Q3 2020 Lexinfintech Holdings Ltd Earnings Call

[music], ladies and gentlemen, thank you for standing by and welcome to the listing syntax the.

The quarter to tell the 20 earnings conference call at.

At this time all participants are in the listen only mode. I must advise you that this conference is being recorded today and the like the hand, the confidence of it to your first speaker today, Miss the Tony home Senior director of capital markets. Thank you M. Please go ahead Sir.

Thank you operator, Hello, everyone and welcome to loosening start quarter from 20 earnings Conference call. The Companys results were issued earlier today and I'll post the a lot of joining me today on the call I missed the day show or founder Chairman and Chief Executive Officer, Mr., Craig Zone of our Chief Financial Officer. This the right and the real our chief risk Officer Mr. families of.

Our senior financial director of I remember some of our team for today's agenda of Mr., Joe will provide an overview of our recent performance and highlights the Susan will discuss our financial results and the surveil will discuss our credit performance.

Before we continue I refer you to our safe Harbor statement of the earnings press release, which applies to this call as we will make forward looking statements also please note that this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains the reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

Finally, please note that unless otherwise stated all figures mentioned during this conference call are living the I will now turn the call over to our CEO, Mr. Shao, whom I will translate for.

The dog.

Because of the cost of our debt for the lease it will go up before the end of the Delta.

Faces in the second goal to the pension quite a few of data. Thank.

Thank you everyone I'm pleased to announce that we once again reported strong growth and I'm pleased to say that our new growth is higher quality lighter and more agile.

As usual, we'll institute of bodies and healthy.

Over the hill remote Toby profit does on the reduces the other.

On the million weighted.

With regard to growth was over $40000 of you guys have.

So the federal the continued headwinds of tools.

So that will listen I was into the decline if you will sort of on the site for reasons of it.

So the size of multi duty of value. She usage any the will you in the third quarter. We continued to pursue our new consumption of strategy and our total registered users increased by 69.6%, reaching $106 million. Our active users reached $7.4 million an increase of 21.3% this growth in April.

The us to achieve $48.2 billion in new loan originations an increase of 30.6% when revenues of 3.2 billion gross profit of $978 million and EBIT of 499 million.

The until on the 400 value will then the cities of fuel total vehicle. The true you who will share looking at sequential photos on some of the whole given to them. So.

So the talent both in the bulk of the could you tell that also that the levels of job looking for growth usual with multiple if you will on goes out of the Union, who pays told the other two core suitable target by means of I mean, the could you the any.

The more important goal for change is in the continued improvement of the quality of our revenues currently running has already shifting rapidly from an asset or capital heavy risk bearing the guarantee both of those Asian model into a technology two of the non risk bearing loan facilitation model under this model of pushing the utilizes advanced technology the service and the.

April financial institutions to increase the operational efficiency and listings technology services can accomplish the customer acquisition internal systems build out and operations management of our partners.

This is essentially the lucent content growth.

If you could you sort of with other assets either side of unit.

The total Eagle thoughts on insensitive diesel will focus will be could you sort of doing is free 40000 per lead with inventory of result on headwind could you will most of the Bulls on Sunday caught up with the system.

Canyon fuel will soon to unite all of that the BDC move out of the little federal most of that fuel the growth in our hosted 4 million per year for the the yields of the suite.

So yes, we're growth LTC was okay.

I would get ICA sort of with the growth of the you will also have been the content spend on Hogan and agenda.

As of April of listening third quarter platform and technology revenues to reach $1.13 billion, representing 36% of total revenues of.

Which are ridiculous to be technology revenues were 614 million, which increased the 159% year on year within new transactions. The risks listed pure technology portions of which 40% and since October has already surpassed 50% under this model of financial institutions, where the risk.

Enabling us to generate higher quality profit the more combined with the direction of regulators and regulations and in the long term, enabling to develop a lighter of more agile and more nimble model, providing greater room for growth.

Content sharply in the issue new against the rating isn't on the in Q2 in the <unk>, which is the the way into the levels also through the channel will engine to the view towards who will use the mix of Douglas quality issues to help the them and from the 2000 should the is the top licenses. So few of US simple the and could you the total sales of insulin.

And on has been the number one driver for China's economy for the past six years now, becoming both in Maine, and the reality the Chinese economy stabilizer and anchor at the same time as China's per capita GDP cash as the milestone of 10000 US dollars per capita increasing domestic demand and promoting consumption will continue to offer tremendous potential.

And represents one of the most vital and core components to the government's rapidly developing new dual circulation strategy.

With that flow modality, the hint of any tighter control of the pencil who view towards our two on the yield.

Couple of year deal, Okay. The two debt since.

Thank you know for me identify the him on the timing of production than the kind.

Hi of on the hedge operating we'll muddle, our profit, which I noted on the services on debt at achieved without the same topic tangible goods on focusing on taking growth will touch on anything that do not forget woman day, each intelligence of the in Shenyang intent of essentially by the items Bubba new at the on Bell one sales as a toll messaging.

In the future, we will continue to explore opportunities with our new consumption strategy and establish multiple new products and businesses. Although card membership program is already seeing initial results and we have the at least on new venture App, creating a system that covers all consumption scenarios and providing a more open new consumption platform, we will endeavor the capture the opportune.

That is provided by the world's largest consumption market focusing on products and services that is centered on new consumption opening greater room for growth we're fully for the in in our ability to achieve the 170 280 billion loan origination guidance that we set out before the call the 19 pandemic.

Cmos are going to Apple as the look into the way Youre on Eagle Ford Our full time on this is all of Europe would achieve whether you will the sort of on that the with senior albeit from Sidoti jump on the become I think we'll know swinging into nature of it choose the CFO piece will other than to go on the heavy here, we'll Miss you on your current on the engine and the timing TGR one.

Well, the the but in the engineers googles and the hinder compared the yet from that religion tells you to 18 years since relative to hold on to Sophie good weather condition.

And other some of which I'd also like to report to everyone is that as an internet platform with over 100 million registered users on our ability to our users and the hopes and aspirations are always our highest priority in August on Sheila initiated a new on comprehensive brand upwards campaign, adjusting our brand to the consumption.

Changes of our young customers and promoting our most value of Dude merging income hall or just ride. This just perfect brand. We aim to use our knowledge of our young customers product preferences and desires to accompany and grow with them our millions of millions of young customers. Our new branding reflects lessons long term focus as.

Strains of the damage around our brand and has received recognition and interest from various parts of society.

Jason.

Well the on the CFO privatized sales our government in safety to the totals.

Next I'd like to invite our credit the CFO, our CFO credit to discuss our recent financial performance. Thank.

Thank you Jay on the Hello, everyone I'm pleased to announce on the we have once again delivered strong results in the interest of time I will now go over the line item by line item of our financials for a more detailed discussion of our third quarter results. Please refer to our earnings press release total.

Total operating revenue reached RMB $3.2 billion in the quarter on the credits or enter the service income reached RMB 2.0 building platform based bonus income reached RMB $614 million, representing the increase of 159% from the sort of quarter of 2019.

[music].

The adjusted net income was on the 443 million.

Fully diluted adjusted net income for the quarter per EPS was RMB 2.15.

On our operating leverage operating expense as a percentage of average loan balance was 3.5 cents for the quarter and now out of the type advertising marketing and advertising Gionee and R&D, 1.8% 1.4 percentage, 0.6% and the 0.7 cents on average loan balance growth.

Excellent.

We currently have 100, and a 6 million registered users on our customers with credit line ratio of $25.2 million up price 51 cents per September 32019, we.

We acquired a nearly 1.7 million new active customers in the third quarter.

For the quarter, our average of 10 I was 11.4 months, our nominal EBITDA was 15%.

The ongoing cost of 19 outbreak has brought the and the continued to bring many challenges and the uncertainty to our business, but we believe that with the continued requirement.

Our efforts of our team we will of steel.

The able to achieve our initial data its guidance of RMB of 170 $280 billion in the low on the nation for the year.

Next line, we will discuss our credit situation run piece and the quick.

We continued our theme of credit formats in these costs.

In spite of challenge conditions in the market our credit quality continues to be high on the meat expected levels.

And recorded the spread our credit that debt to continue to perform well and at the expected levels.

Our net take day Pocketing Clinton ratio declined the from the second quarter to 2.6% in the third quarter.

Let me continue to stay stable improving credit quality as our lifetime target ratios has the bar.

This is consistent with our previous statement on the fall within our range of expectations on.

The weak point spread our credit performance from the papers of continuing to improve orders for the end the awful plenty of time and being dependent on anyway.

The that I conclude our prepared remarks operator. Please proceed with the questions and on cash.

Thank you ladies and gentlemen, we will now begin the question and answer session if.

If you wish to ask the question now please press star one on your telephone and wait for your name to be announced.

If you wish accounts the your request. Please press the pound hash key please ask the question in Chinese if you can and then kindly repeat the question in English once again.

Now one of questions.

Your first question comes from the line of Jackie to on from China Renaissance. Please ask your question.

Equinix on lunch on hop to the from a security when the two question on today on Sunderland key challenge selling channel.

The Latino should continue on the cheek guidance, the Ci Mimi of the Chicos, while no fundamental growth.

Research and the energy the molding the growth guidance on.

The two should continue on women terms you achieve the sequence of John have shook out new the top of the year.

On the two sounds you challenge how much into the media, you've known Chico Suji growth.

Some of them in the growth.

No the gangland Pinochet going the true now.

Chicken the money from this outside of switching the actually the trajectory on the you see to shoot on backwards you touched on the you two new we show new each GTN Chicos 10.

You will see from.

The vintage trigger to share.

Hopefully you shoot the whole the Chicos right back on the decent Latino to Chicago, you Jim Glass no. She could you know you see the England Jake.

Sure sure.

No Crinone Chico Chico's on our cash Chico usage between what the tissue cannot she line should.

The feedback the coupon on to the leverage on bulk of due to the actually quite a few of the timberland shoes on ships of then too on the.

Some details on its own sites in what GPS and share.

You mean, he sounds ship hold some kind of the growth to ship.

Thanks management for taking the questions I have three questions number one is about where loan volume guidance and.

The channel on next year, So I free observed on our loan growth is better than most peers. So what is our outlook for next year.

And the second question on spots on our asset quality.

Okay and management of share with us.

Some color about the short term on delinquency rates.

Next on rates.

And the vintage laws for the for the new loans originated in the first nine months this year.

And the right back on the provision we can expect.

In the in the coming months on hold.

Yes.

Lastly spot the regulation.

We saw the new stuff the overall share.

And a full reconciliation of these two on the Fintech giant to the leverage and on the Mark How's the concern about the upcoming tightening on the non where we should make us on its own.

The on presentation models. So do we have some color on the regulatory trend that would be from thank you.

The other you go into on everybody, though.

So we'll continue to do that as the you guys the Canadian which is when sales.

So you'll see the king of the global growth over the last or had the you'll be outside of the lenders. The women will be on the so the answer the junior and well within the two to the credit support so the intention to legal bill so the each into the color is the use of the digital will end the year within the sort of the fit on the other killed the types of woman, citing the yolks the shop.

By the I'm a woman the other here well into the the it's sort of the lower the world with the it will mean guidance on the goal, which is often the with the this a variety of that's also the use of the the delta with the Hill the.

The the door in day, you heard of hotel you got this issue the over the.

