Jiayin Group Inc.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Gian Group's second quarter 2025 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 will now turn the call over to Mr. Sam Liddy from Investor Relations of Gian Group. Please proceed.

Thank you, Operator. Hello, everyone. Thank you all for joining us today on today's conference call to discuss Jiayin Group's financial results for the second 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 Junlin, 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 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. Further information regarding these and other risks and activities 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 discussion 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, unless otherwise stated, All figures mentioned during the conference call are in Chinese. With that, let me turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

Good afternoon, everyone.

Thank you for joining Giant Group's second quarter 2025 earnings conference call.

In the first half of the year, China has strongly promoted the promotion of consumer-oriented action. The total number of social consumer goods sales has increased by 5%. In addition, the six departments jointly issued a guide on financial support for promotion and expansion of consumption. It is aimed at advancing the financial supply in the field of expansion of consumption. Under this background, the company is keen to seize the opportunity to fully play out the core advantages and accelerate the supply and demand match. . . . . .

In the first half of this year, China has vigorously advanced its special initiatives to boost consumption, with total retail sales of consumer goods rising by 5% year-on-year. Additionally, six government departments jointly issued exciting opinions on financial support for boosting and expanding consumption. aiming to further expand financial supply in the consumption sector. Against this backdrop, the company has seized market opportunities, leveraged its core strength, accelerated the matching of consumer credit supply and demand, and supported the release of household consumption potential. In the second quarter, the company achieved loan facilitation volume of RMB 37.1 billion, representing a year-on-year increase of approximately 54.6%, setting a new record. Non-GAAP income from operations reached RMB 738 million, up approximately 182% year-on-year, while net income reached RMB 519 million, a year-on-year increase of approximately 117.8%. While ensuring compliant operations, the company has successfully achieved its established operational targets and maintained a positive development momentum.

In the reporting period, the company maintained deep cooperation with 70 financial institutions, and 58 other financial institutions are in talks. The company has also been listed as one of the top business partners. This is not only a recognition of the company's regulatory capabilities, technological strength, and brand influence, but also helps to strengthen the continuity and diversity of capital supply, and provides long-term support for the company's stable operation. At the same time, we are also exploring new ways of development with our partners, such as developing joint operations projects, assisting financial institutions to determine and connect fixed flow channels, using detailed scenario penetration or control modeling to realize resource integration or use-for-all. Currently, we are working with 11 banks and consumer financial companies to continue to increase the number and scale of projects.

During the reporting period, the company maintained in-depth cooperation with 70 financial institutions, with another 58 under active negotiation. We have also been included in the wide list of loan facilitation partners by multiple institutions, which not only recognizes our compliance capabilities, technological strength, and brand influence, but also helps enhance the sustainability and diversity of funding supply, providing long-term support for stable operations. Meanwhile, the company is also jointly exploring new business development paths under the new regulatory framework with funding partners. Examples include launching joint operation projects to assist financial institutions in connecting with targeted traffic channels, achieving resource integration and complementary advantages through refined scenario engagement and risk control modeling. To date, we have collaborated with over 10 banks and consumer finance companies with a number and scale of projects continuing to grow, effectively empowering institutional partners and significantly strengthening ecosystem synergy.

According to the competition, the total amount of money donated by the Chinese government has increased by 4.8% compared to the total amount of money donated by the Chinese government. The total amount of money donated by the Chinese government has increased by 4.8% compared to the total amount of money donated by the Chinese government. In the second quarter, we have further enhanced our asset generation and risk pricing capabilities, leveraging precise borrower segmentation strategies and more competitive credit limits.

The average borrowing amount per repeat borrower increased by 4.8% quarter-on-quarter, and the share of loan facilitation volume rose from 71.9% in the previous quarter to 75.6% in the current quarter, effectively boosting borrower stickiness. We have also achieved multi-point borrower outreach through continuously expanding acquisition channels and a diversified partnership ecosystem. The number of borrowers in the current quarter reached 908,000, representing a year-on-year increase of approximately 33.5%, achieving balanced growth between new and repeat borrowers, which together form the growth resilience of the company.

