Lianlian DigiTech Co., Ltd. (2598.HK) Earnings Call Transcript

Distinguished investors and analyst friends, good morning. Welcome, everyone, to attend the Lianlian DigiTech Co., Ltd. 2025 Business Results Announcement. I am Xu Yedan, the Board Secretary and also the host of today's meeting. Thank you for taking your time to join us to results announcement. Today, we have 3 parts. First of all, the company's CEO, Mr. Xin Jie, will review the company's business performance in the first half of the year. Then CFO, Ms. Wei Ping, will provide a detailed analysis of our financial data. Finally, there will be a Q&A section. Now I'll give the floor to Mr. Xin.

Thank you very much, Yedan. Respected investors and analyst friends. Hello, everyone. I am CEO of the company, Xin Jie. Thank you all for attending Lianlian DigiTech 2025 Interim Results announcement. I'm very pleased to have the opportunity to talk to you. In the first half of 2025, leveraging our steadfast global strategic layout, we delivered a satisfactory performance with all the business growth engines accelerating comprehensively. The company's total payment volume, TPV for digital payments exceeded RMB 2 trillion, a year-on-year increase of 32%. Notably, the global payment TPV achieved a leap of 94% of the growth. The company's total revenue for the first year reached RMB 780 million, a year-on-year increase of 26.8%, setting a new historical record. The strong performance of the first half of the year clearly demonstrates the effective execution of the 2 major strategies. First of all, in terms of strategic layout, we continue to deepen globalization, aimed a higher global trade environment. We remain first and firmly committed to supporting the globalization of Chinese products and production capability, achieving significant results. Second, in terms of the core capability, we adhere to a compliance-first approach driven by technology innovation and product development. Sustained investment in these critical areas significantly enhance our service capabilities and customer loyalty, laying a very solid foundation for the overall growth. Simultaneously, leveraging our compliance advantages, we actively promoted the internal external linkage synergy mechanism. All 3 business segments, global payments, domestic payments and value-added services achieved high growth over 20%. This was primarily driven by the 65 globally recognized payment licenses and qualifications, a robust compliance and risk control framework and over 2 decades of deep experience servicing global SMEs and trade customers. Additionally, on the 21st of August, the company announced that it had obtained a type 3 license issued by the Hong Kong SFC and further enriches our capability to serve customers' diverse needs in managing cross-border multicurrency trade and fund flows. By business segment, in the first half of the year, the global payments maintained -- sustained a very rapid growth with TPV reaching RMB 198.5 billion, a year-on-year increase of 94%. Revenue reached RMB 470 million, a year-on-year increase of 27%. In terms of the payment infrastructure, we comprehensively upgraded the payment system and successfully built an all encompassing highly efficient and broadly covered payment system. This service system ensures safety and ensure fund settlement while providing customer solutions tailored to the diverse needs of enterprises across different industries and scales. In terms of market expansion, while deepening our presence in the core markets such as Europe and the U.S., we accelerated our layout in emerging regions, including South Asia, Southeast Asia, Middle East and Latin America, leveraging multiple local licenses, and we established offices and build local team in various locations, promoting a deep integration of local payment system with the merchant business ecosystems. At the end of the period, the cumulative number of customers served by the global payment services exceeded 7.9 million. At the industrial innovation level, we deeply participated in the restructuring of the global trade value chain, established deep collaborative relationships with numerous merchant platforms and through innovative payment solutions and ecological resource integration, we continuously expand the service boundaries, deeply empowering the entire chain of cross-border trade development. Benefiting from the synergy, domestic payment TPV in the first half of the year reached RMB 1.9 trillion, year-on-year increase of 27.6%. We continue to deepen the full chain layout of the industrial payments and through innovative cooperation models with merchants on the new e-commerce