Yiren Digital Ltd (YRD) 2024 Q4 法說會逐字稿

Good day, and welcome to the Yiren Digital fourth quarter and fiscal year 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference call over to Ms. Keyao He. The floor is yours, ma'am.

大家好，歡迎參加宜人數字第四季和2024財年財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將電話會議轉給何克瑤女士。現在請您發言，女士。

Thank you, operator. Good morning, and good evening, everyone. Today's call features the presentation by the Founder, Chairman and CEO of CreditEase, our CEO; Mr. Ning Tang; and our CFO, Mr. Yuning Feng. There will be a Q&A session after the prepared remarks.

謝謝您，接線生。大家早安，晚上好。今天的電話會議主要由宜信創辦人、董事長兼執行長、我們的執行長進行演講；唐寧先生；以及我們的財務長馮雲寧先生。準備好的發言後將有一個問答環節。

Before beginning, I would like to remind you that discussions during this call contain forward-looking statements made under the safe harbor provision of US Private Securities Litigation Reform Act of 1995. Such statements affected risks, uncertainties and factors that can cause actual results to differ materially from those contained any such statements. Study information regarding to the risks, uncertainties or factors is recorded in our filings with the US Securities and Exchange Commission.

在開始之前，我想提醒您，本次電話會議中的討論包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。此類聲明影響風險、不確定性和因素，可能導致實際結果與此類聲明中的結果有重大差異。有關風險、不確定性或因素的研究資訊記錄在我們提交給美國證券交易委員會的文件中。

We do not undertake any obligation to update any forward-looking statements as required under the relevant law. During the call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and assess our operating performance.

我們不承擔根據相關法律要求更新任何前瞻性陳述的義務。在電話會議中，我們將參考某些非公認會計準則財務指標和補充指標來審查和評估我們的營運績效。

This non-GAAP financial measures are not intended to be considered in operation or as a substitute with the net information to test and presented in accordance with the US GAAP. With information about these non-GAAP measures and reconciliations to GAAP measures, please refer to our earning press release.

此非公認會計準則財務指標無意在操作中被視為或作為淨資訊的替代品來測試和按照美國公認會計準則呈現。有關這些非 GAAP 指標以及與 GAAP 指標的調節的信息，請參閱我們的收益新聞稿。

I will now pass it to Ning for opening remarks.

現在我請寧總書記致開幕詞。

Thank you all for joining our earnings conference call today. We closed out the year on a strong note, delivering another solid quarter of results that were in line with our previous guidance. The year 2024 marked a significant milestone for us, driven by four key achievements.

感謝大家參加我們今天的收益電話會議。我們以強勁的業績結束了這一財年，又取得了一個穩健的季度業績，符合我們先前的預期。2024 年對我們來說是一個重要的里程碑，由四項關鍵成就推動。

Firstly, we reshaped and upgraded customer segments for our financial services business, significantly improving asset quality and paving the way for long-term sustainable development. Secondly, we made meaningful progress in the development and application of AI by integrating our proprietary AI system throughout our operations including customer acquisition, customer service and asset management, we are seeing significant improvements in operational efficiency and user experience.

一是重塑升級金融服務客戶群，資產品質顯著提升，為長期永續發展奠定基礎。其次，我們透過將專有的人工智慧系統整合到我們的整個營運過程中，包括客戶獲取、客戶服務和資產管理，在人工智慧的開發和應用方面取得了有意義的進展，我們看到營運效率和用戶體驗的顯著改善。

Thirdly, our international business steadily made progress throughout the year, meeting our phase objectives, and achieving profitability while expanding our operations in the Philippines. We are also working to replicate this success in more countries and regions moving forward.

第三，國際業務全年穩步推進，基本完成階段性目標，在菲律賓業務拓展的同時實現盈利。我們也正在努力在更多國家和地區複製這一成功。

Lastly, our insurance brokerage business is actively adopting digitization and internal driven model, while the traditional model continues to be a major revenue contributor for this segment, social media has emerged as an increasingly viable channel for client acquisition.

