A：The company had a firm first quarter with a recovery in China, overseas business scaling under the pressures of technology, and investment compounding into operating efficiency. The revenue reached 3.2 billion RMB, up 6% sequentially. Operating profit was up 13% sequentially, and net profit came in at 421 million RMB.

A：The overseas business continued to grow with revenue reaching 949 million RMB, up 35% year over year, and operating profit at 46 million RMB, up 88% year on year. This reflects the scale built and the earnings power established independently.

A：The first quarter in China was described as 'patient' with early signs of recovery, helped by credit risk management and a decrease in vintage delinquency by 30 basis points. The one delinquency ratio also improved, and 30-day collection rates ticked up, indicating a gradual improvement and allowing for cautious reengagement with growth.

A：The overseas market segment acts as a regional platform leveraging the 'Lego Plus' framework. This quarter demonstrated the replication of risk infrastructure, product architecture, customer strategy, funding, and relationship-building capabilities across markets. Notably, transaction volume was steady, unique borrowers more than doubled, and the platform expanded its operations by deploying AI-driven risk infrastructure and credit models, resulting in stronger segmentation and portfolio economics.

A：The company's long-standing community engagement programs continue to make an impact, with the new business support program reaching more small business owners in China, helping them to upgrade their businesses with operational and funding support.

A：The overseas operations are being presented as a separate segment for clarity, as they have established their own scale, trajectory, and profitability distinct from China. This allows investors to view the growth potential of the overseas segment alongside the stability provided by China.

A：Consumption settlement holdings in China are showing a resilient outcome as the company continues to work through the market reset. In the second quarter, they were largely flat on quarter given the sustainability of Q1 results.

A：The company's net revenue reached $2.2 billion, up 7% sequentially with a risk-taken-on percentage of 3.2%, supported by better risk performance. Indicators such as vintage delinquency, daily delinquency, and the 30-day collection rate all showed improvements. The M2 flow rate declined, and the company maintained stable partnerships with a broad base of financial institutions.

A：The overseas segment reported a year-over-year revenue growth of 35%, with adjusted EBITDA up 87%. All three markets contributed to this growth.

A：The company is embedding its financial services into the daily lives and customers of each market, across three themes: customer upgrading through target product development, preparation as a core capability, and refining the proprietary risk infrastructure. Despite a seasonal low period, transaction volume and the loan balance grew 5% sequentially, and customer quality improved.

A：In response to new pricing regulations, the company tightened lower origination, and early read on risk indicators suggest that the caution taken is paying off. The company has navigated pricing in transactions in Indonesia and China and is approaching Indonesia with the same post-trend and confidence.

A：The company has added a prominent international bank to its founding partnerships in the Philippines, which has led to a 6% increase in revenue, driven by an improved take rate.

A：Operating profit improved by 30% quarter on quarter to M$547 million, offset by the impact of FX fluctuation. Net income reached M$421 million, up 1% sequentially.

A：The company has deployed $154 million towards share repurchase, reflecting its conviction in its business and commitment to shareholder outlook. The Board of Directors approved the 8th annual dividend of US$0.306 per share, representing a DPS increase of 10.5% over the year.

A：The company reiterates its revenue guidance for the next fiscal year in the range of MMB 11.5 billion to MMB 12.9 billion and aims for an EBITDA margin of 15% growth in revenue from overseas markets.

A：The challenges and adjustments include working with financial institutions and internet platforms to restructure workflow under a renewed framework, with the need to hammer out many details on implementation. It's too early to say for sure how this will work, but there will be adjustments to the current process, and the regulation reinforces that core financial decisions rest with licensed financial institutions.

A：The company provides technology and data tools to its partners, who make the final call on credit approval and risk assessments. This partnership model is considered the industry bar for compliance and, despite near-term adjustments, is seen as a net positive for the company due to its strong compliance and technology infrastructure.

A：The current status shows that domestic risk performance has continued to improve in the second quarter, with a decrease in delinquency rates to levels from July and August of the previous year. This improvement reflects the risk measurement built across the full credit life cycle, which has helped offer higher limits and better pricing to high-quality customers. As a result, the company is selectively increasing the credit limit for high-quality existing borrowers and expanding the potential customer pool. The company is making progress in sustaining the growth from the first quarter into the second and will continue to focus on high-quality growth and balancing volume, risk, and profitability.

A：When analyzing segment disclosure and operating indicators for overseas markets, the company does not provide metrics for APR, funding costs, or risk by market due to their differences, but instead gives high-level guidance. They focus on maintaining high standards, such as offering different prices for high-quality customers and improving asset quality through risk capabilities. Recent metrics are improving across all markets, and the goal is to progressively bring these down moving forward.

A：It is too early to guide on the EBITDA contribution from overseas markets by 2030 as it depends on numerous variables. However, for 2026, the company has a clear target, which has been detailed over the past few years with a value creation roadmap and strategic execution that has delivered results.

A：The company's international strategy involved several key steps: 1) proving and replicating the operating model in Indonesia, the Philippines, and other markets; 2) setting long-term goals and delivering steadily as the business grew; and 3) a full strategic upgrade to 'legal class,' developing markets like Australia and combining platform-level advantages. This has led to fundamental upgrades in regulatory experience, product structures, risk capabilities, and funding networks. As a result, the company is well-positioned for future growth with an integrated platform that allows systematic use and mitigation of experiences in new markets.

A：The factors contributing to the profitability of the overseas business in Melbourne include a diverse and resilient business model with strong growth, increasing profitability, and a 35% year-over-year revenue growth with an 87% increase in EBITDA in the first quarter of 2025. The co-driver behind this growth is a data-driven platform, 'Du fly loop,' with over 56 million registered users. This growing data pool enhances risk models, and high-quality assets attract institutional funding. The strategy of focusing on high-quality customers and continuously expanding the offline by paler product has been effective, with more capital at better costs allowing service to broader and higher-quality customer segments across Indonesia, the Philippines, and Australia. Looking ahead, the business is confident in its ability to grow both top line and profitability, and as the business scales, the flywheel effect will accelerate. The long-term vision is to become a global example of technology-driven, inclusive financial platform operating across multiple fronts globally.