360數科 (QFIN) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to Qifu Technology fourth-quarter and full-year 2023 earnings conference call. (Operator Instructions)

女士們先生們，謝謝你們的支持。歡迎參加啟富科技 2023 年第四季及全年財報電話會議。（操作員說明）

Please also note that today's event is being recorded. At this time, I'd like to turn the conference call over to Ms. Karen Ji, Senior Director of Capital Markets. Please go ahead, Karen.

另請注意，今天的活動正在錄製中。現在我想把電話會議轉給資本市場高級總監季凱倫女士。請繼續，凱倫。

Thank you, Emberling. Hello, everyone, and welcome to Qifu Technology fourth-quarter 2023 earnings conference call. Our earnings release was distributed earlier today and is available on our IR website. Joining me today are Mr. Wu Haisheng, our CEO; Mr. Alex Xu, our CFO; and Mr. Zheng Yan, our CRO.

謝謝你，安伯林。大家好，歡迎參加奇富科技2023年第四季財報電話會議。我們的財報已於今天稍早發布，並可在我們的投資者關係網站上取得。今天加入我的是我們的執行長吳海生先生；徐先生，我們的財務長；以及我們的 CRO 鄭岩先生。

Before we start, I would like to refer you to our Safe Harbor statement in earnings press release, which also applies to this call. During the call, we will be making forward-looking statements, which are predictions, projections, or other statements about future events.

在我們開始之前，我想請您參閱我們在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，我們將做出前瞻性陳述，即對未來事件的預測、預測或其他陳述。

These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. For more information, please refer to the risk factors discussed in our most recent Form 20-F filed with SEC.

這些陳述是基於目前的預期和假設，存在可能導致實際結果存在重大差異的風險和不確定性。欲了解更多信息，請參閱我們最近向 SEC 提交的 20-F 表格中討論的風險因素。

Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Also, please note that unless otherwise stated, all figures mentioned in this call are in RMB terms.

此外，本次電話會議也討論了某些非公認會計準則財務措施。請參閱我們的收益發布，其中包含非公認會計原則財務指標與公認會計原則財務指標的調節表。另請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣計價。

Today's prepared remarks from our CEO will be delivered in English using an AI-generated voice. Now I will turn the call over to Mr. Wu Haisheng. Please go ahead.

我們的執行長今天準備好的演講將使用人工智慧產生的英語語音進行。現在我將電話轉接給吳海生先生。請繼續。

Hello, everyone. Thank you for joining us today. During the quarter, our efforts in optimizing our top- and bottom-line performance started to bear fruit, capping off a solid 2023 for us. As we empowered more financial institutions, total loan facilitation and origination volume on our platform reached RMB119 billion, up 13.8% year over year.

大家好。感謝您今天加入我們。本季度，我們優化營收和利潤表現的努力開始取得成果，為我們的 2023 年畫上了圓滿的句號。隨著賦能金融機構的不斷深入，平台貸款便利化和發放量達到1,190億元，年增13.8%。

With the ongoing business optimization, our revenue increased 15.1% year over year to approximately RMB4.5 billion, hitting a nine-quarter high. Our non-GAAP net income increased 25.1% year over year to roughly RMB1.15 billion, representing the fastest growth seen over the past nine quarters.

隨著業務持續優化，營收年增15.1%至約人民幣45億元，創九個季度新高。我們的非美國通用會計準則淨利潤年增 25.1% 至約人民幣 11.5 億元，是過去九個季度以來最快的增長。

From an annual perspective, total loan facilitation and origination volume on our platform increased 15.4% year over year to a record RMB475.8 billion. Non-GAAP net income increased approximately 6% from last year to roughly RMB4.45 billion.

從年度來看，我們平台的貸款便利化和發放總額年增15.4%，達到創紀錄的人民幣4,758億元。非公認會計原則淨利較去年增長約6%，達到約人民幣44.5億元。

In 2023, we promptly adjusted our strategies to navigate market challenges, which allowed us to not only meet the growth target set at the beginning of the year, but also achieve a notable improvement in profitability during the second half of the year. This robust performance underscores our operational resilience and sets a solid foundation for our high-quality development in 2024.

2023年，我們及時調整策略應對市場挑戰，不僅完成了年初設定的成長目標，下半年獲利能力也大幅提升。這一強勁的業績凸顯了我們的經營韌性，為我們2024年的高品質發展奠定了堅實的基礎。

The consumer credit industry entered the post-pandemic era in 2023. As China navigated a bumpy journey towards economic recovery, consumers within the high-quality segment were becoming increasingly cautious about borrowing. Simultaneously, certain user segments started to face pressures on repayments amid elevated youth unemployment rates.

2023年，消費信貸產業進入後疫情時代。隨著中國經濟復甦之路崎嶇不平，優質消費者對於借貸變得越來越謹慎。同時，由於青年失業率上升，某些使用者群體開始面臨還款壓力。

The deceleration in the overall consumer credit market's momentum also led to a decline in the marginal efficiency of incremental growth. After thorough consideration by management, we have set quality growth and profitability as our primary objectives and shifted our operational strategy to prioritize efficiency over scale. By refining every aspect of our operations, we aim to enhance the long-term healthiness and sustainability of our business.

消費信貸市場整體動能減速也導致增量成長邊際效率下降。經過管理階層的深思熟慮，我們將品質成長和獲利能力作為首要目標，並將經營策略轉變為效率優先於規模。透過完善營運的各個方面，我們的目標是增強業務的長期健康性和可持續性。

In 2023, we achieved substantial progress in terms of quality growth and profitability. Speaking of quality growth, we extended our market reach to target customers by further diversifying user acquisition channels. Starting in July, we began working with a leading short-form video platform as their only fintech partner through our embedded finance model.

2023年，我們在品質成長和獲利能力方面取得了實質進展。說到品質成長，我們透過進一步豐富用戶獲取管道，擴大了對目標客戶的市場覆蓋範圍。從 7 月開始，我們開始透過我們的嵌入式金融模型與一家領先的短視頻平台合作，作為他們唯一的金融科技合作夥伴。

By leveraging our strong user profiling and risk identification capabilities, we quickly ramped up our user base and consistently maintained a leading market share on the platform. Additionally, we have actively pursued and engaged in similar collaborations with industry-leading platforms across other verticals, such as e-commerce, payment, and mobile phone app stores.

透過利用強大的用戶分析和風險識別能力，我們迅速擴大了用戶基礎，並持續保持了平台領先的市場份額。此外，我們也積極尋求並與其他垂直領域的業界領先平台進行類似的合作，例如電子商務、支付和手機應用程式商店。

In 2023, the percentage of new users with approved credit lines through the embedded finance channel rose to 31%, with 82% increase in loan facilitation and origination volume. Through the ongoing refinement of our profit model, the ROA of our embedded finance business in Q4 increased by roughly 20% from the same period last year.

