Thank you all for standing by, and welcome to the LexinFintech second quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question at that time, you'll need to press star then one one on your telephone keypad. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your speaker, Ms. Echo Yan, IR Director of LexinFintech. Thank you. Please go ahead. Thank you, operator. Hello, everyone. Welcome to LexinFintech second quarter 2022 earnings call. With us on the line today are 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 statements. Jay will first provide an update on our performance. Sunny will cover the financial results in more details. Lastly, Jayden then will discuss risk management. I'll turn over to Jay. His remarks will be in Chinese, and English translation will follow. Jay, please. [foreign language] Hello, everyone. It is my pleasure to talk to you again and share our second quarter 2022 earnings performance. [foreign language] In the second quarter, total loan originations reached CNY 49.1 billion, up 13.9% quarter-over-quarter. Total operating revenue was CNY 2,410 million, up 40.9% quarter-over-quarter. Net profit was CNY 167 million, up 105.5% quarter-over-quarter. Numbers of both active users and the new active users were higher than those in the first quarter. Funding costs continued to decrease and the risk indicators remain stable. Our CFO and CRO will provide more details later. The growth in the second quarter was mainly due to the recovered performance of our business in June. In June, the company delivered CNY 18.4 billion in loan originations. The contribution percentage of loan originations from low-risk trading customers increased by 15 in June compared with that number in March, while the rate of new loans was continued to be improved. By the end of the second quarter, the percentage of 24 mix was over 80%, and we are capable to meet all relevant compliance rules and regulations. The data in June has shown that we have returned to a steady growth trajectory, and the growth trend will continue. [foreign language] The growth in June is mainly due to the timely adjustment of our business strategy. In the first five months of this year, with the resurgence of the pandemic and associated macroeconomic pressure, we did not only pay attention to the scale, but adopted a more prudent business strategy. At the end of May, with adjustments of pandemic prevention policies and social and economic recovery, we gradually adjusted our strategy and further explored the credit potential of our existing high-quality customers. Based on our huge user base, we achieved notable results. [foreign language] Specific business strategy adjustment can be summarized as three major initiatives. The third is to increase the proportion of high-quality customers while decreasing high-risk customers. In the past few months, especially in April and May, when the pandemic was severe and the macro economy was under pressure, we were prudent in loan originations and took the initiative to control the scale. Although the impact of the pandemic was in fact greater in the second quarter than in the first quarter, our risk performance was generally stable and the quality of new loan originations was better. 90-day delinquency rate was 2.63%. The overall day one delinquency rates have continued to decrease since last December, and in July, it dropped 11% compared with the average number in the first quarter. The thirty-day collection rate was consistently above 90%. Compared with May, early indicators of new loan originations in June have decreased by over 15%. [foreign language] Besides, we further improved the quality of customer acquisition. Number one, we have launched targeted high quality customer acquisition programs for young professionals, small town youth and urban white collars. Number two, Lexin Club team has leveraged the strength of its offline staff to attract more high quality customers for microloan without that product. Number three, we have upgraded the co-modeling capabilities with partner institutions to further improve the quality of our applicants. At the same time, we have introduced more high quality data sources to strengthen our ability to