Q4 2020 360 DigiTech Inc Earnings Call

[music].

Yeah.

Ladies and gentlemen, thank you for standing by and that's up to.

For the Cheesecake E G.

Fourth quarter.

Earnings Conference Call Inc.

For today's event is being recorded and this time I like to attend a conference call over to MS. Mindy do atherectomy.

And hate Mindy.

Thank you.

And welcome to our fourth quarter and and Bolivia constantly.

On to 'twenty earnings Conference.

Paul.

He said already half a day and it can be for.

Oh I have website, joining me today I need a white.

And our CEO and director, Mr. Alex <unk>, our CFO and director and Mr. Jong in Yang a Seattle is small.

And in the prepared remarks, I'd like to remind you of the company's safe Harbor statement.

<unk> picked up a lot and he thought was on inflammation and materially Stockyard and income can't forward looking statement is a long term care acne and projection and therefore, you should not place undue reliance on debt, we're looking and saying that you bought a inherent risk and uncertainty the cushion that and then both important factors could cause actual results could differ materially.

Any forward looking statement for more.

Information about potential rate and uncertainty piece reports, a company's findings and he sees us.

And could you sketch out now to a non-GAAP measure history book to our earnings release for the Asia and between non-GAAP and get with that unless otherwise stated all figures mentioned are in RMB.

RMB and.

And the call over to our CEO and he thought watch them.

Okay.

Shame on me.

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Yeah.

Hello, everyone I'm very pleased and go to court and another exciting quarter, we close out the year with a net effect of a record breaking results and continue.

And the growth momentum seems twenty-twenty killed for.

Just a tonnes you do a true for a phone call them and a little bit Joshi, <unk> syndrome, and back and Jonathan.

Sorry that you and Tim don't go do a biopsy for me at the number on a majority of cheap.

Total volume Joseph children, and so on and Sundance.

And we've been done, but I understand that your non-GAAP attunity rate not all should a Sunday E b can be up and down back in Geneva.

Well cared for and it took on a little but can you take that and what 16 9 billion up 29%, yeah over a year outstanding loan balance increased by 27% year over year to.

Continuing on to a point, a 1 billion tons on a bad.

And at what point do a 4 billion a go.

And a 9% year over year non-GAAP net income was 1.31 billion, 155% year over year.

And then your tenure and spoke up on volume.

A lunch and somebody with a body.

Nice to be a women's union Chantelle junior debt.

Good day, Thank you hi, a go to occupy it.

And in your opinion, a solo ebay essentially we don't really necessarily see non-GAAP to me right now, though a standby.

Can be a pin down, but I'm, just saying goodbye.

For the volume.

Oh, that's a patient with $246 eight bit and exceeding the upper and all of our guidance range, which was 242 to 240 for a beat it by $2 8 billion total revenue was $13 6 billion at 47% over a year non-GAAP net income.

Yes, that's great.

A bit and 38% year over year.

Yeah.

So each and dilutions and UN penetrated there on that.

From a and this will mean a woman from question on your free time and not that and Hugh.

From a Google Hungary and show you a few time ago wouldn't be even in English.

On the credit box, you can see when J J M.

Quotient is running well and when do you want the kitchen and so you could do it on quite a quick which you don't show a year later.

And it takes them to hope for them and Daniel and I could not have been done.

We delivered outstanding and without despite a challenging and yet clouded by the COVID-19 pandemic.

Good day.

Important and Pac man to the resilience of our risk management system and the efficiency of our overall operations, we have more calming and now that we will be able to net with animal and a solid growth. Meanwhile is without the effectiveness of our strategy and we expand to a diversified customer.

Okay, and then within channels, we're expecting accelerating growth in 2021.

So that's how she and talk with them done and homes and the constant and sit down and Cleveland for them and the ability of a sandwich them well.

From there could you motors and your email and get them basically debt free.

Capital light and motion.

Moving to a Joey.

<unk> tonnage per day.

And so a human Tangier coupon climb that capitalize on which the <unk> you can talk about new ships.

And for them to move toward a path petition for new women debt generally could you tell me a shadow that.

You don't give it to them.

Well I achieving.

But on wells in key operational and financial metrics, a quasi on earnings and outlook all a business also improved meaningfully cash.

A lot and other cash solutions and new milestone contributing 34 point, a 1% of total loan facilitation and in Q4 right.

Recently, the bis ratio reached.

And for 55 per cent or a monthly basis.

For all the quality improvement of our earnings indicate that we have succeeded in a milestone and state of past Dreamer strategy a great.

Well remember and pension that feature.

Either a months does that take a mortgage debt.

Oh bearing a child.

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Wilmington, and tissue diners aren't getting Dunkin' donuts for him and set up.

And so they've been taking a great keeping things at a cookie Moshe.

Despite a rising contribution from a capital like we have a success.

Pending the although our tax rate around 4% by optimizing a contractual terms with our finance and the boosting operational efficiency going forward, we are more determined than ever to further advance this strategy to build our business on a technology driven models.

Thank you Andrew a union that day.

And as a manager and London vehicle and you don't have.

They're a bit on Yogi women and patent you a gunshot.

And I'm wondering you didn't hit a full suite that has a fidelity and women for you with a we went from in yoga and so a dollar it's a huge angeles schedule.

Joe do you go on your end.

Turning to the table on.

Yeah, we got here for you on yet.

And we enter 2021 and on.

A macro level, we are seeing hurl rate from both the macro economy and industry policy and.

And the macro economy recovery has continued and we saw stony mountain and operations.

200, and in particular, all doesn't need a carefully outperformed a normal seasonality during the Chinese new year holiday and the government's day post guideline increased business activities at Dropbox.

Since he treated for that Jim language, and do them and a any time soon.

Since a year.

Okay.

And can you get.

And then they go and get it is hanging on.

And Doug.

On Fox.

Both auto and <unk> EBITDA.

Kidney.

Anyone and taking on Glen you bounce on Doom and didn't you saw should deliver a diverse income potential.

Our final and on the share with you Couldnt.

Yes, what you told us should have a again.

And so on where each will get a women to share with contingent book both ways for them.

On a regulatory brown and we believe that the regulations roll a recently either have minimal impact to our business or in some cases, even created favorable environment.

Our top class on us.

Having a minority now a new ruling from the Super and People's card removed, a more restrictive lending rate cap for our business and.

New guideline on direct lending and a micro lending has a minimal impact on all of a business and our exposure to both is quite marginal.

And on the other hand, China's antitrust and elaborate and push my suites from market share away from the industry Giants, which will bring us.

For market opportunities.

The xiaomi on both I guess.

Hello, Virginia, and the tier one.

Net.

And it was some of our plans for this year.

So that you can do a little kindred <unk> credit Suisse.

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And the change on you talked about for Egypt.

Bigger change with debt.

<unk> hundred and we can take a 100, maybe a coherent machine shinko Joanna bonus Sherwood for Ya.

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With the pandemic well under control and economy, expanding we will take a more proactive brown savi.

Yeah.

We deployed a lot here.

And so did our online marketing system.

Thank you Tiffany.

All right.

We have also if they were not and.

Experienced the offline team.

Currently the same has come to a building.

If you're a 51, 5% of the total transaction of new borrowers compared to 2020, Q3, B pocket, a virtual credit card per day, adding over 620000, new margin and the process, a formula and transactions per month.

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<unk> is a big holiday in high frequency consumption and market, such as Mcdonald's and KFC.

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Agenda.

And your question and then.

Yeah, and then we could and again sometime in a donation, but doing a woman.

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Quite a shield and credit for a much different kind of hog a year with a tender on tenure and call them and the team there and you'll share.

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Book.

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Dig a murcia since you've done and they tell you it is and David actually Wynwood and Daimler.

And then searching for a short one yourself.

And good for bill can be earning and SV event you intend.

And so dialed that back into balance.

Two from me not as bad debt.

A finance model has a.

And our competitiveness and to provide a strong growth.

And that's coming to partner on the choice of this ore body sometimes happen.

And China for several reasons.

Correct.

And with other platforms on this there are specific Hudson's Bay.

And now.

Free.

We have been serving for either bank loans with low medium and high price option.

This has allowed us to build a capacity to operate on a y.

Back on track.

That study.

Second the fact that we do not operate as a narrow based <unk>.

With a Catholic by Alistair and allow us to work with at a consumption of capital without a potential conflicts of interest.

Sure those traffic Catholics hip equally a strong need for monetization.

Our outstanding with Magna and capabilities and generate superior returns for that.

And it also makes us an ideal time, Inc.

We believe the need for embedded finance the rate will increase among consumption traffic capital in the future and we are very optimistic about the growth prospects of this business and our competitive edge and.

So far we have cooperated with.

And one eight leading platform including.

BB Matewan, Xiaomi finance, whereby finance funding and name a lucia with a few more in the pipeline such as J D, China Telecom and China Unicom.

On the transaction volume on the lease model.

1 billion.

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50000, new bar with a poor quality of life.

Both operation metrics showed about 100 wells compelled with the number in October 2020.

It's a good itself isn't that do it so each year.

And so and that we're getting from it.

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Ladies and humans and wish him and getting down to Savannah.

And it will go from clients, who are bad she was on mute.

It can be out and you see.

And on that in July and back that out.

We'll see.

In addition to consumer finance accounting and law has gradually become a new class and games.

This is a blue C market.

<unk> 99, zero, Trillium and margin site and nearly 50%, but you know what percentage.

The amount is on that.

Survey and the SME market is also consistent with a government policy of promoting financial services and accessibility and SME.

And I'll go back to my Bank and has and that's a way back a bit balance some bad practice in this market already and the.

And a considerable barriers of entry leveraging our deep really a partnership with KCB will become one with a very few players at a capable of serving this market a large scale.

In addition to outstanding risk and management of a couple of a bit of a therapy.

A robust capacity and funding.

After my position allow us to quickly establish a competitive edge in this market.

For SME lending, we have the bad debt rate customer acquisition channels, including through that survey panic offline customer reach and all lines have and position.

So far we have cash.

Around 22 zero, leading service provider, including you'll know and zinc.

And then.

For our offline channel, we now have a sales team about 1000 and plan to expand and a ramp 2000 this year.

And you can see we have established a set of diverse.

And by the customer acquisition channels and SME business.

Obviously, we are a pilot running a big channel and a mine incurring a loss performance.

Good day.

Whilst a pilot completed we are rapidly scale up the business without a well designed product and a rapidly available funding.

Reversal for a total up by a 140000 Barra and received a credit your lifestyle SME loans with total accumulated loan facilitation over 27 three bad at.

And SME loan balance increased by about 200% from October 2020.

So Devon for it.

Yes.

With a go at Carlin and opinions and once a final Dani if they hit a human.

And on which we can share it with you would see a woman that under a had a temporary issue and the timing for when you go to a conglomerate engine.

That didn't go on here as a whole lingo and back out.

Hill.

