360數科 (QFIN) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Qifu Technology fourth quarter and full year 2024 earnings conference call. (Operator Instructions) Please also note that today's event is being recorded.

女士們、先生們，感謝大家的支持，歡迎參加啟富科技2024年第四季和全年收益電話會議。（操作員指示）另請注意，今天的活動正在被記錄。

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.

現在，我想將電話會議轉給資本市場高級總監 Karen Ji 女士。請繼續，凱倫。

Thank you, operator. Hello, everyone, and welcome to Qifu Technology's fourth quarter 2024 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.

謝謝您，接線生。大家好，歡迎參加啟富科技2024年第四季財報電話會議。我們的收益報告已於今天早些時候發布，並可在我們的 IR 網站上查閱。今天與我一起的還有我們的執行長吳海生先生；我們的財務長 Alex Xu 先生；以及我們的首席風險長鄭彥先生。

Before we start, I would like to refer you to our safe harbor statement in the earnings press release, which applies to this call as we will make certain forward-looking statements. 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.

在我們開始之前，我想請您參閱收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出某些前瞻性陳述。此外，本次電話會議也包括某些非公認會計準則財務指標的討論。請參閱我們的收益報告，其中包含非 GAAP 財務指標與 GAAP 財務指標的對帳。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算。

Before we start, we would like to let you know that 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.

在開始之前，我們想讓大家知道，今天我們執行長的準備好的發言將透過人工智慧生成的聲音以英語發表。現在我將電話轉給吳海生先生。請繼續。

(spoken by AI) Hello, everyone. Thank you for joining us today. 2024 was an exceptional year for our company. Despite the macroeconomic headwinds, we focused on driving high-quality development and evolving our business, consistently hitting new quarterly milestones to close out the year on a strong note.

（AI說）大家好。感謝您今天加入我們。 2024年對我們公司來說是個不同尋常的一年。儘管面臨宏觀經濟逆風，我們仍專注於推動高品質發展和業務轉型，不斷創下新的季度里程碑，以強勁的業績結束這一年。

As our business model gradually shifts to a platform model, our organizational capabilities have been upgraded alongside it. As we look to the future, we will adopt a more open and collaborative approach to engaging and empowering our users and partners further enhancing the health and resilience of our business.

隨著我們的商業模式逐漸向平台模式轉變，我們的組織能力也隨之升級。展望未來，我們將採取更開放和協作的方式，吸引和賦能我們的用戶和合作夥伴，進一步增強我們業務的健康和彈性。

By the end of 2024, our platform empowered a total of 162 financial institutions to serve more than 56 million users with approved credit lines on a cumulative basis. Throughout 2024, we maintained a disciplined approach, optimizing risk management and enhancing operational efficiency.

截至2024年底，我們的平台共賦能162家金融機構，累計服務超過5,600萬名用戶獲得授信批准。2024年，我們保持嚴謹作風，優化風險管理，提高營運效率。

In Q4, our C2M2 metric, representing the delinquency rate after 30-day collection for our overall loan portfolio declined further sequentially, reaching its lowest level of the year and approaching a historical best. With our risk metrics stabilizing, we strengthened our ability to address user needs through differentiated risk and pricing strategies.

第四季度，我們的 C2M2 指標（代表整體貸款組合 30 天收款後的拖欠率）進一步環比下降，達到年內最低水平，並接近歷史最高水平。隨著風險指標的穩定，我們透過差異化風險和定價策略增強了滿足用戶需求的能力。

Total loan facilitation and origination volume on our platform have grown for two consecutive quarters with Q4 loan volume increasing by 9% sequentially to RMB89.9 billion. Loan volume in the second half of the year regained positive growth, increasing by approximately 15% compared to the first half.

我們平台的貸款促成及發放總量連續兩季成長，第四季貸款量較上季成長 9%，達到 899 億元人民幣。下半年貸款規模恢復正成長，較上半年成長約15%。

With operational efficiency continuing to improve, our Q4 profitability hit a new record high with non-GAAP net income, increasing 71.5% year-over-year to RMB1.97 billion and non-GAAP net income per diluted ADS surging 91.3% year-over-year to RMB13.7. Despite macroeconomic headwinds, we have consistently improved upon our results over the year and outperformed our market commitments through the ongoing evolution and enhancements to our business.

隨著營運效率的持續提升，第四季獲利能力再創新高，非美國通用會計準則淨利潤年增71.5%至19.7億元，非美國通用會計準則每股美國存託憑證攤薄淨利潤年增91.3%至13.7元。儘管面臨宏觀經濟逆風，但我們透過業務的不斷發展和提升，在過去一年中持續改善業績並超越了我們的市場承諾。

In 2024, with our take rate continuing to improve, full year non-GAAP net income rose 44% year-over-year to reach an all-time high of RMB6.42 billion. Additionally, we successfully executed USD410 million share repurchase buying back approximately 12% of our share count at the beginning of the year. This also contributed to improved non-GAAP net income per diluted ADS for 2024, which increased 55.7% year-over-year to RMB42.4. Coupled with ongoing improvements in profitability and capital allocation efficiency, our ROE for 2024 increased further to 27.9%, significantly outperforming most financial services and Internet companies in China.

2024年，隨著我們的佣金率持續提升，全年非GAAP淨收入年增44%，達到人民幣64.2億元的歷史新高。此外，我們在年初成功執行了4.1億美元的股票回購，回購了約12%的股份。這也推動了2024年非公認會計準則每股攤薄淨利潤的提升，年增55.7%至42.4元。加上獲利能力及資金配置效率的持續提升，我們2024年的ROE進一步提升至27.9%，大幅跑贏中國大部分金融服務及網路公司。

Now I'll walk you through the progress we made in 2024. First, we remain committed to driving quality growth. We enhanced user acquisition efficiency by proactively diversifying acquisition channels. The number of new borrowers in 2024 increased by 16.2% year-over-year, while average acquisition cost per credit line user declined by 5.3%, reflecting a significant improvement in user acquisition efficiency.

現在我將向您介紹我們在 2024 年的進展。第一，我們堅定不移地推動有品質的成長。我們積極拓展用戶獲取管道的多元化，提升了用戶獲取效率。2024年新增借款人數量年增16.2%，每筆信用額度用戶平均獲取成本下降5.3%，用戶獲取效率顯著提升。

Notably, the addition of 18 new channels to our embedded finance business for over 26% increase in new credit line users and a remarkable 98% increase in loan volume from the embedded finance channels, with users acquired through this segment, now accounting for 41% with improved user profiling accuracy on partner platforms, both credit costs and operational efficiency further improved, driving an ROA increase of approximately 2.48-percentage-points from last year. Additionally, our embedded finance model further expanded its reach and now covers the majority of leading Internet traffic platforms in China with penetration rates also increasing.

