Hello, ladies and gentlemen. Thank you for participating in the Third Quarter of 2023 E arnings Conference Call for FinVolution Group. At this time, all participants are in listen-only mode. After management's prepared remarks, there'll be a question-and-answer session. Today's conference is being recorded. I'll now turn the call over to your host, Jimmy Tan, Head of Investor Relations for the company. Please go ahead. Hello, everyone, and welcome to our Third Quarter 2023 Earnings Conference Call. The company results were issued via Newswire Services earlier today and are posted online. You can download the earnings release and sign up for the company email alerts by visiting the IR section of our website at ir.finvigroup.com. Mr. Tiezheng Li, our Chief Executive Officer, and Mr. Jiayuan Xu, our Chief Financial Officer, will start the call with their prepared remarks and conclude with a Q&A session. During this call, we will be referring to several non-GAAP financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about these non-GAAP measures and reconciliation of the GAAP measures, please refer to our earnings press release. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties are included in the company's filings with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Finally, we put a presentation on our IR website, providing details of our results for the quarter. I will now turn the call over to our CEO, Mr. Tiezheng Li. Please go ahead, sir. Thanks, Jimmy. Hello, everyone, and thank you for joining our earnings call. This is Tiezheng Li, CEO of FinVolution Group. We are happy to speak with you today. During the third quarter, we steadily executed our local focus, global outlook strategy, while strengthening our efforts to build our business throughout the Pan Asian region. Cumulatively, we are proud to have served over 29 million borrowers in China, Indonesia, and the Philippines. As we continue to expand our presence in these countries, we have tapped more deeply into our regional resources and are now successfully deploying them across the various markets in which we operate. For example, one of our regional founding partners can now support our loan facilitation operations across different countries, greatly improving our capability to serve more borrowers in our markets. We plan to leverage and replicate this success as we expand into additional countries, while strengthening our presence in existing markets. China's post-COVID economic recovery continued to progress gradually during the third quarter, with microdata reflecting un even improvement in different areas. For instance, in September, the Consumer Confidence Index picked up slightly to 87 points, but is still hovering at relatively low levels. Also, according to data from the National Bureau of Statistics, unemployment rate officially peaked at 5.3% in July, before trending down to 5% in September. Although there has been some moderate recovery in the consumption market, the bulk of the recovery has been in children's education, sports, medical, healthcare, domestic travel, and other offline activities. Purchase intention for big ticket items such as properties, cars, and luxury goods remain relatively weak. Meanwhile, the overall macro environment in Indonesia, our largest overseas market, remained robust as the region is in a faster stage of development. For instance, Indonesia's Consumer Confidence Index from August through October remained high at about 125 points, a positive indicator for increasing consumer spending. Its unemployment rate in September also declined to 5.3%, compared with 5.9% in the same period last year, its lowest level since the first quarter of 2020. Thus far, our tactical approach of maintaining prudent progressive growth in China market, while pursuing rapid growth in the international markets, has proven very effective under the current and even macro conditions we have observed. While waiting for China's economy to recover at a faster rate, we have been constantly investing in R&D to