9f Inc (JFU) 2019 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the 9F Incorporated Third Quarter 2019 Earnings Conference Call.

女士們、先生們，感謝大家的支持並歡迎參加 9F Incorporated 2019 年第三季財報電話會議。

At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. And please note this conference is being recorded today December 05 of 2019.

此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節。請注意，本次會議將於 2019 年 12 月 5 日錄製。

I would now like to hand the conference over to your first speaker today, Cecilia Ma, head of Investor Relations. Please go ahead, Cecilia.

現在我想將會議交給今天的第一位發言人，投資者關係主管 Cecilia Ma。請繼續，塞西莉亞。

Thank you, operator. Hello, everyone, thank you for joining us today for 9F's Third Quarter 2019 Earnings Conference Call.

謝謝你，接線生。大家好，感謝您今天參加我們9F 2019年第三季財報電話會議。

The company's results were released earlier today and are available on the company IR website. On the call today from 9F are Mr. Lei Liu, executive president and chief risk officer, and Mr. [Yanjun Lin], chief financial officer.

該公司的業績於今天稍早發布，並可在公司投資者關係網站上查閱。今天在 9 樓參加電話會議的是執行總裁兼財務長劉雷先生和財務長 [Yanjun Lin] 先生。

Mr. Liu will review business operations and company highlights followed by Mr. Lin who will discuss financials.

劉先生將回顧業務營運和公司亮點，隨後林先生將討論財務狀況。

Before we begin, I would like to remind you that this call may contain forward-looking statements made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market ,regulatory and operating conditions and related to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and the many of which are beyond the company's control, which may cause the company's actual results, performance and achievements to differ materially from those in the forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議可能包含根據1995 年《私人證券訴訟改革法案》安全港條款做出的前瞻性陳述。監管和營運狀況。業績和成就與公司的實際結果、績效和成就有重大差異。

Further information regarding this and other risks, uncertainties and [factors] is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information or future events except as required under law.

有關此風險和其他風險、不確定性和[因素]的更多資訊包含在該公司向美國證券交易委員會提交的文件中。除法律要求外，本公司不承擔因新資訊或未來事件而更新任何前瞻性陳述的義務。

I will now pass the call over to Mr. Liu. Mr. Liu, please?

我現在將電話轉接給劉先生。劉先生，請問？

Okay Hello, everyone. And thank you for joining our third-quarter earnings call today. As regulatory uncertainty continues to hang over the online lending industry in China, a consolidation of the industry is underway as platforms are shut down. This rapidly changing landscape is creating opportunities for trusted and best-in-class platforms such as 9F that have maintained strict compliance with current regulatory standards and are focused on the long-term sustainable growth.

好的，大家好。感謝您今天參加我們的第三季財報電話會議。由於監管不確定性持續籠罩著中國的線上借貸產業，隨著平台的關閉，該產業正在進行整合。這種快速變化的格局正在為 9F 等值得信賴的一流平台創造機會，這些平台嚴格遵守當前的監管標準，並專注於長期可持續成長。

I am pleased with our solid operational and the financial results this quarter despite the challenging environment. We posted the record high loan origination volume during the quarter which surged over 250% year over year. Moreover, registered users have now reached 95.7 million as of the end of September.

儘管環境充滿挑戰，但我對本季穩健的營運和財務表現感到滿意。本季我們的貸款發放量創歷史新高，年比飆升 250% 以上。此外，截至9月底，註冊用戶已達9,570萬人。

Loans funded by institutional partners jumped significantly, accounting for 78.6% of loan origination volume during the quarter compared with 58% the last quarter. The trust the growing number of institutions funding partners have in our platform and its underlying assets is reflected in our credit line which has now expanding to over [90 billion RMB] as of September 30th, compared to 70 RMB billion of June 30th, 2019.