platforms, enhance the SaaS ecological collaborations, strengthen the strategic service capabilities for private domain e-commerce and upstream and downstream industries, helping customers achieve a full cycle digital transformation. Our innovative products are gradually maturing. Digital equity products continue to expand their ecosystem footprint around the areas of traffic service and cross-border communications. The corporate wallet service has achieved comprehensive upgrades in functionality, customer base and cooperation model, building integrated collection payment financing closed loop and expanding to global scenarios such as OTA. By connecting domestic and cross-border [ jurisdiction ] customer service chains, we support the global layout of Chinese enterprises and enable cross-border capital flows through innovative products like physical commercial cards and establish an integrated domestic and international capital circulation ecosystem. In the first half of the year, domestic payment revenue reached RMB 210 million, year-on increase of 24.6%. Value-added services revenue reached RMB 89.5 million, year-on-year increase of 34.2%, with growth leading the overall performance and reserving new momentum for company's sustainable growth. This above is the review of our core business. Next, I will be further sharing with you the progress related to LianTong company within the year. As mentioned in the previous conference call, the company announced in the late December 2024, the scale of a portion of its equity in LianTong Company for RMB 1.6 billion, while our partners, American Express completed additional investment of RMB 3.1 billion in LianTong Company. I'm very pleased to report that this transaction has been fully completed. By the end of the June, Lianlian stake in LianTong company had been reduced to 17.63%. This equity adjustment was made based on the considerations for the company's overall strategic development, aiming to provide sufficient capital support for the growth of our main business and to continue exploring and investing in applications of cutting-edge technologies such as AI and blockchain and digital payments. In the foreseeable future, the company will no longer need to provide funding for LianTong company's development, but can still participate in LianTong's profit and valuation growth. creating better returns for shareholders in the future. Also, CFO, Ms. Wei, will also provide detailed explanations on accounting recognition of the gains from equity disposal in the first half of the year. In exploration of continuous innovation, we particularly focus on blockchain and Web 3 technologies as these fields are key forces driving the next phase of digital transformation and efficient improvement in global trade. Since several years ago, Lianlian company has made a significant related layouts in this area, including applying for and obtaining a series of infrastructure and scenario building licenses such as changes in Hong Kong as well as strategic development of core talent. Lianlian DigiTech always adheres to the philosophy of compliance first and licensing first, and this is especially true for its layout in Web 3. We also hold a virtual asset trading platform license issued by the Hong Kong SFC and continue to build compliant infrastructure globally. These investments aim to provide the customers with a safer, more reliable and efficient innovative services in the future. We believe that these initiatives are expected to further enhance the efficiency of fund flow within the current global payment network, offering global users safer and more efficient solutions while reducing their global trade costs. This will also continuously improve our core competence in the multicurrency fund processing and thereby build the company's long-term competitive barriers. In the future, we will fully leverage our global compliance advantages and enhance the synergetic effectiveness of global licenses, consolidating the strategic development pattern of internal, external linkage, building a more efficient cross-border fund circulation system and improve the full chain digital infrastructure to promote seamless connectivity and continuous innovation in global payment system. Finally, I would like to take the opportunity to thank our global customers, partners and all our colleagues for their trust and support and also extend my gratitude to all investors for their continued attention to Lianlian development. Next, I will hand over the call to CFO, Ms. Wei, who will be providing a detailed interpretation of our company's financial performance in the first half of the year. Thank you.

