Q1 2021 Jiayin Group Inc Earnings Call
[music].
Good day, ladies and gentlemen, thank you for standing by and welcome to the GI and group's first quarter of 'twenty 'twenty 1 earnings conference call on.
All participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time ASIC and.
Binder, we are recording today's call. If you have any objections you may disconnect at this time.
I'll now turn the call over to MS. Julia Chin.
Managing director of the Blue shirt Group Asia shall proceed.
Yeah.
Hello, everyone. Thank you all for joining us on today's conference call to discuss cash flow.
And I shouldn't read out for the Red Cross.
And what do you want.
Earlier today the press release is available on the company's website as well as wild citizens on.
On the call with me today.
And Gwen Chief Executive Officer, Mr. Healey buy and then.
They are true.
<unk> financial Officer and then.
He said he's on his officer before we continue keeping those that today's discussion contains forward looking statements made on the safe Harbor and we can pause.
And the U S Private Securities Litigation Reform Act of 1995 forward looking ceiling and wall.
And on Clifton team as such the company's actual results may be materially gifts and holiday.
Thanks for taking this.
For us today for the information regarding these and other risks and uncertainty.
And he is included in the company's public funding was the S. E. T. The company does not assume any obligation to update any forward looking statements except as required under applicable law also please note that unless otherwise and see all this as I mentioned during the conference call I and Chinese on.
He wakes up and.
Let me now turn the call over to our CEO Yung Kim Qua, Mickey and was teaching and training and then our call here for city by would translate he's common English boy had needs for yen.
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Oh, Hey.
Hello, everyone. Thank you for joining on.
On the earnings conference call wait for it.
Sorry, the business growth.
And the charter, leaving us on a great start to the year.
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Loan growth driven by our successful integration and the rapidly growing demand from institutional partners.
Reached RMB 4.2 billion.
44% and year over year growth.
Not really net income come in and RMB $93.7 day, a 137% year over year interest compared to $39.5 million from us and periods of 2020. This.
For the business and the financial results of that and indicators of our sound business strategy and execution capabilities.
Shall I will let John tell them and juniors.
Yes.
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It turns out.
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Jim for some items for Nike.
Okay.
Are you on the Nielsen So don't fight and she she don't come so for a minutes on teaching yes, you do.
Well I'll, let you go the other for basketball on so not for us about child care, and new especially with chico's and to share some of them.
And it's fully downtown and table for that.
Now allow me to share our key strategies for 2020, 1 first well they'll continue to drive organic growth and China.
And in partnerships with financial institutions by leveraging our sophisticated risk management system and for Whiting customize the solution.
Thanks to our early development and process automation and seamless system integrations are for.
And kind of increased to 28 in Q1.
And in discussion with another 46 institutions and mean to for further and publish it.
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Xiaomi and <unk> and it should have for Chile digital for Chili's and dozens of thousands of tissue.
Our sophisticated credit assessment system produces behavior or drive and analytics that our customer acquisition and irritation and trust is leading us to have the ability to for that from high quality for our well maintaining kind of for customers.
From a higher repeat borrowing rates.
74% in the fourth quarter.
Compared to the 70 per cent and Q4 tens and twenties.
When viewed on a purely we choose carefully.
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And for that entire tenure serious generally for so long.
For me.
We also published the argument.
Total, which have shown that factory improvements and and maintain the upward trends we.
And we will continue to invest and tech knowledge and true.
Efficiency drive growth.
Well as net asset quality at a good level for the rest of 2010 for 1.
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And somebody you chartered and.
Secondly, we are making prudent and overseas expansion.
And I can and entering market, where our technology has a competitive edge and and can make a significant difference.
For Southeast Asia, we see Indonesia, as a key market with huge potential is and if there is award for most populous country and has demonstrated steady consumption growth and increase and individuals and that was.
With a robust and local stock market feeling income us and the tech and innovation.
Through established partnerships with local enterprises.
My for risk management models, and the technology platform.
Making great progress and are well positioned to lead accelerated the growth was weighted stuffing Tech all island and that's it.
Which would be expected with index for 1 or 2.
Yes.
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Peter.
And you juniors and seniors.
And also if you're changing the people 10 people.
We are also enter into the ethics and market, which presents unique opportunities to easily build out our platform in a range and continuously leapfrogging to the next generation of technology.
We established our force the African business and Nigeria after rigorous research and other diseases.
And the successful operations.
Virus early Chinese enterprises product and service will be rolled out with a conservative approach and the gradual.
So on and I made soil.
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In addition, and South American market is yet another important market and.
We are doing very well and are maintaining our leadership position despite increased competition for.
For him for quality growth, and we'll continue optimizing and strategic execution and operations.
