Jiayin Group Inc.

Good day, ladies and gentlemen. Thank you for standing by and welcome to Jiayin Group fourth quarter 2024 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. I'll now turn the call over to Mr. Sean Zhang from Investor Relations of Jiayin Group. Please go ahead.

Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Giant Group's financial results for the fourth quarter and full year of 2024. We released our earning results earlier today. The press release is available on the company's website, as well as from NewsWare Services. On the call with me today are Mr. Yan Ding Gui, Chief Executive Officer Mr. Fan Chunlin, Chief Financial Officer, and Ms. Xu Yifeng, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. for the information regarding these and other risks and uncertainties is included in the company's public findings with the IPC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese . With that, let me now turn the call over to our CEO, Mr. . Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

In 2024, China's macroeconomic economy will show a steady growth trend. Under the support of a psychological consumption stimulus policy, the demand for consumer credit will grow steadily. Among them, the share of consumer credit will increase by 1.24 trillion yuan a day, and the growth rate will be 6.2%. In 2024, it will also increase the strategic layout of to achieve high-quality development for a year. The company is committed to a steady and progressive strategy driven by technology. At the same time, it is actively expanding and increasing the risk. In the fourth quarter of 2024, the company achieved a loan transaction amount of 27.7 billion yuan, which is about 37.8% of the growth rate, corresponding to 11 billion yuan of total service income, which is about 46.3% of the growth rate. The company's business scale is growing rapidly and constantly breaking new heights. The total loan transaction amount of the year

In 2024, China's macroeconomic demonstrated steady growth with consumer credit demand rising steadily, supported by consumer stimulus policies. Overall for the year, consumer credit grew by RMB 1.24 trillion, reflecting a 6.2% year-over-year increase. The year also marked a significant milestone for Jiayin as it strengthened its strategic positioning and achieved high quality development. The company pursued a strategy of steady progress driven by technology expanding incrementally while carefully managing risks. In Q4, 2024, the company facilitated long transactions totaling RMB 27.7 billion a 37.8% year-over-year increase, with loan facilitation service revenue reaching RMB 1.1 billion, up 46.3% year-over-year. The company's business growth grew steadily each quarter, consistently setting new records. The total loan facilitation volume for the year exceeded RMB 100 billion,

marking an important business milestone. The current flow rate has been effectively improved, with an increase of nearly 75%. On the other hand, we continue to expand our high-quality, sustainable institutional cooperation network. During the period of 2024, we have accumulated a deep relationship with 73 financial institutions, and have actively expanded our innovative and diverse business model in the small and medium-sized sector. We are committed to working with financial institutions to achieve cooperation and win-win, and to assist the consumption of new products

Thanks to diverse borrower acquisition channels and flexible marketing strategies, the company has significantly improved its borrower acquisition efficiency. In 2024, the company added 2.774 million new borrowers, representing a year-over-year growth of 45.1%. Regarding borrower retention, We implemented a refined stratification mechanism, applying differentiated creative growth strategies. The company's annual retention rate increased by approximately 7%. We paid particular attention to potential children users and effectively improved their retention rate nearly 75%. Additionally, we continue to expand a high-quality and sustainable network of institutional partnerships. During 2024, we maintain in-depth cooperative relationships with a total of 73 financial institutions. We also actively explored innovative and diverse business models in areas such as auto-backed loans and loans for small and micro businesses. We remain committed to achieving win-win collaborations with financial institutions, fostering the diversification of consumer-created products and scenarios.

