Jiayin Group Inc.

Good day ladies and gentlemen. Thank you for standing by and welcome to the GIYIN Group's first quarter 2025 earnings conference call. Currently all participants are in the listener 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 will now turn the call over to Mr. Sam Lee from Investor Relations of Jiayin Group. Please proceed.

Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the first quarter of 2025. We released our earnings results earlier today The press release is available on the company's website, as well as from Newswire Services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunling, Chief Financial Officer, and Ms. Xu Yifang, 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 Securities Delegation 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. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement, except as required under applicable law. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. 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. Yanding Gui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

大家好,感谢各位参加佳音科技2025年第一季度业绩电话会。 Hello, everyone.

Thank you for joining our first quarter 2025 earnings conference call.

本季度,国内经济持续释放复苏潜能,延续稳中有进的良好态势。 The total consumption of social consumer goods has increased by 4.6% in the same ratio. In March, the growth rate rose by 5.9%. Consumption is active and can be restored. In this critical period, we took the opportunity to take advantage of the situation and realized the opening of the door. The company's loan collection transaction amount is 35.6 billion yuan, which increased by 58.2% in the same ratio. Non-GAAP operating profits This quarter, China's economy continues to demonstrate recovery momentum and maintain steady growth.

Total retail sales of consumer goods rose by 4.6% year-over-year. with the growth rate accelerating to 5.9% in March, indicating a pickup in consumer spending. We capitalized on the momentum and delivered a strong start to 2025, with loan facilitation volume reaching RMB 35.6 billion, up approximately 58.2% year-over-year. Non-GAAP operating profit hit RMB 607 million, marking a year-over-year increase of 91.6%. and net profit surged to RMB 540 million, reflecting a year-over-year rise of 97.5%. Both business scale and profitability metrics hit record quarterly highs since the company's listing, marking the beginning of a new phase of rapid growth.

依托丰富多元的户口渠道和持续加大的户口投入, 2015年一季度,公司新增借款用户105.6万人, The growth rate of the same ratio is about 126.6%. The exchange rate of new customers increased from 28.1% to 28.1%. This shows a strong growth movement. In terms of channel expansion, we explore the use of business scenarios to reach a large number of customers, cover life services, online videos, travel and travel, and other multiple platforms for strategic cooperation, and form a differentiated supplement to the existing customer structure. In addition, we use AI tools to accumulate user feedback, optimize marketing materials, and continue to improve customer efficiency by real-time adjustment of marketing strategies and precise investment resources. For the high-speed expansion of the matching demand, we actively expand the high-quality institutional cooperation network. As a result, the company maintains a cooperative relationship with 69 financial institutions, and another 55 institutions are in talks to provide strong financial security for the development of residential businesses.

Diverging diverse acquisition channels and wrapping up marketing efforts, in the first quarter, the company added 1.056 million new borrowers, representing a year-over-year growth of 126.6%. New borrower contribution of total loan facilitation volume was 28.1%, demonstrating robust growth momentum. In terms of channel expansion, we explored cross-industry use cases to reach new borrowers across different platforms including lifestyle services, online video, and travel. By establishing strategic partnerships with multiple leading platforms, we further diversified our existing follower base. Additionally, we integrated AI tools to analyze user feedback and optimize marketing materials, enabling real-time adjustments to marketing strategies and targeted resource allocation to enhance follower acquisition efficiency. To meet the rapid growth in consumer demand, We also actively expanded our high-quality institutional partnerships. As of the end of quarter one, the company maintained partnerships with 69 financial institutions, with another 55 financial institutions in discussion. This ensures robust funding support for our loan facilitation business.

We have always insisted on self-innovation as the core driving force to continue the digital transformation of non-profit businesses, actively promoting the 10 plus 2 AI development strategy, Surrounding business intelligence, data intelligence, assistant intelligence, and office intelligence, four major products are selected. Co-create two basic facilities for the intelligence platform and the large model training platform. Build a technical framework that supports the company's entire network of AI capability upgrades. Fully guide the scene of the intelligence business to the development of high quality. In May, we released the Huxi model management platform. Currently covered 90% of the business line. After the development of the model, the support for fast deployment is on the line, and the operation steps are greatly simplified. Model deployment efficiency has been increased by nearly three times. Model data processing efficiency, model stability and execution speed have been significantly improved. At the same time, we have fully upgraded the Tianlu R&D Efficiency Management Platform, and built a unified management platform that covers product R&D to online operation and full life cycle, to further improve the standardization of R&D processes,

