Pintec Technology Holdings Limited (NASDAQ:PT) Q2 2020 Earnings Conference Call - Final Transcript
Sep 21, 2020 • 08:00 am ET
Victor Huike Li
growth strategies was made after careful consideration of the current market conditions and our unique competitive advantages. As part of the strategic pivot, we have now divided our services into digital technical services and digital operation services, which include our licensed financial services. Over the long-term, we plan to organize the revenue and profitability of our digital technical services, and stabilize our digital operation services by refining our asset quality and thus reducing the associated risks.
To further enhance our daily operations, we are also focused on optimizing our product matrix, employee structure, and costs and expenses. We remain confident that such measures will help to improve our profitability on a gradual basis going forward, despite the near-term headwinds.
For the remainder of my prepared remarks, I would like to provide everyone with some additional details and updates regarding both our digital technical services and digital operation services. Starting with the former. For digital technical services, we are focused on gradually ramping up our revenue while also refining our organizational structure, marketing strategies and product matrix. This business segment already include a number of state-of-art solutions in certain areas as digital retail credit management, corporate credit process management, intelligent wealth management, financial robotic process automation, and digital transformation for banks.
For digital technical services, in the first half of 2020, we established a more segmented team structure, with sales, pre-sales support and delivery teams. We have also adjusted our overall team size to accelerate our business development efforts, focused on controlling expenses and optimize our compensation system to better connect with employee performance.
On the marketing front, we continue to utilize our experiences in big data, AI, process automation, financial services, and application innovation to combine our SaaS system services with our software development services. We are also leveraging these core competencies to establish a variety of partnerships in the form of innovation centers, joint ventures, and more.
Following our detailed review of our existing product offerings, we have decided to allocate our resources to those products with higher profit margins on favorable market prospects, while reducing our investment into those products with lower profit margins. As a result of these efforts, our digital technical services entered into a period of rapid development during the first half of 2020, and we remain quite optimistic about the growth potential going forward.
In fact, many of our partnerships and initiatives continued to make good progress in the first half of 2020. For example, our Australian subsidiary InfraRisk was successful in leveraging our digital retail credit management solutions to launch a new digital credit service with our Australian partners. Similar to the impact of Afterpay's Buy Now, Pay Later model and installment credit consumption markets, we expect this product to increase loan services access to personal credit solutions going forward.
We also continue to make good progress implementing our corporate lending process management solutions. During the period, InfraRisk utilized our well-recognized automated credit process management tool, namely, CVX to help Judo Bank upgrade