Hello ladies and gentlemen and thank you for standing by for Hexindai’s Fourth Quarter and Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. After management’s prepared remarks, there will be a question-and-answer session. As a reminder, today’s conference call is being recorded. I would like to turn the meeting over to your host for today’s call Miss Daisy Wang, Investor Relations Director. Please proceed, Daisy.

Thank you, operator. Hello investors, analysts and colleagues thank you for joining us today. Our earnings release was distributed earlier today and is available on our IR website at ir.hexindai.com.On the call today from Hexindai are Mr. Xiaobo An, Chairman and CEO, Miss Lili Hua, our Chief Operating Officer and Mr. Johnson Zhang, Chief Financial Officer. Miss Hua will review business operations and company highlights followed by Mr. Zhang, who will discuss financials. They will be available to answer your questions during the Q&A session that follows.Before we begin, I would like to remind you that this conference call may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, potential, continue, ongoing, targets, guidance and similar statements.The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, the SEC, in its annual report to shareholders. Press releases and other written materials and oral statements made by its officers, directors or employees to third parties.Any statements that are not based on historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.Such factors and risks include, but not limited to the following: the Company’s goals and strategies, its future business development, financial condition and results of operations, the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace’s products and services, its ability to attract and retain borrowers and investors on its marketplace, its relationships with its strategic cooperation partners, competition in its industry, and relevant government policies and regulations relating to the corporate structure, business and industry.Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this call is current as of the date of this call, and the Company does not undertake any obligation to update such information, except as required under law.With that, I will now turn the call over to our COO, Miss. Lili Hua. Miss Hua will read through her prepared remarks in Chinese. I will translate for her in English. Miss Hua, please go ahead.

[Foreign Language]The market environment continues to gradually improve as investor confidence returns, while the entire sector continues to face the liquidity crunch as smaller and weaker platforms dropped out of the market. We believe the worst is behind us. Our outlook has remarkably improved this quarter from the lows of the past three quarters, especially on a sequential basis.[Foreign Language]Total loans facilitated doubled sequentially to US$61.7 million during the quarter as the net revenue which increased to US$4.1 million. While our top line continues to be impacted by market turbulence, it is improving our cost structure and bottom line as we return our focus to new loan products as the markets reduce.Gross billing amounts net of VAT more than tripled sequentially to US$9 million with net income coming in US$2.8 million. The number of investors who invested for the first time on a marketplace during the quarter increased by 39% compared to last quarter.[Foreign Language]More importantly, our M3+Net Charge-Off Rates remained low and steady at 6% with most of the loans facilitated doing through our platform carrying a three year term, we hit our fourth anniversary of sorts with auto loans facilitated during the first vintage expiring this quarter.Our low default rate which was below the industry average reflects just how effective our cutting-edge risk management systems are.[Foreign Language]We continue to strengthen our individual investor day while diversifying our funding sources with the addition of financial institutions and Trust partners such as Bohai International Trust, Kunming Aotou and Phoenix Intelligent Credit Group, a wholly owned subsidiary of Phoenix Financial Group. This will help us develop additional growth drivers going forward.Our partnership with Phoenix Financial P2P platform has progressed well, growing our strategic investment last quarter. We expect total loan volumes for borrowers referred by us over the three-year partnership to…

Thank you, Miss Hua. Hello, everyone and thank you for attending [ph] our earnings conference call today. I’ll now review our financial performance during the quarter.Further details can be found in the earnings release in the company’s presentation. During the fourth quarter of fiscal year 2019, net revenue was US$4.1 million a decrease of 85% from the same period of last year. The decrease was primarily due to significant decrease in the volume of credit loans facilitated through our marketplace, which decreased to US$61.7 million or RMB416.3 million from US$418.4 million or RMB2.7 billion during the same quarter last year.On a sequential basis our performance is certainly improving as the market recovers and investor interest returns, with net revenue increasing by 117% [ph]. Operating cost and expenses was US$6.5 million, a decrease of 21.6% from the same period last year. The decrease was primarily due to decrease in sales and marketing expenses and service and development expenses. Operating costs and expenses decreased 29.8% sequentially.Sales and marketing expenses for US$1.7 million, a decrease of 15.5% from the same period last year, due partly to a decrease in advertising expenses associated with acquiring more customers.Service and development expenses were US$1.6 million, a decrease of 21.7% from the same period last year, primarily due to a decrease in custodian bank account management fees.Net income was US$2.8 million compared to net income of US$17 million during same period of last year. Net income attributable to company’s shareholder was US$2.8 million compared to a net income attributable to company’s shareholder of US$17 million in the same period of fiscal year 2018.Accordingly, basic EPS was US$0.06 compared to basic EPS of US$0.36 in the same period of fiscal year 2018. Diluted EPS was US$0.05, compared to diluted EPS of US$0.32 in the same period of fiscal…

