Shawn Zhang: Okay. So, this is Shawn Zhang, and I will do the translation in English. So, thank you, Sam for your question. So, from the perspective of our performance in the financial indicators, Q4 is an excellent quarter with very nice profitability. And it is true that if you are looking into the margin, it is probably slightly higher than our peers. So, in Q4, our operating margin reached nearly 33% and for the full year of 2021, it is about 36.1%. And I think there will be two reasons for that. The first reason is that the scale effect generated by our rapid growth in the performance. And the second reason is probably because our fixed cost is stable, and our funding cost is stable. And at the same time, it is going down as well. At the same time, it is also a result of our refining operation, so.
Fan Chunlin:
Shawn Zhang: Okay. So, the net margin is slightly higher. It is true. So, our net margin of Q4 reached more than 50% which was higher than the operational margin, mainly because of the impact of some extraordinary reasons. For example, some of our core entities for our businesses just obtained the qualification of high-tech enterprises, which benefit us that our applicable income tax rate is now adjusted to 15%. And as you know that it is €“ which can be traced back to 2021. And that will be one reason of that.
Fan Chunlin:
Shawn Zhang: So, in the future we will further cut down the take rate of our platform and we will also increase our R&D investment and to improve our efficiency and maintain the overall operational margin at a healthy level.
Fan Chunlin:
Sam Lee: My second question is about the vintage curves. While the loan volume accelerated and grew significantly, you have managed to keep your risk performance at an industry-leading level. If your loan growth decelerates as you have forecasted, can we expect your vintage rates to improve even further in 2023? Thank you.
Xu Yifang: This is Yifang Xu. I am going to take on your questions. First of all, I will answer your question in English then will translate myself in Chinese. So, I €“ first of all, that I will continue to focus on improving our risk metrics throughout 2022 and forward, just as a €“ ESG and as a company focusing on the lending business, having a good control over our risk metrics and practice prudent risk management philosophy is intrinsic inside within our company’s philosophy and policy. However, I will not connect the growth rate and the loss rate in the way you presented. So, even we are €“ the growth rate has increased in 2023 from three-digit percentage growth rate to double-digit growth rate, we are still expecting a pretty significant growth from RMB55 billion to over RMB70 billion.
And as we continue to grow our platform by over RMB20 billion or almost RMB20 billion throughout the course of 2023, our chief focus of the risk path is going to be primarily focus in two fronts. One from the new customer acquisitions, so as we continue to practice constraints on a number of new customers and new loan originations as part of our portfolio in our total new originations, we also want to focus on choosing the right acquisition channel mix and the product offering. So, both the decisions on acquisition channel mix and the product offerings are solely based on focus to improve our overall customer credit risk profiles. Going forward, as we have started probably over a year ago, we want to focus on improving our customers quite risk profiles and we will continue to do so by choosing acquisition channels that gave us a broader and greater access to better customers.
