Q1 2021 FinVolution Group Earnings Call

[music].

Hello, ladies and gentlemen, thank you for participating.

And the first quarter.

'twenty 'twenty 1 earnings conference call for thin pollution group.

At this time all participants are in the listen only mode. After management's prepared remarks, there will be a question and answer session.

Today's conference call is being recorded.

I will now turn the call over to your host Jimmy Tan head of Investor Relations for the company Jimmy Please go ahead.

Hello, everyone and welcome to our first quarter 'twenty 'twenty 1 earnings conference call. The company results were issued via Newswire services earlier and are posted online you can download the earnings release and file for the company.

And by visiting the IR section of our website at IR Docs E&P group Dot com.

The boom, John our Chief Executive Officer, and Mr. Thiago and our Chief Financial Officer will start the call with GAAP prepared remarks, and conclude with the Q&A session. During this call we will be referring to several of non-GAAP financial measures to review and assess our operating performance.

Non-GAAP financial measures and not intended to be considered in isolation or as a substitute for the financial information on prepared and presented in accordance with the U S. GAAP for information about these non-GAAP measures and be considerate deviation to GAAP measures. Please refer to our earnings press release.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 90.95.

The forward looking statements involve inherent risks and uncertainties as such the company results may be materially different from the views expressed today.

For the information regarding these and other risks and uncertainties are included in the company's filings with the Securities and Exchange Commission.

The company does not assume any obligation to update any forward looking statements, except as required under applicable law for.

Finally, we post a slide presentation on our IR website, providing details of our results for the quarter I will now turn the call over to our CEO and Mr. Feng Zhang. Please go ahead Sir.

Thank you Jimmy and Hello, everyone and thank you so much for joining us today.

We are pleased to start 2021 with the remarkable progress delivering high quality growth across all aspects of our business and the first quarter. While also achieving further improvement in risk metrics across the board.

Our total loan origination volume for the quarter, a record high of $296.8 billion.

Representing a year over year increase of 145%.

Our loan origination volume for mainland, China increased 24% quarter over quarter to <unk> 6 billion RMB.

Also our international business is continuing its rapid growth generating approximately 760 million RMB of loan origination volume during the quarter up 42% from the fourth quarter of 2020.

Our sequential profit growth and low volume following the continued economic recovery from the pandemic is a testament to the effectiveness of our strategies and our strong execution.

Also in the quarter, we continued to benefit from our successful transition towards higher quality borrowers and we improved our delinquencies to historical lows.

<unk> sequential growth.

Our recent day, 1 delinquency rate in May was around the 5.4% compared to 9.7% in the same period last year.

Vertical delinquency rate that was 15 to 89 days past due further improved to 124% from 138% in the previous quarter.

And our 90 day, plus delinquency rate was 1 of 1.3% compared to $7.2 5% and the same period last year.

Our loan collection recovery rates continue to stabilize at 90% or on.

We further expect.

We further expect vintage of delinquency rate to fall to historic lows around the 2.5% and the first quarter and the key risk metrics to remain stable for 2021.

Going forward, we see continued opportunities for quality growth as we further build our strength, our strong tech and the technological capabilities and the credit risk management of framework, notably our total number of new apply the borrowers in the first quarter of 2021 exceeded $1 billion compared to 3.

<unk> hundred 73000 of new borrowers in the same period last year, representing a 169% increase.

By continuing to improve our acquisition of efficiency.

We were able to reduce our acquisition cost from the previous quarter as part of our efforts to pursue of financial inclusion our average IRR for this quarter stabilize at around the 26, 8%.

Since 2020, we have been diversifying our loan facilitation services to serve small business owners in mainland China as we continue to capitalize on this unique opportunity presented by the need for operational phones in the first quarter loan origination volume for small business owners grew rapidly too.

The $4.4 billion RMB versus $3.7 billion RMB originates the throughout the full year of 2020 accounting for 16% of total loan origination volume for the period. The total number of small business owners.

And we served in the quarter reached around 300 of 5000 compared to 220000 for the full year 2020. We believe this segment of our business supports China's economic rebound and is in line with national policies going forward. We will remain focused on serving small business owners and we expect this pause.

And of our business to account for around 20% of total loan origination volume in 2020 in 2021.

Our international expansion strategy and continue to be a key competitive differentiator for us as we will remain optimistic and the seductive and penetrate in penetrating southeast Asia emerging markets, where we have established a first mover advantage where countries have established operations in Indonesia, Philippines and Singapore.

Apart from our online loan facilitation services, we have also been exploring other business concepts concepts with different partners in the southeast Asia market leveraging on our expertise in online loans services and the localization strategy. We are confident in our globalization process and our long term.

Mission to make financial services more accessible and inclusive for our borrowers in light of the ongoing uncertainties stemming from pandemic related economic conditions, our international expansion strategy will help diversify both user base and the revenue streams, thus bolstering our ability to generate the steady long.

Term growth for the company.

We remain focused on evolving our business assessment and the management of framework with prudent the principles enhancing top notch technology advancements capabilities, while pursuing a healthy approach to diversifying our customer base as well as expanding funding sources, both domestically and internationally.

