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 fourth quarter
and fiscal year ended December 31, 2019.
Fourth Quarter 2019 Operational and Financial
Highlights:
- Average investment amount per investor was RMB91,033
(US$13,076), representing an increase of 73.7% from the same period
of 2018.
- Average borrowing amount per borrower was RMB8,042 (US$ 1,155),
representing an increase of 14.1% from the same period of
2018.
- Loan origination volume1 was RMB2,900 million (US$417 million),
representing a decrease of 56.1% from the same period of 2018, and
a decrease of 38.6% sequentially.
- Investment volume2 was RMB3,990 million (US$573 million),
representing a decrease of 47.1% from the same period of 2018, and
a decrease of 22.2% sequentially.
- Net revenue was RMB352.5 million (US$50.6 million),
representing a decrease of 50.4% from the same period of 2018, and
a decrease of 31.0% sequentially.
- Operating loss was RMB28.9 million (US$4.1 million), compared
with operating income of RMB170.2 million in the same period of
2018, and operating income of RMB83.5 million in the prior
quarter.
- Net income was RMB22.6 million (US$3.2 million), compared with
net income of RMB162.3 million in the same period of 2018, and net
income of RMB81.8 million in the prior quarter.
Full Year 2019 Operational and Financial
Highlights:
- Average investment amount per investor was RMB113,775 (US$
16,343), representing an increase of 40.9% from 2018.
- Average borrowing amount per borrower was RMB8,364 (US$ 1,201),
representing an increase of 21.3% from 2018.
- Loan origination volume was RMB19,053 million (US$2,737
million), representing a decrease of 19.5% from 2018.
- Investment volume was RMB23,025 million (US$3,307 million),
representing a decrease of 14.0% from 2018.
- Net revenue was RMB2,230.2 million (US$320.3 million),
representing a decrease of 22.6% from 2018.
- Operating income was RMB534.7 million (US$76.8 million),
compared with operating income of RMB685.2 million in
2018.
- Net income was RMB527.2 million (US$75.7 million), compared
with net income of RMB611.8 million in 2018.
Mr. Yan Dinggui, the Founder, Director and Chief Executive
Officer, commented, “Our fourth quarter operating results reflect
both the regulatory turbulence adversely impacting our industry and
the proactive actions we are taking to position us as a healthy and
safe platform. Loan volume was generally down across the
industry due to the challenging market conditions. While we
are responding to the current environment, we are not losing sight
of our long-term strategy. By focusing on high profile
borrowers, reducing risks and improving our asset quality, we are
prepared for our resumed growth. Our actions have resulted in
significantly higher average investment and higher average
borrowing per person, which demonstrates our customers’ strong
confidence in our platform.”
Fourth Quarter 2019 Financial Results
Net revenue was RMB352.5 million (US$50.6
million), representing a decrease of 50.4% from the same period of
2018.
Revenue from loan facilitation services was RMB276.6 million
(US$39.7 million), representing a decrease of 51.0% from the same
period of 2018, primarily due to the decreased loan origination
volume. Loan facilitation service fees from loans funded by
institutional funding partners were RMB45.7 million (US$6.6
million), compared with none from the same period of 2018.
Revenue from post-origination services was RMB48.6 million
(US$7.0 million), representing a decrease of 32.1% from the same
period of 2018. The decrease was due to the decreased loan
origination as well as the cease of post-origination loan services
previously served by Shanghai Caiyin Asset Management Co, Ltd
("Caiyin").
Origination and servicing expense was RMB78.3
million (US$11.3 million), representing a decrease of 33.4% from
the same period of 2018, primarily due to decreased volume of loans
facilitated by the Company.
Allowance for uncollectible receivables and contract
assets was RMB56.0 million (US$8.0 million), representing
a decrease of 28.6% from the same period of 2018, primarily due to
the decrease in loan origination volume.
Sales and marketing expense was RM132.4 million
(US$19.0 million), representing a decrease of 19.3% from the same
period of 2018, primarily due to the reduced advertisement spending
for promotional activities.
