Jiayin Group 3Q 2025 Earnings Call - Navigating Regulatory Headwinds with AI and Global Expansion

Conference Call Operator: Today, ladies and gentlemen, thank you for standing by and welcome to Jiayin Group’s Third Quarter 2025 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today’s call. If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Sam Lee from Investor Relations of Jiayin Group. Please proceed.

Sam Lee, Investor Relations, Jiayin Group: Thank you, Operator. Hello, everyone. Thank you all for joining us on today’s conference call to discuss Jiayin Group’s financial results for the third quarter of 2025. We released our earnings results earlier today. The press release is available on the company’s website, as well as from Newswire Services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer; Mr. Fan Chunlin, Chief Financial Officer; and Ms. Xu Yifang, Chief Risk Officer. Before we continue, please note that today’s discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995, forward-looking statements involving inherent risks and uncertainties. As such, the company’s actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company’s public filing with the SEC.

The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains the reconciliation of the non-GAAP financial measures to GAAP financial measures. Please note that unless otherwise stated, all figures mentioned during the conference call are in RMB. With that, let me now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

Yan Dinggui, Chief Executive Officer, Jiayin Group: 大家好，感谢各位参加嘉印科技2025年第三季度业绩电话会议。 Good afternoon, everyone. Thank you for joining Jiayin Group’s Third Quarter 2025 earnings conference call. 三季度，我国GDP同比增长为4.8%，相较上个季度5.2%有所放缓，但整体仍保持平稳，其中消费贡献56.6%仍占主导地位。与此同时，消费金融需求稳步上升，截至三季度末的狭义消费信贷余额同比增长4.2%。结合近期监管政策释放的信号表明，稳增长促消费与普惠金融的举措正在协同发力，为行业的长期健康可持续发展营造积极向好的环境。本季度，公司实现贷款初核交易额322亿元，同比增长20.6%；non-GAAP经营利润4.9亿元，同比增长约50.3%，达成前期制定的一致指引。 In the third quarter, China’s GDP grew by 4.8% year-on-year, slowing from 5.2% in the previous quarter but remaining stable overall. Consumption continued to play a dominant role, contributing 56.6% to growth. Meanwhile, demand for consumer finance has been rising steadily, with a narrow consumer credit balance up 4.2% year-on-year as of September 30th. Signals from the recent regulatory policies indicate that coordinated efforts to stabilize growth, boost consumption, and advance inclusive finance are creating a favorable environment for long-term healthy and sustainable development of the industry. In this quarter, the company facilitated RMB 32.2 billion in loan volume, a year-on-year increase of approximately 20.6%, and reported non-GAAP income from operation of RMB 490 million, up around 50.3% year-on-year, achieving our previously issued guidance.

包括其类，公司与75家金融机构保持合作，另有64家正在洽谈中。目前，我们已被绝大多数合作的金融机构披露的在白名单中，为稳定的资金供给提供了坚实的保障。我们利用自身技术优势、流量运营和风控能力，提高其资金配置效率，精准匹配其风险偏好，与资方伙伴积极探索开展新的业务形态。 During the reporting period, the company maintained cooperation with 75 financial institutions, with another 64 under negotiation. We have been included in the whitelist by most of our partner financial institutions, providing a solid foundation for stable funding supply. Leveraging our technological strengths, traffic management capabilities, and risk control expertise, we enhance our funding partners’ capital allocation efficiency, accurately align with their risk preferences, and actively explore new models for business collaboration. 受行业规模收缩及流动性趋紧的影响，我们观察到整体风险指标承压，资产质量有所波动。对此，我们快速迭代风险风控模型，持续收紧高弹性、高风险用户的策略，并且通过构建长短期相结合的模型，提升风险监测的灵活度和时效性，实现对风险趋势的敏锐洞察与及时响应。截至三季度末，90天以上的预期率为1.33%。我们将始终保持审慎运营的态度，持续增强公司在风控方面的竞争优势。 Against the backdrop of industry contraction and tightening liquidity, we observed pressure on overall risk indicators and fluctuations in asset quality. In response, we rapidly iterated our risk control models, continuously tightening strategies for high-risk, high-volatility users, and introduced models combining long-term and short-term perspectives to enhance the flexibility and timeliness of risk monitoring, thereby enabling sharp insights into risk trends and enabling timely responses.

