Jiayin Group, Inc. Sponsored ADR Class A Stock price
Is Jiayin Group, Inc. Sponsored ADR Class A a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $77.97m | Revenue (TTM) = $605.11m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $96.62m | Revenue (TTM) = $605.11m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Jiayin Group, Inc. Sponsored ADR Class A Stock Analysis
Analyst Opinions
7 Analysts have issued a Jiayin Group, Inc. Sponsored ADR Class A forecast:
Analyst Opinions
7 Analysts have issued a Jiayin Group, Inc. Sponsored ADR Class A forecast:
Jiayin Group, Inc. Sponsored ADR Class A Events
Past Events
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AUG
28
Q2 2026 Earnings Call
24 days ago
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JUN
23
Q1 2026 Earnings Call
3 months ago
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MAR
31
Q4 2025 Earnings Call
6 months ago
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NOV
25
Q3 2025 Earnings Call
10 months ago
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StocksGuide Free
Jiayin Group, Inc. Sponsored ADR Class A — Q2 2026 Earnings Call
1. Management Discussion
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group Second Quarter 2026 Earnings Conference Call. [Operator Instructions] 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 second quarter of 2026. 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; and Mr. Fan Chunlin, Chief Financial 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 statements, 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 Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.
[Foreign Language]
[Interpreted] Hello, everyone. Thank you for joining Jiayin Group's Second Quarter 2026 Earnings Conference Call.
[Foreign Language]
[Interpreted] According to the statistics from the People's Bank of China, the outstanding balance of short-term household consumer loans in China decreased by approximately RMB 190 billion in the second quarter compared to the end of the first quarter as industry regulatory compliance requirements continue to take effect, influenced by isolated industry events. institutional funding partners have adopted a more cautious approach.
Against this backdrop, the company proactively adapted to changes in the industry and accelerated the strategic adjustment of our business structure. During the quarter, the company achieved transaction volume of RMB 9.5 billion, representing a year-over-year decrease of approximately 74.4%, driven by both the industry-wide contraction and our strategic adjustment, we recorded a net loss of approximately RMB 180 million for the quarter.
[Foreign Language]
[Interpreted] In response to impacts brought by industry-wide liquidity tightening, we proactively reduced our risk exposure and steadily mitigated existing portfolio risk, concentrating our focus on our core base of high-quality borrowers. At the same time, we intensified our collection efforts and the 30-day collection rate improved consecutively quarter-on-quarter. As of the end of the second quarter, the 90-plus day delinquency rate stood at 2.21%, remaining stable on a sequential basis.
[Foreign Language]
[Interpreted] Our international business serves as a key anchor in driving our strategic transformation and structural upgrades. In the second quarter, our Indonesian partners' business volume increased by 58% year-over-year and 10% sequentially. By upgrading our risk strategy framework and advancing refined borrower segmentation, we significantly improved our customer acquisition cost efficiency and further expanded our partnership network with local financial institutions. In Mexico, business volume increased by 36% sequentially in the second quarter with continued improvements in borrower acquisition efficiency and asset quality.
To achieve our long-term vision for our overseas business, we have completely comprehensively upgraded both our strategy and execution team. Moving forward, we plan to continue deepening our presence in Southeast Asia as our core anchor market while taking a prudent approach to market research and expansion in emerging regions such as East Africa and Central Asia, thereby advancing our global expansion in a structured and disciplined manner.
[Foreign Language]
[Interpreted] Technology empowerment is a critical pillar of our strategic transformation, and we are accelerating our technology upgrade to transition from a loan facilitation service provider to a more comprehensive technology service provider. During the quarter, the company's proprietary [ Fuxi ] platform has completed the key development in the infrastructure layer, risk management layer and core skills deployment, covering all key operational processes throughout the credit life cycle.
