Jiayin (JFIN) 6 Jun 242024 Q1 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's First Quarter 2024 Earnings Conference Call.

[Operator Instructions]

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

If you have any objections, you may disconnect at this time.

the to turn now will call Mr. over I of Zhang from Group. Relations Investor Shawn Jiayin proceed. Please

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

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

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

inherent Forward-looking statements uncertainties. and risks involve

expectations and Further other SEC. expressed these and the with is public uncertainties regarding today. be such, As actual the results information risks company's in the may filings the included company's from materially different

as The statements, our applicable company obligation any update does assume not except on required to forward-looking any law.

unless figures please otherwise Also, stated, renminbi. the that mentioned conference are Chinese all note in call during

translation. Yan. let turn will Yan his go the Mr. to CEO, will our Yan corresponding Mr. Mr. Dinggui, in now that, with English up Chinese, ahead, and remarks me follow call I over With Please deliver

[Foreign Language]

our [Interpreted] earnings everyone. first you Hello, for conference Thank joining XXXX quarter call.

[Foreign Language]

considered. XXXX by momentum. gradual on new the Chinese consumption take of for [Interpreted] to challenges side. up are stage to be comprehensively recovery currently year such and driven signs need led company, a there of but willingness the to still risk For strengthen residents' our both recovery, dedicated economy is demand And factors in as loans technology development that by is showing is

in financial the whole our quarter. and successfully and achieved in the XXXX. its in business year remitting achievements enhancing company made operation these opportunities, Against own we performance for the confidence have of strategic of the risks efforts, first expansion, the backdrop solid Through we goals the

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important interest in of requirements. emerged as fluctuation a in first decrease focused regulatory changes the risk the and we quarter, market [Interpreted] of market factors, the rates on number The In levels year. overseas market such last

We big data which artificial company's continue partners the core continuously to to empower intelligence, competitiveness. the ability enhance with company's and improve

expansion internal results. strong management and Both our external business refinements contributed to in

Our the March a XX.X exceeding year-over-year X loan for facilitation reached guidance. the volume RMB ended of set XX months increase target billion, previously XX.X%,

net this revenue billion, of X.XXX a year-over-year period, continued a XX.X%, achieved growth. we increase RMB During trend of of healthy

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technological of deepened of beginning XXXX, the From level of technology and application AI business [Interpreted] intelligence. implemented achievements and These technology the constantly comprehensively are emerging. empowerment, continuously improve we

of In and company in apply the business technology the AI applications. capabilities scenarios has and unify fully relatively mature field and delivery various of the AI implementation commercial design core services, integrated

application models and recommendation. models At validation expanding search of and gradually market. expert language customer from language team maturing such the [ intensive the intelligent company's task-intensive also in terms management is scenarios telemarketing, are of and to ] post large loan knowledge including intelligent impairments scenarios, as same services large application the The in popular time, gradually the technical capabilities of scenarios

company's future. and in-depth technology AI efficiency, full developments The the achieving we extensive and significantly in application in improved confidence of has the of are data-driven further operational

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at XX financial X quarter, we gradually long-term financial first established network the diverse discussions the additional formed with stable institutions. of as with in partnerships have We are a institutions [Interpreted] of of and and institutional -- end have the partnerships

under overseas beginning we with same to development as At banks is the progress. business foreign time, explore cooperation are our

with have in we deepened In management risk technology, our financial protection. operations, addition, institutions and rights cooperation consumer

outcomes to for business partners. and complementary through win-win processes empowering a leading These are our further comprehensive institutions collaborations company the our financial technology, institutional

operations are further optimize core exploring costs. on acquisition Further, to also borrower we

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company's long-term development. the risk performance the optimizing Continuously [Interpreted] and borrowers cornerstone stable for of the is

to we of observed risk sustainable factors improvements speed quality still will pursuing early efficiency. in first continue growth we risk scale indicators the and have while achieve to development quarter, prioritize development and among Although balance some some the and of

XX level. new borrower XX expectations, delinquency ability refined our maintaining at to a The in thanks relatively remaining reached proportion control our X.XX% meeting and to identify groups rate for strategy. risk days The quarter, XX% more high-quality borrowers of this stable

borrowing In increase addition, a the of average RMB XX,XXX, [ the was representing XX.X% first year-on-year borrowing in amount per ]. quarter

channel on continuously apps acquisition the raise of growth of mini also increased In proportion cost, users platforms. performance target deepening metrics, good vitality. We leading model with and we the focus optimize innovative through the and continuously risk our addition to original to borrower more borrower acquisition on have Internet striving maintain

