Jiayin Group Inc (JFIN) 2024 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by and welcome to Jiayin Group fourth quarter 2024 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. Shawn Zhang from Investor Relations of Jiaying Group. Please go ahead.

女士們、先生們，大家好。感謝您的支持，歡迎參加嘉銀集團 2024 年第四季財報電話會議。（操作員指示）提醒一下，我們正在錄製今天的通話。如果您有任何異議，您可以立即斷開連接。現在我將電話轉交給嘉盈集團投資者關係部門的張肖恩先生。請繼續。

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 fourth quarter and full year of 2024. We released our earning 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; Mr. Fan Chunlin, Chief Financial Officer; and Ms. Xu Yifang, Chief Risk Officer.

謝謝您，接線生。大家好。感謝大家參加今天的電話會議，討論嘉銀集團 2024 年第四季和全年的財務表現。我們今天早些時候公佈了盈利結果。新聞稿可在該公司網站以及新聞通訊社查閱。今天與我一起參加電話會議的有執行長嚴定貴先生；範春林先生，財務長；首席風險官徐以芳女士。

Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risk and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. For the information regarding this and other risks and uncertainties, it is included in the company's public filings with the SEC.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人安全訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，該公司的實際業績可能與今天表達的預期有重大差異。有關此風險和其他風險和不確定性的資訊已包含在公司向美國證券交易委員會提交的公開文件中。

The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese Renminbi.

除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。另請注意，除非另有說明，電話會議中提到的所有數字均以人民幣為單位。

With that, let me now turn the call over to our CEO, Mr. Yan Dingui. Mr. Yan will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

現在，請允許我將電話轉給我們的執行長嚴丁貴先生。閻先生將用中文發表講話，我會隨後提供相應的英文翻譯。嚴先生，請講。

(spoken in foreign language)

（用外語說）

In 2024, China's macroeconomic demonstrated steady growth with consumer credit demand rising steadily, supported by consumer stimulus policies. Overall, for the year, consumer credit grew by RMB1.24 trillion, reflecting a 6.2% year-over-year increase.

2024年，中國宏觀經濟呈現穩定成長態勢，在消費刺激政策的支持下，消費信貸需求穩定上升。全年消費信貸新增1.24兆元，年增6.2%。

The year also marked a significant milestone for Jiayin as a strengthened its strategic positioning and achieved high-quality development. The company pursued a strategy of steady progress driven by technology expanding incrementally well, carefully managing risks. In Q4 2024, the company facilitated loan transactions totaling RMB27.7 billion, 37.8% year-over-year increase with low facilitation service revenue reaching RMB1.1 billion, up 46.3% year over year. The company's business goal grew steadily each quarter, consistently setting new records. The total loan facilitation volume for the year exceeded RMB100 billion, marking an important business milestone.

這一年對嘉銀來說也是一個重要的里程碑，因為它強化了戰略定位並實現了高品質發展。公司奉行以技術為驅動、穩定發展的策略，逐步擴張，謹慎管理風險。2024年第四季，公司促成貸款交易總額277億元，年增37.8%，其中低融通服務收入11億元，較去年同期成長46.3%。公司的業務目標每季都穩定成長，不斷創下新的紀錄。全年貸款促成量突破1000億元，邁向重要業務里程碑。

(spoken in foreign language)

（用外語說）

Thanks to diverse borrower acquisition channels and flexible marketing strategies, the company has significantly improved its borrower acquisition efficiency. In 2024, the company added 2.774 million new borrowers, representing a year-over-year growth of 45.1%. Regarding borrower retention, we implemented a refined stratification mechanism, applying differentiated create growth strategies. The company's annual retention rate increased by approximately 7%. We pay particular attention to potential (technical difficulty) users and effectively improved their retention rate nearly 75%.

由於多樣化的借款人獲取管道和靈活的行銷策略，公司借款人獲取效率顯著提升。2024年，公司新增借款人277.4萬戶，年增45.1%。在藉款人留存方面，我們實施精細化的分層機制，實施差異化的成長策略。該公司的年留存率增加了約7％。我們特別關注潛在（技術難度）用戶，有效提高了他們的留存率近75%。

Additionally, we continue to expand a high-quality and sustainable network of institutional partnerships. During 2024, we maintained in-depth cooperative relationships with a total of 73 financial institutions. We also actively explored innovative and diverse business models in areas such as auto-backed loans and loans for small and micro businesses. We remain committed to achieving win-win collaborations. With financial institutions fostering the diversification of consumer credit products and scenarios.

