Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a
leading fintech platform in China, today announced its unaudited
financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 Operational and Financial Highlights
:
- Loan origination volume1 was RMB2,238 million (US$316.8
million), representing a decrease of 54.3% from the same period of
2019, and a decrease of 22.7% sequentially.
- Average borrowing amount per borrower was RMB6,981 (US$988.1),
representing a decrease of 2.0% from the same period of 2019.
- Repeat borrowing rate2 was 72.0%, compared with repeat
borrowing rate of 50.8% from the same period of 2019.
- Institutional funding accounted for 98.6% of the total loans
facilitated, compared with nil from the same period of 2019.
- Net revenue was RMB245.0 million (US$34.7 million),
representing a decrease of 61.5% from the same period of 2019, and
a decrease of 21.9% sequentially.
- Operating income was RMB48.0 million (US$6.8 million),
representing a decrease of 74.1% from the same period of 2019, and
a decrease of 6.1% sequentially.
- Net income was RMB41.1 million (US$5.8 million), representing a
decrease of 75.6% from the same period of 2019, and an increase of
4.1% sequentially.
Mr. Yan Dinggui, the Founder, Director and Chief Executive
Officer, commented: “We made significant progress in completing our
transition to institutional funding sources and sustained decent
profitability, despite regulatory uncertainties and economic
challenges due to COVID-19. In the second quarter, the loan
origination volume funded by institutions reached 98.6%. This
was quite an accomplishment, considering that institutions funded
only 26.9% in the first quarter and none at all a year ago! We are
proud of our rapid expansion of funding sources towards
institutions. Completing this funding transition while delivering
solid financial results creates a solid foundation for us to resume
growth in the near future.”
Second Quarter 2020 Financial Results
Net revenue was RMB245.0 million (US$34.7
million), representing a decrease of 61.5% from the same period of
2019.
Revenue from loan facilitation services was RMB163.2 million
(US$23.1 million), representing a decrease of 65.8% from the same
period of 2019. The decrease was primarily due to reduced loan
origination volume. The loan facilitation service fees from loans
funded by institutional funding partners were RMB159.6 million
(US$22.6 million), which represented 97.8% of our total revenue
from loan facilitation services, compared with nil in the same
period of 2019.
Revenue from post-origination services was RMB39.8 million
(US$5.6 million), representing a decrease of 53.6% from the same
period of 2019. The decrease was due to the lower outstanding loan
balance as well as the disposal of Shanghai Caiyin Asset Management
Co. Ltd. (“Shanghai Caiyin”), which previously provided certain
post-origination loan services.
Origination and servicing expense were RMB50.9
million (US$7.2 million), representing a decrease of 60.1% from the
same period of 2019, primarily due to the lower volume of loans
facilitated by the Company.
Allowance for uncollectible receivables and contract
assets was RMB10.7 million (US$1.5 million), representing
a decrease of 84.9% from the same period of 2019, primarily due to
reduced loan origination, and the greater effort in credit
assessment that improved the Company’s loan performance.
Sales and marketing expense were RMB64.6
million (US$9.1 million), representing a decrease of 56.9% from the
same period of 2019, primarily due to lower customer acquisition
expenses and reduced advertisement spending for promotional
activities.
General and administrative expense were RMB36.6
million (US$5.2 million), representing a decrease of 28.9% from the
same period of 2019, primarily due to the decrease in share-based
compensation expense and reduced travel and other business-related
expenses.
Research and development expense were RMB34.1
million (US$4.8 million), representing a decrease of 32.5% from the
same period of 2019, primarily due to the decrease in share-based
compensation expense and a more streamlined team in technology and
development department due to the business transition.
Income from operations was RMB48.0 million
(US$6.8 million), representing a decrease of 74.1% from the same
period of 2019, and a decrease of 6.1% sequentially.
Net income was RMB41.1 million (US$5.8
million), representing a decrease of 75.6% from the same period of
2019, and an increase of 4.1% sequentially.
Cash and cash equivalents were RMB69.9 million
(US$9.9 million) as of June 30, 2020, compared with RMB66.8 million
as of March 31, 2020.
Conference Call
The Company will host a conference call to discuss its financial
results on Wednesday, September 2, 2020 at 8:00 a.m. US. Eastern
Time (8:00 PM Beijing/Hong Kong Time).
