Qfin Holdings (QFIN) Q2 2020 Earnings Call Transcript

Transcript

Operator (participant)

Good day, ladies and gentlemen. Welcome to the 360 Finance Second Quarter 2020 Earnings Conference Call. Please also note today's event is being recorded. At this time, I would like to turn the conference call over to Ms. Mandy Dong, IR Director. Please go ahead, Mandy.

Mandy Dong (IR Director)

Thank you, Hsin. Hello everyone, and welcome to our Second Quarter 2020 Earnings Conference Call. Our results were issued earlier today on the IR website. Joining me today are Mr. Haisheng Wu, our CEO and Director; Mr. Alex Xu, our CFO; and Mr. Yan Zheng, our CRO. Before we begin the prepared remarks, I'd like to remind you of the Company's safe harbor statement. Except for historical information, the material discussed here may contain forward-looking statements. These statements are based on our current plan, estimates, and projections. Therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risk and uncertainty. We caution that a number of important factors could cause actual results to differ materially from those contained in forward-looking statements. For more information about potential risk and uncertainty, please refer to the Company's filings with the SEC. Also, this call includes discussion of certain non-GAAP measures.

Alex Xu (CFO)

Please refer to our earnings release for reconciliation of the Non-GAAP measures to the most directly comparable GAAP ones. Last, unless otherwise stated, all figures mentioned are in RMB. I will now turn the call over to our CEO, Mr. Haisheng Wu.

Haisheng Wu (CEO)

[Foreign Language] Thank you, Mandy. 各位晚上好。我非常自豪地和大家分享我们在二季度取得的成绩。二季度依然是一个宏观上充满挑战的季度，但是我们在很多方面都取得了公司有史以来最好的记录。Q2单季度的放款量达到589亿，同比增长21.8%。债贷余额由上季度的741亿增长至785亿。财务方面，Q2的总收入达到33.4亿人民币，非美国准则净利润达到9.4亿人民币，都是上市以来表现最为突出的一个季度。

Alex Xu (CFO)

Hello everyone. I'm very proud to report strong financial and operating results for the second quarter. While the macro environment remained challenging, we still set a number of records in key operational metrics. Total loan origination reached RMB 58.9 billion during the quarter, up 21.8% year-on-year. Outstanding loan balance increased to RMB 78.5 billion from RMB 74.1 billion a quarter ago. For the second quarter, total revenue reached RMB 3.34 billion, and non-GAAP net income reached RMB 942 million. This is the most outstanding quarterly result since our IPO.

[Foreign Language] 在疫情影响还存在的宏观背景下，能取得这样的表现，说明我们坚持的稳健经营的策略是有效的。我们的客群和风控系统有非常强的韧性。我们长期积累下来的结构化优势，让我们在穿越P2P爆雷、监管风暴和新冠疫情这些行业风暴的时候，屡次得到证明。国内经济超预期恢复，我们目前的业务数据依然是持续向好，这让我们对未来充满信心。 Our solid performance under the still uncertain macro backdrop further demonstrates the effectiveness of our prudent operational strategy, as well as the resilience of our customer base and our risk management system. We believe we have built a structural advantage over our peers, which enables us to successfully navigate through previous market uncertainties such as the P2P crackdown, the regulatory changes, and the pandemic.

