Q3 2021 FinVolution Group Earnings Call

November 18, 2021

Hello, Ladies and gentlemen, thank you for participating in the third quarter 2021 earnings conference call. The Involution group at this time all participants are in listen only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded.

Speaker 1: Hello, ladies and gentlemen. Thank you for participating in the third quarter 2021 earnings conference call for Finvolution Group. At this time, all participants are in 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 Jimmie top head of Investor Relations for the company Jimmy Please go ahead.

Speaker 1: I will now turn the call over to your host, Jimmy Tan, Head of Investor Relations for the company. Jimmy, please go ahead.

Thank you Andrew Hello, everyone and welcome to our third quarter 2021 earnings conference call. The company results of what you shoot via Newswire services earlier today and are posted online.

Speaker 2: Thank you Andrew. Hello everyone and welcome to our third quarter 2021 earnings conference call. The company results were issued via Newswire services earlier today and are posted online.

You can download the earnings release and sign up for the company email alerts by visiting the IR section of our website.

Speaker 2: You can download the earnings release and sign up for the company's email alerts by visiting the IRR section of our website at irr.simpigroup.com.

Adult can be grouped dot com.

The penchant, our chief Executive Officer, and Mr. Jamie <unk>, our Chief Financial Officer will start the call with Dr prepared remarks, and conclude with a Q&A session.

Speaker 2: Mr. Feng Zhang, our Chief Executive Officer, and Mr. Jia Yuan Xu, our Chief Financial Officer, will start the call with their prepared remarks and conclude with a Q&A session.

During this call we will be referring to several non-GAAP financial measures to review and assess our operating performance.

Speaker 2: during this call. We will be referring to several non-GAAP financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in this meeting or as a substitute for financial information prepared and presented in accordance with US GAAP.

Non-GAAP financial measures are not intended to be considered.

Or as a substitute.

Sure, It's information protection and presented in accordance with U S. GAAP.

For information about these non-GAAP measures and reconciliation to GAAP measures. Please refer to our earnings press release before we continue.

Speaker 2: For information about these long GAAP measures and reconsideration to GAAP measures , please refer to our earnings press release.

Please note that the discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 90 995 <unk>.

Speaker 2: Please note that today's discussion will contain forward-looking statements made under the Safe Harbor Prohibitions of the U.S. Private Security Simplification Reform Act of 1995.

The UK based in Boston.

Speaker 2: forward-looking statements involved in parodies and uncertainties, as such. The company results may be materially different from the views expressed.

And uncertainties as such the company results may be materially different from the abuse expressed today.

For information regarding these and other risks and uncertainties are included in the company's filings with the U S Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, except as required under applicable law.

Speaker 2: Further information regarding this and other risks and uncertainties are included in the company filings with the U.S. Securities and Exchange Commission.

Speaker 2: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

And of course, a slight presented on our IR website, providing details of our results for the quarter I will now turn the call over to our CEO. Mr. Feng Zhang. Please go ahead Sir.

Speaker 2: Additionally, we will 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 , Mr. Feng Zhang. Please go ahead, sir.

Thanks, Jamie.

Speaker 3: Thanks Jimmy. Hello everyone and thank you for joining us today. I hope you and your families remain safe and healthy in the new non-COVID-19 environment.

Well and thank you for joining us today, I hope you and your families remain safe and healthy.

The COVID-19 environment.

Thanks to all of advanced technologies industry, leading digital capabilities and a strong corporate strategy execution, we continue to expand our business with robust momentum across each of our segments.

Speaker 3: Thanks to our advanced technologies, industry-leading digital capabilities, and a strong corporate strategy execution, we continue to expand our business with robust momentum across each of our segments.

Both domestically and internationally.

Speaker 3: both domestically and internationally, giving our stronger-than-expected results.

Our strong stronger than expected results greater confidence in business trends and successful strategy execution. We have raised our total transaction volume outlook for 2020. One we now expect transaction volume for the year to reach between one.

Speaker 3: greater confidence in business trends and successful strategy execution. We have raised our total transaction volume outlook for 2021. We now expect transaction volume for the year to reach between

30 billion RMB 135 billion RMB, representing a year over year increase.

101, 3% to 111% above our prior guidance of 100 billion RMB 220 billion RMB.

Let me now outline some of our third quarter highlights total transaction volume maintained its strong growth trajectory, reaching a new record high of 38.1 billion RMB, representing an increase of 100, 100% year over year and 14% sequentially.

