Yixin Group Limited (2858) Earnings Call Transcript & Summary

Good evening, investors and analysts. Welcome to the Yixin Group 2025 Annual Results Announcement. Today's session is being conducted via live audio webcast and conference call. Please allow me to introduce the members of our management team joining us today. They are Chairman and CEO, Mr. Zhang Xuan; Co-President, Mr. Gao Zhi; Chief Financial Officer; Mr. Yang Xiaoguang; Chief Technology Officer, Mr. Jia Zhifeng. Today's meeting consists of two parts. First, management will provide a detailed review of our 2025 annual results. This will be followed by a Q&A session. To begin, I'd like to invite our Chairman, Mr. Zhang Xuan, to deliver his remarks, please.

Hello, everyone, distinguished shareholders, investors and friends. Good evening to you all. I'm Zhang Xuan, Chairman of Yixin Group. Welcome to our 2025 annual results announcement. On behalf of the group, I'd like to thank you for your interest and support. Today's presentation will be organized into the following section. First, I will give you an overview of our company and industry trends. Then our Co-President, Mr. Gao Zhi, will share the business highlights for 2025. Next, our CTO, Mr. Jia Zhifeng, will discuss our core competitiveness and progress in AI. Following that, our CFO, Mr. Yang Xiaoguang, will report on our 2025 financial performance and the development of our overseas business. Mr. Jia Zhifeng will then return to outline our future road map for AI agents. Finally, we will open the floor for a Q&A session. First, let's take a look at the fundamental profile of Yixin. As an AI-driven fintech platform, we've established a dual core business model covering both new and used cars. Our core strategy remains focused on driving financial innovation through technology. On the asset side, we have over 44,000 partners spanning every province in Mainland China, including [ Xizang ] Tibet. On the funding side, we collaborated with over 100 financial institutions, including banks, trusts and financial leasing companies. We maintain a deep partnership with our major shareholder, Tencent, engaging in technical synergy across cutting-edge fields such as big data, AI and cloud computing. Our industry-leading risk management system, we have ensured the security of our assets under management. These strengths have built a robust moat for our long-term growth. It is worth noting that thanks to our deep roots in auto finance, our cumulative transaction volume surpassed RMB 400 billion by February 2025. This achievement highlights our leadership in the industry. In December 2025, we were officially included in the newly launched HKEX Technology 100 Index. This marks recognition from the capital markets regarding our innovation, industry influence and potential for sustainable growth. Moving on, let's take a look at the overall industry and market performance. In 2025, trading policies continue to yield results, providing a clear boost to auto consumption and replacement demand. China's passenger vehicle market remains stable with steady progress, though competition remains intense. According to CAAM data, new passenger vehicle sales reached 30.1 million units in 2025, up 9.2% Y-o-Y. According to CADA statistics, used passenger car transactions reached 15.74 million units in 2025, a year-on-year increase of 0.4%. In 2025, the Chinese auto market continued to advance into a new stage of development driven by the dual engines of intelligence and electrification. According to CPCA data, new EVs maintained rapid growth, rising 17.5% Y-o-Y. Meanwhile, the retail penetration rate of NEVs has exceeded 50% for several months. In the field of intelligent driving, empowered by AI, big data and improving industrial policies, the intelligent driving sector entered a new era of 2025. We saw a rapid increase in the penetration of high-level autonomous driving with global giants accelerating their layout across the entire industrial chain. Looking ahead to next year, as renew and replace policies take deeper route and transition to intelligent EVs accelerate, we expect the market to maintain steady growth in scale and optimization in structure. Companies are focusing more on technical innovation, product quality and service optimization. This shift towards healthy competition will drive the entire industry towards sustainable development. Now let's turn to the current landscape of auto finance market. According to third-party data, the Chinese auto finance market is expected to reach RMB 2.9 trillion in 2025 with sustained high-speed growth is projected to surpass RMB 5 trillion mark by 2029. The growth is supported by 3 core drivers. First, policy guidance. On one hand, the industry's anti-rat race trend is deepening, irrational competition such as excessive interest rebates and subsidies is being strictly regulated, leading to a cleaner industry ecosystem. On the other hand, the government is focused on the sector through policies like the guiding opinions on financial support for boosting and expanding consumption, they are encouraging financial institutions to provide support within consumer scenarios, creating a favorable policy environment. Second, demand side drivers. As public acceptance of auto finance grows, products are reaching more consumers in lower-tier markets. Used car finance penetration is rising consequently is expected to reach 40% by 2025 according to third-party data. Meanwhile, there is a growing demand for life cycle financial services, ranging from the initial purchase to insurance, maintenance, charging and trade-ins providing one-stop solutions for diverse customer needs. Lastly, there is the driver of industrial ecosystem. The wave of Chinese automakers going global is internationalizing auto finance services. Emerging markets, particularly Southeast Asia, have opened up growth opportunities. Furthermore, as technology evolves, we are providing customized lead financing and asset management for new business models like ride sharing and card subscription, further expanding the boundaries of our services. To capture these opportunities, Yixin will continue to focus on building core capabilities. By leveraging our tech edge and deep presence in various scenarios, we aim to consolidate our leadership, providing superior services to promote the healthy development of China's auto finance industry. Next, I will hand it over to Mr. Gao to introduce our business development in 2025, please.

