JFIN Q2 2026 Earnings Call
Speaker #1 (AI Assigned): Later, we will conduct a Q&A session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.
Speaker #1 (AI Assigned): I will now turn the call over to Mr. Sam Lee for investigations of Jiayin Group. Please proceed.
Speaker #2 (AI Assigned): Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for Q2 2026.
Speaker #2 (AI Assigned): We released our earnings results earlier today. The press release is available on the company's website, as well as from newswire services. On the call with me today is Mr. Yan Dinggui, Chief Executive Officer.
Speaker #2 (AI Assigned): And Mr. Fan Chenlin, Chief Financial Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S.
Speaker #2 (AI Assigned): The 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.
Speaker #2 (AI Assigned): Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law.
Speaker #2 (AI Assigned): Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Please note that, unless otherwise stated, all figures mentioned during the conference call are in Chinese RMB.
Speaker #2 (AI Assigned): With that, let me now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with the corresponding English translation.
Speaker #2 (AI Assigned): Please go ahead, Mr. Yan.
Speaker #3 (AI Assigned): 大家好，感谢各位参加嘉英科技2026年第二季度业绩电话会议。
Speaker #2 (AI Assigned): Hello everyone. Thank you for joining Jiayin Group's Q2 2026 earnings conference call.
Speaker #3 (AI Assigned): 根据人行数据统计，二季度我国居民短期消费贷款余额较一季度末下降了约1,900亿元，行业监管政策持续落地，受个别事件影响，机构合作更需谨慎。在此背景下，公司顺应行业变化，加快业务结构的战略性调整。本季度公司实现出货交易额95亿元，同比下降约74.4%，受行情收缩与公司战略调整的双重影响，本季度落得净亏损约1.8亿元。
Speaker #2 (AI Assigned): According to statistics from the People's Bank of China, the outstanding balance of short-term household consumer loans in China decreased by approximately RMB 190 billion in Q2 compared to the end of Q1.
Speaker #2 (AI Assigned): As industry regulatory compliance requirements continue to take effect, influenced by isolated industry events, institutional funding partners have adopted a more cautious approach against this backdrop.
Speaker #2 (AI Assigned): The company proactively adapted to changes in the industry and accelerated the strategic adjustment of our business structure. During the quarter, the company achieved a transaction volume of RMB 9.5 billion, representing a year-over-year decrease of approximately 74.4%, driven by both the industry-wide contraction and our strategic adjustment.
Speaker #2 (AI Assigned): We recorded a net loss of approximately RMB 180 million for the quarter.
Speaker #3 (AI Assigned): 为应对流动性收紧所带来的影响，我们主动收缩风险敞口，稳步反射衡量风险，只保留核心优质客户的基本盘，同时加大回收力度。30天回收率环比稳步提升，截至二季度末，90天以上预期率为2.21%，环比保持稳定。
Speaker #2 (AI Assigned): In response to the impacts brought by industry-wide liquidity tightening, we proactively reduced our risk exposure and steadily mitigated existing portfolio risk, concentrating our focus on our core base of high-quality borrowers.
Speaker #2 (AI Assigned): At the same time, we intensified our collection efforts, and the 30-day collection rate improved consecutively quarter on quarter. As of the end of Q2, the 90-plus-day delinquency rate stood at 2.21%, remaining stable on a sequential basis.
Speaker #3 (AI Assigned): 为了战略反击与结构升级，海外业务是我们的重点锚点。印尼合作伙伴二季度业务规模同比增长58%，环比增长10%。通过升级风险策略框架和推进分客群精细化运营，获可费比显著改善，与本地金融机构的合作网络也在持续扩容中。墨西哥市场二季度环比增长36%，获客效率与风险控制的能力稳步提升。针对海外业务的长期发展目标，我们进行了战略和团队的全面升级，计划以东南亚为基本盘，持续深耕，审慎开展东亚、中亚、东非、中亚等新兴市场的调研与布局，有序推进全球化战略的拓展。
Speaker #2 (AI Assigned): Our international business serves as a key anchor in driving our strategic transformation and structural upgrades. In Q2, our Indonesian partners' business volume increased by 58% year over year and 10% sequentially.
Speaker #2 (AI Assigned): By upgrading our risk strategy framework and advancing refined borrower segmentation, we significantly improved our customer acquisition cost efficiency and further expanded our partnership network with local financial institutions.
Speaker #2 (AI Assigned): In Mexico, business volume increased by 36% sequentially in Q2, with continued improvements in borrower acquisition efficiency and asset quality. To achieve our long-term vision for our overseas business, we have comprehensively upgraded both our strategy and execution team moving forward.
