In the first half of the year, revenue reached a historic high, and Jia Yin Technology (JFIN.US) issued a significantly high dividend with a yield of over 14%.

it is understood that Jia Yin Technology (JFIN.US) recently released its Q2 and first half financial report for 2024. In Q2, the company continued its trend of double-digit growth, achieving a revenue of 2.952 billion yuan in the first half of the year, a 23% year-on-year increase. The gross profit and net profit attributable to shareholders were 1.677 billion yuan and 511 million yuan respectively, with gross profit margin and net profit margin of 56.8% and 17.2% respectively. The company's ROE for the first half of the year was 18.6%, with an annualized rate of 37.2%, maintaining a high return on assets. In addition, the company has seen a steady increase in loan facilitation, with loan facilitation amounts of 24 billion yuan and 46.5 billion yuan in Q2 and the first half of the year respectively. According to guidance, it is expected that the loan facilitation amount for the third quarter of 2024 will reach approximately 25 billion yuan. Chairman Yan Dinggui stated after the financial report was released that the achievements in the second quarter prove the company's strengths in development strategy and risk management, and will continue to drive the company's performance through technological innovation and strategic business exploration. Jia Yin Technology actively rewards shareholders, approving a cash dividend of 0.125 USD per common share on August 16, or 0.50 USD per American Depositary Share (ADS), with an estimated total cash distribution of about 26.6 million USD, yielding over 14%. Revenue reaches a new high, continued strength in international markets It is understood that the global economy in 2024 has been relatively weak, with both loan demand and supply being cautious due to deep adjustments in the industrial and consumer sectors. Despite this pressure, Jia Yin Technology has maintained steady growth in performance. In the first half of the year, the company achieved a record high revenue, with a compound growth rate of nearly 51.5% in the past five and a half years. While profitability has fluctuated due to environmental factors, it has still maintained a high level of profit. The company explores a diversified business model, leveraging its industry advantage in stabilizing Good Help Loans as the foundation. Through technological innovation and deepening the capabilities of AI in financial technology, the company provides digital services to Financial Institutions, Inc. and focuses on small and medium-sized enterprises and expanding overseas markets. With multifaceted measures driving and increasing loan facilitation and revenue growth, the company is expected to achieve a total loan facilitation amount of 71.5 billion yuan in the first three quarters, according to guidance. Jia Yin Technology continues to strengthen its efforts in capital supply and demand on both ends. On one hand, it continues to advance the high-quality and sustainable construction of the Financial Institutions, Inc. network, and on the other hand, it uses a multi-channel customer acquisition model to explore high-quality users. During the period, the company has already cooperated with 69 Financial Institutions, Inc. and is in discussion with 35 other institutions. The company has also enhanced its deep cooperation with these partnering institutions in areas such as technological capability output and traffic docking. On the user side, the company explores different types of outreach methods, developing new customer acquisition scenarios and a complete marketing system. In the second quarter, in addition to optimizing existing channels, the company added cooperation with several top traffic platforms, innovating customer acquisition scenarios, such as helping a private bank connect with targeted asset acquisition channels and successfully launching a joint operation project using the "traffic channel + help loan provider + bank" model. With these various efforts, the number of users steadily increases. In the second quarter, the company added 680,000 new borrowers, a 32.9% year-on-year increase. The company also focuses on expanding in the small and micro-market, introducing multiple measures to support the relief and development of small and micro-enterprises, helping them achieve high-quality development, and serving over 500,000 small and micro business owners to date. It is worth noting that Jia Yin Technology's overseas markets are experiencing healthy growth. In the Indonesian market, the business partner's loan scale grew by 25% in the second quarter, exceeding the business performance and operational expectations for the year. Additionally, the company is in ongoing discussions with 5 local Financial Institutions, Inc., continuously expanding its partner network. Furthermore, the company is steadily advancing in countries such as Nigeria and Mexico, with the business scale in Nigeria seeing further growth in the second quarter. Continued iteration of technological products, R&D investment increases by 32.5% year-on-year The rapid development