For me there and keep it holds the channel could you father Tejas hanging fruit the gmg and we can could you and Sheila Cushing tankage on.
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Sunbeam and Xiaomi will be the case.
And in general for initial interest.
Do you feel it and what's a kid cancer Xiaomi for insulin shot you finish and you'll share total yields on cost and debt.
Well music on that but really ones.
Thirdly, we will continue to invest in financial technology development and activity participants and digital economics as a key player and the Fintech evolution.
Blockchain and I'll build on principles for transparency and security and stability on.
The thing that evolution is a crucial turning point, where perhaps a blockchain technology and digital currencies.
Expected to profoundly impact on society.
As shared in our last earnings call and that is primarily focused on crypto currency related to the tech knowledge for mining hardware design and distribution to mining management. There are limits the downside risk is there.
And that itself that's not mine cryptocurrencies.
With the integration of balance and the operations functions Saturday progressing we expect completion within this month.
You have also read from channel to LIBOR.
And so it will achieve a total opportunity.
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The change on numerous hydrogen on could you just wanted and father Bill.
And that business development and operations will be under and independent and separate team.
And with more institutional investments or other more use cases and the financial sector.
<unk> growth potential is especially significant.
Our strategy is to be flexible and participate in financial technology development within <unk>.
Limited downside risks and have no impact.
Impact on our kinds of business operations.
India, and China chocolate tends on the net well necessary other owners.
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And.
In conclusion, 'twenty 'twenty, 1 will be a year of accelerated growth. We have developed our top initiatives to execute the strategy I, just outlined and I am confident for our team will be able to deliver outstanding results.
And now we don't get on watch early on and Yonker for detailed Gwen and seniors.
<unk> and tissue with that I will now turn the call over to our quote to cash.
Please go ahead.
Thank you and Mr Yan and Shirley and thank you everyone for joining our call today, that's the Missy and Justin mentioned, we kicked off 2021 planned out with impressive financial growth and our medical business progress, placing us firmly on track to a trip out growth pockets.
Now let me go through our financial highlights for the quarter before I go into details. Please note that all numbers presented are in RMB and are for the first quarter 'twenty 'twenty, 1 unless stated otherwise.
For percentage change on that year over year basis, unless otherwise specified.
And the interest uptime, and I will not walk through each items on line on this call I will just highlight some of the key points here.
No origination volume was $4.2 billion RMB up 44, 1% year over year and 35, 1% sequentially.
That's remarkable and it was also the strongest growth since our IPO.
Demonstrating the success of our rapid business transformation, which laying the good foundation for us to continue to be a chip for robust growth in the coming future.
Net revenue was $343.1 million RMB up 9.4%.
This increase was primary due.
Due to the increase of revenue from loan facilitation services, which grew by 24, 7% year over year to tier 329 billion RMB.
Other business grew by 8.3% to $22.2 million RMB.
The increase was primarily due to the development of our overseas business.
Moving onto costs, we continue to optimize our cost structure to further improve operating efficiencies.
In Q1 total operating expenses were $229.3 million RMB down 12, 6% from $262.4 million RMB luckier.
And on duration and servicing expenses for $64.1 million RMB.
0.3%, primarily due to the increase and credit assessment expense, resulting from higher long argument.
Partially offset by reduced collection costs.
Company, there's no longer provide such services under its new business model.
That was for uncollectible receivables and contract assets long receivables and others was 8.0 million RMB <unk>.
73, 7% from $30.4 million RMB and the same period of 2020.
The decrease was.
Due to the relatively lower credit risk on new business models.
G&A expense was 37.8 million RMB down 1.3%, primarily due to lower rental costs, partially offset by the increase and the other business related expenses.
R&D expenses was $28.1 million RMB.
On 22, 8%.
This was mainly due to a more streamlined team and technology related departments, and we continue to improve our operating efficiencies.
Sales and marketing expenses were down 2.4% to 91.2 RMB million mill and RMB, primarily due to a decrease in share based compensation expense, partially offset by higher borrower acquisition expenses.
We achieved a chocolate and profitability through our long volume growth and improved operating efficiencies.
We posted net income of $93.7 million RMB.
137, 2% year over year, and 15, 5% sequentially.
We ended the quarter with $123.3 million RMB cash and cash equivalents compared with $117.3 million RMB as of December 31st 2020.
Moving to our guidance.
Given the recovery of Chinese economy, and a fast growing consumer finance market free.
Expect our loan origination volume in second quarter of 2021 will be over 150 per cent of growth feared over a year and a 35 per cent to 45% of growth for sequentially.
With that we can open the call for questions Mr. Yan out.
Mr shoot.
And our chief risk officer, Mr. Hu, <unk> and I will answer your questions.
Sir Please go ahead.