Specifically, the end-to-end skill for credit assessment modeling has been implemented at scale, compressing the traditional model optimization cycle from 3 to 5 days down to a matter of hours with risk identification accuracy metrics, including model [ AUC ] and [ KS ] scores, significantly outperforming human benchmarks. Looking ahead, we will focus on building a customer data platform tailored for financial institutions, enabling existing borrower segmentation and targeting capabilities. with full integration into our automated marketing platform, establishing a standardized and scalable framework for technology service delivery.
[Foreign Language]
[Interpreted] In addition, AI applications have been fully embedded into the company's core operational value chain. End-to-end AI coverage has now been implemented in key operational scenarios such as customer service and loan application intake, completely replacing human agents in select functions. On the risk management front, we have developed our proprietary strategy assistance agent by combining large language models with traditional machine learning, driving the upgrade of risk strategy development from expert modeling with manual calculation to AI-assisted expert modeling with automated machine calculation.
Consequently, our risk strategy iteration efficiency has improved by more than tenfold and accuracy in key scenarios has increased by over 20%, benefiting from the workforce efficiency gains brought by AI, we are actively optimizing our organizational structure. AI is evolving from a stand-alone tool into a systemic capability, supporting the company in maintaining operational efficiency and cost competitiveness during this period of business adjustment.
[Foreign Language]
[Interpreted] On the anti-fraud front, during the first half of this year, the industry experienced a rapid evolution of fraudulent and illicit activities in the industry, characterized by sophisticated disguising and masking tactics and showed a clear trend towards organized operations, causing growing losses to institutions across the sector.
To address this, we accelerated the iteration of our multimodal risk strategy system to precisely identify behavioral differences between genuine users and proxy-based fraud operations. As of the end of June, we had cumulatively blocked 176,000 malicious applications from fraudulent activities and identified and intercepted more than 264,000 high-risk repeat fraud applications, effectively intercepting fraudulent agent-initiated complaints and safeguarding the interest of institutional partners and borrowers.
[Foreign Language]
[Interpreted] In light of the uncertain macroeconomic operating environment and the current strategic development priorities, the company has decided to refrain from issuing guidance for the third quarter and to suspend our dividend for this fiscal year. By maintaining flexibility in our capital allocation and operational pace, we will focus internal resources on business transformation and risk mitigation. Notably, as of the end of the second quarter, the company's cash and cash equivalents increased to RMB 504 million. providing a strong financial buffer to navigate through the industry cycle and ensure sound future development.
[Foreign Language]
[Interpreted] 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. Thank you 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 remained disciplined in our execution during the second quarter and delivered transaction volume in line with our previous guidance.
Transaction volume was CNY 9.5 billion, representing a decrease of 74.4% from the same period of 2025. Our net revenue was CNY 636.9 million, representing a decrease of 60.9% from the same period of 2025. Moving on to costs. Facilitation and servicing expense was CNY 549.3 million, representing an increase of 92.7% from the same period of 2025, primarily due to the increase in average outstanding loan balance for which the company provided guaranteed services.
Allowance for uncollectible receivables, contract assets, prepaid expenses and other current assets and others was CNY 51.3 million compared with CNY 32.5 million for the same period of 2025, primarily due to increased guarantee services the company provided. Sales and marketing expense was CNY 221.8 million, representing a decrease of 68.8% from the same period of 2025, primarily due to decreased borrower acquisition expenses and commission expenses. General and administrative expense was CNY 66.9 million representing a decrease of 39.5% from the same period of 2025, primarily due to a decrease in share-based compensation.
R&D expense was CNY 94.2 million, representing a decrease of 13.1% from the same period of 2025, primarily due to a decrease in share-based compensation. Non-GAAP loss from operations was CNY 225.7 million compared with CNY 737.6 million non-GAAP income from operations in the same period of 2025. Consequently, our net loss for the second quarter was CNY 183.6 million compared with CNY 519.1 million net income in the same period of 2025.
