NASDAQ:JFIN Jiayin Group Q4 2024 Earnings Report $11.58 +0.34 (+3.02%) As of 03:57 PM Eastern Earnings History Jiayin Group EPS ResultsActual EPS$0.72Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AJiayin Group Revenue ResultsActual Revenue$192.42 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AJiayin Group Announcement DetailsQuarterQ4 2024Date3/27/2025TimeBefore Market OpensConference Call DateThursday, March 27, 2025Conference Call Time8:00AM ETUpcoming EarningsJiayin Group's Q1 2025 earnings is scheduled for Thursday, June 5, 2025, with a conference call scheduled at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Jiayin Group Q4 2024 Earnings Call TranscriptProvided by QuartrMarch 27, 2025 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00day, ladies and gentlemen. Thank you for standing by and welcome to Jiayin Group Fourth Quarter twenty twenty four Earnings Conference Call. Currently, all participants are in listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Operator00:00:17As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. I'll now turn the call over to Mr. Sean Zhang from Investor Relations of Jiayin Group. Please go ahead. Speaker 100:00:32Thank 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 and full year of 2024. We released our earnings results earlier today. The press release is available on the company's website as well as from newswire services. Speaker 100:00:56On the call with me today are Mr. Yanding Gui, Chief Executive Officer Mr. Fan Chunming, Chief Financial Officer and Mr. Xu Yifeng, 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. Speaker 100:01:16S. 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. Speaker 100:01:39The company does not assume any obligation to update any forward looking statements, except as required under applicable law. Also, 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 Dingwei. Mr. Speaker 100:01:59Yan will deliver his remarks in Chinese and I will follow-up with corresponding English translations. Please go ahead, Mr. Yan. In 2024, China's macroeconomic demonstrated steady growth with consumer credit demand rising steadily, supported by consumer stimulus policies. Overall for the year, consumer credit grew by RMB1.24 trillion, reflecting a 6.2% year over year increase. Speaker 100:03:28The year also marked a significant milestone for Jiayin as it strengthened its strategic positioning and achieved high quality development. The company pursued a strategy of steady progress driven by technology expanding incrementally while carefully managing risks. In Q4 twenty twenty four, the company facilitated loan transactions totaling RMB27.7 billion, a 37.8% year over year increase with loan facilitation service revenue reaching RMB1.1 billion, up 46.3% year over year. The company's business growth grew steadily each quarter consistently setting new records. The total loan facilitation volume for the year exceeded RMB100 billion, marking an important business milestone. Speaker 100:05:28Thanks to diverse borrower acquisition channels and flexible marketing strategies, the company has significantly improved its borrower acquisition efficiency. In 2024, the company added 2,774,000 new borrowers representing a year over year growth of 45.1%. Regarding borrower retention, we implemented a refined stratification mechanism applying differentiated credit growth strategies. The company's annual retention rate increased by approximately 7%. We paid particular attention to potential churn users and effectively improved their retention rate nearly 75%. Speaker 100:06:19Additionally, we continue to expand a high quality and sustainable network of institutional partnerships. During 2024, we maintained in-depth cooperative relationships with a total of 73 financial institutions. We also actively explored innovative and diverse business models in areas such as auto backed loans and loans for small and macro businesses. We remain committed to achieving win win collaborations with financial institutions fostering the diversification of consumer credit products and scenarios. In response to the rapid growth of new borrower groups and strong credit demand, the company has consistently adhered to a prudent risk control strategy. Speaker 100:08:10While adjusting credit limits as needed, we closely monitor changes in risk data and implement more flexible transaction strategies By integrating new external data sources and combining them with deep analysis of internal borrower behavior, we continuously iterate and enhance our risk control models. In Q4, the delinquency rate for loans overdue from sixty one to ninety days dropped to 0.53%, representing a significant improvement compared with the same period a year earlier. Furthermore, through our AI powered self developed risk control platform, we have established a comprehensive digital anti fraud defense system. Through the year, we identified and intercepted more than 540,000 high risk, habitual fraud applications and blocked 468,000 malicious attacks from illicit activities. These results demonstrate that we are collectively building a full process digital and collaborative risk control network for Jiaing Technology. Speaker 100:10:45With the internal development of technology and the effective progress of external large models, we continue to expand the application and empowerment of AI in business areas such as customer services, risk control and marketing. For instance, our Nuwa agent assistant system provides real time tech reminders and script recommendations for customer services staff, achieving an accuracy rate of 90% and reducing the quality inspection error rate by more than 5% after empowering the system. We have also integrated an AI based image recognition system into the risk control process, greatly enhancing the efficiency and accuracy of document and credential recognition. In marketing, we have implemented a multimodal model based on speech and images to ensure an AI intelligent review of marketing graphics, text and video content. Additionally, we have completed the private deployment of the advanced large language model DeepSeq R1. Speaker 100:12:03In 2025, we expect to accelerate its application in core business areas such as risk management, data science and customer