Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Jiayin Group's Q3 2022 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. 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 Zhang from Investor Relations of Jiayin Group. Please proceed.
Good day, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the Q3 of 2022. We released the results earlier today. The press release is available on the company's website, as well as from news services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunlin, Chief Financial Officer, and Ms. Xu Yifang, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor 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 statements except as required under applicable law. 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 corresponding English translations. Please go ahead, Mr. Yan.
Hello, everyone. Thank you for joining our Q3 2022 earnings conference call. We delivered another outstanding quarter with strong financial and operational results. Our loan origination volume grew by approximately 123.5% to RMB 14.9 billion in the Q3 , making it the second consecutive quarter with over 100% year-over-year growth.
Our net revenue increased by approximately 55% year-over-year in the Q3 to reach RMB 894 million. Our margin profiles also continue to improve as we further refine our cost structure and optimize our operating efficiency, resorting in consistent margin improvements. Our exemplary Q3 performance attests to our commitment towards strengthening our partnership network, refining our risk management strategies, strengthening our technology capabilities, and accelerating our global business expansion. In the Q3 , expanding and strengthening partnerships with licensed financial institutions remained our top business priority. Under the current macroeconomic conditions, we focus on reassessing the needs of financial institutions and building long-term partnerships to safeguard our funding sources and optimize our funding structure. As of September 30th, 2022, we have forged partnerships with 46 financial institutions, and we are currently in discussion with another 60.
Notably, national financial institutions in our partnership network still contributed to the majority of our total loan origination volume in the Q3 .
此 外 ， 自 从 年 初 我 们 拓 展 与 金 融 机 构 的 创 新 合 作 模 式 开 始 ， 嘉 银 凭 借 自 身 的 智 能 平 台 以 及 自 动 化 解 决 方 案 ， 不 断 地 为 合 作 机 构 的 自 营 业 务 提 供 技 术 赋 能 服 务 。 目 前 已 有 三 家 金 融 机 构 在 我 们 的 助 力 下 ， 推 进 其 自 营 业 务 中 的 资 金 管 理 、 风 控 管 理 、 智 能 营 销 、 客 户 服 务 等 方 面 的 数 字 化 改 革 。 同 时 ， 我 们 还 正 在 与 三 家 金 融 机 构 进 行 业 务 对 接 ， 并 与 另 外 六 家 机 构 进 行 积 极 的 协 商 合 作 ， 为 创 新 发 展 注 入 强 劲 动 力 。
In addition to strengthening partnerships, since early this year, we began collaborating with partner financial institutions to provide them with technology enabled services for their in-house operations.
We offered them access to our intelligent platform and automated solutions under our new collaboration model for partner institutions. Currently, we have empowered 3 financial institutions to digitize their in-house business from front management, risk management, intelligent marketing, customer services to other operation processes.
We are now interfacing with another 3 financial institutions and actively negotiating with 6 more institutions to bolster the development of this new collaboration model.
在 借 款 人 方 面 ， 本 季 度 我 们 加 大 线 上 投 放 力 度 ， 优 化 获 客 效 率 。 在 借 款 人 客 群 扩 大 的 同 时 ， 也 持 续 专 注 于 优 化 借 款 人 的 客 群 结 构 ， 根 据 借 款 人 的 信 用 状 况 、 风 险 评 估 和 借 款 行 为 对 其 进 行 分 类 ， 聚 焦 优 质 客 群 ， 为 日 后 推 出 更 多 个 性 化 的 服 务 和 实 施 更 精 细 化 的 客 群 运 营 打 下 了 坚 实 的 基 础 。 得 益 于 此 ， 本 季 度 我 们 的 平 均 借 款 金 额 达 到 了 RMB 10,158 ， 同 比 增 长 58.1% 。 此 外 ， 在 有 新 客 增 加 的 同 时 ， 我 们 本 季 的 复 借 率 仍 然 保 持 在 60% 以 上 。 On the borrower front, we continue to invest in online marketing programs to streamline our borrower acquisition efforts.
