Evening, welcome to the Yixin Group 2024 Annual Results Conference, an annual performance conference which will be conducted through the live audio and the tele-conference. Please allow me to introduce the company's management team who attended this annual performance conference as follows: Mr. Zhang Xuan , Chairman and Chief Executive Officer; Mr. Zhi Gao , Co-President; Mr. Xiaoguang Yang , Chief Financial Officer, CFO; and Mr. Jia Zhifeng , Chief Technology Officer, CTO.
This conference will be divided into two sessions. First, the company's management team will give you the introduction about the 2024 performance of the company. Now, let's welcome the President and the Chair and the CEO of the company, Mr. Zhang Xuan, to deliver the opening remarks.
Now, let's welcome distinguished shareholders and also the investors. Good morning to everyone. I'm the President and also CEO of the company of the Yixin Group. Welcome everyone to participate in the 2024 Annual Performance Review and Report of our company. Thank you so much for your great support to the company. In today's conference, we have the following sessions. First of all, let me introduce the overview of our company and the development of the industry.
Afterwards, Mr. Gao Zhi, the Co-President, will introduce the highlights of the Yixin business year 2024. And then the CTO, Mr. Jia Zhifeng, of the company will introduce the company's core competitive advantages and its sustainable development measures, particularly in the AI-related field. Then Mr. Yang Xiaoguang, the CFO of the company, will present the company's financial performance for the year of 2024. Finally, I would like to leave some of the time for everyone to propose your questions. We can have the Q&A session later.
In page five, let's firstly come to see the basic situation of Yixin Group. As a professional automotive fintech platform in China, we've established a business model driven by both new and used cars. It has always taken technology-driven financial innovation as the main axis and the driving force for our strategic development. We already have more than 38,000 partners in the different provinces and cities of China.
On the capital side, we have worked with more than 100 financial institutions, including banks, transfer financial leasing companies, etc. We maintain the in-depth cooperation with our major shareholder Tencent and carry out the technological and technical collaboration in cutting-edge fields such as big data, AI, and cloud computing. Our industry-leading risk management system ensures the safety of the assets and our management. These comprehensive competitive advantages have built a moat for the company's long-term development. Next slide.
It is worth mentioning and noting that as the company has continuously deepened its presence in the automotive finance sector, by May 2024, the cumulative number of auto financing transactions has exceeded four million units. By December 2024, the cumulative transaction volume of auto financing had approached RMB 400 billion , which prominently demonstrates Yixin's leading strength in the industry.
In 2024, the overall trend of China's passenger vehicle market was stable with progress. Despite the general pressure on the automotive industry in the first half of the year, the terminal market showed a significant recovery in the second half as policies continued to be strengthened in the Q3. According to data from the China Association of Automobile Manufacturers, the sales of new passenger vehicles reached 27.56 million units in 2024, a 5.8% year-on-year growth.
According to the statistics from the China Automotive Dealers Association, the transaction volume of the second-hand passenger vehicles reached 15.67 million units in 2024, representing year-on-year growth of 6.1%. According to the data from the China Passenger Car Association (CPCA), in 2024, the annual sales of new energy passenger vehicles exceeded 10 million units for the first time, with the year-on-year growth of 41%.
In the field of intelligent driving, with a deepened empowerment of the autonomous driving sector by the cutting-edge technologies such as AI, big data, 5G, coupled with the gradual improvement of the regulations and cost optimization brought about by the technological progress, autonomous driving mobility services are accelerating into the stage of industry expansion. Looking forward to 2025, with the intensification of the two new policies, the consumption potential is expected to be further unleashed, and industry pressure is likely to be alleviated.
At the same time, the popularization of intelligent driving and autonomous driving will also continue to drive the intelligent development of the industry. Then I would like to introduce the auto finance in the fintech markets. According to third-party data, the Chinese auto finance market is expected to reach a scale of RMB 3 trillion in 2024. And in terms of the policies, the government continues to pay close attention to the development of this sector and encourages financial institutions to provide more credit support for auto consumption through policies.
However, compared with the developed markets, the financial penetration rate of the Chinese auto market is still lagging behind, indicating a vast space for further development. According to third-party forecasts such as the Motor Intelligence, the financial penetration rate of the U.S., Germany, and China in 2023 are approximately 89%, 77%, 71%, respectively.
While in China, the financial penetration rates for new and used cars in 2023 are 56%, 38%, respectively, so compared with the developed countries in the auto industry, powerful, we still have a long way to go, and the space for further improvement as an important driver for the high-quality development of the finance industry, fintech can help unleash the consumption potential and empower the development of the new productive forces.