值得注意的是，內嵌金融業務新增18個管道，新增授信用戶成長超過26%，來自內嵌金融管道的貸款量大幅成長98%，其中透過內嵌金融管道取得的用戶佔比已達41%，合作平台用戶畫像精準度進一步提升，信貸成本與營運效率進一步改善，ROA較去年同期提升約2.48個百分點。此外，嵌入式金融模式進一步擴大覆蓋範圍，目前已涵蓋國內大部分主要網路流量平台，滲透率也不斷提升。

Simultaneously, we deepened collaboration with financial institutions to engage with their existing customer bases, leveraging their proprietary traffic and our precise user identification capabilities and differentiated risk strategies to extend our credit product offerings. As we expand into more channels and strengthen our presence across platforms, we expect loan volume from our embedded finance business to maintain rapid growth momentum in 2025.

同時，我們深化與金融機構的合作，接觸其現有的客戶群，利用其自有流量和我們精準的用戶識別能力以及差異化風險策略來擴展我們的信貸產品。隨著我們拓展更多管道並加強跨平台影響力，我們預計嵌入式金融業務的貸款量將在 2025 年保持快速成長勢頭。

Additionally, we are developing our intelligent marketing capabilities. 74% of the graphics and 27% of the videos we deploy are now generated by AIGC technology, resulting in a 25.1% improvement in user outreach efficiency and an approximately 10% reduction in average cost per credit line user. Furthermore, with 40% of our ad placements now automated, we achieved a 9% improvement in ROI compared to manual placements.

此外，我們正在開發我們的智慧行銷能力。我們部署的74%的圖片和27%的影片現在都是由AIGC技術產生的，這使得用戶觸達效率提高了25.1%，每個信用額度用戶的平均成本降低了約10%。此外，目前我們的 40% 廣告投放已自動化，與手動投放相比，投資報酬率提高了 9%。

Second, our asset quality improved significantly in 2024, following the decisive initiatives we implemented to optimize our loan portfolio and prioritize high-quality growth. We upgraded our application scorecard or A Scorecard by integrating AI to enhance credit data analysis. This allowed us to lower risk metrics back to target levels and establish a foundation for continuous improvements.

第二，隨著我們採取果斷措施優化貸款組合、優先考慮高品質成長，2024年我們的資產品質顯著改善。我們透過整合人工智慧來增強信用數據分析，從而升級了我們的申請評分卡或 A 評分卡。這使我們能夠將風險指標降低到目標水平並為持續改進奠定基礎。

Within our post lending processes, we enhanced overall collection efficiency by upgrading our collection scorecard or C Scorecard with large language models for real-time analysis of user communication data and refining partner management and case assignment strategies.

在貸後流程中，我們透過升級催收記分卡或C記分卡，使用大型語言模型即時分析使用者溝通數據，改善合作夥伴管理和案例分配策略，提高了整體催收效率。

In the second half of the year, despite a moderate recovery in market demand, we maintained a disciplined risk strategy and focused on differentiated user operations, driving further improvements in our risk indicators.

下半年，在市場需求溫和回升的背景下，我們堅持嚴謹的風險策略，聚焦差異化用戶經營，風險指標進一步改善。

In Q4, our D1 delinquency rate decreased by 0.21-percentage-points year-over-year, while 30-day collection rate increased by 3.23-percentage-points. This robust asset quality has laid a solid foundation for our 2025 strategic planning and with optimized risk strategies now firmly in place, we expect risk performance to remain stable in the coming quarters.

第四季度，我們的 D1 拖欠率年減了 0.21 個百分點，而 30 天收款率上升了 3.23 個百分點。強勁的資產品質為我們的 2025 年策略規劃奠定了堅實的基礎，隨著優化的風險策略現已穩固到位，我們預計未來幾季的風險表現將保持穩定。

Benefiting from a favorable interest rate environment and robust asset quality, we maintained our negotiating leverage on the funding side and drove a continuous decline in funding costs throughout the year. Our ABS issuance for the year increased by 21.6% to RMB15.2 billion, further optimizing our funding structure.

受益於良好的利率環境及良好的資產質量，我們維持了融資方面的談判優勢，推動全年融資成本持續下降。全年ABS發行量成長21.6%至152億元，資金結構進一步優化。

We also issued the first domestic exchange traded ABS with a AAA international rating which attracted subscriptions from multiple international institutional investors and expanded our funding channels globally. Our leadership in ABS issuance has given us a distinct competitive advantage in funding. In 2025, we plan to ramp up ABS issuance and increase the share of ABS in our funding mix. Although there has been a slight uptick in interest rate uncertainty this year, we are confident in our ability to drive a moderate decline in our funding costs in the coming year.

發行境內首隻交易所交易ABS，獲得AAA國際評級，吸引多家國際機構投資者認購，拓展了全球融資管道。我們在 ABS 發行方面的領導地位為我們在融資方面帶來了獨特的競爭優勢。2025年，我們計劃加大ABS發行量，提高ABS在我們融資結構中的比重。儘管今年利率不確定性略有上升，但我們有信心在未來一年推動融資成本適度下降。

The proportion of loan volume from our Capital Light segment increased by approximately 10-percentage-points to 53% throughout 2024. We are the first mover to adopt this model and now boast the highest ratio when compared to our industry peers, a direct result of our strong asset quality and precise asset allocation capabilities. Our flexible asset structure ensures that our loan portfolio remains significantly more resilient during market cycles.

2024 年，我們輕資本部門的貸款量比例增加了約 10 個百分點，達到 53%。我們是這模式的先行者，目前我們在同業中擁有最高的比例，這直接得益於我們強大的資產品質和精準的資產配置能力。我們靈活的資產結構確保我們的貸款組合在市場週期中保持更強的彈性。

Over the past year, by onboarding funding partners with more diverse risk appetites, we have strengthened our ability to serve various loan segments and further optimize our asset allocation strategy. This has driven continuous improvements in our ROA under the capital-light model.

在過去的一年裡，透過吸收具有更多樣化風險偏好的融資合作夥伴，我們增強了服務各類貸款領域的能力，並進一步優化了我們的資產配置策略。這推動了我們在輕資本模式下ROA的持續改善。

Our Technology Solutions business reached meaningful scale in 2024. We continue to enhance and upgrade our credit tech solution, Focus Pro, to meet the diverse needs of financial institutions. Over the year, we added 11 new partner institutions, bringing the total to 16 with 11 already live on our platform. Loan volume under the Focus Pro model grew at a compound monthly growth rate of 17% in 2024.

