Good day, and welcome to the Yiren Digital First Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Keyao He, Investor Relations Officer. Please go ahead.

Thank you, operator. Good morning and good evening, everyone. This call features the presentation by the Founder, Chairman, and CEO of CreditEase, our CEO, Mr. Ning Tang, our CFO, Ms. Na Mei, and our SVP, Ms. Mei Zhao will also attend the Q&A session after the prepared remarks. Before beginning, we'd like to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provision of U.S. Federal Security Litigation Reform Act of 1995. Such statements are subject to risk, uncertainty, and factors, and can cause actual results to differ materially from those contained in any such statements. Further information regarding future risk, uncertainties, or factors is included in our filing with the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statements as required under the relevant laws. During this call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about those non-GAAP financial measures and reconciliations of GAAP measures, please refer to our earnings press release. I will now pass it on to Ning for opening remarks.

Thank you all for joining our earnings conference call today. We are pleased to record another solid quarter with stable growth in our top line and overall business scale during a traditional off-season in the industry, while maintaining healthy profitability. Moreover, we are excited to announce that our AI Lab initiative has begun to yield early results, as AI integration continues to permeate all aspects of our operations. Before delving into our business performance, I would like to highlight our recent branding upgrade. As you may know, we've rebranded our Chinese company name from Yiren Jinke to Yiren Zhike. The term Jinke, meaning FinTech, has been replaced with Zhike, signifying intelligent technology or AI technology. This change underscores our commitment to ongoing technological innovation and our dedication to enhancing our customer experience. Our core mission of leveraging technology to deliver value to our clients remains unwavering. Now, I would like to go through our business highlights for this quarter. First, regarding our financial services business, the first quarter of 2024 saw steady growth with total loan volume reaching RMB11.9 billion, marking an 86% increase year-over-year and the fifth consecutive quarter of growth. The number of borrowers experienced a slight decline to RMB1.35 million from RMB1.37 million in the prior quarter, influenced by seasonal factors, as well as our emphasis on quality growth and a strategic shift toward a higher quality borrower segment. Additionally, our loan facilitation platform, the Yiren Digital app, has seen a surge in popularity. Its monthly active users grew to over 4.4 million in the first quarter of 2024, up from 3.5 million last quarter, representing a 26% increase. This impressive growth is due to our improved customer services and enhanced efforts to boost customer engagement. It's also worth mentioning that our AI integration into loan facilitation business has shown concrete progress. Currently, our proprietary large language model-based intelligent voice interaction model has been applied into our telemarketing, asset management, and customer service, which has brought visible improvement in efficiency. For instance, our intelligent robots used for customer acquisition are now able to make over 400,000 phone calls daily, doubling the previous volume. In addition, our telemarketing team has seen an almost 40% improvement in customer conversion rate through the use of AI-powered robots. Currently, the voice recognition accuracy of our system has reached 92%, and this ratio is expected to increase as we continue to fine-tune our models and train them with more data. Meanwhile, our international business has been showing strong momentum with a 60% increase in total loan volume compared to the previous quarter. In the first quarter of 2024, our Philippine market achieved a milestone by surpassing RMB10 million in monthly loan volume, showcasing exceptional growth. Additionally, we've seen a continued decline in customer acquisition costs as we continue to optimize our products and enhance our conversion rate. Specifically, the cost of acquiring borrowers in March decreased by double digits compared to January. Furthermore, our overseas operations extensively leverage AI technology. For example, our anti-fraud AI models are highly effective in detecting image fraud. Our black and white document detection model boasts an accuracy rate of over 97%. And our mobile screenshot detection model achieved an accuracy rate of 99%. These AI models have significantly enhanced our risk management efficiency, reducing potential fraud losses. Now, turning to asset quality. In the first quarter of 2024, the overall delinquency rates of our loan portfolio increased, with the 15 to 89 day delinquency rate rising to 3.9% due to industry-wide credit quality fluctuations. However, we are actively upgrading our customer base and fine-tuning our risk control standards through AI analysis. As a result, the asset quality of new customers continues to improve. The M1 collection rate in the first quarter of 2024 has increased by 67 basis points compared to the prior quarter. As the proportion of assets from our new borrowers continues to increase, the risk indicators of our overall loan portfolio started to decline in May and continue to trend downward. On