NASDAQ:JFIN Jiayin Group Q1 2024 Earnings Report $10.42 +0.15 (+1.46%) Closing price 04/17/2025 04:00 PM EasternExtended Trading$10.46 +0.04 (+0.43%) As of 04/17/2025 05:39 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Jiayin Group EPS ResultsActual EPS$0.72Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AJiayin Group Revenue ResultsActual Revenue$204.33 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AJiayin Group Announcement DetailsQuarterQ1 2024Date6/6/2024TimeBefore Market OpensConference Call DateThursday, June 6, 2024Conference Call Time8:00AM ETUpcoming EarningsJiayin Group's Q1 2025 earnings is scheduled for Friday, June 6, 2025, with a conference call scheduled on Thursday, June 5, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Jiayin Group Q1 2024 Earnings Call TranscriptProvided by QuartrJune 6, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Gyns Group's First Quarter 2024 Earnings Conference Call. Currently, all participants are in listen only mode. Call. As a reminder, we are recording today's call. Operator00:00:20If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Sean Sheng from Investor Relations of Jiaying Group. Please proceed. Speaker 100:00:33Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the Q1 of 2024. We released our earnings results earlier today. The press release is available on the company's website as well as from newswire services. Speaker 100:00:54On the call with me today are Mr. Yan Ding Gui, Chief Executive Officer Mr. Fan Chun Lin, Chief Financial Officer and Mr. Zhu Yifeng, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward looking statements made under the Safe Harbor provisions of the U. Speaker 100:01:12S. 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, except as required on our applicable law. Speaker 100:01:35Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese renminbi. With that, let me now turn the call over to our CEO, Mr. Yan Dingwei. Mr. Yan will deliver his remarks in Chinese and I will follow-up with corresponding English translations. Speaker 100:01:53Please go ahead, Mr. Yan. Hello, everyone. Thank you for joining our Q1 2024 earnings conference call. Including intelligent search and intelligent recommendation, the extensive and in-depth application of AI technology has significantly improved the company's operational efficiency and we are full of confidence in further achieving data driven developments in the future. Speaker 100:04:05We have gradually formed a diverse and long term stable network of institutional partnerships. As of the end of the Q1, we have established partnerships with 70 financial institutions and are in discussions with additional 32 financial institutions. At the same time, we are beginning to explore cooperation with foreign banks as our overseas business development is under progress. In addition, we have deepened our cooperation with financial institutions in operations, technology, risk management and consumer rights protection. These comprehensive collaborations are further empowering the financial institutions business processes through technology leading to a complementary win win outcomes for our company and our institutional partners. Speaker 100:05:09Further, we are also exploring cooperations on borrower acquisition to further optimize costs. Continuously optimizing the risk performance of borrowers is the cornerstone for the company's long term and stable development. Although we have observed some improvements among some early risk indicators in the Q1, we will still continue to prioritize risk factors while pursuing growth to balance the speed and quality of development and achieve sustainable development of scale and efficiency. The 61 to 90 days delinquency rate remaining at 0.68% meeting expectations. Thanks for our ability to identify high quality borrower groups and our more refined risk control strategy. Speaker 100:07:23The proportion of new borrowers reached 27% in this quarter, maintaining a relatively stable level. In addition, the average borrowing amount per borrowing in the Q1 was Speaker 200:07:38RMB10,570 Speaker 100:07:42representing a year on year increase of 60.6%. In addition to deepening our original borrower acquisition channel metrics, we have also continuously increased the proportion of borrower acquisition through the many apps on leading Internet platforms. We focus on the innovative model with good risk performance and continuously optimize costs, striving to raise more target users and maintain growth of authority. Our overseas business achieved favorable results in the Q1. In the Indonesian market, the number of newly registered users through our partnered local business entity increased 37% quarter on quarter. Speaker 100:09:50While actively optimizing product structure in response to new local regulatory requirements, we have learned that our Indonesian business partner was in discussion with 5 local licensed financial institutions in the Q1, aiming to further expand the volume of loan facilitation business in Indonesia in the future. The business performance in Nigeria showed steady progress