我們的技術解決方案業務在 2024 年達到了有意義的規模。我們不斷增強和升級我們的信用科技解決方案 Focus Pro，以滿足金融機構的多樣化需求。過去一年，我們增加了 11 家新的合作機構，總數達到 16 家，其中 11 家已在我們的平台上運作。Focus Pro 模式下的貸款量在 2024 年的複合月增長率為 17%。

By extensively engaging with our partners, we have seen strong demand from financial institutions for AI-driven solutions. In response, we plan to develop an AI plus bank agent platform to help banks address pain points in their core business processes and improve operational efficiency. We look forward to sharing more updates on this initiative in the coming quarters.

透過與合作夥伴的廣泛合作，我們看到金融機構對人工智慧驅動解決方案的強烈需求。為此，我們計畫開發AI加銀行代理平台，協助銀行解決核心業務流程的痛點，提高營運效率。我們期待在未來幾季分享有關該計劃的更多最新消息。

AI is deeply embedded in our DNA, empowering every stage of our operations. Over the past year, AI has driven significant efficiency improvements across our business from AI copilot models in loan collection and telemarketing to automating the development of marketing materials with AIGC technology and assisting developers with coding. As large language models increasingly mature and Deepseek significantly improves inference efficiency, we will allocate more resources to the application of AI across credit scenarios going forward.

人工智慧深深植根於我們的 DNA，為我們營運的每個階段提供支援。在過去的一年裡，人工智慧推動了我們整個業務效率的顯著提升，從貸款催收和電話行銷中的人工智慧副駕駛模型，到利用人工智慧GC技術自動開發行銷材料，再到協助開發人員進行編碼。隨著大語言模式的日趨成熟以及Deepseek推理效率的大幅提升，未來我們會將更多的資源投入AI在信貸場景的應用上。

First and foremost, risk management is the cornerstone of our business. We have gained valuable insights from over 200 million users and developed more than 2,400 models with 590,000 data dimensions. In 2024 alone, we iterated our models more than 670 times. We believe Deepseek will revolutionize how data is mined and analyzed in risk management, transitioning us from a single model to a multimodal approach and driving exponential growth in data dimensions. It's powerful reasoning capabilities will enable us to further enhance user profiling and improve the accuracy of end-to-end risk identification.

首先，風險管理是我們業務的基石。我們從超過 2 億用戶那裡獲得了寶貴的見解，開發了超過 2,400 個模型，包含 590,000 個資料維度。僅在 2024 年，我們就對模型進行了 670 多次迭代。我們相信 Deepseek 將徹底改變風險管理中資料的挖掘和分析方式，使我們從單一模型轉變為多模式方法，並推動資料維度的指數級成長。其強大的推理能力將使我們能夠進一步增強用戶分析並提高端到端風險識別的準確性。

Second, we are fully committed to advancing our AI Plus strategy. We plan to build an agent platform that will empower core lending processes, leveraging the memory, planning and collaboration capabilities of AI agents. This platform will fundamentally reshape how we operate, boosting efficiency while unlocking greater potential within our teams to drive even more business value.

第二，我們全力推動AI+策略。我們計劃建立一個代理平台，利用人工智慧代理的記憶、規劃和協作能力，為核心貸款流程提供支援。該平台將從根本上重塑我們的營運方式，提高效率，同時釋放團隊更大的潛力，以創造更多的商業價值。

We have assembled a dedicated team to execute this strategy and expect one-third of our core business processes to be powered by this agent platform in the next one or two years. This initiative has already gained strong traction among our financial institution partners, and we believe AI Plus Bank will become a key pillar of our Technology Solutions business moving forward.

我們已經組建了一支專門的團隊來執行這項策略，並預計在未來一兩年內，我們三分之一的核心業務流程將由該代理平台提供支援。這項舉措已經在我們的金融機構合作夥伴中獲得了強烈的支持，我們相信 AI Plus Bank 將成為我們未來技術解決方案業務的重要支柱。

In the second half of 2024, we saw marginal improvements in the macroeconomic environment and a modest recovery in credit demand. The 2025 government work report emphasized a commitment to supporting technological innovation, boosting consumption and advancing the AIs initiative, including the widespread adoption of large language models. We will continue to observe the impact these initiatives will have on our business.

2024年下半年，我們看到宏觀經濟環境略有改善，信貸需求溫和復甦。2025年政府工作報告強調致力於支援技術創新、促進消費和推動人工智慧計劃，包括廣泛採用大型語言模式。我們將繼續觀察這些舉措對我們業務的影響。

From a long-term perspective, our vision is to become a globally respected fintech comp. To achieve this vision, we are executing a 1 core 2 wings strategy, where our domestic credit business serves as the core and our Technology Solutions business and international expansion serve as the 2 wings. This strategy will allow us to continuously expand business boundaries and drive digital financial inclusion on a larger scale.

從長遠來看，我們的願景是成為一家全球受人尊敬的金融科技公司。為了實現這一願景，我們正在實施「一核兩翼」策略，即國內信貸業務為核心，技術解決方案業務和國際擴張為兩翼。這項策略將使我們不斷拓展業務邊界，在更大範圍內推動數位金融包容性。

Looking ahead to 2025, we remain cautiously optimistic and expect our core credit business to maintain high-quality development, while our Technology Solutions business will expand the depth and breadth of our partnerships with banks through our AI Plus strategy. For international expansion, we will maintain a disciplined approach, focusing on markets with stable regulatory environments and solid infrastructure. We will start small, move quickly and iterate continuously as we progress. We look forward to sharing more updates on our journey in the future.

展望2025年，我們保持謹慎樂觀，預計我們的核心信貸業務將保持高品質發展，而我們的技術解決方案業務將透過我們的AI Plus策略擴大與銀行合作的深度和廣度。對於國際擴張，我們將保持嚴謹的態度，專注於監管環境穩定和基礎設施完善的市場。我們將從小處著手，快速行動，並在進步過程中不斷迭代。我們期待在未來分享更多關於我們旅程的最新消息。

In 2024, we further optimize capital allocation to enhance shareholder returns, executing our share repurchase plan at a significantly ahead of market expectations. Our dividends and buybacks for 2024 amounted to USD280 million and USD410 million, respectively, with total shareholder returns reaching 100% of our 2023 GAAP net income. As of the end of 2024, we had repurchased a total of 24.5 million ADSs and have begun executing a new repurchase plan of up to USD450 million in 2025. We are confident in the future of our company and remain dedicated to delivering long-term value to our shareholders. Moving forward, we will continue to prioritize efficient capital allocation and shareholder value creation through recurring share buybacks and dividends.

