Foreign Exchange Risk Foreign currency risk is the risk of loss resulting from changes in foreign currency exchange rates. Fluctuations in exchange rates between the RMB and other currencies in which we conduct business may affect our financial position and results of operations. The foreign currency risk we have assumed mainly comes from movements in the US$/RMB exchange rate. We and our major overseas intermediate holding companies’ functional currency is US$. We are mainly exposed to foreign exchange risk arising from our cash and cash equivalents and loans to subsidiaries denominated in RMB. We have entered into forward contracts to manage the exposure to foreign currency risk arising from loans to subsidiaries denominated in RMB of the overseas subsidiaries. Our subsidiaries are mainly operating in mainland China with most of the transactions settled in RMB. We consider that our business in mainland China is not exposed to any significant foreign exchange risk as there are no significant financial assets or liabilities of these subsidiaries denominated in the currencies other than RMB. The table below illustrates the impact of an appreciation or depreciation of RMB spot and forward rates against US$/HKD by 5% on our profit before income tax: For the Year Ended December 31, 2023 2024 2025 (RMB millions) (Restated) 5% appreciation of RMB (174 ) (121 ) (46 ) 5% depreciation of RMB 174 121 46 Interest Rate Risk Interest rate risk is the risk that the fair value/future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 202 Table of Contents Interest on floating rate instruments is repriced at intervals of less than one year. Interest on fixed interest rate instruments is priced at inception of the financial instruments and is fixed until maturity. Floating rate instruments expose us to cash flow interest rate risk, whereas fixed rate instruments expose us to fair value interest risk. Our interest rate risk mainly arises from fixed rate instruments including cash at bank, accounts and other receivables and contract assets, loans to customers, and accounts and other payables and contract liabilities. Our interest rate risk policy requires us to manage interest rate risk by managing the maturities of interest-bearing financial assets and interest-bearing financial liabilities. The following table sets out our financial assets, financial liabilities and interest rate derivative instruments exposed to interest rate risk by repricing date, contractual maturity date or expected maturity date, whichever is the earlier. As of December 31, 2023 < 3 months 3 months to 1 year 1 to 2 years 2 to 3 years > 3 years Overdue No interest Total (RMB millions) (Restated) ASSETS Cash at bank 21,675 3,799 3,861 3,549 5,849 — 963 39,696 Restricted cash 10,060 1,366 659 1,274 0 — 56 13,417 Financial assets held under resale agreements 29 — — — — — — 29 Financial assets at fair value through profit or loss 7,373 2,231 851 287 2,722 5,023 6,275 24,763 Financial assets at amortized cost 1,500 9 8 — — 241 — 1,758 Accounts and other receivables and contract assets — — — — — — 4,535 4,535 Loans to customers 29,467 57,658 26,211 12,823 408 3,127 — 129,694 Total financial assets 70,104 65,064 31,589 17,933 8,980 8,391 11,830 213,892 LIABILITIES Payable to platform investors — — — — — — 986 986 Borrowings 10,066 25,737 1,827 953 — — 240 38,823 Accounts and other payables and contract liabilities — — — — — — 2,792 2,792 Payable to investors of consolidated structured entities 24,381 39,450 14,436 1,190 1 — — 79,458 Financing guarantee liabilities — — — — — — 4,186 4,186 Lease liabilities 77 177 114 35 2 — — 405 Convertible promissory notes payable — — — 5,650 — — — 5,650 Financial assets sold under repurchase agreements 1,307 — — — — — 0 1,307 Total financial liabilities 35,831 65,363 16,377 7,828 3 — 8,204 133,607 Total interest rate sensitivity gap 34,273 (299 ) 15,212 10,105 8,977 8,391 3,627 80,285 203 Table of Contents As of December 31, 2024 < 3 months 3 months to 1 year 1 to 2 years 2 to 3 years > 3 years Overdue No interest Total (RMB millions) ASSETS Cash at bank 13,731 4,577 7,581 2,079 800 — 1,137 29,904 Restricted cash 12,606 468 954 49 — — 54 14,132 Financial assets held under resale agreements 657 — — — — — 0 657 Financial assets at fair value through profit or loss 4,849 2,793 1,130 793 1,742 3,176 5,872 20,356 Financial assets at fair value through other comprehensive income 648 390 — 118 — — — 1,156 Financial assets at amortized cost 1,499 — — — — — — 1,499 Accounts and other receivables and contract assets — — — — — — 4,698 4,698 Loans to customers 18,741 44,898 23,978 21,407 855 1,629 — 111,509 Total financial assets 52,730 53,126 33,642 24,447 3,398 4,806 11,761 183,910 LIABILITIES Payable to platform investors — — — — — — 722 722 Borrowings 11,126 37,633 1,967 — — — 388 51,115 Customer deposits 2,906 1,027 — — — — 1 3,934 Accounts and other payables and contract liabilities — — — — — — 2,834 2,834 Finance assets sold under repurchase agreements 782 — — — — — 0 782 Payable to investors of consolidated structured entities 12,719 21,581 7,974 521 — — — 42,796 Financing guarantee liabilities — — — — — — 4,218 4,218 Lease liabilities 56 131 91 25 0 — — 303 Convertible promissory note payable — — 6,174 — — — — 6,174 Total financial liabilities 27,590 60,372 16,206 546 — — 8,162 112,877 Total interest rate sensitivity gap 25,140 (7,246 ) 17,436 23,901 3,397 4,806 3,599 71,034 204 Table of Contents As of December 31, 2025 < 3 months 3 months to 1 year 1 to 2 years 2 to 3 years > 3 years Overdue No interest Total (RMB millions) ASSETS Cash at bank 12,362 4,917 2,079 285 800 — 1,643 22,086 Restricted cash 11,643 7,216 60 25 — — 91 19,035 Financial assets held under resale agreements 1,577 — — — — — 0 1,577 Financial assets at fair value through profit or loss 3,008 5,794 1,048 2,306 3,354 3,601 15,554 34,667 Financial assets at fair value through other comprehensive income 3,111 2,602 250 220 — — — 6,182 Accounts and other receivables and contract assets — — — — — — 3,081 3,081 Loans to customers 13,849 37,817 22,738 23,972 2,399 1,516 — 102,291 Total financial assets 45,549 58,347 26,176 26,809 6,553 5,117 20,369 188,919 LIABILITIES Payable to platform investors — — — — — — 668 668 Borrowings 11,298 50,373 1,447 — — — 418 63,536 Customer deposits 6,694 2,699 — — — — 63 9,457 Accounts and other payables and contract liabilities — — — — — — 3,138 3,138 Payable to investors of consolidated structured entities 10,394 14,322 3,943 263 — — — 28,921 Financing guarantee liabilities — — — — — — 5,647 5,647 Lease liabilities 47 105 82 24 2 — — 260 Convertible promissory notes payable — 6,504 — — — — — 6,504 Financial assets sold under repurchase agreements 1,662 — — — — — 0 1,662 Total financial liabilities 30,095 74,003 5,472 286 2 — 9,935 119,793 Total interest rate sensitivity gap 15,454 (15,656 ) 20,704 26,522 6,551 5,117 10,434 69,126 205 Table of Contents We perform interest rate sensitivity analysis on our profit by measuring the impact of a change in interest rate of financial assets, liabilities and interest rate derivative instruments. The table below illustrates the impact to profit before tax of the coming year as of each reporting date based on the structure of interest-bearing assets, liabilities and interest rate derivative instruments as of December 31, 2023, 2024 and 2025, caused by a parallel shift of 100 basis points in interest rates. As of December 31, 2023 2024 2025 (RMB millions) (Restated) Change in interest rate -100 basis points (299 ) (193 ) (77 ) +100 basis points 299 193 77 In the sensitivity analysis, we adopt the following assumptions when determining business conditions and financial index: • The fluctuation rates of different interest-bearing assets and liabilities are the same; • All assets and liabilities are re-priced in the middle of relevant periods; • Analysis is based on static gap on reporting date, regardless of subsequent changes; • No consideration of impact on customers’ behavior resulting from interest rate changes; • No consideration of impact on market price resulting from interest rate changes; • No consideration of actions taken by us. Therefore, the actual changes of net profit may differ from the analysis above. Credit Risk Credit risks refer to the risk of losses incurred by the inabilities of debtors or counterparties to fulfill their contractual obligations or by the adverse changes in their credit conditions. We are exposed to credit risks primarily associated with our deposit arrangements with commercial banks, financial assets at fair value through profit or loss, accounts and other receivables, and loans to customers. We use a variety of controls to identify, measure, monitor and report credit risk. 206 Table of Contents Credit Risk Exposure Without taking collateral and other credit enhancements into consideration, for on-balance sheet assets, the maximum exposures are based on net carrying amounts as reported in the financial statements. We also assume credit risk due to financing guarantee contracts. The following table sets forth the credit exposure of financing guarantee contracts as of December 31, 2023, 2024 and 2025: As of December 31, 2023 2024 2025 (RMB millions) Financing guarantee contracts 54,903 68,017 67,470 As of December 31, 2023, 2024 and 2025, the credit risk on loans to customers amounting to RMB64.6 billion, RMB20.9 billion and RMB6.9 billion (US$1.0 billion), respectively, was borne by external partners. After subtracting these arrangements from the maximum credit risk exposures as listed in the tables above, the loans to customers with credit