Hello everyone, welcome to Yixin Group 2026 interim result presentation. All participants are currently on mute.

Please note the disclaimer below. The meeting is for individual investors only.

The audio and transcripts of this meeting are for internal use by participants and shall not be publicly released. Yixin Group has not authorized any media to republish content from this meeting.

Unauthorized reproduction or redistribution constitutes infringement. Yixin Group reserves the right to pursue legal liabilities and shall bear no losses nor liabilities arising from such unauthorized reposting.

Market risk exists; invest entails caution. Investors are reminded to exercise prudence when making investment decisions.

Now please allow me to introduce the company's management present at this interim result presentation. They are Mr.

Zhang Xuan, Chairman and Chief Executive Officer; Mr. Gao Wei, President; Mr.

Yang Xiaoguang, Chief Financial Officer; and Mr. Jia Zhifeng, Chief Technology Officer.

This meeting will consist of two parts. First, management will walk you through the 2026 half-year operating results.

This will be followed by Q&A session. You are welcome to ask questions.

Firstly, let's welcome Mr. Zhang Xuan, Chairman of the company, for his opening remarks.

Over to you, Mr. Zhang.

Distinguished investors and shareholders, I am Zhang Xuan, the Chairman of our group. You are very welcome to participate this interim result conference.

Thank you so much for your support. There are several parts of our conference today.

First, I will introduce the overview of the company, also the development of the industry. Later on, our CFO will introduce the highlight, and then our CTO will introduce our core competitiveness in technology, and also the progress of AI.

Later on, our CFO Yang Xiaoguang will walk through our H1 2026 financial performance and overseas business development. Finally, we'll open the floor for a Q&A session.

Let's first focus on the fundamentals of Yixin. As an AI-driven fintech platform, Yixin has established a dual-driven business model encompassing both new and used car financing, anchored by our strategic focus on technology-led financial innovation.

On the asset side, we partner with over 43,000 dealers across all provinces in mainland China, including Tibet, Xizang. On the funding side, we collaborate with over 100 financial institutions, including banks, trusts, and financial leasing companies.

We maintain deep collaboration with our major shareholder, Tencent, particularly in cutting-edge fields such as big data, AI, and cloud computing. Our industry-leading risk management system ensures the security of our managed assets.

These comprehensive competitive advantages form a robust moat for the company's long-term development. Notably driven by our deepening expertise in auto finance, cumulative auto financing transaction volume surpassed 500 billion RMB by June 2026, once again underscoring Yixin's leading market position.

Regarding AI empowerment, the group closely followed industry trends and completed the evolution of its AI architecture from model-driven to system-driven in the first half 2026, further deepening AI's transformative impact across the entire auto finance value chain. Now we'll examine the broader industry landscape.

In the first half of 2026, the continuation of the trade-in subsidy policy provided some support for both incremental purchase and replacement demand. However, the overall market demand under pressure.

According to China Association of Automobile Manufacturers, new passenger vehicle sales reached 12.72 million units in the first half, down 6% year on year. Per the China Automobile Dealers Association, used passenger vehicle transaction volume reached 7.45 million units in the first half, down 1.5% year on year.

The NEV sector also faced periodic headwinds. Data from China Passenger Car Association showed NEV passenger vehicle sales decreased by 14% year on year in the first half 2026.

Conversely, we observed positive developments as policy support for NEVs remained steadfast, with measures promoting green consumption and supporting NEV penetration into rural markets rolled out in the first half. Policies also emphasized curbing irrational involution-style competition and bolstering financial support for the auto market.

We remain confident in the bright and expansive big future of the industry. Now I will give floor to Mr.

Gao, who will detail our specific business development in the first half.

I'm Gao Zhi. In the first half of 2026, despite a complex external environment, Yixin maintained stable growth in both revenue and profit, with business scale advancing steadily.

Key operational highlights include steady core business expansion capturing structural growth opportunities. In the first half of 2026, the total auto financing transaction volume reached 27 billion in the first half 2026, up 13% year on year.

Used car financing remained robust at 19.9 billion, up 9% year on year, while the new car segment showed marginal recovery with financing of RMB17.1 billion, up 18% year on year. Our fintech business sustained its high growth momentum, facilitating 27.2 billion RMB in financing in first half of 2026, up 72% year on year.