2024年，我們進一步優化資本配置，提升股東回報，股票回購計畫執行力道遠超市場預期。我們 2024 年的股利和回購分別達到 2.8 億美元和 4.1 億美元，股東總回報率達到我們 2023 年 GAAP 淨收入的 100%。截至2024年底，我們已共回購2,450萬股ADS，並已於2025年開始執行最高可達4.5億美元的新回購計畫。我們對公司的未來充滿信心，並將繼續致力於為股東創造長期價值。展望未來，我們將繼續優先考慮有效的資本配置和透過定期的股票回購和股利創造股東價值。

With that, I will now turn the call over to Alex.

說完這些，我現在將電話轉給亞歷克斯。

Thank you, Haisheng. Good morning, and good evening, everyone. Welcome to our fourth quarter earnings call. We closed the year with a strong Q4 as micro environment start to see tentative indication of modest improvement in user activities. Our continuous effort to optimize operations, improve efficiencies and manage risk exposures generate healthy financial results and operating metrics.

謝謝你，海生。大家早安，晚上好。歡迎參加我們的第四季財報電話會議。我們以強勁的第四季結束了這一財年，因為微觀環境開始出現用戶活動略有改善的初步跡象。我們不斷努力優化營運、提高效率和管理風險敞口，從而產生健康的財務表現和營運指標。

Total net revenue for Q4 was RMB4.8 billion versus RMB4.37 billion in Q3 and RMB4.5 billion a year ago. Revenue from credit-driven service, capital heavy was RMB2.89 billion in Q4 compared to RMB2.9 billion in Q3 and RMB3.25 billion a year ago. The year-on-year decline was mainly due to significant decline in off-balance sheet loans despite strong contribution from on balance sheet loans and other value-added services.

第四季總淨營收為48億元人民幣，第三季為43.7億元人民幣，去年同期為45億元。第四季信貸驅動服務（資本密集）收入為 28.9 億元，而第三季為 29 億元，去年同期為 32.5 億元。年比下降主要由於表內貸款及其他加值服務貢獻強勁，但表外貸款大幅減少。

Overall funding costs were stable Q-on-Q in seasonally timing funding environment. Revenue from platform service capital light was RMB1.59 billion in compared to RMB1.47 billion in Q3 and RMB1.25 billion a year ago. The year-on-year growth was mainly due to strong contribution from ICE and other value-added service, more than offsetting the decline in capitalized loan facilitation. For the full year 2024, platform service account for roughly 53% of our total loan volume and 58% of the year-end loan balance. We expect the ratio to be roughly stable in the near term.

在季節性融資環境下，整體融資成本較上季穩定。平台服務輕資產收入為15.9億元人民幣，第三季為14.7億元人民幣，去年同期為12.5億元。年比成長主要得益於ICE和其他加值服務的強勁貢獻，足以抵銷資本化貸款便利化的下降。預計2024年全年，平台服務約占我們總貸款量的53%和年末貸款餘額的58%。我們預計該比率在短期內將大致保持穩定。

During the quarter, average IRR of loans we originated and or facilitated was 21.3% compared to 21.4% in prior quarter. Looking forward, we expect pricing to be fluctuating around this level for the coming quarters. Sales and marketing expenses increased 25% Q-on-Q but declined 5% year-on-year. The sequential increase was mainly due to increased customer activity and the typical Q4 seasonality.

本季度，我們發放或促成的貸款平均內部報酬率 (IRR) 為 21.3%，而上一季為 21.4%。展望未來，我們預計未來幾季價格將在這個水平附近波動。銷售和行銷費用較上季成長25%，但年減5%。連續成長主要由於客戶活動增加和第四季的典型季節性。

We added approximately 1.69 million new credit line users in Q4 versus 1.58 million in Q3. We will continue to make timely adjustment to the pace of the new user acquisition based on macro conditions from time to time and further diversify our user acquisition channels and improve user engagement and retention. Meanwhile, we will also continue to focus on reenergizing existing user base as repeat borrowers historically contribute the vast majority of our business.

我們第四季新增了約 169 萬名信用額度用戶，而第三季則為 158 萬名。我們將繼續根據宏觀情況及時調整新用戶獲取的節奏，進一步豐富用戶獲取管道，提高用戶參與度和留存率。同時，我們也將繼續致力於重振現有用戶群，因為從歷史上看，重複借款人貢獻了我們業務的絕大部分。

90-day delinquency rate was 2.09% in Q4 compared to 2.7% in Q3. Day 1 delinquency was 4.8% in Q4 versus 4.6% in Q3. 30-day collection rate was 88.1% in Q4 versus 87.4% in Q3. Another key risk metrics C-M2, which represents the outstanding delinquency rate after 30-day collection improved slightly Q-on-Q to 0.57% with higher loan volume. We are comfortable with our current risk exposure, and we expect to see relatively stable risk metrics in the coming months.

第四季 90 天拖欠率為 2.09%，第三季為 2.7%。第四季第一天拖欠率為 4.8%，第三季為 4.6%。第四季 30 天收款率為 88.1%，第三季為 87.4%。另一個關鍵風險指標 C-M2，代表 30 天收款後的未償還拖欠率，隨著貸款量的增加，較上季略有改善，為 0.57%。我們對目前的風險敞口感到滿意，並預計未來幾個月風險指標將相對穩定。

Under current macro conditions and geopolitical uncertainties, we continue to take a prudent approach to book provisions against potential credit losses. Total new provision for risk-bearing loans in Q4 were approximately RMB2.07 billion versus RMB1.63 billion in Q3. The increase in new provision was mainly due to increase in risk-bearing loan volume Q-on-Q and higher provision booking ratios. Write-backs of previous provisions were approximately RMB1.02 billion in Q4 versus RMB910 million in Q3. Provision coverage ratio, which is defined as total outstanding provisions divided by total outstanding delinquent risk-bearing loan balance between 90 and 180 days were 617% in Q4, a historical high compared to 482% in Q3.

在當前宏觀條件和地緣政治不確定性的情況下，我們繼續採取審慎的方式提列潛在信用損失準備金。第四季風險貸款新增自撥總額約20.7億元人民幣，第三季為16.3億元。新增撥備增加主要由於風險貸款規模較上月增加及撥備提列比例提高。第四季，原撥備回撥約為人民幣 10.2 億元，第三季為 9.1 億元。撥備覆蓋率（即未償還撥備總額除以未償還90至180天之間的拖欠風險貸款總額）第四季為617%，較第三季的482%創歷史新高。

Non-GAAP net profit was RMB1.97 billion in Q4 compared to RMB1.83 billion in Q3. The significant improvement in profitability was mainly due to favorable year-end tax adjustments. Non-GAAP net income per fully diluted ADS was RMB13.66 in Q4 compared to RMB12.35 in Q3 and RMB7.14 a year ago as strong earning growth and proactive share repurchase created significant EPADS accretion. Effective tax rate for Q4 was 1.0% compared to our typical ETR of approximately 15%. The lower than normal ETR was mainly due to benefit from withholding tax provision adjustment as withholding tax rate was lower to 5% in Q4.

