Ladies and gentlemen, thank you for standing by, and welcome to the LexinFintech first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. I must advise you that this conference is being recorded today. I would now like to hand the conference over to your first speaker today, Ms. Jamie Wang, IR manager. Thank you. Please go ahead. Thank you, operator. Hello, everyone. Welcome to LexinFintech first quarter 2022 earnings call. With us on the line today are our CEO, Jay Xiao, CFO, Sunny Sun, and CRO, Jayden Qiao. Before we get started, I'd like to remind you that the call and presentation contain business outlook and forward-looking statements, which are based on assumptions as of today. The actual results may differ materially, and we undertake no obligation to update any forward-looking statement. Jay will first provide an update on our performance, Jaden will then discuss risk management, and lastly, Sunny will then cover the financial results in more detail. I'll now turn the call over to Jay. His remark will be in Chinese, and English translation will follow. Jay, please. Good morning, everyone. 1Q 2022 was a quarter full of uncertainty and challenges. In China, a number of major cities like Shenzhen, Shanghai, and Beijing have had to deal with the resurgence of COVID. The unpredictability of the pandemic has dented consumer confidence and led to a slowdown in the economy. Beyond China, the external environment is also highly volatile, with high inflation in the U.S., a Federal Reserve that is committed to further rate hike, the squeeze in liquidity, volatility in the Sino-U.S. relations, and the conflict between Russia and Ukraine. These factors combined have been clouding the performance of capital markets. They have also caused more uncertainty to our company and the whole sector. It's difficult to predict how these factors will develop in the next few quarters and how they will affect our operations and the execution of our strategy. From COVID alone, the impact to the society and economy has surpassed that of 2020. We have always been proactively analyzing the situation, how consumer behavior will change, and how the change in capital markets will affect listed companies. Given the economy, pursuing scale at all costs will expose the company to more risk. We will work on the following instead. First, proactively responding to external change and adjusting operation and strategy to ensure asset quality. Second, further solidifying our foundation, increasing the operational efficiency. Third, staying committed to our strategy in order to improve the diversification and quality of revenue. The management are committed and confident that we can handle the challenge and continue to build up a solid foundation to achieve long-term sustainable development. We have successfully navigated multiple policy changes in the past few years. Since our inception, we have facilitated over RMB 702 billion of loans and amassed a user base over 171 million. These are testament to our capability. 2021年末，因区域政策导致资金资产错配的问题已经逐步得到缓解。三、公司在金融科技、科技零售等新业务板块进行合理的资源投入，坚定地推动公司的收入多元化、风险分担多元化的战略目标。一季度公司来自无信贷风险收入占比达47.7%，同比增长10.1%。四、在合规的层面，公司APR下调工作稳步推进，一季度APR为25%，其中24以内的支撑比例已经达到77.8%。作为行业领先的金融科技平台企业，乐信积极响应政策号召，为受疫情影响的小微企业、个体工商户提供信贷支持，支持复工复产。截止一季度，乐信已经为小微企业提供贷款约42.4亿元，环比上升9.5%。 In the first quarter, the loan origination volume reached RMB 43.2 billion and the outstanding loan balance RMB 83.8 billion. To be honest, we're not pleased with the quarterly results. We have the potential to do more, but on the other hand, it should not be a disappointment because we had already done our best in responding to change and adjusting the operations. First, we further manage risk and control the impact from COVID by focusing on serving existing low risk users and reducing the high risk tail. Comparing the 1Q 2022 to 1Q 2020, all risk and profitability indicators were better this