In terms of risk management, we continue to expand our investment in technology and implement data-driven public policy strategies. The focus is to promote the reconstruction and construction of multi-modal anti-missile systems thousands of telecommunication records were taken away, and the company's free library was established. In the black and gray detection and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and anti-bombing and In terms of risk management, we have continued to increase investment in technology and adhere to a data-driven risk control framework.

Key efforts have been focused on building a multimodal anti-fraud system. By extracting voice prints from tens of millions of calls, we have established our own voice print database, which has been applied in multiple business processes, such as identifying black and gray market activities and preventing fraud. Through multi-dimensional data cross-verification and real-time dynamic intelligent recognition, we've blocked approximately 320,000 malicious fraud applications in the first half of 2025 and cumulatively identified and intercepted over 460,000 high-risk habitual fraud applications. To address market fluctuations, we customized risk models to assess high-volatility, high-risk users, enhancing risk prediction capabilities. At the end of the second quarter, the 90-day plus delinquency ratio remained stable at 1.12%.

In order to continue strengthening the value of AI technology for business, the company's . . . . . The function of AI-generated small-scale dialogue is reduced by about 80% at the same cost. In terms of infrastructure construction, we have strengthened and optimized the model by placing it at the top five on the list of top-of-the-line models. From the first place in the parameter model, the generation accuracy rate has reached 71%, and it will be the last place to be in the next generation. To continuously strengthen the value of AI technology in empowering our business,

The company has focused on building foundational capabilities and scenario-based applications, expanding the breadth and depth of business intelligence. In the second quarter, we launched a data intelligence assistant with three key agents, effectively reducing the threshold for business R&D and improving data R&D efficiency. In the agent intelligence domain, we have gradually replaced some commercial large language models with post-trained self-optimized models, resulting in significant cost reductions and efficiency improvements. For example, in agent assistance scenarios, the cost of AI-generated conversation summaries decreased by approximately 80% year-on-year. In terms of infrastructure development, our models, optimized through reinforcement learning, ranked fifth on the internationally authoritative BERT Evaluation Leaderboard, securing the top position among models with the same amount of parameters with a generation accuracy rate reaching 71%. This lays a solid foundation for the subsequent implementation in loan facilitation scenarios and the construction of our core competitiveness in data engineering. Meanwhile, the company has built a one-stop self-service R&D platform that supports various business departments in developing and deploying exclusive AI agents as needed. Within just one month, over 200 such agents have been deployed. strengthening internal empowerment, and systematically advancing the in-depth implementation of AI across the business ecosystem.

海外市场始终是公司长期战略布局的重要方向。 二季度,我们印尼合作伙伴因为发展态势良好, 账款金额同比增长超200%, 注册用户数同比增长约170%。 进行合规的同时,持续集成用户积累与运营效率, On the other hand, in terms of revenue, the total revenue of this quarter is about 40% of the total number of registered users. The focus is to explore the innovation and optimization of the product system. We will continue to work with local partners to expand the overseas market.

Overseas markets remain a critical component of the company's long-term strategic layout. In the second quarter, our Indonesian partners saw robust business growth. with loan disbursements increasing by over 200% year-on-year and registered users growing by approximately 170%. While maintaining compliance, we continue to enhance user accumulation and operational efficiency. In Mexico, loan disbursement and registered users both increased by nearly 40% quarter-on-quarter, with a focus on product innovation and optimizing risk control systems.

Guided by an open and win-win philosophy, we will continue to collaborate with local partners to unlock the potential of overseas markets. Recently, we released our 2024 ESG report, which highlights substantial progress in sustainable development.

At the corporate governance level, we adhere to leveraging technological innovation to advance inclusive finance. In terms of social responsibility, we have carried out multiple public welfare initiatives focusing on educational support, mental health care. For environmental protection, we have reduced energy intensity and carbon emission intensity through optimized energy and emission management. We have deeply integrated ESG practices into our business operations, fostering a positive cycle among economic returns, social value, and low-carbon operations.