This field also enjoys the policy support. The central bank has issued a series of policies to promote digital finance, further supporting the deep integration of the fintech and traditional finance, which lays a solid foundation for the sustained growth of the industry in the coming years. The third-party data show that the market size of fintech will reach approximately RMB 800 billion by 2025.
With the advancement of the digital transformation wave in the financial institutions, fintech has also been applied in more scenarios, and also that will bring the convenience to more financial institutions. Then I would like to invite Mr. Gao to introduce the company's business development situation for 2024. Thank you so much.
All the investors and also the shareholders, I'd like to give the introduction about our business. In 2024, despite the complex external environment, the company's business scale maintained growth, and the revenue of all the business segments continued to increase with a significant enhancement in profitability. The company's main highlights in operation are as follows. First, the core business has developed steadily and sees the opportunities of structural growth. In 2024, the transaction volume of auto financing reached RMB 69.1 billion, representing a year-on-year increase of 5%.
Among them, the financing amount for New Energy Vehicles grew rapidly, up by 44% compared with the same period last year. Moreover, our fintech business witnessed explosive growth, with the financing scale facilitated, reaching RMB 21.1 billion in 2024. Second, revenue from value-added services continued to rise, increasing by 11% year-on-year to RMB 249 million . Thirdly, asset quality remained stable with M3+ overdue rate, dropping by three basis points to 1.86% compared to the end of 2023.
Then I would like to specifically introduce the development of the business of the company. Firstly, it is about the core business of the company, which is about auto financing services in 2024. The total transaction volume of the company's auto finance reached 726,000 units, representing a year-on-year growth of 7%. In terms of the new vehicles in 2024, the transaction volume was 376,000 units.
Financing amount reached RMB 38.7 billion, a slight decrease of 4% year-on-year, mainly because we have a preference for focusing on more profitable financing business. Additionally, by upgrading and standardizing business processes and interfaces, we have further optimized our cooperation with automakers in enhancing efficiency and flexibility of the system and thus providing more precise and efficient services to the client .
In terms of the second-hand cars in 2024, the transaction volume was 350,000 units. Financing amount was RMB 30.4 billion, representing a year-on-year growth of 18%. This growth is mainly attributed to our appropriate expansion of the risk exposure while ensuring asset quality and our proactive expansion of the long-tail customer base and also the better use of the AI technology to expand the customer volume.
In 2024, we launched the risk pricing product, FlashPass, which helps the front end to enhance the customer risk assessment and enables us to capture a larger scale or the share of the used car market. In terms of the new energies, our growth in the financial services for the new energy vehicles has been particularly remarkable. The transaction volume and financing amount of the new energy vehicles have increased by 51% and 44%, respectively, reaching 175,000 units and RMB 17.9 billion.
By 2024, the financing amount for new energy vehicles has accounted for 40% of the total financing amount for new vehicles. Meanwhile, the rapid growth in the number of new energy vehicles in the U.S. has also driven the development of the used new energy vehicle market. The proportion of the used vehicle transactions in new energy business has risen to 13.5%.
Then let's come to see the second fintech business of our company. Since the fintech business was officially launched in the market in 2022 in our company, the sector has witnessed rapid development. In terms of the scale of the financing transactions, they reached RMB 21.1 billion in 2024, representing year-on-year growth of 107%. Revenue achieved a sustained explosive growth, reaching 1.8 billion in 2024, with a year-on-year increase of 290%.
Technology empowerment drives the increase of the new energy vehicle penetration rate. Under the Zhenghe business model, the penetration rate of the new energy vehicles in new cars is approximately 52%, d epening the cooperation to expand the business territory. For instance, in our cooperation with some city commercial banks, we usually start with the low-risk businesses and small-scale trials and then gradually expand into the more grassroots markets to acquire the assets.
It is worth mentioning that the group has successfully made it to the top 50 influential fintech enterprises in China list, thanks to its outstanding performance and strong growth in the fintech sector, demonstrating its leading position in the whole industry. In the continuous development of our fintech business, we have always focused on the high-quality clients and continuously deepened our cooperation, achieving remarkable results. Customer development and revenue growth.
Our core customer base has steadily expanded, with the number of core customers increasing from 10 in 2023 to 17 in 2024. At the same time, the revenue contribution from the core customers has further improved. The average revenue from the core customers in 2024 reached 104 million, accounting for 98% of the total revenue. This data not only reflects the effectiveness of our in-depth customer operation, but also confirms the sustainability of the long-term cooperation model.
Then it is about the dual business model. We already have the two main business models in the fintech business. The number one is the pure technology product output. For instance, the risk control model we provided for Porsche or the other luxury car brands not only screens high-quality customers, but also effectively reduces fraud risk.
The second one is the technology plus traffic services. While facilitating transactions, we enhance the overall business value through the technological empowerment. For instance, by collaborating with the Postal Savings Bank of China to screen out the customers with automotive finance needs for the institutions and provide the product and risk control management support. Overall, the fintech segment of Yixin is gradually achieving a scale effect.