time round. Second, we have been broadening the funding channels. Nationwide partners already made up 76% of the total funding in the first quarter. The mismatch in asset and liability due to the original policy restriction that we experienced from the end of 2021 is now being addressed. Third, we continue to invest in new growth opportunities, including the technology-driven and new consumption-driven businesses. It's our strategic goal to further promote the revenue diversification and our risk management capability. In the first quarter, noncredit-driven services made up 47.7 of total revenue, up by 10 percentage points year-over-year. Fourth, in compliance, we have been making further progress in bringing down the APR. In the first quarter, the APR went down to 25%. The mix of assets within 24 reached already 77.8%. Lastly, as a leading fintech platform, Lexin is fully aligned with regulatory priorities. We have been providing credit support to SMEs and sole proprietors, facilitating the re-resumption of their operations. In the first quarter, loans to small and micro businesses amounted to RMB 4.24 billion, up 9.5% quarter-over-quarter. 正如我在年初向大家介绍的那样，公司将致力于三个战略重点。第一，精细化运营，加大存量客户价值的挖掘，在风险稳定下提升公司的盈利能力。二，实现收入结构的调整，提升收入质量，推动收入多元化，加强服务平台的属性。三，公司管理体系不断优化，达到持续的降本提效。在经营环境存在极大不确定性的情况下，实现公司全年GMV增长10%存在较大的挑战。但在调结构、控风险、成长原则下，我们将仍为实现此目标不懈的努力。在全面落地24%的定价基础上，仍然有信心将全年的take rate维持在一季度的水平，并尽最大努力保持在3%左右。目前来看，二季度新增贷款规模有望高于一季度。 As I explained earlier this year, we are committed to three strategic priorities. First, strengthening the management of existing customers so as to increase the profitability while ensuring risk performance. Second, enhancing the revenue structure to promote more diversification and service nature as a platform provider. Third, optimizing the management system to further increase operational efficiency. Given the uncertainty of the macro and operational environment, it's challenging to achieve loan growth of 10% this year. Though we do expect 2Q loan origination volume to be higher than this quarter, we will bring our best. Business structure and risk performance matters more than scale. We will also work towards the 24% policy goal and keeping full year take rates at similar level to this quarter, the first quarter 2022, while trying our best to aim for 3. 外部环境的变化及疫情的反复，在未来一段时间仍将面临不确定性。在此环境下，有危也有机，公司将采取有力的措施应对这些变化，并为实现全年的目标努力。我们也注意到，近期国家稳经济已释放一些正向信号，刺激信贷增长，提升市场流动性，对行业将有利好。近期，央行宣布互联网金融风险整治工作的实施，行业政策和发展也将逐步走向成熟。在下半年，相信在各种稳经济政策的刺激下，国内的经济将逐步转好。我们有信心穿越这个周期，不断为股东创造更多的价值。 In summary, the external environment and COVID situation remain highly fluid. There will be both difficulties as well as opportunities. We have been implementing mitigating measures and will continue to work towards our target. On the policy front, the authorities have been sending signals to support the economy, driving credit demand and promoting market liquidity. Moreover, the PBOC has also made positive comment on the industry rectification for internet finance. The policy regime and development of the sector is getting more mature. These are all steps in the right direction. In the second half of the year, we believe that the domestic economy will gradually turn around in the presence of stimulus policies, and we are confident that we can ride out this cycle and continue to create more value for our shareholders. Now I'll pass it to Jayden, and he will discuss about our risk management. Jayden, please. Thank you, Jay. Thank you, Jamie. Good morning, everyone. Let me elaborate more on what we've been doing in response to the surge of COVID. We have tightened the entire user acquisition process from advertising to credit in areas most hit by COVID. Marketing spending has been reduced and selection criteria revisited in order to manage exposure to high-risk users. We are dedicating more resources to existing relationships where the visibility on credit performance