Lexinfintech Holdings Ltd (LX) 2024 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the LexinFintech fourth-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加樂信金融科技2024年第四季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the call over to your host today, Mr. Will Tan. Please go ahead.

現在我想將電話轉給今天的主持人 Will Tan 先生。請繼續。

Thank you, operator. Hello, everyone. Welcome to our fourth-quarter 2024 earnings conference call. Our results were released earlier today and are currently available on our IR website. Today, you will hear from our Chairman and CEO, Mr. Jay Wenjie Xiao, who will provide an update on overall performance and the strategies. Our CRO, Mr. Arvin Zhanwen Qiao will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Zheng will discuss our financial performance.

謝謝您，接線生。大家好。歡迎參加我們的 2024 年第四季財報電話會議。我們的結果已於今天早些時候發布，目前可在我們的 IR 網站上查閱。今天，您將聽取我們的董事長兼執行長肖文傑先生的講話，他將提供有關整體績效和策略的最新資訊。我們的首席風險長 Arvin Zhanwen Qiao 先生將提供有關我們的風險管理舉措和更新的更多詳細資訊。最後，我們的財務長鄭先生將討論我們的財務表現。

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 result may differ materially, and we do not assume any obligations to update any forward statement except as required under applicable laws. Last, please note that all figures are presented in RMB terms and all comparisons are made on quarter-over-quarter basis, unless otherwise stated.

在我們開始之前，我想提醒您我們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。在電話會議中，我們可能會參考基於我們目前計劃、估計和預測的業務展望和前瞻性陳述。實際結果可能存在重大差異，除適用法律要求外，我們不承擔更新任何前瞻性聲明的義務。最後，請注意，除非另有說明，所有數字均以人民幣計算，所有比較均按季度進行。

Please kindly note Jay and Arvin will give their whole remarks in Chinese first. Then the English version will be delivered by Jay and Arvin's AI-based voices.

請注意，Jay 和 Arvin 將首先用中文發表全部發言。然後，Jay 和 Arvin 的人工智慧語音將播報英文版本。

With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and the CEO of Lexin. Please.

現在，我很高興將電話轉給樂信董事長兼執行長肖文傑先生。請。

(spoken by AI) (technical difficulty) for joining us today for our fourth quarter 2024 earnings call. In the fourth quarter, we maintained a prudent operating strategy focusing on expanding high-quality assets and optimizing profitability. Driven by enhanced risk management system and advanced data analytics capabilities, we further reduced overall portfolio risk and delivered consistent profit growth.

（人工智慧朗讀）（技術難題）感謝您今天參加我們的 2024 年第四季財報電話會議。第四季度，我們持續保持審慎的經營策略，並專注於拓展優質資產，優化獲利能力。在強化風險管理系統和先進數據分析能力的推動下，我們進一步降低了整體投資組合風險並實現了持續的利潤成長。

As of quarter end, our outstanding loan balance stood at RMB110 billion. During the fourth quarter, our GMV was [RMB52 billion]. Revenue was RMB3.7 billion, and non-GAAP profit was RMB390 million. Performance has been improving for multiple consecutive quarters, and both revenue and profit have entered a clear growth trajectory.

截至季末，我們的貸款餘額為人民幣1,100億元。第四季度，我們的 GMV 為[520億元人民幣]。營業收入為37億元人民幣，非美國通用會計準則利潤為3.9億元。業績連續多個季度向好，營收和利潤均進入明顯的成長軌道。

Now I'd like to share a few key highlights of our fourth-quarter performance. First, new loans facilitated have consistently maintained high quality, resulting in a continued decline in overall portfolio risk and sequentially improving profitability compared to the third quarter, leading risk indicators for new loans, first payment default, FPD over 7 days improved by 8%, and FPD over 30 days decreased by about 9% on total loan portfolio. Day one delinquency ratio decreased by 4%. 90 days delinquency ratio decreased by 3%.

現在，我想分享我們第四季業績的幾個關鍵亮點。一是新貸業務持續保持高品質，帶動整體貸款組合風險持續下降，獲利能力較第三季持續改善，新貸業務主要風險指標首付違約率、7天以上固定利率改善8%，30天以上固定利率在貸款組合總體中下降約9%。首日拖欠率下降了4%。 90天拖欠率下降3%。

The improvement in risk performance is primarily attributed to our long-term and continuous investment in risk identification capabilities and risk management tools. In terms of risk identification capabilities, we introduced multi-dimensional third-party data, developed tailored data systems and identification models for segmented customer groups, strengthened real-time user risk identification, and leveraged the latest big model technology to improve model stability. As a result, the accuracy of risk identification improved by 15% compared to the previous quarter, while stability improved by 10%.

風險績效的提升主要得益於我們長期持續投入風險識別能力和風險管理工具。在風險辨識能力方面，引進多維度第三方數據，針對細分客群開發客製化資料體系與辨識模型，加強即時使用者風險識別，並利用最新大模型技術提升模型穩定性。風險辨識準確率較上一季提升了15%，穩定性提升了10%。

On the risk management tools front, we established a risk control laboratory for intelligent risk testing in the fourth quarter, creating a new paradigm of small scale experiments, AB testing, long-term observation, and dynamic strategy evolution. This approach ensures that every risk management decision and strategy iteration is grounded in data-driven insights and robust analytical support.

在風險管理工具方面，我們在第四季度建立了智慧風險測試的風控實驗室，創造了小規模實驗、AB測試、長期觀察和動態策略演進的新範式。這種方法可確保每個風險管理決策和策略迭代都以資料驅動的洞察力和強大的分析支援為基礎。

In the fourth quarter, we significantly enhanced our efforts in targeting and managing high-quality customer segments. We expanded customer acquisition channels and scenarios by developing CRL-based models and revamping the life cycle strategy framework, leading to continuous growth in new active users. Meanwhile, we upgraded and optimized the credit line decision-making system based on a rapid testing and validation approach significantly enhancing the accuracy of risk and credit line matching. Thanks to these initiatives, the competitiveness and profitability of our high-quality customer segments (technical difficulty) in the fourth quarter.

第四季度，我們大幅加強了對優質客戶群的鎖定和管理。我們透過開發基於CRL的模型、重塑生命週期策略框架，拓展獲客管道與場景，持續推動新活躍用戶成長。同時，本行透過快速測試驗證方式升級優化授信決策系統，大幅提升風險與授信相符的準確性。得益於這些舉措，我們第四季度優質客戶群的競爭力和盈利能力(技術難度)有所提升。

High-quality assets increased substantially, and the steady growth of our prime customer base further strengthened the stability and sustainability of our business. Our CRO, Arvin, will provide further details regarding our risk management initiatives later.

