Operator
Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jai Yin Group's 4th Quarter 2025 Earnings Conference Call. Currently, all participants are in listen-only mode. Later, we will conduct a question and answer 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. I will now turn the call over to Mr. Sam Lee from Investor Relations of Jaiying Group. Please proceed.
Thank you, Operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jaiying Group's financial results for the fourth quarter of 2025. 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 are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunling, Chief Financial Officer, and Ms. Xu Yifang, Chief Risk 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. 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. 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. Also, this call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains the 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 renminbi. 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 corresponding English translation. Please go ahead, Mr. Yan. Hello everyone.
Thank you for joining our fourth quarter and the four-year 2025 earnings conference call. 公司贷款出货交易量达到1290亿元,同比增长约28%, 实现收入62.2亿元,同比增长约7.3%, 净利润15.4亿元,同比增长约45.4%, 验证了我们在复杂环境下的经营韧性。
2025 was a pivotal year for the industry, marked by deepening regulation and standardized development. Despite the continuously tightening and external environment, we maintained steady progress which for the full year, our loan facilitation volume reached RMB 129 billion, representing a year-on-year increase of approximately 28%. We achieved revenue of RMB 6.22 billion, up approximately 7.3% year on year, and net income of RMB 1.54 billion, a year on year increase of approximately 45.4%, demonstrating our operational resilience amid a complex environment. In the fourth quarter, following the implementation of the new regulation, we observed a continuous decline in comprehensive financing costs alongside higher entry barriers and stricter compliance In response to this new regulatory landscape, we have proactively collaborated with our funding partners to facilitate necessary adjustments. As of now, we maintain partnerships with 79 financial institutions, with an additional 53 currently in negotiations.
We have consistently adhered to the operating philosophy of compliance as the foundation, quality and efficiency as priority. We proactively adjusted our borrowing acquisition pace this quarter, adding approximately 407,000 new borrowers, reflecting a year-on-year decline. To further enhance the precision of channel management and the efficiency of marketing spend, we implemented cross-functional collaboration to revamp our channel evaluation framework and to continue to optimize onboarding standards, ongoing monitoring, and off-boarding processes. Additionally, by establishing a more flexible credit limit management system, implementing targeted reactivation strategies for existing borrowers, we effectively unlocked the repeat borrowing potential among quality borrowers. Repeat borrowing contribution accounted for 79.4% of loan facilitation volume, an increase of 6.7 percentage points compared to the same period last year. Since the fourth quarter, risk indicators have remained under pressure. We have been advancing a safe, deep restructuring of our risk control strategies, which include multiple rounds of tightening entry criteria, optimizing credit limits, and iterating on product offerings. This has allowed us to proactively manage risk exposure and refine borrower segment structures, mitigating the impact of certain external fluctuations on asset quality. As of the end of the fourth quarter the 90 plus day delinquency ratio was 2.03 percent. Entering 2026 thanks to precise identification and isolation of tail risk along with structural optimization of existing asset portfolio, forward-looking risk indicators are showing positive trends.
We will continue to build a risk control system that balances long-term stability with short-term dynamics serving as the balance for steady operation. 探索AI驱动的优质客群的识别与获取、生化、生文、图谱等多模态技术在反气炸中的应用,赋论营销内容的生成与审核,非生产电路围绕日常运营的提值真效,覆盖工程智能、助习辅助与办公智能。 重点推进AI变程,向代码补权,向自主编程的跃进,人机而合的助习范色以提升服务之效,并持续完善内部智能化办公体系。 与此同时,智能体平台与机器学习平台作为两大基础设施,将持续为上层应用,提供底层工具支持。 This process is aimed at our AI strategy to complete the ability to build in the ability to build up our AI.
On the artificial intelligence front, we made solid progress in 2025 in multi-modal, anti-fraud, AI-powered agents and data intelligence. In 2026, our 4 plus 2 strategy will undergo a key upgrade. We have reorganized our four core pillars into two main tracks, production and non-production. The production track focuses on core business value creation, covering three directions, borrower acquisition, risk management, and marketing. We are exploring AI-driven identification and acquisition of high-quality borrower groups, deepening the application of multimodal technologies, such as voice print, knowledge graph, and anti-fraud, and enabling AI-powered content generation and review and marketing. The non-production track aims to improve efficiency and quality in daily operations, covering engineering intelligence, agent assistance, and office intelligence. Key initiatives include advancing AI programming from coding completion to autonomous coding, adopting a human-machine collaborative agent model to enhance service quality and efficiency, and further upgrading our internal intelligent workplace systems. Meanwhile, our intelligent agent platform and machine learning platform as the two foundational infrastructures will continue to provide underlying tooling support for upper-layer applications.
