Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's third quarter 2023 earnings conference call. Currently, all participants are in 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 Mr. Shawn Jiang from Jiayin Group's Investor Relations. Please go ahead.
Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the third quarter of 2023. We released our earnings 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. Dinggui Yan, Chief Executive Officer, Mr. Chunlin Fan, Chief Financial Officer, and Ms. Yifang Xu, 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.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 statement, 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 now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with the corresponding English translations. Please go ahead, Mr. Yan.
Hello, everyone. Thank you for joining us today to discuss our outstanding results for the third quarter of 2023. This quarter, we have achieved new milestones in key financial and operational metrics. Our loan origination volume reached CNY 24.2 billion in the third quarter, a 62.4% increase compared to the same period last year. Net revenue grew by 64%, while net income further expanded to approximately CNY 324 million. These results once again prove that our development path is healthy and sustainable, and our strategy is precise and practical. We are confident and capable of continuously creating value for our investors and growing into a significant player in the global fintech industry. However, in the third quarter of 2023, both the global and Chinese economies faced significant challenges.
Despite the complexity and constant changes in the global economic environment and ongoing adjustments in monetary policies of major economies, we have observed that China's economy is undergoing a slow recovery process. Although the pace of this recovery has not reached the expected speed, it still demonstrates that underlying strength and the resilience of China's economy.
In the domestic financial sector, we have noticed fluctuations in credit market risks during this period, with asset qualities and risk management emerging as key topics in our industry recently. We understand that continual prudent and detailed operation and management are crucial for our long-term stable and healthy development in the current environment. Therefore, whether in the third quarter of this year, the upcoming fourth quarter or the beginning of next year, we anticipate continuing our cautious business strategy under the premise of maintaining stable development and profitability. We will also closely monitor market dynamics, with a special focus on controlling risks and tracking changes in asset quality. Over the past two years, our fintech business in China has continued to grow steadily in scale, with an expanding reach across financial institutions.
By the end of the third quarter, the total number of financial institutions in our partnership network has reached 73, marking an increase from the 69 in previous quarter. As our business volume grows, the diversity and concentration of our partner institutions are also evolving. In the quarter, we are pleased to see that the proportion of funds to be facilitated, provided by internet banks and private banks partners, has already accounted for the majority. Furthermore, we are currently in talks with 76 financial institutions, aiming to extend the powerful fintech capabilities of us to benefit even more licensed financial institution partners in the future. While expanding our institutional coverage, we are also focusing on deepening and broadening our cooperation with key partners. A cooperation model that supports financial institutions in carrying out their self-operating business is making continued progress.
As of September thirtieth, we have launched cooperation with six financial institutions under this model, with several more actively joining or are currently in discussion. Moreover, the proportion of non-regionally restricted funds to be facilitated continues to stay above 60%, which solidifies our foundation for contributing to the development of inclusive finance across all regions in China while we expand our business scale. As we have emphasized in the past few quarters, optimizing the structure of our borrowing customers remains a top priority this quarter. On one hand, we sought to refine the stratification of our user structure, while further providing high quality, full life cycle services to our existing borrowers. On the other hand, we continue to invest in new borrower groups, while ensuring high quality acquisitions.
Since the beginning of this year, we have observed that the risk fluctuations in the market have had a certain impact on our asset quality of licensed financial institutions. As a trusted business partner of those clients, we deeply understand the importance of asset quality for the long-term stability and sustainability of their businesses. Therefore, during our growth phase, we have never relaxed our high standards and strict demands for risk control. As of September 30, 2023, our delinquency rate for 61-90 days has slightly decreased, maintaining a stable level at 0.52%. With the economy gradually warming up, we will closely monitor market risk fluctuations and changes in asset quality, making timely and accurate adjustment for our clients to address future uncertainties.
We are actively aware of the significance of artificial intelligence technology in the fintech sector, and the development and application of AI have been elevated to a very important position within Jiayin Group. To further advance the application of large model AI technology in Jiayin's smart operations, we launched the Jiayin AI Season series of events in the third quarter. This included the construction of our own Jiayin GPT Lab and numerous GPT training sessions, as well as the GPT innovation competition, aiming to promote the application of AI technology across all business processes. Last quarter, I mentioned some of the application of AI technology at Jiayin Group, and today, I would like to take this opportunity to share with you some of the latest developments over the past three months.