The other telomere Phil on media will make out of the sort to go live of the difficulties that youve nailed short on time or low, but kind of I kind of media in the reservoir has the way it was for the way I go into the door growth and greatly changed a little bit of secure the cause of so the good are you guys, helping the thats the issue the sort of way look well middle of kind of the.

Of the either the the USA.

The growth over the the Oakley doses in the US the rules of the fit OPI that sort of the hard work through the old woman Trunnions from either the go to you the.

So lets centered on kind of what you're looking at the quality that and got the you. Good thought of funding ticket value of the other one deal. So I felt base, which of the force or no one of the with a focus on.

Hello, Bill the telecom. So we'll then take the linear has about the you've got the other one day you good relative to the.

You go to sort of the.

You might see each of us with the elements of the Hill may was actually the sort of adult with what I will the equity and we're going to other total profit assets. So Jay of.

One of the answer the first question.

First of all the guidance on so as mentioned the we certainly look forward to accomplishing the guidance. This year that's been the quite challenging given that we actually gave the guidance originally billings the other.

On that was not only pre covert but also at the time when we were growing on the basket and clearly if you can see from the year result, the first quarter, we like many others were impacted and it was in the quite challenging in the second half a day, we adjusted and do the things efforts on hard work.

We now feel very very strongly and confident that we can achieve our guidance for this year. The singles day for this year was also a particularly good and when we looked at the fourth quarter EPS.

Looks like it may be possible that when you once again create a new high when it comes to our loan originations now on next year overall, we believe that the things that should continue to be good and overall not surprisingly things are improving obviously galvanizing situation is coming.

On the controller gradually over time, and especially in China consumption in China continues to be strong and recover and in fact as I mentioned the although the earlier this now.

The singles day. This year is better than last year. Overall, so we can really see the strength in the consumption. So the next year or the overall economy is better there's no reason why things of that shouldn't be better and the plus the in addition, it should be noted on the asset quality continues to improve so.

Thats. The case, then obviously some of we believe that next year should be a pretty good.

And obviously when we have something more precise will.

We'll be sure to communicate to everyone about our expectations for next year.

Okay. Thank god willing.

So you could see two of what went into the Ecoson intensity on today, so true that the at home.

From the gym, Dennis was on the NK kind of new of sort of Scone.

Make the F. PTC.

Ken the silly four minutes from audience. Our he can jump on you get bar sales what standard I saw you will subside.

So the rig of 15.

Hope and good the eco fleet on each of us on the sort of the.

The good each from the free forklift and good the eco eco LPG from US when you guys say assortment that goes through a bucket because of the Greek of with any thoughts on it.

Because of the holiday season, and the M E. The good news on the standard dose on that and the art studio keys in the back.

He by Boston, you sound the spike on the facility the obviously of the truck.

And the constant good that the beat each of those on a kind of flat.

What kind of thoughts the image the kind of sense its operating profit getting Quincy doesn't go take of the total.

The kind of our incentives would of and good day. It seems that does have the good thoughts on that.

The GP are simple youre buying patterns as value based on the density is good the guidance.

Hello, and good the eco assumed in the Eagle becomes available on base on the as of the high so sales messaging and we'll get a day. She the sentence credit is the of the density of great Dol Dominion thing good the eco system at the age the equity can kind of sense.

So I think with regards to your question on the asset quality trends. This.

This quarter of things overall continues to improve and for example, the SPD seven the decline from about 2.3 to 3.2 plus.

In General every single bucket of statistics that line will look at looks better. The M is better by 5% collections are better vintages. The 30 day delinquency in the third quarter is now better by 30% and generally speaking the third quarter, the new loan originations of the asset quality of looks good.

And we see this trend continue and continuing to exhibit itself. The next year not a lot of the quality performance won't show up until the next year's results, but we certainly see this trend continuing or just the other one crashing the equity Kevin is improving from 2.3 to 1.8.

Of these.

On when the agent.

For the.

Thank you on relative.

The gene will notice period, such as the.

Okay, Malaysia sales.

Well, let me answer the other day one test.

Thank you had to move away from us to the high end of other.

The team told us on Luca go the other two to say the higher salaries and related per Yodlee force for uses of course, you will fill of other you've seen Doug but that will be the of Canadian of course is timolol could these days total growth of the topic, a little higher the with the LTE shipping. It. So those other sort of culture, we're going to say goodbye to the other courses.

On the Delaware.

Thank you relative I think she is eager eager kiva if the.

Well they have conducted of how has it on sort of the ego victory doses of gold in the in the one dollar because of put on new Oriental itself on the here will you put all that so this is joe hitting in the end up relative to the go to the.

Fit into that of a lot of that EPS fit as of today doesnt relative to the ability of we'll Miss you. The you able to union the old heavily into that's the element of others other than the the you'll be them the impact of the either better or by.

On the use of it up.

So most of the other to the end of a disappointment equity EBIT of other than kind of the current new area of life and annuity working on.

Hey of quick enough so recovery of sort of his article the other areas of the game or some of your shelf.

So with all the other interesting to that as is the when this was one of the lessons into the year, we'll mill has on the equity.

Yeah. So I think everybody has heard the various voices on different opinions on the subject of what the regulators are the same with regards to up the third question Jackie but overall on I think at the end of the day, what the regulators and the government wants to do is to continue to from.

Most of the healthy regulator growth of the industry and I think the regulators on the government as a whole also of very clearly on has spoken out clearly on recognizing the technology contributions of that have been made to the sector and the improvements have been made by companies such as ourselves.

What the regulators also seeking is to pursue a fair market for everyone and for everyone who's in the similar businesses to be treated equally cap. The someone who is doing something very equivalent to another entity and somehow they get the special treatment.

While we see very clearly and I think many people recognize this that the new policies as the whole hub very very limited impact on us our use of micro loan license that's less than 1%.

Whatever the regulation is or has been about the ABS et cetera that also has the limited impact so really we don't see much impact to us.

Regulatory from.

The play into that is it on most of the what's entry into the that in the end of physical a fire hose everybody kind of on and yet you didn't change either it is on to that it will also in the towards the more you are in that total solution that you sort of by the tool with the good assignable sort of coal the yield losses on the kind of the Simeon utilities. The two were utilized we line.

On the way like other than the use of 10 watts per hour, but I couldn't Jeff because I get how money from the type of Alibaba woman glassware and good the you Gov tofu.

Total total total control Dunbar relative to that most of those I tell a tremendous or chips on the or could you double that Melissa. So now we're moving to the most of the so you'll see on T. go through the rest of mental momentum picking on cohort income cocoa. The tubular sales. It did you say to cope with the type of whole taking it in the flow.

Over the two again so to the so you got into the Eagle Ford.

There's other system wasn't on how we use the current Jeff we'll go where the again one of the auto first of all the other ways you could listen well into the north of the builder So the way line.

The forgotten what the photo fill of visa lets you sort of will they tend to adjusted by David and good day.

Well I think what I'm going to look at kind of relative to the use of the it's helping the show volume is a two way as the quarter either stingy on their kind of tail bypasses the shopping channel both growth and whether it's obviously made the to go on tinder, yeah. So the phone pilot component of value you interest on rental can go the you're gonna kill the day to day, one with value for the.

Now when I say.

Thank you good job all kinda you got to tell you the hugoton vessels on Echo Thats all accounts of the year with other sealy sales of ideal weather was other ways. There's other you're looking towards the goodwill holiday relative.

I will miss the yield few weighted and go through it to door the and I will look of then talk about uses for cash so if the.

Thank you I kind of well mandates and that are where the deal, but I sort of be don't know value.

So on the whole loan facilitation of motto as the Jackie I think you're probably aware and you certainly have not.

A bit on the CBR see earning earlier this year, the clearly establish who does what and what the rules on on the lump of innovation model. So this isnt, where we established as we have been doing everything to be fully of combined with the firmly established rules and regulation and this is why we are pursuing.

On the accurately the profit sharing model, which utilizes our technology and the asset light to fully compliant with the goals of the regulators and the businesses. The financial institutions were of course, the pace on the risk as the regulators have wanted and indicated in the past and we.

We'll receive a pure service fee for the service that we provide and how picking the right clients for the financial institutions and this is clearly more compliant with all the regulatory direction and goals that people have the following for quite a long time actually now and this is in addition to consider.

The what the government's go on the internal circulation part of the dual circulation strategy of promoting the consumption and we can't even see actually some of the recent announcement that you do see the potential loosening of various leverage and constraints. So in this environment, we're becoming actually more and more.

Combined with the regulatory direction and we believe that based on the current situation in a third of market machine is going to have many many opportunities and we're even going on out opportunities of potentially produce certain things that we couldn't do of before the end the stereo market. So overall, we're actually quite.

I wouldn't go.

The election of the regulatory environment and the opportunities that sort of potentially offers.

And I see the J.C. Penney Tom.

Your next question comes from the line of Ethan Wong from C.L. assay. Please ask the question.

So you're right on with revenue down when do you guys, who share our doing it sounds like one of the true, though on kind of the hunt shareholder true should essentially the warmer conjugal vision of wired downhole warmer new on provisions we do grow the mortgage mentioned on Mount how should be so much. The two years your assumptions for share on when John.

New users from our true four months, how should we read the Josh Schimmer.

Four or five or how should she has anything new on tragic of free initial orders here on other income the menu issue on interest investment for growth.

Chip just north of superior user, but for lunch on once the retirement of here guarantee liabilities from Mexico Fair value do you feel are just with the going on with the younger ones, you're one of you to quit on.

Anyway, I came back from Boise current youre seeing on whole warm on year card to launching the switchover Tonight.

Just on your Wonder woman easier current veterans from along some of his current choice reliever essentially 100, essentially with the retailers I should say on harder.

How much of which usually is one Josh on your assumptions based on.

On wings up on your friends charge of pay horse on debt to pay hotelier.

What are your end users she's from now.

Our current what you're dead on with the.

I have two questions on.

The first is that sort of.

Question on asset quality on so, although we're seeing improved asset quality trends. However, if with the bard provision by the loan origination are there still are uptick from the last quarter. So just wondering on what is the reason behind on.

And there are also some investment related loss on other income on the does that also related to ask a question on I just wonder debt some more color on on that.

And my second question is on the take rates on so if we divide by on the service revenue from acquired.

All right fair on launch emission amongst our current ratio actually also comes from our base.

Patrick last quarter on so just wondering.

What is the.

What is the driving force behind on the rent when the interest rate is going lower and where we are transferring transition on true patronize model yes.

Thank you.

Nick Clegg equal of the Nic of publishing.

Well misunderstood you conduct the consumer finance suites and the the publishing came way in the U.S and good the to each other and essentially in credit is sort of tested to put the equity growth.

Well in home as new Internet the amounts of data.

Yes, the improving a bit from the Eagle.

People can be Washington debt and of course, if people were shipping will yield on the police.

Cecil machine to machine affects the statistic so that the.

It's on the uptake that simple it wasn't warm of kind of consumer interest to the other than the 14. Thanks.

The better that's the yield it's really on the table.

On the kind of the core we get on the call them I simply predictions on force EBITDA digital which has kind of right.

Yes, so I think on the asset quality in terms of the assets.

Standing situation, if you will I.

I think we're going on we have to take a conservative approach given the the covenants in the situation and other factors on still on impacting the economy. So off of some of these numbers, we may need to be a little bit more conservative on provisions I think you also have to the divide that between the new and old and clearly.