At the end of the third quarter, the 90-plus-day delinquency rate stood at 1.33%. We will remain committed to prudent operations and continue to reinforce our competitive edge in risk management. 为提升资源配置效率，我们对于新客投放采取谨慎的策略，增加专注于优质客群的挖掘，新增渠道均为头部互联网平台，并持续优化额度机制，增强用户粘性及购物意愿。此外，重复借款作为业务增长的基石，其初核交易额占比进一步提升至78.6%，拉动整体建军借款金额提升至9,115元，同比增长约19.5%。 To optimize resource allocation efficiency, we adopted a cautious strategy for new customer acquisition, with a stronger focus on high-quality borrower segments. All newly added channels are leading internet platforms, and we continue to optimize our credit limit management to enhance user stickiness and facilitate repeat borrowing. Additionally, as the cornerstone of business growth, repeat borrowers saw their share of facilitation volume rise further to 78.6%. This drove the overall average borrowing amount per borrowing up to RMB 9,115, representing a year-on-year increase of approximately 19.5%. 自年初开始，公司在人工智能方面的发展进入了新的阶段。通过加大资源投入和组织架构调整，我们实现了多项重大创新，树立了高性能、低成本、轻量化的技术标杆。在赋能业务的深度方面，重点布局多模态反欺诈和AI作息辅助领域。相比使用外部模型的方案，自研模型不仅直接降低成本，超百万量级，更重要的是建立自身技术护城河，AI能力得到根本性的提升。 Since the beginning of this year, the company’s AI development has entered a new phase.

Through increased resource investment and organizational restructuring, we have achieved multiple significant innovations, establishing a technical benchmark of high performance, low cost, and lightweight. In terms of deepening business empowerment, we focused on deploying multimodal anti-fraud systems and AI-powered agent assistance. Compared to external models, our in-house model not only directly reduced costs by over RMB 1 million, and more importantly, building our own technological moat while fundamentally enhancing our AI capability. 通过搭建历史声纹数据库和高质量的声纹处理通道，我们对进线通话实施黑彩识别，累计识别黑彩声纹数量达4,000个以上。在图像识别方面，通过捕捉进阶用户的场景特征，筛选出高风险场景的线索，识别黑彩团伙准确率超90%。多模态能力的叠加之下，黑彩挖掘的时效从过去的一周压缩为两小时以内，构筑科技反诈新防线。在客服环节，我们打造了AI产品矩阵，以覆盖从前期作息培训、实施会话辅助到事后洞察分析的全流程，做起覆盖率100%，准确率达90%以上，有效提升人员的效率和服务效果。 By establishing a historical voice print database and a high-quality voice print processing pipeline, we conducted real-time fraud identification for incoming calls, identifying over 4,000 new fraudulent voice prints to date. For image recognition, by capturing contextual features of applicants and screening clues from high-risk scenarios, we achieved an accuracy rate exceeding 90% in identifying associations with organized fraud.

With the integration of these multimodal capabilities, timeliness of fraud detection was compressed from a week to within two hours, forging a new tech-driven line of defense against fraud. In customer service process, our AI product matrix covered the entire business process, from initial agent training and real-time conversation support to post-event analysis. With 100% agent coverage and over 90% accuracy, it significantly boosted staff efficiency and service quality. 在覆盖业务的广度方面，随着千机智能体研发平台的推出，显著降低了AI智能体的开发门槛。截至目前，数量已达300余个，内部月活渗透率达40%以上，有效提升了各部门独立开发AI智能体的效率与积极性。福西模型管理平台则致力于提高模型部署效率，使模型从开发到投产所需的时间从32天缩短为16天，模型投产数量增加了近3倍。两大平台让各业务部门实现了从单点应用到生态协同的转变。未来，我们将继续深入贯彻自家二战略，围绕四大应用方向，利用两大基础设施整合现有的AI模型和工具，进一步实现从技术突破到价值创造的升级更新。 In terms of broadening business coverage, the launch of Qianji Intelligent Agent R&D Platform has significantly lowered the development threshold for AI agents. So far, the number of such agents has exceeded 300, with an internal monthly active penetration rate exceeding 40%, effectively enhancing department efficiency and enthusiasm in independently developing AI agents.

The Fushi Model Management Platform is dedicated to improving model deployment efficiency, reducing the time required for models to go from R&D production from 32 days to 16 days, and nearly tripling the number of models put into production. These two platforms have enabled various business departments to transition from standalone applications to an integrated collaborative ecosystem. Looking ahead, we will continue to further advance the four plus two strategy, focusing on four major application directions and leveraging two key infrastructure platforms to integrate existing AI models and tools, further achieving an upgrade and innovation from technological breakthroughs to value creation. LI市场是我们突破地域增长边界的破局引擎，更是构建全球战略版图的核心支柱。第三季度，印尼地区持续对接多家资方机构，业务规模较去年同期增长近两倍，放款用户数同比增长约1.5倍。基于其对发展潜力的认同，我们对当地投资不断加码，增值收购其超过20%的股权，体现了我们深耕当地市场的坚定决心。墨西哥业务方面，本期放款规模和用户体量延续了高速增长的态势，市场拓展初见成效，当前仍处于产品创新和基础能力建设的关键阶段，旨在为深度运营夯实基础。 Overseas markets serve as both a game-changing engine for us to break through regional growth boundaries and a core pillar in building our global strategic footprint.