with an increase in the amount of borrowing loan volume and new borrowers. At the same time, the local exchange rates gradually stabilized towards the end of this quarter, providing favorable conditions for our further market expansions in the region. In the Mexican market, the lending scale of the local business entity we invested in also grew rapidly in this quarter. In addition, we are actively exploring opportunities to expand to more overseas regions and overseas business will also be one of the key focuses of the group's future development. Speaker 100:11:05We will further increase our investments in overseas businesses. We always place great emphasis on consumer rights protection and anti fraud efforts in finance services. Our white paper on consumer rights protection in 2023 released at the beginning of this year elaborates on the company's achievements in the systematic and refined operation of consumer protection, including building anti fraud firewalls, improving customer service quality and efficiency, strengthening external cooperation and innovating consumer protection education. In terms of anti fraud, the company's fraud prevention and control report for the Q1 reveals that we have cumulatively identified and blocked 65,000 malicious attacks from illicit industry and manually investigated and disposed of 20,400 applications from potentially high risk borrowers in the Q1. In addition, the company has jointly conducted anti fraud lectures with law enforcement departments and collaborated to establish a cooperation mechanism, effectively combating financial, gray and black industries as well as illegal intermediate Leveraging technological innovation, the company has built a solid anti fraud defense line to safeguard the financial security of borrowers and continuously contribute to profiling the financial market environment. Speaker 100:15:31Based on our confidence in the company's sustained future growth and the company's ample cash reserves, I am pleased to announce the company's plan of the first tranche of dividend distribution for 2024. The company plans to distribute a cash dividend of USD0.5 per ADS. Further details and relevant dates regarding these dividend payout will be announced separately after further confirmation by the Board of Directors. With regard to share repurchase plan, in the previous quarter, the Board of Directors approved raising the upper limit of the current share repurchase plan to USD 30,000,000 and recently further approved exchanging the validity period of the repurchase plan to June 12, 2025. In the future, we will continue to reward our shareholders, enhance the sense of gain among investors and boost their long term confidence in the company's development. Speaker 100:16:51Finally, considering the level of market risk and the demand for business growth, we have decided to set the guidance of loan facilitation volume for the Q2 of 2024 at RMB23 1,000,000,000. With that, I will now turn the call over to our CFO, Mr. Fan Chun Li. Please go ahead. Thank you. Speaker 200:17:29Thank you, Mr. Yan, and hello, everyone, for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB and all percentage changes refer to year over year comparisons unless otherwise noted. As Mr. Speaker 200:17:48Yan mentioned earlier, our company successfully achieved its strategic targets in the Q1. We have also recorded solid financial results. Notably, our loan facilitation volume grew by 13.6 percent to RMB 22,500,000,000. Online revenue was about RMB 1,480,000,000, up 31.5 percent as our other revenue dropped to RMB119.8 million from RMB126.9 million in the same period last year. Moving on to costs. Speaker 200:18:25Facilitation and servicing expenses were RMB667 1,000,000 representing an increase of 143.3 percent from the same period of 2023, primarily due to the increase of guarantee costs incurred and increased loan facilitation volume. Allowance for uncladable receivables, counter assets, loans receivable and others were RMB 2,600,000 compared with RMB6.7 million in the Q1 of 2023. Sales and marketing expense was RMB359.8 million, representing a decrease of 5.5% from the same period of 2023, primarily due to lower commission expenses. G and A expense was RMB 46,200,000 compared with RMB 46,400,000 in the Q1 of 2023. R and D expense was RMB83.3 million, representing an increase of 28.5% from the same period of 2023, primarily due to higher employee compensation benefits as the number of our research and development employees increased. Speaker 200:19:43Consequently, our net income for the Q1 was RMB273,100,000 representing a decrease of 2.4 percent from RMB279,700,000 in the same period of 2023. Our basic and diluted net income per share was $1.29 compared to $1.31 in the Q1 of 2023. Basic and diluted net income per ADS were both 5 point 16 compared to 5.24 in the Q1 of 2023. We are pleased to report a significant improvement in our cash position this quarter. As of March 31, 2024, our cash and cash equivalents reached RMB558,200,000 as a potential increase from $370,200,000 at the end of December 31, 2023. Speaker 200:20:46This growth highlights