2023年，透過嵌入式金融管道獲得授信額度的新用戶比例升至31%，貸款便利化發放量增加82%。透過不斷完善獲利模式，第四季嵌入式金融業務ROA較去年同期成長約20%。

The collaborative nature of this business model allows us to complement the platforms and capitalize on their rapid expansion to quickly achieve scalable profitability. We are optimistic about maintaining another strong growth performance in embedded finance this year.

這種業務模式的協作性質使我們能夠補充平台並利用其快速擴張來快速實現可擴展的獲利能力。我們對今年嵌入式金融持續保持強勁成長表現持樂觀態度。

In 2023, we saw a notable improvement in our overall acquisition efficiency. While the number of total new users with approved credit lines increased 7% compared to 2022, our sales and marketing expenses decreased 12%, leading to an impressive 18% year-over-year decline in acquisition cost per credit line user.

2023年，我們的整體收購效率顯著提高。與2022 年相比，獲得批准信用額度的新用戶總數增加了7%，但我們的銷售和行銷費用下降了12%，導致每個信用額度用戶的獲取成本同比下降了18%，令人印象深刻。

In 2023, we improved our profitability meaningfully while sustaining solid growth. Thanks to a stronger funding position, greater asset allocation efficiency, and our enhanced products and services.

2023年，我們在保持穩健成長的同時，獲利能力顯著提高。得益於更強大的資金實力、更高的資產配置效率以及我們增強的產品和服務。

On the funding front, we further optimized our funding structure and reduced our annual funding costs by more than 1 percentage point year over year in 2023. We issued RMB12.5 billion ABSs, representing a year-over-year increase of 56%. Benefiting from the robust demand from state-owned and joint stock banks, as well as major securities firms, our ABS issuance costs decreased 75 basis points. Additionally, we have secured the first-ever AAA international rating for exchange-traded ABSs. This will help us attract more funding from reputable overseas institutions, allowing us to further boost issuance volume and optimize issuance costs.

資金方面，我們進一步優化資金結構，2023年全年資金成本較去年同期下降1個百分點以上。發行資產支持證券125億元，年增56%。受惠於國營銀行、股份制銀行以及各大券商的強勁需求，我們的ABS發行成本下降了75個基點。此外，我們也首次獲得了交易所交易 ABS 的 AAA 國際評級。這將有助於我們吸引更多海外知名機構的資金，使我們能夠進一步提高發行量並優化發行成本。

In terms of asset allocation, with the accuracy of user profiling and identification continuously improving, we onboarded a more diversified spectrum of financial institution partners, strengthening our ability to serve various loan asset segments. By aligning assets based on the risk appetites of different institutions, we optimized our asset allocation and increased overall returns on our loan portfolio.

資產配置方面，隨著使用者畫像辨識準確率不斷提高，金融機構合作夥伴更加多元化，服務各類貸款資產的能力不斷增強。根據不同機構的風險偏好調整資產，優化資產配置，提高貸款組合的整體報酬。

In 2023, our loan facilitation and origination volume under the ICE model steadily increased. The enhanced precision in asset allocation increased the underwriting efficiency from financial institution partners, resulting in a notable improvement in our take rate. In Q4, our revenue take rate as a percentage of loan volume for ICE improved by 54% from the same period last year.

2023年，我們在ICE模式下的貸款便利化和發放量穩定成長。資產配置精準度的提升，提高了金融機構夥伴的承銷效率，承銷率顯著提升。第四季度，我們的營收佔 ICE 貸款量的百分比比去年同期提高了 54%。

On the product front, we launched a loyalty program catering to various user needs and improving the engagement of our existing users. By offering a wide range of value-added services, we improved our user retention. Going forward, we will continue to enrich our product offerings and implement differentiated strategies to create value for users, ultimately boosting our users' LTV.

在產品方面，我們推出了忠誠度計劃，以滿足各種用戶需求並提高現有用戶的參與度。透過提供廣泛的增值服務，我們提高了用戶保留率。未來，我們將持續豐富產品線，實施差異化策略，為用戶創造價值，最終提升用戶生命週期價值。

Risk management is the cornerstone of our business. In the second half of the year, we encountered notable volatility in our asset quality due to the broader macro headwinds. The stricter line controls by China's telecom carriers in Q4 added further pressure to our overall risk profile.

風險管理是我們業務的基石。下半年，受宏觀經濟下行壓力影響，我們的資產品質明顯波動。第四季中國電信業者更嚴格的線路控制給我們的整體風險狀況帶來了進一步的壓力。

In response to these challenges, starting in Q3, we have gradually tightened our credit standards and iterated risk strategies across the loan facilitation, credit operation, and post-credit process to improve our risk metrics.

針對這些挑戰，從三季開始，我們逐步收緊授信標準，並在貸款便利化、授信作業、授信後流程等方面迭代風險策略，提升風險指標。

First, we further enhanced our credit approval system, which allowed us to extend a greater proportion of credit lines to high-quality users. Second, we revamped our strategic framework for existing borrowers and introduced external data sources such as ByteDance, Tencent, and Umeng for joint modeling and scoring, thereby enhancing our ability to identify and intercept high-risk customer segments.

一是進一步完善授信審批體系，提升優質用戶授信比例。其次，我們對存量借款人的策略框架進行了改造，引入字節跳動、騰訊、友盟等外部資料來源進行聯合建模和評分，增強識別和攔截高風險客戶群的能力。

Third, we fine-tuned our collection strategies and incentive schemes to increase our collection efficiency. With these measures in place, we began to see a steady improvement in risk metrics for new loans in November and onwards, and a gradual recovery in risk performance for overall loan portfolio starting in January and February of this year. As our historical loan assets gradually mature and new loans make up a higher percentage of our portfolio, we expect our overall risk performance to further improve this year.

三是優化徵收策略和激勵方案，提高徵收效率。透過這些措施，我們開始看到 11 月及以後新增貸款的風險指標穩定改善，並且從今年 1 月和 2 月開始，整體貸款組合的風險表現逐漸恢復。隨著我們的歷史貸款資產逐漸成熟，新增貸款占我們投資組合的比例越來越高，我們預計今年整體風險表現將進一步改善。

Our technology solutions business continued to make solid progress in 2023. We further optimized our product offerings and entered into partnerships with a number of financial institutions covering different categories, including joint stock, Internet, private, and municipal banks. We tailored our deployment models to cater to their specific needs and remain committed to providing them with end-to-end technology solutions. We expect more clients will be ready to deploy our solutions on a broader scale throughout this year.

