Ladies and gentlemen, good day, and welcome to Full Truck Alliance's Fourth Quarter and Fiscal Year 2025 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations. Please go ahead.

Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the company's future performance, which are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and discussion. The general discussion of the risk factors that could affect FTA's business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. Joining us on the call from FTA management are Mr. Hui Zhang, our Founder, Chairman, and CEO; and Mr. Simon Tai, our Chief Financing and Investment Officer. We will open the call to questions following a brief opening remarks from Mr. Zhang. As a reminder, this conference is being recorded. In addition, a webcast replay of this call will be available on FTA's Investor Relations website at ir.fulltruckalliance.com. I will now turn the call over to our Founder, Chairman, and CEO, Mr. Zhang. Please go ahead, sir.

The call from FTA management is led by Mr. Hui Zhang, our Founder, Chairman, and CEO, and Mr. Simon Tai, our Chief Financing and Investment Officer. We will open the call to questions after a brief introduction from Mr. Zhang. This conference is being recorded, and a webcast replay will be available on FTA's Investor Relations website at ir.fulltruckalliance.com. I will now turn the call over to Mr. Zhang. Please proceed, sir.

Hello, everyone. Thank you for joining us today for our fourth quarter and fiscal year 2025 earnings conference call. In the fourth quarter of 2025, amid a complex market environment, we continued to energize our ecosystem by elevating user experience and strengthening protection mechanisms for both shippers and truckers, driving solid business growth across the board. Total fulfilled orders reached 63.9 million for the quarter, representing a year-over-year increase of 12.3%, and for the full year, total fulfilled orders reached 236 million, up 19.8% year-over-year. Notably, full year orders fulfilled for cold chain logistics grew by nearly 30% year-over-year.

In the current business environment, we have focused on enhancing our ecosystem by improving user experience and strengthening protection for both shippers and truckers, which has contributed to solid business growth. We fulfilled 63.9 million orders in the quarter, a 12.3% increase from the previous year. For the full year, total fulfilled orders reached 236 million, reflecting a year-over-year growth of 19.8%. Importantly, orders fulfilled for cold chain logistics increased by nearly 30% compared to last year.

In terms of operational performance, key metrics across all business lines showed consistent improvement in the fourth quarter. On the shipper side, our focused user acquisition strategy and enhanced membership system gained traction. Average monthly active shippers reached 3.28 million in the fourth quarter and 3.14 million for the entire year of 2025, representing year-over-year increases of 11.6% and 18.6%, respectively. This reflects improvements in both our shipper base and user loyalty. For truck users, we continued to enhance the trucker credit rating system and protection measures, sustaining the 12-month rolling active trucker space at a high level and achieving a next month retention rate for truckers responding to orders of over 85%, which further bolsters the overall reliability and quality of our trucker network. Our AI-powered heavy truck feed provided by Giga AI is now operational in the express delivery and fast freight markets. Additionally, we tested AI assistant features for shippers to improve fulfillment efficiency during the quarter. Looking ahead, we will keep advancing the integration of AI technologies and applications in our transaction and fulfillment processes.

Orders above 85% have further strengthened the overall reliability and quality of our truckers network. Our AI-powered heavy truck feed delivered by Giga AI is now operating commercially in the express delivery and fast freight sectors. We also piloted AI assistant capabilities for shippers to enhance fulfillment efficiency during the quarter. Moving forward, we will continue to accelerate the integration of AI technologies and applications across our transactions and fulfillment processes.

Now turning to our financial performance. We remain focused on enhancing operating efficiency to strengthen profitability. Net revenues reached RMB 12.49 billion for full year 2025, up 11.1% year-over-year. Furthermore, our revenue mix continued to improve with transaction service revenues of RMB 5.32 billion for the full year, growing by 38.2% year-over-year. On the bottom line, we achieved a net income of RMB 4.46 billion for the full year, up 42.8% year-over-year. On a non-GAAP basis, adjusted net income reached RMB 4.79 billion for the full year, up 19.3% year-over-year, underscoring our high-quality profitability and increasing economies of scale.