our strong financial discipline and operational efficiency. With that, we can open the call for questions. Mr. Xu, our Chief Risk Officer and I will answer your questions. Operator, please proceed. Operator00:21:03Thank you. Speaker 300:21:38First question is from the line of Hua Operator00:21:40Rong from Jin Yu Asset. Please go ahead. Speaker 400:22:25Hello, management. I'm Huaruo from Jin Yu SAT and I have two questions. The first one is compared to the previous period of the rapid growth, the company's loan facilitation volume in the Q1 of this year increased by 13.6%. Could you please explain the main reasons for the slowdown in growth, which borrower acquisition channels will be the primary focus in the future? And my second question is the revenue in the Q1 of this year decreased compared to the 4th quarter of 2023, but cash positions increased by nearly RMB 200,000,000 by the end of the Q1. Speaker 400:23:18Could you please explain the reason for this? That's all. Thank you. Speaker 100:23:55Hello, Byron. I'm Xu Yifeng. Thank you for your question and thank you for your long term support on us. And I will answer about your first question. Okay. Speaker 100:24:55So since 2019, our explosive growth in recent years after the our transformation is attributed to over a decade of dedication in the industry includes two reasons. First is the accumulation of the operational and risk management capabilities. And second is the accumulation of market clients, the users borrowers through the in-depth industry development and growth. With the steady advancement of the industry's regulatory framework, orderly market development and our competitive landscape that remains dynamically stable, we have also still achieved a relatively solid performance for this quarter with a 13.6% growth. So the growth we observed from are from cautious and systematic business operations that consider the market and credit risk assessments. Speaker 100:27:22While the macroeconomic environment remains positive trends, we maintain a cautiously optimistic outlook regarding its level. So the growth from so one thing is that the growth was from our borrower acquisitions, we continue to actively acquire upstream borrowers in the market, particularly focused on the expansion and development of high quality borrower segments. And on the other hand, we pursue prudent and rational risk management in the operation of our current borrower base. We are currently exploring the development of differentiated and diverse products and services that incorporate risk considerations aiming for further breakthrough in attracting and retaining high quality borrower groups. So just as important as the new borrowers, our current borrowers are also very important. Speaker 100:30:32So we will so in the future, we will look for the potential growth considering both risk and profit. So as we talk about the risk, we are just like we have talked before that we are exploring differentiated products and services that aiming for our high quality borrower groups. And also this is in line with our ongoing strategy to enhance our capability in managing high quality borrower operations. This is my answer for your first question. And your second question, Mr. Speaker 100:32:28Yan, can you answer for that? So in the Q1 of 2024, the revenue was RMB475 1,000,000,000, which has decreased from RMB1.6 billion in the Q4 2023. There are some reasons for that. The first reason is that the revenue structure has changed with a higher proportion coming from more origination services and a lower proportion from guarantee services. And this trend is expected to continue. Speaker 100:34:48As I have mentioned before, the profit margin for guaranteed income is lower. So the optimization of the revenue structure has improved the company's operating profit margin. And Xiaoying's income from operation in the Q1 was about RMB316 1,000,000, which is an increase of more than 36% compared to the RMB232 1,000,000 in the Q4 of the previous year. And the operating cash flow has significantly increased. That's the first reason. Speaker 100:35:50So the second reason is that our accounts receivable recoveries are performing very well and the funds tied up in the margins are being continuously released. So these are the two main reasons, but other than that, remember, in the Q1, we have also paid out cash dividends with a total amount of about RMB152 1,000,000. So if you're counting in this part of cash, the company's cash balance will be even higher. Okay. So the continuous optimization of the company's cash flow will lay a solid foundation for the company's long term sustainable development and better returns for shareholders in the future. Speaker 100:37:53Just like what Mr. Yan, our Chairman, just said before, we will continue to Our overseas business achieved favorable results in the Q1. In the Indonesian market, the number of newly registered users Speaker 300:38:25Okay. Let me do the translation. This is Yushan Chen from Huata Securities. And I got two questions. The first one is facilitation volume and revenue was increased year over year in the Q1 