Q3 2021 CNFinance Holdings Ltd Earnings Call
Okay.
Good morning, and welcome to the Cm Finance third quarter financial results Conference call.
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Please note. This event is apparent quarters I would now like to turn the conference over to Matthew Li. Please go ahead.
Good morning, and evening and welcome to the Theater Finance third quarter Sunday Sunday Unnecessarily Gold's conference call.
This call are only as good guy, though walk us there would be.
Operating results followed by the financial results from our last Friday that those capital market Department, Missouri.
After that we would have if you're in a section.
Before we start I would like to remind you that this conference call contains forward looking statements within the bank.
I can tell you I E.
Jack Mcintyre before as amended and as defined you asked Robert.
Medication every format of 1995.
These forward looking statements can be identified price I mean, I'll, let you touch that will expect anticipate future.
Hello.
We estimate target going forward.
Look and similar statements.
Such statements are based upon management's current expectation and current market and operating conditions.
As it relates to events that involve known or unknown risks uncertainties and other factors.
All of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results performance or achievements to differ materially from those in the forward looking statement.
Further information regarding these and other risks uncertainties or factors is included in the Companys Bali, Ricky U S Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statement.
With all the information you'll hear you, but otherwise except as required under law now pretty small tomorrow feel Mr. Guy.
Yes, okay.
See if I got to swap out with us again.
So Tim hockey.
Well the thing that that I guess I'll also argue are a union you're starting to you though that union.
So your whole watch out eventually.
Eventually.
Thank you operator, and thank you.
The line for joining us in this conference call.
Today's call little introduce the company's financial and operational results of the third.
Quality can be tied to one followed by a Q&A session.
When you call for the Shanghai most of that probably are more skus you caught up.
Sure Chris This is John.
Defense Eagle concept when you talk about that.
Sensors.
Yeah, maybe.
Yeah, So I really can't.
Jimmy Ray Thank you bye bye.
Here's a bunch of little more than half most of the.
Boxes that you buy.
Uh huh.
So they cannot go on so that you didn't sell.
Oh, so that you don't let go shoot up beyond that angle, so well yeah Jackie.
And in this quarter.
Don't scale under the collaboration model continued to grow adding I E.
A lot of the military.
The quarter was RMB three 1 billion.
The revenue and net income came in at RMB 450, nearly 19 million respectively.
As of September 30th anytime you want outstanding loan principal under the collaboration model remain over RMB 10 billion.
Well exceeded our goal.
We were able to finish with such a result due to the following reasons.
So yeah.
Hey, Jim that it's a future Egypt Congo.
So it's a somewhat genes either right.
So Michele some go out good either.
Hey, you should back out to Cory.
Well I'm talking about shambaugh slipped does that change that I just spoke of who onvia.
<unk> Hall sensors, and what could you just how would you answer that.
Ferro mean, either.
Yes, with the chemo fetal being comfortable with you know until you call you back.
Hi.
You know really well with Chamberlain and shall we say what she wants to know about.
First in market demand for home equity loans remained strong in the third quarter China's economy maintained stable.
The growth was driven by the fact that it is which scattered across the nation was able to deliver fruitful operation we.
<unk> build a national network, consisting of 60 branches in 40 cities.
All of our 2000 and sales partners across China.
With this network, we're able to establish a wide market coverage and so unless the owner financing needs in a timely manner.
We were able to fulfill our responsibility as the last mile career, the beauty and that's where I think most of the financial system in China by servicing another 5000 M. At the owner if in the third quarter.
So Lee founding team that should that told us yet.
Well, Linda I told you and I use simple because the well actually kind of sometime down the line.
Hey, Paul.
So I need a job because.
She and her walk through them shiny ball got to conquer that switching.
So you are swimming in a woman that I wanted to touch you mean the dollar. So that's what you want you can go to cold weather.
So she wants a lot closer to that but yeah, so about a year ago.
Probably that's a quote I like Atlanta.
Meanwhile, being called out.
Michelle.
Second.
As the leader in the industry, we have established strong relationships with our Trust company partners.
Our long products and operations capabilities are highly recognized by our partners.
As a result, they strive to supply to supply us with sufficient funding, even with stricter regulatory deadline.
Other than that we also managed to deepen our cooperation with commercial banks.
And it's worth pointing out that not only did we increase our collaboration at scale with the Blue Ocean Bank, but also finalized our term to start a new collaboration with Everbright Bank and shopping.
Two oh, she's a hope I am also gonna it'd be fertile ground.
