Q4 2024 Jiayin Group Inc Earnings Call
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Operator: on today's conference call to discuss Jiayin Group's financial results for the fourth quarter and full year of 2024. We released our earning results earlier today. The press release is available on the company's website as well as from Newsware Services.
Speaker Change: On today's conference call to discuss <unk> group's financial results for the fourth quarter.
Speaker Change: And full year of 'twenty 'twenty four we released our earnings results earlier today.
Speaker Change: Press release is available homes that combination website as well as well as from newswire services.
Operator: On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunlin, Chief Financial Officer, and Ms. Xu Yifang, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law.
Speaker Change: The call with me today are Mr. <unk> <unk>, Chief Executive Officer, Mr. Refiners remain Chief Financial Officer, and MS. <unk> <unk> Chief risk Officer before we continue. Please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S program secure.
Speaker Change: And litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties as such the company's actual results may be materially different from the expectations expressed today further information regarding these and other risks and uncertainties is included in the Companys public file.
Speaker Change: <unk> with the SEC.
Speaker Change: The company does not assume any obligation to update any forward looking statement, except as required under applicable law also please note that unless otherwise stated all figures mentioned during the conference call are in Chinese renminbi with that let me now turn the call over to our CEO, Mr. Yan Li Mr Young with the mill.
Operator: Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese人民币.
Operator: With that, let me now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations.
Speaker Change: His remarks in Chinese and I will follow up with corresponding English translations. Please go ahead Mr. Yan.
Dinggui Yan: Please go ahead, Mr. Yan. In 2024, China's macroeconomic situation showed a steady growth trend. With the support of new consumer stimulus policies, the demand for consumer credit has grown steadily. Among them, the surplus of Chinese consumer credit increased by 1.24 trillion yuan a day, which is 6.2% higher than before.
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Dinggui Yan: In 2024, it is also the time for Jiayin to deepen its strategic layout and achieve high-quality development. The company is committed to the strategy of maintaining stability and driving technology. At the same time as controlling risks, the company is actively increasing its volume. In the fourth quarter of 2024, the company achieved a loan balance of 27.7 billion yuan, a growth of about 37.8%. The corresponding out-of-the-box service income is 11 billion yuan, a growth of about 46.3%. The company's business scale has been growing steadily, constantly breaking new highs. The annual loan balance of 1 billion yuan, 1 billion yuan, has reached an important operating level.
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Dinggui Yan: In 2024, China's macroeconomic demonstrated steady growth with consumer credit demand rising steadily, supported by consumer stimulus policies. Overall for the year, consumer credit grew by RMB 1.24 trillion, reflecting a 6.2% year-over-year increase.
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Speaker Change: <unk> demonstrated steady growth with consumer credit demand rising steadily supported by consumer Cumulus policies.
Speaker Change: Overall for the year consumer recruited grew by RMB 124 trillion, reflecting a six 2% year over year increase that.
Dinggui Yan: The year also marked a significant milestone for Jiayin as it strengthened its strategic positioning and achieved high-quality development. The company pursued a strategy of steady progress driven by technology expanding incrementally while carefully managing risks. In Q4 2024, the company facilitated loan transactions totaling RMB 27.7 billion, a 37.8% year-over-year increase with loan facilitation service revenue reaching RMB 1.1 billion up 46.3% year-over-year. The company's business goal grew steadily each quarter, consistently setting new records.
Speaker Change: The year also marked a second.
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Speaker Change: Strategic positioning and achieved high quality development. The company pursued a strategy of steady progress driven by technology expanding incrementally we'll carefully managing risks in Q4 accounted hunting for the company facilitated along transactions totaled.
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Speaker Change: A 37, 8% year over year increase with loan facilitation service revenue, reaching RMB, one 1 billion up <unk>.
Speaker Change: 46, 3% year over year.
Speaker Change: The Companys business Gulf grew steadily each quarter consistently setting new records for total loan facilitation volume for the year, if they exceeded RMB 100 billion, marking an important business milestone.
Dinggui Yan: The total loan facilitation volume for the year exceeded RMB 100 billion, marking an important business milestone. Thanks to the diversified customer channels and flexible marketing strategies, the company's customer efficiency has improved rapidly. The total number of new loans has reached 2.777.4 million, which is an increase of about 45.5%. In terms of customer flow, we have established a fine-grained distribution mechanism to match the differentiated ratio growth strategy. The annual flow rate has increased by 7%, which focuses on potential lost customers. The flow rate has been effectively improved, and has increased by nearly 75%. On the other hand, we continue to expand the high-quality institutional cooperation network.
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Dinggui Yan: During the period of 2024, we have established a deep cooperation relationship and actively promote innovative and diversified business models We are committed to achieving a cooperative partnership with financial institutions to assist in the diversification of the consumption of new generation products and the consumption scene. Thanks to diverse borrower acquisition channels and flexible marketing strategies, the company has significantly improved its borrower acquisition efficiency. In 2024, the company added 2.774 million new borrowers, representing a year-over-year growth of 45.1%. Regarding borrower retention, we implemented a refined stratification mechanism, applying differentiated credit growth strategies. The company's annual retention rate increased by approximately 7%.
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Speaker Change: Thanks to diverse borrower acquisition channels and flexible marketing strategies. The company has significantly improved its Barbara acquisition efficiency in China accounted for the company added two points to 77 4 million new borrowers.
Speaker Change: Resonating and year over year growth of 45, 1%.
Speaker Change: Regarding borrowed retention, we implemented a refined strut stratification Mccann isn't applying differentiate hated created our growth strategies. The companys annual retention rate increased by approximately 7% we paid particular.
Dinggui Yan: We paid particular attention to potential churn users and effectively improved their retention rate nearly 75%.
Speaker Change: Particular attention to potential tour.
Speaker Change: Users and effectively improve their retention rate nearly 75% Adil.
Dinggui Yan: Additionally, we continue to expand a high-quality and sustainable network of institutional partnerships. During 2024, we maintained in-depth cooperative relationships with a total of 73 financial institutions. We also actively explored innovative and diverse business models in areas such as auto-backed loans and loans for small and micro businesses. We remain committed to achieving win-win collaborations with financial institutions, fostering the diversification of consumer-created products and scenarios. In the face of the rapid development of new customers and the rampant demand for new products, the company has always maintained a cautious sales strategy. At the same time, we should tighten the restrictions appropriately, observe the changes in risk data, provide a more flexible trading strategy, and, through the introduction of new batches of external data sources, combine the in-depth excavation of internal borrower behavior data, examination.
Speaker Change: Additionally, we are continuing to expand in a high quality and sustainable network of institutional partnerships.
Speaker Change: Plenty of time before we maintain a in depth cooperative relationships with a total of 73 financial institutions. We also actively explored innovative and diverse business models in areas, such as auto backed loans and loans for a small <unk>.
Speaker Change: Macro businesses.
Speaker Change: We remain committed to achieving win win collaborations.
Speaker Change: With financial institutions, bolstering that diversification of consumer credit products and scenarios.
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Dinggui Yan: Thank you.
Dinggui Yan: Hidden Networks to disrupt cross-breeding and mass-market control — 460,000 shared decrypting and blockading networks that and supported comprehensive and digitalization. In response to the rapid growth of new borrower groups and strong credit demand, the company has consistently adhered to a prudent risk control strategy. While adjusting credit limits as needed, we closely monitor changes in risk data and implement more flexible transaction strategy. By integrating new external data sources and combining them with deep analysis of internal borrower behavior, we continuously iterate and enhance our risk control models. In Q4, the delinquency rate for loans overdue from 61 to 90 days dropped to 0.53 percent, representing a significant improvement compared with the same period a year earlier.
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Speaker Change: In response sooner Robyn group of new borrower groups as strong credit demand the comedy has consistently at her.