In the future, it will continue to leverage cutting-edge technology to expand into more application scenarios and provide long-term strong technological support for institutional partners in the automotive finance sector and even the broader financial field. Next, let's talk about the value-added services. Relying on our cooperation with the major domestic insurance institutions, the value-added services offer a diverse range of products such as vehicle usage rights and a supplementary insurance based on the customer needs.
The aim is to enhance the user experience and increase customer loyalty, making it an important part of the company business ecosystem. In 2024, the revenue from the value-added services reached RMB 249 million , representing a year-on-year growth of 11%, among which the transaction volume of the equity packages reached 373,000 orders, increasing by 12% year-on-year, which fully demonstrates the market recognition of our product.
This product is specifically designed to offer additional protection for the batteries of the new energy vehicles, addressing the widespread concerns in the market regarding battery health and residual value in 2024. The transaction volume of the battery BAP product reached 57,000 units, and its penetration rate in the new energy vehicles has increased to 37.1%. Meanwhile, we also successfully expanded this product into the new energy vehicle market, further meeting the diverse needs of the market.
In terms of the future outlook, we would like to continue to optimize our value-added service product system, deepen the cooperation with the insurance institutions, actively expand more high-potential value-added products, constantly enhance the user value, and drive the business growth, and next, I would like to invite Mr. Zhifeng Jia , CTO, who will introduce the core competitive advantages of the group and also the measures for sustainable development.
Thank you so much, Mr.Gao. Hello, everyone. Then I'd like to give the introduction about the core competitiveness of our company. The core competitive advantages for Yixin are mainly reflected in the two aspects. First one, it is about technological capabilities. Over the past few years, we have always been driven by the technology plus scenarios, transforming technological capabilities into actual productive forces.
Since 2018, we have independently developed APM Decision Flow Engines. In 2019, we further upgraded the model platform, introduced the largest scale deep learning technology, and launched our self-developed visual model building product. In 2020, we entered into the productization stage of the algorithm models, releasing Robot Platform 1.0 and Intelligent Call Center products, achieving the first standardized output of algorithm models. Through the visual robot configuration tool, we provided flexible and efficient intelligence solutions for multiple business scenarios.
We further integrated voice interaction technology and launched an Intelligent Call Center system, significantly enhancing the automation level of the customer service and user experience. Starting from 2023, we have entered into the stage of exploring and implementing the multimodal large models. We released a series of large models supporting text processing in multiple sizes, covering the parameter scale requirements from 17B to 70B, and completed the filing of the first multimodal large model for the automotive vertical domain in 2024.
In 2024, we entered into the era of the Robot Platform 3.0 and New Media Creation 1.0. The workflow plus agent architecture has been upgraded to fully empower all the business operations with the tech and multimodal large models. At the same time, in line with the global new media and trends, the efficient creation and the marketing enhancement model has been launched to help the enterprise see the initiatives in the digital wave.
Our Intelligent Robot Platform covers the key links such as calling face-to-face interviews, approval, customer services, etc., achieving a deep integration of intelligence, automation, and efficiency. For instance, our quality inspection robot can automatically monitor the compliance of the agent's behavior. By 2024, this robot has completed over 330,000 hours of the quality inspection work. Our Intelligent Call robot has been applied in the scenarios such as telemarketing, collection, and customer services, achieving efficient dialogue. It has made over 82 million calls in total, with the cumulative communication duration exceeding 120,000 hours.
In February 2025, the company completed the local deployment and application of DeepSeek technology, becoming the first enterprise in the automotive industry and the finance sector to comprehensively apply this technology to its actual business, drawing on the training experience and reinforcement learning strategies of DeepSeek-R1. We comprehensively transformed our own self-developed vertical domain large model through the MoE technology. We achieved a 50%-70% reduction in inference costs.
The transformed model has achieved remarkable results in critical decision-making scenarios such as intelligent fund routing, etc. 100% customers can now be matched with the most suitable financial solutions, with approval efficiency and accuracy both increasing by over 50%, repair rate of the high-aged orders also rising by more than 10%. In the future, we'll apply the deep transition and AI capabilities to more fields, reduce the labor costs, enhance the management efficiency, and at the same time, strengthen decision-making support capabilities.
The Intelligent Robot Platform will play a greater role and become an important driving force for our digital transformation, helping the company maintain the competitive edge in the complex market environment, and the other significant core competitive advantage of our company lies in our integrated risk control management system, which covers the entire business process and ensures the effective risk management control at all the stages. We also utilize the AI technology to conduct a public continuing monitoring and a recall price assessment, effectively reducing the fraud risk caused by the inflated recall prices.