Thank you, Mr. Xin, for the introduction. Hello, everyone. This is CFO, Wei Ping from Lianlian. In the first half of 2025, Lianlian DigiTech achieved a high-quality growth with all business segments demonstrating strong performance. Just now, our CEO provided detailed sharing of business and strategics, and I would like to supplement with specific financial details. Global payment revenue reached RMB 470 million, a year-on increase of 27%. Gross profit, RMB 340 million. Gross profit margin, 72.7%, up 0.1 percentage points year-on-year. During the period, the TPV of global payments nearly doubled, but increased by only 26.4%, consistent with revenue growth. The ability to maintain a high gross profit margin reflects a strong cost control capability and economy of scale. In terms of domestic payment revenue reached RMB 210 million, year-on-year increase of 24.6% gross profit, RMB 42 million, with a gross profit margin of 19.9% compared to 20.1% in the same period last year, remaining almost a very stable performance. This reflects the more robust development of our domestic payment business. The value-added service revenue was RMB 89.59 million, a year-on increase of 34.2%, making the fastest-growing business segment in terms of revenue. Gross profit was RMB 17.7 million with a gross profit margin 19.8%, down 7 percentage points year-on-year, but largely in line with the full year figure of the previous year. This was primarily due to the rapid growth of the virtual card business, which had a relatively lower gross margin, although temporarily reduced the gross margin of value-added service segment in the short term, but we believe that holds a greater strategic significance for enhancing customer loyalty. Furthermore, as transaction volume continue to rise, there is potential for margin improvement. The future dynamic changes in business structure may lead to short-term fluctuation in gross margin. but we believe that this is going to be helping us to improve the customer loyalty, expand business scale and lay a solid foundation for long-term growth. We will continue to strengthen cost control, optimize the cost structure and ensure the company achieves a high-quality development and sustainable profitability. Additionally, as the company business scale expands and profitability improves, coupled with a very strong balance sheet, the company will increasingly consider a combination of organic growth and robust merge and acquisition as well as strategic investments to further expand our business and growth. This approach aims to build a larger Lianlian ecosystem and create shareholder value more rapidly and effectively. In terms of the expenses, the company continues to enhance operational efficiency. Initial results of cost optimization have been achieved. In the first half of the year against the backdrop of growth in both revenue and gross profit, the increase in company's 3 major expense categories remained stable. Sales and marketing expenses, RMB 130 million an increase of RMB 19.9 million compared to the same period last year, up 18.3%. Excluding the share-based compensation expenses, the growth rate was 18.2%. The main reasons for the increase in expenses were higher, sales labor costs and increased investment in the business-related promotion activities. However, the growth rate of the sales expense was significantly lower than 26.8% revenue growth, reflecting our improved operational efficiency. The general and administrative expenses were RMB 300 million, an increase of RMB 9.61 million compared with the same period last year by up 3.3%. Excluding share-based compensation expense and listing-related costs, the growth rate 2.9%, lower than the revenue growth rate. While the business expanded, the increase in administrative expenses remained modest. The additional costs primarily reflected the company's strategic investments in Web 3 sector, including funding to the subsidiary DFX. Research and development expenses was approximately RMB 190 million, a year-on-year increase of 26.8%. Excluding share-based compensation expenses, adjusted R&D expenses increased by 29.5% year-on-year. This was primarily due to the strategic integration and upgrade of R&D system in the first half of the year, which incurs onetime costs related to workforce optimization as well as the company's continuous investment in technologies like blockchain and AI. Here, I would like to say a few words more. In the first half of the year, the company's 3 major expense categories already include investments in strategic global expansion and Web 3-related innovative technologies and models. Through this very good refined management. The company effectively control various expenses while ensuring strategic investments. Excluding nonoperational items, the portion of the 3 major expenses to revenue decreased by 6.5 percentage points year-on-year. This fully demonstrates our improvement in operational efficiency and also highlights the strong stability and economics of scale