Please register in advance to join the conference using the link
provided below and dial in 10 minutes before the call is scheduled
to begin. Conference access information will be provided upon
registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/4177177
A replay of the conference call may be accessed by phone at the
following numbers until September 10, 2020. To access the replay,
please reference the conference ID
4177177.
|
Phone Number |
Toll-Free Number |
United States |
+1 (646) 254-3697 |
+1 (855) 452-5696 |
Hong Kong |
+852 30512780 |
+852 800963117 |
Mainland China |
|
+86 4006322162+86 8008700205 |
A live and archived webcast of the conference call will be
available on the company’s investors relations website at
http://ir.jiayin-fintech.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading fintech platform in China
committed to facilitating effective, transparent, secure and fast
connections between investors and borrowers, whose needs are
underserved by traditional financial institutions. The origin of
the business of the Company can be traced back to 2011. The Company
operates a highly secure and open platform with a comprehensive
risk management system and a proprietary and effective risk
assessment model which employs advanced big data analytics and
sophisticated algorithms to accurately assess the risk profiles of
potential borrowers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) 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 RMB7.0651 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as
of June 30, 2020. The Company makes no representation that the RMB
or US$ 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 June 30, |
|
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
122,149 |
|
|
|
69,864 |
|
|
|
9,889 |
|
Restricted cash |
|
|
— |
|
|
|
2,000 |
|
|
|
283 |
|
Amounts due from related parties3 |
|
|
130,722 |
|
|
|
143,296 |
|
|
|
20,282 |
|
Accounts receivable, net3 |
|
|
139,164 |
|
|
|
78,178 |
|
|
|
11,065 |
|
Loan receivables, net3 |
|
|
— |
|
|
|
5,938 |
|
|
|
840 |
|
Short-term investment3 |
|
|
69,618 |
|
|
|
70,651 |
|
|
|
10,000 |
|
Prepaid expenses and other current assets |
|
|
91,002 |
|
|
|
81,128 |
|
|
|
11,483 |
|
Deferred tax assets |
|
|
68,292 |
|
|
|
68,292 |
|
|
|
9,666 |
|
Property and equipment |
|
|
39,084 |
|
|
|
29,079 |
|
|
|
4,116 |
|
Right-of-use assets |
|
|
37,215 |
|
|
|
15,162 |
|
|
|
2,146 |
|
Long-term investment |
|
|
3,826 |
|
|
|
7,206 |
|
|
|
1,021 |
|
TOTAL
ASSETS |
|
|
701,072 |
|
|
|
570,794 |
|
|
|
80,791 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and welfare payable |
|
|
48,524 |
|
|
|
41,602 |
|
|
|
5,888 |
|
Amounts due to related parties |
|
|
872 |
|
|
|
12,992 |
|
|
|
1,839 |
|
Refund liabilities |
|
|
180,104 |
|
|
|
113,238 |
|
|
|
16,028 |
|
Tax payables |
|
|
179,421 |
|
|
|
216,898 |
|
|
|
30,700 |
|
Accrued expenses and other current liabilities |
|
|
158,705 |
|
|
|
128,797 |
|
|
|
18,230 |
|
Other Payable related to the disposal of Shanghai Caiyin |
|
|
839,830 |
|
|
|
684,011 |
|
|
|
96,815 |
|
Lease liabilities |
|
|
35,215 |
|
|
|
13,297 |
|
|
|
1,883 |
|
TOTAL
LIABILITIES |
|
|
1,442,671 |
|
|
|
1,210,835 |
|
|
|
171,383 |
|
SHAREHOLDERS'
DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares (US$ 0.000000005 par value;
100,100,000 shares issued and outstanding as of
December 31, 2019 and June 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 June 30, 2020)4 |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Additional paid-in capital |
|
|
777,408 |
|
|
|
794,332 |
|
|
|
112,431 |
|
Accumulated deficit |
|
|
(1,519,731 |
) |
|
|
(1,438,613 |
) |
|
|
(203,623 |
) |
Other comprehensive income |
|
|
469 |
|
|
|
4,006 |
|
|
|
567 |
|
Total Jiayin Group shareholder's deficit |
|
|
(741,854 |
) |
|
|
(640,275 |
) |
|
|
(90,625 |
) |
Non-controlling interests |
|
|
255 |
|
|
|
(234 |
) |
|
|
(33 |