identify cross-platform users. Third, we strengthened the segmentation operation of existing high-quality customers. Based on the user data accumulated by Lexin and external data sources, we've divided the customer into several segments and have conducted several branches of A/B testing to fully validate the effectiveness of the operation strategy of the sub-customer groups, which helped us to significantly improve the operation efficiency. For example, the per capita contribution of the premium customer group was 60% higher, and ARPU was 20% higher. The specific initiatives include, number one, in terms of data, we have comprehensively strengthened the coverage and application of the PBOC credit modeling, through which we were able to establish a new model that contains more complex label dimensions and an improved accuracy of identifying high quality customers by more than 25%. Number two, in terms of technology, we have improved our user identification capabilities and operational efficiencies through various models. We upgraded our probability of default risk model and thanks to more precise customer segment management, algorithm optimization and the introduction of more data sources, accuracy of model identification was improved by more than 20%. We expanded the applications of external data with financial institutions in various ways, such as federated learning and the joint modeling to improve the identification ability of late bucket customer group through model integration and strategy application. Together with self-developed user willingness model, marketing strategy model, et cetera, we can more accurately identify high willingness and high quality users. Thus, we were able to save advertising costs by 50% while achieving same loan volume. 六月的经营策略调整之所以能够实现并取得良好的效果，归功于我们过去九年积累的四大底层能力。首先是用户运营能力，我们加强了对优质客户的精准识别和精细化运营，通过不同的产品和服务满足他们不同阶段的需求。 The business strategy adjustment in June was with good results, mainly due to the four core capabilities we have accumulated in the past nine years. First, user operation capability is mainly reflected in our accurate identification of high-quality customers and segmentation operation, which allows us to meet their needs at different stages through different products and services. 第二是风控能力，我们引入了更多高质量的外部数据，同时更深入地挖掘内部用户的行为数据，实现更多更精准的数据应用，更与时俱进的迭代风控模型，不断提升假设验检验的效率和准确性。 Second, the ability of risk control is mainly reflected in our ability to continuously improve our user identification and operations. We have introduced more high-quality external data, further analyzed internal user behaviors, iterate the risk control model at a pace, and continuously improve the efficiency and accuracy of hypothesis testing. 第三是资金能力。公司的资金成本自二月起持续下降。过去一年，金融合作伙伴持续增加，目前已累计与130多个金融机构达成合作。 Third, the ability of funding is reflected in our funding cost control and partner expansion. The co-funding costs continued to decrease since February this year, and over the past one year, the number of our financial partners has continued to expand. Currently, we have cooperated with more than 130 financial institutions. 最后我想重点讲讲数据和技术能力。乐信的研发投入一直行业领先。二季度研发投入1.5亿，同比增长18.5%。我们把多年积累的技术能力进行整合，升级为智慧商业引擎。它既能给企业提供一整套智能分析和决策的工具，也能帮助业务做到快速迭代，极大提升决策、经营和业务运营效率。智慧商业引擎已经给乐信带来了实实在在的收益。除了前面提到的精细化运营，已以线下获客见长的乐信普惠团队也借助智慧商业引擎的数字化经营工具，实现了作业人效提升30%，小微客户规模提升50%。 Finally, I would like to elaborate on data and technology capabilities. Lexin's R&D investment has been industry leading. In the second quarter, we invested CNY 150 million in R&D, up 18.5% year-over-year. We have integrated the technical capabilities we have accumulated over the years and upgraded them into Lexin's Smart Business Engine. It not only provides a full set of intelligent analysis and decision making tools, but also helps the business to conduct rapid operations and iterations, and greatly improves the efficiency of decision making and business operations. Smart Business Engine has already taken effect in our daily operations. In addition to the aforementioned customer segment operation strategy, the Smart Business Engine has also brought great efficiency improvements to our offline Lexin Puhui team. With the help of the digital operation tools of the engine, the contribution of each employee of our Lexin Puhui team has increased by 30%, and the scale of SMEs has increased by 50%. 