Lexinfintech Holdings Ltd (LX) 2024 Q3 法說會逐字稿

Good day and thank you for standing by. Welcome to Lexinfintech third-quarter 2024 earnings conference call.

美好的一天，感謝您的支持。歡迎參加 Lexinfintech 2024 年第三季財報電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded. I'd now like to hand the call over to your first speaker today, Ms. Mandy Tong. Thank you. Please go ahead.

（操作員指示）請注意，今天的會議正在錄製中。現在我想將電話交給今天的第一位發言者，Mandy Tong 女士。謝謝。請繼續。

Thank you, Desmond. Good morning and good evening, everyone. Welcome to Lexin's third-quarter 2024, earnings conference call. Our results were issued earlier today and can be found on our IR website. Joining me today are our CEO, Jay Xiao; CRO, Arvin Qiao; and CFO, James Zheng.

謝謝你，德斯蒙德。大家早安，晚上好。歡迎參加樂信 2024 年第三季財報電話會議。我們的結果已於今天早些時候發布，可以在我們的 IR 網站上找到。今天加入我的是我們的執行長 Jay Shaw； CRO，喬文；和財務長詹姆斯鄭。

Before we get started, I'd like to remind you of our safe harbor statement in our earnings press release, which also applies to this call. During the call, we may refer to business outlooks and forward-looking statements, which are based on our current plans, estimates, and projections. The actual results may differ materially, and we undertake no obligation to update any forward-looking statements. Last, unless otherwise stated, all figures mentioned are in RMB.

在我們開始之前，我想提醒您注意我們的收益新聞稿中的安全港聲明，該聲明也適用於本次電話會議。在電話會議期間，我們可能會參考基於我們目前計劃、估計和預測的業務前景和前瞻性陳述。實際結果可能有重大差異，我們不承擔更新任何前瞻性陳述的義務。最後，除非另有說明，所有數據均以人民幣為單位。

Jay will first provide an update on our overall performance. Arvin will discuss risk management updates. Lastly, James will cover the financial statement in more details.

Jay 首先將提供我們整體表現的最新情況。阿文將討論風險管理更新。最後，詹姆斯將更詳細地介紹財務報表。

I will now turn the call over to Jay. Please kindly note, in today's agenda, Jay will give his whole remarks in Chinese. Then the English version will be delivered by Jay's AI-based voice. Jay, go ahead, please.

我現在將把電話轉給傑伊。請注意，在今天的議程中，周杰倫將用中文發表全部講話。然後，傑伊的人工智慧語音將提供英文版本。傑伊，請繼續。

(interpreted)

（解釋）

Thank you. Good morning and good evening, everyone. It is my pleasure to share with you our performance for the third quarter of 2024. In the third quarter, we remain committed to a prudent and steady operational strategy driven by risk management, upgrade, and deep data analytics. This approach has allowed us to reduce our overall portfolio's risk and improve our asset quality. As low risk new loans continue to grow, our overall asset structure is gradually improving.

謝謝。大家早安，晚上好。我很高興與您分享我們 2024 年第三季的業績。第三季度，我們仍然致力於以風險管理、升級和深度數據分析為驅動的審慎穩健的營運策略。這種方法使我們能夠降低整體投資組合的風險並提高資產品質。隨著低風險新增貸款持續成長，我們的整體資產結構逐漸改善。

In the third quarter, loan reginations reached CNY51 billion. Outstanding loan balance stood at CNY111.3 billion (sic - see press release, "CNY111.2 billion"). Revenue was CNY3.7 billion. And net profit was CNY310 million, with both revenue and net profit returning to a steady growth trajectory. As the fundamental of our portfolio continue to strengthen, we expect to see further improvements in the company's revenue and net profit in the future.

第三季度，貸款登記額達510億元。未償還貸款餘額為 1,113 億元（原文如此 - 請參閱新聞稿，「人民幣 1,112 億元」）。收入為37億元。淨利3.1億元，營收和淨利均回歸穩定成長軌道。隨著我們投資組合的基本面不斷增強，我們預計未來公司的收入和淨利潤將進一步改善。

Our performance in the third quarter includes the following two highlights. First, our ongoing efforts in risk management have yielded tangible results, with continued improvement in new asset quality and a turning point in overall portfolio risk. The leading risk indicator, FPD7, of new loans decreased by about 13% compared to the second quarter. And day one delinquency ratio of the overall portfolio declined by around 9% compared to the previous quarter.

我們第三季的業績有以下兩個亮點。一是風險管理工作取得明顯成效，新增資產品質持續提升，整體風險出現轉折點。新增貸款的領先風險指標 FPD7 較第二季下降約 13%。與上一季相比，整體投資組合的第一天拖欠率下降了約 9%。

During the quarter, we focused on expanding high quality new loans by fully implementing the low and growth strategy on various business lines ported by the following measures. We strengthened our reach and acquisition. of target customer markets by optimizing key online advertising channels, leveraging our cumulative user base of over 200 million registered users.

本季度，我們著力擴大優質新增貸款，在各業務條線全面實施低成長策略，並採取以下措施。我們加強了影響力和收購。透過優化主要線上廣告管道，利用我們超過 2 億註冊用戶的累積用戶群，擴大目標客戶市場。

We explored their potential borrowing demands and conducted targeted reoffer to reactivate dormant high-quality customers. We brought in multiple third-party data sources and developed a dedicated risk model for small and micro business loans.

我們挖掘客戶潛在的借貸需求，進行定向再報價，重新啟動休眠的優質客戶。我們引進多個第三方資料來源，開發了小微企業貸款專用風險模型。

This increased the credit identification accuracy for small and micro business assets by over 10%. Additionally, we operated our intelligent anti-fraud model, enabling us to more effectively detect and properly intercept potential fraud, further strengthening our anti-fraud capabilities. As the quality of new loans continues to improve, we expect overall portfolio risk to decline, laying a solid foundation for performance growth next year.

小微企業資產信用辨識準確率提高10%以上。此外，我們運行智慧反詐騙模型，使我們能夠更有效地發現和正確攔截潛在的詐欺行為，進一步增強我們的反詐騙能力。隨著新增貸款品質持續改善，我們預期整體組合風險將下降，為明年業績成長奠定堅實基礎。

The second highlight is our improved profitability, driven by a continued focus on refining operations and optimizing firms and asset matching. In the third quarter, our net profit margin reached 8.45%, representing a quarter-over-quarter increase of 223 basis points.

