Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a
leading online individual finance marketplace in China, today
announced its unaudited financial results for the quarter ended
September 30, 2019.
Highlights:
- Loan origination volume1 was RMB4,720 million, representing an
increase of 12.6% from the same period of 2018, and a decrease of
3.7% sequentially
- Investment volume2 was RMB5,128 million, representing an
increase of 11.3% from the same period of 2018, and a decrease of
17.8% sequentially
- Average investment amount per investor was RMB74,592,
representing an increase of 31.7% from the same period of
2018
- Average borrowing amount per borrower was RMB7,453,
representing an increase of 10.4% from the same period of 2018
- Net revenue was RMB510.8 million, representing an increase of
0.5% from the same period of 2018, and a decrease of 19.6 %
sequentially
- Operating income was RMB83.5 million, compared with an
operating loss of RMB 55.8 million in the same period of 2018, and
a decrease of 55.0% sequentially
- Net income was RMB81.8million, compared with a net loss of RMB
44.0 million in the same period of 2018, and a decrease of 51.5%
sequentially
Mr. Yan Dinggui, the Founder, Director and Chief Executive
Officer, commented: “Industry conditions remained challenging
during the third quarter, but solid execution of Company’s strategy
enabled us to sustain an attractive level of profitability. Our
efforts now are focused on preparation for the change in regulatory
qualification and compliance. Because the final outcome of industry
reforms is still uncertain, we want to be fully prepared for a
range of scenarios.”
Financial Results
Net revenue was RMB510.8 million (US$71.5
million), representing an increase of 0.5% from the same period of
2018.
Revenue from loan facilitation services was RMB396.5 million
(US$55.5 million), representing an increase of 6.6% from the same
period of 2018, primarily due to the increased loan origination
volume compared with the same period of 2018.
Revenue from post-origination services was RMB59.3 million
(US$8.3 million), representing a decrease of 3.4% from the same
period of 2018. The decrease was due to the disposal of our
previously-consolidated affiliated company Shanghai Caiyin Asset
Management Co, Ltd. ("Caiyin"), which provided certain
post-origination loan services.
Origination and servicing expense was RMB101.1
million (US$14.1 million), representing an increase of 2.7% from
the same period of 2018, primarily due to higher expenses
associated with credit assessment.
Allowance for uncollectible receivables and contract
assets was RMB67.8 million (US$9.5 million), representing
an increase of 156.9% from the same period of 2018, primarily due
to the increase in loan origination volume and unfavorable changes
in estimated collectability, which is caused by difficult industry
conditions.
Sales and marketing expense was RMB152.4
million (US$21.3million), representing an increase of 33.8% from
the same period of 2018, driven by an increase in advertising
expenses to promote the Company’s brand.
General and administrative expense was RMB47.5
million (US$6.6 million), representing an increase of 76.7% from
the same period of 2018. The increase was primarily due to
increased staffing cost, as well as certain share-based
compensation expense allocated to general and administrative
expenses.
Research and development expense was RMB58.6
million (US$8.2 million), representing an increase of 60.0% from
the same period of 2018, as the Company continued to invest in
technology.
Income from operations was RMB83.5 million
(US$11.7 million), compared with an operating loss
of RMB 55.8 million in the same period of 2018.
Net income attributable to Jiayin shareholders
was RMB81.8 million (US$11.4 million), compared with a net loss of
RMB44.0 million in the same period of 2018.
Cash and cash equivalents at quarter-end were
RMB238.0 million (US$33.3 million), compared with RMB359.8 million
in the same period of 2018.
During the quarter, the Company conducted a business combination
with Geerong Yun (Shanghai) Enterprise Development Co., Ltd.
(“Geerong Yun”), an innovative fintech-driven platform connecting
financial institutions. Prior to the combination, Geerong Yun and
Jiayin were under the common control of Mr. Dinggui Yan, the
Founder, Director and Chief Executive Officer of Jiayin. The
combination has been retrospectively reflected in the financial
statements from the beginning of 2019, but not to prior periods as
the impact was not material. The consolidation is intended to
support the growth of Jiayin’s institutional funding sources, as
well as to strengthen our big data analytics and fintech R&D.
