LexinFintech (LX) 26 Nov 242024 Q3 Earnings call transcript

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

Desmond Lexin's morning, Conference Third [ everyone. Call. good Welcome to Quarter ]. you, and Good evening, Thank XXXX Earnings

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

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

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

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

Chinese, in will cover Lastly, turn today's call voice. over James will note, via please. Jay's his Jay. financial give Jay, agenda, will whole the the AI-based go the in detail. I now ahead, kindly in English Please version then to be Jay delivered will more statements remarks

and good committed everyone. and operational [Interpreted] XXXX. us and and upgrade third This strategy has the reduce by analytics. of approach to we performance for evening, you allowed prudent quality. our to morning, It the quarter pleasure is overall In quarter, risk management third share to improve Good risk a with remain my our driven portfolio's steady deep data asset our

billion. returning X.X net balance RMB stood billion, the revenue new billion. loan RMB quarter, RMB with reached overall trajectory. steady profit was structure to XXX.X loan XX net low-risk asset is gradually As continue growth third profit Revenue improving. billion, In to and loans XXX our RMB a grow, Outstanding both and was at originations

revenue our portfolio we in net in further see improvements of expect the fundamental future. strengthen, to to and continue company's profit the As the

highlights. following the quarter includes in third the performance X Our

tangible risk overall The yielded compared by in day management X% the and ratio efforts new point risk. decreased of our to asset quality FPDX ongoing quarter. turning risk results declined a second leading compared new improvement indicator, with of delinquency to by XX% the X portfolio portfolio around First, and quarter, have the in about previous loans continued overall in

the over customer explored lines, the ] high-quality During supported on growth quarter, focused expanding sources assets online and and XXX loans measures. We customers. million to new We user developed the reach users. identification markets their and leveraging demands fully micro multiple we cumulative potential registered borrowing [ following optimizing conducted and XX%. strengthened the third-party various in by business and small by for accuracy on high-quality of brought key our micro of by This model advertising base risk our target data business by over for acquisition implementing strategy credit small dedicated reoffer reactivate business loans. a targeted loan channels, increased We dormant

Additionally, and further anti-fraud our anti-fraud to intercept upgraded properly our we model, us ] potential fraud, enabling detect capabilities. more [ strengthening intelligent effectively

decline, loans new to expect performance of to year. solid improve, quality next a As continues for we portfolio growth the risk laying overall foundation

basis the driven a quarter-over-quarter The overall operations risk the representing and of declined X.XX%, continued points portfolios our is levels refining and a reached to improved asset third second margin optimizing matching. on by of due profit our focus enhanced asset highlight fund net and In increase quality. profitability XXX quarter,

historical focused setting of of diverse funding diverse quarter, through got and the leading to recognition drove customers demands the the healthy a low. In funding on from XX range by financial third points more a Our assets various a from costs we down quarter, This younger mix. our institutions, basis new products. increasing meeting second

enhanced we We the strategies For Language] cetera. high-quality segment, and expand to operated Small acquisition which ] [ related and working optimized operations Business our [ and dropout customer line, loan, our et ] product, prevention, credit channels. capital [Foreign of and adjustments, and pricing retention the means Micro Owner granting

to and micro channels, small funding business specifically We also loans. connected for dedicated

achieved As a quarter-over-quarter. XX% result, increase [Foreign in Language] a volume transaction

