Jiayin Group's Q1 2025: Navigating Contradictions in Customer Acquisition, Profitability, and Regulatory Challenges

Customer acquisition cost and strategic focus, regulatory impact and strategic adaptation, profitability and strategic focus, loan facilitation volume growth are the key contradictions discussed in Jiayin Group's latest 2025Q1 earnings call.



Strong Business and Profitability Growth:
- Jiayin Group reported loan facilitation volume of RMB 35.6 billion in Q1 2025, up 58.2% year-over-year.
- The company's non-GAAP operating profit increased by 91.6%, and net profit surged by 97.5% year-over-year.
- This growth was driven by increased loan facilitation volume, optimization of revenue structures, and improved operational efficiency through AI and technology investments.

New Borrower Acquisition and Channel Expansion:
- Jiayin Group added 1.056 million new borrowers in Q1 2025, representing a 126.6% year-over-year growth.
- New borrower contribution to total loan facilitation volume was 28.1%.
- The growth was achieved through diverse acquisition channels, strategic partnerships, AI tools for user feedback analysis, and expansion of high-quality institutional partnerships.

Investment in AI and Digital Transformation:
- Jiayin Group actively promoted its 4 plus 2 AI development strategy, focusing on business intelligence, data intelligence, agent intelligence, and workplace intelligence.
- The company launched the Fuxi model management platform, which improved model deployment efficiency by threefold.
- These investments in AI and digital transformation are aimed at upgrading the company's AI capabilities, enhancing operational efficiency, and driving high-quality business development.

Regulatory Compliance and Strategic Adaptation:
- In response to new regulations on loan facilitation, Jiayin Group is actively adjusting its product offerings to align with regulatory requirements.
- The company is working to complete necessary adjustments ahead of the scheduled deadline to meet new standards and promote industry development.
- This strategy will enhance the company's risk control capabilities and support financial inclusion through better service and lower pricing.