In addition, during this quarter, the Company disposed Caiyin, the
details of the disposal was provided in the Company’s press
releases furnished to the SEC on form 6-Ks, including the relevant
exhibits which dated on September 16, 2019 and October 24, 2019,
respectively.
Conference Call
The Company will host a conference call to discuss its financial
results on Tuesday, November 26, 2019 at 8:00 a.m. US Eastern Time/
9:00 PM China Standard Time.
Dial-in details for the earnings conference call are as
follows:
China: |
+86
4006208038 or +86 8008190121 |
Hong Kong |
+852 3018-6771 |
United States, New York |
+1 (845) 675-0437 |
|
|
To join, please dial in 10 minutes before the call is scheduled
to begin and provide the passcode 6759548.
|
Phone Number |
Toll-Free Number |
United States |
+1 (845) 675-0437 |
+1 (866) 519-4004 |
Hong Kong |
+852 30186771 |
+852 800906601 |
Mainland China |
+86 8008190121+86 4006208038 |
|
A replay of the conference call may be accessed by phone at the
following numbers until December 3, 2019. To access the replay,
please reference the conference ID 6759548.
|
Phone Number |
Toll-Free Number |
United States |
+1 (646) 254-3697 |
+1 (855) 452-5696 |
Hong Kong |
+852 30512780 |
+852 800963117 |
Mainland China |
+86 8008700206+86 4006022065 |
|
A live and archived webcast of the conference call will be
available on the Company’s investors relations website at
http://ir.niwodai.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading online individual finance
marketplace in China committed to facilitating effective,
transparent, secure and fast connections between investors and
borrowers, whose needs are underserved by traditional financial
institutions. The origin of the business of the Company can be
traced back to 2011. The Company operates a highly secure and open
platform with a comprehensive risk management system and a
proprietary and effective risk assessment model which employs
advanced big data analytics and sophisticated algorithms to
accurately assess the risk profiles of potential borrowers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) at specified rates solely for the
convenience of the reader. Unless otherwise noted, all translations
from RMB to U.S. dollars are made at a rate of RMB7.1477 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as
of September 30, 2019. The Company makes no representation that the
RMB or US$ amounts referred could be converted into US$ or RMB, as
the case may be, at any particular rate or at all.
Safe Harbor / Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates” and similar statements. The
Company may also make written or oral forward-looking statements in
its periodic reports to the SEC, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about the Company’s beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the
Company and the industry. Potential risks and uncertainties
include, but are not limited to, those relating to the Company’s
ability to retain existing investors and borrowers and attract new
investors and borrowers in an effective and cost-efficient way, the
Company’s ability to increase the investment volume and loan
origination of loans volume facilitated through its marketplace,
effectiveness of the Company’s credit assessment model and risk
management system, PRC laws and regulations relating to the online
individual finance industry in China, general economic conditions
in China, and the Company’s ability to meet the standards necessary
to maintain listing of its ADSs on the Nasdaq Stock Market or other
stock exchange, including its ability to cure any non-compliance
with the continued listing criteria of the Nasdaq Stock Market. All
information provided in this press release is as of the date
hereof, and the Company undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that its expectations will turn
out to be correct, and investors are cautioned that actual results
may differ materially from the anticipated results. Further
information regarding risks and uncertainties faced by the Company
is included in the Company’s filings with the U.S. Securities and
Exchange Commission, including its registration statement on Form
F-1 filed in connection with its initial public offering.