Speaker Change: Two a prudent risk control strategy, well adjusting credit limits as needed we closely monitor changes in risk data and implement more flexible transaction strategies.
Speaker Change: By integrating new external data sources, and combining them with deep analyses of internal borrower behavior, we continuously iterate and enhance our risk control models in Q4, the delinquency rate for loans overdue for from 61.
Speaker Change: 290 days dropped to zero point, 53%, representing a significant improvement compared with the same period a year earlier.
Dinggui Yan: Furthermore, through our AI-powered self-developed risk control platform, we have established a comprehensive digital anti-fraud defense system. Through the year, we identified and intercepted more than 540,000 high-risk habitual fraud applications and blocked 468,000 malicious attacks from illicit activities. These results demonstrate that we are collectively building a full process digital and collaborative risk control network for Jiayin technology. As internal technology develops and kinematics of large-scale models överspeed, we continue to maximize the 얼마ge technology to overcome this bottleneck.
Speaker Change: Furthermore, through our AI powered self developed.
Speaker Change: Risk control platform, we have we reached a comprehensive digital anti fraud.
Speaker Change: Defense system through the year, we identified and intercepted more than 504.
Speaker Change: 540000 are high risk.
Speaker Change: Little broad applications and block 468, southern out malicious attack.
Speaker Change: Attacks from illicit activity activities. These results demonstrate that we are collectively building a full process digital and collaborative risk control network for joining technology.
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Dinggui Yan: in terms of applying and repositioning such feasibility scenarios.
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Dinggui Yan: 通过履挖座席辅助系统,为客户人员提供实时标签提醒与画作推荐,准确率达90%,系统复棱后则减差错率降低50% we have implemented AI image recognition technology in the control process. In addition, in the marketing section, we use multi-modal models of voice and images to achieve AI smart inspection of marketing patterns and video content.
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Dinggui Yan: At present, we have completed the privatization deployment of the advanced big model DeepSecRE.
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Dinggui Yan: In 2025, we will accelerate the exploration of the implementation of core business such as risk management, data science, and customer service, to promote its efficiency and achieve structural efficiency. With the internal development of technology and the effective progress of external large models, we continue to expand the application and empowerment of AI in business areas, such as customer services, risk control, and marketing. For instance, our UI agent assistant system provides real-time tech reminders and script recommendations for customer services staff, achieving an accuracy rate of 90% and reducing the quality inspection error rate by more than 5% after empowering the system.
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Vishal: If the internal development of technology, and our effective progress of external large models, we continue to expand the application and empowerment.
Vishal: In business areas, such as customer services, our risk control and marketing for <unk> Nast argue why agent assist and system provides real time tack reminders and a script with recommendations for customer service staff, achieving an accuracy rate of 90%.
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Dinggui Yan: We have also integrated an AI-based image recognition system into the risk control process, quickly enhancing the efficiency and accuracy of document and credential recognition. In marketing, we have implemented a multi-modal model based on speech and images to ensure an AI-intelligent review of marketing graphics, text, and video content.
Andrew: Image origination system into their risk control process quickly enhancing the efficiency and accuracy of document and credential origination.
Andrew: In marketing, we have implemented a multi modal model based on speech and images to insurer and AI intelligence review of marketing graphics text and video content.
Dinggui Yan: Additionally, we have completed the private deployment of the advanced large-language model DeepSeek R1. In 2025, we expect to accelerate its application in core business areas such as risk management, data science, and customer services.
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Speaker Change: The application in core business areas, such as risk measurement data signs and customer services.
Dinggui Yan: driving structural breakthroughs in enterprise efficiency.
Speaker Change: Driving structural breakthroughs in enterprise efficiencies.
Dinggui Yan: 海外业务扩张一直是我们重要的发展战略 2024年四季度,印尼地区业务伙伴的放款规模同比增长了75% The number of registered users has increased by 131%, maintaining a fast-growing market, and cooperating with an influential financial institution.
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Dinggui Yan: Five other potential partners are also in talks. In the Mexican market, we are actively cooperating with local regulatory policies. While the risk indicators are significantly optimized, profitability can be improved. We hope that with the gradual increase in operating capacity and the increase in market liquidity, overseas business expansion has always been a key strategic focus for us. In Q4 2024, our business partners in Indonesia saw a 74% year-over-year increase in loan volume. At the same time, the number of registered users grew by 131% year-over-year, maintaining strong group momentum. We also established a partnership with a leading local financial institution and are in discussions with five other potential partners.
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Speaker Change: Overseas business expansion has always been a key strategic focus for us in Q4 'twenty to 'twenty four our business partners in Indonesia saw a 74% year over year increase in loan.
Speaker Change: At the same time the number of registered users grew by 131% year over year.
Speaker Change: <unk> strong growth momentum we also established.
Speaker Change: Established a partnership with a leading local financial institutions and are in discussions with five other potential partners aimed.
Dinggui Yan: In the Mexican market, we continue to work closely with local regulatory authorities. As a result, we have significantly optimized risk indicators and improved profitability. With ongoing improvements in operational capabilities and market penetration, we aim to strengthen our competitive position in the overseas market.
Speaker Change: In the Mexican market, we continue to work closely with local regulatory authorities.
Speaker Change: As a result, we have significantly optimize risk indicators and improved profitability.
Speaker Change: With ongoing improvements in operational capabilities and market penetration, we aim to strengthen our competitive position in the overseas market.
Dinggui Yan: In 2024, the company actively promotes the cooperation between manufacturers and students to jointly explore AI cutting-edge technology in the field of finance with universities such as Shanghai Jiaoda, Xi'an Jiaoda, and Jilin University. and jointly with the Shanghai Financial Information Industry Association published a report on the development of the Shanghai Financial Information Industry Association to show the path and trend of industry development. In addition, the company launched the Youth Mental Care Project to cover more than 1,500 schools in eight provinces around the country and provide mental health assessment and guidance to more than 50,000 teachers. The project is based on the typical example of the annual public welfare innovation.
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Dinggui Yan: In the future, we will continue to promote industry development with technological innovation and respond to society with strong actions. In 2024, the company actively advanced industry academy research collaboration, working with institutions such as Shanghai Jiaotong University, Xi'an Jiaotong University, and Jilin University to explore the application of cutting-edge AI technologies in the financial sector. In partnership with Shanghai Financial Information Industry Association, we also published the Shanghai Financial Information Industry Development Report, highlighting industry development trends and pathways. Additionally, the company's youth mental health care initiative reached over 1,500 schools across eight provinces and municipalities nationwide. providing psychological assessment and counseling to more than 50,000 teachers and students.
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Speaker Change: Encountered hunting for the company actively advance industry Academy.
Speaker Change: Academy Research collaboration working with institutions, such as Shanghai Gelatin me with University, Xian, Zhengzhou and University and achieving university to explore the application of cutting edge AI technologies in the financial sector.
Speaker Change: Partnerships with Shanghai Financial Information Industry Association. We also couple of years, the Shanghai financial information Nation industry development report highlighting industry development trends and pathways. Additionally, the company's youth mental health care initiatives.
Speaker Change: To reach it reached over 1500 schools across eight provinces and municipal municipalities National wide.
Speaker Change: Providing psychological assessment and consoling to more than 50000 teachers and students. This project was awarded and.
Dinggui Yan: This project was awarded as an Annual Public Welfare Innovation Typical Case by China National Radio Network. Looking ahead, we will continue to drive industry development through technological innovation and give back to society with concrete actions, reaffirming the trust placed in us. In terms of shareholder returns, in 2024, ADS will issue $0.5 per share, with a total of $2,660,000. In response to the support and performance of many investors, the company will further increase the strength of shareholder returns. As of 2025, the company plans to announce and issue a cash payment every fiscal year. The total is 15% less than the last year's net profit, which is 30% less than the last year's net profit.