services, driving structural breakthroughs in enterprise efficiency. Overseas business expansion has always been a key strategic focus for us. In Q4 twenty twenty four, our business partners in Indonesia saw a 74% year over year increase in loan volume. At the same time, the number of registered users grew by 131 year over year, maintaining strong growth momentum. We also established a partnership with a leading local financial institutions and are in discussions with five other potential partners. Speaker 100:13:39In the Mexican market, we continue to work closely with local regulatory authorities. As a result, we have significantly optimized risk indicators and improved profitability. With ongoing improvements in operational capabilities and market penetration, we aim to strengthen our competitive position in the overseas market. In 2024, the company actively advanced industry academy research collaboration, working with institutions such as Shanghai Jiaotong University, Xi'an Jiaotong University and Jilin University to explore the application of cutting edge AI technologies in the financial sector. In partnerships with Shanghai Financial Information Industry Association, we also published the Shanghai Financial Information Industry Development Report, highlighting industry development trends and pathways. Speaker 100:15:28Additionally, the company's youth mental health care initiative reached over 1,500 schools across eight provinces and municipalities nationwide, providing psychological assessment and consulting to more than 50,000 teachers and students. This project was awarded as an annual public welfare innovation typical case by China National Radio Network. Looking ahead, we will continue to drive industry development through technological innovation and give back to society with concrete actions, reaffirming the trust placed in us. Regarding shareholder returns, the company distributed a total dividend of USD 0.5 per ADS in 2024, totaling USD26.6 million. In appreciation of the strong support and trust from our investors, the company will further enhance shareholder returns. Speaker 100:17:22Starting in 2025, we plan to declare and distribute a cash dividend once per fiscal year with the total amount increasing from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. In this way, we intend to continue sharing the long term benefits from the company's high quality development. Looking ahead to 2025, macroeconomic policies are expected to provide stronger support for consumer credit. Recently, the National Financial Regulatory Administration issued the notice on developing consumer finance to boost consumption, which includes several key areas such as increasing the supply of consumer credit, diversifying consumer credit products and optimizing loan repayment methods. We believe these robust policy measures will instill confidence and drive momentum in the development of consumer credit industry. Speaker 100:19:31In line with the company's current growth trajectory, we remain optimistic about the company's business expansion and profitability in 2025 and have set the loan facilitation volume target range at RMB137 billion to RMB142 billion for the year. In the first quarter, our loan facilitation volume target is RMB 35,000,000,000 and the non GAAP income from operation target is set at RMB 0.57 Speaker 200:20:13to RMB0.63 billion. Speaker 100:20:17With that, I will now turn the call over to our CFO, Mr. Fan Chun Li. Please go ahead. Speaker 200:20:23Thank 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 our percentage changes refer to year over year comparisons unless otherwise noted. As Mr. Speaker 200:20:43Yan mentioned earlier, building on our strong momentum, we capped the year with a record breaking loan facilitation volume. Notably, loan facilitation volume in Q4 was $27,700,000,000 representing an increase of 37.8% from the same period of 2023. Our net revenue was $1,404,500,000 representing a decrease of 12.2% from the same period of 2023. As we mentioned a few times during our earnings release call earlier, the company has been focusing on the loan facilitation services and deliberately downsized financial guarantee service. If we dive deeper into the breakdown of the revenue, revenue from our loan facilitation services was RMB1124 million, representing an increase of 46.3% from the same period of 2023. Speaker 200:21:45The decline of the total revenue was primarily due to the significant decrease in revenue from releasing of guaranteed liabilities as a result of the company's strategic focus throughout year 2024. Moving on to costs. Facilitation and servicing expense were $339,300,000 representing a decrease of 59.5% from the same period of 2023. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncredible receivables, counter assets, loan receivable and other was $1,200,000 primarily due to the net impact of current period provisions and the reversal of allowance for receivables arising from a lower expected credit loss rate. Speaker 200:22:38Sales and marketing expense was $517,200,000 representing an increase of 57% from the same period of 2023, primarily due to an increase in borrower acquisition expenses. G and A expense was $53,700,000 representing a decrease of 17.6% from the same period of 2023, primarily driven by a decrease in employee costs. R and D expense was $104,000,000 representing an increase of 8.1% from the same period of 2023, primarily due to the increase in the number of our research and development personnel. Non GAAP income from operation was $402,400,000 representing an increase of 67.9% from $239,700,000 in the same period of 2023. Consequently, our net income for the fourth quarter was $275,500,000 representing a decrease of 25.1%. Speaker 200:23:48This was primarily due to the higher base resulting from one off non operational income in the same period of 2023. Our basic and diluted net income per share was $1,300,000 compared with $1,720,000 in the fourth quarter of twenty twenty three. Basic and diluted net income per ADS was $5,200,000 compared with $6,880,000 in the fourth quarter of twenty twenty three. We ended this quarter with $540,500,000 in cash and cash equivalents compared with $741,200,000 at the end of the previous quarter. With that, we can open the