the funding front, we've experienced a consistent decrease in cost as our network of funding partners grows. In the first quarter of 2024, our funding costs decreased by 43 basis points compared to the previous quarter, a trend we expect to continue throughout the year. Moreover, to achieve a better balance between risk management and profitability, we began engaging more in a risk-taking model where the company takes the credit risk of the loan facilitation. Therefore, the proportion of loans in the risk-taking model is expected to grow in the coming quarters. Now, regarding our insurance brokerage business, recent regulatory changes have impacted the overall growth of the life insurance sector. In response, our strategy emphasizes prioritizing quality over quantity, improving profitability, and shifting towards a stronger focus on property insurance. In the first quarter of 2024, our total premiums reached RMB112 million, indicating a slight 1% decrease year-over-year. Specifically, life insurance premiums declined by 16% annually, consistent with industry trends. However, property insurance premiums increased by 19% year-over-year, generating RMB118 million in revenue, a 12% rise compared to the previous year and marking a peak over the past two years. Notably, we have optimized our business structure by reducing the proportion of low-margin products such as auto insurance and focusing on liability insurance and overseas construction insurance. By prioritizing gross profit margin as a key performance indicator for the team, we substantially enhanced the profitability of our property insurance segment, achieving a 5.5% improvement in average commission rates. Moreover, our product innovation and customization capabilities have been recognized within the industry, resulting in a steady stream of high-quality orders in our pipeline. During the first quarter of 2024, Hexiang Insurance secured contracts with Xinjiang Transportation Investment Group and ranked top among its three major suppliers. This achievement sets a strong foundation for our future expansion in providing customized services within the construction insurance sector. In the realm of AI integration, our insurance business is actively exploring innovative applications and currently developing our proprietary AI-driven insurance renewal reminder robot. Following rigorous voice training, program testing, and data segmentation, we've already begun initial deployment in our operations. Additionally, we are making significant progress in customer acquisition through social media channels. In the first quarter of 2024, we converted leads from our social media efforts into RMB2.2 million in premiums. This momentum remains strong as we enter into the second quarter. Moving forward, we will continue to focus on strengthening our channel partnerships and overall profitability. However, we maintain a conservative attitude toward the life insurance sector as the regulatory impact is expected to continue in the foreseeable future. In the consumption and lifestyle services segment, our total GMV reached RMB625 million in the first quarter of 2024, making a remarkable 103% year-over-year increase, largely driven by our existing and expanding customer pool. As we continue to deepen penetration within our current customer base, we anticipate the growth rate of this segment will gradually normalize, aligning with our other business segments. To wrap up my prepared remarks, I would like to reiterate our AI strategy as the foundational direction for our future development. It is structured in three comprehensive phases or three steps. Firstly, empowering existing business. We are leveraging AI to enhance and optimize our current operations, driving efficiencies and improving outcomes across all segments. Secondly, building advanced AI capabilities and ecosystem. While we integrate AI into our existing business, we have developed many high-value tools, capabilities, and partnerships. For example, our proprietary DiTing Intelligent Decision-Making System made over 1 billion decisions by the end of the first quarter of 2024 and has earned industry-wide recognition with a prestigious award. Another example is our AI-driven Intelligent Customer Service solution, which was honored with the Outstanding Solutions Award at the National Industrial Financial Collaboration Data Modeling Algorithm Competition, among others. Such tools, together with our large language model training, fine-tuning, and optimization capabilities can serve not just us, but many other industries and enterprises as well. We are keen to explore such business opportunities. Furthermore, we are actively seeking strategic investment and partnership opportunities and have built a healthy pipeline for execution. They can help build better access to top talents and technologies. Lastly, for the long-run goal of exploring future AI commercialization, we endeavor to build AI-native businesses as our business expansion and company transformation strategy. We believe the high-value tools, capabilities, and relationships as mentioned above serve as a solid foundation. Our AI strategy is not a sudden shift in business direction, but a solid step-by-step approach to upgrading and sharpening our core competitive strength that we've built over the past decade of operations. We are excited to continue this journey with our partners and shareholders to embrace a bright future. Now, I will pass it to Na, who will go through the financial performance for this quarter.

