A：The main strategy of the company is internationalization, focusing on markets that are ready for FinTech and diversifying away from any single market. This strategy is performing well, as evidenced by solid results in China, stable risk backdrops overseas, and momentum in Indonesia and Australia offsetting a temporary pullback in the Philippines.

A：In China, the sequential trend showed a 5% rise in group volume to 45 billion RMB and a 6% increase in revenue to 3.4 billion RMB.

A：An isolated credit event led institutional funding partners to reduce funding for loan origination, causing many smaller platforms to sharply cut loan origination. The company's priority is on quality funding and regulation. Despite a cautious funding outlook due to tightened industry regulations, the company's funding remained stable through the second quarter, and the priority moving forward is to ensure stability of the existing portfolio.

A：The company is managing risks by prioritizing stability over near-term growth, using its balance sheet and liquidity to support its China lending base, and focusing on compliance and asset quality to ensure stability of funding partners. It has also started allocating liquidity towards its China lending base and plans to continue customer upgrade as a core strategy.

A：The overseas segment experienced a 19% year-over-year increase in volume growth and achieved revenue, with unique borrowers more than doubling from a year ago to 5.3 million. The company has built a diversified portfolio of markets, which allows temporary weakness in any one country to be offset by strength in others. Structural growth in Indonesia and progress in the new leasing market in Australia contributed to the results.

A：In its overseas markets, the company expanded its product offerings to include high-value, lower-interest-rate products to attract consumers with strong credit profiles and higher credit limits. It continued to invest in building an open banking infrastructure for better access to borrower data and improved fraud prevention capabilities. The company published its 8th annual ESG report on fraud prevention in June.

A：Recent changes in early risk indicators that show signs of improvement include the stability of the take rate at about 3.2%, the slight increase in the safety day collection rate from 87% to 89%, and the overall Ch 2 M2 improved to 0.56% from 0.68%.

A：The platform incident led to a deliberate pullback in loan origination in the Philippines as part of a wider strategy to balance profitability with growth. This was mentioned as a factor contributing to the year-over-year revenue growth in the overseas segment.

A：The company's priority concerning its overseas segment is to balance profitability with growth. This is managed deliberately against the dynamic of organizing customer acquisition costs upfront while revenue is earned over time, ensuring that even with rapid growth, early years remain profitable.

A：The group's net revenue in the second quarter reached RMB 3.4 billion, an increase of 6% sequentially. Operating profit was RMB 529 million, which included a one-off tangible impairment of RMB 64 million. Excluding that impact, operating profit was up 8%.

A：In the second quarter, the company added 2.2 million new borrowers, a 29% sequential increase. Indonesia's offline expansion was a significant contributor to this growth. In the Philippines, the company absorbed the impact of the new interest rate cap by proactively scaling back originations, whereas in Australia, unique borrowers grew 22% due to effective online marketing, a wider product range, and an improved app experience.

A：The company is mindful of the potential impact of macroeconomic factors such as currency fluctuations and credit quality in the next quarter, particularly noting the influence of ifoa and currency movements.

A：As of the end of the second quarter, the company held RMB 6.4 billion in cash and short-term investments, with a leverage ratio set at 2.1 times. The balance sheet strength provides the company with the flexibility to navigate a challenging environment in China.

A：The company is reiterating its full year revenue guidance of RMB 11.5 billion to RMB 12.9 billion. The guidance is set conservatively, and the first half performance is ahead of the internal plan, providing a cushion against a potential softer second half. The company now expects credit-related pressures to land in the lower part of the range, and the operating environment is expected to favor players with strong compliance and operational expertise. Additionally, overseas is becoming a second-growing source of profit.

A：Following the platform incident, the company made unspecified business adjustments to ensure risk control. These adjustments are not detailed in the provided text.

A：The current funding supply situation is tight, with financial institutions reducing their exposure and taking conservative approaches after internal self-checks and reviews of partners. Small and medium-sized platforms have faced challenges, leading to a pullback in bond supply across the market. July saw a significant decrease in China volume by around 50% for the company, but institutional confidence has started to stabilize although the funding recovery is still happening at a slower pace.

A：To address the business challenges in the chat age, the company has focused on transparency by providing financial institution partners with visibility into fund flows and the repayment path capability, prioritized quality over scale by refining customer segmentation and underwriting standards, and adjusted the risk profile of customers they serve.

A：The recent figures provided are $6.4 billion in cash associated investments and approximately $7.5 billion in highly liquid assets as of the latest report, totaling $12.5 billion, which forms a foundation for the company's leading position in the industry and long-term relationships with financial partners.

A：In the near term, the company's financial performance could be influenced by volatility as financial institutions rebuild risk appetite and work through their process reviews. The performance will depend on how quickly institutions complete their self-checks and system fixes, and whether the boundary credit environment remains stable without new extreme events.

A：The latest reading of early risk indicators has increased by about 20% compared to the second quarter due to some movement in these indicators and challenges like tightened collection results and recovery efficiency.

A：In response to the new interest rate cap in the Philippines, the company took a deliberate approach by slowing down originations in the first half to adjust fees. Short-term volume decline was anticipated, but based on experience from Indonesia, recovery is expected to take about two or three quarters, with growth resuming in the third quarter.

A：The company is using the new pricing adjustment in the Philippines as an opportunity to push for a deeper structural upgrade across the board. This includes raising underwriting standards, focusing on higher quality borrowers with more stable repayment behavior, and diversifying products beyond online cash loans to match better-quality customers with appropriate credit lines and products.

A：The fee adjustment in the Philippines hasn't impacted the company's overall growth trajectory for its overseas markets. Growth was offset in the Philippines by strong performance in Indonesia and the Australia market. Going into the second half, it is expected that the momentum in Indonesia and Australia will continue, and the Philippines will return to growth following the adjustment period.

A：To manage funding costs and capital utilization, the company is seeing a decrease in costs relative to the second quarter, with an expectation for a gradual upward trend over the next one to two quarters. Regarding capital deployment and buyback pace, the company has a strong balance sheet and is exploring capital injections into its license business to diversify funding sources. Moreover, the company's long-term overseas expansion is already paying off, contributing to profitability, and they are gaining confidence in their ability to navigate challenges in the China market.

A：The key strategy for driving HRCE and Fl growth overseas is to reping the playbook through capital allocation.

A：The company will maintain flexibility in executing the buyback plan based on share price, market, and liquidity conditions, without changing its long-term direction on shareholder returns. It remains committed to returning capital to maximize shareholder value.

A：The key drivers of overseas profit growth for the second half of the year include the expected comary cooperation of major overseas markets, Indonesia contributing the bulk of incremental growth, the Philippines gradually recovering, and Australia continuing rapid expansion. Indonesia is the largest market contributing more than 50% of overseas volume and revenue.

A：Indonesia is expected to contribute the bulk of the incremental growth with a projected 13% growth versus the second half of the previous year, despite seasonal drag from momentum.

A：The Philippines market is expected to start recovering significantly in the second half as the new price environment stabilizes, with the continued rise of high-quality customers improving unit economics.

A：The Australian market is performing well as it is a very high compliance and value adaptive market, with unit borrowers up 22% quarter over quarter and acquisition volume down to 70%. The market is expected to keep going and meet double-digit acquisition goals in the second half.

A：The strategic direction for the company's overseas business is to build a cross-regional growth structure with multiple markets, product offerings, customer upgrades, and a global platform, aiming for a significant increase in overseas revenue reaching more than 50% of the total group revenue.