Suddenly, ladies and gentlemen, and begin and I'll begin the question and answer session. If you wish to ask a question for you stretched star 1 on your telephone keypad and piece for you for your name to be announced.
We have the first question. This is coming from the line of Andrew Scott from Roth Capital. Please go ahead.
Hello, and congrats on the strong results and and thanks for taking my questions and so the.
First question here on that.
And I see the model is really showing the successful execution.
We're making with the transition to institutional partners, and especially shown and the stronger gross margins you had in the quarter can you just maybe talk about the efficiencies you're realizing and you discussed on the call that are helping driving the strong results.
Yes so.
This is Sylvia and I will take this question.
So yes.
Yes.
And as Andrew Hi, Hi, Andrew.
As mentioned, we have successfully exited a pizza business so cute.
Loan facilitation model, so and the first quarter.
We have seen very strong increase and along for Constitution volume and also we have seen some cost savings under different expense items. So as we mentioned and the.
Commentary given the recovery of dumped Chinese economy and of course growing consumer financing market, we actually have a very good confidence to grow and expand the book as we did and the first quarter. So we expect that our loan origination volume.
Grow continuously and the and.
And the remaining quarters of this year and we will continue to improve our operations efficiency and to maintain.
They're very profitable very good profitability.
Yes, great. Thanks very much.
Sorry, I didn't want and figure out there on that.
And second question for me, if I may on R&D expenses and it looked like they were down substantially and the quarter can you kind of talk about your expectations there going forward.
Okay. So yes, the R&D expenses were down 22, 7% year.
Year over year, because because we have successfully exit for the pizza business. So we actually.
It made some efforts to streamline our technology.
Technology technology departments, and we optimize the personnel scheduling and related human resources, So and that way, we have a more streamlined team and technologies.
So going forward and so we see some savings and.
Related salaries and compensation and also the share basically yeah share base compensation and so going forward, we plan to improve our R&D investments to continuously improve our technological capabilities and efficiency to propel.
For further growth for the company and if you look at the.
Absolute number I think it's a very good indicator for the remaining quarters of this year.
So I think we are going from this level and we plan to improve the R&D investment level from here.
I hope that.
Yep.
And I was very helpful.
And actually if I may I was very excited to see on the credit quality numbers and.
Disclosed in and the released this morning and it definitely reflects the shifting institutional funding. So can you just kind of and provide maybe some commentary on the numbers, there and expectations going forward.
Oh sure Thanks, Andrew for the question.
Taking all of your questions on that.
So and cutting costs.
And that's awesome.
Yeah absolutely.
Okay.
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Quality customers.
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Income starting from the early last year and 2020, if you'll recall on.
And we're trying to position ourselves for a job.
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Institutional funding partners.
So you can see that credit.
And what's the numbers continue to improve over time.
We are.
How come from multiple fronts, 1 from Oh from acquisition.
Acquisitions will watch on that.
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And we're able to really focus on local customers.
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Credit outlook, well with Pablo.
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Hey, Mike.
And our portfolio net.
And thinking about it.
Okay.
Yeah.
Great. Thank you guys.
Extremely helpful.
Well so I appreciate the update on the acquisition and you provided on the call on can you maybe just talk through some of the next steps are you guys have moving forward.
It's a great company and anything else that needs to be done over the next few quarters.
Yes interest area. So currently we are and the middle and integrating the functions of finance operations and other.
Supporting functions and so we expect to complete this consolidation within this month and by the end of June So and and that's where all for the for year, we estimate data Freenet would contribute an additional 20% off net income if we can fix.
<unk> current business and strategy and.
As we have been highlighting and the commentary earlier and free Nowadays primarily focused on crypto currency related technology mining hardware design and distribute into mine mining management, so actually bring that doesn't directly engaging cryptocurrency issuance.
And where you can change something like that so from that point of view. Currently we are operating this business fully complying with the regulatory requirement and we will.
We will.
And I observe and watch very closely and make sure to adjust our business if necessary and have kept our operations within the regulatory framework.
So that is basically yeah.
Yeah, the status of our M&A deal.
Thank you very much and then last 1 if I may the.
30% to 40% sequential on origination growth was great to hear that's very exciting for true Qq's and talk through your expectations through year end and it if you have a it.
It looks like it's.
Acquired from new customers. This quarter. So any commentary you can provide on that adding people for the platform as well would be great.
And just keep on Mccann and say I'm going to take 1 more question can you give me people for that.
Second half of your question again.
Yes, there'll be a repeat borrower.
And it was down sequentially. It looks like you were successfully added new customers to the platform. So any commentary you have there with and say okay.
Sure.
Well we are.
Next quarter.
Just out of range from 30, 30.40 range.
Change.