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Speaker Change: Industry development through technological innovation and give back to society with concrete actions reaffirming the trust placed in us.
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Dinggui Yan: to continue to share the long-term benefits of the company's high-quality development. Regarding shareholder returns The company distributed a total dividend of 0.5 USD per ADS in 2024, totaling 26.6 million USD. In appreciation of the strong support and trust from our investors, the company will further enhance shareholder returns. Starting in 2025, we plan to declare and distribute a cash dividend once per fiscal year, with the total amount increasing from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. In this way, we intend to continue sharing the long-term benefits from the company's high-quality development.
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Speaker Change: Regarding shareholder returns to the company distributed a total dividend of 0.5 U S. D per <unk> in 2024 totaling $26 6 million USD.
Speaker Change: Appreciate in appreciation of their strong support antitrust from our investors the company well for their enhanced shareholder returns starting in 2025, we plan to declare and distribute a cash dividend a west per fiscal year with a total amount increasing from.
Speaker Change: No less than 15% of the programs for fiscal years net profit after tax to approximately 30% of the previous fiscal years net profit after tax in this way we intend to continue sharing the long term benefits from the company's high quality development.
Dinggui Yan: In 2025, the macro-political support for the consumer generation has been further increased. Recently, the National Financial Supervision Bureau issued a notice on the development of consumer finance to assist in increasing consumption. The content covers the increase in consumer supply, the enrichment of consumer products, the optimization of loan repayment methods, and many other aspects. We believe that these strong policy combinations have given confidence and motivation to the development of the consumer generation industry. Combined with the current development trend of the company, we remain optimistic about the overall business growth and profitability in 2025. The amount of loan repayment is estimated at 13.7 billion yuan to 14.2 billion yuan.
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Dinggui Yan: Among them, the first quarter loan balance target is 350 billion yuan. The long-term operating profit target is 5.7 billion yuan, which is 6.3 billion yuan. Looking ahead to 2025, macroeconomic policies are expected to provide stronger support for consumer credit. Recently, the National Financial Regulatory Administration issued the Notice on Developing Consumer Finance to Boost Consumption. which includes several key areas, such as increasing the supply of consumer-acquitted, diversifying consumer-acquitted products, and optimizing loan repayment methods. We believe these robust policy measures will instill confidence and drive momentum in the development of consumer-created industry. In line with the company's current growth trajectory, we remain optimistic about the company's business expansion and profitability in 2025, and have set the loan facilitation volume target range at RMB 137 to 142 billion for the year.
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Speaker Change: Looking ahead to 2025 macroeconomic policies are expected to provide stronger support for consumer credit.
Speaker Change: Recently, the National financial regulatory administration issued they noticed developing consumer finance to boost consumption.
Speaker Change: Which.
Speaker Change: Includes several key areas such as increasing the supply of consumer credit diversifying our consumer credit products and optimizing loan repayment methods.
Speaker Change: We believe these robust policy measures will instill confidence and drive momentum in the development of consumer credit industry in line with the company's current growth trajectory.
Speaker Change: Optimistic about the company's business expansion and profitability internally identified and have set the loan facilitation volume target range at RMB 137 to 142 billion for the year in the first quarter our loan facilities.
Dinggui Yan: In the first quarter, our loan facilitation volume target is RMB 35 billion and the non-gap income from operation target is set at RMB 0.57 to 0.63 billion.
Speaker Change: Volume targets is RMB 35 billion and the non-GAAP income from operation target is set at RMB Zero point 50, 720 point 63 billion.
Operator: Next, I would like to invite CFO Mr. Huang to introduce the financial statements of the fourth quarter of 2024. With that, I will turn the call over to our CFO, Mr. Fan Chunlin. Please go ahead.
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Speaker Change: Now I'll turn the call over to our CFO Mr. Fine tuning. Please go ahead.
Chunlin Fan: Thank you Mr. Yan, and hello everyone for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB. And our percentage changes refer to year-over-year comparisons, unless otherwise noted. As Mr. Yan mentioned earlier, building on our strong momentum, we kept the year with a record-breaking long facilitation volume. Notably, Rong's facilitation volume in Q4 was 27.7 billion. representing an increase of 37.8% from the same period of 2023. Our net revenue was $1,404.5 million. representing a decrease of 12.2% from the same period of 2020.
Fine tuning: Thank you, Mr Han and Hello, everyone for joining our call today.
Fine tuning: I will now review our financial highlights for the quarter.
Fine tuning: Note that our numbers were being IMD.
Fine tuning: All percentage changes refer to year over year comparisons unless otherwise noted.
Han: As Mr. Han mentioned earlier.
Han: Building on our strong momentum.
Speaker Change: Half of the year with a record breaking long transportation volume.
Han: Notably raw.
Han: Transportation volume in Q4 was 27 7 billion.
Han: Presenting an increase of seven 8% from the same period of time to time.
Han: Our net revenue was 1404 5 million.
Han: Representing a decrease of 12, 2% from the same period of time to 'twenty three.
Chunlin Fan: As we mentioned a few times during our earliest release call earlier, the company has been focusing on the loan facilitation services and deliberately downsized the financial guarantee service. If we dive deeper into the breakdown of the revenue, revenue from loan facilitation services was RMB 1,124 million, representing an increase of 46.3% from the same period of 2023. The decline of the total revenue was primarily due to the significant decrease in revenue from releasing of guarantee liabilities as a result of the company's strategic focus throughout year 2021.
Han: As we mentioned a few times during our earnings release call earlier.
Han: The company has been focusing on the loan facilitation services and deliberately downsized a financial guarantee service.
Han: We dive deeper into the break it down the revenue revenue for our loan facilitation services was RMB 1120, $4 million, representing an increase of 46, 3% on a same period of 293.
Han: The decline of the total revenue was primarily due to the significant decrease in revenue for all of the raising of guarantee liabilities as a result of the company's strategic focus throughout year to understand you Paul.
Chunlin Fan: Moving on to call. Facilitation and servicing expense was $339.3 million, representing a decrease of 59.5% from the same period of 2021. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncreditable receivables, contract assets, non-receivable, and other was $1.2 million, primarily due to the net impact of current period provisions and the reversal of allowance for receivables arising from a lower-expected credit loss rate. Sales and marketing expense was 517.2 million yuan. representing an increase of 57% from the same period of 2023. primarily due to an increase in borrower acquisition expenses. J&A expense was $53.7 million, representing a decrease of 17.6% from the same period of 2023.
Han: Moving onto costs.
Han: Sanitation of servicing expense was $309 3 million.
Han: Representing a decrease of 59, 5% from the same periods have tons of 'twenty three.
Han: This was primarily due to increased expenses related to financial guarantee services.
Han: Allowance for uncollectible receivables kind of assets loan receivable and other.
Han: The $1 2 million.
Han: Primarily due to the net impact of covering the period of provisions and the reversal of an allowance for receivables arising from lower expected credit loss rate.
Han: Sales and marketing expense was 517.2 million.
Han: Representing an increase of 57% from the same period of 2023.
Han: Primarily due to an increase in borrower acquisition expenses.
Han: G&A expense was 3.7 million, representing a decrease of 17, 6% from the same period of tanker transitory.
Chunlin Fan: primarily driven by a decrease in employee costs. R&D expense was $100.4 million, representing an increase of 8.1% from the same period of 2020. primarily due to the increase in the number of our research and development personnel. Non-GAAP income from operation was $402.4 million, representing an increase of 67.9% from $239.7 million in the same period of 2025. Consequently, our net income for the fourth quarter was $275.5 million, representing a decrease of 25.1%. This was primarily due to the higher base resulting from a one-off non-operational income in the same period of 2020. Our basic and diluted net income per share was 1.3 compared with 1.72 in the fourth quarter of 2023.