further streamline our processes, enhance customer experience, and achieve operational efficiency improvements. Since 2018, we have deployed around CNY 2.4 billion to develop cutting-edge technologies and implement them throughout our business operations. In particular, we made notable progress with BLU, B-L-U, our AI-powered chatbot, which now supports operations in six different countries with five language options: Chinese, English, Tagalog, Bahasa, and Spanish. Furthermore, by integrating BLU with our human loan collection personnel for daily reminder calls, we have achieved cost saving of up to 80%, while maintaining our per 10,000 cost efficiency levels. BLU's effectiveness once again showcases our R&D prowess, as well as our ability to improve operational efficiency. With a pragmatic, yet innovative tech, that can be seamlessly applied in our operation across different markets. Speaking of AI, we continue to leverage AIGC to boost social media engagement for our overseas business, increasing our campaign's audience targeting accuracy and achieving greater visibility on leading social media platforms. Thanks to our engaging AIGC-driven advertisement and the inventive use of technology, our followers on Facebook surpassed the 1 million milestone, while our followers on TikTok grew to around 740,000. As always, we continue to promote financial inclusion, a mission that reflects our commitment to social responsibility and supports our business goals. Our average borrowing rate in China maintained stable sequentially, making our products and services accessible to even more borrowers. I'm pleased to report that despite all the macro uncertainties, FinVolution Group's total transaction volume for the third quarter grew to CNY 51 billion, while our outstanding loan balance grew to CNY 66 billion, representing year-over-year increase of 13% and 9% respectively. These results clearly demonstrate that our local focus, global outlook strategy is not only viable, but it, it is also scalable, which is a critical factor for our future growth. On a related note, I would like to share a brief update on our recent ESG initiatives. Our dedication to sustainability and giving back to society remains at the heart of our corporate values, and forms a core part of our identity. Over the last couple of years, the company has made several charitable trips to the Sichuan Daliang Mountains area. This year, we donated 350 renewable energy street lamps to improve infrastructure for the local villagers. We also organized a unique schooling event for children at FinVolution Kindergarten, another of our long-standing community projects in the area. Going forward, we will continue to align our ESG and business goals to maximize our positive, positive societal impact, while creating value for all of our stakeholders. To summarize, the third quarter of 2023 was not without challenges, but our firm and focused execution of our local focus, global outlook strategy, alongside tech innovation, empowered our steady progress and strengthened our foundation, supporting long-term sustainable growth. We will continue to embrace inclusion, accessibility, and technology as we seek to serve borrowers throughout the Pan-Asian region with better financial services. With that, I will now turn the call over to our CFO, Jiayuan Xu, who will discuss our operational and financial results. Thank you, Li, and hello, everyone. Welcome to our Third Quarter 2023 Earnings Call. In the interest of time, I will not go through all of the financial line items on this call. Please refer to our earnings release for further details. As Li mentioned, the domestic macro recovery has been gradual and reflects uneven improvements in certain areas. For instance, the official Manufacturing Purchasing Managers Index, PMI, from August through October fluctuated between 49.7, 50.2, and 49.5 points, according to data released by the National Bureau of Statistics on October 31, 2023. Meanwhile, total Social Financing data in October increased to CNY 1.8 trillion, up 