To break our total outstanding loan balance expanded to 45 billion RMB in the quarter, representing an increase of 100 or 1% compared with the same period last year. This growth was primarily driven by a new fast growing and a higher quality customer base, we gained over 1.1.

8 million, new individual customers in Q3, making the third consecutive quarter during which we've exceeded 1 million new borrowers globally.

Our domestic business demonstrated progressive growth on the fear of regulatory Guy doing guideline.

Looking at our transaction volume composition, China accounted for $37 1 billion RMB, 118% year over year and 14% sequentially. We are also pleased to share that in October as we continue to apply a better quality borrowers our percentage of loans facilitated to at or below <unk>.

<unk> 24 for the increase to <unk> 80 per cent compared to.

Just the 29 compared with just 29% in Q2, why our averages I borrowing costs further reduced to 24, 3% compared with 26, 2% in Q2, indicating a higher compliance level and reflects our commitment toward the greatest financial income.

<unk> for the society.

I would take rate for the third quarter remained stable at four 2% and we are confident that a cap rate future impact on our financials will be minimal.

Our high quality borrower base expanding rapidly with 827000, new customers acquired during the quarter.

Our diversified of borrower acquisition strategy is walking efficiency and we are well positioned to leverage these strategies for further business expansion, we have established partnerships with multiple leading topic platforms and expect to further diversify our online acquisition channel those are all.

Offline customer acquisition team also expanded to over 700 employees in 20 different cities.

Covering around 80% of China's provinces, we expect our offline team to reach around it.

Thousands of employees by the end of this year.

As we refine our risk management systems and enhanced our asset quality, our 90 day plus delinquency rates remained low at one point or 4% and the vintage delinquency for the third quarter is expected to decrease to below two 3%.

Moving to our operations for small business owners.

During the quarter transaction volume for small business owners grew rapidly to seven 9 billion nine be accounting for 21% of total transaction volume for the period. The total number of small business owners. We served grew to 488000, an increase of 20% from the previous quarter was huge.

Market potential and a more supportive regulatory environment, we believe small business owners represent.

<unk>, a very promising opportunity for our long term growth going forward, we expect transaction volume for small business owners alone will comprise approximately 20% of total transaction volume for the full year.

With respect to our global expansion, we are thrilled to explore new product offerings and have made impressive strides in strengthening our international partnerships. For example, we entered into a strategic cooperation with PT Bank, Joggle, Indonesia, which increase our local loan facilitation capabilities and broaden our presence across <unk>.

Mark the settlements in the country, including retail mass market and others opening up new potential areas for cooperation in addition to our facilitation business. We teamed up with local E. Commerce and you wanted partners, such as JD, Indonesia, and Dana to launch operations in the buy now pay later sector.

Our customers and partners initial feedback has been overwhelmingly positive and we are confident we can achieve greater success in these in this area.

Along with our venture into the NPL sector. We are also shifting towards better quality customers as to achieve high quality growth with this objective in mind. We have also been increasing our investments in areas such as technology talent development and customer acquisition for our global expansion.

We have also taken the initiatives to groom local talents for management duties, reflecting our long term commitment and our confidence in this business. Despite the NUCYNTA resurgence of COVID-19 cases in southeast Asia, we were still able to generate over 1.15 billion RMB in transaction volume up 233%.

The year over year, and 12% sequentially concurrently our outstanding loan balance for the quarter was 480 million RMB up 269% year over year and 17% sequentially.

Going forward, we will continue to leverage our technological capabilities to strengthen our foothold in countries, where we have establish a presence while exploring potential cooperation with local financial institutions e-commerce platforms and the other players using our multi level approach. We believe we can acquire better quality.

Customers and to further diversify our business models, making financial services more accessible and inclusive of our borrowers from around the world.

The global financial technology industry is evolving rapidly and over the past several years, we have successfully demonstrated our capabilities and achieved a tremendous growth in this dynamic industry. We have advanced multiple strategic initiatives growing our customer base, while improving the quality of our customers are looking at.

We will continue to pursue premium quantitate goes in China, while capturing massive growth opportunities in international market.

Last but not least I would like to highlight some of our successful corporate social responsibility initiatives. Since 2016, we have performed our duty.