第二個亮點是，在持續專注於煉油業務、優化公司和資產匹配的推動下，我們的獲利能力有所提高。第三季淨利率達8.45%，季增223個基點。

Due to the declined risk levels of overall portfolios and enhanced asset quality, our assets got increasing recognition from various financial institutions, leading to a more diverse and healthy funding net. This drove down our funding costs by 98 basis points from the second quarter, setting a new historical low.

由於整體投資組合風險水準下降、資產品質不斷提升，我們的資產得到各金融機構的認可，資金網絡更加多元化和健康。這使得我們的融資成本較第二季下降了98個基點，創下了歷史新低。

In the third quarter, we focused on meeting the diverse demands of younger customers through a range of products. For high quality, small and micro business owner segment, we enhanced the operations of (spoken in foreign language) product, which means working capital loan and expand our acquisition channels. We operated and optimized the strategies related to credit line, granting and pricing adjustments, customer retention and dropout prevention, et cetera.

第三季度，我們專注於透過一系列產品來滿足年輕客戶的多樣化需求。針對優質小微型企業主細分市場，我們加強（外語）產品運營，即流動資金貸款，拓展收購管道。我們營運並優化了授信額度、授信與定價調整、客戶保留和流失預防等相關策略。

We also connected to dedicated funding channels, specifically for small and micro business loans. As a result, (spoken in foreign language) achieved a 78% increase in transaction volume quarter over quarter for the super prime salary worker segment. We restricted the pricing strategy for Lexin card and implemented various measures, including credit line and pricing adjustments to boost customer borrowing activities. with overall risk level remaining stable. The number of drawdown customers increased by 24%, compared to the previous quarter.

我們也對接了專門的融資管道，專門針對小微企業貸款。結果，（用外語說）超級優質工薪階層的交易量較上季增加了 78%。我們對樂信卡的定價策略進行了限制，並採取了包括信用額度和定價調整在內的多種措施來促進客戶借貸活動。整體風險水準保持穩定。與上一季相比，提款客戶數量增加了 24%。

Based on our new risk-based customer segmentation, we adjusted our fund and asset matching model and launched a new product, the Intelligent Credit Platform. The Intelligent Credit Platform operates under a light asset profit sharing model, in which the company bears no risk of principal loss and generates technology service revenue to traffic distribution. Through this model, we can direct various customer segments to funding partners that have complementary risk appetite from us.

基於新的風險客戶細分，調整資金與資產匹配模式，推出新產品智慧信貸平台。智慧徵信平台採用輕資產利潤分享模式運營，公司不承擔本金損失風險，並透過流量分配產生技術服務收入。透過這種模式，我們可以將不同的客戶群引導至與我們具有互補風險偏好的資金合作夥伴。

This approach enables us to reduce customer acquisition costs, broaden our customer base, and increase revenue. Stable business growth is underclaimed by continuous investment in technology and research and development. In the third quarter, we invested CNY149 million in research and development to reinforce our industry-leading capabilities. Business management is comprehensively connected to the anomaly attribution system, which enables real-time detection of fluctuations in business and operational metrics, and automatically generating quantitative insights.

這種方法使我們能夠降低客戶獲取成本，擴大客戶群並增加收入。持續的技術和研發投資支撐著業務的穩定成長。第三季度，我們投入1.49億元用於研發，強化產業領先能力。業務管理全面對接異常歸因係統，即時檢測業務和營運指標的波動，並自動產生量化洞察。

In the quarter, the system has covered over 400 key business metrics. Time required for anomaly attribution has been reduced to within a few hours or even minutes compared to previous time requirement of a few weeks under the traditional manual model, empowering smart business and management decision making. The accuracy of our proprietary AI model in intense recognition has further improved.

本季度，系統已涵蓋400多個關鍵業務指標。異常歸因時間由傳統人工模式下幾週的時間縮短至幾小時甚至幾分鐘，賦能業務和管理決策的智慧。我們專有的AI模型在強烈辨識方面的準確性進一步提高。

In post-loan management scenarios, its accuracy is 17% higher than that of external solutions, which help to reduce costs and enhance operational efficiency. With regard to consumer rights protection, a long-standing priority for us, we have continued to enhance our customer communication and service management process, and strengthen digitalization and system development of customer services in the third quarter, key initiatives included, defining our issue grading system, introducing a frontline service authorization protocol, and optimizing customer service workflows.

在貸後管理場景中，其準確率比外部解決方案高17%，有助於降低成本、提升營運效率。消費者權益保護是我們長期關注的重點，第三季我們持續加強客戶溝通與服務管理流程，加強客戶服務數位化與系統建設，包括重點措施、明確問題分級等。客戶服務流程。

These measures have significantly improved service handling efficiency, leveraging the extensive customer service data from our platform. We analyzed and identified the root causes of customer experience challenges and empowered our frontline teams with enhanced skills in issue identification and resolution, strengthening collaboration with business units to improve the consumer rights protection review mechanism in order to identify and address consumer rights protection issues at an earlier stage.

這些措施充分利用了平台豐富的客戶服務數據，顯著提高了服務處理效率。我們分析辨識顧客體驗挑戰的根源，強化第一線團隊的問題辨識與解決能力，加強與業務部門的協作，完善消費者權益審核機制，及時發現並解決消費者權益問題。

Looking ahead, we remain committed to a prudent operational probe, focus on bringing down risk level of overall loans and enhancing probability. Also, we will properly intensify our customer acquisition efforts and push for steady growth in business scale.

展望未來，我們將繼續堅持審慎經營探索，並著力降低整體貸款風險水平，提高機率。同時，我們將適當加強獲客力度，推動業務規模穩定成長。

As the proportion of high quality new loans increases and existing loans mature gradually, we expect to see continued accelerated improvement in the asset quality of overall loan book. We remain in full confidence in our ability to deliver stronger probability in the coming year. To further reward our shareholders, we plan to raise our dividend payout ratio from the current 20% of net profit to 25% starting in 2025.

隨著優質新增貸款佔比上升以及存量貸款逐漸成熟，預計整體貸款資產品質將繼續加速改善。我們對來年實現更大可能性的能力充滿信心。為了進一步回報股東，我們計劃從2025年開始將股利支付率從目前淨利的20%提高到25%。

Now, I would like to hand the floor over to our CRO. Thank you.

現在，我想將發言權交給我們的 CRO。謝謝。

(interpreted)

（解釋）

In the third quarter, we continue to adhere to the strategy of tight-end resender, and focus on generating more high quality assets and improve the accuracy and efficiency of high risk asset control. We also upgraded the real-time anti-flow detection capability, further refined the third-party data management system, and build a real-time interactive risk management capability.

