Ladies and gentlemen, thank you for standing by, and welcome to Lufax Holding Limited Fourth Quarter 2021 earnings call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, we will have a Q&A session. Please note this event is being recorded. Now, I would like to hand the conference over to your speaker host today, Mr. Yu Chen, the company's Head of Board Office and Capital Markets. Please go ahead, sir. Thank you, operator. Hello, everyone, and welcome to our fourth quarter 2021 earnings conference call. Our quarterly financial and operating results were released by our newswire services earlier today and are currently available online. Today, you will hear from our Chairman, Mr. Ji Guangheng, who will start the call with some key achievements in 2021, address current capital market concerns, and finally share our outlook for 2022. Our Co-CEO, Mr. Greg Gibb, will then provide a review of our progress and details of our development strategies in the quarter. Afterwards, our CFO, Mr. James Zhang, will offer a closer look into our financials before we open up the call for questions. In addition, Mr. Y.S. Cho, our Co-CEO, and Mr. David Choy, CFO of our Retail Credit Facilitation business, will also be available during the question- and- answer session. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call, as we'll be making forward-looking statements. Please also note that we will discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under the International Financial Reporting Standards in our earnings release and filing with the SEC. With that, I'm now pleased to turn over the call to Mr. Ji, Chairman of Lufax. [Non-English content] Hello, everyone, and thank you for joining our fourth quarter 2021 earnings conference call. I will start today's call with an update of our key achievements for the year, then address current market concerns, and finally share our outlook for 2022. [Non-English content] First, key achievements. [Non-English content] In 2021, we achieved steady growth, improved regulatory compliance and corporate governance, and strengthened our status as a role model for compliance and governance among overseas listed Chinese companies. [Non-English content] Our full year 2021 total income increased by 19%, net profit by 36% and non-IFRS net profit by 29% when excluding the impact of non-core items. As a result, our basic earnings per ADS for 2021 reached RMB 7.11. At the same time, we increased our share of credit risk bearing while proactively reducing the all-in cost of our 2021 average outstanding loan balance by three percentage points, improving regulatory compliance and contributing to the national goal of common prosperity. [Non-English content] In communicating with regulators, we had open and frequent dialogues through all available channels at all levels and achieved satisfactory results. Upholding our principle of preemptive diagnosis and swift operational adjustments for timely optimal results, we maintained a proactive, candid, positive and responsible stance in aligning the direction of our business with the trends of regulatory changes. [Non-English content] Secondly, key investor concerns. [Non-English content] Since releasing our Q4 results, our management team had over 50 investor engagement events, including post-earnings calls, non-deal roadshows, and other meetings. [Non-English content] Based on our data, 66% of the investor questions were about business operations. 24% about macroeconomic and regulatory trends, and the remainder about capital market initiatives such as dividend payout, share buybacks, and Hong Kong listing. We're glad to see that investors are refocusing their attention back onto our core business as we gain more clarity on regulatory front. I will share our thoughts on macroeconomic and regulatory direction. Greg and Wan will discuss our operational financial results. [Non-English content] Updates on the April 29th ratification. [Non-English content] By the end of 2021, we had completed the vast majority of our ratification initiatives and were on track to clear the remaining issues that required prolonged efforts, including the closing of redundant subsidiaries, rounding off our online deposit products, and stopping sharing certain borrower data directly with financial institutions. Judging from information and insights gathered from all channels, including a statement from Mr. Guo Shuqing, Chairman of CBIRC, during the Q&A session of a press conference on March 2nd, we believe that the regulatory ratification process is gradually entering its final phase. We'll continue to push the ratification process towards the finish line and cooperate with the regulatory authorities for final review. Based on preliminary feedback from a number of relevant regulatory authorities, we are ranked in the front of the 14 companies undergoing regulatory review based on our ratification stance, execution plans, and accomplished results. We envision that these aforementioned assessments will be validated over time. [Non-English content] Local Financial Supervision and Administration Measures, the preliminary draft. [Non-English content] Although the preliminary draft mandates that local financial institutions shall not conduct business across provincial administrative boundaries, we foresee rather limited impact on Lufax for the following reasons. First of all, our guarantee companies have largely completed the establishment of a nationwide local branch network that enables us to conduct local businesses. Secondly, we possess a nationwide consumer finance license. Thirdly, we have sufficient time to stay attuned to new licensing requirements, devise proactive plans, and execute preparations as the draft regulation is currently still at a stage of public comments. With our abundant capital reserves, excellent compliance infrastructure, and sound corporate governance, we're well positioned to apply for and obtain a national microlending license or any necessary license should they become available. [Non-English content] Response to Chinese ADRs delisting risk. [Non-English content] Forcing ADRs to delist from the U.S. exchange will affect not just us, but all U.S.