Thank you, Andy. Then I'm going to introduce our business performance highlights. In 2025, despite a complex external environment, our company maintained steady growth. Our performance featured the following highlights. First, our core business grew steadily as we captured structural growth opportunities. In 2025, our group's auto financing transaction volume reached [ RMB ] 75.1 billion a 9% increase Y-o-Y. Driven by our strategic focus, the used car segment grew rapidly with a year-on-year growth rate of 38%. Our FinTech business achieved fast progress with a facilitated financing scale reaching [ RMB ] 40.3 billion in 2025. Additionally, in November, we officially launched the industry's first self-developed agentic AI model, XinMM-AM1. This model is dedicated to solving long-standing pain points in the auto finance sector and driving the automation and intelligent upgrade of the entire history value chain. Next, I will elaborate on our business dynamics, starting with our core segment, auto financing services. First, in 2025, our total transaction volume reached 844,000 units, representing a 16% increase. In terms of new car segment, transaction volume stood at 307,000 units with financing totaling RMB 33.1 billion. The slight dip in new car volume was a result of our strategic choice to prioritize high profitability financing business. We continue to deepen partnerships with manufacturers. The number of headquarters to headquarters collaborations with OEMs and dealers has reached nearly 60. Special task forces are expanding this footprint while driving product innovation. For instance, our new residual value product co-developed with leading manufacturers was launched this year. Additionally, we have enhanced service accuracy and efficiency through system upgrades that optimize standardized processes and streamline application sales. Next, used car segment. Our transaction volume reached 537,000 units with a financing amount of RMB 42.1 billion, up 38%. This growth was primarily driven by our proactive expansion into the long-tail customer segment. We launched [Foreign Language], a risk-based pricing product that provides instant approval solutions based on customer profiles, helping us capture a larger market share. Next, new EV segment. Our growth in new EV finance business remains significant. Transaction for NEVs rose 28% to 234,000 units with the financing amount increasing to RMB 23.2 billion. In 2025, financing for new EVs accounted for 55% of our total new car finance volume. Furthermore, the rapid growth of NEV ownership is growing the used NEV market. Within Yixin's new EV business, used car transactions now account for 23.5% of the total. And next, let's take a look at our FinTech business. Since we officially introduced the FinTech services to the market in 2022, this segment has experienced rapid growth. First, tech empowerment continues to drive NEV penetration. Under our FinTech model, the penetration rate of new energy vehicles in new car sales has reached 61%. Second, financing transaction volume, it reached RMB 40.3 billion, a year-on-year increase of 91% sustained explosive revenue growth, our revenue reached RMB 4.5 billion in 2025, up 150%. Fourth, deepening partnerships to expand our footprint. Our FinTech business now covers a diverse range of institutional partners, including banks, financial leasing companies and OEMs. We're expanding both the breadth and depth of this collaboration. Through the continuous development of our fintech business, we have remained focused on high-quality customers and deepening our cooperation, which has yielded significant results. In terms of customer expansion, our core business base is expanding steadily, growing from 70 institutions in 2024 to 24 in 2025. Meanwhile, our revenue contribution from its core clients has further increased, averaging RMB 186 million per core client in 2025, accounting for 99% of our total revenue. It reflects the effectiveness of our deep customer operations. Our FinTech Business continues to develop across 2 models, pure technology and tech plus traffic. In terms of pure technology output, for instance, the risk control models we provide to well-known OEMs effectively filter high-quality customers and reduce fraud risk. In 2025, the financing volume facilitated under this model reached RMB 3.21 billion, a 74% increase year-on-year. In terms of tech plus traffic services, while facilitating transactions, we leverage our channel and data advantages through tech empowerment such as collaborating with city commercial banks and state-owned banks to screen customers with auto finance needs and provide product and risk management support. We enhanced our overall business volume. In 2025, financing volume under this model reached RMB 37 billion, up 93%. In summary, the scale effect of Yixin's FinTech segment is accelerating. In the future, we will rely on cutting-edge technology to deepen scenario-based applications, providing comprehensive tech empowerment for our institutional partners in the auto finance sector. Next, let's look at value-added services. By partnering with major domestic insurance institutions, these services provide diversified products such as car ownership benefits and supplemental insurance, designed to enhance user experience and customer loyalty. This segment is a vital part of our business ecosystem. In terms of value-added services, our core product, the benefit package performed well with transaction volume climbing to 401,000 units, an 8% increase. On the revenue side, although the per unit price of value-added services decreased due to the higher proportion of used car business, we still achieved revenue of RMB 249 million, remaining flat compared to last year. It is worth mentioning that our battery GAP product grew rapidly with 74,000 units sold throughout the year. This penetration rate is particularly impressive, rising up from 11.7% and reaching 41.3% in our new car sales, up from 28.7%. Our product appeal has strengthened significantly. Moving forward, we will continue to optimize our product system, deepen insurance partnerships and tap into more high potential value-added services. This will drive continuous business growth while increasing value for our users. Next, our CTO, Mr. Jia, will introduce our core competitiveness and our progress in AI.

