Yiwen Xu

Yiwen Xu from Guojin Securities inquired about the impact of new regulations taking effect in October on Jiayin Group's business, including strategic adjustments and future outlook. She also asked for insights into revenue take rate and margin expectations given the current environment.

Answer

CRO Yifang Xu and CEO Dinggui Yan (translated by Sam Lee) explained that new regulations led to significant industry impact, primarily downward pricing pressure and increased consumer protection. Jiayin Group responded by ensuring compliant asset pricing, adjusting traffic acquisition strategies, and enhancing borrower segmentation to optimize portfolio structure. They noted that while short-term pressures exist, the company made timely adjustments to business scale, risk posture, and pricing. Long-term, the regulations are expected to raise industry entry barriers, leading to a healthier sector, with moderating revenue take rates and margins returning to sustainable levels as the company focuses on high-quality development. Jiayin Group reiterated strong full-year 2025 guidance for loan facilitation volume and non-GAAP operating profit.

Xu Yiwen from Guojin Securities inquired about the specific impacts of the new loan facilitation regulation, implemented in October, on Jiayin Group's business operations and the management's latest strategic adjustments and outlook in response. She also asked for management's expectations regarding future revenue take rates and profit margins, considering the current operating environment.

Answer

Chief Risk Officer Yifang Xu explained that the new regulation led to downward pressure on pricing to 24% and increased focus on consumer protection. She detailed strategic adjustments including intensified traffic acquisition, a greater focus on cross-industry platforms, cautious customer acquisition, enhanced borrower segmentation, and efforts to retain high-quality borrowers, all aimed at navigating tightening liquidity and asset quality fluctuations. CEO Dinggui Yan highlighted Q3 2025 net profit of RMB 376 million and a 25.6% net margin, noting a significant increase in net profit for the first three quarters of 2025 compared to the full year 2024. He acknowledged short-term industry pressures from new regulations but emphasized Jiayin Group's agile adjustments, predicting that the new rules will raise entry barriers, lead to a shift towards high-quality borrowers, moderate pricing, and ultimately result in healthier, sustainable margins. He reiterated the full-year 2025 guidance for loan facilitation volume and non-GAAP operating profit.