Jiayin Group Inc. Q4 FY2025 earnings call

· 2025 was a key year for industry monitoring and deepening regulations, with steady growth in loan collection, revenue, and net profit despite a tightening external environment. · In the fourth quarter, following new regulation implementation, comprehensive financing costs declined, partnerships with financial institutions were maintained and negotiated, new borrowers decreased, channel management and investment budget efficiency were enhanced, and repeat borrowing potential was unlocked. · In artificial intelligence, 2025 saw progress in multi-modal anti-seizure AI, and 2026's 4G2 strategy involves reorganizing into production and non-production networks. · New business expansion focused on financial product innovation, operating model innovation, and overseas markets, with growth in Indonesia and Mexico. · Philanthropic activities and social responsibility efforts were carried out, and shareholder returns included cash dividends and share repurchases.

In the full year 2025, the company's loan collection and trading volume reached 129 billion yuan, revenue was 62.2 billion yuan, and net profit was 45.4 billion yuan. In the fourth quarter, loan facilitation volume was 24.2 billion yuan, net revenue was 1.0902 billion yuan. Facilitation and servicing expense was 328.2 million yuan, reversal of credit losses was 20.1 million yuan, sales and marketing expense was 498.7 million yuan, general and administrative expense was 66.8 million yuan, R&D expense was 121.9 million yuan, non-GAAP income for operation was 120.4 million yuan, net income for the fourth quarter was 100.6 million yuan. Repeat borrowing contribution accounted for 79.4% of loan facilitation volume in the quarter. The 90-plus-day delinquency ratio was expected to reach 2.03% by the end of the fourth quarter.

· Given the macroeconomic uncertainty, the company maintains a prudent stance. · Expected loan facilitation volume for the first quarter of 2026 is between 18.5 billion and 19.5 billion yuan. · Will continue to use compliance as foundation and innovation as engine to build resilience against cyclical fluctuations.

· The external environment continues to tighten, posing risks to business operations. · Industry volatility affects risk metrics, and the company needs to adjust strategies accordingly. · Regulatory changes bring uncertainties and may impact business development.

Q: About risk trend between 2025 and 2026 and how the company adjusts to fit strategy; about supervision environment and expectations for growth this year.

A: Risk levels in 2025 had specific trends with new borrowers, repeat borrowers, and adjustments in channel mix and risk management. For supervision, the new regulation raises industry entry barriers, and the company expects to navigate short-term volatility and move to high-quality moderate growth, with first quarter 2026 facilitation volume expected in a certain range.