Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a
leading fintech platform in China, today announced its unaudited
financial results for the third quarter ended September 30, 2020.
Third Quarter 2020 Operational and Financial Highlights
:
- Loan origination volume1 was RMB3,330 million (US$490.5
million), representing a decrease of 29.4% from the same period of
2019, and an increase of 48.8% sequentially.
- Average borrowing amount per borrower was RMB6,556 (US$965.6),
representing a decrease of 12.0% from the same period of 2019.
- Repeat borrowing rate2 was 74.5%, compared with repeat
borrowing rate of 52.7% in the same period of 2019.
- Institutional funding accounted for 100% of the total loans
facilitated, compared with 8.2% in the same period of 2019.
- Net revenue was RMB401.3 million (US$59.1 million),
representing a decrease of 21.4% from the same period of 2019, and
an increase of 63.8% sequentially.
- Operating income was RMB150.0 million (US$22.1 million),
representing an increase of 79.6% from the same period of 2019, and
an increase of 212.5% sequentially.
- Net income was RMB88.4 million (US$13.0 million), representing
an increase of 8.1% from the same period of 2019, and an increase
of 115.1% sequentially.
Mr. Yan Dinggui, the Founder, Director and Chief Executive
Officer, commented: “I am excited to report another solid quarter
of strong business performance. Most notably, we completed the
business transition upon which we embarked at the start of the
year. I am proud to announce that as of November 10, 2020, the
outstanding loan balance of our legacy P2P lending business was
reduced to zero! This marks a significant milestone. Jiayin has
successfully transformed to a finance technology company fully
funded only by institutions. Considering that at this time
one year ago, our platform funding was over 90% from individuals,
this rapid transition demonstrates our agility and outstanding
execution capability.”
Yan added, “In addition to successfully completing our funding
transition, we continued to deliver encouraging business results
despite the challenging environment. The loans we facilitated
performed very well, investor confidence remained strong, we
improved operating efficiency, and we maintained attractive
profitability. In the quarter, our net income reached RMB88.4
million, up 8.1% year over year and 115.1% sequentially. This
remarkable improvement demonstrates both the effectiveness of our
growth strategy and our strong execution. Jiayin always strives to
operate conservatively but profitably. We believe that our strong
underlying business and brand recognition will enable us to achieve
robust growth for the coming years.”
Third Quarter 2020 Financial Results
Net revenue was RMB401.3 million (US$59.1
million), representing a decrease of 21.4% from the same period of
2019.
Revenue from loan facilitation services was RMB290.6 million
(US$42.8 million), representing a decrease of 26.7% from the same
period of 2019. The decrease was primarily due to the lower loan
origination volume and the shift to institutional funding
partners.
Revenue from post-origination services was RMB33.7 million
(US$5.0 million), representing a decrease of 43.2% from the same
period of 2019. The decrease was due to the lower outstanding loan
balance.
Other revenue was RMB77.0 million (US11.3 million), representing
an increase of 40.0% from the same period of 2019. The increase was
primarily due to the variable consideration related to automated
investment program recognized from loans previously facilitated
under the P2P business.
Origination and servicing expenses were RMB59.5
million (US$8.8 million), representing a decrease of 41.1% from the
same period of 2019, primarily due to the lower volume of loans
facilitated by the Company and reduced collection costs as the
company no longer provides such services under its new business
model.
Allowance for uncollectable receivables, contract assets
and loan receivables was RMB15.8 million (US$2.3 million),
representing a decrease of 76.7% from the same period of 2019,
primarily due to the the overall decrease of facilitation volume,
as well as the relatively lower credit risk of the new business
model.
Sales and marketing expenses were RMB99.5
million (US$14.7 million), representing a decrease of 34.7% from
the same period of 2019, primarily due to the lower customer
acquisition expenses and reduced advertising spending for
promotional activities.
General and administrative expenses were
RMB37.3 million (US$5.5 million), representing a decrease of 21.5%
from the same period of 2019, primarily due to the decrease in
share-based compensation expense and the decrease in salaries and
personnel related costs, as well as other business-related
expenses.