9% from the same period last year. Total retail consumption in October increased to RMB 4.3 trillion, up 7.66% compared with the same period last year. Our stable and better quality borrower base empowered us to maintain steadfast and resilient operational metrics domestically in the third quarter, despite the uneven microenvironment. Cumulatively, we have served around 25 million borrowers in China, with the number of unique borrowers remaining stable at around 2.3 million. Additionally, our domestic transaction volume reached RMB 49 billion, up 11% year-over-year and 8% sequentially. Meanwhile, our outstanding loan balance reached RMB 64.6 billion as of September 30, 2023, up 8% year-over-year and 3% sequentially. All these achievements demonstrate our solid standing in the China market and also highlight our unwavering commitment to serving our customers. We continue to employ prudent risk measurement tactics and effective fraud detection technologies, resulting in only minor fluctuations in our risk levels during the quarter. Day one delinquency rate was 5.7%, while vintage delinquency rate is expected to be around 2.4%-2.5% for the quarter. Going forward, we will continue to monitor the credit risk performance closely and make timely adjustments when necessary. Finally, boosted by the AI-powered chatbots we mentioned earlier, our loan collection team kept the loan collection recovery rate at around 89%. Furthermore, we continue to add new funding partners, bringing our cumulative number to 88 financial institutions with a strong pipeline of potential future partners in place. These operational achievements enabled us to maintain a healthy take rate of around 3.1% during the third quarter. Recognizing the critical role that a small business play in our economy, we also upheld our commitment to small business owners with unwavering support during this bumpy recovery period. During the third quarter, we served around 448,000 small business owners, and facilitated CNY 12.3 billion of loans for them, representing an increase of 9% compared with the same period last year, and 7% sequentially. Now let me move on to our international expansion efforts. As Li shared, Indonesia, our largest overseas market, enjoyed ongoing growth in its macroeconomy during the third quarter. Sales of motorcycles, the most popular model of transportation in Indonesia, has also accelerated. During the first nine months of 2023, motorbike sales were up 31% compared with the same period of 2022, reaching around 4.7 million units, a positive indication of growing customer spending. Given these promising trends and the data points, we anticipate that Indonesia's domestic consumption will remain robust. We were pleased to record another quarter of significant improvement in our overseas market across multiple operational and financial metrics. Cumulatively, we have served over 4 million borrowers in Indonesia and the Philippines, and continue to rapidly attract new borrowers in these regions. The number of unique borrowers served during the quarter reached another new high at 928,000, up 27% year-over-year and 18% sequentially. Furthermore, we continue to increase the population of institutional funding in Indonesia as we strengthened our local presence and broaden our local network. For the third quarter, the percentage of loans facilitated from our local financial institutions reached 74%, compared with 55% for the same period last year. As a result, international transaction volume surged by 99% year-over-year, and 21% sequentially, to CNY 2.2 billion for the third quarter. We also set new records in outstanding loan balance at CNY 1.3 billion, up 102% year-over-year, and 16% sequentially. As well as revenue contribution of CNY 585 million, up 67% year-over-year, and representing around 18% of total revenue. Leveraging our experience of shifting to better quality borrowers in China, we also take a proactive approach to acquiring better quality borrowers in the Indonesian market. Apart from the online lending business, we