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DATE

Friday, Aug. 28, 2026 at 8 a.m. ET

CALL PARTICIPANTS

• Investor Relations - Sam Lee
• Chief Executive Officer - Yan Dinggui
• Chief Financial Officer - Fan Chunlin

TAKEAWAYS

• Net Revenue -- RMB 736.9 million, representing a 60.9% year-over-year decrease driven by lower transaction volumes.
• Transaction Volume -- RMB 9.5 billion, representing a 74.4% year-over-year decrease reflecting industry-wide contraction and strategic business adjustments.
• Net Loss -- RMB 183.6 million, compared to a net income of RMB 519.1 million in the second quarter of 2025.
• Non-GAAP Loss from Operations -- RMB 225.7 million, compared with RMB 737.6 million non-GAAP income from operations in the prior-year period.
• Cash and Cash Equivalents -- RMB 504.0 million as of June 30, 2026, an increase from RMB 43.4 million reported at the end of the previous quarter.
• 90-Plus Day Delinquency Rate -- 2.21%, remaining stable on a sequential basis as the company mitigated existing portfolio risks.
• Indonesia Business Volume -- Increased 58% year over year and 10% sequentially, supported by upgraded risk strategy and refined borrower segmentation.
• Mexico Business Volume -- Increased 36% sequentially, reflecting improvements in borrower acquisition efficiency and asset quality.
• Average Borrowing Amount -- RMB 6,663 per borrower, representing a 18.0% decrease from the same period of 2025.
• Repeat Borrowing Contribution -- 73.1% of transaction volume in mainland China, compared with 75.6% in the second quarter of 2025.
• Facilitation and Servicing Expense -- RMB 549.3 million, a 92.7% increase primarily due to higher average outstanding loan balances for which the company provided guarantee services.
• Sales and Marketing Expense -- RMB 221.8 million, representing a 68.8% decrease driven by reduced borrower acquisition and commission expenses.
• General and Administrative Expense -- RMB 66.9 million, a 39.5% decrease primarily due to reduced share-based compensation.
• Research and Development Expense -- RMB 94.2 million, representing a 13.1% decrease resulting from lower share-based compensation.
• Revenue from Loan Facilitation Services -- RMB 184.8 million, a decrease of 88.5% compared to the prior-year period.
• Revenue from Releasing of Guarantee Liabilities -- RMB 454.4 million, compared to RMB 126.4 million in the second quarter of 2025.
• Share Repurchases -- 4.6 million American depositary shares repurchased for approximately $30.4 million as of Aug. 28, 2026.
• Fraud Application Interception -- 176,000 malicious applications and 264,000 high-risk repeat fraud applications blocked as of June 30, 2026.
• Risk Strategy Iteration Efficiency -- Improved more than tenfold through the deployment of AI-assisted expert modeling and automated machine calculation.
• People's Bank of China Statistics -- Reported a decrease of approximately RMB 190 billion in the outstanding balance of short-term household consumer loans during the second quarter.
• Basic and Diluted Net Loss Per ADS -- RMB 3.56, compared with RMB 9.84 net income per ADS in the same quarter last year.

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RISKS

• Yan stated, "institutional funding partners have adopted a more cautious approach," due to industry regulatory compliance requirements and isolated industry events.
• Yan warned that the industry experienced a "rapid evolution of fraudulent and illicit activities" characterized by "organized operations," which have caused growing losses across the sector.

SUMMARY

Management reported a strategic transition from loan facilitation toward a technology service provider model amid industry-wide liquidity tightening and regulatory shifts. The company reported significant declines in domestic transaction volume and revenue while increasing focus on international markets and AI-driven operational efficiency. To preserve capital during this business transformation, the company suspended its dividend for the 2026 fiscal year while maintaining its share repurchase program.

• Management reported that the proprietary Fuxi platform completed development of its infrastructure and risk management layers, covering all key operational processes in the credit life cycle.
• CEO Yan stated, "AI applications have been fully embedded into the company's core operational value chain," replacing human agents in specific customer service and application functions.
• The company reported that end-to-end credit assessment modeling has compressed the traditional model optimization cycle from 3 to 5 days down to a matter of hours.
• Management plans to deepen its presence in Southeast Asia while conducting market research for expansion into East Africa and Central Asia.
• CEO Yan stated, "AI is evolving from a stand-alone tool into a systemic capability, supporting the company in maintaining operational efficiency and cost competitiveness during this period of business adjustment."
• The company developed a proprietary strategy assistance agent combining large language models with machine learning to automate risk strategy development.

