JIAYIN 2025 Q2
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance:

Jiayin Group reported strong financial performance for Q2 2025, with loan facilitation volume reaching RMB 37.1 billion, a 54.6% year-on-year (YoY) increase, setting a new record. Net revenue grew by 27.8% YoY to RMB 1,886.2 million, while non-GAAP income from operations increased 182% YoY to RMB 737.6 million. Net income rose by 117.8% YoY to RMB 519.1 million, driven by robust growth, efficiency improvements, and compliance efforts. Cash and cash equivalents grew to RMB 316.2 million, up from RMB 190.3 million in the prior quarter.

Company Outlook & Strategy:

Jiayin guided Q3 2025 loan facilitation volume to be between RMB 32 billion and RMB 34 billion, with non-GAAP income from operations expected at RMB 490 million to RMB 560 million. Management emphasized a focus on compliance as a foundation while leveraging AI and data-driven innovation to strengthen its competitive edge. Expansion in overseas markets, particularly Indonesia and Mexico, remains a strategic priority, with significant YoY growth in loan disbursements and registered users in both regions.

Key Industry Trends:

China's special initiatives to boost consumption and recent financial support policies have created favorable market conditions. However, new regulatory developments in the loan facilitation space are prompting financial institutions to adopt a cautious approach, particularly in funding supply and partner selection. Management expects clearer regulatory implementation by Q4, which could foster long-term healthy industry development.

Operational Highlights:

• Partnerships: Maintained collaboration with 70 financial institutions, with 58 more under negotiation, enhancing funding supply diversity and operational sustainability.
• Borrower Growth: Total borrowers reached 908,000, a 33.5% YoY increase, with repeat borrowers contributing 75.6% of loan facilitation volume.
• AI-Driven Efficiency: Advanced AI applications reduced costs for certain processes by 80% YoY, while optimized models achieved a 71% accuracy rate on international benchmarks.
• Overseas Expansion: In Indonesia, loan disbursements grew over 200% YoY, while Mexico saw a 40% quarter-on-quarter increase in both disbursements and registered users.
• Risk Management: Enhanced fraud prevention systems blocked 320,000 malicious applications in H1 2025, keeping the 90-day-plus delinquency ratio stable at 1.12%.

Challenges & Risks:

• Regulatory Uncertainty: New loan facilitation regulations may impact business operations, with financial institutions adopting conservative approaches.
• Cost Pressures: Sales and marketing expenses rose 46% YoY, while G&A and R&D expenses increased 70% and 16.8% YoY, respectively, due to higher payroll, share-based compensation, and borrower acquisition costs.
• Market Fluctuations: Customized risk models are being developed to address high-volatility users, reflecting the dynamic nature of the market.

Key Analyst Questions & Responses:

1. Impact of New Regulations:

   • Management anticipates clearer regulations by Q4 2025 and is proactively preparing for potential changes in product and cooperation models. The company views these developments as a long-term positive for fostering fair competition and healthy industry growth.

2. Shareholder Returns:

   • Jiayin increased its annual cash dividend by 60% YoY to USD 0.8 per ADS and expanded its share repurchase plan by USD 50 million, bringing the total authorization to USD 80 million. Management reiterated its commitment to sharing development achievements with shareholders.

This summary highlights the company's strong financial performance, strategic focus on compliance and innovation, and readiness to adapt to regulatory changes while capitalizing on growth opportunities in both domestic and overseas markets.