With all of that being said as we drive our industry, leading positioning for the with these initiatives and technology overseas markets and the product diversification and I believe the team resolution will establish a significant presence in some of these new territories over the next several years based on our track record with our <unk>.

Successful business transitioning and mainland China and of our expansion in Southeast Asia, We believe our digitization and operational capabilities can empower of variety of businesses across multiple scenarios in different industries.

In conclusion, we are excited to get the off to a strong start as we successfully execute our business strategy. We are confident in our ability to maximize our well established position in China's consumer and the micro enterprise market as well as the source Asia is booming and digital finance market.

Which will unlock tremendous value for all of our shareholders.

With that I will now turn the call for the most of the JV and issue who will discuss our financial results for the quality.

Second of funds and Hello, everyone.

With a strong and steady recovery across the multiple operational for all and seen the first quarter.

We delivered 45% increase and the GAAP operating profit of 8.6 country and the 71 million and beat.

Yeah floating debt.

Success for trade action of our business model towards high quality borrowers.

Our balance sheet remains strong and the <unk> 1 billion on B E.

<unk> cash and the short term investments.

Empowering our strong technology and the risk management capabilities.

We will continue to explore new business models, and the tap into new opportunities both domestically and internationally.

Now turning to the financial results for the fourth quarter in the interest of time I will not go through each items library on this call. Please refer to our earnings release for more details.

Net revenue for the fourth quarter of 'twenty 'twenty, 1 stabilized at around 2 point of where 1 billion RMB, primarily due to increase in the origination volume and the partially offset by the decrease and guaranteed income as a result of improved asset quality.

No origination and servicing fees increased by 1 of the country and the 3% to several country and the 16.1 million RMB for the fourth quarter of the title 21 for our country and the $75 million and be in the same period of 2020.

Primarily due to the increase the <unk> volume, which is partly partially offset by the decrease in average of reach of transaction fees.

Post facilitation service fees increased by 24% to 200, and the 2006 and media and be for the fourth quarter of the tiny tiny win for 1 country and the 83 meeting and be in the same period of 2020.

Primarily due to the increase and outstanding loans serviced by the company and at the low impact of the deferral of the transaction fees.

The guaranteed income was 6 century, and the 15.9 million RMB for the fourth quarter of 2020, when compared to the installed and the 1 country and a $15 million and be in the same period of 2020 as the result of improved asset quality.

Net interest income decreased by 11% to 218 million and be for the fourth quarter of 2021 for our suite of country and the $15 million and be in the same period of 2020.

Mainly due to the reduction in outstanding loan balance of consolidated the trust, partially offset by the higher loan origination volume on originated outside of the men and China.

Yes.

Other revenue increased by 1 country and the 21% to 185 million and be for the fourth quarter of Chinese hydro and wind.

84 million RMB in the same period of 2020.

Mainly due to increased customer referral fees to other third party platforms.

Non-GAAP adjusted operating profit, which excludes share based compensation expenses before tax with 6 country and the 70 women and be for the fourth quarter of 2020.1 representing.

Representing an increase of 14, 5% for all for country and the 16.4 million RMB and the same period of 2020.

Net profit was 500 and the 93 million on B for the fourth quarter of 2020, 1 representing an increase of 41% compared to $400 and 20 million RMB in the end of period of 2020.

We have I will capitalize the balance sheet and our leverage is conservative.

If for you divided the total outstanding notes of $32.5 billion and be on our platform by all of our shareholder equity the leverage ratio across our business was only 3.7 times.

And our liquidity position remains strong with the $5.1 billion and be of unrestricted cash and short term investments as the act at the end of March tend to tend to England.

Our strong balance sheet positions us well in the current the operating environment and it gives us significant flexibility.

Sure.

And China's economic environment graduates of the coverage for all of the op and mass after COVID-19 outbreak.

The company has been experiencing progressive improvements across the numerous operational metrics.

The company will continue to closely monitor the situation of globally at Diavik and the remainder of Engie U S business operations.

As such the covenant hold on a cautiously optimistic view on the operations and anticipate steady growth in ethanol origination volume and the second quarter of the Chinese housing 1 which is expected to be the range of RMB 29 billion to RMB 13 billion.

Lots of <unk>, we continue to return value to our shareholders through dividends and share buybacks.

And also March 31, tiny tiny and when we have cumulatively deployed in <unk> and the 31 million USD for buybacks and the Wolf Henry and the 43 million USD for dividend distributions.

With that I will conclude my prepared remarks.

We'll now open the call to questions.

Please continue.

We will now begin the question and answer session.

To ask a question you May press Star then 1 on your telephone keypad.

If you are using a speakerphone please pick up your handset before pressing the keys.

If at any time of your question has been addressed and you would like to withdraw your question. Please press Star then 2.

For the benefit of all participants on today's call. If you wish to ask your question to management and Chinese we ask that you. Please kindly repeat your question in English.

At this time, we will pause momentarily to assemble our roster.

The first question comes from Thomas Chong with Jefferies. Please go ahead.

Good morning.

And so much.

Yes.

Hi, Josh.

Yeah.

And thank you for my questions.

The Beach Ashwin I'll ask the China.

Thanks.

He told us anyhow.

No 1 else with Azure and you said on <unk>.

And the thing you're going to assure the quality of used unit economics.

The economics kind of mix.