最後，我們的保險經紀業務正在積極採用數位化和內部驅動模式，雖然傳統模式仍然是這一部門的主要收入貢獻者，但社群媒體已成為獲取客戶的越來越可行的管道。

To capitalize on this trend, we have established a dedicated team focusing on social media to drive conversion rates and further expand our digital footprint. Together, these achievements are laying a solid foundation for our next phase of higher quality growth. One that will continue to create value for our stakeholders in the years ahead.

為了利用這一趨勢，我們成立了專注於社群媒體的專門團隊，以提高轉換率並進一步擴大我們的數位足跡。這些成績為我們下一步實現更高品質的成長奠定了堅實的基礎。在未來的幾年裡，它將持續為我們的利害關係人創造價值。

Now I will go into details of our operational highlights for the quarter. Our Financial Services business continued to grow during the fourth quarter of 2024, with total loan volume reaching RMB15.4 billion, a 32% year-over-year increase.

現在我將詳細介紹本季的營運亮點。2024 年第四季度，我們的金融服務業務持續成長，總貸款額達到 154 億元，年增 32%。

The number of borrowers remained stable quarter-over-quarter at RMB1.6 million and grew 14% from the same period last year. For the full year 2024, total loan volume reached RMB53.6 billion, representing an impressive 49% increase from the previous year surpassing our internal target.

借款人數量較上季維持穩定，為160萬元，較去年同期成長14%。2024年全年，貸款總額達536億元人民幣，較前一年大幅增加49%，超出了我們的內部目標。

At the same time, our [ethan] lending platform maintained strong popularity with 4.5 million monthly active users in the fourth quarter, a 27% year-over-year increase. As I mentioned earlier, we are seeing clear improvements in asset quality.

同時，我們的[ethan]借貸平台保持強勁人氣，第四季每月活躍用戶數達450萬，較去年同期成長27%。正如我之前提到的，我們看到資產品質明顯改善。

For full year 2024, average first payment default rate for 30 days rate dropped by 13 basis points compared to 2023, reflecting stronger anti-fraud measures. As of December 31, 2024, delinquency rates for 1 to 30 day and 61 to 90 day bucket decreased by 20 basis points and 10 basis points, respectively, from the previous quarter.

2024 年全年，30 天平均首次付款違約率較 2023 年下降 13 個基點，反映出反詐欺措施更有力。截至 2024 年 12 月 31 日，1 至 30 天和 61 至 90 天期限的拖欠率分別較上一季下降了 20 個基點和 10 個基點。

Moreover, M1 recovery rates in the fourth quarter further rose by 23 basis points to reach a record high. The upgrade in our customer base has clearly established a strong foundation for our long-term growth. On the funding side, we made substantial progress in expanding our funding partnerships by adding 22 new funding partners in 2024. Our funding costs in the fourth quarter saw another 23 basis points decline sequentially translating into a total decline of 210 basis points compared to the same period in 2023.

此外，第四季M1回升率進一步上升23個基點，創歷史新高。客戶群的升級顯然為我們的長期成長奠定了堅實的基礎。在融資方面，我們在擴大融資合作夥伴關係方面取得了實質進展，2024年增加了 22 個新的融資合作夥伴。我們第四季的融資成本季減了 23 個基點，與 2023 年同期相比總共下降了 210 個基點。

Moving on to our international business. We have upgraded our customer mix and shifted towards higher-quality borrowers with a better credit performance in the Philippines. This led to a noticeable improvement in profitability which has already turned positive and reached the high single digits.

繼續討論我們的國際業務。我們升級了客戶結構，並轉向菲律賓信用表現更好的高品質借款人。這導致獲利能力明顯改善，已轉為正值並達到高個位數。

Currently, monthly loan volumes are in the RMB30 million to RMB40 million range with total loan volume in 2025 expected to double compared to 2024. We are also exploring opportunities to replicate this successful model in other countries and regions and look forward to updating you on our progress in the near future.

