Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group second quarter of 2021 earnings conference call. Currently, 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. If you have any objections, you may disconnect at this time. I will now turn the call over to Ms. Susie Wang, Director of The Blueshirt Group, Asia. Ms. Wang, please proceed. 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 2021. We released the results earlier today. The press release is available on the company's website, as well as from Newswire Services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Xu Yifang, Chief Risk Officer, and Ms. Shelley Bai, and Ms. Celia Chen, Co-Chief Financial Officers. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions 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 this 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 statement, except as required under applicable law. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese currency. With that, let me now turn the call over to our CEO, Yan Dinggui. Mr. Yan will speak in Chinese, and then our Co-CFO, Shelley Bai, will translate his comments to English. Go ahead, Mr. Yan. Hello, everyone. Thank you for joining our second quarter of 2021 earnings conference call. We delivered an outstanding quarter, achieving record-breaking operational and financial results as loan origination volume progressively increased by 153% year-over-year. With 100.9% growth in revenues. These results are strong testimonials to the success accomplished in implementing our key strategy, driving organic growth in China, while deepening partnerships with financial institutions through leveraging our sophisticated risk management systems and providing individual customized solutions. Notably, with the strong top-line growth and outstanding execution in cost control policy, strong momentum in profitable growth continues. Net income grew a significant 208.5% year-over-year, reaching RMB 126.8 million. This is a remarkable improvement and illustrates our ability to improve profitability through strong growth and outstanding execution. As shared with you in last few quarter's earnings call, we are focusing on building integrated, highly automated platforms with great risk management intelligence to be an irreplaceable effective partner to our institutional funding partners. Our funding partners increased to 32 in Q2, and we are in discussion with another 45 institutions with aims to further broaden partnerships for diversifying our funding resources while maintaining risk management excellence. Our ability to provide assets with qualified risk profile that meet risk requirements for respective funding partners. Lay a solid foundation for higher loan origination. In this quarter, we resumed the marketing and began attracting new borrowers at a more accelerated pace. We focused on maintaining for higher quality borrowers. A large portion of our loan volume continued to go to our existing borrowers with higher quality, with our repeat borrowing rates for this quarter at 72.4%. We believe serving higher quality borrowers will improve our credit risk profile and ensure the asset quality. We are very pleased with the progress. The excellent financial results illustrate the strength in the consumer market and the growth trajectory of our business. We remain dedicated to controlling credit quality with our improved credit scoring system and advanced technology capabilities. In terms of the overseas markets, we are taking a more prudent approach with uncertainties brought by the surge of the Delta variant and margin dilution by heightened competition. Nigeria, Indonesia, and Mexico are our key overseas markets that present promising business potentials. We saw progress in these markets gradually and steady. We are striving for a good balance between the investments and the risks. We expect to have a better picture later this year, depending on geopolitical changes, virus control and improvement, and global monetary policy changes. Agility and prudence are both critical factors in our business strategy, which will enable us to emerge stronger and achieve more success in the evolving market environment. We completed the integration with VNET this quarter. As you might be aware, the recent crackdown on Bitcoin mining in China has affected the market sentiment and brought temporary challenges to immediate mining prospects. However, VNET is primarily focused on blockchain-related technologies and hardware solutions for decentralized applications. We provide our clients one-stop solutions related to cloud storage, cloud computing, network bandwidth, content delivery networks, and others. As blockchain-based applications are developing rapidly, we are confident we can benefit from this growing market with our first-mover advantages and technology capabilities. In conclusion, we are excited over the resumed high growth in our domestic market with our record-breaking operational and financial performance this quarter. We will continue to roll out initiatives and apply technology across our business to improve operational efficiency and create long-term sustainable value for shareholders. With that, I will now turn the call over to our Co-CFO, Celia Chen. Celia, please go ahead. Thank you, Mr. Yan. Thank you, everyone, for joining our call today. As Mr. Yan mentioned, we achieved a milestone quarter and grew original volume by 153% to RMB 5,663 million, with 100.9% growth in revenue and 208.5% in net income. These outstanding results came in well above the upper end of our guidance range on a year-over-year basis, demonstrating the success of our business transformation, as well as our speed and strong execution in enhancing our risk management and improving asset quality. Now, let me go through our financial highlights for the quarter. Please note that unless stated otherwise, all numbers quoted are in RMB and the percentage change refer to year-over-year comparison. Net revenue was RMB 492.2 million, up 100.9%. Revenue growth was primarily driven by the significant growth in loan origination volume, which increased 153%. Other revenue was RMB 38.5 million, down 8.3%. This decrease was primarily due to reduced revenue from P2P-related services, as the company no longer supports the legacy P2P lending business, partially offset by increased revenues generated from our overseas business and VNET since the integration in May. Moving on to costs. We also had a substantial improvement in operating efficiency, reflecting actions we took over the last two years to streamline our expense base. In the second quarter, total operating costs and expenses were RMB 342.6 million, up 73.9% from RMB 197 million last year. The increase was along with our top-line growth. However, total operating costs and expenses as a percentage of revenue was 59.6% versus 80.4% in the same period last year, demonstrating our ability