In 2024, the amount saved by this project has reached the RMB 1 billion level, and that's why the government awards our self-developed credit assessment system. Yixin has been updated to the version of the 6.0, relying on the best data assets and precise algorithms. It places greater emphasis on the in-depth analysis of customer credit history and risk characteristics in comprehensive assessment of the person plus vehicle, thereby significantly enhancing the accuracy of the assessment and risk identification capabilities and facilitating more precise matching of the financial product and optimization of the decision-making.
We implement the full life cycle management of our assets in the asset center in Shanghai and formulate a response plan for assets at the different stages through the collection strategy engine. Meanwhile, we also established the asset auction platform to optimize the recovery of the asset value to the greatest extent. Through this comprehensive risk control management system, we not only ensure the safety of the assets, but also lay the solid foundation for the sustained and healthy development of the company's business. Lastly, I would like to introduce the company's initiatives in the sustainable development.
Yixin established the ESG committee at the board level, continuously strengthening corporate governance and promoting the healthy development of the auto finance industry and fulfilling its social responsibilities by 2024. The inclusive financial division has served over 350,000 customers with a wide coverage. Among them, the proportion of the ethnic minority customers exceeded 10%, fully demonstrating our inclusive philosophy and social responsibility. We actively participated in the industry exchange at the 2024 Auto Finance Industry Conference, Shanghai Station.
We joined hands with the industry experts and enterprises to explore the future development direction and continuously lead the progress of the industry. Yixin Group has always led the industry development with a responsible attitude and is committed to creating greater value for the society. In the future, we'll continue to promote the industry upgrading and provide more support for society. Then let's welcome Mr. Yang to introduce the company's financial performance in 2024.
All the shareholders and also investors, thank you so much for attending the conference. I'd like to be together with everyone to take a review about the financial performance of our company. And you can see that the operating revenue maintained a rapid growth, a rate of RMB 9.89 billion in 2024, representing year-on-year increase of 48%. The operating expense ratio continued to decline, while saving, while increasing the revenue, which is around 20%, around 8% decrease compared with the last year.
It also just showed what Michael, the CTO, introduced because of the certain application of the AI in the different fields. We reduced the cost, but increased the efficiency. In the year of 2024, we got very good performance of that. At the same time, we achieved a certain scale of the asset management has continued to grow, reaching RMB 1,841 billion by the end of December 2024, an increase of 39% compared with the end of the previous year. At the same time, we're in the high-quality development. Most of the growth is from the science and technology empowerment. We also just had a very rapid peak and rapid progress in terms of our science technology business.
In terms of our revenue, I would like to give the further introduction. In terms of our debt, it is the main part of our maintain t he revenue, which is around 44%. At the same time, in 2024, we have around RMB 1.8 billion increase, which is around four-fold of the year before last year. It is a very obvious increase. This is what Yixin continuously to transform itself into the fintech for the long time. And we are actually in a very big development in terms of the fintech.
At the same time, it is the revenue from the other platforms that we got the big increase of our revenue, which heavily relies on the certain trustees or the other related financial services we provided for the other customers, not the new business, but the certain old business we have, which also in a very rapid development with a year-on-year growth of more than 60%.
At the same time, in our platform and also self-operated platforms, we can see that we're in the year-on-year growth for the two types of the businesses, reaching RMB 78.7 billion and also RMB 3.2 billion, respectively. And then let's take a look at the growth of the company's gross profit and its driving factors. For the self-operated business, the net interest margin of the lease assets remained stable year-on-year.
And apart from the structural influence, we're in the very similar performance compared with that year for 2023. At the same time, we can obviously see the changes in the adjusted rate of the returns. In 2024, we are in the certain 4.5% of that. It is still in the stock, the assets. If we see the certain marginal part, and that is more obvious for our growth.
For the platforms, the business, you can see the net service fees rate for the platform financing saw a recovery in 2024, which is around the 3.7% increase. Anyway, our gross rate is around the 2% decrease compared with that in 2022, but anyway, I think it is a healthy condition, and overall, the growth, the profit is around the 43% year-on-year growth, and then let's come to see the certain expenses. I already mentioned about the financial net rate, which increased the decrease from the 35% in 2022 into the 20% in 2024, which demonstrated the lean and refined management of the Yixin Group.
When we expanded the scale through the adjustment of the structure and the use of the AI technologies and the tools, we have the rapid development, and in terms of the loss rate, it is very low. Our scale of assets actually increased, but it fully demonstrates that we also adjusted the product structure and also adjusted the certain risk of the risk rate. And later, I would like to specifically mention that later in my following slides. And you can see about the certain final profits. And the company's profitability has continuously strengthened and reached the very record new high in the past three years, which is around RMB 810 million.