2023年，我們的技術解決方案業務持續取得紮實進展。我們進一步優化產品結構，與股份制銀行、網路銀行、民營銀行、城行銀行等多家不同類別的金融機構建立合作關係。我們客製化了部署模型以滿足他們的特定需求，並繼續致力於為他們提供端到端技術解決方案。我們預計今年將會有更多客戶準備好更廣泛地部署我們的解決方案。

In 2023, we strategically allocated more resources to artificial intelligence and large language models, and took the initiative in exploring applications of large language models in the financial sector.

2023年，我們策略性地向人工智慧和大語言模型配置更多資源，並主動探索大語言模型在金融領域的應用。

Our financial large language model outperforms all the open-source financial large language models, with comparable parameters in knowledge proficiency according to open source benchmarks. Within our intelligent marketing, a total of 600 images and 100 videos are generated by AIGC per day. Based on performance testing over the past five months, our AIGC-generated image placements have shown the potential to reduce unit acquisition costs by roughly 9%.

我們的金融大語言模型優於所有開源金融大語言模型，根據開源基準，其知識熟練度參數具有可比較性。在我們的智慧行銷中，AIGC每天總共產生600張圖片和100個影片。根據過去五個月的效能測試，我們 AIGC 產生的影像佈局顯示出可以將單位採購成本降低約 9% 的潛力。

Taking a longer-term view, utilizing AIGC-generated images along with automated placements will enable us to make quick updates and optimize placement strategies, significantly boosting marketing efficiency. We have also used our large language model to empower the telemarketing team, facilitating communication with approximately 13 million users to date. By providing lead refinement, semantic analysis, and suggested talking points, the drawdown per credit line user increased by roughly 5%.

從長遠來看，利用 AIGC 產生的圖片以及自動投放將使我們能夠快速更新並優化投放策略，從而顯著提高行銷效率。我們還使用大型語言模型為電話行銷團隊提供支持，迄今為止促進了與約 1300 萬用戶的溝通。透過提供線索細化、語義分析和建議的談話要點，每個信用額度用戶的提款額增加了大約 5%。

We are proud of what we have achieved in 2023. Looking ahead to 2024, as the macro uncertainties persist, we will continue to take a prudent approach in our execution. Our focus will be on pursuing quality growth by optimizing risk performance and operational efficiency to improve overall profitability.

我們對 2023 年所取得的成就感到自豪。展望2024年，宏觀不確定性依然存在，我們將繼續審慎執行。我們的重點將是透過優化風險績效和營運效率來追求品質成長，以提高整體獲利能力。

Meanwhile, we will consistently make strategic investments in long-term growth opportunities. This will involve broadening our strategic partnerships across various sectors to further the success of our embedded finance collaboration model and pursuing collaborative user management with our financial partners.

同時，我們將持續對長期成長機會進行策略性投資。這將涉及擴大我們在各個領域的策略合作夥伴關係，以進一步取得我們嵌入式金融協作模式的成功，並與我們的金融合作夥伴尋求協作用戶管理。

Moreover, we will explore a more open platform model, leveraging our extensive industry know-how and user insights to enable more effective connections between users and financial institutions. Through our technology solutions business, we aim to facilitate the digital transformation of more financial institutions. In a word, we're widening the top of our funnel while keeping a watchful eye on its bottom.

此外，我們還將探索更開放的平台模式，利用豐富的產業知識和使用者洞察，讓使用者和金融機構之間建立更有效的連結。透過我們的技術解決方案業務，我們旨在促進更多金融機構的數位轉型。簡而言之，我們正在擴大漏斗的頂部，同時密切注意漏斗的底部。

In 2023, our return on equity on a non-GAAP basis reached approximately 22%, outperforming most financial and Internet companies. We returned substantial value to our shareholders by distributing USD170 million in cash dividends for 2023 and repurchasing USD132 million worth of shares since we launched the buyback program in June 2023. The aggregate amount accounted for 50% of our net income for the year, representing a significant boost in our shareholder returns. In 2024, we remain committed to further optimizing our capital allocation. After careful consideration from our Board, we will maintain our current dividend policy for 2024.

2023年，我們以非美國通用會計準則計算的股本回報率達到約22%，表現優於大多數金融和網路公司。自2023年6月啟動回購計畫以來，我們已派發2023年1.7億美元現金股息，回購了價值1.32億美元的股票，為股東帶來了豐厚的回報。合計占公司全年淨利的50%，股東回報顯著提升。2024年，我們仍致力於進一步優化資本配置。經過董事會認真考慮，我們將維持2024年目前的股利政策。

Additionally, starting in April 2024, we will implement a new share repurchase program. We are convinced that our company's shares are significantly undervalued, and the current market valuation does not reflect the company's intrinsic value. We are confident about our future prospects and, therefore, have decided to substantially step up our share repurchase efforts.

此外，從 2024 年 4 月開始，我們將實施新的股票回購計畫。我們確信我們公司的股票被嚴重低估，目前的市場估值並不能反映公司的內在價值。我們對未來前景充滿信心，因此決定大幅加大股票回購力道。

Later, our CFO will go through the plan in detail. With that, I will now turn the call over to Alex Xu.

稍後，我們的CFO將詳細介紹該計劃。現在，我將把電話轉給 Alex Xu。

Thank you, Haisheng. Good morning and good evening, everyone. Welcome to our fourth-quarter earnings call. While the fourth quarter was a fairly challenging period for our operation as macroeconomic recovery progressed slower than we hoped and the consumer sentiment remained muted, we still delivered another solid quarter of financial performance.

謝謝你，海昇。大家早安，晚上好。歡迎參加我們的第四季財報電話會議。雖然第四季對我們的營運來說是一個相當具有挑戰性的時期，因為宏觀經濟復甦的進展速度比我們希望的要慢，而且消費者信心仍然低迷，但我們仍然實現了另一個穩健的季度財務業績。

During the quarter, we took proactive actions to fine-tune our product and service offerings, strengthen relationship with users and key partners, optimize business mixes, and trim exposure to underperforming assets.

本季度，我們採取積極行動，調整我們的產品和服務，加強與用戶和主要合作夥伴的關係，優化業務組合，並削減表現不佳資產的風險。

Total net revenue for Q4 was RMB4.5 billion versus RMB4.3 billion in Q3 and RMB3.9 billion a year ago.

第四季總淨收入為人民幣 45 億元，而第三季為人民幣 43 億元，一年前為人民幣 39 億元。

Revenue from credit-driven services, capital heavy, was RMB3.2 billion in Q4 compared to RMB3.1 billion in Q3 and RMB2.8 billion a year ago. The year-on-year growth was mainly due to longer effective duration, growth in on-balance sheet loans, and contribution from other value-added services, partially offset by decline in off-balance sheet loans.

