Q4 2022 Full Truck Alliance Co Ltd Earnings Call
Speaker 2: Ladies and gentlemen, good day and welcome to Full Truck Alliance's fourth quarter and full year 2022 earnings conference call.
Speaker 2: Today's conference is being recorded.
Speaker 2: At this time, I would like to turn the conference over to Mao Mao, Head of Investment Relations. Please go ahead.
Speaker 3: Thank you, operator. Please note that today's discussion will contain four working statements relating to the company's future performance, which are intended to qualify for the safe harbor form of liability as established by the US private securities mitigation reformat. Such statements are not guaranteed of future performance and are subject to certain risks and uncertainties. For more information, visit www.fema.gov
Speaker 3: assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to defer materially from those mentioned in today's presentation and discussion.
Speaker 3: A general discussion of the risk factors that could affect FTA's business and financial results is included in certain findings of the company with the FTC. The company does not undertake any obligation to update this following information except as required by law. During today's call, management will also discuss certain gut financial measures.
Speaker 3: for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the only release issued earlier today.
Speaker 3: Joining us today on a call from FTA's management side are Mr. Huizhang, our founder, chairman, and CEO , and Mr. Samantai, our CFO . Management will begin with prepared remarks and the call will conclude with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast of the play of this call will be available on FTA's investor relations website at Its
Speaker 4: Hello everyone. Thank you for joining us today on our fourth quarter and fourth year 2022 on these conference calls.
Speaker 3: During the year, uncertainties persisting within the macro environment posed various challenges to our operations. Despite these hails, we are pleased with our performance in the fourth quarter as we are ending 2022 on a strong note.
Speaker 4: The course. Should union would only those children put on on agenda home. two people grave pin HA should be money. Her yoga 1, one shipyou will be reachchanging Ho place, but you should AR that ununderstandendred. one of her is where you 't coun, can T forget when of food.
Speaker 4: So down J you found now with one of the words you o should pinhigh jocean jaca co y HA. So you open United Sal of darove. So children poko about human. Is reggy osing for the trace in the situion down to see the city? Is it to estimate the backid?
Speaker 4: Who your passon your and he me, or on the ear vapan bro co to actually he caion on a fu cheious about how your produation you should do have a Qu for life. What means with the kind of strong run pro claim was she should never thing, just my B.
Speaker 4: and successful electric development development are even fluorescent anyway. Give us the objective to make the industry more?ible and quicker to ?????iblity to trans maintained compete system. Don't you think COVID-19 Korea is really forcing net crime to become the legal company? A share of response is even a?. We've held ?unu to S First P Familien
Speaker 3: Over the past year, we achieved progress across all of our business segments that are in different stages of development. We took steps to standardize our platform's data management and upgrade the network security system by leveraging big data and advanced free-matching algorithms.
Speaker 3: This enhances the user's experience by providing them with high quality, efficient, and full coverage capacity network services in a secure network environment.
Speaker 3: Additionally, we made considerable efforts in platform process simplification, improved app usability and user misconducts reputation. These actions may be include building a shipper rating system, creating the five-star shipper app reading station.
Speaker 3: launching a trucker growth pilot program and cracking down on malicious price cutting behavior. By maximizing both shippers and truckers' experience and elevating operational efficiency, we expanded our high value services to more shippers and truckers during the year and safeguarded their rights and interests.
Speaker 3: As we ended 2022, we were pleased to see a revival in user growth in terms of both shippers and truckers filled by reinstating new user registration in June . With the number of high quality users growing on platform, we are improving our platform ecosystem to provide a more secure transaction environment for our users.
Speaker 3: to the green development of the transportation industry.
Speaker 4: Ear ear CH over pin had a real V. who relative ance to fer be a thir dollar y chian buo by H e area who e I e, o e an, E and E o e Tan.
Speaker 4: So y jingguan. So you do woman, So dollar each in fact for the pol. So estroy, and what comesed to the chamain? Have a ome candollar who Co in the F, So you do the vegetiary T dollar chb R area to CRE Daniel T dollar. sension y bass those MAN that.
Speaker 4: The a scripture I'll see you
Speaker 4: Dollar should their R year make, were told FA make water quite different. Ac you talent hold ER canddo, ate that dollar. So the So year.
Speaker 4: On on CH and three the T beaten down and such as to that they the Changi dollar you o which actually get tenancy yet.