In the face of the rapid growth of new customers and the rapid growth of new needs, the company has always maintained an efficient delivery strategy. to monitor the change in risk data, provide a more flexible trading strategy, and by introducing external data from the new product line, combine the deep digging of the internal borrowers' behavior data, and update and upgrade the wind control model. In the fourth quarter, the expected rate of 61 to 90 days dropped to 0.53%, which is significantly improved compared to the same period last year. In addition, with the self-reliant wind control platform of AI Fulun, we have established a full-fledged digital anti-crime prevention line, In response to the rapid growth of new borrower groups and strong credit demand, the company has consistently adhered to a put-in risk control strategy

while adjusting credit limits as needed. We closely monitor changes in risk data and implement more flexible transaction strategies. By integrating new external data sources and combining them with deep analysis of internal borrower behavior, we continuously iterate and enhance our risk control models in Q4. the delinquency rate for loans overdue from 61 to 90 days dropped to 0.53%, representing a significant improvement compared with the same period a year earlier. Furthermore, through our AI-powered, self-developed risk control platform, we have established a comprehensive digital anti-fraud defense system Through the year, we identified and intercepted more than 540,000 high-risk habitual fraud applications and blocked 468,000 malicious attacks from illicit activities. These results demonstrate that we are collectively building a full-process digital and collaborative risk control network for giant technology.

With the development of internal technology and external large-scale development, we continue to commercialize AI technology in customer service, wind control, marketing, and other business scenarios. As a support system, we provide real-time label reminders and software recommendations to our customers, with a accuracy rate of 90%. After the system is restored, the error rate is reduced by more than 5%. In the control process, we insert AI image recognition technology to improve the recognition efficiency and accuracy of documents and documents. In addition, in the marketing section, we use the multi-modal model of audio and video, to realize the AI intelligence inspection of marketing patterns and video content. With the internal development of technology and the effective progress of external large models, we continue to expand the application and empowerment of AI in business areas such as

customer services, risk control, and marketing. For instance, our new agent assistance system provides real-time tech reminders and script recommendations for customer services staff, achieving an accuracy rate of 90% and reducing the quality inspection error rate by more than 5% after empowering the system. We have also integrated an AI-based image recognition system into the risk control process, quickly enhancing the efficiency and accuracy of document and credential recognition. In marketing, we have implemented a multi-modal model based on speech and images to ensure an AI intelligent review of marketing graphics, text, and video content. Additionally, we have completed the private deployment of the advanced large language model DeepSeq R1. In 2025, we expect to accelerate its application in core business areas such as risk management, data science, and customer services, driving structural breakthroughs in enterprise efficiency.

海外业务扩张一直是我们重要的发展战略。 In the 4th quarter of 2024, the number of loans of business partners in the Indian region increased by 74%, and the number of registered users increased by 131%, maintaining a fast-growing trend, and cooperating with one influential financial institution. There are also five potential partners in talks. In the Mexican market, we are actively cooperating with local monitoring policies. At the same time, the risk indicators show an improvement, and the profit-earning ability has improved. We hope that with the gradual improvement of operating capacity and the improvement of market competitiveness, we can occupy a more competitive position in the overseas market.

Our sales business expansion has always been a key strategic focus for us. In Q4 2024, our business partners in Indonesia saw a 74% year-over-year increase in loan volume At the same time, the number of registered users grew by 131% year over year, maintaining strong growth momentum. We also established a partnership with a leading local financial institutions and are in discussions with five other potential partners. In the Mexican market, we continue to work closely with local regulatory authorities. As a result, we have significantly optimized risk indicators and improved profitability. With ongoing improvements in operational capabilities and market penetration, we aim to strengthen our competitive position in the overseas market.

In 2024, the company will actively promote the collaboration of industrial students and explore the application of AI technologies in the financial field with Shanghai University, Xi'an University, and Jilin University. and joined the Shanghai Financial Information Industry Association to publish the Shanghai Financial Information Industry Association Development Report to show the path and trend of industry development. In addition, the company launched the Youth Psychological Care Project to cover more than 8 provinces and 1,500 schools nationwide. More than 50,000 students will be provided with psychological health assessment and counseling. The project will be approved by Yangguang.com as the annual industrial innovation typical case. In the future, we will continue to use technology innovation to promote industry development.

