Ladies and gentlemen, thank you for standing by, and welcome to the 360 DigiTech Q3 2022 earnings conference call. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Ms. Mandy Dong, IR Director. Please go ahead, Mandy.
Thank you. Hello, everyone, and welcome to our Q3 2022 earnings conference call. Our results were issued earlier today and can be found on our IR website. Joining me today are Mr. Haisheng Wu, our CEO and Director, Mr. Alex Xu, our CFO and Director. Before we begin the prepared remarks, I'd like to remind you of our safe harbor statement in our earnings press release, which also applies to this call. We may refer to forward-looking statements based on our current plans, estimates and projections. Also, this call includes discussion of certain non-GAAP measures. Please refer to our earnings release for a reconciliation between non-GAAP and GAAP ones. Last, unless otherwise stated, all figure mentions are in RMB. I will now turn the call over to our CEO, Mr. Haisheng Wu.
Hello,
Hello, everyone. I'm very happy to report another strong quarter.
Um,
First of all, let me share some recent developments in the market environment.
Um,
China's consumer finance industry has transitioned from years of rapid expansion to quality growth in the past two years. Under the new regulatory framework, the industry has achieved substantial gains in preventing systemic risks, protecting consumer rights and benefits, driving compliant business operations, and promoting fair competition. This has created a healthy ecosystem for the development of the consumer finance market. Over the past two years, the industry regulatory framework gradually come into shape, and the rectification project of the platform economy continued to progress. Currently, the regulatory landscape has settled down. In an article titled Strengthening and Improving Modern Financial Supervision, published in the guidebook of the 20th National Congress of the Communist Party of China, Mr.
Guo Shuqing, the Chairman of CBIRC, said, "Financial innovation must be conducted under the premise of prudent supervision, which will impose normalized supervision on the financial business of the internet platform companies and promote the healthy, sustainable development of the platform economy." This implies that the fintech industry enters into the stage of regular supervision.
Um,
Since the beginning of 2022, the macroeconomy and COVID control have put pressure on China's consumer and SME credit markets in terms of market demands and asset quality. However, the market started to slowly improve in Q3 as we saw credit demand began to gradually recover and asset quality became relatively more stable than Q2. Meanwhile, financial institutions' demand for high-quality assets continues to inject liquidity into the industry, boosting funding supply efficiency.
下面我和各位分享一下这个季度我们的运营情况。[Foreign Language]
Now moving on to our operations.
在复杂多变的宏观环境下，我们秉持审慎发展的经营策略，以科技驱动有质量的增长。鉴于我们一贯的务实、严谨、风控优先的经营理念，在宏观环境不利的情况下，更加凸显出我们业务的韧性。以下我从几个方面详细展开一下。 [Foreign Language]
Given the macro environment with complexity and uncertainties. We maintained a prudent operating strategy and leverage technology to drive quality growth. Thanks to our practical, prudent and risk management first operating philosophy. Our business demonstrated resilience and strength in several key areas despite the macro headwinds.
首先我们在平衡增长和资产质量之间取得了非常不错的进展。 [Foreign Language]
First, we achieved solid progress in balancing growth with asset quality.
三季度我们的撮合放款量为1,107亿，同比和环比都达到了13%的增长。在贷余额为1,600亿，同比增长20%，环比增长6%。 [Foreign Language]
In Q3, total origination and facilitation volume was RMB 110.7 billion, up 13.13% both year-on-year and quarter-on-quarter. Outstanding loan balance was RMB 160 billion, up 22.0% year-on-year, and 6% quarter-on-quarter.
360借条作为国内领先的信贷科技服务品牌，知名度不断提升。截止到三季度，我们的累计注册用户首次突破两亿人，累计授信用户及累计借款用户分别达到4,300万与2,630万，同比增长17.6%和12.8%。 [Foreign Language]
As a leading brand for credit tech service in China, our 360 Jietiao brand became more and more well known. As of the end of Q3, cumulative number of registered user exceeded 200 million for the first time. The cumulative number of users receiving credit lines and conducted drawdown on credit was approximately 43 million and 26.3 million respectively, up by 17.6% and 12.8% year-over-year.
从去年第三季度开始，我们顺应市场和监管变化，主动压降定价，优化客群结构效果显著，有效地抵御了宏观环境的不利影响。随着存量借款的逐步到期，三季度平均定价在Q2的基础上略有下降。从风险指标来看，我们的资产质量也得到了显著的改善。Day 1的入催率从二季度的4.9%降低到三季度的4.5%，并且仍然在持续优化。我们三十天回收率也从Q2的85.2%提升到Q3的86.4%。 [Foreign Language]
Since the Q3 of 2021, we have proactively reduced pricing and optimize user structure in response to market and regulatory changes. The decent progress in these areas effectively mitigate the negative impacts of the macro environment. As our existing loans gradually reach maturity, our average price decreased slightly from Q2. Our asset quality significantly improved. Day-1 delinquency rate went down to 4.5% in Q3 from 4.9% in Q2, and is still improving. The M1 collection rate increased to 86.4% in Q3 from 85.2% in Q2.