目前，每月貸款額在 3,000 萬至 4,000 萬元人民幣左右，預計 2025 年的總貸款額將比 2024 年翻倍。我們也在探索在其他國家和地區複製這一成功模式的機會，並期待在不久的將來向您通報我們的進展。

On our AI strategy, we have constantly prioritized the development and the application of AI as a key element of our overall strategy homework. In 2024, research and development expenses totalled RMB412 million, a year-over-year increase of 177%, of which approximately RMB0.2 billion was allocated specifically to AI development.

在人工智慧策略上，我們始終以人工智慧的研發和應用作為我們整體策略作業的關鍵要素。2024年研發費用總計4.12億元，年增177%，其中約2億元專門用於人工智慧開發。

We have continuously built and refined our AI models for collections, customer service, quality assurance and overseas identity verification, among other uses. These models have been widely applied across various areas of our operations, resulting in significant cost savings and improvements in efficiency.

我們不斷建立和完善我們的人工智慧模型，用於收款、客戶服務、品質保證和海外身份驗證等用途。這些模型已廣泛應用於我們營運的各個領域，從而顯著節省了成本並提高了效率。

For our domestic business operations, as of the end of fourth quarter, 81% of day 1 overdue cases were handled by AI robots, reducing labor cost savings by [RMB1.9 billion] during the quarter alone and approximately RMB9 million for the year.

就國內業務而言，截至第四季度末，81%的逾期日案件由AI機器人處理，僅本季度就節省了[人民幣19億元]的人工成本，全年節省了約人民幣900萬元。

Our AI-powered intelligent funding routing system significantly enhance the funding allocation efficiency by optimizing fund distribution based on the borrower's credit performance, funding partners risk preference and funding costs. This resulted in cost savings of RMB44 million for the year. We recently integrated DeepSeek which is expected to further enhance our deep thinking and customer analysis capabilities, providing further support to our customer service strategy.

我們的人工智慧資金路由系統根據借款人的信用表現、融資合作夥伴的風險偏好和融資成本優化資金分配，顯著提高資金配置效率。全年節省成本4400萬元。我們最近整合了DeepSeek，預計這將進一步增強我們的深度思考和客戶分析能力，為我們的客戶服務策略提供進一步的支援。

For overseas operations in the Philippines, our AI-powered IT verification model achieved an accuracy rate of over 96% during the quarter. We also applied our AI systems to loan collections, which improves the customer service, the customer experience and reduce the customer complaints by 47% in the fourth quarter.

對於菲律賓的海外業務，我們基於人工智慧的 IT 驗證模型在本季度實現了超過 96% 的準確率。我們也將人工智慧系統應用於貸款催收，從而改善了客戶服務和客戶體驗，並在第四季度將客戶投訴減少了 47%。

Moving on to our insurance corporate business, 2024 was a challenging year for the entire industry due to regulatory changes with lower interest rates and the impact of the unified commissions and fees in reporting and underwriting policy.

談到我們的保險公司業務，由於利率下降等監管變化以及報告和承保政策中統一佣金和費用的影響，2024 年對於整個行業來說都是充滿挑戰的一年。

Total premiums in 2024 were over RMB4.4 billion down 10% year-over-year. Specifically, life insurance products saw strong renewal rates of 96% in the fourth quarter, much higher than the industry average reflecting higher client recognition of our services. Moreover, as I mentioned earlier, we have been proactively expanding our business online with the support of AI-driven customer service and AI-generated content.

2024年總保費逾44億元，較去年同期下降10%。具體而言，壽險產品第四季續保率高達96%，遠高於業界平均水平，客戶對我們服務的認可度更高。此外，正如我之前提到的，我們一直在積極地借助人工智慧驅動的客戶服務和人工智慧生成的內容在線上擴展我們的業務。

As of the end of 2024, we have successfully onboarded over 10,000 users who are now engaged with us and in the conversion pipeline, making a strong start. Meanwhile, additional efforts to create synergies between our lending platform and insurance services are beginning to pay off by offering customized insurance products to our borrowers, growth momentum remains strong, with December premiums from this channel, increasing more than 8 times compared to September 2024.