In addition, as we mentioned earlier and it might be some spill over market alternatives for us as a result of the ongoing antitrust and deleverage and pushed by the regulator a base year.

A replay our team is exploring some new products catering to a broader customer.

On a feature to help to share more updates with you later this year.

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And do you believe a cheap.

And so did you hear a food beauty and wellness visit a route.

And the other partnership.

So this is our broad strategy for 2020, one and now and to our long term business model upgrading.

Our region was a internet company and our transition into.

And Joey empowered a paddy power, we always take a credit risk is a natural evolution in our comprehensive balance of it.

Under a capital light model, we are currently working with 39.

And have another 22 and the pipeline Inc.

And care for all.

A mosquito.

And this model a company for us.

34% of the total and a recently this ratio is 50.

50% five zero.

That is plenty of capital and ratio to continue throughout this year.

Meanwhile, we also aim to keep our take rate at around 4% even with the mix.

And hence.

Intelligence credit engine IV, a smart marketing service products for a financial institution.

Also experienced a rapid and browse in terms of numbers of customers and a transactional volume.

And I am SaaS product provides.

Risk management and survey and we have already.

By contrast, with 19 institution supporting accumulated transaction volume and about $16 seven bad.

At this there is a growth our income from non financial services exceeded five free.

Five zero percent 50 per.

And out of the total.

Already.

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Guidance in New York.

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And so the green, where you a especially on a day.

And now we're still young.

From a on a question for on the heels with a category.

With regard to our Spanish a partnership with KCB I believe they are a significant synergies in key areas.

Creation.

For the partnership.

Doug maybe you may have and expand the reach of the capital light model. This will not only increase the overwatch scale capital light, but also have a pen datacom Pat touched on with other partners.

Thank you.

And that may provide much needed for magna and capability to pay.

Casey in their non Shelby and related business.

Currently <unk> is a pie and our art and science and they are working on with a couple a major platform. This is a.

Alright, and Seth S KCB and not only drive the growth on our freedom volume and income but also a.

A good example, attracting other potential R. M Stephens Inc.

Hey, Savi.

Provide us a unique competitive edge in SME loans with the access of still have for all prior to a rate data.

To sum up our synergy with KCB brings you need a camera value.

And that there is a capital light model.

And I am sad and SME lending.

Thanks, we begin working together the outstanding loan balance and her leadership as a bridge for two five beat it and accumulate a loan volume reached 5.65 feet and we.

And actively advancing collaboration on other brands as well.

Early on and yet the bookings on a union and chemo Dania and that you've done the Yodlee and Fisher woman day cyclical and Beach book.

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We both with on the Houston.

2020 was a highly unusual.

And the yellow extremes backpack.

Next day even.

And you said than before.

And as more than ever and our relationship and have expanded and now you know a stronger market position than ever.

Looking ahead to 2021 without a capital like on the operating and market opportunities and debt retail our shareholder with Badger business.

Jumbo and quality.

As I mentioned on and sample, which is a really.

And I definitely think it.

It is healthy snacks, and I hand over to Alexander <unk> and St.

Thank you Michele good morning, and good evening and everyone welcome to a quarterly earnings call. So.

GAAP supplied I will not go over all the financial line items on the call. Please refer to our earnings release for the details.

Strong business momentum continued in Q4 and into the new year as consumer confidence and economic activities remain on a steady upward trend.

We have experienced robust.

But the answer from a demand for credit along with a further improvement in asset quality.

Total net revenue for Q4 was 3.3 and $4 million versus a $3 7 billion in Q3, and $2 4 billion a year ago revs.

Revenue for credit driven service kept heavy.

And so 256 billion compared to $2 96 billion in Q3.

The sequential decline was in part due to facilitation volume mix change at <unk>.

Light contribution increased significantly.

And a decline in take rate as we lowered our average interest.

In Q4 to 25, 3% from 25, 9% interest rate following the Supreme Court ruling in late August. However, we are expecting interest rates to gradually recover somewhat throughout 2021 as the for time LPR rate cap.

Just rate no longer applicable to a institutional lending according to the Supreme Court latest judicial interpretation.

Revenue from credit driven and services was also negatively impacted by a one off reassessment of early repayment desktop.

Revenue from personal service Chatbot.

It was 782 million compared to a $748 million in Q3, if you recall in Q3, there was a 115 minute one time reversal of previous charges related to certain loans risk performance versus performance benchmark set by the revenue.

And I guarantee agreement between us and our partners.

Aside from this reversal of a charge in Q3 for Apple to Apple comparison, the sequential growth a platform service revenue in Q4 was approximately 33%.

The growth was mainly due.

Due to higher volume.

Revenue share kept light model as well as better contribution from the ice model.

And on and the underlying take rate for the platform service also improved in Q4.

For the full year 2020 platform service revenue grew about 80% is kept light percentage contribution.

On total volume nearly doubled.

Total non-GAAP operating expenses.

Excluding provisions were up five 6% Q on Q and essentially flat year over year.

The sequential increase was mainly due to increased and facilitation and volume and sales.

Marketing expenses.

Average customer class acquisition.

Acquisition cost per user it was proven credit line was about RMB 198 in Q4 compared to a 172 in Q3.

And that's a micro economy recovers demand for online traffic inquiries.

And significantly and Q4 was a seasonally high demand period for online traffic, particularly around intense online shopping and events such as double 11.

For the full year average customer acquisition cost was about RMB 175.

We will.

Inquiry to use lifecycle ROI as a key metric to determine the pace and a scope of our customer acquisition process. This approach has enabled us to generate satisfied for return and to mitigate major potential risks.

Non-GAAP net income was.

<unk> three 1 billion in Q4 versus $1, two 9 billion in Q3 and $516 million a year ago.

And we once again set a new record and quarterly profitability, driven by higher precipitation and volume and a noticeable improvement in asset quality.

One of the subsequent write back of a prudent provision.

For the full year non-GAAP net income was $3 8 billion up 38% from 2019.

We're very proud of the achievements, particularly given the challenging market condition in early 2020.

And as a further demonstrates.

And your guidance of our business model, the effectiveness of a risk management and.

And the consistency of our execution.

Please note as we transition towards a more technology and business model the structure of our financial model.

Well also gratulate.

Change.

With an increasing contribution from kept a lives.

And other technology and solutions total revenue growth, maybe not as fast as a facilitation and volume growth given the different revenue booking methodology between capitalized and kept habit.

However, the quality of that.

And revenue will improve and the operating margin should gradually expand along the way.

Such overall profitability growth should be more or less keep pace with a facilitation and volume growth.

With strong operational results and increased contribution from <unk> in.

For our.

Our leverage ratio, which is defined as risk bearing non balance divided by shareholders equity further declined to six 6% a six six times from seven four times in Q3, and nine five times and early 2020.

We expect to see continued deleveraging and our business driven by accelerating movement towards top line model and solid operating results.

Meanwhile, our provision coverage ratio reached a 478% in Q4 compared to a 400, 676% in Q3.

And a 401% and early 2020.

This was a highest provision coverage ratio in our corporate history, reflecting significant improvement and that's a quality and our prudent approach in estimating provisions.

During the fourth quarter, we continued to generate a strong cash.

Free cash from operations and approximately one four a bit.

Also during the quarter, we deployed approximately a one 7 billion cash to fund loan origination under a micro lending operations and additional P ABS assets.

And as such a total cash and cash equivalents.

Cash flow declined slightly to two.

And to $7 7 billion in Q4 from seven 8 billion in Q3 non restricted cash was approximately a $4 4 billion in Q4 versus $4 8 billion in Q3.

As you know a significant portion of our cash was alley.

And just to secure that deposits was a institutional partners and the register a capital up a different entities to support our daily operations.

Well, we continue to generally strong cash flow through operations, we will also proactively deploy cash to expand our business and that.

<unk> and <unk>.

<unk> technologies and satisfy potential regulatory rate requirements.

Believe that sufficient cash position will not only enable us to compete and ever changing market, but also position us to capture potential growth opportunity in a market recovery.

Ali Let me give you some color about.

Our outlook for 2021.

Well, we intend to keep our tradition of prudent decision, making and.

And the business planning and we're encouraged by continuous strong business momentum so far in 2021.

Microeconomic economy continues on a steady gross passed.

Along with some regulatory clarity emerges.

As such we now expect total loan facilitation volume for 2020, one to be between RMB $310 billion, and 330 billion representing year on year growth of 26 to <unk> 34 per.

As always this forecast reflects the companys current and a preliminary view, which is subject to change.

With that I would like to conclude our prepared remarks, operator, we cannot take some questions.

Thank you we will now begin the question and session for those who.

Chinese economy as a question and Chinese bus followed by the English translation yourself. In addition in order to have enough time to address everyone on a call. This keep to one question and a follow up and then return to the Q is that for questions. Thank you.

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Plus we have Jacky <unk> from China Renaissance Jackie a question. Please.

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Hi, Glenn.

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So let me translate my questions.

And so congrats on the strong results I have three questions to.

Two class a number one is about our loan guidance.

So.

We gave a very strong for your guidance I just want to try to understand the rationale behind the guidance.

A do we expect a.

A larger budget for sales and marketing.

How much contribution was from the a M. S E lending and what is a run rate for the first quarter and so far.

And second question, it's about the a customer acquisition channels.

A.

A trying to understand a.

In terms of the channels, a how much well from a well.

B from the.

Cooperation with leading internet platforms.

And as well as the offline a sells a.

And also the a.

Traditional.

Online traffic channels.

And third question and it's about our take rate.

And of that the capital heavy model, our take rate a was a bit lower and the fourth quarter. So a.

I saw a probably the impacts from a lower APR and also a pretty repayments.

Impact just want to and understand the rationale on about the lower take rate and what's the outlook for this year a 2021 thank you.

Yeah.

Do you go and check with you on go as you will note rate on here and I Hope you found a way you might see a central corridor.

Yeah.

And when you think a guidance.

And so a human to 10 day issue.

It goes with and got going on and then you're good.

Oh that you Didnt sound continuum and <unk>.

And when you go to average or Australia.

And I'm sure it tends to be a good dementia due to.

Did you get a chance.

Doug just a woman and weight.

And can you and Vincent as you go.

And when do you who didn't work and you can do that and see a woman.

And with as you can do this for sure I can do they're doing it for me it from there.

And then done indicates just switching zone.

Thank you Jackie for Apache and perhaps a quick question on my hand.

And there are different too and a lot.

And our CFO and see a caveat that a question.

For the first question and Uh Huh.

On a major logic for a loan guidance.

We are a feeling based on guidance.

And kind of hearing in the past few and yet we have successfully achieved and began to browse and complete.

Considering the macro environment and the industry.

And with calorie and Florida, how you can think about them and that's how we get bad debt plenty for for standard, 36% a year a long origination guidance.

And tell me, what you try and whom and beyond cancer as a sort of and how did they get pulled on a.