First, in terms of proprietary tools, we completed an important intelligent upgrade of our knowledge base using LLM plus vector database this quarter. This upgrade allows our staff to perform multidimensional and fuzzy searches through semantics, presenting knowledge points in seconds, greatly improving search efficiency and introducing intelligent functions that provide more efficient and high-quality support for customer services. Secondly, our phase one auxiliary functions for customer service agents have been launched in the customer service CRM system, including real-time text transcription, customer intention tagging, and agent behavior tagging. These features have effectively improved the efficiency and accuracy of customer service agents' work. Currently, the application accuracy rate of the session summary in various scenarios has been continuously improved to around 87%.
Along with the launch of phase one functions, the real-time knowledge recommendation of phase two auxiliary functions is also in development and internal testing. Once launched, it is expected to further enhance the depth of AI-empowered agent operation processes. The Longyin quality inspection system, which I mentioned in the second quarter, has also got an important upgrade. This upgrade comprehensively improved the coverage and accuracy rate of quality inspections using AI technology, further expand support for various types of quality inspections, and improve business efficiency through data mining.
人工智能技术的进步及应用，不仅提高了我们的运营效率，也使得我们能够为客户承诺提供更加卓越的服务。在这里，我想和各位宣布一个重要的消息，我们的公司名称将更改为嘉银科技，并启用全新的公司Logo标识。这一名变不仅意味着发展好科技，应用好科技，在整个集团的战略层面已经被定位为重中之重，更意味着科技将成为我们的立身之本。在未来，嘉银将继续密切关注人工智能技术的发展与应用，不断打好金融科技的基本功，让科技属性成为嘉银最闪耀的标签。
The progress and application of AI technology have not only enhanced our operational efficiency, but also enabled us to commit in providing more exceptional services to our clients. Here, I would like to announce an important news. Our company's name will be changed to Jiayin Technology, and we will adopt a new company logo. This change signifies that developing and applying technology has been strategically prioritized at the group level, and more importantly, it underscores that technology will become the foundation of our existence. In the future, Jiayin will continue to closely monitor the development and application of AI technology, continuously strengthen the basics of fintech, and let the technology attributes become Jiayin's most shining label.
三季度，嘉银的国际业务继续呈现蓬勃发展的态势，尼日利亚区域的盈利能力取得了显著进步，同时本季度首次实现了这一区域的重要战略目标，就净利润转正。在财务指标实现显著增长的同时，我们欣喜地看到三十日逾期率这一重要指标得到了进一步的显著改善。我们看到尼日利亚优越的人口规模和人口结构，以及不断增长的移动手机渗透率为金融科技领域，特别是现金信贷服务提供了巨大的机遇。在中长期，我们的目标是在这一区域实现持续的净现金流，从而寻求在这一区域业务能够长期健康稳定地发展。
In the third quarter, Jiayin's international business continued to show a robust growth trend. The profitability of the Nigerian region has made significant progress, and for the first time, we achieved an important strategic goal in this region, turning a net profit positive. While we have seen significant growth in financial indicators, we are pleased to note that the important risk indicator of the 30-day delinquency rate has further improved significantly. We recognize that Nigeria's superior population size and demographics structure, along with the continually increasing mobile penetration rate, provide tremendous opportunities for the fintech sector, especially cash credit services. In the medium to long term, our goal is to achieve sustained net cash flows in this area, hereby realizing the long-term, healthy, and stable development for our business there.
在印度尼西亚，我们以一种创新的方式与当地的一家富有潜力的主体形成了合作，并正在持续密切关注业务环境及经营情况。我们认为，随着最近几年印尼监管政策以及行业环境的快速发展，助贷业务有可能最先在这一业务领域得到快速发展。我们看到合作伙伴在这一季度的盈利能力正在提高，并且突破性地实现了首家金融机构的助贷业务接入，同时与多家金融机构正在洽谈中。不过我们也注意到，印尼地区的监管政策也在系统性地支持互联网金融行业的长期有序发展，这样的市场环境，对所有参与者而言，既是机会也是挑战。我们将持续关注和支持印尼合作伙伴的发展，并视情况在未来与其讨论进一步深化合作的可能性。
In Indonesia, we have formed a collaboration with a local entity full of potential in an innovative way, and continue to closely monitor the business environment and operating conditions. We believe that with the rapid progress of Indonesian regulatory policies and the industry environment in recent years, the loan facilitation business model is likely to be realized quickly in this region. We have seen our partners' profitability improving this quarter and have made a breakthrough in achieving the loan facilitation business access for the first local financial institution partner, while discussions are underway with several others. However, we also noticed that the regulatory policies in the Indonesian region are systematically supporting the orderly development of the internet finance industry in the long term. Such a market environment represents both opportunities and challenges for all participants.