Speaker 4: There are fiveominersdb presentations on the firm's Books that reflect each contributing
Speaker 3: For the full year, our gross transaction value and the number of field orders reached RMB 206 to 1.1 billion and 119 million respectively. While our business was adversely affected by repeated resurgence of COVID outbreaks at the beginning of the fourth quarter, the number of people who were affected by COVID outbreaks was reduced by 2.4 billion. The number of people who were affected by COVID outbreaks was reduced by 2.4 billion.
Speaker 3: Those rates began to recover following the full removal of COVID restrictions in December . In the fourth quarter, the GTV reached RMB 72 billion, while the number of fulfilled orders was 32.6 million. Our average shipper MAU reached 1.88 million, representing a 19.7 million.
Speaker 3: reach RB 445.8 million in the fourth quarter. On a four-year basis, the total net ram news from our platform saw it by 44.6% year-over-year to RB 6.7 trillion billion and the non-gov-adjustment income increased by
Speaker 3: 209.8% to RB1395.4 million.
Speaker 4: I I fam you F who is nam their doaughter o you hung at changunang. So get sright to should ban with the tonyia langu weichcho me she capt in hien, ITI and alphaa actually.
Speaker 4: So her gingy sho that far on the pinhahave when didn't found her chy. When he tell foundun UN he can J the tenendy on Jo Chief had chie coun from me othera home you that, So J some y ied and in and that. But who can door over her? Yet chun up coachure the judgeso actually try pro Jo three retract in the tor. But B chun chie go co UN.
Speaker 3: and the platform economy positions the country for a revival in social and economic activities.
Speaker 3: This renewed energy reaffirms our commitment to our long-term vision and strategic direction of our platform's development.
Speaker 3: We will keep advancing our technological innovations by leveraging big data, matching our goals, and artificial intelligence to create more value for users across different industries.
Speaker 3: While promoting the green transformation of China's transport industry, we will push forward in solidifying our industry leadership position and further expand our market share, creating greater value for users, shareholders, and other stakeholders.
Speaker 4: Jim my B also put woman eue and jong kung youngang kokl go. J jo't have let a shru real to work through changing Qu. Go push how work or you may Ren up. Maybe cannot injectjking Bo Act on the my bankks. She found that the changer changingto further demonstrate our confidence in the company's L.
Speaker 3: Thank you. With that, I will now turn the call over to our CFO Simon, who will elaborate further on our fourth quarter progress and go over our operational and financial results in more detail.
Speaker 5: Thank you Mr. Zhang and hello everyone. Today as usual I will first go over some of the highlights for the quarter followed by a brief overview of our key financials.
Speaker 5: The quarter began with the lingering pandemic challenges weighing on the economy. While the fourth quarter is the traditional peak season for freight transport, various regions continue to experience certain fluctuations in freight volume in October and November due to rolling COVID policies.
Speaker 5: which negatively impacted our business.
Speaker 5: Following the removal of COVID restrictions in December , the order volume from the platform gradually ramped up, reaching the full-year peak in early December . However, in mid-December, the order volume declined due to a large number of truckers getting infected with COVID.
Speaker 5: which affected overall transport capacity.
Speaker 5: As infected truckers return to work and transport capacity recovered after the Chinese New Year, we see activity within the freight industry resurging from the lows of last year. Despite the many disruptions, our average fulfillment rate reached approximately 24% in the fourth quarter, increasing on a monthly basis.
Speaker 5: with our average fulfillment rate reaching 26.4% in December .
Speaker 5: The increase in filming rate was due to easing COVID policies, which strengthened truckers' willingness to take freight orders while we also progressively restored the supply and demand balance between truckers and shippers.
Speaker 5: Moreover, with the resumption of news registration, the overall number of shippers on the platform grew, of which most of them are direct shippers with relatively higher fulfillment rate as compared to middlemen and therefore contributed to our improved fulfillment rate.
Speaker 5: Now looking specifically at our users, we were able to maintain the previous quarter's momentum that was ignited by the revival of new users' registration. The continued uptake in the overall users during the fourth quarter pushed our average shipper MAUs to 1.88 million.
Speaker 5: or year-over-year increase of 19.7%.
Speaker 5: Our average trucker MAUs, including those fulfilling and responding to orders, remain stable month over month with 3.5 million active truckers fulfilling shipment in the past 12 months.
