as well as our cautious approach to risk management. Provision for contingent liability this quarter increased RMB511 million year-over-year to RMB411 million. This reflects the higher loan volume growth facilitated under our risk-taking model, which, in accordance with our current accounting standard, require substantial upfront provision while the corresponding revenue will be recognized on a monthly basis through our -- throughout a long livestock.

本季合約資產及應收帳款撥備為1.53億元，較去年同期成長49%。這主要得益於我們平台貸款量的持續成長以及我們謹慎的風險管理方法。本季或有負債準備年增5.11億元人民幣至4.11億元。這反映了我們的風險承擔模式帶來的更高的貸款量增長，根據我們當前的會計準則，該模式需要大量的前期準備金，而相應的收入將通過我們的長期牲畜飼養按月確認。

So on the bottom line, net income of this quarter was RMB248 million, decreased 49% year-over-year. The decline in net income can be attributed to four key factors. First, substantial upfront provision were allocated due to growing in longwall and under our risk-taking business model, product model. Second, research and development expense increased as we continue to enhance our in-house AI capabilities. Thirdly, there was a reduction in overall profitability within the insurance business as well as lifestyle and consumption business segment.

整體而言，本季淨利為2.48億元人民幣，年減49%。淨收入的下降可以歸因於四個關鍵因素。首先，由於長壁開採業務的成長以及我們承擔風險的業務模式和產品模式，我們分配了大量的前期準備金。其次，隨著我們持續增強內部人工智慧能力，研發費用也隨之增加。第三，保險業務、生活方式和消費業務整體獲利能力下降。

Regarding our cash flow, we generated approximately RMB479 million net cash from our operations in the fourth quarter. On our balance sheet, our cash and cash equivalents remain strong at RMB4 billion. underscoring our financial flexibility and positioning us to capitalize on our strategic opportunities. And lastly, on our business outlook.

關於我們的現金流，我們第四季的經營活動產生了約人民幣4.79億元的淨現金。在我們的資產負債表上，我們的現金和現金等價物仍然保持強勁，達到人民幣40億元，這凸顯了我們的財務靈活性，並使我們能夠利用戰略機遇。最後，談談我們的業務前景。

Based on our assessment of current business and marketing conditions, we expect our revenue for the second quarter of 2025 to stand between RMB1.6 billion to RMB1.7 billion. representing a 7% to 14% year-on-year increase with a healthy net profit margin. This represents our current and preliminary assessment, which may be subject to changes and uncertainties.

根據我們對目前業務和市場狀況的評估，我們預計2025年第二季的營收將在人民幣16億元至人民幣17億元之間，年增7%至14%，淨利潤率也將保持健康。這代表了我們目前的初步評估，可能會發生變化和不確定性。

So here we have concluded our remarks.

我們的發言到此結束。

We're now ready for Q&A.

我們現在準備好進行問答了。

(Operator Instructions) Kris Wu, Look Capital.

（操作員指示）吳亦凡，Look Capital。

Perhaps my question is what kind of impact or changes do you expect from the new loan facilitation rules?

我的問題是，您預期新的貸款便利化規則會帶來什麼樣的影響或改變？

Okay. Thank you for the question. The recent loan facilitation regulation in China is a significant step toward formalizing and stabilizing the industry within the country's financial framework. So these rules promote greater transparency and regulatory clarity, which align with the government's support goals of supporting financially robust lenders and stoping healthy industry growth.

好的。謝謝你的提問。中國最近發布的貸款便利化條例是朝著在國家金融框架內規範和穩定該行業邁出的重要一步。因此，這些規則促進了更大的透明度和監管清晰度，這與政府支持財務穩健的貸方和阻止健康產業成長的支持目標一致。

So Yiren Digital, benefited from (inaudible) for a big platform like us as the industry will be -- we might see an acceleration in the industry consolidation. So as we are already on the (inaudible), our funding partners. So we believe this is good news for us.

因此，宜人數字受益於（聽不清楚），對於像我們這樣的大平台來說，我們可能會看到產業整合的加速。因此，我們已經（聽不清楚）成為我們的資金合作夥伴。所以我們相信這對我們來說是個好消息。

I hope that answers your question. Kris, do you have any other questions?