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achieved business In optimizing registered product in structure the business [Interpreted] in the newly number Indonesian our quarter. actively partner first XX% market, results favorable local to increased overseas Our requirements. through users the quarter-on-quarter. entity regulatory new local of Well response

in was institutions financial first aiming partner facilitation X further learned loan have Indonesia future. in the business of in the local We in with to our that discussion the volume expand business quarter, Indonesian licensed

quarter, in region. steady with our borrowers. new loan towards favorable an stabilized in progress exchange increase performance in the and the conditions Nigeria market At same the for rates business volume gradually The the borrowing end further of expansions time, the providing showed amount of this local

business in entity Mexican rapidly the grew local scale in quarter. we the this also invested market, In of the lending

addition, future will focuses expand are In of actively to key one regions we the exploring also group's and business the be more to of development. overseas overseas opportunities

further our investments We overseas in will increase businesses.

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in finance [Interpreted] We consumer place rights always emphasis anti-fraud on great and protection services. efforts

firewalls, in this in and on of responding on consumer XXXX, the beginning anti-fraud achievements consumer service paper customer of the efficiency, external consumer Our rights protection, protection including improving operation building and innovating company's elaborates systematic cooperation year, released protection education. and at quality the white strengthening

from manually potentially disposed high-risk XX,XXX illicit in XX,XXX fraud of terms -- first and and prevention [ quarter. attacks applications we company's industry identified control and the for from malicious the that and borrowers In quarter prevention and of cumulatively report the first anti-fraud, ] reviews have blocked investigated

addition, effectively well and conducted combating mechanism, anti-fraud lectures establish In as industries green illegal a as has company the cooperation intermediaries. departments law enforcement financial and to jointly with collaborated black

the a the safeguard Leveraging market contribute company financial of technological providing the and has line to security purifying built defense continuously to solid environment. borrowers financial innovation anti-fraud

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Based the our distribution tranche confidence sustained dividend [Interpreted] the and I the first company's on in plan the pleased reserves, company's announce cash of XXXX. of future for ample to growth am company's

separately dividend cash plans the USD to regarding details a the Further dividend Board announced X.X of company further confirmation relevant this The distribute and by be ADS. per after Directors. will payout dates of

previous repurchase raising approved period the limit the the XX, repurchase XX Board of plan current the plan to extending share recently quarter, validity of USD of share and With further regard to the Directors approved June million, XXXX. upper plan, the repurchase in to

In among the gain future, the investors in will confidence sense we of boost reward their continue company's long-term to shareholders, enhance and our the development.

risk set the for XXXX billion. the the RMB of level of business guidance demand second considering volume Finally, quarter and loan have for of decided market the to facilitation growth, we at XX

Language] [Foreign

the Please Thank [Interpreted] Mr. With call that, turn I Fan will Chunlin. over to you. go ahead. CFO, our now

highlights and Yan, for I today. for you, Thank financial now hello, call our review will Mr. joining the our quarter. everyone,

refer year-over-year all in percentage Please unless and note changes otherwise that comparisons, numbers all RMB to will noted. be

in As first the Mr. strategic our successfully quarter. mentioned earlier, Yan company its targets achieved

facilitation to XX.X results. We financial recorded Notably, volume loan billion. have grew by XX.X% RMB our also solid

about net XX.X%, XXX.X billion, million Our other million the last up was revenue dropped from revenue XXX.X RMB same to our X.XX period as RMB RMB in year.

of of an volume. XXX.X% increase costs expenses increased guaranteed costs. and were million, Moving RMB from due facilitation service on period same representing XXX Facilitation primarily the to an increase of loan incurred XXXX, to the

Allowance quarter RMB of million others RMB X.X XXXX. for the first assets, receivable loans uncollectible was contract receivables, compared in million, with X.X and

expense lower Sales of primarily decrease a and representing same was RMB marketing X.X% expenses. the from commission of to million, XXXX, due XXX.X period

compared million, of G&A first expense in XX.X million the XXXX. was quarter with RMB RMB XX.X

expense million, number compensation of benefits to a RMB representing R&D an primarily increased. same employees research due and higher XXXX, of as our from of increase employee XX.X% period was the development XX.X

decrease XXX.X X.X% million, representing a from net period our in XXX.X of the quarter the RMB income was first million same of XXXX. Consequently, for RMB