call for questions. Speaker 200:24:32Mr. Xu, our Chief Risk Officer and I will answer your questions. Operator, please proceed. Speaker 100:24:37Thank you. Operator00:24:55Our first question comes from the line of Rong Zhao from CF Securities. Please go ahead. So I have noticed a significant slowdown in the company's revenue growth in 2024. Is this a short term adjustment or long term trend? Could management share the business expansion plans and performance outlook for 2025? Operator00:25:44Thank you. Speaker 100:26:50This is Shawn Zhang, and I will do the translations for the management. So our current revenue structure primarily consists of two major components, which are loan facilitation revenue and guaranteed service revenue. The company's strategy for the year of 2024 focuses on the high quality growth of facilitation service revenue, which represents our core competency and maintains a stable take rate. Revenue related to Guarantee Services has lower profit margins and we have been strategically reducing its proportion over the past few quarters. In terms of revenue contribution, the share of facilitation service revenue increased from 48% in Q4 twenty twenty three to 80% in Q4 twenty twenty four. Speaker 100:27:54While the share of the revenue related to Guarantee's business decreased from 41.8% in Q4 twenty twenty three to 11% in Q4 twenty twenty four. This shift in revenue structure aligns with our strategic goal of high quality growth. So based on this strategical focus, although the overall revenue in the year of 2024 slows down and the revenue for the fourth quarter even slightly declined year over year and mainly due to the decrease in revenue related to guarantee business. However, if we focus on our core business, which is facilitation service revenue, it reached RMB1.124 billion in the fourth quarter, representing a year over year growth of 46.3%, which is even slightly higher than the growth rate of the facilitation volume. For the full year, facilitation revenue totaled RMB4.01 billion, reflecting a year over year increase of 15, which also aligned with the annual growth rate of our facilitation volume. Speaker 100:30:46If we compare with the performance in the past few years, the year of 2024 does have a year of relatively slow performance growth for our company. In particular, during the first half of twenty twenty four, we adopted a prudent operation strategy that began in Q4 twenty twenty three due to macroeconomic considerations. However, starting from the second quarter of twenty twenty four, especially in the second half of the year, with the gradual improvement in risk data and positive macroeconomic changes, we gradually resumed a faster growth pace. Our operational data shows that facilitation volume continue to grow sequentially each quarter. Notably, both the third quarter and fourth quarter achieved record high facilitation volumes for two consecutive quarters. Speaker 100:31:51We also implemented an aggressive strategy for acquiring new borrowers, laying a solid foundation for accelerated growth in the coming years. In the year of 2025, we will continue to pursue a high quality growth strategy. And just as Mr. Yan said, we expected the facilitation volume guidance in the fourth quarter to be around RMB35 billion, representing a year over year increase of about 55%. And for the full year, we project a facilitation volume of RMB137 billion to RMB142 billion, reflecting a year over year growth of about 36% to 41%. Speaker 100:33:10That will be my answer to your question, Operator00:33:34So what plans and investments does company currently have in technology and talent cultivation? And how does company ensure it maintains a leading position in technology? Speaker 300:33:53Thank you. Speaker 100:34:09Okay. I'm Shiyifeng and I will answer your question in Chinese and Sean will do the translation in English. Okay. So I will do the translation for this part first. So as a technology company, we have always been committed to leveraging technologies and data to connect end consumers and licensed financial institutions through mobile internet, driving refined operations and risk management. Speaker 100:35:18And since the beginning of 2025, we have seen that DeepSeq is leading the AI revolution and accelerating the industry's AI transformation. Okay. So just as what I said before that we have increased investment and deployment in the AI transformation direction. So first part of that is we have increased the investment in big data and artificial intelligence. So at the end of the last year, we completed a comprehensive upgrade of our corporate architecture and strategic positioning. Speaker 100:36:55We conducted a thorough review of both our front end and middle office operations and initiated the deployment of multi node AI agent, advancing unified one stop intelligent solutions. So through our organizational support and increased investment, we are strengthening the automation capabilities across the entire data lifecycle from the production and mining to application monitoring and iteration. We are empowering all data and technology personnel with AI driven tools. We are also exploring lightweight AI application in risk control process. And we are actively researching and deploying AI solutions in risk management, integrating artificial intelligence with accumulated professional expertise. Speaker 100:39:07This dual approach reinforce our competitive advantage and builds a robust professional mode in the increasingly competitive consumer credit market. And that will conclude my answer for your question. Operator00:39:30Thank you for the questions. One moment for the next question. Next question comes from the line of Hua Rong. Please go ahead. Speaker 300:40:19Hello, management. This is Farong from JV Asset. I have two questions. The first one is we have noticed a decline in the company's net income in 2024. What are the main reasons for this? Speaker 300:40:35Does management believe there are issue with cost control? And are there any plans for improvement in the future? My next question is, in 2025, how does the company plan to optimize borrower experience to increase their loyalty? Additionally, does the company have plans to attract new borrower groups? Thank you. Speaker 100:41:46Okay. So