Considering adjustment for some non-cash items, we also got a bigger development. Despite the complex external environment, the company has achieved a satisfactory profit result. We hope that we can bring the better returns of the investment to all the shareholders and investors. And in terms of our financing structures, we just follow up the diversified financing at zero, which is an important strategy for us. Our financing in the different categories seems to be more diversified.
At the same time, we already work with more than 100 different financial institutions, and also we have more than 60 bond and asset securitization investors, including foreign investors, and in terms of our standardized products, they continue to be well received in the market with a cumulative financing scale exceeding RMB 58.5 billion, so far for the high-quality automotive, the assets, they still remain relatively scarce in the market, which is very popular in the market. In the past, we also just got the big record new high in a lot of the parameters.
We also just created the very low cost. For example, like the ABN launching the last year, the product rate already being decreased to as low as 2.3%. At the same time, through the different financing tools and also the debts and loans, we further just expand our diversified channel of the financing. Anyway, we would like to continue to explore the new channels, new models, and new tools to maintain the strong support from the liability side for our business.
On the asset side, the company's asset management scale has grown very rapidly in the recent years and also our rate and our structure become healthier and healthier. On the right side, you can see about the financing, the overdue rate has been decreased, and also, the assets just increased dramatically. The debt coverage ratio has already been decreased. So it means that this is very important for us to respond to the diversified and also challenging external environment, which is a strong guarantee for us.
Here, it showed us about the certain years for the debts and the loans, which is for the first time to be shown to everyone. According to the certain new cars and the second-hand cars, if we see them separately, we can see the certain data from the 2023 to the 2024. We can see about the asset quality, which is in the very similar level of the previous years and just even better, which means our risk models are really effective. Here, it showed about our higher confidence and also guarantee for the high quality assets within the market.
Finally, I'd like to quickly go through the balance sheet. You can see here in the year of 2024, in the end of it, we rated around the RMB 4.2 billion of the balance sheet and performance, which is also the highest in the previous years. It also fully demonstrated and reflected our very good management of our assets and our liabilities and also our strong guarantee and support for the partners and cooperators, particularly for the liquidity situation. We have very good management for the liquidity of the assets, which laid the solid foundation for the business operation in the following stage.
At the same time, just in the recent two years, we shifted our focus into the science and technology products, and you can see the data here showed about our good transformation into it, and you can see for the liabilities, it is around 46%, which is also a very safe condition, healthy condition. That's all about my introduction, and then I'd like to hand over the microphone to the moderator.
Thank you so much for everyone's sharing, so I'd like to come into the questions and answer session. Live online participants can ask the questions in the dialogue box or chatting box. If you want to ask the question by connecting through the smartphone, please press the star button on the phone and then press one. Please start to ask the questions after hearing the tone. Thank you. For the broadcasting participants, you can ask the question in the chatting box. For the telephone investors, you need to press star, then one. Please ask the question after hearing the tone.
Thank you so much. Now, I would like to welcome the first question from the online hedge fund. The question is that I would like to ask you. Firstly, what is the purpose for the high volume of the loans? Will that generate a big pressure on the liquidity and cash flow in 2025? Secondly, what is the charging model and what are the future of the consumers? And the third one is of the AI model. What is the contribution rate from the AI for the company revenue? Fourthly, will you continue to have the cooperation with the large major shareholder company, Tencent, in the future? Please answer the question.
Thank you so much for the questions. I think you asked so many questions. I'd like to try to answer the question of the first two. And then I'd like to invite the other leaders to answer the other questions. The first question is about the certain loans. So what will that generate, whether that will generate the certain influence and pressure on the cash flow in 2025?
Actually, we have the certain 50% is for the basic loans, and the other 50% is for the special, the interest rate, the loans. We did the basic interest distribution every year, and in the past, it's around 30%-35% in the previous years, and in this year, we just increased that because we have the gap in the profit, and just now, we talk about the improvement of the cash flows in the past years because of the improvement of the science technology services and products that developed so well. And that is really so friendly for the cash flow conditions.
At the same time, in this year, the profits will be high, so we would like to just use the dividend payout or the distributions of the dividends to bring more benefits returns to the investors. And also, this year marks a very important anniversary of our year, of our company that has been established for 10 years. We would like to appreciate the investors and the shareholders who have been together with us for the longer term. And the company is in a very good condition of the cash flow.
So we would like to bring more of the dividends to the investors. Whether that will generate the pressure on the cash flow of the company, we don't worry about that because we already have the detailed calculation about that so that we're not generating any pressure on the cash flow of the company in 2025. The second question is about the certain SaaS business charging model. I would like to answer this question briefly. And then Mr. Gao probably may just add more information about the potential customers.