You can see as a responsible corporate citizen as we support various social welfare organizations donated school surprised so children and beauty kindergartens in rural Montana areas and the nature of the donation cumulatively over.

The two regions you need also together with our founding partners. We have provided a low interest loans for small business owners, increasing access to quality of financial services for the underserved segment of business Society too.

To build on our effort to help small business owners as they recover from the pandemic.

Lucian will provide over 100 million RMB of interest of freedoms for small business owners. We are proud to support the backbone of China's economy and to do our part for society. During this challenging time with that I will now turn the call over to China issue, who will discuss our financial results for the quarter.

Thank you Paul and Hello, everyone.

Well piece, that's about Lucci delivered respectful foundation the operational results when he saw the culture. All the time you thought you would.

As a result of our continued efforts to transform our business and the technology to meet the needs of credit service industry.

Our net revenues, you'll see about RMB, two 5 billion up 6% quarter over quarter.

Yeah.

Oh, well profitability also continued to improve during this quarter.

Leverage ratio across our business is relatively low at three top see pleasant nytimes.

Our balance sheet remains solid with five 1 billion M B, a restricted cash and short term investments.

He's a pandora, we successfully issued and at least our first ABS.

On China, Shenzhen stock exchange.

Marking an important milestone in our transaction towards bad quality borrowers.

Finally on our platform continued to be M pool and a stable.

We have accumulatively cooperated with Iraq sick T license to financial institutions, and they will constantly maintained a strong and robust pipeline of potential partners.

We expect future improvements in the efficiency as we continue to diversify our funding.

Solstice.

This will result, a powerful testament to our effective business strategy and the skillful execution.

We are confident that we will gain momentum as we continue to accelerate our overseas exploration.

It always will be ceased for small business owners and the increased investment in technology advances.

We will also continue to invest in our core capabilities and infrastructure Big data insights and yeah type of debate Hayes and our people to best serve our customers partners and the communities around the world.

Now turning to the financial results, we'll just put the culture in the interest of time I would not walk through each item in Lebanon is called Pizza to our news release for more details.

Net revenue increased by 41% to two 5 billion I'm being sort of a quota of plenty of thought you went from one 8 billion and be in the same period of 2020.

Primarily due to an increase in loan facilitation service fees and the post wholesale loan facilitation service fees.

Loan facilitation service fees increased by one country and the 21% to $1 1 billion and be in the third quarter 2021 form 486 million be in the same period of 2020.

Primarily due to the increasing to transaction volume.

Post office the tissue service fees increased by 124% to 316 women and be in the third quarter of 10, 20 years, what country and thinking what made them be in the same period in your 'twenty.

Primarily due to the increasing outstanding local service to buy their company and their low impact of deferred.

A few piece.

Guaranteed income, whereas six country and the 45 million be in the sort of culture. All the times 91, compared to 700 and the 14th stay about media and be in a same period of 2020 as a result of improved as our college.

Net interest income increased by 28% to 333 million in be it a sort of cultural all the changes that you win.

For 200, and the 16 women M. B in the same period of 2020.

Mainly due to increasing transaction volume in the international market.

Other revenue decreased by 19% to 112 mid M. B in the third quarter all the time.

Well 100, and there's 38 mid and be in the same period of 2020, primarily due to the decrease in customer referral fees from third party platform.

Non-GAAP adjusted operating income, which excludes share based compensation expenses before tax was several country and definitely alumina meeting I'm be instead of quarter, although tend to do with.

Representing an increase of 8% from 619 8 million M. D. Anderson period, all for 2020.

Net profit was six century, and there's 13 2 million M. B in a sort of culture of tiny country would.

Representing an increase of 6% as compared to 500, and the 19 7 million be in the same periods of 2020.

Whereas the COVID-19 reason to resurgence in China and the other regions around the ward.

The company will continue to closely monitor the pandemic situation and remain vigilant in its business operations.

As such the company holds a cautious view of all of its operation and anticipate this transaction volume guidance for full year 2021 to be between 130 billion M B and a $100 75 billion M B.

Representing a year over year increase all 100, and the 3% to one country and 11%.

Above our Pri Guy.

Guidance, all 400 billion M B, 200, and you're trying to build out and B.

Going forward, we are confident to maintain healthy growth in 2022, and they resume robust goals for the year ahead.

That concludes my prepared remarks, we will now open the call to questions.

Operator, please continue.

We will now begin the question and answer session.