Our basic and diluted net loss per share was CNY 0.89 compared with CNY 2.46 basic and diluted net income per share in the second quarter of 2025. Basic and diluted net loss per ADS was CNY 3.56 compared with CNY 9.84 basic and diluted net income per ADS in the second quarter of 2025. Each ADS represents 4 Class A ordinary shares of the company. We ended this quarter with CNY 504 million in cash and cash equivalents compared with CNY 43.4 million at the end of the previous quarter.
With that, we can open the call for questions. Operator, please proceed.
[Operator Instructions] There are no questions. I will return the call 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.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Jiayin Group, Inc. Sponsored ADR Class A — Q1 2026 Earnings Call
1. Management Discussion
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's First Quarter 2026 Earnings Conference Call. [Operator Instructions]. 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 first quarter of 2026. 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 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 statements, 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 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 translation. Please go ahead, Mr. Yan.
[Foreign Language]
[Interpreted] Hello, everyone. Thank you for joining our first quarter 2026 earnings conference call.
[Foreign Language]
[Interpreted] During the first quarter of 2026, the consumer lending industry remained in an adjustment phase. The recovery in credit demand continued at a relatively gradual pace. and the industry as a whole remained under pressure. Against this backdrop, we focused on refining the operations of our high-quality existing borrower base and the structural enhancement of our business model. During the quarter, we achieved transaction volume of RMB 19.3 billion, representing a year-over-year decrease of 45.8%. Revenue was impacted by industry cyclicality and volume contraction, while temporary cost pressures persisted during the period. As a result, we recorded a net loss of approximately RMB 61.7 million for the quarter.
[Foreign Language]
[Interpreted] This quarter, we concentrated on the refined management and engagement of our high-quality existing borrower base. Through cross analysis of user risk scores and platform behavioral insights, we segmented our existing borrowers into groups and implemented differentiated engagement strategies and operating strategies tailored on each group's credit profile and borrower intent. Repeat borrowing contribution accounted for 76.3% of transaction volume during the quarter, representing an increase of 4.4 percentage points from the same period last year. These highly engaged users not only contributed to stable repeat borrowing demand, but also validated the initial effectiveness of our strategy to deepen engagement with existing borrowers.
[Foreign Language]
[Interpreted] The 90-plus day delinquency ratio was 2.25% as of the end of the first quarter, increasing sequentially. For higher-risk borrower segments, we continue to tighten underwriting criteria and credit limit controls to facilitate an orderly runoff of portfolio risk exposure. For high-quality borrowers, we further analyze borrower needs and work closely with our operations team to refine borrower management and engagement strategies with a focus on improving retention. Meanwhile, we are embedding AI capabilities into our operations to drive the productization of risk management and continuously refining and developing reusable standardized solutions.
[Foreign Language]
[Interpreted] On the business development front, we continue to execute the overall strategy established in the previous quarter and advance our structural upgrade through 3 key initiatives. The first initiative is the enhancement of our joint operations and tech empowerment model. During the quarter, we actively expanded our technology empowerment services for financial institutions. Under this model, the company acts as a technology and operation service provider, deeply integrating into the entire lending process of partner banks. We provide comprehensive solutions covering borrower engagement and operations, technology services and risk modeling capabilities.
Leveraging our advanced data technologies and extensive operational experience, we empower our partners throughout the credit life cycle. In the first quarter, the transaction volume generated through our technology empowerment business reached RMB 1.52 billion, representing a sequential increase of approximately 67.6%. This business represents a natural extension of the technology service capabilities we have accumulated over many years, enabling us to deepen our collaboration with financial institutions. It also represents an important innovation initiative in the current operating environment. We remain optimistic about the long-term value of this model and expect its scale to continue expanding in the future.
[Foreign Language]
[Interpreted] The second initiative is the development of a diversified product portfolio, including auto-backed loans and digital intelligence micro loans, which enables us to serve specific scenarios and borrower segments. For our auto-backed loan business, the version 3.0 system launched earlier this year has achieved end-to-end fully digitalized operations. We remain focused on borrower engagement and operations, risk empowerment and matching, while specialized partners handle post loan servicing and vehicle disposal. This collaborative model allows us to concentrate resources on our core strength while creating complementary advantages with upstream and downstream partners.