We're looking at a downward tissue Boucher yeager.

And from how do you can you walk step.

And part of Wynwood.

For sure yes.

And somebody took a bad case, one pool on the ship Cumulus would it be a controller and for you on.

And you get a CP has a 10 men and women come and.

Hum.

A good.

Sure.

The fifth and either you could be either.

So you see a woman could you kind of Goldman debt will find it a good on that you wish it wouldn't.

And your home and they can go to income.

Well.

For.

Third point for.

For an hour.

For the existing tagged a might be a decent channel waiting on Mike and Mike have a town BCS lately on <unk>.

Great largely in terms of scale why on maintaining stable at a market vision card.

If you're a benchmark attract a home or a kit at some of our peers disclosed a C E.

And we have very strong competitive edge on these brands.

And then with you a kind of on what you've done and it was a good channel was a junior with union junk weight and that shouldn't be a hard eager and.

Kind of hydro on the teenage and when you know you got you.

You can show a fourth ship.

So it hasnt, yet and then go downward and.

And do you think a core crew agreement with a bad binge essentially zone.

They can't point, and we mentioned in my remarks, and we will add more assets and embed it finance customer acquisition channel this year and.

And our income last year, we will embrace a rapid growth I am on these.

And they see a leaseback the customer.

And you'll cut them out a well.

Cash from a funding channel, we have a country, Turkey right zero percent midyear.

And it's a good it's a bill.

Guidance for the heightened interest and assume the show.

And when they show a friend to me on credit.

You can share a woman you could share.

Sure.

The yield that degree on food.

And the men and throughout the day, you qureshi with oil and from.

And from cleaned up and they don't take a year.

And taken when we put you kind of had a young triga requests with a financial and anymore.

A woman and so you didn't and there's no issue he and she would you deem from.

And Qunar could you dig a junk we see good can you on kingdom and you could sit on and I didn't hear women and PD.

And I'm glad that take a.

And she English and and total by industry and some that you agree.

From a b b.

And third driver for our a.

From a standing BCA, Inc. S M and you lost.

There are a huge part of their growth.

Number one is trending.

And transition from existing high quality individual consumer spend a hour.

He has them a bank.

And.

The newly acquired S M and L a pretty nice.

In total these two price.

And all contribute.

At 10% a total loss of EBITDA.

I don't use a woman.

For push it went down for a bundle can do that and when do you go.

Sure.

And so you're going to them and that Joe Yeah.

And you'll see as a team.

Uh huh.

For a tissue.

And then they hit and you know as you.

And can do that she put on habits at a time frame on this.

And when that didn't wound on Aquino from cruise ships, and we generally keep them and.

And do the tissue.

Yeah, the way to go to a woman debt, but didn't see they don't have anymore.

So for the gross driver comes around and.

That's fair enough.

As we mentioned in there and what we are expanding our cooperation with case, a b and the ramping up these kind of assets.

Smart risk management of it to a more and more financial institution.

Thiago and he's just a woman and correlates you don't.

There's something going on here, that's different and you forgot.

Forgot on a human health.

And then sure.

And it sounded you don't hit them, sometimes its and the agenda until sometime to prevent you, though our home and Youll do some.

And some DRAM and essentially that's a good channel was a juno and shoot out woman does St Johns and she.

And if you don't you know you can download on this show.

And you and you won't kenobi couldn't go.

And on a home and there's a risk yeah, we're going to debt and I can do the him that you don't forget and beautiful and moving and offshore which did on tonnage and that's high frequency you could look into your bad.

Turning to a quick one for you the wisdom of a woman and they don't and Blue and.

A quick what you do.

And for Camden, and our diversified debt.

Petsmart and physician channels number one is a.

Oh might have inc, passing them on a position and they kill and embed it.

<unk> I mean bad debt finance cuts and my position at least that phase two contributing a 30% Acs and number three is the offline team.

Kind of a delay and based off Mike and contributed 51 five.

For example, a new customer acquisition and besides that the SME.

And some chairs and narrow well the ambition on panel.

So just hang on too she was on where that is yeah.

Our CFO.

And three well a drag for a thorough pattern.

Okay. Thank you.

I just wanted to add one a small color to the earlier questions regarding the customer acquisition cost.

And some other peers dispose of the Cps a.

Cost and we'd look kind of at a same logic.

<unk> and a same methodology to calculate it a weird running.

Roughly 40% below that number so is that just a small color on that a customer acquisition cost in terms of take rate for Q4, yes.

The Q for take rate, particularly on the and the tech heavy side was impacted.

A by basically three.

Or maybe two major items, one is really the interest rate.

A cap.

Causing the lower rate a as I mentioned in the prepared remarks a willow.

<unk> 225, three versus 25, 9% in Qs three and.

And so that.

A hurt.

I heard the take rate on a cap herbicide.

The other one is more like a one off item. If you recall a rotten November of 'twenty and 19, the regulator and put out a ruling a requirement basically allow customers.

To make.

Early repayment without any meaningful penalty in there.

So we start to change our practice along with other companies in the industry.

To adopt that.

But at a time.

And we get into the like a Q1 and Q2 up there's a 2020.

We don't know exactly how many or how much of the impact. This early repayment and we'll beat so from a from a financial.

It's a kind of a plenty or a content perspective, we have to put out a a best.

Estimate in there.

Back then the estimate was about.

And Ah.

Just kind a ratio we put it and that's about 12%.

And we need to wait for the for long cycle finished for this batch of a particular customer to fully understand what the real impact of the taste on will be a.

Once we get into the fourth quarter a keep.

Keep in my.

And our average long term is somewhere around nine months. So once we get the fourth quarter. We saw the whole a performance of the entire batch of a customer and a back then than we realized the actual a.

Early repayment and ratio or a discount ratio was higher than.

And then the a.

Our estimate in a previous quarters.

From accounting perspective.

We need to basically.

But a take a almost like a take a charge.

And to reflect the actual repayment discount a ratio.

Discharge and amount.

In Q4 accounts for roughly a 170 to 108 a minute.

RMB, so that a I would say, it's a one off a hit to the topline there.

And then a.

The third overall impact to the top line is really the mix change meaning.

Meaning like the increased contribution from capital light.

And the decrease contribution from cap heavy.

We do a back to back the envelope kind of a calculation for.

For every $10 a.

We.

Diluted under kept heavy model.

We'd roughly can make a buck.

$3 and the bottom line.

But if we wanted to make the same $3 on the bottom line, we only need a $6 and capital.

Facilitation.

You know a if you do the quick calculation, if we can't get to net states, 30% earnings growth for 2020, one we only need 10% revenue growth.

And to be a shot it's just because it's a mix change.

We will continue throughout this year and actually a pretty fast.

That's why in my prepared remarks, I asked all the analysts as lots of investors to change your financial model.

And it's gradually a move toward a.

And a more capital Juba model.

With relatively slower revenue growth versus the low volume gross but improving margin that drive the comparable.

Earnings growth versus the volume growth.

Yeah.

That's very clear thank.

And you'll see what anytime.

Thank you.

Thank you Jackie because we have Shaw from Morgan Stanley.

It's really a question please.

A guy here go anytime. Okay go ahead, what else you, Don or Josh Young buttoned down there a couple of them quite a tailwind for you going.

Sure I'll come on.

I.

And I was on the house, you're only a Tito just yours stayed it'd take a golf on the day they are quite.

Quite a bit of a turnkey wall and the Diego do you do your way.

It sounds like a hip wasteful no.

And on one hand that you had a just curious are you going to do a great aquifer at all.

A total should be all kosher and you may be doing a highly here talked about it on my own hydro and they don't.

They don't want it on and take without a from young no one day the total sure a killer.

<unk>, what do I take a yeah, yeah, BDO and Tony you go a day.

And I take a couple down to you, but they are on a Joshua is home definitely from a a lie to you on a take quite a while I'm not sure what quality content that you go out and sometimes you may.

Hopefully a call either on a sometimes can take on.

On a 10 Glenn a question you may tie you hear on that that'd be a particular.

And sometimes that's a good day and when they call a hung on.

Basically two questions basically with the a clear.

And I already on the interest rate environment, and I, just want to know whether the interest rate and how much the interest rate.

Rebound what would be the proper level for the interest rates and given there are still some window guidance and stuff like that.

And secondly on the loan volume growth and what will be the long term thinking and there's also some okay.

Okay, I guess regulatory.

A focus on the pace of consumer credit growth you know what will be the.

And I guess more sustainable properly paid for the longer term. Thank you.

Yeah.

And do you go by on the Lilly for there wouldn't be a woman and take off on to home and Tricia and nicotine cigarette and kind of how are you.

You see a queen.

And Dunhill woman.

And as you kind of on tons shipped a tissue a woman and.

Got you and so a jingle on that you want and hazards from goes into only the continuing to me on my share.

And we consider initiating a degree.

And Oh.

You're doing my job as a group.

Hum.

Thank you Richard a couple of question and I'll answer your first question, Yes, I'm Danielle.

On a ruling from Super and correct.

A lot it was 28.

I hope it was bound on the interest rate on a product level.

However, as you mentioned, considering a oh I might go on for a environment.

And then and now a company with a silicon.

And Oh.

And he was.

We are well in.

And to carry out a long from downward.

Price.

And if there isn't a women and so.

Great.

Beautiful and then make a pencil and do a yieldco could you know which will be weighted to coach and needed a fortune.

And on.

And debt and yet until we change how you shoot schuh I'm going to need it for you in consort.

Yes.

It can be shown on our a several meals business and initiatives.

And how we are exploring products covering more a better quality prime clients as well.

As a.

We are having and kindergarten SME loan business for new products have a lower interest rate compared to the existing per day, we are operating.

The team does a well we know what these guys are finding a woman and good teams and more humid yugo chimere implications on kind of a can do the Congress.

Sure Glenn it's a good I mean, do we see tangible book or you go.

And we will take once a day they can lose from class I mean, do a teach out there and well minimally and.

A timothy young Kid and they're going to a junior.

Yes, well, we ought to take a comprehensive and CD ratio, while operating a business the price its just a one.

And actually we take more focused and owned a lifetime value of a customer.

It depends on the income with a digger and with whom a good day to day and Hugo had a book, we're taking on a woman integrity a push your free time. There you just so you know and book them.

And until you got from hanging so and the Moody's for a true.

Took a bottleneck and once you go a putting a research with a unicorn.

And with that.

And here you go a Huron and go through a chip you don't go to a degree that need your life for a.

Yeah on the Christian Toro and you'll get a.

Got it and you can immediately see a woman the meat and fish and so you go to a solution for me a great you caught you a full day to go quicker and a degree.

Yes, considering though.

Syndication, a geography ranch and different attitude off a low Colorado later across China.

Wow and we as a loan facilitation platform, our purpose, a steel, but still a paid that amount and need between the borrowers.

