Core Insights - Yixin Group reported a slight decline in total financing in Q1 2025, primarily due to a slowdown in used car sales growth and a decrease in average financing amounts [1][2] Summary by Category Overall Performance - In Q1 2025, Yixin Group achieved a total of 172,000 auto financing transactions, reflecting a year-on-year increase of 0.5% [1] - The total financing amount reached 15.3 billion yuan, showing a year-on-year decrease of 5.0% [1] - The decline in total financing is attributed to a slowdown in used car sales growth, with a total of 4.607 million used cars sold nationwide in Q1 2025, marking a year-on-year increase of 0.15% [1] Structural Changes - The proportion of used car financing has increased, with Q1 2025 used car financing transactions reaching 104,000, a year-on-year increase of 31.9%, accounting for 60.5% of total transactions, up 14.3 percentage points year-on-year [2] - The financing transactions for used electric vehicles reached 9,000, representing 23.2% of the company's new energy vehicle financing transactions, with a year-on-year increase of 10.7 percentage points [2] - The company's fintech business saw significant growth, facilitating a total financing amount of 6.1 billion yuan in Q1 2025, a year-on-year increase of 56.5%, accounting for 39.9% of total financing, up 15.6 percentage points year-on-year [2] Investment Analysis - Yixin Group is recognized as a leading third-party auto finance provider, characterized by high dividend yields, with a dividend of 0.13 HKD in 2024 and a payout ratio exceeding 100%, resulting in a dividend yield of 6% for 2025 [2] - The company expresses strong confidence in future growth, with projected net profits for 2025-2027 expected to be 1.09 billion, 1.30 billion, and 1.49 billion yuan, reflecting year-on-year growth rates of 34%, 20%, and 14% respectively [2] - The dynamic PE ratios for 2025-2027 are estimated to be 12.1x, 10.1x, and 8.8x [2]

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Core Viewpoint - 易鑫集团 is an AI-driven fintech platform focused on providing accessible and convenient automotive financing and value-added services, with a strong emphasis on technological innovation and partnerships within the automotive finance industry [2] Group 1: Company Overview - 易鑫集团 was established in August 2014 and went public on the Hong Kong Stock Exchange in 2017 [2] - The company operates in over 340 cities in China and has formed partnerships with more than 80 AI and internet companies, over 100 automotive manufacturers, and more than 100 financial institutions, as well as over 39,000 dealerships [2] - The company has served over 10 million customers, with a cumulative transaction volume exceeding 4.4 million units and a total transaction scale surpassing 400 billion yuan [2] Group 2: Technological Innovation - 易鑫集团 has invested over 2 billion yuan in research and development [2] - In 2024, the company will become the first in China's automotive finance sector to register a generative AI model [2] - By 2025, 易鑫 will be the first in the industry to achieve localized deployment and application of the DeepSeek model, and will officially release and open-source the high-performance inference model YiXin-Distill-Qwen-72B [2] Group 3: Future Outlook - The establishment of an overseas headquarters in Singapore marks a step towards global expansion for 易鑫集团 [2] - The company aims to enhance its technological capabilities to better serve the global automotive finance industry and to create an ecosystem that facilitates vehicle ownership [2]

Investment Rating - The report gives a "Buy" rating for the company, with a target price of HKD 2.20, while the closing price is HKD 1.63 [4][6]. Core Insights - The company focuses on the automotive finance sector, with a dual business model of platform and self-operated financing, achieving significant revenue growth in 2024 [2][4]. - In 2024, the company reported a revenue of HKD 9.888 billion, a year-on-year increase of 47.9%, with platform business revenue at HKD 7.894 billion (up 54.9%) and self-operated financing revenue at HKD 1.991 billion (up 25.4%) [2][4]. - The company has seen a structural change in its platform business, with significant growth in the used car segment, which outpaced new car sales [3][55]. Summary by Sections Business Overview - The company was established in 2014 and listed in Hong Kong in 2017, with Tencent as the largest shareholder [2][16]. - It utilizes 4S store channels for customer acquisition and implements differentiated pricing based on customer profiles [2]. Financial Performance - The company achieved a net profit of HKD 810 million in 2024, a 45.9% increase year-on-year [5][17]. - The gross profit margin for the overall business was 46.9%, with the platform business margin at 46.7% [17][36]. Market Position - The company has increased its market share in the used car financing sector, with a market share of 1.78% in 2024, up 0.26 percentage points year-on-year [46][54]. - The new energy vehicle segment has also seen a rise in market share, reaching 1.36% in 2024, an increase of 0.14 percentage points [46][54]. Business Strategy - The company is expanding its customer base by targeting long-tail customers and focusing on localization and electrification trends in the automotive market [57]. - The SaaS business has become a new growth driver, providing technology solutions and enhancing connections between financial and industrial institutions [61]. Future Projections - Revenue projections for 2025-2027 are estimated at HKD 12.209 billion, HKD 14.702 billion, and HKD 17.159 billion, respectively, with corresponding profit estimates of HKD 1.081 billion, HKD 1.213 billion, and HKD 1.415 billion [4][5].