三季度，我們持續堅持緊端再分配策略，並著力產生更多優質資產，提高高風險資產管控的準確性與效率。升級即時反流偵測能力，進一步精進第三方資料管理系統，建構即時互動的風險管理能力。

Leading risk indicators for new assets and the overall assets continue the downward trend from the previous quarter, FPD-7 of new assets decreased. by about 13% compared to the second quarter. And the overall asset day one delinquency rate decreased by about 9% compared to the second quarter. We expect the star war chance of leading risk indicators will continue in the fourth quarter.

新資產和整體資產先行風險指標延續上季下降趨勢，新資產FPD-7有所下降。與第二季相比成長約13%。整體資產第一天拖欠率較第二季下降約9%。我們預計領先風險指標的星際大戰機會將在第四季度持續。

Specifically, in terms of risk management for new assets from new customers, we have made significant progress in both new customer acquisition through online advertising channels, and activating dormant customers on Lexin's existing user base. In terms of new customer acquisition through online advertising channels, we have focused on key high-quality channels and accelerating phasing out long-tail high-risk channels. Meanwhile, we have continued to strengthen our risk identification capabilities and upgraded risk strategies for new customers, resulting in a stable decline in the risk level of new customers acquired through online advertising channels.

具體來說，在新客戶新資產風險管理方面，無論是透過網路廣告管道獲取新客戶，或是啟動樂信現有用戶群的休眠客戶，我們都取得了重大進展。網路廣告管道獲客方面，聚焦於優質管道，加速淘汰長尾高風險管道。同時，我們持續強化風險辨識能力，升級新客戶風險策略，網路廣告通路新客戶風險水準穩定下降。

To compare to the second quarter, the risk level of new customers acquired through this channel has decreased by 10%. By the end of the third quarter, leading indicators, FPD7, for new customers, have significantly decreased by about 50% compared to its peak in Q4 last year. Currently, the risk level of new customers of acquired food on the advertising channel has generally declined to a reasonable range.

與第二季相比，透過該管道取得的新客戶的風險水準下降了10%。截至第三季末，新客戶領先指標FPD7較去年第四季的峰值大幅下降約50%。目前，廣告通路收購食品的新客風險水準已普遍下降至合理範圍。

In terms of reactivation and conversion of dormant customers, we have deeply explored their borrowing of over 200 million customer converting existing user base. To fully leverage losing large customer advantage, we have strengthened our risk identification capabilities and improved our risk strategy systems to identify high-quality users.

在休眠客戶的啟動和轉換方面，我們深入挖掘了超過2億客戶的借力轉換現有用戶群。為了充分發揮大客戶優勢的流失，我們強化風險辨識能力，完善風險策略體系，辨識優質用戶。

The third-party that we offered in coordination we our operational key, we have precisely reached and reactivated high-quality dormant customers with potential borrowing demand. In the third quarter, the number of reactivating dormant customers nearly doubled compared to the second quarter, with the credit-broadened rate of approved customers increasing by 47% comparatively in the AB test. Moreover, the customer acquisition cost of reactivated domain customers is low. And the risk level is about 20% lower than that of new customers acquired through online advertising channels.

我們提供的第三方配合我們的營運關鍵，精準觸達並啟動了具有潛在藉貸需求的優質休眠客戶。第三季度，重新啟動的休眠客戶數量較第二季度增加近一倍，AB測試中獲準客戶授信率年增47%。而且，重新啟動域客戶的獲客成本較低。且風險程度比透過網路廣告管道取得的新客戶低20%左右。

In the fourth quarter, we will continue to intensify efforts to reactivate and convert existing customers, in order to sustain the growth of new customers at low cost and low risk.

第四季度，我們將繼續增加存量客戶的重新激活和轉換力度，以低成本、低風險維持新客戶的成長。

In the third quarter, we focus on three major projects. Management of high-risk assets, portfolio structure optimization, and tailor risk management for different customer segments.

第三季度，我們重點抓好三大項目。高風險資產管理，投資組合結構優化，針對不同客戶群量身訂做風險管理。

In terms of managing high-risk assets, we strengthened control measures of alert high-risk transactions, and further upgraded our anti-floor detection capabilities. The extensive use of risk strategy robots enable us to accelerate the early alerting and disposal of medium to high risk assets.

高風險資產管理方面，強化高風險交易預警控制措施，進一步提升反底線偵測能力。風險策略機器人的廣泛使用，使我們能夠加快中高風險資產的早期預警和處置。

In terms of portfolio of structure recommendation, we continuously improve the proportion by optimizing various elements of our financial products. By continuously growing the volume oh high-quality asset, we further income a stable decline chance in risk level. The proportion of prime and super prime assets, the newly issued loans to existing customers and new customers has exceeded 75%.

在組合結構推薦方面，我們透過優化金融產品的各個要素，不斷提高佔比。透過不斷增加優質資產的數量，我們進一步獲得了風險水準穩定下降的機會。優質及超優質資產、存量客戶及新客戶新發放貸款比例均超過75%。

In terms of tailor risk management for different customer segments, we focused on optimizing risk management of micro and small business customers in the third quarter. Through a dedicated acquisition model, the introduction of micro and small business operational data, and the specialized risk identification model for micro and small business owners, we have strengthened our ability to manage the risk level of micro and small customers loans. This has also improved the user experience to micro and small business owner customers with our offers and reduce the risk associated with these customers.

在針對不同客戶群量身訂做風險管理方面，三季我們專注於優化小微型企業客戶風險管理。透過專門的收購模式、小型企業經營資料的引進、小型企業主專業化風險識別模型等，增強了小微型客戶貸款風險水準管理能力。這也改善了小微型企業主客戶的使用者體驗，並降低了與這些客戶相關的風險。

In terms of data management capability, we have established a full lifecycle management platform for third-party data, integrating data onboarding, data performance evaluation, feature derivation, performance monitoring, and decommissioning evaluation into a single management platform. This has significantly improved efficiency, as well as the standardization and optimization of data management. Also, we have established data linkage, enabling real-time monitoring, automatic alertings, and coordinated handling across the entire chain of data, features, models, and strategies.

在資料管理能力方面，我們建立了第三方資料的全生命週期管理平台，將資料上線、資料效能評估、特徵推導、效能監控、退役評估等整合到一個管理平台中。這顯著提高了效率，以及資料管理的標準化和最佳化。同時，我們也建立了資料連動，實現全資料鏈、特徵鏈、模型鏈、策略鏈的即時監控、自動預警、協同處理。

This greatly improves the effectiveness of data applications and enhances the efficiency of SIP commissioning ineffective or inefficient third-party data.