We will continue to focus on and support the development of our Indonesian partner and discuss the possibility of further cooperation in the future. Furthermore, we are expanding our explorations and feasibilities, analysis for business implementation in other emerging market countries in Africa, Southeast Asia, and Latin America, seeking potential expansion opportunities. We believe that our international business can not only contribute to the inclusive growth of local economies, but also create substantial value for our stakeholders, with the goal of global expansion of inclusive financial coverage. Out of prudence, we have decided to set the loan origination volume guidance for the fourth quarter at RMB 20 billion. It is anticipated that the full year loan origination volume will exceed the previously issued annual guidance.
Going forward, Jiayin will continue to work diligently with our partners to manage risks and face challenges, striving for healthy and sustainable long-term joint development. Lastly, I would like to take this opportunity to announce to our shareholders and investors who have been long-term supporters and followers of our company's development, that the plan for the second dividend distribution of this year has been almost finalized. For the outstanding ordinary shares, we anticipate paying a cash dividend of $0.1 per share, equivalent to $0.4 per ADS. Specific details regarding this schedule and other relevant information about this dividend payment will be announced progressively in our subsequent disclosure announcement. For the specific financial results for this quarter, I will turn the call over to our CFO, Mr. Fan. Thank you, all.
Thank 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. Yan mentioned earlier, we carried through our robust growth momentum over the past year to achieve new milestones in the quarter. Notably, our loan origination volume grew by 62.4% to CNY 24.2 billion, exceeding our previous guidance. Our net revenue was about CNY 1.47 billion, up 54%, as our other revenue grew to CNY 529.8 million, from CNY 101.4 million in the same period last year, mainly driven by the growth in guarantee income from financial guarantee services. Moving on to costs.
Origination and servicing expenses were CNY 544.3 million, up from CNY 148.4 million in the same period last year, driven by the increased loan origination volume and expenses related to financial guarantee services. Allowance for uncollectible receivables, contra assets, loans receivable, and others grew by 44.1% to CNY 8.4 million, from CNY 5.9 million in the same period last year. However, as a percentage of net revenue, it decreased to about 0.6% from 0.7% in the same period last year. Sales and marketing expenses increased by 26.1% to CNY 407.9 million, mainly reflecting higher borrower acquisition expenses.
As a percentage of net revenue, S&M expenses decreased to 27.8% from 36.2% in the same period last year, demonstrating our improving efficiency in attracting and retaining high-quality borrowers. G&A expenses were CNY 53.2 million, up 3.5%, primarily driven by higher staff costs as a result of increased expenditures for employee compensation and the related benefits in the quarter. As a percentage of net revenue, G&A expenses reduced to 3.6% from 5.8% in the same period last year. R&D expenses were CNY 70.5 million, up 25%, mainly due to the higher employee compensation as a result of an increase in research and development headcount. As a percentage of net revenue, R&D expenses reduced to 4.8% from 6.3% in the same period last year.
Consequently, our net income for the third quarter increased by 30.6% to CNY 323.9 million, from CNY 248.1 million in the same period last year. Our basic and diluted net income per share were both CNY 1.51, compared to CNY 1.15 in the same period last year. Basic and diluted net income per ADS were both CNY 6.03, compared to CNY 4.60 in the same period last year. We ended this quarter with CNY 180.3 million in cash and cash equivalents, compared to CNY 288.9 million at the end of the previous quarter.
Regarding our stock repurchase program, as of September 30, 2023, we have bought back approximately 1.8 million of our ADSs for a total of $5.5 million on our $10 million share repurchase plan we announced in June 2022 and extended in June 2023. With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer your questions. Operator, please go ahead.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. If you'd prefer to ask your questions in Chinese, please repeat your questions in English immediately after, for the convenience of everyone on the call. Again, if you have a question, please press star, then one on your touchtone phone. Your first question comes from Hua Rong with Jinyu Asset Management. Please go ahead.
Hello, this is Hua Rong, analyst from Shanghai Jinyu Asset Management. First, congratulations to the company on achieving a very strong growth in this quarter. Good, I have two questions. The first question is, the company's Q3 loan facilitation volume year-over-year increased 62.4%, but if forecasting Q4, the growth rate is only single-digit growth. Compared to the high growth of the previous several quarters, is this slowdown due to scale expansion, or other factors? In addition, how does the company view the sustainability of the current growth?
