管理層發言
Good day, and thank you for standing by. Welcome to the Lexin Third Quarter 2025 Earnings Conference Call. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Will Tan. Please go ahead.
Thank you, operator. Hello, everyone. Welcome to our third quarter 2025 earnings conference call. Our results were released earlier today and are currently available on our IR website. Today, you will hear from our Chairman and CEO, Mr. Jay Wenjie Xiao, who will provide an update on our overall performance and strategies of our business. Our CRO, Mr. Arvin Zhanwen Qiao, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Zheng, will discuss our financial performance. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to today's call as we will be making forward-looking statements. Please kindly note, Jay and Arvin will give their whole remarks in Chinese first, then the English version will be delivered by Jay's and Arvin's AI-based voices. With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and CEO of Lexin.
Hi, everyone. Thank you for joining us today for our third quarter 2025 earnings call. In the third quarter, we efficiently completed our business adjustments to comply with the new regulation. The smooth transition was primarily due to our robust risk management capabilities, which we have been enhancing over the years, and the resilience of our business ecosystem. This reflects our long-term development philosophy and our strong ability to navigate business cycles, effectively minimizing the impact of industry fluctuations on our company. Despite these fluctuations, we delivered solid performance in the third quarter. Loan volume reached RMB 50.89 billion, revenue reached RMB 3.42 billion, and net profit was RMB 521 million, representing a 2% increase quarter-over-quarter and a 68% rise year-over-year. Our net profit take rate stood at 2.01%, up by 9 basis points from the previous quarter and by 92 basis points compared to the previous year. We believe the implementation of the new regulations will raise industry entry barriers and promote a healthier and more orderly industry development. Our unique advantages in business ecosystem synergy and customer-focused operations will put us in a favorable position moving forward. We are confident that our long-term investments in fundamental capabilities and ecosystem businesses will gradually evolve into distinctive and powerful advantages. We have always prioritized shareholder returns. As announced earlier, the dividend payout ratio will increase from 25% to 30% of net profit starting in the second half of this year. In addition to cash dividends, our share repurchase plan and my personal share purchase plan are progressing well, with both initiatives more than halfway completed. Now, I will outline the key initiatives from the third quarter. First, we improved user categorization and risk identification, taking early action to address industry risks. In response to industry risk trends, we implemented strong user categorization and took proactive measures to manage risk, effectively balancing business volume with asset risk. We used our historical cycle models to systematically phase out users who are highly sensitive to cyclical impacts and exhibited instability, adjusting our risk management strategy accordingly. We also refined our customer segmentation and tailored pricing strategies. As a result, new assets in the third quarter maintained a balanced risk-return profile. Second, we enhanced user experience through a customer-centric approach. We upgraded our products and management capabilities, and our customer care system developed positively, allowing us to meet the financial and service needs of various customer segments. We collaborated with financial institutions to optimize funding supply and expanded flexible repayment solutions, including flexible borrowing and repayment options and bullet loans. Additionally, we customized reoffers to enhance customer satisfaction and loyalty, effectively improving user retention. Consequently, the proportion and contribution of high-quality customers continued to grow. Third, we accelerated the deployment of AI technology, leveraging integrated AI agents for digital transformation. In the third quarter, we pushed our AI initiatives further. Our self-developed large model, Lexin GPT, now incorporates multidimensional data, significantly enhancing the decision-making capabilities of AI agents across different scenarios. This improved user request identification accuracy by over 20% and greatly increased request solution efficiency. The AI agent has been applied in various areas, including risk management and credit granting, and we plan to expand its use further. The industry-integrated AI agent has streamlined data connectivity and task coordination, fostering stronger business synergies. We have established a solid foundation for AI-driven digital transformation, providing essential technological support that enhances efficiency, revenue growth, and user experience. In the third quarter, different business units within our ecosystem collaborated to create synergies, reinforcing our ecosystem's resilience. Our online consumer finance business targets high-quality customers with a focus on optimizing service experience, significantly enhancing engagement and retention. The installment e-commerce business appeals to young consumers in key shopping scenarios, with essential daily consumer goods GMV growing by 58.5% quarter-over-quarter and 133.8% year-over-year during the recent Singles' Day Shopping Festival. The