In each of those cases, we further strengthened our leadership position. With the macro economy recovered, we see continued improvement in our operational metrics, and we feel confident in our future prospects. [Foreign Language] 我们这个季度的 take rate 取得了很大的提升。这是因为我们在风险、资金、获客等方面进一步进行精细化管理，大大提高了公司的效率。本季度我们的平均净价 IRR 口径大约在 27.2%，如果折算成 APR 口径大约在 15%-16% 之间左右。我们的风险损失显著低于行业水平。风险先行指标 day one 入催率在二季度末下降至 6.2%，比疫情前的 6.5% 更好。我们的资金成本进一步降低至 7.2%，相比于 Q1 的 7.7% 也是明显低于行业水平。上半年我们发行 RMB 1.1 billion 的 ABS，位列第四，在蚂蚁、京东和小米之后。本季度我们的获客数量新增 1.6 million，比一季度多获客 200,000。获客成本 RMB 167，比一季度微增。另外，由于市场逐渐向头部集中，场景方接入分期服务的时候，越来越多的优先接入我们。我们已经与小米、美团、爱奇艺等 11 家头部的互联网公司发生合作。另外还有京东、滴滴、五八、微博等很多家公司在排队接入中。 Our take rate for the quarter improved noticeably, driven by our continued efforts to boost operational efficiency and to refine our risk management system, funding structure, and customer acquisition channels. Average pricing during the quarter was 27.2% on IRR basis, which is equivalent to 15%-16% on the APR basis. Day one delinquency decreased to 6.2% at the end of Q2. This was even better than the pre-pandemic level of 6.5%.

Moreover, our funding cost further decreased to 7.2% from 7.7% in the prior quarter, well below the peer average. In the first half of 2020, we issued a total of RMB 1.1 billion ABSs and ranked number 4 behind Ant Financial, JD, and Xiaomi in terms of total issuance size. We acquired 1.6 million new customers with approved credit lines in the second quarter, which is 200,000 more than in Q1. The average acquisition cost for those new customers was about RMB 167, modestly higher than in Q1. As the market gradually consolidates toward leading platforms, we have increasingly become the preferred fintech partner for many consumer-focused internet companies. So far, we have connected our service with 11 partners, including Xiaomi, Meituan, iQIYI, and many others, including JD, DiDi, 58.com, and Weibo are in the pipeline.

[Foreign Language] 我们做的几个创新项目，这个季度也取得了超预期的成绩。我们的信用支付产品微零花截止季度末日均交易达到 5,000 万，每天交易笔数超过 45 万笔，累计开卡用户 245 万，和我们用户发生交易的商户数有超过 200 万家。另外，我们开发了一款叫智信引擎的产品，用来激活我们数量众多的睡眠用户。这个产品为我们带来日均 2,000 万元的新增交易。我们预计这些产品的良好增长的态势将会持续，极大地增加了我们的用户粘性和活跃度。 Our new product initiatives also tracked very well in Q2. Daily transaction volume of our virtual credit card products V-Pocket reached RMB 15 million at the end of the second quarter, connecting 2.5 million accumulated users with about 2 million merchants and processing 450,000 daily transactions. Intelligent Credit Engine, which connects institutions with our vast inactive user base, adds another RMB 20 million daily transaction volume to our platform. We expect the momentum to continue and gradually enhance the stickiness and activity level of our user base.

[Foreign Language] 我们在向金融科技战略升级的道路上取得了更多的进步。从放款额的角度，capital-light 模式以及其他科技输出模式的交易占比提升至 26.9%。我们会继续大力提升这个比例，目标年底达到 35%-40%。我们同时也会尝试更多的金融科技模式。我们把我们的风控能力标准化成一些产品输出给机构们。我们已经与 6 家机构开始了实质合作，现在排队接入的机构也超过 20 家。我们将继续在科技方面进行长期投入，提高竞争壁垒。我们累计因为我们的科技能力产生的平台收入已经接近 50%。所以我们正式向董事会和股东会发起提议，变更公司的名称为 360 数科，以更好地反映我们的现状和长期战略。 We made further progress in strategically upgrading to a technology-powered digital platform. During the quarter, capital-light model and other tech-powered solutions account for over 26.9% of total loan origination, and we remain committed to increase the capital-light contribution to 35%-40% exiting this year.