第四季度，資本密集型信貸驅動服務的收入為人民幣 32 億元，第三季為 31 億元，去年同期為 28 億元。年比成長主要是由於有效期限延長、表內貸款成長以及其他增值服務的貢獻，但部分被表外貸款下降所抵消。

The sequential increase reflected the growth in on-balance sheet loans and contribution from other value-added services. On-balance sheet loan accounted for over 20% of the total loan volume in Q4. Overall funding cost further declined by roughly 20 bps sequentially and over 100 bps year on year, with the help of a strong relationship with financial institution partners and record-breaking ABS issuance.

環比成長反映了表內貸款和其他增值服務貢獻的成長。四季表內貸款佔貸款總額的比例超過20%。由於與金融機構合作夥伴的牢固關係以及創紀錄的 ABS 發行量，整體融資成本進一步環比下降約 20 個基點，比去年同期下降超過 100 個基點。

Revenue from platform services, capital light, was RMB1.2 billion in Q4 compared to RMB1.2 billion in Q3 and RMB1.1 billion a year ago. The year-on-year growth was mainly due to strong contribution from ICE and other value-added services, substantially offsetting the decline in capital-light loan facilitation.

第四季度，輕資本平台服務收入為人民幣 12 億元，第三季為 12 億元，去年同期為 11 億元。年成長主要得益於ICE和其他加值服務的強勁貢獻，大幅抵銷了輕資本貸款便利化的下降。

For Q4, capital-light loan facilitation, ICE, and other tech solutions combined accounted for roughly 57% of the total loan volume, compared to roughly 56% in the prior quarter. We expect this ratio to be gradually trending up through 2024 as we try to strike an optimal mix between risk-bearing and non-risk-bearing assets in an uncertain macro environment.

第四季度，輕資本貸款便利化、ICE 和其他技術解決方案合計約佔貸款總額的 57%，而上一季約為 56%。我們預計這一比率將在 2024 年之前逐步上升，因為我們試圖在不確定的宏觀環境中實現風險資產和非風險資產的最佳組合。

In Q4, we saw continued sequential improvement in revenue take rate for both cap-heavy and cap-light business, mainly driven by better asset mix. During the quarter, average IRR of the loans we originated and/or facilitated was 21.3% compared to 21.7% in the prior quarter, as we purposely trimmed our direct exposure to high-priced, high-risk assets in response to the macro uncertainty.

在第四季度，我們看到大資本和輕資本業務的收入佔比持續改善，這主要是由更好的資產組合所推動的。本季度，我們發放和/或促成的貸款的平均 IRR 為 21.3%，而上一季度為 21.7%，因為我們為應對宏觀不確定性而特意削減了對高價、高風險資產的直接敞口。

Looking forward, we expect pricing to be fluctuating in a narrow band around this level for the coming quarters. Sales and marketing expenses increased 4% Q-on-Q and 33% year on year. Please note that year-on-year comp is somewhat misleading, as sales marketing activities were severely depressed by the sudden outbreak of COVID cases in Q4 of 2022.

展望未來，我們預計未來幾季的定價將圍繞該水平窄幅波動。銷售和行銷費用較上季成長 4%，較去年同期成長 33%。請注意，年比比較有些誤導，因為 2022 年第四季突然爆發的新冠肺炎病例嚴重抑制了銷售行銷活動。

We added approximately 1.7 million new credit line users in Q4, roughly flat Q-on-Q. Unit cost to acquire new credit line user also increased modestly Q-on-Q to RMB326 from RMB306, mainly due to the seasonality.

第四季我們新增約 170 萬信用額度用戶，較上季基本持平。獲得新信貸額度用戶的單位成本也較上季小幅上升，從人民幣 306 元增加到 326 元，主要是因為季節性因素。

For full-year 2023, unit CAC was approximately RMB304 compared to RMB369 in 2022. We will continue to adjust the pace of new user acquisition based on the macro conditions from time to time. Meanwhile, as Haisheng mentioned, we have made noticeable progress in diversifying our user acquisition channels during the quarter.

2023 年全年，單位 CAC 約為人民幣 304 元，而 2022 年為人民幣 369 元。我們將繼續根據宏觀情況不時調整新用戶獲取節奏。同時，正如海昇所提到的，本季我們在用戶獲取管道多元化方面取得了顯著進展。

Overall, we expect to see modestly lower customer acquisition costs in 2024, with improved efficiency and controlled pace. Furthermore, we will continue to focus on re-energizing existing user base, as repeat borrowers historically contributed a vast majority of our business.

整體而言，我們預期 2024 年客戶獲取成本將小幅降低，效率將提高，節奏將受到控制。此外，我們將繼續專注於重新啟動現有用戶群，因為重複借款人歷來貢獻了我們的絕大多數業務。

In Q4, we continued to experience the volatility in asset quality as key leading risk metrics worsened sequentially. Day-one delinquency was 5.0% in Q4 versus 4.6% in Q3. The uptick in day-one delinquency mainly reflected continued negative sentiment among the borrowers as they face more economic uncertainties.

第四季度，我們持續經歷資產品質的波動，主要主要風險指標持續惡化。第四季第一天拖欠率為 5.0%，而第三季為 4.6%。第一天拖欠率的上升主要反映了借款人因面臨更多的經濟不確定性而持續的負面情緒。

30-day collection rate was 84.9% in Q4 versus 86.7% in Q3. In addition to macro conditions, 30-day collection rate was further impacted by unexpected line control by telecom carriers since November, that resulted in industry-wide lower connection rates of outbound phone lines for collection operations. Although we have taken actions to find alternatives and we believe that such line control issues can be resolved eventually, the impact to our Q4 risk metrics is still quite visible.

第四季的 30 天收集率為 84.9%，而第三季為 86.7%。除宏觀環境外，11月以來電信業者意外線路管制進一步影響了30天催收率，導致全行業催收業務出線接通率下降。儘管我們已採取行動尋找替代方案，我們相信此類生產線控制問題最終可以解決，但對我們第四季度風險指標的影響仍然相當明顯。

We have further optimized our risk management model and applied even more restrictive standard on new applications to mitigate potential risks throughout the quarter. We also proactively adjusted our business mix to further reduce our exposure to high-risk assets. By January, we already started to see stable credit quality of overall portfolio as new loans quality improved and old loan gradually matured.