overall GMV of our e-commerce platform increased by 38% year-over-year, with transaction volume for essential goods surging by 237% year-over-year. Our offline inclusive finance operations focus on small and micro business owners in lower-tier markets, maintaining stable asset quality this quarter and validating the value of these markets. We will continue to increase our investments in offline markets and enhance operations. Our technology empowerment business and overseas operations also saw steady volume growth this quarter. We remain committed to a user-centric service philosophy, emphasizing consumer rights protection as a competitive advantage. In the third quarter, we strengthened our consumer rights protection system across various dimensions, including policies, products, and services. We integrated consumer rights protection into our sustainable development strategy, implementing measures across all business processes through diverse mechanisms. We actively responded to user needs by leveraging technology, including our online customer service center and AI-empowered support to enhance service quality and efficiency. We also collected user feedback for data analytics, aiming to improve overall satisfaction. In addressing frequent violations of consumer rights, we adhered to regulatory requirements and collaborated with the industry to combat such activities, achieving positive outcomes. With the new regulations commencing in the fourth quarter, the industry is on a more sustainable path. Having finalized our business adjustments, we are well-positioned to seize opportunities arising from industry changes by increasing investments in ecosystem businesses and driving steady growth. Looking ahead, we are optimistic about achieving stable performance growth. Now, I will hand over the call to our CRO, Arvin. Thank you.
Thank you, Jay. I will now review our key initiatives and achievements in risk management for the third quarter. During this time, industry uncertainty remained high. With new regulations implemented in October, liquidity across the industry tightened further in the fourth quarter. As a result of these broader industry trends, we experienced a slight increase in our day 1 delinquency ratio and collection rates for loan balances. However, because of the proactive measures we began in the second quarter to strengthen risk control, our overall risk volatility remains manageable. In light of the complex industry environment, we have tightened controls on high-risk customers by reducing exposure to risky accounts and limiting credit lines. These actions have helped us manage new loan risks while ensuring full compliance with regulatory standards. We have also focused on serving prime customers to foster the growth of high-quality assets. Let me outline the key initiatives we implemented in the third quarter. First, we further enhanced risk control measures for high-risk customers. We improved data mining on key variables such as multiple borrowing, pricing preferences, and income verification to better identify customers sensitive to industry changes. By updating our customer credit behavior models with the latest risk trends, we improved our capability to detect high-risk customers quickly and accurately. We systematically phased out customers with excessive debt exposure and high-risk profiles, and reduced credit lines for borrowers with weak repayment capacity or those who might struggle with liquidity. Second, we continued to enhance our operational capabilities focused on prime customers. We utilized multidimensional models for demand, response, and churn, and made targeted investments in outreach, credit line approval, and pricing to maintain service quality. Our customer-centric approach has improved customer experiences for prime clients. We have kept our offers competitive regarding credit lines and implemented product-based pricing to re-engage dormant customers. We also introduced flexible borrowing and repayment options for prime customers and personalized re-offers, which have led to increased satisfaction and loyalty. As a result, loan volumes from prime segments have grown month-on-month in the third quarter. Third, in our installment e-commerce business, we have enhanced our risk management system, improving our risk identification capabilities. Given external uncertainties, we adjusted the growth pace of our installment e-commerce sector to balance scale and risk for sustained development. We tightened risk criteria and reduced exposure to high-risk and sensitive customers. Simultaneously, we selectively supported certain categories, such as high-quality consumer electronics, by allocating dedicated credit lines, which contributed to e-commerce GMV growth. Looking ahead to the fourth quarter, we will adapt our strategies based on evolving industry risk trends to ensure steady and sustainable business growth. Lastly, in developing intelligent risk control tools, we have made significant strides in building our next-generation smart risk control system, which automates and enhances the credit decision-making process through advanced AI models. This efficiency and effectiveness in credit decision-making will be crucial as we expect continued pressure on business volume and risk performance in the early part of the fourth quarter, with potential stabilization in the latter half. In response, we will intensify risk identification and management of high-risk assets to ensure that we keep risk fluctuations under control, setting the stage for steady and sustainable operations.