In the third quarter, our Indonesian business maintained engagement with multiple financial institutions, driving business scale increased by nearly 200% year-on-year, and the number of borrowers rising by approximately 150% compared to the same period last year. Recognizing its growth potential, we have significantly increased our investment in the local operator, acquiring a stake of more than 20% through capital injection, demonstrating our strong commitment to local market development. In Mexico, the loan volume and user base have maintained rapid growth, with initial success in market expansion. Currently, we remain in a critical phase of product innovation and foundational capacity building, aiming to lay a solid foundation for in-depth local operations. 随着4月初代新规的落地，行业面临速度变化和挑战。公司预计2025年四季度的初核交易量为RMB 230 billion-RMB 250 billion，全年初核交易量达RMB 1,278 billion-RMB 1,298 billion，同比增长约26.8%-28.8%。全年当GAAP经营利润指引定为RMB 1.99 billion-RMB 2.06 billion，同比增长约52.3%-57.6%。在复杂多变且竞争加剧的外部环境下，我们力求以经营业化的运营能力穿越周期，构建行稳资源的长期韧性。 With the implementation of the new loan facilitation regulation in October, the industry is undergoing numerous changes and challenges.

The company projects its loan facilitation volume at RMB 23 billion-RMB 25 billion for Q4 2025, with full year volume expected to be in the range of RMB 127.8 billion-RMB 129.8 billion, representing a year-on-year increase of approximately 26.8%-28.8%. The full year non-GAAP operating profit guidance is set at RMB 1.99 billion-RMB 2.06 billion, reflecting a growth of approximately 52.3%-57.6%. Amid a complex, volatile, and increasingly competitive external environment, we aim to navigate cyclical headwinds with lean operational capabilities and forge long-term resilience for steady, sustainable growth. 下面有请公司CFO范春林先生介绍本季度的财务表现。 With that, I will now turn the call over to our CFO, Mr. Fan Chunlin. Please go ahead. Thank you, Mr. Yan, and hello everyone for joining our call today. I will now review our financial highlights for the quarter.

Please note that all numbers will be in RMB, and all percentage changes refer to year-over-year comparisons unless otherwise noted. As Mr. Yan noted earlier, we demonstrated robust business resilience in Q3 and successfully achieved our financial guidance. Loan facilitation volume was RMB 32.2 billion, representing an increase of 20.6% from the same period of 2024. Our net revenue was RMB 1,470.2 million, representing an increase of 1.8% from the same period of 2024. Moving on to costs, facilitation and servicing expense was RMB 286.5 million, compared with RMB 419.1 million for the same period of 2024. This was primarily due to decreased expenses related to guarantee-related services.

Allowance for uncollectible receivables, counter assets, loans receivable, and others was RMB 1.5 million, representing a decrease of 87.1% from the same period of 2024, primarily due to decreased allowance for overseas loans as a result of disposal of Nigerian entities during 2024 and the gross slowdown of receivables from loan facilitation business. Sales and marketing expense was RMB 544.2 million, representing a decrease of 1.1% from the same period of 2024. General and administrative expense was RMB 72.4 million, representing an increase of 29% from the same period of 2024, primarily driven by an increase in share-based compensation. R&D expense was RMB 108.7 million, representing an increase of 13.3% from the same period of 2024, primarily driven by an increase in expenditures for employee compensation and related benefits. Non-GAAP income from operation was RMB 490.6 million, compared with RMB 326.5 million in the same period of 2024.

Consequently, our net income for the third quarter was RMB 376.5 million, representing an increase of 39.7% from the same period of 2024. Our basic and diluted net income per share was RMB 1.83, compared with RMB 1.27 in the third quarter of 2024. Basic and diluted net income per ADS was RMB 7.32, compared with RMB 5.08 in the third quarter of 2024. We ended this quarter with RMB 124.2 million in cash and cash equivalents, compared with RMB 316.2 million at the end of the previous quarter. With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer your questions. Operator, please proceed. Thank you so much. Dear participants, as a reminder, if you wish to ask a question, please press star 1, 1 on your telephone keypad and wait for your name to be announced.