In terms of return on investment, in July this year, the company has launched its annual capital stock market. The board approved a capital stock market of $0.8 per IDS. The total amount of capital stock market is about 4,110,000 yuan. Last year, the growth was more than 50%. In terms of return on shares, the board of directors has approved the effective period of the current return plan to be extended to June 12, 2026. In August, we added an additional $5,000 return on the basis of the current return plan. We will flexibly adjust the cash allocation and the share return mechanism and share the success of development with shareholders to achieve value sharing.

Regarding shareholder returns, in July of this year, the company distributed its annual cash dividend. The board of directors approved a cash dividend of U.S. $0.8 per ADS, with a total dividend amount of approximately U.S. $41.1 million, representing an increase of over 50% compared to last year. In terms of share repurchases, In June, the board approved extending the current repurchase program's validity period to June 12, 2026. In August, we increased the existing share repurchase plan by an additional US $50 million. We will flexibly adjust cash dividend and share repurchase policies to share development achievement with shareholders and achieve mutual value creation.

Hello. In the second half of the year, with the gradual decline of the new rules, the policy environment in the financial field is clear. We will stick to the principle of co-ordination, the principle of control, and the rhythm of movement and control. It is expected that the total number of transactions in the third quarter of 2025 will be 3.2 billion yuan to 3.4 billion yuan. The profit and loss of the long cap will be 4.9 billion yuan to 5.6 billion yuan. In the future, we will use co-ordination as an opportunity

Looking ahead to the second half of the year, as new loan facilitation regulations are gradually implemented, the policy environment in the Internet finance sector is becoming clearer. We will adhere to the principle of compliance as the foundation and prudent operations, dynamically adjusting our operational pace. The company expects its third quarter 2025 loan facilitation volume guidance to be RMB $32 billion to RMB $34 billion, with non-GAAP income from operation guidance set at RMB $0.49 billion to RMB $0.56 billion. Moving forward, we will take compliance as our cornerstone and innovation as our wings, accelerate the building of differentiated competitive barriers, and ensuring sustainable and steady growth for the company.

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 know that all numbers will be in RMB, and our percentage changes refer to year-over-year comparisons. unless otherwise noted. As Mr. Yan noted earlier, we maintained robust growth momentum throughout the second quarter, setting a new record high in business skills. Loan facilitation volume was $37.1 billion, representing an increase of 54.6% from the same period of 2024. Our net revenue was $1,886.2 million, representing an increase of 27.8% from the same period of 2024. Moving on to costs. Facilitation and servicing expense was $285.1 million, representing a decrease of 53.1% from the same period of 2024. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncollectible assets, loans receivable, and others was $32.5 million, compared with $3.3 million reversal in the second quarter of 2024, primarily due to the additional cap of overseas guarantees which the company provided for loan facilitation business conducted by the company's investee in the second quarter of 2025. Sales and marketing expense was $710.5 million, representing an increase of 46% from the same period of 2024, primarily due to an increase in borrower acquisition expenses and commission expenses. G&E expense was $110.5 million, representing an increase of 70% from the same period of 2024, primarily driven by an increase in payroll expenses and share-based compensation. R&D expense was 108.4 million, representing an increase of 16.8% from the same period of 2024, primarily due to higher share-based compensation as well as increased professional service fees. Non-GAAP income from operation was 737.6 million, compared with $261.6 million in the same period of 2024. Consequently, our net income for the second quarter was $519.1 million, representing an increase of 117.8% from $238.3 million in the same period of 2024. Our basic and diluted net income per share was 2.46 compared with 1.12 in the second quarter of 2024. Basic and diluted net income per ADS was 9.84 compared with 4.48 in the second quarter of 2024. We ended this quarter with $316.2 million in cash and cash equivalents compared with $190.3 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 questions. Operator, please proceed.

Thank you. If you'd like to ask a question, please press Star 1-1. If your question has been answered and you'd like to remove yourself from the queue, please press Star 1-1 again. One moment for questions. And our first question comes from Ronghua with Genua Asset. Your line is open.