is much higher. Overall, day one delinquency has been going down every month this year. Since the second half of last year, in response to the 24% loan pricing, we have already taken mitigating actions to reduce exposure to high-risk users. The customer structure is therefore much stronger than a year ago. This has strengthened our defense against the surge in COVID in this wave. With the improvement in customer mix, day one delinquency is also better and is now 12% lower from the end of December last year. 30-day collection rate, on the other hand, recorded a modest decline in March and April, but we are seeing signs of stabilization in May. Back two years ago, when the pandemic first started in Wuhan, most of the collection team was located in the city and the operation suffered a major interruption. After the incident, we have decentralized the presence, upgraded the system, and revisited the credit policy to make sure that we can respond more swiftly. We're therefore in a significantly better position to cope with the situation this time. The increase in 90+ delinquency was within expectations given the macro environment and the reduction in outstanding loan balance. The extent of increase is a better indicator for our ability in managing asset quality. Relative to some of the bigger players, we have been able to show more resilience. What China is going through is unprecedented. The visibility on the path to recovery is not the best, but we're constantly refining our strategies to enhance the risk models and analytics. The risk management team is also working more closely with marketing and business development teams to budget customer acquisition as well. In short, we're much better prepared than two years ago. Thank you. I will now pass it over to Sunny. Thank you, Jayden. Thank you, Jay. Hello, everyone. It's my pleasure to speak to you again. The management team are dialing in from different locations today. With widespread lockdown measures to contain the pandemic, economic activities have faced different degrees of interruptions or even complete shutdown. In the first quarter, we made a decision to step up the provision so we can have a stronger buffer to weather the turbulences. Most of the increase was reflected in day one provision for new loan originations. This is the main reason behind the drop in revenue. Just to recap, most of the provision for our contracts is recognized as deduction to revenue. Further decline in loan pricing is another factor. Loans priced within 24% APR reached 78% of loan origination in the first quarter, up by 40.5% year-over-year and 18.5% quarter-over-quarter. Volume did hold up well given the current environment. Loan originations reached RMB 43.2 billion, down only by less than 1% quarter-over-quarter. The outstanding loan balance stood at RMB 83.8 billion, just a slight drop of 2.5% quarter-over-quarter. Consumer sentiment has become much more subdued, and most of all, we have also tightened credit assessment. On the funding side, about 76% of the funding in the first quarter came from nationwide funding partners, up by more than 10% from the fourth quarter. Funding costs began to climb at the end of last year when regional financial institutions pulled back from cross-border lending. This shock led to a mismatch between assets and liabilities, which has since been gradually resolved. The offline Puhui team has been effective in meeting the needs of our regional partners. At the headquarters level, we have also got more nationwide relationships. The uptrend in funding costs has since reversed. With now a dedicated sales team, we expect to bring on board more national partners. The top-line performance is always subject to external volatility, from regulatory to macro to COVID. This is the nature of the credit business. We are proud to see how quickly Lexin is able to adapt to new changes, and