Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a
leading fintech platform in China, today announced its unaudited
financial results for the first quarter ended March 31, 2020.
First Quarter 2020 Operational and Financial Highlights
:
- Average investment amount per individual investor was RMB91,318
(US$12,897), representing an increase of 37.6% from the same period
of 2019.
- Average borrowing amount per borrower was RMB7,809 (US$ 1,103),
representing an increase of 8.1% from the same period of
2019.
- Loan origination volume1 was RMB2,896 million (US$409 million),
representing a decrease of 55.7% from the same period of 2019, and
remaining stable sequentially.
- Investment volume2 was RMB3,960 million (US$559 million),
representing a decrease of 48.3% from the same period of 2019, and
remaining stable sequentially.
- Net revenue was RMB313.5 million (US$44.3 million),
representing a decrease of 57.1% from the same period of 2019, and
a decrease of 11.1% sequentially.
- Operating income was RMB51.1 million (US$7.2 million), compared
with operating income of RMB294.7 million in the same period of
2019, and operating loss of RMB28.9 million in the prior
quarter.
- Net income was RMB39.5 million (US$5.6 million), compared with
net income of RMB254.2 million in the same period of 2019, and net
income of RMB22.6 million in the prior quarter.
Mr. Yan Dinggui, the Founder, Director and Chief Executive
Officer, commented, “Despite the unprecedented challenging
conditions arising from both the global pandemic and economic
uncertainties, our enhanced risk management system and solid asset
quality enabled us to maintain solid financial results. In face of
the COVID-19 outbreak, we have been especially vigilant on cost
control which improved our operational efficiency. Our
conservative strategy helped us achieve operational profitability.
Right now, China’s consumer markets are recovering and consumer
demands are rebounding. We are confident that Jiayin can get
through this unusual period with a strong and growing business, and
achieve our long-term growth objectives.”
Mr. Yan continued: “The ongoing pandemic has had a material and
extended adverse impact on the Chinese and global economy, however,
Jiayin has achieved a significant milestone this quarter that
positioned us for strong growth in the years ahead. In March, our
total loan origination volume facilitated by institutional
investors reached 44.5%, compared with zero in the same period of
2019. In Q2, we successfully completed the transition from being
facilitated by individual investors to being fully funded through
institutional investors. This is a huge accomplishment and we are
proud of our rapid expansion of our funding sources towards
institutional funding, which demonstrates our strong brand
recognition and solid execution capabilities.”
First Quarter 2020 Financial Results
Net revenue was RMB313.5 million (US$44.3
million), representing a decrease of 57.1% from the same period of
2019.
Revenue from loan facilitation services was RMB257.3 million
(US$36.3 million), representing a decrease of 56.8% from the same
period of 2019. The decrease was primarily due to the decreased
loan origination volume. The loan facilitation service fees from
loans funded by institutional funding partners were RMB77.2 million
(US$10.9 million), which represented 30.0% of our total revenue
from loan facilitation services, compared with nil from the same
period of 2019.
Revenue from post-origination services was RMB35.7 million
(US$5.0 million), representing a decrease of 51.3% from the same
period of 2019. The decrease was due to the lower loan origination
as well as the disposal of Shanghai Caiyin Asset Management Co,.
Ltd (“Caiyin”) that previously provided certain post-origination
loan services.
Origination and servicing expense was RMB63.9
million (US$9.0 million), representing a decrease of 46.0% from the
same period of 2019, primarily due to decreased volume of loans
facilitated by the Company.
Allowance for uncollectible receivables and contract
assets was RMB30.4 million (US$4.3 million), representing
a decrease of 30.6% from the same period of 2019, primarily due to
the decrease in loan origination volume.
Sales and marketing expense was RMB93.4 million
(US$13.2 million), representing a decrease of 45.5% from the same
period of 2019, primarily due to the decrease in customer
acquisition expenses and reduced advertisement spending for
promotional activities.
General and administrative expense was RMB38.3
million (US$5.4 million), representing a decrease of 22.4% from the
same period of 2019. The decrease was primarily due to the
decreased share-based compensation expense.
Research and development expense was RMB36.4
million (US$5.1 million), representing a decrease of 32.3% from the
same period of 2019. The decrease was primarily due to the
decreased share-based compensation expense.
