LexinFintech (LX) 28 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to LexinFintech Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Ms. Mandy Dong, Head of IR of Lexin. Please go ahead.

Amber. you, Thank good and Good evening, morning, everyone. Lexin's Call. Conference to XXXX Earnings Quarter Welcome Second

Our it today on earlier results issued were and website. our can IR found be

Joining CRO, Jay James our me and Zheng. Qiao, CFO, Xiao, today are Arvin CEO,

we of safe you press which harbor to this to earnings our also our get applies started, in call. Before like release, remind I'd statement

updates. materially, plans, otherwise During provide overall performance. and our statements. results are based which discuss and forward-looking the statements, actual obligation no management call, will we undertake figures will on Last, Arvin The our we may are estimates, current to refer may forward-looking first projections. to RMB. Jay update in differ stated, business outlook any mentioned and on an update all unless risk

results from via be the in Jay whole go ahead, Lastly, details. I over Chinese, English please. the more then call the his will based will will past, different Jay. delivered turn cover Please note, the Jay's Jay, remarks to AI financial in voice. will give kindly now James version

Good landscape, prudent strategy, everyone. to current my environment with a industry approach to share management Amid adopted have for It our business quarter macroeconomic evening, morning performance and pleasure you the the risk of and and is and second [Interpreted] steady a we good XXXX. analytics. dual-driven adhering data

RMB cash increase profitability million, Revenue year, values improving, the of Based XX.X the our on half return per balance pace, probability XX.X% Directors the Net X.XX RMB dividend standards, the profit GMV at XXX.X billion, quarter-over-quarter. quarter-over-quarter. distribution of and credit of an $X.XXX was of to ADS, of approximately reached approved our with RMB of tightened increasing. In overall quarter, we continuing RMB origination to first has has was in shareholders. managed XXX quarter, Board billion. increase loan the an XX.X% levels been our billion. loan origination During gradually controlled proactively the stood loan risk The total steadily second

let Next, in performance our quarter. on elaborate me business the second

we growth continuously to strengthened a existing management, terms business assets, managed strike asset balance quality, risk between fine In profitability. of resolved and and cleared and

As and model, increase the strictly difficulty] quality and of [Technical strategy, and for controlled deeply strategy low of we quality of channels. in RTA effective the channels, proportion in resulting of result, more hand, optimized, increased comparative newly issued bidding grow implemented new high-quality the assets, than proportion a asset continuously users. On one XX% high-quality the acquisition major optimized a assets specifically

we hand rate volume and approval low based other credit strategy, through approach for utilized This admissions, down to dynamically differentiated pricing, maintaining put high-quality and while the with line other risk low asset user overall the implemented grow on the limit approval On varying increased and of limits the subsequent users exposures. We credit, performance. expand and credit stage the at risk assets new risk. levels tools adjusted

XX% compared new increased customers asset As to by period the of a of compared decreased indicators new for to customer these compared to application measures, by QX, early by payback XX% FPDX new the customer assets high-quality for risk approval rate X%, QX. QX volume further the credit and for The result shortened. decreased proportion

decrease second the the rate users, for quarter, optimized enhanced delinquency in X at quarter. strategy the management existing the in resulting of compared quarter the second beginning assets of the in of the reminders, deduction end Regarding X% overdue we repayment the day to moderately a

users. these the generate of significantly within higher control, efficiency reduction measures as risk such robots negative implemented the hours, risk suggestions of automated clearance, disposal to assets precision can risk tail-end applying reduce transaction customers, users, and we and improve and long-term for improving losses For limit profitability. By handling robots strategy high handling

risk and core of the models, the the building and second quarter, of dimensions upgrade monitoring, management risk of data, management system analysis, further strategies. terms we of capabilities in our deepened In

of provide XX-day the and increased the taken has by capability quarter, end occupancy the of beginning will compared approximately assets, impact a management significant measures its CRO has had existing approximately a peak. improved issued the cycle second session, gradually to leading introduction industry. loan day more overall in risk X.X%, Our risk credit newly core the sector of X%, detailed the with building half by asset in the the compared X assets, quarter, year's quarter, the collection By had risk beginning to the management of quarter. Reflecting second newly that decreased the has entire gradual in drop from next assets the the during the the of the the work, ratio within facilitation last on a the past and to in rate on began of year