Thank you, Ning. And hello, everyone. On this call, I will only focus on our key financial highlights. Please refer to our earnings release and IR deck for further details. First of all, we are glad to deliver a solid performance with a high-margin partner. In the first quarter of 2024, our total revenue reached RMB1.4 billion, representing a 40% increase year-over-year. In the financial service segment, our total loan facilities continue to grow rapidly, reaching RMB11.5 million, an increase of 86% year-over-year, driven by the strong demand for our smaller revolving loan products. Revenue from financial service business increased by 53% year-over-year to RMB738.1 million. In the insurance sector, our gross written premium reached RMB912 million, representing a decrease of 1% year-over-year. As mentioned by Ning earlier, the decline in our premiums is mainly driven by the essential drop in our life insurance sales, followed by local regulation changes, which were offset by an increase in our property insurance products. Consequently, the portion of our property insurance in our overall business increased sharply compared to our life insurance products. The average commission rate in the property insurance sector is lower, resulting in a 36% year-over-year decrease in revenue from our insurance brokerage segment, to RMB125 million for this quarter. However, going forward, it will also impact our life insurance business to greatly rebound in line with market recovery. In the consumption and lifestyle segment, the total GMV for this quarter reached RMB625 million, representing an increase of 103% year-over-year, driven by our large consumer base. As mentioned previously, this was launched a year ago to serve our users across our business lines. Therefore, as its penetration grows, the GMV of this segment grows strong to align with our business combining customers across diverse business segments. On the expense side, sales and marketing expense increased by 161% year-over-year to RMB275 million. This growth was partly driven by the rapid penetration of our financial service segment and our marketing efforts to gain and acquire new high-quality customers as we continued to optimize our customer mix. Research and development expense increased by 39% year-over-year to RMB31 million due to our continuous investment in AI and technological innovation. Origination and service costs increased by 70% year-over-year to RMB233 million. The growth is primarily contributed to our high channel base in the private insurance business compared to our life insurance. As a portion of private insurance premiums increase, there is a corresponding increase in final settlement costs. Moreover, our G&A costs increased by 32% year-over-year to RMB84 million, primarily due to necessary personnel adjustments involving staffing and providing additional incentives. The allowance for contract assets and receivables was RMB102 million for the quarter, representing a 150% year-over-year increase, mainly due to the growth in our loan facilities. Moreover, as we mentioned earlier, we need to improve the balance between our overall risk management costs and profitability. We have started to gradually increase the loan-volume facility under the risk-taking model. Therefore, we have a new item named provision for contagion liability to reflect the provision under this model. Additionally, as the loan volume under this model grows, we expect a gradual increase in our revenue from our guaranteed service in the coming quarters. On our bottom line, we continue to deliver a strong profit of RMB486 million this quarter, representing a 14% increase from the prior year. We generated approximately RMB632 million net cash from operations this quarter, an increase of 62% from the previous year. On the balance sheet side, our balance sheet remains robust with RMB5.9 billion in cash and cash equivalents as of the end of this quarter. We have already allocated $2.1 million to perform our share repurchase in the public market for the first quarter of this year, bringing our total deployment for the share repurchase program to $9.5 million by March 31, 2024. We will continue to do our share repurchase and maintain confidence in the fundamental direction of our company business and its growth potential. Based on our assessment of current business and market conditions, we expect our revenue for the second quarter of this year to stand around RMB1.4 billion to RMB1.6 billion with a healthy net profit margin. This refers to our current and preliminary view, which is subject to change and uncertainty. With that, we conclude our remarks. Operator, now we are open for questions. Thank you.

And thank you. We will now begin the question-and-answer session. Our first question today will come from Matthew Larson of Fincadia. Please go ahead.