-listed Chinese companies. With such regulation's long-lasting and widespread impact, we believe that both Chinese and U.S. authorities are engaged in constant discussions. Since our public listing, Lufax has strictly complied with all relevant regulations in both countries and fulfilled our disclosure obligations. At the same time, we have explored ways for potential dual listing on the Hong Kong Stock Exchange and engaged in preliminary communications with relevant regulatory departments. [Non-English content] Thirdly, the outlook for 2022. [Non-English content] Having overcome many challenges in 2021. We enter into 2022 facing continued uncertainties. Knowing the further risks due to the macroeconomic slowdown and pockets COVID resurgence, we have made preemptive preparations. In the fourth quarter, we placed greater emphasis on credit asset quality by implementing more stringent risk management criteria. In 2022, we will focus on deepening our business transformation and returning more value to our shareholders. [Non-English content] Deepening our business transformation. [Non-English content] To ensure the quality of our income and the sustainability of our growth. We plan to deepen our business transformation and strike a balance between scale expansion and quality improvement in 2022. [Non-English content] In our retail credit facilitation business, to mitigate the impact of shifting market dynamics, we plan to strengthen our direct sales channel, recruiting more capable direct sales people, optimize our team structure and help them achieve greater productivity in addition to increasing the contribution of direct sales to our overall loan volume. We will also implement more prudent risk management measures to keep macroeconomic impact under tight control. [Non-English content] In our wealth management business, we strive to optimize our product mix, improve our user experience, enhance our service quality and efficiency, and secure our client assets principal value as well as return on investment. [Non-English content] These initiatives may cause some short term fluctuations in our results, but we are confident we will resume our growth trajectory in the second half of 2022. We are convinced that these business transformation initiatives are necessary to lay a solid foundation for our long term stability and growth. Greg will share more details of our business initiatives and financial guidance later. [Non-English content] Continue to reward shareholders. [Non-English content] Despite continued market volatility and uncertainties in 2022, we hold high confidence in our own prospects. Because of our steady profitability, quality cash flow and full capital reserve and preemptive compliance measures. As such, we will continue to reward our shareholders through share buybacks and dividend payouts. [Non-English content] In April 2022, we will distribute roughly 30% of our 2021 net profit to shareholders in the form of cash dividends equal to $0.34 per ADS. [Non-English content] In terms of share buyback. As of December 31st, 2021, we had completed about $860 million or 86% of the $1 billion total share buyback announced in 2021. On top of it, our board of directors has approved another $500 million of share buybacks in 2022. [Non-English content] Finally, I would like to reiterate our core competitive advantages born out of our exceptional business model. First, our business is fully in sync with China's national policy directive of supporting the real economy as we primarily serve small and micro business owners, mostly in wholesale trade, manufacturing, and retail industries. Second, we operate through guarantee licenses as well as our nationwide consumer finance license. Thirdly, we have a unique unparalleled insight into regulatory trends through our close dialogues with regulatory authorities. We have also accomplished thorough implementation of regulatory requirements by leveraging our domain expertise and financial DNA. The combination of these unique factors enables us to achieve business transformation and grow steadily and sustainably in a constantly evolving policy environment. Looking ahead, we will continue to uphold our commitment to maintaining full operational compliance, providing compassionate and inclusive financial services, setting ourselves as a role model for corporate governance among overseas-listed Chinese companies, and generating growing value for our shareholders and our society. [Non-English content] With that, I'll turn the call over to Greg, who will share our business updates in detail. Thank you, Chairman Ji. In 2021, we successfully and smoothly executed a series of operational adjustments to ensure the long-term sustainability of our growth and profitability. We reduced the average APR of our loan portfolio, increased self-risk bearing, and reduced our reliance on Ping An Life channel for sourcing. Our full-year revenue growth grew by 18.8% year-over-year, and net profit grew by 36.1% year-over-year, both exceeding guidance. In 2021, our retail credit facilitation business achieved a number of important milestones. First, we lowered our average loan portfolio pricing to 22.4% in the fourth quarter of 2021 from 25.7% in the same period of 2020 while maintaining overall unit economics. More details will be elaborated by James. Second, our business model is more in line to meet regulatory requirements. As Chairman Ji mentioned before, our guarantee company has set up locally approved subsidiaries in all of Mainland China except Tibet, Ningxia, and Yunnan provinces, allowing us to operate our financial licenses locally. In terms of potential future license requirement, we have a consumer finance license, which enables us to leverage up to 10% or 10x our capital as opposed to a 5x leverage ratio that is currently contemplated for the proposed national micro-lending license. Should any changes occur that give rise to a national or nationwide micro-lending license, we have the required capital reserves, eligibility, and preparedness to initiate our application for such one, giving us even more flexibility in serving our core small business owner segments. Our current guarantee licenses allow us to share credit risk and process data flows with more than 65 national and local funding partners under existing regulatory frameworks. In addition, we are actively exploring new collaboration to meet expected credit rating license issues requirements, which come into effect by mid-2023. We are prepared to connect to a third-party credit scoring company by the end of June this year. Based on our latest understanding, the cost of that connection and the potential changes to our business model will not have any material impact. Third, we continue to increase our share of risk-bearing in line with regulatory guidelines. During the fourth quarter of 2021, excluding the consumer finance company, we bore risk on 20.8% of new loans facilitated, up from 10% in the same period of 2020. Our guarantee company that bears credit risk operates with a leverage ratio under 2x at the end of 2021, against a maximum leverage requirement of 10x. Our healthy leverage ratio, together with strong capital position, gives us comfort to meet any new capital requirements that may come from regulatory