2024, but net income slightly declined. Speaker 300:38:44Combination market is one of the key targets for the company's overseas business. What are the company's view on the Indonesian regulators' requirements for the interest rate reduction? Does the company have any effective countermeasures for that? Thanks. Speaker 100:40:37Okay. So in the Q1 of 2024, our loan facilitation volume increased by 13.6% year over year and the revenue increased by 31.5% year over year. However, the net profit decreased slightly by 2.4% year over year. I think there are some main reasons are as follows. So the first reason is that it's about the change in our revenue structure. Speaker 100:41:10Throughout the year of 2023, especially in the second half, the company's revenue from guarantee services increased rapidly. And so the profit margin from this revenue, this kind of revenue is lower compared to our loan facilitation services. If we exclude this factor, both our S and M and G and A expenses slightly decreased in absolute amounts year over year due to our improved operational efficiency and R and D expenses increased year over year reflecting our continued investment in technology and research development. That's the first reason. So the second reason is about the decline of our take rate. Speaker 100:42:30So although the loan facilitation volume increased year over year in the Q1 of 2024, the overall take rate of the company's loan facilitation services actually decreased year over year. Okay. So talking about the future trend of our profit margins, I want to talk some more information. So the firstly, within the downward interest rate cycle, our pricing and take rate will be relatively steady, but there will be some decrease to benefit our borrowers. That's the first one. Speaker 100:43:52The second is about decreasing proportion of our guarantee service revenue. Just as what I mentioned before, the proportion of the revenue from guaranteed services will continue to decline, which will positively impacting overall profit margins. Third one is about a stable growth and operational efficiency. So with robust growth in scale and continuous improvement in operational efficiency, cost effectiveness will further improve, which will also positively impact our profit margins. So our focus in the future is that we will balance our growth and also the risk factors to make to ensure a healthy development in the future. Speaker 100:45:26Your second question is about our overseas business. I will let Ms. Xu to answer your second question. Okay. Thank you, Mr. Speaker 100:46:28Fan. So talking about the Indonesian market, although the reduction in interest rate poses a challenge for industry operators. We also see it as a recognition from the regulators of upon the industry's potential for long term development. And additionally, it reflects the management approach and the strength of policies designed to continuously explore and safeguard the industry's long term development. With the rapid development of the FinTech industry, regulatory policies and the frameworks are becoming more systematic and iterations and adjustments are within our expectations. Speaker 100:48:00This also reflects the industry's various aspects, especially from the client's perspective in their demand for the high quality products and services. Okay. So regarding the challenges you just mentioned, the reduction on interest rates will give 2 types of firms an advantage in meeting these challenges. So first kind of companies or the platforms that have been dedicated in the market for a long time, which has more room for adjustments and trial for error due to their data and also the accumulation of users. The second is the companies with outstanding risk management and refined operational capabilities that they can accelerate their adjustment and iteration pace through technical capabilities to adopt to new market requirements. Speaker 100:51:03So talking about Jiayin Group, we have been operating in Indonesia for some time. Although it cannot be considered as very long time, but we have already gained some understanding, knowledge and experience. Our long term experience in risk management and refined operations allows us to respond and adjust quickly to new requirements upon the interest rates. So in the first half of this year, we have seen rapid and positive improvements in various indicators of our business in Indonesian market under the new interest rate requirements. So next for the next step, we look forward to breakthrough and further development in the scale of our business in this market. Speaker 100:52:46And overall, we are committed to long term development in the donation market. Operator00:53:20Thank you. Seeing no more questions, I will return the call to Sean for closing remarks. Please go ahead. Speaker 100:53:30Thank you, operator, and thank you all for participating on today's call and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Operator00:53:47Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallJiayin Group Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) Jiayin Group Earnings HeadlinesDiscovering US Undiscovered Gems in April 2025April 15, 2025 | finance.yahoo.comIs Jiayin Group Inc. (JFIN) the Best Performing NASDAQ Stock So Far in 2025?April 1, 2025 | insidermonkey.comTrump purposefully forcing markets to crash…Whether you agree with the plan or not doesn’t matter. It’s happening. The only question is – are you ready for it?April 20, 2025 | Porter & Company (Ad)Jiayin Group Inc. 