risk exposure for our company are the carrying amount of loans after provision for impairment losses and interest receivable of the loans is considered. The on-balance sheet credit risk exposure for our company as of December 31, 2023, 2024 and 2025, amounted to RMB70.7 billion, RMB93.5 billion and RMB100.5 billion (US$14.4 billion), respectively. Our credit risk exposure is defined as the net credit risk exposure that we will bear. Expected Credit Loss Credit risk measurement The estimation of credit exposure for risk management purposes is complex and requires the use of models, as the exposure varies with changes in market conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations between counterparties. We measure credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring ECL under IFRS 9. Measurement of Expected Credit Loss IFRS 9 outlines a “three-stage” model for impairment based on changes in credit quality since initial recognition as summarized below: • A financial instrument that is not credit-impaired on initial recognition is classified in “Stage 1” and has its credit risk continuously monitored by us. • If a significant increase in credit risk since initial recognition is identified, the financial instrument is moved to “Stage 2” but is not yet deemed to be credit-impaired. • If the financial instrument is credit-impaired, the financial instrument is then moved to “Stage 3.” Financial instruments in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that result from default events possible within the next 12 months. Instruments in Stages 2 or 3 have their ECL measured based on ECL on a lifetime basis. • A pervasive concept in measuring ECL in accordance with IFRS 9 is that it should consider forward- looking information. Purchased or originated credit-impaired financial assets are those that are deemed credit-impaired upon initial recognition. Their ECL is always measured on a lifetime basis. The following diagram summarizes the impairment requirements under IFRS 9 (other than purchased or originated credit-impaired financial assets) 207 Table of Contents Change in credit quality since initial recognition Stage 1 Stage 2 Stage 3 (Initial recognition) (Significant increase in credit risk since initial recognition) (Credit-impaired assets) 12-month ECL Lifetime ECL Lifetime ECL The key judgments and assumptions we have adopted in addressing the requirements of the standard are discussed below: (a) Significant increase in credit risk For loans to customers, we consider a loan to have experienced a significant increase in credit risk if the borrower is past due on its contractual payments in this reporting period, while considered a financial instrument to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments in the comparative reporting period. The change to the presentation of the three stages was expected to have little impact on the results of ECL provision in the current reporting period and in the future. We do not consider any qualitative criteria since we monitor the risk of borrowers purely based on the overdue period. The criteria used to identify a significant increase in credit risk are monitored and reviewed periodically for appropriateness by the independent credit risk team. (b) Definition of default and credit-impaired assets For loans to customers, we define a financial instrument as in default, which is fully aligned with the definition of credit-impaired if the borrower is 90 days or more past due on its contractual payments. We do not consider any qualitative criteria since we monitor the risk of borrowers purely based on overdue period. For other financial assets measured at amortized cost, we establish both quantitative and qualitative criteria to define default, which includes overdue periods of 90 days or more past due and various reasonable supporting information. The criteria above are consistent with the definition of default used for internal credit risk management purposes. The default definition has been applied consistently to model the Probability of Default (PD), Exposure at Default (EAD) and Loss given Default (LGD) throughout our expected loss calculations. Sensitivity Analysis Expected credit losses are sensitive to the parameters used in the model, such as forecast value of the macroeconomic factors, stage designation results and other factors considered in the application of significant management judgment. Changes in these parameters, assumptions, models, and judgments will have an impact on the measurement of expected credit losses. The following table shows the changes of ECL impairment provision on loans to customers and financing guarantee liabilities related to ECL assuming the financial assets in stage 2 were reclassified to stage 1 due to significant improvement in credit risk. As of