Q4 2021 FinVolution Group Earnings Call
[music].
Thanks Anthony.
Participating in the fourth quarter and full year 2021 earnings conference call for simulation group at this time all participants are in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero.
After management's prepared remarks, there'll be a question and answer session.
To ask a question you May press Star then one on I touched on phone.
John Your question. Please press Star then two.
Today's conference call is being recorded.
Now I'll turn the call or where do you host Mr. Jimmy Tan head of Investor Relations for the company Company Mr. Jimmy Please go ahead.
Hello, everyone and welcome to our fourth quarter and full year 2021 earnings conference call. The company results were issued via new services.
Earlier today and are posted online you can download the earnings release and sign up for the company.
By visiting the IR section of our website.
<unk> Dot com.
Mr Feng Zhang our Chief Executive Officer, and Mr. Zhao Yang our Chief Financial Officer will start the call with Dr. <unk> remarks, and conclude with a Q&A session.
This call, we will be referring to certain non-GAAP financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U S. GAAP.
For information about these non-GAAP measures and reconciliation to GAAP measures. Please refer to our press release.
Before we continue please note.
This discussion will contain forward looking statements.
Under the Safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 90 95.
Overlooking statements in Boston.
Uncertainty.
The company results may be materially different from the views expressed today.
Further 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. Finally, we post a slide presentation on our IR website, providing details of our results for the quarter I will now I will now turn the call over to our CEO . Mr. Peng. Please go ahead Sir.
Thanks, Jimmy Hello, everyone and thank you for joining our earnings call. We're happy to speak with you today. Following the completion of another challenging year or a small note.
<unk> was a complicated year given the fluctuation in the macro environment, but our strategic transition towards better quality borrowers positioning us for success amid rapidly evolving market dynamics.
Leveraging our in house developed technologies in the industry, leading digital capabilities throughout.
Our business process, we continue to deliver consistent and robust growth over the past several quarters with stellar performance across multiple operating metrics. We issued another set of record breaking results in the fourth quarter to cap off the year.
As a effectively a vigorous to execute our strategy, our fast expanding global borrower base supposedly our smell strong transaction volume growth over the past several quarters for 2021, our total transaction volume reached an all time high at RMB 137 billion with a year.
Over year increase of 100, 111%.
Seeding the upper end of our transaction volume guidance range of between.
RMB 130 billion and RMB 135 billion.
We attribute our success in acquiring new borrowers are primary to our real time application proactive monitoring technology, which gives us advanced insights into customers' borrowing habits generally speaking ICA enables us to strategically make efficient.
To appropriate adjustments, increasing our target screening efficiency by 20% operation operational efficiency by 25%.
Furthermore, during the quarter, we surpassed the benchmark of 1 million newly acquired borrowers across the globe for the fourth consecutive quarter.
We're also pleased to share that as of December 2021, we have successfully registered 189 software copyrights and filed 150 patents in fintech related areas.
Building on our core technology capabilities and execution strengths. We are confident that we will keep our growth momentum going into 2022.
Now, let me share our major achievements for the fourth quarter total transaction volume continued its solid growth trajectory in the quarter, reaching RMB 39 billion up to 81% year over year and a two 4% sequentially.
As of December 31st 2021, our total outstanding loan balance increased to RMB 50 billion, representing an increase of 88% year over year and 12% sequentially.
<unk> are a strong testament to our rock solid technology and.
Which underpins our core competencies in the challenging macro environment as we continue to apply a better quality borrowers our percentage of loans facilitated at or below.
24% increase to 78% in the fourth quarter from 59% in the previous quarter.
Also we further reduced our average borrowing costs by 1% quarter over quarter to 24, 3%, reflecting our relentless efforts to pursue financial inclusion and aligned with regulatory directives.
As we progressively shift to better quality borrowers, we continue to innovate our fraud detection and risk assessment models through enhancements in our artificial neural networks, which can be used to effectively predicts future possible trends based on past data coupled with our prudent approach towards risk manager.
<unk> and our advanced credit risk management model.
Our credit risk performance has remained stable our 90 day plus delinquency rates remained low at 126% compared with $1 five 6% in the same period of 2020 and the vintage delinquency rate for the fourth quarter is expected to be around two 3%.