乐信的场景和客群优势，四大底层能力和业务有机结合，正组成一个循环增强的路径，这是我们颇具优势的乐信业务生态。 Lexin's strength in consumption scenarios, customer segments, and four core capabilities are integrated into our business, which forms a self-reinforcing loop that we call it Lexin's ecosystem. 乐信独有的分期乐电商、买吖等高频高粘性场景，让乐信更具高质量客群优势。高质量客群会持续给乐信的消费金融业务增加规模和利润。主业规模和利润持续增长，让乐信积累了丰富的数据，从而提升模型和技术能力。而技术与风控能力的提升，让我们可以进一步把能力输出，赋能给银行与商户。对银行和商户的能力共享，又让我们吸引到更多的资金和场景接入。场景优势让我们又能获得更多的高质量人群，开启新的一轮循环。乐信的业务生态是我们独具的长期的竞争优势。 Lexin's unique high frequency and high repeat rate consumption scenarios such as Fenqile and Maiya, our installment payment e-commerce platforms put Lexin in the advantage of having more high quality customers. A high quality customer base will continue to increase the scale and the profit of Lexin's core business. The increased scale and the profit of core business allows large data. We are confident in our business strategy and the long-term development. The company and the management team share repurchase programs remain in execution. CFO will provide more details later. Finally, I would like to talk about Lexin's corporate social responsibility initiatives. In response to the pandemic resurgence in the second quarter, we launched a specific program to help SMEs to deal with their cash liquidity challenges. In the second quarter, the amount of small and micro loans was CNY 5.4 billion. For SMEs more affected by the pandemic resurgence, we also took a number of measures to help them tide over the difficulties. Looking ahead, the recovery trend in June continues in Q3. Our loan origination guidance in Q3 will be CNY 53 billion or above. This guidance reflects the company's current expectation, which is subject to change. Let me now hand over the call to our CFO for financial updates. Thank you. Thank you, Jay. Good morning and good evening, everyone. It's my pleasure to speak to you again. Our business was under pressure due to unforeseen regional COVID surge in April and May. Thanks to the determination and effective measures taken by the government and the society as a whole, the pandemic has been contained gradually. In addition, we are also encouraged and inspired by multiple macro stimulus adapted by various government bodies that will boost consumption and credit supply. We stay committed to our strategic priority of enhancing and diversifying the revenue structure while strengthening operational efficiency and optimizing our risk assessment capabilities. Our sustained effort on technology, innovation and digital transformation have shown more visible results this quarter. Let me now go through some key financial performance of the second quarter. I'm delighted to report that total loan origination in the second quarter was CNY 49.1 billion, representing a 13.9% increase quarter-over-quarter. The outstanding loan balance stood at CNY 86.6 billion, representing a 3.3% increase compared with last quarter. While the management team is not completely satisfied with this top line result, we are encouraged by the positive momentum. Total operating revenue was CNY 2.4 billion, representing a 40.9% increase quarter-over-quarter. Revenue from new consumption driven location-based services was CNY 538 million, an increase of 59% from the first quarter of 2022, and an increase of 32.2% from the same period of 2021. Revenue from technology-driven platform services was CNY 436 million, representing a 12.3% decrease quarter-over-quarter. Revenue from credit-driven platform services was CNY 1.4 billion, representing a 60.4% increase quarter-over-quarter. As you might have noticed, we reorganized our revenue segmentation since Q1 this year. This is a better reflection of the quality of our revenue and the diversified nature of our businesses. The contribution from non-credit-driven services was more than 40% of the total revenue this quarter at CNY 974 million, having grown at 19.4% quarter-over-quarter. This is in line with our long-term strategic goal of building up a more risk-tolerant and high-quality revenue structure. In compliance with government guidance, loan pricing in Q2 continued to fall and got closer to 10%. Through the end