Jiayin Group Q1 2025 Earnings Report

Jiayin Group EPS Results

• Actual EPS: $1.40
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Jiayin Group Revenue Results

• Actual Revenue: $244.68 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Jiayin Group Announcement Details

• Quarter: Q1 2025
• Date: 6/4/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, June 4, 2025
• Conference Call Time: 8:00AM ET

Jiayin Group (NASDAQ:JFIN) Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.

Jiayin Group Q1 2025 Earnings Call Transcript

Key Takeaways

• Jiayin delivered record quarterly highs, with first‐quarter loan facilitation volume rising 58.2% year‐over‐year to RMB 35.6 billion and net profit surging 97.5% to RMB 540 million.
• Sales and marketing expenses jumped 87.5% year‐over‐year as the company ramped up borrower acquisition efforts amid intensifying competition, signaling higher pressure on cost efficiency.
• The launch of the Fuxi model management platform covering 90% of business lines tripled model deployment efficiency and improved AI‐driven operations across the company.
• Risk metrics remained stable with a 90+ day delinquency ratio of 1.13%, while overseas markets saw strong momentum—Indonesia new users grew 196% and Mexico risk performance improved.
• Jiayin boosted its shareholder return policy, raising the payout ratio to ~30% of prior year net profit, approving a USD 0.8 per ADS dividend (+60%), and extending a USD 30 million share repurchase plan through mid‐2026.

Presentation

[Operator]

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's First Quarter twenty twenty five Earnings Conference Call. Currently, all participants are in a 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.

[Operator]

If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Sam Li from Investor Relations of Jiayin Group. Please proceed.

[Sam Lee, Head - IR at 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 first quarter of twenty twenty five. We released our earnings results earlier today. The press release is available on the company's website as well as from Newswire services.

[Sam Lee, Head - IR at Jiayin Group]

On the call with me today are Mr. Yanling Wei, 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.

[Sam Lee, Head - IR at Jiayin Group]

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.

[Sam Lee, Head - IR at Jiayin Group]

The company does not assume any obligation to update any forward looking statement, except as required under applicable law. Also, this call includes discussions of certain non GAAP financial measures. Please refer to our earnings release, 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 Dingguen. Mr. Yan will deliver his remarks in Chinese, and I will follow-up with corresponding English translation. Please go ahead, Mr. Hello, everyone.

[Sam Lee, Head - IR at Jiayin Group]

Thank you for joining our first quarter twenty twenty five earnings conference call. This quarter, China's economy continued to demonstrate recovery momentum and maintain steady growth. Total retail sales of consumer goods rose by 6.40.6% year over year, with the growth rate accelerating to 5.9% in March, indicating a pickup in consumer spending. We capitalized on the momentum and delivered a strong start to 2025, with loan facilitation volume reaching billion, up approximately 58.2% year over year. Non GAAP operating profit hit million, marking a year over year increase of 91.6.

[Sam Lee, Head - IR at Jiayin Group]

And net profit surged to million, reflecting a year over year rise of 97.5%. Both business scale and profitability metrics hit record quarterly highs since the company's listing, marking the beginning of a new phase of rapid growth. Leveraging diverse acquisition channels and wrapping up marketing efforts, in the first quarter, the company added 1,056,000 new borrowers, representing a year over year growth of 126.6%. New borrower contribution of total loan facilitation volume was 28.1%, demonstrating robust growth momentum. In terms of channel expansion, we explored cross industry use cases to reach new borrowers across different platforms, including lifestyle services, online video and travel.

[Sam Lee, Head - IR at Jiayin Group]

By establishing strategic partnerships with most multiple leading platforms, we further diversified our existing borrower base. Additionally, we integrated AI tools to analyze user feedback and optimize marketing materials, enabling real time adjustments to marketing strategies and targeted resources resource allocation to enhance borrower acquisition efficiency. To meet the rapid growth in consumer demand, we also actively expanded our high quality institutional partnerships. As of the end of quarter one, the company maintained partnerships with 69 financial institutions with another 55 financial institutions in discussion. This ensures robust funding support for our loan facilitation business.

