Chunlin Fan: [translated from Chinese] Thank you, Yuxuan, for your question. For the fourth quarter of 2023, the net income was RMB 368 million, which is a slight increase compared to RMB 324 million in the third quarter of 2023. However, there was a 31% decrease if you compare to the RMB 534 million in the fourth quarter of 2022, and I think there are some main reasons. Firstly, the net margin in the fourth quarter of 2022 was exceptionally high, which is about 51%, so I think we have mentioned in the calls before that the primary reason was that several of our core operating entities obviously obtained the high tech enterprise qualification in the fourth quarter of 2022, which adjusted the applicable income tax rate to 15%, and it is retroactive to 2021, therefore we made a one-time financial adjustment for this tax benefit in the fourth quarter of 2022.
If you exclude this one-time adjustment and other non-recurring items, the net profit–the net income for the fourth quarter of 2022 would be much lower. In the detailed classification of our revenue for the fourth quarter of 2023, the proportion of guarantee income was higher than in the fourth quarter of 2022. The profit margin of this kind of business is lower than our facilitation and risk control services, so in the future, I think our listed company will continue to focus on the facilitation and risk control services and we will also reasonably control the balance of different business segments in our revenue proportions. Regarding the income statement figures, we are not going to provide any guidance today; but if you–but we have already given a range for our facilitation volume this year, which is RMB 93 billion to RMB 98 billion.
If you look at our net margin in certain quarters in the past, it has fluctuated due to some non-recurring items. Our net margins for the past three years, which is 2021 to 2023, were 26.3%, 36.1%, and 23.7% respectively. In the future, we will continue to operate steadily, maintain a stable take rate, increase investment in R&D, and improve operational efficiency to keep the overall margin at a very healthy level. If you compare with accounts receivables in the Q4 2023 to the Q4 2022, there is a difference, just as you said, but if you compare the balance at the end of the fourth quarter compared with the end of the third quarter, the balance was roughly flat and a little bit decreased. Our company’s balance sheet will continue to increase.
Thank you, Yuxuan for your questions.
Operator: Thank you. Seeing no more questions now, I would like to return the call to Shawn for closing remarks. Please go ahead.
Shawn Zhang: Okay, thank you Operator, and thank you all for participating on today’s call. Thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.
Operator: Thank you all again. This concludes the call. You may now disconnect. Thank you.