我希望這能回答你的問題。克里斯，你還有其他問題嗎？

Yes. Can you provide some details on the international expansion?

是的。您能否提供一些有關國際擴張的細節？

Ning, will you answer this question?

寧，你會回答這個問題嗎？

Previously reported international business is very strategic for us. And well, yes, grow into a significant part of our revenue and value in the future. I hope, yes, not too far away. And we are making very solid progress in the Philippines.

之前曾報道過，國際業務對我們來說非常具有戰略意義。是的，未來它將成為我們收入和價值的重要組成部分。是的，我希望不要太遠。我們在菲律賓取得了非常紮實的進展。

And as I earlier reported, yes, and the second quarter will likely see also double-digit growth. And also, we are already profitable there. And so AI is playing a very key role in the Philippines, and I expect also in other markets, international markets. And yes, we are working closely with our partner in Indonesia for the launch.

正如我之前報導的那樣，是的，第二季度可能也會實現兩位數的成長。而且，我們在那裡已經獲利了。因此，人工智慧在菲律賓發揮著非常關鍵的作用，我預計在其他市場、國際市場上也是如此。是的，我們正在與印尼的合作夥伴密切合作以完成此次發布。

So now rather than later, I hope, in the beginning of the second half of the year. And because our partner has a very rich resources in Indonesia and we contribute our great technology capability and also fintech experience in Mainland China and also in the Philippines. So there is strong synergies between the partners. And I very much hope that yes, our results in Indonesia will also be very positive. William, you have more color to add?

因此我希望現在就採取行動，而不是等到下半年初。由於我們的合作夥伴在印尼擁有非常豐富的資源，並且我們在中國大陸和菲律賓貢獻了強大的技術能力和金融科技經驗。因此合作夥伴之間存在著強大的協同效應。我非常希望我們在印尼的成果也將非常正面。威廉，你還有更多顏色要加嗎？

Yes. I'll just add some financial context into it. So in Q1, our international transaction volume has reached RMB1.24 billion. That's up 75% quarter-over-quarter with a lower facilitation for new for growing by 108%. So we expect a continued double-digit growth in low volume in the second quarter.

是的。我只是想添加一些財務背景。所以第一季我們的國際交易金額已經達到了12.4億元。與上一季相比，這一數字成長了 75%，而新業務的便利化程度較低，成長了 108%。因此，我們預計第二季銷售量將持續保持兩位數成長。

So in Indonesia, as Lin just mentioned, we're preparing for the launch, and we expect it will launch in the second half of this year. And besides the Philippines and Indonesia, we will continue to explore the possibilities of the other market. such as the Middle East or even (inaudible).

因此，正如林剛才提到的，我們在印尼正在為發布做準備，預計將於今年下半年發布。除了菲律賓和印度尼西亞，我們將繼續探索其他市場的可能性，例如中東，甚至（聽不清楚）。

[Dale], shareholder.

[Dale]，股東。

I just wanted to ask about the crypto asset that appeared on the balance sheet this quarter and then also the fair value adjustment. So any context there would be great.

我只是想問一下本季資產負債表上出現的加密資產以及公允價值調整。因此，任何背景都很好。

This is about what asset.

這是關於什麼資產。

Crypto asset and then also I think there was a fair value adjustment that took place in the quarter and in the cash flow statement, it looked like it might have been related to the crypto asset?

加密資產，然後我認為本季和現金流量表中發生了公允價值調整，看起來它可能與加密資產有關？

Yes. This is part of our -- yes, effort to, yes, invest our cash. And yes, so crypto is becoming more mainstream and part of the, yes, financial system. So it's a minority piece of our investment efforts. And in the first quarter, it experienced some value drop. But as we see, its value has gone up? Yes. So we expect some fluctuation, yes, in this emerging asset class. But yes, we are hopeful that we are making through the investment and things will work out. William, you have more color to add.