[Sam Lee, Head - IR at Jiayin Group]

We view independent innovation as our key growth driver and continue to accelerate the digital transformation of our business. We actively promoted our four plus two AI development strategy in the first quarter, focusing on four major product matrices: business intelligence, data intelligence, agent intelligence and workplace intelligence, while collaboratively building two infrastructure platforms, the the intelligent agent platform and the large model post training platform. This helps establish a technological framework that supports the end to end AI capability upgrade across the company, comprehensively driving high quality development and intelligent business scenarios. In May, we launched the Fuxi model management platform, which now covers 90% of our business line. The platform is capable of faster model deployment, greatly streaming streamlining operations and improving model deployment efficiency threefold.

[Sam Lee, Head - IR at Jiayin Group]

Furthermore, model data preprocessing efficiency, model stability and execution speed have all seen notable improvements with the adoption of the Fuxi model management platform. We have also comprehensively upgraded the Tianlu R and D performance management platform, creating a unified management platform that covers the entire life cycle from product development to online operations. This further enhances the standardization and automation of R and D processes. In response to the rapid growth of new users and continuous rise in credit demand, we fully implemented the quality score framework, utilizing our self developed model to establish a risk assessment system for new borrowers, Collaborating across multiple departments, including borrower acquisition, modeling and risk management, we unified the evaluation standards for borrower acquisition quality. This approach enhanced borrower acquisition efficiency while maintaining disciplined management over risk performance.

[Sam Lee, Head - IR at Jiayin Group]

By the end of Q1, the ninety day plus delinquency ratio stood at 1.13, reflecting the remarkable stability of the company's risk management system. In terms of overseas business, the company's continued investment in risk control and operations has yielded significant results. Our business partners in Indonesia delivered outstanding performance in the first quarter with the number of new registered users surging by 196% year over year and loan volume growing by 190% year over year, both representing substantial breakthroughs. As the business matures, we plan to collaborate with local partners through diversified cooperation to further deepen our engagement in the local market. Meanwhile, risk metrics in our Mexico operations improved, accompanied by an increase in return on borrower acquisition investment.

[Sam Lee, Head - IR at Jiayin Group]

This fully demonstrates the continued advancement of our overseas operational capabilities. We have always adhered to a customer centric philosophy and view upholding industry standards as our responsibility. In the first quarter, the company released a 2024 consumer rights protection white paper, integrating consumer rights protection into every aspect of the company's operations and management. This initiative spans multiple dimensions such as technology driven fraud prevention, engaged customer service, external collaboration, and consumer protection education. The white paper showcases our commitment to enhancing the innovative practices and social responsibility in consumer rights protection.

[Sam Lee, Head - IR at Jiayin Group]

Additionally, we advanced the HeartSmile youth mental care project and conducted training for teachers and students focused on psychology, organized parent workshops, and activities supporting children with autism in multiple regions. The program has covered nearly 60 schools, benefiting over 16,000 individuals, and was recognized by China National Radio as an annual explanatory case of innovative philanthropy. Furthermore, the Jiaying volunteer service team consistently provided services for community and special schools, promoting the normalization of volunteer services. Looking ahead, we will continue to drive industry development through technological innovation and give back to society through concrete actions, reaffirming the trust placed in us. Regarding shareholder return.

[Sam Lee, Head - IR at Jiayin Group]

In March, we updated our dividend policy, raising the dividend payout ratio from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. In May, the Board of Directors approved a dividend plan of USD 0.8 per ADS, with the dividend amount increasing by approximately 60% compared with last year. Further details and dates for this dividend will be announced separately after the Board of Directors finalizes them. For the share repurchase program, the current plan has an upper limit of USD 30,000,000, and the Board of Directors has approved extending its validity to 06/12/2026. We are deeply honored as always to have the trust and support of our shareholders.

[Sam Lee, Head - IR at Jiayin Group]

In the future, we remain committed to sharing the company's development achievements and rewarding our shareholders.

[Operator]

This is the operator's. Speakers, we cannot hear you at the moment. Please check if the line is muted. Callers, please do hold the line whilst we get the speaker's sound connected.

[Yifang Xu, Chief Risk Officer & Director at Jiayin Group]

Hi, operator. This is Yifang Xu calling from Jiayin Group. I believe there the speaker who were presenting just now got disconnected. They are dialing in at this moment.