機構合作夥伴資助的貸款大幅成長，佔本季貸款發放量的 78.6%，而上一季為 58%。越來越多的機構資助合作夥伴對我們的平台及其基礎資產的信任反映在我們的信貸額度上，截至9 月30 日，我們的信貸額度已擴大至超過[900 億元人民幣]，而2019年6 月30 日為700 億元。

As I mentioned in the last quarter we adopt a platform approach through our Tech Enablement Strategy to grow our business, this innovative platform, now with big data analytics and AI learning to optimize customer acquisition, and offers financial solutions to all our financial institutional partners. More importantly, this approach does not involve any credit risk and reduced volatility that actually allows us to act as a connector, and in so doing we are able to create significant value for all our partners.

正如我在上個季度提到的，我們透過技術支援策略採用平台方法來發展我們的業務，這個創新平台現在透過大數據分析和人工智慧學習來優化客戶獲取，並為我們所有的金融機構合作夥伴提供金融解決方案。更重要的是，這種方法不涉及任何信用風險，而且波動性降低，這實際上使我們能夠充當連接者，這樣我們就能夠為所有合作夥伴創造巨大的價值。

Evolving our business through the use of innovative technology of is at the heart of our Tech Enablement Strategy and we took a few more steps forward this quarter in executing our tech strategy.

透過使用創新技術來發展我們的業務是我們技術支援策略的核心，本季我們在執行技術策略方面又向前邁出了幾步。

In September we officially launched our 9F Superbrain. This s a new and upgraded open platform, integrating 9F core technologies such as artificial intelligence, 9F Cloud and Blockchain technology. This technology platform provides financial institutional partners and merchant partners with highly customized service packages.

九月，我們正式推出了 9F Superbrain。這是一個全新升級的開放平台，融合了人工智慧、9F雲端、區塊鏈技術等9F核心技術。該技術平台為金融機構合作夥伴和商家合作夥伴提供高度客製化的服務包。

We also designed and launched the SaaS platform based on the 9F Superbrain's functional modules in collaboration with Huawei to provide service to financial institutional partners in Southeast Asia and other international markets. We are also exploring new potential markets by partnering with selected vertical merchants across different consumption verticals including online retail, travel, and beauty and social media, allowing them to seamlessly offer financial service to their consumers. We are also exploring other partnership opportunities that will enable us to enter more consumption verticals.

我們也與華為合作設計並推出了基於9F Superbrain功能模組的SaaS平台，為東南亞等國際市場的金融機構合作夥伴提供服務。我們也透過與線上零售、旅遊、美容和社交媒體等不同消費垂直領域的精選垂直商家合作來探索新的潛在市場，使他們能夠無縫地向消費者提供金融服務。我們也正在探索其他合作機會，這將使我們能夠進入更多的消費垂直領域。

These new developments along these other emerging opportunities that we are taking advantage of will continue to support us to involvement towards a more capital light business model, as we further reduce regulatory risk, maintain our strong cash position and scale up our business. I'm pleased with our solid results this quarter amid a very challenging regulatory environment. We are confident in our ability to leverage our strong technological capabilities to provide additional service to our partners ,diversify our funding sources and drive future growth.

隨著我們進一步降低監管風險、維持強勁的現金狀況並擴大業務規模，我們正在利用的這些新發展以及其他新興機會將繼續支持我們參與更輕資本的業務模式。在充滿挑戰的監管環境下，我對本季的穩健業績感到滿意。我們有信心利用我們強大的技術能力為我們的合作夥伴提供額外的服務，使我們的資金來源多樣化並推動未來的成長。

Now let me turn the call over to our CFO Mr. Lin to walk through our developments and the financial highlights in a little more detail. Please go ahead. Thank you.

現在讓我將電話轉給我們的財務長林先生，以更詳細地介紹我們的發展和財務亮點。請繼續。謝謝。

Thank you everybody for joining. The online lending industry in China continued to face some headwinds both in terms of regulatory authority and in overall macro-economic weakness.