Thank you. First, let's talk about our core competitiveness. One of that is our integrated 4 scenario and 4 chain risk management screening system. By embedding AI technology across the prefinancing, in-financing and post financing stages, we've achieved both precise risk control and enhanced efficiency. Based on our Xin series models, we have formed a model metrics covering the entire auto finance value chain. We have also launched modular products tailored for different stages, such as [Foreign Language]. In terms of customer acquisition and application, we employ a dual-engine strategy for both online and off-line acquisition. AI is used for intent certification to prioritize users from diverse channels. During the preapproval stage, we use multi-model large language models for dynamic front-end monitoring, identifying and blocking high-risk customers to ensure quality and source. We leverage our self-developed credit scoring system. With [Foreign Language], we integrate traditional machine learning with AI to build precise algorithm models. By utilizing our massive data asset, we conduct multidimensional analysis of our credit histories and risk profiles, achieving precise matching of financial solutions. In terms of post loan asset management, our Shanghai Asset Center implement full life cycle management using reasoning large models with both an AI asset management brain that breaks away from traditional aging-based management, allowing us to tailor strategies for assets at different stages. We've established an asset auction platform to maximize value recovery. As AI empowerment deepens, our business revenues have been remarkable. In critical decision-making scenarios like risk assessment and asset management, 100% of our customers are matched with optimal plans. Our automated approval rate has risen to 63%. And [Foreign Language] product usage rate has reached 51%. This secures our assets while laying a solid foundation for sustainable growth. 2025 has been a year of comprehensively deepening our AI-driven core strategy. Yixin has always been guided by tech innovation and scenario-based applications. We are building a new auto finance paradigm that covers the entire chain or scenarios and forward cycle, achieving breakthroughs in both our R&D and business implementation. At the Wuzhen World Internet Conference in November last year, we officially launched the industry's first agentic model, XinMM-AM1, making us the first in the sector to do so. It achieved reasoning performance comparable to RMB 100 billion parameter general model while reducing deployment costs and latency. This model processes core competitiveness, a processes of core capabilities such as autonomous decision-making, multi-step reasoning, tool cooling and environmental injection. It enables end-to-end orchestration of complex workflows from customer outreach to credit assessment to plan generation and postal loan management, effectively resolving the bottlenecks inherent in traditional process. Next, let me introduce our AI employee deployed in the prefinancing stage. Silicon-based [indiscernible] prefinancing stage in auto finance has long faced several potential charges, growing lead volumes versus high manual calling costs, inconsistent scripts across agents, leading to fluctuating commercial rates and rising management and compliance costs. Market competition now demands much higher efficiency and stability. Therefore, Yixin chose to implement agent-based practices in prefinancing, opting for an AI-first restructuring of workflows rather than simply hiring more staff. Our silicon-based [indiscernible] currently handles 3 types of tasks: first, replace high-frequency repetitive tasks through rule-driven and agent collaboration deep flow automatically without many screening. AI handles standardized processes like initial outreach and basically for confirmation, freeing human agents from technical work. Second, enhancing experience and compliance consistency, leveraging the long-term memory AI maintains to inform script across multi-round dialogues, eliminating human error while ensuring complete record for 100% compliance management. Third, featuring high-intent customers. AI can identify customer emotions and intense levels during conversations to certify leads. High-quality leads are then handed over to humans or downstream system, allowing our workforce to focus on high conversion stages. Operational data shows that AI has entered a stage of large-scale production. Since launching in Q4, our silicon-based workforce has grown steadily to 35 agents. In long horizon interactions, the AI averages [ $12 ] per customer over a 9 to 16 hour spend, and pre-approval completion rate is stable, matching or even exceeding that of human agents, demonstrating the immense value of our long horizon agents. In terms of productivity, we are glad to find that a single AI agent can process 3x as many customers as -- for overall capacity. To date, silicon-based [indiscernible] stable iteration and scaling in pre-approval with weekly optimization. Our goal is not simple replacement but synergy, letting AI handle standardized high-frequency tasks while humans focus on judgment and conversion. Meanwhile, silicon-based [indiscernible] has successfully mitigated the application stage. We have started piloting the integrated preapproval and application workflows, and we'll continue expanding AI application to more status throughout the year. This impact is direct: more controllable cost structures, more standardized processes and more stable conversion efficiency. In the future, Yixin will leverage these experiences to export our industry know-how, a combination of data and tech advantages through AI SaaS product. We aim to expand incremental business value by GMV-driven logic, allowing partners to utilize our AI capabilities to boost the customer experience and conversion rates, creating a true win-win. Finally, I'd like to report on our sustainability initiatives. Yixin has established an ESG Committee at the Board level to strengthen corporate governance while promoting the healthy development of the auto finance industry. We actively fulfill our social responsibilities. Inclusive finance achievements, in 2025, our department served over 350,000 customers. The reach is broad, with ethnic minority customers accounting for over 10% by providing door-to-door services in remote areas. We are solving the last mile problem of financial accessibility, making services more equitable. We've also launched a financial product for agricultural drones, providing differentiated support for agriculture modernization and the rural industrial upgrading. An terms of industry leadership, we actively participate in industry exchanges and self-regulatory mechanism. In 2025, our group was deeply involved in key auto finance conferences and research projects sharing our experience in AI-driven risk control, industry self-regulation and risk prevention will continue to drive industry upgrades and provide support to society. I will now hand over to our CFO, Mr. Yang, to discuss our financial performance and overseas business development.