Given the current market conditions, what expectations does the company have for the future? My second question is, what factors drove the significant increase in the company's other income? Now this part of income has already accounted for more than one-third of total income. Can management explain in detail the composition of this part of income, and the plans for these businesses in the future?
First, congratulations on the strong results, and I have two questions. The first one is, as you have reported a 62.4% year-over-year increase in loan origination volume in Q3, yet forecast a single digit growth in Q4 compared to higher growth rates in previous quarters. Is this deceleration solely due to scaling, or are there any other factors? How sustainable is the current growth? And what trends do you foresee under the current market conditions? And the second question is, what factors are driving the significant increase in your other revenue, which now account for over a third of total revenues? Could you provide a breakdown of this segment and your future plans for it? Thank you.
华荣女士，你好，我是徐一芳。刚才您两个问题呢，第一个问题是关于业务方向，再关于财务方向的。那第一个问题呢，由我来向跟您，做一些探讨和解释，哈。
Okay, this is Xu Yifang, and your first question is about the loan origination, and I will do the answer for you.
好，就像您在问题里提到这个放款呢，是由于规模扩大还有其他因素呢，我觉得您这个已经谈到了，其中一个比较重要的因素之一是因为我们今天的规模，已经来到了这个CNY 400亿加的水平。当然我们还有其他的考量哈。那么，今天我们这个到了CNY 400亿加的水平呢，其实是可以看我们过往的这个业绩的发展的话，自2022年以来，就我们整个Q by Q的这个业绩的发展是非常迅速的，尤其是呢在2022年Q4的这个环比增长得非常迅猛。因而呢，从看起来，这个预期的2023年Q4的增长呢，从比率上来，同比，同比的比率上来看呢，就不是那么的显著了。
Okay, so, for your question, I think there are several factors we can consider. And the first one is just as you mentioned, that, our scale has reached a level of, over CNY 40 billion. So, thanks to the rapid development since the year of 2022, especially the quarter-over-quarter growth in the fourth quarter of 2022. The expected growth in, the fourth quarter, 2023, will not seems as that significant.
今年呢，年初以来，特别是第二季度以来，我们看到整个信贷市场呢，是异常活跃，这得益于这个，疫情之后的经济的一个复苏和发展，以及呢，我们从银行端也是要持牌机构资金的供给也是相当充裕的。那么在这样的一个市场，环境呢，从管理层我们的考量呢，非常关键的一个问题，就是如何去平衡好业绩的发展和，风险指标管理的这么一个诉求。整体来讲呢，我们还是希望能够秉承着谨慎，比较严谨的，风险管理的风格，以确保呢整个平台能够持续地健康地发展。
So since the beginning of this year, the credit market has been exceptionally active, driven by the development of the consumer economy after the COVID-19 period. The ample supply of funds and balancing the demand of performance development and risk indicator management are among the strategic issues our management is focusing on. We hope to continue adhering to a cautious and prudent risk management style to ensure the sustainable and healthy development of the entire platform.
那么第三个因素呢，就是我们，从内部的这个战略工作规划的这个重点上来说，目前呢，我们活跃客户数的增长，如果从它的，同比环比也好，也是增长得非常迅猛的。那么在我们的工作重心呢，就是持续我们整体的这个精细化运营的这个策略，以及风险管理相关的这个模型和策略，都希望是根据我们的客群的变化，去，紧密跟踪各个节点，的这个运营的有效性，以及我们风险分层的有效性。但在这个过程中呢，我们整个的模型的评估和迭代的加速，去确保我们活跃客户，特别是高质量客户的产品的服务，他的满意度，从而呢实现这个，有效的健康的增长，也能够实现我们整体的风险管理指标的持续的优化，那这方面的工呢，成为我们当下的一個工作的重点和重心。
So for the third one, the growth of our number of active borrowers is also very rapid. Our refined operations and risk management models and strategies are closely tracking changes in borrower groups, closely monitoring the effectiveness of operations and risk stratification at each node. The evaluation and iteration of models are accelerating to ensure satisfaction with products and services for active borrowers, especially high quality ones. And to achieve continuous optimization of risk measurement indicators. And this part of work seems like very important to us right now.
您的问题，第一个问题，最后呢，也谈到就是公司，当前增长的可持续性和对未来的预期啊。那从未来，未来预期来讲的话，我们将，密切关注整个国内，信贷市场的一个大环境的发展。啊，然后对于公司的整体的发展的话，还是期待平稳有序和健康的增长。
Lastly, you just mentioned sustainable and forecast. I would like to say that we are closely monitoring the development of the domestic credit market and looking forward to a stable, orderly, and healthy growth for our company's future development.