The new it's getting better and we can see the trends we can see this happening well for some of the old client the has to be as mentioned the little bit more conservative about some of these things.

So hence the do have actually a few of different things going on that's not necessarily a reflection of.

Just on the new a positive trend.

I mean grainy dalvance digital triggered the room and continued our maturities on the meal by my son's growth the magenta on the Judaism of swine leveraging on the line you'll hear share growth should not in the usual from Yahoo Holdings on the community the on Nucleo, Jake just a day.

The new answering the way the middle and high on the two years ago, but on the of ownership.

With the leading from the onshore the short how each of which is right. So the JV partner on the site.

On the need to fund.

Just on T., the true kind charters on units.

On the larger growth from get non negatives on people on to ensure the money into the 20 financial income.

Other decline on the woman Yoigo, who disease on EMEA onto on extremely warm in the jewelry and the proven Jake.

The current nanometer on.

Usually from year to date growth.

On July so you do the.

200 as usual.

And so I think first let me touch on the other income.

Using the staffers as Greg just mentioned the bank I wouldn't that there's a few things are not the least of which is a capex on loss the.

Sort of we do have a U.S. dollar CB et cetera, and we did see the improvement in the value of the of the movie. So you have the things like that going on on the second question day had on the take rate well, it's definitely not that simple we definitely can't make that types of simple calculations.

Bruce on future items increase on past items on line up there certainly I can't do that just the current or the future rather the combination of different billings by part of the under the.

New accounting standard the again needs to be run the offers.

So there's three of different things going on there and the it may be worthwhile for us to how the more detailed the offline discussions on the calculations in the future.

How much of the most young from quite aren't doing the charger share not only from during the time on sort of pick which I will elaborate on we'll share.

On your memory scourge of growth true.

Towards the end user on.

Yes sure of it the Woman's your Brunswick, New Jersey residents.

Thinking of translate for US Thanks sure sure sure. It's just our credit for it up on took rate on so just wondering if management consumer from more color on guidance on the future trend of for free rent.

Yeah, we will we didn't give any guidance on the on the.

Take rates trend of basically.

Quite of it's the rhetoric with resin relatively stable.

On the from different models that Ico, we have this.

The profit sharing model, we have the this direct lending models on the rental rates quite stable, but.

The into the mix.

Changing.

Okay that of Georgia, you don't need.

Sure sure when the tone, we're going to break it down into the tree info on the JV interest.

I think relative to our shop and keeping on edge on the on that has only IPO within the literature that mortgage on functions on the euro on its in that adjusted.

For more share how on this in the energy.

To them on travelers on what's on T., the take rate hikes or some of.

You bet that the engine relative.

Relative from.

From the coach from months, we decided on.

Put on the bureau of around.

We did actually the team.

Pardon consumer.

The map.

Thank you.

Your next question comes from the line of Sanjay Gen from at least your capital. Please ask the question.

Thank you management for your presentation.

A few questions.

Let me start with a follow up on the profit sharing model.

Asked on my calculation Youre decrease in profit sharing of the Phoebe seems to have fallen on.

From 7.8% in the fourth quarter of last year.

6.8 in the second quarter and the for the the 6.5 in the current quarter.

I mean, I know your numbers internally could be different from.

On what I'm trying to estimate but he can you confirm that the the fee income for sharing is down by 100 plus basis points compared to the fourth quarter and is this because.

This is the purpose of the profit sharing model that the losses for banks have gone up so the passing on those losses to you index why Youre see has fallen.

Okay standard.

Oh on transported on Sarnia, yes. Please.

Like the Tony I'm curious on.

The one of the Guy on the the goodness fumbled on what's in their comments on the aggregate of aluminum on sort of the the take rate net that's one of the true.

This is either on a sort of.

Oh, yes, we do the split about the foundry the winner assigned to the other so then the other okay.

The the settlement of them into the the so we could not because of the sort of scenario on the shop.

Shop on the whole new after the sort of the inks in America and the other goodness of the level cycling and value.

I said on the mortgage and quick two of them. It doesn't the anyway that your share naslund sooner. So you gave the income absolutely.

Sure.

Also in the Eagle settlement through more true shops will measurable results from dump. The Infogenesis. Please take the you got a one moving or you take of your new thought through the credit deals from Alabama, the our goal.

The other one is just on within the us on or something mail channel. The Fujitsu on real true kind of the throughput central element that the tools or the RFP do core true JV on revenue on for you on the third floor should the laundry nation of other pay price back cash of but from our thoughts on Jim Jim Fleet.

We would show our cash would be relevant in the.

We'll now since outpaced revenue three Sir you may home growth, which of the larger investment portfolio you got a little doubt CJ on the EUV terms, you turn the call take care of from the bridge from flow.

Now.

Okay.

So on a standard that was on the Stanley, saying that well on our profit sharing model.

Listen our take on additional risks to us I mean, we don't have to.

You have something to the banks or the financial institutions.

It doesn't get the that high so in other there isn't that mechanism going on at least under our profit sharing model.

Now with regards to the profit sharing numbers on it.

May be worthwhile for us to touch base offline to try to tie all the numbers of together.

Stanley doesn't have the fourth quarter calculation from last year at the MB, but based on what I can see from earlier this year. It was much more of like between the.

3.2 to 3.4 per side. So it is nothing bad hired like over six over seven but that just the is probably something on nuanced in the calculation, but it's certainly a new hasn't the following the dramatically and again.

At least in our model, we don't really need to get anything to the bank's per se.

Okay, Okay auction channel, we can discuss offline.

Second question is on the.

The process of matching the loan.

To the Bank Pac Man and I know you on explain this in the <unk>.

So let me ask again.

On.

When you see the low ninetys acceptable.

New York, scoring criteria.

And suppose bolt on what is also satisfying the criteria, we new by more than one from me.

The partner on.

How do you select which funding partner on the non goes to.

And then more options of choice does the funding partner had debt.

When they see more then yes on all good to see that look you know youre sending me in on 5000, you on the on I can take fleet housing or Youre, sending in on 5000, you on on that might be.

But at the.

24 per se and I would like to get the 6% from these customers.

So how does it work and if that bank sees no debt.

The other.

There's a lot of the next one or is it should indicate what kind of share on the final question on the I think that the U. codenamed the little big save on person or you don't.

Okay, let me translate that for the team.

So the Sanjay and pass on that.

Well the Algea matters in a channel and mitigating the that's on the on the it now because she touched on that.

And as the millions of has all the okay from team loyal team and just the go on that because of the components on the.

I think the trading up illuminate the alignment of I'm looking type on the merger over on the capital.

Non-GAAP approval on that on the new bonus out there about the for the map it out to the income.

Much of anything that's a true day, Nigel simple because some of the unpaid hotel and then the coding founder billings on a go smell the current took.

Again, they are the true to other transit Judy.

The case on a bigger the babysitter, which tend to sort of will be on the channel with the acentia when compared to the non essential force in the on the come down there to assist with this allows us of the.

Not at the founding member of the pension.

On the ruble and the.

Great and as eager moving with on the interest rate environment jeopardize the advantages of charging file as of the OCA as the downside of balance sheet.

Okay, and then the foothold in the or maybe it's always had the.

The dial the Luna necessarily go negative items of either of us along with the.

Well, the two anywhere else that items.

So we'll move to the total capital that's just the anchor.

Both the one of the yours or the local price with the digits what type of about the value goods is with the cash.

Typically quality is Olympic winter, so think how to put on from that of income the greater wallet share can you put all the single tickle the tools have essential the yellow chicken houses on cellular the military.

Well into line your way both on over the use of what level should the other three price on the looking at other than good very good capital.

So the important rollout will mendonca EBIT in that tweaking to the whole of happy because the income told me. He the price book of the enjoy as the invented the other bookkeeping, let's give up so we'll then the legal case that does the other things are they on the other than a year ago. These are in sales.

So we don't sort of it is hoped and other you the thought of what do you see the duals there that's sort of what would you see the that would of course on dollar will likely one of these that result of so one of the can use of it in relative were solidly quality.

You touched on it kind of sort of other sort of so to the solid occupancy growth how current on its own of wasn't GAAP sort of cigarettes or so on the assembled today the hedis scores or could you talk about other not just of the typical what lately you know for the other than the you guys just on the go forward.

Yeah, So a standard.

Jay once the emphasizes that when we connect the user to the funding partner of the at the.

One of the system, it's a very comprehensive and complex system.

It's based on the all the different funding partners of requests and all the things that they have included into the system emphasis is definitely on providing of high quality customer service, which mean speed so on that basis.

What happened always is it would be a one to one so there is no syndication theres no sweating sort of always it's a once the one Dan obviously there is no co lending.

There is none of that the going on so thats the big picture. The logic now also within this is that there's other considerations as well based on the other potential profitability the interest the risk.

We also need to the side what is perhaps the most appropriate funding model to use whether it's a loan guarantee profit sharing et cetera. So there are a few different things going on here.

So to answer the color today on the other it doesn't make good it'll go the other it was the with standard. So that gives you a couple of towards the tax on the Chinese So total will eliminate that the multi goes on we will as it were the you got to do so do the you know comments of the so the third they'll go to it.

The co pay on the cohort of this of the holiday. So some of the focus on the niche Hogan tuck under the look of what are the yields on the way collagen thing of the you're transferring your way to the focused came up with either kind of kind of what the need. So it's a little later on if he goes on orders typically on well, let's say the dollar is a woman.

Take capital of all look I would tell you that if they sign GAAP, you'll get the from what are your GAAP. So the what's the it's only on the yard no the kind of which about the begin a bumpy, but it always does it all depends on the liberties on just.

The other is just the we'll let is I believe the Asa I know the answer is to take on Delta New might does it all falls on a Sunday, So I'd say, the which are in the beginning that such as interest. So you got to kind of you got the Eagle also the or something let's talk of they go force diabetes, which of the it who many of them, but we can't say the line you know all of our way higher than the is the useful.

Much of the will then cover the little piece of it usually put the new project. So we hire from what is then the you see the other the good a yugoslavian companies of the off with other eager eager.

You go from day, but she is on the the order book.

And so with regards to the funding partners. The choices. They obviously also have the choice to reject the credit data, we provide and many do but.

But of course different from new partners have a different rejection rate. Some are very familiar with our customers wherever you are familiar with the risks and as a result, they would have lower rejection rates from our for whatever reasons more risk averse and we'll have a higher rejection rate and the as you know air from a a of the tax the credit and the most me.

Any of it goes to be and then of after that for whatever reason somehow nobody assess the credit then obviously, we will actually have to close the transaction I think it's also worth emphasizing that maybe and this is not necessarily a exact comparison, but maybe it's somewhat like on the right.

Sharing platforms DB share in China, there's a lot of different calculation that someone of actually goes to the when they fail the cap range it could be something on the platforms on the outside of the direct platform et cetera. It.

It depends on the distance of depends on the profit in the way et cetera. So there's definitely quite a few of different things going on that is quite complicated in the background.

Okay. So just to be clear of the day, the banking only accept or reject the proposal when it comes from you.

As of the them.

And then just over future figure something out of that wasn't really on how common the showers from the trigger for that one day and also to true that you're trying to other.

Beating Dinesh on the cash on on the new Joe venture on how to show you how the for the China should the edge of agenda, but after the year of the question the automotive.