在优化客群结构的同时，我们也持续优化我们的客群价值，提升我们用户的生命周期价值。根据我们以前的经验，优质客群不管从借款需求还是从还款能力上，表现都会更加稳定，可以为公司创造更加可观的长期价值。表现在我们的经营指标上，Q3我们的人均授信额度和笔均借款规模分别达到¥14,000以及¥8,000以上，同比增长分别达到19.3%和39.8%。平均借款期限也增加到12个月，相比去年同期增加了一个月左右。我们相信从长期来看，客群优化的效果会带来更高的经营效率和更稳定的业绩表现。 [Foreign Language]
While upgrading customer base, we continue to optimize business operations on high quality users to increase their lifetime value. Based on our experience, high quality users are usually more stable in credit demand and repayment capability. Therefore, they generate more considerable long-term value for our business. In terms of key operating metrics, the average credit line per user and average ticket per drawdown in Q3 were more than CNY 14,000 and CNY 8,000 respectively, up by 19.3% and 39.8% year-on-year. The average loan tenor also increased to 12 months in Q3, roughly one month longer compared to the same period last year. We believe that an upgraded customer base will translate into enhanced operating efficiency and a more stable business performance in the long run.
在获客方面，随着我们的客群结构持续迭代，以及对于优质客群的洞察不断加深，我们的渠道结构也得以不断优化，精准的获客能力以及获客效率都得到了显著提升。Q3新增授信用户数达到一百七十一万人，环比增加19%。而同时我们的营销费用基本上与Q2持平，单授信用户的获客成本下降15%。Q3我们以短视频、社交媒体、搜索引擎、长视频、外卖等场景深入合作，触达用户的场景更加多元化。通过我们的RTA模型的升级，我们以平台共创等方式进一步地精准识别我们的目标客户，提升了我们的获客质量与效率。升级之后的智能实时投放模型，对于我们全网设备的识别率提升到90%，我们对优质客群的识别能力提升了20%，大幅地增强了我们在信息流的投放效果。我们也将这一能力复制到应用商店等其他平台。获客效率未来还会有进一步提升的空间。 [Foreign Language]
On the customer front, as we upgraded our customer mix and accumulated better know-how about our high quality users, we optimized the structure of our customer acquisition channels. This greatly improved our capability and efficiency to acquire target users. In Q3, the number of new users with granted credit line increased to 1.71 million, up 19% Q-o-Q, while our marketing expense remained almost flat compared to Q2. The acquisition cost per user with granted credit line declined by 15% from Q2. Meanwhile, we further expanded and diversified the customer acquisition channels by working with different types of traffic platforms, including short and long form videos, social media, search engines, and food delivery, etc.
In addition, we improved our ability to identify users, especially high quality users, and enhanced the efficiency of user acquisition by upgrading our RTA models and jointly developing models with these partner platforms. For instance, empowered by our upgraded RTA models, our ability to identify device improved to 90% in Q3, and our ability to identify high quality user improved by more than 20% quarter-over-quarter. This greatly magnified the effectiveness of our online advertising. We also applied such capabilities to other channels such as app stores, which will further improve our efficiency in these channels as well.
第二个方面，我们讲科技战略。我们的科技升级战略稳步推进，轻资产业务占比持续提升。我们作为一家技术驱动的科技公司，守正创新，凭借我们的安全基因和数据智能技术，深耕金融行业，帮助金融机构搭建信贷基础设施，为金融机构提供全生命周期的大数据与技术赋能。三季度，以科技赋能为主的轻资产业务占到了总放款额的58.4%，相比Q2提升2.6个百分点。截止到Q3，我们累计与58家金融机构以轻资产模式进行合作。我们的金融科技产品不断地升级中。我们将全流程的信贷业务系统根据功能进行产品化模块化的开发，并首创支持合规金融云与本地化部署并存的混合云模式。全新解决方案中包含了二十天极速从零搭建零售信贷业务、线上线下场景全覆盖、系统部署完全合规等特性，整体上形成了赋能中小银行零售信贷转型的系统解决方案和业务增长解决方案。长期来看，随着我们撮合放款规模的不断提升，风险指标的持续验证，我们将进一步拓展与金融机构合作的广度与深度，轻资产业务的占比也将进一步提升。 [Foreign Language]
As we continue to advance our tech upgrading strategy, our capital-light and other tech solution business accounted for more portion in Q3. We are a tech driven company empowered by innovation. We set work security in our DNA and a strong capability in big data intelligence. We help financial institutions establish their credit infrastructure and empower them in the full business operation flow with our big data analytics and tech solutions. In Q3, loan originated and facilitated under the capital-light model and the other tech solutions accounted for 58.4% of the total loan volume, up by 2.6 percentage points from Q2. As of the end of Q3, we accumulatively partnered with 58 financial institutions under the capital-light model. We also refined and upgraded our Fintech SaaS product line. We transformed our end-to-end credit system into modularized products based on functionality.