This strategic upgrade marks a shift in our AI strategy from capability building to value creation, embedding AI more deeply into our business value chain, and providing stronger, more sustainable drivers for development. 和海外市场三个维度持续发力 产品端 我们积极布局车底带和物质微带赛道 丰富近代产品取证 合作模式上 我们通过联合运营和对接头部流量生态 与多家机构建立深度战略合作关系 全联累计上线项目21个 业务规模逐月攀升 较早布局海外市场的先行者 其战略价值 2025年,印尼地区的有规模同比增长约187%,注册用户数同比增长约119%,规模效应逐步显现,墨西哥有在四季度显著急速,全年放款总额同比增长约105%,注册用户数同比增长约110%,完成了商业模型的阶段性验证。 In terms of new business expansion, we have continued to focus on three dimensions,
financial product innovation, partnership model innovation, and overseas markets. On the product side, we actively expanded into auto-backed loans and digital intelligent microloans, enriching our credit product portfolio. In partnership models, we connected with leading traffic ecosystems through joint operations, establishing deep strategic partnerships with multiple institutions. Throughout the year, we launched 21 projects with business scale growing month by month. As an early mover in global markets, its strategic value has become increasingly prominent. In 2025, facilitation volume in Indonesia increased by approximately 187% year-on-year, while registered users grew by approximately 119% year-on-year, demonstrating gradual scale effects. Mexico business accelerated significantly in the fourth quarter. For the full year, the total loan facilitation volume grew approximately 105% year-on-year, while registered users up approximately 110% year-on-year, marking a key milestone in validating our business model. We plan to use several countries where we have investment and operational experience as anchors to explore opportunities in other markets.
Through cross-geography and cross-cycle deployment, we will steadily expand our global footprint. 金融普费的本质不仅在于服务的触达深度 更在于对社会温度的传递 过去一年工业行动深入到青少年心理健康与特殊群体帮扶等多个领域 直接培训教师学生及家长3万余名 覆盖学校1300多所 并为6万名师生开展了心理健康测评 以实际行动守护孩子的健康成长 在自愿服务方面 自家营自愿服务队成立以来 已有120名成员 累计开展活动28次 服务时长近3800小时 我们的公益实践与职任担当 也获得了来自政府部门 权威媒体及社会机构的多项认可 这不仅是对我们坚持长期主义的肯定 更是我们构筑品牌信任的核心竞争力
The essence of financial inclusion lies not only in the depth of service reach, but also in conveying social value. Over the past year, our philanthropic initiatives reached multiple areas, including youth mental health and support for special needs groups. We directly trained over 30,000 teachers, students, and parents, covering more than 1,300 schools, and conducted mental health assessments for over 60,000 students and teachers, protecting the healthy growth of children through concrete action. In terms of volunteering services, since the establishment of the Jiayin Volunteer Service Team, we have grown to 120 members, completed 28 activities, and accumulated nearly 3,800 hours of service. Our philanthropic practices and social responsibility efforts have received multiple recognition from government departments, authoritative media outlets, and social organizations. This is not only an affirmation of our commitment to long-termism, but also a core competitive advantage in building trust in our brand. 同比增长超过50%,
8月,我们将现行股份回购计划的总额度提升了不少于8000万美元, 截至目前已回购近460万ADS,总价值约3040万美元, 我们将持续既定的奉红政策,
灵活运用剩余的回购额度,持续回报股东。 Regarding shareholder returns, In 2025, we continue to deliver on our commitment to sharing benefits of our development with our shareholders. During the year, we completed cash dividend distributions totaling U.S. $41.1 million, representing an increase of over 50% year-on-year. In August, we increased the total quota of the current share repurchase program to no less than U.S. $80 million. To date, we have repurchased nearly 4.6 million KDS with total value of approximately US$30.4 million. We will maintain our existing dividend policy and make disciplined use of the remaining repurchase capacity to deliver sustainable returns to shareholders. Given the ongoing uncertainty in the macro environment, we maintain a prudent stance and expects loan facilitation volume for the first quarter of 2026 to be between R&B 18.5 billion and R&B 19.5 billion. We will continue to use compliance as our foundation and innovation as our engine to continuously solidify the technological foundation and build resilience against cyclical fluctuation.
With that, I will now turn the call over to our CFO, Mr. Fan Chun-Ling.