Good evening, everyone. I appreciate you taking my call. I just have a few comments to share. It was another solid quarter, with significant cash generation and earnings, consistent with what you've accomplished across previous quarters. I've been involved with your stock since your IPO and have performed well over the past year. The stocks have had a strong run, and I’m hopeful for a breakout to a more mainstream price level. However, there's currently a lack of interest in Chinese securities in the U.S., and the local markets like the Hang Seng and Shanghai have not fared well, which presents a challenge. Still, I have to commend you on the improvements in your public relations over the past few months. Your business updates have highlighted pertinent terms like artificial intelligence, which accurately reflect your use of algorithms and AI in your lending and customer acquisition strategies over the years. While it hasn't boosted the stock recently, I’m glad to see your stock price remains strong, and I’m hopeful for a significant increase in the near future. Additionally, I noticed that your earnings announcement today was notably more detailed, broken into two or three parts with year-over-year comparisons rather than just a single line. Whoever is managing your communications is doing a fantastic job. We've discussed in prior conversations the possibility of implementing a dividend, which many of your U.S. peers have. Companies like QFIN and XYF have announced dividends and tender offers, while GIN just declared a large dividend. They are returning cash to their investors, trading at low multiples similar to yours. I would encourage you to consider this; with a cash reserve of $30 million to $40 million, implementing a dividend wouldn't disrupt your business model or growth outlook, but it would certainly benefit shareholders and could help increase your stock's value significantly. I also wanted to mention that your share buyback program could be expanded. Outside of these points, I thank you for another successful quarter. I remain confident in your company, and I believe that increased interest in the Chinese stock market could benefit your stock performance. Thank you.

Thank you, Matthew. A couple of thoughts following your very nice remarks. One is that, indeed, we have improved the way we communicate with the public. Thank you. And some other shareholder friends making this great suggestion. And we'll continue to do that. And secondly, artificial intelligence is very real for us. This time is the new, new thing, and it's the real thing. So for all the industries and the companies, we have strong conviction that we are well positioned to capture this great change element opportunity. So we've already seen very exciting initial results as we embrace our AI strategy. So we will continue doing that and also talking about that. And thirdly, regarding the dividend suggestion, while we continue to believe that share buyback and investing into the future, like AI, can best serve our shareholders, we hear you and other shareholder friends regarding this issue. We are further evaluating this issue, and this is where we are. We will report more as there is additional progress. It is our intention to really serve our shareholders with great value creation in many different ways. I appreciate the suggestion you and some other shareholder friends have given us. Lastly, regarding China, indeed, there is an impact. But we are also growing internationally, and so we are in more markets. So the business is more balanced. The story is not just a China story, but a global story. It's not just a FinTech story, but an AI story. So I think what we are doing in terms of our business strategy is transforming the company to an AI player. In terms of the capital market strategy, we are recategorizing the company. I hope by doing this well for some time, we can best serve our shareholders, including ourselves. Thank you.

Our next question today will come from Marco Zhang of Research. Please go ahead.

Hi, thank you to management for taking my question. This is Marco from Research. Following Mr. Tang's response to Matthew's earlier question, I want to focus on your international business. In your last earnings call, you outlined significant plans for expansion into Southeast Asia, Latin America, and Mexico. For our modeling purposes, could you share what portion of your revenue this quarter was generated from international operations and what your target percentage is for the end of 2024?

Thank you. Again, going global, being truly global is our clear strategy. We are making very solid progress in Southeast Asia and Latin America. I mentioned certain information in my prepared remarks. Let me see whether or not I can provide more details at this point.

Got it. Yes, maybe we can talk offline and get this out. Yes.

I can give you some useful information for your reference regarding our international business. As mentioned in our previous call, our overseas business is one of our main business strategies. From 2022, after we acquired our licenses, our overseas business volume increased with digital clients. In this quarter, our overseas volume is about RMB32 million, representing 52% growth compared to the last quarter of 2023. For the second quarter of this year, we also have confidence in our overseas business, and we think that we will maintain the high growth rate easily, possibly higher than the first quarter. For the full year of this year, we expect our overseas loan volume to increase about 5 times to 6 times compared to the last year. So we can be optimistic about our future business. Of course, for the revenue, actually for the first quarter of this year, due to the RMB32 million loan volume, the total revenue is not just significantly impacting our total revenue, but for the whole year, based on our forecast, we plan for the total revenue from our overseas to be about 3% to 5% of our overall financial service for the entire year. Besides the loan volume and revenue, we also put more attention to our profitability in our overseas product. In this quarter, our overseas product, especially in the Philippines, our margin has yielded positive results. I hope the information is useful for your question. Thank you.

Perfect, yeah, that answers my question about your international business. Yes, and my second question is about AI. So congratulations on your successful launch of AI Lab last quarter. You also mentioned in your last earnings call that you aim to expand your AI expertise beyond the FinTech verticals to more selected sectors. Is there any progress there that you can disclose? And also as you have a much stronger cash position and you changed your Chinese name from Yiren FinTech to Yiren SmartTech, do you have any strategic plans in AI, such as acquisitions in the near future?

