Jiayin (JFIN) 8 Jun 222022 Q1 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. And welcome to the Jiayin Group's First Quarter 2022 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.

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

Jiayin If this the time. any objections, Relations call disconnect at you may of Investor I from to Shawn you Please Mr. proceed. have over Zhang Group. will now turn

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

On Chief the Ms. Chun Financial with Yan call Officer. me today and Executive Lin, Mr. are Officer; Xu Dinggui, Risk Fan Yifang, Chief Officer; Mr. Chief

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

risks Forward-looking uncertainties. statements inherent and involve

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

quarter, from latest areas macro resurgence conference XXXX joining for with environment following significant everyone. certain call. volatilities [Foreign our the Thank you faced Language] In in China. first the were quarter earnings we of COVXD-XX the first Hello,

our despite RMBX,XXX year-over-year volume our and the pandemic-inducing million continue licensed acquiring first management quarter. risk deceleration, by partnerships capabilities, the XX.X% strengthen to expanding grew competencies Notably, loan high-quality to origination borrowers economic enhancing core by with our we However, institutions. in

to improvement. we our reached the and margin million. our refined our combination cost enhance was More expense One X.XX% of of achieving the of delinquency sustainability to profitability of RMBXXX.X first XX the priorities and and expansions. our day We further here The seen Language] [Foreign efforts can an rate continued quality reduction growth. growth from and income operations leading our strategic to enhancing be the Language] [Foreign In XX delinquency net at the importantly, our was portfolio the ideal our acquisition day X.XX% quarter, to income the success X.XX% by on end focused in our our end The rate solid We operating overall efficiencies, illustrating between business XXXX. RMBXXX.X to consistent also quarter of year, borrowers profiles of credit million quarter. this ensure from during efforts of to borrower dropped improvement borrower also last further at our credit continue X.XX% structures from optimize quality. risk

the and online in our efficiency our borrower marketing targeted to programs us borrower of quality Our improve increased enabled acquisition our investments base.

partnerships remain online our maintaining invest level. with efficiency, acquisition a Language] very borrower’s funding we institutions continue credit we forward, enhanced our at with marketing financial to in to healthy will the committed continue base expanding further borrower licensed our At sources. to borrower diversifying our while time, to same Going quality expand initiatives [Foreign our

with another four we currently XX. in financial XX, As we partnerships and of March institutions, XXXX, discussion with XX are have

our in the contributed institutions financial to our of the national partnership importantly, network quarter. first total in loan majority More volume

other borrower operational platform by new actively Under our to partnership we including specialized also are to their addition financial integrated our risk new our In provide the services model, operations. analysis institution enable services, models exploring leveraging partners empower to to own and digitize that, collaboration we partnerships. acquisition,

to quarter small through the corporate and already needs new support to institutions, services, the and another we business three are discussion model micro we our also and institutions our with the to In [Foreign in under-penetrated owners time economic has small disruptions, uphill We four implemented partnership business the responsibility largely during [ph] financial with while remain addition, their network. partnership hardest Language] financing adjusting loan have further under-served. expand

better As recover our [Foreign services and Finally, global regional for we each small expansion, economic in hardships. products to help loan such, develop program business continue Language] on from our to to in we our owners order market. tailored the continue roll them

prudent adopted a the markets. response pandemic to in approach more also We across different

still are progress penetrating achieving we targeted in markets. solid However,

that the to conclude, are to support uphold borrower the with regulatory capabilities, We healthy fortify institutions expand partnerships financial continue fintech believe environment better final and introduced on a and deepening the to [Foreign our its [Foreign April Language] the local our we the strengthening leading as partnerships Party To new Politburo our nearing firmly will Language] We commitment institutions. growing such with also market base industry Chinese benefit process our our of of Group. steps By is phase. our Jiayin licensed our observation, to share platforms regulated actively management leadership. platform XX, ratification risk financial Communist economy. licensed the Recently, developing development

laying quarter profitability uncertainties I macro in that, again our our Chun ahead. Please turn resilience, in XXXX. a demonstrated CFO, quality on to Mr. the overcome go and of asset performance and we are any will now the foundation With vitality over first Fan solid call to As improved Lin. strong

today. thank call you, Mr. our Thank you, everyone, Thank you, for joining And Yan. Shawn.