Additionally, we innovatively support a hybrid cloud model where financial cloud service and local deployment work side by side. Featuring setup of retail credit infrastructure from scratch in 20 days, online and offline coverage, and system deployments in full compliance. Our new solutions offer small and midsize banks one-stop solutions of transforming and growing their retail credit business. Going forward, as we facilitate more transactions for platforms with stable asset quality in good track records, we will expand our collaboration with financial institutions in depth and breadth. This will further boost the percentage of our capital-light and tech solution business in the total mix in the long run.
第三，我们的资金结构以及成本得到显著优化。今年整体金融系统流动性充裕，金融机构对于优质资产的需求非常旺盛。而我们作为领先的信贷科技服务平台，具备规模、数据以及风控的优势，有助于我们不断优化金融机构合作伙伴的结构，提升资金供给的灵活度，降低资金成本。截止到Q3末，我们与一百四十一家金融机构建立了长期的合作关系，其中包括十余家股份制银行以及万亿级管理规模以上的大型城农商行。各家金融机构在资金端的占比相对分散。担保资金的成本持续下行，环比下降约三十个BP，Q3达到6.5%。且我们估计在四季度可以稳定在相对的低位。在ABS的发行方面，本季度我们发行了二十七亿的ABS，平均成本低至5%。相信随着我们客群结构的进一步的优化迭代，我们在资金端的优势也会更加的显著。 [Foreign Language]
Thirdly, our funding structure and funding costs both improved significantly. With ample liquidity in China's financial system this year, financial institutions have strong demands for high quality assets. As a leading credit tech service provider, our assets are in high demand given our strength in scale, data and risk management. This allow us to optimize the mix of our funding partners, obtain more flexible funding options and reduce funding costs. As of the end of Q3, we partner with 141 financial institutions, including more than 10 joint stock banks and the major rural and urban commercial banks with over RMB 1 trillion AUM, giving us highly diversified funding source. Our funding costs for credit driven loans decreased by roughly 30 basis points sequentially to 6.5%, and we expect it to sustain at a low level in Q4.
We issued RMB 2.7 billion of ABS in Q3 at an average funding cost of 5.0%. As we continue to optimize our customer mix, our funding advantage will bring out more.
第四，我们讲一下整改。整改工作已经接近到收尾阶段。我们持续与监管部门保持主动与高频的沟通，积极落实整改方案。截止到三季度末，我们已经完成了大部分的平台企业金融业务自查整改所要求的整改事项，也获得了监管机构的正面意见。就断直连的进展而言，我们已经于今年九月份跑通了断直连方案，完成了第一笔以断直连方式的放款，取得了监管的认可。目前我们正在按照执行计划积极推进中。 [Foreign Language]
Fourthly, on the regulatory front. The rectification project of the platform economy has entered the ending phase. We maintain close communication with the regulators as we implemented our rectification plan. As of the end of Q3, we have completed most of the required rectification items and received positive feedback from regulators. For the credit agency reform, or 断直连 in Chinese. We are implementing the transforming plans together with credit agency and our founding partners. In Q3, we facilitated the very first loan in the new credit rating system, namely 断直连, and received recognition from the regulator. We are now proactively implementing the plan.
我们在香港二次上市的进展，我们已经于今天上午在香港联交所网站上传了PHIP聆讯后的资料集。香港二次上市的安排充分地考虑了现有股东的利益。我们也相信两地上市的身份可以为公司进一步优化投资者结构，提升流动性。 [Foreign Language]
Here, let me provide an update on our secondary listing in Hong Kong stock market. This morning, we submitted a post hearing information pack, PHIP in short, to the website of the Hong Kong Stock Exchange. We have taken the interest of our current shareholder into full consideration in pursuing this listing. We believe that we will be able to optimize our investor structure and boost liquidity through the Hong Kong secondary listing.
我们公司在专注于运营、提高公司效率之外，我们也不忘自己肩负的社会责任。 [Foreign Language]
While enhancing our operations, we always keep in mind our social responsibility.
360数科的使命是通过科技创新，为广大个人和家庭提供安全、快捷、普惠的金融科技服务，创造美好生活。通过一系列赋能金融机构的科技实践，应用AI和云计算科技助力金融服务提升质效，创造可能。将金融之水引到真正有需要的地方，打破需求供给的不对称，创造社会价值，驱动行业服务实体经济。 [Foreign Language]
Our mission is to enable a better life for people by providing safe, convenient and inclusive Fintech service to consumers and households through technology innovation. By empowering financial institutions through a suite of tech solutions powered by our AI and cloud computing. We help to improve the quality and efficiency of financial service. We extend Fintech service to consumers whose needs are underserved or unmet while maintaining the high standard of risk management. We aim to make financial service accessible to all in a more fair and efficient manner, and to better serve the real economy.
我们积极回馈社会，帮扶弱势群体，为推动乡村振兴，助力共同富裕。九月份，我们向云南禄劝彝族苗族自治县捐赠了人民币100万元，用于建设乡村振兴精品示范村项目。 [Foreign Language]
We bear in mind of our social responsibility by giving back to society and providing support to the disadvantaged. As part of our efforts to drive rural revitalization and common prosperity in China. In September this year, we donated RMB 1 million to Luquan Yi and Miao Autonomous County in Yunnan Province. The funds will be used to building the county into a demonstration model for rural revitalization.