For more information, please contact:
In China:
Jiayin GroupMs. Shelley BaiEmail:
ir@niwodai.com
or
The Blueshirt GroupMs. Susie WangEmail:
susie@blueshirtgroup.com
In the U.S.:
Ms. Julia QianEmail: julia@blueshirtgroup.com
JIAYIN GROUP INC. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share
and per share data)
|
|
|
|
|
|
|
As of December 31, |
|
As of September 30, |
|
|
2018 |
|
2019 |
|
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
41,441 |
|
237,994 |
|
33,297 |
Restricted cash |
|
41,500 |
|
- |
|
- |
Amounts due from related parties |
|
- |
|
131,328 |
|
18,373 |
Accounts receivable, net |
|
336,849 |
|
208,798 |
|
29,212 |
Contract assets, net |
|
203,080 |
|
- |
|
- |
Assets from the investor assurance program, net |
|
5,525 |
|
- |
|
- |
Short term Investment |
|
- |
|
71,477 |
|
10,000 |
Prepaid expenses and other current assets |
|
88,234 |
|
132,118 |
|
18,484 |
Deferred tax assets |
|
56,027 |
|
- |
|
- |
Long term Investment |
|
- |
|
3,540 |
|
495 |
Property and equipment |
|
29,011 |
|
39,169 |
|
5,480 |
Right-of-use assets3 |
|
- |
|
44,742 |
|
6,260 |
Other long-term assets |
|
212 |
|
3,234 |
|
452 |
TOTAL
ASSETS |
|
801,879 |
|
872,400 |
|
122,053 |
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Liabilities including amounts of the consolidated VIEs
without recourse to the Company: |
|
|
|
|
|
|
Payroll and welfare payable |
|
110,562 |
|
91,512 |
|
12,803 |
Amounts due to related parties |
|
84,509 |
|
7,511 |
|
1,051 |
Liabilities from investor assurance program |
|
1,547,072 |
|
- |
|
- |
Other guarantee liabilities |
|
4,060 |
|
- |
|
- |
Other Payable |
|
50,783 |
|
293,069 |
|
41,002 |
Other Payable related to the disposal of Caiyin |
|
- |
|
987,511 |
|
138,158 |
Tax payables |
|
422,177 |
|
141,491 |
|
19,795 |
Refund liabilities |
|
84,498 |
|
- |
|
- |
Lease liabilities3 |
|
- |
|
42,914 |
|
6,004 |
Deferred Tax Liability |
|
- |
|
4,969 |
|
695 |
Accrued expenses and other current liabilities |
|
150,224 |
|
143,285 |
|
20,046 |
TOTAL
LIABILITIES |
|
2,453,885 |
|
1,712,262 |
|
239,554 |
Commitments and Contingencies |
|
|
|
|
|
|
SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
Ordinary shares (US$ 0.000000005 par value; 10,000,000,000,000
shares authorized, 200,000,000 shares issued and outstanding as of
December 31, 2018, 216,100,000 shares issued and outstanding as of
September 30, 2019, respectively) |
|
0 |
|
0 |
|
0 |
|
Additional paid-in
capital |
|
395,472 |
|
715,029 |
|
100,036 |
|
Accumulated deficit4 |
|
(2,047,478 |
) |
(1,565,535 |
) |
(219,026 |
) |
Other comprehensive
income |
|
- |
|
10,770 |
|
1,507 |
|
Minority interests |
|
- |
|
(126 |
) |
(18 |
) |
TOTAL SHAREHOLDERS'
DEFICIT |
|
(1,652,006 |
) |
(839,862 |
) |
(117,501 |
) |
TOTAL LIABILITIES AND
DEFICIT |
|
801,879 |
|
872,400 |
|
122,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JIAYIN GROUP INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in
thousands, except for share and per share data)
|
Three Months EndedSeptember
30 |
|
Nine Months EndedSeptember
30 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
Net revenue (including revenue from
relatedparties of RMB nil and RMB 654 for the period 2018Q3,and
2019Q3, respectively) |
508,165 |
|
510,773 |
|
71,460 |
|
2,171,683 |
|
1,887,556 |
|
264,079 |
|
Operating cost and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Origination and servicing |
(97,911 |
) |
(101,128 |
) |
(14,148 |
) |
(284,035 |