I will answer your first question about our net income and cost. So in the year of 2024, the company's net income was RMB1.056 billion with a net margin of about 18.2%. And it has a decrease of RMB240 million compared with the RMB1.297 billion in the 2023. And so, I think there are so the year over year decline in our net income is mainly due to three reasons. Speaker 100:42:29The first reason is our one time non operating income, which happened in the fourth quarter of twenty twenty three. So in the fourth quarter of twenty twenty three, our company recorded approximately RMB280 $280,000,000 in the one time non operating income from a business disposal, which is the main reason for that decrease. So the second reason is about our increased borrower acquisition efforts in the year of 2024. Jiaying significantly increased our borrower acquisition activities in 2024, leading to a higher related costs, including borrower acquisition and credit report expenses. Marketing expenses rose by RMB375 million compared to 2023. Speaker 100:44:45As a result, our new borrower accounted for 33.2% of the total borrower base with 2,774,000 new borrowers added throughout the year, which has a year over year increase of over 45%. And the third reason I want to share is about the higher R and D expenses. So in the year of 2024, R and D expenses increased by more than RMB76 million, which has a 25.7% rise year over year. And this increase was driven by the company's strategic focus on recruiting AI professionals and developing new systems and applications to improve operational efficiency and enhance our users' experience. So, our strategic investments in the borrower acquisition and technology and also R and D sector are designed to strengthen our long term growth momentum. Speaker 100:45:54And so going forward with rapid growth in facilitation volumes, effective control of the revenue share from guaranteed services and further implementation of AI applications, our company expect continuous improvements in borrower conversion and retention rates, which will significantly enhance our profitability. You probably also noticed from what Mr. Yan just said before that starting in the year of 2025, so in addition to providing facilitation volume guidance, we will also offer a profit guidance metric. During each earning release, we will provide a forecast for the next quarter's non GAAP income from operations, which could reflect the our company's core business profitability most accurately. So our company's fourth quarter performance has already provided preliminary validation of this strategy. Speaker 100:47:55So in the fourth quarter, our non GAAP income from operations reached RMB402 million, showing significant growth both year over year and quarter over quarter. We expect non GAAP income from operations for the first quarter of twenty twenty five to be in the range of RMB570 million to RMB630 million, representing a year over year increase of from 80% to 99%. So our performance guidance sends two clear signals. First, in terms of our business goal, we are returning to a path of high quality and rapid growth. And second, in terms of profitability, we are highly confident in achieving significant improvements in the year of 2025. Speaker 100:49:28So I want to recall that we are increasing our so we are increasing our dividend policy from no less than 15% of the previous fiscal year net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. So in this way, we are we would like to continue to show the long term benefits of the company's high quality development. Okay. So that will be my answer to your first question. I will give the second question to Mr. Speaker 100:50:18Xu. Okay. So, thank you, Mr. Fan. So usually, people focus heavily on the financial attributes of the consumer credit, emphasizing the professionalism and capability of risk management, which is very important for our industry. Speaker 100:51:24But while overlooking the consumer product aspect of consumer credit, Ultimately, the borrower needs to be willing to pay and recognize the value, which strengthen borrower retention. So, in this regard, we focus on the entire industry chain and the products process to enhance borrower stickiness. For example, Okay. So I will give four examples under this case. First is that we are strengthening cooperation with some popular traffic platforms. Speaker 100:53:23We could provide borrowers who have experienced our products before with better offerings and experience. Second is to improve the so internally improve the seamless connection between the marketing and risk control approval process. And third is we would like to enhance the customer service membership benefits and repayment reminders to improve the experience and privileges from our premium borrowers. And fourth, we would like to implement one stop credit services to allow our borrower to access multiple funding sources and even experiencing multi platform credit solutions. Another very important point is that we would like to integrate the whole industry ecosystem through innovative business models focusing on our core borrowers and driving the borrower base towards better pricing structures. Speaker 100:55:19So lastly, about our new borrower groups, we continue to adhere to our existing marketing market positioning. We're constantly pursuing the acquisition and retention of our high quality borrowers. So this approach enabled us to achieve a diversified layout across products, borrowers and financial institutions. Okay. Thank you, Hua. Speaker 100:55:57That will conclude my answer to your question. Operator00:56:00Thank you. Seeing no more questions, I will return the call to Sean for closing remarks. Please go ahead. Speaker 100:56:08Thank you, operator, and thank you all for participating on today's call and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Operator00:56:22Thank you all. Again, this concludes the call. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallJiayin Group Q4 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) Jiayin Group Earnings HeadlinesDiscovering US Undiscovered Gems in April 2025April 15, 2025 | finance.yahoo.comIs Jiayin Group Inc. (JFIN) the Best Performing NASDAQ Stock So Far in 2025?April 1, 2025 | insidermonkey.comM.A.G.A. is Finished – This Could be even BetterYou’ve no doubt heard Trump’s rally cry: Make America Great Again. But recently the President made a big change. Make America Wealthy Again (M.A.W.A).April 24, 2025 | Paradigm Press (Ad)Jiayin Group Inc. (NASDAQ:JFIN) Q4 2024 Earnings Call TranscriptMarch 29, 2025 | insidermonkey.comJiayin Group Inc. (JFIN) Q4 2024 Earnings Call TranscriptMarch 27, 2025 | seekingalpha.comJiayin Group Inc. Reports Fourth Quarter and Fiscal Year 2024 Unaudited Financial ResultsMarch 27, 2025 | markets.businessinsider.comSee More Jiayin Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Jiayin Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Jiayin Group and other key companies, straight to your email. Email Address About Jiayin GroupJiayin Group (NASDAQ:JFIN), together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.View Jiayin Group ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? 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There are 4 speakers on the call. Operator00:00:00day, ladies and gentlemen. Thank you for standing by and welcome to Jiayin Group Fourth Quarter twenty twenty four Earnings Conference Call. Currently, all participants are in listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Operator00:00:17As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. I'll now turn the call over to Mr. Sean Zhang from Investor Relations of Jiayin Group. Please go ahead. Speaker 100:00:32Thank 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 and full year of 2024. We released our earnings results earlier today. The press release is available on the company's website as well as from newswire services. Speaker 100:00:56On the call with me today are Mr. Yanding Gui, Chief Executive Officer Mr. Fan Chunming, Chief Financial Officer and Mr. Xu Yifeng, 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. Speaker 100:01:16S. 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. Speaker 100:01:39The company does not assume any obligation to update any forward looking statements, except as required under applicable law. Also, 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 Dingwei. Mr. Speaker 100:01:59Yan will deliver his remarks in Chinese and I will follow-up with corresponding English translations. Please go ahead, Mr. Yan. In 2024, China's macroeconomic demonstrated steady growth with consumer credit demand rising steadily, supported by consumer stimulus policies. Overall for the year, consumer credit grew by RMB1.24 trillion, reflecting a 6.2% year over year increase. Speaker 100:03:28The year also marked a significant milestone for Jiayin as it strengthened its strategic positioning and achieved high quality development. The company pursued a strategy of steady progress driven by technology expanding incrementally while carefully managing risks. In Q4 twenty twenty four, the company facilitated loan transactions totaling RMB27.7 billion, a 37.8% year over year increase with loan facilitation service revenue reaching RMB1.1 billion, up 46.3% year over year. The company's business growth grew steadily each quarter consistently setting new records. The total loan facilitation volume for the year exceeded RMB100 billion, marking an important business milestone. Speaker 100:05:28Thanks to diverse borrower acquisition channels and flexible marketing strategies, the company has significantly improved its borrower acquisition efficiency. In 2024, the company added 2,774,000 new borrowers representing a year over year growth of 45.1%. Regarding borrower retention, we implemented a refined stratification mechanism applying differentiated credit growth strategies. The company's annual retention rate increased by approximately 7%. We paid particular attention to potential churn users and effectively improved their retention rate nearly 75%. Speaker 100:06:19Additionally, we continue to expand a high quality and sustainable network of institutional partnerships. During 2024, we maintained in-depth cooperative relationships with a total of 73 financial institutions. We also actively explored innovative and diverse business models in areas such as auto backed loans and loans for small and macro businesses. We remain committed to achieving win win collaborations with financial institutions fostering the diversification of consumer credit products and scenarios. In response to the rapid growth of new borrower groups and strong credit demand, the company has consistently adhered to a prudent risk control strategy. Speaker 100:08:10While adjusting credit limits as needed, we closely monitor changes in risk data and implement more flexible transaction strategies By integrating new external data sources and combining them with deep analysis of internal borrower behavior, we continuously iterate and enhance our risk control models. In Q4, the delinquency rate for loans overdue from sixty one to ninety days dropped to 0.53%, representing a significant improvement compared with the same period a year earlier. Furthermore, through our AI powered self developed risk control platform, we have established a comprehensive digital anti fraud defense system. Through the year, we identified and intercepted more than 540,000 high risk, habitual fraud applications and blocked 468,000 malicious attacks from illicit activities. These results demonstrate that we are collectively building a full process digital and collaborative risk control network for Jiaing Technology. Speaker 100:10:45With the internal development of technology and the effective progress of external large models, we continue to expand the application and empowerment of AI in business areas such as customer services, risk control and marketing. For instance, our Nuwa agent assistant system provides real time tech reminders and script recommendations for customer services staff, achieving an accuracy rate of 90% and reducing the quality inspection error rate by more than 5% after empowering the system. We have also integrated an AI based image recognition system into the risk control process, greatly enhancing the efficiency and accuracy of document and credential recognition. In marketing, we have implemented a multimodal model based on speech and images to ensure an AI intelligent review of marketing graphics, text and