While achieving strong growth in key operational metrics. We also progressively improved earnings quarterly earnings, earning quantity and our overall funding structure as we continue to augment and optimize our mix of funding partners funding sources on our platform become increasingly.
Diversified while remaining stable and ample historically liquidity from financial institution in the fourth calendar quarter is weak and typically inputs funding constraints. However, during the fourth quarter of 2021 achieved quarter over quarter transaction volume growth validating the strong relationships and a firm foundation of.
Trust, we have established with our institutional funding partners.
We have cumulatively of cooperating with over 60 of financial institutions in different regions and have a robust pipeline in place. Furthermore, we continue to fortify our relationships with institutional partners reflected by higher transaction volume in our capitalized model, which contributed to 18% of total transaction while.
In the quarter.
In addition to our consumer financial consumer finance business.
Operations aimed at empowering small business owners also maintain their steady growth momentum will continue.
Continuing to strategically expand our offline sales team.
Which now boasts over 1000 employees and is well placed to further complement our customer acquisition strategy.
During the quarter the number of small business owners themselves as well to 500 or 7000, representing an increase of 161% from the same period last year, while the segment's transaction volume increased to RMB eight 6 billion contributing 22% of total transaction volume for the peer.
<unk>.
2021, we empower 826000 small business owners across multiple sectors, such as retail wholesale food beverages, and a small manufacturers and facilitated RMB 27 billion of small business loans, representing 20% of total transaction volume.
Small business trends.
Small business financing needs is strongly aligned with the government's objective to promote quality finance SaaS.
It is a financing excess for Smes, especially in the aftermath of the global pandemic, our corporate strategy for supporting the backbones of China's economy, and the injecting new vitality into small business is another testament to <unk> commitment as a responsible corporate citizen.
Yes.
Moving onto our international expansion. Despite the resurgence of COVID-19 in Southeast Asia, where she was transaction volume of RMB, three 7 billion international market in 2021, representing an increase of 270% year over year International New borrowers in 2021 accounted for 30.
2% of our total new borrowers further demonstrating that our suite of technology spanning from customer acquisition to loan collection can be seamlessly duplicate into new geographies and markets. Additionally, we continue to deepen our partnership with bank Genco and actively explore potential partnerships.
Other players across different countries.
It is worth noting that as we strategically shift towards better quality borrowers we have significantly increased the proportion of installment loans in our international business operations. Meanwhile, we remained focus on improving our risk metrics and rolling out more innovative products and services to enhance our offering mix.
Also will be doubled our efforts to develop additional cooperations with renowned partners further broadening our presence in the region. We have great confidence that we will emerge as one of the leading players in the region.
In summary, our stellar performance in 2021 laid a solid foundation for us to drive sustainable quality growth in the long haul as we enter into 2022, we live in dedicated to refining our risk assessment and management framework with prudent principles and advanced.
<unk> optimizing our product mix towards ongoing risk metrics improvement in our client better quality customers.
Our outstanding risk management system, and a strong overall execution will enable us to further strengthen our leadership position in the industry. We believe that we are well positioned to capitalize on the tremendous market opportunities ahead of us for years to come and remain committed to returning greater value to our customers shareholders and all.
Stakeholders with better business scale and quality.
Last but not least I'd like to provide an update on our ESG performance, which we believe drives growth entities to long term value creation. We are proud to have received a low risk ESG rating from the system to analytics and analytics, a leading independent global provider in ESG research readings and data.
<unk> SaaS, our strong performance across a broad range of ESG metrics and a greater us as low risk commending our relentless commitment of tutors robust management of all material ESG risks and opportunities across our business. We're firmly convinced that our long term strategic plan, including.
Financial including financial.
As well as environmental social and governance goals will guide us through evolution to new Heights as we.
We encourage all of our people to take part in this critical Pan our efforts are organized on our mission of leveraging innovative technology to make financial service is better.
With that I will now turn the call over to Jerry <unk>, who will discuss our financial results for the quarter.
Thank you Paul.
Hello, everyone.
Welcome to our fourth quarter and the full year 2020 with earnings call.
In the interest of time I will not go through all of the financial items on this call. Please.
Please refer to our earnings release for further details.
Phil mentioned, we are delighted to report that we closed 2021, a strong note.
Another quarter of record profitability.
I'll walk hirschmann.