Macroeconomic Insights - China will impose a 34% tariff on all imports from the United States starting April 10, 2025, which is expected to significantly reduce agricultural imports from the U.S. [3] - In 2024, China imported agricultural products worth $24.9 billion from the U.S., with major imports including soybeans (22.1 million tons), sorghum (5.7 million tons), corn (2.1 million tons), and wheat (1.9 million tons) [3]. Agricultural Sector - The increase in tariffs is likely to enhance domestic grain prices and benefit the planting industry chain, emphasizing the need for self-sufficiency in grain production [3]. - The report highlights the importance of technological advancements in agriculture, particularly in genetically modified and gene-edited crops, which are expected to accelerate, benefiting seed companies with leading technology reserves [3]. - The report recommends focusing on companies that are actively expanding their domestic brands in the pet food sector, such as Guibao Pet and Zhongchong Co., which primarily generate revenue from domestic sales [4]. Livestock Industry - The report indicates that the pig farming sector is expected to see a significant improvement in profitability for the 2024 annual report and the first quarter of 2025, driven by favorable pig prices and reduced costs [5]. - The analysis of March's supply and demand dynamics in the pig farming industry shows a balanced market, but a potential downward trend in prices is anticipated if there is no support from state reserves [4][5]. Investment Recommendations - Recommended stocks in the poultry sector include Shengnong Development, Yisheng Shares, and Lihua Shares; for the post-cycle sector, recommended stocks are KQ Bio, Haida Group; in the pig farming sector, recommended stocks include Muyuan Foods, Wens Foodstuff Group, Tiankang Bio, and Shennong Group [7]. - In the seed industry, recommended stocks include Fengle Seed Industry, Quanyin High-Tech, Longping High-Tech, and Dabeinong [7]. - In the pet sector, recommended stocks are Guibao Pet, Zhongchong Co., and Ruipu Bio [7]. Chemical Industry - The report suggests that the imposition of a 34% tariff on U.S. imports will accelerate the domestic substitution process for chemical products, particularly in high-end markets [17]. - Beneficiary products include lubricant additives, nucleating agents, adsorption separation resins, and nano-silica, with specific companies recommended for investment [19]. Rare Earth Industry - The report maintains an "overweight" rating on the rare earth sector, anticipating that the recent tariffs will enhance China's strategic advantages in rare earth production and lead to price increases due to supply-demand mismatches [22]. - The export control measures on heavy rare earths are expected to stimulate overseas stockpiling, further driving up prices [23]. Insurance Sector - The insurance sector is projected to see stable growth in 2025, with a focus on improving asset-liability matching strategies [25]. - The report recommends increasing holdings in companies like China Pacific Insurance and New China Life Insurance, which are expected to benefit from improved investment returns and stable business strategies [40].