Speaker 5: In the last four quarters and the 12 months rolling retention, the 12 months rolling retention rate of both shipper members and the next month's retention rate of truckers who responded to orders remained steady at around 85%.
Speaker 5: Our ability to maintain a high retention rate demonstrates once again the high degree of thickness of our overall user base. Along with our high user gains, we are optimizing our overall user composition.
Speaker 5: As the number of folks, 688 members and nonpaying members, which typically are direct shippers, continue to increase in the fourth quarter.
Speaker 5: More importantly, the contribution from these two types of users further increased to about 45% in terms of number of fulfilled orders, which we expect will increase further as the user scale continues to expand. This year the acquisition of new users will remain a high priority.
Speaker 5: In addition to our traditional online marketing and promotional activities, we will explore new initiatives and marketing channels to attract high-value users and build brand awareness such as precise marketing towards consumer user scenarios and marketing through users' social networks. At the same time, we will explore new opportunities to attract high-value users and marketing channels.
Speaker 5: We will strengthen our offline user acquisition strategy through our ground promotion team, combined with our local operations to reach target user groups both online and offline.
Speaker 5: As we move into 2023, we remain focused on improving our services, acquiring and retaining users and allocating more resources on branding and marketing in order to gradually replace the inefficient, acquainted truckers model.
Speaker 5: We plan to attract more low and medium frequency direct shippers through online channels and improving their user experience for their first time fulfillment in order to boost the conversion rate of non-paying users into paying members.
Speaker 5: Now briefly turning to our platform, in the fourth quarter we continue to invest resources in creating a trusted transaction environment and improving the healthiness of the platform's ecosystem.
Speaker 5: We simplified users' complaint process and made it more accessible and user-friendly. For instance, our hotline upgrade makes it easier for users to access customer service, and the complaint button on the app's order detail page allows users a one-click access to the complaint section.
Speaker 5: We also fundamentally improved our product functionalities to reduce the possibility of disputes. As an example, in response to Shipper's order cancellation, we added a trucker comment feature to allow trucker's voice to be heard.
Speaker 5: Hence, encouraging rational shipments and reducing frictions between shippers and truckers. Another notable accomplishment for us in the fourth quarter was widening the penetration of our shipper rating systems coverage, which enhances the role of users credit in our ecosystem and protect.
Speaker 5: the interest of both truckers and shippers.
Speaker 5: as the number of 5-star high-quality shippers continue to increase.
Speaker 5: and we gain more recognition from truckers and shippers, we have seen a significant decline in order cancellation rate by these five star shippers. Subsequently, the average fulfillment rate of five star shippers is 21.8% points higher.
Speaker 5: then that of the platform as a whole. As we proceed, we will continue to refine and improve our rating system on both ends in order to regulate and discipline their behaviors.
Speaker 5: Turning to our online transaction service, the segment maintains sustainable growth in the fourth quarter amid the volatile backhoe environment, showing a 67.4% increase year-over-year to RMB 447.8 million.
Speaker 5: This increase was primarily driven by improved commission rate. In the fourth quarter, our online transaction service covered roughly 50% of the transaction GTV, or 60% if measured by fulfilled orders.
Speaker 5: For the full year, Commission China penetration by number of orders has increased by nearly 8 percentage points to approximately 56%.
Speaker 5: Looking ahead, we will be-craft our investment to strengthen our platform's fulfillment and transaction assurance services.
Speaker 5: Furthermore, as we expand our users, we will refine our tiered commission strategy based on freight matching time and freight amount and dynamically adjust our commission policies. Additionally, given the fact that transaction disputes are normal occurrence in this industry, we will continue to improve our data label algo in order to improve our data.
Speaker 5: Ate.
Speaker 5: In summary, during 2022, we continued to improve the platform's ecosystem governance and elevated the user's experience. While ensuring network system security and optimizing platform data regulations, we implemented torch.
Speaker 5: and active user acquisition strategy once new user registration resumed, which expanded our platform's user base and created value for our users.
Speaker 5: We're proud of our team for their dedicated, their dedication and hard work under the conditions created by COVID restrictions.
Speaker 5: Going forward, we will direct that same spirit to sharpen our performance by leveraging digitalization technologies to improve our algorithms, matching accuracy and efficiency.
