Jimmy Tan: Yes, let me do the translation for the second question. The macro environment of Indonesia and the Philippines is much more robust when compared to our China markets. And all these positive macro environment factors actually support our rapid development in these countries. You can see that our transaction volume during the third quarter was about CNY 2.21 billion, while our outstanding loan balance was about CNY 1.29 billion. Outstanding balance was up 102% year-over-year and transaction volume was up 99% year-over-year. And the number of new borrowers also reached a record high of 423,000, up 27% year-over-year and 36% quarter-over-quarter. Please also note that this is the first time where the number of international new borrowers exceed the number of new borrowers in China.
We still think that there is a huge market potential. In the Indonesia market, there are over 100 P2P players, and we are currently ranked number three in terms of outstanding loan balance with a market share of around 6%. Let me briefly touch on the Philippines market. We believe Philippines has very strong growth potential and the transaction volume for this year is expected to grow around 3x. And Indonesia, I forgot to mention just now that Indonesia household debt ratio is — and it’s way below those of the developed countries, and there’s a lot of potential. Regarding profitability, we are in the stage of rapid development with healthy LTV. And our main priority now is grow rapidly and increase market share. Increasing the market share is of a much more important priority for us now.
Profit is being affected by many factors such as our continued investment in customer acquisitions and the time difference created by accounting principles. We believe that as long as we are able to maintain healthy development, profits will be a natural result of our operations.
Operator: [Operator Instructions] Next question will be from Cindy Wang of China Renaissance.
Cindy Wang: [Foreign Language] I have two questions. First question is related to Indonesia. So as one of your competitors has been restricted buy now pay later services in Indonesia. So any opportunity to further gain market shares from here? And do you have any color in terms of like mid to long term for the Indonesia business strategy and the new loan facilitation outlook? The second question is regarding to marketing expenses. As we see the marketing expenses update sequentially. What’s the reasoning behind it? And also, can you break down the domestic and international customer acquisition cost? How do you expect the customer acquisition costs going forward?
Unidentified Company Representative: [Foreign Language]
Jimmy Tan: Hello, Cindy, let me translate the question. Okay. Indonesia right — have huge opportunities to grow from multiple different aspects. As regulation tighten the players will be affected, but we believe the market will consolidate with — to the better quality players. From the Company perspective, right — sorry, I was saying that the entry barrier will also increase when regulations tighten. For example, the registered capital for [new] players increased to [IDR 25 billion] from just [IDR 1 billion], and we can share what we are currently doing. Apart from online information feeds, we are also doing offline customer acquisitions, multiproduct, installment loans, electronics, installments and buy now pay later, coupled with multiple scenarios such as mobile phone, electric bike, home electronics and furnitures to read the borrowers.
Indonesia has this trend of young population — of large young population and they tend to change mobile phones whenever there’s a new release thus we have also begun our operation with Oppo, a well-known mobile phone manufacturer to provide such services for them.
Unidentified Company Representative: [Foreign Language]
Jimmy Tan: Hello, Cindy. Let me do the translation. For S&M cost, right, about 70% of them are for China, while about 20% to 30% is for the international markets. From the CPS perspective in Q3, the China market optimized about — the overall CPS optimized about 6%, while China market optimized about 7%. International CPS maintained stable. Going forward, depending on the macro environment and the Company-owned strategy, we believe our sales and marketing costs will remain stable, and we true — the Company’s strategies of upgrading the models on customer acquisition and all those, we believe all these will — all these costs will be further optimized.
Operator: There are no further questions. We’ll conclude our question-and-answer session now and turn the call back over to management for closing remarks. Thank you.
Jimmy Tan: Thank you all for joining the call. If you have any other further questions, please reach out to FinVolution Investor Relations team. Thank you all.
Operator: Conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