Thank you. This year, the key highlights of our financial performance are as follows: First, our revenue maintained rapid growth, increasing 17% year-on-year to reach RMB 11.56 billion, surpassing RMB 10 billion for the first time. It is worth mentioning that -- our gross margin improved sustainably from 47% to 56% in 2025. And you could see that there is a significant increase in our gross profit. And our overall profitability continued to strengthen with adjusted net profit reaching RMB 1.43 billion, a year-on-year increase of 33%. First, let's break down our revenue structure. Our SaaS business increased sharply, accounting for 39% of the total. It is very close to half of our total growth. So we could see that it increased 1.5x year-on-year with our FinTech SaaS revenue. And then let's break down our revenue structure with more details. Our platform revenue increased by 18% year-on-year, accounting for 80% of the total. Just now we mentioned -- our FinTech SaaS business, as mentioned earlier, continues to grow rapidly and has become our largest business segment by revenue share. In addition, our GMV increased rapidly, as mentioned by Mr. Gao, surpassing RMB 40 billion. Then in terms of self-operated revenue, it increased 20% year-on-year, primarily driven by the expansion of our financing lease assets. Next, let's look at the growth in our gross profit and its key drivers. In terms of self-operated business, in 2025, the net interest spread of our leased assets saw a marked year-on-year improvement. This was mainly due to the continued decline in our cost of funding with the average cost dropping by 8 basis points, which expanded our spread while asset side yield remained relatively stable. And in terms of platform business in 2025, the net service fee rate for platform financing growth further driven by 2 factors. First, similar to our self-operated business, we benefited from a downward trend in the implied settlement rates of our funding partners. Second, we successfully shifted our business structure with used cars now accounting for 75% of our platform financing services and partnerships with financial leasing companies helped increase the proportion of our long-tail used car customers, driven by these factors, our overall gross margin returned to over 50%. Next, moving forward, talking about our expenses. You could see the total R&D expenses increased by over 20%, primarily driven by increased investment in human capital, software and hardware for AI and overseas expansion. Overall, it is at a steady growth. It is in a healthy state. So as we mentioned, due to the increased investment in human capital and our overseas expansion, our overall operating expense ratio remained basically flat compared to last year. In terms of asset quality, despite a complex external environment, our NPL ratio remained stable. As of late December, our 90-plus day delinquency rate stood at 1.89%. Meanwhile, we maintained sufficient coverage for nonperforming assets with a provision coverage ratio of 213% at year-end, an increase of 12 percentage points year-on-year. This is primarily based on several factors as follows, and we will continue with our efforts. Now moving on to our profitability. So in 2025, non-IFRS net profit reached RMB 1.4 billion, and we realized a promise to the capital market. So in 2026, we will continue our efforts and strive to deliver better performance. Now let's review our balance sheet. On the funding side, we emphasize the security and stability of our capital sources and have employed various means to further drive down financing costs. During the reporting period, our financing activities saw several highlights. As of December 2025, we have partnered with over 100 financial institutions. Our bonds in ABS investor base has grown to over 70, including more than 10 international institutional investors. And standardized products continue to be well received. It's fair to say that we are leading issuers in the market -- in the auto market, and we have reached 72 billion of the total. So our standardized products continue to be well received in the market. As of the end of last year, we have issued a total of 85 standardized products like ABS and ABN, including multiple successful 3A international rated ABS projects. Recently, the all-in interest cost for some structured