of the company's business model. In addition to continuously to improve the operational efficiency of our core business, we also have actively optimized our balance sheet and investment portfolio at a strategic level. In the first half of the year, we completed a strategic transaction involving a partial equity stake in LianTong company. Following the transaction, our shareholding in LianTong company decreased from 45.2% to 17.63%, reducing the pressure of loss from the associated company on our consolidated financial statements. In the first half of the year, LianTong company contributed approximately RMB 1.6 billion in profit in Lianlian income statement. This includes RMB 1.6 billion in gain from equity disposal, RMB 450 million of dilution gains resulting from a passive dilution on equity due to American Express capital injection. Lianlian's share of losses from associated company amounted to RMB 51 million for the first half of the year, and income tax expenses relating to disposal gains were approximately RMB 410 million. Under the IFRS standard, the net profit level, company recorded RMB 1.5 billion, which includes gains from the disposal of equity in LianTong Company. After excluding all nonoperating items, including gains from the LianTong disposal, the core operating profit performance remained outstanding, reaching RMB 63 million, a significant year-on-year increase of 85%. This demonstrates sustained growth in the profitability of our core business. Overall speaking, within the first half of the year, we systematically optimized our cost structure and leverage economy of scale to successfully reduce the portion of major expenses. This has enabled the company to achieve sustainable profitability and ensure our ability to maintain a leading position in competitive landscape. Finally, take a look at the company balance sheet and cash flow. As of June 30, 2025, the company's cash and cash equivalents stood at RMB 1.56 billion. Subsequently, in July, we raised an additional HKD 394 million through a placement of the new shares, resulting in sufficient cash reserves. The book balance of our customer funds reached a historical high of RMB 16 billion. In terms of operating cash flow, the company used RMB 21.14 million in cash for operating activities in the first half of the year. This was primarily improved versus the same period last year due to the distribution of our annual bonuses and changes in net operating assets, which also -- which custom more cash than the cash profit generated in the first half of the year. Cash flow from investment activities showed a net inflow of RMB 1.5 billion, mainly attributable to cash proceeds such as partial disposal of equity in LianTong and paybacks. And also cash flow from financial activities recorded a net outflow of RMB 450 million, primarily used for establishing employee option trust and repaying borrowings. At the conclusion of the earnings call, I would like to delight to share with everyone that we have been having a very good development in the capital market. Since our listing last year, the management team consistently adhere to digital and dedicated approach and striving for a diverse satisfied results. Earlier this month, MSCI officially announced that Lianlian DigiTech has been included for the first time in as MSCI Global and China Small Cap indices. This inclusion is expected to attract more domestic and international investors, enhancing company's influence and visibility. In July of this year, we successfully completed a placement of RMB 38.4 million for the new H shares. This placement successfully attracted several top-tier international investments and injected new capital reserve to our company's sustainable development. This placement is very helpful to us accelerate innovation in the financial business and promote the advancement in new technologies such as blockchain and AI and strengthen our strategic business layer. Finally, we have deepened our internationalization strategy. The company has recently gained the recognition from several international financial media outlets. We were honored with the best cross-border Payment Solution Award for 2025 by Corporate Treasurer Magazine and successfully listed in CNBC 2025 World's Top Fintech Companies list. This also a very acknowledgment for authority of international institutions for us is a very good acknowledgment. Also, I would like to once again sincerely thank all investors and analysts for the long-term standing support and trust. For the first half of 2025, the company delivered record featuring a better-than-expected growth in core business, continuous improvement in profitability and the strategic optimization of financial structure. Moving forward, Lianlian DigiTech will continue to uphold the philosophy of high-quality sustainable growth, adhere to principle of financial prudence and remain committed to creating even greater returns for our shareholders. This concludes my remarks, and now we're going to have Q&A.