In the full year 2025, revenue increased by 11.1% year-over-year. Our transaction service revenues grew to RMB 5.32 billion for the full year, reflecting a 38.2% year-over-year increase. We achieved a net income of RMB 4.46 billion for the full year, which is up 42.8% year-over-year. On a non-GAAP basis, adjusted net income was RMB 4.79 billion for the full year, an increase of 19.3% year-over-year, highlighting our strong profitability and expanding economies of scale.

Looking ahead, Full Truck Alliance will consistently enhance user experience for both shippers and truckers while fully integrating AI throughout the logistics value chain. This approach will create greater value for the industry and deliver long-term returns to shareholders and users. Thank you all once again. That concludes our opening remarks. We would now like to open the call to Q&A. Operator, please go ahead.

Today's first question comes from Ronald Keung with Goldman Sachs.

Looking back at 2025, the company encountered several external challenges and made various strategic adjustments. As we move into 2026, could you provide your overall strategic outlook?

Looking back at 2025, the company faced several external challenges and made various strategic adjustments. As we look into 2026, what can you share about your overall strategic outlook?

2025 was a year marked by both external challenges and proactive transformation for our business. During the year, we made significant progress in strengthening platform governance, improving operational efficiency, and further optimizing our user structure and monetization quality. At the same time, we steadily advanced our strategic initiatives in areas such as autonomous driving and overseas markets. Throughout the year, we focused on enhancing the user experience and returning to our core principle of being truly user-centric. Our goal is to build a platform that both shippers and truckers can trust. While some of these investments may not yield immediate measurable returns, we firmly believe that a healthy balanced ecosystem will serve as a foundation for our long-term sustainable growth. That kind of ecosystem value is something that I think we can reflect on.

Throughout the year, we focused on enhancing the user experience and returning to our core principle of being truly user-centric. Our goal is to build a platform that both shippers and truckers can trust. While some of these investments may not yield immediate measurable returns, we firmly believe that a healthy balanced ecosystem will serve as a foundation for our long-term sustainable growth. That kind of ecosystem value is something that I think we can reflect on.

As we move into 2026, we will concentrate on promoting high-quality growth and intelligent transformation in three key areas. We are transitioning from a model focused solely on scale-driven growth to one that also emphasizes quality. While achieving scale is still important for sustainable development in the long run, our priority is to create a mutually beneficial relationship between scale and the platform. We are raising ecosystem standards to facilitate more complete and standardized transactions, enhance protection for freight payments, and improve user satisfaction. With the initial phase of our ecosystem governance initiatives largely complete, we have significantly reduced the number of fake accounts and low-quality orders on the platform. Consequently, the platform is now operating in a much healthier manner, which boosts our confidence in enhancing fulfillment quality and supporting more sustainable growth moving forward. Additionally, we are continuing to refine the credit rating systems for both shippers and truckers, incorporating tools like shipper rating scores and trucker behavior scores. We are progressively building a stronger two-sided evaluation framework. This approach helps regulate user behavior from the onset, reduce noncompliance, and incentivize high-quality users, ultimately fostering a positive cycle between shipper fulfillment efficiency and trucker earnings.

We are also continuing to improve the credit rating mechanisms for both shippers and truckers, for example, through systems such as shipper rating scores and trucker behavior scores. We are gradually establishing a more robust two-sided evaluation framework. This helps regulate user behavior at the source, curb noncompliant connections while also incentivizing high-quality users, ultimately creating a more virtuous cycle between shipper fulfillment efficiency and trucker earnings.

We are transforming from an information matching platform into an AI-driven intelligent infrastructure. Over the years, we have gathered a significant amount of authentic transaction data and built a very active user base, which provides a solid foundation for this change. In the future, we will further utilize these strengths to enhance our AI capabilities in key areas such as matching efficiency, credit assessment, and dynamic pricing. Our goal is to expand our platform's value beyond just connecting supply and demand, enabling a more intelligent and efficient transaction process.