For 2021 will highlight by transaction volume growth in seven consecutive quarters and diversification of funding sources.
As well as a substantial increase of $4 4 billion.
Okay.
With record, reflecting our capabilities to continually gain market share both domestically and internationally.
Driven by our ongoing efforts to optimize our operations robust execution.
Our overall strategy and SKU for deployment of our technological capabilities across business.
Our net revenues for the fourth quarter to RMB, two 4 billion up 32% year over year.
We also delivered a healthy non-GAAP operating profit of RMB, five countries and $60 million and to maintain a solid balance sheet with RMB 10 plan.
In total shareholders equity.
During this quarter, our average borrowing cost reached 24 points, 3% compared with 25, 3% in the third quarter of 2021 and.
And the 26, 4% a year ago.
We are certain that we have the capability and we are on track to facility all of our loans to be at or below 24%.
Despite the rising contribution from our capital light model and the regulatory cap on borrowing rates.
We have successfully maintained the overall take rate at around 4%.
Compared with four 2% in Q3.
Given our partner support in our ongoing efforts to enhance operational efficiency. We are confident that the borrowing costs impact our financials will be minimal.
Well our capital light model propulsion has grown throughout the year from two 3% in the first quarter to 18% in the fourth quarter.
Our leverage ratio, which is defined as risk bearing loan balance divided by the shareholders equity.
This stable at four times.
We generated cash flow of RMB, one 2 billion for operations in Q4 up.
Up 12% from the same period last year.
Globally.
We further increased our restricted cash and short term.
<unk> liquidity position to RMB, five 6 billion in the quarter compared with RMB five 1 billion in Q3.
And RMB four 6 billion in the same period last year.
A testament to the robustness of our balance sheet.
Yes.
During the fourth quarter, we continued to target high quality borrowers with attractive borrowing rates as part of ongoing refinements to our customer acquisition strategy.
Our customer acquisition channels remained diversified across online and offline sources.
The danger for online information.
Internet search engine and mobile App store to customer referrals and our strong offline directed sales team.
Pointing a healthy and stable customer acquisition cost.
More excitingly, we are able to continue to return value to our shareholders through dividend payouts and share buybacks.
Between December 2021, and March 10, 2022 weeks.
Redeployed about USD 8 million to buyback our shares in the public market.
As of March 10, 2022, we have cumulatively deployed USD, one country and $39 million for our buyback program.
Our board has also declared a dividend for our shareholders of USD <unk> five it is with a payout ratio of around 15% of net income after tax for fiscal year 2021.
This is our fourth consecutive annual dividend declared region, we should reaffirms our confidence in our core capabilities business growth and the long term market potential.
The combination average dividend payout ratio historical trend for fiscal year 2018 to 2021 with about 15% of the company's net income of tests in the same period.
Between 2018 ended 2020, when we cumulatively deployed about around USD, 200, and a $2 million for dividend distributions.
Going forward the company's board of directors has approved an annual cash dividend policy.
And of which the company will be clear and to distribute a recurring cash dividend.
<unk> of low less than 10% of the company's net income after tax in the previous fiscal year.
Since we began our share buyback and the dividend initiatives in 2018.
We have cumulatively returned around USD $341 million to our shareholders.
Before I conclude my remarks, let me give you some color our business outlook for 2022.
Despite her as Crewing COVID-19 outbreaks ended the challenging micro environment our business.
<unk> continues to grow and to gather momentum.
We focused our efforts of dressing our international.
Initiatives, increasing for <unk> for small business owners and reinforcing our successful transaction to higher quality borrowers.
As a result, we now expect our 2022 transaction volume to be in the range of RMB will country in the 17 5 billion to RMB <unk> 80 billion.
Representing an increase of 27% to 31% year over year.
We have reached to top off a 2021 with multiple accomplishments and look forward to continuing success in 2022.
With that I will conclude my prepared remarks, we will now open the functional questions.
Please continue.
We will now begin the question.
To ask a question you May press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys.
Is that any time. Your question has been a question you would like to withdraw your question. Please press Star then two.
For the benefit of all participants in today's call. If you wish to ask a question to the management in China. We ask that you. Please kindly repeat your question in English.
At this time lever pause momentarily to assemble our roster.
The first question comes from <unk> Li with CSC. Please go ahead.