Speaker 5: Brow them our products and services for direct shipping and a quite more high quality users.
Speaker 5: As the freight industry gradually recovers, we will continue to harness our core advantages to provide users with service quality assurances and boost our commercialization capabilities, without further fortifying our leading industry position.
Speaker 5: Now I'd like to provide a brief overview of our fourth quarter 2022 and full year 2022 financials. I'd like to provide a brief overview of our fourth quarter 2022 and full year 2022 financials.
Speaker 5: Given the limited time for today's call, I will be presenting some abbreviated financial highlights. We encourage you to read through our press release issued earlier today for details.
Speaker 5: Our total revenue for the year was RMB 6.7 billion, representing a 44.6% increased year-over-year.
Speaker 5: Net revenues for the fourth quarter were RMB 1.9 billion, representing a 34.5% increase year over year.
Speaker 5: So 2022, our net revenue from freight matching services, including service fees from freight brokerage models, membership fees from listing models, and commissions from online transaction services, or RMB, $5.7 billion, up 43.3% from 2021.
Speaker 5: and R&B 1.6 billion for the fourth quarter up 31.4% year over year, primarily due to the rapid growth in transaction commissions, as well as an increase in revenues from our freight flow bridge service.
Speaker 5: Revenues from freight brokerage service reached RMB 3.4% for 2022, up 34.5% year-over-year. On a quarterly basis, net revenue increased by 24% to RMB 943.6 million in the fourth quarter.
Speaker 5: primarily driven by continued growth in transaction volume as a result of improved user penetration.
Speaker 5: or RMB 852.4 million for the full year, up 13.2% year over year, and rose 11.2% year over year in the fourth quarter to reach RMB 220 to 23.1 million, for Murray, due to an increase in total paying members.
Speaker 5: Revenues from transaction commissions amounted to RMB 1.4 billion in 2022, representing a 107.4% increase year over year. On a quarterly basis, the net revenue amounted to 447.8 million in the fourth quarter.
Speaker 5: representing a 67.4% increase year-over-year, primarily driven by a...
Speaker 5: extended take rate as well as improved commission penetration.
Speaker 5: Revenue from Value Edith Services, or RMB 1.1 billion in 2002, representing 51.7% increase year-over-year. For the fourth quarter, net revenues increased to RMB 300 and 8.1 million, representing
Speaker 5: 53.7% increase year over year, mainly attributable to an increase in revenue from credit solutions and other value-added services.
Speaker 5: Cost of revenue in fourth quarter was RMB 951.8 million compared with RMB 658.2 million in the prior year period. The increase was primarily due to an increase in VAT-related tax surcharges and other tax costs, net of tax refunds from government authorities.
Speaker 5: These tax related cost net up refunds followed RMB 857.4 million representing an increase of 54.3% from RMB 555.5 million in the same period in 2015.
Speaker 5: 2021 primarily due to continued increase in transaction activities involving our freight brokerage service.
Speaker 5: Our sales and marketing expenses in the fourth quarter were RMB 281.1 million compared with 239.4 million in the prior year period. The increase was primarily due to an increase in salary and benefits expenses driven by higher sales and marketing headcount as well as increase in online sales.
Speaker 5: share based compensation expenses, partially offset by an increase in professional service fees.
Speaker 5: R&D expenses in the fourth quarter were R&D 250.2 million compared with R&D 233.6 million in the prior year period. The increase was primarily due to an increase in sales, sales salary and benefits expenses driven by higher R&D.
Speaker 5: Headcount. Loss from operations in the fourth quarter was RMB 5.3 million compared with RMB 1.4 billion in the same period of 2021. Net income in the fourth quarter was RMB 195.7 million compared with the net loss of RMB 1.3.
Speaker 5: in the spring period of 2021.
Speaker 5: Our adjusted net income in the fourth quarter was RMB 445.8 million compared with RMB 242.8 million in the same period of 2021.
Speaker 5: Basic and diluted net income per ADS were RMB 0.18 in the fourth quarter compared with basic and diluted net loss per ADS of RMB 1.23 in the same period of 2021. non-GAAP adjusted basic and diluted net income per ADS.
Speaker 5: 2022, our cash and cash equivalents, restricted cash and short-term investments totaled RMB RMB 26.3 billion as of December 31, 2021.
