Please note this event is being recorded. I would now like to turn the conference over to Matthew Lou, Investor Relations Manager. Please go ahead. Thank you. Good morning and evening. Welcome to the CNFinance first quarter of 23 financial results conference call. In today's call, our Director, Vice President, Mr. Qian Jun, will walk us through the operating results, followed by the financial results from our acting CFO, Mrs. Li. After that, we will have a Q&A session. Before we start, I would like to remind you that this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expect, anticipate, future, intends, plans, believes, estimates, target, going forward, outlook, and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict, and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors, is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. Now, please welcome Mr. Qian Jun. Thanks everyone for taking your time and attend this conference call. Today, we will introduce CNF's operational and financial results in the first quarter of 2023, and followed by a Q&A session. In the first quarter of 2023, we have maintained our momentum and achieved year-on-year growth, key operational and financial indicators. In this quarter, loan origination volume increased 48% from the same period of 2022 to RMB 3.4 billion, including RMB 1.2 billion under commercial bank partnership. Net revenue under the commercial bank partnership model came in as RMB 21.5 million for the first quarter of 2023. The total interest and fees income for Q1 2023 was RMB 450 million, representing a year-on-year increase of 9%. We've continued to provide installment services and funding support for sales partners, who are obligated to repurchase delinquent loans and recorded an interest income charged to sales partners of RMB 37.5 million. The net income in Q1 2023 increased 14% year-over-year to RMB 49 million. In the first quarter of 2023, we have done the following works. We continued to promote and refine commercial bank partnership. Targeted borrowers of commercial bank partnership have better credit ratings in general, and bank lending products require less own capital of the company. Since its launch in 2021, the commercial bank partnership model has gradually gained recognition from the market and our partners because of its low interest rate. After deepening cooperation with private banks, the origination volume of bank lending products began to increase quickly in the second half of 2022, and continued to grow in the first quarter of 2023. In Q1 2023, loan origination volume of bank lending products accounted for 35% of total loans originated by the company, and has become one of the company's major revenue streams. In this quarter, we have brought sales partners into the commercial bank partnership and further reduced our risk exposure. [Foreign language] We have reduced the funding cost and diversified the financing mix. As we have reached consensus with funding partners on reducing interest rates in the second half of 2022, our interest and fees expense in Q1 2023 has decreased 8% year-on-year, RMB 180 million. In this quarter, we successfully established a couple of funds, third-party AMC, and provided sufficient and consistent funding support for sales partners who needed to repurchase existing loans. With that, those partners' liquidity will improve and more motivated to expand their business. [Foreign language] We have improved the asset quality. In this quarter, we analyzed the historical origination and conducted risk factor analysis on defaulted loans. Based on the results, we refined our model for risk assessment and shifted our prioritization to business operations, Tier One, New Tier One, and other major cities. As you know, the liquidity ratio at the end of Q1 of 2023 has decreased as compared to the end of. [Foreign language] We continued to be confident that China's inclusive financing industry is in its window period. At the same time, it is uncertain environment has made it very important for us to pursue high quality development. Thus, expand our business... [Foreign language] We will focus on increasing loan origination volume. We will continue to take measures to better service high quality sales partners and support their growth. We will keep promoting commercial bank partnership, refining trust lending model, and discovering opportunities to deepen our collaboration with insurance. We will adjust our products based on market conditions. We are looking forward to rolling out a new bank lending product that charges an annual interest rate less than 12% in the second quarter of 2023. [Foreign language] We'll keep refining our funding model. We will maintain dialogues with trust company partners on adjusting the structure of trust. We will negotiate with AMCs on reducing the interest rates they charge in order to further ease for sales partners. [Foreign language] Excuse me, this is the operator. I'm sorry, we're getting a lot of noise. I'm going to see if we can reconnect. Just one moment please. Sure. Excuse me, this is the operator. I have Matthew to resume. Thank you. Please go ahead. All right. Welcome back, and we'll just pick up from where we hung up. Now, please welcome again, Mr. Qian Jun, to give his remarks. [Foreign language] Our future tasks include: First, we will focus on increasing our origination system. We will continue to take measures to better service high-quality sales partners and support their growth. We will keep promoting commercial bank partnership, refining trust lending model, and discovering opportunities to deepen our collaboration with insurance companies. We will adjust our products based on market conditions. We're looking forward to rolling out a new bank lending product that charges an annual interest rate less than 12% in the second