of June, mix within 24% APR reached 81.1%, a 3.3% increase quarter-over-quarter. Let me move on to the expense side of the second quarter. Sales and marketing expenses increased by 32.5% quarter-over-quarter, but decreased by 3% year-over-year to CNY 477 million. As you know, in Q1, guided by our quality over quantity operational priority, we scaled back our advertising costs, especially in areas that were likely affected most by COVID. This quarter, together with gradual improvement of the macro environment and the containment of COVID situation, we increased our marketing promotion expenses to a certain level compared with previous quarter to drive future growth, but still stayed calm on overall spending. Research and development increased by 1.3% quarter-over-quarter and 18.5% year-over-year to CNY 555 million, reflecting our continuous investment and upgrading of our technology capabilities. G&A expenses went down by 3.3% quarter-over-quarter and 6.4% year-over-year to CNY 113 million. Just like the first quarter, it went down both year-over-year and quarter-over-quarter, demonstrating the continuous improvement of our operational efficiency. Net profit was CNY 167 million in the second quarter. This is a 105% increase quarter-over-quarter. Since we have taken a more prudent approach to reflect risk in the first quarter by stepping up the day one provision, based on the current external situation, we expect that our profit will continue to follow an upward trend in the second half of this year. Next, quick update on our share repurchase program. On March 16th, 2022, the company's board of directors authorized a $50 million share repurchase program. As of June 13, 2022, the company had repurchased approximately 13 million ADS for approximately $31 million under this program. The share repurchase program demonstrated our confidence in Lexin's long-term potential, and the management team remains open-minded about expanding the share buyback program in the future, should we deem appropriate, and as a way of giving back to shareholders. I'd like to emphasize our unwavering determination to see through both the current execution and the long-term strategy of adequate investment in technology and operational optimization as priorities to drive long-term sustainable business development. Finally, as we mentioned earlier, and also mentioned by Jay, even though we have experienced some headwinds in the first few months this year due to the resurgence of COVID, we never stopped our efforts of advancing our capabilities in better serving our customers and advancing our business models. Looking ahead, based on the current information at hand, we are cautiously optimistic about the performance of second half. We expect the loan originations for the third quarter to reach CNY 53 billion. We will continue to pursue a sustainable and resilient business approach, and we'll also be alert of any material signs of external changes that might impact our business, and we'll react quickly and responsibly. With that, I will turn the call over to our CRO, Jayden. Jayden, please. Thank you, Sunny. Good morning and good evening, everyone. Let me elaborate more on the risk management front. In this quarter, we remain cautious on our credit risk approach with several major cities and their surroundings hit by COVID for the first half of the quarter. On our customer acquisition side, we have prioritized the quality over quantity tactics by adopting a more comprehensive and robust monitoring system, which allowed us to adjust our strategy in response to COVID more dynamically throughout the process, from acquisition to portfolio management. We have been seeing positive results from such action as our risk level was controlled to a rather small height compared with our peers. The overall day one delinquency rate has been down for seven consecutive months and down by 11% compared with the first quarter this year. Our customer portfolio has grown stronger as a 24% adjustment progress. Moreover, as Jay mentioned earlier, the enhancement in customer segmentation and risk assessment models enabled us to focus on high-quality customer segments and increase the loan volume contribution from