We view independent innovation as our key growth driver and continue to accelerate the digital transformation of our business. We actively promoted our 4 plus 2 AI development strategy in the first quarter, focusing on four major product matrices, business intelligence, data intelligence, agent intelligence, and workplace intelligence, while collaboratively building two infrastructure platforms, the intelligent agent platform, and the large model post-training platform. This helps establish a technological framework that supports the end-to-end AI capability upgrade across the company, comprehensively driving high-quality development and intelligent business scenarios. In May, we launched the Fuxi Model Management Platform, which now covers 90% of our business line. The platform is capable of faster model deployment, greatly streamlining operations and improving model deployment efficiency threefold. Furthermore, model data preprocessing efficiency, model stability, and execution speed have all seen notable improvements with the adoption of the Fuxi Model Management Platform. We have also comprehensively upgraded the Tianlu R&D Performance Management Platform, creating a unified management platform that covers the entire lifecycle from product development to online operations. This further enhances the standardization and automation of R&D processes.

In this season, in the face of the rapid growth of new users and the continued rise in demand for new products, we are fully promoting the quality division mechanism, using the self-proclaimed model to build a new risk assessment system, linking the customer model and the control and other departments to unify the customer quality assessment standards.

In response to the rapid growth of new users and continuous rise in credit demand, we fully implemented the quality score framework, utilizing our self-developed model to establish a risk assessment system for new borrowers. collaborating across multiple departments, including borrower acquisition, modeling, and risk management. We unified the evaluation standards for borrower acquisition quality. This approach enhanced borrower acquisition efficiency while maintaining discipline management over risk performance. By the end of Q1, the 90-day plus delinquency ratio stood at 1.13%, reflecting the remarkable stability of the company's risk management system.

Overseas business, the company's continuous investment in control and operation has achieved significant results. The performance of our cooperation partners in the Indian region is outstanding. The number of new registered users has increased by 196%, and the size of the bank has increased by 190%, which has achieved a major breakthrough. As the business continues to mature, we plan to open cooperation in many forms in the local area to further deepen the local market layout. The risk performance of the Mexican business has been optimized,

In terms of overseas business, the company's continued investment in risk control and operations has yielded significant results. Our business partners in Indonesia delivered outstanding performance in the first quarter, with the number of new registered users surging by 196% year-over-year and loan volume growing by 190% year-over-year. both representing substantial breakthroughs. As the business matures, we plan to collaborate with local partners through diversified cooperation to further deepen our engagement in the local market. Meanwhile, risk metrics in our Mexico operations improve, accompanied by an increase in return on borrower acquisition investments. This fully demonstrates the continued advancement of our overseas operational capabilities.

We have always insisted that the concept of customer-centered is the core of industry regulations. In a quarter, the company released a white paper on customer protection in 2024. From technology anti-bomb, warm-hearted customer service, external linkage, and消防宣教, and many other dimensions, we want to integrate the customer protection work into the management of the company, and show the innovative practice and responsibility under the big消防 pattern. In addition, we continue to recommend the Mental Smile Youth Mental Care Project to enter multiple places to develop self-development, psychological knowledge training, home classes, and activities such as caring for autistic children. Covering a total of 60 schools, a total of 1.6 million people. The project is approved by the annual public interest innovation typical case case. In addition, the family technology volunteer service team has entered the community or special school many times to provide online service. We have always adhered to a customer-centric philosophy and view upholding industry standards as our responsibility.

In the first quarter, the company released a 2024 Consumer Rights Protection White Paper, integrating consumer rights protection into every aspect of the company's operations and management. This initiative spans multiple dimensions, such as technology-driven fraud prevention, engaged customer service, external collaboration, and consumer protection education. The white paper showcases our commitment to enhancing the innovative practices and social responsibility in consumer rights protection. Additionally, we advanced the Heart Smile Youth Mental Care Project and conducted training for teachers and students focused on psychology, organized parent workshops, and activities supporting children with autism in multiple regions. The program has covered nearly 60 schools, benefiting over 16,000 individuals, and was recognized by China National Radio as an annual explanatory case of innovative philanthropy. Furthermore, the Jiaying Volunteer Service Team consistently provided services for community and special schools. promoting the normalization of volunteer services. Looking ahead, we will continue to drive industry development through technological innovation and give back to society through concrete actions, reaffirming the trust placed in us.