此外，我們持續擴大高品質、永續的機構合作夥伴網絡。2024年，我們共與73家金融機構維持了深入的合作關係。在汽車抵押貸款、小型企業貸款等領域積極探索創新多元的商業模式。我們始終致力於實現合作共贏。金融機構推動消費信貸產品和場景多樣化。

(spoken in foreign language)

（用外語說）

In response to the rapid growth of new borrower groups and strong credit demand, the company has consistently adhered to a prudent risk control strategy while adjusting credit limits as needed. We closely monitor changes in risk data and implement more flexible transaction strategies.

針對新增借款人群體的快速成長和強勁的信貸需求，公司始終堅持審慎的風險控制策略，適時調整授信額度。我們密切監控風險數據的變化，並實施更靈活的交易策略。

By integrating new external data sources and combining them with deep analysis of internal borrower behavior, we continuously iterate and enhance our risk control models. In Q4, delinquency rate for loans overdue for from 61 to 90 days dropped to 0.53%, representing a significant improvement compared with the same period a year earlier.

透過整合新的外部資料來源，並結合對內部借款人行為的深入分析，我們不斷迭代並增強我們的風險控制模型。四季度，逾期61至90天貸款拖欠率下降至0.53%，較去年同期明顯改善。

Furthermore, through our AI-powered self-developed risk control platform, we have established a comprehensive digital anti-fraud defense system. Throughout the year, we identified and intercepted more than 500 -- [540,000] high risk habitual fraud applications and blocked 468,000 malicious attacks from illicit activities. These results demonstrate that we are collectively building a full process digital and collaborative risk control network for giant technology.

此外，我們透過自主研發的人工智慧風險控制平台，建立了全面的數位反詐騙防禦體系。全年共識別並攔截高風險慣性詐騙應用500餘個（54萬餘個），阻斷各類惡意攻擊46.8萬次。這些成果表明，我們正在共同建構巨無霸科技的全流程數位化、協同化風控網絡。

(spoken in foreign language)

（用外語說）

With the internal development of technology and the effective progress of external large models, we continue to expand the application and empowerment of AI in business areas such as customer services, risk control, and marketing. For instance, our new (inaudible) agent assistance system provides real-time tech reminders and a script recommendations for customer services staff, achieving an accuracy rate of 90% and reducing the quality inspection error rate by more than 5% after empowering the system.

隨著內部技術的開發和外部大模型的有效進步，我們不斷拓展AI在客服、風控、行銷等業務領域的應用與賦能。例如，我們新的（聽不清楚）座席協助系統為客服人員提供即時技術提醒和腳本推薦，上線後準確率達90%，質檢錯誤率降低5%以上。

We have also integrated an AI-based image regulation system into the risk control process, quickly enhancing the efficiency and accuracy of document and credential regulation. In marketing, we have implemented a multimodal model based on speech and images to ensure an AI intelligent review of marketing graphics, text, and video content.

我們將基於人工智慧的影像監管系統融入風控流程，快速提升證件監管的效率與準確性。在行銷方面，我們實現了基於語音和圖像的多模態模型，確保行銷圖形、文字和視訊內容的AI智慧審核。

Additionally, we have completed the private deployment of the advanced large language model [Deep Seek R1]. In 2025, we expect to accelerate its application in core business areas, such as risk management, data science, and customer services, driving structural breakthroughs in enterprise efficiency.

此外，我們也完成了高階大型語言模型的私人部署[深度探索 R1]。2025年，我們預期加速其在風險管理、資料科學、客戶服務等核心業務領域的應用，並推動企業效率的結構性突破。

(spoken in foreign language)

（用外語說）

Overseas business expansion has always been a key strategic focus for us. In Q4 2024, our business partners in Indonesia saw a 74% year-over-year increase in low volume. At the same time, the number of registered users grew by 131% year over year. Maintaining strong growth momentum, we also established a partnership with a leading local financial institutions and are in discussions with five other potential partners.

海外業務拓展一直是我們的重要策略重點。2024 年第四季度，我們在印尼的業務合作夥伴的低銷量較去年同期成長了 74%。同時，註冊用戶數量較去年同期成長131%。在保持強勁成長勢頭的同時，我們也與當地一家領先的金融機構建立了合作夥伴關係，並正在與其他五家潛在合作夥伴進行洽談。

In the Mexican market, we continue to work closely with local regulatory authorities. As a result, we have significantly optimized risk indicators and improved profitability. With ongoing improvements in operational capabilities and market penetration, we aim to strengthen our competitive position in the overseas market.