Thank you, Mr. Yan, and hello, everyone, for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB, and all percentage changes refer to year-over-year comparisons, unless otherwise noted. As Mr. Yan noted, amid the liquidity tightening and the heightened risk volatility following the new regulatory implementation, we have proactively pivoted to prioritize asset quality of expansion to safeguard our long-term stability. Loan facilitation volume in Q4 was 24.2 billion, representing a decrease of 12.6% from the same period of 2024. Our net revenue was $1,090.2 million, representing a decrease of 22.4% from the same period of 2024. Moving on to costs, facilitation and servicing expense was $328.2 million, representing a decrease of 3.3% from the same period of 2024. Reversal of credit losses of uncredible assets, loans receivable, and others was $20.1 million compared with $1.2 million allowance for credit losses of uncredible assets, loans receivable, and others in the same period of 2024, primarily due to write-back of allowance for overseas contingent guarantees arising from lower expected loss rates. Sales and marketing expense was $498.7 million, representing a decrease of 3.6% from the same period of 2024, primarily driven by the improvements in operational efficiency. General and administrative expense was $66.8 million, representing an increase of 24.4% from the same period of 2024, primarily due to an increase in employee costs. R&D expense was $121.9 million, representing an increase of 21.4% from the same period of 2024, primarily due to an increase in professional service fees and employee costs. Non-GAAP income for operation was $120.4 million, compared with $402.4 million in the same period of 2024. Consequently, our net income for the fourth quarter was 100.6 million compared with RMB 275.5 million in the same period of 2024. Our basic and diluted net income per share were both 0.49 compared with 1.30 in the fourth quarter of 2024. Basic and diluted net income per ADS were both 1.96 compared with 5.20 in the fourth quarter of 2024. Each ADS represents four Class A ordinary shares of the company. We ended this quarter with 61.8 million in cash and cash equivalents compared with 124.2 million as of September 30, 2025. With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer questions. Operator, please proceed.
Operator
To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Yuxuan Chen with Huatai Securities. So your line is open.
Now, I'm going to go back to this question. Hello, management. Thanks for taking my question. I've got two questions here. The first one is about the risk. Could the management share how your risk metrics have been trending in the fourth quarter of 2025 and the year-to-date in 2026? Given the recent volatility in the industry, how have you adjusted your customer acquisition strategy? The second one is about the regulation, with the regulatory environment in China continuing to tighten, what are your expectations for growth this year? In particular, how do you see the key metrics like loan facilitation volume and profitability trending?
Okay, thank you for the first question I will talk about the second question I will talk about the second question I will talk about Cholly. The first question I will talk about is the whole threat of the situation. As you all know, the threat of the situation in 2025, with the whole policy and the whole policy in the industry is very similar. In this case, we don't have a lot of information about this topic. We also believe that the development of the industry has been a little bit concerned about this topic.
Hi, Yuxian. I will answer your first question, and Mr. Fan will answer your second question. So as you know, RISC for this year is highly related to the regulation, So I won't go into too much detail on the interpretation of the new policy and new regulation because I believe most of the investors in the sector are already quite familiar with the dynamics.
尤其是在峰值前的4到6周 尤其我们在看到新科的图面 就是看到市场在去年9月底10月初 是来到了最高峰 那我们看到也看到这个渠道的质量 这件事情上面 对这件事情上也有所影响 那不同质量的渠道 它在达到高峰值的时间上是略有不同 然后在11月份维持一定的高位略有效性 到12月份开始明显
So from Jiayin's perspective, compared with the previous cycle, the increase in risk last year was more pronounced and more prolonged, and particularly in the first four to six weeks leading up to the peak, at the new borrower level, we observed the market reached its peak around late September and to early October. So the exact timing is a little bit different across different channels or different quality, but risk levels remain elevated through November before starting to decline in December. So during this period, we proactively adjusted our channel mix. We tightened our standards in the new borrower models and strategies and control the absolute volume of new borrower acquisition.
Now, let's go to the current level, especially at the current level of the new borrower acquisition level, we can see that the current year of the current year is from the 1st of the year to the top, and the 12th of the year, we can see it slowly.
So from the repeat power side, for the incremental assets from the repeat power, risk peak in the and then gradually decline starting in December. So in response, we adopted a more selective and disciplined approach to risk management, focusing on higher quality and more resilient borrowers for approval. So we also applied more stringent underwriting and credit limit management for customers who are higher risk with multiple outstanding debts, weaker asset profiles, and limited financing capacity, particularly among the near-prime or marginal borrowers. So overall, our structured risk management approach has delivered tangible results, and based on our internal analysis, amid the broad industry-wide risk cycle, our measures contributed to an improvement in risk metrics by approximately 25 to 30%. Since January, we have been closely monitoring the overall industry volume trends, both the The platforms and our financial institutional partners are really still digesting the impacts of last year's risk volatility. With that said, we're still seeing continued improvement in our new risk vintages. Since your question is on the customer acquisition front, we remain cautious in ramping up volumes. In terms of channel strategy, we're really prioritizing the leading traffic platforms and lower cost acquisition channels so that we can optimize the customer mix for the long term. So for the second question, I'll hand it over to our CFO, Mr. Charlie. Thank you, Yvonne.