截至 2024 年底，我們已成功吸收超過 10,000 名用戶，這些用戶現在與我們互動並處於轉換管道中，這是一個很好的開始。同時，透過為借款人提供客製化的保險產品，我們在藉貸平台和保險服務之間創造協同效應的額外努力開始取得成效，增長勢頭依然強勁，12 月份來自該渠道的保費與 2024 年 9 月相比增長了 8 倍以上。

For our property insurance, Total premiums reached over RMB2.0 billion in the -- in the full year 2024, driven by our strategy of strong channel partnerships and the tailored solutions. Currently, we have over 120 institutional partners, including more than 40 in the property insurance sector, and we offer more than 1,100 property insurance products.

就我們的財產險而言，在強大的通路合作夥伴和量身定制的解決方案的戰略推動下，2024 年全年總保費將超過 20 億元。目前，我們擁有超過120家機構合作夥伴，其中在財產險領域合作夥伴超過40家，提供超過1,100種財產險產品。

Moving forward, we will maintain new strategy and explore collaborative opportunities in additional technological and emerging fields, including AI, advanced modelling, and the low altitude economy sector. Just some recent exciting news to share our insurance workage up his young insurance brokers has successfully crafted an insurance solution for 2 Robinson R 44 helicopters operated by Hing Tianjin General Aviation Company Limited. We look forward to sharing more good news in the quarters to come.

展望未來，我們將維持新策略，探索更多技術和新興領域的合作機會，包括人工智慧、高階建模和低空經濟領域。最近有令人興奮的消息要分享，我們的保險工作由年輕的保險經紀人完成，已成功為天津興業通用航空有限公司運營的 2 架羅賓遜 R 44 直升機制定了保險解決方案。我們期待在未來幾季分享更多好消息。

Last but not least, we are pleased to announce a cash dividend for the second half of 2024 of USD0.22 per ADS. This dividend is expected to be paid on or around May 15, 2025, to holders of the company's ordinary shares and ADS as of the close of business on April 30, 2025, Hong Kong time and New York time, respectively.

最後但同樣重要的一點是，我們很高興地宣布 2024 年下半年的現金股息為每股 ADS 0.22 美元。這筆股利預計將於 2025 年 5 月 15 日左右支付給截至 2025 年 4 月 30 日香港時間和紐約時間營業結束時的公司普通股和美國存託憑證持有人。

In conclusion, AI development and exploration, high-quality growth and global expansion will be the key theme of our business journey in 2025. We will continue to embrace the changes shaping our current era, consistently exploring, and refining our strategies to deliver sustainable long-term returns for both our company and our shareholders.

總而言之，AI的發展與探索、高品質成長和全球化擴張將是我們2025年業務旅程的主題。我們將繼續擁抱時代的變化，不斷探索和完善我們的策略，為公司和股東帶來可持續的長期回報。

Now I'll pass it to Yuning, who will go through our financial performance.

現在我將交給雲寧，她將負責介紹我們的財務表現。

Thank you, Ning. Hello, everyone. On this call, I will be focused on our key financial highlights. Please refer to our earnings release and IR deck for further details, both available on our web deck. First of all, we are pleased to report a solid year of strong financial performance, this 2024 full year revenues in the [90%] annual growth, meeting our previous full year guidance.

謝謝你，寧。大家好。在這次電話會議上，我將重點討論我們的主要財務亮點。請參閱我們的收益報告和 IR 演示文稿以獲取更多詳細信息，兩者均可在我們的網絡上找到。首先，我們很高興地報告，這是強勁的財務業績，2024 年全年收入將實現 [90%] 年增長率，符合我們先前的全年預期。

In particular, total revenue fourth quarter of 2024, sustained its growth momentum was [40%] -- a 13% year-over-year increase. In the Financial Services segment, total loan facilitation continued its strong momentum reaching RMB15.4 billion in the fourth quarter, up 32% year-over-year.