) |
(354,929 |
) |
(49,656 |
) |
Allowance for uncollectible accounts receivable and contract
assets |
(26,386 |
) |
(67,780 |
) |
(9,483 |
) |
(187,618 |
) |
(182,325 |
) |
(25,508 |
) |
Provision for assets and liabilities from investor assurance
program |
(262,336 |
) |
- |
|
- |
|
(426,710 |
) |
- |
|
- |
|
Sales and marketing |
(113,867 |
) |
(152,364 |
) |
(21,317 |
) |
(562,630 |
) |
(492,336 |
) |
(68,880 |
) |
General and administrative |
(26,856 |
) |
(47,465 |
) |
(6,641 |
) |
(83,272 |
) |
(154,405 |
) |
(21,602 |
) |
Research and development |
(36,612 |
) |
(58,566 |
) |
(8,194 |
) |
(112,387 |
) |
(162,785 |
) |
(22,775 |
) |
Total operating cost and expenses |
(563,968 |
) |
(427,303 |
) |
(59,783 |
) |
(1,656,652 |
) |
(1,346,780 |
) |
(188,421 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operation |
(55,803 |
) |
83,470 |
|
11,677 |
|
515,031 |
|
540,776 |
|
75,658 |
|
Interest income (expense) |
230 |
|
88 |
|
12 |
|
1,042 |
|
(88 |
) |
(12 |
) |
Other income, net |
1,669 |
|
7,308 |
|
1,022 |
|
12,039 |
|
20,876 |
|
2,921 |
|
Income (loss) before income taxes
|
(53,904 |
) |
90,866 |
|
12,711 |
|
528,112 |
|
561,564 |
|
78,567 |
|
Income tax expense |
9,952 |
|
(9,099 |
) |
(1,273 |
) |
(78,689 |
) |
(79,623 |
) |
(11,140 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
(43,952 |
) |
81,767 |
|
11,438 |
|
449,423 |
|
481,941 |
|
67,427 |
|
Less: net income (loss) attributable to non-controlling
interest shareholders |
- |
|
152 |
|
21 |
|
- |
|
(76 |
) |
(11 |
) |
Net income (loss) attributable to Jiayin Group
Inc. |
(43,952 |
) |
81,615 |
|
11,417 |
|
449,423 |
|
482,017 |
|
67,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax of
nil: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
- |
|
10,770 |
|
1,507 |
|
- |
|
10,777 |
|
1,508 |
|
Total comprehensive income (loss) attributable to
Jiayin Group Inc. |
(43,952 |
) |
92,385 |
|
12,924 |
|
449,423 |
|
492,794 |
|
68,946 |
|
Weighted average shares used in calculating net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
200,000,000 |
|
216,100,000 |
|
216,100,000 |
|
200,000,000 |
|
206,307,671 |
|
206,307,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
(0.22 |
) |
0.38 |
|
0.05 |
|
2.25 |
|
2.34 |
|
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ADS(1 ADS represents 4 ordinary
shares): |
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
(0.88 |
) |
1.52 |
|
0.20 |
|
9.00 |
|
9.36 |
|
1.32 |
|
_________________________________1 “Loan origination volume”
refers to the total amount of loans facilitated during the period
presented.2 “Investment volume” refers to the total amount of all
investment transactions executed by investors during the period
presented.3 The Company has adopted ASU No. 2016-02, “Leases,”
beginning January 1, 2019 and elected to utilize a modified
retrospective approach which allowed the Company to initially apply
the new lease standard at the adoption date and recognize a
cumulative effect adjustment to the opening balance of retained
earnings of 2019, with no adjustments to prior periods presented.
No cumulative effect adjustment to the opening balance of retained
earnings were made. The adoption of the new guidance did not have a
material effect the Company’s our results of operations, financial
condition or liquidity.4 It includes accumulated loss from under
common control transactions related to Geerong Yun.
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