And a financial institutions there are some financial institutions, they have the demand for higher a pricing.

Pricing rent and that's why we all cover a more rather a price ranch products.

Yeah got you for grains and don't use a good is it doing a booming shadow and here.

Yeah, and then we will lose margin.

As a tweet, but that's actually even if you don't think I want for it.

And she had told you Q2, a M b a woman she presented on and it's younger and younger.

You want me to be more of a women's has a change a bit for you.

You see on shouldn't be a young immature assets that you could give them on and you guys and me.

And we treated on <unk> you have a duration.

Well, a foil and second question Pam powered killed a industry Giants.

Who has already trillion alone bad well, it's still at a very a either a comparator.

Comparatively early feedback on a stage compare.

How to debt, therefore, a and the view of a regulator. So we are not a target D. O L. A regularly in terms of the antitrust a purpose.

And even if I may just a woman and she is.

She doesn't this isn't done and you could tell me how that for me.

And you just don't weighted toward it.

We did this just isn't there and bolt on.

And you find out from you haven't had a gym on the only those are human kind of eager for and John So you woman and ticket.

Thank you for a minute you don't you got a shift for her so for hoods and won't go for me excuse for that.

And we measure and the remarks, and then any loans are very important for the business drive a philosophy. A this yes. This is a very consistent with a gun.

Governments for load him policy to provide that's epilepsy and a financial service to Smes.

Okay.

Thank you.

Thank you next on the line.

And we have to be venture for HEICO.

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A quick one and hand, though.

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Balance of capital cash position and what will be a trend in.

In the coming years, we can see the T U a pay.

Some of the cash as dividends and like what like L. P as the.

That's the first question and then the second question knees.

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What is your current plan of a.

Returning back to a Hong Kong for for leasing.

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For now.

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Consistent with a degree.

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And kind of a lot of mortgage had a degree of ease of use.

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I mean, you can go and.

And we need a ticket to Houston.

It's a good chunk, we didn't want to do and take a woman who we'd done a john yet and so.

Hum.

They do for you.

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And I'll get it a degree its a good.

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Number one.

Cash with very high <unk> 40 per cent.

It's not going to produce a woman.

And she said you know coach and towards if I'm in a.

So and then Nick.

And then maybe we shouldn't take it when he was a quite useful for them to go put them on budget.

And then when we do intend to finance.

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Uh huh.

And then they go easy to sit in a good credit she and her and she'll go down for your SG&A can select and <unk>.

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A major actually last net for.

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The insurance company with rapid growth and from.

Income from.

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Some target and that meant finance with.

Great potential for <unk>.

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And.

Good day.

C O the day, they can win and paranoid and what you're trying to get a pet owner.

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With me on <unk> ratio basis independent from niches and Egypt with you.

But there are assets.

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And regarding to the likeness and might be capped a rejection into a mitel and in line.

And that means for us.

And though we may consider to a package.

It's more a license.

Okay.

Alright and unit before.

Good day and that and then when do.

Can you give me a she's on Nuomi, and importantly, tenet and engineered a great aisle.

Sure.

Oh, yeah okay.

Sure.

Basically a has any sort of covered the cash usage.

Usage.

Rob this year.

Supporting our business growth get a proper license get yet sufficient Virgin snow capital under a certain license.

And also some potential M&A.

Although most of it looks like guidance for.

On a smaller size.

And with.

With all these considered a course will also and looking at.

On the operations because all we're expecting operations continue to generate a very strong cash flow throughout this year.

And.

And at some point at some time, when we look at a cash position and one with <unk>.

Satisfy all of these needs.

<unk>.

Clinical a kind of free cash available to us we're not ruling out any other.

Sort of a.

Return to shareholders kind of a activity down the road, but right now it's a priority.

We always said and spoke.

It's a expand on operation get ourselves ready for this for this market.

And then.

In terms of the Hong Kong listing we are still in the process of dealing with some technical a cow.

And have a problem solve and solving a as you know the requirement.

By Hong Kong exchange on the Ie structure, a voting power and everything its highly a differ.

A different.

And then the U S. So we need to make some changes and some cases and some small restrictions.

Under these new requirement we are doing it.

And as the speaking.

And those are those processes take time, because somehow some of them and covenants.

On a sign up on that once we finish this a technical issues, we will be more.

Kind of a.

Sort of a push.

And the official.

Pushed for the for the for the listening right now and it's still in the what they call. It a pre AOS stage there.

Okay.

Okay.

Yes.

Okay.

I think we're almost running out of a time, we can take one more question.

Thank you.

We'll be taking a last question from EBITDA from CLSA.

And then a question please.

Sure.

A word on women's jobs I'm on.

Just on free.

Joseph a.

And at a ratio and knowing there's a good volume in Q2, a capital heavy kept a lot for sure.

It's always on and sugar shifted a bit yeah, and so my.

Question is sound and 90 day delinquency ratio.

It will be helpful If management and pain.

Help us break that down into a kept a heavier and peptide a model. So we kind of observed.

Observed a trend here.

When do you see a room.

And this out with a handful here a good idea Oh I'll hand, this question to our C. A R O J yet.

And on place.

Uh huh.

And then she says a sense that a woman does a deal.

And a little trailing a.

And he says I say, it's a good so do you do it and they've done a L. A would be at a.

Oh.

So the interest that you had that says you sat down and diseases.

Well, a medallion and a mutually it isn't a $10 a city.

And I'm sitting and Badgley I'll now focus solely on.

A woman.

And with all of that and so you do a silk without a and that Youll see we sat on a whole.

Thank you for that.

We see that such a the buses there's a sick and he says.

The high yield deal, we signed on either even small.

But a whole tone.

And see the densities.

And it's a healthy like kind of on a well.

And then a couple of either a floating a place I'll lay for adult and.

And yet simple ways, how you could be about hey, let's say for the team.

Well it almost always a balance.

Well, that's a quarter.

One and increasing.

Day rates.

And 2%.

Yes.

Yeah.

Sure.

And the range right.

And for the.

Okay.

Thank you and all of them.

Right.

For me.

Okay.

Yeah.

And.

Okay.

Uh huh.

I I'm, sorry, a business that.

We've heard a little bit breakdown on a voice I just gave a transformation again for the audience. So basically our day.

One a.

Delinquency at this point as a standard possible for an 8%, which is obviously the best level in a corporate history.

And then B a.

Good day.

And so any day a ton.

We have a collection rate.

And the fourth quarter rate and we were above 90% a right now where a.

Continuing to improve slightly from that level.

The difference between capital and kind of a heavy.

Our definition of a cat part and we try to.

Kind of a offloading, a relatively newer kind of a quality assets out so the capitalized interest.

And it was slightly worse.

And then we have heavy but not a huge difference there basically.

Got it and what was that.

I guess on your portfolio I appreciate here going on.

300 and there.

For sure for.

And then that's a kind of a temporary honest and open and really can be a good day and integrate it with you but anything from.

And the team this year and Ikea, who would do the same.

And good a digger cookie.

Cook with Tom how do you deal with a kid who do that.

The 300 to get bigger.

Because you won't give them with you to plan on doing any.

The hotel and tended took a peek weighted on how do you.

And finally can you put on and they're going through their dig a shoot you sign them and that we wanted to get a kicker for you would issue.

And John you wouldn't want to adopt and for you on a degree Richard.

And that's actually that's for sure it could be either and wish him and wishing and it seems that you pointed to a woman to be a good cushion to make good and it.

From what I showed you a quarter for acuity.

And these are kind of emotion and digital tools for the young.

And so what we're doing.

And it looked like Internet a day, one delinquency it would be additional.

Kudos she was quite a top door C for U C.

And just as a woman.

And what it can go to you and just wanted to get a 40 and Jacob and go home.

So you get a good number that you could EBITDA what you can put you on.

Well I guess on their ask on how long a child.

And.

Yeah from my Count what are you back a while and look at that at a based on that.

And that is for example that they want anyway.

And then Oh, my God and and.

One day and interestingly I mean, however, I want a hill point out that and.

Maybe you better look at a whole picture from Bayer.

These together with the asset quality operating matrix.

Considering how much cash him a we acquire for on customer acquisition channel now how much how many customers adapt took a crack at a lie then.

And then okay.

Our asset quality metrics.

So should we acquire more customers and we have a higher approval rate and a bandwidth field can barely a stable.

Dave I'll ask you for a real risk a.

A risk management for.

And that compares to some other peers.

A plan.

A net customer and they have a lot from rate.

Logic a.

And naturally they have better risk imagine took on it.

Sure got it.

Alright, and for us that balance and it says it.

Similar with them.

Just.

Good evening.

Okay, I think that you and me.

Thank you a thank.

Thank you for everyone joining us for the conference call. A if you have additional questions. Please feel free to contact us through our IR team and thank you have a good.

Yeah.

And you said agenda and that does conclude today's conference call and thank you for a participation you may now disconnect.

Yeah.

Okay.

[music].

[music].

Ladies and gentlemen, thank you for standing by that looks at a tree 60 E book quite that they need to a DS earning conference call. He's a.

And note that todays event is being recorded at this time and I'd like to turn a conference call over to MS. Mindy Adult IR director. Please go ahead and Lindy.

Thank you and I think one.

And a well come to our fourth quarter and full year on to 'twenty earnings Conference call. I mean, that's what you should already have the day and it can be found on that side.

Joining me today I need a why shouldn't our CEO and director Mr. Alex <unk>, our CFO and director and Mr. Jong in Yang a Seattle.

And for the game the prepared remarks, I'd like to remind you of the Companys Safe Harbor statement, except for historical information and mature and it's got here and can can forward looking statement it's on.

Our current cash acne and projection and therefore, you should not place undue reliance on debt forward looking statement and you bought inherent risks and uncertainties.

And the caution that and then both important factors could cause actual results to differ materially from that April data for more information about potential rate and I'm certain take pizza reported companies fighting with a P. C also be quiet for a discussion that's a non-GAAP measure please refer to our earnings release for us.

The Asia between non-GAAP.

GAAP and get what that unless otherwise stated all figures imagine RMB and now.

And now and the call over to our CEO Mr. Haisheng.

Okay.

She is a Monday.

Uh huh.

By their free time and goes into a good Danielle.

And women.

And you're on a different due to the edge.

So youll see a good based on human and digital.

You said you do a major issue like what should see a good deal with the changing there and done should hope thanks.

For a triangular cingal.

Yeah.

Hello, everyone and very pleased to report and others.

And exciting quarter, we close out the year with and that is that on a record breaking results and continue on the growth momentum since 2020 killed for.

Okay. So you do a true for a phone call and value by Joshi provisions and gotten back and Josh a deal.

And that that you are and done do you have a biopsy provision number.

And I'm a genre.

Cheap.

Tayo from yeah.

Total without a doubt Saturday Sunday and C can depend on my understanding your non got opportunity, although it's a Sunday.

For me, it's been done back onto your balance sheet.