products have dropped below 3%. In addition to issuing credit bonds like PPNs and SBPs, we continue to diversify our financing channels. In June 2025, we issued China's first domestic 2-stage revolving SLL with a coupon of 3.0%. In July, we issued our first ever U.S. dollar credit bond that is first of its kind, a $70 million private placement with a 5.37% coupon. Looking ahead, we will continue to explore new channels, models and tools to ensure the liability side provides strong support for our growth. On liquidity, Yixin has always maintained high standards for internal liquidity management showing an increase over the years. As of late December last year, our cash and cash equivalents stood at RMB 4.5 billion, a slight increase from the previous year. Furthermore, our debt-to-asset ratio was a minor increase, but still well within a healthy state. Finally, I'd like to report on our vintage delinquency performance. We've consistently invested in tech and optimized operational -- operations across channel management. And here, you can see our Tier 1 upmarket customers. The delinquency performance for this group is excellent and the performance of recent assets remains very stable. The second, Tier 2 prime market customers and Tier 3 near prime market customers. You can see be it Tier 1, Tier 2 or Tier 3 customers, whether viewed by customer segment or through a horizontal comparison of different vintages, they have shown the consistency. You can see the values are within our predictions. It's fair to say that the overall trend is under our prediction that's in line with our expectation. It shows that when it comes to customer segment, we have the consistency in our strategy and our overall asset quality remains robust. In the future, we will continue to leverage cutting-edge technologies like AI to optimize our risk management and ensure the healthy development of our business. Finally, I'd like to briefly update you on our international progress and plans for the future. In 2025, our group's international business achieved a systematic breakthrough as our first overseas market, our Singapore operations have entered a phase of stable profitability, marking a critical milestone in our global strategy. On the business front, Yixin's auto finance service scale now consistently ranks among the top 3 nonbank auto finance institutions in Singapore. On the funding front, we've established credit partnerships with several leading local commercial banks. This has broadened our local financing channels and provided a solid foundation for expansion. On the technology front, our export intelligence system serves as the core vehicle for our tech export strategy and has gained wide market recognition for its leading digital capabilities. By empowering local dealers, exports enable full digitization of inventory management and intelligent integration of financial channels, enhancing operational efficiency and customer experience, increasing the loyalty with our customers. As of the end of 2025, export has covered over 50% of local dealers with market penetration continuing to rise rapidly. Our group officially established its international business headquarters in 2025 to centralize global resource allocation and risk management. In the fourth quarter of 2025, we successfully entered the Malaysian market. Within just 3 months of operation, we ranked among the top 3 local nonbank auto finance institutions. Our goal is to become the market leader in Malaysia by 2026 and achieve profitability, demonstrating Yixin's strong localized execution and market adaptability. During our overseas expansion, we adhere to the principle of combining local insights with global capabilities. We conduct deep analysis of customer needs and competitive landscape in target markets. By leveraging our risk management systems and [ AI tech ] office, we employ a finance plus technology dual-driven model. This has resulted in a standardized, replicable and efficient market entry strategy, shortening the cycle from preparation to scale and improving the efficiency of resource investment. Looking ahead, our group will continue to deepen our footprint and accelerate its overseas expansion, striving to build a globally influential auto finance technology brand. I will now hand the floor to Michael to introduce our AI strategic road map.