這大大提高了資料應用的有效性，並提高了SIP調試無效或低效第三方資料的效率。

Looking ahead into the fourth quarter, we will continue to strengthen our capabilities of risk management, credit identification, risk decision-making, and risk (inaudible). Our goal is to reduce the proportion of delinquent assets and increase the generation of high quality assets, further optimizing the health of our asset structure.

展望四季度，我們將持續強化風險管理、信用識別、風險決策、風險防範等能力（聽不清楚）。我們的目標是降低不良資產比例，增加優質資產生成，進一步優化資產結構健康。

At the same time, we will continue to enhance the performance and stability of risk scoring across all business lines and implement intelligent decision-making tools for credit lines and hyphens to improve the efficiency and accuracy of our risk management. Through this effort, we aim to ensure that the risk levels of total assets continue to decline and profitability continues to improve.

同時，我們將持續提升各業務條線風險評分的效能和穩定性，實施授信額度和連字符智慧決策工具，提升風險管理的效率與準確性。透過這項努力，確保總資產風險水準持續下降、獲利能力持續提高。

In the meantime, we will accelerate the development of risk sharing models among the new risk-based customer segmentation, increase the proportion of our capital light business, and smooth the impacts of predecessors on our profitability.

同時，我們將加速新型風險客戶群的風險分擔模式發展，提高輕資本業務比重，平滑前人對獲利能力的影響。

This is James. Now it's my turn. Thank you, Arvind. I will now give a more detailed update on our financial results, noting that all figures are presented in RMB unless stated otherwise.

這是詹姆斯。現在輪到我了。謝謝你，阿爾溫德。我現在將更詳細地介紹我們的財務業績，並指出，除非另有說明，所有數據均以人民幣表示。

During the past quarter, we adhered to our principles of prudent operation and continued the upgrading of our risk management capabilities and the transformation of overall business. Our efforts yielded satisfying results evidenced by stable, long-origination volume and a strong (technical difficulty).

過去一個季度，我們堅持穩健經營原則，持續提升風險管理能力及整體業務轉型。我們的努力取得了令人滿意的結果，穩定、長期的產量和強大的實力證明了這一點。（技術難度）。

Total revenue amounted to approximately CNY3.7 billion, remaining steady compared to Q2. Net profit showed a significant growth, increasing by 36.7% quarter over quarter to reach CNY310 million.

總收入約37億元人民幣，與第二季相比保持穩定。淨利大幅成長，季增36.7%，達3.1億元。

Here are three key highlights explaining our robust financial performance. First, substantial profit increase driven by higher revenue take rate. The sharp increase in net profit was primarily driven by higher take rate, which reached a record high of 3.25%, up by 35 basis points from 2.91% of Q2 and 81 basis points from 2.44% of the same quarter last year. The take rate calculation is derived by adding credit-oriented income and tech empowerment income, subtracting funding costs and various provisions, then dividing by new loan origination volumes for the quarter.

以下三個關鍵亮點解釋了我們強勁的財務表現。一是營收佔比提高帶動利潤大幅成長。淨利的大幅成長主要得益於較高的換算率，換算率達到歷史新高3.25%，較第二季的2.91%上升35個基點，較去年同期的2.44%上升81個基點。獲取率的計算方法是將信貸導向收入和技術賦能收入相加，減去融資成本和各種準備金，然後除以該季度的新貸款發放量。

A few core drivers supported this increase, including the following. One, the continuous improvement in the risk level of new loans in Q3, evidenced by FPD7, which decreased by about 13% from Q2.

一些核心驅動因素支持了這一成長，包括以下內容。一是第三季新增貸款風險水準持續改善，FPD7 較第二季下降約 13%。

Two, a new record low in funding costs of 4.28%, which fell by nearly 100 basis points from Q2 of 5.26% and 6.36% of the same quarter a year ago. We achieved this through ample funding and partnerships with cost-efficient national financial institutions. It also underscores the increasing confidence of our funding partners in our assets.

二是融資成本再創新低，為4.28%，較第二季的5.26%和去年同期的6.36%下降近100個基點。我們透過充足的資金以及與具有成本效益的國家金融機構的合作夥伴關係實現了這一目標。這也凸顯了我們的融資夥伴對我們資產的信心日益增強。

Three, continued optimization of user loan early payoff ratio and the revenue from some very added preform services.

第三是用戶貸款提前還款率和部分加值預製服務收入持續優化。

Second key highlight is improved asset quality. The asset quality of our total loan book improved in Q3. Total provision costs, the four lines in our income statement, including provisions for financial receivables, counter assets and receivables, provision for contingent guarantee liability and fair value change in our financial guarantee derivatives and fair value loans. Decreased by CNY21 million. to CNY1.6 billion from Q2.

第二個亮點是資產品質改善。第三季度，我們總貸款帳面的資產品質有所改善。總撥備成本，我們損益表中的四行，包括金融應收帳款撥備、反資產和應收帳款撥備、或有擔保負債撥備以及我們的財務擔保衍生品和公允價值貸款的公允價值變動。減少2100萬元。較第二季增至 16 億元。

The day one delinquency rate of total portfolios increased by 9% compared to Q2, thanks to our ongoing business transformation initiatives, especially in the risk management upgrading project. As we are gradually facing out higher risk existing loans and generate a better quality new loans, we believe the peak risk level of our total portfolio is behind us.

由於我們持續的業務轉型舉措，特別是風險管理升級項目，總投資組合的第一天拖欠率較第二季度上升了9%。隨著我們逐漸面臨更高風險的現有貸款並產生更高品質的新貸款，我們相信我們總投資組合的最高風險水平已經過去。

The third key highlight is the intense efficiency in customer acquisition. In Q3, we improved customer acquisition efficiency through two major channels. One, reactivating door-bending customers from our over 200 million accumulated registered user base and the rating, the RTA model in online and advertising channels.

第三個亮點是獲客效率極高。第三季度，我們透過兩大管道提升獲客效率。一是透過2億多的累積註冊用戶和評分，重新啟動彎門客戶，在線上和廣告管道上的RTA模式。

New users with improved credit lines increased to 756,000, up by 44% from Q2. However, the acquisition cost for new users with improved credit lines dropped by 35% compared to Q2. Moving forward, we will continue leveraging our large user base to reactivate more high quality users at relatively low cost.

信用額度改善的新用戶增至75.6萬戶，較上季成長44%。然而，信用額度改善的新用戶獲取成本較第二季下降了35%。未來，我們將繼續利用龐大的用戶基礎，以相對較低的成本重新激活更多優質用戶。

To summarize the aforementioned operational highlights, despite the macro environment and the stable new low volumes in Q3, we have achieved strong sequential profit growth through healthy and sustainable improvement in revenue take-away, assisted by improved asset quality, low funding costs, and the optimization of all business operations, including user acquisition efficiency.