Speaker #2 (AI Assigned): We plan to continue deepening our presence in Southeast Asia as our core anchor market, while taking a prudent approach to market research and expansion in emerging regions such as East Africa and Central Asia.
Speaker #2 (AI Assigned): This allows us to advance our global expansion in a structured and disciplined manner.
Speaker #3 (AI Assigned): 科技赋能是我们战略转型的重要方向，公司正加速实现重塑的服务商向科技输出方的技术升级。本季度，公司自研的服务器平台已完成基建层，风控层和核心Skill层沉淀，覆盖贷款周期内所有主要的业务环节。受信建模全链路Skill已规模化落地，将传统3-5天的建模优化周期压短至小时级。模型AUC和KS的衡量指标的风险识别准确率显著优于人工基准，未来将重点搭建面向金融机构的客户数据平台，支持存量客群的圈选能力，并与自动化营销平台全面打通，形成标准化、可复用的能力输出体系。
Speaker #2 (AI Assigned): Technology empowerment is a critical pillar of our strategic transformation. We are accelerating our technology upgrades to transition from a loan facilitation service provider to a more comprehensive technology service provider.
Speaker #2 (AI Assigned): During the quarter, the company's proprietary Fujifilm platform completed key developments in the infrastructure layer, risk management layer, and core skills deployment, covering all key operational processes throughout the credit lifecycle.
Speaker #2 (AI Assigned): Specifically, the end-to-end skill for credit assessment modeling has been implemented at scale, compressing the traditional model optimization cycle from three to five days down to a matter of hours, with risk identification accuracy metrics—including model AUC and KS scores—significantly outperforming human benchmarks.
Speaker #2 (AI Assigned): Looking ahead, we will focus on building a customer data platform tailored for financial institutions, enabling existing borrower segmentation and targeting capabilities. With full integration into our automated marketing platform, we aim to establish a standardized and scalable framework for technology service delivery.
Speaker #3 (AI Assigned): 此外，AI应用已全面嵌入公司核心运营链条，目前客服、硬件等业务场景已实现端到端AI全覆盖，部分场景实现对人工作息的全面替代。风控层，我们利用大模型和机器学习相结合的技术自研策略辅助来解决，推动策略制定从专家建模、人工计算向AI辅助专家建模、机器自动计算的升级，策略迭代效率提升数百倍，数十倍。关键场景精细度提升20%以上，得益于AI带来的人效提升，我们积极推进组织架构优化、AI生成单点工具演变为系统能力、支撑公司的业务调整、保持运营效率与成本竞争力。
Speaker #2 (AI Assigned): In addition, AI applications have been fully embedded into the company's core operational value chain. End-to-end AI coverage has now been implemented in key operational scenarios, such as customer service and loan application intake.
Speaker #2 (AI Assigned): Completely replacing human agents in select functions. On the risk management front, we have developed our proprietary strategy assistance agent by combining large language models with traditional machine learning.
Speaker #2 (AI Assigned): We drove the upgrade of risk strategy development from expert modeling with manual calculation to AI-assisted expert modeling with automated machine calculation. As a result, our risk strategy iteration efficiency has improved by more than tenfold, and accuracy in key scenarios has increased by over 20%.
Speaker #2 (AI Assigned): Benefiting from the workforce efficiency gains brought by AI, we are actively optimizing our organizational structure. AI is evolving from a standalone tool into a systemic capability.
Speaker #2 (AI Assigned): Supporting the company in maintaining operational efficiency and cost competitiveness during this period of business adjustment.
Speaker #3 (AI Assigned): 反欺诈方面，今年上半年行业内灰产业迭代快，伪装性强，团伙化趋势明显，给机构造成的损失日益增加，为此我们加快迭代的多模态策略体系，精准识别真实用户与代理黑产的行为差异。截至6月末，累计主动黑产恶意攻击硬件的17.6万件，累计识别并拦截高风险惯性欺诈申请超26.4万件，有效阻截黑产代理投诉行为，保障机构合作伙伴与借款人的权益。
Speaker #2 (AI Assigned): On the anti-fraud front, during the first half of this year, the industry experienced a rapid evolution of fraudulent and illicit activities, characterized by sophisticated disguising and masking tactics, and showed a clear trend toward organized operations.
Speaker #2 (AI Assigned): Causing growing losses to institutions across the sector. To address this, we accelerated the iteration of our multi-modal risk strategy system to precisely identify behavioral differences between genuine users and proxy-based fraud operations.