In terms of the charging models, we have the two categories. One is about that we follow up our SAS system data collection to charge for the relevant fees, and secondly, within the system, apart from that, we also would like to follow up the traffic to align and to charge for the fees, so these are the two basic models, but now, we mainly just focus on the second way, which contributed a large proportion to our revenue and the profits, but with the SAS business, the scale further improved and expanded, probably the first part of our business also will just take up the larger proportion in the future.
In terms of the future potential customers, now, I would like to add more information about this question. For the SaaS business, no matter which model we follow up for the charging fees, we charge for the final based on the final performance, and this is what we work together with the partners. In terms of the future potential customers, I can say that most of the customers are all our potential customers for the future because we're committed to making our business fresher and scientific and technological-driven business, so a lot of our customers gradually shift their focus to have more cooperation with us, including the risk management or their own SaaS business by themselves.
But for those that are not cooperative, the potential customers, I think with the auto finance market rapid development in the recent two years and also the great support of the banks and the loan and financing companies, I think anyone who is working within this auto finance industry are our potential customers. And in recent years, we've already just seen the very good returns and the benefits for the fact that we entered into the industry in the early stage. Thank you so much.
And Leo also asked the last question whether we will have the further interactions with Tencent or Yixin. We've already been a very important partner of Tencent. We had a very good cooperation with each other as early as possible, including our cash side and also data side, traffic side, as well as AI model. We have the cooperation in all aforementioned fields. We already set up the cooperation in the aforementioned field, and also we'll continue that in the future. And the other question is about the contribution rate of the AI model to the company's revenue rate. So I would like to invite the other management team member to introduce that.
I would like to introduce about the certain positioning and the value of the AI model in the company. We think that the AI large model is a very important baseline or the driving force and also the core competitiveness of our company. So we use the AI in all the process and the different sessions of the company, including the customer's acquisition. We use the AI to find and identify the most suitable customers, targeted customers, to get the certain traffic online so that we can make it more efficient.
In terms of the risk control session, we use the AI to add the certain risk control services to the customers, which is the top pioneer in the whole industry. We provide very good financial solutions to the customers. And in terms of the asset management session, we use the AI to convert the time-based ME, the M1 and M2, the payment delay into the certain individualized and customized solutions. So we use the AI in all the different fields and parts of our business and penetrated into the whole industrial chain. In terms of the certain techniques, we use the AI to improve the recovery rate of the M1 by half.
At the same time, in the different operations and management, we use the AI to reduce the cost and improve the efficiency, which dramatically improves our business to have the rapid development, but also just decrease the cost of the operation. So this is a very important view of us for the AI application globally. It actually supported the healthy development of our business for the ahead. At the same time, you actually asked the question about the direct revenue created by AI.
We actually use the finance SaaS to have the cooperation and commercialization of the AI services. We already mentioned that we work together with the main automaker companies for the cooperation. We use our science technology to achieve the commercialization directly. Thank you so much. That's my answer.
Thank you for the question answer from all the management team members. The second question is the Chinese investor from the Gold Bridge. The question is that what is the guidance of the company for the 2025 business, and what about the growth rate of that in the year of 2025? Please answer the question, Thank you.
Thank you so much for your question. For 2025, we would like to continue to be in a very optimistic and a confident attitude for that. In terms of our external environment, we still will be trapped into the certain complicated external environment. However, for this year, in 2025, in Yixin Group, our revenue will be around a 15%-20% growth. It is estimated that we will reach around the RMB 11.5 billion-RMB 12 billion. After the adjustment, net profit will be around the RMB 1.3 billion. Thank you so much.
Thank you so much for the answer. Then the third question is also from the online investor from the RAYN Capital. The question is that in terms of the cost of the assets of the company, will that be further decreased? And do you have any specific measures for the cost control and improvement of the operation efficiency?
Thank you so much. I'd like to answer the question. In terms of the capital cost, so far in China, generally speaking, we are in the shortage of the capital in the Chinese market. Yixin has its own protection, which is dramatically improved. We think we still have the certain potential for the decrease of the capital and asset costs. It refers to the direct financing of the company as well as the ABS launching. And it also includes the loans cooperation with the banks.
That is invisible on the cost of the capital and asset that will be reflected in the certain interest. We think that we still have the certain potential for the decrease of the cost. In terms of the specific measures for the cost control and operation efficiency, just now Michael and I all just introduced that we talked about the AI tools application. In the next step, we will be steadily and firmly use and deploy the AI application in the operation side.
So far, for the transportation cars for our staff, they are all just the autonomous driving without drivers. So in terms of the corporate culture of our company, as well as our internal, the different parts, we all just use the AI tools and penetrate the tools of the AI into it, and we also just launched the DeepSeek assistant into our internal applications. We would like to penetrate it into the different sessions of the management, and that will be further promoted.