總結上述營運亮點，儘管宏觀環境和第三季成交量穩定創新低，但在資產品質改善、較低的融資成本和優化所有業務運營，包括用戶獲取效率。

Next, I'm going to provide some more detailed overview and explanation of financial statement items. First, on the revenue side. The credit facilitation and service income increased by 11.3% quarter over quarter, mainly driven by the higher facilitation volume growth and higher take rate in off balance sheet loans facilitated, offsetting the lower volume in off balance sheet loans.

接下來，我將對財務報表項目進行更詳細的概述和解釋。首先，在收入方面。信貸便利化和服務收入環比增長11.3%，主要是由於便利化數量增長和表外貸款接受率提高，抵消了表外貸款量的下降。

Tech-empowered service income fell by 28.2% to CNY384 million quarter over quarter due to the product mix upgrade in Q3. As Jay mentioned, although the newly launched capitalized ICP platform is still in its early stage, we are confident in its future market demand and future volume growth.

由於第三季產品結構升級，科技賦能服務收入季減 28.2% 至 3.84 億元。正如Jay所說，雖然新推出的資本化ICP平台仍處於早期階段，但我們對其未來的市場需求和未來的銷售成長充滿信心。

E-commerce business revenue has dropped by 29.5% quarter over quarter due to the higher base of GNV in Q2 from the 618 shopping festival. We expect e-commerce business line back to the growth trajectory in Q4.

由於618購物節導致第二季GNV基數較高，電商業務收入較上季下降29.5%。我們預計第四季電子商務業務將重回成長軌道。

Next, on the cost and expense items. Processing and servicing costs increased by 16.1% quarter over quarter due to intensified loan collection efforts. Sales and marketing expenses dropped by 6.3% to CNY438 million in Q3. As we focused on reactivating dormant users, we're using spending on online advertising business.

接下來，關於成本和費用項目。由於貸款催收力度加大，處理和服務成本較上季成長 16.1%。第三季銷售和行銷費用下降 6.3% 至 4.38 億元。當我們專注於重新啟動休眠用戶時，我們將支出用於線上廣告業務。

G&A expenses decreased by 11.4% quarter over quarter due to cost efficiency initiatives. As a summary of the above, the net income improved by CNY83 million or 36.7% quarter over quarter.

由於成本效率舉措，一般管理費用較上季下降 11.4%。綜上所述，淨利較上季成長8,300萬元，成長36.7%。

The overall net profit margin improved from 6.2% in Q2 to 8.5% in Q3. This is primarily driven by higher revenue from the flat quarterly low volume, lower credit cost, lower operating cost, partially offset by the increasing processing and servicing costs due to collection, and a minor losses related to the e-commerce spins quarter over quarter. This breakdown analysis underscores the healthy profit improvement made in the loan facilitation business despite a flat quarterly loan volume growth.

整體淨利率從第二季的6.2%提升至第三季的8.5%。這主要是由於季度低銷量帶來的收入增加、信貸成本降低、營運成本降低，部分被託收帶來的處理和服務成本增加以及與電子商務季度環比相關的小額虧損所抵消。該細分分析強調，儘管季度貸款量成長持平，但貸款便利化業務的利潤卻取得了健康的改善。

Here is another way to look at the probability improvement. If we use net income to divide by current quarter GMV, we get the ratio of 0.61% in comparison with 0.44% in Q2. Clearly, if we measure the net income against the average loan balance, it is 1.09% in Q3 versus 0.77% in Q2.

這是查看機率改進的另一種方法。如果我們用淨利除以當季的 GMV，我們得到的比率為 0.61%，而第二季為 0.44%。顯然，如果我們根據平均貸款餘額來衡量淨利潤，則第三季為 1.09%，而第二季為 0.77%。

For balance sheet items, in Q3, our total cash position was approximately $4 billion , impacted temporarily by the maturity of some trust products. We maintained solid shareholders' equity of over CNY10 billion. Our provision coverage ratio remained sufficiently at approximately 240% at the end of Q3.

對於資產負債表項目，第三季度，我們的總現金部位約為 40 億美元，暫時受到一些信託產品到期的影響。股東權益維持在100億元以上。截至第三季末，我們的撥備覆蓋率仍維持在 240% 左右。

As Jay mentioned, we are committed to sustainable value creations for shareholders. The Board has approved and amended dividend payout policy, increasing the payout ratio to 25% of total net profits starting, January 1, 2025. We may further increase this ratio as profitability improves in the future.

正如傑伊所提到的，我們致力於為股東創造可持續的價值。董事會已批准並修訂股利支付政策，自2025年1月1日起將支付比例提高至淨利總額的25%。隨著未來獲利能力的提高，我們可能會進一步提高這個比率。

Looking ahead, with the government economic stimulus package gradually taking effect and the continued transformation of our business, we expect net profit to grow at considerable rate on the year-over-year basis for 2025. Although the profit recovery process may take a bit of time, Q3 has already marked a strong start.

展望未來，隨著政府經濟刺激計畫的逐步生效以及我們業務的持續轉型，我們預計2025年淨利潤將比去年同期大幅成長。儘管利潤恢復過程可能需要一些時間，但第三季已經是一個強勁的開端。

For Q4, we still remain patient with the macroeconomic conditions and will continue to adhere to prudent operating principles to lay a solid foundation for growth and profitability next year. Based on our current estimates, we expect the GMB of loan originations in Q4 to grow at flat to a lower single-digit rate on a quarter-over-quarter basis.

對於第四季度，我們對宏觀經濟情勢仍保持耐心，將繼續堅持穩健經營原則，為明年的成長和獲利奠定堅實的基礎。根據我們目前的估計，我們預計第四季度的 GMB 貸款發放量將環比持平至較低個位數成長。

This concludes my portion of the prepared remarks. Operator, we are now open for questions.

我準備好的發言部分到此結束。接線員，我們現在可以提問。

(Operator Instructions) Yada Li, CICC. Please go ahead.

（操作員指示） 李亞達，中金公司。請繼續。

(interpreted) Hello, management. Congrats to the exciting results, and thanks for taking my questions. My first one is what's management view on the growth strategy for the fourth quarter following the rollout of government policies doing this at the end of September? And can we see signs of consumer loans demand recovery based on the current operational data?

（翻譯）您好，管理階層。恭喜令人興奮的結果，並感謝您提出我的問題。我的第一個問題是，在九月底推出政府政策後，管理階層對第四季的成長策略有何看法？從目前的營運數據來看，能否看到消費貸款需求復甦的跡象？

And secondly, what's the core drivers for the significant net profit growth this quarter? And will this growing momentum of net profit continue in the following quarters? Thank you very much. Okay, the first question is for me. After the government's 4G policy was introduced in September, we saw some changes in the short term demand.