changes. Last but not least, we saw improvements in the direct sales productivity and operating costs deliver steady growth and net returns despite sharply reduced reliance on Ping An. During the quarter, new loan sales from the Ping An Life channel continued to slow down, accounting for 24.6% of new loan sales during the fourth quarter, down from 36.4% in the same period of 2021. To counter this, our direct sales team contributed more by improving productivity. Compared to the fourth quarter of 2020, our direct sales generated 21.6% more volume in new loan sales, but head count only increased 8.4%, and productivity rose 12.1%. This increased investment in O2O direct sales reaffirms our view that our offline to online service approach is the most effective way to increase coverage of this otherwise hard to reach small business owner segment. Our wealth management business is also making good progress in a transitioning market. In the fourth quarter, total client assets of RMB 432 billion is overall flat but grew 13% year-over-year when excluding P2P and online bank deposit products. Meanwhile, we also deepened our product reform to effectively shift our focus toward high-value clients and higher take rate products. As of December 31, 2021, contribution to total client assets from customers with investments of more than RMB 300,000 on our platform increased to 81% from 76% of the same period in 2020. Client assets from customers with investments over RMB 1 million. Revenue on the platform grew by 14% year- over- year, and these customers have a clear preference for higher take rate products. We have differentiated ourselves by demonstrating consistent growth in high-value customers and higher take rate products, laying a solid foundation for future growth. As a result, our take rate in the fourth quarter was 64 basis points, increasing 19.9 basis points compared to the previous quarter. Driven by the optimization in product and investor mix, our wealth management business has improved economics. Going forward, we will further focus on higher take rate products and new growth on upper middle class customers as we continue to develop additional value-added services to bolster wealth management revenues. Now, let's take a look at the future strategies. In the second half of 2021, the transformation of Ping An Life business led to more notable decline in the business velocity and credit quality of customers sourced through the life channel. The impact of this decline is seen in the change in our overall C to M3 flow through rates, which deteriorated from 0.4% in Q3 to 0.5% in Q4. This deterioration deepened our resolve in Q4 to initiate change in our channel mix, further reducing reliance on the life channel and increasing the quality, productivity, and then the number of direct sales. In 2022, we will strengthen our direct sales channel by raising our recruiting standards, hiring more capable direct salespeople, providing them with more systematic training, equipping them with new technology, and overall helping them achieve greater productivity. Increasing contributions from direct sales will help sustain our new loan sales growth and should improve our overall loan portfolio quality as our direct sales force exerts higher control over the assessment of borrower creditworthiness than our referral channels. As a result of actions taken, we expect the C to M3 flow through rate to peak in the first quarter and normalize in the second half, creating limited financial impact in the course of 2022. In the next few months, we will closely monitor new loan sales, channel mix, asset quality, and productivity of direct sales to track our progress and demonstrate our success in this transition. Finally, regarding our guidance. Most of the impacts from these channel adjustments will occur in the first half of 2022, resulting in slower profit growth in the first half, but accelerated new business and profit growth in the second half. Our guidance for 2022 is therefore more detailed to reflect the timing of planned adjustments and one-time items. We expect our new loan sales growth to be relatively flat to low single-digit in Q1 and gradually picking up to 3%-6% for the first half. An accelerated growth in new loan sales should be witnessed during the second half, and we expect to grow new loan sales at 9%-12% for the whole year. We expect total income to grow 8%-10% for Q1, 10%-12% for both the first half and the full year. Projected profit growth for the full year is 11%-13%, with profit growth of -2% to 2% in Q1 and the first half. The slower profit growth in the first half reflects a number of year-over-year legacy related items in the first and second quarter, which suppress relative profit growth in the first half of 2022. If we remove the impact of these specific items, year-over-year net profit growth is expected to be 6%-10% in Q1 and 6%-9% in the first half, respectively. Lufax's management team has a track record of executing transformations, to ensure business sustainability, and profitability, and we believe this time is no different. By taking the short-term pain of making the channel transition in the first half, at a time we believe it is prudent to be prudent with overall growth, we will set strong foundations for steady, high-quality long-term growth. I will now turn the call over to James Zhang, our CFO, to go through the detailed operating and financial performance and our guidance for the year. Thank you, Greg. I will now provide a closer look into our fourth quarter results. Please note that all numbers are in RMB terms, and all comparisons are on a year-over-year basis unless otherwise stated. We concluded the fourth quarter with a solid financial result, achieving consistent growth in both the top line and the bottom line. During the quarter, our total income was RMB 15.8 billion, up 19.2% year-over-year, and our net profit increased by 1.7% to RMB 2.9 billion year-over-year. Without considering the one-time asset impairment cost, our net profit is RMB 3.4 billion, about 19.7% year-over-year growth. For the full year of 2021, our total income was RMB 61.8 billion, up 18.8% year- over- year, and our net profit increased by 36.1% to RMB 16.7 billion year- over- year. The growth in both income and the net profit for the full year of 2021 exceeded the high end of our previously announced guidance range. Additionally, our net margin for the full year of 2021 improved to 27% from 24% last year. Let's have a closer look at our operating numbers. First, we further reduced our APR while maintaining stable retail credit facilitation business unit economics. Our loan balance APR was 32.4% in the fourth quarter of 2021, a 3.3 percentage point decline from 