lower-risk borrowers. The 30-day collection rate has recovered since May from a modest decline in March and April as the impact of the COVID hit has subsided. We have been making advancements in our customer behavior analysis model to provide higher collection efficiency while simultaneously carrying on with the practice of a more spread out collection team to reduce the impact brought by potential regional COVID surges in the future. We are in a solid position to respond more rapidly and accurately with fewer possible obstructions. Increase in 30+ delinquency was within the range of expectation to 4.84%-5% versus 4.4% at the end of March. It was mainly due to the impact of COVID related circumstances in April and May, and a more prudent credit policy leading to modest growth of the outstanding loan balance compared with the first quarter. As Jay mentioned earlier, we are putting more effort and resources into existing customers, of whom we have a clearer credit performance record to strengthen our resilience. Early indicators have already demonstrated that our risk level on new loans has been lowered by over 15% and the trend expected to continue in August. We expect the 30+ delinquency to have peaked in the second quarter. Finally, I'd like to stress that we have evolved with a more sophisticated risk management system from our experience dealing with the COVID outbreaks and economic fluctuations. We are now better prepared for any external uncertainty and complexity that should happen in the future. Thank you. This concludes our prepared remarks. Operators, we are now ready to take questions please. Thank you. We will now begin the question and answer session. If you'd like to ask a question, please press star, then one one on your telephone keypad and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from Yada Li at CICC. Please go ahead. 管理层好，感谢给我这个提问的机会，我是中金公司的李亚达，很高兴看见咱们公司基本面环比有了明显的改善。那我们今天呢，可能有两个小问题想向管理层再请教一下。第一个呢，是我们想问一下，就是公司上半年整个这个新消费业务的发展状况如何，总体上是否符合我们此前的一个预期？然后像这个买吖等这个新消费产品呢，这个经济模型是否已经清晰？可以帮我们再多分享下，以及呢这部分业务未来对我们收入贡献的一个预期。然后第二个问题呢，是我看见我们这个交易量的整体的一个披露口径可能发生了一个改变，然后也想请问一下未来交易量增长的这个主要驱动力可能源自于哪一部分的这个产品？是我们这个分期商城的平台，还是新消费业务，然后还是其他的这些服务和产品。So the first one is about our new consumption services, and I was wondering how to view the development so far in Q2 and going forward. Could you please give us more color about the business model of Maiya app? I'd like to know like how much it will contribute to our total revenue in the future. The second question is about the change of our operational data disclosure, for example, the total GMV. I was wondering if you could elaborate more about it and what are the main drivers of sales management? 我来回答第一个问题吧。关于新消费和买吖业务，在今年上半年我们进展还是整体比较顺利的。我们可以看到新消费这一块的业务，尤其分期的商城，其实我们知道国内今年上半年整个消费是比较低迷的，但是我们整个的分期商城，分期乐这一块的整个的线上购物，信用驱动的线上购物增长的速度还是非常迅速。我们可以看到今年比去年环比同比都是有很大幅度的增长。我们可以看到，尤其是在今年六一八期间，我们比去年整个的同比都能够增长30%到40%这样的幅度。所以说在这一块，其实我们重新进行整个的战略投入以后，能够看到它有非常明显的整个的进步。那另外一块就是在买吖这一块，买吖我们主要是服务于整个线下的零售和零售连锁和品牌，就帮助他们如何更好地通过线上的营销方式，包括通过金融工具，能够更好地把商品卖出去这样的定位。那么一样，其实它还是客观地受到了一些疫情对线下的整个的管控和影响。但是我们在今年上半年，尤其是二季度，我们有一些比较明显的进步，那就是我们去调整了我们的商业模式，推出了买吖的APP。就我们过去的整个交易全是依赖于整个的门店去进行线下接触的方式，或去提升它的整个转化率和成交。那现在我们买吖APP推出来以后，我们可以不基于整个线下的门店，就可以在买吖APP上进行整个的成交。所以我们能够看到，买吖的整个APP的线上的交易占比正在快速的提升，甚至目前能够达到将近一半以上的整个交易都已经在买吖APP里面完成了。我觉得这是一个非常重要的进步。那我们还有另外一个进步，那就是我们买吖的整个的模式。过去我们在线下就对商家是进行收费，会存在一定的整个的挑战。那现在我们大量的交易开始转到线上的买吖APP里来交易以后，我们买吖APP全部都是对商户和品牌方收费的，我们这一部分整个收费的占比大概在3%。而且这个商家的付费意愿也显著的加强。所以说我觉得买吖APP我们正在持续地打磨，我们也可以期待，在未来我们会持续地对这个业务开始进行方案验证。好，谢谢。 Let me try to translate. In the first half of this year, it was very true that we are experienced some headwinds of the COVID, which definitely bring some pressures to the new consumption business. However, meanwhile, in the first half months with our management and strategy adjustment, we actually drive our new consumption business quite well, and we can see that even under some pressure our Fenqile and Maiya business have delivered some quarter-over-quarter, both quarter-over-quarter and year-over-year increase, especially during the mid-year promotion of June eighteenth, compared with the same period last year. Our performance actually increased by 30%-40%. With our continued investment and in time adjustment of our strategy to