Q: What is the management’s latest outlook on loan volume growth, and are there any signs of a rebound in consumer loan demand? A: Haisheng Wu, CEO, explained that consumer confidence and credit demand remain soft, as indicated by recent financial data. Government policies to subsidize consumer loans may help, but it will take time to see meaningful impact. The company will prioritize risk management and take a cautious approach to loan origination and facilitation, potentially leading to a pullback in Q3. A clearer view is expected by Q4 once new rules are implemented.
Q: What is the latest news on the take rate, and do you expect it to remain stable over the next several years? A: Zuoli Xu, CFO, stated that the Q2 take rate was 5.4%, and the guidance for Q3 suggests around 5%. While near-term volatility is expected due to new regulations effective October 1, the long-term outlook remains positive. The market is expected to consolidate, leading to more rational competition and potentially beneficial impacts on the take rate.
Q: What would be the estimated impact of the new regulation on the ICE business, and what is the strategy regarding products under the 24% plus benefit loan products? A: Haisheng Wu, CEO, noted that the new rules are seen as positive for the industry, promoting fair competition and benefiting companies with strong technology capabilities. The ICE business, positioned as a referral service, is expected to remain healthy. The company has prepared alternative plans to ensure compliance and balance user experience with long-term sustainability.
Q: Could you provide more details on the overseas expansion, particularly in the UK? A: Haisheng Wu, CEO, explained that the company considers regulatory environment, openness to fintech innovation, and financial infrastructure when selecting target markets. In the UK, operations are still small, focusing on understanding the local market and refining risk models. The approach is cautious, with an emphasis on trial and error.
Q: What is the current progress of the share buyback, and are there plans to increase its scale? A: Zuoli Xu, CFO, reported that the company has executed RMB277 million of the RMB450 million buyback program. So far this year, 12.2 million ADS have been repurchased, reducing the share count by about 9%. The company remains committed to delivering industry-leading shareholder returns through sustainable growth and buyback programs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