感謝大家的加入。中國的網路借貸產業在監管機構和整體宏觀經濟疲軟方面繼續面臨一些阻力。

We are actually also happy to see that recently there's some regulatory update. And today I think the PBOC announced the announcement that Beijing will be the first city to launch the regulatory sandbox to promote development of fintech sector in China.

我們實際上也很高興看到最近有一些監管更新。今天我認為中國人民銀行宣布北京將成為第一個推出監管沙盒的城市，以促進中國金融科技產業的發展。

And under this [regulation] (corrected by company after the call) and macro-economy, we take a more proactive approach to servicing our financial institutional partners through technology innovations, and which has put us in a unique position to rapidly adapt to a changing environment and generate long-term sustainable growth.

在這項[規定]（在電話會議後由公司糾正）和宏觀經濟的指導下，我們採取更積極主動的方式透過技術創新為我們的金融機構合作夥伴提供服務，這使我們處於獨特的地位，可以快速適應不斷變化的情況。

We did solid results this quarter. And as you can see in the audit result released today we are making some progress. Let's start with the loan origination volume growth, thanks to our sustained effort in building out our lending platform this quarter.

本季我們取得了紮實的成果。正如您在今天發布的審計結果中看到的，我們正在取得一些進展。讓我們從貸款發放量的成長開始，這要歸功於我們本季持續努力建立貸款平台。

Total loan origination volume came in at a record high of RMB 21.4 billion, a surge of more than 250% year over year. The record high loan origination volume was mainly driven by the significant increase in our active borrowers to 1.4 million from 0.4 million in the third quarter of 2018, representing 243.8% in year-over-year growth.

貸款發放總額創歷史新高，達214億元人民幣，年增超過250%。貸款發放量創下歷史新高，主要是由於我們的活躍借款人從 2018 年第三季的 40 萬大幅增加至 140 萬，年增 243.8%。

Innovation within our ecosystem is also driving the demand from institutional funding partners, their trust and confidence in our platform continues to grow. The portion of total loan origination volume funded by institutional partners jumped to 78.6% during the quarter as well.

我們生態系統內的創新也推動了機構資助合作夥伴的需求，他們對我們平台的信任和信心持續成長。本季度，由機構合作夥伴資助的貸款總額比例也躍升至 78.6%。

As of September 30th, 2019 we have established partnerships with over 25 financial institutions with a total approved credit limit of over 90 billion RMB.

截至2019年9月30日，我們已與超過25家金融機構建立合作關係，授信總額超過900億元。

Establishing strong partnership with institutional funding partners has helped to offset the impact in loan volume funding by individual investor in compliance with current regulations.

與機構融資合作夥伴建立牢固的合作夥伴關係有助於抵消個人投資者根據現行法規提供貸款量的影響。

In terms of innovation as [Mr. Liu] highlighted we are building on the strong traction our SaaS service 9F Cloud is gaining by recently launching an upgraded version of platform for institutional customers, which we call 9F Superbrain. This new platform will enable us to offer various institutions a one-stop shop for financial solutions with a very simple process. We basically connect both the customer with consumption (inaudible) and also financial institutions, creating synergy between these two platforms result in us having access to a larger pool of capital, more consumption verticals and enable more efficient execution by scaling up the number of participants in our ecosystem, while facilitating more solutions.

在創新方面，如[先生。 Liu]強調，我們正在利用 SaaS 服務 9F Cloud 最近為機構客戶推出的升級版平台（我們稱之為 9F Superbrain）而獲得的強大吸引力。這個新平台將使我們能夠透過非常簡單的流程為各種機構提供一站式金融解決方案。我們基本上將客戶與消費（聽不清楚）以及金融機構聯繫起來，在這兩個平台之間建立協同作用，使我們能夠獲得更大的資本池、更多的消費垂直領域，並透過擴大參與者數量來實現更有效率的執行。

We believe that to enhance our platform we help drive top and bottom line growth over the long term.