25.7% in the fourth quarter of 2020. In comparison, our loan balance take rate was 9% in the fourth quarter of 2021, only 0.1 percentage point decline from 9.1% in the fourth quarter of 2020. Our loan balance APR was 23.5% in the full year of 2021, a 3 percentage point decline from 26.5% in 2020. While our 2021 take rate only declined 0.2 percentage points to 9.6%. As we continue to diversify funding sources, engage with more banking partners, reduce credit insurance premiums on our loan portfolios, and improve customer charging mechanism, which lead to diminishing impact from the early loan repayments. We will continue to maintain stable unit economics and drive relentless improvements in our sales and operating efficiencies despite APR declines. Second, we maintain a stable growth in our overall loan volume and further penetrated into core and targeted customer segments. On the retail credit side, we grew our new loan sales by 14.3% to RMB 151.6 billion during the fourth quarter of 2021, in line with our business focus on risk management under the current macro conditions. At the same time, we continued focusing on serving small business owners. During the fourth quarter, excluding our consumer finance subsidiary, 79.6% of new loans facilitated were disbursed to small business owners, up from 74.4% in the same period of 2020. On the wealth management side, despite the negative impact of P2P and online deposit products runoff, we managed to grow our total client assets to RMB 432.7 billion as of December 31st, 2021. Third, we continue to execute our plans to evolve our risk-sharing business while simultaneously maintaining asset quality. In line with prevailing regulatory requirements, we bore credit risks for 21% of the new loans we facilitated in the fourth quarter of 2021, up from 20% in the third quarter and 10% in the fourth quarter last year. As of December 31st, 2021, our outstanding balance of loans facilitated with guarantees from third-party credit enhancement partners accounted for 78.9% of the total outstanding balance of loans facilitated, down from 89.4% as of December 31st, 2020. All of the aforementioned operating metrics exclude those of our consumer finance subsidiary. Due to slowdown of macroeconomic growth, COVID-19 pandemic, and life channel changes, we saw some deterioration of overall asset quality. Thanks to our risk management system, the negative impact on our risk indicators are limited. Excluding consumer finance subsidiary, our DPD 30-day+ and DPD 90+ delinquency rates were 2.2% and 1.2% for the total loans we facilitated as of December 31st, 2021, compared to 1.9% and 1.1% as of September 30th, 2021. We will remain vigilant and be prudent on our borrower acquisition and risk management strategy. Fourth, we optimized our product mix to improve the take rate of our wealth management segment. During the quarter, our take rate for the segment increased by 19.9 bps to 64 bps from 44.1 bps in the previous quarter, primarily driven by our continued product mix optimization as we sharpened our focus on products with a higher take rate. Now let's take a closer look at our fourth quarter financial numbers. At the highest level, our total income in fourth quarter grew by RMB 2.5 billion or 19.2% year-over-year growth. While total expense increased by RMB 2.4 billion or 26.2% year-over-year growth, and then the net profit grew by 1.7% year-over-year to reach RMB 2.9 billion. While our operating related costs continue to remain flat due to efficiencies, total expense increase is primarily driven by the credit impairment cost due to higher risk sharing and a one-time asset impairment cost. Excluding one-time asset impairment cost, which was mainly due to the impairment loss of intangible assets related to Qianhai Asset Exchange and the Tianjin Guarantee Company, total net profit was RMB 3.4 billion, reaching 19.7% year-over-year increase. Next, let's go through financial numbers line by line. As the total income mix of our retail credit facilitation business continue to improve, thanks to the evolution of our business and the risk-sharing model, total income increased by RMB 2.5 billion or 19.2% year-over-year. During the quarter, while the platform service fee decreased by 10.4% to RMB 8.8 billion. Net interest income grew 81.5% to RMB 4.2 billion, and our guaranteed income grew by more than 538% to RMB 1.6 billion. In addition, other income, which is directly linked to delivering services to our financial partners, increased to RMB 769 million in the fourth quarter from RMB 452 million in the same period of last year. As a result, our retail credit facilitation platform service fee as a percentage of total income decreased to 51% from 70%. Because consolidated trust plans provide lower funding costs, we continue to utilize them in our funding operations, enabling our net interest income as a percentage of total income to increase to 27% from 18% a year ago. Moreover, as we continue to bear more credit risk, we generated more guaranteed income, reaching 10% as a percentage of total income, compared to 2% a year ago. By expanding our service to credit enhancement partners in account management, collections, and other value-added services, our other income as a percentage of total income increased to 5% from 3% a year ago. Our investment income decreased by 7% to RMB 359 million in the quarter, from RMB 386 million in the same period of last year, mainly due to the fair value losses from investment assets. In terms of wealth management, our total platform transaction service fees increased by 23% to RMB 708 million in the fourth quarter, from RMB 576 million in the same period of 2020. This increase was mainly driven by an increase in fees generated from our current products, which was partially offset by the runoff of legacy products. Turning to our expenses. In the fourth quarter, our total expenses grew by RMB 2.4 billion, or 36.2% to RMB 11.5 billion from RMB 9.1 billion in the same period of 2020, primarily driven by an increase in credit impairment costs and a one-time asset impairment cost. Total expenses excluding credit and asset impairment losses, financial costs and other losses increased by 4% to RMB 8.3 billion in the fourth quarter of 2021, from RMB 8 billion in the same period of 2020, remained almost the same as we further improved operating efficiencies. Our total sales marketing expenses, which include expenses for borrowers and investor acquisition, as well as general sales marketing expenses, decreased by 1% to RMB 4.8 billion in the fourth quarter. Our general administrative expenses decreased by 1.5% to RMB 971 million in the fourth quarter from RMB 986 million in the same period of 2020. This decrease was mainly due