are also pilot testing an offline business model with different consumption scenarios to provide more holistic service for our borrowers. In addition, we are also actively exploring the acquisition of additional license to better support our local operations. Driven by our dedication to R&D innovation, as well as our successful execution of our local focus, global outlook strategy. Net revenues for the third quarter grew to CNY 3.2 billion, up 8% year-over-year, and a sequential increase of 4%. Sales and marketing expense increased by 13% sequentially to CNY 530 million, as we increase our efforts to acquire better quality borrowers through diversified channels. Number of new borrowers in the China market increased by 7% year-over-year, and 12% sequentially to 406,000. Notably, the number of new borrowers in the international market increased by 27% year-over-year, and 36% sequentially to 423,000. In total, we acquired around 829,000 new borrowers during the third quarter, up 16% year-over-year, and 23% sequentially. Net income for the third quarter was RMB 575 million, a sequential decrease of 2.6%. Our leverage ratio, which is defined as risk-bearing loans, divided by shareholders' equity, remained stable at 4.1 x, indicating future growth potential as the overall macro economy recovers to a healthier state. Our strong balance sheet and liquidity positioning continues to enhance shareholders' confidence while providing us optimal flexibility to execute our strategy. In particular, our cash position remains robust, with over RMB 8.5 billion of cash and short-term liquidity as of the end of September 2023, representing an increase of 58% year-over-year and 4% quarter-over-quarter. We believe our current cash position is sufficient to support our business expansion and return value to our shareholders. Before I conclude, let me briefly update you on our share repurchase program. For the first nine months of the year, we have deployed around $66 million to repurchase our shares in the market. As of September 13th, 2023, we have cumulatively returned $511 million to our shareholders in the form of share repurchase and dividend distribution, reflecting our strong commitment to enhancing shareholder value. In summary, our solid results for the third quarter are testament to the effectiveness of our local focus, global outlook strategy, as well as our nimble business model and technological advantages. We have used our time wisely during China's uneven post-COVID recovery, and are poised to be at forefront of the industry when the recovery accelerates. Looking ahead, we will remain focused on developing and implementing cutting-edge technology while expanding our healthy customer base, driving growth and creating greater value by making financial service better. With that, I will conclude my prepared remarks. We will now open the floor to the questions. Operator, please continue. We now begin the question- and- answer session. To ask a question, press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble the roster. For the benefits of all participants on today's call, if you wish to ask question to management in Chinese, we ask that you kindly repeat your question in English. First question will be from Alex Ye of UBS. Please go ahead. [Foreign language] Good afternoon. I'm asking about the credit outlook for both domestic and international markets. For the Chinese market, we have seen your day one delinquency pick up a bit in Q3. Could you share more color on the drivers and outlook for the coming one to two quarters? Also similar question for your Indonesia market. Any color on credit trend and outlook? Thank you. 好，谢谢 Alex。PMI 社融数据，这个总体来讲，都还是处于一个缓慢恢复的这样的一个阶段。所以受到这些，这宏观数据的一些影响，其实我们也观察到，在第三季度，这个风险是有一些波动的。那从早期的指标看到，像 Day 1 我们在 5.7 左右啊，那 1 到 30 天的回款率在这个 89%。那这个数据到目前第四季度我们看呢，也基本差不多，总体还是比较平稳。嗯，那在这个风险的这个波动情况呢，其实我们也，及时做了一些相应的调整啊。那像在贷前，啊，我们是这个更精细化地去调整了我们的风控模型和策略啊，啊，那在第三季度和第四季度呢，我们对于我们的啊，这个不同的客户，他的额度啊，都进行了一个更紧密的这样的一个观察和调整。那对于一些高负债的用户，我们是进一步收紧了它的模型的边界。那对于像那种高额的笔数比较多的这样的一个客群，啊，那我们也是对它进行了一个通过率和额度的调整。