[Management View]
Jiayin Group reported a record-breaking Q1 2025, with loan facilitation volume reaching RMB 35.6 billion, a 58.2% YoY increase. Non-GAAP operating profit rose 91.6% YoY to RMB 606.6 million, and net profit surged 97.5% YoY to RMB 539.5 million. The company emphasized strategic marketing investments and AI-driven operational efficiencies as key growth drivers.

[Outlook]
For Q2 2025, Jiayin expects loan facilitation volume between RMB 37 billion and RMB 39 billion, and non-GAAP operating profit between RMB 660 million and RMB 730 million. The company plans to continue expanding its borrower base and enhancing asset quality through AI and strategic partnerships.

[Financial Performance]
Jiayin's Q1 2025 net revenue was RMB 1,775.6 million, a 24.4% increase YoY. The net profit margin improved to 30.4% from 18.5% in Q1 2024. The company added 1.056 million new borrowers, a 126.6% YoY increase, contributing 28.1% to the total loan facilitation volume.

[Q&A Highlights]
Question 1: How has the company's acquisition cost evolved recently, and what measures are in place to mitigate credit risk?
Answer: Jiayin observed a rising trend in customer acquisition costs due to market dynamics and strategic decisions. The company plans to enhance risk modeling and AI applications to improve acquisition and risk cost metrics.

Question 2: How is the company addressing the potential ADR listing risk?
Answer: Jiayin believes the delisting risk is low but is preparing for a potential dual or secondary listing in Hong Kong, ensuring long-term sustainability and shareholder interests.

Question 3: What were the main drivers behind the significant improvement in profitability?
Answer: Profitability was driven by increased loan facilitation volume, optimized revenue structures, and improved operational efficiency through AI investments.

Question 4: How does the company view the new guidelines on loan facilitation in China?
Answer: Jiayin sees the guidelines as regulatory recognition of its business model, promoting financial inclusion and risk control. The company is adapting to meet new standards and enhance growth drivers.

[Sentiment Analysis]
Analysts expressed optimism about Jiayin's strategic growth and profitability improvements. Management conveyed confidence in achieving future targets and adapting to regulatory changes.

[Quarterly Comparison]
| Metric | Q1 2025 | Q1 2024 |
|-----------------------------|---------------|---------------|
| Loan Facilitation Volume | RMB 35.6B | RMB 22.5B |
| Net Revenue | RMB 1,775.6M | RMB 1,426.5M |
| Net Profit | RMB 539.5M | RMB 273.1M |
| Net Profit Margin | 30.4% | 18.5% |
| New Borrowers Added | 1.056M | 0.466M |

[Risks and Concerns]
Rising customer acquisition costs and potential ADR delisting risks were highlighted. Management is addressing these through strategic investments and contingency planning for alternative listings.

[Final Takeaway]
Jiayin Group's Q1 2025 results demonstrate robust growth and profitability, driven by strategic marketing and AI initiatives. The company is well-positioned to navigate regulatory changes and expand its market presence, with a focus on sustainable growth and shareholder value. Management's proactive approach to potential risks and commitment to innovation underscores its confidence in achieving long-term success.