Thanks, Arvin. I will now provide a detailed overview of our third quarter financial results. Please note that all figures are presented in renminbi terms, and all comparisons are made on the quarter-over-quarter basis unless otherwise stated. As Jay mentioned earlier, to proactively adapt to the evolving regulatory environment, we initiated a business adjustment in the third quarter. While this adaptation temporarily led to declines in loan volumes and overall pricing, we leveraged our business ecosystem to effectively mitigate these impacts. Despite ongoing business adjustments and industry credit risk volatility related to the new policy, we delivered steady net profit growth in the third quarter. Our net income grew by 2% quarter-over-quarter and 68% year-over-year to reach RMB 521 million, a record high in the last 15 quarters. Our net income margin increased to 15% from 14% last quarter. Our net income take rate increased 9 basis points to reach 2.01%. We have realized the net income take rate goal of achieving over 2% by year-end ahead of the original schedule as we communicated earlier this year. This underscores the company's results and improved ability to execute on our business objectives. Now let's take a holistic review of our third quarter financial results. First, net revenue of the credit business, which is derived by adding up credit facilitation service income and tech empowerment service income, net of credit cost, including provisions and fair value changes and the funding cost reached RMB 1.9 billion, a 3% or RMB 59 million decrease quarter-over-quarter. The decrease was primarily attributable to an increase in credit costs of approximately RMB 40 million, reflecting continuously strengthened provisioning. Second, net revenue of the e-commerce business, defined by e-commerce revenue. Net of cost of inventory sold increased by 14% or RMB 14 million to RMB 111 million. So the total net revenue summing the credit and e-commerce business added up to RMB 2.1 billion, a 2% or RMB 46 million decrease quarter-over-quarter. Operating expenses, including sales and marketing, R&D, G&A, processing and serving costs decreased by 4% or RMB 57 million to RMB 1.4 billion. Tax and others increased by 1% or RMB 1.8 million to RMB 162 million. The total expenses added up to RMB 1.5 billion, decreased by 3% or RMB 56 million. By deducting total expenses of RMB 1.5 billion from the total net revenue of RMB 2.1 billion, we get net income of RMB 521 million, an increase of 2% or RMB 10 million quarter-over-quarter. Given the backdrop of the pending regulation and the associated industry credit risk volatility, it was not an easy task to achieve this record high profit in the third quarter. During the net profit growth, driving this is the resilience of our business model and the 3 key factors: one, our operational agility demonstrated by smooth transitioning between the capital light and capital heavy models; two, our installment e-commerce steady growth and the profit contribution; three, our solid financial position underpinned by the adequate and prudent provisioning. Next, I'm going to elaborate a little bit more on these 3 highlights. First, our operational agility demonstrated by smooth transitions between the capital-light and the capital-heavy model. In the third quarter, in order to meet the new regulatory requirements, we started to transition our business by gradually reducing capital light business volume. By October 1, we have completely stopped facilitating loans with APRs above 24% and were fully compliant with the new rules. As a result, in Q3, the mix of capital light loan volume further reduced from 20% to 13%, while the ICP business only accounted for 8.5% of the new loans. As the new regulatory framework, we continue to serve a select group of long-tail clients using the capital-heavy model. As such, the mix of capital-heavy loan volume increased from 80% to 87% of the total new loan volume, largely offsetting the decline of ICP volume. Thanks to the smooth transitions between the 2 models, total loan volume only saw a modest decrease of 3.7% compared to the second quarter. As ICP business primarily serves long-tail customers, it naturally bears higher pricing. Therefore, the wind-down of ICP business had a negative impact on our overall pricing, which was partially offset by the lower funding costs associated with the capital-heavy model. Driven by the above factors, our tech empowerment service income, which represents income from the capital-light model and value-added services, decreased by 45% or RMB 374 million. While our credit facilitation service income, which mainly consists of income from the capital-heavy model, increased by 15.3% or RMB 347 million. As a result, revenue from credit business only decreased by 1% or RMB 27 million despite a loan volume decrease of 3.7% in the third quarter, demonstrating our operational agility to navigate regulatory changes. Second, steady growth of e-commerce business and its growing contribution in the third quarter. Despite strong demand driven by limited credit availability for long-tail customer segments since the second quarter, we observed an industry-wide risk volatility in the third and fourth quarter. In response, we prudently slowed down the growth of e-commerce loan volume as we prioritize quality rather than volume of the assets. As a