在墨西哥市場，我們繼續與當地監管機構密切合作。由此，我們顯著優化了風險指標，並提高了獲利能力。隨著營運能力和市場滲透率的不斷提高，我們的目標是加強在海外市場的競爭地位。

(spoken in foreign language)

（用外語說）

In 2024, the company actively advanced industry academia research collaboration, working with institutions such as Shanghai Jiao Tong University, Xi'an Jiaotong University, and Jilin University to explore the application of cutting-edge AI technologies in the financial sector. In partnership with Shanghai Financial Information Industry Association, we also published the Shanghai Financial Information Industry Development Report highlighting industry development trends and pathways. Additionally, the company's youth mental health care initiative reached over 1,500 schools across eight provinces and municipal municipalities nationwide.

2024年，本公司積極推動產學合作，與上海交通大學、西安交通大學、吉林大學等院校合作，探索前沿人工智慧技術在金融領域的應用。我們也與上海市金融資訊產業協會合作發布了《上海市金融資訊產業發展報告》，重點介紹了產業發展趨勢和路徑。此外，該公司的青少年心理健康關懷計劃已涵蓋全國八個省和直轄市的 1,500 多所學校。

Providing psychological assessment and counseling to more than 50,000 teachers and students, this project was awarded as an annual public welfare innovation typical case by China National Radio Network. Looking ahead, we will continue to drive industry development through technological innovation and give back to society with concrete actions, reaffirming the trust placed in us.

該計畫為5萬名師生提供了心理評估與輔導，並被中央人民廣播電台評為年度公益創新典型案例。展望未來，我們將繼續以技術創新驅動產業發展，以實際行動回饋社會，不辜負社會對我們的信任。

(spoken in foreign language)

（用外語說）

Regarding shareholder returns, the company distributed a total dividend of USD0.5 per ADS in 2024, totaling USD26.6 million. In appreciation of the strong support and trust from our investors, the company will further enhance shareholder returns.

股東報酬方面，公司2024年共發放股利每股ADS0.5美元，共2,660萬美元。為答謝廣大投資人的大力支持與信賴，公司將進一步提升股東回報。

Starting in 2025, we plan to declare and distribute a cash dividends once per fiscal year, with the total amount increasing from no less than 15% of the previous fiscal year's net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. In this way, we intend to continue sharing the long-term benefits from the company's high quality development.

自2025年起，我們計劃每個會計年度宣派及分配一次現金分紅，總額由不低於上一會計年度稅後淨利潤的15%增至上一會計年度稅後淨利潤的約30%。以此，我們願繼續分享公司高品質發展的長期利益。

(spoken in foreign language)

（用外語說）

Looking ahead to 2025, macroeconomic policies are expected to provide stronger support for consumer credit. Recently, the National Financial Regulatory Administration issued the notice on developing consumer finance to boost consumption, which includes several key areas such as increasing the supply of consumer credit, diversifying, consumer credit products, and optimizing loan repayment methods.

展望2025年，宏觀經濟政策可望為消費信貸提供更有力的支持。近日，國家金融監督管理委員會印發了《關於大力發展消費金融促進消費的通知》，其中重點提到增加消費信貸供給、豐富消費信貸產品、優化貸款償還方式等幾個面向。

We believe these robust policy measures will instill confidence and drive momentum in the development of consumer credit industry. In line with the company's current growth trajectory, we remain optimistic about the company's business expansion and profitability in 2025 and have set the loan facilitation volume target range at RMB137 billion to RMB142 billion for the year. In the first quarter, our loan facilitation volume target is RMB35 billion, and the non-GAAP income from operation target is set at RMB0.57 to RMB0.63 billion.

我們相信這些強而有力的政策措施將為消費信貸產業的發展注入信心、帶來動力。根據公司目前的成長軌跡，我們對公司2025年的業務擴張和獲利能力保持樂觀，並將全年貸款促成量目標區間設定為1,370億元至1,420億元人民幣。一季度，我們的貸款促成量目標為350億元，非美國通用會計準則營業利潤目標設定為5.7億至6.3億元。

(spoken in foreign language)

（用外語說）

With that, I'll turn the call over to our CFO, Mr. Fan Chu Ying. Please go ahead.

說完這些，我將把電話轉給我們的財務長範楚英先生。請繼續。

Thank you, Mr. Yan, and hello, everyone, 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 our percentage changes refer to year over year comparisons unless otherwise noted.

