Jiayin Technology (JFIN.US) holds 500 million in cash in the first half of the year, betting on overseas markets as the key to breaking through

It is understood that on August 28, Jiayin Technology (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 launched a comprehensive strategic upgrade, shifting its development model from scale-driven growth to a greater focus on quality and efficiency. In the first half of the year, the company accelerated the adjustment of its business structure and effectively reduced its risk exposure. In Q2, its 90+ day delinquency rate was 2.21%, remaining stable. As of June 2026, its cash and cash equivalents increased to 504 million yuan. Yan Dinggui, Chairman of Jiayin Technology, said that the company is extending from a pure loan facilitation platform to a diversified platform centered on compliance-driven, technology-enabled, and ecosystem-collaborative development, while continuing to deepen strategic investment in artificial intelligence and overseas business to address the challenges brought by the transformation. Proactive strategy to shrink scale, R&D-driven technology empowerment It is understood that in the face of policy restrictions and a declining industry environment, Jiayin Technology, on the one hand, adopted a proactive strategy to retain core customers; on the other hand, it increased R&D investment and comprehensively advanced the implementation and application of artificial intelligence and technology empowerment to stabilize its foundation. Due to the proactive contraction of business scale, the company's loan facilitation volume was affected to some extent. On a quarterly basis, Q1 and Q2 were 19.3 billion yuan and 9.5 billion yuan, respectively, with revenue of 757 million yuan and 737 million yuan, respectively, both meeting target guidance. The company retained its core high-quality customer base, and the platform monetization rate significantly increased to 7.76%. Technology empowerment is an important direction of the company's strategic transformation, and it is accelerating the technological upgrade from a loan facilitation service provider to a technology exporter. 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%, up 8.29 percentage points year-on-year. Data source: company financial reports and data processing Jiayin Technology's self-developed core products include the intelligent risk control system "Mingjian" and the intelligent institutional capital management platform "Tianyin," which are continuously iterated and upgraded through investment in AI large models. In Q2, the company's self-developed Fuxi platform completed the infrastructure layer, risk control layer, and core Skill accumulation, covering all major business links within the loan cycle. In addition, the full-chain Skill for credit modeling has been implemented at scale, compressing the traditional 3 to 5 day modeling optimization cycle to the hour level. Model risk identification accuracy indicators such as AUC and KS were significantly better than manual benchmarks. At the same time, AI applications have been fully embedded in the company's core operating chain, including customer service and application intake and other business scenarios, achieving full end-to-end AI coverage, with some scenarios fully replacing manual seats. For example, on the risk control side, the self-developed strategy assistance Agent promotes the upgrade of strategy formulation from "expert modeling, manual calculation" to "AI-assisted expert modeling, automatic machine calculation," increasing strategy iteration efficiency by dozens of times and improving accuracy in key scenarios by more than 20%. Thanks to high-intensity R&D investment, AI is evolving from a single-point tool into a systemic capability, supporting the company in maintaining operational efficiency and cost competitiveness during the business adjustment period. In the first half of the year, large customer stickiness remained stable, the repeat borrowing rate in Q2 remained above 70%, collection speed accelerated, and accounts receivable were 2.555 billion yuan, a decrease of 1.178 billion yuan from the end of 2025, causing cash equivalents to increase significantly to 504 million yuan. Overseas markets become a core engine, long-termism values shareholder returns Around strategic transformation and structural upgrading, Jiayin Technology has increased its overseas business development to create new growth points and has made significant progress. In Q2, the company's Indonesia business scale increased by 58% year-on-year and 10% quarter-on-quarter, and its cooperation network with local Financial Institutions, Inc. continued to expand. The Mexico business market scale increased by 36% quarter-on-quarter, with customer acquisition efficiency and risk control capabilities steadily improving. In response to the long-term development goals of its overseas business, the company has carried out a comprehensive upgrade of its strategy and team, and plans to continue deepening its presence in Southeast Asia as its base, prudently conduct market research and layout in emerging regions such as East Africa and Central Asia, and advance its globalization strategy in an orderly manner. From an industry perspective, global fintech is developing rapidly. According to the "In-depth Research and Consulting Report on the Global and China Financial Technology Services Market," total global fintech services spending is expected to reach 2.1 trillion US dollars in 2026, a year-on-year increase of 18.7%, with the Asia-Pacific region leading at a year-on-year growth rate of 23.5%. Jiayin Technology has deeply cultivated the Asia-Pacific market. With years of R&D investment and leading advantages in AI products, its overseas business is expected to become a core growth engine. In the capital market, since last year, the US stock fintech sector has entered a deep correction, with the PB of most targets far below 0.5 times and PE only in the single digits. Jiayin Technology is no exception and has fallen into a "golden pit." The company continues to repurchase shares to boost confidence in shareholding. As of August 2026, it has repurchased approximately 4.6 million American Depositary Shares for a total amount of approximately 30.4 million US dollars. Overall, in the first half of the year, Jiayin Technology proactively contracted its business scale, focused on development quality and efficiency, and during the period improved its monetization rate, accelerated the collection of accounts receivable, and significantly increased cash flow. The company implemented its technology empowerment strategy, increased investment in artificial intelligence, stabilized product advantages and industry competitiveness, and simultaneously advanced its overseas market strategy to create new growth points. At present, the company's PB ratio is only 0.46 times, clearly undervalued, with room for valuation repair.