Core Viewpoint - Guotai Junan has adjusted the revenue forecast for Yixin Group (02858) for 2025-2027 to 11.564 billion, 13.293 billion, and 15.042 billion HKD, reflecting year-on-year growth of 17%, 15%, and 13% respectively, while net profit is adjusted to 1.134 billion, 1.386 billion, and 1.698 billion HKD, indicating year-on-year growth of 40%, 22%, and 23% respectively, leading to a target price of 2.45 HKD for 2026 with a "Buy" rating [1] Group 1 - The company's stock incentive plan binds core personnel to company interests, enhancing team motivation [2] - On March 25, Yixin Group announced a stock incentive plan for 2024, granting stock options and awards to key executives and employees, which is expected to drive long-term stable development and enhance competitiveness in the industry [2] - The stock options have an exercise price of 1.694 HKD per share, allowing employees to benefit from stock appreciation [2] Group 2 - The performance assessment targets for the stock incentive plan are high, reflecting the company's confidence in future performance [3] - To receive full stock incentives, the adjusted net profit must exceed 3 billion HKD over a five-year vesting period, with scaled incentives for lower profit thresholds [3] - The company aims for a compound annual growth rate of approximately 21% from 2025 to 2029, based on a target of 3 billion HKD in adjusted net profit by 2029, indicating strong growth prospects [3] - Catalysts for growth include the rapid expansion of the automotive finance market and declining funding costs [3]

Summary of 易鑫集团 Conference Call Company Overview - 易鑫集团, a subsidiary of 易车网, was established in 2014 and listed on the Hong Kong Stock Exchange in 2017, focusing on automotive finance, including self-operated financing and trading platform business [3][4] Key Points Industry Insights - The used car market has shown strong growth with a compound annual growth rate (CAGR) of 12.5% from 2014 to 2024, while the retail transaction volume of used cars is only 38%, indicating significant growth potential compared to developed countries [4][6] - The new car market has experienced a slowdown since 2018, with negative growth observed [6] Financial Performance - In 2024, 易鑫集团's revenue reached 9.88 billion, a year-on-year increase of 48%, and net profit was 810 million, up 46% [4][8] - The gross margin decreased from 56% in 2022 to 47% in 2024 due to rising costs [4][8] - The average funding cost for self-operated financing decreased from 5.3% in 2022 to 4.5% in 2024, indicating potential for further reduction [4][11] Business Strategy - The company is transitioning towards a light asset model, with non-guaranteed lending (SRS type) revenue reaching 1.8 billion in 2024, a 289% increase [4][9] - A differentiated competition strategy and precise pricing led to a 25.45% increase in used car transaction volume in 2024, significantly outperforming the industry average growth rate of 7% [4][7] Competitive Advantages - 易鑫集团 has a vast direct sales network covering 340 cities and over 38,000 car dealers, which helps mitigate fraud risks [4][11] - The application of AI technology in traditional business scenarios has resulted in significant operational efficiencies, including avoiding potential fraud losses exceeding 300 million RMB in 2024 [4][11] Shareholder Structure - The largest shareholder is Tencent, holding approximately 52% of the shares, followed by 曾俊奇 with 10.29% and CEO 张学安 [5] Future Outlook - Projections indicate net profits of 1.13 billion, 5.32 billion, and 5.564 billion for 2025 to 2027, with growth rates of 17% and 18% [12] - The target price based on a 10x PE valuation is set at 1.82 RMB, with risks associated with platform business performance and potential increases in non-performing loans [13] Growth Potential - Continued high growth in revenue and profit is expected, driven by strong demand in the used car market and the company's established presence in this sector [14]

Financial Performance - In 2024, the company achieved a revenue of RMB 9.9 billion, representing a 48% year-on-year growth, and adjusted net profit exceeded RMB 1 billion, up 19% year-on-year[9]. - Adjusted operating profit for the year ended December 31, 2024, was RMB 1.44 billion, an increase of 32% from RMB 1.09 billion in 2023, primarily due to revenue growth[44]. - Adjusted net profit for the year ended December 31, 2024, was RMB 1.08 billion, up 19% from RMB 910 million in 2023, also driven by revenue growth[45]. - Total revenue for the year ended December 31, 2024, reached RMB 9.89 billion, a 48% increase from RMB 6.69 billion in 2023[48]. - Operating profit for the year was RMB 1.13 billion, a 64% increase from RMB 689 million in 2023[48]. - The company reported a net profit of RMB 809 million for the year, representing a 46% increase from RMB 555 million in 2023[48]. Financing and Transactions - The company processed 726,000 financing transactions in 2024, a 7% increase year-on-year, with total financing amounting to RMB 69.1 billion, up 5% year-on-year[11]. - The company’s financing transactions for new energy vehicles totaled 175,000 units in 2024, marking a 51% year-on-year growth[11]. - The total financing transactions for the company amounted to 726,000 cases, a 7% increase from 678,000 cases in the previous year[30]. - The total financing amount for the company was RMB 69.14 billion, up 5% from RMB 65.95 billion year-on-year[30]. - Financing transactions for new energy vehicles increased by 