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It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.View Jiayin Group ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Archer Aviation Unveils NYC Network Ahead of Key Earnings Report3 Reasons to Like the Look of Amazon Ahead of EarningsTesla Stock Eyes Breakout With Earnings on DeckJohnson & Johnson Earnings Were More Good Than Bad—Time to Buy? 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There are 5 speakers on the call. Operator00:00:00Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Gyns Group's First Quarter 2024 Earnings Conference Call. Currently, all participants are in listen only mode. Call. As a reminder, we are recording today's call. Operator00:00:20If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Sean Sheng from Investor Relations of Jiaying Group. Please proceed. Speaker 100:00:33Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the Q1 of 2024. We released our earnings results earlier today. The press release is available on the company's website as well as from newswire services. Speaker 100:00:54On the call with me today are Mr. Yan Ding Gui, Chief Executive Officer Mr. Fan Chun Lin, Chief Financial Officer and Mr. Zhu Yifeng, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward looking statements made under the Safe Harbor provisions of the U. Speaker 100:01:12S. 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, except as required on our applicable law. Speaker 100:01:35Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese renminbi. With that, let me now turn the call over to our CEO, Mr. Yan Dingwei. Mr. Yan will deliver his remarks in Chinese and I will follow-up with corresponding English translations. Speaker 100:01:53Please go ahead, Mr. Yan. Hello, everyone. Thank you for joining our Q1 2024 earnings conference call. Including intelligent search and intelligent recommendation, the extensive and in-depth application of AI technology has significantly improved the company's operational efficiency and we are full of confidence in further achieving data driven developments in the future. Speaker 100:04:05We have gradually formed a diverse and long term stable network of institutional partnerships. As of the end of the Q1, we have established partnerships with 70 financial institutions and are in discussions with additional 32 financial institutions. At the same time, we are beginning to explore cooperation with foreign banks as our overseas business development is under progress. In addition, we have deepened our cooperation with financial institutions in operations, technology, risk management and consumer rights protection. These comprehensive collaborations are further empowering the financial institutions business processes through technology leading to a complementary win win outcomes for our company and our institutional partners. Speaker 100:05:09Further, we are also exploring cooperations on borrower acquisition to further optimize costs. Continuously optimizing the risk performance of borrowers is the cornerstone for the company's long term and stable development. Although we have observed some improvements among some early risk indicators in the Q1, we will still continue to prioritize risk factors while pursuing growth to balance the speed and quality of development and achieve sustainable development of scale and efficiency. The 61 to 90 days delinquency rate remaining at 0.68% meeting expectations. Thanks for our ability to identify high quality borrower groups and our more refined risk control strategy. Speaker 100:07:23The proportion of new borrowers reached 27% in this quarter, maintaining a relatively stable level. In addition, the average borrowing amount per borrowing in the Q1 was Speaker 200:07:38RMB10,570 Speaker 100:07:42representing a year on year increase of 60.6%. In addition to deepening our original borrower acquisition channel metrics, we have also continuously increased the proportion of borrower acquisition through the many apps on leading Internet platforms. We focus on the innovative model with good risk performance and continuously optimize costs, striving to raise more target users and maintain growth of authority. Our overseas business achieved favorable results in the Q1. In the Indonesian market, the number of newly registered users through our partnered local business entity increased 37% quarter on quarter. Speaker 100:09:50While actively optimizing product structure in response to new local regulatory requirements, we have learned that our Indonesian business partner was in discussion with 5 local licensed financial institutions in the Q1, aiming to further expand the volume of loan facilitation business in Indonesia