Meanwhile, our focus remains on optimizing the structure of our borrower base as we expand it. We are categorizing our borrowers based on their credit profiles, risk assessment, and borrowing behavior. The categorization enabled us to streamline our resource allocation towards premium borrowers and build a foundation for the future launch of more customized services and targeted borrower operation initiatives. In the Q3 , our average borrowing amount per borrowing reached RMB 10,158, increasing 58.1% year-over-year.
Moreover, despite adding new borrowers in the quarter, our repeat borrowing rate still maintained at a healthy level above 60%.
本 季 度 我 们 成 功 发 布 Taihao AI modeling platform 和 Mingcha anti-fraud system, 进 一 步 加 强 核 心 科 技 能 力, 同 时 灵活调整 风 控 策 略, 以 积 极 应 对 疫 情 反 复 所 带 来 的 资 产 质 量 压 力. 期 间 61 to 90 day delinquency rate 继 续 保 持 稳 定, 这 显 示 出 在 相 对 波 动 的 外 部 环 境 下, Jiayin 仍 有 较 为 突 出 的 风 控 表 现.
We also remain committed to strengthening our core technology capabilities in the quarter.
We successfully launched our Taihao AI modeling platform and Mingcha anti-fraud system as part of our ongoing efforts in proactively recalibrating risk control strategy and addressing the COVID induced asset quality pressure.
Our 61 to 90 day delinquency rate remained relatively stable in the quarter, reflecting our outstanding risk control capabilities under the volatile macro environment.
下 面 我 介 绍 一 下 公 司 在 全 球 的 业 务 拓 展 情 况. 本 季 度 ， 我 们 通 过 增 加 对 印 尼 地 区 的 投 入 ， 持 续 在 当 地 市 场 探 索 业 务 切 机. 此 外 ， 尼 日 利 亚 地 区 的 业 务 放 款 规 模 和 收 入 水 平 均 有 大 幅 提 升. 未 来 我 们 将 持 续 在 印 尼 ， 在 尼 日 利 亚 市 场 专 注 于 提 高 业 务 的 盈 利 能 力 ， 创 新 合 作 模 式 ， 加 速 产 品 研 发 和 在 当 地 市 场 的 渗 透.
Moving on to our global expansion.
We are increasing our investment in Indonesia to explore more business opportunities in the local market. We also substantially expanded the scale of our loan origination and revenue generation in Nigeria.
Going forward, we will continue to focus on improving the profitability of our Nigerian operations, developing innovative partnership models, as well as accelerating our product development and penetration in the local market.
最 后 ， 回 顾 一 下 我 们 最 近 在 企 业 社 会 责 任 方 面 的 努 力 与 成 绩 。2021 年 ， 我 们 联 合 上 海 宋 庆 龄 基 金 会 发 起 成 立 了 嘉 进 慈 善 专 项 基 金 ， 旨 在 呼 吁 全 社 会 关 注 青 少 年 心 理 问 题 ， 为 年 轻 一 代 提 供 心 理 健 康 关 怀 。 在 今 年 三 季 度 ， 嘉 进 基 金 通 过 在 腾 讯 慈 善 平 台 组 织 的 让 孩 子 心 灵 绽 放 微 笑 的 这 个 项 目 ， 为 青 少 年 筹 集 了 10,000 次 的 心 理 关 怀 服 务 。 在 未 来 ， 我 们 还 计 划 通 过 更 多 的 工 业 领 域 的 投 入 来 发 挥 嘉 银 的 独 特 优 势 ， 同 时 更 好 地 承 担 企 业 的 社 会 责 任 。
Finally, I want to mention our recent efforts in the corporate social responsibility.