[Operator]

Thank you very much. Participants, please do continue to hold the line whilst the speakers reconnect.

[Yifang Xu, Chief Risk Officer & Director at Jiayin Group]

Hi, Sarah.

[Operator]

Hello. Is this the speaker line reconnected?

[Sam Lee, Head - IR at Jiayin Group]

Yes. We got disconnected. Sorry.

[Operator]

Thank you. Line is connected now, so please do continue.

[Sam Lee, Head - IR at Jiayin Group]

Okay. Okay. Hold on. In April, China's National Financial Supervision and Administration Commission issued a notice on strengthening the management of Internet loan facilitation business of commercial banks to enhance the quality and efficiency of financial services. The new rule affirms the positive value of the loan facilitation model and sets a clear regulatory framework, helping the industry move towards a more standardized and transparent practice.

[Sam Lee, Head - IR at Jiayin Group]

Looking ahead, despite global uncertainties affecting China's economic recovery, we still see many positive factors and remain cautiously optimistic. For Q2 twenty twenty five, we set our guidance for loan facilitation volume at RMB37 billion to RMB39 billion and non GAAP operating profit at RMB616 million to RMB730 million. And with that, I will now turn the call over to our CFO, Mr. Fan Chengling. Please go ahead.

[Chunlin Fan, Chief Financial Officer at Jiayin Group]

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 our numbers will be in RMB and all percentage changes refer to year over year comparisons unless otherwise noted. As Mr. Yan mentioned earlier, we sustained robust growth momentum in the first quarter, achieving a record breaking expansion in both business scale and profitability. Loan facilitation volume was 35,600,000,000.0, representing an increase of 58.2% from the same period of 2024. Our net revenue was 1,775,600,000.0, representing an increase of 20.4% from the same period of 2024. Moving on to costs. Facilitation and service expense was $336,000,000, representing a decrease of 49.6% from the same period of 2024.

[Chunlin Fan, Chief Financial Officer at Jiayin Group]

This was primarily due to decreased expenses related to financial guarantee services. Allowance for unconditional assets, loans, receivables and others was 17,500,000.0 compared with CNY2.6 million in the first quarter of twenty twenty four, primarily due to the additional overseas guarantees the company provided in the first quarter of twenty twenty five. Sales and marketing expense was million, representing an increase of 87.5% from the same period of 2024, primarily due to an increase in borrower acquisition expenses. G and A expense was million, representing an increase of 14.2% from the same period of 2024, primarily due to increased professional service fees. R and D expense was million compared with RMB83.3 million in the same period of 2024.

[Chunlin Fan, Chief Financial Officer at Jiayin Group]

Non GAAP income from operation was RMB606.6 million compared with 316,600,000.0 in the same period of 2024. Consequently, our net income for the first quarter was 5 and 39,500,000.0, representing an increase of 97.5% from $273,100,000 in the same period of 2024. Our basic and diluted net income per share was $2.53 compared with $1.29 in the first quarter of twenty twenty four. Basic and diluted net income per ADS was $10.12 compared with $5.16 in the first quarter twenty twenty four. We ended this quarter with hundred and $90,300,000 in cash and cash equivalents compared with 5 and $40,500,000 at the end of the previous quarter.

[Chunlin Fan, Chief Financial Officer at Jiayin Group]

With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer your questions. Operator, please proceed.

[Operator]

Thank Thank you. We will now take our first question. This is from the line of Hua Rong from Jin Yu Asset. Please go ahead.

[Analyst]

First, congratulations to management to have such brilliant revenue report this quarter. I have two questions. The first one, there has been a noticeable trend of raising customer acquisition costs across the industry. How has the company's acquisition costs evolved recently? And in this concept, matters is taken to merit the credit risk of new borrowers and ensure a set quality?

[Analyst]

My second question is, how is the company's management planning to address the potential ADR delisting risk? And what contingency matters are in place to mitigate the impact? Thank you.

[Sam Lee, Head - IR at Jiayin Group]

Mr. Hua Rong. I will answer your first question on the rising customer acquisition cost, and Mr. Fan will answer your second question on the ADR delisting risk. Starting from Q4 last year, the market has become a lot more dynamic and overall macro trend has become a little bit different.