Hello, Manager. I'm Huarou, an analyst from Genua Asset. I have two questions for you, Manager. The first question is, the company's loan integration business has maintained a high-speed growth. How do you assess the impact of the new rules on business in the near future? Hi, management. I have two questions. The first one is companies' loan facilitation business has sustained high growth. How does management view the impact of the new regulations on business going forward? And my second question is what are management's plans around shareholders' returns? Thank you.

Hello, Ms. Huarong. I am Xu Yifang. I will answer the first question, which is about the impact of the company's business and housing in Xinhui. I will answer the second question, which is about shareholder feedback. I will pass the microphone to Mr. Fan Chunlin and Ms. Fan. In terms of the performance of our project this time, it still represents a fast-growing trend. We also confirmed that digitalization in the business field is a long-term commitment and a long-term strategy. Based on the two core bases of data and AI, we will continue to refine our operating capabilities to complement our partner private financial institutions. to pursue long-term quality growth.

Hi, Ms. Farong. Thank you for your question. So we sustained high growth this quarter, and this proves our consistent investing and focus in the digitalization and credit technology of our company. And in the future, we'll continue to focus on enhancing operational capabilities through data and AI empowerment to enable financial institutions with our expertise to pursue long-term and quality growth.

谈到这个住宅的新规,其实它具体是如何落地的话,我们还需要等待到第四个季度才能够表明了。 Speaking of the new regulation,

The specific implementation will probably become more clear in the fourth quarter. At the present, not only for us, but for the entire industry, licensed financial institutions seem to be adopting a more cautious approach to funding supply. And of course, the decision of which platforms to cooperate with, they're also being made with greater consideration.

Regarding the requirements for the agency to cooperate in the direction of 103, President Yan has already mentioned that we are actively ensuring that this requirement has no impact on our current integrated business. However, in terms of the specific business model, we have developed a multi-faceted proposal and product plan from multiple perspectives. In terms of the whitelist of institutional partners, earlier Mr. Yan referenced it, but we're proactively ensuring that these requirements don't impact our existing loan facilitation business.

On the business model side, we're actively preparing multiple contingency and product plans so that in the next couple of months we can quickly respond to product model requirements of our institutional partners related to the new regulation.

The focus of our company's operation is on modern business technology capabilities, data capabilities, and operation capabilities. Because no matter where the product model is developed, these core capabilities are the core competitiveness of our collaboration with other financial institutions to continue to contribute to the digitalized modern business. We also believe that with the new rules and regulations, I hope that these changes will promote the long-term health development of the industry and ensure that the growth of the entire scale is more efficient, competitive, fair and healthy. For us, the participants who are deeply rooted in this industry, we see it as a positive signal.

So the company's operational and management focus will continue to be on strengthening our capabilities in credit technology, data, risk management, and operations. Really, regardless of how the product and cooperation models evolve under the new regulations, these capabilities are our core competitive advantages in the loan facilitation and credit tech industry. And that's what really makes us appealing to our partners. As the new regulations become clearer and fully implemented, we expect this to drive a long-term, healthy industry development and growth, and ensuring that fair, healthy competition. So for long-standing, established players like us in the industry, this is a positive signal.

I would like to ask Mr. Fan to continue to answer your second question about the stock market.

For the second question, Mr. Fan will answer your question.

Thank you, Mr. Fan. For dividends, Mr. Yan touched upon it earlier.

The company will maintain an annual dividend policy with the total amount being approximately 30% of the previous year's net income after tax. In July of this year, the company distributed a cash dividend of 0.8 U.S. dollars per ADS, representing a 60% increase compared to last year's 0.5 U.S.

dollars per ADS.

At the recent board meeting in August, an additional $50 million was approved for the shared repurchase plan, bringing the total authorized repurchase amount to $80 million. As of August 2025, the total repurchase amount is approximately $30.4 million.

To summarize,

As always, we will continue to share the results of the company's development with our shareholders and seek to provide excellent returns to our investors. Thank you, Ms. Morrow.

Thank you. Our next question comes from Yu-Hsuan Chen with HCSC. Your line is open.

