Jiayin Group(JFIN) - 2025 Q1 - Quarterly Report

Financial & Operational Highlights 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] - The 90 day+ delinquency ratio was 1.13% as of March 31, 2025[7] Management Commentary 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] - Strategic priorities include accelerating high-quality growth by focusing on the loan facilitation business, expanding institutional partnerships, and improving credit performance[9] - The company is advancing the application of AI-driven tools across its core business to expand technological capabilities and drive essential value[9] Detailed Financial Results (Q1 2025) 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 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 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 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 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 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] - For the second quarter of 2025, the company expects loan facilitation volume to be between RMB 37 billion and RMB 39 billion[19] - 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] Recent Developments 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 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] Share Repurchase Plan Update 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] - As of June 4, 2025, the remaining balance under the share repurchase plan was US$13.2 million[21] Appendix: Financial Statements 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 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 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 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 |