Jiayin Group Inc. Q2 FY2025 earnings call

• Seized market opportunities by accelerating the matching of consumer credit supply and demand, supporting household consumption potential. Loan facilitation volume in Q2 set a new record.
• Maintained in-depth cooperation with 70 financial institutions, with 58 others under negotiation, and was included in loan facilitation partner lists by multiple institutions.
• Enhanced asset generation and risk pricing capability: Average borrowing amount per repeat borrower increased 4.8% q-o-q, repeat borrower loan facilitation volume share rose, and number of borrowers reached 908,000, up 33.5% y-o-y.
• Strengthened risk management: Increased investment in technology, built multimodal anti-fraud system, blocked malicious fraud applications, and customized risk models for high-risk users; 90-day plus delinquency ratio stable at 1.12%.
• Focused on AI technology application: Launched data intelligence assistant, replaced commercial large language models with self-optimized ones, reduced costs; models ranked highly in evaluations, built one-stop self-service R&D platform with over 200 agents deployed.
• Overseas markets: Indonesian loan disbursements up over 200% y-o-y, registered users up ~170%; Mexico loan disbursements and registered users up nearly 40% q-o-q.
• ESG progress: Released 2024 ESG report, adhered to inclusive finance, carried out public welfare initiatives, and integrated ESG into operations.
• Shareholder returns: Distributed annual cash dividend of USD 0.8 per ADS in July, increased share repurchase plan by USD 50 million in August.

In the second quarter, Jiayin Group achieved a loan facilitation volume of RMB 37.1 billion, a year-on-year increase of approximately 54.6%. Non-GAAP income from operations reached RMB 738 million, up approximately 182% year-on-year, and net income was RMB 519 million, a year-on-year increase of approximately 117.8%. The loan facilitation volume contributed significantly to the company's financial performance, with the revenue from loan facilitation services becoming a more substantial portion of the total revenue.

• Third quarter 2025 loan facilitation volume guidance: RMB 32 billion to RMB 34 billion.
• Third quarter 2025 non-GAAP income from operations guidance: RMB 0.49 billion to RMB 0.56 billion.
• Full-year 2025 loan facilitation volume guidance: RMB 137 billion to RMB 142 billion.

• Impact of new regulations on business going forward, with specific implementation details becoming clearer later, and licensed financial institutions being more cautious in funding supply.
• Market fluctuations requiring customized risk models, and potential short-term adjustments in strategies, pricing, and cooperation models due to new regulations.
• Tighter market liquidity possibly causing volatility in asset quality, especially among cyclical sensitive borrowers and those with tail-end pricing.

Q: How does management view the impact of the new regulations on business going forward?

A: The specific implementation of new regulations will become clearer in the fourth quarter. Licensed financial institutions are being more cautious in funding supply. The company is proactively preparing contingency and product plans and will continue to focus on strengthening credit technology, data, risk management, and operations capabilities.

Q: What are management's plans around shareholders' returns?

A: The company will maintain an annual dividend policy with total amount approximately 30% of previous year's net income after tax. Distributed cash dividend of USD 0.8 per ADS in July, increased share repurchase plan by USD 50 million in August, with total authorized repurchase amount at USD 80 million as of August 2025.

Q: What is the outlook for profit margin going forward in light of new regulations?

A: In the short term, new regulations will require institutions to adjust strategies, pricing, and cooperation models. Long term, regulations will benefit industry development. For Q3, loan facilitation volume guidance is RMB 32-34 billion, non-GAAP income from operations RMB 0.49-0.56 billion. Strong profit margin in Q2 attributed to high loan facilitation volume growth, optimized revenue mix, and strategic investment in AI technology and R&D.

Q: What are the key drivers behind the improved risk performance this quarter and how has risk performance trended so far in the third quarter?

A: Key drivers include ongoing investment in risk data and models, increasing loan volume, and technological investment in forward-looking research on risk cycles. In the context of tighter market liquidity, short-term adjustments and fluctuations among certain borrower groups are anticipated, but the company is proactively managing exposure and adjusting acquisition channels and strategies for different borrower segments to ensure healthy risk profile development.