No mortgage kind of charges will just give us all of the ICD CRT and <unk>.

Well, the mattresses and critical of outlets of good thing gastric setting on top of the lessons I actually all of our key to get the.

The hold on 1 on the medical funding costs and the type of doses that <unk>.

On the whole woman that's at the vintage of the fantastic and I say that day.

Now are there whenever you question, perhaps on what's hence the Eagle II Cortina.

On the beauty share capital as soon as the go back on the key.

And <unk> are the key jet and <unk> key the tablet and the like Fortinet as I said, the shopper and Thats in the sunlight Google to balance those unchanged and you've got 2 critical gene quanta and Thats, how the logistics assets.

And I took on edge of <unk>, who the particular guidance the Spi 2 that yourself.

And that's intended to go out and create a yesterday.

Okay. Let me do the translation for Mr. Alexey, our the competition for our unit economics is pretty straightforward our IRR on average its between 26% to 20% and our funding cost is about 7.5% and our vintage delinquency rate is 2.5% on an annualized basis is around 7%. So on average the iron.

<unk> of our 12% and when we convert to a take rate of 4% in light of what we have been guiding the market along the past few quarters.

The hotel and Blinky nationally the quality of Mohammed of here as you thought inch and ha-ha north of that casual for intended to go for.

The actual.

Okay.

Next we will elaborate more on our development space, we would be.

And we explained in 2 different stages.

But are you going on what kind of shell and months ago, Glendale relative to the year.

The.

Industrial and Linda Kenyon <unk> Cushing to balance on message I think of parts of <unk> stable. It's just that the completing of on the ads.

And the team for the year.

So the cash which is on that when we use the case for us to do our move to each of the equates to the EBIT towards add on page Youll see the Sunday E and George on the stripping.

And the industrial so on loans and that should accumulate to about Cushing to be offered on chi and conduct and cross shop and liquid.

Tissue, Johnny the coaches on that David and John.

Yes.

Our loan facilitation business in China has shown in all of our key metrics and our loan facilitation business in China has been showing a healthy sign for example, our return.

The risk metrics has continued to improve and and the coke and the second quarter. Our expected loan origination volume is expected to be in the range of $29 billion to $30 billion and we are continue to have healthy growth in all key metrics going forward.

At the new 1 that you saw.

And that is just kind of on just enrollments at <unk>.

The logic of Tokyo, <unk> Division because of the planes honor that she towards of the.

And will enable us to deal with extreme coatings on assets held with us to go on.

That's it that's just the yes.

And some interest to go 2 of them away leather ethic of shooter.

Joey that because of the Dodge dart assets onto the other eager because <unk> heard of EG.

In the first quarter, our reported number of new customer exit $1 million and and the domestic market alone our new customers exit of 600000 and all of this increase in new customers actually provide and use of group for the future.

So the key George on the here to machines at the hitching clock political instability adhere to the Asa our monthly.

And to continue to grow the <unk> channel that you took out of our most efficient business unit.

And based on the current situation and the current performance of our key operating metrics. We are confident to deliver our full year loan guidance of 100 billion 2 of 120 billion.

The only 1 sort of its wholesale.

Yeah, Hi, Jessica scenario, where the switch out of that kind of to go on Wednesday, and Houston Ha high spot price for.

For example.

So on to the tune of Axis has the sports also that adhere to the each of the hinge on that.

On 1 months at the why they think of the Paul Hudson particular to any other of the bathroom for me at high single to go to biopsy the failure with GSO the quest for the EBIT zone. Okay.

Okay for the southeast Asia market, we are still maintaining the burberry record growth. Although there has been some impact by the rebounding of the pandemic and your southeast Asia in terms of new customers and loan origination volume we are still seeing very rapid growth in both of these metrics.

Total EMEA, whereas for <unk>.

Net of your times of hits, you touched on and Huey.

And to the Philippines.

And <unk>.

Titles and yet.

And the fact in Tunisia, we have also penetrate into the new country, Philippines, and we have also begun operations and Philippines.

But that's the Jackson qualifies as yet to us.

Yeah.

And it was there a follow up Mr. Chong.

Continuing to the next question.

The next questioner is you're on Zhang with Credit Suisse. Please go ahead.

Alright, Thank you Juanita and Youre going to take a detour.

And we are not going to you either on sure.

And we're kind of on net the outlay that.

Yeah that grain was add on that.

Hi, This is John.

And that's true.

And I think Ali and I think with.

The agenda.

The Lions share.

And I'm glad and New Jersey.

True.

Hi.

Okay got it.

The lower day rate upon brand back.

Good day and Jason.

And lastly, the Jim go ahead.

And you stay disciplined and Sarah.

And I'm glad you like your line is open.

Great. Thanks, a couple of things.

And go into business.

And ways that the when I got the Danielle.

And you may begin.

On the demand.

And I appreciate it.

Guidance for what that Guy so I'm not sure on that.

Yes.

That's on.

Yeah, Yeah yeah.

And of course, now we're fine with that.

Thank you management and for what for taking my questions and congratulations on the strong results.

2 quick.

Question, 1 is on the loan facilitation.

And then.

And the exposure to the on balance sheet lending and lending by truck.

