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

Sep 27, 2019 • 08:00 am ET

Previous

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

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

[Operator Instructions] We have our first question coming from the line of Yirang Zhong [Phonetic] of Credit Suisse. Please go ahead.

Analyst
Yirang Zhong

[Foreign Speech] Thank you for taking my questions. I have two questions here. First question is, can the management please share some more details as to the institutional partners that you are working with, who are the main ones, and is it all under the credit insurance model? And secondly, we see that the loan facilitation take rate has declined Q-on-Q and also year-on-year. Can you please share with us the main drivers? And beyond the higher insurance cost, is there a difference in the product strategy between the new model and the P2P model? Thank you.

Executive
Yanjun Lin

Okay. Thanks. Thanks so much for the questions. I think I will -- just first questions first. I think the first question is about the Q3 guidance and the institutional cooperation. I think we have been expanding our cooperation with different financial institutions. I think one maybe including [Indecipherable] connecting or number of other commercial payments as well.

The second is about regarding the revenue take rate. I think It does has some transition from P2P model to financial institution model. I think it's mainly because the tail-end would be a little bit different for an institution like a banks. They tend to have a less or shorter time period whereas in the previous P2P model the time period will be little bit longer because the longer period, the revenue will tend to be higher, following the recognition upfront. I think the allocation about the financial institutions is now all insuranced by the PICC.

Analyst
Yirang Zhong

Okay. Thank you.

Executive
Yanjun Lin

Okay. Second question?

Operator
Operator

[Operator Instructions] We have our next question coming from the line of John Chai [Phonetic] of Morgan Stanley. Please go ahead. Yes, Mr. John, Chai, your line is open now. Please go ahead.

Analyst
John Chai

Hello. Hi. This is John . Thank you for taking my questions. So I saw the announcement that we acquired a minority stake in a consumer finance company. Just wonder what sort of benefit do we see from the investment except for the financial investment? So, as compared to a normal business corporation, as a consumer finance company do you see any other strategic value from that investment? Thank you very much.

Executive
Yanjun Lin

Okay. Yes. I think thanks for noting our recent announcement about its investment into the consumer finance company. As you can see, I think we are the second largest shareholder of this consumer finance company. So, we are not purely a finance investor. We are actually a strategic investor. And we're also going to working very closely with the company and also the other shareholder of the company as well. I think, as you see that, there are not many consumer finance company license in China. It's definitely a good strategic investment for us. And also [Indecipherable] input from us, especially from the online capability and also the fintech solutions. So I think we expect more and more