Speaker 5: As of December 31st last year, the total outstanding balance of
Speaker 5: The unbalanced sheet loans consisting of the total principal amounts and all accrued and unpaid interest net of provisions of the loans funded through our small loan company and the trust is established by us was RMB 2,648.4 million
Speaker 5: compared with RMB 1,777.7 million as of December 31st, 2021. And the total non-performing loan ratio for these loans were around 2% as of the end of last year, which was flat compared with that of December 31st, 2021.
Speaker 5: Looking at our business outlook for the first quarter of 2023, we expect our total net revenues to be between RMB 1.56 billion and RMB 1.64 billion, representing a year-over-year growth rate of approximately 16.9%.
Speaker 5: In late January , we were forced to defend ourselves against groundless allegations in a published short-seller report. Upon receipt of the report, the Audit Committee quickly launched an independent investigation with the assistance of third-party professional advisors.
Speaker 5: including an international law firm and outside forensic accounting experts from a big four accounting firm.
Speaker 5: law firm and outside forensic accounting experts from a big four accounting firm. Today we announce
Speaker 5: the substantial completion of the internal review, which will conclude it in its findings that the key allegations.
Speaker 5: We are not substantiated. We sincerely appreciate the trust and support we have received from our investors during this period and want to take this opportunity to publicly reiterate our commitment to maintaining high standards, transparency and timely disclosure in compliance.
Speaker 5: with the rules of the New York Stock Exchange. That concludes our prepared remarks. We would now like to open the call to Q&A. Operator, please go ahead. Thank you. We will now begin the question and answer session.
Speaker 2: To ask a question, you may press star then 1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
Speaker 2: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.
Speaker 2: For the benefit of all participants on today's call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English.
Speaker 2: At this time we will pause momentarily to assemble our roster.
Speaker 2: And our first question today comes from Ronald Kung with Goldman Sachs. Please go ahead.
Speaker 4: involves with a open-source database for trying other products. So many different groups will allow with individual legal intervention from various IT companies and a retail firm. The Crystal
Speaker 6: So against these backdrops in 2023, how do you view the overall strategy direction of the company, and what are the company's business priorities this year? Thank you.
Speaker 4: Are any moments are own has to issue of how should P hydrocushing in ity CH child y o than they enddo.
Speaker 4: Carla, if you have not heard of our discussion, or feedback from the
Speaker 4: this operation. We are now in a three day period from 11am to green Sas Ji when the next)."
Speaker 4: But FA ent told do about that. He got Qu of the sheon P her, your wholeationine.
Speaker 3: Our priority for 2023 is to reinforce our platform's core competitiveness and enhance user's thickness. The removal of pandemic controls has been a game changer for us as business activities return to normal. As demand and supply gradually resume, we will double our efforts in creating a more efficient and more efficient platform.
Speaker 3: service quality as well as to increase their activity level. On the shipper side, we will intensify and broaden new user acquisition and in combination with a series of operational activities including promoting users' first-time fulfillment and converting non-paying users into 688 members, thereby increasing shippers' usage frequency and user thickness.
Speaker 4: So cean count. You know we Chief qut other that which ING we can do back of a year the de and ie with, without open confion.
Speaker 4: The policy seems to derive freakiness especially for global partnering Playing a true enjoylist.
Speaker 3: This year we will remain focused on full truckload transportation to satisfy a more comprehensive foundation for the platform business.
Speaker 3: As for our new business initiative, we will take a steady approach of validating the innovative business models while balancing skill and efficiency.
Speaker 3: we will take a steady approach of validating the innovative business models while balancing skill and efficiency. Thank you. Next one please.
Speaker 2: Thank you.
Speaker 4: Apologies everybody, and our next question today comes from Charlie Chen at China Renaissance. Please go ahead.
Speaker 5: by 6% quarter over quarter. What are the reasons for these changes and how do you see the freight rate trending going forward? Thank you. Thank you, let me address the rest of the questions in English. Our sequential GTV growth in the past quarter was primarily attributable to an upswing.
Speaker 5: persistent and lagging impact on transaction volume.
Speaker 5: When the pandemic control measures were lifted in December , the demand recovered as evidenced by our platform data.
Speaker 5: Yet the supplier was not fully able to catch up with demand.
Speaker 5: However, this issue was gradually resolved after the Chinese New Year as more truckers returned to work.
