360 Finance Inc (NASDAQ:QFIN) Q1 2019 Earnings Conference Call - Final Transcript

May 21, 2019 • 08:00 am ET


360 Finance Inc (NASDAQ:QFIN) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the 360 Finance First quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would like to now turn the conference over to George Shao, Head of Investor Relations. Please go ahead.

George Shao

Hello everyone and welcome to our first quarter of 2019 earnings conference call. Our results were issued earlier today and can be found on IR section of our website. Joining today on the call are Mr. Jun Xu, our CEO; Mr. Haisheng Wu, our President; with Mr. Alex Wu, our CFO; Mr. Yan Zheng, our Vice President; and Fan Zhang, our General Counsel.

Before we begin our prepared remarks, I would like to remind you of the Company's Safe Harbor statement in connection with today's conference call. Except for any historical information, the material discussed on this conference call may contain forward-looking statements. These statements are based on our current plans, estimates and projections. And therefore, you should not place undue reliance on them.

Forward-looking statements involve inherent risks and uncertainties. We caution that a number of important factors could have caused actual results to differ materially from those contained in any forward-looking statement. For more information about the potential risks and uncertainties, please refer to the Company's filings with the SEC including its registration statement.

In addition, this call will also include discussions of certain non-GAAP financial measures. Please refer to our earnings release which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in renminbi.

So with that, I will now turn the call over to our CEO, Mr. Xu.

Jun Xu

All right. Thank you George and thank you all for joining us today. We're pleased to report another strong quarter, and I will cover full aspects of the business. First, we keep setting new records in terms of growth. We originated RMB41 billion of loan and the outstanding balance reached RMB53 billion widening our leadership in the sector. We continue to invest heavily in the future. We added 3.5 million new users with credit line and ]2.2 million (ph) of borrowers, both a new record for the Company.

We will continue the growth strategy for the next couple of years. We have less than 1% of the consumer lending market in China and the headroom for growth is immense. The return on investment for new customer acquisition remains very attractive. We don't want to be a niche player. Our aspiration is to be a leading platform and serve most of the Chinese households with borrowing needs over time.

We believe, in our sector, growth is a privilege for leading platform rather than a choice. It requires a platform to possess the ability to source new customers at scale, to secure sufficient funding and to manage credit