of for for my here. so the and pleased than team to Jiayin back review great the CFO to my First investors from glad I'm job X after of and absence. role more year. I departure appreciate all of meet really their be I'm Jiayin during also all, friends

line growth by and delivered top financial As margin mentioned strong first Mr. Yan robust earlier, the quarter improvements. in we results marked

by loan and During by grew XX%. the our quarter, we origination revenue XX.X% volume

XX.X% increasing COVID-XX our and to income further Such expanded disruptions, while the year-over-year, growth ago. again margin strategies. net demonstrated by from uncertainties Importantly, our increased effectiveness a macroeconomic of the XX.X% XX.X% backdrop year achievements against net of

Now driven in year-over-year that changes go let unless growth note Revenue for numbers This by in referral in volume, Net are and the individual million, all a significant increase the loan percentage the our XX.X%. comparisons. decrease to services. from increase XX% markets quarter. million, primarily was from increased partially quoted $XX.X increased revenues the investor in refer origination revenue highlights stated Other otherwise, overseas was which to revenues financial by offset our quarter. revenue through RMB driven me up by in growth RMBXXX.X Please was

XX, on million and of fees fees mainly first to higher up of our $X overseas XX.X%, loan assessment expenses quarter. increased due quarter. Origination expense loan line and RMBXXX.X from the for volume higher incurred we our million, were million, we employee with origination million XX.X%, largely $XXX.X higher Moving quarter well R&D during million, as line our the up increased same of $XX.X receivables, and marketing the of up - in and the XXXX. reflecting Sales benefit result to [ph] professional in with Consequently, expense expenses as quarter compensation professional last expenses reported ended a credit uncredible income recorded cost. volume. million a contract December this in X.X% with XX% year. origination G&A in Allowance services loans volume. XXXX. online a compared RMBXX.X loan equivalents were as servicing for borrower assets, to business as costs, XX.X%. in decreased receivable of was million, million, We to the RMBXXX.X this by RMBXXX.X service the increase was and million with up reduced in cash $XX.X net cash We period in compared acquisition $XX.X

our guidance. to Moving

to go volume We questions. Operator, quarter the billion, Yan, between billion our our expect in With for CEO; can remains RMBXX call we guidance Chief and and XXXX will open please year our unchanged. Mr. Officer, loan I the and our questions. ahead. Mr. answer full Xu, RMBXX be second Risk origination that, of

you. Thank

Scott We will question-and-answer your Instructions] question. comes ask the line begin Please the now first ROTH Partners. of [Operator from Your question Andrew session. from Capital

business? strong you are markets you international taking first [ph] your questions. Good guys' presence. in? my question about you the around My the start are origination going guys quarter. for just the guys Can reporting maybe comment morning. just different And on if thanks on guys provide international international is Congrats any And metrics update an on to

our on is the This to we I'm our view international Yifang. Andrew. have overall take part In international shared of the questions your performance. early markets. going some Hello, call, of about

have we the market, In of XXXX, continue Mexico, previously little in been expansion. has I'm bit in Now are on been leading player as In we strong in we diving volume. our product position markets. which of focus each taking have of communicated, Mexico our terms just offering focused a in a the that is - QX into the detail

on higher-quality double-digit We to are volume. a in product high of month-over-month aggressive up performance. we Nigeria volume reporting the moving growth our able growth, while are and higher better double-digit we much is focusing In our Then rate have strategy been our improved we our health are maintaining terms better, having term. volume - customers longer a to starting a reasonable and quarter, to was a market. bigger and both a drive working to we but providing been move more that at risk risk on now, have the a at achieve rate continue to which down metrics, Last growth QX not on XXXX, a By higher rate. way, which growth, on

we to continue our a Indonesia, play we're market. lending a presence strategy to re-launch exploring on more flexible Indonesian and - to re-launch in in to our allow market. model to us operational Jiayin much at Indonesia to back Compared Going working different XXXX, force our in are

slightly metrics the to due the terms setup due - of its the to different In reporting market from to market. operational

still be above a on are what's discussed about on that help I overall is That way and bit the the investors how will providing have what strategy we what's best exact metrics little what [ph] that. all... I'm But understand view reporting a intra on to our market We our hoping operational focusing are in on. movements working to the - better can