回顾今年过去的三个季度，我们提前布局，凭借审慎的经营策略，有效应对了外部环境的变化。在宏观环境存在诸多不利因素的情况下，以稳健的增长和持续优化的风险表现，体现了公司业务的韧性。目前看，我们各项业务指标都按照年初制定的规划稳步推进中，我们对完成今年的目标充满信心。 [Foreign Language]
Looking back at the past three quarters, we navigate through a constantly changing market by preemptively planning and prudent operating strategy. Despite multiple headwinds in the macro environment, we achieved solid growth and improved our risk performance, demonstrating the strong resilience of our business. Key metrics show that our business is on track and we are confident we will meet our guidance for 2022.
展望未来，宏观环境依然充满了诸多挑战，但从长期来看，科技驱动金融普惠、支持实体经济发展，为社会创造价值的底层逻辑没有变化。无论是从借款人还是从金融机构的角度，这个市场依然存在大量未满足的信贷需求。我们也相信，只有守住风险底线，稳健经营的公司可以穿越周期，在市场回暖的时候释放出更多的增长潜力。 [Foreign Language]
Going forward, despite the ongoing challenges in the macro environment, long term theme remain unchanged. That is promoting financial inclusiveness through technology to better support the real economy and create more value for society. There is still tremendous unmet demand for credit from both consumers and the financial institutions. We believe based on our prudent approach to operations and risk management, our business can ride through the current business cycle and capitalize on the growing momentum once the market recovers.
行稳方能致远。我们会用持续的优异业绩表现为股东创造价值。
Only under the prudent strategy, we can navigate the fluctuations and achieve steady and sustainable long-term prosperity. Moving ahead, we will continue to generate value for our shareholders through our solid performance.
下面请我们的CFO Alex给大家分享更多。 [Foreign Language]
Okay. Thank you, Haisheng Wu. Good morning and good evening, everyone. Welcome to our Q3 earnings call. Before I start my regular update, let me first introduce a new member of our capital markets team, Ms. Karen Ji Yun. Recently joined us as a Senior Director of Capital Markets. She will be providing valuable insights, experience, and leadership to our capital markets and IR team. With our upcoming listing in the Hong Kong Stock Exchange, we really look forward to having Karen and other team members offer better services to our shareholders and the broader investment community. As Haisheng Wu discussed earlier, we delivered another solid quarter in a changing macro environment. From July to September, demand for consumer credit through our platform grew sequentially each and every month. Although the velocity and the magnitude of such improvement were modest.
During the quarter, we continued to push for steady improvement in the overall asset quality by further engaging high quality new borrower base. Overall day one delinquency has been on a steady declining trend month after month so far in 2022, against a difficult macro trend early in the year. It was 4.5% for Q3 versus 4.9% in Q2, and further declined to 4.3% in October. The continued improvement in day one delinquency further validate our strategic focus on high quality user segment. 30-day collection rate also improved in Q3 and reached the best level in 2022. During the quarter, we resumed most standard collection activity to the pre-COVID lockdown level, which drove the improvement of the metrics. Once again, we see clear outperformance by new borrowers versus existing borrowers.
Total net revenue for Q3 was RMB 4.1 billion versus RMB 4.2 billion in Q2 and RMB 4.6 billion a year ago. Revenue from credit-driven service, Capital-heavy, was RMB 2.9 billion, compared to RMB 2.9 billion in Q2 and RMB 2.6 billion a year ago. The year-on-year growth was mainly due to growth in on-balance sheet loan volume, more than offsetting the negative impact from decline in average pricing of the loans. Capital-heavy facilitation revenue take rates improved slightly versus Q2, mainly due to lower funding costs and longer loan tenor. Revenue from platform service, Capital-light, was RMB 1.2 billion, compared to RMB 1.2 billion in Q2 and RMB 2 billion a year ago. The year-on-year decline was mainly due to product mix change in platform services and decline of average pricing of Capital-light loan facilitation.
During the quarter, Capital-light loan facilitation, ICE and other technology solutions combined account for roughly 58% of total loan volume. Given the still changing macro environment, we continued to increase the portion of the loans processed through ICE and other technology solutions to further mitigate potential risks. These solutions normally have different commercial terms compared to the regular Capital-light loan facilitation. In the long run, we will continue to pursue tech-driven business model while striking a balance between various forms of non-risk bearing solutions based on macro environment and operational conditions. During the quarter, average IRR prices of the loans we originated and/or facilitated declined modestly to just below 22%, well within the 24% rate cap requirement. We expect pricing to be relatively stable for the coming quarters. Sales and marketing expenses increased by approximately 2% sequentially in Q3.