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Okay now I'll do the translation. The first one is regarding our international business could you. Please elaborate more about our future product matrix and how much in international business will contribute to our revenue and the transactional volume at the end of 2022.
And the second one is comparator ways, what have we been doing before what is the pricing going downward how are we shifting our customer acquisition strategy.
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Okay first of all why we have made tremendous progress for our international business in 2021.
Our transaction volume for the year reached RMB, three 7 billion, an increase of 200%, 270% year over year and looking forward, we are confident to increase.
Our international loan balance.
And for 2020 , one we acquired one 4 million new international borrowers representing year over year increase of 122%. Our local partners have also recognized our capability and we for example, we have cooperated with local players such as bank juggle feature.
Each one of our cooperation we have reached an agreement.
USD $7 million as our credit facility.
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Okay. In 2021, we have achieved strong loan volume growth for our international business at the same comp. We also thinking how we should move the business going forward.
And based on our China experience of transit into better quality borrowers.
Within that our priority for the international business would be on a transition to better quality borrowers as well in order to scale, our internet international business to greater heights on our highest strategy level.
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Our focus for international business right.
Would be the.
To shift to higher quality borrowers and also increased the proportion of loans facilitated for them. For example in Q4 of 2020 disproportion was about 30%.
Pat.
Two increased 70% by the analysts from Raymond R 22.
And some of the trip a bit higher quality borrowers would be.
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And longer long Canyon.
And for the outstanding loan balance in the fourth quarter.
$50 million USD, which is about 330 million RMB and we are confident to increase by 100% by the end of 2022.
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Our numbers of new borrowers has $1 million in four consecutive quarters. Our strategy based on the current results right. Our customer acquisition strategy has proved to be effective and efficient and we have more than 20 different customer acquisition, China's limited Tencent et cetera.
And we can see that the information is one of the most.
Our effective channel for us and going forward, we are confident to acquire better quality customers from this information feeds China's.
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Our customers online we are also strengthening our offline direct sales team. For example, we have increased our employees from four flight Rx 15 from 700 to 1000 employees.
In the fourth quarter and these employees covered about plenty different cities and we acquire about 10% of our customers from these offline China.
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We have been constantly upgrading our risk models and as our customer acquisition models and principles regarding these acquisitions strategies. For example, there has been feedback we are we are consolidating feedback from this information.
Also we are adopting a segment bidding strategy.
Different customer categories.
Segment bidding strategy will help us increase our customer acquisition efficiency and further refine our customer acquisition costs. This is something that we will be doing constantly for the mid to long term.
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Our next question comes from Frank Jarman with Credit Suisse. Please go ahead.
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It's Alex.
Chris <unk> from credit Suisse. Thanks management for giving me the opportunity to ask questions I have.
Two questions. The first one is regarding the loan volume guidance for 2022, the guidance indicates robust growth of around 30% year over year.
Management share a bit more color on what are the drivers behind this growth.
Colgate resurgence.
A macro slowdown et cetera and.
And the second question is can management provide some color on potential new license acquisition for example, national Macrodantin license any kind of preparation work down on that front. Thank you very much.
Our CFO Jennifer <unk> Lynch.
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The macro environment in China is complicated.
If you actually observe the impact on our operation is minimal.
The more relevant factors affecting our operations would be <unk>.
Our loan volume and also our risk metrics.
Challenges remain manageable.
And from the countries perspective, the GDP growth in Q4 was 24%.
While the overall economy is under pressure and.
Both the central and local governments and coverage consumption to drive the economy.
And this provides tremendous opportunities for us in the future.
But the other.
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Okay.
Let me translate.
The second point is that we can be from a structural perspective.
For example, the restrictions on the Internet giant in the consumer credit market is much more obvious.
In the future with infrastructure is slightly to be more diversified.
Eventually, reaching a more balanced stage, providing more opportunities for mid sized platforms.
And the top point can be from the regulators perspective, the fintech industry has been under a regulator refocus since 2018 and during the past five years frankly, this has multiple documents directly the industry and for compliance.
These measures basically positive ROE in consumer protection.
And increase the cost of compliance for some enterprises.
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Kris.
And coupled with a stable credit environment. It is unlikely to have a huge fluctuation and hence we are confident of the portend.