We have gathered a substantial amount of genuine transaction data and developed a highly engaged user base, which together forms a solid foundation for this transformation. Moving forward, we will continue to utilize these strengths to enhance our AI capabilities in critical areas such as matching efficiency, credit assessment, and dynamic pricing. Our goal is to broaden our platform's value beyond merely linking supply and demand, and to facilitate a more intelligent and efficient transaction process.

Third, while keeping steady growth in our core business, we are preparing for additional growth opportunities. We remain confident in the profitability of our established business. Building on this foundation, we are pursuing initiatives in areas like international expansion and autonomous driving in a careful way to support our growth over the next three to five years.

And our next question today comes from Eddy Wang at Morgan Stanley.

I have two questions related to AI. The first is about the rapid advancement of AI technology and the increasing attention on AI agents. How could this trend impact freight matching platforms like FTA? How do you plan to address the potential disruptions these agents might introduce to the traditional platform model? My second question is whether management can explain how AI is being utilized across the company and highlight the key developments in the fourth quarter. What are your plans moving forward?

Thank you, Eddy. This is Simon here. I'll take over from here. There has been a lot of discussion around the AI topic recently. We have been closely monitoring and evaluating applications. Let me start with our view on AI. We see AI not as a threat to our business, but as a way to enhance our capabilities. For the road freight industry in which FTA operates, the emergence of AI technologies can significantly lower the barriers for shippers to find available carrier capacity, reduce manual costs in the matching process, and improve both matching accuracy and fulfillment rates. These changes will meaningfully improve efficiency across the entire industry. We believe this transformation will create significant opportunities for us to capture additional market shares as transactions migrate from highly fragmented offline markets, including ad-hoc and relationship-based trucking networks onto our platform. In our view, AI presents more opportunities than challenges for our platform. For AI models to deliver meaningful results in the highly non-standardized freight matching market, they must rely on large volumes of authentic, high-frequency closed-loop transaction data. This includes data such as quotes, completed transactions, cancellations, fulfillment records, dispute resolutions, credit behaviors, and verified logistics address databases. These data sets are the result of many years of operational experience and data accumulation on our platform. Let's take pricing as an example. In the long-haul freight market, competitive real-time freight rates are not publicly available. The effective transaction price for each route and time period is influenced by multiple factors, including capacity availability, backhaul demand, trucker preferences, and delivery time requirements. These dynamic pricing signals can only be formed and validated within the real transaction network. On our platform, truckers must complete real-name registration and facial verification before logging into our app and accessing shipment information. Negotiations between shippers and truckers are conducted through our in-app messaging tools and protected communication channels. While external AI tools may lack the basic data sets to perform accurate pricing, in the long-haul freight matching business, where fulfillment standards are high and operational processes are complex, transactions involve much more than merely matching information. The capability to execute this SKU is critical. While external AI tools may help a shipper quickly obtain a price quote or even contact several truckers automatically, moving our shipment from posting to final delivery requires much more than prices. Effective fulfillment depends on robust platform services and dispatch capabilities, including understanding which truckers are reliable on specific routes, their likelihood of cancellation, how trucking capacity fluctuates during different time periods, and maintaining complete operational assistance from placement to settlement to protect the interests of both shippers and truckers. In addition, long-haul freight operations frequently involve exceptions and non-standard situations. These may include specific vehicle requirements, trucks, equipment with gates or refrigeration units, last-minute delivery address changes, adjustments to cargo volume, highway closures, and damage disputes after delivery. Handling these situations requires well-established platform rules to determine responsibilities, extensive historical data to assess reliability, and a responsive dispatch network capable of quickly arranging alternatives when disruptions occur. These are not capabilities that a standalone generative AI model can deliver on its