我們進一步優化了風險管理模型，並對新應用程式應用了更嚴格的標準，以降低整個季度的潛在風險。我們也主動調整業務結構，進一步降低高風險資產風險。到1月份，我們已經看到整體信貸品質趨於穩定，新增貸款品質有所改善，舊貸款逐漸成熟。

Although economic conditions remain challenging and we may continue to see some fluctuation of these metrics in the near future, we believe overall risk performance of the loan portfolio will be relatively stable in 2024 compared to the full-year performance of 2023.

儘管經濟狀況仍然充滿挑戰，我們可能會在不久的將來繼續看到這些指標出現一些波動，但我們認為，與 2023 年全年表現相比，2024 年貸款組合的整體風險表現將相對穩定。

As macro uncertainties persist and credit quality fluctuates, we will continue to take a prudent approach to book provisions against potential credit losses. Total new provisions for risk-bearing loans in Q4 were approximately RMB2.0 billion, and the write-backs of previous provisions were approximately RMB341 million. On a sequential basis, new provision booking ratio increased while the write-backs declining, as expected risk of the assets moved higher.

在宏觀不確定性持續存在、信用品質波動的情況下，我們將繼續採取審慎態度，針對潛在的信用損失提列撥備。第四季風險貸款新增自撥總額約人民幣20億元，前期撥備撥回約人民幣3.41億元。從環比來看，由於資產預期風險上升，新增撥備提列率上升，撥回率下降。

Provision coverage ratio, which is defined as total outstanding provisions divided by total outstanding delinquent asset-heavy loan balance between 90 and 180 days, was 481% in Q4 compared to 534% in Q3. The provision coverage ratio was still near the high end of our historical range.

撥備覆蓋率（指未償還撥備總額除以 90 至 180 天期間未償還拖欠重資產貸款餘額總額）為 481%，而第三季為 534%。撥備覆蓋率仍接近歷史區間的高端。

Non-GAAP net profit was RMB1.15 billion in Q4 compared to RMB1.18 billion in Q3. For full-year 2023, non-GAAP net profit was RMB4.45 billion compared to RMB4.21 billion in 2022. Effective tax rate for 2023 was 18.5% compared to our typical ETR of approximately 15%. The higher ETR was mainly due to additional withholding tax provision related to cash distribution from onshore to offshore for dividend payment and share repurchase.

第四季非 GAAP 淨利為人民幣 11.5 億元，而第三季淨利為人民幣 11.8 億元。2023年全年，非美國通用會計準則淨利為人民幣44.5億元，2022年淨利為人民幣42.1億元。2023 年的有效稅率為 18.5%，而我們的典型 ETR 約為 15%。ETR 較高主要是由於與股利支付和股票回購從境內向境外現金分配相關的額外預扣稅撥備。

With solid operating results and higher contribution from cap-light model, our leverage ratio, which is defined as risk-bearing loan balance divided by shareholders' equity, was 3.3x in Q4, at historical low. We expect to see leverage ratio fluctuate around this level in the near future.

憑藉穩健的經營業績和輕資本模式的較高貢獻，第四季度我們的槓桿率（定義為風險貸款餘額除以股東權益）為3.3倍，處於歷史低點。我們預計近期槓桿率將圍繞該水平波動。

We generated approximately RMB2.4 billion cash from operations in Q4 compared to RMB1.2 billion in Q3. The record-breaking operating cash flow was in part due to the changes in working capital related to the long national holiday at the beginning of the quarter.

我們第四季的營運現金約為人民幣 24 億元，而第三季為人民幣 12 億元。創紀錄的營運現金流部分歸因於季初長假期相關的營運資金變動。

Total cash and cash equivalent was RMB7.8 billion in Q4 compared to RMB8.2 billion in Q3. Non-restricted cash was approximately RMB4.2 billion in Q4 compared to RMB4.9 billion in Q3. The sequential decline in cash position was mainly due to increased cash usage in our on-balance sheet lending.

第四季現金及現金等價物總額為人民幣 78 億元，第三季為人民幣 82 億元。第四季非限制性現金約為人民幣 42 億元，而第三季為人民幣 49 億元。現金部位連續下降主要是由於我們表內貸款的現金使用增加。

As we continue to generate healthy cash flow from operations, we believe our current cash position is sufficient to support our business development and to return to our shareholders. In accordance with our current dividend policy, our Board has approved a dividend of USD0.29 per class A ordinary share or USD0.58 per ADS for the second half of 2023 to holders of record of class A ordinary shares and ADSs as of the close of the business on April 15, 2024, Hong Kong time and New York time, respectively.

隨著我們繼續從營運中產生健康的現金流，我們相信我們目前的現金狀況足以支持我們的業務發展並回報股東。根據我們目前的股利政策，董事會已批准2023 年下半年向截至收盤時登記在冊的A 類普通股和美國存託股股東派發每股A 類普通股0.29 美元或每份美國存託股0.58 美元的股利。分別於香港時間及紐約時間2024年4月15日開始營業。

The aggregate amount of dividend distribution for fiscal year 2023 will be approximately USD170 million. On June 20, 2023, we announced a share repurchase plan to repurchase up to $150 million over a 12-month period. As of March 12, 2024, we have already bought approximately $132 million worth of our ADS in open market at the average price around USD15.7.

2023財年的股利分配總額約為1.7億美元。2023 年 6 月 20 日，我們宣布了一項股票回購計劃，將在 12 個月內回購最多 1.5 億美元。截至 2024 年 3 月 12 日，我們已在公開市場上以約 15.7 美元的平均價格購買了價值約 1.32 億美元的 ADS。

We expect to fully execute the current share repurchase plan around the end of March, roughly three months ahead of initial schedule. To further enhance returns to our shareholders, our Board has approved a new share repurchase plan to repurchase up to $350 million worth of our ADS over a 12-month period starting April 1, 2024.

我們預計本次股份回購計畫將在 3 月底左右全面執行，比原定計畫提前了約三個月。為了進一步提高股東回報，董事會批准了一項新的股票回購計劃，自 2024 年 4 月 1 日起的 12 個月內回購價值最多 3.5 億美元的美國存託股份。

By our estimate, the above-mentioned two share repurchase plans combined would repurchase nearly 20% of the company's total outstanding shares upon fully execution at the current share price. The share repurchase plan further demonstrates management’s confidence and commitment to the future of the company, and the management intends to consistently use share repurchase plans to achieve additional EPS accretion in the long run.

我們預計，上述兩項股份回購計畫全部執行後，以目前股價計算，合計將回購公司已發行股份總數的近20%。這項股票回購計畫進一步顯示了管理層對公司未來的信心和承諾，管理層打算持續利用股票回購計畫來實現長期每股收益的額外成長。

Meanwhile, our Board also reaffirmed our current dividend policy, upon which we will continue to distribute 20% to 30% of our GAAP net income as cash dividends to shareholders on a semi-annual basis. With the full execution of the new share repurchase program and a dividend plan, the combined payout ratio could well exceed 70% in 2024, and the combined yield based on current market cap will be over 17%, an extremely attractive investment by any measure.