是的。是的，這是我們投資現金的努力的一部分。是的，加密貨幣正在變得越來越主流，並且成為金融體系的一部分。因此，這只是我們投資努力的一小部分。而在第一季度，其價值有所下降。但我們看到，它的價值已經上漲了？是的。因此，我們預期這個新興資產類別會出現一些波動。但是的，我們希望透過投資讓事情順利進行。威廉，你還可以添加更多顏色。

Yes, this is William. So yes, in the first quarter, we have allocated a small amount of our cash into (inaudible) assets as we explore new ways to manage our, especially overseas cash and cash equivalents in our balance sheet. Mr. Tang mentioned, yes, in the first quarter, there are some market valuation, and we have managed our positioning during the fourth quarter and second quarter.

是的，這是威廉。是的，在第一季度，我們將少量現金分配到（聽不清楚）資產中，因為我們正在探索新的方法來管理我們的資產負債表中的海外現金和現金等價物。唐總提到，是的，第一季市場有一些估值，我們在第四季和第二季也管理了自己的部位。

And we are happy to see that actually, the (inaudible), we see has been already -- the asset value has been growing back in the second quarter. And -- but in the fourth quarter, the fair value changes on this investment has been approximately [70 million]. I hope that answers question.

我們很高興地看到，實際上（聽不清楚），我們看到的已經是──資產價值在第二季開始成長。但在第四季度，該項投資的公允價值變動約為[7000萬]我希望這能回答問題。

Yes, that answer it.

是的，答案就是這樣。

At that adjustment for that. So we can see that the adjusted EBITDA in fiscal was (inaudible) [RMB325 million], which is quite stable compared to the last quarter. So we'd expect that value adjustment will be lifted in the second quarter this year.

針對這一點進行調整。因此，我們可以看到，本財政年度的調整後 EBITDA 為（聽不清楚）[人民幣 3.25 億元]，與上一季相比相當穩定。因此我們預計今年第二季價值調整將會取消。

Okay. And then on the guarantee business.

好的。然後是擔保業務。

Just to track the (inaudible) value changes in the class of RMB70 million.

只是為了追蹤 7,000 萬元人民幣類別的（聽不清楚）價值變化。

Great. And then when do you expect the guaranteed business to sort of stabilize? Just in terms of -- it looks like you're still ramping it just when when do you expect it to stabilize and potentially show profitability?

偉大的。那麼，您預計擔保業務何時能夠穩定下來？就這一點而言——看起來您仍在加大投入，您預計它什麼時候才能穩定下來並可能顯示出盈利能力？

Yes. Currently, the guarantee business is at around 40% level, and we believe the 50 -- less than 50% is our optimal target -- so we expect that we'll continue to grow slightly in the next couple of quarters and then after that, it will start to come down as our non-guarantee business start to outgrow the guarantee business.

是的。目前，擔保業務佔比約為 40%，我們認為低於 50% 是我們的最佳目標，因此我們預計未來幾個季度我們將繼續小幅增長，然後隨著非擔保業務的增長超過擔保業務，擔保業務的佔比將開始下降。

[Bruce], [Black Lab].

[布魯斯]，[黑色拉布拉多]。

Yes. Thank you. First, I'd like to say I'm delighted that Yiren Digital expects to benefit from consolidation in the new regulatory environment. I have two questions. First, concerning the sixfold increased provision for contingent liabilities, which has now grown to the largest operating cost and expense, why would a higher volume of loans decrease profitability especially since delinquency rates have remained stable.

是的。謝謝。首先，我很高興宜人數字有望從新監管環境下的整合中受益。我有兩個問題。首先，關於或有負債撥備增加六倍，現已成為最大的營運成本和費用，為什麼貸款額增加會降低獲利能力，特別是在拖欠率保持穩定的情況下。

And my second question is, can you offer any insight into Yiren's dividend commitment for later this year?

我的第二個問題是，您能否透露一下宜仁今年稍後的股息承諾？

Okay. And to answer your first question about 6x the provision, it's because we are taking a bigger position in the (inaudible) guarantee business. With that, according to the accounting standards we need to make the relative provisions immediately, even though the revenue will come on a month-by-month basis.