Haisheng Wu (CEO)

In addition to capital-light model, we are also working on standardizing our risk management capability into SaaS modules and offering them to financial institutions. As of now, six institutions have already used this service, and 20 more are in the pipeline. In the long run, we will continue to invest more in our fintech capabilities and further strengthen our competitive advantage. By our calculation, tech-enabled revenues and platform service revenues are already nearly 50% of our total revenue. Recently, we have proposed to our board and directors and shareholders to change our name to 360 DigiTech, which will better reflect our current business dynamics and long-term strategies. 大家应该也关注到了最高法Management民间借贷司法保护定价下调的消息。由于准备得很充分，我们在消息发布后第一时间就组织投资者会议进行了沟通。虽然市场普遍认为这个规定是针对民间借贷的，但是我们也做好了金融监管部门会参考这个新规来管理的充分的准备。另外，大多数的市场参与者认为新规中的利率上限是按照 APR 口径设定的。以一年期为例，15.4% 的 APR 对应的是 27.3% 的 IR 利率，这就跟我们今天的平均费率是差不多的。所以对我们的影响是基本可控。我们之前也对某些客群做过一些降价的测试。我们也发现通过有针对性的降价，可能会在客户的活跃度和忠诚度上有所提高，从而会带来更高的客户生命周期价值。另外，我们也认为利率下行是监管趋势。我们也主观上其实希望是通过逐步的降低定价，以服务更多的用户人群。另外，我们的关联公司360也花费了一个巨大的代价去获取一张银行牌照，成为第一大股东。这件事情会为我们结构化的降低公司的资金成本，进一步的向我们的科技平台去升级，提供了非常强的一个抓手. Last week, the Supreme People's Court of PRC announced a new guideline to reduce court-protected interest rate cap for private lending. We have anticipated and prepared for this prior to the release.

Alex Xu (CFO)

Shortly after the official announcement of the guideline, we held a conference call to communicate our point of view with the capital market. While it is generally believed that the new guideline is only applicable to private lending, we are prepared for the possibility that financial regulators may refer to this guideline as well. In addition, it is widely believed that the 15.4% interest rate cap referred in the guideline is the nominal APR basis, which is equivalent to roughly 27.3% on an IRR basis. This is more or less in line with our current average pricing. As a result, we expect this impact to our operations to be manageable. Recently, we tested some experimental pricing structure with certain group users, essentially offering loans to them at a lower rate than they otherwise would get.

The result indicates that a carefully managed pricing discount could potentially lead to a higher customer LTV to the company, as users may become more active and sticky. In the intermediate term, we believe that the regulators will likely encourage a gradual downward trend in the interest rate and is consistent with our long-term strategy of serving a much broader user base at a relatively lower price. In early May, our affiliate company 360 Group has committed significant resources in becoming the controlling shareholder of a national bank, KCB. This will provide strong and vital support for us to further reduce funding costs, diversify product offering, and strategically upgrade to a technology-powered digital platform.[Foreign Language] 最后给大家介绍一下我们的新任CFO徐作立先生。他以前是三六零在美国上市公司的CFO，这里的很多人估计都会认识。我们的前CFO吴江现在任公司的CSO。吴江在任CFO期间帮助公司建立了非常严谨的财务管理体系，也帮助公司树立了一个非常良好的资本市场形象。所以非常感谢他的付出。下面请徐先生来跟大家分享一下我们一些更具体的事情。Finally, let me introduce our newly appointed CFO, Mr. Alex Xu. He was the CFO of Qihoo 360 when it was listed in the US.

Many of you may have already known him. Our former CFO, Jiang Wu, has been appointed as our CSO. I would like to thank Jiang Wu for his great efforts in building up a prudent internal financial system and presenting our company in the capital market well. Now, I will pass the floor to Alex Xu to dive into the details of financial performance.

Thank you, Haisheng. Good evening and good morning, everyone. Welcome to our quarterly earnings call. For the interest of time, I will not go over all the financial line items on the call. Please refer to our earnings release for those details. Q2 marked a sharp rebound for our business momentum from Q1. As the concerns over COVID-19 gradually faded, the country entered recovery mode, and economic activities gradually picked up during the quarter.

