Good day, ladies and gentlemen, and welcome to the Yiren Digital Second Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, that this event is being recorded. I will now turn the conference over to Keyao, IR Officer of YRD. Please go ahead, ma'am.

Thank you, operator. Good morning and good evening, everyone. Today's call features the presentation by our Founder, Chairman and CEO of CreditEase, our CEO, Mr. Ning Tang; and our CFO, Mr. William Hui who will join the Q&A session after the prepared remarks. Before beginning, we would like to remind you the discussions during this call contain forward-looking statements made under the safe harbor provision of U.S. Private Securities Litigation Reform Act of 1995. Such statements affected risks, uncertainties and factors that may cause actual results to differ materially from those contained in any such statements. For any information regarding future risks, uncertainties or factors is included in our filings for the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under relevant law. During the call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and assess our operational performance. This non-GAAP financial measures are not intended to be considered in isolation or as a subsitute for the financials mentioned prepared and presented in accordance with the U.S. GAAP. For information about these non-GAAP financing measures and reconciliation to GAAP measures, please refer to earnings press release. I will now pass it to Ning for opening remarks.

Thank you all for joining our earnings conference call today. We are pleased to report another strong quarter driven by the continued success of our AI-powered strategy. Our advanced AI capabilities have delivered quantifiable results, more personalized customer engagement, enhanced the risk management with predictable analytics and fraud detection, and improving service efficiency with compliant tailored solutions. This robust AI foundation enables us to innovate faster, exceed customer expectations and optimize operational performance. Our growth is further fueled by 3 strategic priorities -- by 3 strategic priorities: AI innovation, geographic expansion and operational excellence. These initiatives are accelerating momentum across our core business. While unlocking new opportunities through our proprietary AI platform by executing on this strategy, while we are well positioned to sustain long-term success. Here are some of our successes. Our AI sales agent executes over 1,700 personalized marketing tasks daily, which results in a higher customer response rate. The AI capital manager completes the capital deployment optimization process in 10 minutes versus 1 week by 6 employees in the past. The AI risk manager detects and blocks over 30,000 high-risk identity documents daily, resulting in the prevention of over RMB 180 million of loss from fraud annually. Most of our AI agents are monitored 24x7 by our supervisor AI model for quality checks and the system integrity. Before we get into details of our operating results, I would like to address the recent loan facilitation regulation announcement. While the full impact on industry -- on industry take rates and business operations is yet to be seen until the regulations take effect on October 1. We have noticed that credit risk and capital costs have increased slightly. We believe the more regulated environment and the market conditions will trigger industry consolidation as smaller platforms exit the market and…

Thank you, Ning. Hello, everyone. I will be walking you through our financial performance for the second quarter of this year. Please refer to our earnings release and IR deck for further details, both available on our website. We are pleased to report a continued strong performance in the second quarter, with the total revenue growing by 10.4% year-on-year, to RMB 1.65 billion. The growth was mainly driven by 75% revenue growth from the financial services segment, partially offset by decline in revenues from the insurance brokerage and the consumption and lifestyle segment, which we decided to scale down. Our net income rebounded to RMB 358 million in the second quarter, which represents 44.5% increase quarter-on-quarter and a 12.7% decrease year-on-year, but it reversed our 5-quarter declining trends among the net income. In the financial services segment, total loan facilitation volume increased by 57% year-over-year to RMB 20.3 billion in the second quarter. The increase was driven by the strong demand for our small revolving loan products and the growth of repeat borrowers, which accounts for 77% by loan volume in the second quarter this year, up from 56% a year ago. The revenue from this segment increased by 75% year-on-year to RMB 1.5 billion in the second quarter. This segment contributes about 90% of the total net revenue of the company. Our loan-guarantee services also saw a significant growth. The revenue reached RMB 317 million in the second quarter, up nearly 3.6x year-over-year as we complete almost one full guarantee cycle period and higher amounts of deferred revenue from past few quarters is being recognized as revenue. Because of that, the contribution margin for the entire financial service improved from 9.5% in the second quarter of 2024 to 30.2% in the second quarter of this year. In the insurance…

Thank you. Operator, we are now open for Q&A.

[Operator Instructions] Our first question comes from Bruce [ Oren ] of Black Lab Fund.

Congratulations on another strong quarter. Crypto assets have risen substantially this quarter. Does Yiren Digital intend to continue to increase crypto investments?

Yes. And yes, William, you want to take a crack?

No, go ahead, Ning.

Okay. Yes. The crypto is, yes, gaining momentum, and we believe a good part of it represents the future fintech. Yes, as a fintech player, we pay close attention to innovation frontier. And so we will -- yes, continue to work on this emerging asset class. And once we have more news to share, we will be happy to announce. And I do expect that we will do more in this very important sector. William, you have anything to add?

Yes. I just want to add, we increased our crypto position in the first quarter of this year, initially for the purpose of just treasury management, but as the [ stable coins ] and the other crypto-related business in the market have matured, and we are exploring different ways of using the crypto or blockchain to support our core business. But it's still too early to tell, but we are still in the exploration stage right now.

Yes. It's a key part of our strategic discussion and also strategic implementation going forward, I believe.

Do you hedge the risks of investing in crypto?

All right, actually...

We have a long-term view. Yes, we have a long-term view.

Do you have anything to add? I'm sorry.

No, no. I'm just saying I think the simple answer is, we do not hedge because it's really -- well, we do not hedge directly on the crypto assets that we have, but I think we see that the -- as you see in the market that the crypto asset price has been trending up, so which is also our long-term view of the crypto price. And also, the reason we are -- another reason we are holding on those crypto asset is for the strategic purpose, which we are still exploring. So we will update you as we make some progress on that front.

[Operator Instructions] It appears we have no further questions in the question queue. I will now hand over to management for closing remarks.

Thank you, operator. Now that concludes our earnings conference call. And if you have any questions, please welcome to contact our IR team. Thank you.

Thank you.

Thank you. That concludes this conference. Thank you for attending today's presentation, and you may now disconnect your lines.