这是我关于您第一个问题上面，我想谈到的几个点。
Uh.
看你还有什么问题。
This is my answer for your first question.
那，我们请樊总聊一下这个第二个问题。
Hua Rong, hello, thank you for your second question. The second question is about our other income, which accounts for about one-third of our total revenue. You just asked about the detailed composition and some future plans. I will talk about a few points here. First, the absolute value of other income reached CNY 530 million, right? That mainly includes guarantee-related services income, traffic value-added business income, and overseas business income, etc. Among these, guarantee-related services income accounts for the highest proportion. In Q3 2023, our guarantee-related services income was CNY 398 million, nearly CNY 400 million. Within the listed company system, we have a guarantee company, and due to the requirements of some funding partners, this company provides guarantee-related services for some projects. With the increase in the number of projects this year, guarantee-related services income has maintained relatively rapid growth each quarter.
Okay. Hello, Hua Rong. This is Fan Chunlin, the CFO of the company, and I will answer your second question. Your second question is about the proportion of other revenue out of our total revenues. And you also mentioned a breakdown of the segment and future plans. And firstly, I would like to say that other revenue, yes, it amounted to CNY 530 million, mainly including revenue from financing guarantee services, referral services, and overseas business. Among them, the revenue from financing guarantee accounted for the highest proportion, just as what you mentioned. Maintaining rapid growth each quarter of this year, with that part of revenue in the third quarter of 2023 approaching CNY 400 million.
Within the listed group system, there is a financing guarantee firm. Just as requested by some financial institution partners, this firm provides financing guarantee services for some projects.
那么从公司整体业务发展战略角度来看呢，上市公司我们还将继续聚焦于这个导流风控服务。担保服务呢，我们主要还是会有独立的第三方融担公司来这个，承接。所以这部分的业务体量和相应的收入增长，接下来会比较平稳。
Okay. However, from the perspective of the overall business development, strategy of our group, the listed group will focus on borrower acquisition and risk control services, with guarantee services shall mainly be provided by independent third-party financial guarantee companies. Therefore, this part of business and corresponding revenue growth of this part, will be relatively stable in the future.
另外呢，担保服务它本身的这个margin啊，比较这个导流风控服务也要略低一些，从而呢，也拉低了上市公司的整体的这个经营利润率。所以从财务指标角度考虑，导流和风控业务会继续占公司营收的这个大头，公司会合理地把控不同的业务细分类型，在营收占比中的这个平衡。
So additionally, the margin of the guarantee business is relatively lower if you compare with the borrower acquisition and risk control services, which will reduce the overall operating profit margin of the listed group. So from a financial metrics perspective, borrower acquisition and risk control services will continue to account for the vast majority of our revenue, and the company will reasonably manage the balance of different business subtypes in revenue share.
好，这就是这个关于第二个问题，我这边的一个回答，啊看看你有没有什么其他的问题。
So this is my answers for your second question, and let's see if you have any other questions. Thank you!
... Hua Rong, did you have a follow-up?
Yeah. Thanks, 谢谢管理层的回答，我这边没有其他的问题。
Okay, thank you. So operator, we can get the next question, please.
Thank you. Your next question comes from Yuxuan Cheng with Huatai Securities. Please go ahead.
Hello, management. I am Yuxuan Cheng from Huatai Securities. First, thank you, management, for giving me the opportunity to ask questions. Then, I have two questions I want to ask. The first one is about risk management. We see that the company's delinquency rate is still relatively stable. Could you please, leadership, elaborate on the company's risk management strategy, and how the company can guarantee this stability? If looking forward to the fourth quarter and 2024, does the company expect the current risk control level to continue to be maintained? That is the first question.
The second question is about our expenses. We observed that over the past year, the company's several operating expenses as a proportion of revenue have been continuously declining. I want to ask the management, is the reason for the expense rate decrease due to our cost control, efficiency improvement, or both? Then similarly, if looking forward to the future, can the trend of expense rate decrease continue to be maintained in the fourth quarter and 2024? Okay, then I will translate it myself. Hello, management.
