Jiayin Technology (JFIN.US) Holds 500 Million Cash in First Half of Year, Overseas Market Bet Becomes the Key to Breakthrough

According to Zhitong Finance APP, on August 28, Jiayin Group (JFIN.US) released its financial report for the first half of 2026, during which it achieved revenue of 1.494 billion yuan, gross profit of 613 million yuan, and a gross margin of 41.03%.

In 2026, the company initiated a comprehensive strategic upgrade, shifting its growth model from scale-driven to focusing more on quality and efficiency. In the first half of the year, the company accelerated business structure adjustments, effectively reducing risk exposure. In Q2, its 90+ day delinquency rate remained stable at 2.21%. As of June 2026, the company's cash and cash equivalents increased to 504 million yuan.

Jiayin Group Chairman Yan Dinggui stated that the company is extending from a simple loan facilitation platform to a diversified platform centered on compliance-driven, technology empowerment, and ecosystem synergy. The company will also continue to deepen strategic investments in artificial intelligence and overseas business to address the challenges brought by transformation.

Proactively Scaling Down, R&D-Driven Technology Empowerment

According to Zhitong Finance APP, facing a survival environment of policy restrictions and industry downturn, Jiayin Group has adopted a proactive strategy, retaining core customers on the one hand; on the other hand, it has increased R&D investment, fully advancing the implementation of artificial intelligence and technology empowerment to solidify its foundation.

Due to voluntarily scaling down business size, the company’s facilitated loan volume was somewhat affected, with Q1 and Q2 figures at 19.3 billion yuan and 9.5 billion yuan, respectively. The revenues achieved were 757 million yuan and 737 million yuan, both meeting guidance targets. The company maintained a core base of high-quality clients, and the platform monetization rate rose significantly to 7.76%.

Technology empowerment is a key direction for the company’s strategic transformation, accelerating an upgrade from a loan assistance service provider to a technology output provider. In the first half of the year, the company invested 204 million yuan in R&D, with an R&D expense ratio of 13.66%, increasing by 8.29 percentage points year-over-year.

Data source: Company financial report and data processing

Jiayin Group's in-house developed core products include the intelligent risk control system "Mingjian" and the smart institutional capital management platform "Tianyin," both of which are continuously iterated and upgraded through AI large model investment.

In Q2, the company's proprietary Fuxi platform completed its infrastructure, risk control, and core Skill accumulation layers, covering all major business processes in the loan lifecycle. Additionally, the end-to-end Skill for credit modeling was implemented at scale, compressing the traditional 3-5 day model optimization cycle down to hours. Risk identification accuracy metrics such as model AUC and KS exceeded manual benchmarks substantially.

At the same time, AI applications have been fully embedded into the company’s core operational chain, including complete end-to-end AI coverage for business scenarios like customer service and loan processing. In some cases, AI has entirely replaced human agents. For example, on the risk control front, the self-developed strategy-assisting Agent is upgrading strategy making from "expert modeling, manual calculation" to "AI-assisted expert modeling, machine automated calculation." Strategy iteration efficiency has improved severalfold, and key scenario accuracy rose by over 20%.

Benefiting from intensive R&D investment, AI is evolving from isolated tools to systematic capabilities, supporting the company in maintaining operational efficiency and cost competitiveness during business adjustments. In the first half of the year, major client stickiness remained stable; in Q2, the repeat lending rate stayed above 70%. The repayment speed accelerated, accounts receivable dropped to 2.555 billion yuan—down 1.178 billion yuan from end-2025—resulting in a large increase in cash and equivalents to 504 million yuan.

Overseas Markets as a Core Engine, Long-Termism Emphasizes Shareholder Returns

Focusing on strategic transformation and structural upgrades, Jiayin Group increased its efforts to expand overseas businesses, creating new growth points and achieving significant progress. In Q2, its Indonesian business scale grew 58% year-over-year and 10% quarter-over-quarter. The local financial institution partnership network continues expanding, with the Mexican business's market size up 36% quarter-over-quarter. Customer acquisition efficiency and risk control capabilities have steadily improved.

For its long-term overseas strategy, the company has fully upgraded its strategic direction and team, and plans to continue deepening its presence in Southeast Asia as the core market, cautiously conducting market research and layout in emerging markets such as East Africa and Central Asia, and advancing globalization in an orderly manner.

From an industry perspective, global fintech is showing strong momentum. According to the "Global and China Fintech Service Market In-Depth Research and Advisory Report," the global fintech service spending in 2026 is expected to reach $2.1 trillion, up 18.7% year-over-year, with the Asia-Pacific region leading at 23.5% growth. With its deep cultivation in Asia-Pacific, years of R&D investment, and leading-edge AI products, Jiayin Group’s overseas business is poised to become a core growth engine.

In the capital markets, since last year, the US fintech sector has experienced a major correction, with most stocks trading at a PB well below 0.5x and single-digit PE, and Jiayin Group is no exception, falling into the "golden pit." The company continues to buy back shares to boost investor confidence; by August 2026, it repurchased about 4.6 million American Depositary Shares, totaling approximately $30.4 million.

Overall, in the first half of the year, Jiayin Group proactively scaled down its business, emphasized quality and efficiency, improved monetization rates, sped up collections, and saw substantial increases in cash flow. The company is executing on its technology empowerment strategy, ramping up investment in AI, strengthening product advantages and competitiveness, while overseas strategies are being implemented in parallel to cultivate new growth points. Currently, the company’s PB ratio stands at just 0.46x, indicating clear undervaluation and potential for a valuation rebound.