video content. Additionally, we have completed the private deployment of the advanced large language model DeepSeq R1. Speaker 100:12:03In 2025, we expect to accelerate its application in core business areas such as risk management, data science and customer services, driving structural breakthroughs in enterprise efficiency. Overseas business expansion has always been a key strategic focus for us. In Q4 twenty twenty four, our business partners in Indonesia saw a 74% year over year increase in loan volume. At the same time, the number of registered users grew by 131 year over year, maintaining strong growth momentum. We also established a partnership with a leading local financial institutions and are in discussions with five other potential partners. Speaker 100:13:39In the Mexican market, we continue to work closely with local regulatory authorities. As a result, we have significantly optimized risk indicators and improved profitability. With ongoing improvements in operational capabilities and market penetration, we aim to strengthen our competitive position in the overseas market. In 2024, the company actively advanced industry academy research collaboration, working with institutions such as Shanghai Jiaotong University, Xi'an Jiaotong University and Jilin University to explore the application of cutting edge AI technologies in the financial sector. In partnerships with Shanghai Financial Information Industry Association, we also published the Shanghai Financial Information Industry Development Report, highlighting industry development trends and pathways. Speaker 100:15:28Additionally, the company's youth mental health care initiative reached over 1,500 schools across eight provinces and municipalities nationwide, providing psychological assessment and consulting to more than 50,000 teachers and students. This project was awarded as an annual public welfare innovation typical case by China National Radio Network. Looking ahead, we will continue to drive industry development through technological innovation and give back to society with concrete actions, reaffirming the trust placed in us. Regarding shareholder returns, the company distributed a total dividend of USD 0.5 per ADS in 2024, totaling USD26.6 million. In appreciation of the strong support and trust from our investors, the company will further enhance shareholder returns. Speaker 100:17:22Starting in 2025, we plan to declare and distribute a cash dividend once per fiscal year with the total amount increasing from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. In this way, we intend to continue sharing the long term benefits from the company's high quality development. Looking ahead to 2025, macroeconomic policies are expected to provide stronger support for consumer credit. Recently, the National Financial Regulatory Administration issued the notice on developing consumer finance to boost consumption, which includes several key areas such as increasing the supply of consumer credit, diversifying consumer credit products and optimizing loan repayment methods. We believe these robust policy measures will instill confidence and drive momentum in the development of consumer credit industry. Speaker 100:19:31In line with the company's current growth trajectory, we remain optimistic about the company's business expansion and profitability in 2025 and have set the loan facilitation volume target range at RMB137 billion to RMB142 billion for the year. In the first quarter, our loan facilitation volume target is RMB 35,000,000,000 and the non GAAP income from operation target is set at RMB 0.57 Speaker 200:20:13to RMB0.63 billion. Speaker 100:20:17With that, I will now turn the call over to our CFO, Mr. Fan Chun Li. Please go ahead. Speaker 200:20:23Thank 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 our percentage changes refer to year over year comparisons unless otherwise noted. As Mr. Speaker 200:20:43Yan mentioned earlier, building on our strong momentum, we capped the year with a record breaking loan facilitation volume. Notably, loan facilitation volume in Q4 was $27,700,000,000 representing an increase of 37.8% from the same period of 2023. Our net revenue was $1,404,500,000 representing a decrease of 12.2% from the same period of 2023. As we mentioned a few times during our earnings release call earlier, the company has been focusing on the loan facilitation services and deliberately downsized financial guarantee service. If we dive deeper into the breakdown of the revenue, revenue from our loan facilitation services was RMB1124 million, representing an increase of 46.3% from the same period of 2023. Speaker 200:21:45The decline of the total revenue was primarily due to the significant decrease in revenue from releasing of guaranteed liabilities as a result of the company's strategic focus throughout year 2024. Moving on to costs. Facilitation and servicing expense were $339,300,000 representing a decrease of 59.5% from the same period of 2023. This was primarily due to decreased expenses related to financial guarantee services. Allowance for uncredible receivables, counter assets, loan receivable and other was $1,200,000 primarily due to the net impact of current period provisions and the reversal of allowance for receivables arising from a lower expected credit loss rate. Speaker 200:22:38Sales and marketing expense was $517,200,000 representing an increase of 57% from the same period of 2023, primarily due to an increase in borrower acquisition expenses. G and A expense was $53,700,000 representing a decrease of 17.6% from the same period of 2023, primarily driven by a decrease in employee costs. R and D expense was $104,000,000 representing an increase of 8.1% from the same period of 2023, primarily due to the increase in the number of our research and development personnel. Non GAAP income from operation was $402,400,000 representing an increase of 67.9% from $239,700,000 in the same period of 2023. Consequently, our net income for the fourth quarter was $275,500,000 representing a decrease of 25.1%. Speaker 200:23:48This was primarily due to the higher base resulting from one off non operational income in the same period of 2023. Our basic and diluted net income per share was $1,300,000 compared with $1,720,000 in the fourth