And have been rapidly reducing and so wonder what's the latest split between the on balance sheet and off balance sheet origination volume and related to non facility.

Facilitation, what's your assessment of.

The the regulation over the loans of any patient and business.

And this model calling for like weather.

At the regulated and.

The license regime for example of under the kind of.

Personnel credit reference law.

And any feedback you can share on.

And being part of it is already lead times with the appreciate it.

And secondly, the.

Guiding day the overseas business.

Following up on your earlier comments.

And can you share more detail on.

On the southeast Asia expansion of what they can.

Hum.

Any guidance on it.

Expect the volume.

Volume to make up.

When the volume of wood makeup of meaningful contribution of them all.

If you bought them going forward. Thank you.

So as of yet.

But can you just where are you on the Knickerbocker ally.

Yeah.

The 2 so I'll just go through and through the <unk>.

2 of the simple quench and job.

And let's take 1 that total share that kind of that 20.

The only the yugo.

Patricia Superalloy divestitures, the couple of the passenger cars.

The email emission day to day of the 2 others and that's built into the you can call on shell Gina just towards the on the ego since 2 day the hurdle.

And so you see quite a lot of nitrogen to the.

So would it be all of the 2 quite a good chunk of yet.

Quick for you and I recall.

Okay on the balance sheet. The if the trust contribution guys on the balance sheet is currently lesser and less than 10% our loan facilitation moderate meaningfully corporate with the banks and consumer finance companies, which is the off balance sheet.

The whole of Thiago and genus.

Joseph <unk> to go on.

Jim why they're here for the Chihuahua.

Okay.

And then Joe do you want to say, we'll launch of the <unk>.

So the home is utilized sandy J 1 of its lower while majority of the geographic sewer tied us and new franchises you could shed light on.

Net each other and that type of initiatives and tell yet.

The theory on us and Jedi contract and if you start going to do it on us.

Losses of <unk>.

Okay, let's try to understand of the regulators and intentions. The regulated is in the process of building a comprehensive net of.

The framework and over the last 1 year plus.

The regulators is in the process of establishing and establishing a comprehensive framework.

The whole toll of the wells, how that kind of net <unk> continue the Yahoo. The Fuller connect the yugo.

And once I tell you of course really conquer outage on the question. So as it goes on all matches of ICR.

Let's go to the to go.

And it took a year why she is holding the gene should you in support of who the format.

For me and it's just the total Sheila Sheila and dwell put on ethical I just wanted to go and geographic eligible.

From our observation that the.

And the regulator is and the process of establishing a comprehensive framework task.

Brent aspects such as data protection funding restriction customer privacy of IP and review.

Okay.

So all of my comments, Alex on the edge, we just do the industrial pointed out around the <unk> trial.

So the toll setting for Apache and Diane Gershowitz and good June 1 the <unk> home think of when the total HR Sunday of slippage Arps and Gina now.

And I'll make sure of the condition of that and I guess, the qdoba activity side of it good luck and instead of actually Louis did you quantify the <unk>. So that's the growth.

But at the kind of intact changing the book, we've chatted with you Glenn and based on our observation for March 'twenty 'twenty, 1 on whats the regulatory environment seems to be much more stable.

And it is less likely for any new regulatory framework to the introduce.

We do it and I know 1 month's worth of the just the the start apologizing edition of that kind of into the switching of Gardner, beating them of golf.

That's and that's a contract net.

And the way you see the here show Dina to go Hudson confuses the.

And for data.

The bulk water city changed here essentially can call of that easier to do kind of will equity essentially got the the machines.

Sure.

In the future of it is left like the for any new regulatory framework to be introduced however of modifications on the carbon.

Relations with do continue.

So that's on an interest of.

So and you've got it dollar adjusted illegal and extension of the to go past and that's it.

And so you've got essentially each and it got relationship.

Let's hold to go part of I'm, Ed to sort of tissue like car just and this was in the paddock daily hydrogel to go off on them.

We think the credit scoring consolidation coverage is very broad.

Much of the 2 of tour 1 of the year or does it have plenty of that car dwell on the trader kind of been how does the go to the yard.

And finally, we are kind of year fitness and other data and you mentioned.

The way, we are linked and glad to go through that of the year part of reducing some of the assistant Judge Honda couple of course homes of the cohort of which the article.

The quality.

And this year that whole net.

You see the Johnny you go you guys do return.

Our business is based on the loan facilitation model, providing comprehensive solutions on multiple aspects such as customer acquisition and risk management.

After loan management and loan metric etcetera.

So he told the Duluth totaled up to the rest of your mortgage on that war chest is also true that up and placebo to the suite attention for the CECO and thinking fluke John the Hugo you can attend.

King.

Warm and Thats to get you off the turnkey Atmos and Jana touches the cool now.

Well most of the Pogo on Linda to tissue so true.

And <unk> session and true to fulfill the hurdle for other Johnny the cool Twitchy and Gateway Linda took the Chico.

The whole Chico of that that's due to lack of trading I think of civil fault lines on the phone line.

For the loan facilitation model, we do not of our stand alone credit scoring surfaces of.

<unk> cost will be further customers to our financial institution partners, whether alone and approved or not is dependent on the independent assessment. So it will do something on John and element of the Jos.

Most of it and.

