Jiayin Group Inc.

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 Chinese 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. Good afternoon, everyone. Thank you for joining Giant Group's Third Quarter 2025 Earnings Conference Call. Combined with the recent signal from the policy of monitoring, the growth rate of consumer spending and financial recovery is at the same level, creating a positive environment for the long-term health and sustainable development of the industry. In this period, the company's pre-contracted trading volume is 3.22 billion yuan, with a growth rate of 20.6%. Non-GAAP net profit is 4.9 billion yuan, with a growth rate of about 50.3%, reaching a pre-set value of 1 billion yuan.

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, food 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.

Up around 50.3% year-on-year, achieving our previously issued guidance. Up around 50.3% year-on-year, achieving our previously issued guidance. Up around 50.3% year-on-year, achieving our previously issued guidance.

During the reporting period, the company maintained cooperation with 75 financial institutions, with another 64 under negotiation. We have been included in the wide list by most of our partner financial institutions, providing a solid foundation for stable funding supply, leveraging our technological strength, 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.

Due to the impact of industry-level revenue and liquidity, we observed that the overall risk indicator was suppressed, and the asset value fluctuated. To this end, we quickly adopted the risk-free model to tighten the strategy of high-density and high-risk users, and through the model of long-term and short-term integration, 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 timing 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 and risk management.

In order to enhance the efficiency of resource configuration, we take a cautious strategy for new customers, and further focus on the excavation of user customer experience. The new channel is a platform for head-to-head interaction, and continues to optimize the revenue mechanism, strengthen user connectivity, and reach customers' wishes. In addition, the repeat of this model as a mechanism for business growth, its export transaction volume has increased by 78.6%.

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 amounts per borrowing up to RMB 9,115 yuan, representing a year-on-year increase of approximately 19.5%.

Since the beginning of the year, the company's development in the field of artificial intelligence has entered a new stage. Through increased resource investment and organizational price adjustment, we have achieved many major innovations. 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 model while fundamentally enhancing our AI capability.

Through the construction of a historical data library and a high-quality data processing channel, we have been able to carry out in-line communication and carry out black mass identification, including more than 4,000 black mass identifications. In terms of image recognition, by capturing the scene characteristics of advanced users, we can generate high-risk scene clues. More than 90% accuracy. With the addition of multi-layer capabilities, the black market has been successful since the past week, plus two hours. Included in the technology anti-bombing new defense line. In the customer service section, we created AI product evidence to cover the entire process of pre-selection training, implementation, and design assistance, to the post-selection survey analysis. The coverage rate is 100%, the accuracy rate is more than 90%, effectively improving the efficiency and service efficiency of the personnel.

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 and 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.

In terms of the wide coverage of the business, with the launch of the 1000G AI development platform, it significantly lowered the development threshold of AI intelligence. So far, the number has reached more than 300. The internal monthly activity penetration rate is more than 40%, effectively reducing the efficiency and efficiency of each department's independent development of AI intelligence. Fuxi's model management platform has the ability to improve the efficiency of model deployment, so that the model from development to production takes from 32 days to 16 days. In terms of broadening business coverage, the launch of changing 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 Fuxi 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'll continue to further advance the 4 plus 2 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.

The overseas market is a breakthrough engine for us to break through the borderline of global growth. It is also the core pillar of building a global strategic map. In the third quarter, the Indian region continues to connect with multiple financial institutions, with a scale of nearly twice as much growth as last year. The number of credit users is about 1.5 times the same as the growth. Based on its recognition of the potential for development, we continue to increase our local investment. The real estate acquisition period of more than 20% has reminded us of the firm determination of the local market. 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月苏黛新规的落地,行业面临速度变化和挑战。 公司预计2025年四季度的出口交易量为230亿至250亿元人民币。 The total annual turnover of 12.78 billion yuan is 12.98 billion yuan, which is the same as the growth of 26.8% to 28.8%. The total annual turnover of 19.9 billion yuan to 20.6 billion yuan, which is the same as the growth of 52.3% to 57.6% is the same as the growth of 19.9 billion yuan to 20.6 billion yuan, which is the same as the growth of 52.3% to 57.6%.

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 to RMB 25 billion for Q4 2025, with full year volume expected to be in the range of RMB 127.8 to 129.8 billion. representing a year-on-year increase of approximately 26.8% to 28.8%. The full-year non-GAAP operating profit guidance is set at RMB 1.99 billion to RMB 2.06 billion, reflecting a growth of approximately 52.3% to 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.

And 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 our 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 $32.2 billion, representing an increase of 20.6% from the same period of 2024. Our net revenue was $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 $286.5 million, compared with $419.1 million for the same period of 2024. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncollectible receivables, country assets, loans receivable, and others was $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 $544.2 million, representing a decrease of 1.1% from the same period of 2024. General and administrative expense was 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 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 490.6 million, compared with 326.5 million in the same period of 2024. Consequently, our net income for the third quarter were 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 $124.2 million in cash and cash equivalents compared with $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, one, and one again. Please stand by, we'll compile the Q&A, and we'll start this. We'll take a few moments.

