Core Insights - Jiayin Group (NASDAQ: JFIN) reported a significant EPS increase of nearly 100% quarter-over-quarter in its Q1 FY2025 results, which was released on June 4 [1] Financial Performance - The company achieved a remarkable EPS growth, indicating strong financial performance in the recent quarter [1]

Investment Rating - The report maintains a positive outlook on the Hong Kong stock market, indicating a strong risk appetite and suggesting investment opportunities in various sectors, particularly in virtual assets and Web 3.0 [3][10]. Core Insights - The Hong Kong stock market is experiencing a significant increase in risk appetite, with improved asset quality and trading volume, highlighting the value of asset trading platforms [3][10]. - There is a notable uptrend in multiple sectors such as AI, new consumption, and innovative pharmaceuticals, with a particular focus on small and mid-cap stocks in media and consumer sectors [3][10]. - The report emphasizes the ongoing development of virtual assets and the Web 3.0 market, driven by stablecoin policies and recent IPOs, suggesting that more regulatory frameworks will emerge [3][10]. - The trend of Chinese companies returning to Hong Kong for IPOs is gaining momentum, with increased trading of companies like NetEase and Ctrip in the Hong Kong market [3][10]. - The valuation of overseas Chinese assets remains influenced by US-China trade relations and the broader economic environment, necessitating close monitoring of trade policies and domestic economic changes [3][10]. Summary by Sections Education - The K12 education sector maintains high growth, with leading institutions reporting over 20% revenue growth during the winter training period, and an increase in non-academic course retention rates [5][11]. Luxury Goods - The luxury goods market shows slight pressure due to macroeconomic factors, but brands that align with demand trends are performing well, with cautious price increases observed [5][20]. Coffee and Tea Drinks & OTA - Coffee and tea remain key categories for delivery platforms, with strong performance from major brands like Luckin Coffee, which continues to expand its store presence [5][25]. E-commerce - The e-commerce sector faces slight pressure, but major platforms like Alibaba and JD.com are expected to benefit from ongoing promotional activities [5][26]. Streaming Platforms - Music streaming platforms are viewed as high-quality internet assets, with sustained profitability driven by scale effects [5][34]. Virtual Assets & Internet Brokers - The stablecoin leader Circle's IPO saw a 168% increase on its first day, marking a significant event in the virtual asset space [5][38]. Real Estate Transactions - Recent data shows a slight decline in second-hand housing transactions in major cities, suggesting a need for caution in the real estate market [5][50]. Automotive Services - The automotive aftermarket is under pressure, with traditional fuel vehicle service visits declining, while new energy vehicle service visits are increasing [5][45].

Financial Data and Key Metrics Changes - Loan facilitation volume reached RMB 35.6 billion, up approximately 58.2% year over year [9][28] - Non-GAAP operating profit hit RMB 606.6 million, marking a year-over-year increase of 91.6% [9][30] - Net profit surged to RMB 540 million, reflecting a year-over-year rise of 97.5% [9][30] - Net profit margin reached 30.4%, significantly higher than 18.5% in Q1 2024 [45] Business Line Data and Key Metrics Changes - New borrower acquisition reached 1,056,000, representing a year-over-year growth of 126.6% [9] - New borrower contribution to total loan facilitation volume was 28.1% [9] - Sales and marketing expenses increased by 87.5% year over year, primarily due to increased borrower acquisition expenses [29] Market Data and Key Metrics Changes - Total retail sales of consumer goods in China rose by 6.4% year over year, with a growth rate of 5.9% in March [8] - The company maintained partnerships with 69 financial institutions, with another 55 in discussion [11] Company Strategy and Development Direction - The company is focusing on independent innovation and digital transformation, promoting a "four plus two" AI development strategy [12] - A new Fuxi model management