Also on the DRG decisions yet.

The genetic and thank you Bella and then.

<unk> been beating the goto assuming enrollment.

And from our from this view and our current assessment. We believe we are not within the scope of the carbon credit scoring consultation paper.

Accordingly, the cheetah.

For the T Sangamo and <unk>, where do you for the <unk> session.

And now uhm.

And the Puma other.

And as Tom was once in a year without the hassle free cash flow.

Net.

Momentum for the cigar.

And as you kind of don't rely just on medical homework and Daiichi this the whole talk and relationships as.

As the southeast Asia business contribution is still very small relative to our overall business. We will we intend to share more updates with you went east portion of the business group and the future.

Sure Yes.

Okay.

And I think this is on.

Okay.

Yeah.

The next question comes from.

And with 86 research. Please go ahead.

Oh go ahead of time on kind of harvest and get their work again.

The next year.

And we will see during the counting the degree.

And our Toyota on going.

The 1 instance of sugar and calories on iPhone hiring and annual household income and the standard and that's about 4 of 100 Ibs they've gone through the balance.

Typically the woman.

The port.

On the equivalent of the 1 million kind of corridor on the high for doing the whole looks I'm thinking of moving here.

The other hydro assured guaranty.

As you see the RPC 40 to 45 point and kind of want.

And those who do the shortly and for whom the mortgage.

Thiago <unk> from Cowen and company.

And things are part of the floor.

On the back of form of Canadian graduate of what we.

And we can hold washout.

Alright and antibodies.

And the back for the whole product.

And more so for the Hamburger.

So let me translate my question.

Cash management for taking my questions and congratulations on another great quarter.

First question is regarding on the privacy protection and the recent day some smartphone makers changes of privacy policies for example, like the.

The new IPSA policy by Apple.

And to where the policy change if at all.

Or advertising effectiveness.

Effectiveness and the borrower acquisition Corp.

And the addition regulators clarify some Mediterranean for some information for long island and the App. So we're good.

Adversely impacted our data collection and the risk assessment and modal.

And my second question is on our second quarter of it the way.

The launch of parts of it last month's her and wish.

Share more color on how many institutions have adopted for service and how we charge them. Thank you.

Okay.

Hi al.

And.

The <unk> just as the sales at all.

Well, we're just you didnt when Sheila <unk> due to the.

So the Geos, leading smart watches.

I think the titular consolidated the ultra.

It's actually belong to the same pressure on the regulators have increased the barrier on data privacy and customer protection.

Total for the cable the signage on that just to do them initiatives of year, 1 and Thats, what I think of males appetite out as the go to the Asia anyway.

Well by the <unk> you got to the could you go through non.

Oh, sorry, I took of course and also on the tissue.

Moving to go toward the <unk> glass.

And to go to the other.

Clearly the channel Winston.

That's why net to Sue will move to the aegis of particle hook. We are so for the official Toyota and you've got equity we see.

See I think of essentially of woman and Naples, because you want to.

This year the.

Due to the suite also net <unk> for the Cheyenne is of the charges.

And from their current results the impact of minimum and we are a technology company, we are using our technology.

<unk> ability to serve all of these programs and also compliance is of top priority for us.

And then let me I can kind of what you saw.

And you'll you.

<unk> was the hook, we actually.

But for the.

And both of them and that's all matches and to the <unk>.

So the to go here it is.

And as you Sue will emerge as the fit of when to think of switches that ticker in slab on who our funding of the sheer liquidity and which as you know compliance is of the top priority of bras and into actually notice on Menin, namely our company is actually not of those deals highlighted by the regulators.

Let's now go into finished the quarter usually capacity of what you would see channel will.

And also the 2.2 of our amongst of the geological hurdle for that it's on the Eagle parts of the food and I think of for that for the question. The data that you see you are aware of.

Months ago, senior trendy and shallow that suits. The why they took on the neat bound to performance of high FICO.

Sure the shelf of Amanda to go and she said.

Regarding our best progress with our 14 years of digitalization.

The business, we are helping our financial institution partners and in terms of increasing the efficiency and.

Sure.

And you guys all once again and yes, its assessment of the total.

The hurdle for biologics.

And.

While much of the law that keytruda towards the end to see a hurdle for that and that this year.

<unk> is proud of.

<unk> net just all of the Moon shot.

For the full circle of Sungard Chico.

Hi, George on the capacity.

Our partners actually agree with our views on the parts of business and we are currently working with 3 of them to introduce the derisking of the bus services.

Just on that Eagle bulk losses, you ought to go on that wholesale and Glenda.

I think of full day shall gwenda.

Not sure food to go to reorder because for finishing the Hudson.

And so the key used at the show and.

And Johnny the vessel.

The <unk>.

We are actually providing services such as at the low management recently, the services and the fees collected will be based on the actual results of the performance.

Sorry about physical Hawaii, Hitachi the to be the EAP designation and priority to the Yuka yu.

The of the accretive now sort of anything that says to me and something that will move you pointed patch for Ya <unk>.

Teaching the figure to continue and so on.

On the go we put on about more attention now on the CCAR to go yet as surely to cope with the usual.

The <unk> feature.

The income that you got you.

On top of tweaking.