In 2024, the company actively advanced industry academy research collaboration, working with institutions such as Shanghai Jiao Tong University, Xi'an Jiao Tong University, and Jilin University to explore the application of cutting-edge AI technologies in the financial sector. In partnership with Shanghai Financial Information Industry Association, we also published the Shanghai Financial Information Industry Development Report, highlighting industry development trends and pathways. Additionally, the company's Youth Mental Health Care Initiative reached over 1,500 schools across eight provinces and municipalities nationwide. Providing psychological assessment and counseling to more than 50,000 teachers and students, this project was awarded as an annual public welfare innovation typical case by China National Radio Network. Looking ahead, we will continue to drive industry development through technological innovation and give back to society with concrete actions, reaffirming the trust placed in us.

In terms of shareholding, in 2024, ADS will distribute $0.5 billion in shares, a total of $26.6 million, in return for the support and trust of investors. Regarding shareholder returns, the company distributed

a total dividend of $0.5 USD per ADS in 2024, totaling $26.6 million USD. In appreciation of the strong support and trust from our investors, the company will further enhance shareholder returns. Starting in 2025, we plan to declare and distribute a cash dividend once per fiscal year. with the total amount increasing from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. In this way, we intend to continue sharing the long-term benefits from the company's high-quality development.

展望2025年,宏觀政策對消費信貸的支持力度進一步加大。 近日, The National Financial Supervisory Board issued a notice on the development of consumer finance assistance to increase consumption. The content covers increasing the supply of consumer modernization, enriching consumer modernization products, and optimizing the way of repayment of loans. We believe that these strong policy combinations will add confidence and motivation to the development of the consumer modernization industry. Combining the current state of development of the company, we are happy with the growth and profitability of all-year-old business in 2025. Loans match the amount, value, Looking ahead to 2025, macroeconomic policies are expected to provide stronger support for consumer credit.

Recently, the National Financial Regulatory Administration issued the Notice on Developing Consumer Finance to Boost Consumption, which includes several key areas, such as increasing the supply of consumer credit, diversifying consumer credit products, and optimizing loan repayment methods. We believe these robust policy measures will instill confidence and drive momentum in the development of consumer credit industry. In line with the company's current growth trajectory, we remain optimistic about the company's business expansion and profitability in 2025 and have set the loan facilitation volume target range at RMB 100 to 142 billion for the year. In the first quarter, our loan facilitation volume target is RMB 35 billion, and the non-GAAP income from operation target is set at RMB 0.57 to 0.63 billion.

下面请CFO樊总介绍2024年第四季度的财务表现。

With that, I will now turn the call over to our CFO, Mr. Fan Chunying. Please go ahead.

Thank you, Mr. Yang, and hello, everyone, for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB, and all percentage changes refer to year-over-year comparisons, unless otherwise noted. As Mr. Yang mentioned earlier, Building on our strong momentum, we kept the year with a record-breaking loan facilitation volume. Notably, loan facilitation volume in Q4 was $27.7 billion, representing an increase of 37.8% from the same period of 2023. Our net revenue was $1,404.5 million. representing a decrease of 12.2% from the same period of 2023. As we mentioned a few times during our earnings release call earlier, the company has been focusing on the loan facilitation services and deliberately downsized the financial guarantee service. If we dive deeper into the breakdown of the revenue, revenue from loan facilitation services was RMB $1,124 million. representing an increase of 46.3% from the same period of 2023. The decline of the total revenue was primarily due to the significant decrease in revenue from releasing of guaranteed liabilities as a result of the company's strategic focus throughout year 2024. Moving on to costs, facilitation and servicing expense were $339.3 million. representing a decrease of 59.5% from the same period of 2023. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncollectible receivables, country assets, loan receivables, and other was $1.2 million, primarily due to the net impact of current period provisions. and the reversal of allowance for receivables arising from a lower expected credit loss rate. Sales and marketing expense was $517.2 million, representing an increase of 57% from the same period of 2023, primarily due to an increase in borrower acquisition expenses. G&A expense was $53.7 million, representing a decrease of 17.6% from the same period of 2023, primarily driven by a decrease in employee costs. R&D expense was $104 million, representing an increase of 8.1% from the same period of 2023, primarily due to the increase in the number of our research and development personnel. Non-GAAP income from operations was $402.4 million, representing an increase of 67.9% from $239.7 million in the same period of 2023. Consequently, our net income for the fourth quarter was $275.5 million, representing a decrease of 25.1%. This was primarily due to the higher base resulting from the one-off non-operational income in the same period of 2023. Our basic and diluted net income per share was 1.3 compared with 1.72 in the fourth quarter of 2023. Basic and diluted net income per ADS was 5.2 compared with 6.88 in the fourth quarter of 2023. We ended this quarter with 540.5 million in cash and cash equivalent compared with $741.2 million at the end of the previous quarter. With that, we can open the call for questions. Mr. Xu, our chief risk officer, and I will answer your questions. Operator, please proceed.