X.XX per XXXX. to RMB of share both ADS X.XX Our compared net the first per income diluted RMB was RMB were quarter X.XX first RMB diluted to the net basic and in income quarter in XXXX. and Basic X.XX compared of

our are a in significant We quarter. cash improvement this position to pleased report

highlights As increase substantial our of and cash XX, growth XXXX, March financial from strong RMB equivalents the end a and at cash XXX.X discipline our efficiency. XX, operational reached This XXXX. million, million of December XXX.X RMB

Xu, that, proceed. call will can Operator, the for our your Chief Officer, With open questions. please questions. I we and answer Ms. Risk

We will now our Instructions] first [Operator question. take

is line from the First [indiscernible]. question of

I and [indiscernible], X [Foreign questions. Language] I'm have

the for growth, slowdown is one future? quarter please XX.X%. of year focus previous of Could volume first company's the facilitation channels the by the the the growth? rapid compared first in acquisition this the explain to loan the main will in borrower reasons primary be Which increased period you in The

please to second million is of this reason the XXXX. fourth the you RMB the fourth this? all. nearly explain My by compared by for first the the increased question the decreased cash quarter end revenue year quarter Could of The in quarter. position That's of XXX

[Foreign Language]

your answer [Interpreted] and you support first question. Yifang. about long-term and will for I'm question, your Thank your thank I us, on Xu you for

[Foreign Language]

[Interpreted] Okay.

the attributed our to years X includes decade over So reasons. growth industry in dedication after transformation since a recent XXXX, of our in exclusive -- is the

First industry through operational growth. risk accumulation the and the is market the users, of the of clients, management capabilities. development and borrowers is second accumulation the And in-depth

Language] [Foreign

framework, that a we this stable, XX.X% performance the dynamically orderly landscape [Interpreted] With a for of remains quarter development still regulatory the steady a growth. have and industry's relatively competitive solid also advancement market with achieved

[Foreign Language]

the business growth the risk and cautious So we credit market are that observed and operations from consider assessments. systematic [Interpreted]

While we maintained cautiously remains its trend, positive regarding environment optimistic outlook a level. the macroeconomic

Language] [Foreign

was growth -- is acquisitions. borrower The from thing [Interpreted] one growth our the from that so

on the We of the in current high-quality acquire prudent market, management borrower particularly of the expansion in rational focused and on borrower the continue And base. development hand, to and risk upstream pursue segments. operation we our actively other force

We attracting aiming services the and retaining diverse risk high-quality are breakthroughs differentiated products currently incorporate considerations, further and exploring in for borrower and development of groups. that

[Foreign Language]

just as our the borrowers, current important important. also as new are So [Interpreted] boards very

will growth considering both risk will the in the we potential for profit. future, and we So look so --

[Foreign Language]

we in that we with are talked and this ongoing borrower [Interpreted] differentiated our that have capability just So is for to exploring also, products the talk groups. our operations. borrower services enhance And we risk, -- our high-quality in aiming before as strategy managing high-quality are we like line about

[Foreign Language]

Mr. [Interpreted] for This your that? Fan question, can [ for And question. ], is second your first my you answer answer

Language] [Foreign

[Interpreted] Okay.

RMB QX the XXXX. X.X in of has There a decrease the first some billion So X.XXX for RMB billion, which was in are the that. quarter revenue XXXX, reasons from

coming proportion this higher is that and expected loan reason guaranteed from structure has first changed a to services. The revenue trend from And proportion origination the is services with lower continue.

As I for mentioned lower. margin income before, profit guaranteed the have is

revenue So operating the improved optimization margin. company's the profit the structure of has

the Jiayin's to income the the is year. quarter has of quarter fourth from about XXX an million, first operating in And That's first the RMB cash more operations significantly reason. was the million of in which RMB than the flow XX% compared increase And increased. XXX previous

[Foreign Language]

performing [Interpreted] is well. the are recovery the continuously is released. reason up So margins in tied the second being And that funds accounts receivable our very

[Foreign Language]

the are picked X RMB amount the total cash XXX first out other million. but in the than remember, about So these also with quarter, had main we dividends of that, [Interpreted] reasons,

balance cash you're company's if higher. in even part be of counting So will the this cash,

Language] [Foreign

Okay. [Interpreted]

continuous the sustainable development the for lay company's the and shareholders company's long-term future. the a flow in returns of foundation for So better solid will cash optimization

continue Just our dividend commit before, policy. like Chairman Yan, pay said to will out to continue our what dividends just the in to and we Mr.