Thank you. Now I will outline our overall strategic AI road map. We believe that AI in the financial sector will evolve from a supporting tool into essential infrastructure. Given this trend, we have chosen to build core competitiveness rather than simply being a user of external technologies. Our core strategy revolves around solving auto finance AI agent, restructuring our business process across the prefinancing, in-financing and postfinancing stages. This is not just a localized technical upgrade, but structurally out in response to shifting industry dynamics and future competition. Yixin's developments are divided into the following stages. During the generative AI 2.0 stage, we completed the transition from LLM integration to the deployment of our robotics platform. We built a self-controlled underlying capability framework, laying the groundwork for applications. In November, with the launch of XinMM-AM1, we entered the 3.0 stage centered on intelligent agents. On this basis, we defined a 3-step path covering the pre, in and post financing phases. The AI agent for the prefinancing stage officially went live in December that is currently in a phase of iteration and scaling with the goal of steadily improving speed, screening efficiency and pre-approval quality. Our next focus is the upgrade of the end-to-end AI risk management system during the in-financing stage with core breakthroughs in 2 areas. First, we are using omni model end-to-end AI models to reconstruct the existing risk control chain. This reduces information loss inherent in traditional multistage processing while enhancing the models generalization capabilities to more effectively identify long-tail risks. Second, we expand the coverage of differentiated pricing, aiming to reach 80% of customer base. By dynamically adjusting solutions, we aim to improve customer acceptance. Under the premise of controlled risk, our short-term goal is to increase the approval rate for controllable segments by 30% -- 20%. In the post financing stage, we plan to extend our asset management brand to outsource the management scenarios. Through final risk stratification, we can reduce unnecessary outsourcing for customers predicted to be low risk such as Level 5, thereby optimizing resource allocation. Based on our experimental validation, the M1 recovery rate is expected to improve by about 15%, boosting total collections. Our priority for the next phase involves 3 areas. First, optimizing existing models and algorithms to improve accuracy and stability across all stages. For example, reducing lead screening errors, enhancing the stability of in-financing risk models and optimizing postfinancing intelligent classification. Second, gradually expanding AI capabilities to upstream and downstream auto finance scenarios, allowing AI to play a role across the entire value chain. Third, strengthen the development of compound talent with both technical and business expertise to ensure the long-term advancement of AI strategy. Moving forward, Yixin will continue to deepen our [ 4 link ] auto finance AI agent strategy. Through verifiable business results, we will enhance efficiency, risk control and asset operations, making AI a core part of our operational DNA. Thank you very much.