Speaker 5: Regarding the freight rate, its increase in the fourth quarter was primarily due to higher fuel prices in 2022, in addition to the changes in the imbalance of supply and demand resulting from the pandemic.
Speaker 5: Looking ahead into 2023, while fuel prices are still high, the pandemic's impacts are gradually receding. As such, we expect the overall freight rate to slowly return to a reasonable price range.
Speaker 5: The freight rate is affected by a variety of external factors including fuel prices and highway toll fees, among other things, which are difficult to predict and they are impacted by factors that are beyond our control.
Speaker 5: In comparison, the platforms for field order routing is a better reflection of our overall operating capabilities and this is also why we mentioned, as we mentioned previously, we will no longer focus and disclose GTV related operating metrics starting from the first quarter onwards.
Speaker 7: Thank you. Thank you. Our next question today comes from Jilu Li with CICC. Please go ahead. Thank you.
Speaker 7: The number of field orders decreased by 2.5% quote over quote.
Speaker 7: in the fourth quarter, what are the factors that constitute to this? How do you see the volume of fulfill orders changing in the fourth quarter?
Speaker 5: Thanks. Yeah, firstly, we see the negative impacts of the pandemic weighted on our operation in the last quarter. And the test winds were more pronounced in the last quarter.
Speaker 5: and Shandong and Hebei. Subsequently, the overall transaction volume was below our expectation around Double Eleven, the e-commerce sales promotion season.
Speaker 5: The average daily transaction volume only began to rebound after the removal of pandemic control measures in December and gradually reached its peak for 2022 by year-end. However, the upturn in orders from newly registered users in fourth quarter partially offset the pandemic.
Speaker 5: at first effects. Charging from our operating performance in January this year, the freight volume recovered better than expected after the Chinese near-F is achieved. I was sending year-on-year growth in the absence of any unexpected external changes we anticipate a year-on-year increase at low teams.
Speaker 5: in overall order volume in the first quarter, as both demand and supply recover. Thank you. And our next question today comes from Cherry Leong with Bernstein. Please go ahead.
Speaker 7: To say seeason monitor what would you be you see wheny grand makega quyou and instead of OER to hire how the bigger torure that you said thing do which Don me difficility do on a whole J oan F bigger a another thinging that the we.
Speaker 8: your SHIPPER members expansion and do you see any changes in the truckers and SHIPPER activities in the quarter? Thank you.
Speaker 5: In the fourth quarter, we continued to announce our shipper membership strategy. As a result, the number of shipper members grew to 730,000, up almost 20% year over year. The growth was primarily attributable to an increase in 688 members who are mostly direct shippers.
Speaker 5: rate of new non-member users first free orders on a platform and increased our telemarketing coverage. This facilitated user conversion upon initial purchase of membership thereby enabling us to reach our target of high quality membership user growth. With respect to user activity truckers ability to respond to all.
Speaker 5: As the industry recovers and we continue to strengthen our brand, we expect to maintain high level of stickiness and growth from both shippers and truckers.
Speaker 2: Thank you and ladies and gentlemen our next question today comes from Thomas Chong at Jefferies. Please go ahead. Please submit your questions and receive your answer immediately.
Speaker 4: Once of how phically money chenges or what that even we some settled share woman H 1, and here would you got come down that you would see a higher woman the more an that in, and so you that me can bala FS manageurement. What tain my Quest are giing the macro tail with.
Speaker 4: Can you elaborate more about your Fudier outlook in terms of Fudier Group as well as Fudier Revenue Guidance? Thank you.
Speaker 5: Thank you for the first quarter to date. We are very pleased to see that the demand from both shippers and truckers have recovered significantly.
Speaker 5: and we expect the overall order volume to deliver sequential growth quarter over quarter.
Speaker 5: Following this trend, we're confident to achieve a year-over-year growth in the high teens to low 20s.
Speaker 5: for all the volume on a full year basis. On the revenue front, we expect our total revenues for the first quarter to be between RMB 1.56 billion and 1.64 billion, representing a year overgrowth rate of approximately 16.9% to 23%.
Speaker 5: We expect primary drivers for the revenue will be continued growth in transaction commissions.
Speaker 5: For 2023, we expect revenues from transaction commissions to maintain a healthy growth rate as our user base and our volume continue to grow. At the same time, we remain committed to boosting the level of commission penetration as well as to further enhance our overall commission rate.