of AI is accelerating industrial transformation. With the drive of new quality productivity policies, financial technology platforms are facing development opportunities. On one hand, there is an increasing demand for digital construction of Financial Institutions, Inc. under the trend of the times, and on the other hand, Financial Institutions, Inc. is in need of cost reduction due to technological iteration. As a leading financial technology platform, Jia Yin Technology has been investing in research and development for the past decade, leading the industry in AI and gaining recognition from Financial Institutions, Inc. and the industry. This year, the company is actively taking steps towards technological innovation, continuously exploring the application of AI technology in business scenarios, deeply applying artificial intelligence technology in various scenarios including customer service, internal communication, decision support, production monitoring, predictive maintenance, and personalized marketing. In the second quarter, the company launched several innovative products including the "Cang Long" intelligent recommendation system and the "Lingxi" AI Agent platform. In terms of product performance, for example, the company's self-developed enterprise-level office assistant platform based on Retrieval-Augmented Generation (RAG) technology "Johnson & Johnson," the "Lingxi" AI Agent Intelligent Center platform provides customized, data-driven services for enterprises, empowering business personnel to become "super individuals." The recently launched "Cang Long" intelligent recommendation platform matches different resources and content to individual users, optimizing operational strategies to maximize the precise delivery of resources and content. With the assistance of the "Cang Long" system, content conversion rates have increased by 5 times, push efficiency has increased by 90%, significantly enhancing operational precision. Jia Yin Technology's core products not only enable Financial Institutions, Inc. to acquire customers accurately and improve operational efficiency, but also enhance risk control.Reached a low risk level. At the end of the second quarter, the delinquency rate for 61 to 90 days remained at a low level of 0.67%, with a clear improvement in asset quality. In addition, the efficient matching has continued to increase the stickiness of high-quality customers, with a stable repeat borrowing rate of 67.1% during the period and an average loan amount of 9080 yuan.In the first half of the year, the company's research and development investment totaled 176 million yuan, a year-on-year increase of 32.5%, exceeding revenue growth by 9.5 percentage points. As AI technology continues to iterate, it is expected that the company will continue to increase research and development investment to ensure industry competitiveness and maintain its leading position in financial technology. The results of research and development will also contribute to performance improvement, driving the development of core and diversified businesses, and improving profitability. Adhering to long-termism, the company's dividend payout ratio exceeds 14% Jiayin Technology adheres to a long-term development path, focusing on improving the company's fundamentals, actively contributing to society, and providing services to the community through accumulated technological capabilities. In early August this year, the company released its 2023 ESG report, implementing sustainable development concepts and achieving significant results in areas such as technological empowerment, support for small and micro enterprises, employee care, environmental protection, and social welfare. For example, in consumer protection, the company has been utilizing financial technology and the latest AI achievements in protecting consumer rights, implementing systematic and refined operations in consumer protection. In the first half of the year, the company identified and effectively blocked over 1.59 million fraudulent borrowers, successfully identifying and intercepting 160,000 malicious attackers from the dark web, using technological innovations to construct a secure firewall for consumer rights protection. Jiayin Technology places great emphasis on shareholder returns, increasing shareholder returns through stable dividend payouts and repurchases. In 2023, the company announced a policy of paying dividends twice a year, with a dividend payout ratio of no less than 15%. In previous dividend payouts, the total payout ratio far exceeded the planned payout level. In March this year, the company approved an adjustment to the existing share repurchase plan, authorizing the repurchase of ordinary shares with a total value not exceeding 30 million US dollars. As of August 27th, the company had repurchased approximately 3.3 million ADS shares for approximately 13.9 million US dollars. Since 2023, Jiayin Technology's stock price has continued to rise, with a market value increase of 184% until now, but the valuation remains low. The strong fundamentals, stable dividends, and repurchase plan currently offer an attractive dividend yield of over 14%.