And now we're going to take our first question.

And it comes to the line of Yiwen Xu from Guizhen Securities. Your line is open. Please ask your question.

Thank you for your question. My name is Yiwen Xu from Guizhen Securities. Good evening, management. Thank you for taking my questions. I'm Yiwen from Signalink. I have two questions. The first one is that after the new regulation talk 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.

Hello, everyone. I am Xu Yifang.

Let me answer the first question. We just talked about the impact of the new rules in October. In fact, in terms of supervision, the overall requirement is that the price will drop to 24. In addition, in this process, we can see that there is a continuous attention to the maintenance of such a indicator. In terms of the supply of funds in the industry, we see that our cooperating institutions are also actively responding to the demand for supervision. Before the fall of October, we have completed the reconstruction of the riverbed on the product. We are also cooperating with our institutions to complete such a reconstruction. As for the demand and demand for the entire risk in the future, Okay. Okay, thank you for your answer. I think this is a big level. But this change is actually in the past one or two seasons. In fact, the direction of this change is within the expected range. In the current situation, in the face of the price, price and industry flow fluctuations, we still need to take action from both sides. One direction is the choice of customer flow, which will continue to increase the strength of such adjustment. It will also focus on the structure adjustment of the customer flow in the field platform and the customer flow in the direction of the customer input. Hi, I will do the translation for Ms.

Xu. So following the implementation of the new regulation, the impact on the industry has been pretty significant. Most of the changes have been primarily then on the down pressure of pricing to 24 and the continued emphasis on consumer protection. So as of October, the asset pricing of our loan facilitation business is fully compliant with the regulatory requirements of our funding partners. So as liquidity tightened, we've responded, we've had response to the pricing pressure and liquidity pressure in the broader industry and the volatility industry. So we have really intensified adjustment in 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.

We just talked about some of the adjustment and acceleration of the strategy in terms of customers. We will focus on the division of customers by emphasizing the flexibility of the risk cycle, pricing, and recent application frequency, etc. High-risk customers will be digested by controlling the turnover acceleration method. After the pricing is done, the customer group that continues to exist will be managed. In the other direction, we will also adjust the product and price to strengthen the management of high-end and low-end customers. How can we combine these aspects to accelerate the adjustment of the entire market? What can we say? In terms of asset pricing, we can predict where the price will go down. We not only need to do a good job of responding to this fluctuation, So for our existing borrower base, we've enhanced borrower segmentation.

So 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. So taken together, these initiatives are helping us optimize the overall portfolio structure. And regarding as a pricing, it's 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.

That's my answer for your first question.

好的,好的,谢谢管理层的回答。 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,内部对于未来收入的 take rate 以及利润率是作何预期的? Then I will do the translation. So given the current environment, how should we think about the revenue take rate and the margin expectations going forward? Thank you.

好的,谢谢一文君,我来回答第二个问题。 In Q3, we achieved a total transaction volume of 3.2 billion yuan, and the net operating profit of 4.91 billion yuan, which reached the target value we set. Q3's net operating profit was 3.76 billion yuan, and the net operating profit rate reached 25.6%. Compared to Q2, the net operating profit rate has indeed dropped. In the first three seasons, the total net operating profit we achieved was 14.35 billion yuan, which is the same as that of the first three seasons last year, with an increase of 84%. Thank you, Yuan.

I will answer this question. So 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 operations. In line with the guidance we previously provided, And the net profit for the quarter was RMB 376 million, representing a net margin of 25.6. So 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.

As Mr. Xu said, the fall of the new rule has brought mobility to the entire industry in a short period of time, including some impact on asset value. So, as a highly sensitive technology company, we rely on our successful experience of participating in the economic, credit and supervision cycle many times in the past. So as Mr. Yu mentioned, the new regulation brought short-term pressure to industry by 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.

In the long term, the new regulation will further improve the entry level of the industry, which will make the industry healthier, more reasonable, and more sustainable. It will also lead to the transfer of high-quality customers. The price will go down smoothly, and the market rate will also return to a healthy and sustainable level.

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 borrow 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.

Let me repeat what Mr. Yan said in his remarks. Our Q4 total trading volume will reach 230 to 250 billion. The total trading volume will be between 1,278 to 1,298 billion. The same growth rate is 26.8% to 28.8%. The total non-common interest rate of the whole year is 19.9 billion to 20.6 billion. There is also a

I want to reiterate Mr. Yen's guidance that he provided earlier. We expect Q4 volume to reach RMB 23 to 25 billion, bring full year facilitation volume to RMB 127.8 to 129, 29.8 billion. approximately 26.8 to 28.8% year-over-year growth. And for your non-GAAP income from operation guidance is RMB 1.99 to 2.06 billion, approximately 52.3 to 57.6% growth year-over-year. Thank you, Yo.

Thank you, management. That's very helpful. No more questions. Thank you.

Thank you. Dear participants, once again, if you would like to ask a question, please press star 1 1 on your telephone keypad. Dear participants, if you would like to ask a question, please press star, one, one on your telephone keypad. Dear speaker, there are 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.