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Jiayin Group Inc (JFIN) Q4 2024 Earnings Call Highlights: Strategic Shifts and Growth Prospects

In This Article:

  • Loan Facilitation Volume: RMB27.7 billion in Q4 2024, a 37.8% year-over-year increase.

  • Net Revenue: RMB1,404.5 million, a decrease of 12.2% from Q4 2023.

  • Loan Facilitation Services Revenue: RMB1,124 million, a 46.3% year-over-year increase.

  • Facilitation and Servicing Expense: RMB339.3 million, a decrease of 59.5% from Q4 2023.

  • Sales and Marketing Expense: RMB517.2 million, a 57% year-over-year increase.

  • General and Administrative Expense: RMB53.7 million, a decrease of 17.6% from Q4 2023.

  • Research and Development Expense: RMB10.4 million, an increase of 8.1% from Q4 2023.

  • Non-GAAP Income from Operation: RMB402.4 million, a 67.9% year-over-year increase.

  • Net Income: RMB275.5 million, a decrease of 25.1% from Q4 2023.

  • Cash and Cash Equivalents: RMB540.5 million at the end of Q4 2024.

  • Dividend: USD0.5 per ADS in 2024, totaling USD26.6 million.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Jiayin Group Inc (NASDAQ:JFIN) achieved a significant milestone with a total loan facilitation volume exceeding RMB100 billion in 2024, marking a 37.8% year-over-year increase in Q4.

  • The company added 2.774 million new borrowers in 2024, representing a 45.1% year-over-year growth, and improved its annual retention rate by approximately 7%.

  • Jiayin Group Inc (NASDAQ:JFIN) maintained in-depth cooperative relationships with 73 financial institutions and explored innovative business models, such as auto-backed loans and loans for small and micro businesses.

  • The delinquency rate for loans overdue from 61 to 90 days dropped to 0.53% in Q4, showcasing improved risk management.

  • The company plans to increase its cash dividend distribution to approximately 30% of the previous fiscal year's net profit after tax, enhancing shareholder returns.

Negative Points

  • Jiayin Group Inc (NASDAQ:JFIN) experienced a 12.2% decrease in net revenue in Q4 2024 compared to the same period in 2023, primarily due to a strategic reduction in guarantee service revenue.

  • Net income for Q4 2024 decreased by 25.1% year-over-year, attributed to a higher base from a one-off non-operational income in 2023.

  • The company faced increased sales and marketing expenses, which rose by 57% year-over-year in Q4 2024, driven by higher borrower acquisition costs.

  • Jiayin Group Inc (NASDAQ:JFIN) reported a decrease in cash and cash equivalents, ending Q4 2024 with RMB540.5 million compared to RMB741.2 million at the end of the previous quarter.

  • The company anticipates challenges in maintaining revenue growth due to a strategic focus on high-quality growth and a shift away from lower-margin guarantee services.