For capabilities the match Lexin, risk properly our previous changes. did management market not

risk management business of risk and management seen beginning and our our system year, resilience. have of the at upgrade improvement we very a noticeable risk the comprehensive the capabilities management team after in However, overall

navigate cycles been continuously has strengthening. to through ability Our credit

achieving significant time, our require in in future. gradually that in improvement will more risk the management growth is Although profitability foreseeable the enhance will scale it capabilities, and profitability

growth by Mexican revenue quarter. basis. on the by increased grew to overseas second loan continued XXX% market our volume the quarter-on-quarter a deliver The rapid Regarding in business origination and XX% segment, a

quarter, of great during basis X with by and a issued costs; million, new record quarter, XX compared May we scale investors. our first the funding low. In total points, funding were costs of XXX further ABS number high-quality July, oversubscribed the reaching a by to a RMB Regarding which dropped

quarter, financial go the application telemarketing and XX% in XXX reached enhance that invested preference, risk scenarios models. and in intent more second engage interest high in balancing and with will down, further the further returns. In scale and domestic have we of large development, XX%. institutions recognition accuracy deepening quarter, collaborations second robots significantly scenarios, intent as research to it large collections, risk million accuracy the we improved. by the complementary collection the of AI of In differentiated in as rates loan the As In reached RMB real-time has model telemarketing recognition

service AI systems, well code applications, system, significantly to efficiency representatives in systems, service a writing. quarter and innovative to in multipoint customer For and customer the management of and communication fully large service our the accuracy in staff which as and process address engineered customer concerns, large technology quarter, models, including allowing as programmers' XXX% frontline of includes during Due Asian awards digitization from respond issues, further in and customer service, better model strengthened to of enhancing the management customer tracking negotiation from enhance beginning the the consumer AI be to quickly terms enhancing empowered the was a training very quickly the mechanism, series establishing received code customers' customer banker consumer service sales and protect business rights. programs, These exploration standards of process of a identify second the assistance by respond systems, protection, behavior verification and to the experience tracking of consumer introduction used aim second to Lexin improving measures rights the second processes. of quarter. We the

year, key to path. to the Looking in and ahead continue half prudent adhere of the prioritizing external environment, the the principles, second management focusing we'll the light following to current risk of on

an scale. steady we normal industry First, will down level ensure in growth will risks bring while to we range, promote to

to Over efforts issued refined and the risk healthy we risk of building has improved. first in management and management a have assets and year, have system level. half newly intensified gradually our returned system reasonable capabilities, risk operational The

scenario-based in At and Moving into to line our strategies, our forward, steady pricing operations and the limit customer in segmenting drive we more we appropriately will efforts, refined advantages conducting growth operations, time, will increase continue our leverage by customer products gradually groups. same and more resources credit acquisition invest scale.

we We robust return are achieved the will the that past. as gradually to in have confident profitability level

we high our Lehua consumption activity. user to and frequency boost online Card, e-commerce both Second, user leverage stickiness offline, the business enhance and scenarios and will of

business, premium we highly customers, customer for users offer include For will products range and different could portfolios, cost-effective products segments. a products the wider and for tailored e-commerce to of growing

For and on implementing system, users Le card, across scenarios. different enhance premium will management by among segmentation, acquisition differentiated based activity we customer and rates conversion expanding customer user a

system will overall boost we engagement create exclusive retention. to further and user Additionally, an benefit

continues better actively in engage in rapid optimize growth. steadily market a half currently we expansion. and the exploration. Third, overall of our In actively pursue level Mexico profitability in the We overseas the After that trends we will closely maintaining and gradually will second the is asset as preliminary monitor will risk year, improve. believe exploration, market future, structure business opportunities emerging to more

over Next, to I will our you. hand floor Thank the CRO.