In terms of technology empowerment, as of the end of June 2026, 45 agents were deployed across frontline business processes, enabling 90% of autonomous process delivery. International business transaction volume reached $150 million, securing leading positions in both Singapore and Malaysia.

I will elaborate on specific business dynamics, starting with our core business, auto financing services. In the first half of 2026, the total auto financing transaction volume reached 428,000 units, up 18% year on year.

For new cars, transaction volume reached 155,000 units, with financing amount totaling 17.09 billion RMB. Following the prohibition of irrational practices like excessive commissions, high interest, high rebate, the market became more standardized, further highlighting the advantages of leading platforms.

We deepened OEM partnerships, establishing dedicated task forces to expand our network. Concurrently, joint product innovation yielded a pilot launch of a new residual value product with leading manufacturers.

We also upgraded our systems, including streamlined processes and a simplified application flows, further enhance the service precision and efficiency. The used car transaction volume hit 273,000 units, with financing amount reached 19.9 billion RMB, up 9% year on year.

This growth stems from our proactive expansion into long-tail customer segments and deeper utilization of existing channel values. For new energy vehicles, new energy vehicle financing maintained notable growth, with financing amount jumping 37% year on year to RMB13.8 billion.

For NEV financing for new car constitute approximately 64% of total new car financing in the first half 2026. Rapid growth in the new energy vehicle park also propelled the used NEV market, with used car transactions now accounting for 21% of Yixin's total NEV business volume.

Now I will introduce fintech business. Since our official launch in 2022, this segment has scaled rapidly, evidencing strong market and client recognition of this model.

Transaction volume hit 26.3 billion RMB in the first half, up 91% year on year. Revenue reached 3 billion RMB, up 60% year on year.

We have this dual-driven model: the pure tech model combined with the traffic plus tech model offers client flexible cooperation options tailored to their specific needs. We've also gained industry recognition.

NEV penetration within our fintech new car business reached approximately 69%. The company also pioneered the deployment of agentic LLMs coupled with harness governance architecture in the auto finance sector.

We also deepened ecosystem collaboration. Our fintech business covers diverse partners, including banks, financial leasing companies, and OEMs.

Both partnerships' breadth and depth expanded, with five new projects launched in the first half, bringing cumulative partners to 81. Throughout our fintech evolution, we maintained a sharp focus on high-quality clients and deepened collaborations, yielding notably stunning results.

We have core client base steadily expanded from 40 64 in the first half in 2025 to 81 in the first half of 2026. Revenue contribution from core clients remained stable.

This demonstrates our success in deepening relationships with existing clients and validates our scale-driven cost advantages enabled by the data flywheel effect. Pure tech resolution is also our core.

Our risk control models deployed at leading OEMs effectively screen high-quality customers and mitigate fraud risk. In the first half of 2026, this model facilitated really good results.

The overall facilitated financing amounted to 2.47 billion RMB, up 391% year on year. Beyond transaction matching, we leverage Yixin's channel and data advantages to empower partner banks, such as state-owned megabanks and city commercial banks, by precisely identifying potential customers and providing integrated product and risk management support.

This model elevated overall business value, facilitating 23.84 billion RMB in financing in the first half of 2026, up approximately 61% year on year. Overall, the scale effects within Yixin's fintech segment are accelerating.

Looking ahead, we will deepen scenario-based applications using frontier technologies to deliver comprehensive tech empowerment to institutional partners across our auto finance ecosystem. Now I will hand over to our CTO, Mr.

Jia, to discuss our core competitive advantages and AI advancement.

I'm Jia Zhifeng. I will introduce our AI and technology.

A cornerstone of our competitive advantage lies in our omni-scenario, end-to-end integrated risk control framework. By deploying AI throughout the pre-, mid-, and post-financing stages, we achieve both precise risk management and operational efficiency gains.

Built upon our proprietary Xing series models, we have established a comprehensive model matrix spanning the entire auto finance lifecycle. Modular products tailored to specific stages, including Xing Ding Zhi Smart Approval, Xing Ling Dun Risk Shield, and Xing Zhi Guan Smart Asset Management, have been rolled out.