platform was launched, covering 90% of business lines and improving operational efficiency [12][13] - The company is adapting to new regulatory frameworks to enhance service quality and promote industry development [50] Management Comments on Operating Environment and Future Outlook - The management expressed cautious optimism regarding future growth despite global uncertainties affecting China's economic recovery [26] - For Q2 2025, the company set guidance for loan facilitation volume at RMB 37 billion to RMB 39 billion and non-GAAP operating profit at RMB 616 million to RMB 730 million [26] Other Important Information - The company updated its dividend policy, raising the payout ratio to approximately 30% of the previous fiscal year's net profit after tax [17] - The share repurchase program has an upper limit of USD 30 million, extended to June 12, 2026 [17] Q&A Session Summary Question: Customer acquisition costs and credit risk management - The company has observed a rising trend in customer acquisition costs due to market dynamics and strategic decisions, and plans to enhance risk modeling capabilities to improve asset quality [33][34][37] Question: ADR delisting risk - The company believes the risk of delisting remains relatively low and is preparing for alternative scenarios, including potential dual primary listing in Hong Kong [38][39][40] Question: Drivers behind net profit increase and outlook - The significant increase in net profit was driven by higher loan facilitation volume, optimization of revenue structures, and improved operational efficiency through AI investments [45][46][48] - The company remains committed to high-quality, sustainable growth and expects significant profitability improvements for the full year of 2025 [49] Question: Impact of new financial regulations - The new regulations are seen as a recognition of the loan facilitation model, and the company is actively adapting to meet the evolving requirements of its institutional partners [50][51]

Financial Data and Key Metrics Changes - Loan facilitation volume reached RMB 35.6 billion, up approximately 58.2% year over year [28] - Non-GAAP operating profit hit RMB 606.6 million, marking a year-over-year increase of 91.6% [28] - Net profit surged to RMB 540 million, reflecting a year-over-year rise of 97.5% [30] - Net profit margin reached 30.4%, significantly higher than 18.5% in Q1 2024 [45] Business Line Data and Key Metrics Changes - New borrower acquisition increased by 126.6% year over year, with 1,056,000 new borrowers added [9] - Loan facilitation service revenue accounted for 83% of total revenues in Q1 2025, up from 56% in Q1 2024 [47] - Guarantee-related revenue dropped to 9.6% in Q1 2025, down from 35.6% in the same period last year [47] Market Data and Key Metrics Changes - Total retail sales of consumer goods in China rose by 6.4% year over year, indicating a pickup in consumer spending [8] - In Indonesia, new registered users surged by 196% year over year, and loan volume grew by 190% year over year [13] Company Strategy and Development Direction - The company is focusing on independent innovation and digital transformation, promoting a four plus two AI development strategy [11] - Strategic partnerships with 69 financial institutions have been established, with another 55 in discussion to ensure robust funding support [10] - The company aims to adapt to new regulatory frameworks and enhance service quality to support financial inclusion [51] Management Comments on Operating Environment and Future Outlook - Despite global uncertainties, the company remains cautiously optimistic about future growth [26] - For Q2 2025, the company sets guidance for loan facilitation volume at RMB 37 billion to RMB 39 billion and non-GAAP operating profit at RMB 616 million to RMB 730 million [26] Other Important Information - The company updated its dividend policy, raising the payout ratio to approximately 30% of the previous fiscal year's net profit after tax [16] - The share repurchase program has an upper limit of USD 30 million, extended to June 12, 2026 [16] Q&A Session Summary Question: Customer acquisition costs and credit risk management - The company has observed a rising trend in customer acquisition costs due to market dynamics