尤其是 2024 年第四季的總收入，維持了 [40%] 的成長勢頭——同比增長 13%。在金融服務板塊，第四季貸款促成總額延續強勁勢頭，達到 154 億元，年增 32%。

Loan volume facilitated in full year 2024 reached RMB53.6 billion jumping by 49% compared to 2023. This growth was primarily driven by demand for our small volume home product with a steady increase in demand from repeat higher-quality borrowers.

2024年全年貸款金額達536億元人民幣，較2023年成長49%。這一增長主要得益於對我們的小批量住房產品的需求以及重複高品質借款人的需求穩步增長。

The platform's ability to track and to retain this hyper borrowers that significantly contributed to the overall increase in loan volume. Consequently, revenue from this segment in the fourth quarter grew 34% year-over-year to RMB1,048 million, that's RMB1.048 billion. And revenue for the whole year grew by 38% annually to RMB3.5 billion.

該平台追蹤和留住這些超級借款人的能力極大地促進了貸款總量的成長。因此第四季該部門營業收入年增34%至10.48億元，即10.48億元。全年營業收入年增38%，達35億元。

In the insurance sector, our gross written premium totalled RMB1.1 billion in the fourth quarter 2024 making a 9% year-over-year decline. The year-over-year decline was primarily driven by a significant drop in live insurance sales resulting from ongoing industry-wide impact of regulatory changes and adjustment to our [diagram].

在保險領域，2024年第四季我們的毛承保保費總計人民幣11億元，較去年同期下降9%。年比下降的主要原因是，監管變化和我們業務調整導致全行業持續受到衝擊，導致人壽保險銷售大幅下降。[圖表]。

In fourth quarter, revenue from our insurance segment increased by 8% year-over-year to RMB106 million. This increase was due to higher-than-expected renewal rate for the year of 2024 revenue from Insurance segment reached RMB408 million, down 58% year-over-year, and we expect a double-digit recovery in 2025.

第四季度，我們保險業務收入年增8%至人民幣1.06億元。這一增長是由於2024年的續保率高於預期，保險部門的收入達到人民幣4.08億元，年減58%，我們預計2025年將實現兩位數的復甦。

In the consumption and lifestyle segment, as we strategically scaled back offering during this quarter, the total revenue dropped 25% year-over-year to RMB298 million. Revenue of this segment for the year was more than RMB1.9 billion up 36% year-on-year.

在消費與生活方式領域，由於我們在本季策略性地縮減了產品供應，總收入年減 25% 至 2.98 億元。全年該分部收入超過人民幣19億元，較去年成長36%。

Currently, we are conducting a strategic review of the segment to better understanding potential and identify the best way to serve our customers. With our findings, we will adjust the approach and open to ensuring effectively winter needs.

目前，我們正在對該部門進行策略性審查，以更好地了解潛力並確定服務客戶的最佳方式。根據調查結果，我們將調整方法並有效確保冬季需求。

On the expense side, sales, the marketing spend in the fourth quarter increased 45% year-over-year to RMB298 million. This yearly growth was primarily driven by the rapid growth of our financial services division and get improved marketing strategy aimed at attracting new and high-value customers.

費用方面，銷售、第四季行銷支出較去年同期成長45%至人民幣2.98億元。這項年度成長主要得益於我們金融服務部門的快速成長以及旨在吸引新高價值客戶的改善行銷策略。

Research and development expense increased 246% year-over-year to [RMB165 million]. This is due by ongoing investment in AI enhancement, the development of advanced technology and strategic hiring of specialized AI talent. Automation, servicing, and other operating costs was RMB197 million in the quarter, up 7% year-on-year due to the expansion of our financial service business.

