9F Inc. (NASDAQ:JFU) Q2 2019 Earnings Conference Call - Final Transcript

Sep 27, 2019 • 08:00 am ET


9F Inc. (NASDAQ:JFU) Q2 2019 Earnings Conference Call - Final Transcript


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Lei Sun

way provides us with a number of significant advantage in that current environment. First of all, operating as a technology platform gives [Phonetic] us recurring and capital light business model and reduce our regulatory risk. In this new business model, we are one of the few personal lending platforms who do not assume any credit risks and our revenue is only generated from technology-related service.

Our Institutional funding partners are also all licensed institutions that are highly regulated and have a strict process put in place to prevent default. Second, we're able to maintain our strong cash position and robust leverage for future growth. Borrowers pays insurance premium and guarantee fee and make contributions to deposit account. We only charge a technology service fee to financial institutions which can be used as working capital and reduce our need to hold any restricted cash as was required under the [Indecipherable] model.

Lastly, the platform's open architecture ensures its open ended scalability and long term sustainability by incorporating merchant partners with both online and offline consumers across various consumption scenarios who work with us to drive sales and improve consumer engagement. I'm pleased with the initial results and we are now working on future diversifying our funding source to drive future growth.

As of June 30, 2019, we had established partnerships with over 20 financial institutions with a total credit line of RMB70 billion. We'll also continue to invest and acquire licensed financial institutions to diversify our portfolio of our service and create synergies. We strategically acquired a stake in a licensed consumer finance company in China, which will complement our existing consumer credit loan business and diversify the products we have on offer.

Growth across our business is supported by our expanding new space and the continuous investment in advanced technology that leverage big data, artificial intelligence and the cloud computing to ensure our system can scale with our growth. In September, we announced a news SaaS services, 9F Cloud, to provide customized digital finance service for merchants and the financial institutional partners. 9F Cloud create synergies between our merchants and financial institution partners, enabling them to leverage each others respective strength in consumer finance and user acquisition.

I'm pleased with the solid results and look forward to leveraging our strong technology capabilities to provide wider additional service to our partners.

Loan origination volumes from institutional funding partners are growing rapidly and will serve as a platform for future -- substantially improves regardless of what regulatory environment emerges. Our focus is on building this business for long term. I remain fully convinced that this sector continue to generate substantial growth opportunities and I'm confident in our ability to capture them.

Now, I will turn call to our CFO, Mr. Sam Lin . Please go ahead.

Yanjun Lin

Thanks, Lei Sun, and thanks everyone, for joining us on this Friday evening. As Mr. Sun just mentioned, an uncertain regulatory environment continues to hang over the online lending industry, which impacted our performance during the