Han: Primarily driven by a decrease in employee costs.
Han: R&D expense was 100 and the point of 4 million.
Han: Representing an increase of eight point or 1% from the same period of 2023.
Han: <unk> due to the increase in a number of our research and development personnel.
Han: non-GAAP income from operation was a 400 and a $2 4 million.
Han: Presenting an increase of 679% from $239 7 million in the same period of 2023.
Han: Consequently, our net income for the fourth quarter was 275 5 million.
Han: Presenting a decrease of 75, 1%. This was primarily due to the higher base, resulting from a one off non operational income in the same period of time.
Han: Our basic and diluted net income per share for the one three compared with 172 in the fourth quarter of 2023.
Chunlin Fan: basic and diluted net income per ADS was 5.2 compared with 6.88 in the fourth quarter of 2021. We ended this quarter with $540.5 million in cash and cash equivalents compared with $741.2 million at the end of the previous quarter.
Han: Basic and diluted net income per head, yes was a five point to compare their way of $6 88 in the fourth quarter of 210 to three.
Han: We ended this quarter with 514 quantify millions in cash and cash equivalent.
Han: Competitive with $741 2 million at the end of the previous quarter.
Operator: With that, we can open the call for questions.
Speaker Change: With that we can open the call for questions Ms. Shea, our chief risk Officer, and I will answer your questions. Operator. Please proceed. Thank you.
Operator: Ms. Xu, our Chief Risk Officer, and I will answer your questions. Operator, please. Thank you.
Operator: We will now begin the question-and-answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To cancel your request, please press star 11 again. One moment for the first question.
Han: Okay.
Han: We will now begin the question and answer session.
Han: Jim.
Han: Right.
Han: One on the telephone.
Han: Yes.
Han: Okay. So I'll request. Please go ahead.
Han: One one.
Han: One moment for the first question.
Rong Zhao: Our first question comes from the line of Rong Zhao from TF Securities. Please go ahead. Okay, thank you for accepting my question.
Han: Tim.
Han: First question comes from the line.
Han: While crop.
Han: Securities. Please go ahead.
Han: Okay.
Shaorong Sun: I'm Shaorong Sun, the chief translator of Tianfeng Securities Overseas. I have two questions. First, I noticed that the company's revenue increase in 2024 has slowed down. Is this a short-term adjustment or a long-term trend? And can you share with us the business expansion plan and ESG outlook for 2025?
Han: Okay.
Han: Yes.
Han: What should I do you want to in Shanghai lots of things I'm, sorry, what's your granular I'm going to Washington D C.
Douglas: We're truly Douglas on the Austin chalk well that sounds cool.
Douglas: So I'm curious how does your guidance you know intelligent fashion <unk> home.
Douglas: I'll hope alcohol, and then 14 guanines concerning omnichannel on your own.
Shaorong Sun: I'll translate it into English. So, I have noticed a significant slowdown in the company's revenue growth in 2024. Is this a short-term adjustment or a long-term trend? Could the management share the business expansion plans and performance outlook for 2025? Thank you.
Douglas: Okay.
Douglas: Can you talk more offline.
Douglas: So I have noticed a significant slowdown in the companys revenue growth in 2020.
Douglas: I'll make a short term adjustment or a long term trend.
Andrew: Andrew Ms Sharon business expansion plans and performance outlook for 2025. Thank you.
Dinggui Yan: Thank you, Zhao Rong.
Douglas: Okay.
Douglas: All that said, it's our own or you won't don't want by dial our Shanghai finish in England.
Dinggui Yan: I will answer in Chinese and hope it will be translated into English. I would like to know which are the two largest sources of silver In 2024, our company's strategy is to focus on high-paying employees who work in combined services. The fastest service is also the core ability of the company. The profitability of guarantee service-related income is relatively low. In the recent quarter, we have been strategically reducing the price of this part of the income. If we look at the percentage of contribution from the revenue, the percentage of misappropriated services has increased from 48% of Q4 in 2023 to 80% of Q4 in 2024.
Douglas: So anyway, it's a woman with Canada going in so called in July So you've already on class since I've talked with so little bump off of which I'm going to show.
Douglas: And welcome to the element that's out.
Douglas: So her foresaw the cost center. So you quite often when I asked you consider pushing the needle slots at Dunbar, which I'm going to so that you don't need BRT when I'm thinking as you could see doing that digital growth and are you seeing a chance I'll talk with them sort of incentives.
Douglas: It was hanging soda Oakland Tampa, it won't be like kind of up to her for all the time in the Soviet each internationally. Thank.
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Douglas: Some of which I'm going to sort of saying sort of BD.
Dinggui Yan: from 41.8% in Q4, 2023 to 41.8% in Q4, 2020 Therefore, the change of the revenue structure is in line with our high-quality growth strategy.
Douglas: Having our tenure and consider patterns associate embark in Shanghai, adding ICM kissner.
Douglas: I'm going to cheat.
Douglas: So you can sort of check or the piano bar for hormone called surrounds them down the tonnage.
Dinggui Yan: This is Shouen Zhang, and I will do the translations for the mantras. So our current revenue structure primarily consists of two major components, which are loan facilitation revenue and guarantee service revenue. The company's strategy for the year of 2024 focuses on the high quality growth of facilitation service revenue, which represents our core competency and maintains a stable take rate. Revenue related to guaranteed services has lower profit margins, and we have been strategically reducing its proportion over the past few quarters. In terms of revenue contribution, the share of facilitation service revenue increased from 48% in Q4 2023 to 80% in Q4 2024.
Douglas: This is Sean Zhang and I will do the translations for the management. So our current revenue structure Prime mover.
Douglas: Primarily consist of two major components, which is a which our loan facilitation revenue and guarantees service revenue.
Douglas: The company's strategy for the year with 27 four focuses on the high quality group of Facilitation service revenue, which represents our core competency and maintains a stable a stable take rate.
Douglas: Revenue related to guarantees our services has lower profit margins and we have been strategically reducing its proportion over the past few quarters.
In terms of revenue contribution.
Douglas: The share of facilitation service revenue increased from.
For the 80% in Q4 2023.
Douglas: 280% in Q4 'twenty hungry for.
Dinggui Yan: Well, the share of the revenue related to guarantee business decreased from 41.8% in Q4 2023 to 11% in Q4 2024. This shift in revenue structure aligns with our strategic goal of high-quality growth.
Douglas: Well the share of the revenue related to guarantees business decreased from 41 point 41, 8% in Q4 23.
Douglas: 3% to 11% in Q4 at 29 four.
Douglas: This shifts in revenue structure aligns with our strategic goal of high quality growth.
Dinggui Yan: So based on the following strategic focus, although the overall revenue increase compared to 2024 is sluggish, In addition, if Q4 is a single season, the overall revenue will even drop slightly. But it is mainly because of the drop in the relative income of single insurance services.
Douglas: So to some extent neutrogena automotive can you say that's encouraging so listen so tobey this is Dave.
Douglas: Sure.
Douglas: I can look like he was a bunching of apartments and heating solutions.
Douglas: And so that doesn't mean, we're done Baltimore, which otherwise would have a shutdown for adults with cobalt.
Dinggui Yan: Let's take a look at our core service providers. Q4 has reached 11.2 billion yuan, which is a 46.3% growth rate which is slightly higher than the growth rate of the combined transaction volume The annual gross domestic product revenue is 4.1 billion yuan, which is 15% of the total growth. This is basically the same as the annual gross domestic product revenue in 2024. So based on this strategical focus, although the overall revenue in the year of 2024 slows down, and the revenue for the fourth quarter even slightly declined year over year, and mainly due to the decrease in revenue related to guarantee business.