As a whole I mean, all of these discussions have to occur before the funding partner is put into the system. We have the basically discuss the parameters on events that way that when the actual transaction comes in the efficiency on the customer experience as fast so in essence of the can only be yes, we know the whatever the bogot capital.

Hello, Thanks, Laura Chico samples of current cases, it'll the docket on the solar some of the whole body of of the Gulf part of Saudi book up. So this is of course of our shell. We're looking about how you'd US again on work on the African metric is also true true.

Sure the two part of having to that's all the some of the margin local assuming the cohort is into volume.

That's it wasn't much of the yes. The total what's the arguments again that is on the opinion on the attorney of little assortment digital could you double that so women, putting new houses social you should have the Asia sales through to the promotion well. The thing. It was income of working you pay cash for the public to private Houston prominent the whether he was awarded the lower part of how the two cents of Delaware.

Let's just take the bigger to the yet whether it's the one is the senior team does have the first of all other yes on the originals you got the plane where that we'll Miss you on your they cannot be reported total people the rate of which of course will get orders to quite a total of equity is we'll get the question.

And then Jay also wants to add to that.

Typically when we work with your average finance show institution. They begin on our platform with the high rejection rate because they are quite conservative not surprisingly and also they would recognize and growth we will recognize that the efficiency there is not the highest.

That would take steps to help the increase their efficiency on also develop there on the risk control systems. So this year, we have the specific impact team that is working very directly with the banks on improving the risk control system and also increasing their efficiency to help them up.

Preserve the quality of the assets and the also helped them build the model and the data and we can see that we are making actually good inroads and the it may become a bigger part of our revenues in the future.

Okay fair enough. Thank you.

My last question.

Your your normal origination volume this year has been very good issue.

And it's growing quite nicely on last year. The last year. The change was a very very strong growth from the previous year. So I would just want the you can from my impression about your customer flow fight.

In the my impression based on all of which actually over the years is that you have young of.

College educated customer cohort.

From the six year olds so.

Has there been any change in guide on any deviation are you moving up in terms of the age profile or going more into tier two tier four dfive cities or the less educated maybe going into polytechnic other than college.

Maybe just starting the guys on the on the customer for price sites.

The change.

And as New York customers, each and what is your value proposition to them use of.

She bought on unsecured on from a bank.

Yes.

On the equity that's on trailing kind of on this out of the meeting and the terms on there and the talk every day I mentioned the trend of anti on patrol pushing their net on just sort of on the cohort.

All right on that as other that seem to of elements of cancer. Other well then the third.

The enough, where we know the share of the entering the sort of ordinary govern value.

The guidance can you try as we as illustrated on the younger the quarter's.

Which is eight once again the two.

No there should be about the new on the modified in the amount of such as associates and sort of back into it.

One thing that and they will be on quality.

Thank you I saw on the great associated over the last two of the Soviet on how many entry that out on that well then the team.

On the other food job of America into the others as home income the kitchen the from.

The Doctor with the Tapia net was on how the.

So one of the cohort channel sold the ISO has the eating into new avoidable. That's the woman say using one of the thing in here or your K you how the so lots of is how many new union. So that's how the inside the against the later this year by day. Since this was the good and the teens.

So let's use of the the coaching chips is that part of the if you did in the quarter kind of romance and know how the simple below what that variable debt has certainly one of the door, but you don't pay by the other units located in Asia, just how the team leg of so that's a lot of well inside of the other cook and that the you got way more summit, when we feel like Thats going on about a global the tender but for the remainder of one of the.

So we are in the conduct of walking again, EBIT, so as you'll get the bulk of the say Chuck on the.

Starting on this is Chuck on the sensor.

Okay. The type of all the target.

On the attention of woman from watching some of the they've got the it goes reveal any intent on in case of the Pinnacle first of all many of that based on the woman the you'll hear that whatever to do both the India, So thats, where the tender he nuclear Gulf of the bulk of it.

So you're absolutely right on the core profile of our the young customers and as a whole on our customers have changed a little bit.

You can imagine some of the customers at the end with us the longest five to six years quite often the they are now very very wide color and sometimes the they might even have on their own the businesses or operations of the work and they may impact the use on the credit that we put the pipe for some of these activities.

So on that note, we certainly would potentially new to have of greater scale and more services on that we also see that based on our experience and our operations and the motto and our ability to assess the managed risk data. We now do have the ability to move towards the lower tier cities too.

Encompass more different types of customers were different degrees and diversified. So there is also that going on as well and certainly at this will help continue to improve our growth. So hence it's driving our growth and that's also driving our ability to continue to drive our growth.

Okay can you share some.

Based on you know about what percentage is now outside of safety on one tier two cities what percentage is outside of the <unk>.

I guess Axia college educated kind of.

The group.

Okay standard, but this will have to be the last question is on your side, let me translate from the team.

Other sort of the company.

The other pension the Nash and the door styles of your business hours with most of the sort of those assets and then the message and since the.

The thing that's what you guided cash.

All of our new on the other one on kind of some of our mentioned of any issues around the integrity to opinion, playing with the Union index, our wholesale revenue.

Yeah, So I think that might be a little bit too detailed the at this time and just very quickly.

Average age is actually still 25, but I think we can get into some of the more details later.

Okay. Thank you very much appreciate the active customer the 25 sites.

Thank you.

Your next question comes from the line of Steven Chen from High Tech International Please ask the question.

[noise] sick wondering why don't you done a lot of we only only on the one do you got high season true when you sort of one you can kind of do you Donald I think of tangible basis.

I don't know two daughters.

Then just on to just on the due diligence the tangible be new you mean, the current until your two of the cohort C. O first of all the T. go no. It wasn't a new days on teaching the.

You mean.

The way the boom.

Moving to the to the cohort Tom on the just on T. Lynn.

She also OHA Hi, C tool to use the recent Sunday.

Hi, do little to either since then the tied to the hot not only from what do you guys see two hotel we like the.

And so you could see do you go free ball on.

The whole high you don't see center line, it's not just true.

The one you see do you do the I think the tangible basis some of the sound war on waste is that yeah.

The ruble woman the only goes away the credit cost. The the concept was just volume tangible B G leave the pinching back on the yield on no see two of the economy and go eat all energy to on.

The new this through the altruistic Antoni sort of doesn't make the scene.

No Tom and the two times, you know house on to be done how hot it Tom on the tangible be total debt. So are you didn't know.

On the it goes on the do the on these leases away the seen the Kobin Oh, the C bench and the two cohort on who you believe you know Toussaint woman Sungy due to send the team on the.

Because the D. the one thing it doesn't want to anymore. So many of kinda, though does.

Net or what kind of been out in the Sun. So you do one B C. O side did on P.J. sees on I'll take the somewhat or you are actually doing what she sees the always sitting on of.

He is on.

Question is just to follow up on the on the provision charges you mentioned that.

The two people rise in provision charges in Q3 was partly due to use some of the in the ending resumed provision charges for some of the old customer I just want to you kind of type I diabetes related to some weakening in the asset quality on delinquency all four of these.

On customers or is it all related to prudency EBIT is we'd like the two prudent attitude on will be potential right, but in the coming quarters and also from a credit calls concept, which is defined as the provision charges as a percentage of average loan outstanding of.

Do you think that the.

Q4 per week or the coupon of credit cost new lightly to return to the Q2 level.

While you will just stay at the feel free level. So that's the first question. The second question is the customer base on my own estimation on the customer acquisition cost per head on.

Seems to decline value in Q3 was of the stats in Q2, a wants the restaurant there will be high M. Do you have any guidance for Q4 on the trend of the customer acquisition cost guidance.

Claims both in the swap will Miss a pinch New York with the introduction zone. So just from kind of type of the on I think will be just that should cause she doesn't equal from that were so.

Yes of course, the least the thing for the business is the oxidized the shooting and the.

He is accused of the satellite into on the operating.

Not that it has the teaching the genetic good the you could see on public debt so should okay on.

And then I know you conducting the kind of type of the whole that to share that sort of thing.

For the placed into the the till the fourth day, the powerful momentum from automatically items.

That's it you can has a tangible free the since the that.

So the Stephen on the of provisions the I think we have to monitor the customer behavior of very carefully and based on the.

The data that we're seeing from the old customers, which are primarily the customers that we acquired in the second half of last year 29 in Q3 Q4 net.

Let the online advertising the method the.

Customer behavior of.

The requires us to be a little bit more conservative I think in the fourth quarter on we'll certainly again plate of other similar approach I just see how the customers behave.

Got you take on the Cameron Q on major T shirt or Chicago, the owners control of the automation management team.

Hey tissue from fulcrum on 2% of it up.

Great leadership on a dual cannot share woman the beloved English the new hits adjunct potential problem and the poker.

Cash on the going of Obama interest.

Well go door the Fi only share view of the hotel I attribute of the Hawk high out of the towards the dollar will sure Judy yard. She told on that Germany, you got huge and while the on an opportunity the will depend on your share you touch on the EBITDA of one thing that you do John the harmony of the current door. The current multi line by line item like quarter adjusted on Board.

During the call who killed in Seattle based on track on on the War me each of your mail.

Cautious on although on the tickets on t. onto each of the answers on the actual it all on the whole quarter figure out on the trees on charter hatcheries doesn't even the book at home, but our true to the Illinois to keep going back a couple of that comes out I take on how women force features in the high profit on before.

Yeah, I think Steve as you know that our customer acquisition strategy relative.

Actually has been quite stable overall in terms of on approach and the type of cash that we would like to get the customers our average.

So you'll never see any new really significant rise of any significance ball on a per customer basis.

See something like what you see.

In the current quarter, it seems stable or lower I know the very specific.

Reasons for that but nothing in terms of like of particular trend one way or another so in the third quarter on it was the no small parts of the fact that we're using less allying ads and the more cooperation partnerships, which inherently lower cost that's certainly one or two major reasons. Another region is.

That in general the third quarter is very favorable for us to acquire customers. That's.

Thats always been the case, but again of.

We're on now there's no real on shall we say on long.

Long term, a drop or rise of trend or otherwise and it's actually in general quite stable. So again I think it's the same strategy that.

The familiar with that you've heard from us on the path.

So the portfolio.

[music].

So the parking lots of the Euro woman has the the I've got on your part of the or the bulk of the house. So it's all of the focus of Miller has it got to close out of the December 15 years, when they start debt.

The.

The impact of because that's all from one of the dynamics in the Eagle Ford.

But on the needle movers, the resource I sort of limited on couple of simple if we know of big Delta the dividends.

The other trend, but some.

Well the retrofit either so I won't be as all of my Sunday TNMP is out sort of the the holiday sales over local cooking, yet going to disappear hail could secure that two thirds of all so bill kind of focus on some of the equity yet.

Simple automotive the patented of pocket, we will sort of be talk about the I just thought of some but the selic of coal. So the woman when I went live with this with the other digital paid the audio double the things of that you guys put the claim union. So about the lowest the let's hope that the the legal for current look on the condo wouldn't yet.

So I think also as Stephen the you know and talk.

Talk about in the past, we always emphasized a diversification of the customer acquisition and debt working with different channels. So that's always been something that we set out to the construct so this year. For example, we will do more of the of our card more of working with various platforms and having areas growth.

Operations.

And avoiding some of the well the standardized traffic that has occurred in the past right.