how teams from across the company can quickly adjust our operations and support each other. Now let me go through the expenses. Sales and marketing expenses rose 4% year-over-year to RMB 360 million, a seasonal trend as we laid out the full year foundation in first quarter. For the loan facilitation business, we did adjust the acquisition strategy and scale back advertising in areas affected mostly by COVID. This was done in March. There was also spending related to the expansion of technology-driven services and the new consumption-driven services. Research and development rose 23% to RMB 153 million, reflecting our continuous investment in technology to support business initiatives. G&A expenses went down by 11% year-over-year to RMB 170 million. It was a drop both year-over-year and quarter-over-quarter, demonstrating the continuous improvement of our operational efficiency. Net profit did decline and went down to RMB 81 million in the first quarter, but the business remained profitable. Our cash reserve also remains solid. Cash position stood at RMB 5.6 billion at the end of March, 9% above last year. The increase in shareholders' equity was 30% in the same period to RMB 8.2 billion. In these challenging times, we remain focused on building our long-term capabilities in order to stay compliant and resilient. On the regulatory front, we maintain constant dialogue with regulators. We have been reinforcing internal control and processes and carrying out self-examinations based on the same requirements as the 13 platforms. The priority is to ensure the stability of the credit-driven business while broadening the reach into technology-driven and the new consumption-driven services. The contribution from noncredit-driven services increased by 10% year-over-year to 47.7% of total operating revenue in the first quarter, demonstrating the progress in diversification. We have already built up a large base of individual users and insights into Chinese consumers, which we can leverage to generate more to-B and to-F opportunities. Our relationships with to-B and to-F can also serve to further enhance our interactions with to-C. The current environment is not easy. The past quarter saw a sharp rise in COVID numbers in a few regions and the government instituting lockdown and other restrictive measures, some of which are much more stringent than the previous outbreaks. This is not the first time that Lexin has to come from uncertainty. The business fundamentals are more solid than two years ago when COVID first started. We are at a stronger position to respond to change. The recovery path will not be a straight line, but we believe both China and Lexin will come out of it stronger. Thank you. Operator, we're now open to taking some questions. Thank you. Ladies and gentlemen, we will now begin the question- and- answer session. If you'd like to ask a question, please press star one on your telephone and wait for your name to be announced. If you need to cancel your request, please press the pound or hash key. Once again, that's star one to ask a question. Our first question will come from Alex Ye at UBS. Please go ahead. My first question is on the outlook for take rate. Just now mentioned, the company will try to maintain your take rate for the full year at around the Q1 level of around 3%. I'm wondering if you could give us more color on how both the asset quality and your pricing cut will have even impacts we're looking at in the coming quarters. In particular, if we assume your asset quality is sequentially improving from May, shouldn't we expect your take rate to also improve sequentially? Second question is on your capital light percentage contribution in terms of loan volume. Could you give us some color on the current percentage in Q1 and the plan ahead? Thank you. 我先讲中文嘛。非常感谢你的问题。我理解正确的话，第一个问题是关于这个take rate的。