To withdraw a question, please press star 1 and 1 again. Please then bow or compile the Q&A row state. This will take a few moments. Now we’re going to take up the first question. It comes to the line of Yiwen Xu from Guojin Securities. Your line is open. Please ask your question. 哎，好的，哎，管理，感谢管理层介入提问。我是国金证券的分析师徐一文，那我这边有两个问题想请教一下管理层啊。首先第一个问题是关于新规，那么想请管理层能否为我们梳理一下，自从10月份这台新规正式实施以来，这对于公司的业务具体产生了哪些影响，那么以及管理层在经营策略层面有哪些最新的调整和展望。啊，这是我的第一个问题，那现在我把它翻译成英文。 So good evening, management. Thank you for taking my questions. I’m Yiwen from Guojin Securities. I have two questions. The first one is that, 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? This is my first question. Thank you. 哎，一文你好，我是徐一方。就您这第一个问题的话，我来做一个解答。刚才谈到就是10月份的这个初代新规的一个影响，其实在监管层面的话，整体的大的一个要求就是一个接一加定价的一个下行，要求来到24。啊，另外呢，就是在这个接过程中呢，我们看到就是持续呢，对消保啊，这样的一个指标的一个持续的一个关注。那么在行业里面，从资金的供应上来讲的话，那我们看到我们合作的持牌机构也是积极响应这个监管的这个要求，在产品上面，在10月落地之前也都完成了这个合规的改造，也在我们，我们也是配合这个我们的持牌机构去做，去完成这样的一个改造。在后续的话，对这个整个风险的这个诉求和要求也是，以及消保的这个诉求也是同样的关注。啊，这是一个资金层面。在客户层面上的话，因为这个整个资金的一个供给层面上来讲是有一个收紧，那么在客户的，客户的，在客户的这个需求上面的话，我们看到在市场上还是非常旺盛的。 哎，好的，好的，感谢管理层的回答。那我就好像有些信号，有些不太信号。我觉得这是一个方，刚才是不是有点，有点那个，就是对，有点断断续续的。对对对，现在可以吗？现在可以听清。哦，我觉得这是一个大的一个层面，但是在这个这个在这个变化，其实在过去的一两个季度里面，其实就是这样的一个变化的方向，就是都是在预期范围内。目前的话呢，面对这个整个的价格下行和行业上的一个流量波动，其实我们内部的一个应对的话，还是主要从两个方面来着手。一个方向呢，是在获客流量上的选择，会继续加大这样的一个调整的力度，也会注重，尤其是注重在业平台流量和流量获客投放的这个方向上面的一个获客的一个结构性调整，并且呢，在当下比较波动的一个，这个风险环境下面的话，整个获客策略的谨慎程度是持续拉高的。 Hi, Yiwen, I will do the translation for Ms. Xu.

Following the implementation of the new regulation, the impact on the industry has been pretty significant. Most of the changes have primarily been on the downward pressure of pricing to 24 and the continued emphasis on consumer protection. As of October, the asset pricing of our loan facilitation business is fully compliant with the regulatory requirements of our funding partners. As liquidity tightens, we’ve responded to the pricing pressure and liquidity pressure in the broader industry and the volatility industry. We have really intensified adjustment and traffic acquisition and placed a greater focus on cross-industry platforms and optimizing our traffic mix, adopting a more cautious customer acquisition strategy under the current environment. 好，那我们刚才聊了一下这个获客方面的这个，策略上的一些调整和，加速的一个变化。那我们在存量客户经营上面的话呢，是会去注重在客户的分群识别，一边通过，去强调这个风险周期的弹性，定价还有近期申请频次等等，对高风险客群通过控制余额加速性的方式去消化在我们这个定价，下行之后，持续经营存在挑战的这个客群的一个管理。另外一个方向呢，我们也会在通过产品和价格的调整去加强优质流失客户的和潜在流失客户的这样的一个经营，这样通过几方面去结合，去加速整个盘面的一个调整。怎么说呢，就是在资产定价上面，可以可预见的其实是这个价格下行的趋势是在那里的。我们不仅要做好这次波动的应对，其实，还是要持续去关注我们这个对，整个或者多个这个风险周期穿越证据风风险周期能力的一个建设和提升。 For our existing borrower base, we’ve enhanced borrower segmentation. Really, on one hand, we want to improve our risk identification for higher risk groups.