对于沉睡的用户额度，我们也进行重新评估啊，以及相关的这个风，反，反欺诈策略上的调整。那贷后方面呢，我们也是根据啊，我们自己的模型啊，和之前数据的分析啊，这个也是充分运用各种工具啊，去这个提升这个策略的效率。比如说通过微信啊，然后站内信啊，这个我们自己研发的铁牛的这种工具啊，去差异化地做这样组合和这个提醒。那这些策略做了以后呢，其实能够对我们的客群呢，这个差异度呢，是有一个显著的区分，啊，能够实现这个用户，这个目前来看，这个能够降低用户的逾期率绝对是在 0.5 左右啊。那同时呢，我们也会对一些就是这个用户习惯不太好的啊，这个可能会遗忘的这样的用户呢，进行提前触达的这个提醒。根据我们历史上的这个 collection 的这个 score 的这个评分的这个维度啊，将用户会分成不同的等级啊，然后这个根据他的这个经营的变化，负债情况啊，这些数据进行智能的啊，这个筛选啊。啊，那这些策略做完以后呢，我们看到回款率也是有这种明显的提升啊，大概会有 2% 左右的这样的情况。嗯，所以总的来说呢，就是现在整个的环境，我们判断，啊，啊，还是是一个缓慢恢复的这样的一个阶段，不管是从经济还是信心角度，所以风险质量是我们现在非常紧密关注的核心指标。那通过我刚才介绍的这样的贷前贷后的啊，这些策略，目前呢，我们基本已经实现了，啊，我们早期的这些，啊，这个 Day 1 的这个逾期率啊，回款率啊，都能够保持比较稳定的这样状态啊。 This is Jimmy. Let me translate for Alex. The overall economy in China, such as the PMI, total social financing are recovering very slowly, and being affected by these factors, our risk metrics have some fluctuations during the third quarter. For example, during the third quarter, day one delinquency was around 5.7% and day one to 30 days loan collection recovery rate was around 80%, 89%, while 90 days + delinquency was around 1.67%. And we have actually done several things such as increasing the accuracy and updating the model of our pre-loan models, through the accurate positioning of data mining, data analysis, and user behavior analysis. We have increased, we have enhanced the credit limit accuracy and we have also assessed the user repayment willingness and the probability of default rate. For post-loan models, we have deployed different tools such as WeChat, Push, IVR, and automated loan collection robots to design a combination of reminder strategies. Such combination strategies have proven to be effective, with a deduction in delinquency rate of up to 0.5% in absolute amount. For borrowers with probability of missing payments due to carelessness, we will also remind them in advance. Leveraging on our collection scores, we segment borrowers into different categories such as repayment behavior, remaining of loan balances, and changes in debt borrowers debt levels. Using all these strategies, our repayment rate actually increased by around 2%. The slow recovery in economy and slow recovery in consumer confidence is still weak, and thus this is an important metrics for us. Based on all these strategies that we have deployed, our Day one metrics in the fourth quarter has also remained at similar level with the third quarter. 好，所以我再来回答一下第二个问题啊，就是我们在印尼的这个风险的一个情况。印尼的总体的一个宏观数据啊，我觉得应该是比国内是更优的啊，不管是失业率啊，还是他们的这个居民这个消费指数啊，都是一个啊，处于一个非常积极的这样的一个状态。那相应的呢，就是我们啊，在印尼这个客群总体的一个风险表现也基本稳定啊。那除此之外呢，就是说因为印尼我们还是处于一个比较早期的 一个快速发展的一个阶段啊，所以我们在啊，这个风险策略上面，其实我们也保持相应的这个灵活性和弹性啊。... 大家可以注意到，其实我们在第三季度，在这个海外的新客户获取方面增长是非常多的。那这里我们对于不同的用户，也进行分层，那我们对于这个，很多客户都会给相应的额度进行测试。所以我们从目前的策略上讲，就是在一个还比较稳定的宏观环境，我们会非常积极地去追求更快速的一个增长。同时呢，我们也注意到，就是像美国的，总体的加息应该也是进入尾声，可能明年也会进入到一个降息的周期。那这个呢，其实对我们的海外业务应该也是存在一个潜在利好的这样的一个关系。所以我们预计，在后续的话，整个这个印尼的市场应该还是能保持，现在一个比较健康的资产质量的一个水平。 Alex. Let me do the translation for Alex's. Indonesia's overall macro economy is much more robust than the China market in terms of employment rate, consumer confidence index, etc. The risk matrix for our Indonesia market has been stable over the last one year. In the third quarter, I believe you have also noticed that we have acquired many new borrowers to maintain rapid growth, and this is the reason why we are having more flexible, more flexibility for our risk matrix. We also segment our borrowers into different segments in order to achieve a better and more accurate risk profiling. Also, the U.S. interest rate increase is ending soon and which will be very beneficial for our international business. Hi, Alex，我是铁铮。我在关于你提到的国内信贷风险的这个，我再补充一点我的这个观点。第一個，就像教员提到的，我们在国内的整个宏观的这个，展望还是在逐渐的恢复中，所以对于风险产生了一些影响。第二個呢，我们认为说从全年度的角度来讲，那Q3季度可能是一个这个经济的，信贷的这样的一个，风险的一个小周期。那我们认为接下来到明年，我们对于明年这个，进入到这个上半年的这个风险，这个会进一步的这个改善。那第三個呢，我们觉得说从，信用我们自身的这个资产质量来讲的话，我们在于整个市场还是一个比较好的资产质量。大家也知道说比较好的资产质量，那在应对这个风险跟冲击事件的时候，可能会表现得会更加好。所以呢，这个，这这两个点是我稍稍做的一点补充。 