謝謝嚴先生，大家好，歡迎參加今天的電話會議。我現在將回顧本季的財務亮點。請注意，所有數字均以人民幣為單位。除非另有說明，我們的百分比變化是指同比變化。

As Mr. Yan mentioned earlier, building on our strong momentum, we kept the year with a record-breaking long facilitation volume. Notably, loan facilitation volume in Q4 was RMB27.7 billion. Representing an increase of 37.8% from the same period of 2023. Our net revenue was RMB1,404.5 million, representing a decrease of 12.2% from the same period of 2023.

正如嚴先生之前提到的，憑藉著強勁的發展勢頭，我們在今年創下了長期便利化量的新高。值得注意的是，第四季貸款促成量為277億元。較2023年同期成長37.8%。我們的淨收入為人民幣14.045億元，較2023年同期下降12.2%。

As we mentioned a few times during our earnings release call earlier, the company has been focusing on the loan facilitation services and deliberately downsized the financial guarantee service. If we dive deeper into the breakdown of the revenue, revenue from our loan facilitation services was RMB1,124 million, representing an increase of 46.3% from the same period of 2023. The decline of the total revenue was primarily due to the significant decrease in revenue from releasing of guarantee liabilities as a result of the company's strategic focus throughout the year 2024.

正如我們之前在收益發布電話會議上多次提到的那樣，該公司一直專注於貸款便利服務，並有意縮減了財務擔保服務。如果我們深入研究收入的細分，我們的貸款促成服務收入為人民幣11.24億元，較2023年同期成長46.3％。總收入的下降主要是由於公司2024年全年策略重點的調整導致解除擔保責任收入大幅減少。

Moving on to costs. Facilitation and servicing expense was RMB339.3 million, representing a decrease of 59.5% from the same period of 2023. This was primarily due to decreased expenses related to financial guarantee services.

繼續討論成本。手續費及服務費為人民幣3.393億元，較2023年同期下降59.5%。這主要是由於與財務擔保服務相關的費用減少。

Allows for uncredible receivables, assets, loan receivable, and other was RMB1.2 million primarily due to the net impact of current period provisions and the reversal of allowance for receivables arising from a low expected credit loss rate.

不可信應收帳款、資產、應收貸款及其他的準備金為人民幣 120 萬元，主要由於本期撥備的淨影響以及預期信用損失率較低而產生的應收帳款撥備轉回。

Sales and marketing expense was RMB517.2 million, representing an increase of 57% from the same period of 2023, primarily due to an increase in borrower acquisition expenses. G&A expense was RMB53.7 million, representing a decrease of 17.6% from the same period of 2023, primarily driven by a decrease in employee costs. R&D expense was RMB10.4 million, representing an increase of 8.1% from the same period of 2023, primarily due to the increase in the number of our research and development personnel.

銷售及行銷費用為人民幣5.172億元，較2023年同期成長57%，主要由於借款人獲取費用增加。一般及行政費用為 5,370 萬元，較 2023 年同期下降 17.6%，主要由於員工成本下降。研發費用為人民幣1,040萬元，較2023年同期成長8.1%，主要由於我們研發人員數量的增加。

Non-GAAP income from operation was RMB402.4 million, representing an increase of 67.9% from RMB239.7 million in the same period of 2023. Consequently, our net income for the fourth quarter was RMB275.5 million, representing a decrease of 25.1%. This was primarily due to the higher base resulting from a one-off non-operational income in the same period of 2023.

非美國通用會計準則營業利潤為人民幣4.024億元，較2023年同期的人民幣2.397億元成長67.9%。因此，我們第四季的淨利潤為人民幣2.755億元，下降25.1%。這主要是由於2023年同期一次性非營業收入導致基數較高。

Our basic and diluted net income per share was 1.3% compared with 1.72% in the fourth quarter of 2023. Basic and diluted net income for ADS was [5.2] compared with 6.88 in the fourth quarter of 2023. We ended this quarter with RMB540.5 million in cash and cash equivalent compared with RMB741.2 million at the end of the previous quarter.

我們的每股基本和稀釋淨利潤為 1.3%，而 2023 年第四季為 1.72%。ADS 基本及攤薄淨利為 [5.2]，而 2023 年第四季為 6.88。本季末，我們的現金和現金等價物為人民幣 5.405 億元，而上一季末為人民幣 7.412 億元。

With that, we can open the call for questions. Ms. Xu, our Chief Risk Officer, and I will answer your questions, operator, please.

這樣，我們就可以開始提問了。請接線員，我們首席風險官徐女士和我將回答您的問題。

(Operator Instructions)

（操作員指示）

Rong Zhao, TF Securities.