[Operator Instructions] The first question comes from Fan Yang.

This is Fan Yang from CICC. Very glad to have a very good observation of your good performance. I have 2 questions. The first one is that I would like to know something about the TPV and expense rate. Because in the first half of the year, we've been seeing that the global payment TPV growth was 94 point-something percent, so 94%. I would like to understand the reasons behind the growth of the TPV in the global payment system. And what are the major drivers? And second is that expense rate actually reduced, especially in the global payment system about 24 bps. We would like to understand that whether there is any business structure-related reasons. Looking forward to the whole year, what about the TPV growth? And how do you see the overall trend? This is actually the very first question. The second question I would like to know is that for the overall virtual trade transaction platform APV, what is the progress? And now for the stablecoin in the U.S. and Hong Kong, we do see some of the policies. We would like to know something about your views on the stablecoin and whether you're going to be part of the whole game?

Thank you very much for this question. I'm very grateful for you to participate in our conference. Let me actually now have the first question answered, and Ms. Ping is going to -- and Mr. Xin is going to answer the second question.

First question correctly mentioned for TPV and expense rate. TPV growth was very high, and the expense rate seems to be lowered very obviously in the cross-border payment system itself. Yes, due to the payment structure and the business structure. We know that for the cross-border business, we have 3 major categories. The first one is B2C, which was a cross-border e-commerce-oriented money collection and payment and relevant services. In recent years, we have another 2 extensions. One is B2B, which is the traditional commodity trade and another one is service trade, which is about the service industry, import and export. So this year, in the B2C segment, we had a very rapid growth and development. And this particular development was way higher than that of the industry average. We did not actually have a breakdown in terms of the contribution and the TPV by the 3 categories. So it's not convenient for me to give you a detailed number. But actually, at the least that we have a similar growth rate in terms of TPV as the industry average. The good thing is that for B2B and service trade, they're having a much higher growth, which actually reached to the level of above 100%. So this is indeed very important. So for B2B and the service trade, the overall customer base is going to be better and bigger than that of the B2C. The total single unit transaction volume is going to be actually higher than that of the B2C. So I believe that everyone knows a lot to the financial industry. And you know that it's like the banking industry. So when you have a big volume of the money, the overall take rate and the delta of the take rate, not necessarily is having a proportional relationship with that of the overall volume growth. So when you have a bigger volume, there will be a much lower expense rate. The same thing for B2B and the service trade. So because for B2B and service trade, we had a very significant growth. The take rate was 24 bps, not 30-plus bps, as shown last year. So next question would be that what is about the whole year performance? What about the future? To be simple, when you have the 3 business segments that are [ regioned ] to a very smooth growth, I believe that the take rate is going to be stabilized. I think that to about 20-plus-some bps will be quite normal. But within a short period of time, I believe that this is already the bottom already in the short period of time. So we believe that the whole year kind of take rate is not going to be lower than that of the first half of the year. Also, I'd like to remind you the profit -- gross profit margin of the cross-border trade. So when take rate is reducing, whether the gross margin is reducing, actually, the first half of the year's performance already illustrated this point because there is no relationship. In terms of the cost structure, it has a certain matching with the structure of the revenue. So for instance, for the channel cost, it will also reduce while we have increase of the overall volume. So the gross margin is going to be stable. I believe that in the future, it will not be 24 bps anymore because this is all about the business structure, and it is all about the TPV. And this is my answer to the trend of TPV and expense rate. For the TPV for cross-border business, I believe that the growth rate is going to be as high in the second half of the year as the first half of the year. So overall speaking, conservatively, it's going to be above 50%.

Right. Mr. Xin, you can have the second question answered.

So for the future asset trading platform, we had a very smooth progress at the current stage for the -- among the other companies getting the license. We are one of the companies that had the best smooth operation. And at the current stage, we believe that within the year, we are going to actually gain the acknowledgment from SFC so that we're going to have a total operation maintained. So I believe that in the United States on the 17th of July had 3 acts implemented, the Genius Acts and anti-CBDC and also 3 major acts. I believe that these 3 major acts are very important because of iPhone. And you know that last year, we had an explosion of the smartphone industry growth because of the launch of iPhone. And the first actually phone was -- or the smartphone prototype already was there in the beginning of '90s. And also, I think that when the Saturday is passing the 3 acts, there will be acknowledgment further. So I believe that this is going to be causing a growth explosion, a great explosion of the whole market in the U.S. Our opinion to stablecoin is that we believe that this is going to be very much optimistic. The Lianlian company is going to actually choose to be participatory, but still there is a confidentiality related, so it's not convenient for me to talk to you about the detail of this stablecoin and Web 3. But still, I believe that we are optimistic towards the future in terms of this particular area.

We are going to have the next question. Johnny from DB.

