Jiayin Group Inc. Q3 FY2025 earnings call

• China's GDP grew by 4.8% year-on-year in Q3, with consumption contributing 56.6% to growth, and demand for consumer finance rising. - Loan volume was RMB 32.2 billion, up ~20.6% y-o-y; non-GAAP income from operation was RMB 190 million, up ~50.3% y-o-y, achieving guidance. - Maintained cooperation with 75 financial institutions, 64 under negotiation; included in white lists of most partners. - Iterated risk control model, tightened strategies for high-risk users, with 90-plus day delinquency rate at 1.33% at end of Q3. - Cautious on new customer acquisition, focused on high-quality borrowers; repeat borrowers' share of facilitation volume at 78.6%. - AI development entered new phase with multiple innovations; deployed multimodal anti-fraud systems and AI-powered agent assistance. - Indonesian business saw ~200% y-o-y growth in business scale, ~150% y-o-y increase in borrowers; Mexico had rapid loan volume and user base growth.

In the third quarter, Jiayin Group facilitated RMB 32.2 billion in loan volume, a year-on-year increase of approximately 20.6%. Non-GAAP income from operation was RMB 190 million, up around 50.3% year-on-year. The company maintained cooperation with 75 financial institutions, with another 64 under negotiation. Repeat borrowers' share of facilitation volume rose to 78.6%, and the overall average borrowing amount per borrowing increased to RMB 9,115 yuan, a year-on-year increase of approximately 19.5%. Revenue contribution details weren't explicitly broken down by specific product segments beyond the overall loan facilitation and related metrics.

• Projected Q4 loan facilitation volume at RMB 23 billion to RMB 25 billion. - Full-year loan facilitation volume expected to be RMB 127.8 billion to RMB 129.8 billion, a year-on-year increase of approximately 26.8% to 28.8%. - Full-year non-GAAP operating profit guidance set at RMB 1.99 billion to RMB 2.06 billion, reflecting a growth of approximately 52.3% to 57.6%.

• Industry contraction and tightening liquidity led to pressure on overall risk indicators and fluctuations in asset quality. - Downward trend in asset pricing foreseeable, with continued focus on navigating volatility and building long-term operational resilience.

Q: After the new regulation took effect in October, what impact have you seen on the business and could management provide more color on any strategic adjustments and the outlook going forward?

A: Following the new regulation, impact on the industry was significant, mainly on pricing downward pressure and consumer protection. Asset pricing of loan facilitation business is compliant. Intensified adjustment of traffic acquisition, focused on cross-industry platforms and optimizing traffic mix, adopted cautious customer acquisition strategy. Enhanced borrower segmentation, improved risk identification for higher-risk groups, strengthened efforts to retain high-quality borrowers. Outlook is to navigate volatility and build long-term operational resilience.

Q: Given the current environment, how should we think about the revenue take rate and the margin expectations going forward?

A: In 2025, company's volume and non-GAAP income from operations were in line with guidance. Net profit for the quarter had a net margin of 25.6%, slightly decreased from Q2. New regulation brought short-term pressure, but long term, new regulation will raise industry entry barriers and drive sector towards healthier development. As industry shifts to higher-quality borrower segments, pricing and revenue take rate are expected to moderate, margins to return to healthier level.