Jiayin Group Inc. (NASDAQ:JFIN) Q4 2024 Earnings Conference Call March 27, 2025 8:00 AM ET Company Participants Shawn Zhang ??? Investor Relations Yan Dinggui ??? Chief Executive Officer Fan Chunlin ??? Chief Financial Officer Xu Yifang ??? Chief Risk Officer Conference Call Participants Yong Zhao ??? Haitong Securities Hua Rong ??? Jinyu Asset Operator Good day, ladies and gentlemen. Thank you for standing by, and welcome to Jiayin Group Fourth Quarter 2024 Earnings Conference Call. Currently all participa ...

Core Viewpoint - Jiayin Group Inc. reported its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, highlighting a complex market environment but maintaining sustainable business performance through innovation and strategic risk management [1][4]. Fourth Quarter 2024 Operational and Financial Highlights - Loan facilitation volume reached RMB27.7 billion (US$3.8 billion), a 37.8% increase year-over-year [8]. - Average borrowing amount per transaction decreased to RMB7,807 (US$1,070), down 21.5% from the same period in 2023 [8]. - The repeat borrowing rate was 69.9%, a decline from 72.9% in the same period of 2023 [8]. - Net revenue was RMB1,404.5 million (US$192.4 million), representing a decrease of 12.2% from the same period in 2023 [10]. - Income from operations was RMB392.6 million (US$53.8 million), compared to RMB232.0 million in the same period of 2023 [15]. - Net income was RMB275.5 million (US$37.7 million), down 25.1% from RMB367.6 million in the same period of 2023 [16]. Full Year 2024 Operational and Financial Highlights - Total loan facilitation volume for the year was RMB100.8 billion (US$13.8 billion), an increase of 14.4% from RMB88.1 billion in 2023 [8]. - Net revenue for the year was RMB5,801.0 million (US$794.7 million), up 6.1% from RMB5,466.9 million in 2023 [18]. - Revenue from loan facilitation services increased by 15.0% to RMB4,011.8 million (US$549.6 million) [19]. - Net income for the year was RMB1,056.5 million (US$144.7 million), a decrease of 18.6% from RMB1,297.6 million in 2023 [24]. Strategic Initiatives and Future Outlook - The company plans to accelerate global expansion, diversify funding sources, and enhance AI adoption [6]. - A cash dividend of US$0.5 per American depositary share was distributed in 2024, totaling approximately US$26.6 million, representing 15.0% of net income after tax for fiscal year 2023 [5]. - The company expects loan facilitation volume for 2025 to be between RMB137.0 billion and RMB142.0 billion, with a first-quarter estimate of around RMB35 billion [28]. Recent Developments - The board approved an adjustment to the dividend policy, increasing the annual dividend to around 30% of net income after tax starting from 2025 [31]. - The company completed the purchase of commercial property in Shanghai for approximately RMB1.35 billion, which will serve as its new headquarters [35]. Financial Position - As of December 31, 2024, cash and cash equivalents were RMB540.5 million (US$74.0 million), down from RMB741.2 million as of September 30, 2024 [17]. - Total assets were RMB5,409.9 million (US$741.2 million) as of December 31, 2024 [46].

Core Viewpoint - Jiayin Group Inc. is set to release its unaudited financial results for the fourth quarter and full year 2024 on March 27, 2025, before the U.S. market opens [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for March 27, 2025, at 8:00 AM U.S. Eastern Time [1][2] - A live and archived webcast of the conference call will be available on the company's investor relations website [3] Group 2: Company Overview - Jiayin Group Inc. is a leading fintech platform in China, established in 2011, focusing on connecting underserved individual borrowers with financial institutions [4] - The company utilizes a comprehensive risk management system and a proprietary risk assessment model that employs advanced big data analytics and algorithms to evaluate borrower risk profiles [4]

Core Viewpoint - Jiayin Group Inc. will release its unaudited financial results for Q4 and full year 2024 on March 27, 2025, before the U.S. market opens [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for March 27, 2025, at 8:00 AM U.S. Eastern Time [1][2] - A live and archived webcast of the conference call will be available on the company's investor relations website [3] Group 2: Company Overview - Jiayin Group Inc. is a leading fintech platform in China, established in 2011, focusing on connecting underserved individual borrowers with financial institutions [4] - The company utilizes a comprehensive risk management system and a proprietary risk assessment model that employs advanced big data analytics and algorithms to evaluate borrower risk profiles [4]

Core Viewpoint - Jiayin Group Inc. has entered into a definitive agreement to purchase commercial property in Shanghai for approximately RMB1.35 billion, which will serve as the company's new headquarters to support its business growth [4]. Company Overview - Jiayin Group Inc. is a leading fintech platform in China, established in 2011, focused on connecting underserved individual borrowers with financial institutions [3]. - The company operates a secure platform with a comprehensive risk management system and a proprietary risk assessment model utilizing advanced big data analytics [3]. Transaction Details - The commercial property being purchased covers approximately 43,500 square meters and the total cash consideration for the acquisition is around RMB1.35 billion [4]. - The completion of the purchase is subject to customary closing conditions [4].

