Detailed narrative
Industry Contraction and Strategic Adjustment
The company faced significant industry headwinds🌐, including a RMB 190 billion decrease in short-term household consumer loans in China and a cautious approach from institutional funding partners. In response, Jiayin Group proactively reduced risk exposure, mitigated portfolio risk, and concentrated on high-quality borrowers, leading to a 74.4% YoY decrease in transaction volume to RMB 9.5 billion and a net loss of RMB 180 million.
International Business Expansion
International operations are a key strategic pillar. In Q2, Indonesian partners' business volume grew 58% YoY and 10% QoQ, driven by improved risk strategy and customer acquisition efficiency. Mexico's business volume increased 36% QoQ with enhanced borrower acquisition and asset quality. The company plans to deepen its presence in Southeast Asia and prudently explore East Africa and Central Asia.
Technology Empowerment and Fuxi Platform
Jiayin is transitioning to a comprehensive technology service provider, accelerating its technology upgrade. The proprietary Fuxi platform completed key development in infrastructure, risk management, and core skills deployment, covering the entire credit life cycle. Its end-to-end credit assessment modeling significantly compressed optimization cycles and outperformed human benchmarks in risk identification accuracy (model AUC and KS scores).
AI Integration and Efficiency Gains
AI applications are fully embedded across core operations, including customer service and loan application intake, replacing human agents in select functions. A proprietary strategy assistance agent, combining large language models with traditional machine learning, improved risk strategy iteration efficiency by over tenfold and accuracy by more than 20%, driving workforce efficiency and cost competitiveness.
Anti-Fraud Initiatives
The company intensified anti-fraud efforts against evolving, sophisticated, and organized illicit activities. By the end of June, Jiayin had blocked 176,000 malicious applications and intercepted over 264,000 high-risk repeat fraud applications in H1 FY26, safeguarding institutional partners and borrowers.
Capital Allocation and Financial Buffer
Amidst an uncertain macroeconomic environment, the company opted to suspend Q3 guidance and the FY26 dividend to maintain capital flexibility and focus on business transformation and risk mitigation. Cash and cash equivalents increased to RMB 504 million, providing a strong financial buffer to navigate the industry cycle.