result, our e-commerce loan volume grew by 50% sequentially to RMB 2.3 billion. For the upcoming fourth quarter, we'll continue to keep a close eye on the asset risk performance and strike a balance between volume growth and asset quality. As a reminder, if you look at the e-commerce revenue in our P&L, it recorded a decline of 29% to RMB 345 million despite the e-commerce GMV growth of 15%. This is caused by the accounting treatment difference due to the continued volume shift to third-party sellers from the company direct sourcing model. For third-party sellers, only platform service fee is recognized as revenue rather than the entire transaction amount of the direct sourcing model. In the third quarter, third-party seller model accounted for 85% of e-commerce GMV compared to 75% from last quarter. As mentioned earlier, our e-commerce business generates 2 profit streams, mainly the gross profit from selling merchandise and interest income from loan installment services. In the third quarter, gross profit reached RMB 111 million, representing an increase of 14%. The growth in our e-commerce business gross profit has not only enhanced our overall profitability but also expanded our targeted long-tail user segments, thereby further mitigating the impact of our business model transition. Going forward, we will continue to grow our e-commerce operations prudently and fully leverage its unique advantages and the new regulatory environment. Third, we continue to maintain a robust financial position characterized by adequate and prudent provisioning. Our total provisions saw an increase while the overall asset quality remained healthy, evidenced by a 15-basis-point improvement in the 90-day delinquency ratio to 3.0%. However, as the industry transitions towards the new regulatory framework, we observed increased volatility in early risk indicators starting from September. While we consider the fluctuations to be temporary, the whole industry may need some time to fully absorb the impact, and we expect the industry-wide risk volatility to continue into the fourth quarter. In response, we have sustained our strategy of setting aside ample provisions to ensure a strong buffer during the transition period. In the third quarter, our credit cost, including 3 provision line items and fair value changes on financial guarantee derivatives, rose 4% or RMB 40 million to RMB 1.1 billion. Due to the net accounting policy we've adopted for the item change in fair value of financial guarantee derivatives and loans and fair value, the actual full provision we set was partially offset by the guaranteed income and recorded as a net amount in our P&L. As such, the reported item only represents part of the actual full provision. If excluding the impact of the net accounting policy and the recovering the growth provision, the full provision ratio of new assets calculated by dividing gross provision by capital-heavy loan volume, increased 6 basis points from the second quarter to 6.97%, well above the historical highs of vintage charge-offs. As Arvin mentioned, we continue to closely monitor asset performance and utilize various post-lending management tools to strengthen collections while maintaining an ample financial buffer to navigate through the credit cycle. As a summary, the above 3 highlights impacted the net revenue side of the income statement. In short, total revenue reached RMB 3.4 billion, representing a decrease of 5% quarter-over-quarter. This was mainly due to a 29% decrease in e-commerce platform service income, which was caused by ongoing shift in the e-commerce business model, and the corresponding net versus growth adjustment in the accounting treatment. On the cost and expenses side, total operating expenses, which include processing and servicing costs, sales and marketing expenses, R&D, and G&A expenses, reduced by 4% to RMB 1.4 billion, reflecting reprioritization of user acquisition costs during the uncertain times of business transition. For balance sheet items, as of September 30, our cash position, which includes cash, cash equivalents and restricted cash, was approximately RMB 4.3 billion. Shareholders' equity remained solid at about RMB 11.8 billion. Looking ahead, as Q4 marks the first quarter after the new regulation framework came into force, we expect industry-wide risk fluctuations to remain for some time before the industry enters into a new normal stage. In light of this, we'll continue to adopt a prudent operational approach, prioritizing regulatory compliance and asset quality over business expansion. For the fourth quarter, we expect to see moderate quarter-over-quarter decline in loan volume. Impacted by the ongoing credit risk volatility, net income and net income take rate will see a sequential decrease. We expect to see more clarity and certainty of credit risks and the profit outlook may be at the close of the fourth quarter. To conclude, I'd like to reaffirm our commitment to enhancing shareholder value. In addition to our semi-annual dividend, we'll continue to execute our share buyback program. As of October, we have repurchased $25 million worth of ADS, alongside the CEO's personal purchase of over USD 5 million worth of shares. Based on the current shareholders' return policy, we will continue to evaluate opportunities and explore different ways to ensure we deliver optimal value to our shareholders.
