Hello, and welcome to the X Financial First Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would like to turn the conference over to Tanya Win. Please go ahead.

Thank you, Operator. Hello everyone, and thank you for joining us today. The company's results were released earlier today and are available on the company's IR Web site at ir.xiaoyinggroup.com. On the call today from X Financial are Mr. Simon Cheng, President; and Mr. Kevin Zhang, Chief Financial Officer. Mr. Cheng will give a brief overview of the company's business operations and highlights, followed by Mr. Zhang, who will go through the financials and the guidance. They are all available to answer your questions during the Q&A session. I remind you that this call may contain forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and the current market and operating conditions and related events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. For the information regarding this and other risks, uncertainties and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under law. It is now my pleasure to introduce Mr. Simon Cheng. Mr. Cheng, please go ahead.

Hello everyone. Despite the challenges created by the coronavirus disease, COVID-19, adversely impacting our operating environment, we made meaningful progress in expanding institutional funding for all new loan products originated on our platform during the quarter. Institutional funding accounted for 81.7% of the loans facilitated in the first quarter, an increase from 50.2% in the previous quarter. We rapidly built upon this with institutional funding, which is now accounting for 100% of loan facilitated throughout our platform. As of March 30, 2020, the total credit line provided by our institutional partners expanded to RMB50.6 billion, from RMB46.7 billion as of December 31, 2019. Given the current uncertainties in the market, this further proves our asset quality and risk management capabilities continue to be well recognized by our institutional partners, despite the impact from the pandemic. We remain in active negotiations with funding partners to further decrease our funding costs, and further expand our funding partners, which could bring down funding costs going forward. At present, we have ample funding resources to meet growing demand as consumer sentiment improves. We continue to adopt the strategic and disciplined approach to our risk management and have implemented stricter criteria when assessing borrowers because we believe it is even more important now for the sustainability of our business. [Technical difficulty] to strengthening our ability to generate stronger results when the market is expected to rebound during the second half of 2020. An adjustment period is therefore expected and is reflected in the lower number of active borrowers during the quarter. The number of active borrowers this quarter was 228,366. It is a decrease of 29.7% from 609,368 in the fourth quarter of 2019. Over the past few quarters, we continued to ramp up our technology-driven risk infrastructure and strengthened customer acquisition to successfully manage…

Thank you, Simon, and hello everybody. The first quarter 2020 was a challenged quarter. The total loan facilitation amount was RMB6,823 million, representing a decline compared with our previously announced guidance. We are taking decisive action to streamline expenses against weaker top-line but remain confident that demand for our highly-customized personal finance solutions will once again strengthen as the recovery from the pandemic unfolds. Our revenue and net income decreased both quarter-over-quarter and year-over-year even though the total number of loans facilitated of Xiaoying Term Loan in the first quarter decreased year-over-year, the average loan amount per transaction was RMB15,700, an increase of 37 from the same period of 2019, and an increase of 7.8% sequentially. The average consumption amount per user of Xiaoying Revolving Loan also increased 3.8% from the fourth quarter of 2019 to RMB8,600. We are also pleased to see total cumulative registered users on the platform reach to 43 million as of March 31, 2020, demonstrating the continued value that we are able to offer borrowers even during such challenging market conditions. The percentage of loan products we facilitated that were covered by ZhongAn Insurance decreased further to 67.7% during the quarter as we continue to reduce our insurance coverage rate to lower our customer borrowing costs. In its place, we have expanded our partnerships with additional third-party, high-quality financial guarantee companies to strengthen trust in the quality of our underlying assets and risk management systems. We are squarely focused on our mission to create more value for our customers and shareholders. After successfully adapting to the regulatory changes in 2019, we are now navigating the ongoing impact of the health crisis is having on the industry in 2020. While regulatory and the capital requirements continue to put pressure on the sustainability of the sector this…

Okay. Thank you everyone for joining us on the call today. If you haven't got a chance to raise your questions, we will be pleased to answer them through follow-up contacts. We look forward to speaking with you again in the near future. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.