Oh, sorry, yeah, so part of the family gets all work.
So that's a long shot.
Are you like country, you'll use the body shop and you also.
Very helpful and phone calls for Tom do you want me not thought about 20 years ago, its only a phone call.
Jello Chow to let chip and a yogurt like once you generally have a tablet you won't patients who fill a Washington D C. But once they're punching your phone can go to the lesion. So I'm glad you're putting a cool cooking I forgot powershop cocoa for that she said, Tony or your copper nickel cobalt and Chicago, Georgia onto the function.
<unk> put jumpy.
G T shirt that biological opinion have more friction.
She hasn't done that yet so poorly genie push out.
Last but not least since the collaboration model earned us recognition in the market.
Now in the glamorous seat to select those partners.
Senior sales partners are usually experienced local alone facilitator with excellent operational history.
C N that provides them with training programs on a regular basis to help them understand our products and the risk control mechanism.
By doing that we're also able to acquire customers more efficiently and improve the overall quality of the customers.
At the same time and minimize the risk exposure as Sydney, our sales partners are more capable to fulfill their postal obligation.
The improvement post loan management was reflected by a decrease in our provision for credit losses under the collaboration model.
Yeah.
All that said haynesville well not yet.
It shouldn't block hasn't.
Having gone through the crisis.
So I think that chart.
You did.
So the Heartland results aside we also noticed some challenges.
Fear with our future growth, including.
Yeah.
The clothing home kit.
Xinhua <unk>.
Got home fitness puzzle.
And well go for it and it's a woman who should see imports tend to ease at all.
Yeah, you're right Jim glad eats is that yeah, I got a simple one for their loans are at Tempe Greenville.
She won't go most of the Sydney Central Penn Chicken, but just the fact that the FINMA.
He said Oh for coastal Treaty Shelton, who joined our call.
Lee.
Female off what she said.
So it sounds like Eagle paradoxical when it gets a whole lot you sounds like that's just helpful.
One part of that just don't Freaking cool young.
So she said Gardner E shopping.
Our social yeah. It says you know what when the tender.
First funding pressure.
We have been reaching out to cooperate with various types of self bonding supplier.
We are still highly dependent on trust funding at this moment.
Since the beginning of 2021 deregulation on trust companies loan product was tightened.
Although our finding demand and what that could provide the funding cost was in fact increased.
We wanted to be responsible to the society and our customers would.
We decided not to further reduce the interest rate of our loan products.
As I reported in the last conference call the call.
I would now loosen deregulation or the rest of 2021.
Now our experience told us that our earlier judgment was correct.
There are more than a 10 o'clock over them also but I don't think I'll flip over and done with kind of funds yet.
Thank you Tony Hawk signature to unpack.
So the handful of India hotels, when she said that she brought to you Michael.
Now I'll go feeling Kansas.
Oh for the terrible blah blah blah.
Conflicts in general the Sarnia Moorefield as to what kind of lead time off.
Washington seems to kind of Chinese law suit.
So he did what he calls the type of thinking.
Uh huh.
Yes.
And how to quote so that should go.
Second.
Under the collaboration model sales partner there the risks however.
However, due to the business structure agreed upon with the trust companies we.
We are to hold they're all subordinated units in the trust plan.
As a result, we have to carry the asset on our financial statement.
But it seemed like a company with heavy asset whose revenue is generated from interest spread.
This has caused the concerned enough potential funding partners.
And it's hurting our valuation in the capital market.
Okay.
Is that just really hit final. She told me you don't see a beachy.
Yeah, she jumps Hokkaido I see great.
Hi, Brian.
Okay, So I realize switch a poodle.
Okay, Townshend that Joey Jacobs commercial that has to be a whole reorder tendons are using their phones yet.
Alexandra portal, Johnnie Walker and shop.
So that's what kind of city Oh.
But the truth of it.
Sorry Oscar.
It's also used in the Shanghai.
Third.
With the liquidity I'll start and then Chinese real estate developer and classes and considering the upcoming real estate tax.
Our management made our estimation that the Chinese property market is likely to fluctuate in the future.
As the holder of the subordinated units.
Our asset quality is likely to be negatively affected by such fluctuation enterprise interrupt the efficiency of NPL disposal.
We had our challenges at your phone can take almost a year with the Isa.
Yeah, really I couldnt harder for salvage vehicles being a pretty critical.
Oh sure John So the one thing Chuck.
Since we have most of the synergies.