51% year-on-year, with 175,000 transactions totaling RMB 17.92 billion[30]. Market Trends - Retail sales of new energy vehicles (NEVs) in China grew by 41% year-on-year in 2024, with NEVs accounting for over 50% of new car retail sales for several months[8]. - In 2024, the retail sales of new energy vehicles in China reached 10.9 million units, representing a year-on-year growth of 40.7%[21]. - The penetration rate of new energy vehicles has consistently exceeded 50% for several months, indicating strong market acceptance[21]. - In 2024, the retail sales of passenger cars in China increased by 6% year-on-year, driven by a rebound in the second half of the year[7]. - The total sales of new passenger cars in China reached 27.6 million units in 2024, reflecting a year-on-year increase of 5.8%[19]. Fintech Growth - The fintech business of the company achieved strong growth in 2024, with fintech revenue soaring to RMB 1.8 billion, a year-on-year increase of 290%[13]. - The financing transaction amount facilitated by the company's fintech platform exceeded RMB 20 billion, representing a year-on-year growth of 107%[13]. - The fintech platform facilitated a total financing amount of RMB 21.1 billion in 2024, showing significant year-on-year growth, while fintech revenue reached RMB 1.8 billion, up 290%[35]. - The average revenue per core customer increased by 132% to RMB 1.04 million in 2024, compared to RMB 447,270 in 2023, with 98% of fintech revenue coming from core customers[36]. - The company plans to continue prioritizing the fintech sector in 2025, aiming to provide precise automotive financial analysis services to a broader range of financial institutions[13]. Risk Management - The company has established a comprehensive risk management and internal control system to address credit risk, which is the primary risk faced[96]. - The company implemented a data-driven credit assessment system to manage credit risk, focusing on consumers' ability and willingness to fulfill financial obligations[96]. - The company actively monitors overdue rates and continuously improves data analysis capabilities to manage credit risk effectively[96]. - The company’s credit assessment process includes automated preliminary assessments and manual evaluations, utilizing over 40 models to analyze various data points[99]. - The overdue rate for financing transactions was 1.39% for over 180 days and 1.86% for over 90 days, showing slight improvements from 1.49% and 1.89% respectively in the previous year[87]. Corporate Governance - The company has a strong governance structure with independent directors serving on various committees, enhancing oversight and accountability[143]. - The management team includes professionals with backgrounds in international financial institutions, contributing to the company's strategic direction[142]. - The board is committed to maintaining compliance with listing rules and regulations, ensuring transparency and good corporate governance practices[153]. - The company has a management team with extensive experience in finance and operations, including Mr. Gao and Mr. Song, who oversee automotive financing[147]. - The board proposed a final dividend of HKD 0.065 per share, representing approximately 50.1% of the earnings per share during the reporting period[16]. Investments and Capital Structure - The company invested RMB 2.578 billion in Yusheng as of December 31, 2024, representing 5.3% of the total assets[122]. - The company achieved a significant milestone by issuing its first offshore bond of JPY 4 billion with a 3-year term in December 2024, enhancing its international business expansion[107]. - As of December 31, 2024, total borrowings amounted to RMB 26.9 billion, an increase from RMB 23.2 billion as of December 31, 2023[172]. - The debt-to-asset ratio rose to 55% as of December 31, 2024, compared to 53% as of December 31, 2023, due to an increase in net debt[114]. - The company’s asset management scale reached RMB 108.1 billion by December 31, 2024, with a 90-day overdue rate improving to 1.86%[11]. Research and Development - Research and development expenses rose by 20% year-on-year to RMB 233 million, mainly due to increased salaries and professional service fees[71]. - The Titan-AI cloud platform was upgraded in 2024, enhancing operational efficiency and supporting sustainable growth through AI applications in fraud prevention and customer service[13]. - The company developed the first multimodal large model in the automotive sector, "ZhiXin Multi-Dimensional," marking a significant milestone in 2024[39]. - The AI applications have been widely implemented across various business scenarios, completing over 82 million calls and saving approximately 70 man-months of work per month[39]. Shareholder Information - Proposed final and special dividends of HKD 0.065 per share, totaling approximately HKD 878.5 million (approximately RMB 810.9 million), compared to HKD 195.7 million in the previous year[80]. - The company has implemented various share incentive plans, including the 2024 Share Plan, which was approved on June 27, 2024[179]. - The total number of share options that can be granted under the pre-IPO share option plan is capped at 418,464,263 shares[183]. - As of December 31, 2024, there are 235,100,848 share options granted to eligible participants that remain unexercised under the pre-IPO share option plan[184]. - The exercise price for the share options is set at $0.0014 per share, as determined by the committee[191].