[Sam Lee, Head - IR at Jiayin Group]

And in Q1 this year, the market has turned the market as well as our competitor has turned into acquiring new customers. So, yes, Jiang has also observed a rising trend in customer acquisition cost. This development is the result of multiple factors, including the broader external market environment, seasonal growth dynamics, and the company's own strategic decision. Yes. So as mentioned earlier, since the second half of last year, competition among loan facilitation platforms has really intensified with various acquisition channels seeing increased pressure to capture new users, and this is one of the external main external factors.

[Sam Lee, Head - IR at Jiayin Group]

As the first quarter marks the beginning of the year, we have proactively positioned ourselves to support our full year performance goal, reflected really in the strong push for user base expansion early on. Yeah. Additionally, earlier, mister Yan referred to the new regulatory framework, the new regulatory framework on governing loan facilitation. We've been actively exploring new areas of growth. This has led to increased investment and experimentation in acquiring new customers and expanding our customer segments.

[Sam Lee, Head - IR at Jiayin Group]

As a result, the rise in our customer acquisition cost, to a large extent, is a strategic choice. We expect this to be reflected in both the scale and quality of customers acquired going forward. Regards to the new customer asset quality, the concerns regarding the asset quality, we will continue to monitor shifts in the user acquisition models across the traffic ecosystem while staying focused on effectively reaching our target customer segments, we plan to strengthen our front end risk modeling capabilities, dynamically adjusting our channel mix and further enhancing AI applications in data mining and credit risk identification. These efforts aim to drive continued improvement in both customer acquisition cost and risk cost metrics for new borrowers. Mister Fang will answer your second question.

[Sam Lee, Head - IR at Jiayin Group]

I will answer the question regarding the ADR delisting risk. So the risk the risk with the Chinese ADRs being delisted have been ongoing concern for several years with the first wave of pressure starting during president Trump's first term. Following his return to the White House, we have gained we have again observed renewed rhetoric and actions in The US related to the potential delisting of Chinese ADRs. So what we have done is we've engaged extensive communication and consultation with our legal financial advisers and regulatory bodies to assess the potential risk of delisting. Based on thorough evaluation of various factors, including our industry business model, ownership structure and audit disclosure standards.

[Sam Lee, Head - IR at Jiayin Group]

We believe that the risk of delisting for Zhiyang Technology in the near term remains relatively low. Yes. At the same time, we still have to be ready and be proactively prepared for any alternative scenario. So in within the guideline of the Hong Kong exchanges, we have conducted comprehensive assessment and preliminary preparations across key areas such as shareholder structure, accounting standards and corporate governance. And this is all in line with the requirements for dual primary listing or secondary listing in Hong Kong.

[Sam Lee, Head - IR at Jiayin Group]

As a company that has achieved meaningful scale, maintains core competitiveness and delivers consistent profitability, Jiayin Technology is well positioned with multiple options. In the words of President Trump, we do have parts to play regardless of volatility in the capital market. We remain open to all possibilities and are actively preparing to ensure the company's long term sustainability and to safeguard the interest of our shareholders. That concludes my answer to your questions. Thank you, Ms. Huang.

[Operator]

Thank you. We will now move to the next question. Your next question is from Yusuan Chen from Huatai Securities.

[Yuxuan Chen, VP - Quant Trader of Prop Trading at Huatai Securities]

Okay. Let me do the translation. Hello, management. Thanks for giving me this opportunity. This is Chen Xuan from Huatai Securities.

[Yuxuan Chen, VP - Quant Trader of Prop Trading at Huatai Securities]

I have two questions. The first one is I noticed the net profit increased by 97.5% in this quarter. And what were the main drivers behind this significant improvement in profitability? And what is your outlook for profitability in the coming quarters? And the second question is, recently, the financial regulators issued new guidelines on loan facilitation in China.

[Yuxuan Chen, VP - Quant Trader of Prop Trading at Huatai Securities]

How does the company view this policy development? And what impact do you expect it to have on your business operations?

[Sam Lee, Head - IR at Jiayin Group]

Thank you, Yushuan. I will answer the first question and Ms. Xu will answer the second question regarding the new guidelines.