Thank you. We will now begin the question and answer session. To ask questions, please press star 11 on your telephone and wait for your name to be announced. To cancel your request, please press star 11 again. One moment for the first question. Our first question comes from the line of Long Zhao from TF Securities. Please go ahead.

Okay. Thank you for accepting my question. I am Zhao Rong from Tianfeng Stock Exchange. I have two questions. First, I noticed that the company's income has slowed down in 2024. Is this a short-term adjustment or a long-term trend? And then, can you share about the business expansion plan and industry outlook for 2025? I'll translate it into English. So, I have noticed a significant slowdown in the company's revenue growth in 2024. Is this a short-term adjustment or a long-term trend? Could management share the business expansion plans and performance outlook for 2025? Thank you. Okay. Thank you, Zhao Rong. I will answer in Chinese and translate it into English. In our current revenue structure, the two biggest factors are integrated service revenue and insurance service revenue. In 2024, our strategy focuses on the growth of integrated service revenue. This part of the service is also the core capacity of the company. Insurance service revenue is relatively low. In recent seasons, we have been strategically reducing this part of the revenue debt. If we look at the contribution percentage of revenue, the revenue of the wrong service has increased from Q4 of 48% in 2023 to 80% in Q4 of 2024. The revenue of the insurance service has decreased from Q4 of 41.8% in 2023 to 11% in Q4 of 2024. So the change in revenue structure is in line with our strategic expectations of high quality growth.

This is Shawn Zhang, and I will do the translations for the management. So our current revenue structure primarily consists of two major components, which are loan facilitation revenue and guarantee service revenue. The company's strategy for the year of 2024 focuses on the high-quality growth of facilitation service revenue. which represents our core competency and maintains a stable take rate. Revenue relative to guarantees services has lower profit margins, and we have been strategically reducing its proportion over the past few quarters. In terms of revenue contribution, the share of facilitation service revenue increased 48% in Q4 2023 to 80% in Q4 2024, while the share of the revenue related to Guaranty Business decreased from 41.8% in Q4 2023 to 11% in Q4 2024. This shift in revenue structure aligns with our strategic goal

of high quality growth.

So based on this strategical focus, although the overall revenue in the year of 2024 slows down, and the revenue for the fourth quarter even slightly declined year over year, and mainly due to the decrease in revenue related to guarantee business, However, if we focus on our core business, which is facilitation service revenue, it reached RMB 1.124 billion in the fourth quarter, representing a year-over-year growth of 46.3%, which is even slightly higher than the growth rate of the facilitation volume. For the full year, Facilitation revenue totaled RMB 4.01 billion, reflecting a year-over-year increase of 15%, which also aligned with the annual growth rate of our facilitation volume.

回顾公司的过往业绩,2024年是佳音科技业绩量增长比较慢的一年,特别是2024年的上半年。 Due to the consideration of the red screen, we continued the business strategy that has been more efficient since the 4th quarter of 2023. However, since Q2 of 2024, especially in the second half of the year, with the continuous optimization of risk indicators and the active change of the red screen, we have gradually restored the rapid growth. You can also see from our operating data that the total trading volume has maintained a steady growth every quarter. The Q3 and Q4 two quarters have continued to create a record high.