own. They are built on years of operational experience and data accumulation and are precisely where our core competitive advantage lies. In addition, our platform connects a large number of shippers and truckers, and through years of operation has formed a stable transaction network and credit system. Truckers and shippers not only rely on the platform to obtain orders and capacity but also depend on the platform for credit evaluation, fulfillment protection, and dispute resolution mechanisms. This long-term accumulation of trust and ecosystem relationships is something that a standalone AI agent application would find difficult to replicate. Given these structural characteristics, we believe that as AI technology continues to mature, our competitive advantages will become even more pronounced. The reason is very straightforward. The more capable AI becomes, the more it depends on real transaction data and the stronger the resulting network effects. We're actively integrating AI capabilities across multiple aspects of our platform, including matching, dispatching, pricing, risk management, and customer service. As AI becomes more efficient, fulfillment becomes more reliable, and exceptional handling becomes faster and more effective. Both truckers and shippers will naturally prefer to transact on our platform. This, in turn, leads to continued data accumulation and ongoing model improvement, which further strengthens our network effects and the moat around our platform. Overall, we are very optimistic about the industry transformation and the opportunities brought by the AI era, and we are fully prepared to embrace the opportunities and challenges that come with this technological shift. For us, AI represents a capability upgrade rather than a disruption to our business model. We will leverage AI capabilities to capture the broader industry opportunities it creates, making our platform more efficient and improving the user experience for both shippers and truckers. At the same time, these capabilities will further strengthen our network effects, thereby reinforcing our long-term competitive advantage in the road freight market. To address your second question on our plan for AI for 2026, yes. As I discussed earlier our view on AI, let me walk through the progress we made over the past quarter and our plan moving forward. During the fourth quarter, our AI initiatives progressed from the experimental phase to broader deployment. We're currently building an AI agent framework that covers key scenarios across our platform, including shippers, dispatch operations, and customer service, gradually embedding AI capabilities throughout the entire transaction workflow. Starting with the user side, our focus for shippers is simplified shipment posting and automated dispatch. In the fourth quarter, we launched an AI-empowered assistant that enables shippers to submit shipping requests through a simple voice input via a floating entry point in the app. The AI can then handle the entire workflow, including freight listing, trucker screening, price negotiation, and order matching, significantly streamlining what previously required multiple manual steps. This capability is particularly beneficial for direct shippers as it lowers the barriers to posting shipments and improves shipping efficiency, helping the platform better attract and retain SME shippers. This solution also supports voice-based shipment posting as well as API integration, delivering meaningful efficiency improvements for enterprise customers that require system integration. Our pilot results so far demonstrate the effectiveness of our AI-powered dispatch system. First, AI-driven dispatch has attracted a large number of valid trucker bids, reflecting that more accurate matching is increasing truckers' willingness to accept orders. Second, the vast majority of completed transactions are now processed entirely through automated workflows, and the need for manual intervention continues to decline. Compared to traditional freight listing, AI-driven dispatch is delivering superior outcomes in both transaction efficiency and fulfillment rates. In short, the AI assistant is helping shippers reduce the time required to find truckers and helping truckers improve order pickup efficiency, enhancing overall matching quality across the platform. Internally, AI has been integrated into our customer service operations, significantly improving response times and processing efficiency while also enhancing overall service stability. Looking ahead to 2026, AI will continue to serve as a core technology foundation for improving efficiency and enhancing user experience across the FTA platform. As our models continue to evolve and data advantages deepen, we expect AI to unlock additional value in areas such as matching efficiency and operational cost optimization, becoming an increasingly important driver of our medium to long-term growth. Thank you.

And our next question comes from Brian Gong at Citi.

I will translate it myself. Regarding capital allocation, how does management prioritize investments in core business growth, new initiatives, and returns to shareholders? Thank you.

