Jiayin (JFIN) 7 Jun 212021 Q1 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's First Quarter of 2021 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, we are recording today's call.

objections, disconnect any this have you you at may time. If over now turn will to the I call Ms. Managing Group, Asia. Qian, Julia Director of The Blueshirt Ms. proceed. Qian,

Hello, press Group's well services. for call everyone. We website released first all as on early XXXX. available Thank conference today. on results today's company's The quarter joining of newswire to is results as financial us Jiayin on the for release the discuss you the

Ms. Shelley the Xu Dinggui, Officer; On with Chief Co-Chief Chen, are me Yifang, Officer. Ms. and Yan Mr. Bai Financial call today Risk and Julia Ms. Executive Officer; Chief

continue, that Harbor forward-looking Provision we XXXX. Litigation discussion Safe statements U.S. the will of Private Securities Before contain please note of Reform the made under Act today's

Forward-looking statements involve inherent risks and uncertainties.

results the Mr. expectations note in update and me obligation mentioned from actual SEC. with these required Yan. under call translate materially such, The included will applicable unless uncertainties regarding then English. information ahead, to the to Co-CFO, now Go filings does all Yan that, are the figures RMB. Mr. speak expressed any statements Further stated, other otherwise the not may the call turn Also, to risks and during and the please the any law. as let CEO, our Shelley company Bai, in over Yan in forward-looking Chinese is company's will different except be that public Dinggui. today. conference company's With our Chinese his comments As assume

great successful growing are billion, and allow to to delivered for for up by valid business RMBX.X leading this increase period in year-over-year solid results XXX% Loan RMBXX.X year. earnings everyone. strong key quarter call. institutional our business reached and This [Foreign of indicators us start execution We loans integration XXXX XXXX. our solid [Foreign income from the quarter, capabilities. you partners compared driven Notably, Thank XXXX. come Language] me first net same at share growth million rapidly our Language] financial to strategy XX% RMBXX.X and Now our growth, Hello, year-over-year the from in million, Language] on growth. of a joining business conference the [Foreign strategies

will integration, deepening First, with Thanks QX. solutions. our our financial XX in continue drive and development in and customized organic growth individual our we early to increased partners sophisticated by partnerships leveraging management automation to funding of [ph] in China, system institutions risk stimulus process providing systems to

to of broaden Our borrowers, the quarter have We customers. report to XXXX are while this up XX% boring to to steer drive repeat QX in aiming further strategies, our rotation XX% also good This system quarter, institutions, drove [Foreign in shown select maintaining high XXXX. rates Language] ability have sophisticated first in improvement a the partnership. credit of acquisition trend. and [Foreign our produces Language] [ph] discussion behavioral our us sustainability satisfactory maintained assessment which We compared the higher published with leading XX another that customer and current quality analytics

a our in can we and quality it prudent overseas making for invest as competitive are Language] XXXX. make technology, to improve continue analyzing factor, as markets maintain Secondly, asset and has will significant [Foreign good We at efficiency entering expansions, well of edge a where rest the level technology difference.

next currencies market rigorous [Foreign successful strategic Chinese We another market customize be important and online and out we [Foreign is technology. Indonesia market technology established at local and impact out the and doing models income digital quarters. and in presents of the generation and we stability. see Language] populous business growth, networks we Nigeria, one society. stock fintech various an progress management South most profoundly are worlds local technology, growth are conservative easily gradually. huge are are market, quality with potential. are the continuously also research on tech continue In fintech our for partnerships the [ph] once despite very country a risk build expect we steady within Asia, [Foreign player key aim robust We opportunities in great Indonesia participate African is Product and development and well For key for observing with increased we Thirdly, platform evolution. increased unique region innovation. building and platform, consumption invest Language] are will economics We growth transparency, is a the demonstrated competition. we and Language] actively addition, has fourth Blockchains early Southeast lending financial built to with and which approach to individual position, leadership and which Through and accelerated the market maintaining as execution evolution will technology rolled making digital The operations. established operations a or next enterprises. positioned a to to with first where the two the of principles the after expected our African receive turning in to service American in lead entering optimizing we blockchain well security are investments, the leapfrogging point fintech and our as yet in crucial continually enterprises,