第四季非美國通用會計準則淨利為19.7億元人民幣，第三季為18.3億元。獲利能力的大幅提升主要得益於有利的年終稅收調整。第四季度非美國通用會計準則下每股美國存託憑證攤薄淨利潤為 13.66 元人民幣，而第三季度為 12.35 元人民幣，去年同期為 7.14 元人民幣，原因是強勁的盈利增長和積極的股票回購帶來了 EPADS 的大幅增值。第四季的有效稅率為 1.0%，而我們的典型 ETR 約為 15%。ETR 低於正常水準主要是由於第四季度預扣稅準備金調整的好處，因為預扣稅率降至 5%。

With solid operating result and higher contribution from capitalized model, our leverage ratio, which is defined as risk-bearing loan balance divided by shareholders' equity was 2.4 times in Q4, near historical low, we expect to see leverage ratio fluctuate around this level in the near future. We generate approximately RMB3.05 billion cash from operations in Q4 compared to RMB2.37 billion in Q3. The sequential increase in operating cash flow was mainly due to better operating results and lower tax payout. Total cash and cash equivalents and short-term investments was RMB10.36 billion in Q4 compared to RMB9.77 billion in Q3. As we continue to generate strong cash flow from operations, we will further optimize our capital allocation to support our business initiatives and to return our shareholders.

由於經營業績穩健以及資本化模式貢獻較高，我們的槓桿率（定義為風險承擔貸款餘額除以股東權益）在第四季度為 2.4 倍，接近歷史最低水平，我們預計近期槓桿率將在此水平附近波動。我們第四季的營運活動現金流約為人民幣 30.5 億元，而第三季為人民幣 23.7 億元。經營現金流量環比增加主要由於經營績效改善及納稅支出減少。第四季現金及現金等價物及短期投資總額為 103.6 億元，第三季為 97.7 億元。隨著我們繼續從營運中產生強勁的現金流，我們將進一步優化我們的資本配置，以支持我們的業務計劃並回報我們的股東。

During Q4, we, in aggregate repurchased approximately 3.1 million ADS in open market for a total amount of approximately USD107 million, inclusive of commissions at the average price of USD34.5 per ADS. As such, we have completed substantially all of the 350 million share repurchase plan we announced on March 12, 2024. Furthermore, on November 19, 2024, our Board of Directors approved a new share repurchase plan to buy back up to 450 million worth of ADS over a 12-month period starting January 1, 2025. As of March 14, 2025, we have in aggregate purchased approximately 2.2 million ADSs in open market for a total amount of approximately USD86 million, inclusive of commissions at the average price of USD39.7 per ADS under the new share repurchase plan.

第四季度，我們在公開市場共回購了約 310 萬股 A​​DS，回購總額約 1.07 億美元（含佣金），平均價格為每股 ADS 34.5 美元。至此，我們已基本完成 2024 年 3 月 12 日宣布的 3.5 億股回購計畫。此外，2024 年 11 月 19 日，我們的董事會批准了一項新的股票回購計劃，從 2025 年 1 月 1 日起的 12 個月內回購價值最多 4.5 億股 ADS。截至2025年3月14日，我們根據新的股份回購計劃，以平均每股ADS 39.7美元的價格，在公開市場累計回購了約220萬股ADS，總金額約為8,600萬美元（含佣金）。

The proactive execution of our share repurchase plan demonstrate management's confidence and commitment to the future of the company and the management intend to further use share repurchase to accelerate EPADS accretion.

我們積極執行股票回購計畫顯示了管理階層對公司未來的信心和承諾，管理層打算進一步利用股票回購來加速 EPADS 的累積。

In accordance with our current dividend policy, our Board has approved a dividend of USD35 per Class A ordinary share or USD0.70 per ADS for the second half of 2024 to holders of record of Class A ordinary shares and ADSs as of the close of business on April 23, 2025, Hong Kong time to New York time, respectively. We intend to gradually increase the dividend per ADS on a semiannual basis.

根據我們目前的股利政策，董事會已批准向截至 2025 年 4 月 23 日（香港時間至紐約時間）營業時間結束登記在冊的 A 類普通股持有人和美國存託憑證持有人派發 2024 年下半年每股 A 類普通股 35 美元或每股美國存託憑證 0.70 美元的股息。我們計劃每半年逐步增加每股 ADS 的股利。

Finally, regarding our business outlook, while we started to see some candid sign of marginal improvement in user activity, we will continue to take a prudent approach in business planning for 2025 and focus on enhancing efficiency of our operations. For the first quarter of 2025, the company expects to generate non-GAAP net income between RMB1.8 billion and RMB1.9 billion, representing a year-over-year growth between 49% and 58%. This outlook reflects the company's current and preliminary view, which is subject to material changes.

最後，關於我們的業務前景，雖然我們開始看到用戶活動略有改善的明顯跡象，但我們將繼續採取審慎的方式進行 2025 年的業務規劃，並專注於提高營運效率。2025年第一季，公司預計非公認會計準則淨收入在人民幣18億元至人民幣19億元之間，年增49%至58%。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，我想結束我們的準備好的發言。接線員，我們現在可以回答一些問題。

(Operator Instructions)

（操作員指令）

Richard Xu, Morgan Stanley.

摩根士丹利的 Richard Xu。

(spoken in foreign language) Two questions from me. Number one, on the AI, could the management discuss what areas we're seeing the most potential to integrate it maybe Deepseek and other AI modules and what type of efficiency gain could be achieved and any progress so far?

（外語）我有兩個問題。第一，關於人工智慧，管理階層能否討論我們認為最有可能整合人工智慧的領域，例如 Deepseek 和其他人工智慧模組，以及可以實現哪些類型的效率提升，以及迄今為止有何進展？

Second of all, there's been some, obviously, policy support since September of last year. Are we seeing any credit demand recovery at the moment? And what's the credit demand at the moment? Outlook for 2025? Any improved credit outlook as well as supply maybe credit growth outlook.

其次，自去年九月以來，顯然已經出現了一些政策支持。我們目前是否看到信貸需求復甦？目前的信貸需求如何？2025 年的展望？任何改善的信貸前景以及供應都可能促進信貸成長前景。

Okay. Richard, thank you. For your first question about the AI and Deepseek. Actually, it's really a hard topic for now. And over the past year, we are happy to see the great improvement in large language module technology, especially in its writing efficiency. We believe credit is perfect scenario for AI application because this industry has a strong data foundation and a high degree of digitalization.

