Jiayin (JFIN) Q3 Earnings call transcript Nov 20, 2024

In a recent earnings call, Jiayin Group, a prominent player in the financial services sector, outlined its financial performance and strategic initiatives for the third quarter of 2024. The call, led by CEO Dinggui Yan, provided insights into the company's growth trajectory and the challenges it faces in the ever-evolving market landscape.

Strong Financial Performance and Strategic Growth

Jiayin Group reported a significant increase in loan facilitation volume, reaching approximately RMB 26.7 billion in the third quarter of 2024. This growth has been attributed to a more proactive approach to driving growth and investment in operations and borrower acquisition. The company's revenue from loan facilitation services also saw a notable increase of around 18.1% year-over-year, underscoring the company's strategic focus on its core business.

Technological Innovation and Partnerships

The call highlighted the company's commitment to technological innovation and the deepening application of large language models and AI technology. This focus on technology is aimed at enhancing operational efficiencies and improving customer services. Additionally, Jiayin Group has been expanding its institutional partnerships, leveraging high-quality networks of financial institutions to achieve stable growth. As of September 30, 2024, the company had established partnerships with 70 diverse financial institutions.

Borrower Acquisition and Market Expansion

Jiayin Group's efforts in borrower acquisition have been instrumental in driving growth, with the acquisition of 826,000 new borrowers in the third quarter of 2024. This represents a year-over-year growth of approximately 71.3%. The company has been exploring diverse acquisition channels, including collaborations with leading platforms in streaming, e-commerce, and lifestyle services. This strategic approach has enabled the company to tap into differentiated segments of the market and expand its borrower base.

Risk Management and Regulatory Environment

The call also addressed the company's risk management strategies and the impact of regulatory environments on its overseas operations. In Indonesia, Jiayin Group has seen rapid growth in the number of new users for its local business partners, demonstrating a strong demand for loan facilitation services. Despite market competition, the company remains optimistic about future development and is committed to providing exceptional services to its overseas clients.

Future Outlook and Financial Performance

Looking ahead, Jiayin Group is optimistic about future development, with a projected loan facilitation volume of no less than RMB 25 billion in the fourth quarter of 2024. The company is also revising its dividend policy, with plans to declare and distribute cash dividends once per fiscal year, starting in 2025. This adjustment is expected to enhance shareholder value and align with the company's strategic goals.

Challenges and Future Opportunities

The call also acknowledged the challenges facing the company, including increased borrower acquisition costs and regulatory uncertainties. However, the company's strategic focus on high-quality growth, operational efficiency, and technological innovation positions it well for future success. Jiayin Group remains committed to delivering sustainable returns for its investors and continuing its journey towards long-term growth and profitability.