For the passenger to BP for smaller and during this process of permitting the past the pieces.

Our intention is to allow.

Allow us to have more come true.

And hence our products be for sharing it with more of our institutional partners.

The higher.

And I figure if you don't want the kind of a bank group.

Thanks very helpful.

Thank you again.

And.

The next question comes from outlooks.

With UBS. Please go ahead.

Okay, great, Okay and St. Louis.

And during the Q&A the Chile.

The Dino and he is going to take them.

Uh huh.

Thanks for English, sometimes tied all of the particular sense and problem once again.

And that's in Tableau 10, 1 of it was missing it sounds.

And John.

And you got the whole home debt.

And how much of it.

And the take on it so in Panama and.

The whole.

Thiago win T system.

And what's going on you on the game.

And for 'twenty, and chat and I'd say client channel.

And Oh, you got all the other gets on the holding that towards the time of Toyota and think of them. Once he of course it depends on.

2 of them and so that's the money.

And it sounds and market is doing quite well.

Born out of each of them.

Whole balance on that yeah, its a quiet tied U T.

They can hold for 10 months and months.

And then champions, who come out and then you kind of don't.

And you're on the thing that she's on.

So for us.

And the limits of Nuggets IPR challenge.

So I have 2 questions. The first 1 is on them.

And any updates on the.

And you're doing that and they should go on at.

And Microsoft licensing is there any update on.

On that front and the earlier on.

And 1 of your peers have mentioned that day, they might be to income.

And it works on the pipe and you touched on items second.

Second question is on your international business and I'm wondering would you have any specific guidance in terms of Tam.

The full year on a boat.

And the.

The contribution from that business and on.

So as you as you ramp up your international business, what's the.

The implications on your on sales and marketing.

And.

And and <unk>.

For the correct.

Wondering if you could share of research.

And on the customer acquisition cost for.

For your international business. Thank you.

Hi, This is Alex.

A question that can kind of.

And Joel.

Well, it's just the I should say.

To the to go the other day, Jim glass to the knee.

It will include the agenda horizontal.

A kitchen sink of key 2001 of the ratio that you acquired net came with minutes in the middle of true title to the assumed the heme sheet geopolitical you'll either to the shout out and expands the potential by email.

So you do show that interest you know major support sufficiently Chile sequential.

Bulk water into the town data for the GM, Gwen and she said, we'll miss and the Fisher Island to the team meeting a total.

Now I'll walk we tie it to the should you see on the APR changed with the twitching nausea.

I think the support to go out and think of actually shut that down the hall.

Okay, we got to the nationwide micro lending license programs and we are doing the process of evaluation and understanding the regulators requirement and stay has been no update from the regulators since the previous consultation paper, we will share more details of the market is.

And as more information from the regulators.

No hope of Indigo.

For the year.

And car.

Our move to go, especially and say to the EQM assets on AI.

You also have to go for them.

And would you of the Hudson and yet here, we are seeing Sheila and I'll to Chad to go on route to go dark tobacco E G. The Chumby Rd and yet Doug.

Some day.

Santos of the Batesville EBITDA on the guts and Donna John negotiating.

Thiago <unk> zone.

Okay, although the Panama is rebounding and the southeast Asia, we have to compete and to achieve true 2 photons group on a year on year business.

In Southeast Asia this year.

The whole told to go mortgage auto and so you can kind of on 1 month of say a pure easy to women's I told the other telco core classes of total of essentially 1 of the kimco.

A woman and say to the NTT Ltd.

And I apologize if that helps for Wayne Walgreens.

Homogeneous Thomas.

And how much of ways at how each of dose of <unk>.

And that's it.

Fintech, that's the the ethylene gas and the pending shutdown.

And on the China App.

Okay.

Okay.

We have disclosed we have a quiet over 300, thousands of new customer in Asia and.

And our lending at each other.

On.

Our net.

Indonesia is very popular and between the last 6 months ranging profit of promoted the 31st March.

In terms of impact lending that we are ranked number 1 in terms of balance.

Okay.

And the whole women's and adult either think of a horse for us.

And the CECO assisted with the Adidas and the whole time lots of Ocean stage.

And.

So a couple of the questions later on.

The <unk> to go out on the pier 1.

On the cost of customer acquisition and southeast Asia is relatively lower back as the business exit reach and change the cost of acquisition is expected to change as well okay. The Gulf.

And you should all of that just reported other for Coke when if we're kind.

On the top of dwarf the easy to us on that that cash is as about Johnny the Eagle.

Shipping.

So the Xiaomi <unk> Eureka.

As you mentioned and catch up in the first quarter the cost of a successful new ballroom and mainland China is about 450, RMB and this has shown improvement compared to the previous quarter. That's.

And that's for sure I don't know whats your that so let's say, if I'm and again the data on that.

And then to go home and the tab that says you seem CDO debt the garage door opener for us and you got to assume.

And with divestiture of $2 just took on Moshe yeah purchase inside the essentially those horizontal so the seawell emissions at the total lots of elements that gets resolved and the auto silica.

And NFL and college handoff and until we are the article for cultural day patient quality.

As you know we have this will become an important partner with men.

The information for the standard.

So you think of now if we go with that as you sort of women's that Goldman hurdle of biological hurdles on July sort of congestion.