研發費用年增246%，至【1.65億元人民幣】。這是由於對人工智慧增強、先進技術的開發以及對專業人工智慧人才的策略性聘用持續投資。本季自動化、服務和其他營運成本為人民幣 1.97 億元，年增 7%，這得益於我們金融服務業務的擴張。

G&A expenses for the quarter decreased by 16% year-over-year to RMB42 million, this decline reflects our AI-driven efficiency improvement, resulting in labor cost savings. The allowance for contra-asset and conceivable for the quarter was RMB203 million up 103% year-over-year. This is mainly driven by the increase in allowance for accounts receivable and financing receivables, reflecting our prudent response to high uncertainty in future market conditions.

本季的一般及行政開支年減 16% 至人民幣 4,200 萬元，下降反映了我們由人工智慧驅動的效率提升，從而節省了勞動力成本。本季資產減損及可預見費撥備為2.03億元，較去年同期成長103%。這主要是由於應收帳款和應收融資款撥備增加，反映了我們對未來市場狀況高度不確定性的審慎反應。

Provision for contingent liabilities this quarter increased to RMB251 million from reversal of RMB1.5 million in the same period of 2023. This reflects sustained growth in loan volume facilitated under our risk-taking model, which in accordance with our current accounting standards require substantial upfront provisions.

本季或有負債準備金由2023年同期的150萬元人民幣沖銷增加至2.51億元。這反映了我們的風險承擔模式促成的貸款量持續成長，根據我們現行的會計準則，該模式要求大量的前期準備金。

However, the associated guaranteed revenue will be recognized graphically in the profit and loss statement as guaranteed service fees over time. This introduced a timing difference in revenue recognization under this proton model. That said, when assessing our overall loan portfolio in long run, probability will exhibit the new shape trend.

然而，相關的保證收入將在損益表中以圖表形式確認為隨時間推移的保證服務費。這引入了質子模型下收入確認的時間差異。也就是說，當長期評估我們的整體貸款組合時，機率將呈現新的形態趨勢。

In the fourth quarter, the revenue from guaranteed service game reached RMB207 million compared to RMB9 million in the same period last year, reflecting the growing loan volume facility under the risk-taking model.

第四季度，擔保服務遊戲收入達到2.07億元人民幣，去年同期為900萬元人民幣，反映出風險承擔模式下的貸款量不斷增長。

Now on the bottom line, net income for this quarter was RMB331 million decreased 42% year-over-year. The profit margin for the fourth quarter was 23% maintaining a healthy, stable level compared to 24% in the previous quarter. Total net income for the year of 2024 was RMB1,582 million, down 24% compared to the previous year.

整體來看，本季淨利為3.31億元人民幣，較去年同期下降42%。第四季的利潤率為23%，與上一季的24%相比保持了健康、穩定的水平。2024年全年淨利15.82億元，較上年下降24%。

The decline in net income can be attributed to three key factors: First, as previously mentioned, there was a reduction in overall profitability within the insurance business. Second, marketing and R&D expenses increased as we continue to invest in attracting new high-quality borrowers for our financial services segment and enhancing our in-house AI capabilities.

淨利的下降主要有三個原因：首先，如前所述，保險業務整體獲利能力下降。其次，由於我們持續投資吸引新的優質借款人加入我們的金融服務部門並增強我們的內部人工智慧能力，行銷和研發費用有所增加。

And thirdly, substantial upfront provision was allocated due to growth in loan volumes under the risk-taking models. Regarding our cash flow, following a onetime strategic outflow last quarter, our net cash flow from operations normalized debt and the RMB373 million this quarter compared to RMB470 million in the same period last year.