Financial Data and Key Metrics Changes - The operating revenue for 2024 reached RMB 9.89 billion, representing a year-on-year increase of 48% [31] - The operating expense ratio declined to around 20%, an 8% decrease compared to the previous year [32] - The asset management scale grew to RMB 108.1 billion by December 2024, a 39% increase from the end of the previous year [32] Business Line Data and Key Metrics Changes - The transaction volume of auto financing reached RMB 69.1 billion in 2024, a year-on-year increase of 5% [10] - The financing amount for new energy vehicles grew by 44% compared to the same period last year [10] - The fintech business facilitated financing transactions of RMB 21.1 billion in 2024, representing a year-on-year growth of 107% [14] Market Data and Key Metrics Changes - The new passenger vehicle sales in China reached 27.56 million units in 2024, a year-on-year growth of 5.8% [5] - The annual sales of new energy passenger vehicles exceeded 10 million units for the first time, with a year-on-year growth of 41% [5] - The Chinese auto finance market is expected to reach RMB 3 trillion in 2024 [6] Company Strategy and Development Direction - The company aims to deepen its presence in the automotive and clean finance sectors, leveraging technology-driven financial innovation [3] - The focus is on enhancing cooperation with major shareholders like Tencent and expanding into AI and big data applications [3][4] - The company plans to optimize its value-added service product system and deepen cooperation with insurance institutions [20] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism for 2025, expecting revenue growth of 15% to 20%, reaching around RMB 11.5 to 12 billion [58] - The company anticipates that the consumption potential will be further unleashed due to new policies and the popularization of intelligent driving [6] - Management noted that the financial penetration rates in China still have significant room for improvement compared to developed markets [8] Other Important Information - The cumulative number of auto financing transactions exceeded 4 million units by May 2024, with a cumulative transaction volume approaching RMB 400 billion by December 2024 [4] - The company has established a risk control management system that covers the entire business process, ensuring effective risk management [26] Q&A Session Summary Question: What is the purpose for the high volume of loans? Will that generate pressure on liquidity and cash flow in 2025? - Management indicated that 50% of loans are for basic needs and the other 50% for special interest rate loans, with no expected pressure on cash flow in 2025 due to improved technology services [45][46] Question: What is the tracking model and features of the consumers? - The company has two categories for tracking models: a SaaS system for data collection and an online traffic model for charging fees, with a focus on the latter for revenue [48][49] Question: What is the contribution rate from the AI model to the company's revenue? - AI is considered a core competitiveness, utilized across various processes including customer acquisition and risk control, significantly enhancing operational efficiency [53][54] Question: What is the guidance for the 2025 business and growth rate? - The company expects a revenue growth of 15% to 20% in 2025, estimating revenue to reach around RMB 11.5 to 12 billion [58] Question: Will there be a decrease in the cost of assets and specific measures for cost control? - Management believes there is potential for a decrease in capital and asset costs, with plans to deploy AI applications for operational efficiency [60][62] Question: How will competition in the auto finance industry affect the company? - Management acknowledged increased competition but believes it will not significantly impact the company due to its focus on different consumer segments compared to banks [64][66] Question: What are the plans for the fintech business in the short and long term? - The company aims for a transaction revenue target of RMB 35 billion in the next three years, with a focus on high-quality development and leveraging big data technologies [71][73]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 9,887.73 million, representing a 48% increase compared to RMB 6,685.97 million in 2023[5]. - The company's adjusted net profit reached RMB 1,078.80 million, a 19% increase from RMB 910.05 million in the previous year[5]. - The gross profit for the year was RMB 4.64 billion, a 43% increase from RMB 3.25 billion in 2023, with a gross margin of 47% in 2024 compared to 49% in 2023[54]. - The adjusted operating profit for 2024 was RMB 1.44 billion, compared to RMB 1.09 billion in 2023, primarily driven by revenue growth[40]. - The annual profit attributable to the company's owners was RMB 809,938,000, up from RMB 554,958,000 in 2023, reflecting an increase of approximately 46.0%[120]. - The company reported a net profit margin of approximately 8.2% for 2024, compared to 8.3% in 2023[120]. - The operating profit rose 64% to RMB 1.13 billion, with adjusted operating profit increasing by 32% to RMB 1.44 billion[44]. - The total expenses for the year ended December 31, 2024, amounted to RMB 8,799,286 thousand, compared to