this new consumption business, we definitely see our performance increased gradually. If we have a look at our Maiya offline business, we not only provide services offline to the stores and we actually issued and launched our tool to help with brands as well. In the second quarter, our Maiya APP after it was launched was well received. With this both offline and online capabilities, we can provide more diversified and better services to our merchants. We can see that after the launch of our Maiya APP, over 50% of our transactions have been delivered by online. We are also seeing that this model is well welcomed by our current customers, and we can meanwhile also see that the willingness to pay is also very encouraging. Actually, we can charge a 30% take rate. With the current progress, we are full of confidence with our new consumption business growth in the future. Thank you, Echo Yan. Let me translate this myself. I think the question earlier was about the new disclosure approach towards the GMV, e-commerce GMV. This is a reflection of our reorganization of our revenue. This new disclosure approach reflects only our new consumption-driven LBS services. GMV and also our revenue disclosure, the adjustments are the same and the approach are the same. Thank you. Operator, next question please. Certainly. Our next question comes from Alex YE from UBS. Please go ahead, Alex. Uh, 自然质量的改善还没有看到很明显的，好像还是相对平稳吧。那可能二季度有一些改善，这里目前还看不出，就是想问一下，这样的一个takeaways，这个质量这样的改善，什么时候会比如说真正反映到我们的这个takeaways上来，反映到我们的top line的上面来。好，谢谢。Now I'll translate for my question. First one is on the sales and marketing expense so the per new borrower sales and marketing expense has increased quite significantly compared with previous two years almost at a doubling growth. So I'm wondering what are the key drivers behind? Is it more due to the fierce competition or due to tightened credit approval? Or is there any other more of a one-off reason and looking ahead what should be the kind of a normalized level we should expect? Second question is on asset quality. So, the company has been focusing on quality for a while, and the management has mentioned about some improvement in day one delinquency. But so far we haven't seen much improvement from the vintage curve or your disclosed FPD 30-day-plus delinquency chart. So I'm wondering when could we start to see this kind of asset quality improvement starting to be reflected into your financials, including your take rate and your top line? Thank you. 好的，获客成本这个问题我来回答一下。我们的获客成本上升主要是两个因素。第一个因素呢，是由于整个经济环境和疫情导致整个的，我们采取了更加保守和审慎的审批策略，这会让通过率会进一步的整个的下降，来保障整个的新获客的整个的质量。这是第一个因素。第二个因素呢，那就是我们过去的整个的获客是三十六，会有一个比例。那今天其实我们正在提升我们的获客质量，我们更多的是在往二十四的整个的客户的迁移。在这个过程中呢，我们的整个的一些模型，RTA等等都在训练和调整的过程当中，所以说会导致整个获客成本有一定程度的上升。 Let me take the first question in terms of the sales and marketing acquisition cost. There are mainly two reasons for the increase of customer acquisition cost. The first one is definitely the macroeconomic pressure associated with the COVID resurgence. During the period, we were taking a prudent approach to control the scale and be more prudent in terms of the approval rate so that we can further improve and manage the quality of our newly originated loans. The second, as you all know, we are adjusting our pricing from 36% to 24%. During the process we are in the process of optimizing our model and RTA and thus in the certain period of the process, the acquisition cost also increased. 往后的趋势来看呢，我想给大家也分享一下我们在未来在获客上的一些重要的一些策略。我们的策略，未来第一，我们会全面的去加强我们对客户和流量筛选的能力。我们的RTA的模型正在迭代升级，最近我们也能够看到RTA迭代以后呢，对获客成本，对流量的筛选，它的效率显著的提升，也会变得更加精准。那我们的RTA模型未来主要的作用帮助我们筛选更加符合乐信要求的流量和客户，那就是我们在精细化经营的时候，我们会打通在获客端的整个的流量也会变得更加精细化。所以我们未来会在乐信优势的一些定向的这种人群上面会取得比较好的一些进展，这样也可以有助于下降我们的整个的一个获客成本。例如说我们前面提到的小镇青年，职场新人等等这些细分的小的人群，我们可以看到这部分的流量的竞争是相对来说是比较少的，所以说它的整个的一个成本也相对偏低。那我觉得随着整个的我们的模型和筛选流量的能力进一步提升，这个成本会有带来改善。 I'd like to take the opportunity to share the trend and several approaches we are going to take in the future. First of all, we will definitely increase our capabilities of the filtration and pre-classification of our customers. We are continuously increase our RTA model so we can more accurately to identify our customers quality and behaviors. Second, through our segmentation management of our customers, we can provide better services to our high quality customers. As we just mentioned that we have divided more precisely of our current customers into several such as the town youth, the urban white collars. Comparatively speaking, these customer groups, their quality is good, while the competition environment is relatively stable, so it will also help us to control the cost. 