Hope you are for a total amount, but can you take on what 16 9 billion up 29% year over.

For a year outstanding loan balance increased by 27% year over year to 19 to a point a 1 billion tons, a a avenue with a great 0.3 4 billion.

39% year over year non-GAAP net income.

131 billion, a 155% yeah over a year.

And then your tenure and spoke up on going on there.

Oh, and then change the value would you buy it can be a women's union sandhill gene hoe debt.

Good day, Thank you hi, a go to occupy it.

And so $9 ebay a central we didnt really to me, it's a not necessarily see non-GAAP to me right now.

And I know its antibody at Columbia.

Colombians and downtime and the sandbox.

For the volume Tong for city hanging out with $246 8 billion exceeding the Aqua and our guidance range, which was 242 to 240 for a beat it by $2 8 billion total revenue at.

$13 6 billion at 47% over a year non-GAAP net income was quite a bit in a 38% year over year.

So each and on emissions and UN penetrated you on that.

And from putting that told me a woman from Coincidently, a free time cannot that didn't.

From a Google Hungary and show you a few time ago wouldn't be even on your own question.

Okay sounds simple.

And then credit box.

And you wouldn't continue.

<unk> on mute when Linda do you want to Cushing.

So you're on quite a quick rate should all kilowatt, usually a median sales seem to hold them and Daniel and I could not have been done.

We delivered outstanding without despite a calendar year, a clouded by the COVID-19 pandemic. This is a important and Pac man to Louisiana and of our risk management systems and the efficiency of our overall operations. We have more com again that aggregate net will be able to match the animal and a solid growth. Meanwhile.

And without the effectiveness of our strategy and we expand to a diversified customer base and I believe in channel and we're expecting accelerating growth in 2021.

So you will see and talk with them down and inclusive on.

They're going to sit down and Cleveland for them, the ability and do a tissue.

And there could you most or send your emails.

And basically that when you.

Capital assets most of the kind that took a joey.

Curious with a bad all up I misunderstood you eat a figure.

As a young woman Tangier coupon claim that capitalize on most of the time, but you can talk about new ship.

And for them to move to adopt petition this only women debt generally could.

And you've done it she debt that you don't give it to them.

Well, achieving a strong well in key operational and financial metrics for quality of earnings and I'll, let al a business also improved meaningfully kept a light and other cash solutions and new milestone contributing 34, 1%.

A total loan facilitation and Q4.

Recently, the bis ratio reached a record 55 zero percent or a monthly basis. Moreover, the quality improvement on our earnings indicate that we have succeeded in a milestone state of past Dreamer a strategy of great.

Well remember and pension that takes you into a good.

It'll be a months does that take a mortgage had to send you a chart for Google and get a shoulder yet that says you Johan didn't see a take rate and boxes.

And it is C zone.

For me on tissue and San Diego foundries aren't going down to a human tissue and so not buy loans that have been taking a great he'd been treated a cookie Moshe.

Despite the rising contribution from capital light, we have successfully maintaining the although arctic rate around 4% by optimizing a contractual terms with our partner and a boosting operations efficiency going forward, we are more determined than ever to further address a strategy.

<unk> built our business on.

And technology driven models.

General and Union.

And as a manager and London vehicle and it doesn't matter.

And what was a bit on your E women finance you Ghansham.

And India tender for a suite of types of finance downhaul women career with a we went from in your guidance.

And so dollars because you're changing the shuttle and you should do a gig when you're on the 10th of a pig one Trinidad and you'll get him off for you.

And you on yet.

And we entered 2021 on a macro level, we are seeing how rate from both the macro economy and industry policy the macro.

Macro economy recovery has continued and we saw what dose and mountain and operational level in particular, all business doesn't need a can't really outperformed and normal seasonality during the Chinese new year holiday and the government's day post guideline increased business activity across book.

And if you paid for that Jim language and the woman the economy. If you don't show since a leap.

So on him Daniela and thank you Willa.

And then they go and get you a sudden you Johan will go on deck plenty bumper.

And when you showed for the kidneys.

Kidney and coding went back and I'm glad you bounce on to them and they don't.

Yes, I'll show, a dealing with and the chimpanzee and potential.

Our final and on the share with you Couldnt on highway yes, what you told US just on going again.

It's on where each will give women and to hear what contingent book to a place for them.

On a regular that's where a brown and we believe that the regulations for all our recently either have minimal.

A more impact to our business or in some cases, even crazy at favorable environment for a top platform like us.

And I already know a new ruling from the Super and People's cost removed, a more restrictive lending rate capital L. A business.

A new guideline on direct lending and a micro lending as we made a.

A more impact on all of a business and our exposure to both is quite marginal on the ass.

And their hand, China's antitrust and elaborate and push some.

Some market share away from the industry Giants, which will bring a b.

Over a market opportunity.

The xiaomi and window for I guess left behind and that will continue into Q1.

Now, let me share with you some of our plans for this year.

So at least you can do a little cleaner <unk> credit Suisse for so well.

And the liquids Hess you Joe.

And until when.

Sure sure and saying you can't.

Excuse me from in total.

And do you sometimes in a minute.

We can bundle and then Hugo on the Olympia had a two day show you don't want credit you can judge, England, though what you're aiming for women that change how you thought about rollout.

Total debt quicker time rate.

And to get 100, and maybe a question on machine could she could go down and that I've just shared with you.

From this unit.

As a human contact and P and where do you what can be a linear and kiss and Cynthia Rowley.

Total Charlotte and Josh on yet.

And so I'll give you showed a loss about M b a.

A met on a converged.

And how 'bout Kimathi here total and medium crude based on coatings on the tenure.

And then.

And that well under control and.

And the economy, expanding we'll take a more proactive savvy EPS in the past we deployed a lot a team of senior AI engineered to build our online margin system would you book the efficiency of our interaction with a lifestyle.

I am having come from it.

We had also a buildout and experienced the offline team.

Currently the same has come to build a roughly 51, 5% up to a total transaction of new borrowers compared to 2020, Q3, B pocket, a virtual credit card for that adding over 600.

20000, a new merchant and a process of for me and transactions per month.

Our customers is a deep pocket and high frequency consumption margin such as Mcdonald's KFC.

And May 12 P.

M a C D et cetera.

Yeah.

And what if I hit on it.

Two zero margin.

And then sends a bundle them and she Goldman and you didn't really give.

And so you're going to you like a trend.

And that's been done.

And that's when we tend to retain and win.

A good on total body Olympian Heska, Osha and that could go quite bad.

And when we can cope with a couple of Holloway.

The way book impact and so even though you're good day actually in a dining Christian woman.

And you forgot.

You don't go together and Cushing and.

And the.

And your question and then.

Yeah, well and then we could and again some time in a donor.

I don't know Wuhan and had a good book, we push it a good Julien.

And it gives you and you with a kingdom.

He is a good value lampkin and how you can chime in a big issue and you call them and Yoko debate, a food and so you.

And do you eat a unique and you don't want until a two handle.

And how that turns out well.

Well, let me go Jojola on the team has built quite.

She argued on credit for when they ship and kind of I'll go a year with a thin ghansham.

And you call them and that Timna and Youll ship.

You don't need your thinking on a somebody ought to Hoboken back on.

Book to Shanghai, DB, many a times you're on mute.

And no none of them.

Taking a more sure since you've done you're in a gel you and David I see way more and then she.

And then a show him for that.

And when you shop, yeah, and goods Jabil can be auditing and S. Reopen.

And done so dialed that back into balance.

We're not as bad a matter.

A finance motto has enhanced our competitive and it and to provide a strong well.

We are becoming a partner of the choice of this ore body and sometimes happen in China.

For several reasons.

Correct.

And at a cap on that Amit there as fast as a customer base within a narrow price brand, we have been serving a broader base customer with low medium and high price option.

This has allowed us to build a capacity to operate under a white.

Okay.

Product sales.

Second the fact that we do not all credit as a narrow based comes down from pass a law that Alistair and allow us to work with Adam Hussain from capital without a potential conflicts of interest.

Sure.

Have a Catholic typically have strong need for more.

<unk>.

Our outstanding and with Magna on a couple of buddies and generate superior returns for that debt.

Also makes us an ideal time, Inc.

We believe the need for embedded finance the rate will increase among consumption Kathy cash flow in the future and and we are very optimistic about the growth.

Gross profile of this business and our competitive edge and.

So far we have cooperated with 18, one eight leading cash flow including.

Phebe Matewan, Xiaomi finance, whereby finance my bank and Nemo Lucia with a few more in the pipeline such as.

J D, China Telecom and China Unicom monthly transaction volume on the on this mile reached 1 billion recently with a 150000, new bar with a credit line.

Both operation metrics showed about 100 wells compared with December in October 2000.

<unk>, a good and shellfish and that July so each year.

It's a net win from a homebuilding on critical hinder and allow you.

<unk> July and you've been more chip and system, you'll be months with Atlanta.

It's a screening courtyard from London theme, and including highly value the heme pankaj.

One thing you could have you seen a weighted.

And we had total net together should again.

And we need a show you, where your free time and Golden Monkey on each.

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And whether it's in time on each other and yeah.

From who leads a lag.

So it's still a debt so it's unfortunately a quote.

And unfortunately credit Baum and <unk> that of 100 unique and unusual.

Joey and with a coker a lion.

From a shall we see a faster.

Fasteners a shanghai.

You can't handhold on temporarily moving on.

On meeting and unusual so forget the.

Total debt are gathered their own factories on GAAP.

Cool.

While a core yoyo.

On June did and I'm sure you've got to go on from there with you and thank you that keeping and uhm.

And you and questions and a lunch and dinner.

Sales from Shaw with a hook up I'm and I don't want me and she was a onetime that value.

And that is without Shan Shan Shan Shan program for you and why they forgot.

And which element that the hinge and tinder tushar and their attempt and Paula until she left for him to a here you didn't why can't we do one zone.

February implement hundreds and intelligently and John class with the agreement how quickly on.

So on whom on call College losses.

The DSO here and which is in dollars.

Yeah.

And sometimes I bet. She was on your side that you wish him be out and yes.

And on back in July and back.

And what you'll see.

In addition to consumer finance accounting and law has gradually become a new class and painful ADC.

This is a blue C margin with estimate.

So.

Trillium binding site and nearly 50%.

On demand.

Serving the SME market and offer.

<unk> got a mentality of promoting financial services and <unk>.

Debt balance.

Yeah.

And my bad.

And it has.

The rebate and developed some best practice and this market already and for a considerable barriers of entry.

Average and our deep rooted a partnership with KCB will become one but a very few cleared at a capable of serving this market and I'll ask.

Yeah.

Yeah addition to outback.

Hasn't been reached a mad men.

But theyre a P I.

On a real bad debt capacity and funding at them a position allow us to quickly establish a competitive edge in this market.

For SME lending, we have the bad debt rate customer acquisition channels, including so that service panic.