levels, monitoring system, customers, as risk existing newly both strategy risk and quarter, and second management by risk gradual quarter. In assets. we risk to risk of handle new and as assets management lifecycle capability, give for strategic upgrading existing profitability me strategy building let for to enhancing in issued Jay, alerts, second management risk risk and Thanks and risk risk in our a implementing an regarding our risk refined to developing improvement, adhere QX. We risk robots full principle system identification detecting strengthening management our the promptly and capabilities, reduction in a the total upgrade management consistently achieved performance update continued well capabilities, [Interpreted] the

Day X.X% quarter. by the the to decreased compared in We And XX in X%, risk the Specifically, of of rate at the gradually start trend of has value half delinquency quarter second second to compared about the by for assets the anticipate end approximately up absolute second X decreased first rate, FPDX rate for collection continue the days will new levels the the quarter. by from about assets that year. in beginning the quarter, the XX%, the improved, total downward quarter. in of

measures me on Let in various implemented QX. we have elaborate

high-quality and in On source we modeling. introduction scenario-based the have data of joint data depth the front, intensified customized

for ineffective also phased out laying have data data solid replaced and foundation a thereby risk source, third-party management. We

assessment On lines. we various have of the system the for front upgrade of and risk models, optimization completed model business development,

partners proprietary reaching data continued introduce to we new underlying First, data in with ecosystem dimension. the

detecting optimize by the more This to our different our those that of sufficient while samples also enhancing base. ability customer segments. to coverage identify are ensures latest consistently customer we current customer approach similar Second, groups,

of our application increase in measures further learning and algorithms. models. led the performance have the stabilities we significant deep to improvement Third, the These of

we including models. through innovation, and data models, algorithm fraud and Additionally, profiling more have iterated models, upgraded models, and response introduction detection various

accuracy coverage As a have result, continuously and improved. both

and a life On across each risk development, system of stage implemented targeted customers further lifecycle management we system management strategy lines. more This risk their management effective at cycle. the business have for allows full our to various

locate and from detect and change in asset risk system automated monitoring an we risk of system handle more in front quickly. and the can promptly detecting, segmented finally inspection portfolios, them and launched This second trends quarter, respond, risk On identify anomalies, the scratch.

On has and of accuracy the risk efficiency within our strengthened risk has business enabling assets. high and improving robot for front various customers, strategy handling high-risk hours, disposal and high capabilities been of handling fully This automated the across managing strategy the such strategy disposal the of generation customers, recommendations scenarios. implemented

of In risk acquisition a channels. This for management management and have assets, low credit for customer our employs effectively promote The controlling risk customers, uplift management risk assets. terms credit the all from across the of life customers. initial cycle, new the different risk an and customers. At customer strategy strategy transitioning first-time proportion we amount new the scale phase line approved delinquency implemented grow represents upgrade increasing of low time, to customer thereby grow the line of high-quality the managing the to among across complete of previous for their limits management same strategy amount cash approach credit high-quality comprehensively dynamically small stage new and exposure new next growth, we life risk the cycle, of

solid new risk for by for the growth. the combination compared decreased compared customer, foundation new risk quarter. business increased new quarter. sustained comprehensive for lays approval rate to This the to has indicator, credit by customers, the customer the high-quality and of for approximately Meanwhile, FPDX, customers of XX%, first new first a With implementation has the management XX%, early strategy the

In management risk focused assets new terms customers, on our work in areas. from X of for existing QX key

management. asset First, risk high

optimization. structural Second,

differentiated asset risk we Third, the To entry strengthen transaction the management, restructured pricing. stage. high and

in transaction differentiated levels. In a real-time different agile decision managed During for transaction stage, decrease existing we making, QX. risk risk the to we compared for for resulting produced through products entry stage, risk risk level information in XX% the customers

risk. and reduce Additionally, we long-term limit exposure, customers with credit reclaiming credit helping to reduced their amounts, for and mismatched effectively credit profile credit line

and inspection of disposal strategy early risk terms automated of to risk high-risk application and In products, of assets. management alerts asset robots the accelerated the medium