pricing million model, For to by insights. we Platform. of borrowing and prime product, approach the segmentation, the enables and stage. anomaly and ] to boost Based quarter, previous which the stable, further metrics. Time management has has within and can management credit asset improved operational Business communication of Through in customer recognition business weeks restructured consumer quarter, our proprietary time appetite manual on customer causes the in for have our of protocol analyzed quarter. our in improved in decision-making. The data system Salary priority this the that bears direct measures services continued efficiency, anomaly the introducing drawdown measures, real-time have under attribution Intelligent various significantly Card funding the adjusted and service third digitalization of enables a from us. long-standing [ to [indiscernible] system, model, the for customer matching workflows. These loss has from ] higher line and broaden revenue. Stable reduced regard quarter. included empowering optimizing initiatives under customer protection, revenue Workers [ and technology This In and to our in our by customer the principal level pricing our few development research minutes super improve Key generating scenarios. protection the or few enhanced in compared above growth strengthened traditional reduce units capabilities. we business and resolution, issue at costs, remaining management consumer risk to acquisition address launched overall for in review authorization connected activities. With reduce order third to with investment to customer platform. consumer Intelligent customers system business XX% increased light is which Credit the XX% and smart segment, and traffic hours strategy our with processes customer to collaboration compared a handling rights which even and efficiency. With required of development. service Le the is us management model empowered we than root enhance and and and to skills fund fluctuations mechanism identification have the frontline requirement and including challenges service operational attribution key In various is to reinforce industry-leading accuracy implemented quantitative post-loan an been to continuous distribution. leveraging rights accuracy extensive service Credit number to rights external identified customer the customer and XXX our grading a metrics generates covered The and complementary previous we detection risk frontline teams automatically invested Platform business partners customer system experience service research Its our development enhance new issues operates of in comprehensively RMB XXX costs AI to technology base business to intense model We of company us, asset in refining strengthening increase no the new helped segments solutions, that of a and identify underpinned we risk-based a service and protection a earlier risk and issue model profit-sharing adjustments

and for overall bringing and Looking loans in risk focused push approach business committed enhancing profitability. Also, our to intensify growth efforts properly steady on a ahead, level scale. down customer we remain of prudent we will operational acquisition

our new As book. payout quality plan expect confidence remain XX% the of year. To XX% accelerated in ability overall loan to deliver existing increases to net We in proportion we profit continued in full ratio current to the in shareholders, the improvement our our the we to of of reward loans and profitability loans from dividend starting XXXX. gradually, high-quality raise stronger further in coming mature asset see

you. hand over our Now I to Thank would like CRO. floor the to

more first continued assets and of quarter, adhere improve we [Interpreted] This of risk to to remarks. generating high-risk the In the standard profitability accuracy CRO's of strategy efficiency on high-quality is control. translation asset tightened focused and enhancement, and the

the X% overall assets the upgraded management capability, management system detection build trend refined of day downward risk further compared the quarter. from assets third-party the overall real-time new anti-fraud about data a the also FPDX to the and to new interactive for rate XX% continued and the real-time capability. Leading previous quarter. We assets by risk indicators compared second the decreased second by X decreased delinquency and about asset quarter

We the fourth expect of in indicators risk will trend downward quarter. leading this continue

online through we customers, for base. progress [Interpreted] customer assets significant on Specifically, acquisition management new dormant new existing channels of in Lexin's new customers in terms risk made and activating both have from advertising user

acquired new by decreased risk customer level accelerating quarter, through second phasing new QX through acquisition to third for decline peak strengthened and resulting of to of stable we new in the year. generally have in channel. Compared indicator through out channel advertising about acquired quarter, has By leading new the ] Meanwhile, capabilities long-tail have compared online channels, Currently, significantly for high-risk channels. by and the range. the acquired of of XX% a identification channels has our [ online through focused a this upgraded customers terms declined new continuously we key have decreased the risk end reasonable customers risk strategies customers risk the new advertising of level online level customers, FPDX its high-quality In on customers XX%. in channel risk advertising to last