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

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

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

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

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

Yeah.

The first question comes from Eric <unk> with China Renaissance. Please.

Please go ahead.

Good evening management, Thanks for giving me this opportunity to ask questions and congrats on the Hollywood, resulting into a corner. So my question. He asked about the outlook for attention then you too. So I'm kind of please give us some color about 10 22 in terms of the loan pricing target breaks down below the target I are bad.

And dumped into anything too also about the origination play and developing pioneer or things Marty. Thanks.

Okay.

Yeah, no what I would actually have to go linear.

Oh, you mean, the Q T. There's illiquid, while not two T to hit so I wonder if it was Albemarle since I called it also not see Dominion. This year. She was telling me he got it.

So we saw that and she is actually true.

Specific numbers for 2022 early at this stage, we will provide the guidance for 2022 at a later time.

There's a whole would you do you do that you call out yet because I tell you. If we have a shell woman to a minion they hit shelves.

Got it.

Yeah.

Now, let's hold off the other one you know I kind of Omidria legislated to Virginia and she now why do you think I'm supposed to stick on hall.

To me you know.

Okay. So it won't be the one thing that we.

We continue to do what we can call me.

We've seen guys to where it was years ago when he was a poodle.

Natasha Nitrosamine, yes, he's a courtyard kimco and listen to the Mueller co teaching notches at eight P. M.

From a quick walk into the two parts of Houston for a lower beta switching to choose all.

So most of the weight per day production.

Production exceeded that tied to kind of opinion to 20 that you will find you.

We will also take the opportunity to share our talks with the market. We think the macro environment. If you haven't been very good at.

Macro environment for next year, we will have some volatility and unlikely to execute this year.

Glaciers directions has slightly luxury being clarified how Bible, we still need to wait and execute the orders at brown leather.

Kept some companies who have more workload when executing this August at ground level overall, we will have a more cautious attitude in for 2022.

No one else wants Union a woman she is and she do the tick up.

Also when looking at the guidance.

She is junior to treat illegal fishing utada jonnock shall be shunyata inches troubled Lucille Sunday that Jonathan Pinto.

No I think the thing that really changes yeah. Just one more question on questions about your supplies that you want.

Well, New York Chicago, you shouldn't go junior in the.

Thank you the poll.

While the junior the E tailing.

She says she shot out of the bathroom tissue.

And the whole team to somebody who tune you end up essentially the body or shadow boxing you in that she didn't know she said.

She huh.

Not the way you go a woman the agenda. Johnny you got you could you can type well.

Or when I should say talking I'm sorry.

Sorry, Chris Young shipyard tissue bots and.

You won't shop and go to college.

Yeah, Pangender, telling isn't all should.

Well Linda switch a little belt. She bought so you've got talent. She will engender cuts you shoot it syndrome.

We have achieved strong results this year.

In 2020, we have successfully complete our pizza in transition and shift towards better quality bowls, which results in our transaction volume growing more than 100% year on year.

Our key operational metrics Hassles has shown significant improvements for example, our 90 day plus delinquency ratios improved by around 70% to one point you were 4% in this quarter from three 4% in the same period last year also our funding costs fell by 7%.

276% in this quarter from eight 2% in the same period last year.

As the leading technology platform, we are confident to maintain our stellar operational metrics and achieve stronger growth than our peers.

Objective is to achieve long term sustainable development.

So we're looking in California.

He kind of all women say 90 to one opinion, John I pulled out of Australia.

In our hotel she is a woman the penutian jobs or dollar or so did our citizens, which I'll leave it there.

Not told the Dominion of China, one of his knowledge on that when we see G Dominion South by Newsweek element of pin reading gap with each other or central Europe.

Yes.

As you can see our I V.

The spreads in the third quarter.

It was 25, 3% in October.

Borrowing costs further reduced to $24 three.

And for next year.

We expect our borrowing cost to be below 3%.

The industrial once I honestly I think the shootings, all or most of the time it also.

I shouldn't be there soon so we're talking to them.

What P&G honestly doesn't change a whole machine that you can keep on doing it in total.

In terms of reducing borrowing reached 224% our pep on progress.

With our peers and we are very well prepared.

If we are talking about the 24% we have basically achieved this goal.

Okay.

Yes.

Okay got it.

Thanks.

The next question comes from ongoing Wong with 86 research. Please go ahead.

Yeah.