我們相信，為了增強我們的平台，我們有助於推動收入和利潤的長期成長。

We are still securing financial license before scaling up operation in target markets, including overseas market. We have secured a few licenses. To date we have successfully secured several licenses. In last September 9F and also with Huawei Cloud jointly launched international financial services platform that offers financial solution to institutional partners in overseas markets, and enhances the international version of 9F Superbrain.

在擴大目標市場（包括海外市場）的營運之前，我們仍在獲得金融牌照。我們已經獲得了一些許可證。迄今為止，我們已成功獲得多個許可證。去年9月，9F也與華為雲端聯合推出國際金融服務平台，為海外市場的機構合作夥伴提供金融解決方案，並增強了9F超級大腦的國際版本。

In October, [CIMB's] Thailand branch launched a personal loan product powered by 9F which includes a large suite of loans on offer. This model is actually creating a new technology enabling model with overseas banking partners. We don't need to put in any capital or taking any risk, but basically we have a profit sharing with them based on the risk control data.

10 月，[聯昌國際] 泰國分行推出了由 9F 提供支援的個人貸款產品，其中包括提供大量貸款。這種模式其實是與海外銀行合作夥伴打造一種新技術賦能模式。我們不需要投入任何資金，也不需要承擔任何風險，但基本上我們根據風控數據與他們進行利潤分享。

Lastly, in terms of technology and related developments we also highlighted that that we have established the R&D sector in Shenzhen. The R&D center is building dedicated artificial intelligence and this management team also a streamline of support for overseas market.

最後，在技術和相關發展方面我們也強調，我們在深圳設立了研發部門。研發中心正在建造專門的人工智慧，管理團隊也是對海外市場的精簡支援。

Now I will go over the third quarter 2019 financial result in more detail. I believe year over year comparison is the best way to deal with our performance.

現在我將更詳細地介紹 2019 年第三季的財務表現。我相信逐年比較是處理我們表現的最佳方式。

All presented trends I am going to give will be on that basis. Once again please note all figures mentioned in this financial presentation are in RMB.

我將給出的所有趨勢都將以此為基礎。請再次注意，本財務報告中提到的所有數字均以人民幣為單位。

Total net revenue for our third quarter 2019 increased by 80.5% to RMB 1.7 billion driven by growth in loan origination volume. Net revenue grows in slower pace than loan volume this quarter due to a lagging revenue effect following a significant increase in loan volume funded by our institutional partners. Also funding from institutional partners typically also carry a lower take rate than that of the retail funding mainly because as financial institution they are focused on the customer with lower interest rate. Loan facilitated by institutional funding partners account for 75.4% of total earnings compared to 55% in the second quarter of this year.

受貸款發放量成長的推動，2019 年第三季總淨收入成長 80.5% 至 17 億元。由於我們的機構合作夥伴資助的貸款量大幅增加，收入效應滯後，本季淨收入成長速度慢於貸款量。此外，來自機構合作夥伴的資金通常也比零售資金的接受率更低，這主要是因為作為金融機構，他們專注於利率較低的客戶。機構融資合作夥伴提供的貸款佔總收入的 75.4%，而今年第二季這一比例為 55%。

Sales and marketing expenses increased by 426% to RMB 773 million during the quarter, primarily due to increase in user acquisition cost following the shift towards higher quality borrowers.

本季銷售和行銷費用成長 426% 至人民幣 7.73 億元，主要是由於轉向更高品質的借款人後用戶獲取成本增加。

Origination and servicing expenses increased by 343.8% to RMB 431 million, primarily to increase in the fees paid to third party collection companies.

發起及服務費用增加343.8%至人民幣4.31億元，主要是支付給第三方收款公司的費用增加。

G&A expenses increased by 98.7% to RMB 509.4 million during the quarter, primarily due to increasing R&D cost and mainly share-based compensation expenses.