Thank you. The new Chinese name is more aligned with Yiren AI Tech or Yiren Intelligent Tech. What we're doing right now is that, as I mentioned, there are three steps. The first step is that we utilize AI really well in our existing businesses and in our company management operations. Because it's really not an easy thing to execute our existing business well. Given the risk situation, we need to do better risk management. At the same time, though, we are preparing for the future. For example, we train our models, right, to ensure we can optimize our operations. In addition, we are productizing our capabilities and solutions, making them available for other companies and industries. We are focusing on strategic investments in AI-native business opportunities. We are also interested in pursuing smart mergers and acquisitions. There is indeed one idea we are currently evaluating. As it progresses to a certain stage, we will be in a position to share more. Overall, I think we are focused on utilizing AI in our business while building advanced capabilities for future opportunities. Hope I can share more next time.

Okay. Great. Yes. That's great to hear. And congratulations again on another strong quarter, and we look forward to hearing more good news from the company.

Thank you. Our next question today will come from a Private Investor. Please go ahead.

Hello, Mr. Ning Tang and the company. Thank you for your strong results and the hard work you've put into the company. I want to start by noting that YRD is currently trading at a price-to-earnings ratio of 1.4 or even 1.5, while net profit has increased quarter-on-quarter, indicating it's lower right now. My first question is about the increase in net cash from operations, which rose by 62% from the previous quarter to 2023. Can you explain why this occurred?

I beg your pardon. What about the 60%?

The net cash from operations increased by 62% from last year. I was wondering why this happened? Should we expect this in quarter two, quarter three, and quarter four for better cash performance?

My first question is how did the net cash from operations increase by 62% from the previous quarter to 2023, and why? I was wondering why this happened. Should we expect this trend to continue in the second, third, and fourth quarters for improved cash performance?

Yes, I will answer your question. In this quarter, our R&D totaled RMB41 million and also increased compared to the fourth quarter of last year. However, it's a little decrease compared to last year. In the first quarter of last year, the total research and development was RMB48 million. The decrease this quarter is mainly due to staffing adjustments. For example, we may replace some lower technical staff with some higher technical staff. However, we still have more R&D recruitment and expenses planned for the future. We hope for the entire year, our R&D expenses total around RMB100 million to RMB200 million compared to last year's RMB149 million. Overall, we will keep our focus on R&D expenses.

Okay. Again, I asked about the net cash provided by operations. So it's like cash from operations. It increased a lot, and I was happy about it. But, okay. Second question is, your guidance is, again, I think, reiterated in 2023 last quarter in 2023, Q4. You provided guidance with a mid-bound target of RMB6.4 billion. With the current projections in Q2 of RMB1.4 billion to RMB1.6 billion, if you continue doing RMB1.6 billion in Q3 and Q4, you should achieve the mid-bound target of RMB6.4 billion. I think you're expecting that, right, on the revenue guidance?

No, can you please confirm?

Sorry. If you don't understand anything, I can repeat.

I got it.

Yes. I think for the volume of 2023, it's our current assessment that we can meet the total outlook of the total revenue we released in the third quarter of last year. However, for this quarter, the lower revenue is due to seasonal factors and the market conditions in China, which is why you can see our revenue cannot increase much. But in the future, we think we will lead the guidance at a high level as have high confidence in our business to contribute positively for the whole year.

If you achieve the mid-point of our guidance, you would see a revenue growth increase of approximately 31% or 30.6%, with a 1.4% adjustment for anyone on this call. My final question is regarding the significant increase in prepaid expenses and other assets on the balance sheet. From what I understand, this is related to current assets. Could you explain what led to this increase year-over-year and also compared to the fourth quarter from last quarter? They have risen by about RMB800 million or RMB900 million. What was the reason for that?

Na is probably looking into the details.

Yes, to compare to the end of last year, our prepaid expenses and other receivables increased compared to the end of last year because we made prepayments to some of our suppliers due to business development purposes, like enhancing our cooperation with our partners. This led to an increase in our prepaid expenses. We hope this contributes to solid relationships and better services in the future.

