The first-quarter earnings report for the listed loan facilitation platform Jiayin Group Inc. (NYSE: JFIN), delayed twice, finally arrived in late June. Compared to previous years, this year's Q1 report was nearly three weeks late.
The financials reveal that in Q1 2026, Jiayin Group Inc. (NYSE: JFIN) continued and amplified the performance downturn from Q4 2025. Not only did key financial metrics continue to decline, but net profit also shifted from profit to loss, plummeting from 540 million yuan in Q1 2025 to -61.7 million yuan. This marks the company's first quarterly loss in nearly seven years. On the day of the earnings release, Jiayin Group Inc. (NYSE: JFIN) stock price plunged by 28.39%.
The impact of new loan facilitation regulations on Jiayin Group Inc.'s (NYSE: JFIN) business persists. Regulatory talks ahead of the annual Consumer Rights Day brought over 100,000 user complaints from third-party platforms back into the spotlight. After being forced to scale back its business, Jiayin Group Inc. (NYSE: JFIN), facing critically low liquidity, had to mortgage its headquarters building, which was acquired for 1.35 billion yuan. Significant layoffs and the departure of key executives have further destabilized this giant ship that once successfully navigated out of the P2P whirlpool.
New Business Deceleration and Liquidity Crunch
In the core area of the Lujiazui Zhuyuan Commercial District in Shanghai stands a high-end, 80-meter-tall Class-A office tower. It comprises 17 above-ground floors and 2 underground levels, covering nearly 10,000 square meters with a total floor area of 44,183 square meters. The building is adjacent to the Shanghai Financial Exchange Plaza, surrounded by skyscrapers and numerous financial institutions and corporate headquarters.
This is the Lujiazui Fund Tower. In late December 2024, Jiayin Group Inc. (NYSE: JFIN) announced its purchase of this commercial property for a total of 1.35 billion yuan—a price even exceeding the company's full-year 2024 net profit of 1.297 billion yuan—leading industry observers to marvel at the boldness of founder Yan Dinggui.
The announcement at the time indicated the property would primarily serve as the company's new headquarters to meet growing business demands. In 2024, Jiayin Group Inc. (NYSE: JFIN) facilitated 100.8 billion yuan in loans, surpassing Yan Dinggui's target of 98 billion yuan.
Now, just a year and a half after acquiring the new headquarters, Jiayin Group Inc.'s (NYSE: JFIN) expansion has slowed. The financial report shows that in Q1 2026, Jiayin Group Inc. (NYSE: JFIN) facilitated 19.3 billion yuan in loans, a 45.8% decrease from 35.6 billion yuan in Q1 2025, roughly equivalent to its loan facilitation volume from Q1 2023.
The significant contraction in its core loan facilitation asset scale has led to a continued plunge in revenue and net profit. First-quarter net revenue was 756.7 million yuan, a sharp year-over-year decline of 57.4%. The net loss was 61.7 million yuan, compared to a net profit of 539.5 million yuan in the same period last year.
This performance reversal is not accidental. The company's two prior postponements of the Q1 report release date itself signaled operational uncertainty.
Breaking down the business structure, loan facilitation service revenue, accounting for 60% of the total, fell 68.9% year-over-year, primarily due to a sharp drop in transaction volume and a reduction in service fee rates. Roughly calculated using facilitated loan amounts and loan facilitation service revenue, Jiayin Group Inc.'s (NYSE: JFIN) service fee rate in Q1 2026 was 2.38%, nearly halved from 4.16% in the same period last year.
This is a heavy blow for Jiayin Group Inc. (NYSE: JFIN), which heavily relies on upfront and split fees for profitability. Although revenue from the release of guarantee liabilities saw some growth, it was insufficient to offset the overall business contraction.
The repeat borrowing rate rose to 76.3%, indicating Jiayin Group Inc. (NYSE: JFIN) heavily depends on existing users to sustain operations. However, the average loan amount per transaction decreased by 11% year-over-year, reflecting the dual pressures of weak borrowing demand and tightened risk appetite.