to contain expenses growth, which will enable our infrastructure to scale as we grow. Origination and servicing expenses were RMB 83.2 million, up 63.5%, primarily due to the increase in credit assessment expense resulting from higher loan origination volume. In this quarter, we incurred a cost of sales of RMB 5 million, which is equivalent to $0.8 million, compared with nil from the same period of 2020. The increase was primarily due to the cost of hardware sold by VNET. Allowance for uncollectible receivables, contract assets, loan receivables, and others were RMB 13 million, up 21.5% from the same period of 2020. The increase was primarily due to an increase in loan principal and increased as a result of the higher loan origination volume from overseas business, partially offset by the decrease in the estimated default rate under current business model, since we no longer support the legacy P2P lending business. G&A expense was RMB 35.2 million, down 3.8%, primarily due to the decrease in headcount, of which has been partially offset by the increase in personnel-related costs allocating to general and administration departments. R&D expense was RMB 31.9 million, down 6.5%. This was primarily due to the improved utilization of our facility allocating to research and development departments, of which has been partially offset by the increase in professional service expenses as the company continues to enhance the research and development capabilities. Sales and marketing expense were RMB 174.2 million, up 169.7%, primarily due to our new online advertisement and marketing strategy, which has resulted in higher customer acquisition expenses. As we intend to continuously grow origination volumes, we began attracting new customers at a more accelerated pace with our superior marketing algorithm and translating them into our loyal customer base. We achieved a noteworthy profitability through our loan volume growth and improved operating efficiency. With a posted net income of RMB 126.8 million, up 208.5% year-over-year. We ended this quarter with RMB 141.4 million cash and cash equivalents, compared with RMB 123.3 million as of March 31st, 2021. Moving to our guidance, we expect our loan origination volume of RMB 27 billion-RMB 30 billion for the full year 2021, representing 133%-159% year-over-year growth. With that, we can open the call for questions. Mr. Yan, our Chief Risk Officer, Mr. Xu, and I will answer questions. Operator, please go ahead. Certainly. Ladies and gentlemen, to ask a question, you will need to press star one on the telephone. To withdraw your question, please press the pound or hash key. Please stand by while we compile the Q&A roster. Once again, to ask a question, it's star one on your telephone. The first question comes from the line of Craig Irwin from Roth Capital Partners. Please go ahead. Hello, thank you for taking my questions. The most exciting number that you shared, I think, was the origination volume with more than RMB 5.6 billion in the quarter. Can you talk a little bit about the contribution of new customers added in the past couple of months, and how quickly your funding partners contribute to these very high growth rates? Do we see a larger portion added on the front end as new partners are added, or do the new partners tend to accelerate over time? This is Yifang. Thanks, Craig, for your question. I'll take a stab at suggesting your question. Yes, as you have seen in this Q2, we're seeing significant amounts of volume increase over the time. As we have disclosed in our notes early, the number of the funding partners we are working with has increased to 32. We are a lot more diverse in terms of the type of FIs we are working with, as well as the numbers are increasing as well. We are seeing on both factors have impact coming from bringing on new funding partners and deepening relationships with our existing previous partners that we have brought on board last year also. That we are managing our FI partnerships within a mixed several factors in consideration that we have to take into consideration of the regulatory changes over the time. Diversification is one of the crucial components for us to managing that, for us to be able to achieve a stable supply of the funds. Now we have added different aspects in terms of the geographical compatibility of our borrowers' profile, because we are seeing some local regional requirements in terms of the type of customers some of FIs are requiring and specifying. Lastly, which also important, is to continue to improve our overall economics and to achieve higher low competitive cost of funds. We have to manage to have a wide range and also a good number of partners we are working with to balance out in terms of our business terms. Hope that answers your question. Yes, it does. Thank you. My next question is obviously directly related to your increased marketing spend to drive this accelerating origination volume. The marketing spend was up materially quarter-over-quarter, and it's amazing that you had such very quick results. I'm going to guess that there's likely more at play between the marketing spend and the new loan origination with the customers captured. Can you please describe that process and maybe share some of the details of where you're spending these increased marketing money? If you could also discuss how you're budgeting the total marketing spend. Are you targeting 30% operating margins, or are you targeting a particular expense level as you continue to scale the business? This is Yifang again. I'm going to speak into the first part of your question, then maybe Celia can chime on the last question. We are seeing that a higher increase of our marketing expense, which is even on the per unit basis, we are maybe looking at higher sales and marketing per customers acquired. Two reasons going into why we are seeing a higher risk, higher cost on that item. One is we are continuing to really focus on the better quality customers. In the market that we are working on right now, the current market landscape, the cost of acquiring such customers is significantly higher than compared to what we are seeing in probably 2019 or to the early 2020. The channel also has had significant change compared to the early years as well. Today, we no longer see the no-mark type of market practice. We are actually acquiring our customers through the direct channel a lot more, working with the major Internet companies to acquire through what we call the information stream to acquire customer directly. We are seeing, I would say almost 100% growth in those new channels. The cost in the new channels are higher, but the qualities are significantly better in terms of both approval rates as well as from the early risk readings we are seeing. That's primary, we are seeing the channel mix is shifting to a higher cost channel and our focus on better quality customers are also