Yuxuan Chen: [Foreign Language] Hello, management. Thanks for giving me this opportunity to ask questions. This is Yuxuan Chen with Huatai Securities. I got two questions. The first one is about your risk management strategy with a stable delinquency rate. Could you provide insight into your risk management strategies and their evolution in the [indiscernible] stability. Also, do you expect your risk profile to remain stable going to Q4 and 2024? The second one is about your expenses. We have observed a consistent reduction in operating expenses as a percentage of revenue over the past year. Is this because of your cost control, efficiency improvement or both? Can this trend be expected to continue in Q4 and 2024? Thanks.
Xu Yifang: [Foreign Language] [Interpreted] Hello, Mr. Chen. This is Xu Yifang and your first question will be answered by me. Okay. So you just mentioned the strategies and the stabilities and these are actually the goal and also the result of our risk management work. So we have some different approaches to that. The first will be, we will pay attention to the development trends of the market, especially the overall income to debt ratio of our borrower group and also the debt situation and also the willingness and activity of your credit application. So the second one is for our models and strategies and as the borrower group of us is growing so fast. It is very important for us to accelerate the monitoring process. So, and at the same time, we also need to updating and to update our models and strategies.
And the interrelation of them is also very important. So the third one is that we think the risk management works shall not only be on the decision stage, but to strengthen the management and operation of the entire life cycle of our borrower group from a risk perspective is also very important. And with that, we also can see that the risk indicators are getting better because of it. So after the loan facilitation process, we also need to differentiate the strategies to further enhance the experience of our high quality borrowers thereby to improve the retention and loyalty of them. And we can also see that those improvements also makes our risk indicators getting better. So for the goal of the fourth quarter of this year and the whole year of 2024, we are expecting to maintain and further optimize these risk management approaches.
And this will be really important for all of our team. And this will be some ideas of our risk management works and my answer for your question. Let’s see if you have other questions.
Fan Chunlin: [Foreign Language] [Interpreted] Okay. So your second question is about our expenses. I think from the first quarter to the third quarter of this year, the proportion of our G&A expenses, S&M expenses, and also R&D expenses in the revenue has continuously decreased. In the third quarter, the proportions of G&A expenses, R&D expenses, and S&M expenses in the revenue were reduced to 3.6%, 4.8%, and 27.8% respectively. And the main reasons are two-fold. Firstly, because the scale effect brought by the growth in facilitation volume and also revenue. And the fixed costs are relatively stable and the variable costs are getting more efficient. If you compare with other kind of expenses and their growth percentage is much lower than that of revenue growth.
And second reason would be the efficiency improvements both by the application of AI technology and also our refined smart operations. So in the short to medium term, in line with our strategy of high quality growth and smart operations, our proportion of G&A and S&M expenses will remain relatively stable. And we will also continue to increase investment in R&D and strongly enhance the application of AI technology in various business processes. And just as Mr. Yan just said, our company has been officially named as Jiayin Technology and we will continuously strengthen our technology attribute. Okay. Through the refined operation, we are very confident to make our non-profit margin to maintain above a relatively sustainable and healthy level.
And just as Mr. Yan just mentioned that our second dividend distribution plan is almost decided and we are very confident to give out more to our investors in the future.
Shawn Zhang: So Yuxuan hope those will answer your question.
Yuxuan Chen: [Foreign Language]
Yan Dinggui: Thank you.
Operator: We’ve reached the end of the call. I will return the call back to Shawn for closing remarks. Please go ahead.
Shawn Zhang: Okay. Thank you, operator, and thank you all for participating on today’s call, and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