Since the beginning of this year, the auto-backed loan business has maintained strong growth momentum with overall user conversion rates ranking among the highest in the market under a full online operating model. The continued expansion of our diversified product portfolio helps us reach differentiated borrower groups while providing funding partners with broader asset options.
[Foreign Language]
[Interpreted] The third initiative is our international business. In Indonesia, loan volume increased by 20% quarter-over-quarter and more than doubled year-over-year in the first quarter. By deepening cooperation with local funding partners, we continue to expand our presence in the market. In Mexico, while currently small in scale, growth has been even faster. Our local partner loan volume increased by 35% sequentially during the first quarter and also delivered strong year-over-year growth. During the reporting period, revenue scale from overseas market continued to increase. We will continue to execute our globalization strategy, leveraging strategic investments as an entry point to explore our advanced technology capabilities and operational expertise and steadily build this segment into a growth engine for the company's future development.
[Foreign Language]
[Interpreted] In artificial intelligence, we continue to execute against a clear strategic road map by integrating AI technologies into our fintech ecosystem and accelerating the evolution of our technology service capabilities. In intelligent engineering, the feature iteration cycle for our risk management models has been reduced from several days to less than 1 hour, enabling strategies to respond rapidly to changes in market conditions.
This capability has also become a core technology offering provided to our institutional partners. For R&D acceleration, AI agents now generate approximately 30% of all AI-assisted code improving development efficiency by around 20% and further strengthening the engineering foundation for large-scale AI deployment. In service assistance, our proprietary models have been fully deployed across customer service operations.
Intent recognition accuracy improved from 78% to 93%, significantly enhancing service efficiency while reducing model inference costs by 90%. In addition, in workplace intelligence, we have completed enterprise-grade security enhancements for open cloud and deployed our proprietary AI agent, [indiscernible], across a wide range of daily work scenarios. These initiatives are gradually reshaping the way our organization operates, enabling AI to serve as a collaborative partner for every employee and continuously unlocking productivity gains. AI is steadily evolving from a supporting tool into an intrinsic driver of operational efficiency across the company.
[Foreign Language]
[Interpreted] We have always regarded security and responsibility as the lifeline of our business, leveraging the advantages of multimodal AI technologies, we continue to strengthen the protection of user interest. During the first quarter, we identified and blocked approximately 290,000 fraudulent borrowers and intercepted 113,000 malicious applications associated with organized fraud activities. We continue to advance our risk management strategy from a reactive defense model towards proactive prevention and preemptive interception. In particular, we have achieved substantial progress in multimodal large language model applications, including voice print recognition, image recognition technologies by integrating voice print analysis, graph algorithms, clustering technologies and other advanced techniques.
We are transforming our anti-fraud framework from traditional structured rule-based detection into a comprehensive prevention and control system built upon multimodal perception, graph analytics and scalable engineering implementation. To date, our multimodal anti-fraud system has identified approximately 5 million suspicious audio and video samples associated with fraudulent and illicit activities with an accuracy rate exceeding 90%.
[Foreign Language]
[Interpreted] Turning to shareholder returns. We have extended our current share repurchase program through June 12, 2027, with approximately USD 49.6 million remaining available under the program. We will continue to evaluate market conditions and our operational performance and comprehensively evaluate and implement various shareholder return initiatives.
[Foreign Language]
[Interpreted] Given the continuing uncertainty in the macroeconomic environment, we remain prudent in our outlook. We currently expect transaction volume for the second quarter of 2026 to be between RMB 9.5 billion and RMB 10.5 billion. Looking ahead, we will continue to prioritize disciplined operations and sustainable development. Through deeper operational experience and enhanced organization resilience, we aim to build a durable competitive moat.
[Foreign Language]
[Interpreted] 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. Thank you 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 remain disciplined in our execution during the first quarter and delivered transaction volume in line with our previous guidance. Transaction volume was RMB 19.3 billion, representing a decrease of 45.8% from the same period of 2025. Our net revenue was RMB 756.7 million, representing a decrease of 57.4% from the same period of 2025.