quarter of 2023. [Foreign language] Second, we will keep refining our funding model. First, we will maintain dialogue with trust company partners on adjusting the structure of trust plans. Second, we will negotiate with AMCs on reducing the interest rates they charge in order to further ease liquidity pressure of our sales partners. [Foreign language] Third, we will keep investing in tech and fully recognize the importance of technology in refining product design and risk assessment. We will continue to analyze historical data of loans originated. We will tailor products or loans secured by collaterals in core areas of Tier one and new Tier one cities. We will also roll out trust lending products that charge lower interests to increase our market share. We will deeper analysis on different factors of collaterals and borrowers to help refine risk assessment model in order to improve asset quality and our resistance to market fluctuations. [Foreign language] I would like to hand the call over to our Acting CFO, Mrs. Jing Li, who will walk you through the financial results of 1, 2023. Thank you. Thank you, Mr. Qian. The first quarter of 2023 financial results. Before we start, I want to remind you that unless otherwise stated, the currency we use is in RMB. Unless otherwise stated, all comparison will be made on a year-over-year basis. The interest and financial service fees on loans increased by 5% to RMB 412 million from RMB 392 million, primarily attributable to the increase of average daily outstanding loan principals in the first quarter of 2023, as compared to the same period from charge to sales partner. Representing the fee charged to sales partner, who choose to repurchase default loans in installments, increased by 16% to RMB 38 million from RMB 33 million. This is primarily due to the fact that the company allows more sales partner to purchase in installments to help sales partner ease their pressure on and free to expense decreased by 8% to RMB 185 million, as compared to RMB 200 million in last year. This primarily due to a decrease in daily average outstanding as well as the funding cost from the trust company. Interest and fees income increased by 44% to RMB 265 million from RMB 20. Net revenue, commercial banks partners was RMB 22 million. The company has started to collaborate with commercial banks since 2021. Such collaboration growth and scale quarter of 30. Outstanding loan principal under the commercial bank partnership RMB 3.4 billion as of 31.23, as compared with RMB 70.4 million at the same period of last year. Separation of our sales partner, this represents sales incentive paid to sales partners by 4% to $18 million, compared to $18 million last year. Primarily attributes to the increase of average daily outstanding loan principal in the first quarter of 2023 as compared to the same period. Provision for credit losses. The provision for credit losses of the model and that credit losses guarantee under the commercial bank partnership model. In relation to the third financial guarantee arrangement, the company entered into the third party guarantor, who provide guarantee service to the commercial bank partner. With $79 million in the first quarter of 2023, as compared to a reversal of $14 million in the same period of 2022. The reversal in last year, primarily due to the transfer of model and allowance of reversal. Excuse me, this is the operator. I'd like to reintroduce, Matthew, once again. Please go ahead, sir. Thank you. Thank you. Welcome again to this conference call. Sorry for the connection issue. Now I would like to hand the call over and introduce our Acting CFO, Mrs. Jing Li, who will go over the financial results with you of Q1 2023. Please go ahead. Thank you all. I'm sorry for the issues. Now we reconnected, and we start that. Now, let's go for the first quarter of 2023 financials. Before we start, I want to remind you that unless otherwise stated, the currency we use it will be in RMB, and also unless otherwise stated, all comparison will be made on a year-over-year basis. Interest and financing service fees on loans increased by 5% to RMB 412 million, from RMB 391 million. Primarily attributable to the increase of average daily outstanding loan principal in the first quarter of 2023 as compared to the same period of 2022. Interest income charged to sales partner, representing fees charged to sales partner, who choose to repurchase deferred loans in installment increased by 16% to RMB 38 million from RMB 23 million. Primarily due to the fact that the company allows more sales partner to repurchase deferred loans in installments to help sales partner if they are pressed on cash flow. Interest and fees expense decreased by 8% to RMB 185 million, as compared to RMB 201 million. Primarily due to the decrease in daily average outstanding loan principal of other borrowers, as well as the falling costs from trust company. Net interest and fees income increased by 24% to RMB 269 million, from RMB 260 million. Net revenue under the commercial bank partnership model was RMB 22 million. The company has started to collaborate with commercial banks since 2021. Such cooperation growth and scale in the second half of 2022. The outstanding loan principal under the commercial bank partnership was RMB 3.4 billion as of March 31, 2023, compared to RMB 17.4 million as of the same period of last year. Collaboration costs for sales partner, representing the sales incentives paid to sales partner, increased by 404% to RMB 183 million, compared to RMB 18 million in last year. This primarily attributable to the increase of average daily outstanding loan principal in the first quarter of 2023, as compared with the same period of last year. Provision for credit losses, representing provision for credit losses, credit losses under the trust company model