high-quality increasing proportion of customers of risk increased credit capability, we effectively high-quality for structural limits identification on based GMV. In enhanced optimization, our terms the

customer stopped the efforts customers and and prevent also to We churn, using encourage who reoffer churn intensified products, signs our of return. those for showing aiming have already

capability In take differentiated we made QX. terms pricing an showing product product rate of compared increase across pricing, each the differentiated steady all of in lines, the with to line enhancement a

the main on we X collection managing assets. QX, focused of terms In for efficiency areas. existing

increasing First, third-party debit rate of the transfer. coverage

Second, optimizing debit transfer strategy.

refining assets. reminder have improvement gradual pre-delinquency measures leading a existing the Third, collection These effective, proven strategies. in rate to for

the will intelligent to and tool risk management strategy system, continue risk strengthen to quarter, identification we ahead capabilities, Looking third upgrades. our risk

scenarios. risk segmenting we management capability on of customer by and cohorts, various Additionally, will development products, deepen based further differentiated the

strategies. have institutions we and complementary and will partnership institution financial preference various financial who with of risk different terms In enhance collaboration,

Our assets, growth to decline structure, quarter, consistently the asset both third goal that risk ensure further and improve high optimize quality continue gradually to the the promote level, of is profitability. in existing and assets, new of

Next, over I will to our financial updates. James for CFO, hand

Thank Please in results. stated. are unless that financial will note figures update RMB now on give a otherwise I you, more our Arvin. detailed presented all

Jay sluggish. In issuers lows. Arvin second for can maintained This standards. be financial aspects. quarter, in growth. The pace performance the results, second cautious the context, also financial the historic remained loan brought in quarter and strategy credit this laid a solid us a in recovery mentioned, controlling of we be consumer tightening strong to and the the continued X confidence As strategy, macroeconomic operating adjustment foundation further at highlighted following but healthy only The not timely future

and loan of a key issuers, The decline rate year-over-year quarter-over-quarter increase revenue First, and quarter. quarter-over-quarter significant XX% and quarter-over-quarter of credit year-over-year business a Despite decline increase rose the XX.X% the towards funding risks highlight is points year-over-year. we increase points X.XX%, take pricing improvement was rate will in quality loans. record rate. low take in achieved of optimization, new basis costs, revenue overall quarterly repayment basis XX an XX.X% in take This risk-based growth. The we're confident and detailed a to and in a Arvin the XX primarily a early of in revenue the ratio, the continued refinement in loan this see has new by downward that year. in driven we improvement of a asset later slight differentiated assets, portfolio trend XX.X% more

quarter-over-quarter as second and funding cost as resumed second points low platform declined high in record and demand a to more In funding efficiency an a improvement tranche market policy issued due by costs and issuance this break ABS drop balanced of after May senior Secondly, ABS relaxed our the quality brought low successfully more X sources. We funding of than down years, from was costs significant funding diversified channels. for with July assets, X.XX%, year year-over-year. basis we in funding increased to X.X%. the further basis XXX environment, points quarter, monetary and funding This XX for and in costs

issue second further from diversify Moving costs. In plan funding to funding that quarter, institutions funding new financial national approximately to added forward, sources our of X ABS funding and reduce we as we regularly partners overall maintained XX% institutions. our the

increase loans. in risk-free small Thirdly, new

increased Chinese, as empowerment risk-free to QX last and the from this of year QX as and XX.X% partners. risk-free SaaS loans consists new XX.X% to total this in and QX banking segment, mainly year. XX% of segment facilitated of profit-sharing well Language], GMV, percentage The in as tech model, in [Foreign a loans the services risk-free New in year,

