YIXIN Group disclosed its business update for the third quarter of 2025.

**Business Overview**: The company maintained robust growth momentum in Q3, with total auto financing volume reaching 235,000 transactions, up 22.6% year-on-year (YoY). This performance significantly outpaced the industry, where China's total new and used car sales grew by 11.0% YoY in 3Q25. YIXIN's financing volume for the quarter amounted to RMB 21.2 billion, a 14.6% YoY increase.

**Business Structure**: The used car strategy continued to advance steadily, accounting for 57% of total financing volume in Q3. The financial technology (FinTech) segment also sustained rapid expansion. In 2025, YIXIN refined risk pricing and introduced profitable used car products, driving used car financing transactions to RMB 12.1 billion, up 51.3% YoY, representing 56.9% of total financing. Notably, financing for used electric vehicles reached RMB 1.5 billion, accounting for 22.5% of the company's new energy vehicle financing, up 9.4 percentage points YoY.

FinTech business remained a high-growth driver, with platform-facilitated financing reaching RMB 11.4 billion, up 102.0% YoY, contributing 53.7% of total financing (up 23.4 percentage points YoY). The company expanded its FinTech partnership network, onboarding two new financial institutions and establishing collaborations with two prominent EV brands in Q3.

**AI Strategy Progress**: YIXIN advanced its AI-driven initiatives as planned, with X Call deployment expected to complete by year-end. X Call, a new product for pre-financing stages, aims to enhance efficiency in online marketing, document processing, and customer management during credit applications. Additionally, AI-powered real-time communication and voice automation are expected to improve conversion rates and customer experience. Full deployment of X Call and related pre-financing AI products is anticipated by end-2025.

**Investment Outlook**: As a leading third-party auto finance provider, YIXIN's used car strategy has delivered strong results, with high-margin used car business supporting earnings growth. The company is expected to maintain robust performance in the second half of 2025. Its commitment to shareholder returns through dividends further underscores its appeal.

Earnings forecasts for 2025–2027 project net profits attributable to shareholders at RMB 1.20 billion, RMB 1.46 billion, and RMB 1.76 billion, representing YoY growth of 48%, 22%, and 21%, respectively. Corresponding forward P/E ratios stand at 13.1x, 10.8x, and 8.9x.

**Risk Factors**: Potential risks include slower-than-expected business expansion, macroeconomic volatility, and regulatory changes.