Right now the in particular, we're hearing a lot more of the QQ Newsday of Tencent video of.

Many other online videos, where somebody opens and account on the other of our card that we gave a membership and this in the.

Oh, well basically bring up at least in the near term some more stability to our cost as we pursue of these type of channels in the new future.

Sales one is on.

Well how are you getting on one he does the Sanchez.

One of the towers NT dollar deal being page two on Oh, sorry on the NK each on the dollar the Oh I'm just sort of a woman kind of it was then so I was kind of do I see your son's utilize the way to dive on you see them with no. So you'd see 10 day, though I think about new cities. The guidance Quibble. We also have been how you see see one dollar indeed on.

I think the vintage of he taught out by new soon.

My last question you used the I think the management guidance last time. The is not the do you aim to achieve of vintage off of 4% on even below a interest in second half of the steel, but we usually take the looked at the first of all you called out to free the vintage is still around 4.5 per cent. So.

Do you still have the confidence or can you give us.

You know what the another guidance on on that on the sprint, which trend on the in Q4 do you still are you still sort of competition that you can you you are able to achieve the vintage of full percentage.

The I know PC.

A woman day such into the the incident make assumed debt because of the action that happens this as much as you.

Yeah, So basically for the fourth quarter for the new loans were 4% or four confidence we should be able to accomplish that for the new loans.

Thank you.

Yes, the refined new ladies and gentlemen, if you wish to ask the question. Please press star one.

Once again this style one for questions.

Its standard so the question so with that we conclude our conference.

So today. Thank you for participating you may all the disconnect.

[music].

[music].

[music].

[music].

Ladies and gentlemen, thank you for standing by and welcome to the listing it fintechs the quarter to tell the 20 earnings conference call.

At this time all participants are in the listen only mode. I must advise you that this conference is being recorded today and the like the hand the conference over to your first speaker today, Miss the Tony home Senior director of capital markets. Thank you M. Please go ahead Sir.

Thank you operator, Hello, everyone and welcome to listening start quarter from 20 earnings Conference call. The Companys results were issued earlier today and are posted on line. Joining me today on the call on Mr. day shower, founder Chairman and Chief Executive Officer, Mr., Craig Zone of our Chief Financial Officer, Mr., Ryan The Hill, our Chief Risk Officer Mr. Stanleys of.

Our senior financial director and other members of our team for today's agenda of Mr. Shao will provide an overview of our recent performance and highlights Mr., Jim will discuss our financial results and the surveil will discuss our credit performance before we continue I refer you to our safe Harbor statement of the earnings press release, which applies to this call.

As we will make forward looking statements also please note that this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.

Finally, please note that unless otherwise stated all figures mentioned during this conference call on lending the I will now turn the call over to our CEO Mr. Shao, who I will translate for.

The debt.

We'll go from the cost of our debt will use of moving up the full year to the delta or the.

Phase of this in the Gulf of the pension quite a few of data. Thank.

Thank you everyone I'm pleased to announce that we once again reported strong growth and I'm pleased to say that our new growth is higher quality lighter and more agile.

Thank you the once the shoot body from doping.

Im going to fuel growth one of your top of the number of reduces.

The other lead in the new building orders.

Over the other but she was the low fortys index of the either debt.

So the federal the can can have on until today.

So that will listen I went into the design phase you will sort of on the site for reasons on the info.

So since the IPO Molly.

Quality duty of value. She is again, either we in the third quarter, we continued to pursue our new consumption of strategy and our total registered users increased by 69.6%, reaching $106 million. Our active users reached $7.4 million an increase of 21.3%. This growth enabled us to achieve 48 point.

The billion in new loan originations, an increase of 30.6% where revenues of 3.2 billion gross profit of $978 million, an EBIT of $499 million.

Phil on the field, whether you will then see the seasonal total vehicle the true Europe region looking sequential growth focus on some of the whole give little debt of fuel so.

So the talent both in the fourth of that could you do that also that the dosage on looking for growth usual with multiple if you will on goes on the union, who pays for the other two cuoco suitable target the mean quite meet the coated any.

The more important goal for change is in the continued improvement on the quality of our revenues currently running as already shifting rapidly from an asset or capital has the risk bearing guarantee both association model into a technology two of the non risk bearing loan facilitation model under this model of pushing the utilizes advanced technology the service on the.

Enable financial institutions to increase the operational efficiency and listings technology services can accomplish the customer acquisition internal systems build out and operations management of our partners.

This is essentially the Lucent content will include the sold out of three that value and.

The total Eagle thoughts of insensitive. She's also reported to be cooking channel new dangerously 40000 per lead on of the jet.

Inventory of result on the inclusive for most of the booth on value product releases.

Jinyan Cmos the United women at the BDC, New talk about the little skill sets of of course is on synergy goes unaccounted for me it per week for the the use of the soybean.

The year consumer growth relative to what bunker price.

Good day with the growth of the you will also have been the content spend on common dividends.

This has enabled listening third quarter platform and technology revenues to reach $1.13 billion, representing 36% of total revenues of which are ridiculous to be technology revenues were 614 million, which increased the 159% year on year within new transactions the risks list.

Pure technology, portions, which 40% and since October has already surpassed 50% under this model of financial institutions will bear the risk, enabling us to generate higher quality profit the more compliant with the direction of regulators and regulations and in the long term enabled listening to develop a lighter of more agile.

A more nimble model, providing greater room for growth.

Content Shelby in the issued new debt everything is in the on the engine the lending which is of the one in Q3 items also through the two will the engine to the towards Google you blame EBITDA growth quality issues to sell the than from the Jews opportunity is the top line into software was simple the answer to the total sales of.

Consumption has been the number one driver for China's economy for the past six years now, becoming both in Maine, and the reality the Chinese economy stabilizer and anchor at the same time as China's per capita GDP cash is the milestone of 10000 US dollars per capita increasing domestic demand and promoting consumption will continue to offer tremendous.

Potential and represents one of the most vital and core components to the governance rapidly developing new dual circulation strategy.

With that we'll muddle through to the hint of any tighter control of essential could you touch on the yield.

On a couple of them okay. The two gencell centered on quarterly identify the impact the semi eagle production than the kind of on the hedge operating we'll muddle on our total adjusted on the services on debt and achieve Willa same topic tangible growth outsourcing some of the in both will touch on in that in aggregate momentum with each inclusion of the and.

Shenyang intent of essentially by the items Bubba New Anda.

One sales as the Tomas engine.

In the future, we will continue to explore opportunities with our new consumption strategy and establish multiple new products and businesses. Although card membership program is already seeing initial results and we have the at least our new consumer app, creating a system that covers all consumption scenarios and providing a more open new consumption platform, we will endeavor the capture the.

That is provided by the world's largest consumption market focusing on products and services that is centered on new consumption opening greater room for growth, we're fully confident in our ability to achieve the 170 280 billion loan origination guidance that we set out before the call the 19 pandemic.

Given the targeted at Bogoso look into the way Youre on Eagle Ford on full time on this is all about your quality issues. What are you able the sort of on that the with senior debt facilities jump on with the messenger for listening in today. So the choose the idea of people other than to earn income of a few of heavy here, we'll Miss you on your current on engine and the timing of when.

Hold on the balance in the engineered core growth in the hinder compared the yet from losing 10-Q, two leasing it since relative to hold on to industrial free good weather condition.

The letter from which I'd also like to report to everyone is that as an internet platform with over 100 million registered users on our ability to our users and the hopes and aspirations are always our highest priority in August on Sheila initiated a new on comprehensive plan upgrade campaign adjusting our brand to the consumption.

Changes of our young customers and promoting our most value to merge income hall or just ride. This just perfect. Brent we aim to use our knowledge of our young customers product preferences and desires to accompany and grow with them our millions of millions of young customers. Our new branding reflects listings mounted on focus as.

Friend of the damage around our brand and has received recognition and interest from various parts of society.

The internet.

On the on the CFO type of right Here's our government in safety the orders household.

Next I'd like to invite our credit CFO, our CFO credit to discuss our recent financial performance. Thank.

Thank you Jay on the Hello, everyone I'm pleased to announce on the we have once again delivered strong results in the interest of time I will now go over the line item by line item of our financials for a more detailed discussion of our third quarter results. Please refer to our earnings press release total.

Total operating revenue reached RMB $3.2 billion during the quarter and the credit oriented service income reached RMB 2.0 building platform based bonus income reached RMB $614 million, representing the increase of 159% from the sort of quarter of 2019.

[music].

The adjusted net income was on the 443 million.

Fully diluted adjusted net income for the quarter per EPS was RMB 2.15.

On our operating leverage operating expense as a percentage of average loan balance was 3.5 cents for the quarter on now at of high advertising marketing and advertising Gionee and R&D, 1.8% 1.4 percentage, 0.6% and the 0.7 cents on average loan balance risk.

Excellent.

We currently have 100, and a 6 million registered users on our customers with credit line ratio of $25.2 million up by 51% for September 32019, we.

We acquired nearly 1.7 million new active customers in the third quarter.

For the quarter. Our average 10 on was 11.4 months, our nominal EBITDA was 15%.

The ongoing cost of 19 outbreak has brought the and the continued to bring many challenges and the uncertainty to our business, but we believe that with the continued the Permian.

Our efforts of our team we will of steel.

The able to achieve our initial data its guidance of RMB of 170 $280 billion in the lower the nation for the year.

Next line, we will discuss our credit situation Ryan please and the credit.

We continued our theme of credit formats in the East coast.

In spite of challenge conditions in the market our credit quality continues to be high on the meat expected levels.

And reported the spread our credit that this continues to perform well and at the expected levels.

I want to maintain day packaging on the ratio declined the from the second quarter to 2.6% in the third quarter.

Let me continue to stay stable improving credit quality as our lifetime target ratios has the bar.

This is consistent with our previous statement on the 40 hour range of expectations on.

The we point out that our performance from the main fables of continued to improve to orders for the end the of 21 day and the independent anyway.

The that I think with our prepared remarks operator. Please proceed with the patient and on cash.

Thank you ladies and gentlemen, we will now begin the question and answer session if.

If you wish to ask the question now please press star one on your telephone and wait for your name to be announced.

If you wish accounts the your request. Please press the pound hash key please ask the question in Chinese if you can and then kindly repeat the question in English once again.

Now one of questions.

Your first question comes from the line of Jackie two on from China Renaissance. Please ask your question.

The quantities on one channel to the from the security when the as your question on the today on central into the challenge selling channel.

The routine or should continue on the cheek guidance cici many of the sequel usage, while no fundamental growth.

Research and the energy on the.

Among the growth.

Items non.

The two should continue momentum to achieve the sequence of John how should the out new the top of the year.

On the two shantytowns, how much into the media you've known Chico usage.

Some of them in the growth.

No gangland sequentially the true now.

Chicken to money from this outside of switching the achievements is actually on the you see to shoot on backwards you touched on the new Chili's, We show new each GTN Chicos 10.

The new woman she will achieve the vintage trigger to share.

Hopefully of shoot the whole the chicos right back on.

On the decent lumpiness of sequentially, Jim glass no. She could you know you see the England energy growth.

Some of your ships to our non Crinone Chico she goes on arch.

Chico usage between what the tissue cannot she line she cubic.

The scene has the coupon on to the leverage on backward due to the actually quite a few the timberland shoes on should the attention on them.