Well see how that it sounds like Papa Johns.
Okay.
In response to those challenges.
We will continue to promote the asset led transformation to better serve them as the owner.
And improve shareholder return.
The key task, but they'll complete are as follow.
Yeah.
What are your hobbies shale shinkle, that's all behind us.
Why is it.
I mean, they're more Dan Sheehan caused also the local yards around the topic.
Well unless you are tired of sports, where you seem to have it all.
All of them.
But digital women's jeans, and then you say, you'll eat up how should be.
Bill you mentioned, what kind of puts us well towards it seems the adult.
So I think that what might have changed your password parcel solutions that are shrinking although marshall.
He is also one which is your quota you on the hook up even.
Any more.
Vinci anemia, now you almost have to kind of your sense.
Russell Sandal.
That's helpful.
First.
We will continue to extend our cooperation with existing trust partner.
It is even more critical than ever now to look for innovative ways of collaboration.
Given the regulation shows no signs of loosening up in the near future.
We have taken a proactive step in this quarter for example, our partnership with National truck well maintain the scopes of regulation, but not constrained by the Cape up nonstandard truck products.
Little Remax color too.
So similar types of cooperation in the future.
Another Gulf of ours is to expand our collaboration with commercial banks.
Our plan is to make the long and they'll be back lending model, how they relatively large share in the overall all standing alone by next year.
Sure.
You couldn't cook, who for function, which has a function also fong.
He central cause I'll call back she shouldn't neat trick or treat.
Prejean your homes in Tokyo found Chad mentioned your functions, which have more stability.
Cam also love you hope almost like I'm being truthful retail food. She won't shock you Johnson focuses on that yes sure. That's all your coffee more co Tuzla Mcgovern sheen's with type I mean impact.
Okay.
Second.
But it'll start dialogue with investors, who understand our business and have the intention to participate.
And our Trust company partners.
Our goal is to finalize a deal with the term that allows investors to take stay in that current ROE as the holder of the subordinated subordinated units of the trust plans.
Upon the finalization of such negotiation.
Our goal as the long service provider and the mezzanine level investor will be clear.
Now to focus on building an asset light loan platform with the post backed and capability to expand with quick turnover.
Does that.
But I haven't seen can't seem to find that wasn't even more sensitive to kind of approach.
Once you have that but yeah, Nate shipyard time for most of you have a field trial.
Why don't you send them a poorly you got us the most of your childhood food you can read almost shocked you go through.
D.
He isn't out yet you also teamed with Tata Schinder Chiho tricky he isn't something commercial doesn't.
Sure.
Thank you all for the brokerage friendship.
Does that set up.
Holistically you can terminal in deep Red eye popping prices have cut them in doing that you don't see a checkup with them.
Well I mean, Jim you Susana too fast for the winter season.
Jojo.
What should I apologize.
Commercial channel.
Jim Shimbun.
So how cool jacko jumped up with flu shot.
Sure.
Huh.
Third.
To promote the company's strategic transformation.
As a life platform.
Plan to dispose of certain legacy alone under the traditional model in the fourth quarter.
We believe the advantages are threefold.
First this will improve our financial performance and help the company to broaden funding sources and improve its valuation in the capital market.
Second the company's compliance risk will be reduced.
And third when do your legacy loans or dispose, but it'll be well positioned when price of the property markets fluctuate.
We have obtained quotations from several potential buyer.
We will conduct evaluation and then divert yourself Dutch loan at fair market prices.
Well I mean that kind of thing you thought he shampoo.
Commercial break homework COVID-19 shoot up.
So you Shouldnt, Glenn Chin complement of Cellio tomer.
So you're telling me send useful Joe Hartnett truly.
Fantastic vehicles home ship, all that goes with it.
Her more sort of thing.
And the process all of our transformation.
They'll keep frequent and constructive dialogue with regulators at all levels.
Proactively consult our auditors regarding the accounting treatment.
To ensure we stay compliant.
FX the full time during our upgrade.
So I'm going to get all Hot Java me Brio to Shin curriculum.
Well I mean, yeah, you too.
He needs it.
Any of that type I shall shallow water Gulf.
So as long as we either TG Shining, Georgia program.
All of them only issue on lingo that puts you that young man shouldn't Atlanta more for the types of things.
She has been hindered a keen on getting a window that yeah, Fokker Tania and Samsung.
She didn't usual veasley Michel wishes for individual they salvage yard, which you won't see change you see things you see commercial food.
As I mentioned Chinese, saying, one all our good efforts.