Last year, we established the Jiajin Charity Special Fund with the Shanghai Soong Ching Ling Foundation to raise social awareness of youth mental health and provide mental health support to the younger generation. In the Q3 , our Jiajin Charity Special Fund organized the Let Children Smile charity fundraising event on Tencent Charity platform, where we help fund 10,000 mental care service packages for the youth.
Looking ahead, we are planning to invest in more charitable initiatives to better leverage our unique strengths and fulfill our social responsibility。
此 外 ， 本 季 度 国 内 的 疫 情 的 反 复 给 小 微 企 业 造 成 了 巨 大 的 冲 击 。 随 后 官 方 出 台 了 一 系 列 鼓 励 政 策 ， 以 满 足 小 微 企 业 迫 切 的 资 金 需 求 。 在 政 府 的 号 召 下 ， 我 们 在 本 季 度 也 继 续 通 过 拓 展 小 微 企 业 主 贷 款 服 务 ， 帮 助 长 期 以 来 难 以 得 到 贷 款 服 务 的 小 微 企 业 主 解 决 实 际 需 求 。 截 至 今 年 三 季 度 末 ， 我 们 的 服 务 已 触 及 了 三 十 一 个 省 级 行 政 区 的 3C 三 十 六 点 一 五 万 名 小 微 企 业 主 ， 地 域 覆 盖 范 围 相 比 上 个 季 度 进 一 步 扩 大 ， 总 人 数 也 有 大 幅 的 提 升 。
In addition, the repeated COVID resurgence and the consequent control measures have had a negative impact on small business owners this quarter.
Government agencies have unveiled a series of new regulations to help fulfill the pressing funding needs of small businesses. Following the government's call, we also continue our efforts in supporting small and micro businesses during the quarter by expanding our services for small and micro business owners who have long been underserved. By the end of September, our specialized loan program has served approximately 361.5 thousand small business owners in 31 provincial level regions across China.
On a sequential basis, we have expanded the geographical coverage of this loan program, while substantially boosted the number of small business owners we served.
嘉 银 本 季 度 取 得 的 优 异 成 绩 ， 为 公 司 未 来 探 索 更 多 的 业 务 机 会 打 下 了 坚 实 的 基 础 。 尽 管 全 球 经 济 的 不 确 定 性 在 增 加 ， 但 我 们 相 信 中 国 金 融 科 技 服 务 行 业 的 基 本 面 仍 然 强 劲 。 嘉 银 过 去 的 业 绩 表 明 ， 表 现 已 经 证 明 了 我 们 有 能 力 开 发 领 先 的 金 融 科 技 服 务 ， 提 供 智 慧 金 融 解 决 方 案 ， 并 为 合 作 伙 伴 和 借 款 人 创 造 价 值 。 未 来 ， 我 们 坚 信 我 们 会 一 如 既 往 地 赋 能 金 融 机 构 ， 服 务 广 大 借 款 人 ， 并 创 造 长 期 的 股 东 价 值 。
In summary, our efforts and accomplishments in the quarter have put us in a solid position to maximize our opportunities in the future.
Despite the increasing uncertainties in the global economy, we believe that the underlying fundamentals of the Fintech sector remain strong. We have proven our capabilities to develop leading financing service offerings, intelligent financing solutions, and compelling value propositions. We are confident that we will continue to empower our partner financial institutions, serve our broad borrower base, and generate sustainable value for our shareholders in the long term。
下 面 有 请 公 司 的 CFO 樊 春 宁 详 细 介 绍 本 季 度 的 财 务 表 现 。
With that, I will now turn the call over to our CFO, Mr. Fan Chunlin, please go ahead.
Thank you Mr. Yan. Thank you everyone for joining our call today. I will now review our financial highlights for the quarter. Unless stated otherwise, all numbers quoted are in RMB and the percentage changes refer to year-over-year comparisons. As Mr. Yan mentioned, we delivered another quarter of robust financial performance. Our loan origination volume grew by 123.5% to RMB 14.9 billion. As we expanded and strengthened our collaboration with institutional funding partners, our net revenue was RMB 894.3 million, up 55%, driven by a 47.7% increase in our revenue from loan facilitation services. Our revenue take rates decreased slightly in the quarter as we adapted to evolving market dynamics and the regulatory changes.