Thank you Bonnie I'm doing what you wanted to you were not going to you are married and you do that.

Right.

What are you going to actually go and he and our Eagle one keystroke onesie, Jacob if I'm being cyclical, but not actually change of control.

Yes.

Okay, just one more channel maybe has become challenging huh.

Got it.

Hundreds of times ABS vaccine.

She took a funding cost me the P&L.

Yeah, but want you to walk through why you would you go.

Oh, Yeah, I'm seeing money from Chinese <unk>.

Yeah.

Could you do the connecting job Oh sure didn't equal you're probably aware languishing.

And I think it was did you face.

Ah Thanks management for taking my questions Congratulations on a great third quarter results.

I have two questions the person party underfunding of soccer in Cogs. So what is the current situation of the ABS the shelf registration.

And how should we project the funding costs as a proportion of Vegas funding to increase secondly, all the international businesses. So can you share us more updates on the final pillar of the business and what about the overall growth of the international look like going forward. Thank you.

Yeah.

Oh this is yeah, hi al.

So is that why you're a b S theyre, well, mostly say Joe with D. A woman the deaths of ABS as well by Sheila.

It's a good idea when will English they eat a whole woman dovetail, mainly due to wood.

And I guess, what's the.

I'll move to the particular those aren't yes. So you go fishing tool a milestone EDA Johnny English machine.

As of late September we issued our first ABS, which is a 200 million RMB.

Eight coupon interest rate at five 5% and this is actually a milestone for the company.

But also just as you know I'm wishing that since I have it on T. G E.

So let's do that.

There's still one loan I mean, your free intouch, whether you're comfortable that abortion, reaching out with you they'll months wanted to Tinder has a solid track shipyard shouldn't either.

Oh man, who each elasticity.

So you do have to go out for a job well done.

But he got hijacked.

Will I be yourself, which one woman and she goes to sequence the genome facial chart eagle towards improvement.

Our ABS shelf registration.

And this will be to earn important priority for us in 2022, we believe we are on track and the process has been smooth.

We believe in the future.

When the ABS shelf registration has been complete ABS will become a very important composition of our funding sources.

Oh, Oh, Oh look what it was.

Hum.

I shall woman.

Yeah, a quick walk away. She said this is a call.

Now that that's at all a month.

Oh, no, yeah, cyclical, which Archie Jean can you say what time do it you can pass the torch I wanted to you.

Now when will that kind of goes to that yeah. I think when you discharge Judah conjecture facial stop what's your name because sometimes you go through just good idea that you're going to ask one question on the comp well machines that that's one of the in the Philippines.

So theres been courses teaching the jewelry.

Not to the Chumby Jaguar Soo Lee I'll make lower cyclical you don't glad you're on the topic of Genco tissue are sufficient to go about it.

He wanted to holdings or <unk>, which is about like how are they.

In Asia they bought.

I'm not going to have some quarters. She that's helped us in the body is that.

She built a twin Gore suite, a and suite.

Sure Josh.

People say hinder bounty that shall be seen dead.

Yeah.

They'll.

So it's not like what are the key Washington Route.

She has a couple of doses as Sandoz you can't.

That's all just what is the gene that both Alabama and Josh.

What's about Huntsville.

So you can see that our shingle catalytic opportunity that surgical question, how should we don't need to wait till we have that jumped out.

Police agenda chunky.

<unk> sure if they don't you die.

Yeah.

Let me take the opportunity to share some market data with you.

The countries, which we have already established presence.

Massive market opportunities for example, Indonesia, Philippines, and Vietnam has a combined population of around $500 million.

It is higher than the U S population and it is not small compared to China.

And its loans to GDP ratio is about eight 3%.

We have a low credit tenant credit card penetration rate of between 3% to 4%.

And when compared with China. These countries have few opportunities for example, China loans to GDP ratio is about 48% and a credit card penetration rate is around 21%.

And the U S loan to GDP ratio is about 20% with a credit card penetration rate of 66%.

Oh, well the geological work out well and Linda.

Yeah, so the washout of peanut Buttering young.

But just don't quite intruder well this is Jay Chadha eagle charges either.

Well look the way I think we'll just see if we're going to release, a touchy eagle puts on Kashi.

John I'll take a tissue that's unimportant. So you know what most of the Boise State Huntington's too bullish at all it's a good entry himself.

I just wanted to choose although that doesn't tell me did you haul occupied all on your hurdles.