We employ a dual offline-online acquisition engine. AI segments leads by intent and prioritizes users from diverse channels.

During prescreening, multimodal large models enable dynamic front-end monitoring, effectively identifying and intercepting high-risk applicants to ensure source quality. Leveraging our proprietary credit scoring system, Almond Bean, Xing Ren Dou, we integrate traditional machine learning with AI to build precise algorithms.

Combined with our vast data assets, we conduct multidimensional analysis of credit histories and risk traits to enable accurate borrower plus vehicle assessments and optimal financial solution matching. At our Shanghai Asset Center, we implement full-lifecycle management.

An inference large model powers our AI asset management brain, transcending traditional vintage-based management. It prescribes optimal strategies for assets at different stages and status.

Concurrently, our proprietary asset auction platform maximizes recovery value. AI empowerment yields tangible outcomes in critical decision scenarios.

In risk management assessment and asset management, we achieved 100% optimal financial solution matching. The auto-approval rate reached 58% in the first half 2026.

This holistic risk control framework safeguards asset quality while laying a solid foundation for sustainable business growth. Dear investors, I'd like to elaborate on why Yixin's AI can not only operate, but thrive sustainably in the financial sector.

This is underpinned by the formidable technical moat we have built. First, auto finance is intrinsically a classic human-centric, long-horizon, agent problem.

It is far from a one-time or one-shot interaction. It involves a deep fulfillment process spanning 1 to 2 weeks, requires integrating multimodal interactions, voice, text, to accurately capture user states over extended periods, and dynamically advance conversions.

This imposes stringent demands on system memory and continuous decision-making, a threshold most lightweight AI applications cannot cross. Addressing these pain points, Yixin built a full-stack technology stack rather than merely singular model capabilities.

While many peers pursue AI-lite integration, we've completed systemic foundational framework infrastructure, forming our primary moat. Reviewing our evolution, in 2025, we built the auto finance industry's first agentic LLM, solving the capability threshold.

In 2026, our focus shifted to upgrading harness engineering. We recognize that models are merely an entry ticket; the true barrier lies in the harness system.

It determines whether AI capabilities can be safely, compliantly, and sustainably translated into business outcomes within complex, long-horizon, high-interaction scenarios. On the right is the core of our full-stack capability: the three-tier harness engineering system, which serves as the critical enabler for agent deployment.

First is humans. Humans are ultimate arbiter of risk control and business boundaries.

Real-time intervention authority must be retained at critical nodes. Agentic harness layer is the intelligent core.

Leveraging our proprietary emotion and intent recognition models alongside agentic models, we deeply manage long-horizon user profiles and the order contexts to dynamically formulate progression strategies. Concurrently, we enforce strict circuit breakers.

Should hallucinations or compliance violations occur, the system switches to human-agent pathways within milliseconds. These compliance requirements specific to the financial verticals are difficult for generic solutions to replicate.

These constitute our deepest moat. Beyond Yixin's unique decade-plus repository of vertical domain knowledge, long-horizon decision data, the real-world feedback, we've established the self-improvement mechanisms at both agent and model layers.

The craze of flywheel effect of our system makes the system genuinely smarter with use. The schematic in the lower left illustrates the practical form of human-AI collaboration.

IM and voice agents handle high-frequency interactions with seamless AI-human switching. Clients experience this as seamless, and this deep systemic capability is Yixin's irreplaceable and irreplicable core competence.

Having explained the underlying harness engineering, you're likely most concerned about its real-world performance. This page presents to you AI operational scorecard for end-to-end auto finance deployment as of the end of June.

As mentioned, auto finance is a typical high-value, long-horizon, multi-path, complex business. Transaction size range from tens of thousands to hundreds of thousands RMB.

Process spans to 20 days, averaging over 15 decision nodes, involving potentially tens of thousands decision paths, and over 60 required documentation. Every stage from telesales, prescreening, and application intake to risk control, contract signing, and loan disbursement relied heavily on dedicated personnel.

Now, powered by the three-tier harness system, the first five core stages are fully managed by agents. Telesales handle initial outbound calls and intent screening.

Prescreening manages client onboarding and data acquisition. Application intake dynamically collects documents via multi-turn dialogues.