那刚才Jay、Jayden，包括我，其实我们都有提到，那么整体的话呢，因为疫情的原因，由全年的这样的一个经济的状况和外部的宏观的状况都有相当多的不确定性。那么在第一季度，我们的take rate现在是在两点七percent左右，那么我们全年呢，仍然是希望能够做到百分之三，当然这是有一定的这个挑战和困难的。那么之所以我们还是有挺多的信心的，而且呢我们也愿意为此而努力的原因呢，有这么几个，一个呢是说在这个贷款的成本，虽然我们在Q4的时候，包括Q1的时候呢，略微有一点增高，但是呢，现在已经有了比较明显的下降的趋势，所以呢，在贷款的成本的上面呢，我们认为是会相对稳定的。那么从风险这个角度来看呢，刚才Jayden也讲了，虽然在三十加和九十加呢，都略微有一点的这个提升，但是目前我们已经，如果疫情不再加剧的话，我们已经看到了风险的这个趋好的这样的一个趋势，所以我们在风险的整体的一个趋势上还是有一定信心的。当然这是建立在这个整体的经济环境不再恶化的这样的一个前提条件下。另外呢，刚才Jay也有提到说，我们对于目前的这样的一个经营重点是在我们的存量的客户，那么我们对存量客户，他们过去的历史，对他们的信息，对他们的消费的行为有更多的这样的一个理解，我们也在不断地加深分层、分客群的这样的一个对他们的分析。所以呢，我们认为风险在这样一个更加精细化的管理之下，也会得到有效的控制。所以我们觉得呢，在整体的这个情况下呢，应该是说在take rate的角度，还是能够这个维持在一季度的这样的一个水平。这是第一个问题，是吗？那第二个问题我理解是在贷款的分润模式的占比。分润的模式的占比，这个事情呢，就是，现在呢，我们是，就是分润这一边的占比比去年的Q4略微降低了一些，这个呢，一方面呢，是我们在，就是刚才Jay已经讲了，我也讲了，就是说我们在今年的这个工作的这个重点呢，并不是单方面地追求规模，也不是单方面地追求某一个指标，而是以利润率，以这个降风险，这样的一个稳健的一个经营的这个模式下。所以呢，分润现在呢是略微有一些下降，我们认为会在下面的Q2、Q3呢会逐渐稳定下来。但是，我们并没有刻意去追求说分润的占比一定要在一个什么样的水平。在大多数的时候呢，我们的分润占比是在25%、30%这个样子。我不知道是不是回答了你的问题。 我补充一下吧。就关于轻资产这一块，我认为这个不是我们追求它的比例的提升，不是我们接下来工作的重点，我们追求整个的收入，还有利润的最佳的一个平衡吧。 我刚才已经用中文回答了问题，如果需要的话，我可以把这个在英文再重新回答一下好吗？关于刚才讲的 take rate 的这个问题，我再重新回答一下。 The first question regarding the take rate. I understand the question is about how we can maintain the take rate at the Q1 level, which is currently at 2.7%, and while we are trying our best and strive to maintain the 3% take rate for the full year. To start with, as Jay Xiao and Jayden Qiao and myself outlined earlier, obviously there are a lot of uncertainties associated with the macro environment, and if the COVID situation is not getting worse in China, we believe that we'll be able to, first of all, maintain a stable funding cost. In Q4 and Q3 this year, our funding cost went up a little bit to above 8%, but we have seen a very clear trend that it has been stabilized in Q4, and we believe that the funding cost will be stabilizing and will be maintained at between 7.5%-8%, this year. Secondly, I think in terms of the risk cost and the level of risk, Jay and Jayden have also outlined. First of all, we will be focusing on managing the existing customers and we have a lot of data about them. We understand their behavior and we also have clearer—we also have digitalized segmentation, analyzes regarding these existing customers. Therefore, we feel that we'll be able to manage the risk in a more controllable manner going forward. Thirdly, I think in terms of the overall business performance, Jay has outlined earlier that the second quarter, our loan scale is expected to be slightly higher than Q1, and our revenue will continue to be stabilized. Therefore, we feel that with all the efforts and the measures that were taken to contain the risk and also to contain the funding cost, the take rate should be able to be maintained at the Q1 level. Of course, we will do our very best to strive for the 3%. The second question is regarding the profit sharing model. We have not deliberately maintained a percentage or a fixed percentage of the profit sharing model, because for us, as we have repeatedly emphasized, focusing on controlling risk, focusing on profitability, is our priority. Therefore, the profit sharing model is a natural result of us taking such measures. Traditionally, I mean historically, our profit sharing model has been maintained at about between 25%- 30% or so within our overall loan origination. Okay. Thank you very much. Once again, if you'd like to ask a question, please press star one on your telephone. Our next question will come from Chiao Huang at Morgan Stanley. Please go ahead. 管理层早上好，感谢给我这个提问的机会。我第一个想问一下，就请教一下，咱们基于现在的环境，对全年的这个贷款的发放量有没有什么新的计划或者变化？然后第二个就是从风险的角度来讲，请管理层有没有一些这个先行指标可以跟我们分享一下，在这个十二月底，在三月底，跟包括四月份、五月份最新的一些趋势，谢谢。 