to our expense control measures. Our operations and servicing expenses increased by 15.2% to RMB 1.9 billion in the fourth quarter from RMB 1.7 billion a year ago. This increase was primarily due to the increase in trust plans management expenses, resulting from the increase in the usage of consolidated trust plans and growth in the outstanding balance of loans facilitated. Our technology and analytics expense increased by 29.5% to RMB 597 million in the fourth quarter of 2021 from RMB 461 million in the same period of 2020, mainly due to our ongoing investments in technology research development and the lower base in fourth quarter of 2020 as a result of Social Security relief during the COVID-19 outbreak. Our credit impairment losses increased by 187.2% to RMB 2.5 billion in the fourth quarter from RMB 985 million a year ago. This was mainly due to the increase of provisions and the indemnity loss driven by increased risk exposure, as the risk sharing at the total balance level has increased from 6.3% to 16.6%. It is worth noting that we grew our guaranteed income by 539%, a faster pace than expense, and continued to achieve positive profitability for our guaranteed business. Included in the credit impairment losses, there is also a RMB 260 million increase related to legacy products in wealth management business. Our finance costs decreased by 18% to RMB 267 million in the fourth quarter from RMB 326 million a year ago, mainly due to the decrease in the balance of convertible bonds following our C-round convertible notes restructuring and the increase in interest income resulting from the increase in deposits. Additionally, our effective tax rate was 33.3% during the fourth quarter of 2021, versus 31.9% in the same period of 2020 due to one-time deferred tax asset impact. For the full year of 2021, our effective tax rate was 28.6% versus 31.5% in 2020. As a consequence of the aforementioned factors, our net profit increased by 1.7% to RMB 2.9 billion during the fourth quarter from RMB 2.8 billion in the same quarter of 2020. Meanwhile, our basic and diluted earnings per ADS during the fourth quarter were RMB 1.26 and RMB 1.21 respectively. Our basic and diluted earnings per ADS during the year of 2021 were RMB 7.11 and RMB 6.69 respectively, represented a 27.2% and a 20.5% growth year-over-year. As of December 31st, 2021, we had a cash balance of RMB 34.7 billion compared to RMB 24.2 billion as of December 31st, 2020. Looking ahead, we expect an annual new loan sales growth to be at 9%-12%. The growth will notably be much higher in the second half due to the completion of channel optimization with annual increase at about 6%-8%. Credit-related provision growth will even out in the second half given the increased risk sharing already started in the second half of 2021. As a result, we expect our total profit to grow at 11%-13% for the whole year. Year-over-year growth will be similarly lower in the second half due to one time legacy P2P related items in 2021. The profit growth rate will pick up in the second half once the channel optimization impact starts to come through and the credit costs are all normalized on annual basis. Next, let me give you some specific guidance for Q1, first half, and all year. For the full year of 2022, we expect the new loans to grow by 9%-12% year-over-year to the range of RMB 706.8 billion- RMB 736.2 billion, wealth management assets to grow by 2%-3% year-over-year to the range of RMB 441.3 billion- RMB 445.7 billion. We expect our total income to grow by 10%-12% year-over-year to the range of RMB 68 billion- RMB 69.3 billion, net profit to grow by 11%-13% year-over-year to the range of RMB 18.6 billion- RMB 18.9 billion. For the first quarter of 2022, we expect new loans to grow by -2% to 2% year-over-year to the range of RMB 169 billion- RMB 177.8 billion. The wealth management client assets to grow by 2%-3% year-over-year to the range of RMB 439.6 billion- RMB 433.8 billion. Since retail credit facilitation income is recognized over the life of a loan and is more driven by loan balance, we expect the total income to grow by 8%-10% year-over-year to the range of RMB 16.5 billion- RMB 16.8 billion. In the first quarter, net profit will grow -2% to 2% year-over-year to the range of RMB 4.9 billion- RMB 5.1 billion. If excluding the legacy P2P impact in 2021, net profit is expected to grow by 6%-10% year-over-year. For the first half of 2022, we expect the new loans to grow by 3%-6% year-over-year to the range of RMB 334.8 billion- RMB 344.6 billion, wealth management client assets to grow by 3%-4% year-over-year to the range of RMB 433.7 billion- RMB 437.9 billion. We expect our total income to grow by 10%-12% year-over-year to the range of RMB 33.1 billion- RMB 33.7 billion. The net profit to grow by 1%-3% year-over-year to the range of RMB 9.8 billion- RMB 10 billion, and by 6%-9% excluding the legacy P2P impact in 2021. This forecast reflects our current and the preliminary views on the market and operational conditions, which are subject to change. This concludes our prepared remarks for today. Operator, we're now ready to take questions. Thank you. Ladies and gentlemen, if you like to ask a question, please press star four by one on your telephone keypad now. If you change your mind, please press star four by two to withdraw your question. Will bearing, to ask your question please ensure your phone is on motto locally. We have our first question from Richard Xu from Morgan Stanley. Richard, please go ahead. Sure. Thank you, Management, for the detailed explanations. I have, you know, just some additional questions on the, I guess, reform of the direct marketing channels. Could Management provide a little bit more details in terms of what's entailed? And then, we noticed basically in the past couple of years, management in China have been reducing the, I guess the cost for the direct marketing channels. Will this lead to rising costs, cost income ratio, from the reform of the direct marketing channels? For the insurance channels, any expectations in terms of the contribution from those channels in a couple years? Yep. Thank you. Okay, let me answer that question and then Greg can supplement if I miss any. Let me first give you the overall picture on the new loan sales trend by channel, if I talk about this reform. If you look at our total new loan sales growth ratio in 2021, it was 14.8%, 16.9% from direct sales, while life channel made -7% growth. In the fourth quarter, quarter-on-quarter, the total loan grew by 14.3%, in which direct sales, they delivered 21.6% growth, while life channel made -23% growth. If I share January, February number, DS channel, they are still delivering through this growth. Life channel