本季一般及行政費用增加 98.7% 至人民幣 5.094 億元，主要是由於研發成本和主要是股權激勵費用的增加。

Operating loss was RMB 8.8 million, net income was RMB 10.5 million, non-GAAP net income was RMB 245 million, decreased by 32.4% year over year. But actually if you look at the second quarter we are, the net income increased by 19% compared to the second quarter 2019.

營業虧損為人民幣880萬元，淨利為人民幣1,050萬元，非美國通用會計準則淨利為人民幣2.45億元，較去年同期下降32.4%。但實際上，如果你看看第二季度，我們的淨利潤比 2019 年第二季度成長了 19%。

In terms of the health of our balance sheet of cash position remained strong, as of September 30th, 2019, our cash and cash equivalents and term deposits were RMB 4.685 billion. This quarter not only did we see a meaningful increase, but we see of lot of uptick in number of new borrowers. We expect that sales and marketing expenses will decline, going forward as some of our technology investments take hold and we drive the follow-up expansion on [a more efficient manner], (corrected by company after the call) and also leverage our new business model like 9F Superbrain. We are actually connecting more and more customers on that.

就資產負債表的健康狀況而言，現金狀況依然強勁，截至2019年9月30日，我們的現金及現金等價物以及定期存款為人民幣46.85億元。本季我們不僅看到了有意義的成長，而且新借款人的數量也大幅增加。我們預計，隨著我們的一些技術投資站穩腳跟，我們預計銷售和行銷費用將會下降，並且我們會以[更有效的方式]推動後續擴張（由公司在電話會議後糾正），並利用我們的新業務像 9F Superbrain 這樣的模式。實際上，我們正​​在為此連接越來越多的客戶。

We are continuing to improving, optimize user expanse to retain users and extend our service beyond the [first loan] leveraging our ecosystem to improve user satisfaction will in turn help drive further future acquisition and retention which will help close the loop.

我們正在繼續改進、優化用戶範圍，以留住用戶，並將我們的服務擴展到[第一筆貸款]之外，利用我們的生態系統來提高用戶滿意度，進而有助於推動未來進一步的獲取和保留，從而有助於形成閉環。

Lastly let me touch on the Q4 guidance. We believe that while the demand of loans will remain resilient during the fourth quarter the funding side of the business will be impacted by our seasonal liquidity constraints from financial institutions towards the end of the year. As you may know, banks tend to be more conservative when close to year-end.

最後讓我談談第四季的指引。我們認為，雖然第四季度貸款需求將保持彈性，但到年底，業務的融資方面將受到金融機構季節性流動性限制的影響。如您所知，接近年底時銀行往往會更加保守。

We will continue to manage loan origination for individual investors in order to remain compliant with the covenant related to their policies. In light of this factor we anticipate in the total loan originator volume for the fourth quarter of 2019 will be in the range of RMB [13 billion] to RMB 14 billion with implied temporary decline from the third quarter. The forecast reflects the company's current and preliminary views which are subject to change.

我們將繼續管理個人投資者的貸款發放，以維持遵守與其政策相關的契約。有鑑於此因素，我們預計 2019 年第四季的貸款發放總量將在人民幣 [130 億元] 至 140 億元人民幣之間，較第三季略有下降。該預測反映了該公司當前和初步的觀點，這些觀點可能會發生變化。

With that I will conclude our prepared remarks. We will now open the call to questions.

我將就此結束我們準備好的發言。我們現在開始提問。

Operator, please kindly go ahead.

接線員，請繼續。

Thank you so much, presenter. Ladies and gentlemen, we will now begin the question and answer session. (Operator Instructions)

非常感謝您，主持人。女士們、先生們，我們現在開始問答環節。 （操作員說明）

Your first question comes from the line of Yiran Zhong from Credit Suisse. Your line is now open, Yiran.

你的第一個問題來自瑞信鐘怡然的電話。你的線路現已開通，怡然。

Hi, thank you for taking my questions. I have three questions from my side please. First is on the regulatory fund. Can you please provide the latest update regarding the [trial] regulation? And also as you mentioned the [PBOC] reportedly says that it will support the trial regulation of fintechs in Beijing. Can you share with us your read on that and what it means, what it entails going forward?