General and administrative expense was RMB75.9
million (US$10.9 million), representing an increase of 13.0% from
the same period of 2018. The increase was primarily due to the
increased share-based compensation expense allocated to general and
administrative expenses.
Research and development expense was RMB38.6
million (US$5.5 million), representing a decrease of 46.3% from the
same period of 2018. The decrease was primarily due to our strict
cost control to sustain our profit margin which resulted in a
significant cut in research and development expense.
Losses from operations was RMB28.9 million
(US$4.1 million), compared with an operating income of RMB170.2
million in the same period of 2018.
Net income was RMB22.6 million (US$3.2
million), compared with a net income of RM162.3 million in the same
period of 2018.
Cash and cash equivalents were RMB122.1 million
(US$17.5 million) as of December 31, 2019, compared with RMB41.4
million as of December 31, 2018.
Full Year 2019 Financial Results
Net revenue was RMB2,230.2 million (US$320.3
million), representing a decrease of 22.6% from the same period of
2018.
Revenue from loan facilitation services was RMB1,747.1 million
(US$251 million), representing a decrease of 22.2% from 2018,
primarily due to the decreased loan origination volume. Loan
facilitation service fees from loan funded by institutional funding
partners were RMB80.7 million (US$11.6 million), compared with none
from 2018.
Revenue from post-origination services was RMB267.0 million
(US$38.4 million), representing an increase of 10.3% from 2018,
primarily due to the accumulated loans originated during prior
periods, offset by the decrease in loan origination volume as well
as the cease of post-origination service previously provided by
Caiyin.
Origination and servicing expense was RMB425.6
million (US$61.1 million), representing an increase of 5.9% from
2018, primarily due to the increased cost of credit assessment and
loan collection.
Allowance for uncollectible receivables and contract
assets was RMB238.4 million (US$34.2 million),
representing a decrease of 10.4% from 2018, primarily due to the
decrease in loan origination volume and the increased efforts in
credit assessment and risk control.
Sales and marketing expense was RM606.0 million
(US$87.1 million), representing a decrease of 16.6% from 2018,
primarily due to the reduced advertisement spending for promotional
activities.
General and administrative expense was RM224.1
million (US$32.2 million), representing an increase of 49.0% from
2018. The increase was primarily due to the increased share-based
compensation expense allocated to general and administrative
expenses.
Research and development expense was RMB201.4
million (US$28.9 million), representing an increase of 9.3% from
2018. The increase was primarily due to an increase in fees paid to
third parties for advanced technology and equipments, and an
increase in share-based compensation expense allocated to research
and development expenses.
Income from operations was RMB534.7 million
(US$76.8 million), compared with an operating income of RMB685.2
million in 2018.
Net income was RMB527.2 million (US$75.7
million), compared with a net income of RM611.8 million in
2018.
Conference Call
The Company will host a conference call to discuss its financial
results on Wednesday, April 1, 2020 at 8:00 a.m. US Eastern Time/
8:00 PM Beijing/Hong Kong Time.
Please register in advance to join the conference using the link
provided below and dial in 10 minutes before the call is scheduled
to begin. Conference access information will be provided upon
registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/4556618
A replay of the conference call may be accessed by phone at the
following numbers until April 9, 2020. To access the replay, please
reference the conference ID
4556618.