其次，本季淨利大幅成長的核心驅動力是什麼？淨利潤的成長勢頭會在接下來的幾個季度持續嗎？非常感謝。好的，第一個問題是問我的。9月政府4G政策推出後，我們看到短期需求發生了一些變化。

(interpreted)

（解釋）

Hi, Yala. This is Mandy. Let me translate for Jay.

嗨，亞拉。這是曼迪。讓我為傑翻譯一下。

Well, since the government rolled out the economic stimulus measures at the end of September, we did observe some positive change in the short-term demand. However, whether it will turn into a long-term sustainable recovery still depends on the ongoing improvements in the macroeconomic environment in the future.

那麼從九月底政府推出經濟刺激措施以來，我們確實觀察到短期需求出現了一些正面的變化。但能否轉變為長期可持續復甦，仍取決於未來宏觀經濟環境的持續改善。

So based on the quarter to date, Q4 operational data, we see that total volume long-term generation is generally flattish compared to the same period in Q3. We think this is due to our continued prudent operational strategy. We focus on maintaining an asset quality especially controlled at higher risk parts. Therefore, there hasn't been a significant growth in the overall loan ordination volume.

因此，根據本季迄今的第四季營運數據，我們發現長期發電總量與第三季同期相比總體持平。我們認為這是由於我們持續審慎的經營策略。我們專注於維持資產質量，尤其是在高風險部分的控制。因此，整體貸款排序量並沒有顯著成長。

Well, although the total volume remained roughly at the same level, there has been a continuous optimization in our asset structure. We have seen a slight increase of the high-quality customer with consistent recovery and enhancement in the high-quality demand. At the same time, we are actively promoting the growth high quality assets, continuing to increase the portions of high quality assets and improve overall asset quality.

那麼雖然總量基本持平,但是我們的資產結構是不斷優化的。優質客戶略有增加，優質需求持續恢復增強。同時，我們積極推動優質資產成長，持續增加優質資產佔比，提升整體資產品質。

Additionally, our recent upgrades in the customer acquisition strategy have to be effective. So we are actively deploying for the growth of new customers we think which would lay a solid foundation for the growth next year. Xiexie.

此外，我們最近對客戶獲取策略的升級必須是有效的。因此，我們正在積極部署新客戶的成長，我們認為這將為明年的成長奠定堅實的基礎。謝謝。

(interpreted)

（解釋）

Okay. Yala. This is Jay. Let me answer your second question. Basically, the second question is giving more details in terms of net profit for this and also the forecast for next. In Q3, the net profit reached approximately about CNY310 million. It is a very significant quarter over quarter growth of 36.7%. Really, the growth is attributed to the companies continuing to focus on strengthening our core competencies, especially in risk management, continuous optimization of overall operations over the past two years.

好的。雅拉。這是傑伊。讓我回答你的第二個問題。基本上，第二個問題是提供更多關於淨利潤的細節以及下一步的預測。第三季淨利約3.1億元。這是一個非常顯著的季度環比增長，達到 36.7%。事實上，這種成長歸功於公司過去兩年持續專注於增強核心能力，特別是在風險管理、整體營運方面的持續優化。

Specifically, really two drivers. The first one is the improvement in asset quality as both Jay and [Zhang] were mentioned a few times. Basically, we're benefiting from the 3D focus on the risk management. Overall upgrade, new asset quality continued to optimize in Q3. The overall quality in Q3 actually in terms of asset quality, it really reached the turning point. It's beginning to stabilize and recover as the batch of loans with higher risks that are issued in the second half of last year gradually mature.

具體來說，確實是兩個司機。第一個是資產品質的改善，周杰倫和[張]都多次提到。基本上，我們受益於對風險管理的 3D 關注。整體升級，三季新資產品質持續優化。第三季的整體品質其實從資產品質來看，確實到了拐點。隨著去年下半年發放的一批風險較高的貸款逐漸成熟，開始穩定回升。

So based on our preliminary estimate, we would expect a considerable growth in net profit next year on a year-over-year basis. Obviously, as you know, we're going to provide guidance for next year after we report our Q4 numbers.

所以根據我們的初步估計，我們預計明年淨利年會有較大幅度的成長。顯然，如您所知，我們將在報告第四季度的數據後提供明年的指導。

In this quarter, the FPD7 for the new assets decreased by approximately 13% quarter over quarter, and the day one delinquency rate for the total assets decreased by about 9% in comparison with the second quarter. We would expect this downward trend of risk level continue in fourth quarter and into next year as well. So basically, that's the first driver in the profit improvement.

本季新增資產FPD7季減約13%，總資產首日拖欠率較第二季下降約9%。我們預計風險水準的下降趨勢將在第四季度持續到明年。所以基本上，這是利潤改善的第一個驅動因素。

The second driver really is the record low funding cost is really driven by ample market liquidity and a strong demand for the high-quality consumer credit assets. The funding cost continues to drive into Q3 is about 100 basis points lower than Q4 in marketing, our largest quarterly optimization in the past couple of years. I can dive a little bit more into the details, basically looking at the financial statement perspective.

第二個驅動因素是，創紀錄的低融資成本實際上是由充足的市場流動性和對優質消費信貸資產的強勁需求所推動的。行銷方面的融資成本持續推高到第三季度，比第四季低約100個基點，這是我們過去幾年來最大的季度優化。我可以更深入地了解細節，基本上就是從財務報表的角度來看。

If you look at the pre-tax profit increased by CNY95 million quarter by quarter. Obviously, if you look at the specifics, there are pluses and minuses here. If we look at the plus side, excluding the e-commerce revenue, there is an increase in revenue related to the loan business in the amount of about CNY150 million. And also there's a reduction in the total risk provisions and contributing to about CNY20 million to the net profit, quote-unquote.

如果看稅前利潤逐季增加9500萬元。顯然，如果你看具體細節，你會發現這裡有優點也有缺點。從好的方面來看，剔除電商收入，貸款業務相關收入增加約1.5億元。此外，總風險準備金也有所減少，為淨利潤貢獻了約 2,000 萬元人民幣（不含報價）。

Obviously, the minus side includes the decreased e-commerce gross profit by about CNY30 million in Q3, and also there's increased processing and servicing costs for collections and all packs of about CNY50 million. So if we net both the plus and minus sides together, it contributed to an increased pre-tax profit of about CNY108 million. And this lead to the net income increase of about CNY83 million quarter over quarter, record quarter over quarter growth of about 37%.