Thank you to our management for the presentation. We will now move into the Q&A session. We welcome questions from our investors. [Operator Instructions].

Our first question comes from the conference call. It is a Chinese-speaking investor from Guotai Junan Securities, [ Xun Qun ] . Please ask your question.

Okay. I'm [ Xun Qun ] from Guotai Junan Securities. I have actually two questions. First, from your announcement and from your annual report, I see that you have a subsidiary, Yusheng. It been at this equity stage, and you are the parent company of that subsidiary. So I'd like to know the reason for the bond-to-equity transition. And second, I'd like to know more about your internationalization strategy. I know many Chinese companies are going abroad. That is the main direction forward. As mentioned and introduced by Mr. Yang. So I'd like to ask a follow-up question. For your overseas business, including in Singapore, Mexico, I'd like to know your current progress and whether there are some new attempts in the future or plans for the future. Can you share with us your latest plan for internationalization.

Thank you, Xun Qun, for asking these two questions. First question regarding our subsidiary, Indeed, on the 2nd of March this year, for Yusheng, so it has entered the bond to equity stage, and it has been regarded as the equity stage. And I'd like to point it out that actually, if we compare the convertible bond to the equity, so convertible bond is more related to the fixed revenue and its liquidity would be a little bit weaker compared to the equities in the market. So our main goal is to increase the liquidity of our assets. We hope that we can increase the liquidity of our assets for the Yixin Group. And the overall operation is very healthy. So it is the largest retail platform for the used cars in China and its overall revenue and profit is going up. We really look forward to its future growth. And for our future business growth overseas, in recent years, we can see that the main trend for all the industries in China, many companies are expanding their presence overseas. So Yixin also wants to capture these trends. We hope that we can increase our growth overseas with our abilities. As we mentioned, we mainly expand our presence in the Asia market. So for Yixin, we focus on Southeast Asian markets, and we have some specific plans and targets to realize step-by-step this year. As for America, so in appropriate time, we will start to expand our presence. Of course, it's not easy to expand our business in all the countries in the world. We have to do it step by step. And just now, you can see there's a prediction for different markets. And you can see in the Southeast Asian market, there is very rapid growth. Singapore is our trial headquarter. And I think Malaysia, Indonesia, Thailand and Vietnam are also the markets that we can enter very soon. So overall, in terms of the scale, in terms of the car unit prices, in terms of the financing volume, in terms of the market conditions, well, in China, so if we do the calculation, the new cars are around 150,000 and used cars, 110,000 on average in China and in some Southeast Asian markets, the price can be even higher, 30% to 50%. So in terms of financing, you can see the amount, the volume is going to be higher. So with our accumulated experience and methods, we are entering different markets with some verification. So it seems that in the Asian market, the user preference, the consumption habits and mindset are very similar to the consumers in China. So there is a high alignment. That's why we choose to start from Southeast Asia. We try to accumulate our experience and then replicate our experience in other markets.

Now we'd like to invite the second question coming from a Chinese-speaking investor from CITIC Bank. [indiscernible] Please ask your question.

So we've observed that in the industry, some car companies provide 0 interest products to the consumers. Over the past half year, there are some new regulations for the FinTech products. So I'd like to ask the management team, what's the landscape of the market? What are the biggest challenge for you? So how do you adapt to these challenges? That's my first question. Second, I'd like to ask the management team, how do you view the trend of the commission rate in the future?