From quarter to quarter.
Okay.
But other than what we have.
And this quarter.
Well I don't we don't have that number.
The overall, yet but I am.
And stronger for the second.
Hum.
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And take the numbers.
And just looking at other Q1 up on as well.
Okay.
And finally coming from coupons and 1 is.
We are transitioning for the Costar peaky.
People.
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Yeah.
And she can partners Inc.
It's significant and I'm confident.
Confidence and interest on our platform.
Adjusted professional.
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Performance on that yet.
Yep.
We are seeing more.
Hum.
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On them today.
On a healthy pipeline for Golden point.
From a funding.
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On long from smoking screaming and similar.
On traction for them. So in Q1, we are in.
And we'll see.
Keep in touch them on.
Portfolio and you can see on repeated percentage off I'll repeat it for 2 people thought well for me.
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Moving to Austin.
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Why shouldn't into all the details on how are we on.
And what the customers.
Trying to improve on.
Thank you Mike.
Oh and gets moving.
Well on the new vehicles from competition from them.
On the Q1.
Net net.
That's true 1 of them and we want something more talking on.
Thank you touched on it.
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Setting tool for on Q4 Covid threw out.
And.
We all find customers from full spectrum.
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Channel, including and.
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Net income.
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Acquisition cost.
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Marketing channel metrics.
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On the Q.
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And how you can think of that portfolio mix demand instruments and bid on.
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Let's move on to take a.
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Well, we will maintain a very healthy buffer for Washington.
On and on all the other way.
Oh that simple.
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And on specifics.
You're trying to make sure that I'll be honest gaming growth.
And on a cost and so on.
And he came in quite a bit.
And that's Oh.
Okay.
And so on the lending.
And in terms of volume.
Hopefully that won't be fully.
And so disappointed.
Oh and continuous growth our institution partners on that.
In the second half for snow.
And I don't see a much stronger.
Second half.
Yes.
[noise], Craig and thank you very much and once again, congratulations on the strong quarter.
Okay.
Thank you once again, ladies and gentlemen, it is star followed by 1 and if you wish to ask a question.
[noise] seeing no more questions I will return the quality and it's Jim.
Go ahead.
Thank you operator, and thank you all for participating on today's call and thank you for your support and we appreciate your interest and look forward to reporting to you again next quarter on that progress.
Okay.
Thank you.
Thank you, ladies and gentlemen that concludes our conference call and can speak.
Thank you on for your participation you may disconnect now.
Yeah.
[music].
[music].
[music].
Good day, ladies and gentlemen, thank you for standing by and welcome to this young and group's first quarter of 'twenty 'twenty..1 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 and today's call. If you have any objections you may disconnect. At this time I will now turn the call over to MS. Julia Chin.
Managing director of the Blue shirt Group Asia, Jim. Please proceed.
Hello, everyone. Thank you all for joining us on today's conference call to discuss <unk> growth, but and I shouldn't read out for the free cost of funds with 1 day..1 we released the result on each day. The press release is available on the company for websites as well as strong as wireless services on that.
With me today on the Korean English Chief Executive Officer, and he can.
Jerry by and then India chain called Chief.
<unk> financial officer and and.
And so she saw him he's written off and said before we continue. Please note that today's discussion on what hometown and forward looking statements made on the same composite makes them on.
The U S private and secure they keep the divisional recall them at 1995 forward looking and ceiling and wall.
How is free and uncertainty and such the company's actual results may be machinery and all.
Thanks for taking the express today for that.
Information regarding these and the operations and on certain who is included in the Companys public funding and was the S. E. T. The company does not assume any obligation to update any forward looking statement, except as required under applicable law also free no not oh, that's otherwise and state all the free.
As I mentioned during the conference call on you and Chinese on heat waves that let me now turn the call over to our CEO Yankee and quake, Mickey and was teaching and training and then I'll pause here for a share do you buy would translate e-commerce to English boy had needs for yet.
And your alcohol.
And yet <unk>.
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How about your teeth, you'll hopefully.
Well known for either with shallow and agenda, you'll Windsor should allow our Union group now.
Hello, everyone. Thank you for joining our first of all her and him on.
Earnings Conference call and wait.
You have about the Saudi the business growth.
And this quarter, leaving us on a great start for the year.
And on site and cheap for you and showed a favorable financing zone.
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<unk> is on fire.
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And so it shouldn't it and then be sanctioned and feel that we're shall I and <unk> zone patterns and ebay essentially cheap so just yesterday and he held Bobbio total opinions on the woman and when you're in a year and truly what's the human.
Loan growth driven by our successful integration and the rapidly growing and smoke from institutional Congress reached RMB 4.2 for lease up 44% and year over year growth.