優質資產大幅增加，優質客戶群穩定成長，進一步增強了業務的穩定性和永續性。我們的首席風險長 Arvin 稍後將提供有關我們的風險管理舉措的更多詳細資訊。

The second highlight is the improved efficiency and quality of our refined operations further strengthened our differentiated competitive advantage. During the fourth quarter, business lines in our ecosystem [consumer] finance, e-commerce, inclusive finance, and overseas business made notable progress.

第二大亮點是精細化營運效率和品質的提升，進一步增強了我們的差異化競爭優勢。第四季度，我們生態金融、電子商務、普惠金融、海外業務等業務線均有顯著進展。

For online consumer finance business, we deepened our exploration of customer acquisition and operations for segmented customer groups and developed tailored outreach strategies. For e-commerce business, we revamped our risk management system for installment e-commerce platform, leveraging real-time risk control, risk management, and an upgraded product supply chain to better meet consumers' needs for installment payments and hassle-free shopping. As a result, e-commerce profit entered a fast-growing track in the fourth quarter.

網路消費金融業務方面，深化細分客群獲客與營運探索，制定差異化觸達策略。電商業務方面，完善分期電商平台風控體系，透過即時風控、風險管控及產品供應鏈升級，更能滿足消費者分期付款、便利購物的需求。受此影響，第四季電商獲利進入快速成長軌道。

For offline inclusive finance business, we refined our sales management system focusing on serving small businesses' owners in lower tier cities. By enhancing one-on-one services for core customer groups, loans originated from fourth- and fifth-tier cities and below accounted for over 65% of the total GMV. Our inclusive finance business has now been profitable for three consecutive quarters.

對於線下普惠金融業務，我們完善了銷售管理體系，專注於服務低線城市小微型企業主。加強核心客群的一對一服務，四、五線及以下城市貸款佔比達65%以上。我們的普惠金融業務目前已經連續三個季度獲利。

For overseas business, we strengthened fundamental capabilities in risk management and mid- to back-office support while pre-monetizing localized operations and exploring new customer acquisition models. This led to a significant drop in new customer acquisition costs and improved operating continuity and stability.

海外業務方面，我們加強風險管理、中後台支援等基礎能力建設，推動在地化營運預變現，探索新的獲客模式。這導致新客戶獲取成本大幅下降，並提高了營運的連續性和穩定性。

While overseas business is still in the early phase, we remain committed to driving its steady growth. During the quarter, our Intelligence Credit Platform, ICP, gained further traction with its share of GMV continued to rise. This model has enabled effective collaboration with financial partners, leveraging complementary strengths to drive sustained growth in both revenue and net profits. Thanks to the consistent improvement in our overall asset quality, our assets have gained greater acceptance among financial institutions. This has diversified and strengthened our funding sources and structure while (technical difficulty) overall funding cost.

儘管海外業務仍處於起步階段，但我們仍致力於推動其穩定成長。本季度，我們的智慧信用平台ICP獲得進一步發展，其GMV份額持續上升。該模式實現了與金融合作夥伴的有效合作，利用互補優勢推動收入和淨利潤的持續成長。得益於本行整體資產品質的持續改善，本行資產獲得金融機構認可度不斷提升。這使得我們的資金來源和結構多樣化並加強了，同時（技術難度）整體融資成本也降低了。

The third highlight is technology. We place a strong emphasis on research and development and its practical applications. In the fourth quarter, we invested RMB151 million in research and enhanced our industry-leading competitive edge.

第三個亮點是科技。我們非常重視研究發展及其實際應用。第四季度，我們投入研發費用1.51億元，增強了我們產業領先的競爭優勢。

A key focus has been on AI big models. We have completed our localized deployment of leading large models such as (technical difficulty) and developed our proprietary large model, Singularity. Now Singularity model is deeply embedded in our daily operations, enhancing efficiency across customer service, telemarketing, collections, coding, and data analysis.

重點關注的是人工智慧大模型。完成了等領先大模型的在地化部署（技術難度較高），開發了自主研發的大模型Singularity。現在，Singularity 模型已深深融入我們的日常營運中，提高了客戶服務、電話行銷、收款、編碼和資料分析等各個方面的效率。

In research and development, it's now fully adopted by our development teams, assisting and generating code 860,000 times monthly and offering 210,000 quality improvement suggestions in 2024, boosting coding efficiency by approximately 35%. Additionally, leveraging DeepSeek has allowed us to deploy private large models (technical difficulty) costs, putting new avenues for applications in risk management, operating refinement and workforce efficiency.

在研發方面，目前已全面被我們的開發團隊採用，每月協助產生代碼86萬次，2024年提供品質改善建議21萬條，編碼效率提升約35%。此外，利用 DeepSeek 使我們能夠以成本（技術難度）部署私人大型模型，為風險管理、營運改善和勞動力效率的應用開闢了新的途徑。

We believe AI holds immense potential to transform our core capabilities, and we will continue to invest in AI to maintain our competitive edge and drive greater value. In addition to the above mentioned highlights, to do more rights protection is always a core competitive advantage and key strength. In the fourth quarter, we further enhanced the digital and systematic development of consumer protection. Leveraging tools like AI large models, we optimize product service touch points, identified service gaps in real time, and refined communication mechanisms to improve the overall consumer experience, earning greater trust from our customers.

我們相信人工智慧具有改變我們核心能力的巨大潛力，我們將繼續在人工智慧方面進行投資，以保持我們的競爭優勢並創造更大的價值。除了上述的亮點之外，做好維權工作始終是我們的核心競爭優勢和關鍵實力。第四季度，我們進一步加強消費者權益保護數位化、系統化建置。我們利用AI大模型等工具，優化產品服務接點，即時發現服務差距，完善溝通機制，提升整體消費者體驗，贏得客戶更大信任。

In supporting small and microbusinesses, we actively uphold the principles of inclusive finance. Through a continuous innovation in products and services, we have improved the accessibility and convenience of our financial services, helping small businesses address challenges in financing. Throughout the year, we facilitated over RMB30 billion loans for small and microbusinesses.

在支持小型企業方面，我們積極實踐普惠金融。我們透過不斷創新產品和服務，提升金融服務的可近性和便利性，幫助小型企業解決融資難題。全年累計發放小型企業貸款超過300億元。

Looking ahead to 2025 amid the current macro and industry environment, we will continue to adhere to prudent operating strategy prioritizing risk management and driving further de-risking and asset structure optimization. We are confident in achieving significant profit growth this year. We will strengthen our differentiated offerings in credit lines and pricings and refine our operating systems to meet the diverse financial needs of our customers at all levels, delivering high-quality services throughout their life cycle.