The potential of the consumer.
Consumer finance market in the future, which give us the confidence to give us a loan origination guidance of between 21% to 27% to 31%.
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I believe you guys know that we already have a micro lending license in annually.
First of all we can choose to increase their budgets their capital to $5 million.
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In order to have a more flexibility when conducting our business operations, regardless of the Rus debt available to US right. We are confident to achieve.
Licensed Michael nationwide micro lending license for our operations.
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Therefore, the level of demand.
Angie Cross thank you everybody.
Gotcha.
The next question comes from Han Yun.
Like 86 research. Please go ahead.
Thank you Brian .
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Sure.
Sundar could you just don't know about sungard.
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Now or could you Asia.
Thanks management for taking my questions. My first question is regarding our guidance.
So can management help us break down the proportion of the loan potential amount that comes from their existing <unk> users.
Once our borrower retention within China and international market.
Q4.
My question is given the kind of a market condition will continue to pay out dividends.
And where we are extending our current share repurchase and initiate a new share buyback plan.
So any plan for the Hong Kong primary listing thank you.
Hi.
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Okay, Let me translate.
As you know our business has been in <unk>.
Are we stable state with about 80% of our customers are repeat borrowers and 20% are new borrowers. This is slightly going to be the trend the fluctuation adjustment.
Whenever we need to adjust our operations. For example, we were tends to acquire more new customers. When the market is good and we will tend to focus on more and.
More on repeat borrowers.
When the market is facing some challenges and on a stickiness level. We believe it will be about the same as before going forward.
Doug Linde shell alone.
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Essentially this annual meeting.
Sure.
<unk> Citi.
Do you think this is Archie.
<unk> I think the liquidity.
Let me do the translation Honeywell.
We have been constantly consistently returning value to our shareholders since 2018.
This is our fourth consecutive annual over annual.
<unk>.
And we have cumulative returned about $200 million USD to our shareholders.
And in terms of buyback since 280, and you know we have cumulatively.
Adding back deploy about USD $140 million to repurchase our stock and for the period of December to March 10, we have deployed about 8 million USD to repurchase our stock.
In total.
Share repurchase and our dividend policy, we have cumulatively deployed around $341 million.
And regarding our repurchase plan, we still have an existing repurchase plan until the end of the year and currently there are still about $30 million USD.
Of Unutilized amount.
Higher because then you have as to telecom.
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Yeah.
Oh, Okay got it.
Thank you Antonio.
Yes.
That's very helpful. Thank you.
Thank you.
Yes.
Yes.
Our next question comes from Alex <unk>.
Please go ahead.
Good morning.
Yes, Glenn.
When you.
Great.
Thank you gentlemen.
Neely cancer Telethon Hangzhou.
Hello.
Judy maybe I'll hand, it was actually a nice segue into how much in revenue quickly.
Understood.
So thank you John .
I don't know that you guys kind of thing.
Kind of what you guys.
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Hey, Matt.
The other one is it.
Okay.
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Sure.
So I know youre in Toyota.
Thanks Kelvin.
They want delinquency.
Taking into either your team.
Hello.
Hi, Dan.
And then.
So most of the whole kind of weigh upon agrochemical, okay great.
Alright, great.
Great.
So for my.
First question is about interest rate and the rate outlook.
What is the average interest rate pricing for Q4 and how far.
This is our target pricing.
Pricing and.
How much time do we do it.
Our revenue take rate.
Second question is on asset quality.
We don't have data.
It's like an adequate indicator Q4, so I'm wondering what are the underlying reasons.
And could you also give us some color in terms of your latest they weren't delinquency ratio in Q1.
And when do you expect.
To pick out and improve going forward. Thank you.
All of that will show up with Asia quite a Utica interest rates, particularly that to go into here.
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Jin Jiang of shipping.
Okay.
Hi, Alex let me do the translation in the fourth quarter, our average borrowing rate was around 24, 3% and by the way 80% of our loans after three data at or below 24% and past you can see that we are actually very confident to achieve.
The target of 24%.
I would like to.
I would like to highlight that we will maintain a certain degree of flexibility going forward.
And our average pricing for the <unk>.
Remaining of the year will be in the range of 23% to 24% going forward.
Yes.
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Jeff.
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Hi, Hello, hopefully I answered you Michelle Linn.