Some to tell when it's on sizing, what GPS and shoes.

You mean, Keno Hill associates, the whole kind of we like the growth to ship.

Thanks management for taking the questions I have three questions number one is the thoughts or loan volume guidance and.

On the channel on next year so.

So I free observed on our loan growth is better than most peers. So what is our outlook for next year.

And the second question on spots on our asset quality.

Okay can management share with us some.

Some color about the short term delinquency rates collection rates.

On the vintage laws for the for the new loans originated in the first nine months this year.

And the buyback the provision we can expect.

In the in the coming months of.

Others, and lastly spot the regulation.

We saw the new stuff the overall Chen from regulation is too on the Fintech giant to the leverage and on the market also concerned about the upcoming tighten the on the non will reach and that sort of loan.

The on presentation models. So do we have some color on the regulatory trend that would be from.

Thank you.

The other ego into whatever the idle.

So we'll continue to the get as the you guys the clean which is when sales.

It is the king of the the logo of less or has the you'll be out of that lenders are women the will be on us. So the answer that union well within the US we'll do the palace. So the intention for the Eagle mobile so the each into the owner is the use of the Egypt or amend the yield of into the sort of a bit on the other channel that type of the woman, citing the I guess the shop.

I am a woman the other Asia will integrate hits coated the lower the world with the it will mean guidance on the goal, which is often the witness a variety of there's also the use of the delta without the on the for the door in day you heard of hotel you go to these issues over the.

The other telomere Phil on media will make out of this was a little bit of the range that you saw on male towards the end or low, but kind of that kind of linear in the reservoir has the way before the where uses of that overboard and retain the little bit of sort of closer to the good are you guys, helping the thats. The issue the issue that we look for middle of kind of the with of.

The other day, whether you guys have a day in day.

Well one of the dollar per year, just as in the other tools of in Ohio.

So that the whole working the old woman trunnions from either the going to use the than the.

So, let's think of that kind of what you're looking at the quality. The 10 going to you. Good thought of funding is if I gave the hour deal so our topic, which of the force rule no of women of that with the hotel.

On the political so will the into India has about the you got to be the other one day you good value.

The two sort of no new my future of us with the elements of the Huntsville may was actually the sort of adult with what I will the equity and book and got a total profit.

So one.

One of the answer the first question.

Most of the guidance from so as mentioned the reserve.

We look forward to accomplishing the guidance. This year has been quite challenging given that we actually gave the guidance originally during the day.

On that was not only free covis, but also at the time when we were growing of the basket and clearly if you can see from the results. The first quarter, we like many others were impacted and it was in the quite challenging in the second half of the adjusted and do the teams efforts on hard work.

We now feel very very strongly and confident that we can achieve our guidance for this year. The singles day for this year was also a particularly good and when we look at the fourth quarter.

Looks like it may be possible that we once again create a new high when it comes to our loan origination now on next year. Overall, we believe that brings us your the continued to be good and overall not surprisingly things are improving obviously galvanizing situation is the company.

Under control gradually over time, and especially in China consumption in China continues to be strong and recover and the impact as I mentioned the although the earlier this now the.

The singles day. This year is better than last year. Overall, so we can really see the strength in the consumption. So the next year or the overall economy is better there's no reason why things of that shouldn't be better and the plus the in addition, it should be noted on the asset quality continues to improve so.

The case then on obviously, we certainly believe that next year should be a pretty good.

Obviously, when we have something more precise will.

We'll be sure to communicate to everyone about our expectations for next year.

Okay, Nick current yard of indexes.

Thank you two of what went into the Ecoson intensity on today, so you'd have yet the.

So the current Dennis was on the NK cancer, new of sort of Scone.

Make the FTC.

Ken the silly four minutes on audience on it he can jump on you get bar sales what standard I saw you will subside.

Adjusted EBITDA 15 accounts hope and good day, Ecoquip and each of us on it for the price and believe that growth each from the free forklift and good day equal the eco changes for the month when you guys.

She is a woman day cook the bucket because of the Greek of the $22.

Capital of the holiday.

She is in an M E. The good economic news on incentives on the MPR studio keys, and the mechanism and he by boss team sound the spike on the facility the our three of.

The truck.

The function good that the vintage of those on a kind of the product.

What kind of thoughts diminish the consensus dr. the profit getting printed the Greek of each of us on the kind of.

Thank you sort of and good day. It seems it does have the good thoughts of the VP are simple your card at the weapons SW face on density the good the equal.

Two of them good Eagle assumed in the Eagle becomes available on base on the as at the high so the.

Sales messaging and we'll get a day here the symptoms credit is the of the density of Dol Dominion thing good ecosystem at the beach equity can quite simple.

So I think with regards to your question on the asset quality trends on this.

This quarter of things overall continues to improve and for example, the SPD seven the decline from about 2.3 to 3.2 plus.

In General every single bucket of statistics that line will look at looks better. The M is better by 5% collections are better vintages. The 30 day delinquency in the third quarter is now better by 30% and generally speaking the third quarter, the new loan originations of the asset quality of looks good.

And we see this trend continue and continuing to exhibit itself. The next year not a lot of the quality performance won't show up until the next year's results, but we certainly see this trend continuing on the Thats. The one correction of the equity seven is improving from two point of three to 1.8.

Yeah.

On when the agent growth.

For the.

Thank you my relative.

The Jim on the today it does dosing of Asia sales.

Well, let me answer the dividend weighted.

So the high to low profit to the high end of other so.

The team told us on broker ago relative to say the highest value simulator for Yodlee force for uses of cash to women, Delaware, putting it in all of that will be the of Canadian unfortunate Timolol could these days total growth of the topic, a little higher the with the low TCV. So those other sort of culture, we're going to say goodbye to the other courses.

On the Delaware.

Thank you relative I think to the eager eager kiva if the.

A replay of conducted on how has it on to the SIGA ego, particularly the suits our goal in the in the one dollar because of put on new Oriental itself on the year War that Youre before that so this is Joe turgeon till the end up relative to the to fit.

The into that other less of that EPS fit on that other than to the relative to the ability of we'll miss you able to union. The other heavily into that's the element of various other than the the you've got the them the impact of the either open or the EBITDA.

So let me also the other to the end of a disappointment quarterly EBITDA of other than the current loop current new area of lock on the North you working on.

Quick enough. So the calendar year sort of is a couple of other at the end of the game on help yourself.

So with all the different fits into that as is the when it wasn't the lessons into the year, we'll mill head on the unit.

Yes, So I think everybody has heard the various voices of different opinions on the subject of what the regulators strength with regards to of your third question Jackie but overall on I think at the end of the day, what the regulators and the government wants to do is to continue to from.

Most of the healthy regulator growth of the industry and I think the regulators on the government as a whole also of very clearly on has spoken out clearly on recognizing the technology contributions of there have been made to the sector and the improvements have been made by companies such as ourselves.

On what the regulators are also seeking is to pursue a fair market for everyone and for everyone who's in the similar businesses to be treated equally cap. The someone who is doing something very equivalent to another entity and somehow they get the special treatment.

While we see very clearly and I think many people recognize this that the new policies as a whole have very very limited impact on us our use of micro loan license at less than 1%.

Whatever the regulation is or has been about the ABS et cetera that also has the limited impact so really we don't see much impact to us.

Regulatory from.

The thing playing into that is it on both of which I consider that in the end of physical Hey, How's everybody kind of anemia is intensely the disease on to that a little more sort of you guys sort of more in line that total solution that you sort of set of tumors. The good assignable sort of coal the yield losses on the kind of drifting in Georgia. The safety two were sort of as well.

Well I mean, the way like other than going to use the 10 watts per well I couldn't Jeff because I get how money from the type of Alibaba woman gasworks and good the you Gov.

Total total total installed on Boulder to go to that most of its I tell a tremendous no change from the or could the level that Melissa. So now we're moving to the on most of the so you'll see on T. go through the rest the member growth momentum picking on cohort in cocoa the throughput the fashion. He did the to cope with the title taking it in the fall.

Over the two again so to the so you got the answer the Eagle Ford.

There's other to the most of the how we use the can jump will grow where the again one of the altogether.

First of all the other weighted to look in the woman to the historical each other so the way line.

For clarity on what the photo fill of visa lets you sort of will they kind of relative to the type of service and good day.

Well I think what comment on we'll look at kind of relative to the year because of its helping the show volume is the two way of circle, either congeal may kind of tell by type of the shopping channel both workloads. So thats all the time needed to the on Tinder. So yeah. So from pilot clinical value interest on rental can go they look on that killed. The day is still on where you sort of did.

Now when I say good credit boom Kinda you got to tell you the erratic vessels on the call that still accounts of the year with other sealy the other day, whether what sort of the waste as other utility of diversity goodwill holiday relative to you, but we'll miss the yield on the way of and go through it to door and I will look of them talk about utility.

So the sales.

Thank you I caught the mandates and debt or whether the deal, but I sort of be don't know value.

So on the whole loan facilitation of model as the Jackie I think you're probably aware and you certainly have written up a bit on the CBRC, earning earlier this year, the clearly establish who does what and what the rules on on lump of flotation model. So this has been clearly established.

We have been doing everything to be fully of combined with the firmly established rules and regulation and this is why we are pursuing very accurately the profit sharing model, which utilizes our technology and the asset light to fully compliant with the growth of the regulators in these businesses.

The financial institutions will of course take on the risk as the regulators have wanted and indicated in the past we will receive a pure service fee for the service that we provide and how picking the right clients for the financial institutions and this is clearly more compliant with all the regular.

Salary directions and goals that people have been following for quite a long time actually now and this is in addition, consistent with the government's go on the internal circulation part of the dual circulation strategy of promoting the consumption and we can't even see actually some of the other recent announcements that.

You do see the potential loosening of various leverage and constraints. So in this environment, where becoming actually more and more complying with the regulatory direction and we believe that based on the current situation in a third of market machine is going to have many many opportunities and we're even going to add opportune.

On the visa potentially to do certain things that we couldn't do of before the end the stereo market. So overall, we're actually quite positive on the.

Direction of the regulatory environment, and the opportunities that sort of potentially offers.

Let's see the J.C. Penney Tom.

Your next question comes from the line of Ethan Wong from C.L. assay. Please ask the question.

So you're right on with revenue down when do you go show a true and it sounds like on you.

True, though on kind of the hunt shareholder true should essentially the warm and conjugal vision of acquired the whole warmer new on provisions we do grow the mortgage mentioned on Mount how should be so much. The two years your assumption Tricia on wings on RG 100, new users from our true.

Four months, how should we read the Josh Sundar snowfall.

Well from a hardly surprising or new on tragic of free initial orders.

Other income the menu, we share our interest investment for growth.

Sure just lost share for UGI represent channel went through incremental share guarantee liabilities fashion metric on fair value.

You see one on just where the going on with the younger ones, you're one of you to quit on.

Anyway, I came back from Boise current view of mine.

You know how warm on your desire to watch what's your growth Tonight.

Sometimes from one to one of these your current veterans from long some of his great cash, which we are leader essentially 100, essentially losing two or how should sell harder on the show much of which usually twangizas your assumption.

On winds up on your friends charge of pay horse on debt.

On your end users from now.

Our current what is going on with the.

I have two questions on.

The first there is for the of.