Not really that's income come in and RMB $93.7 day, a 137% year over year interest compared to RMB $79.5 million from the same periods of 2020.
This for the business and the financial results of that and indicators of our salt business from our strategy and execution capability.
Shall I will let Joe and Jonathan Junior and that's what I thought.
So he is well and guarantees it head on and Thats, something well here with Keith and Don can.
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And you get close and why did you you're fine.
Jim for Salt life.
Okay.
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Well I will let sheila for the for basketball on but not for us about job, Neil, especially we got T bills and to share.
Some of them.
And that's 1 downtown on cable for that.
Now allow me to share our key strategies for 2020, 1 first and well they'll continue to drive organic growth from China.
And partnerships with financial institutions by leveraging our sophisticated risk management system, and providing individual customer milestones delicious.
Thanks to our early development and process automation and seamless system integration off on.
And kind of increase of total to 8 in Q1, well and discussion with another 46 institutions and.
And 2 for the further and publish it.
<unk> syndrome is huge and wuxi for shelf relation with the issue for months.
And so you had a couple of horseshoe for loosen.
So I'm gonna and go that path for Sheila quarter pollution, which yielded a shingle.
<unk> dual path and it should have for Chile digital for Chili's and <unk>.
Our sophisticated credit assessment system for <unk>.
And this behavior of drive from the Olympics that fear or customer acquisition and the rotation of trust is leading us to have the ability to for that come from high quality birth, well maintaining kind of for customers.
Dress up and a higher repeat borrowing rates.
74 per se in the fourth quarter and why.
And compared to the 70% and Q4 tens and twenties.
And you do them on purely resilient cash flow.
Okay.
Sure thoughtfully on how.
Sure.
And so you should use for Ya.
She called shown to Linda.
For the entire tenure things for <unk>.
But certainly on housekeeping.
And also a published the RP.
Total, which have shown that factory improvements and and maintained a good strength.
And we will continue to invest and tech knowledge and improve efficiency sub growth.
Asset quality at a good level for the rest of 2010 for 1.
She is food Wilmington, and I can't use and suddenly put on.
From a friendship churn that you choose which is the usual share cliffs has and so on that heat on the cheap.
And kind of cool and we go.
Only Indonesia, so don't match and huge share needed someone else for so it's always forget.
Sudan, and Zimbabwe and.
And neither shelf, England puts Windsor CT and <unk>.
But on total challenging lip and deeply consider maintained solid growth could use function for them.
And hopefully with on each year.
And Glenn things on <unk>, 1 and wishing for European should a lot from that agenda for me Ritchie each other it for them.
Late pushy.
Could you take and third from shippers.
And suddenly you and chocolate and.
Secondly, we are making prudent and overseas expansion.
And the Lucky and the entering market, where our technology has a competitive edge and it can make significantly different.
For Southeast Asia, we see Indonesia, as a key market with huge potential.
And if there is the award for most populous country and has demonstrated steady consumption growth and increasing individual and that was what.
With a robust local stock market filling in colas, and the tech and innovation.
<unk> established a partnership with local enterprises customize the risks and management model and the technology platform, we are making great progress and are well positioned to lead and accelerated the growth last week, and it's still Cleantech, All island and lessons, which we expected with an index of 1 ultra.
And so on me as I've heard of free those homes.
For those who does your sort of price of other enzymes and Wilmington.
But she was on cool people on that.
For you and you were somewhat soft tissue share that's moving.
And so moshe on the newly YOD has on <unk>.
Eugenia E on has.
And I should also a solution for changing the price with hunting and golf.
We are also enter into Africa, and market, which presents a unique opportunities to easily build out on our platform in the range and continuously leapfrogging to next generation of technology.
And we established our force the African business net.
After a rigorous research and obviously I think for a successful operations.
Virus early Chinese enterprises product and service will be rolled out with our consultative approach and the gradual.
So and I mean, it's the way women.
On a knee share.
And George you told me a year on pause for a total team had a use for them and so do you see on God pronounced and piceance issues fuel for finding a fishing and clothing and Guan.
In addition, the South American market is yet another important market and.
We are doing very well and are maintaining our leadership position despite increased competition for.
For him for quality growth, and we'll continue optimizing and strategic execution and operations.
Well I'm going to you could hold for the genome could if other tejas hanging on for the Gmg and we can on could you and Sheila Cushings Haynesville Siobhan Institute home and do.
And changing and issuance of the children oncogenic genome could EG central and 200 and Q4.
So if we at times and it sounds like each other quite against the true.
And so none of them that it sounds like Q2 did you see on how pleased on T. Though be weighted sunblock with xiaomi will be the credit hedges, Townsville, Queensland and the search for yield.
<unk> been little Kid cancer Xiaomi for B E.