XX, of And share extending further have can the repurchase the of that we XXXX. the period also, of to you June plan see approved valid Board Directors recently the

will continue our shareholders, to better reward So our we in reward the future, shareholders.

now next line question. will our [indiscernible]. We is take of from the This

Language] [Foreign

Okay.

This do questions. [indiscernible]. me is Let translation. And the I X got

for reason first the both trend slightly and the quarter the you on But And The explain management Could company's first facilitation is, volume year-over-year future revenue net in the increased one income that? please XXXX. color could provide net more margin? of declined. the our

interest for The reduction? company's any the question target I effective requirements for business. key the noticed overseas that contract the the is, have the measures Indonesian have What for are regulatory that? market company second Indonesian on company's the view rate Does is the

[Foreign Language]

[Interpreted] Okay.

increased XX.X% volume the in by So loan year-over-year year-over-year. the revenue XXXX, of and quarter first facilitation our by increased XX.X%

However, decreased the by X.X% net profit slightly year-over-year.

some I as there reasons follows. think -- are main are

second the increased change So reason The rapidly. half. XXXX, especially the structure is year of our -- in throughout revenue about guaranteed the services first company's that the from in revenue

margin to lower kind And revenue, loan this is so services. compared of revenue our facilitation the profit from this

and slightly this year-over-year R&D in due the And decreased our If and in improved That's expenses efficiency. year-over-year, G&A operational S&M both continued factor, investment to reflecting research amounts we development. exclude our first absolute technology expenses our reason. increased

[Foreign Language]

about second decline the of our rate. [Interpreted] So reason is the take

volume loan year-over-year. So take quarter decreased facilitation facilitation although XXXX, loan company's the first increased the year-over-year the overall the rate of actually of services in

[Foreign Language]

[Interpreted] Okay.

the future want to about more of profit information. trend talking our margins, I talk So some

will So the cycle, one. That's benefit rate some relatively be decrease firstly, downward but take interest to rate be our within pricing there and our the will borrowers. steady first

Language] [Foreign

our revenue. about proportion [Interpreted] guaranteed decreasing is of The second service

impacting overall the services Just revenue margins. from continue proportion decline, guarantee positively which to as what the will profit I will mentioned of before,

[Foreign Language]

operational efficiency. is one and about third growth a stable The

growth in also our which effectiveness impact profit efficiency, scale with margins. continuous improvement operational further will So positively improve, cost in robust and will

Language] [Foreign

focus [Interpreted] factors our we healthy in the that will growth in the the balance is development ensure to also So and a future future. our risk

[Foreign Language]

[Interpreted] is Your second Xu about our question. your will let business. to Ms. I overseas answer second question

Language] [Foreign

market. the [Interpreted] Indonesian So talking about

the rate explore as reflects a reduction policies the see development. and And we upon long-term industry from recognition the and management Although industry's long-term challenge in safeguard approach it additionally, interest of for poses operators, of the industry's continuously regulators for it potential a strength the designed to development. their also --

Language] [Foreign

are and for the our frameworks expectations. the products services. rapid demand and in policies adjustments also of the the systematic With more perspective the various their regulatory becoming high-quality from [Interpreted] within clients' reflects especially iterations fintech This industry's development industry, and aspects, are and the

Language] [Foreign

[Interpreted] Okay.

will interest types and So of regarding X the in meeting these on rates reduction firms challenges you just mentioned, the challenges. give advantage

adjustments companies for has in [indiscernible] users. The their platforms due the are more in kind which have market accumulation the of for that data and long been first time, of a the to dedicated room also

to with outstanding and refined second capabilities pace operational capabilities and the The to market adjustment that new adapt accelerate iteration companies is can they risk technical management their requirements. through

[Foreign Language]

understanding, Jiayin we for but [Interpreted] Indonesia have as considered cannot very have been a knowledge about time, some although So long experience. talking we it in already be and Group, time, operating some gained

Our in the long-term experience respond new interest rates. and and us requirements upon refined operations adjust to management allows risk quickly to

Language] [Foreign

of of half in new improvements [Interpreted] rapid the we Indonesian rate So in our market year, positive in business have the requirements. interest under seen first this and various indicators

And next, scale committed the and So market. in next to step, forward Indonesian business for we development breakthrough this to our of look further we are development market. the long-term in overall, the in

Language] [Foreign

[Interpreted] for that's in the business That's market, our Indonesian about all opinion me. and our

Please return remarks. to the more no will questions, go call for ahead. Seeing I closing Shawn

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

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

now disconnect. may You