Okay. Again, I want to congratulate you on the results. I'm very happy and you're executing great. I have a question for Mr. Ning Tang or rather a suggestion. If you could change the name of the Chinese company to include AI instead of just digital, could you also change the name on the New York Stock Exchange from Yiren Digital LTD to Yiren AI? It might attract more attention from investors.

I really like the Yiren Digital English name. Digital is a great term, and I see it can still imply AI. But thank you for the suggestion. I will consider your points about how potential investors perceive our branding.

But investors see the Chinese name. Investors don't see the Chinese name. You must Google translate the Chinese name. So American investors on the New York stock exchange see digital. We don't see AI in the name.

I see. Okay.

If you did the name change in China, maybe you think about it. Thank you very much. And if you have one more question.

Yes. I really want our interested prospective investors and shareholders to look a bit further into all the details, right? And not just the name. My sense is, yes, probably good for the short term, but really I’m not so optimistic about it in the long run.

You said in the Chinese, Yiren artificial something or you said to the previous guy who asked the questions that the name...

The change made in China is mainly because the original Chinese name suggested fintech. We're more than fintech, so we better change the name, but the English name, Yiren Digital, doesn't suggest fintech. My sense is, digital includes certain fintech notions but also covers AI notions, but I took your point and I’ll think about it.

Okay. Maybe Yiren FinTech and AI or small AI capital, I don't know, whatever, as you wish. Thank you very much, sir. And the last question is also about AI. You mentioned that I will have to read the transcript. You achieved many milestones this quarter, but you said that an AI-powered language model handled 400,000 calls. So, there was an AI language model acting as a sales representative? Did I understand that correctly, 400,000 calls?

Yes, yes. We made this number of calls to try and sign them on.

Very nice. Okay. And thank you, sir. And thank you also for the $2 million repurchases, and I hope they will continue even though there are peanuts compared to your cash balance but whatever.

Thank you.

Our next question today will come from Peter Ruh of BlueBird Advisory. Please go ahead.

Thank you. Good evening. It's disappointing that the CEO and Founder is not on the call for the second consecutive quarter.

I'm the Founder and the CEO of the company. This is Ning Tang speaking.

Thank you. I apologize, Mr. Tang.

I've been doing a lot of talking. I did the prepared remarks, and then I answered a number of the questions.

Our CEO is here. Yes.

I have actually participated in every earnings conference call since the company went public.

Were you on last quarter? I thought you were traveling.

Yes, our CFO was traveling, but she is with us now.

Yes. I find it difficult to understand your CFO, but that might be due to my phone. My question is regarding the low stock price, which seems to stem from a lack of confidence in your company due to all the changes. I believe that offering a dividend might be a better use of your substantial cash reserves. While I recognize that you are the principal shareholder and may not care about the opinions of smaller investors, simply holding cash is not beneficial. It negatively impacts your return on invested capital, affecting your fundamentals. You should either utilize that cash more effectively or return it to shareholders. As Matthew mentioned, a modest $50 million dividend could significantly boost your market capitalization and demonstrate that you value your small shareholders.

Thank you very much for your question about the dividend. We understand the significance of this issue, but did you hear my response at the start of the Q&A session?

Yes, yes. I heard your answer to Matthew, and you said that it is under consideration. I was hoping you would announce that this month since you've had three months to hear our feedback from the last conference call. And I don't know if I should sell your stock or keep it for another three months. If you're just going to tell us in another three months that you're still investigating it, you've had three months to think about it and you did nothing today with regard to the dividend.

So I don't have to repeat my answer at the beginning of the Q&A session. Yes, we will try and do a good job evaluating this issue. Regarding the prepaid expenses, I don't know what additional color Na can provide, but Na, can you please help out?

Yes, I can add some information about our cash management we can do currently. We now use our front row service, our current business, for example, to cooperate with the trust company to set up our treasury. In the first quarter of this year, our cooperation agreement is about RMB500 million. We also plan to use our fund to acquire some financial licenses necessary for our financial services. Additionally, we will continue our share buyback program and maintain confidence in our business development. We are also focused on investments in our AI technology.

Thank you. And ladies and gentlemen, at this time, we will conclude our question-and-answer session, and we will also conclude the Yiren Digital conference call. If you have further questions, please contact the Investor Relations team at Yiren Digital. Thank you for attending today's presentation. You may now disconnect.