Thanks for giving me this opportunity to ask questions. This is Yuxuan Cheng from Huatai Securities. I got two questions. The first one is about your risk management strategies. With a stable delinquency rate, could you provide insight into your risk management strategies and their evolution in maintaining this stability? Also, do you expect your risk profile to remain stable going through Q4 and 2024? The second one is about your expenses. We have observed a consistent reduction in operating expenses as a percentage of revenue over the past year. Is this because of your cost control, efficiency improvement, or both? Can this trend be expected to continue in Q4 and 2024? Thanks.
陈玉轩先生，你好啊，我是徐一方。您的第一个问题呢，也由我来向您回答。
Hello, Mr. Chen. This is Xu Yifang, and your first question will be answered by me.
就谈到这个风险管理的策略和保持这个稳定性，那是我们的，从风险管理角度来讲，肯定是在追求的这个，这样的一个目标和结果。从目前来看呢，也的确像我前面谈到这个市场，最近的发展趋势是有相当的挑战的。那从风险管理角度来讲，我们首先就希望能够积极地去关注整个市场的发展动态，尤其是活跃的信贷借贷客群，这个整体的外的信贷客群呢，它的整体的收入负债比，负债，整个体的负债情况，以及这个信贷申请的意愿度和活跃度，都是我们密切关注的，宏观的这个，市场的，市场的指标。
Okay. So, you just mentioned the strategies and the stabilities, and these are actually the goal and also the result of our risk management work. So, we have some different approaches to that. The first will be, we will pay attention to the development trends of the market, especially the overall income to debt ratio of our borrower group, and also the debt situation, and also the willingness and activity of their credit application.
那么，从风险的模型呢，和风险的策略呢，会在目前的话，我们会进一步加强监控。尤其是前面提到，到我们的这个客群的增长非常迅猛的前提下，去加强我们的这个模型和策略的监控，就变得更加，关键和重要了。随着我们，这个，对监控和对客群的理解的加深，那么我们也会进一步促进，整体的模型和策略的一个迭代。
So the second one is for our models and strategies, and as our borrower group of us is growing so fast, it is very important for us to accelerate the monitoring process. So, at the same time, we also need to updating and to update our models and strategies, and the iteration of them is also very important.
这个风险管理啊，其实不仅仅完全是在我们的风险，决策给出的这个维度，我们会，加强，特别是我们现在这个客群的发展，这整体发展比较大的前提下，我们会去加强整个就客群的全生命周期的经营和管理。其实这些，合理的，恰当的经营和管理呢，对我们整体风险的指标的一些提升，也是，也是关键的，组成部分之一。
So the third one is that we think the risk management work shall not only be on the decision stage, but to strengthen the management and operation of the entire life cycle of our borrow group from a risk perspective is also very important. And with that, we also can see that the risk indicators are getting better because of it.
Um,
So after the loan facilitation process, we also need to differentiate the strategies to further enhance the experience of our high-quality borrowers, thereby to improve their retention and loyalty of them. And we can also see that those improvements also makes our risk indicators getting better. So for the goal of the fourth quarter of this year and the whole year of 2024, we are expecting to maintain and further optimize these risk management approaches, and this will be really important for all of our team. And this will be some ideas of our risk management works, and my answer for your question. Let's see if you have other questions. Okay.
So, your second question is about our expenses. I think from the first quarter to the third quarter of this year, the proportion of our G&A expenses, S&M expenses and also R&D expenses in the revenue has continuously decreased. In the third quarter, the proportions of G&A expenses, R&D expenses, and S&M expenses in the revenue were reduced to 3.6%, 4.8% and 27.8% respectively. The main reasons are twofold. Firstly, is because the scale effect brought by the growth in facilitation volume and also revenues, and the fixed costs are relatively stable and the variable costs are getting more efficient. If you compare with other kind of expenses and their growth percentage is much lower than that of revenue growth.
Second, reason would be the efficiency improvements brought by the application of AI technology and also our refined smart operations. Okay. So in the short to medium term, in line with our strategy of high quality growth and smart operations, our proportion of G&A and S&M expenses will remain relatively stable. And, we will also continue to increase investment in R&D and strongly enhance the application of AI technology in various business processes. And just as Mr. Yan just said, our company has been officially renamed as Jiayin Technology, and we will continuously strengthen our technology attribute. Okay. Through the refined operation and, we are very confident to make our net profit margin to maintain above a relatively sustainable and healthy level.
Just as Mr. Yan just mentioned, our second dividend distribution plan is almost really decided, and we are very confident to give out more to our investors in the future. So Yuxuan, hope those will answer your question.
Uh,
Thank you.
We've reached the end of the call. I will return the call back to Sean for closing remarks. Please go ahead.
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.