Risk control computes optimal solutions in real time among thousands of paths and signing precisely guides funding party workflows. Data validates the efficacy of our full-stack capabilities.

Concurrently, the average lead-to-deal cycle is optimized to 3 days. AI independently followed up with clients for up to 2.66 days, with a single interaction lasting up to 81 turns and exchanging over 400,000 [words?]

. This not only proves our contextual management capabilities in long-horizon scenarios, but also demonstrated deep integration of agents into business workflows.

In contrast, most off-the-shelf AI assistants require human intervention after a few dialogue turns, failing to support such complex, long-cycle tasks. Operational data in the lower right marks the activation of our data flywheel and self-improvement mechanism.

As of June 30th, 2026, 45 agents are operational, processing 230,000 tasks daily, with a daily token consumption of 360 million. Overall efficiency improved by 45.4%, meaning manual handling time per lead was nearly halved.

More critically, agent autonomous delivery rate reached 90% by end Q2, up from 65% at end Q1, a 25 percentage point increase in one quarter, exemplifies the accelerating flywheel speed. This iteration velocity grounded in real business scenarios forms our dynamic moat, in contrast with many industry AI projects that freeze post-deployment, lacking our capacity for continuous evolution.

Finally, to summarize AI's value for Yixin, AI is not a cost center, but an efficiency driver and a moat builder. It simultaneously boosts conversions and human efficiency while transforming our decade-plus accumulation of scenario data into an irreplicable system capabilities.

This is result of our AI strategy in the first half and our strongest assurance facing future competition. I will now hand over to Mr.

Yang to detail our international business and the financial performance.

Thank you very much. I'm Yang Xiaoguang.

Good morning, I'm going to update you on our international business in the first half. The group progressed steadily, achieving milestones in both deepening existing markets and expanding into new ones.

Now we can see in the reporting period, we have already achieved approximately $150 million in financing. In Singapore, the group solidified its position among the top local non-bank auto finance providers, leveraging our dealer channels to export intelligent platform.

The banking partnership, we expanded market presence and ecosystem synergy. By end of June, export covered nearly 1,100 local dealers with deepening local bank collaborations.

Cementing our industrial chain advantages in Malaysia, launched in Q4 2025, Yixin ranked among the top three non-bank auto finance providers within just 3 months. In the first half of 2026, average monthly transaction volume exceeded 1,000 units, with cumulative loan volume surpassing $58.64 million.

Regarding new market expansion, we completed preliminary preparations for the Thailand market in first half and plan to commence operations by year-end. This market is really a huge one for us, and this marks the entry of our international layout into a multi-regional synergistic development phase.

We will continue deepening our presence in Southeast Asia, consolidating our Singapore and Malaysia operations while actively evaluating and advancing layouts in new markets like Indonesia to enhance our contribution of international business in group growth. While delving to specific financial performance now, we see key financial highlights for H1 are as follows: operating revenue grew steadily by 13% year on year to 6.18 billion RMB; gross margin expanded to 65% with a substantial gross profit growth, and this is related to the optimization of cost.

We also see the commission cost, the overall capital cost have been optimized a lot. We also see overall profitability strengthened, with an adjusted net profit reached 850 million RMB in the first half 2026, up 31% year on year.

This is a very good result in such a complex landscape. Our SaaS revenue, which is our fintech revenue, sustained rapid growth, contributing 48% of total revenue, with a growth of 60%.

Now I will elaborate on key financial metrics. First, let's break down our revenue structure.

Our SaaS business, fintech business, with the overall revenue of 2.9 billion RMB, one of the biggest channel of our revenue. We think this part of business will take half of our overall revenue.

The platform business, with an overall 15% growth year on year, accounting for 80% of our total revenue. This is comparable to our self-proprietary business.

Our self-proprietary business have 7% year-on-year growth, primarily driven by growth in the finance lease assets during period. Now let's delve into the gross profit and its drivers.

For proprietary business, the net interest spread on lease assets widened marginally year on year in the first half of 2026. We see the average cost down 40 bps.

I think such reduction, such optimization will keep expanding in the foreseeable future. For our platform business, the net service fee rate on platform-facilitated financing rose further in H1 2026, driven by the policy restricting high-interest, high-rebate practices.