business. first quarter, revenue XX.X% business profit in transaction second indicating the the mainly XXX in volume tightened growth the The the and continue up total the first to revenue RMB to business take quarter-over-quarter. to for helped strategies. improve profitability. This share partners in overall high the in increased recovery profitability revenue needs effectively management gradual e-commerce an trajectory, of quarter offered the user in proportion in proportion points in of due which value business demand X percentage and financial profitability. assets exploring experience. the and to to and will due quickly recovered by in quarter-over-quarter revenue risk loss business X and also profit, that management expect X.X% quarter, rate the [Foreign different by to was risk our to capabilities recognized strong future, volume in Language] returned market, in The such continue financial quality. This proportion asset the reduce increase the the demonstrate the improve million, future. a These e-commerce trend with customers, and risk-free split the in model, by year-over-year. sharing preferences. Fourth, risk-free we improvement our we quarter-over-quarter, issuing model, increase to the decisive in services in quality to and a a Also growing better disruptions to the turn taken quarters, the risk previous transaction volume increasingly declines are to expand percentage added second gross increases surged as in e-commerce point short-term the of revenue, in our Despite improvement the are side portion enhanced we million our X In in upgrade and Gross rebounded plan a Chinese, to profit XX as partners. increased note, In and Additionally, the model, diversify our the from was risk-free serve levels to measures e-commerce RMB turnaround business quality segment our risk growth quarter. in

the add statement. the details some some highlights, to operational In addition income X like above to I items would on to

In million higher to XXX enabled XX.X% second in revenue First, risk-free the grew in loan mentioned loans, risk-free issuance quarter, loans, and the share services XX% quarter-over-quarter, up accounted X% services. by other mainly for XXXX. earlier, the from model Technology quarter revenue split proportion on GMV in as increased quarter, the driven RMB up the of first revenue. second of the the profit total

the plan our portion we to business. continue forward, of Moving expanding risk-free

and items. costs on Second, expense

items X derivatives financing income financial for provisions book. to change liabilities, QX guarantee loan provision assets due statement risk value fair provision contract XX.X% costs. in and provision in existing Total value receivables, fair receivables, are in contingent cost guaranteed the by the line loan increased quarter-over-quarter, provision for including higher and and There First, in levels our loans.

However, as Arvin mentioned, April during day down the trend X and which gradually from peaked the second improving an we came saw April to June. quarter in delinquency in rate,

serves Additionally, calculation XX in provides of a balance, day indicator the delinquency This lower review the decline a due as angle was lower new risk to mathematical by to metrics. the time. in risk increase performance the the rate, only XX-day driven delinquency quarter-over-quarter lagging and and plus due originations is to mainly denominator an lapse of a among ratio, and loan plus one array

substantially While has the risk has loans for also loans existing the improved, for risk new profile stabilized. been

the effect still However, the total will lingering coming some quarters. the in provision portfolio for have

the Second, funding amount the due stable, sheet cost the relatively to size cost. funding of loan and remained The on-balance funding. trust flat

expense were been our total net costs Despite acquisition in second is XX% the of increase marketing invested the apart while unit acquisition quarter-over-quarter, business XX.X% the shows the quarter. Fourth, the the remained and relatively profit stable. the in stable, quarter-over-quarter Fifth, Third, the of to increased quarter, dividing actually in items. Therefore, incremental statement the first cost margin. markets, newly in quarter, customer most domestic profit environment as second margin some processing facilitation loan by and volume expense by net overseas sales approved and compared a and Mexico rapidly challenging the from expanding the due number income has users customer above of expenses to reduction sales the in expanding. marketing by in decreased our the issuance service cost,

shareholders through the balance strengthened RMB to billion. items. our efficiency, quarter, of In over position we Next on X.X XX and equity second billion maintained refined RMB the cash a operational solid sheet strong

the ADS of first as the for the $X.XXX companies. cash to XX% regarding Lastly, and ADR annualized are cash of first per sustainable with price equivalent half date shareholders, of current about profit mentioned, we range dividend shareholders which announced value in share to payout, a top XX, the September XXXX. the dividend for Jay the a among total on the record of Based cash net believe XXXX, we for approximately dividend committed our and X.X%, XXXX, return, half yields of creating the reached have is

the segment. Operator, quarter, we current recovery, uncertainty among Looking will prudent total issuance operating the forecast, at updates, adhere and now ahead macroeconomic remain level compared for Based to quarter expect quarter. That the the principle. floor open third managerial is to third the can the in a of questions. a second to to to context concludes continued continue which profit the similar we we subject on loan to financial in the