Sure as you push annual share total year.
Also on course and debt.
When we get you on that but really England.
Thirdly, we will continue to invest in financial technology development and active and the participants in digital economics as a key player and he was a fintech evolution.
Blockchain and build on Prince and towards transparency and security and stability of the thing.
And that evolution is as a crucial turning point, where perhaps a blockchain technology and digital currencies.
That's true profoundly impact on society and.
Sure.
Our next call beyond that is primarily focused on crypto currency related to the tech knowledge for mining hardware design and distribution to mining management. There are limited the downside risks are still net itself that's not mine cryptocurrencies.
And with integration of finance and operations functions Saturday progressing we expect completion within this month.
Pete you have out for a week and channel to LIBOR.
For me and say the total opportunity views on unit per tons.
And yeah. She turns on xiaomi valuations for military and so that you'll see.
Uhm shot and Felicia for binge on function yields and owning the chen-chiang numerous hydrogen on could you talk and father.
And that business development and operations will be under and independent and separate team.
With more institutional investments and more use cases and the financial sector.
We believe growth potential is especially significant our strategy is to be flexible and the participants in financial technology development.
Limited the downside risks and the impact.
Impact on our kinds of business operations.
On our union and challenges with travel trends on the net well necessarily I don't know what switching channel with that new for.
And Jason will meet them and luxury.
And.
In conclusion, 2021 will be a year of accelerated growth, where it develops our top initiatives to execute the strategies I, just outlined and I am confident our team will be able to deliver outstanding results.
Channel, which aren't they don't want to tell you on and then the uncles and he's held Gwen and seniors.
<unk> and tissue with that I will now turn the call over to our Coca for protections for that.
Go ahead.
Thank you for Mr Yan and Sherry and thank you everyone for joining our call today. That's in this area and Justin mentioned, we kicked off 2021 and was found out with impressive financial growth and a meaningful business progress, placing us firmly on track to a trip out growth pockets.
Now let me go through our financial highlights for the quarter before I go into details. Please note that all numbers presented are in RMB and are for the first quarter 'twenty 'twenty 1 and.
Unless stated otherwise.
And what percentage and are on that year over year basis, unless otherwise specified.
And the interest uptime, and I will not walk through each items on line on this call I will just highlight some of the key points here.
Low origination volume was for 2 billion RMB up 44, 1% year over year and 35, 1% sequentially.
That's remarkable and it was also the strongest growth since our IPO.
Demonstrating the success of our rapid business transformation, which laying the good foundation for us to continue to be a true for robust growth in the coming future.
Net revenue was $343.1 million RMB up 9.4%.
This increase was primary and I already do.
Due to the increase of revenue from loan facilitation services, which grew by 24, 7% year over year to 2.329 million RMB.
Other business grew by 8.3% to $22.2 million RMB.
The increase was primarily due to the development of our overseas business.
Moving onto costs, we continue to optimize our cost structure to further improve operating efficiencies.
In Q1 total operating expenses were $229.3 million RMB down 12, 6% from $262.4 million RMB last year.
On duration and servicing expenses for $64.1 million RMB up 0.3%, primarily due to the increase in credit assessment expense, resulting from higher long arguments from all that.
And.
Partially offset by reduced collection costs as a company there's no longer provide for such services under its new business model.
That was for uncollectible receivables and contract assets long receivables and others was 8.0 million RMB <unk> 70.
73, 7% from 34 million RMB in the same period of 2020.
The decrease was primarily due to the relatively lower credit risk off for a new business model.
G&A expense was 37.8 million RMB down 1.3%, primarily due to lower rental costs, partially offset by the increase and the other business related expenses.
R&D expenses were $28.1 million RMB 22, 8%.
This was mainly due to a more streamline the team and technology related departments as we continue to improve our operating efficiency.
Sales and marketing expenses were down 2.4% to $91.2 RMB million million RMB, primarily due to a decrease in share based compensation expense, partially offset by higher borrower acquisition expenses.
We achieved a chocolate and profitability through our long volume growth and improved operating efficiencies.
We posted net income of $93.7 million RMB up 137, 2% year over year and 15, 5% sequentially.
We ended this quarter with $123.3 million RMB cash and cash equivalents.
Compared with $117.3 million RMB as of December 31st 2020.
Moving to our guidance.
Given the recovery of Chinese economy, and a fast growing consumer appliance market, we expect our loan origination volume in second quarter of 2021 will be over 150 per cent of growth feared over a year and a 35 per cent to 45% of growth for sequentially.
With that we can open the call for questions Mr. Yan out.
And Mr shoot.
And our chief risk officer, Mr shoot and I will answer questions on.
Sir Please go ahead.