Douglas: Obama guidance elements of your question the two vessels.
Douglas: Confident that our heyday at the pump.
Douglas: And gossip items or something against that I recall, you talked about going down that aren't getting out of.
Douglas: China and talk about it from a total.
Douglas: Okay.
Douglas: Can I go back and do some things you are investing in China. It sounds like Youre down at Huntington chip in downtown Houston.
Douglas: So based on this strategical focus although the overall revenue in the year of 24 slows down and the revenue for the fourth quarter, even slightly declined year over year, mainly due to the decrease in revenue related to guaranteed business. However.
Dinggui Yan: However, if we focus on our core business, which is facilitation service revenue, it reached RMB 1.124 billion in the fourth quarter, representing a year-over-year growth of 46.3%, which is even slightly higher than the growth rate of the facilitation volume. For the full year, facilitation revenue totaled RMB 4.01 billion, reflecting a year-over-year increase of 15%, which also aligned with the annual growth rate of our facilitation volume.
Douglas: Ever if we focus on our core business, which is a facilitation service revenue reached RMB 1.124 billion in the fourth quarter, representing a year over year growth of 46.3% which is.
Douglas: It was slightly higher than the growth rate of the facilitation border.
Douglas: For the full year facilitation revenue totaled RMB 4.01 billion, reflecting a year over year increase of 15%, which also aligned with the annual growth rate of our facilitation border.
Dinggui Yan: Looking back at the past performance of the company, Jiayin Technology's performance growth rate was relatively slow in 2024. Especially in the first half of 2024, considering the macro aspect, we have continued our more cautious strategy I started QR in 2020, especially in the second half of the year. With the continuous optimization of the risk indicators and the positive change of the macro aspect, we have gradually restored the rapid growth. As you can see from our operating data, each quarter of the combined trading volume has maintained a slow growth. The Q3 and Q4 quarters have continued to create quarterly growth.
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Douglas: So they're starting out and are there some bank.
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Douglas: So that sometimes with all of that tissue off I mean did you pay them off when we took away for chocolate thins out fast home and he was wondering what kind of magnitude top ourself on beta tender Curacao kokusai realogy to goodness associated transfer of CIT, we can call on.
Dinggui Yan: We have taken a very active strategy in the new class projection. This has also given us a solid foundation for rapid growth in the next few years. If we compare with the performance in the past few years, the year of 2024 does have a year of relatively slow performance growth for our company. In particular, during the first half of 2024, we adopted a prudent operation strategy that began in Q4 2023 due to macroeconomic considerations. However, starting from the second quarter of 2024, especially in the second half of the year, with the gradual improvement in risk data and positive macroeconomic changes, we gradually resumed a faster growth pace.
Douglas: As you can cut both Amazon and types of feedstocks tissue that theory.
Douglas: Oh man with IGN top items out as attitude.
Douglas: If we compare with.
Douglas: The performance in the past few years.
Douglas: The year of 'twenty 'twenty four it does have a year of relatively slow performance proof for our company.
Douglas: In particular during the first half of 204, we adopted a prudent operation strategy.
Douglas: That began in Q4 2023 due to macroeconomic considerations.
Douglas: However, starting from the second quarter of 'twenty time, before especially in the second half of the year with a gradual improvement in risk data and and positive macroeconomic changes, we gradually resume a faster growth pace.
Dinggui Yan: Our operational data shows that facilitation volume continued to grow sequentially each quarter. Notably, both the third quarter and fourth quarter achieved record high facilitation volumes for two consecutive quarters. We also implemented an aggressive strategy for acquiring new borrowers, laying a solid foundation for accelerated growth in the coming years.
Douglas: Our operational data show that facilitation volume come to continue to grow sequentially each quarter normally the third quarter and fourth quarter achieved record high facilitation volumes for two consecutive quarters.
Douglas: We also implemented an aggressive strategy for acquiring new borrowers are laying a solid foundation for our consolidated growth in the coming years.
Dinggui Yan: In 2025, we will continue our high-quality growth strategy. President Yan just gave us the total trading volume of QE1 in 2025, which is about 350 billion yuan, with an average growth of nearly 5%. The annual total trading volume is 1,370 to 1,420 billion yuan, with an average growth rate of 36% to 6%. In the year of 2025, we will continue to pursue a high-quality growth strategy. And just as Mr. Yan said, we expected the facilitation volume guidance in the first quarter to be around RMB 35 billion, representing a year-over-year increase of about 55%. And for the full year, we project a facilitation volume of RMB 137 to 142 billion, reflecting a year-over-year growth of about 36 percent to 41 percent.
Zhang: Oh Man woman Zhang.
Douglas: Called Samsung down necessarily.
Douglas: Yes.
Douglas: So the Oman.
Douglas: Could you just sort of a guidance seems sandbagged with xiaomi.
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Douglas: Essentially with Bob Evans.
Douglas: And the year of trying to identify.
Douglas: We will continue to pursue a high quality growth strategy and just as Mr. Yang side that.
Douglas: We expected the facilitation volume guidance in the first quarter to be around RMB 35 billion, representing a year over year increase of about 55% and a.
Speaker Change: For the full year, we project a facilitation volume.
Speaker Change: Of RMB 137 to 142 billion, reflecting a year over year growth of about 36% to 41%.
Dinggui Yan: Okay, this is my answer to your question. That will be my answer to your question, General.
Speaker Change: So I wonder if there's a lot of training content when it all played out.
Speaker Change: That will be my answer to your question Jerome.
Operator: Okay, thank you very much.
Speaker Change: Yeah.
Speaker Change: Okay.
Operator: I have another question.
Speaker Change: Sure.
Operator: In terms of technology development and talent cultivation, what specific plans and investments does the company currently have? And how to ensure that the company is ahead in terms of technology? Let me translate it into English.
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Shannon: Thank you Shannon.
Speaker Change: So well.
Speaker Change: The company currently has in technology.
Speaker Change: And talent cultivation.
Speaker Change: I mean, how does come to ensure we maintain the leading position in technology.
Speaker Change: Yeah.
Yifang Xu: Hello, I am Yifang Xu. I will answer your question in Chinese and translate it into English.
Washington: Washington is Shiva.
Speaker Change: And gentlemen.
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Speaker Change: Thank you.
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Speaker Change: Yeah.
Yifang Xu: Okay, I'm Yifang Xu, and I will answer your question in Chinese, and Shawn will do the translation in English. Jiayin Technology is a technology company. Through technology and data, we rely on mobile Internet to connect our end-users and external institutions. Our company's strategic position is around such a connection to launch operational and risk management mechanized operations.
Speaker Change: Okay I'm sure your phone and our.
Speaker Change: Our Azure your question in Chinese and Michelle I will do the translation in English.
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Speaker Change: California blended Jonathan since you're watching.
Yifang Xu: Since the opening of the company in 2025, Okay, so I will do the translation for this part first. So as a technology company, we have always been committed to leveraging technologies and data to connect and end consumers and licensed financial institutions through mobile internet, driving refined operations and risk management. And since the beginning of 2025, we have seen that DeepSeek is leading the AI revolution and accelerating the industry's AI transformation. Hello, can you hear me? Yes, we can. Okay, I will continue. So, we just talked about technology development and talent cultivation. In this direction, we first increased the investment in big data and AI At the end of this year, we achieved a comprehensive upgrade of big data and artificial intelligence in enterprise architecture and strategic positioning.
Speaker Change: Yeah.
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Speaker Change: D C change.
Speaker Change: Okay. So I will do the translation for this part for us So as a technology company, we have always been committed to leveraging technologies and data to connect and end consumers.
Speaker Change: Tumors and licensed financial institution through mobile Internet.
Speaker Change: Driving refine operations and risk measurements.