展望2025年，在當前的宏觀及產業環境下，我們將繼續堅持審慎的經營策略，以風險管理為先，進一步推動風險化解和資產結構優化。我們有信心今年獲利大幅成長。我們將加強授信、定價等方面的差異化建設，完善經營體系，滿足各層次客戶多樣化的金融需求，為客戶全生命週期提供高品質的服務。

Additionally, we will proactively broaden our business boundaries to foster consistent growth of our business performance. Starting this year, we will increase our dividend payout ratio to 25% of net profit. As profit continues to grow, we plan to further enhance dividends, consistently boosting shareholder returns.

此外，我們將積極拓展業務邊界，促進業務績效持續成長。從今年開始，我們將提高股利支付率至淨利的25％。隨著利潤不斷增長，我們計劃進一步提高股息，並持續提高股東回報。

Now I'll turn the call over to our CRO, Arvin. Thanks

現在我將電話轉給我們的 CRO，Arvin。謝謝

(spoken by AI) Thanks, Jay. Next, I will provide a review of our key initiatives and achievements in risk management for the fourth quarter. In the fourth quarter, we remain committed to our strategy of prioritizing asset quality, focusing on scale stability and profitability enhancement through three key initiatives, and have achieved solid results compared to the third quarter.

（人工智慧說話）謝謝，傑伊。接下來，我來回顧一下第四季我們在風險管理方面的重點措施和成效。第四季度，我們堅持資產品質優先、穩定規模、提升獲利能力的三大舉措，取得了較第三季更加紮實的成績。

Leading risk indicators for new loans, first payment default, FPD, over 7 days declined by about 8% in the fourth quarter. On total loan portfolio, day 1 delinquency ratio decreased by 4%, and 90-day delinquency ratio decreased by 3% quarter over quarter.

第四季度，新貸款的領先風險指標－7天首筆付款違約率（FPD）下降了約8%。就整體貸款組合而言，1 天拖欠率季減 4%，90 天拖欠率較上季下降 3%。

The continued decline in risks was achieved by the following key initiatives we've taken. First, to enhance the accuracy and stability of risk identification, we have introduced new high-quality data sources while conducting deeper data mining and joint modeling with our existing core data sources to improve model performance. At the same time, we have ramped up the development of dedicated scoring models for different business lines, products, and customer segments.

風險的持續下降是我們透過以下關鍵措施來實現的。第一，為提升風險辨識的準確性與穩定性，我們引進新的優質資料來源，同時與現有的核心資料來源進行更深層的資料探勘與聯合建模，提升模型效能。同時，我們增加針對不同業務線、產品、客戶群的專用評分模型的開發。

Compared to general models, dedicated models use more targeted modeling samples, which significantly improve prediction accuracy. In terms of model stability, we have addressed uncertainties in model predictions caused by factors such as missing data and noise by employing algorithms to quantify the specific uncertainties, thereby, enhancing prediction stability. These automation measures have led to about a 15% improvement in risk identification accuracy and a 10% increase in model stability.

相較於通用模型，專用模型採用了更有針對性的建模樣本，預測準確率明顯提升。在模型穩定性方面，我們針對缺失資料、雜訊等因素所導致的模型預測的不確定性，透過演算法量化具體的不確定性，提高預測的穩定性。這些自動化措施使風險識別準確率提高了約15%，模型穩定性提高了10%。

Second, we have upgraded our credit line management capabilities by adopting the test and learn approach, leveraging our strategy laboratory. We conducted credit line experiments across different customer segments to identify the optimal fit among credit line, borrower risk, and user conversion. This approach has enabled us to optimize credit lines for various user groups, improve the accuracy of credit allocation, and balance business growth and risk control, which has ultimately helped drive scale growth driven by a more competitive credit line for high-quality customers and mitigate risks from reducing credit line for high-risk customers.

第二，我們透過採用測試和學習的方法，利用我們的策略實驗室，升級了我們的信貸額度管理能力。我們對不同的客戶群體進行了信用額度實驗，以確定信用額度、借款人風險和用戶轉換之間的最佳契合度。透過此策略，我們優化了針對不同使用者群體的授信額度，提高了授信分配的精準度，平衡了業務成長與風險控制，最終實現了以更有競爭力的優質客戶授信額度帶動規模成長，以降低高風險客戶授信額度降低帶來的風險。

Third, we have optimized and restructured our risk identification and decision-making system for API scenarios. We developed dedicated risk identification models for each core API scenario and enhanced risk screening upfront through joint modeling with API scenarios.

第三，優化重構了API場景風險辨識與決策體系。我們為每個核心API場景開發了專門的風險識別模型，並透過與API情境的聯合建模增強了前期風險篩選。

Furthermore, based on the customer characteristics and profiles of different channels, we have implemented a differentiated full suit of strategies covering admission, transactions, credit amount, and pricing. This enables us to meet the credit needs of customers from various traffic platforms while effectively keeping risk within our preferred range. Thanks to these upgrades, GMV of our API channels increased by about 23% quarter over quarter, while risk of new assets declined by 10% compared to the prior quarter.

同時，根據不同通路客戶特徵及畫像，實施差異化的存取、交易、授信、定價全套策略。這使我們能夠滿足各個流量平台客戶的信貸需求，同時有效地將風險控制在我們優先的範圍內。由於這些升級，我們的API通路GMV環比成長了約23％，而新資產的風險與上一季相比下降了10％。

Fourth, we implemented differentiated [per due date] reminder strategies tailored to groups with different probabilities of default. Meanwhile, for customers with repeated delinquencies, we launched a dedicated project focusing on optimizing repayment date settings, increasing the binding rate of frequently used bank cards, and improving the rate of auto-bid agreements. As the share of new assets from prime plus customers continued to grow, day 1 delinquency ratio of the total portfolio has continued to decline consistently.

第四，針對不同違約機率的群體，實施差異化的提醒策略。同時，針對多次拖欠客戶，我們啟動專案整治，重點優化還款日設置，提高常用銀行卡綁定率，提升自動競價協議率。隨著來自優質客戶的新資產份額不斷增長，整個投資組合的第一天拖欠率持續下降。

Last but not least, in terms of risk control tool development, we have completed the construction of a risk control laboratory and fully applied it into our operations, advancing our risk management approach towards a combination of risk prediction and risk experimentation. The new risk control laboratory has established an end-to-end process covering experiment design, credit allocation, dynamic adjustments, results, evaluation.