你好，謝謝你回答我的問題。我這邊有三個問題。首先是監管基金。您能否提供有關[試行]法規的最新更新？正如您所提到的，據報道，[中國人民銀行]表示將支持北京金融科技試點監管。您能與我們分享您對此的解讀以及它的意義以及未來的發展嗎？

Secondly on the operating margin, it's declines quite a lot Quarter over Quarter due to the increases across all the expense items. Can you please walk through in more detail kind of the drivers behind each of them? I think the acquisition cost was primarily a change in your customer base, was there a change in acquisition strategy? What was behind the increase in collection fees? Do you see it continuing into 4Q? And overall what we expect for the trends for operating margins going forward?

其次，在營業利潤率方面，由於所有費用項目的增加，營業利潤率逐季大幅下降。您能否更詳細地介紹它們背後的驅動因素？我認為收購成本主要是客戶群的變化，收購策略有變化嗎？收費上漲的背後是什麼？您認為這種情況會持續到第四季嗎？整體而言，我們對未來營業利益率的趨勢有何預期？

And thirdly on the capital-light model. Can you provide more details on that and what's the percentage of new origination?

第三是輕資本模式。您能否提供更多詳細資訊以及新來源的百分比是多少？

Can you repeat the question again, sorry.

你能再重複一下這個問題嗎，抱歉。

Yes. Which part was it dropped, did you hear my first two questions?

是的。哪一部分被刪除了，你聽到我的前兩個問題了嗎？

No, sorry, we got dropped when you were about to ask the question.

不，抱歉，當你正要問這個問題時，我們就被掛斷了。

Okay. So I will repeat it. I have three questions. One is on the regulatory funds, basically just the major update, please, regarding trial regulation. And also on, as you mentioned the PBOC reportedly said that it would support Beijing's trail regulations of Fintech companies and can you share with us your view on that and what it means going forward?

好的。所以我會重複一次。我有三個問題。一是關於監管資金，基本上只是關於試點監管的重大更新。另外，正如您所提到的，據報中國人民銀行表示將支持北京對金融科技公司的試點監管，您能否與我們分享您對此的看法以及這對未來意味著什麼？

And also secondly on OP margins, it declined sharply QoQ due to increases across all the expense items. Can you please walk through them, the key drivers for each of them, for acquisition cost, was there change in customer acquisition strategy? And what was behind the increase in collection fees and do you see it continuing into 4Q? Just overall your guidance in terms of the OP margin going into 4Q. And finally, on capital light model, what was the percentage of capital light model, loans generated in 3Q under this new model?

其次，營業利潤率因所有費用項目的增加而較上季大幅下降。您能否詳細介紹它們，每個因素的關鍵驅動因素，對於獲取成本，客戶獲取策略是否有變化？收費增加的背後是什麼？只是您對第四季度營業利潤率的整體指引。最後，關於輕資本模式，在這種新模式下，第三季產生的貸款所佔輕資本模式的比例是多少？

Okay, regulation update, actually, the regulation update coming today, so that was just 3 or 4 hours ago, we were also surprised to see the news today, that is very simply that definitely is a positive signal. Basically issued by PBOC, so this is an essential thing. And also it is very, very clear that they will positively and actively to establish the regulatory framework of the fintechs, and they also say they will be more inclusive and also be careful about this regulation.

好吧，法規更新，實際上今天法規更新，所以那隻是三四個小時前，我們今天也很驚訝地看到這個消息，這很簡單，絕對是一個積極的信號。基本上是央行發行的，所以這是一個必不可少的東西。而且非常非常明確的是，他們將積極主動地建立金融科技的監管框架，他們也表示他們將更加包容，並且對這項監管也將更加謹慎。

So, it's a positive sign. And I think they also very specifically mentioned about Beijing, as you know, there are the different, there's various news from different provinces about some different view about fintech, different provinces may take different view. Beijing I think has a lot of large fintech companies are based in Beijing, and then Beijing has, being relatively more inclusive. And I think this document is very clear that they will support Beijing to be the first one to do this sandbox first, and then I think this is the very positive, I think in terms of the related to, about to promote fintech in Beijing.