call, downside and is management. hardware technology As distribution does mining shared mining of not and primarily on mine to related as from Bweenet limited With Bweenet in are design our itself we cryptocurrency cryptocurrencies. There Language] risk, finance focused this last within operation earnings be more institutional completion an cases With and will team. sector, except separate potential Bweenet's growth use investments significant. business and in the believe more we especially financial progressing, month. independent under development operations integration [Foreign is steadily functions

of be with team Co-CFO, flexible Julia And participate our Language] growth. Chen. our XXXX top to developments outstanding no confident year risks, outlined. and call able I downside our [Foreign [Foreign be go to deliver strategies is a on our financial accelerated in strategy to will and conclusion, to the will developed am business turn With impact I Julia, We Our results. Language] technology please operations. current now over initiatives ahead. In I limited that, be execute will the just

Thank joining everyone thank our call you, Yan you and Mr. for today. and Shelley,

Yan just growth target. kicked we Mr. business on As note, financial growth firmly track progress, us XXXX off strong our meaningful mentioned, and impressive on to a placing achieve with

go financial through for Now, our let the me quarter. highlights

specified. note are I business laying are quarter was The was Other of up year-over-year, in grew by for business of walk on on revenue just primarily revenue call. and which coming points please line time, here. XX.X% million. from of percentage our the not due of to interest increase growth by sequentially. volume good increase each I remarkable and year-over-year million. All This our terms facilitation RMBX.X all primarily strongest I XX.X% go key the of to numbers IPO. services, achieve us through stated was item the will RMBXX.X was due the otherwise to year-over-year RMBXXX.X origination basis, the to grew unless XX.X% details, continue Before RMB first will this for highlight otherwise. the business. loan development billion, since RMBXXX.X a the into presented X.X% foundation our robust This by the growth to to it increase that overseas are This some and transformation, XXXX up X.X%. demonstrated Net future. of million, In which the success was the rapid the was Loan in also unless

on Moving to cost.

business no offset XX.X%. our XX.X% and XX, were in This cash uncollectible due down risk longer the the RMBXX.X Allowance our its for RMBXX.X increase rental with provides the decrease and December expenses We to million, more We was to net to from to was the X.X%, by continue receivable to XXXX. to primarily the our operating operating to X.X% under Sales with RMBX.X XX.X% primarily offset down compensation due collection in such as RMBXX.X acquisition share-based marketing cost, company attractive increase partially relatively X.X%, due credit million RMBXXX.X RMBXXX.X improve last period efficiency. total down equivalent expense RMBXXX.X decrease was expense streamlined million, costs expenses loan down RMBXX.X year. the million, up departments, other volume cost new We from RMBXX.X of profitability and in assets, expenses. million, mainly same compared borrower operating XXXX. model. technology in Origination million was cash posted a expenses loan RMBXX.X continue assessment higher was related through improve loans further In lower due optimize of operating business from contract efficiency. and to achieved of the to expense in were reduced R&D by QX, down expense, business-related partially structure others credit origination million, expenses. this ended of and offset team million income The as XXX.X% growth RMBXXX.X million due volume, services and primarily higher up resulting year-over-year improved the XX.X% partially new primarily lower was We servicing million, efficiencies. million, quarter G&A by receivables, sequentially. as model. we

Moving to guidance. our

I year-over-year ahead. please in open our XXXX our Officer, loan recovery will over we we can economy Xu Operator, quarter Mr. of Chinese Chief questions. [ph] the Risk questions. expect growth Ms. for to that, a be consumer and growth and of call the XX% XX% sequentially. and Given fast-growing XXX% the finance answer volume markets, go orientation second With will Yan,

go and this from session. have Ladies Instructions] ahead. Please first gentlemen, line Andrew Capital. Certainly. of the [Operator ROTH the begin from question, We coming the Scutt now we will is question-and-answer

results. the my taking questions. Hello, congrats on strong thanks And for

question the the you you to you the with institutional the just is making in are here call have, stronger margins maybe I efficiencies especially gross realizing you transition really on results? in first the the that Can that guys quarter. showing discussed the successful strong helping the about you're shown had model are the partners, and talk So driving execution