趙榮，天風證券。

(spoken in foreign language)

（用外語說）

So I have noticed a significant slowdown in the company's revenue growth in 2024. Is this a short term adjustment or long term trend? Could the management share the business expansion plans and performance outlook for 2025?

因此我注意到該公司2024年的營收成長明顯放緩。這是短期調整還是長期趨勢？管理階層能否分享2025年的業務擴展計畫和業績展望？

Thank you.

謝謝。

(spoken foreign language)

（口語外語）

This is Shawn Zhang, and I will do the translations for the management. So our current revenue structure primarily consists of two major components, which are loan facilitation revenue and guarantee service revenue.

我是 Shawn Zhang，我將為管理階層做翻譯。因此，我們目前的收入結構主要由兩大部分組成，即貸款便利收入和擔保服務收入。

The company's strategy for the year of 2024 focuses on the high-quality growth of facilitation service revenue, which represents our core competency and maintains a stable rate. Revenue related to guarantees services has lower profit margins, and we have been strategically reducing its proportion over the past few quarters. In terms of revenue contribution, the share of facilitation service revenue increased from 48% in Q4 2023 to 80% in Q4 2024.

公司2024年的策略重點是實現便利化服務收入的高品質成長，這是我們的核心競爭力，並且保持穩定的成長速度。擔保服務相關收入的利潤率較低，過去幾季我們一直在策略性地降低其比例。在營收貢獻方面，便利服務收入佔比從 2023 年第四季的 48% 增加到 2024 年第四季的 80%。

Well, the share of the revenue related to guarantee business decreased from 4141.8% in Q4 2023 to 11% in Q4 2024. This shifts in revenue structure aligns with our strategic goal of high quality growth.

與擔保業務相關的收入份額從 2023 年第四季的 4141.8% 下降到 2024 年第四季的 11%。收入結構的轉變符合我們高品質成長的策略目標。

(spoken foreign language)

（口語外語）

So based on this strategical focus, the overall revenue in the year of 2024 slows down, and the revenue for the fourth quarter even slightly declined year over year, mainly due to the decrease in revenue related to guarantee business.

所以基於這個策略重點，2024年整體營收成長放緩，第四季收入甚至比去年同期略有下降，主要原因是擔保業務相關收入的減少。

However, if we focus on our core business, which is facilitation service revenue, it reached RMB1.124 billion in the fourth quarter, representing a year-over-year growth of 46.3%, which is even slightly higher than the growth rate of the facilitation volume. For the full year, facilitation revenue total RMB4.01 billion, reflecting a year over year increase of 15%, which also aligned with the annual growth rate of our facilitation volume.

但如果看我們的核心業務，也就是便利化服務收入，第四季達到11.24億元，年增46.3%，甚至略高於便利化業務量的成長速度。全年實現便利化收入40.1億元，較去年成長15%，與便利化業務量的年增長率一致。

(spoken foreign language)

（口語外語）

If we compare with the performance in the past few years, the year of 2024 does have a year of relatively slow performance growth for our company. In particular, during the first half of 2024, we adopted a prudent operation strategy that began in Q4 2023 due to macroeconomic considerations.

如果和過去幾年的業績對比的話，2024年確實是我們公司業績成長比較緩慢的一年。特別是在2024年上半年，出於宏觀經濟的考慮，我們採取了從2023年第四季開始的審慎經營策略。

However, starting from the second quarter of 2024, especially in the second half of the year with the gradual improvement in risk data and positive macroeconomic changes, we gradually resume a faster growth pace. Our operational data shows that facilitation volume continue to grow sly each quarter.

但從2024年第二季開始，特別是下半年隨著風險數據的逐步改善和宏觀經濟的積極變化，我們逐步恢復較快的成長步伐。我們的營運數據顯示，便利化量每季持續緩慢成長。

Notably, both the third quarter and fourth quarter achieved record high facilitation volumes for two consecutive quarters. We also implemented an aggressive strategy for acquiring new borrowers, laying a solid foundation for accelerated growth in the coming years.

值得注意的是，第三季和第四季均連續兩季實現了便利化量的歷史新高。我們也實施了積極的獲取新借款人的策略，為未來幾年的加速成長奠定了堅實的基礎。

(spoken foreign language)

（口語外語）

In the year of 2025, we will continue to pursue a high-quality growth strategy. And just as Mr. Yan said that we expected the facilitation volume guidance in the first quarter to be around RMB35 billion, representing a year over year increase of about 55%. And for the full year, we project a facilitation volume of RMB137 billion to 142 billion, reflecting a year-over-year growth of about 36% to 41%.

