In summary, we have seen some positive signs from the latest published macro data and our continuous efforts in improving our profitability is also bearing fruit. At this time point, we are confident to achieve our goal to generating better profit growth than loan volume growth. Regarding the asset quality, as our CRO just mentioned, we fine-tuned our risk strategies in Q4 and Q1, leading to a better FPD 30 delinquency rate performance of the new loans issued in the last two months. Considering the marginally better macro-conversion, we believe our asset quality is also generally manageable.
Yan Zheng: Okay. I will comment on the risk front. The weaker than expected macro environment in Q3 continued its momentum in Q4 as a result of underperforming macro statistics, liquidity tension in credit market and the stricter line control by telecom carriers. Our risk metrics for the overall loan portfolio were further trending up in Q4. In our view, the macro uncertainties as well as the line control issue may continue to put pressure on our risk management in this year, but we do see improvements in the latest economic data and market liquidity. Our day one delinquency ratio has been consistently trending lower from the peak level in last November. From our business planning perspective, we will take a more prudent approach in terms of risk appetite. With all these efforts, we aim to lower our vintage loss for 2024 new loans by 10% to 15% compared to 2023.
Operator: Thank you. Our next question comes from the line of Emma Xu from Bank of America Securities. Please ask your question, Emma.
Emma Xu: So we noticed that you keep your dividend payout ratio at 20% to 30%, target ratio at 20% to 30%, and announced a new shareholder share buyback plan of US$350 million. You mentioned some of the considerations behind. I’m just wondering if such shareholder return is sustainable in the long term. Could you share more consideration with us? Thank you.
Alex Xu: Thanks, Emma. I think the — as we mentioned in prepared remarks, we consider the combination of dividend and the share repurchase as a lasting kind of measures we’re going to take to return to our shareholders in terms, the mix between the two from time to time, depending on the market condition, may change, but the intensity of this kind of return program will probably be similar to what we see in 2024 we just announced. In other words, if we consistently doing the repurchase and the dividend for the next, say, three years, it could possible we see the shrink of total share count by roughly 30% or even more and — based on current share price. So basically, what we’re trying to say is that we view — given our current cash flow position, we view that returning to shareholders is a very important long-term tools to the company, and so we’ll continue to do that and — year by year.
Emma Xu: Thank you. This is very encouraging.
Alex Xu: All right. Thank you.
Operator: All right. Thank you, Emma. Our next question comes from the line of Yada Li from CICC. Please ask your question, Yada.
Yada Li: Then I will do my translation. Firstly, I was wondering what are the percentage trends of different facilitation models, including the microcredit, the guaranteed model and the capitalized model in the volume going forward. And considering the macro environment, which one is preferred by the financial institutions? And secondly, I’ve noticed that there was a notable growth of the ICE both in volume and percentage. And during this year, what can we expect regarding the ICE? That’s all. Thank you.
Wu Haisheng: Okay. Thanks, Yada. Regarding your question about the loan mix, I think at this stage, basically we won’t set a target for our loan mix structure. Instead, we target to diversify the funding partnership structure, adjust our loan mix and asset allocation strategy to improve our overall take rate. In the meantime, we strive to improve the asset matching and allocation efficiency, reduce the partnership cost and boost our take rate for each of those categories. As you mentioned, let’s take ICE for instance. We managed to diversify our funding partnership and optimized asset allocation under ICE in last year, which resulted in an overall 50% year-over-year increase in our revenue take rate for ICE in Q4 2023. So with ICE contributing more in the loan mix, our overall profitability is also improving.
This year, we will continue to conduct this strategy to improve our operational efficiency under different models and make dynamic adjustments to our loan mix to improve our overall take rates. Thank you.
Operator: Thank you, Yada. We have reached the end of the question-and-answer session. Thank you very much for all your questions. I would now like to turn the conference back to the management team for any additional closing comments.
Alex Xu: Again, thanks again for joining us for the conference call. If you have any additional questions, please feel free to contact us offline. Thank you.
Operator: Thank you. That concludes today’s conference call. Thank you for participating. You may now disconnect.