分析師問答
First question today is from Alex Ye from UBS.
The first question is about the new regulation in the loan facilitation industry that started on October 1. Can you provide more details on its impact on business operations? The second question is about the development strategy and outlook for the e-commerce business.
In the third quarter, we proactively adjusted our business to adhere to the new regulation. Starting October 1, we ceased underwriting loans with an APR above 24% to ensure compliance. All new loans now carry an APR at or below 24%. By shifting to this lower pricing, we let go of higher-risk customers, which has affected both our business volume and average loan pricing. After implementing the new regulation, industry-wide risks have risen due to tighter funding. From September onwards, most platforms stopped offering products with APRs above 24%, resulting in significant short-term risk volatility. While the overall impact remains manageable, the industry needs time to fully adjust to the associated credit risks. For Lexin, our effective measures have led to signs of stabilization and improvement in risk performance for new loans and our existing loan portfolio, demonstrating the effectiveness of our risk management system. In the long term, the new regulation will contribute to a more compliant, healthy, and sustainable high-quality development phase in the industry. As the regulatory framework clarifies, market resources will increasingly focus on leading compliant platforms that excel in risk control and maintain stable operations. Lexin has consistently prioritized a customer-centric approach, emphasizing compliance, asset quality, and prudent development. Additionally, Lexin's diverse business ecosystem has shown strong resilience in adapting to the new regulation. Our online consumer finance business is progressing well and has established partnerships with major financial institutions, setting the stage for future growth. Meanwhile, our offline inclusive finance business continues to support small and micro business owners in lower-tier markets, which have shown stable asset quality during the quarter, highlighting the value of these markets. Our installment e-commerce business aims to engage young consumers in key consumption areas, fostering demand through innovative models. Both our tech initiatives and international operations recorded stable volume growth this quarter. Under the new regulatory landscape, Lexin will gradually leverage its unique business ecosystem advantages. Our installment e-commerce segment will remain crucial for customer acquisition, engagement, and enhancing operational value. Over the past year, we have upgraded our e-commerce platform supply chain, onboarded branded merchants across various sectors, and broadened our lifestyle product offerings to meet essential consumer needs. In the third quarter, the transaction volume for essential lifestyle categories surged by 58.5% quarter-over-quarter and 133.8% year-over-year. The recent Double 11 Shopping Festival also saw significant growth in e-commerce GMV. By utilizing our e-commerce platform's independent risk management system, we can balance business quality with scaling. Looking ahead, we will continue to optimize and expand our product categories to meet user consumption and financial needs while managing risk effectively, further enhancing our operational model. We remain committed to prudent operations and asset quality. As we noted increased industry-wide rate fluctuations in the third and fourth quarters, we have deliberately moderated the growth pace of our installment e-commerce business. In the near term, we will continue to exercise caution regarding our growth in this area as the industry seeks stabilization. Once we see signs of stabilization in credit rates, we will gradually resume our growth trajectory to seize upcoming rapid expansion opportunities.
We will now take the next question. And this is from Judy Zhang from Citi.
During the transitional period before and after the new regulation was implemented, the industry's credit risk has varied significantly. The company has upgraded its risk control system. How are we managing this current risk cycle, and what improvements have been made in our risk management system?
After the rollout of the new regulation, we expected it to impact the industry's liquidity supply based on our experiences through various cycles. This would subsequently influence the industry's credit rates. Consequently, starting in the second quarter, we adjusted our risk management strategy and made necessary business changes. We identified customers at risk due to tightened industry liquidity, considering factors like high multi-borrowing, significant debt exposure, loan income, unstable employment, and high exposure to costly credit. Utilizing automated rescanning, clearance, and credit line robots helped us improve the efficiency of account clearing and credit line reductions. This proactive approach enabled us to address risks early in the cycle and manage fluctuations related to both new and existing loans. Additionally, we enhanced our pricing competitiveness, optimized loan terms and repayment experiences, and engaged more effectively with prime customers, fostering growth in quality assets, adjusting our asset structure, and bolstering resilience against market cycles. In summary, we controlled the growth of delinquent assets while simultaneously striving to increase the quantity and quality of our assets. Thanks to these proactive measures, risk fluctuations for new and existing loans remained manageable in the third quarter. For our overall loan book, the day 1 delinquency ratio went up by about 5 basis points compared to the second quarter. For new loans, we anticipate a 5% default rate within 30 days. As we enter Q4, the first full quarter following the new regulation, we expect challenges in risk performance, loan volumes, and profitability. For the existing loan portfolio, recent performance indicated that the day 1 delinquency ratio peaked in October due to the impact of the new regulations and the lengthy National Day holiday, followed by improvements in November, signaling stabilization. In October, as we further tightened credit criteria, we expect better performance for loans issued that month compared to the peak seen in September. Overall, as we move into October, both existing and new loans are showing signs of stabilization in risk performance.