The 90+ day overdue rate stood at 2.25%, indicating relatively stable asset quality. However, against the backdrop of overall industry contraction, this figure cannot mask the potential hidden risk of an expanding exposure. While sales and marketing expenses and administrative expenses dropped significantly, R&D expenditure grew against the trend by 24.6%, showing continued investment in areas like AI risk control, though it has not yet translated into performance support.
Beyond the operational deceleration, signs of continuous capital outflow at Jiayin Group Inc. (NYSE: JFIN) are evident. As of the end of Q1, the company's cash and cash equivalents stood at only 43.4 million yuan, down over 90% from 540 million yuan at the end of 2024.
To alleviate liquidity pressure, at the end of 2025, Jiayin Group Inc. (NYSE: JFIN) mortgaged the Shanghai Lujiazui Fund Tower to secure a 600 million yuan bank loan with an annual interest rate of 3.5%, significantly higher than the prevailing 2.5%-2.7% market rate for commercial loans, indirectly reflecting financial institutions' concerns about its debt repayment capacity.
During the industry's transition from scale-driven to quality-driven growth, Jiayin Group Inc.'s (NYSE: JFIN) cash flow self-sufficiency has weakened notably. If it cannot quickly boost business revenue and optimize its cost structure, its operational bleeding may be difficult to fundamentally reverse in the short term.
Organizational Upheaval: Four Key Executives Depart in Six Months
Under heavy performance pressure, Jiayin Group Inc. (NYSE: JFIN) initiated a series of personnel adjustments in the first half of 2026.
The "Guangjin Plan" launched in April represents the most drastic organizational change. The overall layoff ratio exceeded 30%, with front-line business departments seeing about 30% cuts and product and R&D departments facing even higher ratios, a typical cost-cutting measure during an industry downturn. This aggressive downsizing aims to rapidly reduce labor costs and optimize resource allocation to alleviate pressure from continuous revenue contraction.
This chill has also reached the company's core management.
In January 2026, then-CTO Feng Yi left, succeeded by Wang Zhe, formerly of Ant Group, as head of technology and products. Feng Yi joined Jiayin Group Inc. (NYSE: JFIN) in 2021 as one of its early core members, leading the technical architecture development for the company's core business systems.
In March, company supervisors Xiao Wanxi and Guo Peng exited the industrial and commercial information system. Concurrently, co-president Chen Wenjiang completed his handover and departed. Chen Wenjiang had overseen multiple business lines internally, including post-loan services, customer service, and products, and had accompanied Chairman Yan Dinggui on several occasions for government research inspections and important agreement signings.
On May 15, Jiayin Group Inc. (NYSE: JFIN) announced that Xu Yifang would step down as Chief Risk Officer effective June 1, 2026. Qi Dan, a former core member of WeBank's WeiliDai team, will assume the role of new Chief Risk Officer. Xu Yifang will continue to serve as a board member. Xu Yifang joined Jiayin Group Inc. (NYSE: JFIN) in 2018, overseeing the establishment of the end-to-end online consumer credit risk control system for the Niwodai platform. She also led asset quality management during the 2020 P2P business wind-down and the full transition to loan facilitation, building risk control access, credit limit, and overdue disposal models tailored to bank and consumer finance institution funders.
In early June, veteran executive, director, and financial vice president Wang Libin also ceased managing financial work. Wang Libin joined Jiayin Group Inc. (NYSE: JFIN) in 2014, serving as deputy manager of data analysis and director of asset allocation for Niwodai, and was a core responsible person for fund and asset matching during the early P2P phase. He became Financial Director of Jiayin Financial Technology in September 2017, taking full charge of consolidated reporting, taxation, treasury, and investor-related financial work, leading the financial standardization overhaul before the company's IPO. He was promoted to Financial Vice President in 2018, overseeing the preparation of US-listed financial reports, SEC disclosures, financing, and financial liaison for institutional funding cooperation. He became a newly appointed director of the company in March 2026, having been with the company through key periods including the P2P wind-down, transition to loan facilitation, and overseas expansion.
Within just six months, the simultaneous reshuffling of core positions in technology, operations, risk control, and finance, alongside large-scale layoffs, reflects a shift in the company's resource allocation priorities: from heavy marketing and customer acquisition to a focus on risk control and compliance, and from pursuing scale to pursuing sustainable profitability.
