Jiayin Group(US:JFIN)2024-03-28 15:15Financial Data and Key Metrics Changes - In Q4 2023, the company's loan facilitation volume was RMB 20.1 billion, an increase of 6.3% year-over-year [9] - The total loan facilitation volume for the full year reached RMB 88.1 billion, an increase of 58.7% compared to 2022, achieving a new historical high [9] - Q4 2023 net revenue was RMB 1.6 billion, an increase of 51.8% year-over-year, while annual net revenue reached RMB 5.47 billion, an increase of 67.1% year-over-year [9] - The company's net income for Q4 2023 was RMB 367.6 million, a decrease of 31.1% from RMB 533.7 million in the same period of 2022 [23] Business Line Data and Key Metrics Changes - Facilitation and servicing expenses were RMB 857.2 million, representing an increase of 329.1% from the same period of 2022, primarily due to increased loan facilitation volume [22] - Sales and marketing expenses decreased by 11.9% to RMB 329.5 million compared to the same period of 2022 [23] - R&D expenses increased by 44.3% to RMB 92.9 million, primarily due to higher employee compensation [23] Market Data and Key Metrics Changes - The balance of various types of RMB loans from financial institutions amounted to RMB 237.59 trillion at the end of 2023, an increase of 10.6% year-over-year [11] - The demand for consumer credit services in the Chinese market remained robust, supported by various government policies aimed at stimulating consumption [10] Company Strategy and Development Direction - The company is focusing on technological innovation and risk management as core competencies, aiming to enhance market share and operational precision [8] - A strategic shift towards technology was marked by the company's name change to Jiayin Technology, emphasizing the application of AI in business operations [12] - The company aims to maintain a focus on technological innovation and expand its business scale while managing risks effectively [18] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenges posed by the macroeconomic environment, including slow economic recovery and geopolitical conflicts [7] - The company is optimistic about future growth, setting a target for total loan facilitation to range from RMB 93 billion to RMB 98 billion for 2024 [18] Other Important Information - The company has distributed two cash dividends totaling US $0.80 per ADS, accounting for 25% of the company's net income after tax for the fiscal year of 2022 [19] - As of now, the company has repurchased its ADS for approximately US $10.6 million, with plans to increase the repurchase limit to US $30 million [20] Q&A Session Summary Question: Measures to keep delinquency rates low - Management acknowledged the increase in delinquency rates and emphasized the implementation of enhanced risk management strategies and borrower experience optimization [25][26] Question: Future dividend policy and payout ratio - Management confirmed the commitment to rewarding shareholders through dividends and share repurchase plans, with a focus on maintaining a sustainable payout ratio [27][28] Question: Adjustments in customer acquisition channels and risk control - Management outlined plans to enhance borrower acquisition strategies, focusing on high-quality assets and improving risk management through data analysis [31][32] Question: Factors behind the decrease in net income and accounts receivable increase - Management explained that the decrease in net income was influenced by a high net margin in Q4 2022 due to a one-time tax benefit, and they will continue to focus on facilitating and risk control services [34][36]