Yes.

will So, this is take question. this Julia and I

yes, Hi, Andrew. Andrew, So, - hi.

have you mentioned, PXP As the successfully we exited have business.

the so different some And first we facilitation cost in have savings seen also quarter, have under to strong the So loan facilitation we volume. items. loan the models, expense very increase in seen

fast and in did grow to actually the and economy have of the growing as quarter. given a recovery good as consumer in the we mentioned Chinese confidence book, very we So expand first market, financial the we commentary,

will So so… expect volume profitability. origination efficiency continuously - profitable year. to operation And our good we Yes, very very and continue our improve that quarters the in we to the maintain remaining loan grow this will of

much. very Thanks Great.

Sorry, there. want I didn't to you up cut

there expectations were going forward? R&D Can I you me, like may. the of in about look question expenses quarter. if for Second they your kind down talk substantially

Okay.

down the So was yes, PXP have we business. the R&D successfully expenses exited year-over-year, XX.X% because

to made human we So and And actually some personnel resources. we efforts technology departments. related optimized streamline scheduling, the our

we So have streamlined way, a in more technology. in team that

so we So compensations. see the share going And some the savings compensation. forward, and related in also – yeah, share-based salaries

improve to continuously good to indicator number, the absolute So I if and further to think our going for the at And our look investment, forward, plan year. remaining this technological company. capabilities quarters very the improve for we R&D growth efficiency you of propel it's

to I So investment level and plan that from level are – improve Hope yeah… from we here. this the think R&D going we

very That that was helpful. Thank you. was Yeah.

in it I definitely Next in see very quality excited one, funding. disclosed may. numbers and the And shift to the if credit this release reflects the I morning. institutional was

So maybe just on expectations provide there of forward? can and going you numbers some commentary the kind

early to in been starting this recall. our going customers, if our you results. the institution the taking Yifang funding to a partnering you better with towards what the ourselves Xu institution intent, on are desire seek our the from funding portfolio, business quality XXXX, last year Yeah, so as strategic on partners. as questions anticipating - towards Andrew risk We're is thanks us quality trying we we higher question. credit partners results shifting are for This facing on stronger has from So and customers position your from

can – the time. continue over as So credit number to improve see risk the you numbers

of on customer long we we term is of One sort attacking focusing our on in our the We are of point existing are the better ultimately we risk just are trying addition, multiple portfolio to And customers. satisfactions from are customer acquisitions, fronts. strategy, view. targeting so customers from

really fact, we more focusing better customers, in learn the who outlook, and we have about our own customers able as credit to and outlook. As longer are risk on

Just – coupled we with collection are on improved. [ph] that, capabilities also loan also

been we peer now. our almost for has had over environment, highs all seen time over from So less to as are been stable two as time, our improving much rate overall we external and day collection companies – have has able XX risk reached pretty our quarters

So that's be something to report. that happy I'd

in risk expecting just So significant with existing – going expecting especially are be is way customers, our all. with are we our - portfolio pace, are book to even significant in about even risk customer will a a going be grow at all repeat place, things better, That going our continue is better. overall we to

the was That on update thanks. that have steps and integrate on over that anything talk next few helpful. forward, guys next quarters? Bweenet Great, extremely needs appreciate moving the to the the company else maybe through call. provided you Also acquisition you you some Can done the of just be the

Yes. Julia. This is

function operations of currently the other So functions. are we the of integrating supporting finance, and in middle

this June. complete month consolidation this to expect end we within by of the So

next full to So, and income, been in on related we Bweenet additional have to distributing XX% would if net for contribute And we technology, design the current as business Bweenet in or hardware, we stick can management. primary cryptocurrency year, mining focused of the commentary that the mining is earlier, highlighting strategy. estimate the

engage Bweenet actually, exchange issuance, that. like something So directly or in cryptocurrency mining doesn't