Question on asset quality on so although we are seeing improving asset quality trends. However, if with the bard provision by the loan origination are there still uptick from the last quarter. So just wondering on what is the reason behind on.

And there are also some investment related loss on other income on the does that also related to ask a question on I just wonder cash some more color on on that.

And my second question is on the take rates on so if we divide by on Garca service revenue from.

No on tradition amounts on the ratio actually also customer base on comps.

Patrick last quarter on so just wondering.

What is the.

What is the driving force behind on rent when interest growth is going lower and we're on track for transmission on true catalyze mortgage yes.

Thank you.

Nick Clegg with equal the Nic of publishing.

Well misunderstood things at the consumer Finance led suite and the the publishing gain weight in the Houston good the to each other and sensors in credit is sort of desperate to put the equity growth.

Well in home I think the internet in the month of pickup.

Yes, the provision of from the book it.

The people can be Washington that kind of what was in people with the big will yield the pool.

Jason machines, the misses that statistic so that the income it's undertaker that simple it wasn't warmer kind of consumer from interest to the other than the 14 pets that many of the better that's the yield it's really on the table.

The file.

Kind of the provisions on the quality I simply predictions and possibly the sales.

The result was that kind of range.

So I think on the asset quality in terms of the outstanding situation. If you will.

I think we're going on we have to take a conservative approach given the the galvanizing situation and other factors still on impacting the economy. So off of some of these numbers, we may need to be a little bit more conservative on.

Revisions I think you also have to divide that between the new and old and clearly on the new it's getting better and we can see the trends we can see this happening but for some of the old client GAAP to be on as mentioned the little bit more conservative about some of these things.

So hence the do have actually of different things going on that's not necessarily a reflection of.

Just on the new were positive trend.

I mean graveyard of individuals, particularly of the room and strategic where most of which is on the Mi Obama Sammy first the MAGEC done the Judaism of swine leveraging on the line to your share of course regarding can you hear me on the whole host the donor from into the on Nucleo Jake just a day.

The new as you know by the Middle and high on the two years ago, but on the of ownership.

With the including from the onshore the show on how each of which is on Threeg Arnaud going on we will miss on the need to flow.

Goes on to the true kind charters will you between the on iden larger growth engine annuities on people on to ensure the money into the 20 financial the retailer.

Other decline on the when you go from Uh Huh.

The disease on EMEA onto our shrinking the woman the jewelry and the proven Jake.

Current nanometer on.

Usually for utility growth joint.

Just on July so you do the.

200, essentially.

And so I think first let me touch on the other income expense.

The net staffers.

As Greg just mentioned the bank I wouldn't that there's a few things are not the least of which is a FX loss because sort of we do have a U.S. dollar CB et cetera, and we did see the improvement in the value of the year. Let me be so you have the things like that going on on the second question day had on the take rate well set.

The only not that simple, we definitely can't make that types of simple calculations.

Includes on future items increase on past items on line up there certainly I can't do that as just the current or the future rather is the combination of different billings by part of which under the.

The new accounting standard per again needs to be run the offers.

So there's three of different things going on there and the it may be worthwhile for us the have a more detailed the offline discussions on the calculations in the future.

Productivity of most young from acquired are doing the Chargers share not only from doing the dominance of a pick which I will elaborate on what we'll shoot on.

On your marriage of garage worker true.

Towards the end user on digital.

Fisher of it the womens sportswear director of excellence.

Im thinking of traffic for US. Thanks sure sure sure. It's just our credit for it up on take rates on it but just wondering if management can share must from more card or guidance on the future trend of for free rent.

Yeah, we will we didn't give any guidance on the on the.

Take rates trend of basically ice quite of bit surrendered resit relatively stable.

On the different the Remodels Anika, we have this.

Profit sharing model, we have the this direct lending models on the rental rates quite stable, but.

The into the mix.

Changing.

Okay that is your judging the wind down I need.

Just true I'm told one of breaking you're going on into the tree from the JV interest.

I think relative to our shop and keeping on iden on the has only had the hour being sure that mortgage on functions on the euro on its in that JV.

For more share how on this in the energy.

To them on travelers on what's on T., the take rate pressure shuttering of Java value on debt that the engine of growth.

The book from the coach from months, we decided that it will put on the bureau of around kind of what it actually change from.

Pardon me.

The map.

Thank you.

Your next question comes from the line of Sanjay Gen from a leap year capital. Please ask the question.

Thank you management for your presentation.

A few questions.

Let me start with sort of follow up on the profit sharing models.

Asked on my calculation Youre decrease in profit sharing of the TV seems to have fallen on.

From 7.8% in the fourth quarter of last year.

6.8 in the second quarter and for the the 6.5 in the current quarter.

I mean, I know your numbers internally could be different from.

On what I am trying to estimate but he can you confirm that the the fee income for sharing is down by 100 plus basis points compared to the fourth quarter and is this because price.

This is the price of the profit sharing model guide the losses for banks have gone up so the pricing on those losses to you index why Youre see has fallen.

Okay standard.

Oh on transported on that's on a year.

Please turn over on like.

Good on it.

The is under one of the violence of the Governor fumbled on what's the that time the sun the equity enough of them in the most of the the could take rate now that's one of the tenant leases either on a sort of the chidambaram hold on.

The as you do the split about.

On the funding of lunar assigned to other so the them.

Okay.

The the settlement of an entity the sooner because of their sort of an idea on that.

Shop on the whole noctilucent emerging sooner than the other goodness of the level of sampling of how many of the mess with on the motion for two of them. It doesn't the integration of Ashland sooner. So you gave the income absolutely other than that.

Sure well or joint of Eagle side of woman through more true shops will measure bridge us from dump the Infogenesis free Teva in that one moving on you take the union thoughtful on the crazy on from Alabama, Yeah.

The elimination of within the us on or something mail channel the Fujitsu on real to kind of the throughput actuant that the dual source the RFP to quote true JV on revenue on for you on the third room on should the laundry nation of other.

The other take credit stock action, but there are thousands of tons, Jim Jim Fleet would show our cash would be relevant in the.

We'll now since outpaced revenue three Sir you may have on things such as the lights on investment portfolio, you got a little doubt CJ on the you vote on hit on the call take care of from the bridge from flow.

Yeah.

Okay.

So on a Sunday on that.

On the Stanley, saying that well on our profit sharing model.

In our case, there's no risk to us I mean, we don't have to.

You have something to the bank so the financial institutions.

It doesn't get the that high so in other there isn't that mechanism going on at least under our profit sharing model.

Now with regards to the profit sharing numbers on it.

May be worthwhile for us to touch base I'm off line to try to tie all the numbers of together.

Stanley doesn't have the fourth quarter calculation from last year handy, but based on what I can see from earlier. This year. It was much more of like between the.

3.2% to 3.4% so it's nothing that hired Michael we're sort of over seven but that just the is probably something on nuanced in the calculation, but certainly our new hasn't the following the dramatically and again.

The recent armato, while we don't really need to give anything to the bank's per se.

Okay. Okay. The action channel, we can discuss offline.

Second question is on the.

The process of matching alone.

To the bank back now and I know you on explain this in the <unk>.

So let me ask again.

On.

When you see the low ninetys acceptable.

New York, scoring criteria.

On suppose the border what is also satisfying the criteria would you buy more than one.

I mean partner on.

The you select which from department of the non goes to.

And then more options of choice does the funding partner had cash.

When they see more then yes on all going to see that look you know youre, sending me and on 5000 you on the on I can take fleet housing or youre, sending in on 5000, new on loan that might be.

But at the other thing.

Before proceeding I would like to get the 6% from these customers.

How does it work and if that bank sees no.

Yes.

There's a lot of the next one or is it should indicate what kind of share.

On the final question on the I didn't get the you Colin the little big save on person on each loan.

Okay, let me translate that the for the team. So the Sunday that has reported net.

The sharp pull LG of matters in the litigation the that's on the on the bigger sheet on that other than other millions of sort of okay on team or your team and just the go on it because the compiler which on the.

I think we are setting up the Luna the alignment of I Wonder can guide on the merger.

The majority of the world.

GAAP net on the Dupont Italian other line.

Good for the Matt Gosling from.

The much anything in the sort of true gate nijab, the Dupont because some of the unpaid hotel or maybe the coding founder billings on the go smell the current took.

The mail the true to other transit true jazz all of the case on a good day.

The issue, which tend to sort of will be on one channel with the l. Sanchez when compared to the non essential.

The the or the come down as two of the circus allows us to the debt out of the founding member of the pension.

On the ruble and the.

Great and the eager to begin with on the interest rate apartment jeopardizes the answers the charging file as of the OCA. The as the downside of balance sheet items. In America, then the very hot on the or maybe it's really on the okay.

Below the cost of eco negative items of heedless along with the.

Well take the when you would hope it items.

So simple woman to the total adjusted for pets, you'll see good of.

Also one of the Youre or the local price will that they did the type of about the value that is with the consumer.

Typically collections on the Olympic Winter, So think how to put off of the recovering from the greater one quick can you put all the single Segal of business on essential the yellow chicken houses on cellular the merits of.

Well the Dalai away both all of the your quarter ago, just other straight price on the looking at other than good very good day.

So the other important dollar per mendonca EBIT in that took into the whole of happy because the income told the E. The price book of the enjoy impede the invented the level of keeping it lets the give up so well then the little caveat no relevant good day, the other than a year ago either in sales.

So we don't talk a bit of both ends of the the thought of what do you see the duals. There that's sort of what would you see the that of course in dollar will likely won't be sufficient of so one of the can use of it in none of that was solely due quality FID touched on it kind of sort of the others. So to the solid occupancy growth, how current assets or the equivalent GAAP sort of cigarettes or so on the the dumbbell to Diana.

So 'cause or capital diner, not just of the typical of lately you know for the other than the the you guys just on the go forward.

Yeah, So a standard.

Let's say once the emphasize the is that when we connect the user to the funding partner of the at the one from system, It's a very comprehensive and complex system.

It's based on the all the different funding partners of requests and all the things that they have included into the system emphasis is definitely on providing high quality the customer service, which mean speed so on that basis.

What will happen always is it would be a one to one so there is no syndication theres no sweating sort of always it's a a one to one of them. Obviously there is no co lending.

So there is none of that the going on so thats the big picture of logic now also within this is that there's other considerations as well based on the potential profitability the interest the risk we.

We also need to the side what is perhaps the most appropriate funding model to use whether it's a loan guarantee profit sharing the et cetera. So there's a few different things going on here.

So to answer the color kind of on the other it doesn't make good it will see those other it was the were centered sort of that they do a couple of towards the tax on the Chinese So total woman. They definitely go though it will as it whether you go to Jared So do they look our comments of the so the 30 and good day.

The co pay over the course of the list of the holiday. So some of the focus on average Hogan tuck under the look of what is the yield on the way collagen thing of the you're transferring your way to the focused came up with either kind of kind of with the so it's a little later on if he goes on orders. So hopefully you know what let's say the color it's a woman.

Take capital of all look I would tell you that if they say that you'll get the from what you just so the one thing it's only on the yards now the kind of which about the begin a bumpy, let's use the word I am just little interest on the receivable, which is the only just a limited by the did ourselves and the relative to take on Delta New My first of all both on a Sunday, So I'd say, the which are in the beginning.

So to the deal so you could kind of the good Eagle also you're from the her talk of a good quarter.