I'm Johnny from Deutsche Bank. Congratulations on the management of achieving such a wonderful performance in the first half of the year. I have 3 minor questions. The first one is that in recent years, we saw that the company has the SFC-related type 3 license. And when you gain that license, -- and after this, probably we are going to ask you that what kind of progress you're going to make on the foreign exchange. And in terms of the revenue and profitability, how contributive that type 3 license is going to be? And second question is that we know that the overall tax rate has been increased a lot. But that was also due to the increase of your revenue and profitability. But still, we would like to know that you had a lot of tax credit previously. So why you are increasing that tax rate in recent half year? And what is going to be the overall trend? The third question I'm asking is that also it is related to the overall kind of growth. So in the first half of the year, we had already proposed the equity and RMB 1.6 billion cash, it was still on the balance sheet, and we did not use that. So for this RMB 1.6 billion, what is your expectation on the spending? And where are you going to spend? And what is the cycle of the spending?

So I'm going to be taking the 3 questions. The first one is the type 3 license. Actually, at the current stage, it is having the same logic of the other licenses that we have. We are going to further explore the business boundary. And second, we are able to explore the boundary of the service type that we are able to provide to our customers. And the type 3 license is allowing our customer of using this, and we are going to actually have the business and trade and transaction related to the foreign exchange and the derivative related. So I have to talk to you about the cross-border trade in specifics because there are 2 parts of the major payment cost. The first is the processing fee and the other is more hidden, which is bigger, which is foreign exchange. Actually, in the global trade, scenario, when they are selling goods, they have to face more than one currency used. So for the foreign exchange in the traditional sense, especially for the small and micro-sized enterprises, there is a big impact for them. The type 3 license is able to expand on our current capability to provide service to small and micro-sized enterprises and they're going to be gaining the same benefit and the preferability of the foreign exchange as the institutional customers, helping them to reduce the cost further. Likewise, the parallel logic and approach is that for SFC, for the VIPP license and VIPP transaction exchange. So for VIPP, as I was saying that this is a very good advantage for us because while you have a virtual exchange, we could actually have a foreign exchange in between and among different currencies using the kind of stable and crypto currency. So this is actually the same. We are helping the small and micro-sized enterprises to actually reduce their cost and also improve their efficiency while doing the cross-border business. So I believe that this is part of our continuous business and continuous operation. And this is not going to impact our guidance on the overall growth rate. It is going to be improving our capability, improving the competitive landscape and creating more values for our customers. The second one is about income tax. Yes, they seemingly to be very high. Actually, yes, because for the proposal-related income for the major kind of legal entity with an income tax rate of 25%. And this particular expense of the income tax was the biggest source of the income tax in the first half of the year. So this seems to be adding to a higher income tax rate. But for the overall speaking, I think that based on the current positioning as well as the major business body, I mean, based on the geographic distribution of this one, we estimated that the effective tax rate is going to be below 15%. This is the overall medium- to long-term expectation. Third one is about the balance sheet. Just now, we have already mentioned that this is going to be a pretty much organic growth all the way with the M&A contribution. So this is a dual-wheel drive engine in terms of the expanding cycle and efficiency. To be honest with you, it is pretty much quality oriented. So in the first half of the year, we have been having explorations and we've been looking at a lot of opportunities and not take one opportunity. So in the future, we are going to further look into the opportunities for further expansion and M&A. With the leadership of the Board, we have the designated team looking for opportunities. We hope that we are going to have a very good use of this type of resources to further expand our company. But of course, in terms of the overall cycle, we -- at an overall pace, we will use this particular money in a responsible way because this is the charge cash from our shareholders and the other customers, right? This is my answer, whether Mr. Xin have any supplementation.

