Jiayin Group Inc.

First-quarter 2026 transaction volume was RMB 19.3 billion, down 45.8% year over year. Net revenue was RMB 756.7 million, down 57.4% year over year. Net loss was RMB 61.7 million, versus net income of RMB 539.5 million in the same period last year; basic and diluted net loss per share were RMB 0.29, and basic and diluted net loss per ADS were RMB 1.16. CFO Fan also cited facilitation and servicing expense of RMB 331.6 million (-1.3% YoY), sales and marketing expense of RMB 340.1 million (-49.6% YoY), G&A of RMB 44.1 million (-16.5% YoY), and R&D of RMB 109.8 million (+24.6% YoY). The company ended the quarter with RMB 43.4 million in cash and cash equivalents, down from RMB 61.8 million last quarter. For Q2 2026, management expects transaction volume of RMB 9.5 billion to RMB 10.5 billion.

Yan Dinggui framed the quarter as one of operating discipline in a still-pressured industry, saying consumer lending remains in an adjustment phase and credit demand recovery is gradual. He emphasized refining the existing high-quality borrower base, building a more diversified product set, expanding overseas, and embedding AI into risk management and operations. His tone was cautious but constructive, with repeated comments about durable competitive moat, structural upgrade, and long-term value from new business lines.

Fan Chunlin focused on the financial impact of the volume decline and cost structure. He said transaction volume fell 45.8% year over year to RMB 19.3 billion and net revenue dropped 57.4% to RMB 756.7 million, while non-GAAP loss from operations was RMB 70.1 million versus non-GAAP income of RMB 606.6 million a year ago. He highlighted lower borrower acquisition spend as a major driver of the 49.6% decline in sales and marketing expense, and noted cash and cash equivalents ended at RMB 43.4 million, down from RMB 61.8 million. Management also said cost control and reduction actions began in Q2 and should improve cash flow and liquidity next quarter.

In Q&A, the first question pressed management on the RMB 61.7 million net loss and how profitability could improve. Yan said the loss was mainly due to a sharp market loan-volume decline after new regulation and borrower-side liquidity stress, plus the fact that loan volume fell faster than costs could be reduced; he added that cost control actions started in Q2 and should help cash flow. On risk trends, Qi Dan said asset quality deterioration has been improving, with new borrower risk peaking in September last year and existing-borrower new-loan risk peaking in November, both trending down since then. She said April-May risk metrics for existing borrowers were about 25%-30% below peak and back to levels seen in May-June last year, while tighter underwriting and shorter tenures for higher-risk borrowers have slowed growth but improved portfolio quality.