Hua Rong

Hua Rong questioned if GameHouse's Q1 fiscal year 2026 revenue guidance of $27M-$30M, appearing flat compared to the prior quarter's guidance, was deliberately conservative, and how potential updates would be handled. She also asked how management ensures that fiscal year 2025's profitability, largely driven by cost and expense reductions in R&D, user acquisition, and marketing, would not undermine long-term product competitiveness.

Answer

Shawn Zhiyuan Zhang, Senior Director of IR & Capital Markets, confirmed Q4 revenue slightly exceeded guidance due to one-time factors, but was consistent with expectations. He explained guidance is anchored by mobile game portfolio gross revenue, with future updates reflecting progress on mature titles, new genre expansion (RPG launches), and potential M&A. CEO Yimin Cai assured that cost savings are strategic, focusing on precision and efficiency for existing games (DTC, VIP management) to extend lifecycles and provide stable cash flow. For future projects, he stated investment is maintained through a phased, success-oriented development path, ensuring controllable upfront investment and mitigating R&D risks.

Hua Rong of Jin Yu Asset inquired about the industry-wide trend of rising customer acquisition costs, its impact on Jiayin Group, and the associated measures to manage credit risk for new borrowers. He also asked about the company's strategy to address potential ADR delisting risks.

Answer

Sam Lee, Head of Investor Relations, acknowledged that higher acquisition costs were a strategic choice driven by market competition and a push for user base expansion. He stated that the company is enhancing front-end risk modeling and using AI to manage asset quality. Regarding delisting risk, Mr. Lee noted that while the near-term risk is low, Jiayin is proactively preparing for alternatives, including a potential Hong Kong listing, to safeguard shareholder interests.

Hua Rong from Jin Yun Asset asked for an explanation of the significant sequential increase in accounts receivable in Q3 and the status of its recovery. Rong also questioned why the average borrowing amount per borrower decreased year-over-year despite revenue growth.

Answer

CFO Fan Chunlin stated the rise in accounts receivable was in line with record quarterly growth in loan facilitation revenue and that historical collection has been good. Chief Risk Officer Xu Yifang explained the lower average loan amount is a result of a strategic shift to acquire new borrowers with lower initial credit lines and to offer more flexible withdrawal options for existing premium borrowers, thereby expanding the overall user base.