最後，在風控工具建設方面，我們完成了風控實驗室的建設，並全面運用到業務運作中，推動風險管理向風險預測與風險實驗結合的方向發展。新風控實驗室建立了實驗設計、信用分配、動態調整、結果評估等端到端的流程。

With the laboratory, we can not only directly set experimental variables such as admission rules, tiering of credit line, and pricing models, but can also generate different strategies with one click, which significantly reduces deployment time. Also, the risk control laboratory supports intelligent traffic segmentation and dynamic sample isolation, enabling real-time, millisecond traffic distribution, as well as multi-layered experiment isolation at the user device and request levels. Furthermore, through dynamic bucketing [algorithm] based on user profiles and risk stratification, the laboratory ensures the independence of samples between experimental and control groups, effectively avoiding data contamination.

透過該實驗室，我們不僅可以直接設定准入規則、授信分級、定價模型等實驗變量，還可以一鍵產生不同的策略，大大縮短了部署時間。此外，風控實驗室支援智慧流量切分和動態樣本隔離，實現即時、毫秒級的流量分發，以及在用戶設備和請求層面進行多層級的實驗隔離。此外，實驗室透過基於使用者畫像和風險分層的動態分桶，保證了實驗組與對照組樣本的獨立性，有效地避免了數據污染。

In 2025, we'll continue to improve our risk management capabilities comprehensively, covering risk identification, risk decision-making, and risk tool development. This will drive continued decline in risk, improvement in profit, and stable growth in scale.

2025年，我們將持續全面提升風險管理能力，涵蓋風險識別、風險決策、風險工具開發。從而推動風險持續下降、獲利持續提升、規模持續穩定成長。

Next, I will hand over to our CFO, James, to provide a review of the company's financial performance for the fourth quarter.

接下來，我將交給我們的財務長詹姆斯，對公司第四季的財務表現進行回顧。

Thanks, Aaron. I will now provide a detailed overview of our fourth-quarter financial results. Please note that all comparisons are made on a quarter-over-quarter basis unless otherwise stated.

謝謝，亞倫。我現在將詳細概述我們第四季的財務業績。請注意，除非另有說明，所有比較均按季度進行。

In the fourth quarter, we advanced our business transformation efforts, maintaining a prudent operating strategy while strengthening our risk management framework and driving business optimization. We are pleased to report the key performance metrics continued their upward trend from the third quarter, aligning with our expectations and delivering steady growth. These results underscore the effectiveness of our strategic direction and highlight the progress we've made in executing our initiatives.

第四季度，我們推動業務轉型，保持審慎的經營策略，加強風險管理框架，推動業務優化。我們很高興地報告，關鍵績效指標從第三季開始繼續呈上升趨勢，符合我們的預期並實現穩定成長。這些結果強調了我們策略方向的有效性，並凸顯了我們在執行計劃方面的進展。

During the quarter, driven by a decline in credit costs, including the provisions and the fair value changes of financial guarantee derivatives, our net income increased by 17% to RMB363 million even though the total GMV remained relatively stable. Net income increased by 54% compared to net income adjusted for the investment losses in the same period of last year.

本季度，受信貸成本下降（包括撥備及金融擔保衍生品的公允價值變動）推動，儘管總GMV保持相對穩定，但我們的淨收入增長17%至人民幣3.63億元。淨利較去年同期調整投資損失後的淨利成長54%。

The net income take rate calculated as the net income divided by the average loan balance increased from 1.09% in the third quarter to 1.31% in the fourth quarter, advancing by 22 basis points. We're on track of our profit margin expansion roadmap.

以淨收入除以平均貸款餘額計算出的淨收入接受率從第三季的1.09％上升至第四季的1.31％，上升了22個基點。我們正按照利潤率擴大路線圖進行。

Before delving into the financial li items, I would like to share some highlights that have contributed to this sustainable and inline growth result. First, increased overall take rate due to the continued asset quality improvement. In the fourth quarter, we achieved revenue take rate of 6.22%, a 36 basis improvement from 5.86% in the third quarter even though the overall [APR] charge to users actually decreased by more than 100 basis points, as we focused more on high-quality customers.

在深入探討財務責任項目之前，我想分享一些有助於實現這項永續、持續成長成果的亮點。一是資產品質持續改善，整體承接率上升。第四季度，我們實現了 6.22% 的收入接受率，比第三季度的 5.86% 提高了 36 個基點，儘管對用戶收取的整體 [APR] 實際上下降了 100 多個基點，因為我們更加關注高品質客戶。

The weighted average APR for loans now stands at 23.88%. This take rate was calculated as the sum of revenue from credit facilitation and take empowerment services, net of funding and the credit cost divided by the average loan balance.

目前貸款的加權平均年利率為 23.88%。這一利率的計算方法是，信貸便利化收入和授權服務收入減去融資費用後的總和，再除以平均貸款餘額。

The primary driver of this increase in take rate was continued improvement in asset quality. Our credit costs, which include all provisions and the changes in fair value or financial guarantee derivatives and loans at a fair value, decreased by 5% or RMB73 million, to RMB1.5 billion in the fourth quarter, reflecting enhanced risk performance.

推動接受率上升的主要因素是資產品質的持續改善。我們的信貸成本（其中包括所有撥備以及公允價值變動或金融擔保衍生品和以公允價值計量的貸款）在第四季度下降了 5% 或人民幣 7,300 萬元，至人民幣 15 億元，反映出風險績效的增強。

This improvement stems from our risk management initiative initiatives previously highlighted by Jay and Arvin. All our key risk indicators showed continued improvement in the fourth quarter. Specifically on the loan balance side, day 1 delinquency rate declined by 4%, and the 90-day delinquency ratio declined by 3%.

這項改進源自於 Jay 和 Arvin 先前強調的風險管理措施。我們所有關鍵風險指標在第四季均持續改善。具體到貸款餘額方面，1天拖欠率下降4%，90天拖欠率下降3%。

The risk of performance of new loans aligned with our expectations, with the first payment default rate over 7 days decreasing by about 8%, and FPD over 30 days decreasing by almost 9%. Additionally, we shortened the loan duration from 13.24 months to 13.13 months.

新增貸款履約風險符合我們的預期，7天以上首付違約率下降約8%，30天以上首付違約率下降近9%。此外，我們將貸款期限從13.24個月縮短至13.13個月。

Second, further decrease in funding costs. As another driver of our take rate improvement, our funding costs for new loans facilitated decreased by 26 basis points. Encouraged by our improved risk performance, our funding partners have been highly supportive, offering favorable terms in both funding cost and supply. We also expanded and diversified our funding sources with a number of financial partners growing to 63 in the fourth quarter. Looking ahead, we expect that the continued improvements in asset quality, deeper collaborations of our funding partners, and more diversified funding mix will lead to further optimization in funding costs, although may not be as significant as before.