We will now take the next question. This is from Dong Peng Chu from CICC.
I have two questions. First, what is the outlook and guidance for the fourth quarter and full year 2026 performance? Second, considering the company has utilized over half of the share repurchase quarter, what are the plans for future returns to shareholders?
Okay. I will start with the first question and ask Jay to address the second one. The fourth quarter is the first full quarter after the new regulation was implemented, and our results will be negatively affected similarly to other major players in the industry. We have stopped facilitating loans with an APR above 24% since October 1. Additionally, due to increased risk volatility in the industry, we are carefully managing our low volume growth. Consequently, we anticipate a moderate decline in loan volume for the fourth quarter. However, we expect the overall risk in the industry to start stabilizing toward the end of the quarter. Therefore, along with the industry, our risk indicators will also experience fluctuations in the fourth quarter, leading to higher credit costs. As a result of these factors, we foresee a sequential decline in net profit for Q4. To provide some context, in the first nine months of this year, we have achieved a net profit of RMB 1.5 billion, which marks a 98% year-over-year growth, consistent with our previous guidance. Even though we anticipate a decline in fourth quarter net profit due to the regulation, we still expect significant year-over-year growth in the company's full-year net profit for 2025. Looking ahead to 2026, the unpredictability in the industry and regulatory environment makes it challenging to offer clear guidance at this time. We are facing similar pressures as other leading companies. Therefore, performance in Q4 cannot be solely used to predict profitability in 2026. Nevertheless, I would like to highlight several key factors that could influence net profit for 2026. First, the overall pricing impact. Following the new regulations, the interest rates on new loans are all below 24%. As this segment of new loans grows over time, the average pricing on the existing loan portfolio will gradually decrease below 24%. This drop in pricing will put some pressure on net profit. Second, risk stabilization. The timing of when credit risk in this cycle stabilizes will determine when volume growth and profitability resume. Customers with interest rates below 24% demonstrate a more stable credit risk profile, leading to lower credit costs that could help mitigate the impact of declining pricing. Third, decreasing funding costs. The temporary restrictions on funding supply experienced in Q3 and Q4 are expected to ease as the regulations settle. As a result, funding costs are projected to trend downward. Additionally, better quality customers with lower risks will also lower funding costs. Fourth, synergies from our ecosystem business, such as e-commerce. During this period, our e-commerce business has shown steady growth, contributing positively to the company’s profitability. Our offline inclusive finance and tech empowerment initiatives have maintained stable risk performance despite challenging market conditions, enhancing our operational resilience. Thus, continued growth in our ecosystem business will further bolster our operational stability and overall profitability. In summary, the fourth quarter will represent a temporary setback in our business and financial performance due to the new regulation. The timing of recovery will depend on industry risk stabilization and further regulatory clarity. However, given our unique ecosystem business and the turnaround efforts over the past three years, we are confident in our position, which is stronger than that of many other players. We expect to be among the first to recover when conditions improve, possibly in the early part of next year. That's the first question. Jay?
We have been actively executing the repurchase program. Both the company's share repurchase program and our personal share repurchase plan are more than halfway complete, which is ahead of the original one-year timeline. This clearly shows management's strong confidence in the company's outlook and our commitment to enhancing shareholder value. The company's repurchase program is fully executed, with a dividend payout ratio of 30%. Our total shareholder returns exceed the industry average. The company has always placed high importance on shareholder return. Once the current share repurchase program is fully executed, we will explore additional initiatives to further enhance value for shareholders.
Thank you. This conference is now concluded. Thank you for joining today's call. If you have any more questions, please do not hesitate to contact us. Thanks again.
This concludes today's conference call. Thank you for participating, and you may now disconnect.