My first question is about the full year loan growth. Any change of the plan, given the current situation and any target, new targets? Second question is about from the risk perspective. I wonder is there any color on the early indicators such as D1, etc., then management can share with us any quantitative metrics on that front, by the end of last year, by the end of first quarter and the latest trends we can get a color on. Thank you. I'll answer the first question. As for loan volume, we have not yet changed our guidance for the full year 2021 despite challenges, but we actively believe that the economy will get better and we're still targeting and aiming for the 2022 guidance that we gave. Now Jayden can- 好了，我来回答一下第二个问题。我从两个维度来说一下吧，就是一个是新增资产和我们存量资产。新增资产呢，其实刚才我也有提到，就是从去年Q4开始，我们就进行了一系列的优化和整个的一个政策调整，所以我们一季度的放款的风险指标，尤其是像较稳定的PD30，较上年末已经有了比较明显的改善。我们一月份的FPD30是0.63，对比Q4是下降了15%。但从二、三月份的角度来看，因为后期的放款受到疫情以及经济走势的一定的影响，有一点上涨的趋势，但是明显的趋势是我们的新客是优于老客的，这个是风险指标上是有所反映。那从存量资产，我们也可以看到，我们的九十加和三十加对比Q4是有一定的上升的，也是几个原因的影响，一个是我们其实早期对于高风险用户的收紧，它的释放需要有一定的时间的。第二块就是宏观经济的放缓，对我们就业和消费都有一定的冲击。再加上疫情的反复，尤其是像上海等城市的不同防控政策下的这个对于经济的冲击还是比较明显的。所以从这个角度讲，存量资产可以看到三加九加有一定的上升。但是我们看到的情况是，对比Q4，我们的入推，尤其是Q1开始是逐月下降的，对比Q4整个数据下降了12%。出推方面呢，尽管三四月份受疫情影响有小幅下降，但是从五月开始，我们的整个的出推就开始稳定并且向好。所以这是风险方面的一些趋势。 I'll simply translate it a bit, that is, for new issue loans, thanks to the strategies introduced in fourth quarter last year, for the 24 pricing policy, early day risk indicators such as FPD30 trended better quarter-over-quarter. FPD30 stood at 0.63%, down by 15% compared with fourth quarter last year. While for recent one or two months, since we still face some impact from COVID, we see a little bit of uptick from the trend, but the new customers' quality are better than existing ones. Overall asset quality, 90-day past due delinquency and 30-day past due delinquency are increased from Q4 last year. However, overall day one delinquency has been going down every month this year, and is now 12% lower from the end of December last year. 30-day collection rate, on the other hand, recorded a modest decline in March and April, but we are seeing signs of stabilization and better trend in May. Some of the pressures include the further drop in loan pricing. Financial institutions continue to step away from high-risk users, and also the slowdown in macroeconomy has impacted employment and consumption. Together with the COVID lockdowns and restrictions, we also see some different degrees of impact to our portfolio. Going forward, we believe the risk performance will stabilize in the second quarter this year and continue to improve through the rest of the year. Thank you. Thank you management. Once again, if you'd like to ask a question, please press star one on your telephone. We have no further questions, but just a final call. Please press star one on your telephone. Our next question will come from Ethan Wang at CLSA. Please go ahead. 好的，谢谢。管理层好，我这里有两个问题，第一个是关于资产质量，我有一个追问的问题，因为我们知道乐信一直是这个repetition customer，这个老客的重述借贷率是比较高的。当然，我们也听到刚才Jayden介绍说，因为在现在这个环境下，我们会改变一些，就收紧一些这个借贷的风险控制，所以对于新客，他们的质量可能是更好。所以，可能想请管理层帮我们确认一下，就现在乐信的借贷方面的重点，是会有一个在客群方面的一个变化呢，还是在现在这个环境下去采取一个可以说是防守的策略，就在已有的这些客户群中找到一些更好的客户，是第一个问题。第二个问题是关于我们的马押业务，就先买后付的业务，因为我们知道乐信有一部分或者说比较大的一部分的这个先买后付业务是线下的，那看今年这个环境可能会受到比较大的冲击。所以，想请管理层帮我们介绍一下，未来的话对于这块业务会不会有一些战术上的调整，比如说会更注重线上的合作。谢谢。 I have two questions. The first one is a follow-up on the asset quality, to understand that for 乐信 the repetitive customers' repeat borrowing rate has always been quite high. But under the current environment, Jayden has also mentioned that we have changed, we have tightened some lending standards. So for the newer borrowers, they may be better in terms of asset quality performance. So just wondering, going forward for Lexin, is there any strategic change in our lending standard? Are we looking at our existing borrowers and picking out the better ones? Or are we changing our customer profile, for example, to lend more to older borrowers with a different occupation? That's the first question. Secondly, is on the 买呀 business or buy now pay later business. So we understand that a larger part of that is offline. But with the COVID situation here in China, will there be any change in the strategy going forward? For example, maybe we'll do more online business. Thank you. 