The second question is that, in the situation of the situation in the current situation, the company's expectations for the development of the economy, especially for the improvement of the economy. In 2025, the company has completed the improvement of $1,290 million.
So Yushin, your second question is on the effects of the regulation and metrics. So for the full year of 2025, we achieved total facilitation volume of R&B 129 billion, with revenue and net profit reaching R&B 6.2 billion and R&B 1.54 billion, respectively. representing a net margin of 24.7%.
Q3 and Q4 would like to get 0.9% to the amount.
We see the second quarter of 2025, particularly following the formal implementation for new regulations, industry liquidity has gradually tightened and risk levels have shown a clear upward trend. So against this backdrop, we proactively tighten our standards and restructure our risk management strategies. So after reaching a historical quarterly peak of RMB 37.1 billion in facilitation volume in Q2, we continue to scale back in Q3 and Q4, with Q4 volume declining to RMB 24.2 billion. Revenue and net profit for the quarter were RMB 1.09 billion and RMB 100 million, respectively, with net margin declining to 9.2%. Similar to other leading players in the industry, we have faced short-term pressure on profitability due to declining pricing, volatility and risk metrics, and dis-economies of scale resulting from rapid volume contraction.
And also, as we mentioned earlier in the past few years, the new market will increase the entire market, and increase the focus of the market. So, as a company, in a short period of time, and in a short period of time, we will enter high-quality growth growth in a new phase.
We also saw the entire market market, in the past few weeks after all, So with that said, as we've iterated in previous earnings calls, the implementation of the new regulation is expected to raise industry entry barriers and increase market concentration. As a leading platform, we believe that giant technology can navigate through this period of short-term risk volatility and scale adjustment. We are well positioned to enter a new phase of high-quality, moderate growth over the medium to long term and encouragingly after several quarters of rising risk across the industry we're beginning to observe the early signs of stabilization and improvement asset policy. So looking ahead, we'll continue to operate with compliance as our foundation, closely monitoring changes in risk trends and market liquidity, and dynamically adjusting our strategy in line with the evolving industry fundamentals. Given that the industry is still undergoing a transition period following the new regulations, we will maintain a high degree of flexibility and review our targets on a quarterly basis. As Mr. Yan mentioned, for the first quarter of 2026, we expect the facilitation volume to be in the range of RMB 18.5 billion to 19.5 billion. Thank you, Yuxian.
Operator
Thank you. Our next question comes from Roxy Liu with Kailu Capital. Your line is open.
Thank you, operator. 管理层晚上好,我的问题是关于海外业务的。 可以看到在2025年公司的海外业务实现了快速增长。 管理层能否分享一下加银海外业务的发展战略跟展望。 下面我将翻译一下我的问题。 Given the rapid growth of the company's overseas business in 2035, Could the management elaborate on Jaiying's strategy, roadmap, and the future outlook in the overseas market?
Thank you. and the development of the global market market in 2015 is the development of the development of the global market.
Hi, Roxy. I'll answer your questions on the overseas part. So in today's fintech landscape, the international business has really become a key growth pillar that we're actively cultivating. As Mr. Yan mentioned earlier, our operations in Indonesia and Mexico have both been growing at a strong pace, with volume roughly doubling year over year in 2025. So, we expect this momentum to continue.
In 2026, we have made a change in the energy supply.
So from the scale perspective, we look to do the same in 2026, so another year of doubling in scale. At the same time, on the quality front, both markets are expected to reach important strategic milestones in moving towards profitability. So from a business model perspective, we will continue to deepen our localization strategy, expanding partnerships with local financial institutions and enhancing our ability to serve and power the local financial ecosystem. At the same time, we'll continue to broaden our collaboration with international financial institutions to capture synergies from our global strategy. For the new countries and markets, we've been actively laying the groundwork for expansion into new markets, so we look forward to sharing more progress with you later in 2026.
Thank you, that's my answer on the international part.
Operator
Thank you. Seeing no more questions, I will return the call back to Sam for closing remarks. Please go ahead.
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 progress.
Operator
Thank you all again. This concludes the call. You may now disconnect.