Research and development expenses were RMB39.2
million (US$5.8 million), representing a decrease of 33.1% from the
same period of 2019, primarily due to the decrease in share-based
compensation expense and a more streamlined team in the technology
and development department resulting from the business
transition.
Income from operations was RMB150.0 million
(US$22.1 million), representing an increase of 79.6% from the same
period of 2019, and an increase of 212.5% sequentially.
Other income (expense), net was a net loss of
RMB32.8 million (US$4.8 million), compared with a net gain of
RMB7.3 million for the corresponding period in 2019. The loss
in this quarter was primarily due to the estimated loss of
short-term investments.
Net income was RMB88.4 million (US$13.0
million), representing an increase of 8.1% from the same period of
2019, and an increase of 115.1% sequentially.
Cash and cash equivalents were RMB94.8 million
(US$14.0 million) as of September 30, 2020, compared with RMB69.9
million as of June 30, 2020.
Conference Call
The Company will host a conference call to discuss its financial
results on Monday, November 30, 2020 at 8:00 a.m. US. Eastern Time
(9:00 PM Beijing/Hong Kong Time).
Please register in advance to join the conference using the link
provided below and dial in 10 minutes before the call is scheduled
to begin. Conference access information will be provided upon
registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/5890747
A replay of the conference call may be accessed by phone at the
following numbers until December 8, 2020. To access the replay,
please reference the conference ID
5890747.
|
Phone Number |
Toll-Free Number |
United States |
+1 (646) 254-3697 |
+1 (855) 452-5696 |
Hong Kong |
+852 30512780 |
+852 800963117 |
Mainland China |
|
+86 4006322162+86 8008700205 |
A live and archived webcast of the conference call will be
available on the company’s investors relations website
at http://ir.jiayin-fintech.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading fintech platform in China
committed to facilitating effective, transparent, secure and fast
connections between investors and borrowers, whose needs are
underserved by traditional financial institutions. The origin of
the business of the Company can be traced back to 2011. The Company
operates a highly secure and open platform with a comprehensive
risk management system and a proprietary and effective risk
assessment model which employs advanced big data analytics and
sophisticated algorithms to accurately assess the risk profiles of
potential borrowers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) at a 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 RMB6.7896 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as
of September 30, 2020. The Company makes no representation that the
RMB or US$ 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 annual report on Form 20-F.
For more information, please contact:
In China:
Jiayin GroupMs. Shelley BaiEmail:
ir@jiayinfintech.cn
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 ofDecember 31, |
|
|
As of September 30, |
|
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
122,149 |
|
|
|
94,826 |
|
|
|
13,966 |
|
Restricted cash |
|
|
— |
|
|
|
2,000 |
|
|
|
295 |
|
Amounts due from related parties3 |