And my customer reach and all lines, having a position.

So far we have hovered around 22 zero, leading service provider, including you'll know and.

India for.

For offline panel, we now have a sales team about 1000 and plan to expand on it.

2000, and this year.

And you can see we have established a stat on diversified customer acquisition channels and SME business.

Actually we are pilot running a big channel and a monitoring a loss performance for the.

Okay.

Whilst a pilots to complete wells.

Rapidly.

And I will scale up the business without a well designed product and a rapidly available funding bill for a total of 540000 Barra and received a quite delightful and SME loans with total accumulated loss, but you got a patient over 27 three for that.

Outstanding.

And any loan balance increased by about 200% from October 2022, seven for it.

Let's just go on call it a opinion and Jim guns, a final Donnie you day here humid.

And then we're tweaking and here it with you with a favorable net hungry and had a temporary issue.

And at the times and food, where you got a conglomerate engine.

She doesn't know what gets the whole lingo going back a feature.

In addition, as we mentioned earlier and it might be zone, B, Overmatch, Altoona and get spot and.

The results of the ongoing antitrust and elaborate and pushed by the regulator a DCA.

Similarly, our tami exploring some new products catering to a broader cash Democrat help to share more updates with you later this year.

And for him on Wilmington, and at the non affiliate.

And with AUM and Kentucky, the same which as soon as you do a bunch of zone.

So I'm looking to go put on them.

Hi, Rick accumulate for me and it seemed that could and the only suitable shortly.

And I'm pretty sure.

And what's your change and Santana town and you would actually go on Kinder I should write down on linear and Q.

Guy and we should've done from Colorado, I'm, just and.

It's a jeans and total about <unk> debt.

It's usually a dentistry box.

And in Q2.

And she bought shebang, so they take a.

Right.

And when do you go a chicken and engine for the fishing and hunting Titan and you already had a question a year, which would be on for.

Joe You then share with you always do cause that a U can be seen a severe juicy, Alabama and Georgia should a.

Turning them down.

She won't flow through food as you know done on time.

And to your let's figure it out and so you go with a decision and Joey do you believe a cheap so did you hear a food beauty and wellness.

You can download our newest ship.

So this is our growth strategy for a towards touch a lot and now into our long term business.

Moving on upgrading.

Our region was a internet company and Alexander <unk> and into a cap empowered a credit.

We always take a little credit risk is a natural evolution in our operating model.

And on a capital light model, we are currently working with <unk> decision.

And Bob and another 22, and a pipeline Inc.

And care for all.

A few a patient on this.

Model a company for.

A 34% of the total and a recent debate this ratio USD 50 per cent five zero.

And that is plenty of capital and by shelter continue throughout this year.

And we also aim to keep our take rate at around 4%, even with the mix a chance.

And hedges credit engine IV, a smart marketing service product for a financial institution also experienced a rapid route in terms of numbers customers and a transactional volume.

Wyeth and SaaS products provide.

Risk management, and stomach and we have already signed contracts with 19 institution.

Putting accumulated transaction volume about $16 seven bad.

This service through our income from non financial survey exceeded.

And our IP.

Five zero percent interest.

And out of the total.

Yeah.

Question for you.

And I know for sure.

Oh don't worry that you could find me a human touch on here.

He got a ship and then go can you send you the timing a woman seems a bit more share from a creep.

And going through and it's you shouldn't take a year would be.

Yeah, Alex a woman from going forward for some interim cut down and that should have faced and on into the time keeping frequently and so once you go home and that didn't see a truecar jugular, who could use a word that we move.

And do it you've got the Huntington that day.

You can see 100 gets a chance.

Essentially the teams and you can do it in Hungary, and she won't Reorders. So shall we take on you from congrats on that and the usual.

So it looks like on that one more question and saying how many of them.

And then go and we want and that seems a in Greenwood huh.

And from called fulfill them.

And the good news on Corso issue at a yield on it.

So when we see a good a charger.

Just on R&D and when we can share.

That you can have a could rely on couldn't agree more you seem to have a pension, though and technically and where you are especially on the owned funds.

And now we're shooting for.

And a question for them that shoots with a category.

With regard to our Spanish a partnership with KCB and believe it or at Geneva.

And the rate in key areas.

Sure sure the partnership KCB, Yamaha and expand the reach of the capital Light model. This will not only increase the overwatch and scale of capital life, but also helped us a pin datacom touched on with other partners.

Okay.

And that May provide a much needed rich from mathematical ability to KCB and theyre non shelby and related business.

Currently <unk> is.

A high and our iam talks and Theyre working with a couple a major platform and <unk>.

Staff are in fact, a KCB.

Well not only drives a growth our tech driven volume and income, but also sets a good example, attracting other potential R. M Stephens Inc.

Hey, Savi provides a unique and patented AD in SME loans with the access of silicon for our private for a data.

To sum up our synergy with KCB will bring significant value in the areas of capital light model I am sad and SME lending.

And as we begin working together the outstanding loan balance on the partnership as a bridge for two 5 billion and.

And then like a loan volume reached a 5.65 feet and we are actively advancing collaboration as a brand as well.

Okay.

Earnings per share bookings, and lenient and chemo dania and that you've done the Yodlee and Fisher woman a critical band Beach.

And that came from two women women a cause what you meant you had done that and similarly that that card.

And women that degree on your thoughts for the way the beach and negotiate a hotel pinata.

Oh sure.

And our unions and gone through at least for Q U pack on screen more culturally and kitchen, though you've got he and the go to pre book, but on the human.

2021.

On a new Jersey average.

Yellow extreme backpack.

Average day, even stronger than before our price.

On a trend of more than ever and our relationship and have expanded we on.

And Doug on market position than ever.

Looking ahead to 2021 without a capital light on the outbreak.

A heightened and market opportunities and that return on our shareholders with badger business scale and quality.

As I mentioned on the sample which is a really.

Good idea a free chunky.

It is healthy snacks, and I hand over to Alexander <unk> and St.

So.

Thank you.

Good morning, and good evening and everyone welcome to a quarterly earnings call. So.

So the interest of time I will not go over all the financial line items on the call. Please refer to our earnings release for the details.

Strong business momentum continued in Q4 and into the new year as consumer confidence and economic.

And that should remain on a steady upward share we have experienced robust consumer demand for credit along with a further improvement in asset quality.

Total net revenue for Q4 was three 3 million versus a $3 7 billion in Q3 and two.

Activity and a year ago.

Revenue for credit driven service kept heavy was $2 $5 6 billion compared to $2 96 billion and Q3.

The sequential decline was in part due to facilitation volume and mix change as a tech light contribution increased six.

For Kathy.

And a decline in take rate as we lowered our average interest rate in Q4 to 25, 3% from 25, 9% in Q3 following the Supreme Court ruling in late August.

However, we are expecting interest rates to gradually recovers.

Significant what throughout 2021 as the for time LPR rate cap is no longer applicable to institutional lending. According to the Supreme Court latest judicial interpretation.

Revenue from credit driven and services was also negatively impacted by a one off reassessment.

Cover ourselves early repayment desktop.

Revenue from platform service cap rate was 782 million compared to a $748 million in Q3. If you recall in Q3, there was a 115 minute one pod and reversal of previous charges related.

Certain loans risk performance versus performance benchmark set by the revenue sharing agreement.

And us and our partners.

Aside from this reversal of a charge in Q3 for Apple to Apple comparison sequential growth a platform service revenue in Q4 was approximately.

And she is 33%.

It was mainly due.

Due to higher volume and Roquette light model as well as better contribution from the ice model.

And the underlying take rate for the Pac them service also improved in Q4.

For the full year 2020.

And the Biopharm service revenue grew about 80% as catalyze a percentage contribution to total volume nearly doubled.

Total non-GAAP operating expenses, excluding provisions were up five 6% Q on Q and essentially flat year over year.

The sequential.

This increase was mainly due to increased and specification and volume and sales marketing expenses as.

<unk> customer class acquisition.

Acquisition cost per user it was proven credit loans was about RMB 198 in Q4 compared to a 172 in Q.

And that's a micro economy recovers.

And for online traffic increased significantly and Q4 was a seasonally high demand period for online traffic.

Just on really around intense online shopping events, such as double 11.

For the full year average customer acquisition cost.

It's about RMB 175.

We will continue to use lifecycle ROI as a key metric to determine the pace and a scope of our customer acquisition process.

And this approach has enabled us to generate satisfied return and to mitigate major.

And what the risks.

Non-GAAP net income was $1 three 1 billion in Q4 versus $1, two 9 billion in Q3 and $516 million a year ago.

We once again set a new record and quarterly profitability driven by higher.

Potential new patient volume and a notable improvement in asset quality and a subsequent write back quite a bit.

Provision.

For the full year non-GAAP net income was $3 8 billion up 38% from 2019.

We're very proud of a achievement, particularly given.

As a percentage of market condition in early 2020.

As a further demonstrates the resilience of our business model the effectiveness of our risk management and.

And the consistency of our execution.

Please note as we transition towards a more technology and business model the structure.

The chart of our financial model.

We'll also gradually change.

And increasing contribution from kept alive and.

And other technologies and solutions total revenue growth, maybe not as fast as a facilitation and volume growth given the different revenue booking methodology change.

For light and heavy.

However, the quality of that revenue will improve and the operating margin should gradually expand along the way.

Such overall profitability growth should be more or less keep pace with a facilitation and volume growth.

With strong operating.

And then Kevin will result, an increased contribution from <unk> in Q4, our leverage ratio, which is defined as risk bearing loan balance divided by shareholders equity for the declined to six 6% six six times from seven four times.

A operating Q3 and nine five times and early 2020.

We expect to see continued deleveraging in our business driven by accelerating movement towards capital light model and a solid operating results.

Meanwhile, our provision coverage ratio reached a 478% in.

<unk>.

Compared to a 436% in Q3 and a 401% and early 2020. This was a <unk>.

Highest provision coverage ratio in a corporate history, reflecting a significant improvement in asset quality and our prudent approach and estimating provisions.

During the fourth quarter, we continued to generate a strong cash flow from operations and approximately $1 4 billion.

Also during the quarter, we deployed approximately a $1 7 billion cash to fund loan origination under a micro lending operation.

And additional pre ABS.

Assets.

As such a total cash and cash equivalents declined slightly to set for.

For the seven 7 billion in Q4 from $7 8 billion in Q3 non restricted cash was approximately a $4 4 billion in Q4 versus $4 8 million in Q3.

As you know a significant portion of our cash was allocated to security deposits with our institutional partners and.

And the vessel to a capital up a different entities to support our daily operations well.

Well, we continue to generally strong cash flow through operations, we will also proactively.

Free cash and expand our business and.

And key technologies and satisfy potential regulatory rate requirements, we believe that sufficient cash position will not only enable us to compete and ever changing market, but also position us to capture potential growth opportunity in a market recovery.