To ensure that the cost achieved approaching.
We believe this also applies to our business operations.
Have experienced ups and downs, but never lost our dedication.
We have made unwavering effort to follow the government's call of developing an inclusive financial system.
We hope to finish our transformation in the near future and Carryforward, Our mission makes finance more human.
Our pursuit to service them as the owners.
Unchanged.
By leveraging our advantage gained from years of dedicated work what.
We will continue to provide them as the owner with affordable accessible and efficient financial services.
And that wasn't by accident. It tells you a minute Susan humble E G suite.
And having a solution.
And yet you Frankie.
Uh huh.
With that I would like to hand, the call over to MS. Jenny Lee from the capital market Department.
Who will walk you through the third quarter financial.
Thanks, Mr. Jay and thanks, again to everyone joining us today either.
I don't know why you for our third quarter financials.
We believe year over year comparisons to back away to review our performance.
Unless otherwise stated all percentage changes I'm going to again, you'll be on that basis.
Also unless otherwise it stay orhan, but I'm going to get will be in RMB.
The total outstanding loan principal what is it 1.1, Indiana S. L September 13th China, Chinese fast compared to nine point, there wouldn't be an L. S. L December 31st July 21, the total loan origination worn out remained stable at three 1 billion.
In the third quarter of Chinese Chinese tourists come Parry the same theory of 'twenty 'twenty.
Interesting financial stay with speech on loans decreased by three points that 1% to find good fits each flight mainly in the first quarter of 2021st trials Foreign Jan 17th Street mainland primarily due to the complaint filed a.
The increase in the balance of average daily outstanding loan principal.
And b, the lower interest rate our loan facility in the effort to comply with the really can't regulation.
Interest and fees expenses increased by 18.8 to 219 million as part of third quarter at a tiny tiny fish.
Back to 118 4 million.
Primarily due to the increase in principal so other borrowings as well as the funding course Franco chest company.
Collaboration cost for sales partner decreased to one 2 million for the first quarter of 2021st So I won't go into 10 million pardon me due to the fact that.
The company cut down the rate of incentive paid to partner in response to the overall lower interest rate on loan.
I wish I was smart credit losses increased by 40 848 per sound kit that is screaming for the third quarter 2021st.
I'll definitely one Milan.
The increase was mainly attributed to the come by if out of a the increase in outstanding loan principal of no delinquencies.
And loans delinquent of bidding 19 states.
What you saw in the English and collectively if basketball, allowing.
And the B.
That's come on my wife's a recovery and that sort of caught up after changing down below that 118 States pass Q.
The net realized value.
Total operating expense decreased to Turkey, 21% to 19 3 million for the first quarter of 2020 threats somehow 118 million and in the last year.
Income tax expenses decreased by they went to great pushed down to the 1 million for the third part of China Chinese pets.
For 25 million, primarily due to the decrease in the amount of tactical income.
Net income decreased by 15, 2% to 919 million for the first quarter of 2021st from 15 a M.
As of September 13th any Chinese first and December 31st 2020, the company had cash cash equivalents and restricted cash of two 2 billion and 2 billion Inc.
Including one 4 billion and one being an tranche drop just pump respectfully.
Which could only be used to acquire new now and activity.
The actual delinquency rate for loans originated by the company decreased to 24 percentage and stuff that Denver, <unk> 2020 expense from 22, 6% as of December 31st 2020.
The actual M P outright, Florida loans originated by the company with the one 5%.
S L I F.
13th 2000, Twenty's first trying to 11.7 as of December 31st 2021.
With that we'd like to open up a car for Q&A.
Operator please.
We will now begin the Q&A session.
That's a question you May press Star then one on your telephone.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Yeah.
Our first question comes from William Grieco Ski with Green Ridge Global you May go ahead.
Oh, Hi, a couple of questions when you're talking about disposing of the legacy loans are you talking about the loans prior to the current structure with the sales partners or are you talking about getting rid of everything that you have a subordinated interest in to really clean up the balance sheet.
Oil Jiggled Lindsay Eagle in the Yorkshire in England off with on your but it truly is.
You lose a lot I don't know exactly how many of her from her shoes.
Sure for sure.
Definitely lower than most Richard Shannon as you talked about higher for more chance or a sale of the soil and then as you live with it.
Okay.
Sure here in Chile.
Thank you for the question.
So yeah, well managed and I told you then that high for sure hope I am more subscription.
A lot of them off of it for now.
Yeah.