|
|
130,722 |
|
|
|
5,604 |
|
|
|
825 |
|
Accounts receivable, net3 |
|
|
139,164 |
|
|
|
116,227 |
|
|
|
17,118 |
|
Loan receivables, net3 |
|
|
— |
|
|
|
17,965 |
|
|
|
2,646 |
|
Short-term investment3 |
|
|
69,618 |
|
|
|
33,698 |
|
|
|
4,963 |
|
Prepaid expenses and other current assets |
|
|
91,002 |
|
|
|
56,546 |
|
|
|
8,328 |
|
Deferred tax assets |
|
|
68,292 |
|
|
|
68,292 |
|
|
|
10,058 |
|
Property and equipment |
|
|
39,084 |
|
|
|
24,488 |
|
|
|
3,607 |
|
Right-of-use assets |
|
|
37,215 |
|
|
|
13,152 |
|
|
|
1,937 |
|
Long-term investment |
|
|
3,826 |
|
|
|
99,640 |
|
|
|
14,675 |
|
TOTAL
ASSETS |
|
|
701,072 |
|
|
|
532,438 |
|
|
|
78,418 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and welfare payable |
|
|
48,524 |
|
|
|
39,948 |
|
|
|
5,884 |
|
Amounts due to related parties |
|
|
872 |
|
|
|
12,753 |
|
|
|
1,878 |
|
Refund liabilities |
|
|
180,104 |
|
|
|
13,071 |
|
|
|
1,925 |
|
Tax payables |
|
|
179,421 |
|
|
|
248,070 |
|
|
|
36,537 |
|
Accrued expenses and other current liabilities |
|
|
158,705 |
|
|
|
81,681 |
|
|
|
12,030 |
|
Other payable related to the disposal of Shanghai Caiyin |
|
|
839,830 |
|
|
|
680,683 |
|
|
|
100,254 |
|
Lease liabilities |
|
|
35,215 |
|
|
|
11,101 |
|
|
|
1,635 |
|
TOTAL
LIABILITIES |
|
|
1,442,671 |
|
|
|
1,087,307 |
|
|
|
160,143 |
|
SHAREHOLDERS'
DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares (US$ 0.000000005 par value;
100,100,000 shares issued and outstanding as of
December 31, 2019 and September 30, 2020)4 |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Class B ordinary shares (US$ 0.000000005 par value;
116,000,000 shares issued and outstanding as of
December 31, 2019 and September 30, 2020)4 |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Additional paid-in capital |
|
|
777,408 |
|
|
|
799,602 |
|
|
|
117,769 |
|
Accumulated deficit |
|
|
(1,519,731 |
) |
|
|
(1,352,471 |
) |
|
|
(199,197 |
) |
Other comprehensive income |
|
|
469 |
|
|
|
(4,385 |
) |
|
|
(647 |
) |
Total Jiayin Group shareholder's deficit |
|
|
(741,854 |
) |
|
|
(557,254 |
) |
|
|
(82,075 |
) |
Non-controlling interests |
|
|
255 |
|
|
|
2,385 |
|
|
|
350 |
|
TOTAL SHAREHOLDERS'
DEFICIT |
|
|
(741,599 |
) |
|
|
(554,869 |
) |
|
|
(81,725 |
) |
TOTAL LIABILITIES AND
DEFICIT |
|
|
701,072 |
|
|
|
532,438 |
|
|
|
78,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JIAYIN GROUP INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME(Amounts in thousands, except for share and per
share data) |
|
|
|
For the Three Months EndedSeptember
30, |
|
|
For the Nine Months EndedSeptember
30, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net revenue (including revenue from related parties
of RMB 654 and RMB 993 for 2019Q3 and
2020Q3, respectively) |
|
|
510,773 |
|
|
|
401,310 |
|
|
|
59,107 |
|
|
|
1,887,556 |
|
|
|
959,825 |
|
|
|
141,367 |
|
Operating cost and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and servicing |
|
|
(101,128 |
) |
|
|
(59,478 |
) |
|
|
(8,760 |
) |
|
|
(354,929 |
) |
|
|
(174,341 |
) |
|
|
(25,678 |
) |
Allowance for uncollectible
accounts receivable, contract assets and loan
receivables |
|
|
(67,780 |
) |
|
|
(15,845 |
) |
|
|
(2,334 |
) |
|
|
(182,325 |
) |
|
|
(56,971 |
) |
|
|
(8,391 |
) |
Sales and marketing |
|
|
(152,364 |