2025年，我們將繼續推動高品質發展策略。正如閻總所說，我們預期第一季的便利化額度指引在350億元左右，年增55%左右。預計全年便利化額將達到人民幣1,370億元至1,420億元，年增約36%至41%。

(spoken foreign language)

（口語外語）

That will be my answer to your question, general.

將軍，這就是我對您問題的回答。

(spoken foreign language)

（口語外語）

(spoken in foreign language)

（用外語說）

so what plans and investments does company currently have in technology, and talent cultivation and, how does company ensure it maintains a leading position in technology? Thank you.

那麼公司目前在技術、人才培育上有哪些規劃和投入，如何確保公司在技術上保持領先地位？謝謝。

(spoken foreign language)

（口語外語）

Okay, I'm Xu Yihong, and, I will answer your question in Chinese, and Shawn will do the translation in English.

好的，我是徐一紅，我會用中文回答你的問題，Shawn 會用英文翻譯。

(spoken foreign language)

（口語外語）

Okay, so I will do the translation for this part first. So as a technology company, we have always been committed to leveraging technologies and data to connect and and consumers and licensed financial institutions through mobile internet, driving refined operations and risk measurements. And since the beginning of 2025, we have seen that Deepig is leading the AI revolution and accelerating the industry's AI transformation.

好的，那我先翻譯這部分。所以作為一家科技公司，我們一直致力於利用科技和數據，透過行動互聯網連結消費者和持牌金融機構，推動精細化營運和風險衡量。而從2025年開始，我們看到Deepig正在引領AI革命，加速產業的AI轉型。

(spoken foreign language)

（口語外語）

Okay, so just as what I said before that we have increased investment and deployment in the AI transformation direction. So first part of the is we have increased the investment in big data and and artificial intelligence. So at the end of the last year, we completed a comprehensive upgrade of our corporate architecture and strategic positioning. We conducted a thorough review of both our front end and the middle-office operations and initiated the deployment of multi-node AI agents, advancing unified one stop intelligence solutions.

好的，就像我之前說的，我們在AI轉型方向加大了投入與部署。首先，我們增加了對大數據和人工智慧的投資。所以在去年年底，我們完成了企業架構和策略定位的全面升級。我們對前中台業務進行了全面梳理，啟動多節點AI智能體的部署，推進統一的一站式智慧解決方案。

(spoken foreign language)

（口語外語）

So through our organizational support and increased investment, we are strengthening the automation capabilities across the entire data life cycle from the production and mining to application monitoring and iteration. We are empowering all data and technology personnel with AI driven tools.

因此，透過我們的組織支持和增加投資，我們正在加強從生產和挖掘到應用程式監控和迭代的整個資料生命週期的自動化能力。我們正在為所有數據和技術人員提供由人工智慧驅動的工具。

(spoken foreign language)

（口語外語）

We are also exploring lightweight AI application in control process, and we are actively researching and deploying AI solutions in risk management, integrating artificial intelligence with accumulated professional expertise. This dual approach, reinforce our competitive advantage and builds a robust professional mode in the increasingly competitive consumer credit market. And that will conclude my answer for your question.

我們也正在探索輕量級AI在管控流程中的應用，並積極研究和部署風險管理領域的AI解決方案，將人工智慧與累積的專業知識結合。這種雙重方法增強了我們的競爭優勢，並在競爭日益激烈的消費信貸市場中建立了強大的專業模式。這就是我對你的問題的回答。

(spoken foreign language)

（口語外語）

(spoken foreign language)

（口語外語）

[Huong]

[香]

(spoken foreign language)

（口語外語）

Hello Man. This is [Huong from Jingyu USA] I have two questions. The first one is we have noticed a decline in the company's night income in 2024. What are the main reasons for this? Does the management believe there are Issue with cost control and are there any plans for improvement in the future? My next question is in 2025, how does the company plan to optimize borrower experience to increase their loyalty? Additionally, does the company have plans to attract new borrower groups? Thank you.

你好，夥計。我是[來自美國 Jingyu 的 Huong] 我有兩個問題。第一個是我們注意到2024年公司的夜間收入有所下降。造成這種情況的主要原因是什麼？管理階層是否認為成本控制有問題？未來是否有改進計畫？我的下一個問題是，到 2025 年，公司計劃如何優化借款人體驗以提高他們的忠誠度？此外，該公司是否有計劃吸引新的借款人群體？謝謝。

(spoken foreign language)

（口語外語）

Okay. So I will answer your first question about our net income and cost. So in the year of 2024, the company's net income was RMB1.056 billion, with a net margin of about 18.2%. and it has a decrease of RMB $240 million compared with the RMB1.2, RMB1.297 billion in the 2023. And so I think there are -- so the year-over-year decline in our net income is mainly due to three reasons.