in the future. The business performance in Nigeria showed steady progress with an increase in the amount of borrowing loan volume and new borrowers. At the same time, the local exchange rates gradually stabilized towards the end of this quarter, providing favorable conditions for our further market expansions in the region. In the Mexican market, the lending scale of the local business entity we invested in also grew rapidly in this quarter. In addition, we are actively exploring opportunities to expand to more overseas regions and overseas business will also be one of the key focuses of the group's future development. Speaker 100:11:05We will further increase our investments in overseas businesses. We always place great emphasis on consumer rights protection and anti fraud efforts in finance services. Our white paper on consumer rights protection in 2023 released at the beginning of this year elaborates on the company's achievements in the systematic and refined operation of consumer protection, including building anti fraud firewalls, improving customer service quality and efficiency, strengthening external cooperation and innovating consumer protection education. In terms of anti fraud, the company's fraud prevention and control report for the Q1 reveals that we have cumulatively identified and blocked 65,000 malicious attacks from illicit industry and manually investigated and disposed of 20,400 applications from potentially high risk borrowers in the Q1. In addition, the company has jointly conducted anti fraud lectures with law enforcement departments and collaborated to establish a cooperation mechanism, effectively combating financial, gray and black industries as well as illegal intermediate Leveraging technological innovation, the company has built a solid anti fraud defense line to safeguard the financial security of borrowers and continuously contribute to profiling the financial market environment. Speaker 100:15:31Based on our confidence in the company's sustained future growth and the company's ample cash reserves, I am pleased to announce the company's plan of the first tranche of dividend distribution for 2024. The company plans to distribute a cash dividend of USD0.5 per ADS. Further details and relevant dates regarding these dividend payout will be announced separately after further confirmation by the Board of Directors. With regard to share repurchase plan, in the previous quarter, the Board of Directors approved raising the upper limit of the current share repurchase plan to USD 30,000,000 and recently further approved exchanging the validity period of the repurchase plan to June 12, 2025. In the future, we will continue to reward our shareholders, enhance the sense of gain among investors and boost their long term confidence in the company's development. Speaker 100:16:51Finally, considering the level of market risk and the demand for business growth, we have decided to set the guidance of loan facilitation volume for the Q2 of 2024 at RMB23 1,000,000,000. With that, I will now turn the call over to our CFO, Mr. Fan Chun Li. Please go ahead. Thank you. Speaker 200:17:29Thank you, Mr. Yan, and hello, everyone, for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB and all percentage changes refer to year over year comparisons unless otherwise noted. As Mr. Speaker 200:17:48Yan mentioned earlier, our company successfully achieved its strategic targets in the Q1. We have also recorded solid financial results. Notably, our loan facilitation volume grew by 13.6 percent to RMB 22,500,000,000. Online revenue was about RMB 1,480,000,000, up 31.5 percent as our other revenue dropped to RMB119.8 million from RMB126.9 million in the same period last year. Moving on to costs. Speaker 200:18:25Facilitation and servicing expenses were RMB667 1,000,000 representing an increase of 143.3 percent from the same period of 2023, primarily due to the increase of guarantee costs incurred and increased loan facilitation volume. Allowance for uncladable receivables, counter assets, loans receivable and others were RMB 2,600,000 compared with RMB6.7 million in the Q1 of 2023. Sales and marketing expense was RMB359.8 million, representing a decrease of 5.5% from the same period of 2023, primarily due to lower commission expenses. G and A expense was RMB 46,200,000 compared with RMB 46,400,000 in the Q1 of 2023. R and D expense was RMB83.3 million, representing an increase of 28.5% from the same period of 2023, primarily due to higher employee compensation benefits as the number of our research and development employees increased. Speaker 200:19:43Consequently, our net income for the Q1 was RMB273,100,000 representing a decrease of 2.4 percent from RMB279,700,000 in the same period of 2023. Our basic and diluted net income per share was $1.29 compared to $1.31 in the Q1 of 2023. Basic and diluted net income per ADS were both 5 point 16 compared to 5.24 in the Q1 of 2023. We are pleased to report a significant improvement in our cash position this quarter. As of March 31, 2024, our cash and cash equivalents reached RMB558,200,000 as a potential increase from $370,200,000 at the end of December 31, 2023. Speaker 200:20:46This growth highlights our strong financial discipline and operational efficiency. With that, we can open the call for questions. Mr. Xu, our Chief Risk Officer and I will answer your questions. Operator, please proceed. Operator00:21:03Thank you. Speaker 300:21:38First question is from the line of Hua Operator00:21:40Rong from Jin Yu Asset. Please go ahead. Speaker 400:22:25Hello, management. I'm Huaruo from Jin Yu SAT and I have two questions. The first one is compared to the previous period of the rapid growth, the company's loan facilitation volume in the Q1 of this year increased by 13.6%. Could you please explain the main reasons for the slowdown in growth, which borrower acquisition channels will be the primary focus in the future? And my second question is the revenue in the Q1 of this year decreased compared to the 4th quarter of 2023, but cash positions increased by nearly RMB 200,000,000 by the end of the Q1. Speaker 400:23:18Could you please explain the reason for this? That's all. Thank you. Speaker 100:23:55Hello, Byron. I'm Xu Yifeng. Thank you for your question and thank you for your long term support on us. And I will answer about your first question. Okay. Speaker 100:24:55So since 2019, our explosive growth in recent years after the our transformation is attributed to over a decade of dedication in the industry includes two reasons. First is the accumulation of the operational and risk management capabilities. And second is the accumulation of market clients, the users borrowers through the in-depth industry development and growth. With the steady advancement of the industry's regulatory framework, orderly market development and our competitive landscape that remains dynamically stable, we have also still achieved a relatively solid performance for this quarter with a 13.6% growth. So the growth we observed from are from cautious and systematic business operations that consider the market and credit risk assessments. Speaker 100:27:22While the macroeconomic environment remains positive trends, we maintain a cautiously optimistic outlook regarding its level. So the growth from so one thing is that the growth was from our borrower acquisitions, we continue to actively acquire upstream borrowers in the market, particularly focused on the expansion and development of high quality borrower segments. And on the other hand, we pursue prudent and rational risk management in the operation of our current borrower base. We are currently exploring the development of differentiated and diverse products and services that incorporate risk considerations aiming for further breakthrough in attracting and retaining high quality borrower groups. So just as important as the new borrowers, our current borrowers are also very important. Speaker 100:30:32So we will so in the future, we will look for the potential growth considering both risk and profit. So as we talk about the risk, we are just like we have talked before that we are exploring differentiated products and services that aiming for our high quality borrower groups. And also this is in line with our ongoing strategy to enhance our capability in managing high quality borrower operations. This is my answer for your first question. And your second question, Mr. Speaker 100:32:28Yan, can you answer for that? So in the Q1 of 2024, the revenue was RMB475 1,000,000,000, which has decreased from RMB1.6 billion in the Q4 2023. There are some reasons for that. The first reason is that the revenue structure has changed with a higher proportion coming from more origination services and a lower proportion from guarantee services. And this trend is expected to continue. Speaker 100:34:48As I have mentioned before, the profit margin for guaranteed income is lower. So the optimization of the revenue structure has improved the company's operating profit margin. And Xiaoying's income from operation in the Q1 was about RMB316 1,000,000, which is an increase of more than 36% compared to the RMB232 1,000,000 in the Q4 of the previous year. And the operating cash flow has significantly increased. That's the first reason. Speaker 100:35:50So the second reason is that our accounts receivable recoveries are performing very well and the funds tied up in the margins are being continuously released. So these are the two main reasons, but other than that, remember, in the Q1, we have also paid out cash dividends with a total amount of about RMB152 1,000,000. So if you're counting in this part of cash, the company's cash balance will be even higher. Okay. So the continuous optimization of the company's cash flow will lay a solid foundation for the company's long term sustainable development and better returns for shareholders in the future. Speaker 100:37:53Just like what Mr. Yan, our Chairman, just said before, we will continue to Our overseas business achieved favorable results in the Q1. In the Indonesian market, the number of newly registered users Speaker 300:38:25Okay. Let me do the translation. This is Yushan Chen from Huata Securities. And I got two questions. The first