and strategic decisions, and plans to enhance risk modeling capabilities to improve asset quality [33][34][36] Question: ADR delisting risk - The company believes the risk of delisting remains relatively low and is preparing for alternative scenarios, including potential dual primary listing in Hong Kong [38][39][40] Question: Drivers behind net profit increase and future profitability outlook - Key drivers for the 97.5% increase in net profit include significant growth in loan facilitation volume, optimization of revenue structures, and improved operational efficiency through AI investments [45][46][48] Question: Impact of new loan facilitation guidelines - The new regulations are seen as a recognition of the loan facilitation model, encouraging better service quality and promoting orderly industry development [51][52]

Market Overview - US stock index futures are all up, with Dow futures rising by 0.15%, S&P 500 futures by 0.17%, and Nasdaq futures by 0.14% [1] - European indices also show positive movement, with Germany's DAX up 0.59%, UK's FTSE 100 up 0.12%, France's CAC40 up 0.55%, and the Euro Stoxx 50 up 0.46% [2][3] - WTI crude oil increased by 0.06% to $63.45 per barrel, while Brent crude rose by 0.08% to $65.68 per barrel [3][4] Economic Context - The US economy demonstrates resilience against tariff impacts, with expectations of minimal volatility in the S&P 500 index following the upcoming non-farm payroll report [4] - The S&P 500 index has surged by 6.3% over the past month, marking its best May performance since 1990, and is close to its historical high [5] - Despite concerns over tariffs and rising federal deficits, the stock market remains strong, with a year-to-date increase of 1.74% and a rebound of 19.8% from the April low [5] Corporate Developments - Hewlett Packard Enterprise (HPE) reported Q2 revenue of $7.63 billion, exceeding analyst expectations, and adjusted its annual earnings guidance upward to $1.78-$1.90 per share [10] - Jia Yin Technology (JFIN) achieved Q1 revenue of approximately $1.78 billion, a year-on-year increase of 20.4%, and announced a dividend policy update [11] - Dollar Tree (DLTR) reported Q1 revenue growth of 5.4% to $4.6 billion but warned of a 50% drop in adjusted EPS for Q2 due to tariff pressures [12] - CrowdStrike (CRWD) faced a significant stock drop after Q2 revenue guidance fell short of market expectations, despite a strong Q1 performance [13] - Nvidia (NVDA) reclaimed the title of the world's most valuable company with a market cap of $3.446 trillion, driven by the AI boom [14] - Tesla (TSLA) reported a 15% year-on-year decline in May wholesale sales in China, marking the eighth consecutive month of sales drop [14] Regulatory and Policy Changes - President Trump signed an order increasing tariffs on imported steel and aluminum from 25% to 50%, effective June 4 [6] - The UK received a five-week window to negotiate a steel agreement with the US, avoiding immediate tariff increases [7] - The US Treasury is considering expanding bond buybacks as a form of quantitative easing in response to rising bond yields [7]

Core Insights - JiaYin Technology (JFIN.US) reported strong performance in Q1 2025, achieving a loan facilitation transaction volume of approximately 35.6 billion yuan, a year-on-year increase of about 58.2% [1] - The company generated revenue of approximately 1.776 billion yuan and a net profit of around 540 million yuan in the same quarter [1] Business Performance - The domestic economic recovery has positively impacted JiaYin Technology, leading to a successful start in Q1 [1] - The company has implemented a "quality score" mechanism to enhance risk assessment for new customers, resulting in a 90-day overdue rate of 1.13%, indicating a stable risk control system [2] Technological Advancements - JiaYin Technology launched the "Fuxi" model management platform, which now covers 90% of its business lines, significantly improving model deployment efficiency by nearly three times [2] - The company upgraded its "Tianlu" R&D efficiency operation platform to standardize and automate the entire product development lifecycle [2] Shareholder Returns - In March, the company updated its dividend policy, increasing the payout ratio from at least 15% to around 30% of the previous fiscal year's net profit [2] - The board approved a dividend plan of $0.8 per ADS, representing a year-on-year increase of approximately 60% [2] - The existing stock repurchase plan has a cap of $30 million, with an extension of its validity until June 12, 2026 [2]

[Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202025%20Operational%20and%20Financial%20Highlights) The company reported strong growth in Q1 2025, with a 58.2% YoY increase in loan facilitation volume and a 20.4% rise in net revenue, demonstrating significant operational and financial momentum Q1 2025 Key Metrics vs. Q1 2024 (YoY) | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | Loan Facilitation Volume | RMB 35.6 billion | ▲ 58.2% | | Net Revenue | RMB 1,775.6 million | ▲ 20.4% | | Income from Operations | RMB 606.6 million | ▲ 91.7% | | Net Income | RMB 539.5 million | ▲ 97.5% | | Average Borrowing Amount | RMB 7,987 | ▼ 24.4% | - The contribution from repeat borrowers was **71.9%**, compared to 78.3% in the same period of 2024[7](index=7&type=chunk) - The 90 day+ delinquency ratio was **1.13%** as of March 31, 2025[7](index=7&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) The CEO highlighted the company's sustained growth momentum, attributing the strong results to the disciplined execution of strategic priorities, including enhancing the loan facilitation business and leveraging AI-driven tools - The company sustained strong growth momentum, with Q1 loan facilitation volume reaching **RMB 35.6 billion** (a **58.2% YoY increase**) and net income totaling **RMB 539.5 million**[8](index=8&type=chunk) - Strategic priorities include accelerating high-quality growth by focusing on the loan facilitation business, expanding institutional partnerships, and improving credit performance[9](index=9&type=chunk) - The company is advancing the application of AI-driven tools across its core business to expand technological capabilities and drive essential value[9](index=9&type=chunk) [Detailed Financial Results (Q1 2025)](index=3&type=section&id=First%20Quarter%202025%20Financial%20Results) Net revenue grew 20.4% YoY to RMB 1,775.6 million, primarily driven by a 77.9% increase in loan facilitation services revenue, leading to a 91.7% surge in income from operations and a 97.5% increase in net income [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Total net revenue increased by 20.4% YoY to RMB 1,775.6 million, fueled by a 77.9% surge in revenue from loan facilitation services, partially offset by a significant decrease in revenue from the release of guarantee liabilities Revenue Breakdown (in millions RMB) | Revenue Source | Q1 2024 | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | :--- | | Loan facilitation services | 831.0 (approx) | 1,478.6 | ▲ 77.9% | | Releasing of guarantee liabilities | 524.5 | 170.6 | ▼ 67.5% | | Other revenue | 119.8 | 126.4 | ▲ 5.5% | | **Total Net Revenue** | **1,475.3** | **1,775.6** | **▲ 20.4%** | [Operating Costs and Expenses](index=3&type=section&id=Operating%20Costs%20and%20Expenses) Total operating costs remained relatively flat, but the composition changed significantly, with sales and marketing expenses rising 87.5% due to increased borrower acquisition efforts, while facilitation and servicing expenses decreased by 49.6% Operating Expenses Breakdown (in millions RMB) | Expense Category | Q1 2024 | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | :--- | | Facilitation and servicing | 667.0 | 336.0 | ▼ 49.6% | | Sales and marketing | 359.8 | 674.5 | ▲ 87.5% | | General and administrative | 46.2 | 52.8 | ▲ 14.2% | | Research and development | 83.3 | 88.1 | ▲ 5.8% | [Profitability and Earnings Per Share](index=4&type=section&id=Profitability%20and%20Earnings%20Per%20Share) The company achieved substantial profitability growth, with net income increasing 97.5% YoY to RMB 539.5 million, leading to basic and diluted net income per ADS more than doubling to RMB 10.12 Profitability Metrics | Metric | Q1 2024 | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | :--- | | Income from Operations (RMB M) | 316.4 | 606.6 | ▲ 91.7% | | Net Income (RMB M) | 273.1 | 539.5 | ▲ 97.5% | | Basic & Diluted Net Income per Share (RMB) | 1.29 | 2.53 | ▲ 96.1% | | Basic & Diluted Net Income per ADS (RMB) | 5.16 | 10.12 | ▲ 96.1% | [Financial Position](index=4&type=section&id=Financial%20Position) As of March 31, 2025, the company's cash and cash equivalents stood at RMB 190.3 million, a decrease from RMB 540.5 million at the end of 2024, while total assets grew to RMB 6.4 billion from RMB 5.4 billion Key Balance Sheet Items (in millions RMB) | Balance Sheet Item | Dec 31, 2024 | Mar 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | 540.5 | 190.3 | | Total Assets | 5,409.9 | 6,394.1 | | Total Liabilities | 2,282.3 | 2,727.8 | | Total Shareholders' Equity | 3,127.6 | 3,666.3 | [Business Outlook & Guidance](index=5&type=section&id=Business%20Outlook) The company provided a positive outlook, forecasting full-year 2025 loan facilitation volume between RMB 137 billion and RMB 142 billion, and Q2 2025 loan facilitation volume of RMB 37-39 billion - Full year 2025 loan facilitation volume is expected to be in the range of **RMB 137 billion to RMB 142 billion**[19](index=19&type=chunk) - For the second quarter of 2025, the company expects loan facilitation volume to be between **RMB 37 billion and RMB 39 billion**[19](index=19&type=chunk) - Non-GAAP income from operation for Q2 2025 is projected to be in the range of **RMB 0.66 billion to RMB 0.73 billion**[19](index=19&type=chunk) [Recent Developments](index=5&type=section&id=Recent%20Development) The company announced a new dividend policy and an extension of its share repurchase plan, signaling a commitment to returning value to shareholders [Dividend Policy](index=5&type=section&id=Dividend%20Policy) On May 20, 2025, the Board of Directors approved the declaration and payment of a cash dividend of US$0.20 per ordinary share, equating to US$0.80 per American depositary share (ADS), for the fiscal year 2025 - The Board approved a cash dividend of **US$0.20 per ordinary share**, or **US$0.80 per ADS**, for the fiscal year 2025[20](index=20&type=chunk) [Share Repurchase Plan Update](index=5&type=section&id=Share%20Repurchase%20Plan%20Update) The Board extended the existing share repurchase plan for another 12 months, from June 13, 2025, to June 12, 2026, with a remaining authorized amount for repurchase of US$13.2 million - The share repurchase plan has been extended for another **12-month period**, ending on June 12, 2026[21](index=21&type=chunk) - As of June 4, 2025, the remaining balance under the share repurchase plan was **US$13.2 million**[21](index=21&type=chunk) [Appendix: Financial Statements](index=9&type=section&id=Appendix%3A%20Financial%20Statements) This section contains the unaudited condensed consolidated balance sheets as of March 31, 2025, the unaudited condensed consolidated statements of comprehensive income for the first quarter of 2025, and the reconciliation of GAAP to non-GAAP results [Unaudited Condensed Consolidated Balance Sheets](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Provides a detailed snapshot of the company's assets, liabilities, and equity as of March 31, 2025, compared to December 31, 2024 [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=10&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Details the company's revenues, expenses, and profits for the three months ended March 31, 2025, compared to the same period in 2024 [Unaudited Reconciliations of GAAP and Non-GAAP Results](index=11&type=section&id=UNAUDITED%20RECONCILIATIONS%20OF%20GAAP%20AND%20NON-GAAP%20RESULTS) Presents the reconciliation of GAAP income from operations to non-GAAP income from operations, which were identical at RMB 606.6 million for Q1 2025 due to no share-based compensation expenses GAAP vs Non-GAAP Income from Operation (in thousands RMB) | Metric | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Income from operation (GAAP) | 316,446 | 606,647 | | Add: share-based compensation | 181 | - | | Non-GAAP income from operation | 316,627 | 606,647 |