contribution, their sales volume dropped, I mean, compared with the same period in 2021, their sales volume dropped by almost 40%, right? As a result, the life channel contribution ratio to our new loan sales, it dropped from 36% in 2020, down to 29% in 2021, and then down to 24% in fourth quarter last year. If I measure January- Feb number, it already came down to 20%. It's quite a rapid decrease. This is a result of our management decision. This is what we exactly intended because if you understand the difference of net flow, C2M to net flow of DS channel and life channel, as of today, the life channel's credit quality, which is measured by net flow, is almost 50% higher than that of direct sales channel. We have to control and then safeguard our portfolio quality. Going forward, I believe this 20% life channel contribution ratio will be maintained because we believe we took all the major actions by now to curb the rising risk of life channel. Going to our direct sales reform. It's obvious that we have to increase sales volume from direct sales to cover the short from life channel. I want to emphasize DS reform. What we mean by DS reform is not to fix an issue. DS channel alone is a good channel. As Greg said, fourth quarter last year, DS channel sales volume growth rate was 21.6%, which was delivered by 8% headcount growth and then 12% profitability growth. So DS channel is very strong now in terms of new sales, delivery and credit quality. The DS reform we are doing now is to increase DS channel contribution in sales, new loan sales volumes. Of course, we want to achieve this through per DS profitability increments rather than having more and more direct sales. Okay? So what we do is we create Youcai Jihua that we launched from fourth quarter last year. If we analyze our DS mix, we find that the group whose sales experience is more than three years before they joined us and married and have reasonably indebted, so they need to work hard for family. Those groups used to take about less than 10% of our new hire, but it increased to 45% by January this year. For that, we put extra input. We increased the fixed salary to attract more Youcai. Then gradually we changed fixed salary to a variable commission. Then it's very obvious that exit time will be six. Our analysis shows that this group of Youcai, they show obviously higher profitability than other group. If we have more and more Youcai group, eventually this will further reduce our sales expense because direct sales expense components, one third are fixed and two thirds are variable. When we have more and more higher profitability direct sales, it will eventually also decrease our direct sales sales cost. Once those groups prove they can deliver higher profitability and the low delinquency ratio, we want to change the role from simple sales force to customer relationship manager, so they can manage not only sales, but also second loan, third loan sales, complaint handling and all related delinquency management. Eventually, we incentivize them based on balance, current balance instead of loan amount, new loan amount. If you see our trailing quote, I believe this task, compared with what we achieved in the last years, for example, like recovering from the pandemic impact ahead of other players or increasing self-service portion from 1% to about 20% in cooperation with 65 partner banks, five trust companies, and keeping the net margin unchanged, despite we sharply decreased our APR. Compared with those tasks, I think this is a relatively simple task that we have full confidence, and you can see that, how we deliver this. Richard, any follow-up question on that? That's pretty clear. Thank you. Okay. Thank you. We now have our next question from Hans Fan from CLSA. Hans, please go ahead. Thank you management for giving me this opportunity to ask question. I actually have two questions, if I may. The first one is actually on the take rate in fourth quarter. We note that the take rate was down a lot QoQ to 9%. Can you please elaborate on the drivers behind this? And also if you look into this year in terms of take rate, how do we see the change there? That's the first question. The second question is on the regulatory side. Just now Chairman Ji mentioned. Oh, sorry. Greg mentioned that by end of June, is likely Lufax will finish and connect to the third-party credit scoring companies. Just wondering how likely this is to happen. Is that 100% sure? Have we consulted with the regulators on this yet? Because this is something we really cared about by the market. Just wondering how confident we are on this. Thank you. Cheers. Thanks. Let me answer your first question first. About the take rate. Normally the fourth quarter is the period we have the lowest take rate and margin. If you compare year-over-year, 2020 and 2021, the balance based UE actually didn't change at all. If you also look at what we show later, if you look at our new business UE, our net margin didn't change any. While our APR dropped from like a 20% to almost 27% down to 23%, which is like a full percentage point. Going forward this year, how do we see the take rate and net margin trend? Greg said in his speech he said all the key lines, like the new loan size, the balance, revenue and net profit, he estimates will increase by around 10%. That will indicate we believe this year our take rate net margin will not change much. Why? Number one, about the price discussion. Our average blended APR for new loan now is around 20%. We believe this will meet regulatory requirement, and then we don't see any need to further reduce our APR for new loans. Price we think we can maintain the current level for new loans while we can save further expense from operational costs and the funding costs. That can be offset by increasing credit costs in the first quarter, second quarter. Overall, so I believe this year net margin will remain not much changes. On the regulatory, the Duan Zhi Lian for June. Duan Zhi Lian, we are ready with a new process of working with Bairong. That process can be ready, fully ready by June this year. We haven't got clear signal, clear guidance from PBOC yet. We submitted our plan, we haven't got clear answer, we are waiting. Even if we do that, let me add just one more comment regarding the cost. It will cost us about RMB 300,000 a month. Cost-wise it's nothing, but I'm just telling you that process-wise, we are fully ready. Why, it's one of the reasons that the PBOC hasn't given us a clear answer yet, is they're still also not sure, in the sense that our guarantee license- Yes. is already enabling it. We are a guarantee, financial guarantee licensing company. They are not sure yet whether we have to follow this process. So we