|
Phone Number |
Toll-Free Number |
United States |
+1 (646) 254-3697 |
+1 (855) 452-5696 |
Hong Kong |
+852 30512780 |
+852 800963117 |
Mainland China |
|
+86 4006322162+86 8008700205 |
A live and archived webcast of the conference call will be
available on the company’s investors relations website
at http://ir.jiayin-fintech.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading online individual finance
marketplace in China committed to facilitating effective,
transparent, secure and fast connections between investors and
borrowers, whose needs are underserved by traditional financial
institutions. The origin of the business of the Company can be
traced back to 2011. The Company operates a highly secure and open
platform with a comprehensive risk management system and a
proprietary and effective risk assessment model which employs
advanced big data analytics and sophisticated algorithms to
accurately assess the risk profiles of potential borrowers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) 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 RMB6.9618 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as
of December 31, 2019. The Company makes no representation that the
RMB or US$ 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 December 31, |
|
|
2018 |
|
2019 |
|
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
41,441 |
|
122,149 |
|
17,546 |
Restricted cash |
|
41,500 |
|
- |
|
- |
Amounts due from related parties |
|
- |
|
130,722 |
|
18,777 |
Accounts receivable, net |
|
336,849 |
|
139,164 |
|
19,990 |
Contract assets, net |
|
203,080 |
|
- |
|
- |
Assets from the investor assurance program, net |
|
5,525 |
|
- |
|
- |
Short-term Investment |
|
- |
|
69,618 |
|
10,000 |
Prepaid expenses and other current assets |
|
88,234 |
|
91,002 |
|
13,072 |
Deferred tax assets |
|
56,027 |
|
68,292 |
|
9,810 |
Long-term Investment |
|
- |
|
3,826 |
|
550 |
Property and equipment |
|
29,011 |
|
39,084 |
|
5,614 |
Right-of-use assets3 |
|
- |
|
37,215 |
|
5,346 |
Other long-term assets |
|
212 |
|
- |
|
- |
TOTAL
ASSETS |
|
801,879 |
|
701,072 |
|
100,705 |
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Liabilities including amounts of the consolidated VIEs
without recourse to the Company: |
|
|
|
|
|
|
Payroll and welfare payable |
|
110,562 |
|
48,524 |
|
6,970 |
Amounts due to related parties |
|
84,509 |
|
872 |
|
125 |
Liabilities from investor assurance program |
|
1,547,072 |
|
- |
|
- |
Other guarantee liabilities |
|
4,060 |
|
- |
|
- |
Other Payable |
|
50,783 |
|
31,210 |
|
4,483 |
Contract Liability |
|
- |
|
181,641 |
|
26,091 |
Other Payable related to the disposal of Caiyin |
|
- |
|
839,830 |
|
120,634 |
Tax payables |
|
422,177 |
|
179,421 |
|
25,772 |
Refund liabilities |
|
84,498 |
|
- |
|
- |
Lease liabilities3 |
|
- |
|
35,215 |
|
5,058 |
Accrued expenses and other current liabilities |
|
150,224 |
|
125,958 |
|
18,096 |
TOTAL
LIABILITIES |
|
2,453,885 |
|
1,442,671 |
|
207,229 |
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
December 31, 2019, respectively) |
|
0 |
|
|
0 |
|
|
0 |
|
Additional paid-in capital |
|
395,472 |
|
|
777,408 |
|
|
111,668 |
|
Accumulated deficit4 |
|
(2,047,478 |
) |
|
(1,519,731 |
) |
|
(218,296 |
) |
Other comprehensive income |
|
- |
|
|
469 |
|
|
67 |
|
Total Jiayin Group shareholder's deficit |
|
(1,652,006 |
) |
|
(741,854 |
) |
|
(106,561 |
) |
Non-controlloing
interests |
|
- |
|
|
255 |
|
|
37 |
|
TOTAL SHAREHOLDERS'
DEFICIT |
|
(1,652,006 |