quarter of twenty twenty three. Basic and diluted net income per ADS was $5,200,000 compared with $6,880,000 in the fourth quarter of twenty twenty three. We ended this quarter with $540,500,000 in cash and cash equivalents compared with $741,200,000 at the end of the previous quarter. With that, we can open the call for questions. Speaker 200:24:32Mr. Xu, our Chief Risk Officer and I will answer your questions. Operator, please proceed. Speaker 100:24:37Thank you. Operator00:24:55Our first question comes from the line of Rong Zhao from CF Securities. Please go ahead. So I have noticed a significant slowdown in the company's revenue growth in 2024. Is this a short term adjustment or long term trend? Could management share the business expansion plans and performance outlook for 2025? Operator00:25:44Thank you. Speaker 100:26:50This is Shawn Zhang, and I will do the translations for the management. So our current revenue structure primarily consists of two major components, which are loan facilitation revenue and guaranteed service revenue. The company's strategy for the year of 2024 focuses on the high quality growth of facilitation service revenue, which represents our core competency and maintains a stable take rate. Revenue related to Guarantee Services has lower profit margins and we have been strategically reducing its proportion over the past few quarters. In terms of revenue contribution, the share of facilitation service revenue increased from 48% in Q4 twenty twenty three to 80% in Q4 twenty twenty four. Speaker 100:27:54While the share of the revenue related to Guarantee's business decreased from 41.8% in Q4 twenty twenty three to 11% in Q4 twenty twenty four. This shift in revenue structure aligns with our strategic goal of high quality growth. So based on this strategical focus, although the overall revenue in the year of 2024 slows down and the revenue for the fourth quarter even slightly declined year over year and mainly due to the decrease in revenue related to guarantee business. However, if we focus on our core business, which is facilitation service revenue, it reached RMB1.124 billion in the fourth quarter, representing a year over year growth of 46.3%, which is even slightly higher than the growth rate of the facilitation volume. For the full year, facilitation revenue totaled RMB4.01 billion, reflecting a year over year increase of 15, which also aligned with the annual growth rate of our facilitation volume. Speaker 100:30:46If we compare with the performance in the past few years, the year of 2024 does have a year of relatively slow performance growth for our company. In particular, during the first half of twenty twenty four, we adopted a prudent operation strategy that began in Q4 twenty twenty three due to macroeconomic considerations. However, starting from the second quarter of twenty twenty four, especially in the second half of the year, with the gradual improvement in risk data and positive macroeconomic changes, we gradually resumed a faster growth pace. Our operational data shows that facilitation volume continue to grow sequentially each quarter. Notably, both the third quarter and fourth quarter achieved record high facilitation volumes for two consecutive quarters. Speaker 100:31:51We also implemented an aggressive strategy for acquiring new borrowers, laying a solid foundation for accelerated growth in the coming years. In the year of 2025, we will continue to pursue a high quality growth strategy. And just as Mr. Yan said, we expected the facilitation volume guidance in the fourth quarter to be around RMB35 billion, representing a year over year increase of about 55%. And for the full year, we project a facilitation volume of RMB137 billion to RMB142 billion, reflecting a year over year growth of about 36% to 41%. Speaker 100:33:10That will be my answer to your question, Operator00:33:34So what plans and investments does company currently have in technology and talent cultivation? And how does company ensure it maintains a leading position in technology? Speaker 300:33:53Thank you. Speaker 100:34:09Okay. I'm Shiyifeng and I will answer your question in Chinese and Sean will do the translation in English. Okay. So I will do the translation for this part first. So as a technology company, we have always been committed to leveraging technologies and data to connect end consumers and licensed financial institutions through mobile internet, driving refined operations and risk management. Speaker 100:35:18And since the beginning of 2025, we have seen that DeepSeq is leading the AI revolution and accelerating the industry's AI transformation. Okay. So just as what I said before that we have increased investment and deployment in the AI transformation direction. So first part of that is we have increased the investment in big data and artificial intelligence. So at the end of the last year, we completed a comprehensive upgrade of our corporate architecture and strategic positioning. Speaker 100:36:55We conducted a thorough review of both our front end and middle office operations and initiated the deployment of multi node AI agent, advancing unified one stop intelligent solutions. So through our organizational support and increased investment, we are strengthening the automation capabilities across the entire data lifecycle from the production and mining to application monitoring and iteration. We are empowering all data and technology personnel with AI driven tools. We are also exploring lightweight AI application in risk control process. And we are actively researching and deploying AI solutions in risk management, integrating artificial intelligence with accumulated professional expertise. Speaker 100:39:07This dual approach reinforce our competitive advantage and builds a robust professional mode in the increasingly competitive consumer credit market. And that will conclude my answer for your question. Operator00:39:30Thank you for the questions. One moment for the next question. Next question comes from the line of Hua Rong. Please go ahead. Speaker 300:40:19Hello, management. This is Farong from JV Asset. I have two questions. The first one is we have noticed a decline in the company's net income in 2024. What are the main reasons for this? Speaker 300:40:35Does management believe