The slower pace of increase reflects our continued effort to improve the efficiency or effectiveness of our user acquisition system and drive cost efficiency. Please note, during the quarter, we added approximately 1.7 million new credit line users compared to approximately 1.4 million in Q2. Unit cost to acquire a new credit line user declined approximately 15% sequentially. As such, average cost per dollar amount new credit line also declined by similar magnitude Q-on-Q. As always, we will continue to use life cycle ROI and LTV as key metrics to determine the pace and scope of our user acquisition strategy to ensure the sustainability and profitability of our operations. Overall, risk profile of our loan portfolio continued to improve in Q3 due to the contributions from new loans from higher quality users.
Impacts from macro-uncertainty and the latest outbreak of COVID cases across the nation were still somewhat visible. Although we continue to take a prudent approach in booking provisions against the potential credit loss, re-evaluation of previous quarters provisions yielded sizable write-backs as macro condition improved Q-on-Q. Total new provisions across 4 different categories for loans originated and facilitated during the quarter was approximately RMB 1.8 billion, while approximately RMB 300 million previous provisions were written back. With strong operating results and increased contribution from capital-light model, our leverage ratio, which is defined as risk-bearing loan balance divided by shareholders' equity, was at historical low of 3.8 times in Q3, compared to 4.3 times a year ago. We expect to see rather stable leverage ratio for the time being until capital-light contribution grow beyond current range-bound in the future.
We generate approximately RMB 1.6 billion cash from operations in Q3, compared to RMB 1.1 billion in Q2. The significant sequential increase in operating cash flow was mainly driven by better working capital management. If you recall, last quarter, due to some COVID-related administrative procedure delays, we were unable to collect certain receivables in time. Those receivables were eventually settled in Q3, boosting our cash flow. Total cash and cash equivalents was RMB 10.8 billion in Q3, compared to RMB 11.4 billion in Q2. Non-restricted cash was approximately RMB 7.2 billion in Q3 versus RMB 7 billion in Q2. In the last couple quarters, we took more conservative approach to deploy our cash in day-to-day business, mainly due to macro uncertainty.
Ideally, a significant portion of our cash would normally be allocated to support the security deposit with our institutional partners or to fund on-balance sheet lending in normal course of business. Non-GAAP net profit was CNY 1.04 billion compared to CNY 1.02 billion in Q2. As we continue to generate healthy cash flow from operations, we believe our current cash position is sufficient to support the growth of our business, to invest in key technologies, to satisfy potential regulatory requirements, and to return to our shareholders. In accordance with the dividend policy approved by our board last year, we declared another quarterly dividend of $0.16 per ADS for Q3. Finally, regarding our outlook for the Q4.
Although we managed to deliver a solid operating and financial results so far this year in a very challenging macro environment, we still want to maintain a prudent approach to plan our business for the near term, particularly given the recent resurgence of COVID cases nationwide and the subsequent restrictive measures taken by local authorities. At this juncture, we expect total loan volume for Q4 to be between RMB 102.5 billion and RMB 112.5 billion, representing year-on-year growth of 6%-16%. As always, this forecast reflects the company's current and preliminary views, which is subject to material change. With that, I would like to conclude my prepared remarks. Operator, we can now take some questions.
Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. For those who can speak Chinese, please kindly ask your question in Chinese first, followed by English translation. In addition, in order to have enough time to address everyone on the call, please keep it.
To one question and one follow-up, and return to the queue if you have more questions. Once again, please press zero one on your telephone keypad to ask your question. The first question comes from Jaida Li. Please go ahead.
管理层好。首先恭喜公司取得如此稳健的这个业绩，我是中银公司的李亚达。那今天呢有两个问题想向管理层请教一下，第一个呢是可能关于我们的放款结构，那我看到我们这次可能从放款结构这个角度来看呢，有披露这个风控SaaS模式下的业务量，也想请教一下未来这一部分的增长趋势，以及整个未来的一个占比情况。同时也想请教一下我们选择Capital-light和选择这个风控SaaS模式，那背后呢，是有什么样的一个不同的考虑？那第二个问题呢，也是想请教一下，从获客端来看，那在我们整个新增授信用户增长还不错的这样一个情况下，那销售营销费用整体的增幅以及客均获客成本呢都实现了一定程度的优化。也想请教一下背后的这样一个原因。也想请教一下，就是我们整个2022年的这个三季度获客方式以及策略方面，我们主要做出了哪些的一个改变，以及如何看待未来的营销费用的这样一个变化趋势。 [Foreign Language]
OK, I will do the translation part. The first one is about the loan structure of the origination volume. Also I noticed that we've disclosed the origination volume of the risk management SaaS, and I was wondering if you could elaborate more about the growth trend and its contribution out of the total in the future. And how we balance the contribution between the capital-light and the risk management side when we cooperate with a new financial institution. This is the first one. The second one is about the customer acquisition.
I notice that our cost control of sales and marketing expenses this quarter are being effective and the average customer acquisition cost on the new users with credit lines has dropped a lot. Can you give us more color on what have been done differently on the customer acquisition strategy this quarter compared with before? What is the trend in the future? Thanks.