股东回报方面,今年三月我们更新了派系政策, 将派系比例由不低于上一财年税后净利润的15%提升至30%左右。 In May, the Board of Directors approved the issuance of $0.8 million per ADS. The amount of issuance increased by about 60% compared to last year. Other details of this issuance, such as date and information, will be announced after further confirmation by the Board of Directors. In terms of the recovery plan, the current stock recovery plan is listed at $30 million. The Board of Directors approved to extend its effective period to June 12, 2026.

Regarding shareholder returns, in March, we updated our dividend policy, raising the dividend payout ratio 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. the Board of Directors approved a dividend plan of $0.8 per ADS, with the dividend amount increasing by approximately 60% compared with last year. Further details and dates for this dividend will be announced separately after the Board of Directors finalizes them. For the share repurchase program, the current plan has an upper limit of $30 million, and the Board of Directors has approved extending its validity to June 12, 2026. We are deeply honored, as always, to have the trust and support of our shareholders. In the future, we remain committed to sharing the company's development achievements and rewarding our shareholders.

In April, the National Financial Supervisory Board announced a notification on strengthening the management of commercial banks' mutual loan business and improving financial services. The new rule affirms the positive value of the loan industry and sets a clear monitoring framework. Thank you very much.

This is the operators. Speakers, we cannot hear you at the moment. Please check if the line is muted. Callers, please do hold the line whilst we get the speakers sound connected.

Hi, operator. This is Yifeng Xu calling from Jiayin Group. I believe the speaker who were presenting just now got disconnected. They are dialing in at this moment.

Thank you very much. Participants please do continue to hold the line whilst the speakers reconnect. Hello, is this the speaker line reconnected?

Yes, we got disconnected, sorry.

Thank you, line is connected now, so please do continue.

Okay, okay, okay. In April, China's National Financial Supervision and Administration Commission

issued the notice on strengthening the management of internet loan facilitation business of commercial banks to enhance the quality and efficiency of financial services. The new rule affirms the positive value of the loan facilitation model and sets a clear regulatory framework, helping the industry move towards a more standardized and transparent practice. Looking ahead, despite global uncertainties affecting China's economic recovery, we still see many positive factors and remain cautiously optimistic. For Q2 2025, we set our guidance for loan facilitation volume at RMB $37 billion to RMB $39 billion, and non-GAAP operating profit at RMB $660 million to RMB $730 million.

Next, I would like to invite Mr. Fan Chunlin to introduce the financial performance of this quarter.

And with that, I will now turn the call over to our CFO, Mr. Fan Chunling. Please go ahead.

Thank you, Mr. Yan. 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. Yan mentioned earlier, we sustained robust growth momentum in the first quarter, achieving a record-breaking expansion in both business scale and profitability. Loan facilitation volume was $35.6 billion, representing an increase of 58.2% from the same period of 2024. Outline revenue was $1,775.6 million, representing an increase of 24.4% from the same period of 2024. Moving on to COPS. Facilitation and servicing expense was $336 million, representing a decrease of 49.6% from the same period of 2024. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncredible assets, loans, receivables, and others was $17.5 million, compared with $2.6 million in the first quarter of 2024. primarily due to the additional overseas guarantees the company provided in the first quarter of 2025. Sales and marketing expense was 674.5 million, representing an increase of 87.5% from the same period of 2024, primarily due to an increase in borrower acquisition expenses. G&E expense was 52.8 million, representing an increase of 14.2% from the same period of 2024, primarily due to increased professional service fees. R&D expense was $88.1 million, compared with $83.3 million in the same period of 2024. Non-GAAP income from operation was $606.6 million. compared with RMB $316.6 million in the same period of 2024. Consequently, our net income for the first quarter was $539.5 million, representing an increase of 97.5% from $273.1 million in the same period of 2024. Our basic and diluted net income per share was 2.53 compared with 1.29 in the first quarter of 2024. Basic and diluted net income per ADS was 10.12 compared with 5.16 in the first quarter of 2024. We ended this quarter with 190.3 million in cash and cash equivalents compared with 540.5 million at the end of the previous quarter. With that, we can open the call for questions. Ms. Xu, our chief risk officer and I will answer your questions. Operator, please proceed.

Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please stand by while we compile the Q&A roster.

Thank you.

We will now take our first question. This is from the line of Hua Rong from Geniu Asset. Please go ahead.

First of all, congratulations to Manager Teng for achieving a very good performance this quarter. I have two questions for Manager Teng. The first is the trend of increasing the overall cost of goods in the current industry. First, congratulations to management to have such brilliant revenue report this quarter. I have two questions. The first one, there has been a noticeable trend of raising customer acquisition costs across the industry. How has the company's acquisition costs evolved recently? And in this concept, what measures are being taken to measure the credit risk of new borrowers and ensure a set quality? My second question is, how's the company's management planning to address the potential ADR delisting risk, and what contingency measures are in place to mitigate the impact? Thank you.

Hello, Ms. Ah Long. I am Xu Yifang. I would like to answer your first question, which is about the change in the cost of goods and risks. The second question, I would like to ask Mr. Fan to explain the risk of retirement.

Hi, Ms. Huarong. I will answer your first question on the rising customer acquisition costs, and Mr. Fan will answer your second question on the ADR delisting risk.

Since the start of Q4 last year, the entire housing market has actually come out of a different curve. This year's Q1, the continued increase in new customers in the entire market also shows the trend of rising cost of goods on the market level. In the same way, we also saw a trend of rising cost of goods on the market level. But from an internal point of view, there are many factors that affect the cost. For example, the impact on the overall external market environment, the impact on the choice of growth season cycle throughout the year, and the impact on the choice of our internal strategy.

Starting from Q4 last year, the market has become a lot more dynamic and the overall macro trend has become a little bit different. And in Q1 this year, the market as well as the competitor has turned into acquiring new customers. So yes, Jiayin has also observed a rising trend in customer acquisition costs. This development is the result of multiple factors, including the broader external market environment, seasonal growth dynamics, and the company's own strategic decisions.

前面谈到的就是在去年下半年开始的住宅平台的竞争的加剧。 我们看到在各个模式下的货客端都出现了不同程度的对新客体量的一个增强。 This is an external environment. As for the first quarter of this year, the company will also advance the layout for the year-end performance targets. In this direction, especially in Q1, the growth of the overall customer base volume and the increase in the number of new customers will also advance the layout and preparation of a larger increase.

Yes, so as mentioned earlier, since the second half of last year, competition among loan facilitation platforms has really intensified, with various acquisition channels being increased pressure to capture new users. And this is one of the main external factors. As the first quarter marks the beginning of the year, we have proactively positioned ourselves to support our full-year performance goals, reflected really in the strong push for user-based expansion early on.

As Mr. Yan mentioned before, we are introducing a new rule and are promoting it in the entire industry. We will also increase our attempts and investment in the new direction. Additionally, earlier Mr. Yan referred to the new regulatory framework.

The new regulatory framework on governing loan facilitation. We've been actively exploring new areas of growth. This has led to increased investment and experimentation in acquiring new customers and expanding our customer segments. As a result, the rise in our customer acquisition cost to a large extent is a strategic choice. We expect this to be reflected in both the scale and quality of customers acquired going forward.

When it comes to the overall view of the new class, we will focus on the change in the flow of the market in the business model. We will actively and effectively drive the target customer group to increase the time capacity of the front model of the customer end. At the same time, we will take dynamic decisions to form the structure of the customer end, In regards to the new customer asset quality, the concerns regarding the asset quality, we will continue to monitor shifts

in the user acquisition models across the traffic ecosystem. While staying focused on effectively reaching our target customer segments, we plan to strengthen our front-end risk modeling capabilities, dynamically adjusting our channel mix, and further enhancing AI applications in data mining and credit risk identification. These efforts aim to drive continued improvement in both customer acquisition costs and risk cost metrics for new borrowers.

Regarding the second question, I would like to invite Mr. Fan to answer it.

Mr. Fan, I will answer your second question.

Okay, thank you, Mr. Zhang. Regarding Mr. Fan's question, Mr. Fan, I will answer your second question. Regarding Mr. Fan's question, Mr. Fan, I will answer your second question. Regarding Mr. Fan's question, Since Trump returned to the White House this year, we have been paying attention to some of the new remarks and actions of the U.S. on the withdrawal of China and the U.S. on the withdrawal of China and the U.S. We have continued to communicate and discuss with the intermediary institutions and relevant regulators. We have also carried out a series of evaluations on the risks of the U.S. withdrawal. The comprehensive information and professional judgment in all aspects, I feel that in terms of technology, based on the industry we are in, our business model, I will answer the question regarding the ADR delisting risk.

