Jiayin Group Inc. (NASDAQ:JFIN) Q2 2020 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 08:00 am ET


Jiayin Group Inc. (NASDAQ:JFIN) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group Second Quarter 2020 Earnings Conference Call. At this time, 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 today's call [Operator Instructions]

Now, I'll turn the call over to Susie Wang, Director of The Blueshirt Group Asia. Ms. Wang, please proceed.

Yuanheng Susie Wang

Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the second quarter of 2020. We released the results early today. The press release is available on the company's website as well as on Newswire services.

On the call with me today are Mr. Yan Dinggui, Chief Executive Officer; Mr. Charlie Fan, 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 provision of the U.S. Private Securities 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 company's public filings with the SEC. 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 stated, all figures mentioned during the conference call are in Chinese renminbi.

With that, let me turn -- now turn the call over to our CEO, Yan Dinggui. Mr. Yan will speak in Chinese and then our IR Director, Shelley Bai, will translate his comments to English. Go ahead, Mr. Yan.

Dinggui Yan

Hello, everyone. Thank you for joining our second quarter of 2020 earnings conference call. We are pleased to report a solid quarter with significant business progress in the face of COVID-19 headwinds and ongoing regulatory uncertainties. Most excitingly, we have successfully transformed our business by transitioning the source of funding from individual investors to institutional partners.

In Q2, loan origination volume facilities by institutional investors reached to 98.6% compared with nil in the same period of 2019. This was also up from 26.9% in Q1. This is a remarkable accomplishment, especially having achieved during the COVID-19 pandemic. I would like to thank our team and our partners for making this happen with their dedication and superior execution.

Since the beginning of April, all new loans were funded by institutions. We successfully transformed ourselves from a P2P company to a financial technology company with multiple strategic institutional partners and great potential for growth. Most notably, we maintained healthy profitability.

Considering that our loan origination volume was down over 20% from the prior quarter, it was a great accomplishment to generate net income of RMB41.1 million in Q2, which was even up slightly from Q1. This fully demonstrates the effectiveness of our corporate control approach and our improved operating efficiency.

We are poised