of first Yada the from line [Operator Instructions] question from Our CICC. Li comes

the strategy [Interpreted] the scale per compared and I'll but Could active a a far of calculation. overseas expenses overall business. questions. color we taking up mentioned Hello, management overseas expansion on means user the Jay the this costs if we noticed details for the and business quarter the management went overseas that when the growth we this expect provide prudent and all. which the make Mr. to increased the more do the continued That's give customer to acquisition Second, quarter, Well, that sales on marketing business up, thank more Could profit? also company mentioned quarter, management, this? do the in translation. then, you the outpaced my you volume first

QX, of healthy, our developed our standards risk a business market, and to we Compared scale adopted rapidly. controlled strategy domestic recovery, the has amid product origination. tightening macroeconomic in a market, overseas maintaining and approval In domestic tepid loan [Interpreted] our further

Q-on-Q, in and growth. Furthermore, the accelerating overall Q-on-Q QX. The by business is You speed see, the outpacing roughly XX.X% QX overseas total XX.X% growth by in increased far in quarter-by-quarter. loan QX balance to of growing loan Xx Xx is business our that grew origination

business to in take like of the make some profit time, investment it that is future for a we'd business. to scale. We business scale require and relatively the more compared overseas the and still small However, also still our our will point domestic overseas subsequently to that expand out anticipate

significant can believe So looking shorten forward, sales and questions The the investment in of now plan incremental and unit up payback We go Yada. appear customer customer down. Operator stable, our on to ahead its also high in cohort our see we in market X misleading. Based market, domestic spend and of comes of it you for of the customer to questions. may and if the period as remains stage our acquiring Moreover, requires per and continue early to step the compared cost Therefore, investment unit customers customer but to acquisition market, detailed expectation. expansion. Yes, the domestic that improve your the growth purely just the for acquisition cost we the to speed show improve, total quality next see, is answers the efficiency the explain will the in still short, our future, up, QX, marketing from accelerate is calculation our customer active went in majority the we user that it financial of that gradually question, overseas go and in the relatively and based market, statement, cost will investment. you new analysis, overseas if market. do in cost within the overseas our as on related will we acquisition the that's

question Zou comes CLSA. Zoe from Our next from

translation. the me let Okay, [Interpreted] do

decreased down increased an First on Could James which for to question, and implies this mentioned, XXXX? you outlook the significant second of one, elaborate CEO measures the future the CFO the bring driving funding in trending and a factor rise trend mentioned this, share of the third volume take quarter-over-quarter, take Could the specific the of rate. rate? The on outlook management elaborate as quarter management's behind reduction revenue taken quarter. funding rest funding significant revenue revenue in a provide cost on quarter, loan and although costs this both the on and the the costs

your I'll you, Thank Zoe. answer questions.

balance the question, of loan a origination declined recovery total basically QX, quarter-over-quarter. the XX% Basically, strategy. X% first the and because dropped of we prudent by about macroeconomy, by to The slow in adopt continue loan the

of capabilities, differentiated because our focus the the and of to basis take secondly, you operational services. Basically, Basically repayment pricing ratio, many of first the X.XX%. improvement the about rate core continuous significant points also efficiency quarter. on value-added strengthened year-over-year. This really, in one X.XX% risk and further this a the in compare And early basis increased a standards of However, XX improving Arvin loans because quarter-over-quarter and a is revenue risk-based from more bolstered reduction if points, it's optimizations rise XX QX significantly is, And tightened substantial of reasons. mentioned, quality as the cost. new in some funding thirdly,

strategy, we in to the the uptick will the continue future. uphold into operational quarter, ahead to momentum a revenue rate take and Looking third we prudent slight expect maintain near the

related by second stood quarter big low, Really at As the X.XX%. is cost, quarter-over-quarter. to factors. funding about driven this the a XX really many new basically for funding It record a question is by reduction. reached basis It this cost decreased points