Financial Data and Key Metrics Changes - In Q3 2024, the loan facilitation volume reached RMB26.7 billion, a year-over-year increase of 10.3% [17] - Net revenue was RMB1,444.9 million, representing a decrease of 1.5% from the same period in 2023 [17] - Net income for the third quarter was RMB269.6 million, a decrease of 16.8% from RMB323.9 million in the same period of 2023 [21] - Basic and diluted net income per share were both RMB1.27 compared to RMB1.51 in Q3 2023 [21] Business Line Data and Key Metrics Changes - Revenue from loan facilitation services reached RMB1.1 billion, representing a year-over-year growth of 18.1% [6] - The proportion of loan facilitation services revenue in total revenue increased from 56.3% in Q1 to around 76% in Q3 [29] - Guarantee service-related revenue decreased to RMB252 million, down from RMB398 million in the same period last year [28] Market Data and Key Metrics Changes - The delinquency rate for 61 to 90 days improved to 0.55%, showing a downward trend for two consecutive quarters [11] - In Indonesia, loan disbursement and new registered users for local business partners increased compared to Q2 [12] - The average borrowing amount per borrowing decreased by 30.5% year-over-year, indicating a preference for smaller loan amounts among users [38] Company Strategy and Development Direction - The company is focusing on technological innovation as a driving force for growth, enhancing its central data platform and AI capabilities [8] - There is a strategic shift towards high-quality growth, reducing reliance on lower-margin guarantee services [28] - The company plans to declare and distribute cash dividends once per fiscal year starting in 2025, with a total amount no less than 15% of the previous fiscal year's net profit after tax [14] Management Comments on Operating Environment and Future Outlook - The management expressed optimism about future development, anticipating loan facilitation volume in Q4 to be no less than RMB25 billion [14] - The company is confident in sustaining strong growth trends in the coming quarters, supported by improved borrower retention and conversion rates [34] - The management acknowledged the impact of macroeconomic shifts but emphasized that they have met performance benchmarks [17] Other Important Information - The company established partnerships with 70 diverse financial institutions, enhancing its operational stability [9] - R&D expenses increased by 36% year-over-year, reflecting the company's commitment to technological advancements [20] Q&A Session Summary Question: Reasons for net revenue and profit decline - Management explained that the decrease in net revenue and profit was due to a strategic shift towards high-quality growth and increased borrower acquisition costs [30][31] Question: Future growth rate expectations - Management indicated confidence in sustaining growth, with expectations for continued strong performance in the coming quarters [34] Question: Increase in accounts receivable - The increase in accounts receivable was attributed to growth in facilitation volume and revenue, with a focus on improving cash flow management [40][41] Question: Decrease in average borrowing amount - The decrease was linked to business strategy optimization and a shift towards acquiring new borrowers with lower initial credit levels [42][46]

Core Viewpoint - Jiayin Group Inc. reported its third quarter financial results for 2024, highlighting a significant increase in loan facilitation volume despite declines in net revenue and net income compared to the same period in 2023 [1][4]. Financial Performance - Loan facilitation volume reached RMB26.7 billion (US$3.8 billion), a 10.3% increase from Q3 2023 [2]. - Net revenue was RMB1,444.9 million (US$205.9 million), a decrease of 1.5% from the same period in 2023 [3][5]. - Income from operations was RMB311.9 million (US$44.4 million), down 18.3% year-over-year [3][10]. - Net income decreased to RMB269.6 million (US$38.4 million), a decline of 16.8% from RMB323.9 million in Q3 2023 [3][10]. Revenue Breakdown - Revenue from loan facilitation services increased by 18.1% to RMB1,105.7 million (US$157.6 million), driven by service fee optimization and increased loan facilitation volume [5]. - Revenue from releasing guarantee liabilities was RMB251.7 million (US$35.9 million), down from RMB397.9 million in Q3 2023, primarily due to decreased average outstanding loan balances [6]. - Other revenue decreased to RMB87.5 million (US$12.4 million) from RMB131.9 million in the same period last year [6]. Expenses - Facilitation and servicing expenses were RMB419.1 million (US$59.7 million), down from RMB544.3 million in Q3 2023 [7]. - Sales and marketing expenses increased by 34.9% to RMB550.3 million (US$78.4 million) due to higher borrower acquisition costs [8]. - Research and development expenses rose by 36.0% to RMB95.9 million (US$13.7 million) [9]. Operational Metrics - The average borrowing amount per transaction was RMB7,629 (US$1,087), a decrease of 30.5% from the same period in 2023 [2]. - The repeat borrowing rate was 67.8%, down from 71.5% in Q3 2023 [3]. Business Outlook - The company expects loan facilitation volume for Q4 2024 to reach no less than RMB25 billion, reflecting current market conditions [15]. Dividend Policy - The board approved an amended dividend policy allowing for cash dividends to be declared once each fiscal year, starting from 2025, at no less than 15% of the previous fiscal year's net income after tax [17]. Share Repurchase Plan - The board approved an extension of the share repurchase plan, allowing for the repurchase of ordinary shares with an aggregate value not exceeding US$30 million through June 12, 2025 [19].

Core Viewpoint - Jiayin Group Inc. will release its unaudited financial results for Q3 2024 on November 20, 2024, before the U.S. market opens, followed by a conference call to discuss the results [1][2]. Group 1: Financial Results Announcement - The unaudited financial results for Q3 2024 will be released before the U.S. market opens on November 20, 2024 [1]. - A conference call to discuss the financial results is scheduled for November 20, 2024, at 8:00 AM U.S. Eastern Time [1][2]. Group 2: Conference Call Details - Participants are required to register in advance to join the conference call, with access information provided upon registration [2][3]. - A live and archived webcast of the conference call will be available on the company's investor relations website [3]. Group 3: Company Overview - Jiayin Group Inc. is a leading fintech platform in China, established in 2011, focusing on connecting underserved individual borrowers with financial institutions [4]. - The company operates a secure platform with a comprehensive risk management system and a proprietary risk assessment model utilizing advanced big data analytics [4].

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