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A portion of this home visits.
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Alex Let me do the translation for you.
The take rate is impacted by several factors such as pricing loan tenure and funding costs.
For example, our lung panel in the fourth quarter has increased from increased from $8 two months in the quarter to six nine months in the fourth quarter and this has resulted in a profit take rate.
And our vintage delinquency is expected to be around two 3%.
And funding cost in.
In the first half of transplant, we expect larger liquidity room for improving our funding cost and let's assume that if our average pricing drops to 23%.
We are able to maintain our take rate at three 6%.
Room for further improvement when funding costs and risk metrics improve.
So hopefully the tailwind to us essentially all.
Sounds good quarters.
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Daniel.
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Yes.
Alex Let me do the translation for you now.
Sure.
In our previous quarter earnings calls, we have mentioned that we have observed there is some uptick in our delinquencies and our REIT Department has also meet some.
The adjustment to our risk assessment policies for example, we have seen.
Day, one delinquency metrics in October it was about five 6% and now it is at five 3% this proof that our risk.
Our model is actually working and also for our day, 1% to 30.
Loan collection REIT, we have maintained.
Above 90% and going forward, we are confident to maintain our vintage delinquency at around two 3%.
So that kind of a high challenge model.
Okay.
Okay.
Our next question comes from Thomas Chong with Jefferies. Please go ahead.
One.
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Hi, Bonnie.
Yes.
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Yes.
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Goldman.
Yes guidance.
Okay.
Yeah.
Hi, Ryan.
Those outlets.
Thanks management for taking my questions.
Question regarding the overseas business.
Given a buy now pay later.
These days just wanted to get a sense about our strategies.
In coming years, and how we should think about the competitive landscape. Because we are seeing these players are also aggressively investing.
And which countries are we.
Now focusing or allocating more resources.
Second question is about the full year.
Guidance.
Hi management.
About the way in.
It market growth.
Thank you.
Okay.
Hi, This is a phone I'll take the first question.
I'll do the second.
Eric.
So I think.
For.
The overseas market that the NPL business.
I think overall we.
Exploring but we take a cautious view.
So we do see that.
It is a pretty hot.
Area and trend.
In some of the market evaluation.
In the in.
The market is also pretty high.
But on the other side of it.
Also.
Phil.
Our competition and our.
Also the valuation in some of the market is a little bit oversea overheated. So.
On that regard.
A little bit cautious, but we are exploring some opportunities in some markets, including Indonesia, and Vietnam, we have striked some partnerships with some local partners, but we have been.
Taking one step at a time.
At this point, we do not have.
Very high or very concrete.
The target for this particular business I think we are.
Kind of like.
Just testing the water and.
Staying optimistic on this.
And with regard to the.
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Which country I think the biggest.
A market that we see.
That has been.
The balance for.
Market growth regulatory environment and market readiness is as well as size is Indonesia, which is also where we have the.
Because.
The biggest the business size and we're most optimistic about.
We're also pretty optimistic about our Philippine and win that as well.
In which countries we have pressed.
Presence already.
At the same time, we're also exploring opportunities in other southeast Asian countries as well as a few south American countries.
Doug when he chooses.
She was a woman clinique.
You've got you've got guidance.
Tubular.
I will mention that in the two.
To highlight.
Thank you.
Yes.
And that is actually key.
Susan.
Typical see taking into guidance that you made that 12 months out.
We need of course, yes.
The whole of the Hollywood Wonder what are the elements of Shan CFO Gerardo <unk>.
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Uh huh.
LNG based on your guidance on <unk>.
Our loan volume for 2021 in the international market was around $3 7 billion compared to our domestic market. This percentage is actually not very high.
And also our priority for this year 2022 for our international markets either transition to better.
Quality bowler was we have also mentioned that our outstanding loan balance for our international market was around $50 million USD.
<unk> 2021 and we expect it to grow by.
100% this year by the end of 2022.
It's almost kind of highway 70.
Thank you Joe.
Shame on us.
Yes.
And there are no further questions now I'd like to turn the call back to company for closing remarks.
Yes.
Okay.
Thank you once again for joining US today. If you have further questions. Please feel free to contact <unk> Investor Relations team.
Thank you everyone.
The conference has now concluded you may now disconnect. Your line. Thank you.