Speaker Change: And since the beginning of a tiny tiny fire, we have seen that deep seek is leading the AI revolution in accelerating the industries.
Speaker Change: AI transformation.
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Speaker Change: Michelle.
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Yifang Xu: With the help of this organizational framework, we can scan our front-end business and middle-end business and deploy multi-node AI agents' landing and application to promote a unified, one-stop and smart solution. Okay, so just as what I said before that we have increased investment and deployment in the AI transformation direction. So first part of that is we have increased the investment in big data and artificial intelligence. So at the end of the last year, we completed a comprehensive upgrade of our corporate architecture and strategic position. We conducted a thorough review of both our front-end and middle-office operations and initiated the deployment of multi-node AI agent advancing unified one-stop intelligence solution.
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Speaker Change: Did you find that.
Speaker Change: Okay. So just as what I said before that we have increased investment and deployment of.
Speaker Change: And they AI transformation direction. So first part of that is we have increased our investment in big data and AI and artificial intelligence.
Speaker Change: At the end of the last year, we completed.
Speaker Change: A comprehensive upgrade of our cooperate architecture and our strategic positioning.
Speaker Change: We conducted a thorough review of both our front end and a middle office operations and initiated the deployment of multi node AI agent.
Speaker Change: At West Atlantic Unified One-stop intelligence solutions.
Yifang Xu: Through the organization's guarantees, we have increased our investment to enable our data resources to be able to automate the whole chain from its production to mining to application to monitoring to iteration, and then to promote all of our data and technology-related staff and positions to realize AI's full-time work. So through our organizational support and increased investment, we are strengthening the automation capabilities across the entire data lifecycle, from the production and mining to application monitoring and iteration. We are empowering all data and technology personnel with AI-driven tools. We are also trying to develop AI for large-scale models and easy-to-use interactions, especially in the wind control direction, so that the accumulation of artificial intelligence and professional experience can help and support each other in risk management, so that we can further strengthen our competitive advantage in the increasingly competitive consumer-trend area and build our entire professional synergy.
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Speaker Change: And it goes on for now.
Speaker Change: Yeah.
Speaker Change: So through our.
Our organizational support and an increased investment we are strengthening the automation capabilities across the entire data Leipzig called lifecycle from the production and mining to application monitor monitoring and iteration.
Speaker Change: We are empowering all data and technology personnel with AI driven tools.
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Yifang Xu: That's all I have to say about this question. We are also exploring lightweight AI applications in risk control process. And we are actively researching and deploying AI solutions in risk management, integrating artificial intelligence with accumulated professional expertise. This dual approach reinforces our competitive advantage and builds a robust professional mode in the increasingly competitive consumer-created market.
Speaker Change: No.
Speaker Change: San Francisco, Michigan.
Speaker Change: Okay.
Speaker Change: We're also exploring lightweight AI application in risk control process, and we are actively researching and do it and deploying AI solutions in risk management integrating artificial intelligence with accumulated professional expertise.
Speaker Change: This dual approach reinforce our competitive advantage and have built a robust professional mode in the increasingly competitive consumer credit market.
Yifang Xu: And that will conclude my answer for your question.
Speaker Change: And that will conclude my answer for your question.
Operator: 好的,非常感谢,我这边没有其他问题 Okay, thank you very much, I have no other questions Thank you for the question. One moment for the next question.
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Speaker Change: Thank you for the questions.
Speaker Change: One moment for the next question.
Hua Rong: Next question comes from the line of Hua Rong. Please go ahead.
Speaker Change: Next question comes from July All Quadroon. Please go ahead.
Hua Rong: Hello, Management Team. I'm Rong Hua, an analyst from Shanghai Jinyu Assets. I have two questions for the Management Team. The first question is about the decline in the company's net profit in 2024. What is the main reason? Does the management team think there is a problem with cost control? Are there any plans to improve in the future? The second question is, in 2025, how will the company optimize the experience of borrowers to increase their reliability? In addition, are there any plans to introduce new borrowers to the company? My next question is, in 2025, how does the company plan to optimize the borrower experience to increase their reliability?
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Speaker Change: Hello Management. This is why I don't from G research.
Speaker Change: I have two questions. The first one is we have noticed a decline in the company's net income in 2024, what are the mayor. We then fall days doesn't.
Speaker Change: As a management.
Speaker Change: The issue with pulse can chill and are there any plans for improvement in the future.
Speaker Change: My next question is.
Speaker Change: In 2000, and 2025, how does the company plan to optimize borrower experience to encourage their loyalty addition tonight.
Hua Rong: Additionally, does the company have plans to attract new borrower groups?
Speaker Change: Company, how pins to attract Neil Barbara groups.
Chunlin Fan: Thank you. Thank you, Mr. Hua. The first question is about economic theory and cost. Let me answer this question. In 2024, our annual net profit was 10.56 billion yuan, and the net profit rate was 18.2% per year. Compared to 2023, the net profit rate was 12.97 billion yuan, which is a decrease of 2.5%. There are three main reasons for the decline in net profit. In the fourth quarter of 2023, we had an annual revenue of 2.6 billion yuan, which was generated by one-to-one business management. This is a very large amount. by 2023 Okay, so I will answer your first question about our net income and cost.
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Daniel: Okay. So I'll answer your first question about our net income and cost.
Chunlin Fan: So in the year of 2024, the company's net income was RMB 1.056 billion with a net margin of about $18.2 billion. And it has a decrease of RMB240 million compared with the RMB1.297 billion in 2023. And so I think there are... So the year-over-year decline in our net income is mainly due to three reasons. The first reason is our one-time non-operating income, which happened in the fourth quarter of 2023. So in the fourth quarter of 2023, our company recorded approximately RMB 280 million in the one-time non-operating income from a business disposal, which is the main reason for that decrease.
Daniel: So the year over 20000 for the Companys net income was RMB 1.0 56 billion.
Daniel: With a net margin of about 18, 2%.
Daniel: And he has a decrease of RMB 240 million compare with.
Daniel: RMB one to a $1 297 billion in <unk> 2023 and so I think there are.
Daniel: Sure.
Speaker Change: So the year over year decline in our net income is mainly due to three reasons.
Daniel: The first reason is.
Speaker Change: Our one time non operating income.
Speaker Change: Income, which happens in the fourth quarter of 2023, so in the fourth quarter of putting another three our company recorded approximately RMB $280 million in the onetime nonoperating income from a business disposal, which is a main reason for it.
Chunlin Fan: The other two reasons are that in 2024, the company's new customer disposal rate increased, and the related customer cost and credit cost increased significantly compared to that in 2023. In 2024, the marketing cost increased by 3.75% compared to that in 2023. So from the results, we have a 33.2% growth ratio for new customers in 2024 and 2,774,000 new customers in the whole year with a growth rate of more than 50%. In addition, in 2024, the company's R&D budget increased by more than 16 million yuan, and the growth rate of B2023 reached 25.7%. The company has strengthened the recruitment of AI professionals and continuously launched new system applications in low-tech business scenarios.
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Chunlin Fan: As Yifang mentioned just now. This will help us to continuously improve the operational efficiency and improve the user experience. As the company continues to make strategic investments in customer and technology development, it can enhance the company's performance and growth prospects. Next, as we accelerate the growth of the total transaction volume, guarantee the effective control of the ratio of service-related income, and further land the application of AI, we will continue to improve the customer's conversion rate and process rate indicators, and the company's profitability will continue to improve. So the second reason is about our increased borrower acquisition efforts in the year of 2024.
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Speaker Change: Our balance sheet. So it causes a whole cool coaches like Empire comment, especially salaries in total.
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Speaker Change: The team for all of the posters that cohort has already reduced Henrietta goes home and quite tissue guys, considering internally, Josh answer that I'll kick off.
Speaker Change: So the second reason is about a hour increased borrower acquisition efforts in the year of 2024.