Moving on to costs. Facilitation and servicing expense was RMB 331.6 million, representing a decrease of 1.3% from the same period of 2025. Allowance for uncollectible receivables, contract assets, prepaid expenses and other current assets and others was RMB 1.1 million compared with RMB 17.5 million for the same period of 2025, primarily due to the decrease in allowance for overseas contingent guarantees. Sales and marketing expense was RMB 340.1 million, representing a decrease of 49.6% from the same period of 2025, primarily due to decreased borrower acquisition expenses.
General and administrative expense was RMB 44.1 million, representing a decrease of 16.5% from the same period of 2025, primarily due to decreased professional service fees. R&D expense was RMB 109.8 million, representing an increase of 24.6% from the same period of 2025, primarily driven by an increase in technology infrastructure expenses and employee costs. Non-GAAP loss from operations was RMB 70.1 million compared with RMB 606.6 million non-GAAP income from operations in the same period of 2025. Consequently, our net loss for the first quarter was RMB 61.7 million compared with RMB 539.5 million net income in the same period of 2025.
Our basic and diluted net loss per share were both RMB 0.29 compared with RMB 2.53 basic and diluted net income per share in the first quarter of 2025. Basic and diluted net loss per ADS were both RMB 1.16 compared with RMB 10.12 basic and diluted net income per ADS in the first quarter of 2025. Each ADS represents 4 Class A ordinary shares of the company. We ended this quarter with RMB 43.4 million in cash and cash equivalents compared with RMB 61.8 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.
[Operator Instructions] We will now begin with our first question. This is from [ Zhao Lee ] from [ CSC ].
2. Question Answer
[Foreign Language] I'm Jerry Li from China Securities. we have seen the company reported a net loss of almost RMB 62 million for the fourth quarter. It is fourth quarterly loss since listing. What are the primary drivers behind this performance? Any operational adjustments to improve profitabilities moving forward?
[Foreign Language]
[Interpreted] Jerry, I'm the CEO, Yan Dinggui, I will answer your question. So on the loss of RMB 61.7 million. So ever since the new regulation came out last year and implemented in October, where the lower rate cap was enforced from October to June, the overall market loan volume has reduced by RMB 500 million. And due to the significant lowering of the loan volume, there has been a liquidity crunch from the borrower side.
[Foreign Language]
[Interpreted] Ever since the new regulation and the liquidity crunch on the borrower side since the implementation on October 1, we tried many methods and to be highly efficient to resolve the credit risk brought on by the after effects of the implementation.
[Foreign Language]
[Interpreted] So ever since Chinese New Year, we've had a very difficult adjustment period combined with no cost reduction actions last year. So the slower -- there's a faster decrease in loan volume than the decrease in cost reduction. So that explains most of the difference in the loss.
[Foreign Language]
[Interpreted] So ever since Q2, we've implemented a lot of cost control and reduction. So the cash flow will be better next quarter. And from the volume and revenue perspective, we balanced out our cash flow and revenue and expenses. So we're better equipped to continue to have better cash flow and better liquidity for the upcoming quarter.
[Foreign Language]
[Interpreted] That's my response to your question.
Thank you. We will now take our next question. This is from [ Hua Wang ] from [indiscernible] Asset.
[Foreign Language] Hello management could you provide some color on the risk trends through the first quarter and into April and May? Are we seeing an improvement in the risk metrics?
[Foreign Language]
I would like to welcome Ms. Xu Yifang, our new Chief Risk Officer, to answer this question. She's from [ Tencent ] WeBank, and she used to be a risk in risk management over there. So I'd like to welcome her to answer this question.
[Foreign Language]
[Interpreted] So the deterioration in asset quality caused by the rise in credit risk last year has been improving. Credit risk among the new borrowers peaked in September last year, while the risk associated with new loans facilitated to existing borrowers peaked in November. Since then, both have trended downward and shown steady improvement.