Certainly, ladies and gentlemen, and we will now begin the question and answer session. If you wish to ask a question you can stretch star 1 on your telephone keypad and these rates for your name to be announced.
The first question is coming from the line of Andrew Scott from Roth Capital. Please go ahead.
Hello, and congrats on the strong results and and thanks for taking my questions and so the first question here on applied and I have.
The model is really showing the successful execution you guys are making with the transition to institutional partners, especially shown and the stronger gross margins you had in the quarter can you just maybe talk about the efficiencies you're realizing and you discussed on the call that are helping driving the strong results.
Yes so.
This is Sylvia and I will take this question.
So yes.
Yes.
And as Andrew Andrew.
Andrew as you have mentioned that we have successfully access of the pizza business so to the long.
Loan facilitation model, so and the first quarter, we have seen very strong increase and the long for for sale.
And volume and also we have seen some cost savings under different expense items, So as we mentioned and the.
Commentary given the recovery of the Chinese economy and of course growing consumer financing market, we actually have a very good confidence to grow and expand the book as we did and the first quarter. So we expect that debt our loan origination volume.
We'll grow continuously in the.
And the remaining quarters of this year and we will continue to improve our operations efficiency and to maintain.
Profitable very good profitability.
Yes.
Yeah.
Yes, great. Thanks very much.
Sorry, I didn't want and figure out there.
Second second question for me, if I may on R&D expenses and it looked like they were down substantially and the quarter can you kind of talk about your expectations there going forward.
Okay. So yes, the R&D expenses were down 22, 7%.
Year over year, because because we have successfully exit for the pizza and the business. So we I'm actually.
It made some efforts to streamline our technology technology departments, and we optimize the personnel scheduling and related human resources, So and that way, we have a more streamlined team and technologies.
So going forward and so we see some savings and the.
Related salaries and compensation and also the share basic share base compensation and so going forward, we plan to improve our R&D investments to continuously improve our technological capabilities and efficiency to propel.
For further growth for the company and if you look at the.
Absolute number I think it's a very good indicator for the remaining quarters of this year.
So I think we are going from this level and we plan to improve the R&D investment level from here.
I hope that.
Yes.
That was very helpful.
Next year, and if I may I was very excited to see the credit quality numbers and.
Disclosed it in and the released this morning and it definitely reflects the shifting institutional funding. So can you just kind of and provide maybe some commentary on the numbers, there and expectations going forward.
Yeah.
Oh sure. Thanks, and just 1 question because he's taking on your questions.
And so accordingly as well.
Okay.
Yeah, I asked me on.
Hum.
And for them.
Hum.
Thank you Sean.
For our part.
And those teams.
For that or Paul.
And from customers I think on.
It's been going on and what else yet and ship.
Income starting from the early last year 2020 is really calls for the purpose.
And while south towards Hum and quality culture.
And that's disappearing.
At Putnam Putnam.
Institutional funding partners.
So as you can see that for quite a quite a number for that.
And I must continue to improve over time.
We are and what happens on multiple fronts, 1 from Oh from acquisition to watch on the possible.
Comes from most of Sunbelt I'll put it on quantity.
Awesome.
Call it.
Portfolio.
That's my staff and we are.
On satisfaction.
On a lot on.
Long time, perhaps for Mike.
And from Farquhar.
And we're buying more.
On comes on line.
And we're able to really focus on novel possible.
And you have a long day.
On credit outlook.
Hum.
Coupled with that we also are Oh.
1 collection.
And you can't I'll tee it up a little.
Okay.
Overall.
Channel.
And we'll see volume.
Kim from Holland.
Hum.
Moving over time.
Are all of them.
So P J.
Pretty much reached our all time high.
And what's happening and stable for almost every day.
And was too small.
And that's something that we're happy to report on.
So keep on with all things that go on.
And that's it.
And if a button on the.
Especially with our existing customers and Peter possible bolt on.
And that's taken.
And that's true.
Okay.
Second our portfolio.
And that better.
I'll be on.
Great. Thanks.
Dream and helpful.
Also I appreciate the update on the <unk>.
Acquisition and you provided on the call on can you maybe just talk through some of the next steps you guys have moving forward.
Integrate the company and anything else that needs to be done and over the next few quarters.
Yes interest area.
So currently we are and the middle and integrating the functions of finance operations and other.
And supporting functions and so we expect to complete this consolidation within this month and by the end of June So and then that's where all for the full year, we estimate that Aubrey net would contribute.
And a 20% off net income if we can stick to the current business strategy and.
And we have been highlighting in the commentary earlier.
And that is primarily focused on.
Perimeter currency related technology mining hardware design, and distribute and 2 mine mining management. So.
Actually we know it doesn't and darker engaging cryptocurrency issuance money and where you change something like that so from that point of view. Currently we are operating this business fully complying with the regulatory requirements and.