Deploy.

Finally, let me give you some color about our outlook for 2020 one.

Well, we intend to keep our tradition of prudent decision, making and a business planning we are encouraged by continuous strong business with momentum so far in 2021 as Michael.

Recover economy continues on a steady growth path, along with some regulatory clarity emerging.

As such we now expect total loan facilitation volume for 2020, one to be between RMB $310 billion and 330 billion representing.

And on a year on year growth of 26% to 34%.

As always this forecast reflects on the company's current and preliminary view, which is subject to change.

With that I would like to conclude our prepared remarks, operator, we can now take some questions.

Thank you.

And I'll begin our question answer session for those who can speak Chinese. Please ask a question and Chinese first followed by the English translation yourself. In addition in order to have enough time to address everyone on the call. This keep to one question and a follow up and then return to the Q is there for questions. Thank you.

All participants for your question as to post this presume on on a day for Keybanc and you'll be placing a cute okay without a queue. Please press star zero to.

Whereas it gives you a lot on Anthony for keep heading out.

Okay.

Oh.

Plus we have Jackie for China relative Jackie a question. Please.

Okay.

Go ahead from a back on hot honestly centered on.

<unk> CH beneficial for us.

And you can see if you look you're going and do you know what.

She goes.

That sounds a dealership and that she got a.

She goes on guidance now.

And now you're sitting on a genetically downtown and Oh.

Sounds for things that a woman and take a guidance they hold a chico's and let's see.

No short term sure take a ship a wage I thought it was a whole country to lead on now.

Hold on.

And so weighted quite a few go go on share.

I don't know is how can this element to them, which and then you could run rate Oh God willing a tissue player.

Could you.

And you guys have plenty to come until now for Covid.

And <unk> growth and pool and they've got a.

For me.

Rajiv and Ken.

And actually quite a lumpy and cut issue.

And she goes.

I won't quote and since Alex and good luck with a thought yet.

On a whole a.

T woman and she couldn't rely that because he's on vulnerable.

And she can shop.

And I hope you find them and future claims and a warm and virtually.

Take rate.

And control element and kept a hesitancy.

Chico.

And it took a take rate and easy to shales with Chantelle I'm, telling you and your peak, although Chico HR. She good news flow.

A whole already repaid milk and you might be in.

And switches from <unk>.

And the Chico's and kept the heavier and more should actually grow a take rate.

Beyond <unk> and <unk>.

And.

A more let me translate my questions. So congrats on the strong results I have three questions to.

Two class a number one is about our loan guidance.

So at least.

Okay. So a very strong for your guidance just want to try to understand the rationale behind the guidance.

Do we expect a.

A.

Larger budget for sales and marketing.

And how much contribution was from the M. S E lending and what is a run rate for the first quarter and so far.

And second question and it's about the customer acquisition channels.

A.

I'm trying to understand.

In terms of the channels how much was from.

B from D. A.

Corporation with leading internet platforms.

And as well as the offline a sales.

And also the a.

Traditional chat.

I think our channels.

And third question and it's about our.

Take rate.

So for that the capital heavy model, our take rate was a bit lower and the fourth quarter. So.

And I saw probably the impact is from a lower APR and also for any repayments.

On that.

Just want to understand the rationale.

The lower take rate and what's the outlook for this year 2021 thank you.

Oh yeah.

Yeah.

And do you go and she could you go into a will agree and I had always gets angry and you might see a central corridor.

Okay.

And PMT and guidance.

And so a human to 10 day issue.

It goes to a tender Antonia and then you're good.

Thank God that you Didnt sound continuum and <unk>.

And then you go back and Jay.

And actually with a tends to be a good Jim.

Jim just for you.

And so you got 10.

Judge a well minimally and.

And then she does it go.

And when do you who came on and you can do that and see a woman and Jim.

And with as you can do the torched it Mike alluded to and get to meet from day, because it's been done indicates just switching zone.

Thank you Jackie for your question and perhaps a quick question on my hand.

For the first two and a lot of our CFO and Steve talked about that question.

For the first question and the fundamental logic for our loan guidance.

We are building this guidance.

Cause a airing in the past few years, we a have successfully achieved a beast and growers on and casino.

And the macro environment and the industry.

And with Halloween and Florida, how im thinking about women, that's how rate the bad debt is.

24%, a 36% a year.

Loan origination guidance.

And would you try and home and beyond potentially there and how does it.

A good program.

And they've done with tissue blood sugar.

From a holiday can you walk and it's about a wynwood and.

And so you've got a blue shirts and Ben.

And it's a cool.

And 70 and figured it out and creates one pool on the Keytruda should it be a conflict and.

And you get a CP as a timber on Wilmington and.

So on.

Good.

Do you get a fifth and either you could beat it.

Good day, so you see a woman could you kind of a woman debt to finance it.

And you should even be a genuine window couldn't go to income.

Well I'm sure.

Third point for.

For an hour.

For now.

Shifting Panama provision channel, which is online and might have a child BCS lately on increase largely in terms of scale, while maintaining stable at a multi visa card if you're a benchmark attract a whole market at some of our peers disclose a C. P F.

We have very strong competitive edge on these from.

And then when you look at home and Canada is a good channel was a general opinion junk rate that Union and began how do you go and.

And you hope for them that they need and when you know you go you.

And you can show for cheap.

So you're putting in and then go downward and.

As a whole crew agreement with a pipe and just essentially zone.

And I can't point, and we mentioned a in my remarks, and we will expand more assets on the embedded finance customer acquisition channel. This year. Thanks to our input last year, we will embrace a rapid growers on these channels.

T D and they see a leaseback a pact.

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And you kept them out a well.

And your cash from a funding channel will contribute a 33 zero percent lithia.

And it's a good to build a.

Guidance for the heightened and sitting on the film and the OE Award.

And when they show a friend to me on credit.

Sure.

And could shoot.

Yields a degree on Holy men and.

And two hours with you could a huge kick in from cleaned up and did a.

And particularly you.

And if you take a moment for you kind of a yen triga credit for their finance and they might use a woman and so you didn't and that you always see a team should you see income.

UK Cushing storage and we see a good guys and the league a few times and I didn't see a woman and.

A good deal on credit that take a.

And he English and in total by industry and suddenly you agree you for.

From a beauty.

And third driver for our a broad variety of VCA, Inc.

The loss.

And from there there were a two part of the graph.

Number one and.

On our transition for our existing high quality individual consumers.

Existing customer base.

Card and.

On the newly acquired S M and to a pretty nice.

In total a bit too high.

And all contribute.

10% of total loans.

Okay don't use a woman.

The food for push it on January a band who can do that and when do you go.

Sure.

And so you're going to a minute Joe yeah.

And and you'll see as a team.

Uh huh.

For a tissue.

They hit and you know as you go and do that she put on how that system came on this year.

And from that Didnt want on Aquino from cruise ships, and we generally keep them and.

And do the tissue.

Yeah. The way you go to a woman debt, but didn't see that though you've removed.

The fourth growth driver comes around and.

That does that turn on us.

And as we mentioned in the remarks, we I.

Handing a corporation with a case AP and the ramping up this kind of a smart risk management and stomach to more and more financial institution.

Dan will go into a digital women a quick once you're done.

And so having gone to a it's different and you forgot.

And I won't mention that share.

And it sounded you don't see a room.

Sometimes it's an agenda and telephone standard 12 ounce you, though a whole Nino did on.

Some DRAM and essentially that's a good channel was a genuine shadow woman shitty job Shadow and she has.

And now you've been done on that and just show 19 loans and nobody can go.

Forgot on and a home and there's a risk here, we're going to sit down and I can do the humidity forgot and beautiful and moving and Louisiana, which either did on tonnage and its high frequency you could book and.

And to hit that 800 per door theater with them for a woman that they don't and William Glenn a quick Wichita.

As for Camden, and our diversified debt.

Petsmart and physician channels number wise.

Oh, and light Pathic, Panama acquisition, and let you and embed.

Got it thanks. Thanks.

And in <unk>.

Bad debt finance customer acquisition leaseback phase II contributed a 30% EPS number three is the offline team.

And I believe based on for Mike and contribute to making a one five for GAAP.

And a new customer acquisition.

Besides that the SME.

And I'm sure, it's a narrow well the ambition on panel.

So just hang on to seize on with Asia.

Hours Dafoe.

Corey.

A draft Jonesboro patents.

Okay. Thank you.

I just wanted to and one small color to the earlier questions regarding to the customer acquisition cost.

Some of our peers disclose as a cps cost and we'd look at a same logic.

At the same methodology to calculate it a weird running.

Roughly a 40% below that number so that's just a small color on that a customer acquisition cost in terms of take rate for Q4, a yes.

The Q for take rate, particularly on the and the tech heavy side was impacted.

And I basically III.

Or maybe two major items, one is really the interest rate.

A cap.

Causing the lower rate.

And in the prepared remarks, we lowered to 25 three versus 25, 9% in Q3.

So that.

<unk> heard the take rate on a cap herbicide.

The other one is more like a one off item. If you recall a run in November of 2019, the regulator put out a ruling a requirement basically allow customers a.

To make.

It's a repayment without any meaningful a penalty in there.

So we start to change or a practice along with other companies in the industry.

To adopt that.

But at the time.

And when we get into the like for Q1 and Q2 of this up 2020.

And I don't know exactly how many or how much of the impact. This early repayment and we'll beat so from a from a financial.

A kind of a plenty or a content perspective, we have to put out a a best.

Estimate in there.

Back then the estimate that was about.

With him and a discount ratio, we'd put it and it's about 12%.

And we need to wait for the for long cycle finished for this batch of a particular customer to fully understand what the real impact of that takes time and will be a.

And once we get into the fourth quarter a.

Keep in my.

And even our average long term is somewhere around nine months. So once we get the fourth quarter. We saw the whole a performance of the entire batch of a customer and a back then than we realized the actual a early repayment and ratio or a discount ratio was higher than.

And all the.

Our estimate in the previous quarters.

From accounting perspective.

We need to basically.

And but take.

Almost a I could take a charge.

To reflect the actual repayment discount a ratio.

Discharge a demand.

And then do for accounts for roughly a 170 to 108 a minute.

RMB, so that a I would say, it's a one off a hit to the to the topline there.

And then.

The third overall impact for the top line is really the mix change meaning.

In check the increased contribution from capital light.

And the decrease contribution from kept a heavy.

We do a back to back the envelope kind of a calculation.

For every $10.

We facilitate under kept heavy model.

We'd roughly can make a buck.

Meaning $3 and the bottom line.

But if we want to make the same $3 on the bottom line, we only need a $6 and cap rate facilitation.

So.

If you do the quick calculation, if we can't get net space, 30% earnings growth for 2021, we only need 10% revenue growth.

To be a shot it's just because the mix change.

We will continue throughout this year and actually a pretty fast.