所以，這是一個正面的訊號。我認為他們也非常具體地提到了北京，正如你所知，存在著不同的情況，來自不同省份的各種消息對金融科技有不同的看法，不同的省份可能會有不同的看法。北京我認為有很多大型金融科技公司都在北京，然後北京就有了，相對來說更具包容性。我認為這份文件非常明確，他們將支持北京成為第一個做這個沙盒的國家，然後我認為這是非常正面的，我認為在相關方面，關於在北京推廣金融科技。

We also see, there's also document from Beijing local regulatory financial bureau to echo this announcement by PBOC. We also just received about news today, a few hours ago, so I think that's, we'll also continue to monitor and also actively, continue to actively dialogue with the regulator to see what we can, what we can do next step to echo this new announcement.

我們也看到，北京地方金融監理局也有文件呼應了央行的這項公告。我們今天也剛收到消息，幾個小時前，所以我認為，我們也會繼續監控，也將繼續積極與監管機構對話，看看我們能做什麼，下一步我們能做些什麼來回應這個新的公告。

In terms of the OP margin, I think it's, apparently it's not very easy quarter for the industry as you see, there is a lot of different news from industry as well, there's some news about some listed company as well, some news about the industry as well, which creates more uncertainty and volatility that will also drive the increase of customer acquisition costs, as you can see, we have a big increase in terms of new customers, so we continue to invest in our customer base, I think that is actually, hopefully we can do that for the official close.

就營運利潤率而言，我認為，顯然正如您所見，該行業的季度並不容易，行業也有很多不同的消息，也有一些關於某些上市公司的消息，一些關於行業也是如此，這會帶來更多的不確定性和波動性，這也會推動客戶獲取成本的增加，正如你所看到的，我們的新客戶數量大幅增加，所以我們繼續投資於我們的客戶群，我認為實際上，希望我們能夠在正式結束時做到這一點。

And then I think the OP margin is also impacted by financial institutions, the take rate is much lower than individual funding, because normally the banks will tend to have shorter terms. And they also have preferred to lower interest rate, so I think that also drives down the margin. In terms of [collection] it's the same as well, given the potential risk and volatility in this quarter, we continue to invest only on the loan collection, working very closely with them, so that hopefully we can have a better risk performance data.

然後我認為OP利潤率也受到金融機構的影響，接受率比個人融資低得多，因為通常銀行的期限往往較短。他們也更願意降低利率，所以我認為這也會降低利潤率。在[催收]方面也是一樣，考慮到本季度潛在的風險和波動，我們繼續只投資於貸款催收，與他們密切合作，希望我們能夠獲得更好的風險表現數據。

In terms of trends, I think the fourth quarter we will see the costs will be a downward trend. And then will definitely be much smaller than compared to third quarter. And then by the, but also because [seasonal] issue we also expect that the loan amount will be lower as well. So we will see how that will impact the results. But I think that - a lot of corporations are mainly driven by uncertain environment, - hopefully with this new announcement today, that the environment for industry will be clearer in the future.

就趨勢而言，我認為第四季度我們將看到成本將呈下降趨勢。然後肯定會比第三季小得多。然後，但也是因為[季節性]問題，我們也預期貸款金額也會降低。所以我們將看看這將如何影響結果。但我認為，許多企業主要是受到不確定環境的推動，希望透過今天的這項新公告，未來的產業環境將會更加清晰。

So hopefully that we can have a more better environment, and also I think with the industry consolidation, we do expect that in the future, the customer acquisition costs will be lower as well. And I think we also use this 9F Superbrain to connect two different platforms, one is the platform with the like Guomei, with the consumption scenarios and the other side is the banks, will basically provide (inaudible) solutions for them. So I think for this type of cooperation, the customer acquisition costs will be actually much lower.