同時，我們的董事會也重申了我們目前的股利政策，我們將繼續每半年向股東發放 GAAP 淨利潤的 20% 至 30% 作為現金股利。隨著新股回購計畫和分紅計畫的全面實施，2024年綜合派息率將遠超70%，基於當前市值的綜合收益率將超過17%，無論以何種標準衡量，都是極具吸引力的投資。

Now, regarding our business outlook. As macroeconomic uncertainties reduce visibility into long-term trends, we want to maintain a prudent approach to strike a balance between loan volume growth and profitability. We have purposely trimmed our exposure to underperforming assets and improved overall ROA levels.

現在，關於我們的業務前景。由於宏觀經濟的不確定性降低了對長期趨勢的可視性，我們希望保持審慎的態度，以在貸款量增長和盈利能力之間取得平衡。我們有意識地削減了表現不佳資產的曝險，並提高了整體資產回報率水準。

With the changes of asset mix and quality of growth, the company does not view the growth in overall loan volume as an appropriate indicator to reflect the underlying drivers for its operating results. Therefore, the company will no longer provide loan volume guidance in its earnings release for the foreseeable future.

隨著資產結構和成長品質的變化，公司並不將整體貸款規模的成長視為反映其經營績效的潛在驅動力的適當指標。因此，在可預見的未來，該公司將不再在財報中提供貸款量指引。

Meanwhile, under the current market condition, the company will continue to focus on enhancing profitability and efficiency of its operations. We believe that an outlook of near-term profitability, combined with detailed discussion of other key efficiency metrics in earnings conference call, would be more appropriate to reflect management’s operational priority and execution efforts.

同時，在當前市場情勢下，公司將繼續專注於提升獲利能力和營運效率。我們認為，近期獲利能力的前景，結合收益電話會議中對其他關鍵效率指標的詳細討論，將更適合反映管理層的營運優先事項和執行力度。

And finally, numbers. For the first quarter of 2024, the company expects to generate non-GAAP net income between RMB1.15 billion and RMB1.2 billion, representing a year-on-year growth between 17% and 22%. This outlook reflects the company's current and preliminary view, which is subject to material changes.

最後是數字。2024年第一季度，公司預計非美國通用會計準則淨利潤在11.5億元人民幣至12億元之間，年增17%至22%。這項展望反映了公司目前的初步觀點，可能會發生重大變化。

With that, I would like to conclude our prepared remarks. Operator, we can now take some questions.

至此，我想結束我們準備好的發言。接線員，我們現在可以回答一些問題。

(Operator Instructions) Our first question comes from the line of Richard Xu from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的Richard Xu。

(interpreted) Two questions. First of all, it sounds like management still has a relatively conservative outlook for the year. So what's the expected loan growth for the full year? What are the key considerations and also, how the loans will be allocated through the different quarters?

（解釋）兩個問題。首先，聽起來管理階層對今年的前景仍然相對保守。那麼全年貸款成長預期是多少？關鍵考慮因素是什麼？貸款將如何在不同季度進行分配？

Secondly is, what's the credit quality trend at the moment and outlook for the provisions for the year? Thank you.

其次，目前的信用品質趨勢和全年撥備的前景如何？謝謝。

(interpreted) Okay. Thanks, Richard. As you can see, given the macro uncertainties at this stage, we will continue to maintain a prudent approach in our operations, at least, in the first half of 2024. Therefore, the overall loan volume growth is not our primary goal. Instead, our primary goal will be the quality of our growth and the quality of earnings.

（解釋）好的。謝謝，理查。正如你所看到的，考慮到現階段宏觀的不確定性，我們至少在2024年上半年將繼續保持審慎的經營態度。因此，整體貸款量的成長不是我們的首要目標。相反，我們的首要目標將是我們的成長品質和獲利品質。

Based on this strategy, I think, to some extent, will impact our overall loan volume growth. But as we trimmed our loan exposure to the assets with lower marginal profit or even loss-making assets, we are actually making positive impact on our profitability.

基於這個策略，我認為，一定程度上會影響我們整體貸款量的成長。但隨著我們削減對邊際利潤較低甚至虧損資產的貸款曝險，我們實際上正在對我們的獲利能力產生積極影響。

In terms of internal and external data we are looking at, so far, we have seen positive trend in the macro data, such as the CPI has improved in February and the first two-month import and export data also increased by 8.7%. And our own risk metric is also trending better, which makes us more comfortable about the near-future trend.

從我們看的內部和外部資料來看，到目前為止，我們看到宏觀資料呈現正面的趨勢，例如2月CPI有所改善，前兩個月的進出口資料也成長了8.7%。我們自己的風險指標也呈現出較好的趨勢，這讓我們對近期的趨勢更加放心。

As for quarterly planning, Q1 is usually a slack season for our business. Plus, we made a lot of efforts in optimizing our risk performance in this quarter. We expect our loan volume for Q1 will be the lowest level for this year and then, gradually ramp up in Q2 and Q3.

就季度計劃而言，第一季通常是我們業務的淡季。另外，本季我們在優化風險績效方面做出了很多努力。我們預計第一季的貸款量將是今年的最低水平，然後在第二季和第三季逐漸增加。

(interpreted) Regarding the asset quality, we made more proactive adjustments to improve asset quality in Q4 and Q1 through tightening our credit standard for new loans and cutting back longer-duration loans to mitigate the uncertainties. Based on our observation, the FPD30 delinquency rate of our new loans originated in December improved by 13% compared to Q3. And then the FPD30 delinquency rate of the new loans for early January further improved by 10% from December.

（解讀）資產品質方面，第四季、第一季我們更積極主動調整資產質量，透過收緊新增貸款授信標準、壓縮長期貸款等方式來緩解不確定性。根據我們的觀察，我們 12 月發放的新貸款的 FPD30 拖欠率比第三季下降了 13%。隨後1月初新增貸款的FPD30拖欠率較12月進一步改善10%。

In addition, longer-duration loans accounted for 18% of our new loans in second half last year, while the contribution has been reduced to less than 10% so far in 2024, as we shortened the duration for those macro-sensitive users. So far, we have seen improvements in the risk performance of our overall loan portfolio in January and February, and expect to see further improvements throughout the year with the legacy loans gradually mature.