INDUSTRY GLOSSARY

• ADS: American Depositary Share, a U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange.
• AUC and KS Scores: Area Under the Curve (AUC) and Kolmogorov-Smirnov (KS) scores are statistical metrics used to evaluate the accuracy and predictive power of risk management models.
• Fuxi Platform: Jiayin Group's proprietary technology platform designed for credit assessment, risk management, and operational automation.
• RMB: Renminbi, the official currency of the People's Republic of China.
• Repeat Borrowing Contribution: The percentage of total loan transaction volume attributed to borrowers who have used the platform at least twice.

Full Conference Call Transcript

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Jiayin Group Second Quarter 2026 Earnings Conference Call. [Operator Instructions] 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 Jiayin Group. Please proceed.

Unknown Executive: Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the second quarter of 2026. 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; and Mr. Fan Chunlin, Chief Financial 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 statements, except as required under applicable law. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a 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 translations. Please go ahead, Mr. Yan.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] Hello, everyone. Thank you for joining Jiayin Group's Second Quarter 2026 Earnings Conference Call.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] According to the statistics from the People's Bank of China, the outstanding balance of short-term household consumer loans in China decreased by approximately RMB 190 billion in the second quarter compared to the end of the first quarter as industry regulatory compliance requirements continue to take effect, influenced by isolated industry events. institutional funding partners have adopted a more cautious approach. Against this backdrop, the company proactively adapted to changes in the industry and accelerated the strategic adjustment of our business structure.

During the quarter, the company achieved transaction volume of RMB 9.5 billion, representing a year-over-year decrease of approximately 74.4%, driven by both the industry-wide contraction and our strategic adjustment, we recorded a net loss of approximately RMB 180 million for the quarter.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] In response to impacts brought by industry-wide liquidity tightening, we proactively reduced our risk exposure and steadily mitigated existing portfolio risk, concentrating our focus on our core base of high-quality borrowers. At the same time, we intensified our collection efforts and the 30-day collection rate improved consecutively quarter-on-quarter. As of the end of the second quarter, the 90-plus day delinquency rate stood at 2.21%, remaining stable on a sequential basis.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] Our international business serves as a key anchor in driving our strategic transformation and structural upgrades. In the second quarter, our Indonesian partners' business volume increased by 58% year-over-year and 10% sequentially. By upgrading our risk strategy framework and advancing refined borrower segmentation, we significantly improved our customer acquisition cost efficiency and further expanded our partnership network with local financial institutions. In Mexico, business volume increased by 36% sequentially in the second quarter with continued improvements in borrower acquisition efficiency and asset quality. To achieve our long-term vision for our overseas business, we have completely comprehensively upgraded both our strategy and execution team.

Moving forward, we plan to continue deepening our presence in Southeast Asia as our core anchor market while taking a prudent approach to market research and expansion in emerging regions such as East Africa and Central Asia, thereby advancing our global expansion in a structured and disciplined manner.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] Technology empowerment is a critical pillar of our strategic transformation, and we are accelerating our technology upgrade to transition from a loan facilitation service provider to a more comprehensive technology service provider. During the quarter, the company's proprietary [ Fuxi ] platform has completed the key development in the infrastructure layer, risk management layer and core skills deployment, covering all key operational processes throughout the credit life cycle. Specifically, the end-to-end skill for credit assessment modeling has been implemented at scale, compressing the traditional model optimization cycle from 3 to 5 days down to a matter of hours with risk identification accuracy metrics, including model [ AUC ] and [ KS ] scores, significantly outperforming human benchmarks.