Income from operations was RMB51.1 million
(US$7.2 million), compared with an operating income of RMB294.7
million in the same period of 2019, and operating loss of RMB28.9
million in the prior quarter.
Net income was RMB39.5 million (US$5.6
million), compared with a net income of RMB254.2 million in the
same period of 2019, and net income of RMB22.6 million in the prior
quarter.
Cash and cash equivalents were RMB66.8 million
(US$9.4 million) as of March 31, 2020, compared with RMB122.1
million as of December 31, 2019.
Conference Call
The Company will host a conference call to discuss its financial
results on Thursday, June 11, 2020 at 8:00 a.m. US. Eastern Time
(8:00 PM Beijing/Hong Kong Time).
Please register in advance to join the conference using the link
provided below and dial in 10 minutes before the call is scheduled
to begin. Conference access information will be provided upon
registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/8688884
A replay of the conference call may be accessed by phone at the
following numbers until June 19, 2020. To access the replay, please
reference the conference ID
8688884.
|
Phone Number |
Toll-Free Number |
United States |
+1 (646) 254-3697 |
+1 (855) 452-5696 |
Hong Kong |
+852 30512780 |
+852 800963117 |
Mainland China |
|
+86 4006322162+86 8008700205 |
A live and archived webcast of the conference call will be
available on the company’s investors relations website
at http://ir.jiayin-fintech.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading fintech platform in China
committed to facilitating effective, transparent, secure and fast
connections between investors and borrowers, whose needs are
underserved by traditional financial institutions. The origin of
the business of the Company can be traced back to 2011. The Company
operates a highly secure and open platform with a comprehensive
risk management system and a proprietary and effective risk
assessment model which employs advanced big data analytics and
sophisticated algorithms to accurately assess the risk profiles of
potential borrowers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) 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 RMB7.0808 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as
of March 31, 2020. The Company makes no representation that the RMB
or US$ 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@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 ofDecember 31, |
|
|
As of March 31, |
|
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
122,149 |
|
|
|
66,832 |
|
|
|
9,439 |
|
Restricted cash |
|
|
— |
|
|
|
2,000 |
|
|
|
282 |
|
Amounts due from related parties |
|
|
130,722 |
|
|
|
135,451 |
|
|
|
19,129 |
|
Accounts receivable, net3 |
|
|
139,164 |
|
|
|
137,987 |
|
|
|
19,488 |
|
Loan receivables, net |
|
|
— |
|
|
|
947 |
|
|
|
134 |
|
Short-term investment |
|
|
69,618 |
|
|
|
70,808 |
|
|
|
10,000 |
|
Prepaid expenses and other current assets |
|
|
91,002 |
|
|
|
97,490 |
|
|
|
13,768 |
|
Deferred tax assets |
|
|
68,292 |
|
|
|
68,292 |
|
|
|
9,645 |
|
Property and equipment |
|
|
39,084 |
|
|
|
33,560 |
|
|
|
4,740 |
|
Right-of-use assets |
|
|
37,215 |
|
|
|
30,725 |
|
|
|
4,339 |
|
Long-term investment |
|
|
3,826 |
|
|
|
6,461 |
|
|
|
912 |
|
TOTAL
ASSETS |
|
|
701,072 |
|
|
|
650,553 |
|
|
|
91,876 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and welfare payable |
|
|
48,524 |
|
|
|
46,629 |
|
|
|
6,585 |
|
Amounts due to related parties |
|
|
872 |
|
|
|
3,034 |
|
|
|
429 |
|
Refund liabilities |
|
|
180,104 |
|
|
|
184,864 |
|
|
|
26,108 |
|
Tax payables |
|
|
179,421 |
|
|
|
198,495 |
|
|
|
28,033 |
|
Accrued expenses and other current liabilities |
|
|
158,705 |
|
|
|