and the expected credit loss of guarantee under the commercial bank partnership model, in relation to the third financial guarantee arrangement the company entered into with a third-party guarantor, who provides guarantee service to commercial bank partners. It was RMB 79 million in the first quarter of 2023, as compared to a reversal of RMB 14 million in the same period for last year. The reversal in last year was primarily due to the transfer of remaining loans under the traditional facilitation model to third parties, and the allowance of such loans was reversed. Operating expense remained stable at RMB 18 million. The income tax expense was RMB 18 million, compared with RMB 15 million in the same period of last year, primarily due to the increase in taxable income in the first quarter of this year. Net income increased by 14% to RMB 49 million, compared to RMB 43 million last year. As of March 31, 2023, the company has cash equivalents and restricted cash of RMB 2.2 billion, compared to RMB 1.8 billion as of December 31, 2022. The delinquency ratio for loan originated by the company decreased from 18.3% as of December 31, 2022, to 15.2% as of March 31, 2023. The NPL ratio for loan originated by the company was 1.8% of the March 31, 2023, as compared to 1.1% as December 31, 2022. We would like to go ahead and start the Q&A section. Please? Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The next question or the first question comes from William Gregozeski, excuse me, of Greenridge Global. Please go ahead. Thanks. The provision for credit losses bounced around the last few quarters. How should we look at that going forward for modeling purposes? Uh. Hi, William. [Foreign language] [Foreign language] We have always maintained a very consistent provision policy, and it's based on a model that is provided and supported by our auditors, as well as the peers in the financing industry. Since we introduced the collaboration model four years ago, and after four years of operation, we believe that the sales partners are providing very good guarantee to the loans we introduced. [Foreign language] Especially in this quarter, as the sales partners are providing guarantee and protection to the loans they introduced, our delinquency ratio is actually lower, has actually decreased. That's why based on the model, the provision model, we have occurred less provision. [Foreign language] And, um, also- [Foreign language] As the since the pandemic control is over in China. The macroeconomy has turned, has made a good turn, and that also impacts our forecast for the future, and that's another reason why the provision is lower in this quarter. Going forward, as we have recognized the advancement of the collaboration model, and more importantly, we have also brought sales partners into our partnership with commercial banks. I think we will just hold on to this collaboration with sales partners, and in the future, because it's, that not only does it help us to contain the risks, it also help us to extend our scale. Does that answer your question? Yeah. Yeah, thank you. On the commercial lending side, you've talked in the past about that being around a third of origination. Do you think that'll stay around that level, because that's where you're at now, given how fast the origination numbers are taking off of that and the new product you mentioned you're rolling out? I didn't catch your first line. Could you repeat that? Yeah. You guys have talked in the past about the commercial lending being about a third of origination. Do you think that'll get higher, given how fast it's growing and the new product you're bringing out? Okay. That proportion is based on our current expectations, just based on the current market conditions and our analysis. If it is possible for us to, like we said, roll out the loan product under the commercial bank partnership, which charges the interest rate that's lower than 12% annually, I think the proportion of loans facilitated under the commercial bank partnership will just grow as well. That is, it will just cut a higher share in our overall loan origination. Thank you. Okay. Okay. Since, I guess you're kind of implying, too, then, that the trust company origination will be increasing as well. Are you guys seeing more demand now for those products? You mentioned, you know, in the previous question, that the macro economy is improving. Are you seeing more demand for kind of the traditional lending that you guys have done? Uh. [Foreign language] Based on the status and data release in the, in the first quarter of 2023, I think the lending demand is rather stable as compared to the same period of 2022. Looking forward to the second quarter and after, we remain confident in China's economy, and I think it is going to kick up gradually in the future. There is still room for us to expand our business. As we have said, we will pursue high quality development, so that means we will focus more on the asset quality, as well as to operate in a more compliant way to build the compliance to operate fully in a compliance way. That's why I think we are going to keep our estimation for the year of total loan origination of RMB 20 billion. Thank you! Okay. Great. Thank you. Thank you. See you guys next week. If you have a question, please press star then one. Seeing there are no further questions, this concludes our question and answer session. I would like to turn the conference back over to Matthew Lou for any closing remarks. Thank you! Thank you guys again for attending this conference call and, just apologize again for the connection issues. This call will have a replay on our IR website at ir.cashchina.cn. If you have any questions, you can also contact us, we are ir@cashchina.cn. Thank you. Thank you again. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.