Jiayin Group Inc.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jai Yin Group's fourth 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.

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 fourth 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. Yanjing Gui, 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 involve 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 filings 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 relief, which contains a 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 Chinese, renminbi. 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.

Hello, everyone.

Thank you for joining our fourth quarter and four-year 2025 Earnings Conference Call.

2025 is the key year for industry monitoring and deepening, and the development of regulations. Even though the external environment continues to tighten, we still maintain a steady and positive growth trend. In the entire year of 2025, the company's loan collection and trading volume reached 12.9 billion yuan, which is about 28% of the total growth rate. The actual income was 62.2 billion yuan, which is about 7.3% of the total growth rate. The net profit is 45.4 billion yuan, which is about 45.4% of the total growth, which shows that we are resilient in a complex environment.

2025 was a pivotal year for the industry, marked by deepening regulation and standardized development. Despite the continuously tightening external environment, we maintained steady progress. For the full year, our loan facilitation volume reached RMB 129 billion. representing a year-on-year increase of approximately 28%. We achieved revenue of RMB 6.22 billion, up approximately 7.3% year-on-year, and net income of RMB 1.54 billion, a year-on-year increase of approximately 45.4%, demonstrating our operational resilience amid a complex environment.

四季度随着住贷新规的落地实施, In the fourth quarter, following the implementation of the new regulation, we observed a continuous decline in comprehensive financing costs,

alongside higher entry barriers and stricter compliance requirements. In response to this new regulatory landscape, we have proactively collaborated with our funding partners to facilitate necessary adjustments. As of now, we maintain partnerships with 79 financial institutions, with an additional 53 currently in negotiations.

We have always adhered to the rule of law, followed the principles of priority, actively adjusted the customer pace, This quarter, the number of new borrowers is about 40.7 million. Compared to the same period last year, it has fallen back. In order to further enhance the accuracy of channel management and the efficiency of investment budget, multi-department linkage, reshaping the channel evaluation system, continuing to optimize the input, dynamic warning, and withdrawal mechanism. In addition, through the construction of a flexible revenue management system and accurate storage and delivery mechanism, we effectively instilled the potential of high-quality users. We have consistently adhered to the operating philosophy of compliance as the foundation, quality and efficiency as priorities.

We proactively adjusted our borrowing acquisition pace this quarter, adding approximately 407,000 new borrowers, reflecting a year-on-year decline. To further enhance the precision of channel management and the efficiency of marketing spend, we implemented cross-functional collaboration to revamp our channel evaluation framework and to continue to optimize onboarding standards, ongoing monitoring, and off-boarding processes. Additionally, by establishing a more flexible credit limit management system, implementing targeted reactivation strategies for existing borrowers, we effectively unlocked the repeat borrowing potential among quality borrowers. Repeat borrowing contribution accounted for 79.4% of loan facilitation volume, an increase of 6.7 percentage points compared to the same period last year.

Since the beginning of the year, the risk indicators have continued to be suppressed. We have advanced the deep recovery of the wind control strategy at different stages. Through multi-person accurate tightening, and product generation, to realize the active control and detailed operation of the customer group structure at the time of the long-term risk, and to resist the impact of external fluctuations on asset quality. As of the end of the fourth quarter, it is expected to reach 2.03% in 90 days. By the end of the fourth quarter, it is expected to reach 2.03% in 90 days. By the end of the fourth quarter, it is expected to reach 2.03% in 90 days. Since the fourth quarter, risk indicators have remained under pressure.

We have been advancing a safe, deep restructuring of our risk control strategies, which include multiple rounds of tightening entry criteria, optimizing credit limits, and iterating on product offerings. This has allowed us to proactively manage risk exposure and refine borrower segment structures, mitigating the impact of certain external fluctuations on asset quality. As of the end of the fourth quarter, the 90-plus-day delinquency ratio was 2.03%. Entering 2026, thanks to precise identification and isolation of tail risk, along with structural optimization of existing asset portfolios, Forward-looking risk indicators are showing positive trends. We will continue to build a risk control system that balances long-term stability with short-term dynamics, serving as the balance for steady operations.