顯然，負面影響包括第三季電商毛利下降約3,000萬元，以及藏品及全包的加工和服務成本增加約5,000萬元。因此，如果我們將正負兩方面相加，則稅前利潤增加約1.08億元。這導致淨利潤環比增加約83​​00萬元，創紀錄的環比增長約37%。

Again, we are happy with the result in Q3. And we expect a better profit increase for next year, which will provide more detailed guidance after report two four. Hopefully, this answers your question.

我們再次對第三季的結果感到滿意。我們預計明年的利潤成長會更好，這將在報告二四後提供更詳細的指導。希望這能回答您的問題。

Zoe Zou, CLSA.

佐伊·鄒，里昂證券。

(interpreted)

（解釋）

The first question, management mentioned that it was the risk level of new loan has been continuously optimized quarter over quarter. And overall asset quality has also improved compared to Q2. Could you elaborate on the main measures taken in Q3 to optimize the risk level of new loans and provide an outlook on the expected progress of the overall asset quality recovery in the future?

第一個問題，管理階層提到新增貸款的風險程度逐季持續優化。整體資產品質也較第二季有所改善。您能否詳細介紹三季優化新增貸款風險水準的主要措施，並對未來整體資產品質恢復的預期進展進行展望？

The second question is about the newly launched Intelligent Credit Platform model. Could you elaborate more on the future plan on this new business line and its impact on the company business scale and profitability?

第二個問題是關於新推出的智慧信用平台模式。您能否詳細介紹一下這條新業務線的未來規劃以及對公司業務規模和獲利能力的影響？

(interpreted)

（解釋）

Hi Zoe, let me translate for Arvin.

嗨，佐伊，讓我為阿爾文翻譯。

So in Q3 regarding the key areas in risk management space, we primarily focus on improving several efforts. One, risk identification; two, risk decision making; three, risk pricing; four, different risk bearing model.

因此，在第三季度，關於風險管理領域的關鍵領域，我們主要專注於改善幾項工作。一、風險識別；二、風險決策；三、風險定價；四、風險承擔模式不同。

Firstly, for the new customer acquires through the online advertising channels, we put efforts in below four measures.

首先，對於透過網路廣告管道獲取的新客戶，我們在以下四個方面進行了努力。

Number one, we focused on the high quality channels and accelerated the phasing out of long tail high risk channel. Secondly, we put efforts to build a joint model with the leading platforms with scenario data. Number three, we enhanced our anti-fraud detection capability. Number four, we expand our low and grow strategy to the all business line.

第一，聚焦優質通路，加速淘汰長尾高風險通路。其次，我們著力與領先的場景資料平台建立聯合模型。第三，增強反詐欺偵測能力。第四，我們將低成長策略擴展到所有業務線。

As a result, we have continuously strengthened our risk identification capability and the upgraded risk strategy for new customers, resulting in a stable decline in the risk level of new customers in this channel. So compared to Q2, the risk level has decreased by 10%. By the end of Q3, leading indicator at FPD7 for new customers has significantly decreased approximately by 50%, compared to the peak level in Q4 last year.

為此，我們不斷強化風險辨識能力，升級新客戶風險策略，該通路新客戶風險水準穩定下降。所以與第二季相比，風險水準下降了10%。截至第三季末，FPD7新客戶領先指標較去年第四季的峰值大幅下降約50%。

At the same time, we are able to uplift to some extent in the approval rate in order to promote the growth of high-quality loans for new customers. So we expect the risk level of new customers acquired through the online advertising channel to catch up with the leading platform in the industry by the end of 2024.

同時，我們可以一定程度地提高審批率，以促進新客戶優質貸款的成長。因此我們預計在2024年底，透過網路廣告管道獲取的新客戶的風險水準將趕上業界領先平台。

Regarding the latter part of your question, for the overall asset quality recovery progress, the day one delinquency rate of the total assets decreased by 9% in Q3 compared to Q2. We estimate this downward trend will continue in Q4. So based on our continued advancement of the overall risk management upgrade efforts, we are confident that with the ongoing optimization of asset structure, namely, we will reduce the portion of delinquent assets and promote the generation of high-quality assets.

關於你問的後半部分，從整體資產品質恢復進展來看，第三季總資產首日拖欠率比第二季下降了9%。我們預計第四季度這種下降趨勢將持續。因此，在我們持續推動全面風險管理升級工作的基礎上，我們有信心隨著資產結構的不斷優化，也就是減少不良資產的比例，促進優質資產的生成。

Well, according to our schedule progression with the risk management initiatives, we expect to see a significant increase in our net profit in 2025. Hope that answers your question, Zoe.

那麼，根據我們的風險管理計畫進度，我們預計 2025 年淨利將大幅成長。希望這能回答你的問題，Zoe。

(interpreted)

（解釋）

Let me translate for Jay's comment.

讓我翻譯一下傑伊的評論。

Well, thanks to our continued effort to strengthen the internal coverability, especially the risk management coverability, we have been able to upgrade the risk identification coverability that enabled us to conduct a more precise customer segmentation and launch the new model ICP, short for Intelligent Credit Platform model.

那麼透過我們不斷加強內部覆蓋能力,特別是風險管理覆蓋能力,我們把風險識別的覆蓋能力提升到了一個新的水平,使我們能夠進行更精準的客戶細分,推出了新的ICP模式,即智能信貸平台模型。

ICP is a capital-light profit sharing model, the risk of principal loss. The new model expands our addressable market, while smooth the potential risk fluctuation across credit cycle. Through the ICP model, we can identify customers with different risk levels more precisely, provide more accurate segmentation and differentiated pricing, then distribute these assets to financial institutions with corresponding and complementary risk appetite.

ICP是輕資本利潤分享模式，無本金損失風險。新模型擴大了我們的潛在市場，同時平滑了整個信貸週期的潛在風險波動。透過ICP模型，我們可以更精準地識別不同風險等級的客戶，提供更精準的細分和差異化定價，然後將這些資產分配給風險偏好相對應、互補的金融機構。

This approach allows us to offer customers longer life cycle service, thereby, generating more sustainable revenue from technology service. Well, although the ICP model just got launched in Q3 and only accounts for a very small portion of our total loan volume currently, we believe this business line is crucial to adjusting our overall asset structure and turn our business model into a more sustainable one. We believe ICP model still has significant growth potential. We will continue to make product mix adjustment through expanding this model.

這種方法使我們能夠為客戶提供更長生命週期的服務，從而從技術服務中產生更永續的收入。那麼，雖然ICP模式在第三季度剛剛推出，目前只占我們總貸款量的一小一部分，但我們相信這條業務線對於調整我們的整體資產結構以及將我們的業務模式轉變為更可持續的業務模式至關重要。我們認為ICP模式仍有巨大的成長潛力。我們將透過拓展此模式繼續進行產品結構調整。

Zoe, hope this address your question.