And once it goes I started <unk> and things like that.

And.

And our cooperation with these partners has become closer and leading to a more strategy partnerships.

Let me walk that you.

So you you on the definition of Ami the tissue the U C.

<unk> to the total and Columbia.

Thank you operator with the Houston. So he took the day its theres only of Cui.

She can't that woman think of Hawker jump on that I think I assume youre interested into the UK.

And you Jody.

As our risk metrics and constantly improve VITAS is only 2.

2 of decrease in our customer acquisition costs.

Oh excuse me of Alex.

And then sorry follow up okay.

Thank you again, if you have a question. Please press Star then 1.

The next question comes from Eric Lu with China Renaissance.

Please go ahead.

Oh go ahead for a lack of harping on the I think I would take out of Chile, Chile now what the day of itself.

I'm sure on the kind.

And I'll take the Gulf Coast, the time turnaround.

On the wholesale nowadays, how does all that kind of out of them.

For and alcohol for you and you can be for sure you can put out and there from our people.

Okay. Thank all of the lengthy.

And my question is.

And we felt the quality of has been luxury and pool for Gaslog to know if there's any change to our current client profile. Thank you.

So as of yet.

Okay that is non interest while Asia inside the <unk> block and kitchen <unk> go into the.

The <unk> should that is of course on the NASA faster and <unk>.

And this was the origin of the Kate So let's finish I'll, let Jamie capital.

On the Nicaragua figured you would.

The the change and Qingdao and.

Yes.

The issue.

And now stands at 1 <unk> to the US is total of ammunition.

Our customer profile has actually changed a lot.

The <unk> era, when Youre about 15% of our board has <unk> records and today over 95% of our bulk of awards has PD Ot record the.

The the whole wish on the way to go up of associated with the huge Josh It's always the momentum total Jonathan.

The other eager to try and see how they get off of <unk>.

Sure.

And we would also like to share more color on how we are able to game such as and you can change and our asset quality.

Sure Tony and interest.

Sure just to go on the job also on does it go you can switch on Glenda.

<unk> is the cost.

The other than I assume the league of should allow the eagle to the even the knit top.

Yeah, well the 90 that you got the Asia Sue Amendment the thought you got.

Please help me sort of yielding shovel, okay. The reason for the improvement largely due to 2 of our capabilities number 1 our digitalization capabilities and number 2 constant data accumulation.

Constant data accumulation, enabling us to upgrade the effectiveness of our model okay. The other thing.

And this was the 1 and India while monkeys.

For the tide, you should think of shoot shoot today, the English and Andy and I. Thank all of <unk> key elasticity and tie that to go the G.

And on the machine dialing on core touched on but you need to finish the bulk of Hawker range.

Because of that whole group <unk>.

<unk> just sort.

And that this was the widened and the need.

Our digitalization capabilities can be proven in many situations for example, during the last for the years, we have track record and customer acquisition and risk management and after loans management et cetera.

I'll just add on and then you know, let's see cash society the type.

<unk> total AG and jet machines out much lunch and huge and engineering.

<unk> and hosted element sides of the 2 net yeah to the.

So you got to go to go which is going to entry Shanghai TCE of Jimmy and element of the named and they needed the seal.

And these capabilities has been proven during our PTP era and after our threep transition to better quality borrowers. We have also seen multiple improvement across appreciate and our metrics as we leverage on our digitalization capabilities and these capabilities have also been leveraged on to our southeast Asia business, where our business is expanding rapidly.

No way that we will Miss you see of hygiene tussle articulating the efficient debt since as you go for aging debt to go through the why you and the need of that to go to go out to the to the Cushing and.

And in the future.

And believe our digitalization capabilities kind of also deleveraged and non finance industry across multiple scenarios, but.

And then the way they feel it's all the usual niches of the suite of today.

So you've got that urologist, and Hugo you and any charter the mills Tau So July I think the.

All of what she has actually made Ohio bunch of Argentina and Chile.

And another very important factor is the constant data accumulation.

The debt Okay. Because I was just the 1 that's actually I think for the EOG and shouldn't you got 1.

And we'll let you go and you will see the why you and the knee touch EBITDA look at the scene.

Total woman.

So the key input at Ingalls request for that.

<unk> T Goldman do shrink of the Hush Hush neglects enjoy out of that you guys and John.

Constant data accumulations, coupled with the digitalization of capabilities tabulate. The results are small data being collected relative to a more accurate model, hence increasing our capabilities as you can see from our transition to higher quality borrowers driven by the increasing number of new customers and resulting in higher loan origination.

The city I think of change at the.

Got you got us on the Sudan central offices, and there's still the Chilean who realized net as a percentage of the Chile, she's sort of gene pool on the wholesale woman digital sushi and the Chisholm moments ago, you and even shovel, so touchy Eagle Ottawa and tie that you got the shoe on that you guys sound and Michelle.

And as the number of new quality ballroom with increase of the platform with the higher loan origination volume all of this will become a positive impact.

So it's sort of a dual suitable months ago. Since you asked the vessels that you think on its Melissa on the.

Most of the Hudson and this should do it for your questions for bill provision for him to build that.

And we are confident that with all of these capabilities as our key operational metrics such with RBS.

Proof.

