Contradictions Unveiled: Yiren's Strategy on International Expansion, Dividends, and AI Integration in 2025 Q1

Financial Services Business Growth:
- Yiren Digital's loan volume facilitated reached RMB 15.2 billion in Q1 2025, with a slight decline of less than 1% quarter-over-quarter but a strong 28% increase year-over-year.
- Growth was driven by a growing repeat borrowing rate, new traffic channel partnerships, and the successful integration of AI-driven initiatives.

AI-Driven Operational Efficiency:
- The AI marketing system handled over 30 million calls per month, boosting acquisition efficiency and reducing labor costs by RMB 1.9 million monthly in domestic loan collections.
- AI's role in enhancing operational efficiency was evident in reduced complaints in the Philippines and improved customer service efficiency with a core pickup rate increase to 96%.

International Expansion and Loan Growth:
- In the Philippines, Yiren Digital's loan volume reached RMB 123.7 million, up 74% compared to the previous quarter, with new borrowers' loan facilitation up 108%.
- Expansion in the Philippines and preparations for Indonesia were driven by AI technology optimization, which enhances intent recognition and reduces costs.

Consolidation and Regulatory Impact:
- The company anticipates accelerated consolidation in China's online lending industry due to stricter compliance requirements under new regulatory rules.
- Major platforms like Yiren Digital are expected to gain dominance through compliance advantages and technological strength.

Cash Flow and Investment Strategy:
- Yiren Digital generated approximately RMB 479 million in net cash from operations in Q1 2025, maintaining strong cash and cash equivalents of RMB 4 billion.
- The company's strategic investment in crypto assets experienced some value fluctuations but is considered a mainstream financial system component.