佐伊，希望這能解決您的問題。

Yuxuan Chen, Huatai Securities.

陳宇軒，華泰證券。

(interpreted)

（解釋）

Okay, let me do the translation.

好的，我來翻譯一下。

Hello, management. I have two questions. The first one is, when noticed, you also mentioned that the funding cost hit a new record low this quarter. Could you elaborate how we drive this factors behind this and provide an outlook and funding cost on Q4?

你好，管理層。我有兩個問題。第一個是，注意到你也提到本季融資成本創歷史新低。您能否詳細說明我們如何推動這一因素背後的因素，並提供第四季度的前景和融資成本？

The second one is in Q3. You made customer acquisition costs significantly decrease and the number of never-approved private land customers increased substantially quarter on quarter. Could you introduce the main measures taken and whether the customer acquisition costs will continue to drop in the future? Thanks.

第二個是在第三季。您使客戶獲取成本顯著降低，從未批准的私人土地客戶數量較上季大幅增加。您能否介紹一下採取的主要措施以及未來獲客成本是否會持續下降？謝謝。

Okay, I will take the first question. Funding costs decreased by approximately 100 basis points to 4.28% in comparison with Q2. This really marks the 11th consecutive quarter of reducing funding costs since Q1 of 2022, reaching a new historic low and achieving the largest quarterly reduction.

好的，我回答第一個問題。資金成本較第二季下降約100個基點至4.28%。這確實標誌著自2022年第一季以來融資成本連續第11季下降，創歷史新低，實現最大季降幅。

For the fourth quarter, given that we're already at a historic low funding cost, and also considering kind of a seasonality of tight funding typically before the end of the year, right, for financial institutions. So we anticipate relatively moderate optimizations in funding costs for Q4.

對於第四季度，考慮到我們已經處於歷史最低的融資成本，並且還考慮到金融機構通常在年底之前出現季節性資金緊張，對吧。因此，我們預期第四季的融資成本將相對適度優化。

Looking ahead to 2025, with the continued implementation of easing money policies supporting the macroeconomic recovery and more recognition from the funding partners as our asset quality continues to improve, so we have confidence that we will continue to optimize the funding costs and enhance our overall profitability next year.

展望2025年，隨著支持宏觀經濟復甦的寬鬆貨幣政策的持續實施，以及資金合作夥伴的認可，我們的資產品質持續改善，我們有信心繼續優化融資成本，提升整體盈利能力明年。

(interpreted)

（解釋）

Hi, Yuxuan. Let me translate for Jay's comment. So regarding your question about the [capital allocation], reduction of this is mainly attributable to several measures.

嗨，宇軒。讓我翻譯一下傑伊的評論。那麼關於你提到的資本配置的問題，減少主要是透過幾項措施來實現的。

Number one, we have significantly improved our capability and efficiency in customer acquisition through the online advertising channel on a quarter-over-quarter basis. Unit cost of users with approved credit line dropped by 24%, Q on Q. And the number of users with approved credit line increased by 22%.

第一，我們透過線上廣告管道獲取客戶的能力和效率比上季顯著提高。獲得授信額度的使用者單位成本下降了 24%，較上季下降了 24%。

As for the question of good quality and high potential users, total number with approved credit line rose by 34% and the total amount of the credit drawdown increased by 3,0. 30%. Meanwhile, we are able to brought down the unit cost acquisition of good quality users by 4,0. 40%. As a result, the risk level of new customers dropped by 10% compared to Q2.

在優質、高潛力用戶方面，獲批授信總數增加了34%，授信總額增加了3.0%。30%。同時，我們能夠將優質用戶的單位獲取成本降低4.0。40%。結果，新客戶的風險水準比第二季下降了10%。

Moreover, the of good quality user continue to hike, and the payback period got shortened. We believe with the strengthened customer acquisition capability, we will probably increase investment in customer acquisition front in the future in order to lay a foundation for the business growth next year.

此外，優質用戶持續成長，投資回收期縮短。我們相信隨著獲客能力的增強，未來我們很可能會加大在獲客方面的投入，為明年的業務成長奠定基礎。

The second measure, we have intensified efforts to activate and convert dormant customer. You know, over the past 11 years, Lexin has accumulated a large user base, roughly more than 200 million users. In the future, we will continue to refine the operation in order to provide more accurate credit line granting and loan pricing for customers to activate dormant customers.

二是加大休眠客戶啟動轉換力道。要知道，過去11年，樂信累積了龐大的用戶基礎，大致上有2億多用戶。未來，我們將繼續精進操作，為客戶提供更精確的授信額度和貸款定價，啟動休眠客戶。

In Q3, the total number of reactive dormant customers nearly doubled compared to Q2. With the credit line drawdown rates of the approved customer increased by 47% comparatively in the AB test.

第三季度，反應性休眠客戶總數比第二季度幾乎增加了一倍。AB測試中核准顧客的授信額度提領率相對提高了47%。

Moreover, the customer acquisition cost for the reactive state customer is low and the risk level is about 20% lower than that of the new customer from online advertising channel. Therefore, in Q4, we will continue to intensify efforts to reactivate and convert existing customers in order to sustain the low cost and the low risk.

而且，反應態客戶的獲客成本較低，風險程度比網路廣告通路新客戶低約20%。因此，第四季我們將繼續加強現有客戶的活化和轉換力度，以維持低成本、低風險。

For the third round, we have further strengthened our cooperation with the leading [K-A] channels in Q3. By far, the volume growth and the profitability looks good. We will continue to increase the investment in this channel in the future.

第三輪，我們在第三季進一步加強了與領先的[K-A]通路的合作。到目前為止，銷售成長和獲利能力看起來不錯。未來我們將繼續加大對該通路的投入。

Hope this addressed your question, Yuxuan. Operator, can you check if there is more question on the line?

希望這能解決你的問題，宇軒。接線員，您能檢查線路上是否還有其他問題嗎？

No more questions on the line. Please continue.

線路上不再有任何問題。請繼續。

Okay, then, thank you everyone again for joining us today. If you have further questions, please contact us via the contact information on our IR website.

好的，那麼，再次感謝大家今天加入我們。如果您還有其他疑問，請透過我們 IR 網站上的聯絡資訊與我們聯絡。

Thank you all, have a good day and good night. Bye bye.

謝謝大家，祝您有美好的一天和美好的夜晚。再見。

That concludes today's conference call. Thank you for your participations. You may now disconnect your line.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。