We see such practice gradually restricted, reducing commission expenses. We also see further value extraction from our existing business metrics, increased the proportion of used car long-tail and high-yield clients.

We see the gross margin reached 55% in the first half, and a gross profit surging 38% year on year to nearly 4 billion RMB. We see operating expense ratio was 22.6%, up 2.5 percentage points year on year, mainly reflecting heightened investment in human capital, software, and hardware for AI and overseas expansion.

We also see due to complex external environment and deeper coverage of long-tail population, the 90+ days delinquency rate stood at 1.92% in H1 2026. We see the adequate coverage for non-performing assets, with the provision coverage ratio reaching 222%, up 7 percentage points year on year.

Now we will introduce our profit. We see increased profit in the reporting period.

The IFRS net profit goes up to 704 million after adjusting for certain non-cash expenses. The non-IFRS net profit amounted to RMB851 million.

In summary, we achieved the solid results in H1 despite a sluggish macro environment and a volatile markets. We will continue striving in the second half to deliver a strong full-year performance.

Now we will introduce the financing capacity. On the funding side, we prioritize secure and stable funding resources while employing multiple strategies to drive down financing costs.

There are several key funding highlights. As of the end of June 2026, we partnered with over 100 financial institutions.

We have over 70 investors in our bonds and securitized products, including more than 10 foreign institutional investors such as Sumitomo Mitsui Banking Corporation and JPMorgan Chase. You see we are not reliant on a single channel or a single institution.

This is conducive to the stability of our funding. Our standardized products maintained strong market reception, with cumulative issuances exceeding 77.6 billion RMB.

High-quality auto assets remain scarce in the market. By the end of June 2026, we had issued 95 tranches of ABS and ABN products.

Recent structured products achieved minimum coupon rates as low as 2%. This is an historic low.

Beyond credit bonds like private placement notes, PPN, and super short-term commercial paper, SCP, we advanced funding diversification. In March 2026, the group completed the drawdown of its inaugural offshore syndicated loan, attracting active participation from nine renowned domestic and international banks, providing robust support for business operations.

We're going to attract more set users and clients. Regarding liquidity, Yixin maintains stringent internal liquidity management standards.

As of June 2026, cash and cash equivalents stood at approximately 4.68 billion RMB, edging up from the prior year period. The debt-to-asset ratio was 69.5% as of the end of June, marginally higher year on year, but remaining within a healthy range.

Finally, I'd like to report on our vintage delinquency performance. Continuous investments in channel management, risk modeling, and asset management coupled with operational optimizations underpin our overall stable asset quality.

We utilized the vintage loan origination cohort framework to illustrate DPD 30+ days past due over 30 trends across customer tiers, enabling observation of asset quality evolution over time. Tier 1 upmarket customers exhibit excellent delinquency performance with recent vintages demonstrating a notable stability.

Tier 2 prime market customers' DPD 30+ levels here are moderately higher than Tier 1. Critically, vintage curves across years show fundamentally stable trajectories without obvious steep upward spikes.

In our Tier 3 near-prime customers, the slope of DPD 30 days increase over loan age is steeper here, aligning with normal risk tiering characteristics. Cross-vintage comparisons show a slight elevation in 2025 curve; however, its overall trajectory remained largely within our expectations, primarily attributable to significant external economic volatility and further customer base deepening.

Overall risk remains contained without signs of spiraling out of control. The DPD 30 days more trends, whether analyzed across risk tiers or compared horizontally across vintage, aligns with our expectations.

This affirms constant execution of our strategy in customer segmentation, risk modeling, and post-loan management, underpinning stable asset quality. Looking ahead, we will continue leveraging frontier technologies like AI to refine our risk management framework, ensuring sustainable and healthy business development.

That's the end for the presentation.

Thank you very much for your listening. Now you can have the Q&A.

If you need to ask a question, please press T and then number 1. If you are joining online, please ask questions in the chat box or you can apply for audio question asking.

If you join through the line, you can press star plus 1. If you join online, you can ask your question in text or you can press the hands-on button to ask questions.

Now we will invite investors with phone number ending 2795. Please tell us your name and also your institutions before you ask questions.

Hello everyone, I'm Vicky from Citibank. Congratulations on really strong performance.