Thank Thank helpful. you. you. That very, was very

guide growth, RMBXX you exciting better to very be Can customers whether for talk about believe business in it's or loans. what's driving the billion it me, of RMBXX kind billion quarter. of I of, acquisition originations introduction of question next might small the Next that

Just be around would helpful. any that commentary

Yifang growth. more to details going get into is loan I'm question your again. This little about Sure. a our bit

year at when loan little – a which is transitioned XXXX, our we're QX fully looking So time acknowledged performance facilitation years I proven last think institutional into believe X.X model. by year, the I partners. has a in fully when a to we over year if and be our bit back we welcomed

partnership have As seen a XXXX. growth have institutions and our grow we both to continued which in financial result, a QX licensed significant

and we're happy partners, that we broader partners. brought their with As deepened meet that our able from growth have our growth, our was we're our to a seeing loan needs loan institutional institutional overall relationships overall

other able on over our On a high in and our capabilities, in pocket to continue uncertainties the marketing the we In are that resurgence focusing Especially well - performance. online the healthy to China [ph] as China. while the focused the operational benefiting drive and focus demand long-term in been deliver teams as acquisitions. side situation the loan on us a from our COVID lending and such has online on to of investment were with particular, our have due the we technology all origination we the in loans growth, some COVID areas - marketing meet experiencing are to

On to we and the our the R&D - risk on focusing other our management. hand, continue

one the technological well risk. - both in investment, level the risk risk risk risk and pioneered as to allow metrics, mature much from our [indiscernible] have profiles, profiles, applicant both at early peak implementation which model Aside and model early our as take we addition day monitoring, a us to applicant prospects, also our

is double-digit, in growth portfolio. which triple-digit our That keeping comment So on drive even risk my meaningful able the In actually will with trend. that, are a we level, even downward, the… high going at are metrics be to a meantime, downward our we healthy

really I I Yeah. one And really all detail. last then you. Thank me. for the appreciate Great. appreciate.

services - market understanding, my on the issues on pandemic put economic the government ongoing growth during financial to some have notices out how that pandemic spur been Just the going enhance world. the to around

place? the during forward, So impacts put talk can how that you in kind were especially of that recent Jiayin about lockdowns moving

will Andrew, Okay. take I one. this

So as lockdown. you that underwent don't period, all we right, know that so-called all site Shanghai call just officially,

compared facing is is one XXXX So very China challenge the pandemic and March, the the is that control. tough aware difficulties since everybody with

about to aware growth, focused Number government conducted business on small the facilitating online. employees government, one, back number exercise. nationwide Jiayin office. economic reopening foundation is of we portion good the inflation So that employment could of [indiscernible] a on the for business we including and core is, only And all be accounts the our central are is the Shanghai thing the our consumer And development. control number are overall business. data, three, fully for China's development, local own they Jiayin, our two, of And see are and the GDP Shanghai come most loan almost of since

macro with keep China, industries. evolving fully company pandemic environment macro minimal current the prepared is business environment And our close given Certainly, resulting particular a from - the the to in segments. is impact the fundamentally, and macro will to control. face and the compared economy we So other our

also current the due we're happy further the at and So contrary, better figures business, like the be quality I our like invest [ph] [ph] delinquency we has to our we to asset have haven't just and seen. that any of and refreshing [indiscernible] seen see deterioration grown data nature obvious of improved mentioned, on to data delinquency assets that

as about just news gives a which us we in the So confidence. lot future are pairs in from of in the think guidance Andrew. of And view. conservative Shanghai, out all, is optimistic two that, short, in I all and we all we seen the actually our measures government months So three well, a to lot coming and right? despite gave pretty good have over past Thanks,

the answering all and on much Great, Thank strong congrats from once questions quarter. me. you That's my again very for Thanks.

call time. at return questions I ahead. We more have will go Shawn no closing this Please for the to remarks.

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

This call. participating. Thank conference concludes for today's you

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