So talking about car companies, indeed, there are some changes in the market. I think that is nothing new. We noticed that from the very beginning, 2 years ago, there was already some low interest product. And now we see that there's 0 interest product. So the market is always making some changes. So there is no big influence on our business. So 0 interest is a product provided by OEMs, but we provide the fintech services for them. So we mainly need to do the risk management, risk control. So let me add on one point. Based on our experience over the past decade in the market, there is the 0 interest product, but there's a big challenge to the OEMs in terms of the asset quality. So it's a big challenge for the OEM. So for the OEMs, for the fintech companies, some of them would like to provide these products to attract users to attract customers, 0 installment or 0 interest, these are some promotional products in the market. So we still provide products based on our own conditions. So the 0 interest for the new cars, that may not be the target of our business. So the relationship to our product is not that high. And regarding the commission -- regarding the commission changes, well, it's very similar to what I just mentioned. For the high interest, there is higher commission. For low interest, there's a lower commission. So that's the market trend. Starting from the second half of last year, we see the high interest rate, high commission product is going down. The mainstream is that many banks are not involved in the high interest rate and the commission would be going lower as time goes on. So we really think it is a very normal commercial behavior for the car companies, for the car dealers. So some distributors may need to have more commissions, need to have more revenues. It's not that we make profit, but the whole market can make profit as a whole. I'd like to add one point. For Yixin, we will continue to optimize our channels. So we will continue to develop new Internet channels so that we can further optimize our commission rate to reduce the fees expenses for commission.

Due to time limits, we give the floor to the last question coming from a Chinese investor, [ Jan Chao ] from Zhongtai Securities.

I'm [ Jan Chao ] from Zhongtai Securities. First, congratulations on the remarkable performance. I have two questions. First, I see that your FinTech business and used car business are going up. I'd like to know, well, they account for a larger proportion of your total business? Second question, as used car growth, how do you view the future trend? Do you have some differentiated methods to control the risk and guarantee the stability of the asset?

So let me answer your question. First, in terms of the market, so I see the used car sales and the new cars. So we can make sure we can see that the used cars are going to have a larger proportion. So in China, the ratio is actually not that high. So it's actually a bit low compared to other markets. So in the future, used car sales are going to be higher and higher. So that is undeniable. And for Yixin Group, whether our used car business will go up, so the absolute value will go up. But in terms of proportion, whether it will be higher or not, I have to say that it is not that easy to answer -- to give you a simple answer because we have all the products, including the inclusive products, the new products, the products for the new cars, for the used cars. So we have all of them. So we hope to serve more consumers, more partners in the industry. So on this basis, on these conditions, we'd like to have more profitable products. If the profit for the new cars are good, then we will also do this product. But it's that the profit for new cars are not that well in the market. So that's why we focused more on the used cars recently. So we change according to the market conditions. So for the new cars, for the used cars, so we will consider all the factors comprehensively to adjust our strategies so that we can adapt to the conditions in the market. So our strength is that we have a very comprehensive portfolio. So we're able to optimize our structure. We are able to adapt to different market landscape. We can be better than our competitors in these aspects based on our experience, based on our penetration, based on our information. So we have all of these strengths and advantages. And the second question, so for the risk control and asset stability, so let's talk about new cars first. So if you are familiar with auto fintech, you may know that over the past 2 years, so some banks are not able to be successful in the new car fintech product. Why? For the new cars, why they're still not able to make profit because their asset is of low quality, it's very hard for them to meet the requirement to achieve profitability. And for our products, the [Foreign Language]. So our profitability is very high actually in the market. We're able to accurately judge the delinquency rate. Therefore, we are able to provide an appropriate price for them -- for the customers so that customers can drive the cars back. And we can also make sure that the assets are within a stable range. So inherently, the used cars quality would be lower than the new cars. But in our report, you can see we can give the accurate certification of the customers. Therefore, we have a better risk control. So we offer a higher price maybe, but we offer a higher price for the low-quality customers, and we offer the low price for the high-quality customers. So it's a dynamic range, so to cover the high range of the customer base with our product. That's the key. So let me add one point. As you asked for [indiscernible] Jinko's development for the fintech development. So we estimate that in 2026, it will remain a stable and faster progress. So in terms of the transaction structure, we will make some optimization. In terms of risk control, we will also make more efforts. So in terms of the customer transaction structure, we will make more efforts to reduce the risks. So in terms of the collateral guarantee, as our fintech business grows, we will try to reduce the risks and the negative influence on our overall business. Is there another question?

Thank you. No more questions.

Thank you, dear investors. Thank you, management team, for your insights. This concludes our 2025 announcement. For further information, please visit the Investor Relations section of our official website or reach out via the e-mail address provided in your invitation. Thank you once again for attending Yixin Group 2025 Annual Results Announcement. Look forward to seeing you at our next briefing. Thank you very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]