Thank you, Brian. Our approach to capital allocation is guided by a very clear principle and that is delivering sustainable returns to shareholders while maintaining healthy growth in our core business. We remain firmly committed to this objective and committed to creating long-term value for our shareholders. In 2025, we continued to deliver our commitment to returning value to shareholders through both dividends and share repurchases. Over the course of the year, we distributed approximately USD 200 million in cash dividend under our semiannual dividend policy. In addition, we continue to implement our share repurchase program to further optimize our capital structure. Since the beginning of 2025, we have repurchased approximately USD 52.4 million worth of our shares, demonstrating management's confidence in the company's long-term value. In addition, in January 2026, we announced a medium- to long-term shareholder return plan. For 2026, we plan to return approximately USD 400 million to shareholders and today, we also announced a dividend of approximately USD 87.5 million for the first quarter. To support the shareholder return commitments, we must continue to strengthen our core business while identifying new growth drivers to sustain strong cash generation. As you know, long-term freight matching remains our primary source of cash flow and profitability and forms the foundation for our long-term competitive advantage. Looking ahead, we will continue to invest in user acquisition, technology upgrades, product innovations, and ecosystem development to support a steady and sustainable growth of our core business. With respect to strategic investments in new initiatives, including overseas expansion and autonomous driving, we emphasize a disciplined approach characterized by controlled pacing, manageable cash outflows, and measurable milestones. We will not pursue high-risk asset-heavy expansion. Instead, we will advance these initiatives in a measured manner with the evaluation of expected returns and progress at each stage. These investments are intended to build long-term growth capacity and further strengthen our competitive moat rather than pursuing short-term scale. Overall, we believe that core business growth, investment in new initiatives, and shareholder returns are not mutually exclusive objectives. We will strive to maintain a dynamic balance between growth and shareholder returns while preserving strategic flexibility.

And our next question today comes from Thomas Chong at Jefferies.

We have seen fulfilled orders grow by 12.3% year-on-year in Q4, and we anticipate this growth will slow down. Was this primarily influenced by the ecosystem governance initiatives? How long do we expect this impact to continue? Additionally, what is our outlook for order volume in 2026?

Thomas, that's a very good question. Let me first clarify the reasons behind the slowdown in order volume growth during the fourth quarter. The slowdown was primarily driven by the ecosystem governance initiatives we proactively implemented on the platform rather than any significant change in underlying freight demand. This round of ecosystem governance primarily focused on three areas. First, we addressed misclassified carpooling orders where Full Truck shipments were posted as less-than-truckload orders, which can compromise transportation safety and fulfillment experience. Secondly, we strengthened real-name verification requirements for both truckers and shippers, which resulted in the removal of a number of fake or noncompliant accounts. Thirdly, we implemented systematic measures to curb freight reselling and other irregular transaction activities. These issues had accumulated over time, and we were beginning to address them through focused governance work. These governance measures primarily affected low-quality orders with limited monetization potential. During the initial phase of the governance initiatives, some of the misclassified carpooling orders have shifted back to the full load product while others have temporarily moved to offline channels. We view this as a normal structural adjustment. From a revenue perspective, these orders historically contributed only a small portion of the platform's revenue. In fact, transaction service revenue, as you can see, still grew by nearly 3% year-over-year in the fourth quarter, which clearly demonstrates that the ecosystem governance has not affected the platform's core monetization capability. Based on the results achieved so far, the governance initiatives have delivered meaningful improvements. For example, the resale and trading of trucker accounts on third-party platforms have been nearly eliminated, and the trucker vehicle verification rate is now close to 100%. In addition, freight reselling activities in January decreased significantly compared with the end of the third quarter, and customer complaint rates have continued to decline. At the same time, trucker engagement has remained stable, with the rolling 12-month active trucker base maintaining at a high level and the next month's retention rate for truckers responding to orders exceeding 85%. The principal measures under this round of governance have been largely completed, and the main impacts have been fully reflected. Real name verification has been fully implemented, freight reselling is now managed under a normalized framework, and misclassified carpooling orders have been structurally addressed through product rules. As we move into 2026, our focus will shift from targeted governance campaigns to continuous optimization. We will leverage credit scoring and algorithm models to safeguard the long-term health of the ecosystem and place greater emphasis on balancing growth pace and operational quality. In the near term, we do not expect to carry out another large-scale governance campaign. Based on our operating data so far into the year 2026, sequential order growth has already shown clear signs of recovery. Looking ahead to the full year, as the impact of governance initiatives continues to diminish, and the share of direct shippers continues to increase, and matching efficiency further improves, we remain cautiously optimistic about steady order growth on our platform in 2026. Thank you.

