Financial Data and Key Metrics Changes - Loan facilitation volume reached RMB 35.6 billion, up approximately 58.2% year over year [28] - Non-GAAP operating profit hit RMB 606.6 million, marking a year-over-year increase of 91.6% [28] - Net profit surged to RMB 540 million, reflecting a year-over-year rise of 97.5% [30] - Net profit margin reached 30.4%, significantly higher than 18.5% in Q1 2024 [45] Business Line Data and Key Metrics Changes - New borrower acquisition increased by 126.6% year over year, with 1,056,000 new borrowers added [9] - Loan facilitation service revenue accounted for 83% of total revenues in Q1 2025, up from 56% in Q1 2024 [47] - Guarantee-related revenue dropped to 9.6% in Q1 2025, down from 35.6% in the same period last year [47] Market Data and Key Metrics Changes - Total retail sales of consumer goods in China rose by 6.4% year over year, indicating a pickup in consumer spending [8] - In Indonesia, new registered users surged by 196% year over year, and loan volume grew by 190% year over year [13] Company Strategy and Development Direction - The company is focusing on independent innovation and digital transformation, promoting a four plus two AI development strategy [11] - Strategic partnerships with 69 financial institutions have been established, with another 55 in discussion to ensure robust funding support [10] - The company aims to adapt to new regulatory frameworks and enhance service quality to support financial inclusion [51] Management Comments on Operating Environment and Future Outlook - Despite global uncertainties, the company remains cautiously optimistic about future growth [26] - For Q2 2025, the company sets guidance for loan facilitation volume at RMB 37 billion to RMB 39 billion and non-GAAP operating profit at RMB 616 million to RMB 730 million [26] Other Important Information - The company updated its dividend policy, raising the payout ratio to approximately 30% of the previous fiscal year's net profit after tax [16] - The share repurchase program has an upper limit of USD 30 million, extended to June 12, 2026 [16] Q&A Session Summary Question: Customer acquisition costs and credit risk management - The company has observed a rising trend in customer acquisition costs due to market dynamics and strategic decisions, and plans to enhance risk modeling capabilities to improve asset quality [33][34][36] Question: ADR delisting risk - The company believes the risk of delisting remains relatively low and is preparing for alternative scenarios, including potential dual primary listing in Hong Kong [38][39][40] Question: Drivers behind net profit increase and future profitability outlook - Key drivers for the 97.5% increase in net profit include significant growth in loan facilitation volume, optimization of revenue structures, and improved operational efficiency through AI investments [45][46][48] Question: Impact of new loan facilitation guidelines - The new regulations are seen as a recognition of the loan facilitation model, encouraging better service quality and promoting orderly industry development [51][52]