Benefiting from such macro trends, we have experienced robust rebound in our operations, particularly in the second half of the quarter. Total net revenue for Q2 reached RMB 3.34 billion versus RMB 3.18 billion in Q1 and RMB 2.23 billion a year ago. The year-over-year comparison is somewhat distorted by the accounting standard change early this year. Total operating expenses, excluding the provisions, increased 12% Q-o-Q but decreased 27% year-over-year. The sequential increase was in part driven by our deployment of resources to support business growth in the quarter. In particular, we further strengthened our collection operations and on-the-ground customer acquisition team. The year-over-year decline reflects significant improvement in customer acquisition costs. Non-GAAP net income was RMB 942 million versus RMB 255 million in Q1 and RMB 692 million a year ago. Once again, the year-over-year comparison was impacted by the accounting standard change.

On an apples-to-apples comparison basis, under the old accounting standard, Non-GAAP net income would have been approximately RMB 1.3 billion, representing an approximately 87% year-over-year increase. With a growing contribution from capital-light model and a sizable increase in shareholders' equity, leverage ratio declined meaningfully to 8.3x in Q2 compared to 9.5x in Q1. Again, leverage ratio was also impacted by accounting standard change. Under the old standard, leverage ratio in Q2 would have been 6.3x versus 9.8x a year ago. While leverage ratio may vary from quarter to quarter, we expect to see overall downward trend going forward as capital-light model continues to grow and we continue to create shareholders' equity. Meanwhile, our provision coverage ratio remained at a healthy 3.2x in Q2 compared to 4.0x in Q1.

The sequential decrease in provision coverage ratio was mainly because loans originated in previous quarters performed better than expected, and the provision for those loans was lowered by approximately RMB 300 million in Q2. For risk-bearing loans originating in Q2, we took a similar conservative approach to Q1 to estimate the potential losses and the provisions for contingent liability. Free cash reached a record high of RMB 1.8 billion in Q2. This was largely driven by strong operating results and effective management of working capital. Total cash and cash equivalents were RMB 7.4 billion at the end of Q2. The majority of our cash was allocated to security deposits with our financial institutional partners and also the registered capital of different entities to support our daily operation. We also leave a sizable buffer for any market uncertainties in the cash reserve.

We believe that such a sufficient cash position will not only enable us to compete in an ever-changing market but also position us to capture potential growth opportunities in the market recovery. Finally, let me give you some color about our outlook for the third quarter and the full year. The strong positive momentum we experienced in the second half of Q2 has continued into the current quarter, both in demand and asset quality. However, with the global pandemic still lingering and the impact of the recent regulatory change still somewhat unclear, we will continue to take a prudent and conservative approach in our business planning. Therefore, we would like to maintain our full-year loan origination guidance of RMB 200 billion-RMB 220 billion. With that, I would like to conclude our prepared remarks. Operator, we can now take some questions.

Operator (participant)

Thank you very much. We will now move on to the Q&A session. For those who could speak in Mandarin, please kindly ask your question in Mandarin first, followed by your English translation. Thank you. In order to have enough time to address everyone on this call, please keep your question to one main question and one follow-up question. If you have more questions, please return to the queue. Now, if you would like to ask a question, please press 01 on your telephone. If you are using a speakerphone, please make sure your mute function is turned off when you ask the question. If you find your question is answered before your turn to speak, you can press 02 to cancel your question. Once again, please press 014 on your telephone to ask a question. We have the question for Ms. Daphne Poon from Citi. The floor is yours, Ms. Daphne.