Oh, we'll finish all of them if we hear you on that.

So let's go do it yourself now so you're doing that well make sure that you should not go away to get these physical courtyard that took a power user entry into China is hunting she wants you.

We are different from other smaller platforms our objective.

In the.

We are looking for long term sustainable development, we believe developing countries gradually lowered net interest recap overtime and we have already begun shifting towards better quality borrowers and before we begin operations in a new country, we will enter a compliance by having the appropriate licenses in place and so.

For the right partners from the operational perspective, we will enter the market through easier put out and eventually shift towards higher quality products like.

Higher quality borrowers like what we have been doing in China.

What would you don't want me I won't Yoki popcorn knee, where majority of it was on the two Virginia and now with that I'll just yet.

I won't shoot.

But its old lunches or you think that you need it all up I know political agenda Eagle attempting and all guns, how are they totally adult woman on Peter Peter the other official Sean Jean do I E G.

<unk> Candela took a b I don't believe that that's a good target.

Now turning to the to the attempting to Gulf Coast, Washington, how should we be ourselves.

No problem.

That all your wishes.

She just usually lock in Israel keep awake at night is when you go from here.

Not all months ago, tweeting goes on launches or EMEA Goldman the cool could only hurdles, but she's just showed artificial tissue that you have a quick.

Oh, well I don't lay awake went on to either enhance silicon times, just has woken border patrol Natalia.

So do you Wanna intracellular hormone Tula.

Okay assumption technical it's what woman she says a condom Peter you call it.

Hum.

Two other tool, while magoon Banca juggle seeking candela Tuesday, the childhood with inflation now switching what may and June could actually coaching.

You can engage in Chile.

Central to.

So with that John that you go all.

The way that that aren't even close to that.

Three of them that you can hit on all of these functions.

Our success successful business model in China can also be very picky in Destocking intra country. For example, our CEO. Mr. Dong has mentioned that we have studied <unk> in Indonesia, and we are working with partners, such as Donna and J D. Indonesia.

Sure.

As for the results, we will be sharing more results with the market in the later quarters.

We intend to explore business model with banks and other partners for example.

We have also begun to loan facilitation model bank juggle in Indonesia, and we have secured an additional U S dollars $30 million.

Funding sources for our loan facilitation business in Indonesia.

So huawei between Oslo woman say would you call yourself a total situation.

No. It's almost always a woman's got a highway <unk> candela.

The drawback in the country.

Yeah.

I hope all of our tissue, meaning.

Colombian does he go ahead of time.

I'll just add something to watch.

For making that possible.

As you well know yet so well that we are feedstock.

So trading that with tissue without a doubt that would be it was harder to get home.

We have great confidence in our international business and will increase our investment in this business segment.

We have established an international team.

We opened 901.

And the work scope of these employees being just from R&D operations and marketing and by the way. The localization of these international employees has reached 86% and going forward, we will continue to invest in our international business.

Okay image of a falloff.

Uh huh.

Aaron teams, who know what they're doing because I wasn't sure it will come down.

Sure sure.

For the.

I'm going to be at the high end.

Oh no no what do you what I can tell you the thing on the boot barn.

Yeah.

So may I have a final question on the shareholder return plan. So do we have a detailed the sound policy for the dividend payout in the future I mean kind of would be helpful. Thank you.

Hmm.

Hello, Hi.

But oh, well, let's just say, let's just religion urological off a whole bunch of its wholesale should you hold out well known Kangol. When you go to a full whole when she's Eugene Lee Chee gene you'll have not achieved a AAA bucket.

So well machines on that yet.

We don't teach does say Diana.

A woman.

We didn't catch it up with D. A davidson.

Now so I'm Gonna should you know among associated with shadow queue.

Digests Alibaba.

As you know we have been distributing and you would you be doing over the last three years and we are now actively exploring an annual dividend policy and we're sharing with the market during our next earnings quarter.

She is spending.

Cumulatively distributed around.

<unk> hundred $43 million in your guidance.

So as you have.

So I think it can mean topic.

Very helpful. Thank you.

Thank you Heng.

The next question comes from Alex <unk> with UBS. Please go ahead.

Hi management. Thanks for taking my question I have two the first one is on <unk>.

So you had mentioned that take rate has remained stable in Q3. So I'm I'm wondering how did you manage to achieve that even though.