Alex. Let me do the translation for the team. As Alex has mentioned earlier, China's economy is recovering slowly and thus has some fluctuation in the risk metrics. In Q3, there's sort of a small mini credit cycle ongoing and going forward in Q1 2024, we believe the credit risk will be better. For FinVolution, all along our credit, our asset quality has been better than most, which we believe will be very beneficial for us when the economy recovers. Okay, thank you, Alex. Operator, please continue. Thank you! Next question will be from Yada Li of CICC. Please go ahead. 国内各方好，感谢给我这个提问的机会，我是中信公司的李亚达。第一个问题呢，想请教一下，进入到2023年的第四季度，那当前我们是否看到了国内用户借款需求的一个恢复？然后展望今年以及明年，如何去看待国内放款量长期的这样一个增长趋势，那是否还有增长提速的可能性？那对于我们自身放款节奏的这样一个调整，那我们主要是基于哪些因素？第二个问题呢，也还是想再请教一下我们的国际业务，想请教一下今年以及明年国际业务在我们放款量、营收、利润中，整体的占比趋势变化，以及目前从国际业务分地区来看，那未来印尼呢，是否还会保持一个比较高的增长？那除此之外，如何去看待比如说像菲律宾、越南等地的这样的一个趋势以及盈利的这样一个前景。 Then I'll do the translation. Hello management, thank you for taking my questions, this is Yada with CICC. My first question is regarding the loan demand. During for Q 23, are we observing kind of recovery of user demand, and then looking forward to the end of next year, I was wondering how to view the overall growth trend, and what are the circumstances that we may accelerate or slow down the pace of our loan growth? The second question is about international business. What will be the volume, revenue and profit contribution from the overseas branches this year and next year? And will Indonesia maintain the high growth trend? And how to view the profitability and the prospects of the other branches, such as Philippines and Vietnam. That's all. Thank you. 好，谢谢亚达，我先来回答一下你国内的那个问题啊。宏观部分其实刚才已经介绍过啊，然后从我们内部来看呢，就是我们觉得总体的这个用户的借款需求还是相对比较活跃的啊。那么这里我觉得主要的 一个原因呢，其实跟我们一直非常坚持，持续地在新客方面做这个投入啊，在这个客户 的这个心中啊，其实我们的这个影响力是不 断地在加深，啊。... 那同时呢，我们也是在，像老客的这种存量用户的唤醒工作，提高客户精细化运营方面的能力，也在不断地提高。那我这里可以分享几个数据。 像老客户，老客户的撮合，从第三季度以来，除了就是十月份，因为它是有这个国庆长假的影响，是有些波动，那其他月份呢，我们观察到这个老客户的这个撮合是一个平稳的增长，那月份之间的这个环比增长大概是在3%左右。然后另外一个呢，是新客户的数据，新客户的这个撮合数据，它呢，是在这几个月当中，第三季度到现在，整体的一个环比大概是在4%-7%之间。所以应该说我们的客户其实对于，我们的现在这个品牌的这种认知，其实还是比较强的，这么一个需求还是相对比较活跃的。那从未来来看呢，我觉得，其实我们还是要对大环境有一个判断，那我们现在从现在的这个大环境判断来看，整个这个经济也好，信心也好，还是处于一个底部区间，这个趋势是在恢复，但是恢复的速度还是，还是相对比较慢，以及比较，比较弱的。所以在这种情况呢，其实对我们来说，不仅是要观察用户的需求，其实更重要的也是这个风险质量，这些业务的核心指标。所以我们在整个这个放款节奏当中呢，我们还是一个保持足够的耐心和定力，平衡就是这个客户的需求和风险之间的关系，那我们会把风险可控作为这个最高优先级，这样的一个情况下来，来实现一个可持续的这个有质量的这样的一个增长。 Hello, let me do the translate for Alex. OK, from internal we think that the demand is fine as we continue to invest in the acquisition of new borrowers concurrently working to reactivate the inactive repeat borrowers. We can share a few data from internal demand, right? The application rate for repeat borrowers has maintained a steady growth of around 3% and for new borrowers, the application rate also show an increase of between 4%-7%. We think that consumers still recognize our brand and is much more active. Based on the current weakness on the recovery of the macro environment, we need to have a certain judgment, and we need to balance the growth in demand and also our risk metrics, and we believe we need to have more patience in the overall recovery as risk is our top priority metrics right now, and we will balance the risk metrics together with the loan demand of the consumers in order to achieve high quality growth. The second is about our international business's current situation and future prospects. Actually, we just briefly introduced the performance in Indonesia. Our business in Indonesia and the Philippines, actually their overall macro economic performance is actually better than domestic. That actually also very powerfully supports our rapid development in those overseas countries. So everyone can see, third quarter our entire international business transaction volume reached RMB 2.2 billion, year-over-year 99% growth, loan balance reached nearly RMB 1.3 billion, year-over-year 102% growth, then revenue reached RMB 585 million, year-over-year 67% growth. Then just mentioned, our third quarter overseas customer acquisition, the new customer number reached 423,000, year-over-year grew 27%, this number is our historical high, and also the first time our overseas business new loan borrowers exceeded domestic new borrowers. Then from the future