二是融資成本進一步下降。作為我們提高貸款利率的另一個驅動因素，我們新貸款的融資成本下降了 26 個基點。在我們風險績效改善的鼓舞下，我們的資金合作夥伴給予了大力支持，在融資成本和供應方面都提供了優惠條件。我們還擴大並多樣化了我們的資金來源，第四季度金融合作夥伴數量增加到 63 個。展望未來，我們預期資產品質的持續改善、融資夥伴的更深層合作以及更加多元化的融資結構將導致融資成本進一步優化，儘管優化幅度可能不如以前那麼顯著。

Third, more balanced and a healthy revenue mix. Our revenue structure was optimized through several initiatives, including lower APR, increased capital-light loan volume, and the diversification of business lines. In the fourth quarter, as we continue to execute our strategy to optimize risk exposure, we focused on acquiring high-quality customers, which led to decrease in the APR for the newly originated loans and a corresponding decline in the credit facilitation service income.

三是所得結構更均衡健康。我們透過降低 APR、增加輕資本貸款量和業務線多元化等多項措施優化了收入結構。第四季度，我們繼續執行優化風險敞口的策略，專注於獲取優質客戶，這導致新發放貸款的 APR 下降，信貸促成服務收入也相應下降。

However, this decline was offset by a 57% increase in tech empowerment service income, which represents income from our capital-light model and other services. The tech empowerment income accounted for 16% of our total income, up from 11% in the previous quarter.

然而，這一下降被技術賦能服務收入57%的成長所抵消，這部分收入來自我們的輕資本模式和其他服務。科技賦能收入占我們總營收的16%，高於上一季的11%。

The growth in tech empowerment income was primarily driven by increased the volume from our Intelligent Credit Platform, ICP platform. As an important component of our capitalized model, ICP was designed to match borrowers with a risk rating beyond our preferred range with the financial institutions and other platforms through a traffic redistribution platform. In the fourth quarter, the loan originations under the ICP model increased to 14% of the total new loan volume.

科技賦能收入的成長主要得益於我們智慧信用平台、ICP平台的業務量的增加。ICP是本金化模型的重要組成部分，旨在透過流量分配平台，將風險評級超出本金化偏好範圍的借款人與金融機構及其他平台進行配對。第四季度，ICP模式下的貸款發放量佔新增貸款總額的14%。

Furthermore, to enhance customer experience and provide more comprehensive services, we facilitated insurance products as well as certain royalty programs as a retention effort. Revenue from these initiatives also contributed to the growth in the tech empowerment service income. Last but not least, our installment e-commerce platform income, a complementary component of our core credit facilitation service, grew by 12% quarter over quarter and account for 9% of total income.

此外，為了增強客戶體驗並提供更全面的服務，我們還推出了保險產品以及某些特許權使用費計劃作為保留措施。這些措施帶來的收入也促進了技術賦能服務收入的成長。最後但同樣重要的一點是，作為我們核心信貸便利服務的一個補充組成部分，我們的分期付款電商平台收入環比增長 12%，佔總收入的 9%。

Fourth, improvement in custom acquisition efficiency. In addition to aforementioned take rate increase, funding cost decrease, and the revenue mix enhancement, we are committed to optimizing our sales marketing expenses by improving customer acquisition efficiency. By leveraging advanced risk identification and management systems, combined with our deep expertise in traffic distribution, we have strengthened our ability to target users more accurately, identify potential customers, and deliver better user acquisitions with higher approval rates.

第四，提升客戶獲取效率。除了前面提到的提高佣金率、降低融資成本、改善收入結構之外，我們還致力於透過提高客戶獲取效率來優化我們的銷售行銷費用。透過利用先進的風險識別和管理系統，結合我們在流量分配方面的深厚專業知識，我們增強了更準確地定位用戶、識別潛在客戶以及以更高的批准率實現更好的用戶獲取的能力。

As a result, new active users excluding the ICP business grew by 23% quarter over quarter, while the cost per active user decreased by 21%. We will continue to invest capital to acquire more users for the long-term sustainable growth.

結果，不包括ICP業務的新增活躍用戶數較上季成長了23%，而每活躍用戶成本則下降了21%。我們將持續投入資本來獲取更多用戶，實現長期永續成長。

Now, I will go through our key financial line items. On the revenue side, credit facilitation service income decreased by 9% quarter over quarter, mainly driven by the decrease in the new loan prices. The APRs for the new loans originated in Q4 decreased by more than 100 basis points.

現在，我將介紹我們的主要財務項目。收入方面，信貸促成服務收入較上季下降9%，主要因為新貸款價格下降。第四季新發放貸款的 APR 下降了 100 多個基點。

The tech empowerment service income increased by 57%, driven by increased volume from our capital-light ICP and income generated from value-added services like insurance products and user royalty programs. E-commerce business revenues increased by 12% due to the increase in the GMV momentum.

科技賦能服務收入成長了57%，這得益於我們輕資本ICP的業務量增加，以及保險產品和用戶特許權使用費計劃等增值服務產生的收入。電子商務業務收入因GMV勢頭增強而增長了12％。

On the cost and expenses side, credit costs including the provisions and the fair value changes of financial guarantee derivatives and loans at a fair value decreased by 5% quarter over quarter due to consistent improvement in our asset quality. Total operating expenses, which include processing the servicing costs, sales and marketing, R&D and G&A expenses, remained relatively stable at RMB1.3 billion.

成本費用方面，由於資產品質持續改善，信貸成本（包括撥備及以公允價值計量的金融擔保衍生性商品及貸款的公允價值變動）較上季下降5%。總營業費用（包括處理服務成本、銷售與行銷、研發以及一般行政費用）保持相對穩定，為人民幣 13 億元。

Driven by the aforementioned factors, our net profit in the fourth quarter increased by 17% to RMB363 million. Our net profit margin as a percentage of total revenue increased from 8.5% to 9.9%.

受上述因素推動，第四季淨利年增17%至3.63億元。我們的淨利率佔總收入的百分比從8.5％上升至9.9％。

For balance sheet items, as of year-end 2024, our cash position, which includes cash, cash equivalent, and the restricted cash, was approximately RMB4.1 billion. Shareholders' equity remained solid at about RMB10.7 billion. Our provision coverage ratio remains sufficient at approximately 255% at the end of fourth quarter.