market. the It high demand, -- in relatively assets funding liquidity amongst ample overall the and partners. are remains is in quality First the trending our

from partners, really will us more funding our asset gained the reflects quality to drive help down this recognition cost. has continuously this improving So funding

our and bargaining assets Secondly, our year-over-year. is this point the and split our X continuous profit revenue sharing as if quarter-over-quarter you strong Again, point demonstrates percentage point the the issuers. ratio third for the model, competitiveness will. And increased by ABS percentage X of power,

network. about tranche As our significantly really senior issue we our partners I regularly in added we issued funding X.X%. more and of QX, diversify cost, tranches both as funding And the to Jay our plan ABS and to of low in ABS in balance, funding our to down partners' existing X This structure further funding channels. pulled XXX script, with terms talked and as X we

proportion funding of the so. at with about from XX% maintaining funds national partners or So

ahead, asset liquidity sufficient reduction and quality, of in issuance considerable looking for cost near in still the there So the remains pace the with the room overall in if continuous acceleration is improvement financial ABS further market, funding in future. we believe the

So answer questions. hopefully this your

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

have asset I X quality. [Interpreted] So, questions on

is -- after seen First some and improvement the we portfolio. both asset early quality so signs in overall loans new on have of

to improvement question this the expect And be is risk of the in second meaningfully we in do when So indicators. regarding reflected future? more some line bottom

For days up QX. has to in example, to XX ratio #X, continued NPL the plus X.X% edge

So I'm And expect we [ see when this vintage ticking? also wondering then, XX data on ] curve. the do days still to

We that? curve similar do Wondering still QX the have following noted few past quarters. see of the improvement when to an we trajectory the

management continue as the strengthen intelligent monitoring mentioned [Interpreted] further capability, tools will we advance comprehensive As risk we is risk improve develop before, to risk enhance the and such management, capability, robust. the system, risk strategy identification construction strategy lifecycle upgrading of early alerting risk and

as risk management and We well for existing as new the the will continuously enhance both the assets. refined existing customers

level to in gradually we risk undertaken, will existing that leading loan new profitability down, improvement So gradually increase, based assets anticipate abovementioned the of measures gradual will the a the of come proportion future. on in a the and

to a as quarterly expect show gradual improvements over this We time.

pay delinquency more our more work actually the of days rate that to risk attention We daily the we indicator. market XX indicators in monitor those risk strongly suggest the space. is mentioned, that lagging like leading management you As

it XX%, we that the example, a assets. of new we issued In mentioned For see compared approximately dropped QX, QX. for FPDX few by to them,

you the quarter. indicator for June, -- from April about total X% asset, the time day the in in the peak X lead in see is to rate, dropped second delinquency be The will second

The third MX witness recommend from leading -- April collection indicator, X.X, in absolutely gradually see value we approximately to that's about the June. to rate, improved which

to gradually delinquency the days we until the the by issued the all So improvements will in risk time, -- it XX require assets in new gradually time days, show rate. XX the will see in improvements some

the is days increase the XX delinquency denominator -- balance. the I'd point, calculation rate loan explain Second rate, the to XX-day like the the is to from perspectives, mathematic of elaborate delinquency

QX. actively And As decrease our we we balance. loan in a loan restrained resulted in that in origination mentioned,

in calculate days delinquency -- delinquency, naturally leads XX the rise So to go naturally we When drop a rate. there in days is the it denominator. XX it a

close risk all risk Alex, risk the upgrades questions to that the downward in if there's see hope line, I continue trend regarding the the the can no more second half think on the the think management Well, management your question the continues, space. Operator, expect year. call. when I of in we work As we will address level the

further comments. no conference showing I'll team the for management questions. turn closing the to I'm back now

thank again, for Well, everyone, you joining today. us

IR have good Thank you please night. a us questions, If all. further you contact and Have free contact to our via on website. good information the feel a day

participation conclude in for you the This today's your Thank does conference. program.

You may an the this now of transcript call.] marked on that present were interpreter are disconnect. [Portions [Interpreted] live by spoken