Daphne Poon (Analyst)

好，Management团队好。我这边主要两个问题吧。就第一个问题，Management我们贷款定价的一个趋势，就是刚才也提到，就是说大家就我们预期这个长期的贷款利率还是往下走的，然后可能最新的这个高院的新规可能会加快这个贷款利率往下走的一个趋势。所以就想了解一下，就是我们有没有大概预期我们这边的一个 APR 可能就是未来几个季度或者一两年的时间大概会下降多少，就这个幅度。然后还有就是想问一下，就是我们有没有做过一个 stress test，就是说大概我们的一个 break-even 的这个贷款定价会在什么水平。然后第二个问题是Management刚才提到的这个智能风控，就是 Intelligent Credit Engine 的这个东西，就是刚才提到是可以用来激活用户，就是能不能多讲一下，就是Management这个可能跟你们现在就是 capital-light 的那个模式有什么差别，然后包括这边的一个贷款的一些 features，比如说定价期限，ticket size 这些。So I will translate the questions. So mainly two questions. The first question is regarding your loan pricing. Just want to get a sense from the management how, given the latest regulation coming out from the Supreme Court, how fast and how much you expect your APR to come down, say, in the coming few quarters or next one to two years' time, and also whether you have done any stress test about what your break-even interest rate would be. And the second question is about the Intelligent Credit Engine that you mentioned earlier. You mentioned it's for activating some of your existing users.

Alex Xu (CFO)

So can you elaborate more in terms of the product features such as long-term pricing, take rate, etc., and how does that differ from your current capital-light model? Thank you.

Haisheng Wu (CEO)

[Foreign Language ]谢谢张女士。第一个Management那个利率趋势的问题。对，我们很早其实就已经从监管层面已经认为这个趋势会发生。实际上我们主观意愿上其实也是想把这个价格去往下做，因为利率越低，这个客群的规模越大。所以我们公司当然是想去服务更多的客群。这是第一。Okay. In terms of the trend of interest rate or the pricing, actually quite a while ago, we already determined that the overall interest rate trend will gradually trend down, both from our understanding with the regulatory environment and also from actually internal assessment. We believe that with a gradually lowered interest rate or pricing, we can reach a broader base, a much broader user base, and to basically increase the overall size of a business in the long run.然后从条件上来讲，我们其实具备很好的这个降低利率的条件。我们的 take rate 今天是非常高的，我们的运营效率也很高。所以我们的条件很好。另外就是我们自己通过这个对银行牌照的利用，我们会结构化地解决公司的低成本资金的问题。所以我们有可能会在有可能会在我们的这个成本方面会得到进一步的降低。所以我们具备很好的降价的条件.And also we look at our current structure in terms of take rate.

Alex Xu (CFO)

I think we have a pretty reasonably good take rate of our current operation, which means that there's plenty of room to maneuver in the new interest environment. And also our overall operational efficiency probably among the best among our peers. That again gives us room to kind of profit or getting growth in the new interest environment. And then with the KCB joined as our partner, we have a further advantage in terms of low-cost funding, and that also will help us dealing with a relatively lower pricing environment. 然后因为定额的问题请那个 Alex 帮我说一下。

So yes, we propose to change our name from 360 Finance to 360 DigiTech because if you look at the history of the company, the founding team of the company, as you know, is coming from 360 Group, which by itself is more a tech-based team. Our resources, at least in the initial funding, the resources and the capabilities are all coming from the technology side. We just apply those resources and technologies to the financial service industry there. In the short term, we still have a lot of things we can do for the financial service segment of the market. For example, the customers we're serving today are more or less focused on the mid to higher end in terms of interest range.

Alex Xu (CFO)