[Foreign Language]
[Interpreted] For new borrowers since Q4 of last year, we proactively really adjusted our borrower acquisition mix and the channel mix and optimized our risk models while really controlling the overall volume of new acquisition -- borrower acquisition. As a result, the new borrower credit performance has continued to improve. So by March and April of this year, the new borrower metrics has already declined to the lowest levels recorded during the entire last year.
[Foreign Language]
[Interpreted] With respect to the newly facilitated loans for existing borrowers, the risk levels continue to decline throughout the first quarter. In April -- by April and May, the risk metrics has really fallen by approximately 25% to 30% from their peak levels, returning to levels seen in May and June of last year. So from a risk management perspective, we've really tightened our borrower selection criteria by focusing on borrowers with stronger financial and repayment capabilities as well as more stable asset and credit profiles.
At the same time, for the higher risk borrowers, such as those with elevated leverage, significant multi-borrowing exposure, greater liquidity stress or weaker asset profiles for those borrowers, we have proactively shortened the loan tenures and reduced credit limits. So by adjusting the -- making these adjustments to the borrowing emission standards, credit limits and loan terms, we have really actively optimized our asset mix. So while this has resulted in a more measured pace of business growth, it has significantly improved the overall quality of our operations.
[Foreign Language]
[Interpreted] Yes, that's my answer to your question.
Thank you. Seeing no more questions, I will return the call 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.
Jiayin Group, Inc. Sponsored ADR Class A — Q4 2025 Earnings Call
1. Management Discussion
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group's Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] 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. 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 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 statements, 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 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 translation. Please go ahead, Mr. Yan.
[Foreign Language]
[Interpreted] Hello, everyone. Thank you for joining our fourth quarter and full year 2025 earnings conference call.
[Foreign Language]
[Interpreted] 2025 was a pivotal year for the industry, marked by deepening regulation and standardized development. Despite the continuously tightening in external environment, we maintained steady progress with -- 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 amidst a complex environment.
[Foreign Language]
[Interpreted] 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.
[Foreign Language]
[Interpreted] We have consistently adhered to the operating philosophy of compliance as the foundation, quality and efficiency as priority. 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.
[Foreign Language]
[Interpreted] Since the fourth quarter, risk indicators have remained under pressure. We have been advancing a phased deep restructuring of our risk control strategy, 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 portfolio, 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.
[Foreign Language]
[Interpreted] On the artificial intelligence front, we made solid progress in 2025 in multimodal, antifraud, AI-powered agents and data intelligence. In 2026, our 4+2 strategy will undergo a key upgrade. We have reorganized our 4 core pillars into 2 main tracks: production and non-production.
The production track focuses on core business value creation, covering 3 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 2 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.
[Foreign Language]
[Interpreted] In terms of new business expansion, we have continued to focus on 3 dimensions: financial product innovation, partnership model innovation and overseas market. On the product side, we actively expanded into auto-backed loans and digital intelligent micro loans, enriching our credit product portfolio. In partnership models, we connected with leading traffic ecosystem 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 effect.
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.
[Foreign Language]
[Interpreted] The essence of financial inclusion lies not only in the depth of service reach, but also in conveying social value. Over the past year, 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 actions.
In terms of volunteering services, since the establishment of the Jiayin 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 organization. This is not only an affirmation of our commitment to long-termism, but also a core competitive advantage in building trust in our brand.
[Foreign Language]
[Interpreted] Regarding shareholder returns, in 2025, we continue to deliver on our commitment to sharing benefit of our development with our shareholders. During the year, we completed cash dividend distributions totaling USD 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 USD 80 million. To date, we have repurchased nearly 4.6 million ADS with total value of approximately USD 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.
[Foreign Language]
[Interpreted] 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.
[Foreign Language]
[Interpreted] 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, amid the liquidity tightening and heightened risk volatility following the new regulatory implementation, we have proactively pivoted to prioritize asset quality over expansion to safeguard our long-term stability.