So when they say legacy alone, we're referring to those loan that was facilitated before the model transformation, which is under the traditional model per hour to the sales partners model.
They appear to have the so let me I'll all put together.
Thomas I'll put you in touch with her.
Oh.
So.
We chose a function.
So the carrying value of our Dutch alone.
We are talking about the current loans and the loans that are delinquent or nonperforming.
Around.
590 million RMB right now at this moment.
Tom will cause on pushing the torture.
Sure.
Conifer nimble, Jim Hi, the send you Lisa Shim.
Ah shall you mean.
Portend a function.
Let me also.
Buy clothing, especially along we're hoping to accelerate our transformation into an asset light.
Platform, which focuses on operations and a bare minimum risks.
Closer to home or tornado father.
You'll just with that especially in a whole bedroom also hope she for half Johan door.
Uh huh.
Well the function and so forth.
It didn't come up.
G E.
Sunshine commercial shotgun also calling for him that you that because I mean, she meets useful actually.
And then you ship.
Oh true truthfully eshop, Sharon that different you do then go.
The company, though.
So in many areas of our development, especially when they are transformed to the sales partner model, which is the collaboration model. There have been and there are many third party investors, who who is who understands our product and is.
The interested in participating by you, but by investing to us.
So we have been in touch with them and we have a rich a couple of consensus we hope to address the deal in the coming quarter with the fourth quarter of 2021.
So I want to close with <unk>.
So the most of the synergy.
So kofu mingled funds I'll either.
Chewing through that too.
Ooh Ooh Cheung you mean.
Sure Matt.
Yeah.
Uh huh.
Pablo.
She said it.
Well machine sort how quick modeling.
So to sum up.
Just by.
We had another upgrading our motto, we are hoping to create to build a.
Platform that is a select which focuses on servicing and operations and we are also hoping to improve our financial performance on the financial statements.
Okay.
Okay.
Thank you.
Okay. Thank you for that and then next question is with regards to the availability of capital has there been any change in what's available from trust companies. You guys. You know since the last conference call and then how much have you.
<unk> gotten from commercial banks, so far to window.
Yeah.
The island's users or it wasn't all that is absolutely no chance with chipotle.
Kibali, where you lie glut of used and thrown out numbers on the Zimbabwe.
You may also emerge to be you'll know what might be a lot lower with a range of options that unusual Asahi has not been true though.
Okay.
Oh yeah.
So then he soldier on agile.
So for the Jaguar too soon for that.
Although the YOD yada yada, each if I have them.
Because the economy hasn't used to convert.
To answer your first question the regulatory pressure is still there, but I don't see any signs of loose enough yet.
Well.
She made a jump.
Either from a woman who was all that just simple observation huddle blah blah.
Thomas Hasler Xian Jin.
But youll Shannon.
Mountain Dew Couldnt figure out strategic future.
It is worth noticing, though our trust company partner.
Strived.
No matter, how hard it was to supply us with a very sufficient down.
So during the quarter.
You'll notice a whole wasn't tying some of them decided to go that sits in Geneva.
So again that kind of well known cause of.
Because as you know well that have hurt, but keep in mind Zola woman, that's what's essential.
Yeah.
I was rather concerned by the end of the second quarter about our bonding in supply in the coming you know third or fourth quarter. However, just as I mentioned.
Our Trust company partners.
Out of the add backs and they strive.
To.
Steel supply us with the sufficient down during the third quarter.
Alright.
Yeah.
All the info so when it's trading at a time, but.
That's it on Shanghai, China.
Put up.
Changing the cause of Chico.
We are experiencing.
The rise of the financing costs in the quarter, though.
Due to such.
Conditions.
Yeah.
The only other major.
Gen. One G.
<unk> for the.
It was just the time it is already a pre money gotcha.
The Tianjin, China Miami handle.
So Sean cheerful.
That's a chunky fungible that you want to make her shinta.
Ooh sounds.
Sounds fine.
Oh, absolutely Jewish I'm mindful of as usual.
Yeah, It doesn't mean a.
Women's that cause I should have.
Yeah.
One for Phil Chiyoda.
Cope with E rate.
Sheen pie.
So oh I know.
We don't expect the regulatory pressure to lose.
Especially on the nonstandard cross products.
I think there there's a tape is still going to be very limited.
However from what we see in the third quarter, we are still the first priority off our trust company partner.
You may all first satisfy our funding needs.
So I think that's also a proof of our leading position in the industry as well as our strong brand recognition of the market.