Hello, Mr. Guan. Thank you for the opportunity to ask me a question. I am Chen Yuxuan from Huatai Securities. I have two questions to ask. The first question is that we observed that the profit performance of the company in the past two seasons is significantly improving. Under the new rules, I would like to ask Mr. Guan how to look at the future profit and loss trend. This is the first question. The second question is that we observed that the risk performance of the company in the second season is continuously improving. I would like to ask what the main driving factor behind it is. Currently, OK, let me do the translation. Hello, management. Thanks for giving me this opportunity. I'm Chen Yuxuan from Huatai Securities. I have two questions. The first one, we noticed the company's profitability has improved over the past two quarters. In light of new regulations, what is your outlook for profit margin going forward? And the second one is, we have observed continued improvement in risk performance this quarter. What are the key drivers behind this, and how has the risk performance trended so far in the third quarter? Also, some funding partners have become more cautious in lending, resulting in tighter market liquidity. Could this create volatility in asset quality? And what measures has measurement taken in response? That's all. Thanks.

Okay. Lv Xuanyuan, thank you for your question. I, Fan Chenglin, will answer your first question about interest rate. Then, Mr. Xu from Yifang will answer the second question about asset value. In the Q2 of 2025, the net profit of Non-GAAP reached 7.38 billion yuan, which exceeded the 6.6 to 7.3 billion yuan of net profit in the first quarter. The net profit is also 5.19 billion yuan, which is 117.8% of the net profit. The net profit rate of the second quarter reached 27.5%, Thank you, Yusheng, for your question.

I will answer the first question, and Ms. Xu will answer the second question. In Q2 2025, the company's non-GAAP income from operations reached RMB 738 million, really exceeding our guidance range of RMB 660 million to 730 million. Previously given and the net income reached 519 million, a year-on-year increase of 117.8%. The net income margin stood at 27.5%, significantly up from 16.1% in the same period last year. The strong profit margin performance over the past two quarters can be attributed to the following key factors.

First, there's a significant increase in the company's loan facilitation volume.

In Q2 of 2025, the loan facilitation volume reached RMB 37.1 billion, a year-on-year increase of almost 55%, marking a new record since the company's listing. So the economy to scale has really helped improve the profit margin.

第二个原因是我们的营收的结构持续在优化。 这一点我们跟投资人其实最近几个季度一直在讲, 就是我们初核服务收入的高质量增长和单保服务收入的占比显著下降, 是有效的优化了我们的利润率指标的。 With the same rapid growth of our Q2 mixed transaction volume, our Q2 mixed service revenue has reached 16.09 billion, which is nearly 70% of the same growth. So from the contribution of revenue, the mixed service revenue accounts for 64% of Q2 in 2024, which has increased to 85% in Q2 in 2025. In contrast, the relatively low profitability of insurance service-related revenue accounts for a total revenue of 24% of Q2 in 2024, The second factor is the continued optimization of the company's revenue mix.

This is a key point we have consistently emphasized to our investors. The high quality growth in the loan facilitation service revenue and the significant reduction in the proportion of guaranteed service revenue we have effectively optimized our profit margin. With the rapid year-on-year growth in facilitation transaction volume in Q2, the company's facilitation service revenue reached RMB 1.609 billion, about a 70% increase compared to the previous year. In terms of revenue contribution, facilitation service revenue's share of the total revenue increased from 64% in Q2 last year to 85% in Q2 this year. Correspondingly, the proportion of lower margin guarantee-related service revenue decreased from about 29% in Q2 2024 to less than 7% in Q2 2025. The continued optimization of the revenue mix has significantly improved the company's profit margin.

The third reason is our continued strategic investment in AI technology and research. Third, the company's continued strategic investment in AI technology and R&D have led to significant improvement in operational efficiency.

Our ongoing investment, combined with the implementation of AI applications across various operational processes, has really made a solid foundation for sustaining improvements in operational efficiency for Q2 and over the long term.

