Ladies and gentlemen, thank you for standing by, and welcome to Yiren Digital Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Lydia Yu. Thank you. Please go ahead.

Thank you, and welcome to Yiren Digital's Third Quarter 2020 Earnings Conference Call. Today's call features the presentation by the Founder, Chairman and CEO of CreditEase and CEO of Yiren Digital, Mr. Ning Tang; CFO of Yiren Digital, Ms. Na Mei; and CRO of Yiren Digital, Mr. Michael Ji. Ms. Mei Zhou, Senior VP of Yiren Digital; and Mr. Dennis Cong, Director of Yiren Digital, will join the presenters in the Q&A session. Before beginning, we would like to remind you that discussions during this call contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties and factors that could cause actual results to differ materially from those contained in any such statements. Further information regarding potential risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. Yiren Digital does not undertake any obligation to update any forward-looking statements except as required under applicable law. During the call, we will be referring to several non-GAAP financial measures and supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about these non-GAAP measures and reconciliations to GAAP measures please refer to our earnings press release. I will now pass it on to Ning for opening remarks.

Hi, everyone. Thank you all for joining our third quarter 2020 earnings conference call today. We are very pleased to deliver a solid quarter, and we continue to make progress in our business transitions and strategic repositioning as we drive our online wealth management business into scale and ramp up our new creditech product offerings. We have achieved profitability and meaningful growth on both our wealth management and the creditech business lines. For our wealth management business, we are seeing promising growth momentum in wealth management products and services, and that the demand remains strong. As of end of September, total AUA of wealth management products increased by 71% quarter-over-quarter to RMB 4.3 billion, and the total sales volume of wealth management products increased by 110% quarter-over-quarter to RMB 4.6 billion. New investors of wealth management products on Yiren Wealth in this quarter stood over 58,200, representing a 255% growth compared to last quarter. More specifically, mutual fund products continue to enjoy strong popularity among customers with AUA reaching RMB 1.4 billion, up 34% from last quarter. The average AUA per investor for mutual funds stood at RMB 58,000, increasing by 15% from prior quarter. It's worth mentioning that our fund portfolio products see remarkable popularity among investors, which took more than 80% of the total fund sales volume this quarter and are becoming a strong driver of our wealth management business as we continue to make strong efforts into new product design sourcing. Meanwhile, our insurance business has grown rapidly, exceeding our expectations. As mentioned at our last call, we completed the acquisition of the insurance broker, Ocean, and as of September month end, sales volume and revenue of this segment have already exceeded our full year target and began to contribute meaningful income to our wealth management businesses…

Thanks, Ning. Hello, everyone. For financial update, I will focus on key items of our business operation and the financial performance. You can refer to the detailed financial results in our earnings release and IR deck that have been posted on our website. On wealth management, as of September 30, 2020, Yiren Wealth has served close to 2.3 million investors cumulatively, and around 174,000 investors currently hold an investments on our platform. As of September 30, 2020, total AUA for Yiren Wealth reached RMB 25.5 billion. But specifically, AUA for wealth management products, which excludes our legacy P2P loan, grew 71% from prior quarter to RMB 4.3 billion as of September 30, 2020. On the credit side, loan originations for the quarter was RMB 3.2 billion, representing an increase of 33% quarter-over-quarter. Secure out loan under [Foreign Language], our new smart revolving consumption loan product, continues to be the main driver of our loan volume growth. This quarter together is representing close to 17% of loan facilities. On funding, we have made significant progress in transition to a loan facilitation model by partnering with financial institutions. Nearly 98% of our loans were funded by financial institutions this quarter. And as Ning had previously mentioned, our loan facility in September were already 100% funded by financial institutions. Onto our financial. Total revenue was RMB 1 billion in the third quarter, representing an increase of 36% from previous quarter. In particular, other revenue has increased 68% from previous quarter to RMB 203 billion, mainly due to the ramp of wealth management products for the bank products, insurance and mutual funds. Sales and the marketing spend was RMB 485 million this quarter, representing 15.1% of loan volume as compared to 21.2% last quarter due to increased customer acquisition efficiencies and overall better cost…

Thank you, Na. Hello, everyone. On credit performance, we continue to execute a prudent risk management strategy, and the delinquency rates have shown a continuous improvement. 15 to 90 days delinquency has decreased to 4.4% as of September 30, 2020, from 5.5% as of June 30, 2020. This quarter, our team focused on the following actions: we completed the restructuring of our collection team and continued to drive new innovative collection projects, which are expected to result in a decline in NCL by over 15% as compared with our projection at the beginning of the year. We continued optimizing our acquisition risk management models. Particularly for our small loans and auto finance businesses by minimizing the fraudulent risk. In the fourth quarter and going into 2021, we will continue to practice our prudent risk management strategy and get ready to adjust and enhance as needed in light of the macroeconomic and the regulatory environment. I will conclude my prepared remarks here and give it to the operator. Operator, we are ready for the Q&A.

[Operator Instructions] It seems we don't have any questions from the line. Presenters, you may continue.

I think that we'll end our call today. Thank you.

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