there are issue with cost control? And are there any plans for improvement in the future? My next question is, in 2025, how does the company plan to optimize borrower experience to increase their loyalty? Additionally, does the company have plans to attract new borrower groups? Thank you. Speaker 100:41:46Okay. So I will answer your first question about our net income and cost. So in the year of 2024, the company's net income was RMB1.056 billion with a net margin of about 18.2%. And it has a decrease of RMB240 million compared with the RMB1.297 billion in the 2023. And so, I think there are so the year over year decline in our net income is mainly due to three reasons. Speaker 100:42:29The first reason is our one time non operating income, which happened in the fourth quarter of twenty twenty three. So in the fourth quarter of twenty twenty three, our company recorded approximately RMB280 $280,000,000 in the one time non operating income from a business disposal, which is the main reason for that decrease. So the second reason is about our increased borrower acquisition efforts in the year of 2024. Jiaying significantly increased our borrower acquisition activities in 2024, leading to a higher related costs, including borrower acquisition and credit report expenses. Marketing expenses rose by RMB375 million compared to 2023. Speaker 100:44:45As a result, our new borrower accounted for 33.2% of the total borrower base with 2,774,000 new borrowers added throughout the year, which has a year over year increase of over 45%. And the third reason I want to share is about the higher R and D expenses. So in the year of 2024, R and D expenses increased by more than RMB76 million, which has a 25.7% rise year over year. And this increase was driven by the company's strategic focus on recruiting AI professionals and developing new systems and applications to improve operational efficiency and enhance our users' experience. So, our strategic investments in the borrower acquisition and technology and also R and D sector are designed to strengthen our long term growth momentum. Speaker 100:45:54And so going forward with rapid growth in facilitation volumes, effective control of the revenue share from guaranteed services and further implementation of AI applications, our company expect continuous improvements in borrower conversion and retention rates, which will significantly enhance our profitability. You probably also noticed from what Mr. Yan just said before that starting in the year of 2025, so in addition to providing facilitation volume guidance, we will also offer a profit guidance metric. During each earning release, we will provide a forecast for the next quarter's non GAAP income from operations, which could reflect the our company's core business profitability most accurately. So our company's fourth quarter performance has already provided preliminary validation of this strategy. Speaker 100:47:55So in the fourth quarter, our non GAAP income from operations reached RMB402 million, showing significant growth both year over year and quarter over quarter. We expect non GAAP income from operations for the first quarter of twenty twenty five to be in the range of RMB570 million to RMB630 million, representing a year over year increase of from 80% to 99%. So our performance guidance sends two clear signals. First, in terms of our business goal, we are returning to a path of high quality and rapid growth. And second, in terms of profitability, we are highly confident in achieving significant improvements in the year of 2025. Speaker 100:49:28So I want to recall that we are increasing our so we are increasing our dividend policy from no less than 15% of the previous fiscal year net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. So in this way, we are we would like to continue to show the long term benefits of the company's high quality development. Okay. So that will be my answer to your first question. I will give the second question to Mr. Speaker 100:50:18Xu. Okay. So, thank you, Mr. Fan. So usually, people focus heavily on the financial attributes of the consumer credit, emphasizing the professionalism and capability of risk management, which is very important for our industry. Speaker 100:51:24But while overlooking the consumer product aspect of consumer credit, Ultimately, the borrower needs to be willing to pay and recognize the value, which strengthen borrower retention. So, in this regard, we focus on the entire industry chain and the products process to enhance borrower stickiness. For example, Okay. So I will give four examples under this case. First is that we are strengthening cooperation with some popular traffic platforms. Speaker 100:53:23We could provide borrowers who have experienced our products before with better offerings and experience. Second is to improve the so internally improve the seamless connection between the marketing and risk control approval process. And third is we would like to enhance the customer service membership benefits and repayment reminders to improve the experience and privileges from our premium borrowers. And fourth, we would like to implement one stop credit services to allow our borrower to access multiple funding sources and even experiencing multi platform credit solutions. Another very important point is that we would like to integrate the whole industry ecosystem through innovative business models focusing on our core borrowers and driving the borrower base towards better pricing structures. Speaker 100:55:19So lastly, about our new borrower groups, we continue to adhere to our existing marketing market positioning. We're constantly pursuing the acquisition and retention of our high quality borrowers. So this approach enabled us to achieve a diversified layout across products, borrowers and financial institutions. Okay. Thank you, Hua. Speaker 100:55:57That will conclude my answer to your question. Operator00:56:00Thank you. Seeing no more questions, I will return the call to Sean for closing remarks. Please go ahead. Speaker 100:56:08Thank you, operator, and thank you all for participating on today's call and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Operator00:56:22Thank you all. Again, this concludes the call. You may now disconnect.Read morePowered by