對於資產負債表項目，截至 2024 年底，我們的現金狀況（包括現金、現金等價物和受限現金）約為人民幣 41 億元。股東權益維持穩健，約107億元人民幣。截至第四季末，我們的撥備覆蓋率仍然充足，約255%。

As Jay mentioned, we are committed to providing sustainable values to our shareholders. We are pleased to announce the Board of Directors has approved a cash dividend of USD0.11 per ADS for the second half of 2024, equivalent to approximately 20% of total net profit for the second half of 2024.

正如傑伊所說，我們致力於為股東提供可持續的價值。我們很高興地宣布，董事會已批准2024年下半年每股美國存託憑證現金股利0.11美元，相當於2024年下半年淨利總額的約20%。

As a reminder, as we announced the last quarter, effective from January 1 this year, our cash dividend payout will be raised to 25% of net income. The payout will be announced in August when we announced Q2 results. In the future, we are open to increase the cash payout ratio as appropriate to align with the growth of profitability.

提醒一下，正如我們上個季度宣布的那樣，從今年 1 月 1 日起，我們的現金股息支付將提高到淨收入的 25％。我們將在 8 月公佈第二季業績時宣布支付金額。未來，我們願意適當提高現金派息率，以配合獲利能力的成長。

Looking ahead, while our performance continues to show positive momentum, we remain prudent in light of ongoing macroeconomic uncertainties. Therefore, we expect Q1 GMV to be flat with Q4 also due to the Chinese New Year seasonality. For 2025 all year, we expect flat to single-digit year-on-year GMV growth depending on the macro, alongside a significant rise in net profit driven by profit margin expansion, underpinned primarily by continuous asset quality improvement and our overall business transformation.

展望未來，雖然我們的業績持續呈現正面勢頭，但鑑於宏觀經濟的不確定性持續存在，我們仍保持謹慎。因此，受農曆新年季節性影響，我們預計第一季的 GMV 將與第四季持平。對於 2025 年全年而言，我們預計 GMV 成長率將同比持平至個位數（取決於宏觀因素），同時淨利潤將受利潤率擴大的推動大幅成長，這主要得益於資產品質的持續改善和我們的整體業務轉型。

This concludes our prepared remarks for today. Operator, we're now open to take questions.

今天的準備發言到此結束。接線員，我們現在可以回答問題。

Thank you. (Operator Instructions)

謝謝。（操作員指令）

[Zhuhan Wang], Goldman Sachs.

[王竹涵]，高盛。

(spoken in Chinese)

(以中文說明)

I will translate my question. The first question is what's our business plan for 2025? And the second is, what is our AI-related business layout and the specific applications of AI technologies such as DeepSeek, and what are our future plans about AI? Thank you.

我將翻譯我的問題。第一個問題是我們的2025年商業計畫是什麼？第二，我們在AI相關的業務佈局是怎樣的，以及DeepSeek等AI技術的具體應用是什麼，未來我們在AI方面有什麼規劃？謝謝。

(spoken in Chinese)

(以中文說明)

Let me translate for Jay. Thank you, Zhuhan. In 2025, our strategy remains prioritizing asset quality, focusing on profitability enhancement. With a priority on asset quality, we aim to profitability enhancement and the scale stability.

讓我為傑伊翻譯一下。謝謝你，Zhuhan。2025年，我們的策略仍是堅持資產品質優先，注重獲利能力提升。我們始終堅持以資產品質為中心，增強獲利能力，穩定規模。

In terms of risk, we will continue to upgrade our risk management system. The [due] notes we facilitated this quarter, credit performance is in line with our expectation. And we will drive the continuous decline of key risk indicators in the future. In terms of profitability, we are committed to driving significant growth in net income by leveraging continuous enhancement in risk performance, optimize the funding structures and cost and improved operational efficiency.

在風險方面，我們將持續升級風險管理系統。我們本季促成的[到期]票據的信用表現符合我們的預期。並會推動未來關鍵風險指標的持續下降。在獲利能力方面，我們致力於透過持續提升風險績效、優化資金結構與成本、提高營運效率，帶動淨收入大幅成長。

In terms of scale, our goal is to achieve stable growth by improved efficiency of customer acquisition through our high-quality client engagement and enhanced synergies with our partners and platforms, offline inclusive finance and e-commerce business. We also will increase our investment in customer acquisition this year to further enhance the -- improve the efficiency of customer acquisition.

規模方面，我們的目標是透過優質的客戶參與，提升獲客效率，加強與合作夥伴和平台的協同，以及線下普惠金融和電商業務，實現穩定成長。我們今年也將加大對客戶獲取的投入，以進一步提高客戶獲取的效率。

Despite the overall positive momentum, our performance may experience volatility due to macroeconomic headwinds and seasonality fluctuations. We will adjust our growth strategies in real time based on the evolving environment.

儘管整體勢頭良好，但我們的業績可能因宏觀經濟逆風和季節性波動而出現波動。我們將根據不斷變化的環境即時調整我們的成長策略。

(spoken in Chinese)

(以中文說明)

Let me translate. As reported, Lexin is one of the first financial platforms in China to implement a DeepSeek model. Following the deployment of DeepSeek-V2 in May 2023, Lexin have recently upgraded to DeepSeek-R1. By leveraging over a decade of industry expertise and the data accumulation, we have conducted the pre-training and the localized the deployment on DeepSeek and developed Singularity AI, our own financial large model.

讓我翻譯一下。據悉，樂信是國內首批落地DeepSeek模型的金融平台之一。繼 2023 年 5 月部署 DeepSeek-V2 之後，樂信最近又升級到了 DeepSeek-R1。我們利用十多年的行業經驗和數據積累，在DeepSeek上進行了預訓練和本地化部署，開發了自己的金融大模型Singularity AI。

We have deeply applied AI technology to improve research and development efficiency, boost true innovation and business enablement. Our large model has been fully deployed in core operation workflows, including telemarketing, customer service, and collections. Through continuous optimization of dialogue flow trees and the user conversion, we have demonstrated substantial improvement in both operation efficiency and customer experience.

我們深度應用AI技術，提升研發效率，促進真正的創新與商業賦能。我們的大模型已經全面部署到電話行銷、客戶服務、收款等核心營運流程。透過不斷優化對話流樹和用戶轉化，我們在營運效率和客戶體驗方面都取得了顯著的提升。

Also, we applied this advanced tech knowledge into our collection process. As Arvin just mentioned, we used this to improve the collection efficiency for delinquency customers. In the future, we will strategically intensify technology investment with a primary focus on advancing deployment of DeepSeek-R1. We will implement comprehensive process optimization across all business segments, explore its application in key areas of risk management, and leverage the tech knowledge to further enhance our risk management capabilities.