All right. So Johnny as already mentioned the virtual exchange and also the income tax and foreign exchange service. We would like to know that by having this particular way, we're going to actually replace the traditional payment system and route. So that is to say that in terms of the payment route cost and versus the overall time efficiency, there will be a great improvement. So in this particular process, we are going to have 2 effectiveness. The first is that we are able to provide a better and higher efficient contribution to our customers and gaining more market share. Second is that because of the control of the overall cost for the foreseeable future, we're going to have a better risk control in terms of the expense rate because we are able to provide with the customers a quicker and more real-time transaction method. So the -- rather than taking the risk of fluctuation of foreign exchange rate in the long-term route. So I believe that this is going to be satisfying the customers more. So overall speaking, hopefully, that we want to replace the current method with the Web 3 so that the customer value will be added and we are going to have a better revenue as well.

Hopefully, that we have answered your question. Now let's proceed to the next person. Now we're going to give the floor to [indiscernible] from Haitong Securities.

I am [indiscernible] the research analyst. First of all, congratulations on the successful performance. I have one minor question. Just now the leaders from CICC already mentioned the expense rate and revenue. I would like to know that at the current stage, as for the future 3 years, what do you think about the overall kind of revenue and what is the overall trend? So as you have already mentioned that for the overall revenue, actually, you had a much higher growth than the industry average. We would like to understand the overall reasons behind that. And in the short period of time, do you think that is going to be maintained and how that you have the plan to maintain a high growth rate?

Thank you very much. First of all, the higher growth and what are the reasons? Actually, just now, we already said that at the end of the day, they were attributable to the better services provided to our customers. A very important thing is our compliance-related advantage and wide coverage of payment licenses. So these 2 should be seamlessly integrated and which is going to be providing a better safety and better confidence to our customers and better customer experience. On top of that, we are further enhancing our products and offerings and providing better service to customer group. On the overall basis, this is going to give us a higher competitive barrier and competitive landscape and creating more customer loyalty and stickiness. So definitely speaking, this is going to make Lianlian to have a better reputation in the industry and gaining better influence and also having a very good growth. So this is an inevitable trend. So we are here to do the right thing. This is very core to us. Another thing is about the innovation. And on top of this, actually, what you are discovering is that every year in terms of business, we have different breakthroughs. For instance, last year, in terms of the TPV here in China, we had an explosive growth, all of a sudden. And this year, in terms of the B2B and service trade in the global ecosystem, we had an explosive growth. But also for some of the other kind of product lines and for some specific businesses, we had explosive growth already versus the robust growth of our overall business, we have them all. And on top of that, you could see that in terms of the overall revenue and especially the growth of our revenue, we have maintained a very good performance actually continuously around 2030 or so, which is actually something quite quick, but not that unbelievably quick. So we are very much comfortable with that particular speed of the growth. And on top of that, of course, the expense rate is going to be impacted by the business and product structure. In China, for instance, we had a lower of the take rate. It was because of some of the kind of products with a lower take rate that grew a lot. And this year, the international cross-border business, B2B and service trade, overall speaking, are growing. So there won't be a fluctuation of the take rate on this particular area. But in terms of the profit margin, gross profit margin, even if we had the change of our product structure, overall speaking, the gross margin of the company is very much robust. And I truly believe that this is going to be the future 3 years or this is going to be representing the future 3 years. Our company is not providing any official guidance towards the future. However, against that backdrop, I would like to tell you that we are pretty comfortable at the next 3 years' performance, which is a guarantee of 20% to 25% revenue growth. And as for the take rate, to be honest, we are going to see fluctuations and volatility. But in terms of the gross margin, we have confidence to maintain that figure above 50%. So as for the 3 major expense categories of operation, excluding the major investments and strategic related investments. For the remaining of the 3 categories of expense will experience economy of scale for sure. But in terms of the changes of profitability in the next 3 years, we -- for the influential factors, we have to consider from a strategic level would be the kind of service. So the revenue and the growth rate of take rate or the change of the take rate did not incorporate the continuous strategic investments on Web 3 and stablecoin. And also from an expense rate standpoint, if you want to quicken up the layout, we are going to have more investments. So there will be a trade-off made. And when we have that particular plan, we will talk to the market timely. All right? This is pretty much for my introduction and answers, whether Mr. Xin, you have anything to supplement?