In terms of the application of the AI in the other fields, this is not a question asked, but Michael already mentioned that we've already just think that AI is not only a very important tool for the cost control and efficiency improvement, but also a very important part for us to use it in the acquisition of the customers, risk controls, and also the asset management and the smart and intelligent asset using. We hope AI could play even the greater role in that.
Thank you so much. Then let's welcome the first question, which is also from the Chinese telephone question. Zhang Kexin, you can ask your question from the Shanghai Leiqing Private Equity Fund.
Can everybody hear me?
Yes, we can hear you.
I'd like to ask you the question. In the year of 2024, the auto finance industry is in a fierce and fierce competition. A lot of the banks just also engage into the market. Will that generate an influence to us? And also, will the certain commissions continue to rise due to the impact of the industry in the future?
I think this is really a very professional question. It seems that you have a very good understanding of the market. Yes, it is worth mentioning, like what we mentioned. It will generate a certain influence because more and more the capital flush into the market from the banks for the auto finance industry. Will that generate any influence for our company? I don't think that will generate a big influence because, firstly, we're not focusing on the targeted group of the consumers.
The bank focuses more on the IFC businesses or the customers, IOC, merger acquisition businesses. I think if you know more about this market, you might notice that in the past two years, you can see that the large companies, particularly the banks, use the price war to defeat the PC. But PC is not the main battlefield of the Yixin Group. So I don't think that is a big challenge for Yixin Group.
And will the commission be further influenced? I think, firstly, like what we mentioned, the high interest rate and high returns in the past one year is a common phenomenon within the industry. And our basic judgment is that we don't think it is the common condition and phenomenon. We believe that no matter from the automakers, factories, or the supervision bodies, they really do not welcome that.
I don't think that the high interest rate and also the high returns will not be in a longer time. That will be in a steady reduction with the certain more of the supervision of the supervising bodies that will decrease quickly. So I don't think it will not generate big influence on us because we can get a certain higher price, but it didn't generate the big influence on us because we're not in the same market. So I think it's the influence to the different parties will be the same. We're not so special compared with the other players in the market. We only just have the half of the business related to the new cars, and the other half is about the second-hand markets of the cars.
So in terms of the interference of the financial companies or the banks, we've already just seen that everybody tried a lot in the past two years, and they tried. So they're more willing to cooperate with us to get into this certain business, particularly the second-hand market. I think on the contrary, we can see that in the second-hand market or used car market, we can have the better the preferential policies working. We can have the better the opportunities in this field. Thank you so much. That's all about our answer.
Hello, everyone. If you need to answer questions, you can just dial the button star and then dial the button number one, and then you can ask the question. Then let's welcome the fifth question from the China telephone investor. Please ask the question.
All the management team members, good evening to everyone. Can you hear me?
Yes, we can hear.
Thank you so much for giving me the opportunity to ask my question. I would like to say that just now I've already heard about the introduction and presentation from the management team members. In the future, the fintech will be the main business of the company strategy. I have the two questions.
We have the question. We have the two parts. Number one, within a short period of time, in terms of the fintech business of the company, what is the plan of the company for the fintech business in the short period of time? The second one is for the longer-term prospect. What is the main and core competitiveness of the company in the fintech business in the future, longer term? Thank you so much.
I would like to answer the question from the perspective of the members, and then Mr. Gao can introduce more from the business perspective. In terms of the data perspective, if you pay more attention to the previous financial report, you can see that in the past two to three years, our business already just increased from the increase into the RMB 21.1 billion. That is a very quick increase.
It is estimated that in the next two to three years, we can still just keep a very higher growth rate, and in this year, our target is the RMB 35 billion transaction revenue and volume. That is around a 70% increase compared with 2023 and 2024. We believe that we can keep relatively higher growth. I think we can keep nearly the annual growth rate of the 50% in the next two to three years. That can be seen.
We accelerate our transformation for the different considerations and reflections, including the considerations for the market for Yixin Group. We think our business in these fields needs to be in higher quality, including the profits, the risk control, and also the revenue. They are just more competitive compared with the traditional financial businesses. At the same time, we didn't use too, we will not use the large amount of the cash flow of the Yixin Group for this business. So that is what we advocate for, the high-quality development, which is important business of high-quality development [audio distortion].
In terms of our business, the core competitiveness of our business, we have the Jinko and the others. I think that all of them are the same. Firstly, as the auto finance, the main pioneer company in the industry, we provided the many services, and also we have the different channels for the application of the scenarios. And in terms of the core competitiveness, we heavily rely on the big data technologies, which has been highlighted in terms of the AI applications in the different fields. In our presentation just now, we also introduced about the certain application of AI in the risk control, the product efficiency improvement, etc.