我们在新客投放上采取了非常积极的策略 这也为我们未来几年的较快增长打下了扎实的基础 If we compare with the performance in the past few years, the year of 2024 does have a year of relatively slow performance growth for our company In particular, during the first half of 2024, we adopted a prudent operation strategy that began in Q4 2023 due to macroeconomic considerations. However, starting from the second quarter of 2024, especially in the second half of the year, with the gradual improvement in risk data and positive macroeconomic changes, we gradually resumed a faster growth pace. Our operational data shows that facilitation volume continued to grow sequentially each quarter. Notably, both the third quarter and fourth quarter achieved record high facilitation volumes for two consecutive quarters. We also implemented an aggressive strategy for acquiring new borrowers. laying a solid foundation for accelerated growth in the coming years.

In 2025, we will continue the strategy of high-quality growth. As Mr. Yan just mentioned, in 2025, the QE of the QE of QE is about 3.5 billion, with a growth of nearly 50%. The QE of the QE of the QE of the QE of the QE of the QE of the QE of the QE of the QE of the QE of the QE of the

In the year of 2025, we will continue to pursue a high-quality growth strategy. And just as Mr. Yen said, we expected the facilitation volume guidance in the first quarter to be around RMB 35 billion, representing a year-over-year increase of about 55%. And for the full year, we project a facilitation volume of RMB 137 to 142 billion, reflecting a year-over-year growth of about 36% to 41%.

That will be my answer to your question, Zhao Rong. Okay, thank you very much. 我这边还有一个问题,就是在这个技术研发和人才培养方面,公司目前有哪些具体的计划和投入,然后包括如何确保公司在技术方面保持领先? 我来翻译一下英文。 So, what plans and investments does the company currently have in technology and talent cultivation, and how does the company ensure it maintains a leading position in technology? Thank you.

Okay, I'm Xu Yifeng, and I will answer your question in Chinese, and Sean will do the translation in English. . . . . . .

Okay, so I will do the translation for this part first. So as a technology company, we have always been committed to leveraging technologies and data to connect and end consumers and licensed financial institutions through mobile internet, driving refined operations and risk measurements. And since the beginning of 2025, we have seen that DeepSeq is leading the AI revolution and accelerating the industry's AI transformation.

Hello, can you hear me? Yes, we can.

Okay, I will continue. In terms of technology development and talent training, in this direction, we first expanded the layout of the entire talent team in the direction of big data and AI investment. At the end of last year, big data and artificial intelligence were realized in the comprehensive upgrade of corporate architecture and strategic positioning. By using this organizational structure to fully scan our front-end and middle-end businesses, and deploy the landing and application of multi-faceted AI agents to promote a unified, one-stop and intelligent solution.

Okay, so just as what I said before that we have increased investment and deployment in the AI transformation direction. So first part of that is we have increased the investment in big data and artificial intelligence. So at the end of the last year, we completed a comprehensive upgrade of our corporate architecture and strategic positioning. We conducted a thorough review of both our front end and middle office operations and initiated the deployment of multi-node AI agents, advancing unified one-stop intelligence solutions.

So through

Our organizational support and increased investment, we are strengthening the automation capabilities across the entire data lifecycle, from the production and mining to application monitoring and iteration. We are empowering all data and technology personnel with AI-driven tools.

We are also trying to design large-scale models and clean-shaven AI development, especially in the wind control direction, so that artificial intelligence and professional experience can help each other in risk management and support each other, so that we can further enhance the competitive advantage in the field of consumer innovation that is increasingly fierce in competition, and build our entire professional partnership.