In the field of artificial intelligence, in 2025, we have achieved step-by-step progress in multi-modal anti-seizure AI support, data intelligence, and other aspects. In 2026, the 4G2 strategy will lead to key developments, We will divide the original four products into production networks and non-production networks. The production network focuses on core business, creating value, covering customer, control, and marketing three main directions. Explore the identification and acquisition of high-quality customers driven by AI, and the application of multi-modal technology such as digification, engraving, and drawing, in reverse automation, and the production and review of commercial content. The non-production circuit surrounds the daily operation of the system. It covers engineering intelligence, learning support, and office intelligence. The focus is to promote AI transformation, to improve the code, and to support the transformation of the screen. The human-to-human interaction of learning and learning is to improve the education system and continue to improve the internal intelligence office system. At the same time, the AI platform and the machine learning platform are two basic facilities. On the artificial intelligence front, we make solid progress in 2025 in multimodal, anti-fraud, AI-powered agents, and data intelligence.

In 2026, our 4 plus 2 strategy will undergo a key upgrade. We have reorganized our four core pillars into two main tracks, production and non-production. The production track focuses on core business value creation, covering three directions, borrower acquisition, risk management, and marketing. We are exploring AI-driven identification and acquisition of high-quality borrower groups, deepening the application of multimodal technologies. such as voice print, knowledge graph, and anti-fraud, and enabling AI-powered content generation and review and marketing. The non-production track aims to improve efficiency and quality in daily operations, covering engineering intelligence, agent assistance, and office intelligence. Key initiatives include advancing AI programming from coding completion to autonomous coding, adopting a human-machine collaborative agent model to enhance service quality and efficiency, and further upgrading our internal intelligent workplace systems. Meanwhile, our intelligent agent platform and machine learning platform as the two foundational infrastructures will continue to provide underlying tooling support for upper layer applications. This strategic upgrade marks a shift in our AI strategy from capability building to value creation, embedding AI more deeply into our business value chain and providing stronger, more sustainable drivers for development.

In terms of new business expansion, we continue to work on the innovation of financial products, the innovation of the operating model, and the three dimensions of the overseas market. In terms of products, we actively set up the car chassis and the roadway of the roadway, which is rich in modern products. In terms of the operating model, we have established a deep strategic cooperation relationship with multiple institutions through joint operations and the flow of the head. There are 21 projects in the year, and the scale of the business is growing rapidly. As a pioneer in setting up overseas markets earlier, its strategic value has become more and more prominent. In 2015, the rate of growth in Indonesia increased by about 187%, and the number of registered users increased by about 119%. The rate of growth is gradually increasing. The number of registered users increased by about 105%, and the number of registered users increased by about 111%. In terms of new business expansion, we have continued to focus on three dimensions, financial product innovation, partnership model innovation, and overseas markets.

On the product side, we actively expanded into auto-back loans and digital intelligent microloans, enriching our credit product portfolio. In partnership models, we connected with leading traffic ecosystems through joint operations, establishing deep strategic partnerships with multiple institutions. Throughout the year, we launched 21 projects with business scale growing month by month. As an early mover in global markets, its strategic value has become increasingly prominent. In 2025, facilitation volume in Indonesia increased by approximately 187% year-on-year, while registered users grew by approximately 119% year-on-year, demonstrating gradual scale effects. Mexico business accelerated significantly in the fourth quarter. For the full year, the total loan facilitation volume grew approximately 105% year-on-year, while registered users up approximately 110% year-on-year. marking a key milestone in validating our business model. We plan to use several countries where we have investment and operational experience as anchors to explore opportunities in other markets. Through cross-geography and cross-cycle deployment, we will steadily expand our global footprint.

金融普惠的本质不仅在于服务的触达深度, 更在于对社会温度的传递, In the past year, public activities have been integrated into various fields such as youth mental health and special group help, directly training teachers, students, and parents, covering more than 1,300 schools, and 60,000 teachers and students carried out mental health assessments to actually protect children's health and growth. In terms of voluntary service, since the establishment of the Home Support Service Team, there have been 120 members, and 28 activities have been held in total. The essence of financial inclusion lies not only in the depth of service reach, but also in conveying social value.