好，谢谢李亚达。 [Foreign Language]
两个我来回答一下。 [Foreign Language]
关于那个像这个轻资产模式的转型，我想讲几个点。第一是，这是我们公司的长期战略，我们这几年以来一直在向更加轻的这个模式去升级转型。从一开始的这个Capital-light模式，到中间我们开始做这个智信模式，后来做这个风控SaaS这个模式。我们其实现在还在尝试更多种的这种那个轻资产模式，包括这个为金融机构做整体代运营等等。那我们这些模式呢，不同的模式会根据不同的这个银行的需求来分配。 [Foreign Language]
OK, let me translate. Tech upgrading has always remain our long-term strategy for our company. In the recent years, we gradually advance to more tech solutions starting from Capital-light to ICE to RM SaaS models. Recently, we are rolling out a hybrid new business model that provides both our leading credit tech system and the operation agent service. All of these tech service caters to customized needs of different financial institutions.
第二点是今年的情况。今年的情况是我们选择了几家配合意愿最强的机构，尝试不同的模式。随着我们这种类型的客户的数量越来越多，我们将会选择take rate更高的模式去深入地做，扩大到我们更多的这个银行客户里去。所以未来我们或许不会同时开展这么多的这个模式，而是会选择相对take rate高的模式去做大做多。 [Foreign Language]
In this year, we are exploring different models together with various financial institutions. Going forward, as we serve more financial institution customers and transact more loan volumes under this new model, we can further hone our products pursuing higher take rate model and serve more customers.
我们长期深入去做科技模式，不仅可以提高公司的科技属性，提高我们的这个合规的可持续性。我们同时认为这个模式将能够更加大地打开公司的增长空间。因为以银行为主体的金融科技模式，将会为我们公司打开银行自己更多更优质的客群，从而可以打开公司新的增长的这个空间。 [Foreign Language]
This new tech model can not only boost our tech solution business portion and sustain our business sustainability but also open additional markets for our long-term growth.
您的第二个问题是关于获客。三季度的获客的数据表现很好。我们想一方面呢是因为我们在从去年底开始的为像20岁定价以下的这个优质客群转移的过程中间所打下的基建工作，在三季度得到了一次集中的体现。我们看到成本得到了一个非常好的控制。一方面是这个基建起了作用。 [Foreign Language]
The reason for our customer acquisition effectiveness is starting from the end of last year. We spent a lot efforts on upgrading our IT infrastructure for online customer acquisition. Which start to bear fruit recently.
第二方面是我们在渠道的多元化方面也取得了一些积极的进展。我们不仅是在信息流的投放，我们在应用商店的这种模型的建设和方法方面，包括在搜索引擎、在外卖以及手机厂商的深度合作方面都取得了显著进展，尤其是在游戏厂商的合作方面。我们在Q3也敏锐地抓住了在微信上非常流行的一款游戏，叫羊了个羊。我们非常敏锐地抓住了这一波流量，取得了非常喜人的效果。 [Foreign Language]
Moreover, we also further expand and diversify our customer acquisition channels. For example, we not only upgrade our online advertising channels, but also apply RTA model on App Store channels, and also we cooperate with a lot of traffic platforms, including the takeout platforms, app stores, etc. In addition, we pay close attention to the market. For example, this year, there is a very popular mobile game in China, 羊了个羊, on WeChat. We closely watch the market seize that opportunity to acquire our good quality customer.
对了，在羊了个羊这个游戏上，据我们所知，我们团队可能是唯一一家作为信贷科技公司跑出流量的一个案例吧。 [Foreign Language]
As far as we know, we are the only credit tech firm that sees the traffic benefit of 羊了个羊 game.
从未来的这个趋势方面来讲，我们还是采取这个谨慎的发展策略。我们会把这个用户的长期生命周期价值作为公司经营的结果指标。单方面的这个授信成本呢，可能还是一个过程，所以我们更加关注的是我们是否拥有了足够多的优质的客户，这些客户伴随我们一起共同成长，共同去创造更长期的价值。只要这个指标是良好的，我们相信随着这个经济的回暖，我们会在营销方面做得越来越好。 [Foreign Language]
Overall, we'll continue to take the prudent business approach and prioritize long-term lifetime value of customers in our operations. We not only just care about the short-term cost for a customer acquisition, with that good quality customers will bring down costs and create more value.
好，接下来我就说这些。 [Foreign Language]
好的，非常清楚，谢谢管理层。 [Foreign Language]
Next, operator.
Thank you. The next question comes from Hans D'Haese from CLSA. Please go ahead.
好的，感谢管理层给我提问的机会。我是中信里昂的Hans D'Haese。我这边想请教两个问题，第一个还是关于咱们这个上市计划，因为也确实比较欣喜能看到咱们是第一个online lender来回到这个港股上市。请教一下我们这个大概时间表是怎么样子的，然后呢我们未来会不会有计划也想转成这个港股主要上市，因为现在是二次上市是吧？所以这个是第一个问题。第二个问题呢，是关于我们的APR，就是能不能给我们分享一下，如果往前展望，结合这个信贷需求啊，结合我们自己的意愿啊，监管的要求等等，我们的APR的趋势会怎么样啊？因为感觉过去几个季度还是在一个下行的趋势，未来会不会趋稳？这个是我第二个问题。 [Foreign Language] So I have two questions.
