Financial Data and Key Metrics Changes - In Q3 2025, loan volume reached RMB 50.89 billion, revenue was RMB 3.42 billion, and net profit was RMB 521 million, reflecting a 2% increase quarter-over-quarter and a 68% increase year-over-year [5][22] - The net profit take rate increased to 2.01%, up by 9 basis points quarter-over-quarter and 92 basis points year-over-year [5][22] - Total revenue decreased by 5% quarter-over-quarter, primarily due to a 29% decrease in e-commerce platform service income [32] Business Line Data and Key Metrics Changes - Net revenue from the credit business decreased by 3% to RMB 1.9 billion, attributed to increased credit costs [22][23] - E-commerce business net revenue increased by 14% to RMB 111 million, while total net revenue from both credit and e-commerce business decreased by 2% to RMB 2.1 billion [23][32] - E-commerce GMV for essential daily consumer goods grew 58.5% quarter-over-quarter and 133.8% year-over-year [11] Market Data and Key Metrics Changes - The company ceased facilitating loans with APRs above 24% starting October 1, impacting both business volume and average loan pricing [39] - The industry-wide liquidity tightened further in Q4, affecting credit risk and operational dynamics [15][19] Company Strategy and Development Direction - The company is focused on enhancing risk management capabilities and adapting to new regulations, which are expected to raise industry entry barriers [6][15] - A customer-centric approach is emphasized, with initiatives to improve user experience and satisfaction [9][12] - The company plans to continue investing in its ecosystem businesses to drive steady growth and capture opportunities arising from industry adjustments [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable performance growth despite industry fluctuations and regulatory changes [13][33] - The company anticipates moderate loan volume decline in Q4 due to regulatory impacts, but expects to see stabilization in risk indicators towards the end of the quarter [54][56] - The long-term outlook remains positive, with expectations for gradual recovery as the regulatory environment stabilizes [57] Other Important Information - The dividend payout ratio was increased from 25% to 30% of net profit, and share repurchase programs are progressing well [6][35] - The company has maintained a solid financial position with cash reserves of approximately RMB 4.3 billion and shareholders' equity of about RMB 11.8 billion [32] Q&A Session Summary Question: Impact of new regulation on business operations - Management confirmed that the new regulation has led to a shift in business practices, including ceasing loans with APRs above 24%, which has affected business volume and pricing [39] Question: Development strategy and outlook for e-commerce business - The e-commerce business is focused on expanding product categories and improving risk management, with significant growth in transaction volumes during shopping festivals [43][44] Question: Managing credit risk during transitional period - The company has enhanced its risk management system to identify vulnerable customers and control risk fluctuations effectively [48][49] Question: Outlook for Q4 and full year 2026 performance - Management expects a moderate decline in loan volume for Q4 due to regulatory impacts but anticipates significant year-over-year growth for the full year 2025 [55][56]