第二个呢，我们也会持续加大普惠和线下的整个的一个获客的投入，主要因为在普惠和线下的获客成本呢，其实比起线上来说还是非常有优势的。 是吧，我们的普惠的，普惠的人均每个人都可以进店一到两个客户。那这样算下来，我们按照人员的开支来看，这个获客成本是显著，目前看起来是低于线上的整个的投放渠道或者获客的整个成本。所以说未来我们持续对普惠的整个的一个线下团队的加强，我相信也会给我们获客成本带来一定的改善空间。那最后一个呢，我想讲就是我们未来在线上，我们除了几个广告投放的整个的一个去进行优化以外，我们也会持续地推进一些非标准流量的平台的合作来。因为非标准流量的这种合作呢，它的整个的一个广告，这种合作广告呢，基本上它不会受到竞价的影响，所以它也有助于我们整个的一个获客成本的整个的稳定。所以说从长期来看，我认为短期的获客成本上升主要还是来自于我们，我们的一些客户的，客户模型的一些调整，追求更高质量的客户带来的一个短期的一个，一个成本的上涨，是吧。长期我们来看，当我们的模型和流量筛选的能力开始逐步地调整到位以后呢，获客成本会进一步下降。 The second initiative we are taking is to leverage our offline Pu Hui team. Currently, each offline Pu Hui team employee can average between one and two customers. If we calculate the cost per person, the cost is actually lower than the online cost. Besides continued optimization of our online investment, we are also seek the opportunities to develop some non-standardized channels to acquire traffic. These non-standardized or non-traditional channels to get traffic is not that much impacted by the bidding policies. Short term, the increase of our customer acquisition cost is still mainly due to our modeling adjustment to better understand customers and to pursue the high-quality customers. From the long term perspective, after we, together with our process of optimizing our relevant model and approaches, we believe our customer acquisition costs will decline in the future. 那我回答一下第二个问题，就是提到我们的vintage curve，还有包括FPD30的那个curve，可能看到的这个好转的情况并不是很明显。我想强调一下，就是因为像Jay在刚才的那个演讲里面也说了，我们其实从Q2末期，包括我们现在从七月份，到尤其是八月份的早期风险指标看到的情况，跟Q2比是一路向好的。那这些早期的风险指标的向好，那它表现到我们的vintage的这个整个的表现以及，包括FPD30的这个相对长期一点的表现，它是需要时间的。其实你看到的vintage curve，我们现在能看到的，包括FPD30，它的表现有完整表现的只有五月份，那五月份跟我们疫情相对严重的三月份比是FPD30下降了10%。那跟五月份比，我们其实六月份跟五月份比，六月份因为整个表现还没有完成，那FPD30的下降其实已经超过17%了，但这个是在我们的那个数字里边是没有公布的，因为它的整个完整表现是没有拿到的。那另外就是vintage，我们要想拿到一个较为准确的vintage预估，是至少要有三个月三十加的表现。所以现在看到的所有的表现都还是在我们疫情期间的相对比较高的一个表现。所以就说我们新增的这些资产质量的优化和这些相对较好的一些风险走势，可能会在下面几个Q能够看到。 Okay, I'm going to translate what I just said. As Jay mentioned in his presentation, all our early indicators toward the end of the second quarter, especially in July and August, have indicated a downward trend. Basically all the early indicators of the risk performance have pointed to an improving credit quality. However, for these early indicators to translate into a longer-term, more stable indicator, it takes time. For example, what we released in our FPD30 indicator, with the numbers that have full performance period, only showed the performance in May. If you look at the May performance compared with March, the improvement is around 10%. But if you look at the June performance, even though the FPD30 has not yet fully reviewed, the improvement is close to 18%. So what I'm saying is, for the FPD30 indicator and the vintage loss numbers to fully reflect our recent quality improvement, it takes time. In the next one or two quarters, you can expect to see the improvement. Thank you. Next question, please. That's good for me. Thank you. 谢谢。 Thank you. Our next question comes from Hans FAN at CLSA. Please go ahead, Hans. 管理层好。我是CLSA的Hans ，感谢给我提问的机会。我这边有两个问题，其实还是跟监管相关吧。刚才管理层也稍微提了下，但我想问得稍微仔细一点，就是关于监管这一块。第一个是在APR方面的情况，因为管理层提到说我们现在定价24以下的占到超过80%。那么我们目前的目标是要到什么时候实现全部的存量贷款都实现这个定价在20以下。这个对我们的take rate，咱们有没有做一些测算，这个会有一些什么样的影响？这个是我想讲的第一个问题。那么第二个问题是关于我们断直连，还是想因为每个季度都想跟咱们聊聊这个断直连的进展，因为目前看跟其他友商聊，聊的感觉还是进展比较慢。所以想问下我们这边的方案，这个计划准备什么时候跑通，然后监管那边的反馈怎么样？这是我的两个问题。So I got two questions regarding the regulation. The first one is on the APR cap. Management just mentioned that the APR less than 24% already accounts for more than 80%, which is good, but just wondering when are we targeting to achieve full compliance in terms of all the existing loans priced below 24%. That's the first question. Second question is more about the decoupling of direct link. I mean the data feeds from Lexin to the banks. The progress we learned from peers looks like it's pretty slow. Just wondering what's our plan and when we expect to complete or at least have some kind of practice regarding the decoupling of direct link. How is the regulator viewing our plan? That's our question. Thank you very much. 