This is Hans from CLSA. The first one is regarding the Hong Kong listing plan. Congratulations to that, because this is the first online lender in ADR of China to go back to Hong Kong for relisting. Just wondering about the details regarding timelines and also, is there any plan to go for primary listing? Because currently it's a secondary. That's the first question. The second one is more about APR. Currently we have seen in the past few quarters our APR has been on a downtrend, but just wondering what's the outlook for APR. If we consider the demand side and also with the regulatory direction and also our strategy. Thank you very much.
好，那第一个问题，请Alex说一下吧。 [Foreign Language]
Okay, sure. For the Hong Kong listing timetable, as you know we just released the PHIP this morning and basically our intention is to follow the normal procedure of the Hong Kong Exchange to push for the final official prospectus release and then the marketing roadshow, and then the listing. That's our intention. In terms of exactly how many days or how long it will take, you can refer to some other cases, I believe the normal course on a regular basis somewhere within two weeks timeframe, so that's roughly. Secondly is about the dual primary listing in the future. That certainly is the area or the direction we're kind of looking at seriously, because there are certain benefits to become a dual primary listing company in Hong Kong. I guess first you need to finish the secondary listing, and then when you meet certain criteria, then you can apply for the dual primary. It's kind of a step by step thing. We are just right now still try to finish the first step, and somewhere down the road when the conditions ready, we'll pursuing the next one.
Alex 你来下一个吧。好。关于APR。APR我们在三季度呢，比二季度相对略微有一点下降，主要原因还是因为我们的存量里面呢，有一些过去相对较高的呢，逐步到期，所以在Q3呢，就会形成一个下降，略微有点小。但是我们随着这些存量的逐步全部到期，以及我们增量的这个新的客群的结构的稳定，我们的产品定价将会趋于稳定。 [Foreign Language]
In Q3, we see the overall pricing got lower a little bit compared to Q2. This is mainly due to our existing loan gradually ran through the maturity. Going forward as we see the loan mix from our new customers and the old customers are relatively stable. We expect this pricing to remain relatively still stable.
好的，很感谢。
Thank you very much.
Thank you. The next question comes from Li Yang from Daiwa Securities. Please go ahead.
好的，非常感谢管理层给我这个提问的机会。我是大和证券的黎漾棋，有两个问题想请教一下管理层，都是关于业绩本身。第一想请教一下，我们这个贷款定价，管理层也讲到这个，到二季末我们新发放的贷款已经都是24以下了，那么能不能给我们一个这个具体数字，就是我们三季度发放的贷款，它具体这个是比24低多少，新发放贷款的这个定价在三季度是多少？然后第二个问题是关于信贷需求，刚才徐总也讲到，三季度我们的信贷需求比二季度要回升了一些。我想请教一下，我们看到这个回升，它主要是一些怎么样的行业，这个borrower他的profile，这个借款人大概是什么样的借款人，我们看到这个信贷需求出现了回升。就这样两个问题，非常感谢管理层。 [Foreign Language] Hi, thanks management for taking my questions. This is 黎漾棋 from 大和证券. I have two questions regarding the results itself. The first question is regarding the loan pricing. I just want to know what exactly is the new loan pricing for the loans granted throughout the third Q3 this year. The second question is regarding the loan demand. As Mr.
Xu just mentioned, we've seen better loan demand in the Q3 compared with the second quarter. In our view what is the typical borrower profile that is demanding more new loans? Where are all these better loan demand come from? For example which sectors or segments? Thanks a lot.
好，谢谢。我来说一下啊。Alex如果有补充的话你来。第一个关于定价，具体的。目前我们像刚才说的，我们目前是在不到22.1%的这个水平上，不到这个数。 [Foreign Language]
Yes. Overall price in Q3 is a little bit lower than 22%.
第二个关于需求回升，我们过去所面向的客群，主要是消费信贷客群。消费在行业属性上相对不是特别明显，因为消费是一个普适性的需求，我们看到的更多的，可能是跟疫情所在的封控地域的相关性会高一些。我们看到在一些疫情得到很大缓解的地区，需求的恢复是非常明显的。 [Foreign Language]
In terms of the business nature, actually consumer loan is quite non-cyclical. We see this demand gradual recovery comes from the customers in the area that are previously hard hit by COVID.
I just want to probably add a little bit color on that. Li Yang to your question, really on the consumer side, we don't really particularly tracking their professionals. They, you know, kind of categories and everything. That's not the kind of focus point. Then also that's not the kind of data we can provide in terms of which professional getting better in terms of improvement. But just like I mentioned, you can imagine that, you know, for those areas that being locked down, for example, in Shanghai during the, you know, March, April, and May period, when the lockdown get released, there certainly will be a pretty noticeable rebound, you know, in demand.