) |
|
(741,599 |
) |
|
(106,524 |
) |
TOTAL LIABILITIES AND
DEFICIT |
|
801,879 |
|
|
701,072 |
|
|
100,705 |
|
|
JIAYIN GROUP INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (Amounts in thousands, except for share
and per share data) |
|
|
For the Three Months EndedDecember
31, |
|
For the Year EndedDecember
31, |
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Net
revenue |
710,257 |
|
|
352,455 |
|
|
50,627 |
|
|
2,881,940 |
|
|
2,230,176 |
|
|
320,345 |
|
Operating cost and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Origination and servicing |
(117,644 |
) |
|
(78,333 |
) |
|
(11,252 |
) |
|
(401,679 |
) |
|
(425,565 |
) |
|
(61,129 |
) |
Allowance for uncollectible accounts receivable and contract
assets |
(78,360 |
) |
|
(56,025 |
) |
|
(8,048 |
) |
|
(265,978 |
) |
|
(238,350 |
) |
|
(34,237 |
) |
Provision for assets and liabilities from investor assurance
program |
(41,018 |
) |
|
- |
|
|
- |
|
|
(467,728 |
) |
|
- |
|
|
- |
|
Sales and marketing |
(163,952 |
) |
|
(132,434 |
) |
|
(19,023 |
) |
|
(726,582 |
) |
|
(606,049 |
) |
|
(87,054 |
) |
General and administrative |
(67,193 |
) |
|
(75,923 |
) |
|
(10,906 |
) |
|
(150,465 |
) |
|
(224,139 |
) |
|
(32,196 |
) |
Research and development |
(71,915 |
) |
|
(38,619 |
) |
|
(5,547 |
) |
|
(184,302 |
) |
|
(201,404 |
) |
|
(28,930 |
) |
Total operating cost and expenses |
(540,082 |
) |
|
(381,334 |
) |
|
(54,776 |
) |
|
(2,196,734 |
) |
|
(1,695,507 |
) |
|
(243,546 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operation |
170,175 |
|
|
(28,879 |
) |
|
(4,149 |
) |
|
685,206 |
|
|
534,669 |
|
|
76,799 |
|
Interest income (expense) |
(872 |
) |
|
5,806 |
|
|
828 |
|
|
169 |
|
|
5,720 |
|
|
822 |
|
Other income, net |
8,258 |
|
|
3,012 |
|
|
433 |
|
|
20,298 |
|
|
23,803 |
|
|
3,419 |
|
Income (loss) before income taxes |
177,561 |
|
|
(20,061 |
) |
|
(2,888 |
) |
|
705,673 |
|
|
564,192 |
|
|
81,040 |
|
Income tax (expense) benefit |
(15,226 |
) |
|
42,616 |
|
|
6,121 |
|
|
(93,915 |
) |
|
(37,007 |
) |
|
(5,316 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
162,335 |
|
|
22,555 |
|
|
3,233 |
|
|
611,758 |
|
|
527,185 |
|
|
75,724 |
|
Less: net loss attributable to non-controlling interest
shareholders |
- |
|
|
(487 |
) |
|
(70 |
) |
|
- |
|
|
(562 |
) |
|
(81 |
) |
Net income attributable to Jiayin Group
Inc. |
162,335 |
|
|
23,042 |
|
|
3,303 |
|
|
611,758 |
|
|
527,747 |
|
|
75,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
210,409,863 |
|
|
210,409,863 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
0.81 |
|
|
0.11 |
|
|
0.02 |
|
|
3.06 |
|
|
2.51 |
|
|
0.36 |
|
Net income per ADS (1 ADS represents 4 ordinary
shares): |
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
3.25 |
|
|
0.44 |
|
|
0.08 |
|
|
12.24 |
|
|
10.04 |
|
|
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax of
nil: |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
- |
|
|
(10,305 |
) |
|
(1,480 |
) |
|
- |
|
|
471 |
|
|
68 |
|
Comprehensive income |
162,335 |
|
|
12,250 |
|
|
1,753 |
|
|
611,758 |
|
|
527,656 |
|
|
75,792 |
|
Comprehensive loss attributable to non-controlling
interest |
|
|
(487 |
) |
|
(70 |
) |
|
|
|
(560 |
) |
|
(80 |
) |
Total comprehensive income attributable to Jiayin Group
Inc. |
162,335 |
|
|
12,737 |
|
|
1,823 |
|
|
611,758 |
|
|
528,216 |
|
|
75,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________
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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