好的，这两个问题我来回答一下。首先我聊一下关于定价的这个问题。在24的这个定价——最高定价24的这个政策呢，其实我们今天来看，没有任何一个监管机构有明文的要求说所有的全部必须在24以下。那这个还是由于整个各个金融机构受到各个地方的一些监管的一些指导下要求的。所以说我觉得我们已经完成了整个的核心主要80%的整个用户的整个的调整，其实这已经说明了我们具备把整个定价往24迁移的这个能力。今天我们还保留了少量的整个的24以上的整个的一个定价，这个也是出于各个地方的整个的不同的金融机构的需求来给的一个少量的这样的一个比例。那我想聊一下24的定价这个，对我们全部切到的这个时间，我觉得我们没有时间可要求，但是我们有能力可以随时做到把它全部切到24以内。那24的这个定价本身我们来看，对于我们take rate的影响，其实在我们自己看到24的整个的用户的整个的take rate跟24以上的用户take rate基本上是一样的，不会有显著的差别。为什么是一样的呢？因为它的风险是不一样的。所以我们在我们自己内部的整个定价原则上来看，它给公司的贡献的整个的利润也基本上是接近的。那大家可以看到，我们在这个季度，我们整个平均定价已经非常接近于24了，就24点多一点点。那这个呢，其实在未来我们相信，哪怕公司切到100%的整个的24，其实对公司的整体的定价和利率也不会产生很大的影响。 Talking about the 24% pricing policy, we'd say it's rather a guidance from government instead of requirements or law. Currently, the different local authorities have different directions in terms of this policy, and you can see that in the second quarter, we have already had more than 80% of our pricing is within 24%, which demonstrate our capabilities to adjust our pricing further. Currently, we still keep a small amount of the business pricing is above 24%. It's still due to there are some local demand. As we just mentioned that, the company is capable enough to further adjust our pricing to 24% or within 24%. Currently, we have no very targeted timeline of that. In terms of the impact to the take rate, I'd say, there is not much difference of the, you know, performance of the above 24% or below 24%. The impact to profit is also kind of similar. In Q2, our pricing is already very close to 24%. In the future, we definitely have the capabilities to further adjust it to 100%. Currently, we have no timeline for that. 再聊一下断直连这个问题。断直连这个问题呢，首先我想强调我们的整个的进展还是非常快的，也并不比市场上其他的友商慢。这个是我们了解到的第一个消息。第二个呢，就是说我们跟市场上的，市场上能够提供整个的一个征信断直连合作的，基本上也就两家机构。我们大家知道，我们跟一家其实已经达成了整个的合作方案，方案我们已经全部都开发完了，就随时可以准备上线的。但是在今年的整个的一个监管的十四号文里面，他把整个断直连这件事情又延期了一年。其实这背后呢，对我们来说是一个很重大的一个好消息。我们来解读这个事情呢，是认为说过去强调了断直连，其实整个的方案受到监管认可的方案一直还没有出来，都是各家自己在做自己的方案，来根据断直连这几个字来理解到底怎么来做。是没有任何一个明确的整个的规则告诉大家怎么做。所以今天我们做的方案，包括市场上我们看到的方案，没有一个方案是真正说拿到了监管同意或者认可的方案。所以说如果在这样的情况下，往后延期一年呢，其实说明监管在重新地审视这个事情。因为断直连这件事情肯定会对整个的，尤其是中国的整个的中小银行的整个的信贷会产生很大的影响。那重新审视这件事情呢，就给了监管有更多的时间来考虑，到底怎么断直连是对市场影响小的，对经济影响小的。尤其在中国目前的经济情况下面，银行是需要有更多的贷款能够发放出去的。所以说我们认为其实在断直连这件事情上，未来应该是会有更好的，已经在朝着更好的方向在发展。当然乐信我们也没有掉以轻心，我们跟市场上的两家都在积极地去对接他们设计的一些方案。我们也会投入研发资源，随时地去做好相关的一些准备。 The regulations in terms of the decoupling, I want to emphasize is that our progress is actually very fast and our pace is not slower than our peer companies in the industry. To be honest, as everybody know that there are two partners or bureaus can provide relevant cooperation with us, we actually already have cooperation with them and have a different plan ready to connect it, if the official requirement is issued. However, if we have look at the recent issue, the Document No. 14 by the authorities, actually the discussion, this decoupling policy is actually being expanded for more than one year, and we actually interpret this policy as a positive signal. To be honest, currently there is no official requirements or instructions have been issued by the authorities. We believe that the authorities and the relevant government bureaus are also considering these kind of requirements seriously, and considering the impact to the players in the industry, especially the medium and small banks, as well as the impact to the economy of China, especially during such a special period. However, as I just mentioned, we interpret this policy from a positive perspective and we are fully prepared to cooperate with the partners in the future. Our current plans and policies are actually ready in place to go if the specific requirement is issued. Thank you. That's all the time we have for questions today. I will hand back to management for closing comments. Thank you. Thanks again everyone for joining us today. If you have further questions, please contact us via our contact information available on our annual filings. Thank you. Thank you. This concludes the call today. Thank you all for joining. You may now disconnect.