Chunlin Fan: significantly increased our borrower acquisition activities in 2024 leading to a higher relative costs including borrower acquisition and credit report expenses. marketing expenses rose by RMB 375 million compared to 2023. As a result, new borrower accounted for 33.2% of the total borrower base. with 2.774 million new borrowers added throughout the year, which has a year-over-year increase of over 45 percent. And the third reason I want to share is about the higher R&D expenses. So in the year of 2024, R&D expenses increased by more than RMB 76 million, which has a 25.7% rise year-over-year. And this increase was driven by the company's strategic focus on recruiting AI professionals and developing new systems and applications to improve operational efficiency and enhance our users' experience.
Speaker Change: Jain significantly significantly increase our borrower acquisition activities in China, 24, leading to a higher real estate costs, including borrower acquisition and the credit report expenses.
Speaker Change: Marketing expenses rose by RMB 375 million compare to 2020 free.
Speaker Change: As a result, our newborn accounted for 33.
Speaker Change: 2% of the total borrower base.
Speaker Change: With a 2.774 million new borrowers added throughout the year, which is a year over year increase of over 45%.
Speaker Change: And the third reason I wanted to share ideas about the higher R&D expenses.
Speaker Change: The year over 'twenty 'twenty four R&D expenses.
Speaker Change: Increased by more than RMB $76 million, which has a 25, 7% rise year over year.
Speaker Change: And this increase was driven by the company's strategic focus on recruiting AI professionals, and developing new systems and applications to improve operational efficiency and enhance our users.
Chunlin Fan: So. Our strategic investment in the borrower acquisition and technology and also R&D sector are designed to strengthen our long-term growth momentum. And so going forward with rapid growth in facilitation volumes, effective control of the revenue share from guarantee services, and further implementation of AI applications, our company expects continuous improvements in borrower conversion and retention rates, which will significantly enhance our profitability. As you have noticed, we have added a profit-related indicator in addition to the number of transactions we have issued. We will issue a profit-related indicator for non-commercial transactions in the next quarter. This is the most accurate indicator of the company's current main business.
Speaker Change: Periods.
Speaker Change: So.
Speaker Change: Our strategic investments in the borrower acquisition and technology and also R&D sector are designed to strengthen our long term growth momentum.
So going forward with rapid growth in facilitation volumes.
Speaker Change: Effective control of the revenue share from guarantee services and further implementation of AI applications.
Speaker Change: Our company is that continues.
Speaker Change: Improvements in borrower conversion and retention rates, which will significantly enhance our profitability.
Speaker Change: And a lot of high end on the aggregate $3 two at home, but if I believe I saw them in smaller gauge who shall I do not see any wild in the high <unk> neither in Shanghai instability.
Speaker Change: Yeah, Amit so the bubble wait till it gets from Shire gets you towards that faith hung deals in very challenging during the time it took them to diagnose Australian coatings and if Saddam child. So you can hear me.
Chunlin Fan: You probably also noticed from what Mr. Yan just said before that starting in the year of 2025, so in addition to providing facilitation volume guidance, we will also offer a profit guidance metric. During each earning release, we will provide a forecast for the next quarter's non-GAAP income from operations. which could reflect our company's core business profitability most accurately. The company's performance has improved significantly. In fact, the Q4 of 2024 has already received preliminary verification. Q4affle distribution net is now 4.02 billion yuan all by fair notes According to the forecast data, Q1 of 2025, the non-common-purchase net profit will be between 5.7 and 6.3 billion yuan, and the growth rate will be between 80% and 90%.
Speaker Change: You probably also noticed from what Mr. Ian just said before that.
Speaker Change: Starting in the year of 275. So in addition to providing a facilitation volume guidance. We will also offer a profit guidance metric during each earning release, we will provide a forecast for the next quarters non-GAAP income from operations, which.
Speaker Change: Could reflect the company's core business profitability most accurately.
Speaker Change: Yeah.
Speaker Change: Yeah, It's a good chance, we'll guys I'm sure Saturday night queues and good dollars triple the ensign.
Speaker Change: Conversely, the Feight homes encouraging in Union City, I mean are you pumping.
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Speaker Change: Promptly tender offer door stop up Athens deposit up average as of July.
Chunlin Fan: So our company's fourth quarter performance has already provided preliminary validation of this strategy. So in the fourth quarter, our non-gap income from operations reached RMB 402 million, showing significant growth both year-over-year and quarter-over-quarter. We expect non-gap income from operations for the first quarter of 2025 to be in the range of RMB 570 to 630 million. representing a year-over-year increase of from 80% to 99%. So our performance guidance this time has two very clear signals. First, in terms of performance, Jiayin Technology will return to a high-quality, fast-growing track. Second, we are fully committed to improving profitability in 2025.
Speaker Change: So our company's fourth quarter performance has already provided.
Speaker Change: Preliminary validation of the this strategy.
Speaker Change: So in the fourth quarter, our non-GAAP income from operations reached RMB 402 million showing significant growth both year over year and quarter over quarter. We expect non-GAAP income from operations for the first quarter of 2025 to be in the range of RMB five <unk>.
Speaker Change: <unk> 70.
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Speaker Change: Representing a year over year increase of from 80% to 99%.
Speaker Change: So I would say so yes.
Speaker Change: Engineered out asking us to pay down since you know you're going to see that kind of a giant coaches downturns I called that out in telecom and data quite all.
Speaker Change: Adding all of them.
Speaker Change: Yeah.
Speaker Change: So Jason tenacious.
Chunlin Fan: So our performance guidance sends two clear signals. First, in terms of our business goal, we are returning to a path of high quality and rapid growth. And second, in terms of profitability, we are highly confident in achieving significant improvement in the year of 2025. In addition, I would like to reiterate that President Yan just announced that the Board of Directors has passed a resolution to further increase the share ratio. Starting in 2025, we will increase our share ratio to about 30% of last year's net profit. In the future, the company will bring higher returns to investors and shareholders.
So our performance guidance since two clear signals first.
Speaker Change: In term of our business go.
Speaker Change: We are returning to a path of high quality and a rapid route and second in terms of profitability. We are highly confident in achieving significant improvements in the year of 2025.
Speaker Change: I was hoping you'd have all ancillary shambolic Punkahwallah championship golf and hunting.
Speaker Change: I think Robin you in household and Jonathan if it won't be the case.
Speaker Change: And all of the financing and the patent defense, it's all yours going through that channel Africa, you're talking about Huckabee won't that I can call them Paul.
Chunlin Fan: So I want to recall that we are increasing our dividend policy from no less than 15% of the previous fiscal year net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. So in this way, we would like to continue to share the long-term benefits of the company's high-quality development. Okay, this is my answer to the first question.
Speaker Change: So I want to recall that.
Speaker Change: We are increasing our oh, so we are increasing our dividend policy from no less than 15% of the previous fiscal year net profit after tax to approximately 30% of the previous fiscal years net profit after tax.
Speaker Change: So this way we are into that we are in.
Speaker Change: We would like to continue to sharing their long term profit or benefits of the company's high quality development.
Yifang Xu: For the second question, let's have Yifang Xu to answer it. Okay, so that will be my answer to your first question.
Speaker Change: I'll answer what they're dealing with their paid out there when he came on when he comes home and I think that's what data.
Speaker Change: Okay. So that will be my answer to your first question I will give the second question to Mr. Hu.
Yifang Xu: I will give the second question to Mr. Xu. Thank you, Mr. Fan. We are going to talk about customer experience and how we approach this issue in Jiayin Technology. When we talk about this issue, we often think of consumer credit. We often focus on the financial attributes of consumer credit. Therefore, we emphasize the professionalism and ability of risk management. This company is extremely important. However, we often ignore the ability of consumer credit as a consumer product attribute.