好的。理查德，謝謝你。對於您關於 AI 和 Deepseek 的第一個問題。事實上，就目前而言這確實是一個很難的話題。而一年來，我們很高興的看到大語言模組技術已經有了很大的進步，特別是在寫入效率方面。我們認為信貸是人工智慧應用的完美場景，因為這個行業擁有強大的數據基礎和高度的數位化。

Last year, we had a lot of AI practice and efficiency work like sales, loan collection, intelligence, marketing and R&D. For tempo, we launched the competitive system to empower our collection team by analyzing our historical phone costs the system can effectively lead users intent and suggest how to effectively communicate with the users.

去年我們在銷售、催收、智慧、市場、研發等方面都進行了許多AI的實務與效率工作。為了節奏，我們推出了競爭性系統來增強我們的收集團隊的能力，透過分析我們的歷史電話成本，該系統可以有效地引導用戶意圖並建議如何有效地與用戶溝通。

So far, the adoption rate of the Capella system among our collecting team has reached about 84%. Deal usage is roughly 30 times per person. And this year, we will allocate more resources to apply AI into our credit assessment, leveraging the AI reasoning capabilities to enhance our ability to analyze credit reports. One example is when we use feature recognition during the loan application process, AI will recognize additional information from the pictures or videos, such as users closing or their roundings. This information can be cross checked with the identity information provided by the users to reduce the fraud risk.

到目前為止，我們收藏團隊對Capella系統的採用率已經達到了約84%。每人可使用該優惠約 30 次。今年我們會投入更多的資源把人工智慧應用到我們的徵信領域，利用人工智慧的推理能力來提升我們分析信用報告的能力。一個例子是，當我們在貸款申請過程中使用特徵識別時，人工智慧會從圖片或影片中識別出額外的訊息，例如用戶的成交情況或他們的四捨五入情況。這些資訊可以與用戶提供的身份資訊進行交叉核對，以降低詐欺風險。

This year, we will put a more portion of our traffic into the end-to-end AI-driven risk decision-making process. We are really looking forward to the results of this test. In addition, we are fully committed to advancing our AI is strategy. We plan to build the trading platform that will empower our whole company. This AI agent could become our digital employees working together with us. We have built the dedicated team to execute this AI Plus strategy.

今年，我們會把更多的流量投入端到端的AI驅動的風險決策流程。我們非常期待這次測試的結果。此外，我們全力致力於推動我們的人工智慧策略。我們計劃建立一個能夠增強我們整個公司能力的交易平台。這個人工智慧代理可以成為我們一起工作的數位員工。我們已經成立了專門的團隊來執行這項AI+策略。

And by the end of the year, we expect this team to grow to around 150 people. In the next one year, we expect one-third of our core business processes will be powered by this agent platform. We have seen strong interest for the engine platform among our financial institution partners. And we believe AI Plus Bank will meet our Technology Solutions business more competitive. And I want to say over the past decade. We have captured the growth opportunities in the next plus era. We are confident that based on our scenario, technology and data, we are also at a good position to capture the AIs opportunities. That's for your first question.

到今年年底，我們預計這個團隊將擴大到 150 人左右。在未來一年內，我們預計三分之一的核心業務流程將由此代理平台提供支援。我們看到金融機構合作夥伴對引擎平台有著濃厚的興趣。我們相信 AI Plus Bank 將使我們的技術解決方案業務更具競爭力。我想說在過去的十年裡。我們抓住了下一個時代的成長機會。我們有信心，基於我們的場景、技術和數據，我們也處於有利位置來抓住人工智慧的機會。這是您的第一個問題。

And for the second question about customer demand. Yes, we did observe some improvements in user activities after September 21. For example, the loan application ratio was 10% higher in Q4 versus Q3. In January, we also noticed a seasonal pickup in credit demand ahead of Chinese New Year, especially from SME users. Then credit demand declined in February due to the holiday, but rebounded in March. Based on the current situation, we expect Q1 loan volume to grow by more than 10% year-over-year. At this stage, it is -- I think it is too early for us to call a macro recovery. We still want to adopt a prudent approach to plan our business for this year. But if the market environment improved meaningfully, we will adjust our strategy timely to capture the growth opportunities. Thank you.

第二個問題是關於客戶需求。是的，我們確實觀察到 9 月 21 日之後用戶活動有所改善。例如，第四季的貸款申請率比第三季高出 10%。1 月份，我們也注意到農曆新年前信貸需求出現季節性回升，尤其是中小企業用戶。隨後，信貸需求在2月份因假期而下降，但在3月份有所反彈。從目前的情況來看，我們預計第一季貸款量將年增10%以上。在現階段，我認為稱之為宏觀復甦還為時過早。我們還是希望採取審慎的態度來規劃今年的業務。但如果市場環境有顯著改善，我們將及時調整策略，把握成長機會。謝謝。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(spoken in foreign language) So my first question is about what's the drivers for the movement of the two early equating pages in Q4, including Taiwan delivered ratio and collated collection ratio what's the latest trend in Q1 and the outlook going forward?

（外語）所以我的第一個問題是，第四季度兩個早期等值頁面變動的驅動因素是什麼，包括台灣交付率和整理收集率，第一季的最新趨勢是什麼，未來的前景如何？

And second question is about the net tariff outlook which was started by management previously at around slightly above 5% for the full year. So based on your related results, and your operation into this year so far. So what's the -- is there any adjustment to this guidance?

第二個問題是關於淨電價前景，管理階層之前曾預計全年淨電價將略高於 5%。因此根據您的相關結果以及您今年迄今為止的營運情況。那麼，這個指導有什麼調整嗎？

(interpreted) Okay. Let me do the translation for Mr. Zheng. First, let me explain how we monitor our risk internally. We usually look at both the day 1 delinquency rate and the 30-day collection rate together because individual matrix can fluctuate for various reasons. What we focus on more is the C2M2 ratio which is the delinquency range after a 30-day traction period. Based on this metric, our risk level is very, very stable.

（翻譯）好的。讓我為鄭先生做翻譯。首先，讓我解釋一下我們如何內部監控風險。我們通常會同時考慮第 1 天的拖欠率和 30 天的收款率，因為單一矩陣可能會因各種原因而波動。我們更關注的是C2M2比率，也就是30天牽引期後的拖欠範圍。基於這個指標，我們的風險等級非常非常穩定。

Now about the slight increase of our day 1 delinquency rate and the collection rate compared to Q3, it was mainly due to the optimization we've made to our repayment reminders strategy. We reduced the coverage of our early reminder by about 13% to improve unit experience without compromising our loss rate. As a result, some of our high-quality users is the repayment on the due date, but today quickly caught up. That's why you will see a small increase in both day-one delinquency rate and the collection rate. but it didn't have any meaningful impact on our actual credit losses.