We’re utilizing measures such as managing outstanding balances and accelerating runoff based on indicators like risk cycle, elasticity, pricing, and recent application frequency to address the segments that are more challenging to operate under lower pricing. On the other hand, through product and pricing adjustments, we’ve strengthened the efforts to retain and reengage high-quality borrowers who may potentially churn. Taken together, these initiatives are helping us optimize the overall portfolio structure. Regarding asset pricing, it is foreseeable that the downward trend will continue. Our focus is not only navigating through the current period of volatility, but also continuously strengthening our ability to operate through risk cycles over the long term. 好，你们这是欢迎第一个问题的一个回答。 That’s my answer for your first question. 好的好的，感谢管理层的回答。那我这边还接着想问第二个问题，啊，就是想请问管理层，基于当前的一个环境，呃，内部对于未来收入的 take rate 以及利润率是作何预期的。 I will do the translation. Given the current environment, how should we think about the revenue take rate and the margin expectations going forward?

Thank you. 好的，谢谢一文。这个我来回答第二个问题，就是我们在 Q3，我们实现了这个撮合交易量 322 亿，然后非通用准则的经营利润 4.91 亿，达到了我们给出的这个指引。Q3 的净利润 3.76 亿，净利润率达到了 25.6%。那么相比 Q2，这个净利润率的这个确实略有下滑。那么应该讲前三季度，我们实现的整体的这个净利润总数是 14.35 亿，比去年的这个前三季度同比增长有 84%，并且已经远远超出了 2024 年全年 10.56 亿的这个净利润的数字。所以整体 2025 年的全年的利润率水平，啊，相比 2024 年会有一个非常显著的一个提升。 Thank you, Yi Wen. I’ll, I’ll answer this question. In the third quarter of 2025, the company facilitated RMB 32.2 billion in volume and delivered RMB 491 million in non-GAAP income from operation, in line with the guidance we previously provided. The net profit for the quarter was RMB 376 million, representing a net margin of 25.6%. In terms of the net margin, it’s a slight decrease from the 27.5% net margin in Q2. For the first three quarters, we achieved RMB 1.435 billion in net profit, up 84% year over year, and already well above the full year 2024 figure of RMB 1.056 billion. For the full year of 2025, we expect profitability to be significantly higher than 2024.

刚刚徐总也提到了，就是新规的这个落地，啊，短期内给整个行业带来的这个整体的流动性，包括这个资产质量的一些冲击。那么嘉盈作为一家高度敏捷的科技型公司，我们借助于我们过去多次穿越经济信贷和监管周期的成功经验，我们已经根据市场的变化快速迭代了我们的模型，及时审慎地调整了我们的业务的规模增长、风险策略和定价策略等等。 So as Ms. Xu mentioned, the new regulation brought short-term pressure to industry, while liquidity and asset quality. As a highly agile technology-driven company and drawing on our past experience navigating regulatory credit cycles, we made timely and prudent adjustments to our business scale, risk posture, and pricing strategy in response to market conditions. 长期来看，这个新规的贯彻执行将进一步提升行业的进入门槛，有利于整个行业更健康有序、更合规、更可持续的发展。伴随着我们向高质量客群的迁移，定价将这个温和下行，利润率也将进一步回归到健康可持续发展的水平。公司正在全面迈入高质量发展的新阶段。 Over the long term, the enforcement of the new regulation will raise industry entry barriers and help drive the sector towards a healthier, more orderly, more compliant, and more sustainable development. As the industry shifts towards higher quality borrower segments, pricing, therefore, revenue take rate is expected to moderate, and margins will return to a healthier and more sustainable level. The company is entering a new phase of high-quality development.

我再重申一遍刚刚严总在这个 mark 里面提到的我们的这个指引，我们 Q4 撮合交易量将达到 230 到 250 亿，全年交易量会在 1,278 到 1,298 亿这个区间内，同比增长 26.8% 到 28.8%。全年的非通用准则经营利润指引，我们是这个设在了 19.9 亿到 20.6 亿，同比也有一个 52.3% 到 57.6% 的这样的一个增长。 I want to reiterate, Mr. Yan’s guidance that he provided earlier. we expect Q4 volume to reach RMB 23-25 billion, bringing full year facilitation volume to RMB 127.8-129.8 billion, approximately 26.8-28.8% year over year growth. And full year non-GAAP income from operation guidance is RMB 1.99-2.06 billion, approximately 52.3-57.6% growth year over year. 好，谢谢一文。 Thank you, Yi Wen. Thank you, management. That’s very helpful. I have no more questions. Thank you. Thank you. Dear participants, once again, if you would like to ask a question, please press star 11 on your telephone keypad. Dear participants, if you would like to ask a question, please press star 11 on your telephone keypad.

Dear speakers, no further questions for today. I would now like to hand the conference over to Sam Lee for closing remarks. Thank you, operator, and thank you all for participating on today’s call. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you all again. This concludes the call. You may now disconnect.