Jiayin Group, Inc. Q4 FY2024 earnings call

• Macroeconomic: In 2024, China's macroeconomy showed steady growth with consumer credit demand rising, supported by consumer stimulus policies, and consumer credit grew by RMB 1.24 trillion, a 6.2% year-over-year increase.
• Company strategy: Pursued a strategy of steady progress driven by technology, expanding incrementally while carefully managing risks.
• Q4 2024 business: Facilitated loan transactions totaling RMB 27.7 billion, up 37.8% year-over-year, and loan facilitation service revenue reached RMB 1.1 billion, up 46.3% year-over-year.
• New borrowers: Added 2.774 million new borrowers in 2024, a 45.1% year-over-year growth, with an annual retention rate increase of approximately 7% and a retention rate of potential churn users nearly 75%.
• Institutional partnerships: Maintained in-depth cooperative relationships with 73 financial institutions in 2024 and explored innovative business models in areas like auto backed loans and loans for small and macro businesses.
• Technology application: Expanded AI application in customer services, risk control, marketing; completed primary deployment of DeepSeek-R1 and expected to accelerate its application in core business areas in 2025.
• Overseas business: Q4 2024 Indonesia loan volume increased 74% year-over-year and registered users grew 131% year-over-year, and working on the Mexican market with optimized risk indicators and improved profitability.
• Public welfare: Youth mental health care initiative reached over 1,500 schools in 8 provinces/municipalities, provided services to over 50,000 teachers and students, and was awarded as an annual Public Welfare Innovation Typical Case.
• Shareholder returns: Distributed total dividend of US$0.5 per ADS in 2024 and planned to declare and distribute cash dividend once per fiscal year from 2025, with the total amount increasing from no less than 15% to approximately 30% of the previous fiscal year's net profit after tax.

In Q4 2024, the company facilitated loan transactions totaling RMB 27.7 billion, a 37.8% year-over-year increase, with loan facilitation service revenue reaching RMB 1.1 billion, up 46.3% year-over-year. For the full year, the total loan facilitation volume exceeded RMB 100 billion. In terms of revenue contribution, loan facilitation service revenue's share increased from 48% in Q4 2023 to 80% in Q4 2024, while the share of guarantee service revenue decreased from 41.8% in Q4 2023 to 11% in Q4 2024. In 2024, consumer credit grew by RMB 1.24 trillion, a 6.2% year-over-year increase, and the company added 2.774 million new borrowers, a 45.1% year-over-year growth, with an annual retention rate increase of approximately 7%.

• 2025 loan facilitation volume target range: RMB 137 billion to RMB 142 billion.
• First quarter 2025 loan facilitation volume target: RMB 35 billion.
• First quarter 2025 non-GAAP income from operation target: RMB 0.57 billion to RMB 0.63 billion.
• Expect facilitation volume in the first quarter of 2025 to be around RMB 35 billion, a year-over-year increase of about 55%, and for the full year, the facilitation volume is projected to be RMB 137 billion to RMB 142 billion, a year-over-year growth of about 36% to 41%.

• Inherent risks and uncertainties in forward-looking statements as actual results may differ from expectations.
• Macro economic policies and changes could impact the consumer credit business.
• Competition in the consumer credit market may affect business performance.
• Technological application and innovation face risks and challenges.

Q: Significant slowdown in the company's revenue growth in 2024, short-term adjustment or long-term trend? Could the management share the business expansion plans and performance outlook for 2025?

A: The company's revenue structure primarily consists of loan facilitation revenue and guaranteed service revenue. In 2024, it focused on the high-quality growth of facilitation service revenue. In 2025, the first quarter loan facilitation volume target is around RMB 35 billion, a year-over-year increase of about 55%, and the full year loan facilitation volume is projected to be RMB 137 billion to RMB 142 billion, a year-over-year growth of about 36% to 41%.

Q: What plans and investments does this company currently have in technology, and talent cultivation? And how does the company ensure it maintains a leading position in technology?

A: As a technology company, it has increased investment in big data and artificial intelligence, completed a comprehensive upgrade of its corporate architecture and strategic positioning, conducted a thorough review of front-end and middle-office operations, and initiated the deployment of multi-node AI agent to advance unified one-stop intelligent solutions, strengthening automation capabilities across the entire data life cycle and exploring lightweight AI application in controlled processes.

Q: I have noticed a decline in the company's net income in 2024. What are the main reasons for this? Does the management believe there are issues with cost control? And are there any plans for improvement in the future? Also, in 2025, how does the company plan to optimize borrower experience to increase their loyalty? Additionally, does the company have plans to attract new borrower groups?

A: The year-over-year decline in net income was mainly due to one-time non-operating income in the fourth quarter of 2023, increased borrower acquisition efforts leading to higher related costs, and higher R&D expenses. For optimizing borrower experience, it will strengthen cooperation with popular traffic platforms, improve the seamless connection between marketing and risk control approval process, enhance customer service and membership benefits, and implement one-stop credit services. For attracting new borrower groups, it will continue to pursue the acquisition and retention of high-quality borrowers.