) |
TOTAL SHAREHOLDERS'
DEFICIT |
|
|
(741,599 |
) |
|
|
(640,041 |
) |
|
|
(90,592 |
) |
TOTAL LIABILITIES AND
DEFICIT |
|
|
701,072 |
|
|
|
570,794 |
|
|
|
80,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JIAYIN GROUP INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Amounts in
thousands, except for share and per share data)
|
|
For the Three Months EndedJune
30, |
|
|
For the Six Months EndedJune
30, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net revenue (including
revenue from related parties of nil
and RMB 5,517 for 2019Q2 and 2020Q2,
nil and RMB 6,635 for 2019H1 and
2020H1, respectively) |
|
|
635,616 |
|
|
|
244,989 |
|
|
|
34,676 |
|
|
|
1,366,947 |
|
|
|
558,515 |
|
|
|
79,053 |
|
Operating cost and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and servicing |
|
|
(127,670 |
) |
|
|
(50,926 |
) |
|
|
(7,208 |
) |
|
|
(246,104 |
) |
|
|
(114,862 |
) |
|
|
(16,258 |
) |
Allowance for uncollectible
accounts receivable and contract assets |
|
|
(70,751 |
) |
|
|
(10,721 |
) |
|
|
(1,518 |
) |
|
|
(114,545 |
) |
|
|
(41,126 |
) |
|
|
(5,821 |
) |
Sales and marketing |
|
|
(149,818 |
) |
|
|
(64,647 |
) |
|
|
(9,150 |
) |
|
|
(321,251 |
) |
|
|
(158,084 |
) |
|
|
(22,375 |
) |
General and administrative |
|
|
(51,460 |
) |
|
|
(36,561 |
) |
|
|
(5,174 |
) |
|
|
(100,751 |
) |
|
|
(74,825 |
) |
|
|
(10,591 |
) |
Research and development |
|
|
(50,497 |
) |
|
|
(34,108 |
) |
|
|
(4,828 |
) |
|
|
(104,219 |
) |
|
|
(70,475 |
) |
|
|
(9,975 |
) |
Total operating cost and
expenses |
|
|
(450,196 |
) |
|
|
(196,963 |
) |
|
|
(27,878 |
) |
|
|
(886,870 |
) |
|
|
(459,372 |
) |
|
|
(65,020 |
) |
Income from
operation |
|
|
185,420 |
|
|
|
48,026 |
|
|
|
6,798 |
|
|
|
480,077 |
|
|
|
99,143 |
|
|
|
14,033 |
|
Interest income (expense) |
|
|
308 |
|
|
|
3,257 |
|
|
|
461 |
|
|
|
(174 |
) |
|
|
5,239 |
|
|
|
741 |
|
Other income, net |
|
|
9,963 |
|
|
|
3,134 |
|
|
|
443 |
|
|
|
13,482 |
|
|
|
4,151 |
|
|
|
588 |
|
Income before income
taxes and income (loss) from
investment in affiliates |
|
|
195,691 |
|
|
|
54,417 |
|
|
|
7,702 |
|
|
|
493,385 |
|
|
|
108,533 |
|
|
|
15,362 |
|
Income tax expense |
|
|
(27,045 |
) |
|
|
(14,006 |
) |
|
|
(1,982 |
) |
|
|
(70,523 |
) |
|
|
(27,943 |
) |
|
|
(3,955 |
) |
Income (loss) from investment in
affiliates |
|
|
— |
|
|
|
702 |
|
|
|
99 |
|
|
|
— |
|
|
|
(27 |
) |
|
|
(4 |
) |
Net income |
|
|
168,646 |
|
|
|
41,113 |
|
|
|
5,819 |
|
|
|
422,862 |
|
|
|
80,563 |
|
|
|
11,403 |
|
Less: net income (loss)
attributable to non-controlling interest
shareholders |
|
|
(227 |
) |
|
|
471 |
|
|
|
66 |
|
|
|
(227 |
) |
|
|
(555 |
) |
|
|
(78 |
) |
Net income attributable
to Jiayin Group Inc. |
|
|
168,873 |
|
|
|
40,642 |
|
|
|
5,753 |
|
|
|
423,089 |
|
|
|
81,118 |
|
|
|
11,481 |
|
Weighted average shares
used in calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
|
209,123,333 |
|
|
|
216,100,000 |
|
|
|
216,100,000 |
|
|
|
204,561,667 |
|
|
|
216,100,000 |
|
|
|
216,100,000 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
|
0.81 |
|
|
|
0.19 |
|
|
|
0.03 |
|
|
|
2.07 |
|
|
|
0.38 |
|
|
|
0.05 |
|
Other comprehensive
income, net of tax of nil: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments |
|
|
7 |
|
|
|
(396 |
) |
|
|
(56 |
) |
|
|
7 |
|
|
|
3,572 |
|
|
|
506 |
|
Comprehensive
income |
|
|
168,653 |
|
|
|
40,717 |
|
|
|
5,763 |
|
|
|
422,869 |
|
|
|
84,135 |
|
|
|
11,909 |
|
Comprehensive income (loss)
attributable to non-controlling interest |
|
|
(227 |
) |
|
|
474 |
|
|
|
67 |
|
|
|
(227 |
) |
|
|
(520 |
) |
|
|
(73 |
) |
Total comprehensive
income attributable to Jiayin Group
Inc. |
|
|
168,880 |
|
|
|
40,243 |
|
|
|
5,696 |
|
|
|
423,096 |
|
|
|
84,655 |
|
|
|
11,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________________________________
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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