Down the road, we are looking for a much broader user base to cover the lower end or mid to lower end, the interest rate. In particular, with the help of the KCB, that will enable us to reach that goal. So eventually, we'll find ourselves build a, whether you call it a Tech Fin or Fintech platform, it's a very unique one compared to most of others because we become probably one of the only can serve a broader, I would say, full range of the interest range of a customer base down the road.[Foreign Language] 对。另外一方面就是从机构的角度，刚才是从客群角度。另外从机构角度，我们今天服务了近百家的机构，我们也有很多这种产品方。这些机构我们其实可以发生更多的业务的协同。我们已经把这些能力标准化成各种项目去输出给这些机构。那未来我想我们可以跟这近百家机构在除了助贷业务之外，会发生越来越多的基于科技能力的、基于风控营销贷后各种能力的一种服务。那这种确实像你说的，有些像平安的金融壹账通。所以短期来看的话，我们有可能会是一家类似蚂蚁借呗和加金融一站通的这样的一个公司。但是较长时间，如果把时间放得更长一点的话，我们可能给用户提供的不只是借贷服务，那有可能是在借贷以外的保险或者是别的服务。所以的话，它可能就不只是蚂蚁借呗加金融一站通，它可能是我们去追求一家类似蚂蚁的一个综合金融服务. Sure. And then also, Steven, from the institutional side, as you know, right now we already have the relationship with over 100 financial institutions. Many of those institutions have the different sort of service scenarios that we can work on.

To develop in the future, to develop more like a standardized product to achieve our sort of a tech enabling capability there. And in the long run, we can help those institutions from both technology and risk management and customer acquisition front to serve them to become really a major tech platform for those players. From that perspective, we probably, to your question, looks a little bit similar to OneConnect there. But at the same time, we also have this loan facilitation business there and also the lending business. That to some degree looks like a combination of Ant Financial, Jiebei plus OneConnect. And further beyond that, as you know, one of our affiliates got the insurance kind of a broker license. That can be in the future become part of our kind of listing company's portfolio.

So we can expand that business into beyond the current lending plus tech service, adding additional elements in there. 谢谢。Thank you. Thank you very much. In the essence of time, we will like to have the next last question from Mr. Ethan Wang from CLSA. The floor is yours, Mr. Ethan. 谢谢Management。给我这个最后提问的机会。我这个问题Management获客渠道这边，想请教一下Management咱们现在获客渠道的大概一个分布的比例是怎么样的，特别是跟疫情前相比有没有一个显著的变化。因为我们现在是更加做老的客户，更加多的做老的客户。另外就想请教一下微零花这边能不能给我们一些更多的数字，就是它的增长情况。谢谢。My question is on customer acquisition channel. Just wondering what is the split of the customer acquisition channel now compared to pre-pandemic. And I hope management can share some more data on the V credit product so we can understand more about its growth. Thank you.

[Foreign Language]对，Management获客。我们过去的比较长的时间里面还是把风险放在第一位去考虑问题。所以新客的规模相比来讲，做的比过去要略少一些。当然我们的成本也是得到了一个非常好的控制。在目前的获客量级和成本结构下，我们的获客压力是非常小的。也就是说我们还有很多的获客空间。那在过去的时间里面，我们一方面是通过更加精准的技术去降低我们的获客成本。另外我们也创新了很多的这种多元化的获客方式，比如说像您提到的微零花。比如我们也现在大量的去跟各种互联网公司去接入他们的场景。我们也尝试着用这种地面线下团队的这种方式来获客。应该讲都取得了非常好的成绩。Okay. In terms of the customer acquisition, given the current market uncertainty, still lingering uncertainty in the market, our customer acquisition strategy will more focus on the existing old users, you can call that, as opposed to the new users.

That basically gives us a pretty good handle in terms of control of the customer acquisition cost. In addition to focus on the existing users, we also take some approach in technology as well as in the way or the format we require users to control the customer acquisition cost. For example, we have the partnership with the one we mentioned, like the Xiaomi, Meituan, those kind of internet platform that will connect to our service, and we get a certain type of revenue sharing model with them to do the customer acquisition. That also helps us to enhance our overall user acquisition cost there.