Yes, sir. [Operator Instructions] Your first question comes from the line of Josh Vogel from Sidoti & Company. Please ask your questions.

Thank you. Hello everyone. I have four questions please. The first one is you have done a very good job managing costs in the past two quarters especially throughout an unstable market environment. I am curious that when business begins to build back to historical levels is it fair to assume we should expect to see sales and marketing expense claim first as you begin to advertise like we have promotional campaigns. And on the other side of that, is there additional leverage to mitigate costs in other areas?

Thank you, Josh. As I mentioned that our expenses and costs have already decreased during our [Indiscernible] decreased simultaneously. And our seamless recoveries, we are confident that our cost will be increased lower [ph] than our business volume increased and we still some space to leveraging with our operating.

Okay. Thank you. Looking at the microfinancing business today, can you discuss please what the average client profile looks like versus the traditional lending operations? And I know we are only a few months into you providing this service, but I'm curious when you look at the delinquency and charge-off rates are they typically higher for this type of loan or lower or the same? Thank you.

The typical demographic of microfinancing is younger generation comparing with our traditional medium size loans. And we are generating our strong fiscal management system and our good relationship with credit data providers in the market. We have confident to maintain delinquency rate at a considerable level. Because of the – we just started this kind of business, we still have a lot adequate statistic data of growth [ph] regarding to the new business delinquency rate and that can operate in the future.

Thank you. You've done a very impressive job increasing the gross billing ratio in the quarter. Can you please discuss the economics behind this improvement when we look at channel fees premiums to the finance guarantee companies, facilitation service fees? And I'm curious whether this is a new level that you think you can maintain?

Our gross billing ratio increased sequentially comparing to the last quarter -- in the quarter before last quarter we have done a lot of cash incentive to promote to our lender. But for the last quarter, I wonder more lenders have recovered their confident who invest our platform, in that way bill rate to the lender go back to the normal level. Our gross billing ratio go back to the normal level and we believe that this kind of gross billing ratio will continue in the new fiscal year.

Thank you. And last one please. I understand you were not providing any detailed guidance, but if you could share any directional comments for the first quarter and fiscal 2020 with regard to total loans facilitated in net revenue that would be helpful? Thank you.

The market segment is improving and we believe that the business and if you may have some volatility during the ongoing regulatory campaign. With this mind, we will temporarily suspend referring guidance starting this quarter. But internally we have our own quota of targeting them. Generally speaking, we have a good performance in the fiscal year 2018 and by the end of March 31, 2018, our internal target is our full volume and revenue is recover to the same level to the fiscal year 2018. But it is our internal target that can offer guidance to the capital market. Thank you.

Yes. Thank you very much for taking my questions.

Thank you, Josh.

[Operator Instructions] We have a follow-up question from the line of Josh Vogel from Sidoti & Company. Please ask your question.

Thank you. One more question if I may. With the -- as the U.S. and China continue to go back and forth in tariff negotiations, do you think that this ultimately becomes a tailwind or a headwind for lending activity?

We have no comments to the micro economic. And we have our commitment to the shareholder is to do good in our own business and operating well to our business than the regulatory in our segment.

Okay. I understand. Thank you again for taking my questions.

Thank you.

[Operator Instructions] There are no further questions at this time. I would like to hand the conference back to today’s presenters. Please continue.

Well, thank you, operator. In closing, on behalf of the entire Hexindai management team, we’d like to thank you for your interest and participation in today’s call. If you require any further information or have any interest in visiting us in China, please let us know. Thank you for joining us today. This concludes the call.

Ladies and gentlemen, that does conclude the conference for today. Thank you for participating. You may all disconnect.