Financial Data and Key Metrics Changes - Loan facilitation volume reached RMB 35.6 billion, up approximately 58.2% year over year [9][28] - Non-GAAP operating profit hit RMB 606.6 million, marking a year-over-year increase of 91.6% [9][30] - Net profit surged to RMB 540 million, reflecting a year-over-year rise of 97.5% [9][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 reached 1,056,000, representing a year-over-year growth of 126.6% [9] - New borrower contribution to total loan facilitation volume was 28.1% [9] - Sales and marketing expenses increased by 87.5% year over year, primarily due to increased borrower acquisition expenses [29] Market Data and Key Metrics Changes - Total retail sales of consumer goods in China rose by 6.4% year over year, with a growth rate of 5.9% in March [8] - The company maintained partnerships with 69 financial institutions, with another 55 in discussion [11] Company Strategy and Development Direction - The company is focusing on independent innovation and digital transformation, promoting a "four plus two" AI development strategy [12] - A new Fuxi model management platform was launched, covering 90% of business lines and improving operational efficiency [12][13] - The company is adapting to new regulatory frameworks to enhance service quality and promote industry development [50] Management Comments on Operating Environment and Future Outlook - The management expressed cautious optimism regarding future growth despite global uncertainties affecting China's economic recovery [26] - For Q2 2025, the company set 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 [17] - The share repurchase program has an upper limit of USD 30 million, extended to June 12, 2026 [17] 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][37] 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 outlook - The significant increase in net profit was driven by higher loan facilitation volume, optimization of revenue structures, and improved operational efficiency through AI investments [45][46][48] - The company remains committed to high-quality, sustainable growth and expects significant profitability improvements for the full year of 2025 [49] Question: Impact of new financial regulations - The new regulations are seen as a recognition of the loan facilitation model, and the company is actively adapting to meet the evolving requirements of its institutional partners [50][51]

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]