Our next question comes from Ritchie Sun at HSBC.

My first question is about fulfillment rates. How did the fulfillment rate perform in the fourth quarter? And what is the outlook for this metric? Secondly, regarding commission revenue growth, there was nearly a 30% year-on-year growth in the fourth quarter despite slower order growth. What were the key drivers behind this? And what is the outlook for this metric going forward?

Thank you, Ritchie, for your question. In the fourth quarter, the overall fulfillment rate reached 42.7%, representing a year-over-year increase of more than 5 percentage points, and it also set a new record. Notably, the average fulfillment rate for the mid- and low-frequency direct shippers approached 65%. This is a key metric we monitor closely and as this segment represents a higher quality source of freight demand. Several factors drove the improvement in the fulfillment rate. First, we implemented systematic optimization to our cancellation policy. Historically, arbitrary cancellations by both truckers and shippers weighed heavily on the fulfillment rate. In the fourth quarter, we introduced two key measures. We increased the cost of unjustified cancellations by imposing behavioral restrictions on users with frequent cancellations. We also upgraded our credit scoring system. The evaluation framework shifted from a primary focus on transaction frequency to a more holistic assessment of behavior quality with greater emphasis on fulfillment rate, user ratings, and complaint rates. These adjustments are designed to encourage more consistent and responsible transaction behavior among both truckers and shippers. Secondly, the continued improvement in our user mix also contributed to the higher fulfillment rate. In the fourth quarter, fulfillment orders from direct shippers accounted for 55% of total fulfilled orders, up from the previous quarter. Direct shippers generally have higher expectations for fulfillment reliability and a stronger commitment to execute, so the increase in their share directly supported the improvement in the platform's overall fulfillment performance. Thirdly, ongoing product enhancements also contributed to the improvement. In the fourth quarter, we continued to iterate on the new freight zone and introduced a secondary confirmation step for shipment postings, which improved fulfillment rates for newly listed shipments. At the same time, upgrades to our matching algorithm and more refined operations significantly accelerated truckers' response times, supporting a steady increase in transaction conversion rates. Looking ahead, as our credit scoring system continues to improve, the base of direct shippers expands, and low-quality freight listings are further phased out, we expect fulfillment performance to maintain a steady upward trend. This will not only enhance the user experience, but also support further monetization of the platform. Regarding your second question on commission revenue growth. In the fourth quarter, transaction service revenue reached approximately RMB 1.49 billion, a year-over-year increase of around 28%. Despite the moderation in order volume growth, revenue maintained a relatively strong growth momentum primarily driven by two factors. The first driver was the continued increase in commission penetration. In the fourth quarter, the commission penetration rate reached 88.6%, up roughly 6 percentage points year-over-year. The number of cities covered by the transactions covered by the commission model reached 273, effectively achieving nationwide coverage across major freight markets. This improvement reflects the platform's continued progress in identifying high-quality freight demand, ensuring fulfillment reliability, and enhancing merchant efficiency, enabling the commission model to be applied to a broader range of orders. The second driver was the improvement in monetization per order. Q4 average monetization per order reached RMB 26.3 million. This reflects the effectiveness of our refined tiered operating strategy; by offering differentiated services tailored to different shipper segments, we improved monetization efficiency and overall profitability while safeguarding the interests of truckers. Looking ahead, we remain confident in the continued growth of our transaction service revenue. There's room to further optimize both commission penetration and monetization per order. At the same time, continued enhancement of our trucker membership program will help ensure a stable supply of high-quality trusted transportation capacity and further strengthening the foundation for transaction service revenue growth. Going forward, we will continue to refine our commission structure and operational strategies without compromising user experience to support more stable and sustainable long-term growth in this particular revenue stream. Thank you.

And our next question comes from Wenjie Zhang with CICC.