We are also exploring lightweight AI application in risk control process. And we are actively researching and deploying AI solutions in risk management, integrating artificial intelligence with accumulated professional expertise. This dual approach reinforce our competitive advantage and builds a robust professional mode in the increasingly competitive consumer credit market. And that will conclude my answer for your question.

Thank you for the questions. One moment for the next question. Next question comes from the line of Huarong. Please go ahead.

管理层,好。 我是来自上海金鱼资产的分析师,华荣。 我这边有两个问题想请教管理层。 第一个问题就是关注到公司2024年的净利润出现了下降,请问主要的原因是什么? 管理层认为公司目前是否存在成本控制方面的问题,未来是否计划有一些改进的措施? 那第二个问题是在2025年, 公司将计划如何优化借款人的体验以增加清廉性? 那除此之外, 公司是否有计划引入新的借款人的群体? Hello, management. This is Huarong from Jinyu Asset. I have two questions. The first one is we have noticed a decline in the company's net income in 2024. What are the main reasons for this? Does the management believe there are issues with cost control, and are there any plans for improvement in the future? My next question is, in 2025, how does the company plan to optimize borrower experience to increase their loyalty? Additionally, does the company have plans to attract new borrower groups? Thank you.

Thank you for your question.

The first question is about the net profit and cost. Let me answer it. In 2024, our net profit is 10.56 billion yuan. The net profit rate is 18.2% in the whole year. Compared to the net profit in 2023, 12.97 billion yuan has dropped by 2.4 billion yuan. There are three main reasons for the drop in net profit. So I will answer your first question about our net income and cost.

The year of 2024, the company's net income was RMB 1.056 billion with a net margin of about 18.2%. And it has a decrease of RMB 240 million compared with the RMB 1.297 billion in the 2023. And so I think there are So the year-over-year decline in our net income is mainly due to three reasons. The first reason is our one-time non-operating income, which happened in the fourth quarter of 2023. So in the fourth quarter of 2023, our company recorded approximately 280 million in the one-time non-operating income from a business disposal, which is the main reason for that decrease.

另外两个原因呢,一个是2024年公司的薪课投放力度加大, 相关的货客成本和征信成本相较2023年同时显著增加, 2024年的营销费用比2023年增加了3.75个亿, 所以从结果来看呢, We reached 33.2% in terms of new customers in 2024, and 277.4 million new borrowers this year, which is more than 45% of the total growth. In addition, the development cost of the company increased by more than 16 million in 2024, and the growth rate reached 25.7% in 2023. The company has strengthened the recruitment of AI professionals, and has continuously launched new systems and applications in the field of technology landing business. As Mr. Yifang mentioned, This will be helpful for us to continuously improve our operating efficiency and improve user experience. With the continuous strategic investment of the company in customer and technical research, we can strengthen the background of the company's performance growth. Next, with the faster growth of our total transaction volume, the effective control of the relative income ratio of the service provider, and the further landing of the application of AI, we will continue to improve the customer's turnover rate and process rate. The company's profit and loss ability will be significantly improved.

So the second reason is about our increased borrower acquisition efforts in the year of 2024. China significantly increased our borrower acquisition activities in 2024, leading to a higher related costs, including borrower acquisition and credit report expenses. Marketing expenses rose by RMB 300 75 million compared to 2023. As a result, new borrowers accounted for 33.2% of the total borrower base, with 2.774 million new borrowers added throughout the year, which is a year-over-year increase of over 45%. And the third reason I want to share is about the higher R&D expenses. So in the year of 2024, R&D expenses increased by more than RMB 76 million, which has a 25.7% rise year-over-year. And this increase was driven by the company's strategic focus on recruiting AI professionals and developing new systems and applications to improve operational efficiency and enhance our users' experience. So our strategic investments in the borrower acquisition and technology and also R&D sector are designed to strengthen our long-term growth momentum. And so going forward with rapid growth in facilitation volumes, effective control of the revenue share from guarantee services, and further implementation of AI applications, our company continues improvements in borrower conversion and retention rates, which will significantly enhance our profitability.