現在關於我們第一天的拖欠率和收款率與第三季度相比略有上升，這主要是由於我們對還款提醒策略進行了優化。我們將早期提醒的覆蓋範圍減少了約 13%，以在不影響損失率的情況下改善單位體驗。結果，我們的一些優質用戶本來是到期還款的，但今天很快就追上了。這就是為什麼你會看到第一天拖欠率和收款率都有所上升。但它對我們的實際信用損失沒有任何重大影響。

Our risk performance in January and February was pretty much in line with Q4, with overall risk levels remaining stable. I also want to emphasize that we are not aiming to reduce our risk to the absolute lowest level as it doesn't serve the best interest of the company. Right now, with a decent level of take rate we have a solid margin opportunity to experiment with new strategies and find a better balance between growth and risk.

我們一月份和二月的風險表現與第四季基本一致，整體風險水準保持穩定。我還想強調的是，我們的目標並不是將風險降低到絕對最低水平，因為這不符合公司的最佳利益。目前，憑藉良好的接受率，我們有充足的利潤機會來嘗試新的策略，並在成長和風險之間找到更好的平衡。

Okay. And Alex, I will respond to your second part of the question about the take rate. As you know, the -- throughout 2024, we have been on a steady improvement trend in trade grade as we reduce the risk and with the funding costs continue to trending lower around last year. So by the end of last year, in Q4, our take rate net approach to 6%. So that's a trend for last year. And obviously, there are some one-off factors, as you guys know, for example, the mix change on the revenue recognition different between the second half and first half. But excluding all these kind of one-off factors, I think we're looking at for this year. It's a reasonable assumption.

好的。亞歷克斯，我將回答你關於接受率的第二部分問題。如您所知，在整個 2024 年，隨著風險的降低以及融資成本在去年左右繼續呈下降趨勢，我們的貿易等級一直呈穩步改善趨勢。因此，到去年年底，也就是第四季度，我們的淨利率接近 6%。這是去年的趨勢。顯然，正如你們所知，存在一些一次性因素，例如下半年和上半年收入確認的組合變化不同。但排除所有這些一次性因素，我認為我們正在考慮今年的情況。這是一個合理的假設。

As you mentioned, we achieved sort of a 5% above kind of a take rate for the year. And overall, we as our CRO just mentioned, we have enough sort of cushion in our take rate, all our risk metrics that enable us to actually do a little bit testing around the margin. If we see the opportunity, which could be resulted by the macro environment change or could be resolved by the user activity change if we see the opportunity, we will take that and try on the margin to see whether we can bring the incremental marginal profitability on top of our sort of base case. So that will be the process we will continue to pushing throughout 2025. The end results or the ultimate goal is to really drive higher profit -- total profit on top of the sort of the base case there. So that's our approach to looking at this year's profitability and this year's kind of a take rate.

正如您所說，我們今年的收購率提高了約 5%。總體而言，正如我們的 CRO 剛才所提到的，我們的收費率有足夠的緩衝，所有風險指標都使我們能夠在利潤率方面進行一些測試。如果我們看到機會，這可能是宏觀環境變化的結果，也可能是透過用戶活動變化解決的，如果我們看到機會，我們就會抓住它，並在邊際上嘗試，看看我們是否能夠在基本情況的基礎上帶來增量邊際盈利能力。所以這將是我們在 2025 年繼續推動的進程。最終結果或最終目標是真正實現更高的利潤——在基本情況之上的總利潤。這就是我們看待今年獲利能力和今年的接受率的方法。

Cindy Wang, China Renaissance.

Cindy Wang，中國復興公司。

(spoken in foreign language) So I have a question related to the regulation side. So last week, National Financial Regulatory Administration issued a notice requiring financial institutions to promote consumer finance and boost consumption -- to boost consumption in China. So how do you see the new policy impact to the overall industry and the company?

（用外語說）所以我有一個與監管方面相關的問題。因此，國家金融管理局上週發布通知，要求金融機構推動消費金融，促進消費，以促進中國消費。那麼您如何看待新政策對整個產業和公司的影響？

Okay, Cindy. I'm glad you mentioned this. It's really a big news for our industry. We believe this document and a very positive signal. And we are very encouraged. It is very clear that the government's direction is to boost consumption by encouraging the development of consumer credit industry. And I think there will be a series of policies to support that direction. I think we noticed three details in the document. The first, increasing the supply of consumer loans, which means support in terms of monetary policy and liquidity.

好的，辛蒂。我很高興你提到這一點。這對我們的產業來說確實是個大新聞。我們認為這份文件是一個非常正面的訊號。我們感到非常鼓舞。很顯然，政府的方向是鼓勵消費信貸產業的發展，拉動消費。我認為將會有一系列政策來支持這個方向。我認為我們注意到了文件中的三個細節。第一，增加消費貸款的供給，也就是貨幣政策、流動性方面的支持。

And secondly, they encourage financial institutions to increase loan volume and fair reasonable terms of for loan products, which means that the regulator will provide more flexible space for financial institutions. And thirdly, they emphasize the consumer protection and providing support for users who have difficulty in repayment. In a word, the regulators have fully recognized the value of consumer finance in boosting consumption. Therefore, we expect that the regulator environment will remain relatively stable, leaving enough more room to innovate and serve our customers. Thank you.

其次，鼓勵金融機構增加貸款規模，制定公平合理的貸款產品條款，這意味著監管部門將為金融機構提供更靈活的空間。第三是重視消費者保護，為還款困難的用戶提供支援。總而言之，監管層對消費金融在促進消費方面的作用是充分認可的。因此，我們預計監管環境將保持相對穩定，為創新和服務客戶提供足夠的空間。謝謝。

Emma Xu, Bank of America Securities.

美國銀行證券的 Emma Xu。

(spoken in foreign language) So I have a question about the funding cost. So is your funding cost continuing to decline? And what's the lowest level you think the folding cost can go to?

（用外語說）所以我對融資成本有個疑問。那麼你們的融資成本是否持續下降了？您認為折疊成本可以達到的最低水準是多少？

In terms of funding costs, over the past few years, our funding costs have continued to decline even much faster compared to the LTR. This is partially driven by the risk cuts but more driven by the demand oversupply of consumer credit assets. And in the future, if macro improves, the supply and the demand situation will also change. And we always emphasize that financial institutions have their operating costs. The current cost of funds has already approved the bottom line of financial institutions. And so this is -- there is a limited room for further decline. In addition to the funding provided by financial institutions, a significant portion of our funding comes from ABS. We will continue to issue more ADSs this year to further optimize our funding structure. So hope we can achieve further decline in overall funding cost.