we rate and our In dormant large fully to high-quality [Interpreted] the quarter, dormant with channels. In million base. and comparatively customers Lexin's of order reoffers the reached in AB acquisition the to with credit targeted explored strengthened [ risk customers, to low have Moreover, customers precisely drawdown to ] nearly customer fourth risk. about the improved In and our reactivate customers the base needs cost the will lower of high-quality dormant by XXX our reactivated [ and with team, customers capabilities the terms potential strategy advertising the low Lexin's and customer To demand. and of is level number approved existing of continue at acquired have of low online advantage, third of reactivated borrowing we and reactivating identification of customers than user customers compared borrowing leverage users. coordination we through customers existing risk ] is growth conversion on convert efforts have customers system in new of Through sustain the cost XX% reactivation intensify to identify deeply the we dormant over risk XX% second doubled quarter, increasing new quarter [indiscernible]. operational that

from loans management structure third quarter, new of X of tailored assets; on front high-risk focused existing customers, major the projects: customer for segments. and in risk On management [Interpreted] the we portfolio different optimization;

we terms and disposal medium of measures further anti-fraud The and enable of assets, accelerate high-risk alerted extensive early of strategy robots control transactions alerting In [Interpreted] high-risk detection high-risk strengthened the to use upgraded capabilities. assets. us managing our of to risk

terms super continuously high-quality growing the improved proportion customers prime In structure elements of and risk of enhanced in proportion optimizing trend decline by optimization, financial further The issued we various newly exceeded prime continuously volume has high-quality XX%. to levels. customers the and of we [Interpreted] By of new portfolio our assets, existing a of assets stable in assets loans products.

to risk customer for the optimizing segments, of In specialized model, with and operational also the data business and offers of and [Interpreted] third dedicated business we small have small ability owners, micro our these management owner Through business risk focus customers. acquisition micro associated reduce risk This customers for business and of improved a and tailored small the of different identification quarter. micro experience micro loans. small on terms introduction to risk the the in with we and small management has manage model user and level customers strengthened the customers' micro risk our

we derivation, data into onboarding, management we capability, efficiency evaluation full management a a terms life evaluation, well inefficient models In management of strategies. effectiveness data, feature chain monitoring have Also, enabling linkage, decommissioning management. the the automatic standardization third-party single cycle monitoring, improves and features, This and the data. entire greatly decommissioning as optimization data coordinated as and enhances handling performance for efficiency applications has the data data, real-time established integrating or of platform performance data alerting across platform. data and of ineffective and data of of significantly [Interpreted] This have improved third-party established

and of capabilities strengthen into risk [Interpreted] will Looking risk-based credit ahead we decision-making fourth identification, our pricing. the risk continue quarter, management, to

of to to capital-light models Our risk our scoring will profitability. goal the aim of development and is to improve. In we ensure and and tools we time, new risk credit enhance asset assets assets, intelligent the same efficiency and we credit delinquent continues management. health that the among Through At risk to cycles continue accelerate total [ structure. of business of of these assets will our smooth to increase all the and of pricing our further impact across levels of the proportion of reduce accuracy the customer increase segmentation, the for efforts, of optimizing profitability decline performance proportion meantime, risk-sharing and continue decision-making generation to ] the risk-based our and the stability the implement lines the lines on business improve high-quality the

James. is This

Thank detailed presented turn. unless my noting all figures financial in our it's on results, will I a Arvin. stated now RMB, update give are more you, that otherwise. Now

adhered the prudent quarter, we capabilities of risk operation of of and transformation and the During principles to past upgrading business. management our overall our the continued

by growth. Total QX. amounted revenue Net Our volume to by satisfying profit approximately and million. steady efforts reach stable results, yielded to origination compared billion, X.X significant ] showed a loan remaining increasing a strong quarter-over-quarter to [ XX.X% growth, [indiscernible] RMB RMB XXX evidenced