But now coming through.
Kashi she called sometimes you get it right.
So are you woman, but something that young.
Kind of a boon for gymboree torture, the Heidelberg and has it at all.
P J I'll watch and I hope all the time.
So how do you want me to come back closer touchy to hear for children about that she was a woman yet.
Yeah, She's suddenly you get doesn't move and change or so Tom I'm, sorry, your women's home, but it sounds like the army.
Why don't you have a bunch of that car currently each hour believes it doesn't wash hunting tons sheet eating so people asleep either.
So.
We could have just simply transferred the write off of our financing cost to the market.
Which will make things more batesville makes thing it's a much easier. However, they felt like that not be really responsible thing to do so we did raise the interest rate of our.
Loan product, a little bit but not by much.
But I think we feel like by doing that our.
Revenue and our net income in the near term, but it would probably.
Be a little bit lower than we.
Estimate, but in the long run there's this to our best.
Hello, I'm kind of.
Could you do it.
Chimborazo seminar.
Well my thoughts are that you shouldn't totally for the huddle hole that I didn't hear the anemia.
Yeah.
Until that.
I didn't know you shouldn't have come to the city for sure.
And what's brought us more confidence is that our trust company partners.
Commerce to satisfy our needs and put it in the priority to in next year when there is enough money supplies.
So you know how come it wasn't yet see the.
Oh, Yeah look either yet what's shrinking emmenia WOMAC a.
To be more something though.
Using the PD.
As for your second question about the funding is from commercial banks. So this year. We are mainly was negotiating the term and are finalizing them. So just as I introduced in my speech I hope that the.
Finally, the loan's principal under the bank lending them out of the oil cut is relatively large share by next year.
Yeah.
Well have a total you get well then for the Super.
Super One Foods, Inc.
In Hong flat, well Gee that cause that.
Bullshit gone for the Ah ha.
Yeah sure Matt do you have a shot at Fuller gene pool in Hong Kong I'm happy Okay.
Oh.
So I would also imagine Monday.
Step four commercial banks and the current trust companies. We have we have already we also made several constructive negotiations with the insurance.
Insurance companies, so maybe in the near future and not only can we are cooperating with the trust companies and banks.
Insurance companies will also be our book.
Thank you.
Okay, great Great and last question and I appreciate all the detail youre, providing and the answers you touched on the property prices with the uncertainty with the developers do you think those you know fluctuations in property prices are gonna be Nathan.
Nationwide or more geared towards kind of the smaller cities.
Okay.
Oh Man you know lunch at all plenty of bonds out of a border, Ohio, and there's just no Ricky I mean, what else your lineage I and enjoy it at all bummed out it sounds young wafer chunk off of it I'm sure you know that niches jarden that's considered a default.
He well my life changing somewhat.
Well first of all we have a strong faith and confidence in the Chinese government.
Well I mean, so I'm wondering what goes into your door crunchy.
Clearly a function.
She told me she was.
She now from jet.
So we.
We feel like there are still plenty of tools in the toolkit.
Chinese government, Joe Craver and system medical and region, though our risks.
So I'm sure that huh.
So I'm glad you called them creates shabby.
So.
For the short term there is a potential decline in the of the property.
Yes.
That's a challenge that caught some fossil you'll let.
Neat.
Paul so fungi that Shimon.
But if we look at the long run.
We believe the Chinese government is capable to keep the property price in may.
Stable range.
Well many changing just haven't tried it out you find me a set of funds the funds the funds out of Port Neal.
Javier well.
This is Shuang XI in Washington.
We all can say here.
And there are some funny well familiar you got so challenging in that somebody got commercial.
So let me address this again the whole purpose of as opposed to dispose of the legacy loan.
So the first the first reason is that Oh.
Two a wide these short term fluctuation of the property right and they are the more important thing is that we don't want our business to be a fluctuating.
If there is fluctuation in the property market and stuff.
Again, we just want to finish our transformation and are focused on servicing and operations.
Sure sure.
Thank you.
Alright, Thank you very much.
Okay.
Again, if you have a question. Please press Star then one.
Okay.
Okay.
Tayo in two months.
Yeah.
There are no further questions. This concludes our question and answer session I would like to turn the conference back over to Matthew <unk> for any closing remarks.
Thank you again for joining us today.
If you have any further questions. Please feel free to contact us or log onto our website at.
I had a cat China Darcy and thank you.
Thank you.
And I gather the celgene.
Thank you again for joining us that's Walmart deal.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.