perspective, we feel still exists very big space. First the Indonesia market, this can look at Indonesia's household leverage ratio, 2022 its number is about 16.2, actually compared to developed countries' leverage ratio which is above 50 level, actually still far lower than such a level. So we feel this leverage ratio actually still has very big space. Then additionally, in our P2P market, now there are about more than 100 players, we approximately in the market are in third such a position, market share in about 6%, the first name about 8% left right. So no matter from this ranking position, or from this market dispersion degree to see, I feel in market share aspect we also have very big improvement space. So the entire this market no matter from this growth angle or market share angle to see, we all very have confidence, in future can obtain higher such a development opportunity. Philippines side I also briefly introduce, actually Philippines, although we now disclose data not much, but actually Philippines our overall business also very healthy, and growth very fast, we approximately this Philippines in this year we estimate entire this transaction approximately than last year will grow more than 3x. Finally say our this overall profit performance, we in these countries' this business region, we will very pay attention to LTV, then our LTV in Indonesia also good, in Philippines also good, very healthy. So we now from business angle to speak, we will put improving market share as more important operating goal and direction. 那利润呢，因为它会受很多东西的影响啊，比如说三季度我们在获客方面的这个投入啊，那会影响到这个利润的表现。那另外呢，在这个会计确认上，啊，它会产生一些季节性的差异。所以呢，最终目前从利润的这个占比上来说，应该说还不太明显。但我们相信呢，就是如果能够持续地保持这样健康的啊，可持续的这样的一个发展，这个利润的体现呢，它是一个自然展现的一个结果。 Let me do the translation for the second question. The macro environment of Indonesia and the Philippines is much more robust when compared to our China markets, and all these positive macro environment factors actually support our rapid development in these countries. You can see that our transaction volume in the third quarter was about CNY 2.21 billion, while our outstanding loan balance was about CNY 1.29 billion. Outstanding balance was up 102% year-over-year, and transaction volume was up 99% year-over-year. And the number of new borrowers also reached a record high of 423,000, up 27% year-over-year, and 36% quarter-over-quarter. Please also note that this is the first time where the number of international new borrowers exceed the number of new borrowers in China. We still think that there is a huge market potential. In the Indonesia market, there are over 100 P2P players, and we are currently ranked number three in terms of outstanding loan balance with a market share of around 6%. Let me briefly touch on the Philippines market. We believe Philippines has very strong growth potential, and the transaction volume for this year is expected to grow around 3x. Indonesia, right, I forgot to mention just now that Indonesia household debt ratio and is way below those of the developed countries, and there's a lot of potentials. Regarding profitability, we are in a stage of rapid development with healthy LTV, and our main priority now is to grow rapidly and increase market share. Increasing the market share is of a much more important priority for us now. Profit is being affected by many factors, such as our continued investment in customer acquisition and the time difference created by accounting principles. We believe that as long as we are able to maintain healthy loan development, profits will be a natural result of our operations. Okay, thank you, Yada. Thank you! Again, if you have a question, please press star then one. Next question will be from Cindy Wang of China Renaissance. Please go ahead. 好，谢谢管理层给我这个提问的机会。那我这边有两个问题，第一个问题是关于你的国际业务，那主要想问的是印尼市场，那因为我们有看到，就，你有一个其中的一个竞争者，现在目前他这个 buy now pay later 的一个服务在印尼其实有受到限制嘛，那是否您看到这边有一个不错的机会，就是说可以抢占市占率的一个机会？那我们如果看到中长期的话，要怎么看这个整体的印尼的一个市场的一个策略，然后以及整体的一个贷款规模的一个增长力道。那第二个问题的话是关于你的行销费用，那有看到行销费用在，呃，第三季度有一个两位数的一个增长，那不知道这边的一个影响力是不是来自于海外这边的一个新获客增长数比较快，那可不可以帮我们拆分一下国内跟海外的这个获客成本？