December 31, 2023 2024 2025 (RMB millions, except percentages) Total ECL and financing guarantee liabilities under assumption of reclassification of financial assets from stage 2 to stage 1 9,651 11,256 12,876 Total ECL and financing guarantee liabilities related to ECL recognized in the consolidated balance sheet 11,459 12,761 16,968 Difference—amount (1,808 ) (1,506 ) (4,092 ) Difference—ratio (16 %) (12 %) (24 %) 208 Table of Contents Liquidity Risk Liquidity risk is the risk of not having access to sufficient funds or being unable to liquidate a position in a timely manner at a reasonable price to meet our obligations as they become due. We aim to maintain sufficient cash at bank and marketable securities. Due to the dynamic nature of the underlying businesses, we maintain flexibility in funding by maintaining adequate cash at bank. The following table analyzes our financial liabilities by maturity grouping based on the remaining period at the end of each reporting period to the contractual or expected maturity date. The amounts disclosed in the table are undiscounted contractual cash flows, including interest payments computed using contractual rates, or, if floating, based on current rates, and interests with financial liabilities denominated in foreign currencies translated into RMB using the spot rate as of the balance sheet date: $ $ $ $ $ $ As of December 31, 2023 Repayable on demand or undated Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total (RMB millions) (Restated) Financial liabilities Payable to platform investors 986 — — — — 986 Borrowings 142 36,686 1,926 959 — 39,713 Accounts and other payables and contract liabilities 1,359 1,433 — — — 2,792 Payable to investors of consolidated structured entities 53 65,572 14,777 1,247 1 81,650 Lease liabilities — 270 119 36 2 427 Convertible promissory notes payable — 51 51 6,984 — 7,086 Financial assets sold under repurchase agreements — 1,308 — — — 1,308 Total 2,540 105,319 16,873 9,226 3 133,962 Financing guarantee commitments 54,903 — — — — 54,903 As of December 31, 2024 Repayable on demand or undated Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total (RMB millions) Financial liabilities Payable to platform investors 722 — — — — 722 Borrowings 72 49,819 2,046 — — 51,938 Customer deposit 469 3,495 — — — 3,964 Accounts and other payables and contract liabilities 1,490 1,344 — — — 2,834 Payable to investors of consolidated structured entities — 34,901 8,343 546 — 43,789 Lease liabilities 1 190 95 26 0 311 Convertible promissory notes payable — 52 7,088 — — 7,140 Financial assets sold under repurchase agreements — 783 — — — 783 Total 2,753 90,582 17,572 572 0 111,480 Financing guarantee commitments 68,017 — — — — 68,017 209 Table of Contents As of December 31, 2025 Repayable on demand or undated Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total (RMB millions) Financial liabilities Payable to platform investors 668 — — — — 668 Borrowings — 62,855 1,471 — — 64,326 Customer deposit 428 9,092 — — — 9,520 Accounts and other payables and contract liabilities 2,772 366 — — — 3,138 Payable to investors of consolidated structured entities — 25,148 4,019 266 — 29,432 Lease liabilities 1 154 89 26 3 273 Convertible promissory notes payable — 6,931 — — — 6,931 Financial assets sold under repurchase agreements — 1,662 — — — 1,662 Total 3,868 106,209 5,578 292 3 115,950 Financing guarantee commitments 67,470 — — — — 67,470 Fair Value Estimation Our main financial instruments carried at fair value are financial assets at fair value through profit or loss. We use the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques: Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. The primary quoted market price used for financial assets we hold is the current bid price. Financial instruments included in Level 1 comprise primarily equity investments, fund investments and bond investments traded on stock exchanges and open-ended mutual funds. Level 2: Other valuation techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly (such as price) or indirectly (such as calculated based on price). These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. Level 3: Valuation techniques which use any inputs which have a significant effect on the recorded fair value that are not based on observable market data (unobservable inputs). The level of fair value calculation is determined by the lowest level input with material significance in the overall calculation. As such, the significance of the input should be considered from an overall perspective in the calculation of fair value. Valuation methods for Level 2 and Level 3 financial instruments: For Level 2 financial instruments, valuations are generally obtained from third party pricing services for identical or comparable assets, or through the use of valuation methodologies using observable market inputs, or recent quoted market prices. Valuation service providers typically gather, analyze and interpret information related to market transactions and other key valuation model inputs from multiple sources, and through the use of widely accepted internal valuation models, provide a theoretical quote on various securities. For Level 3 financial instruments, prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. One of significant inputs used in these valuation techniques is generally unobservable. 