are waiting. Right. Right. And, also I remember in last time in third quarter briefing, the management mentioned that there's also a potential chance we are seeking the possibility to apply for license of credit scoring company. Is that still on the table? Yeah, that's on the table. But, Bairong, you may know that 8% of their shares is owned by Ping An. Right? Mm. It’s aimed. We also have a stake in that company. Our plan that you mentioned, this deal, is still going on. Understood. Thank you very much. Next question, please. Thank you. We now have a question from Thomas Wan from Goldman Sachs. Thomas, please go ahead. Thank you, Management. It's a good set of numbers. Congrats on that. Can I just check on the full year 2022 guidance? If I roughly work on new loan numbers, first half guidance is only 3%-6% and the full year 9%-12%. It roughly works out 15%-20% implied for the second half. Can I just sort of get your thought on if you extend it little bit further, do you think this is kind of a sustainable type of new loan facilitation growth? Or have you factored in some sort of pent-up demand in the number, we may see some even normalization going forward in 2023? Just get your thought on why you think the second half numbers in that range. Thank you. Okay. I think the key here is, the new sales. If you remember first quarter, guidance number, we believe new sales, will not make obvious growth from the previous year. The biggest reason is, as I said, the life channel contribution, they, their sales volume dropped almost by 40%, right? Even if direct sales should grow by two digits, it cannot offset enough the short term life channel, the sales volume decrease. It'll take some time, but going forward because we believe, the 20% sales contribution ratio from life channel, this will be maintained because we took all necessary actions by now. The rest going forward, will gradually increase over sales volume by developing more and more direct sales channels. It takes time. That will happen from second quarter. From second half you will see the obvious sales growth rate versus last year by more than double digits. That will drive our revenue and net income growth in the second half. And so, you know, and Thomas, if you take that, you know, as far as we can tell, the contribution from Ping An Life this year will be about 20%. That may be true for another year or two, right? Depending on the speed of the transition at Ping An Life itself. If you take that into account, rolling into 2023 with the reform on the DS side or the strengthening of the direct sales side, then to go back to a more, you know, for a 15% level that you're seeing in the second half into 2023 is possible, right? It is an adjustment in the first half of this year, which is slower. As you look at the second half of the year, that is a good indication to where we think things are medium term. Got it. If I take it, basically if the market's still there, it's not anything. You're kind of adjusting internally on the channel on your sales force or that's why you have this kind of a dip in the first half for 2022. If I may have a follow-up. Obviously the direct channel plays a bigger part in this growth to drive growth. Where are you hiring kind of those new direct sales personnel and so what type of person you're hiring and then how you're sort of training them? Yeah. Through we are hiring locally. We have 25 local branches. They're hiring their own direct sales. We are specifically targeting, as I explained, we call them Youcai. They have different profile. If we analyze who's delivering higher sales volume, higher productivity, and low delinquency ratio among our direct sales, almost 60,000 direct sales, we found that, in general, those who had sales experience more than three years before they joined us, and then who got married. There are several profile indicators. We are specifically targeting to hire those groups. Those groups used to take less than 10% of our new hire last year, especially first half. As of today, they take about 40%, more than 40% of new hire. We are making progress. How to hire them because earlier the reason they didn't want to or they hesitated to joining us was because our fixed salary at the beginning was very, very low. We changed it. We are offering higher fixed salary in the first six months, and then gradually we switch the portion. We gradually reduce fixed part and increase variable bonus based on their performance. This is resolving hiring issue. How we educate, how we train them. We have the curriculum supplement. We developed the online training tool through our sales app. Through that, we provide a lot more efficient training than before. It's not offline. We provide for different target group, different DS group, different profile. We provide different set of training through online sales app. I think that the interesting thing here, Thomas, to sort of just hit your point is that for the first half, this is to a certain extent self-imposed because we want to maintain the sort of long-term credit quality as a key criterion. Just recognizing that was a necessary change to make given some of the transformations on the Ping An Life side. I think that what Y.S. has laid out, what becomes interesting over time when you move into maybe next year is this Youcai group, this more experienced, more stable group of salespeople over time, the ability to deliver on a customer management model rather than a pure loan sales model is very powerful for our economics and our productivity. That at the end of the day is what we're really trying to build. The work behind that as well is really on the technology side to give them the tools to drive that customer management in an efficient way. This is kind of a more medium term transition that you should see come through. It's more about changing mix, in the first half of this year, but then it also involves changing a little bit business model and how we serve customers as you go into the medium term. Got it. Thank you, Thomas. That's it. Thank you. Yeah, please move to the next and last question please, operator. Sure. We now have our last question from May Yan from UBS. May, please go ahead. Oh, okay. Thank you. Thank you for giving me this chance to ask the last question. I actually have three questions, if I may. The first one is to, [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] Oh. [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] Right. [Non-English content] OK. [Non-English content] OK. [Non-English content] [Non-English content] Thank you. Oh. May, please clarify. [Non-English content] May, sorry to interrupt. Please kindly repeat both of your questions in English. Thank you. Oh，sorry。 OK。 