在融資成本方面，過去幾年來，我們的融資成本持續下降，甚至比LTR下降得更快。這部分是由於風險削減，但更重要的是由於消費信貸資產的需求過剩。而且未來如果宏觀環境好轉，供需情勢也會改變。而我們一直強調，金融機構有其營運成本。目前的資金成本已經突破了金融機構的底線。因此，進一步下滑的空間有限。除了金融機構提供的資金外，我們的資金很大一部分來自ABS。我們今年將繼續發行更多ADS，以進一步優化我們的資金結構。所以希望我們能夠實現整體融資成本的進一步下降。

Yes. I Just -- Emma, I just want to add a couple of points. So basically, you can see there are three factors to really drive the funding cost to external and one internal. The two externa are on the LPI obviously, is that if you see the reduction in LPR, it will more or less kind of pass through to us a little bit. But at the same time, the supply-demand situation will also have the impact on the funding cost, in particular, if the macro situation is getting a little bit hot, then you will -- you may run into a short of a fund kind of environment overall, that certainly will put some pressure on our funding costs there. So that's two external factors.

是的。我只是──艾瑪，我只想補充幾點。因此基本上，你可以看到有三個因素真正推動了融資成本向外部轉移，一個向內部轉移。這兩個外部因素顯然都與 LPI 有關，如果看到 LPR 下降，它或多或少會對我們產生一定的影響。但同時，供需狀況也會對融資成本產生影響，特別是如果宏觀情況變得有點熱，那麼你可能會陷入整體基金短缺的環境，這肯定會對我們的融資成本帶來一些壓力。這是兩個外在因素。

The internal one, on the ABS side, last year, we did about 100 -- I'm sorry, 15 billion, a little bit over 15 million in ADS issuance. And which represent about [20%-some] increase over the year before. I think at least from our planning perspective, we try to maintain this kind of a year-over-year growth pace for this year. If we had achieved that will certainly help us from a mix perspective, reduce the overall funding cost a little bit. But net-net, given we are how low we are already be, so there's limited -- the space in terms of downward movement will still be quite limited. Thank you.

內部方面，在 ABS 方面，去年我們發行了大約 100——抱歉，150 億，略高於 1500 萬的 ADS。與前一年相比，增長了約 [20% 左右]。我認為至少從我們的規劃角度來看，我們今年將努力維持這種年成長速度。如果我們實現了這個目標，從組合角度來看肯定會對我們有所幫助，稍微降低整體融資成本。但考慮到我們已經處於多麼低的水平，因此向下移動的空間仍然相當有限。謝謝。

Yada Li, CICC.

李亞達，中金公司。

(spoken in foreign language) Fellow management, my question is about the shareholders' return. I was wondering you expect to deliver more value to the shareholders and how to view the sustainability and there is still potential for future growth? That's all.

（外語）各位管理朋友，我的問題是關於股東回報的。我想知道您希望為股東帶來更多價值，以及如何看待永續性以及未來是否還有成長潛力？就這樣。

Sure. Thank you, Yada. I'll take this one. We have been very committed to returning value to our shareholders in the past couple of years. And we are looking at -- if you look at the 2024, the actual payout almost represent 100% of our earnings for 2023 there. And so going forward, we have been saying that we try to maintain a 70%-plus payout ratio for the next few years.

當然。謝謝你，Yada。我要這個。在過去幾年裡，我們一直致力於為股東帶來回報。我們正在考慮——如果你看看 2024 年，實際支出幾乎占我們 2023 年收益的 100%。因此，展望未來，我們一直在說，我們將努力在未來幾年保持 70% 以上的派息率。

And given that we also have a target to kind of shrink our share base by a significant percentage. So we put the current priority and also maybe the next year's priority into the share buyback side, and we have the current $450 million share buyback program running so far in first quarter, even though our share prices have been moving up quite significantly. We still maintain a very consistent pace in terms of executing the current $450 million buyback program. And we intend to continue to do so for the remainder of the year. If there's opportunity to arise, we also may consider to accelerate the buyback program down the road.

鑑於我們還有一個目標，即將我們的股票基礎大幅縮減。因此，我們將目前的優先事項以及明年的優先事項放在股票回購方面，儘管我們的股價已經大幅上漲，但我們目前在第一季已經實施了 4.5 億美元的股票回購計畫。我們在執行目前 4.5 億美元回購計畫方面仍然保持非常穩定的步伐。我們打算在今年剩餘時間繼續這樣做。如果有機會，我們也可能會考慮加快回購計畫。

On the dividend side, given the priority for now is on the buyback, we try to achieve a continued increased per share dividend on the semiannual basis. For example, this quarter, we declared a $0.70 per ADS dividend versus six months ago, that's only about $0.60. So it's a pretty significant rate in dividends. And you should expect that the dividend per share number to continue increase over the course of next few dividends, given that we are shrinking our share base quite significantly, and we also have to meet the Board authorized at least 20% dividend payout ratio. So mathematically, you have to see an increased DPS in the going-forward basis there. And in the long run, once we achieve our sort of share repurchase target, which may be about two years down the road, we will, at that time, reconsider the mix between the buyback and the dividend, but that's still a little bit long time away. So for now, the priority is still be on the buyback side. Thank you.

在股息方面，鑑於目前的重點是回購，我們試圖實現每半年每股股息的持續成長。例如，本季我們宣布每股 ADS 股息為 0.70 美元，而六個月前僅為 0.60 美元左右。因此，這是相當可觀的股息率。並且，考慮到我們的股本規模正在大幅縮減，您可以預期未來幾次股息中每股股息將繼續增加，我們還必須滿足董事會授權的至少 20％ 的股息支付率。因此從數學上來說，你必須看到未來 DPS 的增加。從長遠來看，一旦我們實現了股票回購目標，大概還需要兩年時間，到時候我們會重新考慮回購和股利之間的組合，但這還需要一段時間。所以目前來說，回購仍是當務之急。謝謝。

Thank you. There are no further questions at this time. I'll now hand back to management for closing remarks.

謝謝。目前沒有其他問題。現在我將把發言交還給管理階層，請他們作結束語。

Okay. Thank you, everyone, to joining us for today's conference. We are very efficient to make the call going very quickly. And we saw -- but if you have any additional questions, please feel free to contact us off-line. Thank you.

好的。感謝大家參加今天的會議。我們的效率非常高，能夠快速完成通話。我們看到了——但如果您有任何其他問題，請隨時線下與我們聯繫。謝謝。

That does conclude our conference for today. Thank you for participating. You may now disconnect.

今天的會議就到此結束了。感謝您的參與。您現在可以斷開連線。

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.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。