此外，我們也將這些先進的技術知識應用到我們的收集過程中。正如阿爾文剛才提到的，我們利用它來提高拖欠債務客戶的催收效率。未來我們將策略性地加大技術投入，重點在於推進DeepSeek-R1的部署。我們將在各業務板塊實施全面流程優化，探討在風險管理重點領域應用，並利用科技手段進一步提升風險管理能力。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(spoken in Chinese)

(以中文說明)

I'll translate for my question. So first question is about the company's ongoing investment in your risk management capabilities. Can you share with us some more color in terms of the latest progress on the achievement you have made in -- especially what's the current gap or differences versus your peers?

我將翻譯我的問題。所以第一個問題是關於公司對風險管理能力的持續投資。您能否與我們分享更多您所取得的最新進展以及與同行相比目前存在的差距或差異？

Second question is about the outlook for your risk management metrics. So what are the main targets that you aim to achieve in this year, and which are some of the most important indicators that you would suggest investors to check?

第二個問題是關於您的風險管理指標的前景。那麼，您今年的主要目標是什麼？您建議投資人檢查哪些最重要的指標？

(spoken in Chinese)

(以中文說明)

Let me translate. Overall, we achieved significant improvement of risk management capability for this quarter. Overall, our risk management capability has reached industry level and in specific technical aspects, we are already at the industry-leading position.

讓我翻譯一下。整體來看，本季我們的風險管理能力取得了顯著的提升。整體來看，我們的風險管理能力已經達到產業水平，在具體的技術層面，已經處於產業領先地位。

We have comprehensively restructured and upgraded key risk management process, including risk identification, decision-making, risk pricing, and the [post loan] management. These enhancements have significantly improved the accuracy and the stability of our risk management system. Meanwhile, we have upgraded our decision making methodologies such as test and (technical difficulty) and low and growth frameworks for credit line and pricing decisions.

全面重構與升級風險識別、決策、風險定價、貸後管理等關鍵風險管理流程。這些改進大大提高了我們風險管理系統的準確性和穩定性。同時，我們升級了決策方法，例如測試和（技術難度）以及信用額度和定價決策的低和成長框架。

And we also improved our risk tools such as dedicated risk control laboratories and the risk robots to validate and support our key risk decisions. As a result, our key risk indicators, including 90 days delinquency ratio and FPD 30 days ratio have improved for two consecutive quarters, which underscore the tangible benefits yielded by our risk management transformation efforts.

我們還改進了風險工具，例如專門的風險控制實驗室和風險機器人，以驗證和支援我們的關鍵風險決策。受此影響，我們的主要風險指標，包括90天拖欠率、FPD30天率連續兩季有所改善，彰顯了我們風險管理轉型工作取得的實質效益。

Despite these achievements, our overall performance still has some gaps compared to our peers, many dragged by legacy loans. However, as the proportion of high-quality new loans increases and the decrease of legacy loan, we expect the overall portfolio quality to further improve.

儘管取得了這些成績，但我們的整體業績與同行相比仍然存在一些差距，其中許多是受到遺留貸款的拖累。然而，隨著優質新增貸款佔比增加以及遺留貸款的減少，我們預期整體貸款組合品質將進一步改善。

(spoken in Chinese)

(以中文說明)

Let me translate. Our goal is still to prioritizing asset quality, focusing on scale stability and profit enhancement. Building upon the established risk of framework, we will further optimized as follows. In terms of risk detection, we will optimize asset structure by increasing the inflow of high-quality customers. Also, we will refine our collection strategies through differentiation and intelligence collection tools, ensure a continuous decline in risk for both new loan and loan balance.

讓我翻譯一下。我們的目標依然是堅持資產品質優先、規模穩定、利潤提升。在已建立的風險架構基礎上，我們將進行以下進一步優化。風險偵測方面，加大優質客戶引進，優化資產結構。同時，透過差異化、智慧化催收手段完善催收策略，確保新增貸款風險及貸款餘額風險持續下降。

In terms of scale, by enhancing specialized customer acquisition capabilities across all channels and improving offer competitiveness, we will drive the inflow of high-quality new customers, activate potential customers, and expand the credit admission through our e-commerce platform, thereby, promoting high-quality asset growth and strengthening the company's ability to navigate credit cycle.

規模方面，透過提升全通路專業化獲客能力，提升報價競爭力，帶動優質新客戶流入，啟動潛在客戶，並藉助電商平台擴大授信額度，促進優質資產成長，增強公司信貸週期調控能力。

In terms of profitability enhancement, we will upgrade the pricing strategies for customer segments with different risks, and we will further improve third-party data to further enhance our accuracy. We will improve the ROI of data cost and utilize collection tools such as intelligent case allocation and collection assistance to improve our collection costs.

在獲利能力提升方面，我們會升級不同風險細分客戶的定價策略，也會進一步完善第三方數據，進一步提升我們的精準度。提高數據成本投資報酬率，利用智慧分案、催收輔助等催收工具改善催收成本。

Meanwhile, we will leverage AI and the large models to further enhance our efficiency and accuracy. On AI models level, we will strengthen our risk identification capabilities for different customer segments and scenarios. For example, by using customer retention model to predict customer [lapse], we can implement targeted retention strategies. By using competitiveness model to identify users key demand, we can improve -- offer competitiveness and effectively enhance high-quality customer acquisition and potential customer activation.

同時，我們將利用人工智慧和大型模型進一步提高我們的效率和準確性。在AI模型層面，我們將加強針對不同客戶群和情境的風險識別能力。例如，透過使用客戶保留模型來預測客戶[流失]，我們可以實施有針對性的保留策略。透過競爭力模型辨識用戶關鍵需求，提升報價競爭力，有效提升優質客戶獲取和潛在客戶活化。

At the AI tool level, we will continue to develop our intelligent risk management capacity -- capabilities. For example, we will continue to leverage tools such as strategic robots and decision-making laboratories to enhance the accuracy and efficiency of strategic decision-making.

在人工智慧工具層面，我們將繼續發展我們的智慧風險管理能力。例如，我們將持續利用戰略機器人、決策實驗室等工具，提升策略決策的準確性與效率。

Regarding performance tracking, in addition to 90-days delinquency ratio and FPD over 30 days ratio, which we regularly disclose, we will also communicate the quarterly trend of FPD 7 days of new assets and the day 1 delinquency ratio of total portfolio, which could facilitate a more comprehensive understanding of our asset quality.