此外，去年下半年，較長期限貸款占我們新增貸款的18%，但隨著我們縮短了宏觀敏感用戶的期限，到2024年，這一比例已降至不足10%。到目前為止，我們看到1月和2月整體貸款組合的風險表現有所改善，預計全年隨著遺留貸款的逐漸成熟，風險表現將進一步改善。

Okay. Regarding the provision booking, as you know, historically, we have been on a pretty prudent approach to book the provision. As Zheng Yan mentioned, we are expecting the risk metrics will gradually improve throughout this year. But still, we probably will take the similar kind of a booking ratio to book our provision just to be conservative.

好的。關於供應預訂，如您所知，從歷史上看，我們一直採取非常謹慎的方式來預訂供應。正如鄭岩所說，我們預計今年創投指標將逐步改善。但為了保守起見，我們可能會採用類似的預訂比率來預訂我們的供應。

At the same time, please note that, overall, the capital-heavy loan as a percentage of a total, as well as the absolute volume for this year, will most likely be lower than last year. As we mentioned, we are shifting towards more capital-light segments.

同時，請注意，總體而言，今年的重資本貸款佔總數的百分比以及絕對數量很可能會低於去年。正如我們所提到的，我們正在轉向更多資本輕的領域。

So the base for those provisions is getting lower for this year, which means the absolute provision amount will most likely drop versus last year. But the booking ratio will most likely be still the same on the conservative side.

因此，今年這些撥備的基數越來越低，這意味著絕對撥備金額很可能會比去年下降。但從保守的角度來看，預訂率很可能保持不變。

Thank you, Richard.

謝謝你，理查。

Our next question comes from the line of Alex Ye from UBS.

我們的下一個問題來自瑞銀集團的 Alex Ye。

(interpreted) So I have two questions. First one is on the take rate and profitability. So previously, management has guided that going forward, we should probably expect better earnings growth than loan volume growth.

（解釋）所以我有兩個問題。第一個是關於接受率和獲利能力。因此，在此之前，管理層曾指導，未來我們應該預期獲利成長將優於貸款量成長。

I'm wondering, is that statement still valid, and how confident is management on this? Can you share with us some of the drivers, given there's lots of moving part and given we should know the downside risk from asset quality and your current strategy of shifting more to work from capital-heavy to capital-light model?

我想知道，這種說法仍然有效嗎？管理階層對此有多大信心？鑑於存在許多變化因素，並且我們應該了解資產品質的下行風險，以及您目前從重資本模式轉向輕資本模式的策略，您能否與我們分享一些驅動因素？

Second question is on asset quality outlook. Management has just discussed about the factors from both macro front and some temporary factors, such as the call-out capacity. So I'm wondering which could be the dominant driver. And if we look at this from a vintage loss perspective, what's the expectation for 2024 vintage loss versus 2023? Thank you.

第二個問題是關於資產品質前景。管理階層剛才討論了宏觀因素和一些臨時因素，例如呼叫能力。所以我想知道哪個可能是主要驅動因素。如果我們從年份損失的角度來看，2024 年份損失與 2023 年相比有何預期？謝謝。

(interpreted) Thanks, Alex. Regarding the drivers for profitability improvement, since last Q3, we have made substantial efforts to improve our overall profitability, creating positive impact on our last Q3 and Q4. We expect the trend will continue in 2024.

（譯）謝謝，亞歷克斯。關於獲利能力改善的驅動因素，自去年第三季以來，我們在提高整體獲利能力方面做出了巨大努力，對第三季和第四季產生了積極影響。我們預計這一趨勢將在 2024 年持續下去。

For this year, we believe our profit will increase as we continue to work on our risk, funding, asset allocation, and product fronts. Number one, on the risk front, we will cut back the lower-quality or lower-efficiency assets to improve the ROA of our overall loan portfolio.

今年，我們相信，隨著我們繼續在風險、融資、資產配置和產品方面努力，我們的利潤將會增加。第一，在風險方面，我們將削減低品質或低效率的資產，以提高整個貸款組合的資產報酬率。

Second, on funding side, last year, we have seen substantial decline in our funding cost. Given the still ample market liquidity this year, we will continue to push more ABS issuance and reduce our funding cost further.

第二，資金方面，去年我們的資金成本大幅下降。鑑於今年市場流動性依然充裕，我們將持續增加ABS發行力度，進一步降低融資成本。

Third, on asset allocation, we will collaborate with more financial institutions this year to match their risk appetite with appropriate assets to improve the asset allocation efficiency and our profitability as well.

第三，在資產配置上，今年我們將與更多的金融機構合作，將其風險偏好與合適的資產相匹配，提高資產配置效率，並提高我們的獲利能力。

Fourth, on the product side, we will further enhance and differentiate our product offerings to increase user stickiness and their long-term LTV.

第四，在產品方面，我們將進一步增強和差異化我們的產品，以提高用戶黏性和長期生命週期價值。

Fifth, we will improve our operational efficiency through larger language model empowerment. For example, we applied AIGC-generated pictures to our intelligent marketing, which reduced our unit acquisition cost by roughly 9%.

第五，透過更大的語言模式賦能，提高營運效率。例如，我們將 AIGC 產生的圖片應用於我們的智慧行銷，這使我們的單位獲取成本降低了約 9%。

With larger language model empowering our telemarketing team, our average drawdown per user increased by roughly 5%. Currently, AI programming has replaced 15% of our coding. And all these efforts, we believe, will eventually improve our efficiency in the near term and the long run.

隨著更大的語言模型為我們的電話行銷團隊提供支持，我們的每位用戶平均回撤增加了約 5%。目前，人工智慧程式設計已經取代了我們15%的編碼。我們相信，所有這些努力最終將提高我們的短期和長期效率。

In summary, we have seen some positive signs from the latest published macro data. And our continuous efforts in improving our profitability is also bearing fruit. At this time point, we are confident to achieve our goal to generating better profit growth than loan volume growth.

綜上所述，我們從最新公佈的宏觀數據中看到了一些正面的跡象。我們在提高獲利能力方面的持續努力也取得了成果。目前，我們有信心實現利潤成長優於貸款量成長的目標。

Regarding the asset quality, as our CRO just mentioned, we fine-tuned our risk strategies in Q4 and Q1, leading to a better FPD30 delinquency rate performance of the new loans issued in the last two months. Considering the marginally better macro conditions, we believe our asset quality is also generally manageable.

關於資產質量，正如我們的CRO剛才提到的，我們在第四季度和第一季度對風險策略進行了微調，導致最近兩個月發放的新貸款的FPD30拖欠率表現更好。考慮到宏觀環境略有好轉，我們認為我們的資產品質總體上是可控的。

(interpreted) Okay, I will comment on the risk front. The weaker-than-expected macro environment in Q3 continued its momentum in Q4. As a result of underperforming macro statistics, liquidity tension in credit markets, and the stricter line control by telecom carriers, our risk metrics for the overall loan portfolio were further trending up in Q4.