Our philanthropic initiatives reached multiple areas, including youth mental health and support for special needs groups. We directly trained over 30,000 teachers, students, and parents, covering more than 1,300 schools, and conducted mental health assessments for over 60,000 students and teachers, protecting the healthy growth of children through concrete action. In terms of volunteering services, since the establishment of the Jiaying Volunteer Service Team, We have grown to 120 members, completed 28 activities, and accumulated nearly 3,800 hours of service. Our philanthropic practices and social responsibility efforts have received multiple recognition from government departments, authoritative media outlets, and social organizations. This is not only an affirmation of our commitment to long-termism, but also a core competitive advantage in building trust in our brand.

In terms of shareholder returns, in 2025, the company will continue to implement the commitment to share the development results with shareholders. In the same year, we have completed the cash share distribution and the total distribution is up to $4,105 million, which is a growth of more than 50%. In August, we increased the total amount of the current stock return plan by more than $80 million. So far, we have returned nearly 4.6 million ADS. Regarding shareholder returns, in 2025, we continue to deliver our commitment to sharing benefits of our development with our shareholders.

During the year, we completed cash dividend distributions totaling US$41.1 million. representing an increase of over 50% year-on-year. In August, we increased the total quota of the current share repurchase program to no less than US $80 million. To date, we have repurchased nearly 4.6 million ADS with total value of approximately US $30.4 million. We will maintain our existing dividend policy and make disciplined use of the remaining repurchase capacity to deliver sustainable returns to shareholders.

Due to the macroeconomic environment, there is still uncertainty, and the company maintains a negative attitude. It is expected that the combined transaction volume for the first quarter of 2026 will be 185 to 195 billion RMB. We will use harmonious security, stable resources, and innovative investment to drive development.

Given the ongoing uncertainty in the macro environment, we maintain a prudent stance and expect loan facilitation volume for the first quarter of 2026 to be between RMB 18.5 billion and RMB 19.5 billion. We will continue to use compliance as our foundation and innovation as our engine to continuously solidify the technological foundation

and build resilience against cyclical fluctuations.

With that, I will now turn the call over to our CFO, Mr. Fan Junlin. 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, amid liquidity tightening and heightened risk volatility following the new regulatory implementation, we have proactively pivoted to prioritize asset quality for the expansion to safeguard our long-term stability. Loan facilitation volume in Q4 was $24.2 billion, representing a decrease of 12.6% from the same period of 2024. Our net revenue was $1,090.2 million, representing a decrease of 22.4% from the same period of 2024. Moving on to costs. Facilitation and servicing expense was $328.2 million, representing a decrease of 3.3% from the same period of 2024. Reversal of credit losses of uncredible assets, loans receivable, and others was 20.1 million, compared with 1.2 million allowance for credit losses of uncredible assets, loans receivable, and others in the same period of 2024, primarily due to write-back of allowance for overseas contingent guarantees arising from low expected loss rates. Sales and marketing expense was 498.7 million, representing a decrease of 3.6% from the same period of 2024, primarily driven by the improvement in operational efficiency. General and administrative expense was 66.8 million, representing an increase of 24.4% from the same period of 2024, primarily due to an increase in employee costs. R&D expense was 121.9 million, representing an increase of 21.4% from the same period of 2024, primarily due to an increase in professional service fees and employee costs. Non-GAAP income for operation was 120.4 million, compared with 402.4 million in the same period of 2024. Consequently, our net income for the fourth quarter was 100.6 million, compared with RMB 275.5 million in the same period of 2024. Our basic and diluted net income per share were both 0.49 compared with 1.30 in the fourth quarter of 2024. Basic and diluted net income per ADS were both 1.96 compared with 5.20 in the fourth quarter of 2024. Each ADS It presents four Class A ordinary shares of the company. We ended this quarter with $61.8 million in cash and cash equivalents, compared with $124.2 million as of September 30, 2025. With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer questions. Operator, please proceed.