Looking ahead, we will focus on building a customer data platform tailored for financial institutions, enabling existing borrower segmentation and targeting capabilities. with full integration into our automated marketing platform, establishing a standardized and scalable framework for technology service delivery.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] In addition, AI applications have been fully embedded into the company's core operational value chain. End-to-end AI coverage has now been implemented in key operational scenarios such as customer service and loan application intake, completely replacing human agents in select functions. On the risk management front, we have developed our proprietary strategy assistance agent by combining large language models with traditional machine learning, driving the upgrade of risk strategy development from expert modeling with manual calculation to AI-assisted expert modeling with automated machine calculation.

Consequently, our risk strategy iteration efficiency has improved by more than tenfold and accuracy in key scenarios has increased by over 20%, benefiting from the workforce efficiency gains brought by AI, we are actively optimizing our organizational structure. AI is evolving from a stand-alone tool into a systemic capability, supporting the company in maintaining operational efficiency and cost competitiveness during this period of business adjustment.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] On the anti-fraud front, during the first half of this year, the industry experienced a rapid evolution of fraudulent and illicit activities in the industry, characterized by sophisticated disguising and masking tactics and showed a clear trend towards organized operations, causing growing losses to institutions across the sector. To address this, we accelerated the iteration of our multimodal risk strategy system to precisely identify behavioral differences between genuine users and proxy-based fraud operations. As of the end of June, we had cumulatively blocked 176,000 malicious applications from fraudulent activities and identified and intercepted more than 264,000 high-risk repeat fraud applications, effectively intercepting fraudulent agent-initiated complaints and safeguarding the interest of institutional partners and borrowers.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] In light of the uncertain macroeconomic operating environment and the current strategic development priorities, the company has decided to refrain from issuing guidance for the third quarter and to suspend our dividend for this fiscal year. By maintaining flexibility in our capital allocation and operational pace, we will focus internal resources on business transformation and risk mitigation. Notably, as of the end of the second quarter, the company's cash and cash equivalents increased to RMB 504 million. providing a strong financial buffer to navigate through the industry cycle and ensure sound future development.

Dinggui Yan: [Foreign Language]

Unknown Executive: [Interpreted] With that, I will now turn the call over to our CFO, Mr. Fan Chunlin. Please go ahead.

Chunlin Fan: Thank you, Mr. Yan, and hello, everyone. Thank you 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 earlier, we remained disciplined in our execution during the second quarter and delivered transaction volume in line with our previous guidance. Transaction volume was CNY 9.5 billion, representing a decrease of 74.4% from the same period of 2025. Our net revenue was CNY 636.9 million, representing a decrease of 60.9% from the same period of 2025. Moving on to costs.

Facilitation and servicing expense was CNY 549.3 million, representing an increase of 92.7% from the same period of 2025, primarily due to the increase in average outstanding loan balance for which the company provided guaranteed services. Allowance for uncollectible receivables, contract assets, prepaid expenses and other current assets and others was CNY 51.3 million compared with CNY 32.5 million for the same period of 2025, primarily due to increased guarantee services the company provided. Sales and marketing expense was CNY 221.8 million, representing a decrease of 68.8% from the same period of 2025, primarily due to decreased borrower acquisition expenses and commission expenses.

General and administrative expense was CNY 66.9 million representing a decrease of 39.5% from the same period of 2025, primarily due to a decrease in share-based compensation. R&D expense was CNY 94.2 million, representing a decrease of 13.1% from the same period of 2025, primarily due to a decrease in share-based compensation. Non-GAAP loss from operations was CNY 225.7 million compared with CNY 737.6 million non-GAAP income from operations in the same period of 2025. Consequently, our net loss for the second quarter was CNY 183.6 million compared with CNY 519.1 million net income in the same period of 2025.

Our basic and diluted net loss per share was CNY 0.89 compared with CNY 2.46 basic and diluted net income per share in the second quarter of 2025. Basic and diluted net loss per ADS was CNY 3.56 compared with CNY 9.84 basic and diluted net income per ADS in the second quarter of 2025. Each ADS represents 4 Class A ordinary shares of the company. We ended this quarter with CNY 504 million in cash and cash equivalents compared with CNY 43.4 million at the end of the previous quarter. With that, we can open the call for questions. Operator, please proceed.

Operator: [Operator Instructions] There are no questions. I will return the call to Sam for closing remarks. Please go ahead.

Unknown Executive: 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 our progress.

Operator: Thank you all again. This concludes the call. You may now disconnect. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]