[Sam Lee, Head - IR at Jiayin Group]

As Mr. Yan mentioned, in Q1, we came out really strong with good financial results for the first quarter. In the first quarter of twenty twenty five, the company achieved net profit of RMB540 million, representing a year over year increase of 97.5%. Net profit margin reached 30.4%, significantly higher than the 18.5% reached in Q1 twenty twenty four. This improvement was driven by several key factors.

[Sam Lee, Head - IR at Jiayin Group]

The first reason is due to significant increase in loan facilitation volume. In the first quarter of twenty twenty five, total loan facilitation volume reached RMB 35,600,000,000.0, up 58.2% year over year, marking a new high since our IPO. The resulting economies of scale enabled cost and expense efficiency, leading to improved net profit margin. The second reason is ongoing optimization of revenue structures. As we've mentioned before, our current revenue is primarily composed of loan facilitation service revenue and guarantee related revenue.

[Sam Lee, Head - IR at Jiayin Group]

In the recent quarters, we have really strategically focused on driving high quality growth in loan facilitation services, which are at the core of our capabilities. In contrast, guarantee related services carry lower margins, so we have been intentionally reducing their share of revenue. Specifically, loan facilitation service revenue accounted for 83% of total revenues in Q1 twenty twenty five, up from 56% in Q1 twenty twenty four, while at the same time, guarantee related revenue dropped to 9.6% in Q1 twenty twenty five, down from 35.6% in the same period last year. This shift in revenue mix has significantly enhanced our overall profitability. The third reason is improved operational efficiency driven by continued investment in AI, technology and R and D.

[Sam Lee, Head - IR at Jiayin Group]

We continue to invest strategically in technology, AI and R and D with a particular focus on deploying AI across various operational functions. These efforts have laid a solid foundation for sustained improvement in efficiency both in Q1 and going forward. In terms of future guidance and outlook, for Q2, we're guiding loan facilitation volume to be in the range of RMB37 billion to RMB39 billion. This represents a 54% to 62 increase. And our non GAAP operating income between $660,000,000 and RMB $730,000,000.

[Sam Lee, Head - IR at Jiayin Group]

This is also a significant increase year over year. We really remain committed to delivering on the goals set at the beginning of the year. First, returning to a path of high quality, sustainable growth and second, at the same time, continue to improve asset quality and operational efficiency. We're confident in achieving significant profitability improvements for the full year of 2025. Thank you.

[Sam Lee, Head - IR at Jiayin Group]

And we'll have miss Xu answer the second question. As far as the new regulation goes, we think that they started drafting this regulation in the second half of last year and really became official this year. Overall, the new regulation reflects the regulatory recognition of the loan facilitation business model while also setting higher standards for its management. We believe it encourages platforms to support licensed financial institutions in delivering much broader financial inclusion through better service quality, lower pricing, and thereby promoting the industry's orderly development and effective risk control. In order to help our institutional partners achieve their goals and requirements, we're actively adapting to the evolving product requirements from our partner institutions in terms of pricing and structure.

[Sam Lee, Head - IR at Jiayin Group]

Given the large number and diversity of our institutional partners, the responses from them to the new regulation vary to some extent. That said, we're really nearing the completion of our product adjustment and implementation. So for for the partners who are seeking faster alignment with the new regulatory standards, we will begin switching over and rolling out the updated offerings shortly. So we expect to complete all the necessary adjustments and meet all the requirements across our institutional partnerships ahead of the scheduled deadline. At at the same time, we continue to invest in new growth drivers across regions and really to expand the scale, optimize the product models, and really further enhancing our capabilities in risk management, internal metrics, and cost efficiency, and to sustain high quality growth for giant technology. Hope that answers your question.

[Operator]

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

[Sam Lee, Head - IR at Jiayin Group]

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.

[Operator]

Thank you all again. This concludes the call. You may now disconnect.

Participants

Executives

• Sam Lee, Head - IR
• Yifang Xu, Chief Risk Officer & Director
• Chunlin Fan, Chief Financial Officer

Analysts

• Analyst
• Yuxuan Chen, VP - Quant Trader of Prop Trading at Huatai Securities