Peter has been decreasing over the quarter.

And could you also share of itself without some kind of on how does that typically for your new loans placed under 24%.

O'neill.

Well that would give us some color on your phone.

Trend, so and given given your own oriented.

Our deepest set up their new new loans, he's already priced at under 24%. That's what that's all about November.

So when do we should we expect your takeaway to like stabilize going forward test on the first and secondly.

One of your peers have been discussing.

They're detailed about that discussion about.

Working with my hands about.

The collaboration in terms of data transfer with the banks after the credits growing regulation was rolled out so.

Also wondering if you could share with us some bead household current progress from Formula side. Thank you.

Yeah.

Unless just Alex.

And well known.

Thank god cause articulation blend all our work for the gesture woman say Qs a woman the permitting Josh asked we didn't sell the whole women's particularly the Talbot offices as they are.

Now I'm not sure there's a switch of that kind of shuffle of lenders I think guy. He says the charter of the pinch yourself there.

So human how could you get what you were saying you can pull down close to.

So it goes up I would answer that is out of the home and to take care of the machine that should happen.

Bunches.

And also what he thought I just saw a monkey she had to with Dominion and finish up on info you, all well know commuting zhaokui jumbo or central Europe now among youku.

Josh I'll say that charge you took a meal you would've seen table offering jameel. So you'll have to ask the question what's your dialog.

A woman.

To go pay created a society Sunday and Sunday, So I don't want you to the Hudson, Belgium, Fay talked about Hey, Jim are you almost there.

That does help a lot actually in Hell mentioned Hudson.

Well first of all you would put that who you heard from Jim.

She told me if I shall I just what's all I was just sort of education fee pilot fringe Mpls, yeah that should be women Tien tsin, nothing keeping us well.

Well my Thunder opinion thinking about change.

Now, let's go to entry enrollment.

Do you want they want that to go up usually by chance just Danny Walker, So Easter holiday.

Okay.

Lastly, Alex.

In the quarter, our average pricing was around 25, 3% with take rate of 2%, but our average pricing was 24, 3%. It is close to where it is already preparing for 24% and our take rate was around 4% going forward next year, our pricing average pricing will be around 3%.

And we beat our take rate will be around three 6%. This is under the assumption that very small improvement in funding costs are there is no improvement in our credit risk performance. However, we believe there's still room for improvement in this segment.

And from our observation for bone lowest profile borrowers priced at or below 24%. They have better credit performance for example.

Day, one delinquency ratio for this segment was four 6% compared to five 6%, but overall segment.

Oh I was supposed to tell is that between the actresses are women.

So this is the fifth continue to do that.

Integral.

Two a month I wanted a change all are they all sort all that.

But I can show firewall message that's sure for tornado places Cheetah little sheep ashwin itunes Alisha shingle.

Have been very proactive in our pricing reduction.

However, please note that our loan originations our total transaction volume.

In fact in October our loan origination volume has reached $12 5 billion.

Another record high for us.

No we.

Wouldn't yeah juices, C&I direct manipulation Etosha Chilean citizenship.

Change out there, but you can do it.

Uh huh.

Oh God you didn't tell me about it. So you can figure out why you would change as you go into a machine tool now ammonia go buy a whole lot of alcohol.

Yeah. So for example that you all do.

Now so I don't know masuda.

To put that out to go find that Jean Jacques just this is helpful.

But I shouldn't you don't know much better.

So be careful about how much of it all are you guys thinking but I changed.

And as I think you look at the sheet at home there are sufficient for that you're gonna she chooses to shop.

Now hold on that just a J one cheesecake, Florida, a typical to see if he doesn't tell us they need to do a foot films you would've suggested to be acquainted.

Now when we originally Shanxi actresses that are.

It's a good date anthology chair Oh, well.

He took a luncheon gender equal.

Watson John that you got you got you.

<unk> got.

Our whole mission I think it's a tool.

To touch outside of Jakarta, and Chile, and finally I want to watch.

Uhm.

Okay, Let me translate.

They're breaking direct linkage between financial institutions.

Is it a top priority for us and we have been in constant communications with by hung in many of our peers at the moment. We believe the work progress for most of the platforms regarding booking direct linkage between financial institutions and platform is at about the same pace.

The regulator has been a clear direction, but some degree of complexity remains in the ground that the execution, which needs to be further these costs.