Why do I? Finish the question. Sorry May, shall I do a quick summary of the Q&A just happened before we move on to next? Yeah, please go ahead. Yeah. The question was on the regulatory stance of the April 29th ratification, and whether there's likely going to be more scrutiny or regulations coming for the loan facilitation model. That was the question. The chairman's answer was based on our overall judgment, obviously collecting information insights from a number of channels, including talking to various departments and talking to some of the other platforms in the 14 that are going through the review. We are forming a view that it is number one, it is coming to an end. The process is coming to near the end of completion, given that it is about a year long. Second, Lu Holdings is one of the better ones. We're not saying we're the best among the 14, but we're definitely one of the better ones. That's based on our judgment, again, hearing from multiple departments and talking to multiple people. In terms of the end result, personally, I don't think there will be an exact ranking of the 14 platforms, but I won't be surprised to see if, you know, there are groupings of different types of platforms. For example, there could be two types. The first type is the ratification is almost complete or there's clear and acceptable plan for the ratification. The second group, you know, there is not exactly acceptable plans to complete the ratification. In terms of timing, look, we've been saying to the regulators all along, given it is coming to the one-year anniversary. We do think we need this to conclude, and I'm pleased to say that I think people at the PBOC and the CBIRC and CSRC, they do hear our views and they do agree with us that they want to bring this to a conclusion. In terms of what we've done in the past two years, I think through this process, very importantly, we've kind of rebuilt our trust with the regulators. Through the process, obviously, we have redesigned a lot of our business models to be more compliant. In terms of the new regulations on loan facilitation, based on my communication and personal understanding, we think the regulations is already enough. The focus is more on the actual implementation of those regulations, including some that are still going through consultation. The regulators would like to see the outcome of the early implementation rather than throwing out new ones. May, go ahead with your other two questions, please. [Non-English content] Sorry my question so long. The other two questions I have, one is still regarding the business channel transformation, that you mentioned the direct sales channel would have better asset quality. I think Greg mentioned that the N3 flow ratio has deteriorated a bit in the fourth quarter as you increase the business sources from direct channels. Is that mainly because of the macro environment changes that some retail loans are having some deterioration in the asset quality? Is it also because of some other reasons that maybe the life insurance side business have deteriorated a lot more? The second sort of small question is about take rate on the wealth management. You mentioned that the take rate has gone up. What kind of product was mainly driving that and also going into the future how the take rate improve further? Thank you. Okay. The second question about the asset quality deterioration in the fourth quarter. Yeah, we confirm. It's mainly because of the impact from life channel. If you exclude life channel and only for the performance of the other channels, especially direct sales channels, that is quite stable. Little bit impact in December, January because of the lockdown of Harbin and Xi'an where we have two collection centers. That made minor impacts on our collection performance. But mostly, the majority of impact came from the life channel situation. That's why we made repeated adjustments to channel mix. Maybe, May, I'll take your question on wealth before going back to Chairman Ji. On wealth, basically what we did through the course of 2021 is we let lower margin products kind of run off. And replaced them more with more focus on qualified investor products. And also, gradually, the fund mix is also changing too within mutual funds to higher margin products. And then we're also adding insurance services, which are higher margin. So all of those together, as well as some of our services to third-party platforms, fees that we collect, providing our technology to other financial institutions, have been growing as well. If you take those in cumulation, we see the number. It's, I think, 69 basis points in the fourth quarter, which was up a lot year-on-year. I expect in 2022, we'll continue to see improvement on this revenue over AUM. You know, adding another 10 basis points over the course of the year is probably a realistic expectation. [Non-English content] Mm-hmm. [Non-English content] Again, a quick summary of the Q&A just happened. The question was on the exact timing of the April 29th conclusion announcement and whether that would impact the Lufax Hong Kong listing. The answer is, again, the Chairman personally, and he stresses many times that it's his personal judgment that the announcement will likely be made in one go instead of separate announcement for each of the platforms. On that announcement, there's likely going to be that obviously there's one group that the ratification is almost done or the plan is acceptable, so they're okay to move on to other things. The remaining group plans are not acceptable, will require continued monitoring and scrutiny from the regulators. He believes will be one announcement. Personally, he does not think that's going to be too long. Of course the exact timing will need to wait for regulators' formal announcement. In terms of Hong Kong listing, yes, the April 29th ratification will impact the timing of Hong Kong listing. Before we complete that, we will not go to Hong Kong. We have made preliminary discussions with PBOC, CSRC, CBIRC, and the Cyberspace Administration of China. So obviously, Lufax will not pursue a Hong Kong IPO until we get blessing from those relevant regulators. The last point on the China-U.S. relationship, through our channels, we believe the regulators from both sides are having continued dialogues. We're trusting their wisdom. As you know, the impact of a forced delisting of the Chinese ADS will be too big for both sides to take. We think they are currently working very hard, and we hope a conclusion or some sort of plan or compromise will be reached soon. Thank you, operator. I think that concludes our call today. Thank you. Thank you. Thank you, everyone. Thank you. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your line.