Loan facilitation volume in Q4 was RMB 24.2 billion, representing a decrease of 12.6% from the same period of 2024. Our net revenue was RMB 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 RMB 328.2 million, representing a decrease of 3.3% from the same period of 2024.
Reversal of credit losses of uncollectible assets, loans receivable and others was RMB 20.1 million compared with RMB 1.2 million allowance for credit losses of uncollectible assets, loans receivable and others in the same period of 2024, primarily due to write-back of allowance for oversea contingent guarantees arising from lower expected loss rates.
Sales and marketing expense was RMB 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 RMB 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 RMB 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 from operations was RMB 120.4 million compared with RMB 402.4 million in the same period of 2024.
Consequently, our net income for the fourth quarter was RMB 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 RMB 0.49 compared with RMB 1.30 in the fourth quarter of 2024. Basic and diluted net income per ADS were both RMB 1.96 compared with RMB 5.20 in the fourth quarter of 2024. Each ADS represents 4 Class A ordinary shares of the company.
We ended this quarter with RMB 61.8 million in cash and cash equivalents compared with RMB 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.
[Operator Instructions] Our first question comes from Yuxuan Chen with Huatai Securities.
2. Question Answer
[Foreign Language] I got 2 questions here. The first one is about the risk. Could management share how your risk metrics have been trending in the fourth quarter of 2025 and 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?
[Foreign Language]
[Interpreted] Mr. Chen, I will answer your first question, and Mr. Fan will 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 new regulation because I believe most of the investors in the sector are already quite familiar with the dynamics.
[Foreign Language]
[Interpreted] So from Jiayin perspective, compared with the previous cycle, the increase in risk last year was more pronounced and more prolonged. And particularly in the first 4 to 6 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.
[Foreign Language]
[Interpreted] So 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.
[Foreign Language]
[Interpreted] So from the repeat borrower 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 debt, weaker asset profiles and limited financing capacity, particularly among the near prime or marginal borrowers.
[Foreign Language]
[Interpreted] So 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%.
[Foreign Language]
[Interpreted] 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 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.
[Foreign Language]
[Interpreted] So for the second question, I'll hand it over to our CFO, Mr. Charlie Fan.
[Foreign Language]
[Interpreted] So Mr. Chen, 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%.
[Foreign Language]
[Interpreted] So we see since the second quarter of 2025, particularly following the formal implementation of the new regulation, industry liquidity has gradually tightened and risk levels have shown a clear upward trend. So against this backdrop, we proactively tightened our standards and restructured 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%.
[Foreign Language]
[Interpreted] 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 diseconomies of scale resulting from rapid volume contraction.
[Foreign Language]
[Interpreted] 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 Jiayin 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.
[Foreign Language]
[Interpreted] So looking ahead, we'll continue to operate with the 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 a quarterly basis. As Mr. Yan mentioned, for the first quarter of 2026, we expect the facilitation volume to be in the range of RMB 18.5 billion to RMB 19.5 billion.
Our next question comes from [ Roxy Liu with Kaiyu Capital ].
[Foreign Language] Given the rapid growth of the company's overseas business in 2025, could the management elaborate on Jiayin's strategy road map and the future outlook in the overseas market?
[Foreign Language]
[Interpreted] Roxy, I'll answer your question 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. Yan 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 this momentum to continue.
[Foreign Language]
[Interpreted] 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 and moving towards profitability.
[Foreign Language]
[Interpreted] 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.
[Foreign Language]
[Interpreted] 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.
[Foreign Language]
[Interpreted] Thank you. That's my answer on the international part.
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.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Jiayin Group, Inc. Sponsored ADR Class A — Q3 2025 Earnings Call
1. Management Discussion
Good day, ladies and gentlemen. Thank you for standing by, and welcome to Jiayin Group's Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call. If you 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 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 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 statements 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 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 translation. Please go ahead, Mr. Yan.