To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. Our first question comes from Yushuan Chen with Huatai Securities. Your line is open.

Hello, good evening, I'm Chen Yushan from China. Thank you for the opportunity to ask me a question. I have two questions to ask. The first one is about risk. Can you share with us the trend of risk data between 2025 and 2026? Due to the recent fluctuation of the industry, how does the company adjust to fit the strategy? This is the first question. The second question is about supervision. The current supervision environment in China is still continuing to shrink. What are the expectations of the management system for this year's development, especially the core business indicators such as body weight and profit capacity? Let me translate it. Hello, management. Thanks for taking my question. I got two questions here. The first one is about the risk. Could the management share how your risk and metrics have been trending in the fourth quarter of 2025 and the year to date in 2026? Given the recent volatility in the industry, how have you adjusted your customer acquisition strategy? The second one is about the regulation. With the regulatory environment in China continuing to tighten, what are your expectations for growth this year? In particular, how do you see the key metrics like loan facilitation volume and profitability trending? Thanks.

That's all. Okay. Thank you, Yusheng. I will ask Charlie the second question. Hi, I will answer your first question.

Mr. Fan, we'll answer your second question. So as you know, risk for this year is highly related to the regulation, so I won't go into too much detail on the interpretation of the new policy and the new regulation, because I believe most of the investors in the sector are already quite familiar with the dynamics.

Let's talk about the internal risk trend from our perspective. China China China China So from Jiayin's perspective,

compared with the previous cycle, the increase in risk last year was more pronounced and more prolonged. And particularly in the first four to six weeks leading up to the peak, at the new borrower level, we observed the market reached its peak around late September and to early October. So the exact timing is a little bit different across different channels of different quality. But risk levels remain elevated through November before starting to decline in December.

During this period, we proactively adjusted our channel mix.

We tightened our standards in the new borrower models and strategies.

and control the absolute volume of new borrower acquisition. So from the repeat borrowers side, for the incremental assets from the repeat borrowers,

risk peaked in November and then gradually declined starting in December. So in response, we adopted a more selective and disciplined approach to risk management, focusing on higher quality and more resilient borrowers for approval. So we also applied more stringent underwriting and credit limit management for customers who are higher risk with multiple outstanding debts, weaker asset profiles, and limited financing capacity.

particularly among the near prime or marginal borrowers. Overall, our structured risk management approach

has delivered tangible results. And based on our internal analysis, amid the broad industry-wide risk cycle, our measures contributed to an improvement in risk metrics by approximately 25 to 30%.

Since January, we have been paying close attention to the development of the whole industry, because whether it is the platform or our operating financial institutions, we are still experiencing the impact of the risk factors of last year. At present, the increased risk continues to be optimized for the entire customer, because the question is about the direction of the entire customer. In terms of the direction of the customer, we are still relatively cautious. Since January, we have been closely monitoring the overall industry volume trends.

Both the platforms and our financial institutional partners are really still digesting the impact of last year's risk volatility. With that said, we're still seeing continued improvement in our new risk vintages. Since your question is on the customer acquisition front, we remain cautious in ramping up volumes. In terms of the channel strategy, we're really prioritizing the leading traffic platforms and lower-cost acquisition channels so that we can optimize our customer mix for the long term.

The next question is for Charlie.

So for the second question, I'll hand it over to our CFO, Mr. Charlie Fan. Thank you, Yifeng.

The second question is about the current situation of the company's management and continuous tightening. The company has a certain expectation for the development of this year, especially the two core indicators of match-making capacity and profitability. Let's talk about the whole year in 2025. The company completed 12.9 billion in match-making transactions. The revenue and net profit are 62.2 billion and 15.4 billion respectively. The net profit rate of the whole year

So, Yusheng, your second question is on the effects of the regulation and metrics. So, for the full year of 2025, we achieved total facilitation volume of RMB 129 billion, with revenue and net profit reaching RMB 6.2 billion and RMB 1.54 billion, respectively, representing a net margin of 24.7%.