Speaker Change: Dmitry.
Speaker Change: Thank you.
Speaker Change: Tony just show a mainline churches I'll talk when you think he told yes.
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Speaker Change: Yeah.
Speaker Change: Our approach to Goldman Teed up.
Speaker Change: I know you mentioned that you state your question totally but it.
Speaker Change: It sounds like in that.
Speaker Change: That has been cancelled.
Speaker Change: That team also saw.
Speaker Change: So a natural way for example, I need the financing me, Hey, gentlemen says just your bundle yard.
Speaker Change: All of them that you shared with me a whole host of the function itself I think that you will do it myself.
Yifang Xu: In other words, Okay, so thank you, Mr. Fan. So usually people focus heavily on the financial attributes of the consumer credit, emphasizing the professionalism and capability of risk management, which is very important for our industry, but while overlooking the consumer product aspect of consumer credit, ultimately the borrower needs to be willing to pay and recognize the value which strengthens borrower retention. In this regard, we focus on the entire industry chain and the product process to enhance borrower stiffness. For example, If we look at the industry chain and product flow, we can see that there are a few points of focus for Jiayin in terms of customer connectivity.
Speaker Change: Seen done M&A altschul unless a lot.
Speaker Change: Oh, okay. So thank.
Speaker Change: Thank you Mr. Fun, so usually a people focused heavily on their financial attributes of the consumer credit.
Speaker Change: Emphasizing the appropriate personal lithium and capability of our risk measurement.
Speaker Change: Which is very important for our industry, but ah well overlooking the consumer product aspect of consumer credit.
Speaker Change: Ultimately the board needs to be willing to pay and they recognize the value of which scripts.
Speaker Change: Our retention so.
Speaker Change: In.
Speaker Change: This regard.
Speaker Change: Where you focus on the entire industry chain and our products our processes Treehouse borrower stickiness for example.
Speaker Change: Now a little about Chinese telecom attempting no changzhou fine Jim at that time.
Speaker Change: Oh, Gosh, Julian J D.
Yifang Xu: One is that we will strengthen our cooperation with the traffic end, so that customers who have experienced Jiayin products can meet us again, and we can recognize them and provide better products to our customers. In terms of our internal process, we are also strengthening our customer experience and a point of focus to improve the quality of our products. In the same way, in terms of customer service, we are also very concerned about improving the rights and experience of high-quality customers. Finally, by providing customer service in a one-stop service, we can enable customers to experience multi-platform service multiple times.
Speaker Change: Oh, Yeah, no you are not sure what that town Hall, you'll know Glenda.
Speaker Change: And of course, you're young boys that engine.
Speaker Change: I'm going to say.
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Speaker Change: Well my salary to short haul.
Speaker Change: Sure Todd I'm going to kick it off.
Speaker Change: Hopefully you'll go ahead.
Speaker Change: Oh, no matter to them and therefore, they want to go next.
Sean Zhang: Thank you Sean.
Speaker Change: Michel for some push on pizza.
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Speaker Change: Yeah, you did see IBM, well Novatel kofu, well, yeah, I don't think you should done casado Woop Woop sound. Just so you know what you call what a Shanghai Chengdu, Yeah sure Vishal plan today.
Speaker Change: Now, let's talk about your guys' initial Xi'an cocoa and uncle Schild towards the saw mill Kinder talking casualty yeah. She's got you it's a woman's.
Yifang Xu: This is also a way to make the platform more open and to improve the optimization and connectivity of our customers who are aware of our Jiayin brand.
Speaker Change: And European cash.
Speaker Change: And that's how you found that you can call out your tour Archie tissue Okay.
Speaker Change: <unk>, Okay. That's helpful.
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Yifang Xu: Okay, so I will give four examples other in this case. First is that we are strengthening cooperation with some popular traffic platforms. We could provide borrowers who have experienced our products before with better offerings and experience. Second is to internally improve the seamless connection between the marketing and risk control approval process. Third, we would like to enhance the customer service, membership benefits, and repayment reminders to improve the experience and privileges from our premium borrowers. And fourth, we would like to implement one-stop credit services to allow our borrower to access multiple funding sources and even experiencing multi-platform credit solutions.
Speaker Change: Okay. So I will give for example, other this case first is that we.
Speaker Change: We are strengthening cooperation with some popular traffic platforms.
Speaker Change: We could provide borrowers who have experienced our products before with a better offerings and experience.
Speaker Change: Second is to improve the.
Speaker Change: So internally improved the seamless connection.
Speaker Change: The marketing and our risk control approval approval process and third is we would like to enhance customer service membership benefits and a repayment reminders to improve their experience and privileges from our premium borrowers.
Speaker Change: And fourth we will like to implement one stop credit services to award our borrower to access multiple funding sources and even experiencing multi platform creative solutions.
Yifang Xu: Another important point is to open up the industrial production chain through multi-modal innovative business cooperation and focus on serving core customers. This will also help us promote the development of our customer group in a more cost-effective direction. Another very important point is that we would like to integrate the whole industry ecosystem through innovative business models focusing on our core borrowers and driving the borrower base towards better pricing structure.
Speaker Change: I don't think I'm, telling you again she said she was just at home.
Speaker Change: And then telecom it costs a lot more Saddam trumping someone whatsoever, Alex you teach element for Hudson.
Speaker Change: Florida, Yes, you see how much we don't call it sounds like you're doing a.
Speaker Change: By that.
Speaker Change: Yeah.
Speaker Change: Another very important point is that we would like to integrate the whole industry ecosystem through our innovative business models, focusing on our core borrowers and dragging the borrower base tours better pricing structures.
Yifang Xu: Lastly, I'd like to talk about the direction of the new customer group. In the direction of the new customer group, our current plan will be based on the current market positioning. In the process, we will still pursue the acquisition and retention of high-quality customers. Finally, we hope to achieve a diversified supply chain at the product, customer and institution levels. So lastly, about our new borrower groups, we continue to adhere to our existing market positioning. We are constantly pursuing the acquisition and retention of our high-quality borrowers. So this approach enabled us to achieve a diversified layout across products, borrowers, and financial institutions.
Speaker Change: That's only two Donnie got Joe Shan Shan Nen.
Speaker Change: I. Thank all of you to find out when you look at your house you might be Jensen said, they just have a question from.
Speaker Change: My question is in that way.
Speaker Change: Tradeshow, you'll just cope with what she's my notes that are due.
Speaker Change: Your home she she won't say turnkey Duan Choledochal, a chico's or she Selman just go through your money.
Speaker Change: Great.
Yeah.
Speaker Change: So lastly, about our new borrower groups.
Speaker Change: We continue to add to her to our existing marketing our market positioning.
Speaker Change: Well the.
Speaker Change: We are constantly pursuing the acquisition and retention of our high quality borrowers. So this approach enabled us to achieve a diversified lay out across put us borrowers in our financial institutions.
Operator: Okay, thank you, Yifang. Okay, thank you, Hua. That will conclude my answer to your question. Thank you. Seeing no more questions, I will return the call to Sean for closing remarks. Please go ahead. Thank you, operator, and thank you all for participating on today's call, and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you all again. This concludes the call. You may now disconnect.
Speaker Change: Yeah.
Speaker Change: I wanted to show.
Speaker Change: Okay. Thank.
Speaker Change: Thank you walk that will conclude my answer to your question.
Speaker Change: Thank you seeing no more questions I'll return the call to Shaun for closing remarks. Please go ahead.
Speaker Change: Thank you operator, and thank you all for participating on today's call and thank you for your support we appreciate your interest and look forward to reporting to you again next quarter on our progress.
Speaker Change: Thank you all again this concludes the call you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Operator: Thank you for watching!
Speaker Change: Okay.
Speaker Change: [music].