That's kind of driven this recovery in the third quarter. Okay, thank you.
Okay, thanks a lot. Understood. 非常感谢. [Foreign Language]
Thank you. The next question comes from Thomas Chong from Jefferies. Please go ahead.
晚上好，谢谢管理层接受我的提问。我的问题呢，第一个是关于行业的竞争格局的，现在就是从行业来看，APR现在大家都是下调下来了，会不会就是对整个竞争格局呢，后续会有一些变化呢？第二的话是关于整个宏观的这个不明朗的情况下呢，我们看到了我们的ticket size，在Q3或者是往后几个季度会不会出现什么变化？然后第三个问题呢，是关于我们Q4的那个guidance的，如果现在是基于现在的疫情的情况下的，我们会觉得我们的那个，做这个low end还是high end guidance，应该怎么想呢？什么情况下会做这个low end呢？还是说呢，我们会想到疫情呢，还是会在未来一个半月出现了一些比较大的变化。 [Foreign Language] Thanks management for taking my questions.
My first question is about the competitive environment, given that the APR is trending down for a lot of the fintech companies. I just want to get a sense about how we should think about the landscape in the future. The second question is about the ticket size. Can management comment on the trend in recent quarters? My third question is about the Q4 guidance. Given the pandemic situation is very dynamic, just want to get a sense about the high end and the low end of the guidance and, under what scenario should we expect it to hit the low end? Should we expect the pandemic to worsen from the current situation? Thank you.
好，谢谢Thomas。我先说一下，一会儿Alex你看你补充。第一个关于竞争格局的，我想第一个角度是从监管角度吧，因为从十四家平台纳入监管整改以来，整体市场格局就变成这些平台公司的合规性的要求和合规性的本身，有了一个更加有竞争力的表现。所以这十四家平台将会在未来具备更好的这个合规和竞争地位。 [Foreign Language]
First of all, from the points of regulatory, since the 4/29 in last year, we believe the 14 platforms that are summoned for this meeting are more competitive in compliance views in the future.
第二个是在十四家公司内部。第一个角度是，大家还是在不同的客群里面，略微有一些差异，所以并不是在完全同质化的客群里去产生竞争。另外就是，这个行业是一个相对来讲客群以及规模无比广大的市场，你现在谈十几家公司来分享这么巨大的市场，从而产生直接竞争，可能还并不是那么明显吧。 [Foreign Language]
Secondly, if you look at the 14 platforms, we want to point out, number one, the credit market is a large market with multiple layers. Different players may cross over across the different layers a little bit. Secondly, this is mass market that we do not see that different players will compete directly head-to-head.
第二个关于宏观不明朗情况下的这个ticket size。我们如果只是考虑宏观因素，我们的ticket size将不会从风控策略上进行提升，但是我们同时会受我们客群本身的结构性变化。我们看到的结果是我们客群的变化对于宏观的这个对冲，效果是正向的。因此我们从结果上看，我们的ticket size有所变高。所以来看的话，也就是体现了我们在今年以来客群置换工作取得了显著的一个进步。 [Foreign Language]
There are two factors when we consider ticket size. Number one factor, considering the macro environment since we took the prudent approach that risk management strategy will not drive up our ticket size. Second point, as we are continuously upgrading our customer base this year, we are seeing that good customers can bring more value, create longer lifetime value and the larger ticket size.
第三个关于Q4的outlook。与往年不同的是，您会在四季度受到因规模的流动性的约束。今年，我们感觉可能流动性的约束不会很大，甚至很充裕。因此，对于我们low-end的预计，主要取决于进入冬季以来的疫情的因素，以及我们的防控政策的变化。 [Foreign Language]
As for our outlook for Q4, there are several factors we take into consideration. One, there are usually seasonality in funding supply in Q4 due to the operation of banking industry. However, as everyone knows, there is sufficient staff in China financial system this year, we do not see this factor coming to affect this year. Second reason is the macro environment and the COVID. This one we think is the major concern for our guidance.
好，Alex，你看你有没有补充的。
Sure. Thomas, I just want to add a little bit to your last question regarding the Q4 guidance. Basically the guidance reflects our view of the current sort of macro condition. Obviously, you know, the Chinese market these days are very dynamic, given the COVID-related policy changing or pending changing, as well as the reaction by the local authority to those kind of new COVID policies. We heard different kind of messages. Some say local areas are more aggressive to kind of a reopening, where some others still maintain a kind of restrictive kind of stance there. It's kind of a, you know, changing dynamic.
Based on what we can see today, I think the guidance we provide in the Q4 is within a comfortable level. Obviously if, say for the H2 of this quarter, things getting better, then you know, we'll probably see a better performance, and vice versa. You know, that's only based on information we get today.
Thank you.
Thank you.
Thank you very much. There's no more questions. Team management, back to you for the conclusion remarks.
Okay. Thank you again everyone to join us for this conference call. If you have any additional questions, please feel free to contact us offline. Thank you. Have a good day. Bye bye.
Ladies and gentlemen, this concludes today's call. You may now disconnect.