My question is about the Credit Solutions business within value-added services. I wonder what's the progress of this business?

Thank you. In the fourth quarter, amid an evolving regulatory environment, we continued to advance our credit solutions with a focus on compliance, risk management, and business model transformation, and maintain a steady pace of development. As of the end of the fourth quarter, we completed the transition to interest rates of 26% or below for both existing and newly issued loans, reflecting our proactive alignment with regulatory guidance and commitment to compliance. While this adjustment created some short-term pressure on revenue, we believe it will support a more robust and sustainable financial services framework over the long term and lay a stronger foundation for our future growth. In terms of asset quality, our overall risk exposure remains manageable. Since mid-last year, regulatory changes across the credit industry have led to fluctuations in credit risk, and our credit business has also been affected. In the fourth quarter, the 90-day delinquency ratio reached 2.9%. In response, we proactively tightened our risk management measures by raising credit approval thresholds for both new and existing users and implementing earlier interventions through model optimization and a more tiered risk control framework. As a result, our outstanding loan balance remains at a healthy level, and the overall risk exposure is well contained. Looking ahead, while some volatility may persist in the coming months, we expect asset quality to gradually improve with the overall NPL ratio stabilizing and beginning to decline in the second half of this year. In terms of our business model, we are proactively transitioning towards a more asset-light approach. We have established partnerships with multiple banks and financial institutions and are increasingly originating loans through guarantee-backed and facilitation models. This approach allows us to significantly reduce the use of our own capital while maintaining service coverage, improving capital efficiency, and better managing risk exposure. As a result, we are building a more balanced and sustainable risk-return profile for our credit business. Overall, we will continue to prioritize compliance, maintain disciplined risk management, and support our core business through our credit operations. Going forward, we will balance growth and risk while further improving asset quality and expanding penetration across operational scenarios. This will help ensure that our Credit Solutions business develops in a more sustainable manner as the regulatory environment continues to evolve. Thank you.

And our next question comes from Yuan Liao with CITICS.

Management, can you share with us what progress you have made in your overseas business so far? What are the trends for your city expansion and your strategic priorities for 2026? Is there any timeline for monetizing your overseas business?

Thank you. Our overseas business is an important part of our mid- to long-term growth. We're building our international operations under the QMove brand, and we are currently in the model validation and capability replication stage. In terms of our market selection logic, the emerging markets we're targeting share key traits: large road freight volumes, low levels of digitalization, a highly fragmented truckers and shipper base, large information gaps, and high reliance on traditional broker models. This is very similar to China over a decade ago when we first started our business. This makes our domestic experience and capabilities highly transferable, allowing us to replicate our model in those markets with minimal learning curves. We are pursuing an asset-light and localized approach, advancing investments gradually as we validate the business model and team capabilities, leveraging our technology and operational know-how to drive platform rollouts. QMove is already integrating fragmented local trucking capacity in select markets and steadily building a user network on both the trucker and shipper side. The priority for 2026 remains deepening our presence in existing markets while expanding into new ones in a disciplined manner. We will first focus on boosting network density and user engagement in established countries while gradually advancing city expansions in markets that are operationally ready and steadily broadening the platform's reach. We maintain a pragmatic and flexible attitude regarding the pace of monetization. Emerging market digital freight platforms typically progress through user acquisition, network formation, and efficiency improvement before reaching stable commercialization with timing varying by market. Our priority is to grow the platform network and expand our user base sustainably rather than simply pursue early monetization at the expense of long-term growth. In summary, we remain confident in the long-term growth potential of these emerging markets, where digital transformation is expected to follow a path very similar to China's road logistics industry. We'll continue expanding overseas in a disciplined, steady manner, and gradually move towards commercialization as the operating model matures. Thank you.

Thank you. And that concludes the question-and-answer session. I would like to turn the conference back over to management for any additional or closing comments.

Thank you once again for joining us today. If you have any further questions, please feel free to contact FTA directly or reach out to TPG. Our contact information for IR in both China and the U.S. can be found in today's press release. Have a great day.