Core Viewpoint - Jiayin Group Inc. reported strong financial results for the first quarter of 2025, with significant growth in loan facilitation volume and net revenue, reflecting the company's effective strategies in a dynamic macroeconomic environment [1][6]. Financial Performance - Total loan facilitation volume increased by 58.2% year-over-year to RMB35.6 billion (approximately US$4.9 billion) [1][9]. - Net revenue grew by 20.4% to RMB1,775.6 million (approximately US$244.7 million) compared to the same period in 2024 [1][8]. - Net income reached RMB539.5 million (approximately US$74.3 million), marking a 97.5% increase from RMB273.1 million in the first quarter of 2024 [1][15]. Operational Highlights - The average borrowing amount per transaction decreased by 24.4% to RMB7,987 (approximately US$1,101) [9]. - The contribution of repeat borrowers to total loan facilitation volume was 71.9%, down from 78.3% in the same period of 2024 [9]. - The 90-day+ delinquency ratio stood at 1.13% as of March 31, 2025 [9]. Revenue Breakdown - Revenue from loan facilitation services was RMB1,478.6 million (approximately US$203.8 million), an increase of 77.9% year-over-year [10]. - Revenue from releasing guarantee liabilities decreased to RMB170.6 million (approximately US$23.5 million) from RMB524.5 million in the same period of 2024 [11]. - Other revenue increased slightly to RMB126.4 million (approximately US$17.4 million) compared to RMB119.8 million in the same period of 2024 [11]. Expense Analysis - Facilitation and servicing expenses decreased by 49.6% to RMB336.0 million (approximately US$46.3 million) [12]. - Sales and marketing expenses rose by 87.5% to RMB674.5 million (approximately US$92.9 million) due to increased borrower acquisition costs [13]. - General and administrative expenses increased by 14.2% to RMB52.8 million (approximately US$7.3 million) [13]. Business Outlook - The company expects its loan facilitation volume for the full year of 2025 to be between RMB137 billion and RMB142 billion, with a second-quarter forecast of RMB37 billion to RMB39 billion [18]. - Non-GAAP income from operations for the second quarter of 2025 is anticipated to be between RMB0.66 billion and RMB0.73 billion [18]. Recent Developments - The Board of Directors approved a cash dividend of US$0.20 per ordinary share for the fiscal year 2025 [19]. - A share repurchase plan was extended for another 12 months, allowing the company to repurchase its shares with an aggregate value not exceeding the remaining balance under the plan [20].

Core Viewpoint - JFIN's stock price increased by 4.04% on May 28, 2023, reaching $13.275 per share, with a total market capitalization of $708 million [1] Financial Performance - As of December 31, 2024, JFIN reported total revenue of 5.801 billion RMB, representing a year-on-year growth of 6.11% [1] - The net profit attributable to the parent company was 1.056 billion RMB, showing a year-on-year decrease of 18.58% [1] Upcoming Events - JFIN is scheduled to disclose its Q1 2025 financial report on June 5, 2023, with the actual date subject to company announcement [2] Company Overview - JFIN is a leading technology service group in China, founded by Mr. Yan Dinggui on June 18, 2011, and headquartered in Shanghai [2] - The company went public on NASDAQ on May 10, 2019, under the stock code JFIN [2] - JFIN focuses on connecting consumers with financial institutions through big data, cloud computing, and artificial intelligence [2] Technological Innovations - JFIN has developed several technology platforms, including: - "Tianyin" for intelligent fund management - "Mingjian" for intelligent risk control - "Dayu" for data asset management - "Chang'e" for intelligent voice calling services [3] - These innovations have led to digital process optimization, automated supervision, and scientific decision-making, enhancing the company's digital capabilities [3] Global Expansion - JFIN's business has expanded to regions including Southeast Asia, Africa, and Latin America, with plans for further international growth [2]

Core Viewpoint - Jiayin Group Inc. will release its unaudited financial results for the first quarter of 2025 on June 4, 2025, before the U.S. market opens, followed by a conference call to discuss these results [1][2]. Group 1 - Jiayin Group Inc. is a leading fintech platform in China, established in 2011, focused 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]. - The conference call to discuss the financial results will take place at 8:00 AM U.S. Eastern Time on June 4, 2025, with a live and archived webcast available on the company's investor relations website [2][3].