第三，由於風險承擔模式下貸款量的成長，需要預先提列大量的準備金。關於我們的現金流，繼上個季度的一次性戰略性流出之後，我們的經營淨現金流使債務正常化，本季為人民幣 3.73 億元，而去年同期為人民幣 4.7 億元。

On our balance sheet, our cash and cash equivalents remained strong at RMB3.8 billion and we're scoring our financial flexibility and positioning us to capitalize our strategic opportunities. Now regarding shareholder return, we are glad to announce that the company is about to distribute the cash dividends for the second half of 2024 amounting to [USD0.22] per ADS and approximately 20% payout ratio, up from 17% -- 14% for the first half of 2024.

在我們的資產負債表上，我們的現金和現金等價物仍然強勁，為人民幣 38 億元，我們正在評估我們的財務靈活性並定位我們以利用我們的戰略機遇。現在關於股東回報，我們很高興地宣布，公司即將派發 2024 年下半年的現金股息，每股 ADS [0.22 美元]，派息率約為 20%，高於 2024 年上半年的 17% - 14%。

The dividend is expected to be paid out about [May] 15, 2025 and the record date is as of the close of business day on April 13, 2025 based on Hong Kong time, New York time this [tactical]. Moreover, as of December 31, 2024, we have cumulatively repurchased [RMB5.2 million] [ADRs] into the market with a total of approximately USD17.9 million under the 2022 share repurchase program.

預計股息將於 2025 年 5 月 15 日左右支付，記錄日期為 2025 年 4 月 13 日營業日收盤（以香港時間、紐約時間計算）。[戰術上的]。此外，截至 2024 年 12 月 31 日，我們已根據 2022 年股票回購計畫累計向市場回購了 [人民幣 520 萬元] [ADR]，共約 1,790 萬美元。

Lastly, our business outlook. Based on our assessment of current business and marketing conditions, we expect our revenue for the full year of 2025 to stand between RMB5.5 billion to RMB6.5 billion, with a healthy net profit margin. This represents our current and preliminary assessment, which may be subject to changes and uncertainties. And it conclude our remarks.

最後，我們的業務展望。根據對當前業務和市場狀況的評估，我們預計2025年全年收入將在55億元至65億元之間，淨利潤率將保持健康。這代表我們目前的初步評估，可能會發生變更和不確定性。我們的發言到此結束。

Thank you. And operator, we now open for Q&A.

謝謝。接線員，我們現在開始問答環節。

(Operator Instructions)

（操作員指令）

(inaudible) Zhang, [Albertos] Investment.

（聽不清楚）張，[Albertos] 投資。

Hi, it's (inaudible). Thanks for taking my question. I have two questions here quickly. As the Chinese government now relax the regulation, which will the company makes, especially when your competitors may have more positively? Thank you. It's the first question.

嗨，這是（聽不清楚）。感謝您回答我的問題。我這裡很快有兩個問題。隨著中國政府現在放鬆管制，公司將做出哪些舉措，尤其是當您的競爭對手可能採取更積極措施時？謝謝。這是第一個問題。

So the question is about -- as the macro environment becomes more favorable, what is our like action plan?

所以問題是──隨著宏觀環境變得更有利，我們的行動計畫是什麼？

Yes. Yes.

是的。是的。

Okay. So yes, indeed, the macro environment is getting better, and we will continue to drive up repeat borrowing rate? Yes. Now yes, it's below 70%. We want it to be 70% in this year. We are close Yes. So we will try and get there. That will -- yes, make our risk side, yes, stable, and improved -- at the same time, we will do better customer acquisition, smarter customer acquisition.

好的。那麼宏觀環境確實在好轉，我們將繼續提高重複借貸利率？是的。是的，現在是低於 70%。我們希望今年能達到 70%。我們很接近了 是的。因此我們會盡力實現這一目標。是的，這將使我們的風險方面更加穩定和改善，同時，我們將更好地、更明智地獲取客戶。

So we work with like Yes, go in and such platforms, so on to do like a real-time advertising basically, we pick up the prospects to target utilizing our AI-driven analytics model. So that will, yes, make us more kind of proactive in the customer acquisition process.