好的。因此，我將回答您關於我們的淨收入和成本的第一個問題。那麼2024年，公司的淨收入為10.56億元人民幣，淨利率約為18.2%。較2023年的12億元、12.97億元減少2.4億元。所以我認為——我們的淨收入年減主要有三個原因。

The first reason is our one-time non-operating income which happens in the fourth quarter of 2023. So in the fourth quarter of 2023, our company recorded approximately RMB280 million in the one-time non-operating income from a business disposal, which is the main reason for that, decrease CNY.

第一個原因是我們的一次性非營業收入，發生在2023年第四季。所以2023年第四季度，我們公司錄得一次性業務處置營業外收入約2.8億元人民幣，這是減少人民幣的主要原因。

(spoken foreign language)

（口語外語）

So the second reason is about our increase borrow acquisition efforts in the year of 2024. Jiayin significantly increase our borrow acquisition activities in 2024, leading to a higher relative costs, including borrow acquisition and credit report expenses. Marketing expenses rose by RMB375 million compared to 2023.

第二個原因是我們在 2024 年增加借貸收購力道。嘉銀在 2024 年大幅增加了借款收購活動，導致相對成本增加，包括借款收購和信用報告費用。行銷費用較2023年增加3.75億元。

As a result, a new borrower accounted for 33.2% of the total borrower base, with RMB2.774 million new borrowers added throughout the year, which is a year-over-year increase of over 45%. And the third reason I want to share is about the higher R&D expenses. So in the year of 2024, R&D expenses increased by more than RMB76 million which has a 25.7% rise year over year. And this increase was driven by the company's strategic focus on recruiting AI professionals and developing new systems and applications to improve operational efficiency and enhance our users experience.

新增借款人佔33.2%，全年新增借款人277.4萬元，較去年同期成長超過45%。我想分享的第三個原因是研發費用較高。因此2024年研發費用增加7,600多萬元，年增25.7%。這一增長是由於公司策略重點是招募人工智慧專業人員並開發新系統和應用程式以提高營運效率並增強用戶體驗。

So our strategic investments in the borrow acquisition and technology and also R&D sector are designed to strengthen our long term growth momentum. And so going forward with rapid growth in facilitation volume, effective control of the revenue share from guarantee services and for their implementation of AI applications, our company is that continues, improvements in borrower conversion and retention rates, which will significantly enhance our profitability.

因此，我們在藉款收購、技術和研發領域的策略性投資旨在增強我們的長期成長動能。因此，未來隨著便利化業務量的快速增長、對擔保服務收入份額的有效控制以及人工智慧應用的實施，我公司將繼續提高借款人轉換率和留存率，這將顯著提高我們的獲利能力。

(spoken foreign language)

（口語外語）

You probably also noticed from what Mr. Yan just said before that starting in the year of 2025. So in addition to providing facilitation volume guidance, we will also offer a profit metric. During each earning release, we will provide a forecast for the next quarter's non-GAAP income from operations, which could reflect the our company's core business profitability most accurately.

大家可能也注意到了剛才闍先生說的是從2025年開始。因此，除了提供便利量指導外，我們還將提供利潤指標。在每次發布財報時，我們都會對下一季的非公認會計準則營業利潤做出預測，這能夠最準確地反映我們公司核心業務的獲利能力。

(spoken foreign language)

（口語外語）

So our company's fourth quarter performance has already provided a preliminary validation of this strategy. So in the fourth quarter, our non-gap income from operations reached RMB402 million, showing significant growth both year-over-year and quarter-over-quarter. We expect non-GAAP income from operations for the first quarter of 2025 to be in the range of RMB570 million to RMB630 million, representing a year-over-year increase of from 80% to 99%.

所以我們公司第四季的業績已經對這個策略進行了初步驗證。因此，第四季我們的非缺口營業收入達到4.02億元人民幣，年比和季比均有顯著成長。我們預計2025年第一季非公認會計準則營業利潤將介於人民幣5.7億元至人民幣6.3億元之間，年增80%至99%。

(spoken foreign language)

（口語外語）

So our performance guidance sends two clear signals. First, in terms of our business goal, we are returning to a path of high quality and a rapid growth. And second, in terms of profitability, we are highly confident in achieving significant improvements in the year of 2025.