one is facilitation volume and revenue was increased year over year in the Q1 2024, but net income slightly declined. Speaker 300:38:44Combination market is one of the key targets for the company's overseas business. What are the company's view on the Indonesian regulators' requirements for the interest rate reduction? Does the company have any effective countermeasures for that? Thanks. Speaker 100:40:37Okay. So in the Q1 of 2024, our loan facilitation volume increased by 13.6% year over year and the revenue increased by 31.5% year over year. However, the net profit decreased slightly by 2.4% year over year. I think there are some main reasons are as follows. So the first reason is that it's about the change in our revenue structure. Speaker 100:41:10Throughout the year of 2023, especially in the second half, the company's revenue from guarantee services increased rapidly. And so the profit margin from this revenue, this kind of revenue is lower compared to our loan facilitation services. If we exclude this factor, both our S and M and G and A expenses slightly decreased in absolute amounts year over year due to our improved operational efficiency and R and D expenses increased year over year reflecting our continued investment in technology and research development. That's the first reason. So the second reason is about the decline of our take rate. Speaker 100:42:30So although the loan facilitation volume increased year over year in the Q1 of 2024, the overall take rate of the company's loan facilitation services actually decreased year over year. Okay. So talking about the future trend of our profit margins, I want to talk some more information. So the firstly, within the downward interest rate cycle, our pricing and take rate will be relatively steady, but there will be some decrease to benefit our borrowers. That's the first one. Speaker 100:43:52The second is about decreasing proportion of our guarantee service revenue. Just as what I mentioned before, the proportion of the revenue from guaranteed services will continue to decline, which will positively impacting overall profit margins. Third one is about a stable growth and operational efficiency. So with robust growth in scale and continuous improvement in operational efficiency, cost effectiveness will further improve, which will also positively impact our profit margins. So our focus in the future is that we will balance our growth and also the risk factors to make to ensure a healthy development in the future. Speaker 100:45:26Your second question is about our overseas business. I will let Ms. Xu to answer your second question. Okay. Thank you, Mr. Speaker 100:46:28Fan. So talking about the Indonesian market, although the reduction in interest rate poses a challenge for industry operators. We also see it as a recognition from the regulators of upon the industry's potential for long term development. And additionally, it reflects the management approach and the strength of policies designed to continuously explore and safeguard the industry's long term development. With the rapid development of the FinTech industry, regulatory policies and the frameworks are becoming more systematic and iterations and adjustments are within our expectations. Speaker 100:48:00This also reflects the industry's various aspects, especially from the client's perspective in their demand for the high quality products and services. Okay. So regarding the challenges you just mentioned, the reduction on interest rates will give 2 types of firms an advantage in meeting these challenges. So first kind of companies or the platforms that have been dedicated in the market for a long time, which has more room for adjustments and trial for error due to their data and also the accumulation of users. The second is the companies with outstanding risk management and refined operational capabilities that they can accelerate their adjustment and iteration pace through technical capabilities to adopt to new market requirements. Speaker 100:51:03So talking about Jiayin Group, we have been operating in Indonesia for some time. Although it cannot be considered as very long time, but we have already gained some understanding, knowledge and experience. Our long term experience in risk management and refined operations allows us to respond and adjust quickly to new requirements upon the interest rates. So in the first half of this year, we have seen rapid and positive improvements in various indicators of our business in Indonesian market under the new interest rate requirements. So next for the next step, we look forward to breakthrough and further development in the scale of our business in this market. Speaker 100:52:46And overall, we are committed to long term development in the donation market. Operator00:53:20Thank you. Seeing no more questions, I will return the call to Sean for closing remarks. Please go ahead. Speaker 100:53:30Thank you, operator, and thank you all for participating on today's call and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Operator00:53:47Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.Read morePowered by