As you can see, after the second quarter of 2025, especially since the new rule was officially implemented, the mobility of the industry has gradually shrunk, and the risk of the entire industry has shown an obvious rise. As Xu Zhong mentioned, under this big background, we have actively tightened our head and repeated our split strategy. The total turnover of the quarter is 371 billion in the second quarter. After the historical high point, we continue to reduce Q3 and Q4.

So we see since the second quarter of 2025, particularly following the formal implementation of the new regulations, industry liquidity has gradually tightened and risk levels have shown a clear upward trend. So against this backdrop, we proactively tighten our standards and restructure our risk management strategies. So after reaching a historical quarterly peak of RMB 37.1 billion in facilitation volume in Q2, we continue to scale back in Q3 and Q4, with Q4 volume declining to RMB 24.2 billion. Revenue and net profit for the quarter were RMB 1.09 billion and RMB 100 million, respectively, with net margin declining to 9.2%.

It's the same as a few investment companies. It's the same as a few investment companies. The short-term volatility of the risk data and the rapid decrease in volume brought about a large-scale economy. Our short-term profit rate is facing a certain pressure.

Similar to other leading players in the industry, we have faced short-term pressure on profitability due to declining pricing, volatility in risk metrics, and dis-economies of scale resulting from rapid volume contraction.

As we have mentioned several times in our previous conference, new rules will raise the threshold of the entire industry. So with that said, as we've iterated in previous earnings calls,

the implementation of the new regulation is expected to raise industry entry barriers and increase market concentration. As a leading platform, we believe that Jiaying technology can navigate through this period of short-term risk volatility and scale adjustment. We are well-positioned to enter a new phase of high-quality moderate growth over the medium to long-term. And encouragingly, after several quarters of rising risk across the industry,

We are beginning to observe the early signs of stabilization and improvement in asset quality.

So looking ahead, we'll continue to operate with compliance as our foundation, closely monitoring changes in risk trends and market liquidity, and dynamically adjusting our strategy in line with the evolving industry fundamentals. Given that the industry is still undergoing a transition period following the new regulations, we will maintain a high degree of flexibility and review our target on quarterly basis. As Mr. Yang mentioned, For the first quarter of 2026, we expect the facilitation volume to be in the range of RMB $18.5 billion to $19.5 billion. Thank you.

Thank you. Our next question comes from Roxy Liu with Kailu Capital. Your line is open.

Thank you, Alfredo. Even the rapid growth of the company's overseas business in 2035, could the management elaborate on Jiayin's strategic roadmap, and the future outlook in the overseas market. Thank you.

Hello, Roxie. I would like to talk about the development of overseas business. As I said, we are talking about finance and technology today. Overseas business is also the focus of the entire industry, especially for the private sector. Hi, Roxy. I'll answer your questions on the overseas part.

So in today's FinTech landscape, the international business has really become a key growth pillar that we're actively cultivating. As Mr. Yang mentioned earlier, our operations in Indonesia and Mexico have both been growing at a strong pace with volumes roughly doubling year-over-year in 2025.

So we expect the momentum to continue. So from the scale perspective, we look to do the same in 2026, so another year of doubling in scale.

At the same time, on the quality front, both markets are expected to reach important strategic milestones in moving towards profitability.

So from a business model perspective, we will continue to deepen our localization strategy

expanding partnerships with local financial institutions, and enhancing our ability to serve and empower the local financial ecosystem. At the same time, we'll continue to broaden our collaboration with international financial institutions to capture synergies from our global strategy.

In terms of the opening up of new countries and new markets, we are already in the early stages of planning. We are also looking forward to more good news in 2026.

For the new countries and markets, we've been actively laying the groundwork for expansion into new markets. So we look forward to sharing more progress with you later in 2026.

Thank you.

That's my answer on the international part.

Thank you. Seeing no more questions, I will return the call back to Sam for closing remarks. Please go ahead.

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.