So the risk with Chinese ADRs being delisted has been an ongoing concern for several years, with the first wave of pressure starting during President Trump's first term. Following his return to the White House, we have gained we have again observed renewed rhetoric and actions in the U.S. related to the potential delisting of Chinese ADRs. So what we have done is we've engaged in extensive communication and consultation with our legal, financial advisors and regulatory bodies to assess the potential risk of delisting. Based on oral evaluation of various factors, including our industry business model, ownership structure and audit disclosure standards, We believe that the risk of delisting for giant technology in the near term remains relatively low.

Of course, at the same time, we have made two preparations. We have made many assessments on the company's stock structure, accounting standards, and management of the company, and also carried out a lot of preliminary preparation work.

At the same time, we still have to be ready and be proactively prepared for any alternative scenario. So within the guidelines of the Hong Kong exchanges, we have conducted comprehensive assessment and preliminary preparations across key areas, such as shareholder structure, accounting standards, and corporate governors. And this is all in line with the requirements for dual primary listing or secondary listing in Hong Kong.

We believe that no matter how the capital market changes, we have a lot of options on the table. With President Trump's words, we have the cards in our hands. We are open to all kinds of possibilities, and we are actively preparing for business. We ensure the long-term sustainable development of enterprises, and at the same time protect the interests of major shareholders.

As a company that has achieved meaningful scale, maintains core competitiveness, and delivers consistent profitability, Jialing Technology is well positioned with multiple options. In the words of President Trump, we do have cards to play, regardless of volatility in the capital market. We remain open to all possibilities and are actively preparing to ensure the company's long-term sustainability and to safeguard the interests of our shareholders.

This is my answer. Thank you, Ms. Hua.

That concludes my answer to your questions. Thank you, Ms. Huang.

Thank you. We will now move to the next question. Your next question is from Yushuan Chen from Huatai Securities. Please go ahead.

Thank you for giving me the opportunity to ask a question. I'm Chen Yixuan from Huatai Securities. I have two questions for you. First, we observed that the company's net profit increased by 97.5% in the first quarter. What is the main reason for the company's profit and profit increase in the first quarter? Also, can the management level look forward to the development of the following net profit? This is the first question. The second question is, Okay, let me do the translation. Hello, management. Thanks for giving me this opportunity. This is Chen Yuxuan from Huatai Securities. I have two questions. The first one is, I noticed the net profit increased by 97.5% in this quarter. And what were the main drivers behind this significant improvement in profitability? And what is your outlook for profitability in the coming quarters? And the second question is, recently the financial regulators issued new guidelines on loan facilitation in China. How does the company view this policy development? and what impact do you expect it to have on your business operations?

Thanks. Thank you, Yusheng. I will answer the first question about the economy. The second question is about the impact of the new rules on our business. It will be answered by Mr. Yi. As Mr. Yan said in his speech, we realized the opening of the door. QAE's net net profit of QAE in 2025 reached 60.7 billion yuan, which increased by 91.6%. Our net profit is also 5.4 billion yuan, which increased by 97.5%. The net profit rate reached 30.4%. Compared to last year, the same period of 18.5% increased significantly. There are mainly the following reasons.

Thank you, Yuxuan. I will answer the first question, and Ms. Xu will answer the second question regarding the new guidelines. As Mr. Yan mentioned, in Q1, we came out really strong with good financial results for the first quarter. In the first quarter of 2025, the company achieved net profit of RMB 540 million, representing a year-over-year increase of 97.5%. Net profit margin reached 30.4%. significantly higher than the 18.5% reached in Q1 2024. This improvement was driven by several key factors.

The first reason is the significant increase in the size of the company's interoperability trading volume. Our interoperability trading volume in Q1 of 2025 reached 35.6 billion, which increased 58.2% at the same time, which lowered the technical height of the company since its launch. The size effect does bring about an improvement in cost and cost. This is the first reason why we have increased the exchange rate level.

The first reason is due to significant increase in loan facilitation volume. In the first quarter of 2025, total loan facilitation volume reached RMB 35.6 billion, up 58.2% year-over-year, marking a new high since our IPO. The resulting economies of scale enabled cost and expense efficiency, leading to improved net profit margins.