因此，我們與「是的，進入」這樣的平台合作，然後進行即時廣告，基本上，我們利用人工智慧驅動的分析模型來挑選目標潛在客戶。因此，這確實會讓我們在客戶獲取過程中更加積極主動。

And also, we'll explore more acquisition channels like non-finance like life-related like platforms, applications for more loan volume. And also as our customer mix gets upgraded we will increase average ticket size. Yes, now it's like, yes, 7-K to 8-K. It will further go up likely in the year. But yes, we will keep the risk side stable as I first highlighted -- we'll do that by taking a variety of measures Yes, keep doing a good job on that side.

此外，我們還將探索更多的獲取管道，例如非金融類，例如生活相關的平台、應用程序，以增加貸款量。而且隨著我們的客戶結構升級，我們將增加平均票價。是的，現在就像是 7-K 到 8-K。今年很可能還會進一步上漲。但是的，正如我第一次強調的那樣，我們將保持風險方面的穩定——我們將通過採取各種措施來做到這一點，是的，繼續做好這方面的工作。

And we can also offer better customer experience, I suppose. And yes, further streamlining the application process and yes, upgrading the user interface and so on. So we'll be, yes, more competitive in the Marketplace. Yes. Thank you.

我想我們還可以提供更好的客戶體驗。是的，進一步簡化申請流程，升級使用者介面等等。因此，我們在市場上的競爭力將會更強。是的。謝謝。

Thank you for the answer to the question. And second question is, [conces] long term goals for the overseas business like Worldscale where the business achieved and how much we invest in the overseas business. And do you think the [services] business could be bigger than the domestic business one day? Yes. Thank you.

謝謝你對這個問題的回答。第二個問題是，我們對海外業務的長期目標，例如 Worldscale 的業務取得了什麼成就，以及我們在海外業務上投入了多少。您認為有一天服務業務的規模會超過國內業務嗎？是的。謝謝。

One day, yes. So probably, yes, because of the international market is very, very big. Yes. So it's a big as a domestic market. So yes, I guess, it's quite possible that one day, it will be yes, maybe half up, but we are a bit -- yes, still in early stage right now. So -- but we will try to make the international business, a meaningful revenue contributor in the next year, couple of years, yes, three year time frame.

是的，有一天。所以很有可能，因為國際市場非常非常大。是的。因此，國內市場很大。所以是的，我想，很有可能有一天，它會是的，也許會達到一半，但我們有點——是的，現在還處於早期階段。所以 — — 但我們會努力使國際業務成為未來一年、幾年甚至三年內有意義的收入貢獻者。

Yes. So because -- we can utilize the AI very well in those markets. And Also, we've had a good momentum developed in the Philippines and the success can be replicated -- and we've also done research other than Southeast Asia, we've made the progress, yes, in America and Southern America and also the Middle East and so on. So yes, we are quite optimistic, yes, to grow globally. And that's certainly our -- yes, strategic objective, yes. So because we are a global player. And yes, so -- and our competitive advantages in domestic China, many of them can be applied as we grow globally to other parts of the world. Thank you.

是的。所以因為——我們可以在這些市場好好利用人工智慧。此外，我們在菲律賓的發展勢頭良好，這種成功可以複製——除了東南亞，我們還在其他地方進行了研究，是的，我們在美國、南美、中東等地區也取得了進展。所以是的，我們對全球成長非常樂觀。是的，這當然是我們的策略目標。因為我們是全球參與者。是的，我們在中國國內的競爭優勢，其中許多可以隨著我們在全球的成長應用到世界其他地區。謝謝。

Thank you.

謝謝。

The conference call has now concluded. If you have any further questions, you may contact Yiren's IR department for any follow-ups. Thank you for attending today's presentation. At this time, you may disconnect. Thank you, and have a great day. Thank you.

電話會議現已結束。如果您還有其他問題，可以聯絡宜人投資者關係部門進行後續跟進。感謝您參加今天的演講。此時您可以斷開連線。謝謝您，祝您有愉快的一天。謝謝。