Maybe sort of which of the it who many of them. We can see the line in the in house, although by way higher than the into use of lots of the will the call related of keeping Angela put the new project. So we hire from what we've done the.

You see there that the good eagle hobby countries of the off with other bigger bigger if you.

Do you go from day, but she is on the they would of course.

So with regards to the funding partners the choices. They obviously also have the choice to reject the credit data, we provide and many do but.

Of course of different new partners have different rejection rate. Some are very familiar with our customers wherever you are familiar with the risks and as a result, they would have lower rejection rates from our for whatever reasons more risk averse and we'll have a higher rejection rate and the as you know air from a the jacks the credit and the most media.

He goes to be and then the it after that for whatever reason somehow nobody assess the credit then obviously, we will actually have to close the transaction I think it's also worth emphasizing that maybe and this is not necessarily a exact comparison, but maybe it's somewhat like on the right.

Moving platforms DB here in China, there's a lot of different calculation that someone of actually goes through when they hit the cap rate it could be something on the platforms on the outside of the direct platform et cetera.

It depends on the distance of depends on the profit really et cetera. So the satellite quite a few of different things going on that so it's quite complicated in the background.

Okay. So just to be clear the day, the banking only accept or reject the proposal and it comes from you.

As of the them.

The answer than just a larger figure shown the houses I'm wondering how kind of how common the showers from the trigger should have on dean of I'll go to true that you're trying to other I.

On the beating Dinesh on the cash on on the huge on lunch on how to show you how to for the China should the edge of agenda, but after the year the bridge in the automotive.

As a whole I mean, all of these discussions have to occur before the funding partner is put into the system. We have the basically discuss the parameters on events that way that when the actual transaction comes in the.

The second thing on the customer experience as fast so in essence of the can only be yes or no.

Well that was on good she is of course, how eventual tico samples of coal types of it'll reductions on the solar some of the totality of of a GAAP kind of Saudi book up so it's in the quarter of shell. We're looking at how you guys. The dental work on the applicant metric then get out of the total true.

The two pounds of how much of that other from the worship local assuming the cohort is into volume, but think of wasn't much of the U.S. A total of the arguments again, let's say the will continue on the attention on the sort of assortment digital could you. The bullet so woman, putting new houses social you should have the Asia sales through to the abortion well, let the hits was income of working capital.

Of course with the bundling of private he's on permanent because of the he gets awarded solar powered by the two cents of Delaware deal flow.

But it will take the pick the to the yet one of the one is the senior team don't have the fifth rather yes on the originals you got the plane weighted.

Well net you want the if they cannot be the sort of been less total peoples that eight of which of course will get orders to quite a total equity it will get the quite the agenda.

I think Jay also wants to add to that.

Typically when we work with your average finance show institution. They begin on our platform with the high rejection rate because they are quite conservative not surprisingly and also they would recognize and growth we will recognize that the efficiency there is not the highest.

Then we take steps to help the increase their efficiency on also developed there on the remote control systems. So this year, we have a specific.

Our team that is working very directly with the banks on improving the risk control system and also increasing their efficiency to help them of preserve the quality of the assets and the also helped them there will be a model and the data and we can see that we're making actually good inroads.

The it may become a bigger part of our revenues in the future.

Okay. Thank you.

On my last question.

Non of the generation volume this year has been very good issue.

And the growing quite nicely on last year and last year. The change was a very very strong growth from the previous year. So I would say just one thing you can from my impression about your customer profile.

In the my impression based on all of which actually over the years is that you have young of.

College educated customer cohort well qualified for the six year old so.

Has there been any change in died on any deviation are you moving up in terms of the age profile or going more into tier two tier four dxi cities or the less educated maybe going into polytechnic other than college.

Maybe starting the guys on the on the customer price sites.

The change.

And as New York customers, each and what is your value proposition to them because of.

So the bottom line unsecured on from a bank.

Yes.

On the.

Why the that's true.

Drilling down on the us out of the meeting on the them down from the took the they did mention entering into the guy on the true pushing the amount on there's sort of on the cohort.

All right on the trailer that seem to know of them to change the other on them.

Now moving on to share the entering the so Gordon on governs.

The guidance Andrew.

So the Australian identical quarterly range once again the two.

No there should be on the me on the.

Right in the amount of such as associates and soon I can do it.

One thing that the on swap. Thank you I saw on the train.

Sales of ice or the some of the and then how many entry of Allomap a woman on.

On the food job of America into the ideas at home income kitchen of the go forward the got the with the Tapia network on I'd.

So one of the cohort channel told the it ISO has the E.

The intangible ways, that's the woman say using one of the thing into Oreo changing how the film. He left of is how many new union. So that's how the inside the against the line here you share fighting since this was the good and the teens.

The means of so let's use of the coaching chips is that part of the if you did in the quarter kind of romance and know how the double the level of but that they will get absolutely one of the door, but you don't pay by the other units look good in Asia, There's Palestinian Lego so net well inside the other Cook inlet and whether you got three more summit, we feel like Thats going on about a boomlet. It said the bulk of email.

One of the cohort two of the conduct of walking again, EBIT, So you'll get the pauses day south from the.

So I kind of stuck on a sense of that.

So of course that with all the.

Adjusted the attention of woman from watching some of the they've got the he goes reveal any content going in price of the pinnacle first of all many of the federal the woman the you'll hear the located to do bogey of India. So think of where the tender the nuclear go how the bulk of.

So you're absolutely right on the core profile of all the young customers and as the Ho up on.

Customers have changed a little bit.

You can imagine some of the customers at the end with us the longest five to six years quite often the they are now very very white collar and sometimes the they might even have on their own line businesses or operations of the work and they may impact them use on the credit that we put the pipe for some of the user activity.

So on that note. The we certainly would potentially need to have the greater scale and more services on that we also see that based on our experience and our operations and the motto and our ability to assess the managed risk data. We now do have the ability to move towards the lower tier cities too.

Encompass more different types of customers were different degrees and diversified. So there. There's also that going on as well and certainly at this will help continue to improve our growth. So hence it's driving our growth and it's also driving our ability to continue to drive our growth.

Okay can you share some.

Based on you know about what percentage is now outside of safety on one tier two cities what percentage is outside of the <unk>.

If I guess Ixia college educated kind of.

The group.

Okay standard, but this will have to be the last question is on your side.

Let me translate from the team.

I guess or the back of the Korean outdoor finish on I mentioned the both of those.

So the rest of this sort of those assets and then the sentences.

And as much of added.

First of all of our one the other has kind of from here on our mentioned like any initial two of our new integrity to opinion way of with Union Index article the situation yet.

Yeah, So I think that might be a little bit too detailed the at this time.

And just very quickly.

Our average age is actually still lot of 25, but I think we can get into some of the more details later.

Okay, great. Thank you very much appreciate the active customer the 25 debt side. Thank.

Thank you.

Your next question comes from the line of Steven Chen from high touch on International Please ask the question.

[noise] sick wondering why don't you done a lot of we only only on the one do you guys see centuri weighs on one you can Tony can you Donald I think the tangible base.

The $2 per annum.

And then secondly, just on do you do the instead of the tangible be new you mean, the current until your two of the cohort C. O first of all the T. go no. It wasn't the new days on to your children are you gaining share among the way the boom.

Moving on to the cohort on when the just on T. Lynn.

She also OHA, hi, actually true to use the sun the idle.

I do want to either so some of the tied to the why not wait on what do you guys see two hotel we like the.

So you could see do you go horrible on.

The whole high you don't see centered way, it's not just true.

One of you see the do the I think the tangible basis some of the sound one on one she's dying out your what you see the ruble on Monday, the only goes away the credit cost. The the concept was just volume tangible be Ci leave the pinching back on the yield on a c. two of the economy and go Oh Gee do.

No.

I think the true you'll just the cantone sort of doesn't need the scene.

Oh, the common the two times your house on to be down what is common tangible book to Bill James How are you doing.

On the goes on do you do the new leases away the seen the Kobin Oh, the C bench and the two co would on line.

Well, you know Toussaint woman Sunday due to stand the test on a tick.

Because of the D. The one do you does the one to anymore. So many of kinda, though does.

Uh huh.

Out in the Sun. So you do one do you see all sorts of did the P.J. sees on take somewhat of your needs.

I see do the cheese is always eating out on.

On the findings on.

My question is just to follow up on the on the provision charges you mentioned that.

True he will rise in provision charges in Q3 was partly due to use some of the in your earning resumed provision charges for some of the old customer I just want to clarify my duties related to some weakening in the asset quality of our delinquency all four of these.

Oh customers or is it all related to prudency EBIT is we'd like the two prudent attitude will be potential of right, but in the coming quarters and also from a credit calls concept, which is defined as the provision charges as a percentage of average loan outstanding.

Do you think that the.

Q4 per week or the coupon of credit costs will likely to return to the Q2 level.

Or you will just stay at the two free level. So that's the first question and then second question just the.

Customer based on my own estimation on the customer acquisition cost per had seen.

Seems to declare value in Q3 was the stats in Q2, a wants the restaurant there will be high M. Do you have any guidance for Q4 on the trend of the customer acquisition cost guidance.

I'm going to growth in the far we'll Miss a pinch New York with the introduction zone. So judging from the type of the on anyway. It's just it should of course, she doesn't equal from the or so.

The supports the least the thing for the business is isolated to the shooting in the.

He is accused of the satellite into on the operating book.

Not at the top that each of which the genetic good the you could see on public has the should okay.

On San Antonio you conducted the kind of type of the whole that to share that sort of thing.

Moving on.

Okay. That's the till the fourth day, the powerful of manpower as the way I thought about it that could you kind of has ample free the supernova.

So the Stephen on the of provisions the I think we have to monitor the customer behavior of very carefully and based on the.

The data that we're seeing from the old customers.

Which are primarily the customers that we acquired in the second half of last year 29 in Q3 Q4.

Let the online advertising the method the customer behavior of.

Requires us to be a little bit more conservative I think in the fourth quarter on we'll certainly again the fate of other similar approach I, just see how the customers per se.

A weighted on the Cameron Chew on major future for Chicago's on his role on the automation management team.

Jason you from who cannot do push the without the.

Giuliani, either Sean will kind of share woman the blending percentage, it's our job tangible form and the four core.

Cash on the going off of some of the dry bulk of daughter Fi only share view of the hotwire attribute of the Hawk high out of the towards the dollar were true Judah yard. She told sort of match I mean, you got huge and while the on an opportunity to win the handle your share you touch on the EBITDA only the Q2, John the harmony of the current door the current multi line.

By line quarter adjusted on Board the gym Cohu field is simple we don't guide on the final on me your mail.

Cautious on although on the tickets on T. hundreds of accounts your standard actual hit on the whole couldn't figure out on the trees or try to the hatcheries done the dean of focus on the I'll try to the ilmenite to keep going back a couple of that comes out I take on how women of course features in the high profit on before.

Yeah, I think Steve as you know that our customer acquisition strategy relative.

Actually has been quite stable overall in terms of our approach and the type of cash that we would like to get the customers on.

So you'll never see any new really significant rise or any significant ball on a per customer basis.

You might see something like what you see.

In the current quarter, it seems stable or lower.

No the very specific reasons for that but nothing in terms of like of particular trend one way or another so in the third quarter on it was a non small parts of the fact that we're using a less allying ads and the more cooperation partnerships.