driving the per unit costs up. I think from the planning perspective, we are still concerned this is a healthy organic growth, considering that we are planning for the future, especially considering the continuous interest, the trend on the interest rates, or the type of requirements we are seeing from our financial institution partners in terms of the loan interest rates we have to work with. We are putting a stringent view on our risk spectrum to making sure that we are not compromising or being more tied on the sales marketing per unit cost, but in exchange for a higher future risk uncertainty. We actually are balancing that, trying to keep our growth for a future more healthy growth to target better risk quality customers in trading some cost increase at this point in current cost point of view. I think I talked a little about higher growth in some of the high-cost channel segments. At the same time, we are seeing that sales and marketing cost per unit costs are coming down, driving down in the Q3. We have pretty good line of sight of having probably 20%-30% of efficiency improvement in the pipeline right now. As we are seeing the continuous growth on such high-quality customer channels and our ability to managing that cost per unit cost down, we are definitely in a good position in terms of the economics point of view. In terms of total budget, I'd like to ask Celia to comment on that. Yeah. This is Celia. Thanks, Craig, for the question. I think compare this quarter's sales and marketing expenses with the last quarter, we've seen over 90% of the increase. I think to add more colors on this, I think it's mainly due to two reasons. The first is that the fee settlement way is different from previous. Compared with the traditional way, this quarter we started to launch the information feed advertisements. For this new kind of development marketing strategy, the fee booking way is totally different with the previous ways. In previous ways, we record a fee based on the performance, that is the CPD, cost per download, or CPS, the cost per sale. For this information feed advertisement, we record the marketing expense upfront. That means we record it in the CPC or CPM way, which is short for cost per click or cost per mille way. You will see that at the initial stage that we launch this kind of marketing strategy, there will be a bump, or you would see a significant increase in the sales and marketing increase. That is probably the major reason that you see that our sales and marketing expense outpaced the loan origination volume growth pace. The second, I think, that is a basic new strategy, new marketing strategy launching logic is that we started to partner with our channel providers, and we co-build the models with them, and we do some trial runs to try some marketing strategies. We get numbers from the channel partners, and we go back to optimize our algorithm and improve our marketing strategy launching strategy. At the initial stage, I would say the cost per newly acquired customers will be inevitably higher than usual. At the initial stage, I would say, especially this quarter, the first quarter that we launched this new marketing strategy, inevitably to see a significant rise in the sales and marketing expense. In the future, I would say we expect to see some room for the improvement in the cost effectiveness. I think in the future, there are so many optimizations of the marketing strategies right now are going on. I'm not expert in this, but I'm pretty sure our technology team spend a lot of great efforts on this to improve the cost per newly acquired customer. The data on this. I would expect that in the next quarter or in a couple of few months, the cost effectiveness will be improved and the cost per newly acquired customer will be drive down. Understood. I think because there are a lot of moving parts at this quarter, at this initial stage of launching this marketing strategy, we will not set a specific number or absolute number for the marketing and the sales expenses, or to set the ratios of these expenses, the ratios of the total loan origination volumes. We are confident that in the future, in the short term, it's not that unlikely that these marketing sales expenses would outpace our loan origination volume growth a lot. That would be all. Thank you. Can you share a little bit more detail around your international expansion, an update on Indonesia and Mexico, and whether or not you're exploring other markets internationally at this time? Certainly. I will take on this question, too. As we said, that we remain optimistic and consider the international strategy as one of our key component of all of our strategy. We are taking a prudent approach in terms of how we're considering the overall component of the international market expansion effort. There are different set of risk factors and uncertainties to when we are managing the international market. As we have mentioned earlier, the surge of the Delta variant is having bigger impact in the emerging markets, which are slightly different from what we are seeing in the Mainland China market. The economic growth and the political or regulatory stability is also somewhat more fluctuating compared to our Mainland China market. We are kind of managing those risk factors compared to the growth needs and the economic needs from business standpoint of view. We're still happy to report in Mexico, we maintain to be the top-tier player in the market, in spite of we are seeing a proper influx and outflux of new players coming into the market occasionally, or in certain months, we are seeing them driving the marketing costs up, which have somewhat impact on our economics. We are still maintained to be the top player in the market now. Nigeria, we have gone through the setting up phase of that market. We have obtained our money lending license. The next step is really for us to start to drive the growth in the market. Indonesia market, we are seeing some recent regulatory changes related to how they're managing the license application process. Such change does have somewhat impact on us. We are still continuously trying to sort that out. We are still dedicated to the Indonesia market. As far as our newer markets, and there are a couple new markets, we are in the investigation and in the early feasibility study phase. I have to say that most recent political change that may have some impact on our speed and our appetite in taking on new markets at this point. Thank you for the update and congratulations on the really strong growth and profitability in the quarter. Thank you. Thank you. Once again, ladies and gentlemen, to ask a question, please press star one on your telephone. Thank you. Okay. Thank 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. Thank you. That concludes our conference for today. Thank you for your participation. You may all disconnect your lines now. Thank you.