好的，第一个问题我来回答一下。关于您整个新老用户的这个资产质量的问题，我想刚才可能有一点误解，并不是说我们的老客风险高、新客风险低。从我们考的整个数据来看呢，我们的新客的风险肯定是要高于老客户的。那刚才的意思表达的可能就是说我们的整个的一个新客的风险可能是偏稳定一点，老客的风险的资产质量变坏了一点。其实刚才表达的是这个意思。所以从我们本身来看呢，新客他的整个的一个风险通常都是比老客要高的，因为随着新客有了更多的信贷风险表现以后呢，他的资产质量会更加慢慢的会稳定和下降。我要说的是这个。在今年呢，其实我们在整个的一个经营策略上吧，我认为是说， 我们会更加侧重于老客户的经营。而且，我们可以看到，其实乐信的整个的资产跟行业其实比起来，并不是说我们的资产质量会不好或者是什么样。其实我们在一季度可以看到，我们整个的风险的整个的上升的幅度，其实是相对来说还是比较可控的。而且我们在刚才也聊到，我们在二季度我们已经看到整个风险是比较稳定。如果六月份整个社会和经济能够持续地变好的话，我们也可以看到整个的风险是有持续的下降和改善的整个的空间的。 Okay. I'll translate the first question first. As to the first question about the asset quality for our current customers or old customers. Not that we did not mean that old customers or our current assets are bad and the new ones are better. Statistically speaking, the new customers actually bear higher risk. The old customers, our current mature assets are actually more stable. Our new customers actually get lower on their APR and their stability as we have more information on them, as we have more evaluations of them. Our current target is focusing on managing our current asset, exploring their potential. As for our asset quality on our assets overall, it's not comparatively, it is getting a little bit higher compared to ourselves, but not as... It is still stable comparatively industry-wide. As we mentioned earlier, we are seeing signs of this quarter being second quarter being stabilized. We do expect the quality, asset quality trend to get even better if the economy recovers from the COVID and also the macro economies gets better. 好的，我再回答一下第二个问题。我们买呀其实在线下，在过去是我们在线下开始试点，此前我们也在深圳试点，那主要是以线下的整个的一个品牌零售，还有商业地产的整个的一个服务为主。那今年一季度我们已经推出了我们买呀的APP。我们买呀的APP呢，就是可以帮助线下的品牌如何开始利用通过线上来进行整个的一个运营和经营。所以我觉得在这一块呢，其实进展还是比较顺利的。我们能看到买呀APP上线以后，能够显著地可以通过线上帮助线下能够有达成交易。所以我们现在在部分商场试点，我们目前看到的数据能够日交易都能够达到千笔以上，所以我觉得这个成绩还是比较满意的。然后另外一点呢，买呀线上我们接入更多的平台，我觉得这个也我们在未来也有计划，正在拓展当中。所以我觉得买呀其实一季度其实一定程度上我们也是受到线下的整个的疫情的影响，尤其是在我们在深圳试点，今年一季度深圳区域是有疫情的，导致很多线下的商场是不能正常营业，所以它的整个的一个短期的业绩也是受到一定的影响。所以长期来看，我们仍然还是对买呀在中国这个业务的发展还是比较有信心。所以我觉得我们可以带给商家除了先享后付的这个价值以外，我们还可以给他带来实实在在的用户和订单，我觉得这个是商家更加在意的整个的一个价值，而且我认为这个也是中国环境下想要把这个事情做好的一个关键能力之一。 Okay, I'll do the translation for the second one. As for the Maiya business, our offline team was currently on trial run in our main city, Shenzhen, where our headquarters was. It used to collaborate with brands and as well as real estate offline. Our app actually went online in the first quarter, helping offline brands to go online and manage, helping them retain their traffic. It's been going well. The app also helped the offline brands and places to increase their sales volume. We are now seeing the first quarter over 1,000 tickets per day. We are actually exploring more online platforms connecting with more online platforms into our apps. As for COVID, it did affect our 1Q sales volume as well as the ticket sizes and ticket numbers. Because as you might know that Shenzhen actually went on lockdown for about a week or so in 1Q, which also had a short impact on our volume in this quarter. Maiya is able to actually bring more than just buy now, pay later functions and also value to our merchants. It was also capable of bringing our merchants more traffic and more customer retention and more ticket and bigger in ticket size. And I believe this is the future and this is the direction that we're going with that is in trend with the overall economy. I hope that answers your question. 好的。Thank you, thank you Jay。 Thank you. We have no further questions, so I will pass back to management for closing remarks. Thank you. Thanks again everyone for joining us today. If you have any more questions, please contact us offline. Our contact information is available on our website. Thank you. Thank you. This concludes today's conference call. Thank you all for joining. You may now disconnect.