We can just better judge and identify the demand and need of the customers and provide the different financial solutions to the customers, which is really very unique within the industry. And in terms of the other fields, in terms of the asset management, I also think that we have a lot of the effective methods and tools to be used. For example, in terms of the data, for example, data shows that we have the bad external environment and also sluggish of the economy, which is not stable.
But even under this type of a situation, we have very good momentum of our performance of our assets that heavily relies on the certain modeling. And it is hard to tell you about the performance in a short period of time. But anyway, I'd like to add more information. I think that within this industry, we are the early practitioners to embrace the AI big data technologies into the finance. And for the longer time, finance and also the models are all the core driving for us in the past 10 years. We accumulated the rich experience in the industry. We have the high-quality data, no matter the positive data or the negative data.
All of these data plays a very important role in the risk control and also the customer acquisition, and you can see that for the financial industry, we are in a relatively natural matching of the data together with the applications, so many years ago, we've already had a very small team for the AI, like Michael introduced. We have the end-to-end exploration of these applications of the AI tools and the models, and today, we're so lucky because in AI and the large models, we are already in open source.
We just integrated all of our very precious data together and deployed the data into large models, and we discovered that this is really very in a very good matching and provided us a very good support for our development of the strategies and policies before. So this is what we always talk about, the core competitiveness of the AI, which is the algorithm and the computing forces.
We already been in the algorithm in an early stage. And in terms of the computing forces and the computing power, every year we invest into it. And like those larger platforms, we targeted at our own professional fields and industries to invest into the certain computing power and forces. And finally, it is about the quality and quantity of the data, as well as the ability and capacity for the continuous updating of all the data. So I think in this field, I cannot see any other competitors that could be like us to continuously improve this. So I think this is also the core competitiveness of us to really get rid of the barriers. Thank you so much.
Thank you so much for the answer from all the team members of the management team due to the time limit. Now, I would like to ask the last question from China Merchants Securities. Zhang Huizong, please ask your question.
Hello, everyone. I'm from China Merchants Securities. I'm Sarah. I'd like to ask the question. Just now, I've already seen the AI deployment and the big data advantages of the company. I'd like to see and ask the question, when the company uses the cutting-edge technology of the large data, or the big data, what is your future applications and the strategies of the data? And what will the AI and big data technologies support your overseas business? And Michael, I'd like to answer the question.
In the past, we used the AI that what I mentioned in the presentation. We used the AI in the whole process, in the different sessions and the parts of our business. In the future, I'd like to continue to follow this trend. Like the NG introduced, we're always the technology-driven and also the AI-driven company. Every year, we will continue to invest continuously to optimize our core competitiveness and also use the AI to expand more the cooperation with the other channel partners and also cooperators, which is not only to expand our revenue and the profits, but also the important way to expand the data acquisition.
We would like to use the AI to improve our ability and capacity for the data acquisition and also to build up such a database and also to promote the transformation from data to the models. I think that with the business promotion, we can have the better efficiency of that. On the other hand, I would like to continue to be around the AI to reshape our business procedure, which means that from the online, we would like to further just shift our more focus from the online business into the offline activities.
We ultimately use the AI, which is not only about the information system AI, but also the intelligent equipment or the devices applications offline, which not only support our online business, but also offline business by using the AI technology so that we can just expand the scale of the data together with the model so that we can have the better performance, and this is about the overall development strategy for the future.
I would like to just use the cooperation and also further optimize the efficiency of the different processes and the penetration of the use of the AI in the different fields, and the second question is about the empowerment for the overseas business. Generally, we are in such a logic now. Our model, as well as the models around the AI, have been just updated and upgraded into the certain service processes and the product services.
We are trying our best to do some trials overseas. You might already notice that we actually do some of the trials overseas. For example, in some of the countries overseas in the last year, we've already started our business of trying to do something, trying to do something new, and in terms of our considerations and also feedbacks of the projects overseas, we got the really positive feedbacks.
We also, of course, hope that we can use such a very good tool into the more applications. We already just through some of the AI technologies deeply changed the processes and also the structures of the products and the services. We hope that we can bring the advanced technologies and products into the overseas, the other countries. In this process, there might be the certain need for the localization, of course. I think I'm so sure we will not overlook the overseas market. We also may think about the opportunities overseas, not just the local markets. Thank you so much.
Thank you so much all the questions from the investors, but also the answer from our management team. That's all about our today's annual performance review and conference. If you need more, if you're interested in learning more about the company, you can contact us through the investor relations section of the official website or the email address on the invitation letter. Thank you so much for attending Yixin Group 2024 Annual Performance Conference. Look forward to seeing you next time. Thank you so much.
Thank you so much. Thank you, everyone, for supporting us. Thank you, all the investors. Thank you.