严总刚刚的发言中,大家应该已经注意到了, 就是从本次业绩发布会开始, 我们除了给出较量的指引以外, 我们还增加了一个利润相关指标的指引。 我们每次的发布会都会给出下一个季度的 非通用准则下的经营利润的这样一个预测。

You probably also noticed from what Mr. Yan just said before that starting in the year of 2025, so in addition to providing facilitation volume guidance, we will also offer a profit guidance metric. During each earning release, we will provide a forecast for the next quarter's non-GAAP income from operations, which could reflect our company's core business profitability most accurately.

公司业绩的显著改善,其实在2024年的Q4已经得到了初步的验证。 Q4的非通用准则的经营利润达到了4.02亿,同比环比都有显著的增加。 So our company's fourth quarter performance has already provided preliminary validation of this strategy.

So in the fourth quarter, our non-GAAP income from operations reached RMB $402 million. showing significant growth both year-over-year and quarter-over-quarter. We expect non-GAAP income from operations for the first quarter of 2025 to be in the range of RMB 570 to 630 million, representing a year-over-year increase of from 80% to 99%.

所以我们这一次的业绩指引其实有两个信号是非常清晰的, So our performance guidance sends two clear signals.

First, in terms of our business goal, we are returning to a path of high quality and rapid growth. And second, in terms of profitability, we are highly confident in achieving significant improvement in the year of 2025.

So I want to recall that

we are increasing our dividend policy from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. So in this way, we would like to continue to share the long-term profit benefits of the company's high-quality development. Okay, so that will be my answer to your first question. I will give the second question to Mr. Xu, to Ms. Xu.

Thank you, President Fan. Here we are going to talk about the customer experience and customer experience related to how we approach this problem in home technology. Of course, when we talk about this problem, we often think about consumer credit. We often pay attention to the financial attributes of consumer credit. Therefore, we emphasize the professionalism and ability of risk management. This company is extremely important. OK, so thank you, Mr. Fan.

So usually, people focus heavily on the financial attributes of the consumer credit, emphasizing the professionalism and capability of risk management which is very important for our industry, but while overlooking the consumer product aspect of consumer credit, ultimately the borrower needs to be willing to pay and recognize the value which is present in borrower retention. In this regard, we focus on the entire industry chain and the products process to enhance borrowers' stickiness, for example.

From the industry chain and the product process, we can see that there are a few key points that we can focus on. In addition, we will strengthen the cooperation with the traffic end, so that customers who have experienced home products in the past can meet us again. We can know him and be able to give this customer better products. Then from our internal process, it is to improve the smoothness of marketing and public-private approval. It is also a node that strengthens customer experience and improves the ability to attract young people. In the same way, in the direction of customer service, such as customer service, such as customer service, we are also very concerned about improving the authority and experience of high-quality customers. Okay, so I will give four examples under this case.

First is that We are strengthening cooperation with some popular traffic platforms. We could provide borrowers who have experienced our products before with better offerings and experience. Second is to internally improve the seamless connection between the marketing and risk control approval process. is we would like to enhance the customer service membership benefits and repayment reminders to improve the experience and privileges from our premium borrowers. And fourth, we would like to implement one-stop credit services to allow our borrower to access multiple funding sources and even experiencing multi-platform credit solutions.

Another very important point is that we would like to integrate the whole industry ecosystem through

innovative business models focusing on our core borrowers and driving the borrower base towards better pricing structures.

So lastly, about our new borrower groups.

We continue to adhere to our existing market positioning. We are constantly pursuing the acquisition and retention of our high-quality borrowers. So this approach enabled us to achieve a diversified layout across products, borrowers, and financial institutions. Okay, thank you, Hua. That will conclude my answer to your question.

Thank you. Seeing no more questions, I will return the call to Sean for closing remarks. Please go ahead.

Thank you, operator, and thank you all for participating on today's call, and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

Thank you all again. This concludes the call. You may now disconnect.