Jiayin Group Q2 Earnings Call Highlights

Q2 results deteriorated sharply: Transaction volume fell 74.4% year over year to RMB9.5 billion, revenue declined 50.9% to RMB636.9 million, and Jiayin posted a RMB183.6 million net loss versus RMB519.1 million in net income a year earlier. Industry liquidity pressures drove restructuring and tighter risk controls. Jiayin reduced exposure to lower-quality borrowers, improved collections, and maintained its 90-plus-day delinquency rate at 2.21%, while overseas volumes grew in Indonesia and Mexico. Management is prioritizing transformation and liquidity: The company is expanding its Fuxi technology and AI platform, ended the quarter with RMB504 million in cash, suspended its dividend, and declined to provide third-quarter guidance amid uncertainty.

Jiayin Group NASDAQ: JFIN reported sharply lower second-quarter results as tighter industry liquidity and its own business restructuring reduced transaction volume, while the company expanded overseas operations and continued investing in technology and artificial intelligence capabilities. Chief Executive Officer Dinggui Yan said the outstanding balance of short-term household consumer loans in China declined by about RMB190 billion during the second quarter from the end of the first quarter, citing statistics from the People’s Bank of China. He said institutional funding partners had become more cautious as regulatory compliance requirements took effect and following isolated industry events.

“Against this backdrop, the company proactively adapted to changes in the industry and accelerated the strategic adjustments of our business structure,” Yan said through an English translation provided during the call.

Transaction volume totaled RMB9.5 billion in the second quarter, down 74.4% from the same period in 2025. Chief Financial Officer Chunlin Fan said the figure was in line with the company’s previous guidance. Net revenue fell 50.9% year over year to RMB636.9 million. Jiayin recorded a net loss of RMB183.6 million, compared with net income of RMB519.1 million in the prior-year quarter. The company’s non-GAAP loss from operations was RMB225.7 million, compared with non-GAAP income from operations of RMB737.6 million a year earlier. Facilitation and servicing expense rose 92.7% to RMB549.3 million, primarily because of an increase in the average outstanding loan balance for which the company provided guarantee services. Allowance for uncollectible receivables, contract assets, prepaid expenses and other current assets rose to RMB51.3 million from RMB32.5 million, also primarily due to increased guarantee services. Sales and marketing expense declined 68.8% to RMB221.8 million, reflecting lower borrower acquisition and commission expenses. General and administrative expense decreased 39.5% to RMB66.9 million, while research and development expense declined 13.1% to RMB94.2 million. Fan attributed both declines primarily to lower share-based compensation. Basic and diluted net loss per share was RMB0.89, compared with basic and diluted net income per share of RMB2.46 a year earlier. Basic and diluted net loss per American depositary share was RMB3.56, compared with income per ADS of RMB9.84 in the second quarter of 2025. Each ADS represents four Class A ordinary shares.

Yan said the company reduced risk exposure amid industry-wide liquidity tightening and focused on higher-quality borrowers. Jiayin also increased collection efforts, with its 30-day collection rate improving sequentially. Its 90-plus-day delinquency rate was 2.21% at the end of the quarter, stable from the prior quarter. The company said its overseas operations...