As Mr. Xu just mentioned, in the short term, the new rules need to be adjusted in terms of product models, cooperation methods, and so on. But in the long term, it will be beneficial to the entire industry, more healthy, more harmonious, and more sustainable development. With the new rules, we will definitely further prevent our long-term development advantages. Considering the relevant details of the new rules, there is a need for further clarification. As I said, the fall will be in the fourth quarter. So, according to the principles of God's victory, we will give our Q3 exchange rate of RMB320 to RMB340 billion, and then the Q3's non-common interest rate of RMB4.9 to RMB5.6 billion. We maintain the exchange rate of RMB1370 to RMB1420 billion throughout the year.

The implementation of the new regulations, as Mr. Xu mentioned earlier, in the short term will require institutions to adjust their pricing strategies and cooperation models. However, in the long term, these regulations will benefit the entire industry. by fostering healthier, more compliant, and more sustainable development. As the new regulations become implemented, Chiang will further strengthen our long-term advantages. Given the details of the new facilitation regulations are yet to be clarified, we're taking a prudent approach in providing the Q3 loan facilitation volume guidance of RMB 32 to 34 billion. For Q3, the non-GAAP income from operation guidance is RMB 490 million to RMB 516 million. For the full year, we're keeping our guidance the same, RMB 137 billion to 142 billion for the loan facilitation volume.

This is my answer to the first question. The second question is for Mr. Xu.

That's my answer for the first question. And the second question, I'll turn it over to Ms.

Xu. Thank you, Mr. Ban. The second part of the question is about risk indicators and the direction of risk in the entire market and relative response. I will talk about it together. Indeed, in this quarter, the risk indicators we see have continued to optimize. On the one hand, this comes from our continuous investment in data and model direction, the change of characteristics in the risk cycle at the moment, the change and trend of automatic monitoring leading indicators, and the rapid response to the strategic framework

Yeah, the second question, all the questions are related to risk performance. So this quarter, the risk performance has continued to improve for us, mainly due to several factors. First, the ongoing investment in risk data and models, focusing on the changes in characteristics during risk cycle, automating the monitoring of leading risk indicators and trends, and quickly responding with corresponding risk strategy and framework and solutions.

另外一个方向其实是数字和量化上的一个公式的变化, 因为我们整个的规模还是在增长的, 因而从分母的效应上来讲的话, 我们也会看到整个的风险的一个持续的优化。

The second reason is that the denominator, our long volume has continued to increase at a fast speed. So that's another contributing factor.

第三个方向的话其实是在技术层面的。 That is to say, our investment in the risk research of the pre-COVID-19 has continued to grow. In fact, since the first quarter of this year, we have begun to conduct research and chain work on sensitive customers. It is predicted that under the new conditions, the capital supply will be more efficient, and we can't avoid the short-term adjustment and fluctuation in the big market. The third reason is technological.

We've increased our investment in forward-looking research on risk cycles. So beginning at the end of Q1 and First, the earlier part of Q2 of this year, we've already began the research and quantification on sensitive borrower segments. We anticipate that in the context of cautious funding supply, there will be short-term adjustments and fluctuations are inevitable, especially among the cyclical sensitive borrowers and those with tail-end pricing. So as liquidity decreases, the performance for these borrowers is expected to decline.

In our mass customers, we take the initiative to manage the opening and closing of the relevant customer groups to become a master of risk management. In addition, in the direction of new customers, we will take the initiative to pay attention to to adjust the scale and structure of the entire supply and demand channel from this point of view. In the entire supply and demand cycle, we need to continue to maintain this focus and update the supply and demand of customers. For the repeat borrowers, we're proactively managing the exposure and transaction criteria.

For new borrowers, what we're doing is we're focusing on the concentration. of sensitive borrower segments within the acquisition channels and adjusting the scale, proportion, and volume and structure of these channels. So throughout this credit cycle, we will continue to monitor and research the customer segment characteristics and enhancing the differentiated credit and operational strategies for our top tier, high quality borrowers to ensure the healthy development of our overall risk profile in the broader context of the industry environment.

That's my answer for the risk indicators and risk performance.

Thank you.

Thank you. Seeing no more questions, I'll 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.