X key performance. our financial highlights are Here robust explaining

improvement and loan driven by by points quarter X.XX% XX derived sharp increase a One, XX new cost-efficient which FPDX, cost take record up last subtracting credit-oriented substantial volumes loans for of funding the income, income quarter and increase, the new from risk which new by adding by year. The same of following. origination primarily by the from same XXX payoff tech empowerment costs value-added some We and X.XX% rate. ] of high of few rate calculation revenue partners decreased and take First, provisions, record various The evidenced XX% continued national basis was this It net profit our about is take level the ago. achieved by ample profit funding and rate, through of QX our of of dividing continued QX increase the points including drivers the underscores the nearly optimization with quarter. A supported X.XX% revenue funding basis user institutions. from the X.XX%, a higher and reached loan funding of from then core Three, basis which financial confidence in increasing in higher X.XX% this a in of in driven points by the in partnerships QX. services. early Two, ratio the peripheral also year from X.XX%, assets. QX, by [ low fell

derivatives in assets cost, value change including in asset Second asset loan guarantee in and The key total transformation highlight The provision fair contract in our RMB quality. delinquency to million financial is QX. day quality improved by lines book improved QX, by of X income liability risk to portfolios fair receivables, project. total QX. and Total compared our X% XX contingent rate X.XX initiatives, for statement, RMB billion thanks to financing upgrading our decreased provision the the of from management for guarantee and ongoing the X our receivables, value business increased especially provisions loans

new quality peak portfolio [ a total phasing out us. As gradually are behind existing and of better our loans, ] generate we level risk the believe higher-risk loans we we is

acquisition. the registered advertising The over one, customers major RTA QX, base and million enhanced in in model online channels: is from we efficiency reactivating efficiency dormant our improved third XXX channels. user iterating customer acquisition through accumulated highlight key the customer In X

XXX,XXX, lines from credit to increased XX% New users with up QX. by approved

users for credit by the cost acquisition with XX% compared However, to approved QX. dropped lines new

sustainable including improvement costs lower growth profit improved cost. To operations, we of healthy to through funding operational forward, assisted efficiencies. revenue achieved Moving macroenvironment the more user optimization rate, leveraging and strong reactivate volumes acquisition overall the base QX, the will and high-quality continue loan quality, the our stable low users user large relatively take asset highlights, sequential have aforementioned in at and despite we summarize by in new business

of Next, I'm going provide overview explanation detailed items. statement and financial some more to

The quarter-over-quarter, the the income volume XX.X% increased facilitated, First, loans. Tech-empowered sheet on product upgrade side. growth by the to take mainly off-balance income and by XX.X% the lower credit volume higher higher XXX offsetting revenue in fell driven quarter-over-quarter to in rate and QX. facilitation service due loans mix by in sheet on-balance facilitation service million RMB

although in capital-light market XX.X% to of GMV in launched revenue demand the mentioned, by growth. E-commerce business base the quarter-over-quarter QX newly is Shopping its confident and early are Jay ICP still XXX future dropped higher we As future stage, platform its Festival. the from due volume in

the business in We e-commerce to back growth expect lines trajectory QX.

by marketing in items. reducing efforts. costs quarter-over-quarter business. G&A increased users, X.X% on intensified collection cost due dormant we expenses expense on loan to reactivating as million initiatives. on Next, to to by advertising decreased efficiency quarter-over-quarter QX and Processing spending and servicing the online expense and XXX cost focused XX.X% RMB XX.X% by Sales dropped due

summary is improvement processing lower income growth. business related quarter-over-quarter. above, to and quarterly operating quarterly improved partially minor in servicing margin despite made the the the loan to X.X% flat in a improved a QX. facilitation driven lower the the XX underscores and cost, the breakdown net analysis in offset QX profit profit volume to RMB business costs primarily e-commerce net collection the This by loan by credit quarter-over-quarter. The million by volume, increasing or due losses healthy from from cost, loan flat of revenue higher overall As This XX.X% X.X%

improvement. divide income net if QX. ratio income we of is comparison in profitability we the versus GMV, we way in to another use X.XX% the QX. measure X.XX% average look X.XX% quarter it against current the in Similarly, the is with loan balance, in by QX X.XX% at If Here get to net