There's still, given our current focus on existing user, meaning there's still quite a bit of room for us to acquire new users down the road when we feel the overall market condition is right, and we will basically adjust our strategy with the time. [Foreign Language] 我想重点讲一下其中的一个场景获客的渠道。因为去年的话，我们这个方法可能占比还是比较低的个位数。那现在来看的话，它这个渠道占比已经可能突破20%。这个代表了一种趋势，也是跟现在的行业背景有关系。过去我们的发现大的这些流量的场景平台，它在寻找分期服务或者是做金融变现的时候，它的选择很多。它可以跟很多公司去合作。那现在一是这些公司逐渐退出这个市场，因为门槛越来越高。第二就是我们的产品和用户体验在市场上逐渐的得到了非常好的认可。因为从用户投诉的角度来看，以我们这么大的体量，我们的投诉量在各大投诉平台排名非常非常的靠后。也就是说我们的用户体验控制得非常好。而这些场景方去接入的时候，它会一方面考虑商业收入，另外会考虑用户体验。所以现在可以看到很明显的趋势是，我们今天在去接这些场景机构的时候，受欢迎程度越来越高。现在我们大量的开发人员都在排队接入这些公司的流量. I want to spend some time emphasizing on this new customer acquisition strategy in terms of partnership with the so-called internet platforms out there. In the past, they had many partners they can choose from, meaning the other fintech platforms. But as the time goes, they realize both from the asset quality as well as the customer service perspective. In particular, the customer complaints ratio and all these metrics, we are way ahead of our peers. We essentially become the default or the best partner for those so-called internet platforms there.

[Foreign Language]That's why since recently we start to accelerate the connecting with our service with these internet partners there. As we mentioned in the preparatory remarks, we had connected 11 in total already, and then there's still quite a bit of numbers out there in the pipeline. Right now, the total customer acquisition from these kind of partnerships already accounts for about 20% of our total new customer acquisition. 最后我还可以补充一下我们如何利用银行牌照来获取更多的客群。因为银行的特点是它的品牌比较好，它的资金成本很低，所以允许我们第一就是经营一款自营的低定价的产品，可以直接从市场上靠口碑和它的服务去获取用户。另外就是说因为这种银行的品牌让我们可以更多的去接入更广泛的这种流量场景，所以它会打开一个更多的获客的渠道。所以这个牌照会有利于帮助我们去实现我们去服务全客群经营的一个战略目标。所以我们还是致力于成为一家市场上唯一一个在合法合规的条件内去全客群经营的一家公司. Secondly, I want to also refer to our relationship or our potential partnership with the bank, with KCB, because relatively speaking, the banks have better branding or brand recognition or brand quality as well as low-cost capital there. So we can design, by partnering with KCB, we can design a lot of different kind of low-priced products offered to our customers.

And also with the bank joined our efforts, we can connect this kind of platform with more scenario-based situations there and eventually cover a much broader user base in terms of the different interest range or different pricing range. That's again back to our goal. Eventually, we want to serve a much broader, I would say, full-range interest range customer base from low to high down the road. 谢谢. Hold on.

Operator (participant)

Thank you very much. So ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Thank you very much.

Qfin Holdings - Q2 2020

Transcript

Operator (participant)

Mandy Dong (IR Director)

Alex Xu (CFO)

Haisheng Wu (CEO)

Alex Xu (CFO)

Haisheng Wu (CEO)

Alex Xu (CFO)

Operator (participant)

Daphne Poon (Analyst)

Alex Xu (CFO)

Haisheng Wu (CEO)

Alex Xu (CFO)

Haisheng Wu (CEO)

Alex Xu (CFO)

Daphne Poon (Analyst)

Operator (participant)

Alex Xu (CFO)

Jacky Zuo (Analyst)

Alex Xu (CFO)

Haisheng Wu (CEO)

Alex Xu (CFO)

Jacky Zuo (Analyst)

Haisheng Wu (CEO)

Jacky Zuo (Analyst)

Operator (participant)

Steven Chan (Equity Research Analyst)

Alex Xu (CFO)

Steven Chan (Equity Research Analyst)

Alex Xu (CFO)

Haisheng Wu (CEO)

Alex Xu (CFO)

Operator (participant)