那我们怎么看这个获客成本，呃，在一个中长期的一个表现。那我很快地翻译一下我的问题。Thank you for taking my question. I have two questions. First question is related to Indonesia. So as one of your competitor has been restricted by buy now pay later services in Indonesia, so any opportunity to further gain market shares from here? And, do you have any color in terms of like mid- to long-term for the Indonesia business strategy and the new loan facilitation outlook? The second question is regarding to marketing expenses. As we see, the marketing expenses are up double digits sequentially, what's the reasoning behind it? And also can you break down the domestic and international customer acquisition costs? How do you expect the customer acquisition costs ongoing going forward? Thank you. 好，谢谢Cindy。我先来回答一下，这个印尼市场的问题啊。对，就刚才我也提到，就是说不管从整个印尼的它的这个市场的这个发展空间啊，以及从现在这个玩家的啊，大家的一个组成，这个市占率来看，我觉得这一定是存在着啊，进一步的这个提升的一个空间在这个里面。其实也可以看到啊，就是，这个随着整个P在印尼的整个监管的这个形势越来越趋明朗啊，啊，然后其实对于玩家的这个要求也会提高很多，啊，比如说像现在整个这个注册资本是会提高了这个25倍啊，所以未来的话应该是在市场当中是有技术实力，有资本实力啊，有这个实战经验的这样的玩家，才能在这个市场当中更好地这个进行一个，一个发展。那从公司角度来讲呢，就是我们除了现在经营好我们现在这个业务模式啊，那我们非常确定的另外一件事情，就是我们会，啊，不断地去做人群的上浮啊，去为更优质的用户提供我们的产品和服务，啊。... 那这里我可以简单介绍一下我们现在做的一些事情。一个呢，我们在这个渠道方面，啊，那除了我们现在在做的这个线上信息流，啊，那我们也会去看这个线下的这个智能展业，啊。然后从产品上讲，除了我们，啊，在做的现金贷，我们也会再去看这个3C分期，buy now pay later，以及就是跟场景进行结合，啊。那像跟这个手机的场景啊，这个电动两轮车的场景啊，家电啊，家具啊，这些场景相结合，去触达我们印尼的用户，啊。嗯，那印尼的市场呢，它的特点呢，就年轻人的占比是非常高的，啊，那三十岁左右有一定收入啊，和经济实力和消费能力这样的一个人群，啊，其实是增长非常快，而且消费需求也很旺盛。呃，比如说像手机啊，那他们在手机发布以后换手机的频率也非常高。那我们现在已经和当地知名的这个手机品牌，这个网络和门店，就是像，像，像OPPO啊，我们在合作，那为用户提供这样的一个3C消费的，啊，服务的这个产品。那这些都是未来，啊，我们，啊，这个在印尼的市场上，除了做好我们线上现金贷以外，啊，我们这个非常有潜力和看好的这样的一个发展的这样的一个方向。 Cindy. Let me translate the question. OK, Indonesia, right, has a huge opportunity. Opportunities grow from multiple different aspects. As regulation tightens, the players will be affected, but we believe the market will consolidate with the better quality players. From the company perspective, right, the entry... oh sorry, I was saying that the entry barrier will also increase when regulations tightens. For example, the registered capital for new players increased to IDR 25 billion from just IDR 1 billion. We can share what we are currently doing. Apart from online information feeds, we are also doing offline customer acquisitions, multi-product installment loans, electronics installments, and buy now pay later, coupled with multiple scenarios such as mobile phone, electric bike, home electronics, and furniture to reach the borrowers. Indonesia has this trend of young population, of large young population, and they tends to change mobile phones whenever there is a new release. Thus, we have also begun our operation with OPPO, a well-known mobile phone manufacturer, to provide such services for them. 然后第二个关于我们获客费用，我们现在获客费用里面，总的这个占比大概里面，大概70%的保持是我们国内的这个获客的一个成本。然后海外大概占到剩下的20%-30%。如果用CPS角度来看，我们总的，CPS如果简单来算的话，我们Q3相比Q2大概是有6%左右的这样的一个提升，优化。然后回到国内和国际里面，那国内，我们这个提升会更大一些，大概是在7%左右的这样一个提升，在优化。然后海外的CPS呢，我们基本上保持就差不多稳定这样的一个水平。那从未来的展望来看，我觉得这个还是取决于这个大的环境和我们的一个投放的一个策略。从这个CPS角度来看的话，就目前，我们觉得应该还是基本上会保持这样的一个平稳的这样的一个状态。当然我们就是也会通过我们自己内部的精细化运营，来提升这方面的效率和这个效果。 Hello Cindy, let me do the translation. For S&P cost right, about 70% of them are for China, while about 20%-30% is for the international markets. From the CPS perspective, in the Q3, China market optimized the overall CPS optimized about 6%, while China market optimized about 7%. International CPS maintains stable. Going forward, depending on the macro environment and the company own strategy, we believe our customer sales and marketing costs will remain stable, and we through our the company strategies of upgrading the models on customer acquisition on all those, we believe all these will, all these costs will be further optimized. Thank you Cindy. Thank you. There's no further questions. We'll conclude our question answer session now and turn the call back over to management for closing remarks. Thank you. Thank you all for joining the call. If you have any other further questions, please reach out to FinVolution Investor Relations team. Thank you all. Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.