好的。回答您關於 6 倍撥備的第一個問題，那是因為我們在（聽不清楚）擔保業務中佔據了更大的份額。因此，根據會計準則，儘管收入是按月計算的，我們也需要立即作出相應的撥備。

So with that, that's why we see a hit on our margins in the as the loan volume growth in the self-guarantee assets. So I think that answered the kind of discrepancy between why the delinquency is low, but the provision is high because it's more like accounting treatment for us.

因此，這就是為什麼我們看到隨著自擔保資產的貸款量成長，我們的利潤率受到打擊。所以我認為這回答了為什麼拖欠率低但撥備額高之間的差異，因為這對我們來說更像是會計處理。

So -- on your second question about the dividend. I think we -- it's -- we are committed to our annual dividend policies to ensuring the consistent values return to our investors. So according to our semiannual dividend policies occurring dividend payout and payout ratio stands at around 10% based on the earnings of the prior six months period.

那麼——關於股利的第二個問題。我認為我們—我們致力於我們的年度股息政策，以確保為我們的投資者帶來持續的價值回報。因此，根據我們的半年股利政策，基於前六個月的收益，股利支付和支付率約為 10%。

So while our payout ratio reached around 20% when we last payout of dividend in May. So looking forward, we are carefully assessing the balance between increasing shareholder return and the investment in a high potential opportunity and innovation to drive a more sustainable long-term growth. So this strategic evaluation will guide our decision to maximize the value of our stakeholders.

因此，當我們在 5 月上次派息時，我們的派息率達到了 20% 左右。因此，展望未來，我們正在仔細評估增加股東回報與對高潛力機會和創新的投資之間的平衡，以推動更永續的長期成長。因此，這項策略評估將指導我們的決策，以最大化利害關係人的價值。

Yes. And we will do cash dividend next quarter, we will make the announcement next quarter because it is (inaudible) annual.

是的。我們將在下個季度派發現金紅利，我們將在下個季度宣布這一消息，因為這是（聽不清楚）年度分紅。

At the same time, we are also noticing and comparing the dividend policies of our peers and we will -- and then we will make a decision that will maximize the (inaudible) our shareholders.

同時，我們也在關注和比較同業的股利政策，然後我們將做出最大化（聽不清楚）股東利益的決定。

I hope that answers your question.

我希望這能回答你的問題。

Yes. A small follow-up. I failed to completely understand with the higher provision for contingent liabilities, is that a one-off for this quarter? Or can we expect levels of that level for continuing quarters.

是的。一個小的後續行動。我不太明白，或有負債撥備金額增加，這是本季的一次性支出嗎？或者我們能否預期該水準將在未來幾季保持下去。

Every time when we increased the loan volume in this self-guarantee loans, then we need to increased our provision for (inaudible). So I think as we -- as the low volume in that category continue to rise as we expect equal peak at around Q2 or Q3.

每次我們增加自擔保貸款的貸款額度，就需要增加撥備（聽不清楚）。因此，我認為隨著該類別的低交易量繼續上升，我們預計在第二季或第三季左右達到相同的峰值。

And then after Q2 -- after Q3, we will see that the provision will start to tail off. But at the same time, the loan that we made earlier in Q1 will be start getting more interest revenue from it. So that will more or less offset the impact of the contingency growth. I think the way it works is when that loan (inaudible) reach in the states, the provision for the change in provision will start.

然後在第二季和第三季之後，我們將看到該項準備金將開始減少。但與此同時，我們在第一季早些時候發放的貸款將開始獲得更多的利息收入。因此這或多或少會抵消緊急成長的影響。我認為它的工作方式是，當貸款（聽不清楚）到達各州時，規定變更的規定就會開始。

Yes. I hope that answers your question. And back to you, Operator.

是的。我希望這能回答你的問題。現在回到你這裡，操作員。

This concludes our question-and-answer session for today. If you have any further questions, you can please connect the IR team of Yiren Digital. The conference has now concluded.

今天的問答環節到此結束。如果您還有其他問題，請聯絡宜人數字的 IR 團隊。會議現已結束。

Thank you.

謝謝。

Thank you. For attending today's presentation. You may now disconnect.

謝謝。感謝您參加今天的演講。您現在可以斷開連線。