（解釋）好的，我將評論風險方面。第三季宏觀環境弱於預期的動能在第四季延續。受宏觀經濟運作不佳、信貸市場流動性緊張、電信業者線路管控趨嚴等因素影響，四季貸款整體風險指標進一步上升。

In our view, the macro uncertainties as well as the line control issue may continue to put pressure on our risk management in this year. But we do see improvement in the latest economic data and the market liquidity. Our day-one delinquency ratio has been consistently trending lower from the peak level in last November.

我們認為，今年宏觀不確定性以及線控問題可能會持續對我們的風險管理造成壓力。但我們確實看到最新的經濟數據和市場流動性有所改善。我們的第一天拖欠率自去年 11 月的峰值以來一直呈下降趨勢。

From our business planning perspective, we will take a more prudent approach in terms of risk appetite. With all these efforts, we aim to lower our vintage loss for 2024 new loans by 10% to 15% compared to 2023.

從我們的業務規劃來看，我們在風險偏好方面會採取更審慎的態度。透過所有這些努力，我們的目標是將 2024 年新貸款的年份損失比 2023 年降低 10% 至 15%。

Operator, (multiple speakers)

操作員，（多個發言者）

Our next question comes from the line of Emma Xu from Bank of America Securities.

我們的下一個問題來自美國銀行證券的Emma Xu。

(interpreted) So we noticed that you keep your dividend payout ratio at 20% to 30% and announced a new share buyback plan of USD350 million. You mentioned some of the considerations behind.

（解讀）所以我們注意到你們把派息率維持在20%到30%，並且宣布了3.5億美元的新股回購計畫。您提到了背後的一些考慮。

I'm just wondering if such shareholder return is sustainable in the long term. Could you share more consideration with us? Thank you.

我只是想知道這樣的股東回報是否在長期內可持續。您能與我們分享更多的考慮嗎？謝謝。

Thanks, Emma. I think as we mentioned in prepared remarks, we consider the combination of dividend and the share repurchase as a lasting kind of measure we're going to take to return to our shareholders. In terms of the mix between the two, from time to time, depending on the market condition, may change.

謝謝，艾瑪。我認為正如我們在準備好的發言中所提到的，我們認為股利和股票回購的結合是我們回報股東的持久措施。就兩者之間的組合而言，根據市場狀況，可能會不時發生變化。

But the intensity of this kind of a return program will probably be similar to what we see in 2024, which was announced. In other words, if we consistently do the repurchase and the dividend for the next, say, three years, it could be possible we see the shrink of our total share count by roughly 30% or even more based on current share price.

但這種回歸計畫的強度可能與我們在 2024 年宣布的情況類似。換句話說，如果我們在未來（例如三年）持續進行回購和分紅，我們的總股數可能會根據當前股價減少約 30% 甚至更多。

So basically, what we're trying to say is that given our current cash flow position, we view that returning to shareholders is a very important long-term tool to the company. And so we'll continue to do that year by year.

所以基本上，我們想說的是，鑑於我們目前的現金流狀況，我們認為向股東回報對公司來說是一個非常重要的長期工具。因此，我們將繼續年復一年地這樣做。

Thank you. This is very encouraging.

謝謝。這是非常令人鼓舞的。

All right. Thank you.

好的。謝謝。

Our next question comes from the line of Yada Li from CICC.

我們的下一個問題來自中金公司的李雅達。

(interpreted) Then I will do my translation. First, I was wondering, what are the percentage trends of different facilitation models, including the microcredit, the guaranteed model, and the capital-light model, in the volume going forward? And considering the microenvironment, which one is preferred by the financial institutions?

（口譯）然後我會做我的翻譯。首先，我想知道，不同的便利化模式，包括小額信貸、擔保模式和輕資本模式，在未來的數量中所佔的百分比趨勢是多少？那麼從微觀環境來看，金融機構更青睞哪一種呢？

And secondly, I've noticed that there was a notable growth of the ICE, both in volume and percentage. And during this year, what can we expect regarding the ICE? That's all. Thank you.

其次，我注意到 ICE 的數量和百分比都有顯著成長。今年，我們對 ICE 有何期待？就這樣。謝謝。

(interpreted) Okay. Thank you, Yada. Regarding your question about the loan mix, I think at this stage, basically, we won't set a target for our loan mix structure. Instead, we target to diversify the funding partnership structure, adjust our loan mix and asset allocation strategy to improve our overall take rate.

（解釋）好的。謝謝你，雅達。關於你提到的貸款結構問題，我認為現階段我們基本上不會為貸款結構設定一個目標。相反，我們的目標是實現融資合作夥伴結構多元化，調整貸款結構和資產配置策略，以提高整體利用率。

In the meantime, we strive to improve the asset matching and allocation efficiency, reduce the partnership cost, and boost our take rate for each of those categories. As you mentioned, let's take ICE for instance. We managed to diversify our funding partnership and optimize asset allocation under ICE in last year, which resulted in an overall 50% year-over-year increase in our revenue take rate for ICE in Q4, 2023.

同時，我們努力提升資產匹配和配置效率，降低合作成本，提高各類別的拿貨率。正如您所提到的，讓我們以 ICE 為例。去年，我們成功實現了融資合作夥伴多元化，並優化了 ICE 下的資產配置，這使得 2023 年第四季我們的 ICE 收入整體年增了 50%。

So with ICE contributing more in the loan mix, our overall profitability is also improving. This year, we will continue to conduct this strategy to improve our operational efficiency under different models and make dynamic adjustments to our loan mix to improve our overall take rate. Thank you.

因此，隨著 ICE 在貸款組合中做出更多貢獻，我們的整體獲利能力也在改善。今年，我們將持續貫徹這項策略，提高不同模式的營運效率，動態調整貸款結構，提高整體貸款率。謝謝。

(spoken in foreign language)

（用外語說）

Thank you, Yada. We have reached the end of the question-and-answer session. Thank you very much for all your questions. And now, I'd like to turn the conference back to the management team for any additional closing comments.

謝謝你，雅達。我們的問答環節已經結束。非常感謝您提出的所有問題。現在，我想將會議轉回給管理團隊，以徵求任何其他的結束意見。

Thanks again for joining us for the conference call. If you have any additional questions, please feel free to contact us offline. Thank you.

再次感謝您參加我們的電話會議。如果您還有其他疑問，請隨時離線與我們聯絡。謝謝。

Thank you. That concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。

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

編輯^ 本筆錄中標記（翻譯）的部分是由現場通話中的口譯員或發言者本人說出的。口譯員由贊助本次活動的公司提供。