) |
|
|
(99,500 |
) |
|
|
(14,655 |
) |
|
|
(492,336 |
) |
|
|
(257,584 |
) |
|
|
(37,938 |
) |
General and
administrative |
|
|
(47,465 |
) |
|
|
(37,273 |
) |
|
|
(5,490 |
) |
|
|
(154,405 |
) |
|
|
(112,099 |
) |
|
|
(16,510 |
) |
Research and development |
|
|
(58,566 |
) |
|
|
(39,200 |
) |
|
|
(5,774 |
) |
|
|
(162,785 |
) |
|
|
(109,674 |
) |
|
|
(16,153 |
) |
Total operating cost
and expenses |
|
|
(427,303 |
) |
|
|
(251,296 |
) |
|
|
(37,013 |
) |
|
|
(1,346,780 |
) |
|
|
(710,669 |
) |
|
|
(104,670 |
) |
Income from
operation |
|
|
83,470 |
|
|
|
150,014 |
|
|
|
22,094 |
|
|
|
540,776 |
|
|
|
249,156 |
|
|
|
36,697 |
|
Interest income (expense) |
|
|
88 |
|
|
|
2,488 |
|
|
|
366 |
|
|
|
(88 |
) |
|
|
7,727 |
|
|
|
1,138 |
|
Other income (expense),
net |
|
|
7,308 |
|
|
|
(32,763 |
) |
|
|
(4,825 |
) |
|
|
20,876 |
|
|
|
(28,611 |
) |
|
|
(4,214 |
) |
Income before income
taxes and income from investment in affiliates |
|
|
90,866 |
|
|
|
119,739 |
|
|
|
17,635 |
|
|
|
561,564 |
|
|
|
228,272 |
|
|
|
33,621 |
|
Income tax expense |
|
|
(9,099 |
) |
|
|
(32,128 |
) |
|
|
(4,732 |
) |
|
|
(79,623 |
) |
|
|
(60,070 |
) |
|
|
(8,847 |
) |
Income from investment in
affiliates |
|
|
— |
|
|
|
740 |
|
|
|
109 |
|
|
|
— |
|
|
|
713 |
|
|
|
105 |
|
Net
income |
|
|
81,767 |
|
|
|
88,351 |
|
|
|
13,012 |
|
|
|
481,941 |
|
|
|
168,915 |
|
|
|
24,879 |
|
Less: net income (loss)
attributable to non-controlling interest shareholders |
|
|
152 |
|
|
|
2,209 |
|
|
|
324 |
|
|
|
(76 |
) |
|
|
1,655 |
|
|
|
244 |
|
Net income
attributable to Jiayin Group Inc. |
|
|
81,615 |
|
|
|
86,142 |
|
|
|
12,688 |
|
|
|
482,017 |
|
|
|
167,260 |
|
|
|
24,635 |
|
Weighted average
shares used in calculating net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
|
216,100,000 |
|
|
|
216,100,000 |
|
|
|
216,100,000 |
|
|
|
206,307,671 |
|
|
|
216,100,000 |
|
|
|
216,100,000 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
|
0.38 |
|
|
|
0.40 |
|
|
|
0.06 |
|
|
|
2.34 |
|
|
|
0.77 |
|
|
|
0.11 |
|
Other comprehensive
income, net of tax of nil: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments |
|
|
10,769 |
|
|
|
(8,449 |
) |
|
|
(1,243 |
) |
|
|
10,777 |
|
|
|
(4,878 |
) |
|
|
(719 |
) |
Comprehensive
income |
|
|
92,536 |
|
|
|
79,902 |
|
|
|
11,769 |
|
|
|
492,718 |
|
|
|
164,037 |
|
|
|
24,160 |
|
Comprehensive income (loss)
attributable to non-controlling interest |
|
|
151 |
|
|
|
2,151 |
|
|
|
317 |
|
|
|
(76 |
) |
|
|
1,631 |
|
|
|
240 |
|
Total comprehensive
income attributable to Jiayin Group
Inc. |
|
|
92,385 |
|
|
|
77,751 |
|
|
|
11,452 |
|
|
|
492,794 |
|
|
|
162,406 |
|
|
|
23,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
1 “Loan origination volume” refers to the total amount of loans
facilitated in Mainland China during the period presented.2 “Repeat
borrowing rate” refers to the repeat borrowers as a percentage of
all of our borrowers in Mainland China.3 The Company has adopted
“ASC 326, Financial Instruments — Credit Losses”
beginning January 1, 2020 . As of now, the adoption of the new
guidance did not have material impacts on the Company’s results of
operations, financial condition or liquidity.4 The total shares
authorized for both Class A and Class B are 10,000,000,000,000.
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