Jiayin Group Inc. Q2 FY2026 earnings call

• Domestic Market Adaptation: In response to industry regulatory compliance and liquidity tightening, Jiayin Group proactively adjusted its business structure. This led to a strategic reduction in risk exposure and a focus on high-quality borrowers. Consequently, transaction volume dropped significantly, but the 30-day collection rate improved consecutively, and the 90-plus day delinquency rate remained stable at 2.21%.

• International Expansion: International operations are serving as a key anchor for strategic transformation. Business volume with Indonesian partners increased by 58% year-over-year and 10% sequentially. Mexican business volume grew by 36% sequentially. The company has upgraded its strategy and execution teams globally and plans to deepen presence in Southeast Asia while cautiously exploring East Africa and Central Asia.

• Technology and AI Transformation: The company is transitioning from a loan facilitator to a comprehensive technology service provider. Its proprietary 'Fuxi' platform now covers the entire credit life cycle, reducing model optimization cycles from days to hours. End-to-end AI coverage has been implemented in customer service and loan intake, replacing human agents in select functions. Risk strategy iteration efficiency improved by over tenfold due to AI-assisted modeling.

• Anti-Fraud Measures: Facing sophisticated, organized fraud trends, Jiayin accelerated its multimodal risk strategy system. As of June end, the company blocked 176,000 malicious applications and intercepted over 264,000 high-risk repeat fraud applications, protecting partners and borrowers.

• Cost Efficiency: Significant cost reductions were achieved through operational adjustments. Sales and marketing expenses decreased by 68.8%, and general administrative expenses fell by 39.5%, largely due to reduced share-based compensation and lower acquisition costs.

The provided transcript does not break down financial performance by specific product segments. The company reports consolidated figures for the entire firm. Total transaction volume was RMB 9.5 billion (a 74.4% year-over-year decrease). Net revenue was RMB 636.9 million (a 60.9% year-over-year decrease). The company incurred a net loss of approximately RMB 180-183.6 million, compared to a net income of RMB 519.1 million in the same period last year.

• No Q3 Guidance: Management explicitly stated that the company will refrain from issuing guidance for the third quarter due to an uncertain macroeconomic environment and current strategic priorities.

• Dividend Suspension: The company has suspended its dividend payout for the entire fiscal year to maintain flexibility in capital allocation.

• Strategic Focus: Resources are being redirected toward business transformation and risk mitigation rather than aggressive growth or shareholder returns. The company aims to navigate the industry cycle using its strengthened cash position of RMB 504 million.

• Regulatory and Liquidity Risks: Industry-wide regulatory compliance requirements continue to impact short-term household consumer loans, leading to liquidity tightening and a cautious approach from institutional funding partners.

• Fraud Evolution: The industry is experiencing a rapid evolution of fraudulent activities, characterized by sophisticated disguising tactics and organized operations, which pose growing losses to institutions.

• Macroeconomic Uncertainty: The uncertain macroeconomic operating environment contributes to the decision to suspend guidance and dividends, highlighting potential volatility in future performance.

• Business Contraction: The significant drop in transaction volume (74.4%) reflects both external market contraction and internal strategic adjustments, posing risks to revenue stability during the transition period.

Note: The provided transcript indicates there were no questions asked during the Q&A session ('There are no questions'). Therefore, this section is empty.