We are able to.

Half of healthy growth for the business.

Hey, Erika.

Okay.

Thank you.

The next question comes from Henry Young with Gold the Dragon. Please go ahead.

Alright, Thanks, Jack on the Sunday of La.

And that's the way I got a whole of Nag and considered she though like them all with you all of the yet.

On the galleys happening on highlights just how big of a part of me and social media and all women die.

And she said unionists and how it stands at a total.

And so with all of the evening they'll wait for the whole nongovernment. So you kind of calculus for women senior and.

Judy of wisdom on kind of horizontal and hung quarter for sandy the ECA artist and Josh or should I think the whole season.

That's the only of women so of the hall of the whole core Natus, yeah, it'd be dealt hold with whole hung emails I don't how I sort of hung.

For the sound of women's Omaha woman, So for me and the some of you go for it in terms of Lee who is also go on and.

And go pulling out of school day close you can get that and Ali the whole known faults and while it's on track for yourself and Scott you'll show of women whole shoe Carnival.

Tung Chung SEDAR 2 of you.

<unk> hung do you see a call the onslaught of thoughts of the loss of the mpls and stuff, but young women and so it's all good and see.

Our non cash balance at the highway would that took the.

So do you want my life for the eco system.

Hong Kong and the U T system beyond the.

So just congrats on such a strong results and as we see similar.

For the evolution has been doing very well and South Asia, Southeast Asia monetary and especially.

In the Nisha.

And like.

Outperforming all of the local players after COVID-19.

And you know like even for for the for our peers, who have been doing up a bachelorette and larger business in mainland China like none of them has seen the assets. That's all in overseas market as our company can can you please share lie and what kind of core <unk>.

With all the comparisons that we have to.

To be able to true.

<unk> in the Southeast Asia market and would you. Please also share your P.

Plan on the overseas expansion and the total addressable market over the long term. Thank you.

Hey, Thanks, Harry this is the phone.

I'll try to give.

Give a brief view on your question and I think thats the sort of.

Good question.

I think our core capability and cost strength of the company either of 2 folds 1 is.

No.

After so many years, we were really good at leveraging data and the technology to improve efficiencies in.

Business process and.

The particularly I think in the past our main business has been on this.

And the loan Tech business.

The business.

The view.

And the secondary.

Secondly, I think the company has a very strong.

The value system and.

The production in our business I think it has.

We have the very strong risk culture, and we really respect with risk and.

And we treated the various tier 3.

We don't sacrifice on risk.

For achieving short term growth and I would really look at things.

And a very long term way.

So I think and these are the 2 key.

The strength of the company and I think.

The company has experienced ups and downs I think of it.

Before we went IPO.

Had a period of rapid growth and after IPO.

2.

Severe regulatory environment and the external environment shifts we.

We had a couple of couple of years, but I think.

Whats inside the company of the fundamentals of the company really we're able to.

Enable us to go through that tough period, and I think our track record.

Doing good years and tough years has said.

<unk> sales a lot about.

Our our fundamentals.

And so.

The second the second part of your question I think.

We are really bullish about the the southeast Asia, and South Asia Southeast Asia market I think rough rates.

Half of the size of.

And on China, So I think even for Indonesia, Philippine These 2 countries combined.

We are very small we are very early stage. So we are developing very fast.

But we think of the market is huge so we think.

Just like in this market, we have a lot of opportunities there our very bullish about that and.

And I think I'll also add.

We will continue to explore.

Getting into other markets.

Get into other markets when operating opportunity.

Opportunity presents but I also wanted to I could take a step back coming back to what we believe.

The strength of the fundamentals of the company and I want to call debt.

It's actually not limited to only loan for loan facilitation model on non tech thinking about that and it's really leveraging data and the technology to improve efficiencies.

And our long term base value.

The system.

There's a lot of opportunity for us to leverage of the cost strength of the company.

To improve efficiency and so.

And so we are also exploring how do we leveraging these core capability to enter different markets and given the businesses and.

And we will share with the with the <unk>.

Share with the market.

Here with the with you guys on when the on more meaningful processes, but the they're.

And there are bunch of things and I get in the incubation skip stage of the company.

And Harry.

Yes, just a very quick follow up.

So in that for.

Shall we expect the sort of a T shirt and meaningful.

Light of day.

All of the all the assistance of both on the topline contribution and also the bottom line contribution towards the end of this year and the next.

Yeah.

Possibly.

Uh huh.

As a as the business size of continue to grow.

Some of our new business isn't namely like particularly like and the international business.

And we and.

We are very careful because for example, and this is the first time, we disclosed the international business, but.

The internally within the company, we started the business several years ago right.

So.

But like you know we decided on until we feel fairly comfortable and then we will start to share some information and I think as the business become more meaningful.

Bullish about the business of the business and you know very healthy stage.

Very healthy like in.

And both of growth as well as the unit economics and as of.

And it becomes a more meaningful part of our entire business, we will share more on kind of more insights on the MAU numbers with the team. Thank you.

Thanks.

As there are no further questions now I'd like to turn the call back over to the company for closing remarks.

Thank you once again for joining US today. If you have further questions. Please feel free to contact the evolution of Investor Relations team.

Mike.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

And then.

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Okay.

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