在績效追蹤方面，除了定期揭露的90天逾期率和30天FPD率外，我們還會揭露新增資產的7天FPD率和總投資組合1天逾期率的季度趨勢，以便更全面地了解我們的資產品質。

Thank you. Operator, we are ready for the next question.

謝謝。接線員，我們已準備好回答下一個問題。

Yada Li, CICC.

李亞達，中金公司。

(spoken in Chinese)

(以中文說明)

Okay. Then I'll do the translation. So first of all, could you elaborate more about the trend of unit economics and the main drivers? Second, I was wondering how to view the OpEx in 2025, especially in sales and marketing expenses. Will the company become more active in customer acquisition in the following quarters? And the last, do you expect to deliver more value to the shareholders and any further plans? That's all. Thank you.

好的。那我來翻譯吧。那麼首先，您能否詳細說明單位經濟的趨勢及其主要驅動因素？其次，我想知道如何看待2025年的營運支出，尤其是銷售和行銷費用。該公司在接下來的幾季中是否會更積極地吸引客戶？最後，您是否期望為股東帶來更多價值？還有什麼進一步的計畫嗎？就這樣。謝謝。

Okay. I will take the first two questions and then ask Jay to answer the third question. First, in terms of the unit economics, as we have been communicating with the market, if you look at the net profit margin of the company, it is calculated as a net income divided by the average loan balance. It will increase significantly to reach the industry average level in the next two years.

好的。我將回答前兩個問題，然後請傑伊回答第三個問題。首先，就單位經濟而言，正如我們一直在與市場溝通的那樣，如果你看公司的淨利潤率，它是用淨收入除以平均貸款餘額來計算的。未來兩年將大幅成長，達到產業平均。

Obviously, the primary driver for the asset is the asset quality improvement, particularly for the new loans issued since the second half of last year. As an example, in Q4, if you look at the provisions, it was reduced by 5% compared to the previous quarter.

顯然，該資產的主要驅動力是資產品質的改善，特別是去年下半年以來新增貸款的改善。舉例來說，如果你看一下第四季的撥備，你會發現它與上一季相比減少了 5%。

So as you know, the total loan portfolio is a mix of the old legacy loans and the better quality new loans. As we have more better quality new loans, and the old loans will mature and lapse, therefore, the overall asset quality will continue to improve, which will lead to sustained profitability improvement or net profit margin expansion.

如您所知，總貸款組合是舊的遺留貸款和品質較好的新貸款的混合。由於我們有更多品質更好的新增貸款，而舊貸款將到期失效，因此整體資產品質將不斷改善，從而帶來盈利能力的持續改善或淨利潤率的擴大。

Other factor obviously contributing to the improved profitability is the reduction in the funding cost. As our asset quality continues to improve, our assets receives a more acceptance from the financial institution partners and the funding costs will decline accordingly.

另一個明顯有助於提高獲利能力的因素是融資成本的降低。隨著我們資產品質的不斷提升，我們的資產越來越受到金融機構合作夥伴的認可，融資成本也會隨之下降。

So as a demonstration of our profitability improvement, we can take a look in the net profit margin in the last four quarters in 2024. It started from 0.66% in Q1, 0.77% in Q2, 1.09% in Q3, and 1.31% in Q4. So we expect the net profit margin to continue to sequentially improve in the next two years to eventually reach the industry average level.

因此，作為我們獲利能力改善的證明，我們可以看看 2024 年最後四個季度的淨利潤率。第一季為0.66%，第二季為0.77%，第三季為1.09%，第四季為1.31%。因此我們預計未來兩年淨利潤率將繼續連續改善，最終達到產業平均。

One reminder, of course, is that we may experience certain fluctuations in the degree of the profit margin improvement from quarter to quarter due to the impacts of seasonality, accounting rules, or any other timing factors. But we are very confident the overall net margin expansion trajectory will not change.

當然，需要提醒的是，由於季節性、會計規則或任何其他時間因素的影響，我們每季的利潤率改善程度可能會出現一定的波動。但我們非常有信心整體淨利率擴張軌跡不會改變。

As for the second part of the question, the OpEx, basically, to continue to support the user acquisition and the business growth, i.e., the expanding new marketing channels, upgrading risk control systems, hiring top talents, and increasing AI technology investment, we do expect the absolute amount of the company's operating expenses to increase in 2025, although it will be at a slower pace than the overall company profitability improvement. The operational efficiency improvement is another factor that contributes to the marginal expansion.

至於問題的第二部分，營運支出，基本上是為了繼續支持用戶獲取和業務成長，即擴大新的行銷管道、升級風險控制系統、聘請頂尖人才、增加人工智慧技術投資，我們確實預計公司 2025 年的營運費用絕對金額將會增加，儘管其成長速度將低於公司整體獲利能力的改善。營運效率的提升是推動邊際擴張的另一個因素。

So we will continue to work hard to balance the need of investing for the future and also the need to sustain the sequential profitability improvement. So that's the answers, if you will, for these first two questions, and the last one is for Jay.

因此，我們將繼續努力平衡未來投資的需要和維持連續獲利能力改善的需要。如果你願意的話，這就是前兩個問題的答案，最後一個問題是問傑伊的。

(spoken in Chinese)

(以中文說明)

Let me translate. As we announced previously, our cash dividend payout will be raised to 25% of net income, effective from January 1 this year. The dividend will be announced in August when we disclose our second-quarter results.

讓我翻譯一下。正如我們之前宣布的那樣，從今年 1 月 1 日起，我們的現金股利支付率將提高到淨收入的 25%。我們將在八月公佈第二季業績時宣布股利。

We are committed to returning values to our shareholders. This year is our business and financial result turnover year. We expect our net income will increase significantly in 2025, and we are open to increase the cash dividend payout ratio as appropriate to align with shareholders' expectations. Thanks.

我們致力於為股東帶來價值回報。今年是我們業務和財務表現的周轉年。我們預計2025年淨收入將大幅增加，並且我們願意適當提高現金股利支付率，以符合股東的預期。謝謝。

Operator?

操作員？

Thank you for the questions. We have no more questions on the line. I would like to hand the call back to management for closing.

感謝您的提問。我們沒有其他問題了。我想將這個電話交還給管理層以便結束通話。

Thank you. This conference is now concluded. Thank you for joining today's call. If you have any more questions, please do not hesitate to contact us. Thanks again.

謝謝。本次會議現已結束。感謝您參加今天的電話會議。如果您還有其他疑問，請隨時與我們聯繫。再次感謝。

That does conclude today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。