The question is about our gross profit margin. We see it's a really strong growth with the commission reduction.

You just talked about the industry factors, they're really helpful. Could the company give us an outlook at this stage, the decline in commission levels, how much room is there?

Now in the regulatory environment getting stricter and the macro environment is not particularly good, what is our strategy and how do we think about the guidance for the profit in this year and next year? Thank you.

Thank you very much for your question. Let me answer your question.

First is about the gross profit margin. I think the commission will be further optimized as the industry becomes healthier, as our influence keeps expanding.

We think the optimization of commission will be continued. This is a mid- to long-term prospect.

In terms of the profit outlook, so far we think the overall growth is 20% for the whole year of 2026, but will also pay close attention to external market and policies as well as their impact on our industry. I think, first of all, we will make sure the company is safe, compliant.

On the basis of this, we will strive for more profit for our shareholders. In terms of business, we will firmly utilize our core advantages, especially in terms of technology.

As our CTO just mentioned, we will layout these technologies in every business of ours. We will try our best to combine AI and agent capabilities to the fullest.

At the same time, starting from the second half of the year, we will have a more comprehensive observation of the entire industry, and we will gradually see the results of technology export. I think this is from the perspective of company strategy.

We shifted our focus from cash business, loan business, then to financial services. Now with years of accumulation and a strong tech team, we trained good agents for our industry.

The agents' use will serve our company first by reducing costs and improving efficiency. Then these agents of ours will gradually be exported to other industries.

We'll follow this strategic map. Our business will become more and more technology-driven.

In terms of the gross profit, we will see more gross profit out of our technology use. We also give you a clearer picture of our product and service categories.

You'll see our traditional business, you will also see more new business. There will emerging novel businesses to expect, and this is exactly what we will do in the future.

Thank you.

Thank you very much. Now let's welcome the investor with the phone number ending in 9805 to ask your question.

Please provide your name and institution first.

Hello everyone, I'm the analyst Zhen Qiang from Zhongtai Securities. Congratulations on the company's very impressive performance in growth of the business and performance of the overall business.

I have two questions. The first is about overseas business.

We see the financing amount of the overseas business reached $150 million, which is indeed very gratifying. I like to ask, do you have any plans for Singapore and other specific market, for example Malaysia?

Do you have any specific plans to report to us? The second is about AI.

The leader just mentioned that there are quite a lot of AI use. We see the entire process automation has a relatively high proportion.

In terms of AI's impact on the company's cost and efficiency and optimization and improvement of AI, are there more specific and quantitative contributions of AI that you can help us to understand?

I will first answer a question about the overseas business, like you just mentioned. For the new international markets, by the end of this year, we will start doing business in Thailand.

Next year we will go to Indonesia and Vietnam. These are larger markets.

Different from Singapore and Malaysia, these new markets will have the use of AI. We will use AI and our technological capabilities to achieve rapid growth breakthroughs in these overseas markets to strike a balance of growth and safety.

I will introduce more about AI's use in business quantitatively. In the business report, we see AI has lifted up the process automation efficiency by about 40%.

Now we will cover the entire business process as AI continues to penetrate. In terms of the cost, the personnel, and more, we'll gradually see corresponding changes.

My thought is maybe when we reach the end of the year, when we're going to release the annual report, we will see more clearly how AI help us to reduce the cost, improve efficiency. We are also exploring the possibilities that we can export the AI to other industries and segments.

We'll see external output. In the short term, our expectation is the impact of cost reduction and efficiency improvement will be at a level of hundreds of millions of RMB.

Thank you.

Thank you very much for your sharing. Now we will have the text question from Mr.

Sun from Guotai Haitong. His question is: The company's credit impairment charge was 1.67 billion, a year-on-year increase of 61%.

What is the main reason behind it? What is the current asset quality change of the company?

Second question is changes in company's financial institution partners, how do you look forward to the overall cost of funds in the second half of the year?

Thank you very much for your question. The first question is about the asset quality, about the credit impairment.

The increase of the credit impairment is relatively large, and it's caused by various factors. The first is the scale of our overall business is increasing.

The second is, from the business structure perspective, the proportion of used car is also increasing. Thirdly, over the years, we have been using a relatively conservative approach for the provisioning of reserve.