And we will and.
We will.
Observe and watch very closely and make sure to adjust our business if necessary on a trip or operations within the regulatory framework.
So that is basically on.
Yeah, the status on our M&A deal.
Thank you very much and then last 1 if I may the.
30% to 40% sequential on origination growth was great to hear and it's very exciting for true Q can you just talk through your expectations through year end and and <unk>.
You have a it looks like it's.
Acquired from new customers. This quarter. So any commentary you can provide on adding people for the platform as well would be great.
So I'll just keep on Mccann and jobs.
On your question can we keep it for the second half of your question again.
Yeah, so it'd be a repeat borrower.
And it was down sequentially. It looks like you were successfully added new customers to the platform. So any commentary you have there with the site.
Sure.
Well we are disposing.
And as well.
And just out of range.
And Oh.
So the 30.40 credit path.
Well from quarter to quarter.
Yeah.
But other than what we have.
This quarter.
Well I don't we don't have a number for the overall yet.
Hum.
For the second half of this year.
On the pick them up and that's just looking at other Q1 growth.
Well I know you're coming from coupons and 1 is.
Possibly arps and pushing pretty close on teaching people.
And the program.
Lucky and walking and seeking partners.
And so it's significant.
Confidence and interest on our part.
And just to.
Keep them all on possible.
Performance on that day.
While we are seeing more factories from Jason.
For some Q&A.
And she will come on board.
And it will go to growth from a number of top number on both.
For the kitchen from them today and the.
A healthy pipeline for Goldman.
Hum.
From a funding.
Price.
And our long.
And from smoking.
Assuming similar traction swap income.
And once we are in a full speed.
And he can touch on them.
Portfolio and you can see on repeated percentage off I'll repeat a few people from it's almost a full launch from the lead people to put smiles on our campus.
Compared to a 1 channel.
And sometimes we ask for.
Standing.
Standing on net.
Opposition portfolio and the middle for Q1.
And you got in Q1.
The higher percentage.
Walk up on me.
Okay.
Okay.
Wow, that's a decision for them by this growth.
And I'm going to talk about on yesterday.
So we on boarded.
For full yeah, well on mute operations yeah.
And at the same time with our U.
Peter comes from our books.
So that's true.
Yes.
Well, that's all for a while.
On the product.
And that Densification.
And so.
And that's all for them.
Scott.
And that's part of town.
And and our triple pay for marketing capability.
And 2 full force.
For both.
Touching on wipes and.
Lots of people, but more importantly for cobalt.
Hum.
And was getting into all the details on how we.
And as a customer.
And I'm trying to improve on.
And so they improve.
Oh, it's moving.
And so on the new on the vehicles from competition from them.
Only that the Q1 and.
Net net.
The Q1, and then we'll have something more.
And as long as touched on it.
Getting true for on Q for Q2.
True out.
So we are getting.
Yeah.
And customers.
That's true.
Mike and.
Channel, including.
And you've been making based on marketing.
And.
On a partnership.
And Oh.
You may not be tough.
Tough 1 especially on on.
And they are getting.
We are booking.
People.
Throughout the whole spectrum.
In the key and the second half of the share repurchase.
And that with.
And with them focus on that.
And more on optimizing.
On smoking.
Acquisition cost.
So I'm sure I'll be walking.
Walking channel metrics on.
And so so that even though we are thinking.
For Q2 on.
He comes from acquisition that taking pretty put them on.
And you can pull for that portfolio mix demand instruments and.
And just on the core.
Uh huh.
Let's move on to take a very.
Nicole.
And flooding and so I would say that the conservatives and from you.
And all maintaining very healthy buffer for us and pinpoint.
With respect patients.
And so.
So all the other way well that same day and as such.
More comfortable and comprehensive portfolio and channel specific.
You're trying to make sure that as well.
On a cost.
Kitchenaid and credit risk.
So that's oh.
Okay.
And so on the lending perspective from Central Bank.
Volume.
For me that it won't be.
For the supported us on all of a continuous growth they are institution partners.
In the second half for dish.
Shanghai.
Second half for nothing.
Yes.
[laughter].
Great well, thank you very much and once again, congratulations on the strong quarter.
Okay.
Thank you once again, ladies and gentlemen, it is star followed by 1 if you wish to ask a question.
[noise] seeing no more questions I will return the quality and Mr. Chen Please go.
Go ahead.
Thank you operator, and thank you all for participating on today's call and thank you for your support and we appreciate your interest and I look forward to reporting to you again next quarter on our progress.
Yeah.
Okay.
Thank you.
Thank you, ladies and gentlemen that concludes our conference call for today. Thank you on for your participation you may disconnect now.