因此，我們的業績指引發出了兩個明確的訊號。第一，從經營目標來看，我們正在重回高品質、快速成長的軌道。第二，在獲利能力方面，我們非常有信心在2025年達到顯著的提升。

(spoken foreign language)

（口語外語）

So I want to recall that we are increasing our -- so we are increasing our dividend policy from no less than 15% of the previous fiscal year net profit after tax to approximately 30% of the previous fiscal year's net profit after tax. So in this way we are -- we would like to continue to sharing the long-term profit benefits of the company's high-quality development.

所以我想提醒大家，我們正在提高我們的股利政策，從不低於上一財年稅後淨利的 15% 提高到上一財年稅後淨利的約 30%。所以我們希望透過這種方式繼續分享公司高品質發展帶來的長期利潤利益。

(spoken foreign language)

（口語外語）

Okay, so that will be my answer to your first question. I will give the second question to Mr. Xu -- to Miss Xu.

好的，這就是我對你第一個問題的回答。第二個問題我交給徐先生、許小姐。

(spoken foreign language)

（口語外語）

Okay. So, thank you, Mr. Fan. So usually, people focus heavily on the financial attributes of the consumer credit, emphasizing the professionalism and capability of risk management, which is very important for our industry, but while, overlooking the consumer product aspect of consumer credit.

好的。所以，謝謝你，范先生。所以通常人們都把重點放在消費信貸的金融屬性上，強調專業性和風險管理能力，這對我們這個行業來說非常重要，但是卻忽略了消費信貸的消費產品層面。

Ultimately, the borrower needs to be willing to pay and to recognize the value which strengthen our borrower retention. So in this regard, we focus on the entire industry chain and the products, process to enhance borrow stiffness for example.

最終，借款人需要願意支付並認可加強我們借款人保留的價值。因此在這方面，我們將重點放在整個產業鏈和產品、流程，以增強借力剛度。

(spoken foreign language)

（口語外語）

Okay. So I will give four examples under this case. First is that we are strengthening cooperation with some popular traffic platforms. We could provide borrowers who have experienced our products before with better offerings and experience.

好的。因此我將針對這個案例給出四個例子。第一是我們正在加強與一些熱門流量平台的合作。我們可以為之前體驗過我們產品的借款人提供更好的服務和體驗。

Second is to improve the, so internally improve the simple connection. Between the marketing and risk control approval process. And third is, we would like to enhance the customer service, membership of benefits, and repayment reminders to improve the experience and privileges from our premium borrowers. And fourth, we would like to implement one stop credit services to allow our borrower to access multiple funding sources and even experiencing multi-platform credit solutions.

第二是改進，所以從內部改進簡單的連接。介於行銷和風險控制審批流程之間。第三，我們希望加強客戶服務、會員福利和還款提醒，以改善優質借款人的體驗和特權。第四，我們希望實現一站式信貸服務，讓我們的借款人獲得多種資金來源，甚至體驗多平台信貸解決方案。

(spoken foreign language)

（口語外語）

Another very important point is that we would like to integrate the whole industry ecosystem through innovative business models focusing on our core borrowers and driving the borrower base towards better pricing structures.

另一個非常重要的一點是，我們希望透過創新的商業模式整合整個產業生態系統，專注於我們的核心借款人，並推動借款人群體走向更好的定價結構。

(spoken foreign language)

（口語外語）

So lastly, about our new borrower groups, we continue to adhere to our existing market positioning, while constantly pursuing the acquisition and retention of our high quality borrowers. So this approach enabled us to achieve a diversified layout across products, borrowers and financial institutions.

最後，關於我們的新借款人群體，我們將繼續堅持現有的市場定位，同時不斷追求獲取和留住高品質的借款人。所以這種方式讓我們實現了跨產品、跨借款人、跨金融機構的多元化佈局。

(spoken foreign language)

（口語外語）

Okay. Thank you, Juan. That will conclude my answer to your question.

好的。謝謝你，胡安。這就是我對你的問題的回答。

Thank you. Seeing no more questions, I will return the call to Shawn for closing remarks. Please go ahead.

謝謝。如果沒有其他問題，我將回電給肖恩，請他做最後陳述。請繼續。

Thank you, operator, and thank you all for participating on today's call and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

謝謝接線員，也謝謝大家參加今天的電話會議，謝謝大家的支持。我們感謝您的關注，並期待下個季度再次向您報告我們的進展。

Thank you all again. This concludes the call. You may now disconnect.

再次感謝大家。通話到此結束。您現在可以斷開連線。