QX, cash X equity RMB approximately XX billion. RMB over our For balance trust billion, was products. of maintained We impacted position items, of some temporarily shareholders' sheet in solid total the maturity by

end ratio at the coverage approximately QX. provision Our sufficiently of remained XXX% at

As Jay payout payout in future. total value further mentioned, we increasing this amended ratio increase X, The profitability committed an profit XX% to sustainable XXXX. has Board are to net January dividend may starting shareholders. of policy, We improves the for approved as ratio the creation

effect government considerable profit take we the economic rate our and XXXX. a grow at to expect continued of package a gradually with ahead, business, basis Looking on stimulus transformation net the year-over-year for

a the take process marked Although QX already profit may strong recovery bit a time, has start.

Operator, QX, still to current to principles patient and our remain we adhere profitability for to macroeconomic will we estimates, For lay GMV we lower are grow portion rate with foundation prepared the the in year. loan to on operating conditions the to open Based solid a questions. basis. This prudent on and single-digit QX continue growth for next of expect a concludes now at remarks. flat quarter-over-quarter my originations the a of

Instructions] Yada from [Operator will Li of questions line CICC. come the First from

loans current following the Then view continue secondly, core growing [ signs management one we policy first can consumer quarter? drivers the of what's to will And And momentum at in translation. based the on net the results. profit end this is, [Foreign the the what's September? the the do demand this of rollout for My profit government now of I exciting ] quarter the significant quarters? see fourth growth Congrats of Language] net growth on strategy following data? for the operational And stimulus recovery

Language] [Foreign

This is Mandy.

for translate me Let Jay.

September, observe [Interpreted] economic the at short-term stimulus Well, out government in demand. measures did some the change the positive end rolled we of since

turn on environment long-term will depends macroeconomic in still in future. improvement a recovery the it ongoing the whether However, into sustainable the

asset origination [ our we generally quarter-to-date overall a data, at the ] prudent continuous higher significant in structure. the on volume especially origination We see hasn't period the loan roughly on operational that there Therefore, our same control has focus quality, growth continued part. based volume volume. Well, QX to remained flattish operational strategy. to compared is in in optimization asset been QX. same loan the the this there think So although is total been total the due level, We risk a maintain

a we increase seen slight proactively high-quality quality. consistent same with the promoting time, have to high-quality high-quality demand. of We the overall high-quality assets increase the portion customer are assets, At continuing in asset of and and the of the recovery growth improve enhancement

to recent proved customer Additionally, the has effective. upgrade our strategy acquisition in be

new growth So deploying are the actively for for a we of next customers, would lay growth think year. foundation solid ] we which our [

Let Yes, -- James. me is Okay. this

second growth profit about especially years. XXX profit focus attributed give forecast our million. your question the ] in our QX, quarter of answer to for reached over on RMB significant is details also optimization continuous and for the a is more this growth strengthening Basically, company's terms me [ management, Let past Really, very net quarter-over-quarter question. It overall net in approximately of second of continued next. In the core risk operations the X XX.X%. the the is the competencies, little

Specifically, really X drivers.

in Arvin The ] from Jay strategic [ first optimize the benefiting as quality, with gradually management recover one of and -- as reached overall in continued quality issued few point, mature. quality, Basically, to times. of loans really and in second stabilize ] batch to risk QX. The year on QX, focus asset quality the new is in the we're [ a higher beginning asset as overall upgrade, the in a that last asset of mentioned we turning terms improvement actually both it half risks

X the downward and by in quarter quarter-over-quarter level about next the into second with we know, in basis. our estimate, delinquency considerable after for next Obviously, our guidance we're assets total continue we day as this fourth of QX a report a based year-over-year provide would decreased would trend expect expect for the and going comparison quarter, to next risk So decreased year in by preliminary year numbers. In X% this the We profit assets year on the new you net on for rate FPDX approximately well. growth as XX% quarter.