所以希望我們能夠有一個更好的環境，而且我認為隨著產業整合，我們預期未來客戶獲取成本也會更低。而且我想我們也用這個9F超級大腦來連結兩個不同的平台，一個是像國美這樣的平台，有消費場景，另一邊是銀行，基本上會提供他們（聽不清楚）解決方案。所以我覺得這種合作方式，獲客成本其實會低很多。

So I think apparently this year is not a good year for everyone. But we do hope that in going forward, for next year,that we have a better start for next year.

所以我認為今年顯然對每個人來說都不是好年。但我們確實希望明年能有一個更好的開始。

The third question is about capital light model, right?

第三個問題是關於資本之光模型吧？

Yes.

是的。

I think in terms of cooperation with the banks, financial institutions, the percentage is being increased significantly. And we do expect the going forward, the percentage from financial institutions also goes up again, unless the regulation for P2P will be clear at some point. So we do expect there's more and more, the institutions we have a very large portion going forward as well.

我認為在與銀行、金融機構的合作方面，比例正在顯著增加。我們確實預期未來金融機構的比例也會再次上升，除非對 P2P 的監管在某個時候變得明確。因此，我們確實預期未來會有越來越多的機構，我們也有很大一部分。

Can I follow up specifically on the acquisition cost, what was the cost in 3Q versus 2Q? And on customer acquisition, do you expect similar level of expense going forward?

我可以具體跟進收購成本嗎？在客戶獲取方面，您預計未來的費用水平會類似嗎？

Yes, I think we do see some spike on the third Q on the customer acquisition costs, but we actually have matched down, starting from October, so I think this actually, I think during typical period, we think, and also because the increase of credit line, actually we see very strong big amount from financial institutional funding partners. So you can see that we have a 90 [billion] credit line now, and so in third quarter, so we do see there's a lot of big amount from the funding side.

是的，我認為我們確實在第三個問題上看到了客戶獲取成本的一些峰值，但我們實際上已經從10 月開始匹配了，所以我認為這實際上，我認為在典型時期，我們認為，也因為增加就信貸額度而言，實際上我們看到來自金融機構融資合作夥伴的大量資金。所以你可以看到我們現在有 900 億的信貸額度，所以在第三季度，所以我們確實看到資金方面有很多金額。

So some of the funding, they also need to have, they also need to require better quality of customers, mainly because of the lower interest rate. So we do have a lot of try on the investment customer acquisition for better quality customers. So the team I think is in the learning period. But I think we actually act very quickly, and now we can see that the increase of the customer acquisition process, which would affect in the first quarter.

所以有些資金，他們也需要有，他們也需要要求客戶品質比較好，主要是因為利率比較低。所以我們在投資獲客上確實做了許多嘗試，爭取更優質的客戶。所以我認為團隊正處於學習期。但我認為我們實際上行動得非常快，現在我們可以看到客戶獲取流程的增加，這將影響第一季。

Okay, thank you very much.

好的，非常感謝。

(Operator Instructions). There are no further questions at this time. I would now like to hand the conference back to today's presenter, Mrs. Cecilia Ma. Please continue.

（操作員說明）。目前沒有其他問題。現在我想將會議交回給今天的主持人馬女士。請繼續。

Thank you to everyone for joining us on the call today. If you have any further questions, we will be pleased to answer them through follow-up contact. We look forward to speaking with you again in the near future. Thank you very much.

感謝大家今天加入我們的電話會議。如果您還有任何其他問題，我們將很樂意透過後續聯繫予以解答。我們期待在不久的將來再次與您交談。非常感謝。

Ladies and gentlemen, this concludes today's conference call, thank you very much for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，非常感謝你們的參與。您現在可以斷開連線。