[Foreign Language]
[Interpreted] Good afternoon, everyone. Thank you for joining Jiayin Group's Third Quarter 2025 Earnings Conference Call.
[Foreign Language]
[Interpreted] 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 30.
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 a 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.
[Foreign Language]
[Interpreted] During the reporting period, the company maintained cooperation with 75 financial institutions with another 64 under negotiation. We have been included in the white list by most of our partner financial institutions, providing a solid foundation for stable funding supply. Leveraging our technological strength, capital management capabilities and risk control expertise, we enhanced our funding partners' capital allocation efficiency, accurately aligned with their risk preferences and actively explore new models for business collaboration.
[Foreign Language]
[Interpreted] 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.
[Foreign Language]
[Interpreted] 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%.
[Foreign Language]
[Interpreted] 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 cost by over RMB 1 million but more importantly, building our own technological moat while fundamentally enhancing our AI capability.
[Foreign Language]
[Interpreted] 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, the timeliness of fraud detection was compressed from a week to within 2 hours, forging a new tech-driven line of defense against fraud.
In the customer service process, our AI product matrix covers 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.
[Foreign Language]
[Interpreted] In terms of broadening business coverage, the launch of the [ Tianlu ] 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 to 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 stand-alone applications to an integrated collaborative ecosystem. Looking ahead, we will continue to further advance the 4+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.
[Foreign Language]
[Interpreted] 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.
[Foreign Language]
[Interpreted] 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 billion to RMB 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.
[Foreign Language]
[Interpreted] 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 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 financial guarantee services. Allowance for uncollectible receivables, contract 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 Nigeria entities during 2024 and the growth 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 expenses.
Non-GAAP income from operations 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.
[Operator Instructions] And now we're going to take our first question, and it comes from the line of [ Yiwen Xu ] from Guojin Securities.
2. Question Answer
[Foreign Language] I'm [ Yiwen ] from Sinolink 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.
[Foreign Language]
[Interpreted] 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 on the downward 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 requirement 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.
[Foreign Language]
[Interpreted] 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 asset 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.
[Foreign Language]
[Interpreted] That's my answer for the first question.
[Foreign Language] 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?
[Foreign Language]
Thank you, Xu. 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.
[Foreign Language]
So as Ms. Xu mentioned, the new regulation brought short-term pressure to industry-wide 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.
[Foreign Language]
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.
[Foreign Language]
I want to reiterate Mr. Yan's guidance that he provided earlier. We expect Q4 volume to reach RMB 23 billion to RMB 25 billion, bringing full-year facilitation volume to RMB 127.8 billion to RMB 129.8 billion, approximately 26.8% to 28.8% year-over-year growth. And full-year non-GAAP income from operation guidance is RMB 1.99 billion to RMB 2.06 billion, approximately 52.3% to 57.6% growth year-over-year.
[Operator Instructions] 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.
Financial data from Jiayin Group, Inc. Sponsored ADR Class A
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 605 605 |
38%
38%
100%
|
|
| - Direct Costs | 223 223 |
8%
8%
37%
|
|
| Gross Profit | 382 382 |
16%
16%
63%
|
|
| - Selling and Administrative Expenses | 277 277 |
32%
32%
46%
|
|
| - Research and Development Expense | 65 65 |
121%
121%
11%
|
|
| EBITDA | - - |
-
-
|
|
| - Depreciation and Amortization | - - |
-
-
|
|
| EBIT (Operating Income) EBIT | 35 35 |
88%
88%
6%
|
|
| Net Profit | 35 35 |
86%
86%
6%
|
|
In millions USD.
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Company Profile
Jiayin Group, Inc. engages in online individual finance marketplace in China connecting individual investors and individual borrowers. The company was founded by Dinggui Yan and is headquartered in Shanghai, China.
StocksGuide Premium
| Head office | Cayman Islands |
| CEO | Mr. Yan |
| Employees | 1,155 |
| Founded | 2011 |
| Website | ir.jiayin-fintech.com |