These multiple factors together led to 61% increase in credit impairment. I don't think it's a bad thing.

As for the asset quality, as I already mentioned, our Tier 1 and Tier 2 asset quality is relatively stable. For Tier 3, we see some products for Tier 3 clients, there was an upward trend in the second half of last year, and there is a rise in risk.

These products are, to be more specific, long-cycle or long-horizon products for used cars. We have already taken corresponding actions to remove these products with poor risk performance and the business with poor performance.

In 2026, the asset performance we can see now compared with 2025 should be set more stable and better. The second question is our cooperation with financial institutions.

We just introduced we have over 100 financial partners. We do not rely on one or a few partners.

Our overall liquidity is in good shape. The cost of capital will remain at a current level in the second half of year.

It's a relatively low level. As I just mentioned, the ABS and ABN we issued, the rate is about 2%.

Will it go down to 1% or 1.5%? I don't think there is much room for further decline, right?

I think it will stay between 1.5% and 2%, which is foreseeable. I think Yixin's business report will continue to be affected by the capital side, especially the second half of year, in terms of the cost of optimization.

This will influence the capital side.

Thank you very much for your question. Now we have a question from the online audience.

Investor wants to know that Yixin recently launched the AI intelligent all-in-one machine for auto finance in the WAIC conference. What are the main pain points in industry that this product aims to solve?

What are the quantifiable operational benefits for the company in the short term and mid-term and long term?

Yes, we've launched the financial all-in-one machine at the WAIC conference. This can be introduced in two aspects: one is from deficiency of our stored staff, specifically deficiency of financial advisors.

It can significantly increase the number of stores each advisor can cover. Due to the timeliness of our services and requirements for face-to-face communication, we still use human financial advisors to cover each store manually.

Now with this all-in-one machine, the existence of these intelligent in-store all-in-one machine, the number of stores that a single person can cover will be greatly increased. Also, the user experience will be better because the process will become faster, increasing user private experience and a store stickiness.

In the mid- to long-term, I think it has two benefits: one is the store will have an improved efficiency, then due to this machine's use, we now can cover more people that cannot be covered before, because our channels will be sunken down to lower tiers. I want to add one more point: the machine can help the store to increase the number of customers and clients we want to cover.

In the future, we see the whole industry and even the whole world are using technology to replace repetitive, cumbersome work. More people want to reduce the repetitive workload of human beings.

Through such all-in-one machine use in stores, we are going to serve more people and increase the overall business volume. Aside from improving efficiency of our current workforce and reaching users that we couldn't reach before, I think there will be bigger business volume.

This machine serves three purposes; it's really worth doing. Going forward, we are going to roll out the machine in large scale, including Shenzhen and Shanghai.

You're welcome to experience the machine. We're also going to give you guidance on where you can find these machines.

In the interest of time, we now can only receive one last question. It's a question from the chat box.

The attendee's question is: In new domestic lending regulation, what is the impact on the company? Whether the banks are pressuring the company for loans, and whether the four times cap on private lending interest rate in Chinese mainland reflects the government's regulatory influence on lending rates?

Once the whole industry unifies, what is the company's response? Please give us some answers.

First is about the regulatory policies, whether these will be a pressure on company's lending from banks or financial institutions. I think we have multiple sources of funds, we do not rely on one or a few.

The second question is about the impact related to LPR. Private lending has nothing to do with us, because what we do is business of licensed institutions.

I don't think private lending has much to do with us. Will it extend to financial institutions in the future?

I think Yixin's business is more about providing technology services, and the interest rate of this product is determined by financial institutions themselves. I don't think it will have much impact on us because the banks we serve now, the products they make are compliant.

I think they will also be compliant in the future. We just provide some services, I don't think it will have any impact on us.

The new regulations have been on for some time, I haven't seen much impact on us. That's about it.

I think we mainly provide technology services, and the product is set by the bank itself, and for the specific business we do ourselves, our proprietary business fully complies with regulatory requirements. I think it should be fine in general.

There is no substantial impact. Thank you so much for your question.

That's the end for this interim result conference. Thank you so much for being here with us.

Look forward to seeing you in the next conference.