that's improvement. basically, the profit driver the first So in

a record lower is more the demand XXX in QX dive basically driver financial really into at about details, It's The statement ] marking the points drive can liquidity optimization QX, than continued the to past by funding couple strong of little the cost consumer largest high-quality funding looking low our credit cost. driven and market bit the basis really The ample assets. is quarterly years. I for second the perspective. in [

in you look the revenue, profit, net also XX about by profit If collections the provisions and pluses quarter-over-quarter. there's an loan by million at processing the it million ]. about RMB and XX in contributing minus the the the Obviously, And at side quarter-over-quarter. we and costs a RMB business side, is e-commerce RMB RMB you increased of there at pre-tax million and look to about about there's to servicing here. If of gross the include increased the plus to Obviously, million. if OpEx look XX million XX minuses the specifics, RMB are [ related e-commerce revenue reduction decreased there total excluding in amount profit increased QX. And risk for the XXX also,

side So of record the net QX. about expect plus income a we question. a answers QX, about And your provide if we growth will Hopefully, together, XX guidance detailed of net with result million profit this quarter-over-quarter and in report an it for which next the pre-tax this about after are year, we increased better minus a increase XX%. Again, to happy XXX more both RMB leads profit RMB to we of contributed million. increase and quarter-over-quarter, the

Our next Yuying questions from comes from Zou CLSA.

me Let the do [Foreign Language] translation.

has taken you optimize has question, impact Could on the question risk the was recovery business and to optimized the the model. the on loans compared newly first QX. level been asset that scale And new risk and expected management loan the its plan company's Intelligent to provide mentioned Could also future? QX quality and progress about second The is in improved -- continuously new the elaborate profitability? asset elaborate line level quarter-over-quarter and measures quality you of main of the launched in new it future on of overall Credit this business the outlook on more overall on the an Platform

[Foreign Language]

Arvin. Let me translate for

focused different key model. So risk regarding pricing; risk improving QX, risk primarily several identification; risk risk-bearing two, the in we three, space, on [Interpreted] areas assets: decision-making; four, management one, in

channels new Number on high-quality we high-risk phasing the for and put accelerated long-tail the channel. advertising customer one, Firstly, focus efforts below out in measures. -- through of acquired online we the channels, X the

efforts [ joint models Secondly, capability. Number Number leading enhanced anti-fraud the we platforms scenario detection our we ] with put strategy all to our and build three, to with the expand lines. business data. grow we low four,

and new in we identification continuously decline strategy result, strengthened in a risk new risk have stable As the resulting our this in capability of a upgraded risk our for customers, channel. level customers

to has the risk the So in level by QX, compared has approximately the to XX% leading compared level By decreased for by customer peak new significantly QX, decreased XX%. end of indicator FPDX to the same customers. time, to rate for ] in promote new loans year. At we order approval to our the the some able last growth of QX [ high-quality are uplift extent in

leading risk end level platform up the the the in by of of industry the we acquired catch to So channel advertising with online new the through XXXX. expect customers

progress, for total in part continue of estimate trend day to compared asset Regarding your the rate the latter question, assets quality of downward We the X% X QX. delinquency will this overall the in decreased recovery QX. by QX

XXXX. delinquent scheduled profit that risk Zoe ]. in Well of the the of asset and to upgrade advancement risk will continued high-quality we Hope answers of reduce that expect significant efforts, our with with assets the generation our of optimization according are in management your ], portion our the the [ initiatives, promote assets. net we namely, on progression structure, to overall questions, ongoing confident based management [ increase see So a we

