Jiayin Group(US:JFIN)2021-11-24 14:32Financial Data and Key Metrics Changes - The total loan origination volume reached 6.7 billion RMB, representing a year-over-year increase of 100.2% and a sequential increase of 17.7% [10] - Net income was 124.8 million RMB, a 41.2% increase compared to 88.4 million RMB in the same period last year [10] - Net revenue was 577.1 million RMB, up 43.8% year-over-year, driven by significant growth in loan origination volumes [11] - Total operating costs and expenses increased by 68.4% year-over-year, reaching 423.2 million RMB, with operating costs as a percentage of revenue at 73.3% compared to 62.6% in the same period last year [12] Business Line Data and Key Metrics Changes - The company resumed its marketing program, focusing on acquiring higher credit quality customers, resulting in a repeat borrowing rate of 69.1% for the quarter [6][7] - Other revenue decreased to 40.3 million RMB, down 47.7%, primarily due to reduced revenue from P2P related services [11] Market Data and Key Metrics Changes - The company has expanded its funding partners to 36, with an additional 42 institutions in discussion, indicating a strong growth trajectory in the consumer market [5][6] - The company is focusing on small business owners, which are seen as a backbone of economic development, and is gradually rolling out loan programs for this segment [6] Company Strategy and Development Direction - The company aims to diversify its funding resources and broaden collaborations with institutional partners to capture opportunities in the growing consumer market [5] - There is a strong emphasis on corporate social responsibility (CSR), with initiatives aimed at improving educational environments for children in need [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining top-line growth and capturing opportunities in the consumer market despite a cautious approach to new offerings [5][6] - The company has adjusted its full-year 2021 loan origination volume guidance to between 20 billion RMB to 23 billion RMB, representing a year-over-year growth of 72% to 98% [16] Other Important Information - The company ended the quarter with 178.5 million RMB in cash and cash equivalents, compared to 141.4 million RMB as of June 30, 2021, providing greater flexibility for long-term growth initiatives [15] Q&A Session Summary Question: Can you discuss the success seen in the new online advertising? - Management noted a 36% increase in sales and marketing expenses, with half attributed to marketing fees and the other half driven by new marketing initiatives, leading to improved cost efficiency for acquiring new borrowers [18][19] Question: Can you provide details on the new products for small businesses? - The focus is on micro to small businesses, with loan sizes expected to be 20% to 30% higher than current offerings, utilizing online acquisition channels for customer evaluation [21][22] Question: What updates are there on international expansion? - The company is making solid progress in international markets, particularly in Mexico and Nigeria, while still working on solidifying its position in Indonesia [26] Question: What is the outlook for credit costs and customer credit quality? - The drop in credit costs is attributed to improved credit quality, with most uncollectible allowances related to previous business models now being phased out [30][31] Question: How is the integration of Bweenet progressing? - Due to regulatory challenges in China, operations in this segment have been halted, but the company is exploring opportunities overseas and monitoring regulatory changes [33]