And that's why in my prepared remarks are asked all the analysts and investors to change your financial model.

And it's gradually a move toward a.

And a more capital light do you have a model.

With relatively slower revenue growth versus the low volume gross but improving margin that drive the comparable earnings.

Earnings growth versus the volume growth.

Yeah.

That's very clear thank.

And they can see what any of them.

Thank you.

Thank you Jackie leaks, we have Shaw from Morgan Stanley.

So for your question please.

Okay got it got it Okay, Hey, what else you, Don or Josh Young buttoned down and that helps them quite a hell of a N T.

Goodbye.

It was on the house, you're only a kid out just yours stayed at a good golf on that day they are quite.

Quite a bit of a turnkey warm and Diego D do you way.

It sounds like for.

And on one hand that you're that you're sure you're going to do a great aquifer at all.

Total assets should be all kosher and you may be seeing a highly hit from hooked it up my own for a hotel or they don't.

And what should we don't want it on them and take a data from Joe No one day the total sure.

<unk> put a particular, yeah, yeah, a BDO didn't on Eagle a pig.

Particular, Julia on to you, but they are in a Joshua is holding back on some of a lie to you on that take quite a while I'm not sure who work hard each and you go out sometime.

Hopefully a call either on a sometimes can take on.

A 10, Glenn Glenn Chin and Italia here on that that'd be a J.

And I can't go a day and when they roll a hung deal.

Basically two questions basically with the a clear.

For clarity on the interest rate environment, and I, just want to know whether the interest rate and how much the interest rate swap book.

Rebound will be the proper level for the interest rates and given there are still some window guidance and stuff like that.

And secondly on the loan volume growth will be the long term thinking there was also some I guess regulatory.

A focus on the pace of consumer credit growth and what will be the.

I guess more sustainable properly paid for the longer term. Thank you.

And do you think.

And your Lilly for the Wednesday, a women and said.

And I go ahead, and to whom and Tricia and nicotine cigarette and kind of how are you.

And is here.

Great.

And Dunhill woman.

Yes kind of a transit a tissue.

And so in general on the Q1 and how does it sort.

It goes into loans as they continue to me on my share.

And we consider need integrated turnkey.

Are you doing my job as a group.

Totally.

Thank you Richard for a question and I'll answer your first question, yes opt on yield.

And you have seen a from a super I'm correct and Andrew.

On the market with a 28.

And I hope it was found on the interest rate on a product level.

However, as you mentioned considering a oh go on for a environment and as a company with social and.

Yeah.

And he was.

And we intend.

And tend to carry out a long term a downward trend a.

Price.

And the bad hinder women.

You guys and the visual and then the.

And so it can do a youll drew could you look which Shaun will then be weighted could you dig a fortune.

And.

And yet until we can show you shoot shoe on can data for him to absorb.

Yes.

It can be shown on our several new business and in Asia for.

For example.

Flooring products covering more a better quality prime.

And as well.

And we are.

We are having intuit on SME loan business, both new protest have a lower interest a rate compared to the existing for tax we are operating.

And the peanuts.

And we know what these guys are finding a woman and go to the mortgage and the Yugo Chimera from <unk> and kind of a can do the hungry.

Going on as it goes I mean, do we see a country that.

Or are you doing.

And we will get a concert at Lincoln from Cushing and annuity Tanja will meaningly.

Can be a dividend.

And I don't see and they're Gonna a junior.

Yes, well, we all take a comprehensive consideration a while operating a business the price its just a one.

Sure.

And actually we take more focused.

On a lifetime value of a customer.

And thanks for the inventory.

Good day to day.

<unk> had a cookbook putting them on a woman totally a push you a free time day.

And then.

Total injection has and so I mean the mortgage.

On rapidly and when you go to put them on the speech was a unicorn for.

And I know you wish for that.

Here you go with you on and go through with you, but you don't go to a degree that need your life food and put you on the Cushing for and you'll get.

Got it and you shouldn't see a woman that meat and fish and so you go there to show me for me a quick chip.

And you caught you a full day to go quicker and a degree.

Took a book.

Yes.

And a result.

Diversification.

And geography ranch and different attitude a for local regulator a kraft Heinz.

And we as a loan facilitation cash on our program for steel.

For exterior paint the demand and need.

She was between the borrowers and financial is a Puget sound.

Some financial institutions, they have the demand for higher.

Pricing and that's why we all cover a more rather a price range product.

Oh, yeah, yeah for Greens and don't use a good if you're taking on a booming and shadow and <unk>.

Ooh Ooh, Yeah, and then we will move and hazard tree, because I talked to the EBIT you don't see that going for it.

And.

And here towards the acute oceanview and know how should we for example down a shocker.

And yet due to a.

And you want a women's health share change a bit.

So you see on and Assembly.

I mean, a young demurrage for day, you could give them on and you guys.

And we treated on gundy with EBIT.

Uhm.

Well I'm a boy on second question, Pam how to diagnose the Giants.

Who has already treated and loan balance.

I've had a very a comparatively.

Comparatively early feedback on this day.

And we our two debt therefore.

And a view operating only has to react not a.

Yes.

A regulate and in terms of debt and.

<unk> a perfect.

And even if I'm and use a woman.

And then she doesn't consider them down and you could tell me on that for me to reschedule later career.

The company does this just isn't there and we're going to have.

Yeah and finance.

And with you and me.

Those are still on kind of legal finance and so you're a woman and figure for a minute. You don't you guys just for the Sophia who came on a go for me excuse for it.

And we measure and the remarks and that many lines are very important for the business drive a philosophies and yes. This is a very consistent a window.

Okay.

For a low him currency to provide that's epilepsy and a financial service to SME.

Okay.

Thank you.

Thank you next on.

The GAAP, we have a beaver Chan from Haitong.

And with Jefferies.

So Glenn and hand, though.

Toyota and they'll want to you and let's say a one P M D.

Just one second and a.

And new sensing a nickel.

It's aman.

On the line and told you and all your thoughts on it.

Capital light.

You need to walk on and then you had thought.

And then gentlemen.

And it's all about content and we like and I know you said told you for the Chita So nowadays.

And I think a sand dune.

You know you had thought a ha.

And we lie.

And to see them.

Uh huh.

Non without the Syngenta to.

So you see thing and.

And I told you I guess on what how would you.

I would use a half where you bought it.

Please.

And she thought and Hawaii on to Casey a.

Yes.

Hi.

T O D a.

For us.

A sanjay its a mindset.

Ladies and.

Net.

No.

And so I'm, assuming a two hot C&I the same day that seem to say you're sitting out.

Mike.

And you say open and a focus on two things one is about a debt could be postponed and so.

A big increase in cash for Sysco, and especially now we're moving towards a capital light.

I believe that probably the main for we see the cash from may and likely to reduce and and if that's the case with increasing.

My question Islands itself kept cash position and what will be a trend.

And in the coming years, a where we can see the T U a pay.

Some of the cash as dividends and like what like all peers, Steve That's a fair.

First question and then a second question is a.

Well.

But is your current plan of a.

Returning back to a Hong Kong for for leasing.

Yes.

Yeah.

Okay.

Or for that.

She was on kind of up for two of them.

And so you only have a degree of T. A.

A lot of them and Youtube from here.

Can you give us a woman does that go into the houses for yoga and total.

Finance ship from a Hershey.

And so you can do the here and we're taking Italian and towards the headboard you for women.

And then family a short and this year, we're going to produce a rate a hydrogen women's a good.

Could you frame and integrate attempting a total I should do on residuals.

And she was and could you eat away from time to and they don't come on.

And then we indicated a show you.

A daughter dig a cohort tending a attempting a contention a degree of standard for them.

They could do a tree total cheetah aegis and U S.

And it.

I'll go first a question in terms of they use on that cash number one the rate.

As we are still a growing our business and aggressively will invest a yes, the new business areas for example for.

The government and new customer acquisition.

And you'll see a woman.

And so the capital I do most of that.

Yeah.

And then consider a hotel.

For the times, you'll hear it you don't see it going to go to EBITDA and you should consider with a C. What's a good seems a bit more ship and get out of D. A.

And could you did they do a week.

Don't you do need for beauty is unusual and and so you don't see it and they don't do total you're squeezing a assembly on you.

And we took a year.

Could you hold a nimble a woman and <unk>.

To capitalize on mortgage had a degree people usually you get a J can push a critical highly bundled and sit there and a.

Fully concluded.

And you could be good.

And do a couldnt meet a ticket to Houston.

It's a good chunk, we didn't want to do and Jacob and we've done this Johan here.

And I agree.

On the door for Ya.

And you did you mean that Youll ship and.

Cannot be able to choose a bit so I believe the tickets and you don't you need a degree its a good.

And.

Well in a wrong have wait for that there will be a bad of the makes for a.

And for this impact.

Layered on.

<unk>.

That mix will be a majority.

And I'm not come from the capital and model there will be a portion of the traditional on participation model and as well there will be a push on Florida on that.

A.

On <unk>.

Losses up high and.

Sales finance.

And with a medical or something that you would anticipate a sun a woman and food.

And so in total a degree or what do you mean cheap and.

So a question I read a way a bunch a department of citrus oil and particularly play book value.

And do a bit and they don't see them to do and do it.

And there were a few a reason to increase the on balance it doesn't it.

Why is cash.

Very high ROI a 40%.

And I know you can produce a woman.

If you still get a coach and towards if I'm in a.

So and then.

And normally we see a tick up when it moves a quite useful for that to go put on a budget.

When the new and time to find and humans.

Nonetheless, as it used to be a hot and see when we go globally.

Good day.

And then they go easy to sit in a good credit she chooses on time and I still go to a degree a teenage rousselot and.

And guess, what we can do hybrid that's a good excuse.

And now for you here you have a bunch of scheduling vehicles that there's a temptation and towards it.

And so.

Importantly, he was a cash.

From a major actually mathematics for example, a one.

One of them.

Internet and.

Insurance company with revenue growth and a promising prospects sticking on the way.

Actively looking at.

And some target investment high net with.

That's a potential synergy.

Okay.

And.

Good day.

C O a integration wouldn't and paranoid and what's your sense and you do get paid on it.

And I know, there's a good a good.

ZIP on these room and they showed that pan out and women don't integrate on them head on and see where you're going to dig a didn't did a degree cause a human.

No.

Great good and you'll get a tier one integrators.

And Chris year basis independent of him and his Egypt with you.

The third act that were a catchy as it is a.

Regarding to the likeness and might be capital rejection into our micro lending license or going through a license.

And as we May consider to a project.

And the devices.

Okay.

And in the booth on the cooling degree day, saying that and then when do you see a excuse me a newport and the Senate and when to me and a great aisle.

I'm not sure.

Yeah Okay.

Sure.

Basically a has any sort of covered the cash use.

And as much.

Throughout this year.

Putting our business gross cash.

The proper license get sufficient.

Efficient Register a capital under a certain license.

And.