Language] [Foreign

Let me for Jay's comments. translate

of capability, to been Intelligent Platform model, [Interpreted] our risk continued principal for ICP risk risk identification to more risk us where customers capital-light management have able expands enabled loss. that the Credit more our the market the we model. capability, for more these capability pricing, us model ] segmentation service, more risk the risk and cycle. financial upgrade currently, smooth life ICP ICP, portion strengthen can accounts turn and across conduct our does addressable different credit small Well, service. Well, while Lexin Through ICP to new assets potential with one. ICP significant differentiated cycle the the This then we especially technology levels complementary model has we bear The fluctuation a identify thanks structure sustainable is potential. customer short to new effort launch model profit-sharing our total [ customer not provide internal a segmentation overall the precise loan institutions a corresponding believe We precisely, growth crucial in into longer appetite. QX and and of sustainable this allow although adjusting our offer business model distribute revenue believe with and accurate is thereby the to business to approach very still launched more asset a generating from a line just only to model got volume model,

mix address ], hope expanding model. continue We your this Zoe product to [ will adjustment through question. make this

Feng comes Huatai questions the Chen from ] of Yu next from line The [ Securities.

[Foreign Language] Okay.

questions. I the X translation. Let me do have

approved on this you the on introduce that and number elaborate mentioned this factors funding new cost outlook unit record acquisition of quarter-on-quarter. QX, line And customer is, an The for we and in quarter. ] significantly [ substantially management customers Could behind continue increased the also drop new you whether the first cost cost main acquisition the low customer driving taken the one will measures is, a to decreased and provide hit cost future? credit one noticed in QX? the the funding second Could

to Okay. of basis Funding funding comparison This of marks cost really decreased question consecutive I reaching the the cost reduction. in since XXth quarterly low XXX new a achieving approximately quarter X.XX% with reducing points QX. historic first largest by the will take [indiscernible] XXXX, QX and

a also For a tightened relatively right, year, we're funding there optimizations the the already financial that the institutions, cost before seasonality is historic of milder funding typically funding in at fourth of for so low quarter, given kind a anticipate cost we of QX. for considering a end and

macroeconomic profitability the our and easing have implementation to recovery that the we recognition the cost and overall optimize improve, more confidence with to of we XXXX, to funding quality supporting ahead continues from continue policies our Looking the continued year. next enhance partners asset money will so funding as

[Foreign Language]

me translate comments. Let for Jay's

through XX% of is the improved of by of cost approved number reduction acquisition, with the Unit basis. measures. efficiency regarding users of Number one, XX%. the customer dropped to So your question this we have attributable and increased users significantly on channel mainly approved acquisition customer quarter-over-quarter Q-on-Q credit a about several [Interpreted] in credit online line the capability by and line with cost our advertising

increased unit for XX%. ] As number the quality down the draw drawdown are rose credit portion potential total we by [ good by of the of total good approved users cost high XX%. and by users, acquisition amount of Meanwhile, and with the able line credit XX% quality to

shortened. the XX% We As to order the a result, in strengthened Moreover, the lay next capability, customer by hike to investment increase acquisition risk customers believe in probably level payback we got continue customer dropped of quality future front business new period users acquisition for year. the a of growth and will the the foundation QX. in with to compared proportion good

measure, customers. second and dormant intensified activate convert we efforts The to have

customer credit rate loan the the XX the line has we line state the is the and continue level that base, XX% by reactive reactive customers past the lower years, drawdown XXX more the granting the is doubled roughly about in risk acquisition customer XX% in than [ customer low Moreover, for compared comparatively customers to of new from cost users. in and order continue the ] pricing [indiscernible]. number AB increased Over refine online cost operations than accumulated dormant of accurate the of advertising total will new customers million QX, provide efforts channel. large Therefore, more activate to to dormant user in customers. In approved to with the sustain order credit of QX, we to and a low reactivate at the customer Lexin growth risk. low customers existing and convert will intensify for to future, nearly the In to QX

and For KA with -- looks the volume further good. cooperation growth have the QX. our channels strengthened By third front, in leading the we far, profitability the KA

check there this I your if questions line? on investment this you to the addressed We increase can Yuxin future. is the in in ]. Operator, [ channel will question, continue more hope the

continue. questions on line. There Please the are no more

for you, thank Then, again, everyone, joining us today. Okay.

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

concludes conference today's This your call. Thank you for participation.

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