However, against the backdrop of widespread industry pressure, the effectiveness of this internal restructuring remains to be tested over time.
If not quickly translated into efficient decision-making, frequent personnel changes may instead exacerbate short-term uncertainty and market confidence volatility. The new management team needs to stabilize team morale and rebuild execution capabilities while cutting costs. Specifically, its core task is to expand overseas business revenue and monetize technologies like AI while maintaining asset quality and compliance baselines.
Public Relations Storm: Massive Complaints Deter Partner Institutions
Under the requirements of the new loan facilitation regulations, many partner financial institutions have tightened cooperation quotas and adjusted access standards. Signs of contraction are also appearing in Jiayin Group Inc.'s (NYSE: JFIN) funding sources. From 2024 to 2025, Jiayin Group Inc. (NYSE: JFIN) disclosed the number of partner financial institutions each quarter, which remained stable around 70, increasing to 79 by the end of 2025. However, the Q1 2026 financial report did not disclose this data.
According to public media reports, some partner banks, due to regulatory requirements for localized operation management and pressure from platform consumer complaints, have taken measures such as reducing cooperation scale or suspending business cooperation with Jiayin Group Inc. (NYSE: JFIN). Market sources mention that two city commercial banks in northwestern China have terminated related loan facilitation cooperation with Jiayin Group Inc. (NYSE: JFIN), with the core trigger being the high number of complaints.
As of July 1, 2026, Jiayin Group Inc.'s (NYSE: JFIN) core lending app, Niwodai, had accumulated over 103,445 user complaints on the Hei Mao complaint platform. Complaints for its other platform, Jirong, also reached 14,270. User complaints focus on issues such as interest and fee transparency, post-loan service fees, collection methods, and privacy protection.
Ahead of Consumer Rights Day, Niwodai was summoned by regulatory authorities regarding issues with its online loan facilitation business, requiring it to standardize marketing, clearly disclose interest and fee information, strictly protect personal information, and conduct compliant collections.
In February of this year, Jiayin Group Inc. (NYSE: JFIN) was reported to be charging various service fees through a company named Guangxi Guangmu Asset Management Co., Ltd., and using an affiliate of Guangmu Asset Management as the entity to assume creditor's rights and conduct collections. By splitting operations among affiliated entities, Jiayin Group Inc. (NYSE: JFIN) successfully transferred high service fees off its balance sheet, evading regulatory fee rate checks while maintaining a low reported overdue rate.
Guangmu Asset Management is not entirely unrelated to Jiayin Group Inc. (NYSE: JFIN). According to reports, Wang Jun, the actual controller of Guangmu Asset Management, had served as the legal representative for over a hundred credit reporting branches controlled by Yan Dinggui. In essence, this fee transfer still constitutes a disguised increase in financing costs prohibited by regulators, and its operational splitting carries potential compliance risks.
Against the backdrop of rising compliance costs, profit shrinkage has become a common phenomenon across the loan facilitation industry. Beyond Jiayin Group Inc. (NYSE: JFIN), other listed loan facilitation platforms such as Qifu, Xinye, Lexin, and Xiaoying have all seen net profit declines ranging from 40% to 90%. As a platform that expanded rapidly in its early stages, Jiayin Group Inc. (NYSE: JFIN) failed to timely scale back before the implementation of the new loan facilitation regulations, leading it to incur losses ahead of other platforms after regulatory policies tightened.
The company expects its facilitated loan volume for Q2 2026 to be further adjusted downward to between 9.5 billion and 10.5 billion yuan. Under immense and immediate operational pressure, Jiayin Group Inc. (NYSE: JFIN) is undergoing an unprecedented test of survival and transformation—whether it's the collapse of its profit model, the contraction of funding channels, the depletion of its cash flow buffer, organizational turmoil, or the limited scale of its overseas business, all indicate this is a tougher battle than the P2P wind-down.
Founder and CEO Yan Dinggui stated the company will "proactively adjust its business structure and implement stricter credit standards to reduce risk." Whether the new wave of management can stabilize the core business, rebuild trust with financial institutions, and identify differentiated growth points will determine if the company can weather the current winter.
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