The second reason is that our revenue structure continues to improve. As we have mentioned before, in our current revenue structure, there are two main parts. One is the combined service income, and the other is the insurance service income. In recent seasons, the company has been focusing on the high-quality growth of combined service income. This service is the core capability of the company. Insurance service income has a relatively low profit rate, so in recent seasons, we have been strategically reducing this income ratio. From the contribution percentage of revenue, The second reason is ongoing optimization of revenue structures.

As we've mentioned before, our current revenue is primarily composed of loan facilitation service revenue and guarantee-related revenue. In the recent quarters, we have really strategically focused on driving high-quality growth in loan facilitation services, which are at the core of our capabilities. In contrast, guarantee-related services carry lower margins, so we have been intentionally reducing their share of revenue, specifically Loan facilitation service revenue accounted for 83% of total revenues in Q1 2025, up from 56% in Q1 2024. While at the same time, guarantee-related revenue dropped to 9.6% in Q1 2025, down from 35.6% in the same period last year. This shift in revenue mix has significantly enhanced our overall profitability.

The third reason is that we continue to invest in AI technology. The third reason is improved operational efficiency driven by continued investment in AI, technology and R&D.

We continue to invest strategically in technology, AI and R&D with the particular focus on deploying AI across various operational functions. These efforts have laid a solid foundation for sustained improvement in efficiency both in Q1 and going forward.

As for the subsequent performance growth, the Q2 combined trading volume is 3.7 to 3.9 billion RMB, with a growth of 54% to 62.5%. In terms of future guidance and outlook,

For Q2, we're guiding loan facilitation volume to be in the range of RMB $37 billion to $39 billion. This represents a 54% to 62% increase in our non-GAAP operating income between RMB $660 million and RMB $730 million. This is also a significant increase year over year. We really remain committed to delivering on the goals set at the beginning of the year. First, returning to a path of high-quality, sustainable growth. And second, at the same time, continue to improve asset quality and operational efficiency. We're confident in achieving significant profitability improvements for the full year of 2025.

Thank you.

And we'll have Ms.

Xu answer the second question. In terms of housing management, the housing management method started in the second half of last year. It was launched in the first half of this year. It's a policy that has a big impact on the housing industry. From our point of view, the new policy represents an improvement in the housing management model. Of course, it also raised higher requirements for business management. I think in the end, I hope that the platform can assist the private sector to provide better services, lower pricing, and allow a wider customer base to receive benefits, and promote the development of the industry, which can also be an interesting development, to realize the real risk control.

As far as the new regulation goes, we think that they started drafting this regulation in the second half of last year and really became official this year. Overall, the new regulation reflects the regulatory recognition of the loan facilitation business model while also setting higher standards for its management. We believe it encourages platforms to support licensed financial institutions in delivering much broader financial inclusion through better service to better service quality, lower pricing, and thereby promoting the industry's orderly development and effective risk control.

去應對我們的所有的合作金融機構如何去以更優質服務和更優定價的去服務客戶 我們會配合合作機構在定價和產品形態上的要求 Thank you very much. From the point of view of Jiayin, we can promise that our work has basically been completed in the preparation of product transformation and landing. As for the institution that wants to respond as soon as possible, we will make corresponding changes and landings in the near future. With the speed and rhythm of this institution's response,

In order to help our institutional partners achieve their goals and requirements, we're actively adapting to the evolving product requirements from our partner institutions in terms of pricing and structure. Given the large number and diversity of our institutional partners, the responses from them to the new regulation vary to some extent. That said, we're really nearing the completion of our product adjustments and implementation. So for the partners who are seeking faster alignment with the new regulatory standards, we will begin switching over and rolling out the updated offering shortly. So we expect to complete all the necessary adjustments and meet all the requirements across our institutional partnerships ahead of the scheduled deadline.

At the same time, we will actively promote the overall plan of the entire business layout, from geographical location and different markets to find new expansion points. At the same time, we continue to invest in new growth drivers across regions

and really to expand the scale, optimize the product models, and really further enhancing our capabilities in risk management, internal metrics, and cost efficiency, and to sustain high-quality growth for giant technology.

I hope that answers your question.

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

Thank you, operator, and thank you all for participating on today's call. 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.