RMB 6,042,277 thousand in 2023, reflecting a growth of 46.0%[184]. Financing and Transactions - The total number of financing transactions processed was 726,000, reflecting a 7% growth from 678,000 in 2023[6]. - The financing amount increased to RMB 69.1 billion, marking a 5% rise year-on-year[12]. - Financing transactions facilitated by the company's fintech platform exceeded RMB 20 billion, representing a 107% year-on-year growth[14]. - The company processed 175,000 financing transactions in the new energy vehicle sector, a substantial 51% increase year-on-year[12]. - New car financing transactions decreased by 6% to 376,000, with financing amounting to RMB 38.698 billion, down 4% from RMB 40.205 billion in 2023[27]. - Used car financing transactions increased by 25% to 350,000, with financing amounting to RMB 30.445 billion, up 18% from RMB 25.744 billion in 2023[27]. - Financing for new energy vehicles (NEVs) surged by 51% to 175,000 transactions, with a total financing amount of RMB 17.922 billion, compared to RMB 12.405 billion in 2023[27]. SaaS and Fintech Growth - The company achieved a significant 290% growth in SaaS service revenue, reaching RMB 1,803.84 million compared to RMB 462.68 million in 2023[5]. - The fintech business of the company achieved strong growth in 2024, with revenue soaring to RMB 1.8 billion, a year-on-year increase of 290%[14]. - The average revenue per core customer (ARPCC) increased by 132% to approximately RMB 1.04 million in 2024, up from RMB 447,270 in 2023[34]. - The number of core customers connected to the fintech platform rose from 10 in 2023 to 17 in 2024, accounting for 98% of total fintech revenue[34]. - The fintech business generated revenue of RMB 1.8 billion in 2024, representing a remarkable year-on-year increase of 290%[31]. Asset Quality and Risk Management - The overdue rate for loans over 90 days improved to 1.86%, indicating enhanced asset quality[12]. - The overdue rate for financing transactions over 180 days was 1.39% as of December 31, 2024, a slight improvement from 1.49% in 2023[81]. - The company has implemented a data-driven credit assessment system to manage credit risk effectively across all service categories and product lines[88]. - The company actively monitors historical overdue rates and enhances data analysis capabilities to improve asset quality management[88]. - The expected credit loss (ECL) model follows a "three-stage" impairment model as per IFRS 9, with significant credit risk increases leading to a shift from Stage 1 to Stage 2[148]. Market and Industry Trends - The Chinese automotive finance industry is expected to see greater development opportunities in 2025, driven by rising consumer demand and industry upgrades[15]. - In 2024, China's new passenger car sales reached 27.6 million units, a year-on-year increase of 5.8%[19]. - Retail sales of new energy vehicles in 2024 reached 10.9 million units, marking a 40.7% year-on-year growth[20]. - China's automobile export volume reached 5.9 million units in 2024, reflecting a year-on-year increase of 19.3%[20]. - The government has implemented a series of supportive policies for the automotive industry, including the "old-for-new" subsidy program, which is expected to drive market activity in 2024[22]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.065 per share, representing approximately 50.1% of the earnings per share during the reporting period[16]. - The total dividend proposed for the year ending December 31, 2024, is approximately HKD 878.5 million (approximately RMB 810.9 million), compared to HKD 195.7 million for the previous year[74]. - The company paid dividends to shareholders amounting to RMB 177,681 thousand in 2024, a decrease of 7.4% from RMB 191,963 thousand in 2023[133]. Operational Efficiency and Cost Management - The cost of revenue increased by 53% to RMB 5.25 billion, driven by higher commissions and funding costs associated with the transaction platform and self-financing services[53]. - Sales and marketing expenses decreased by 3% year-on-year to RMB 1.02 billion, primarily due to reduced marketing and advertising costs[63]. - Administrative expenses increased by 26% year-on-year to RMB 443 million, mainly due to higher salaries and professional service fees[64]. - Research and development expenses increased by 20% to RMB 232.6 million, indicating a focus on innovation and technology development[44]. Cash Flow and Liquidity - The net cash used in operating activities was RMB 2 billion for the reporting period, down from RMB 8.7 billion for the year ended December 31, 2023, due to enhanced collection measures[97]. - The year-end cash and cash equivalents reached RMB 4,212,760 thousand, up from RMB 3,479,550 thousand at the end of 2023, representing a growth of 21.1%[134]. - The net cash inflow from financing activities for 2024 was RMB 2,563,956 thousand, a decrease of 73.0% compared to RMB 9,486,435 thousand in 2023[133]. Employee and Workforce Development - The total employee compensation cost for the year was RMB 1,019,000,000, an increase from RMB 945,000,000 in 2023, representing a growth of approximately 7.8%[115]. - The company has 4,278 full-time employees as of December 31, 2024, compared to 4,231 in 2023, indicating a growth in workforce[114].