The regulator has given us sufficient grace period until June end of June 'twenty, you're going to try to implement the changes.

And we believe the final proposal from the different platforms, we will actually be similar.

No. It's one where you can do it on John what's your or move quickly on Colombia until two level.

But even now we're low wage you're tweaking your thinking people that are doing quite a lot of the GT the Germany plant.

They are gonna well overtime, so a twinkle in Shanghai that kind of over the phone.

Uh Huh, that's the element that I don't believe we thought it was.

Now of course in all my years since that.

Cancel it because she said she was a shot at it.

Now, let's say well, let's just say you should treat early here.

Thank you Ginger.

We also took a charge on social as a whole are with people who can do the history do you get all that yeah.

Let me first let me translate the game, we have two different proposals.

We will proactively corporate credit rating agencies to determine the plant and we will explore the possibilities of using a financial license to conduct our business.

For example, you do you guys do know that we have a micro lending companies in <unk> and we will also explore the possibilities of setting up immune issue.

Micro lending company.

Although Alex has kind of gotten used to be a high millage, how does it go out when he.

Okay.

That's all for me thank you.

Thank you Alex.

Again, if you have a question. Please press Star then one.

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

That's my question.

Thanks for taking my questions I have two questions first how does macro headwinds and the property sector outlook.

And this trend.

Second question is that how about data security and privacy laws to affect our business. Thank you.

Okay.

Uh huh.

Just Oh did you know what I'll say at all as you said a woman say, it's about where are you with the 2 million that you. Just don't want also she said well, Michigan. The Hudson also eager to tell us and she knows how to like Oh.

Machines that are well known.

Yes, I hate to.

They took a free if let me answer both of them.

John do you want to add a woman I used to titrate Asia towards pool causes a total new intelligence because we're too.

Like like Winches Andi differentiating a poodle. So you know well known she did she was normal Hudson decides that its a fool than to go so I see them quick age which are the issue is just the guidance down from the ledge Allergists, who are mostly Jason say sure Bob Cushing to Bill. Okay. How are you doing here, she Russia life watching the culture and I think that's intact.

As we have mentioned.

Adult prudent attitude.

We have also mentioned that we have seen some volatility in Greece.

And we were countered by we'll have some control measures such as controlling the approval rate. We will provide some guidance later stage and overall, we are still confident you'll have stronger operational metrics are ahead of our peers.

The whole quite usual juju power without totally on Columbia line, Jason Michelle.

So that's what the history.

She told us.

This is actually true.

Sure. So let me now one month policy decision.

What was the name who pay Bill Hoffmann Chow.

Lucinda CECI Hershey tool or doing something else at home to regain full use of digital.

Andrew Baum retention Sheila trip only in the Eagle Fone EBITDA, Jonathan how are you doing.

For sure.

But the other no we'll see that continue going downhill onshore and shallow contango Asahi.

Multiples to ecosystem enables unchanged.

We will also showed all the longtime Sunday you said once you Jorge who question switching can you get from that.

Now it is time to natural of course, the neighborhood of C U E.

I'll, let you go.

Since again.

Since it excludes the shipping time, so that's why you'll actually catching onto a P T and some change in the T. G I.

Because you were selling China Qinhuangdao kimco share.

That's when you have some other change in media, which in the so called region.

Okay, Let me share what the company has been doing to protect data privacy answer correctly.

From the perspective of information system and Ddos it correctly.

Excellent.

And also actively prevent in Kona information.

From our information system Suchocki perspective.

For mission systems, and data control isn't life long process.

Our network is.

Firewalls network intrusion detection system vulnerability scanning system or <unk> system, and computer software and other security products to achieve in that defense and together with our third party security vendors we have.

A joint venture of Src and with the introduction of external why has helped US we have established around the clock <unk> inspection. The company has also self developed a privacy self check platform and able to strengthen the whole inspection process for data privacy.

Now I'll talk to the suite of junk do all of them until the ultimate decision.

And you're gonna alone.

Switching small who need watch any eagle she need a problem with the Eagle hopefully you'll see all our CTO who's on it where you can do your own procedures hold tight E transfers to D. C O Tucson.

Shelf with a good laugh Dusty you could change I mean, it was from the engine people costs.

They are then I will let Dave when a unified encryption hydrology, we can we want to pick that.

And as you know when that charge offs would you put a tick off all window continuity.

Slowly with a gimbal for Westwood bullshit.

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