Jiayin Group Inc.'s Q4 2024: Contradictions Unveiled in Revenue Strategy, Borrower Acquisition, and Net Income Decline

These are the key contradictions discussed in Jiayin Group Inc.'s latest 2024Q4 earnings call, specifically including: Revenue Growth Strategy, Borrower Acquisition Strategy, Net Income Decline, and Borrower Acquisition Channels:



Loan Facilitation Volume and Revenue Growth:
- Jiayin Group facilitated RMB27.7 billion in loan transactions in Q4 2024, representing a 37.8% year-over-year increase.
- Revenue from loan facilitation services reached RMB1.124 billion, up 46.3% year-over-year.
- The growth was driven by a strategic focus on high-quality growth and increased borrower acquisition efforts.

Borrower Acquisition and Retention:
- The company added 2.774 million new borrowers in 2024, a 45.1% year-over-year increase.
- The annual retention rate increased by approximately 7%, with a significant improvement in churn user retention.
- This was attributed to diverse borrowing acquisition channels, refined retention strategies, and improved customer experience.

Risk Control and Technology Innovation:
- Jiayin improved its delinquency rate for loans overdue from 61 to 90 days to 0.53%, a significant improvement from the previous year.
- The company is integrating AI and machine learning into risk control and customer services, enhancing efficiency and accuracy.
- These improvements are the result of a prudent risk control strategy, continuous model iteration, and the application of emerging technologies.

Financial Performance and Dividend Policy:
- Net income for Q4 2024 was RMB275.5 million, with a net margin of approximately 18.2%.
- The company plans to increase its dividend policy to distribute approximately 30% of the previous fiscal year's net profit after tax.
- The decline in net income and the strategic dividend increase are due to one-time non-operating income, increased borrower acquisition expenses, and strategic investments in technology and R&D.

Overseas Business Expansion:
- Jiayin's business partners in Indonesia saw a 74% year-over-year increase in loan volume.
- The company established a partnership with local financial institutions in Indonesia and is exploring opportunities in Mexico.
- Overseas expansion is driven by strategic partnerships, risk indicator optimization, and market penetration improvements.