Speaker #2 (AI Assigned): As of the end of June, we had cumulatively blocked 176,000 malicious applications from fraudulent activities and identified and intercepted more than 264,000 high-risk repeat fraud applications.
Speaker #2 (AI Assigned): Effectively intercepting fraudulent agent-initiated complaints and safeguarding the interests of institutional partners and borrowers.
Speaker #3 (AI Assigned): 综合考虑外部经营环境与当前发展需要，公司决定暂不发布第三季度的业绩指引。同时暂停本年度分红，通过灵活调节资本配置与运营节奏，我们将为内部资源聚焦于业务转型与风险防御。值得一提的是，截至二季度末，公司现金及现金等价物金额提升至5.04亿元，为穿越行业周期保障未来发展继续力量。
Speaker #2 (AI Assigned): In light of the uncertain macroeconomic operating environment and our current strategic development priorities, the company has decided to refrain from issuing guidance for the third quarter and to suspend our dividend for this fiscal year.
Speaker #2 (AI Assigned): By maintaining flexibility in our capital allocation and operational pace, we will focus internal resources on business transformation and risk mitigation. Notably, as of the end of the second quarter, the company's cash and cash equivalents increased to RMB 504 million.
Speaker #2 (AI Assigned): Providing a strong financial buffer to navigate through the industry cycle and ensure sound future development.
Speaker #3 (AI Assigned): 下面请公司CFO樊春林先生为大家详细介绍本季度的财务表现。
Speaker #2 (AI Assigned): With that, I will now turn the call over to our CFO, Mr. Fan Chunlin. Please go ahead.
Speaker #3 (AI Assigned): Thank you, Mr. Yan, and hello, everyone. Thank you for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB.
Speaker #3 (AI Assigned): Any percentage changes refer to year-over-year comparisons unless otherwise noted. As Mr. Yan noted earlier, we remained disciplined in our execution during the second quarter and delivered transaction volume in line with our previous guidance.
Speaker #3 (AI Assigned): Transaction volume was $9.5 billion, representing a decrease of 74.4% from the same period in 2025. Our net revenue was $636.9 million, representing a decrease of 60.9% from the same period in 2025.
Speaker #3 (AI Assigned): Moving on to costs, facilitation and servicing expense was $549.3 million, representing an increase of 92.7% from the same period of 2025, primarily due to the increase in average outstanding loan balance for which the company provided guaranteed services.
Speaker #3 (AI Assigned): Allowance for uncollectible receivables, contra assets, prepaid expenses, and other current assets and others was $51.3 million, compared with $32.5 million for the same period of 2025.
Speaker #3 (AI Assigned): Primarily due to increased guaranteed services provided by the company. Sales and marketing expense was $221.8 million, representing a decrease of 68.8% from the same period of 2025.
Speaker #3 (AI Assigned): Primarily due to decreased borrower acquisition expenses and commission expenses. General and administrative expense was $66.9 million, representing a decrease of 39.5% from the same period of 2025.
Speaker #3 (AI Assigned): Primarily due to a decrease in share-based compensation. R&D expense was $94.2 million, representing a decrease of 13.1% from the same period of 2025, primarily due to a decrease in share-based compensation.
Speaker #3 (AI Assigned): Non-GAAP loss from operations was $225.7 million, compared with $737.6 million non-GAAP income from operations in the same period of 2025. Consequently, our net loss for the second quarter was $183.6 million, compared with $519.1 million net income in the same period of 2025.
Speaker #3 (AI Assigned): Our basic and diluted net loss per share was $0.89, compared with $2.46 basic and diluted net income per share in the second quarter of 2025.
Speaker #3 (AI Assigned): Basic and diluted net loss per ADS was $3.56, compared with $9.84 basic and diluted net income per ADS in the second quarter of 2025.
Speaker #3 (AI Assigned): Each ADS represents four Class A ordinary shares of the company. We ended this quarter with $504 million in cash and cash equivalents, compared with $43.4 million at the end of the previous quarter.
Speaker #3 (AI Assigned): With that, we can open the call for questions. Operator, please proceed.
Speaker #1 (AI Assigned): Thank you. To ask a question, please press star one one on your telephone. To cancel your request, please press star one one again.
Speaker #1 (AI Assigned): There are no further questions. I will return the call to Sam for closing remarks. Please go ahead.
Speaker #3 (AI Assigned): Thank you, operator, and thank you all for participating on today's call. We appreciate your interest and look forward to reporting to you again next quarter on our progress.