159,453 |
|
|
|
22,519 |
|
Other Payable related to the disposal of Shanghai Caiyin |
|
|
839,830 |
|
|
|
717,364 |
|
|
|
101,311 |
|
Lease liabilities |
|
|
35,215 |
|
|
|
28,512 |
|
|
|
4,027 |
|
TOTAL
LIABILITIES |
|
|
1,442,671 |
|
|
|
1,338,351 |
|
|
|
189,012 |
|
SHAREHOLDERS'
DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares (US$ 0.000000005 par value;
100,100,000 shares issued and outstanding as of December 31,
2019 and March 31, 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 March 31, 2020)4 |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Additional paid-in capital |
|
|
777,408 |
|
|
|
787,292 |
|
|
|
111,187 |
|
Accumulated deficit |
|
|
(1,519,731 |
) |
|
|
(1,479,255 |
) |
|
|
(208,911 |
) |
Other comprehensive income |
|
|
469 |
|
|
|
4,405 |
|
|
|
622 |
|
Total Jiayin Group shareholder's deficit |
|
|
(741,854 |
) |
|
|
(687,558 |
) |
|
|
(97,102 |
) |
Non-controlling interests |
|
|
255 |
|
|
|
(240 |
) |
|
|
(34 |
) |
TOTAL SHAREHOLDERS'
DEFICIT |
|
|
(741,599 |
) |
|
|
(687,798 |
) |
|
|
(97,136 |
) |
TOTAL LIABILITIES AND
DEFICIT |
|
|
701,072 |
|
|
|
650,553 |
|
|
|
91,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JIAYIN GROUP INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Amounts in
thousands, except for share and per share data)
|
|
For the Three Months EndedMarch
31, |
|
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net revenue (including revenue from related parties of
nil, and RMB 1,118 for 2019Q1 and 2020Q1,
respectively) |
|
|
731,331 |
|
|
|
313,526 |
|
|
|
44,278 |
|
Operating cost and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Origination and servicing |
|
|
(118,434 |
) |
|
|
(63,936 |
) |
|
|
(9,030 |
) |
Allowance for uncollectible
account receivable and contract assets |
|
|
(43,794 |
) |
|
|
(30,405 |
) |
|
|
(4,294 |
) |
Sales and marketing |
|
|
(171,434 |
) |
|
|
(93,437 |
) |
|
|
(13,195 |
) |
General and administrative |
|
|
(49,290 |
) |
|
|
(38,264 |
) |
|
|
(5,404 |
) |
Research and development |
|
|
(53,722 |
) |
|
|
(36,367 |
) |
|
|
(5,136 |
) |
Total operating cost and
expenses |
|
|
(436,674 |
) |
|
|
(262,409 |
) |
|
|
(37,059 |
) |
Income from
operation |
|
|
294,657 |
|
|
|
51,117 |
|
|
|
7,219 |
|
Interest income (expense) |
|
|
(482 |
) |
|
|
1,982 |
|
|
|
280 |
|
Other income, net |
|
|
3,519 |
|
|
|
1,017 |
|
|
|
144 |
|
Income before income
taxes |
|
|
297,694 |
|
|
|
54,116 |
|
|
|
7,643 |
|
Income tax expense |
|
|
(43,479 |
) |
|
|
(13,937 |
) |
|
|
(1,968 |
) |
Loss from investment in
affiliates |
|
|
— |
|
|
|
(729 |
) |
|
|
(104 |
) |
Net income |
|
|
254,215 |
|
|
|
39,450 |
|
|
|
5,571 |
|
Less: net loss attributable to
noncontrolling interest shareholders |
|
|
— |
|
|
|
(1,026 |
) |
|
|
(145 |
) |
Net income attributable
to Jiayin Group Inc. |
|
|
254,215 |
|
|
|
40,476 |
|
|
|
5,716 |
|
Weighted average shares
used in calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
|
200,000,000 |
|
|
|
216,100,000 |
|
|
|
216,100,000 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
|
1.27 |
|
|
|
0.19 |
|
|
|
0.03 |
|
Other comprehensive
income, net of tax of nil: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments |
|
|
— |
|
|
|
3,968 |
|
|
|
560 |
|
Comprehensive
income |
|
|
254,215 |
|
|
|
43,418 |
|
|
|
6,131 |
|
Comprehensive loss attributable
to noncontrolling interest |
|
|
— |
|
|
|
(994 |
) |
|
|
(140 |
) |
Total comprehensive
income attributable to Jiayin Group
Inc. |
|
|
254,215 |
|
|
|
44,412 |
|
|
|
6,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________
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
“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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