So this watch with necessary, make business will from adjust requirements. are of our - will and view, equip operations the sure very to and regulatory within operating point observe closely that fully we framework. currently, we regulatory and And business our we the if compliant

status basically M&A of is deal. the So that - yeah, our

for may, And one, then here, some was the to great? as through if quarter, so be customers talk would exciting commentary Can loan great very your to end? have XX% acquired year – platform new And sequential XX% a people you the I look last adding very you if growth much. you origination any this could provide for XQ. you expectations it just you that's like well Thank on

take repeat This question. of is Yifang. Xu your Andrew, on you your going again? I question half to second Can am the

new repeat Yeah, platform. the looks customers to so like borrower was it added successfully sequentially, down percentage the you

So any commentary great. you have there would be

Sure.

are at which seen quarter's quarter-to-quarter range - plus have better So outlook, we a what from even our is next quarter. from this XX is XX which growth, range than disclosing we

So the I'm year. I don't growth don't second half - but number of this expecting a for the overall stronger we for definitely have yet, a

QX bit, want So out we take looking of numbers just growth. to our just the little a at the

year, sides. the have our is, performance partners – the just also metrics. One of we really institution primarily are as growth PXP transitioning seeing book So confidence from – two our because our risk gained our on are coming given on and closed we in past November significant interest our last portfolio

place. and number typically partners seeing we in institution And are we from going our on planning So who are our seeing we're more coming board. growth from institutions traction that healthy today pipeline are the

well. traction doing with So funding loan strong seeing, we a are as that similar originations our supply the are

are that the - we we are of portfolio repeat to middle quarter. loans that's as QX. repeated book percentage starting you full have customers growth. percentage see the of driven that going very risk new higher can of repeated acquisition we little the in mostly new a portfolio, last repeated from QX compared customers are to talk our bit. the our percentage the origination see decision – from QX, It's because have grown to our expanding going coming in are in a - about of similarly by terms likely And I'm - our in So our customers from we speed in

acquisition, our the customer as grow marketing product of diversification, expanding a as we range by to while book, based well rate are offering the a product looking to still time same ways we several So as from with fully at for full in right new both customer the of and, capabilities, lifespan. repeat book, our new [ph] terms, we well from are triple our spectrum the assets [indiscernible] that our are

more customer is the also experience. Lastly, importantly but

customer’s We to to how every further rate. trying we engagement the improve improve interacting as with and - are into getting are details customers

as customers, QX, more our the through mid acquisition throughout. starting on QX I mid QX, are we that booking earlier, gaining more and that has customer new – So this of new dropping for been said from starting front, [ph] traction

spectrums. customers some getting with we customers or of spectrum all are our Internet-based are throughout we And So marketing - platforms, – getting are including full we through are information-based et marketing talking signing with key cetera. other channels, partnership we

So this a in of metrics. on expecting marketing channel the to our optimizing acquisition cost going throughout year, little half that – we're second from these more we're focus

this are – on full view management QX booking the expectations. we take in So and terms we I acquisition, customer and we our terms very view, would are critical in in prudent lending that I buffer risk to all terms as been risk pretty our always say of the on earlier, of for portfolio has of on taking a of core speed new customers, a we very us even said slightly also maintain healthy how slightly conservative are -

And growth, underwritings changed as are the deals, risk. are more so not credit the cost of and trying sure at that deteriorating comprehensive all make and to such, portfolio the but gaining we channel-specific

will perspective a we are half to of second half year. in half going see our view of much supported growth expecting institution overall second be stronger we our that lending the first continuous fully a what are this the from compared That our definitely Hopefully in that’s So by of partners. terms with that to year, volume. year

And strong again, much. quarter. on the very you congratulations Thank once

Please go Chen. Instructions] the you. ahead. to I more no [Operator questions, Seeing return Ms. call Thank will

to next our for you And And your you reporting you, forward participating again to We thank today's quarter on I interest. your progress. for support. you appreciate call. Thank all operator. on look thank And

that Thank call you. Ladies participation. our your and today. for all Thank gentlemen, concludes you conference for

You may disconnect now.