Other revenue more than doubled to RMB 101.4 million, mainly driven by incremental revenues from individual investor referral services. Moving on to costs. Origination and servicing expenses were RMB 148.4 million, up 68.1%, in line with our loan origination volume growth. Allowance for receivables and the counter assets reduced moderately by 4.8% to RMB 5.9 million, mainly as a result of the ongoing restructuring of our overseas business during the quarter. Sales and marketing expenses increased by 36.6% to RMB 323.6 million, reflecting higher borrower acquisition expenses in the quarter as we continue to invest in our online marketing programs. G&A expenses were RMB 51.4 million, up 13.5%, primarily driven by expenditures in compensation and the related benefits in the quarter.
R&D expenses were CNY 56.4 million, up 52%. We recorded higher employee compensations and benefits as well as increased fees for professional services in the quarter. Our ability to carefully manage our expenses, refine our cost structures, and improve our operating efficiencies while growing our business enabled us to further enhance our profit margins in the quarter. Our net income increased significantly by 98.8% to CNY 248.1 million, from CNY 124.8 million in the same period of last year. Our net profits margin also expanded to 27.7% from 21.6% in the same period of last year. We ended this quarter with CNY 217.5 million in cash and cash equivalents, up from CNY 213.9 million as of June 30, 2022.
As of September 30, 2022, we have deployed approximately $2.1 million to repurchase approximately 0.9 million American depositary shares under the share repurchase plan we initiated since June 13, 2022. Moving to our guidance. Given our better than expected performance in the first nine months of the year, we now further revise our full year 2022 loan origination volume outlook to RMB 50 billion, which compares to the original RMB 36 billion we provided in the Q1 , and the updated RMB 43 billion we announced last quarter. With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer questions. Operator, please go ahead.
Thank you. If you would like to ask a question, please press star one one on your telephone and wait for your name to be announced. Once again, if you would like to ask a question, please press star one one on your telephone. Please stand by while we compile the Q&A roster. Thank you. We'll now take our first question. Please stand by. Your first question is from the line of Sam Lee, an investor. Please go ahead.
Good evening. Thank you for taking my question. My first question is regarding the really strong growth, especially in the past few quarters. What were some of the key drivers for the growth, and how long do you expect to sustain the high double-digit growth going forward? Thank you.
Hi, Sam. This is Yifang. I'm gonna take your question. Your question is about our key drivers for strong growth. In my opinion, they were primarily coming from three fronts. The first is coming from our laser focus on strengthening and expanding our partnership with the licensed financial institutions. As Mr. Yan mentioned early, we have served over 46 financial institutions with a deepened and a broader network. The demand for our loans has been driven up as a result. The second are coming from our vast customer base. Since the start of the Jiayin Group, we have already served over 12 million customers in terms of their loan needs, and we continue to drive higher growth on our overall customer base.
The last but the most important is really the technology, technological capabilities and the expertise built over the years focusing on data-driven credit strategy and operational strategies. With such capabilities that will allow us to dig into our customer base and to properly assess their lending needs and be able to driving up our overall loan growth. Your question's about how long we'll be able to keep the growth. Of course, we like to see that as long as possible.
As we all know, in terms of the absolute loan growth, we're really focusing on making sure the growth is healthy, sustainable, and forward-looking, especially relative to overall economic outlook, legislation framework, as well as our market and lens, market outlook, so that we try to balance both our growth and overall the risk as well. I hope that answered your question.
Thank you. We have no more questions at this time. I'll return the call back to Shawn for closing remarks. Please go ahead.
Thank you, operator. 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. This does conclude the conference for today. Thank you for participating, and you may now disconnect.