210 Table of Contents The following table sets forth the financial instruments recorded at fair value by level of the fair value hierarchy: As of December 31, 2023 Level 1 Level 2 Level 3 Total (RMB millions) (Restated) Financial assets at fair value through profit or loss Mutual funds 5,176 — — 5,176 Trust plans — 7,140 117 7,257 Structured deposits — 805 — 805 Wealth management products — 964 — 964 Debt securities — 5,185 — 5,185 Private fund and other equity investments — — 659 659 Others debt investments — 6 4,711 4,716 Total 5,176 14,100 5,487 24,763 As of December 31, 2024 Level 1 Level 2 Level 3 Total (RMB millions) Financial assets at fair value through other comprehensive income Certificate of deposits 670 — — 670 Treasury bills 486 — — 486 1,156 — — 1,156 Financial assets at fair value through profit or loss Trust plans — 3,938 309 4,247 Private funds and other equity investments — — 598 598 Mutual funds 3,903 — — 3,903 Debt securities — 4,932 — 4,932 Wealth management products — 1,628 — 1,628 Structured deposits — 1,901 — 1,901 Others debt investments — 31 3,116 3,147 3,903 12,429 4,023 20,356 Total 5,059 12,429 4,023 21,512 As of December 31, 2025 Level 1 Level 2 Level 3 Total (RMB millions) Financial assets at fair value through other comprehensive income Certificate of deposits 2,068 — — 2,068 Treasury bills 3,549 — — 3,549 Other debt securities 566 — — 566 6,182 — — 6,182 Financial assets at fair value through profit or loss Trust plans — 95 382 477 Private funds and other equity investments — — 567 567 Mutual funds 2,919 — — 2,919 Debt securities — 12,491 — 12,491 Wealth management products — 11,431 — 11,431 Structured deposits — 2,434 — 2,434 Others debt investments — — 4,348 4,348 2,919 26,450 5,297 34,667 Derivative instruments Cross currency swap — (5 ) — (5 ) Total 9,101 26,445 5,297 40,844 211 Table of Contents There were no changes in valuation techniques during the period. The following table presents the changes in Level 3 instruments for the years ended December 31, 2023, 2024 and 2025: 2023 2024 2025 Financial assets at fair value through profit or loss (RMB millions) (Restated) As of beginning of the year 3,006 5,487 4,023 Additions 2,720 1,386 1,467 Disposal (1,021 ) (1,277 ) (1,203 ) Transfer into Level 3 1,063 — — Gains or losses recognized in profit or loss (280 ) (1,572 ) 1,010 As of end of the year 5,487 4,023 5,297 For the year ended December 31, 2023, RMB1,063 million investment was transferred from Level 2 to Level 3 as significant unobservable inputs were applied in valuation method. All of the unrealised gains or losses of Level 3 instruments for the period are recognized in investment income/(loss) (refer to Note 9). Fair value measurements using significant unobservable input: The level of fair value measurement is determined by the lowest level input with material significance in the overall calculation. As such, the significance of the input should be considered from an overall perspective in the estimation of fair value. As of December 31, 2023, 2024 and 2025, the Level 3 instruments were mainly other debt investments at fair value through profit or loss. As the other debt investments are not traded in an active market, their fair values have been determined using the discounted cash flow method whereby the discount rate adjustment technique is applied. The discount rate used to determine the present value was a rate that reflects current market assessments of the time value of money and the risks specific to the assets as at each reporting date. The determination of discount rate involved critical estimates and judgments by the management. As of December 31, 2024 and 2025, the discount rates used to determine fair value of Level 3 instruments ranged from 0.66% to 13.99%. The table below illustrates the impact to profit/(loss) before income tax for the years ended December 31, 2023, 2024 and 2025, if the risk adjusted discount rate had increased/decreased by 100 basis points with all other variables held constant. 212 Table of Contents As of December 31, 2023 2024 2025 (RMB millions) (Restated) Discounted cash flow method 5,036 3,819 5,225 Expected changes in profit/(loss) before income tax +100 basis points (173 ) (114 ) (98 ) -100 basis points 182 120 102