Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a
leading fintech platform in China, today announced its unaudited
financial results for the fourth quarter and fiscal year ended
December 31, 2020.
Fourth Quarter 2020 Operational and Financial Highlights
:
- Loan origination volume2 was RMB3,088 million (US$473.3
million), representing an increase of 6.5% from the same period of
2019, and a decrease of 7.3% sequentially.
- Average borrowing amount per borrower was RMB6,532 (US$1,001),
representing a decrease of 18.8% from the same period of 2019.
- Repeat borrowing rate3 was 70.4%, compared with repeat
borrowing rate of 65.0% in the same period of 2019.
- Net revenue was RMB340.3 million (US$52.2 million),
representing a decrease of 3.5% from the same period of 2019, and a
decrease of 15.2% sequentially.
- Operating income was RMB52.9 million (US$8.1 million), compared
with operating loss of RMB28.9 million in the same period of
2019.
- Net income was RMB81.1 million (US$12.4 million), compared with
net income of RMB22.6 million in the same period of 2019.
Full Year 2020 Operational and Financial
Highlights:
- Loan origination volume2 was RMB11,552 million (US$1,770.4
million), representing a decrease of 39.4% from RMB19,053 million
in 2019.
- Average borrowing amount per borrower was RMB6,908 (US$1,059),
representing a decrease of 17.4% from RMB8,364 in 2019.
- Repeat borrowing rate3 was 75.3%, compared with repeat
borrowing rate of 48.0% in 2019.
- Net revenue was RMB1,300.2 million (US$199.3 million),
representing a decrease of 41.7% from RMB2,230.2 million in
2019.
- Operating income was RMB302.1 million (US$46.3 million),
compared with operating income of RMB534.7 million in 2019.
- Net income was RMB250.1 million (US$38.3 million), compared
with net income of RMB527.2 million in 2019.
Mr. Yan Dinggui, the Founder, Director and Chief Executive
Officer, commented: “We have successfully transformed our business
into a dynamic finance technology company. In November 2020, the
outstanding loan balance of our legacy P2P lending business was
reduced to zero. With a sophisticated risk management platform and
a laser-like focus on our business transformation, we were able to
generate solid results in the fourth quarter. Net income of fourth
quarter 2020 was RMB 81.1 million, an increase of 259% from a year
ago. In light of evolving market dynamics and rapidly changing
technologies, we will stay agile and prudent. We will make
investments that will enable us to develop synergistic technologies
and penetrate new markets.”
Fourth Quarter 2020 Financial Results
Net revenue was RMB340.3 million (US$52.2
million), representing a decrease of 3.5% from the same period of
2019.
Revenue from loan facilitation services was RMB291.3 million
(US$44.6 million), representing an increase of 5.3% from the same
period of 2019. The increase was primarily due to the increased
loan origination volume from the institutional funding
partners.
Revenue from post-origination services was RMB3.6 million
(US$0.6 million), representing a decrease of 92.6% from the same
period of 2019. The decrease was due to the lower outstanding loan
balance funded by individual investors.
Other revenue was RMB45.4 million (US$7.0 million), representing
an increase of 66.3% from the same period of 2019. The increase was
primarily due to the growth of the Company's overseas lending
business.
Origination and servicing expense was RMB64.9
million (US$9.9 million), representing a decrease of 17.1% from the
same period of 2019, primarily due to the reduced collection costs
as the Company no longer provides such services under its new
business model.
Allowance for uncollectible accounts receivable,
contract assets and loan receivables was RMB20.3 million
(US$3.1 million), representing a decrease of 63.8% from the same
period of 2019, primarily due to the overall decrease of loan
origination volume, as well as the relatively lower credit risk of
the new business model.
Sales and marketing expense was RMB117.5
million (US$18.0 million), representing a decrease of 11.3% from
the same period of 2019, primarily due to lower customer
acquisition expenses and the decrease in share-based compensation
expenses.
General and administrative expense was RMB42.9
million (US$6.6 million), representing a decrease of 43.5% from
2019, primarily due to the decrease in share-based compensation
expenses allocated to general and administrative expenses.
Research and development expense was RMB41.9
million (US$6.4 million), representing an increase of 8.5% from the
same period of 2019, primarily due to the increase in salaries and
personnel related expenses, as the Company continued to increase
investments into technology development.
Income from operations was RMB52.9 million
(US$8.1 million), compared with an operating loss of RMB28.9
million in the same period of 2019.
Gain from de-recognition of other payable associated
with disposal of Shanghai Caiyin was a gain of RMB117.0
million (US$17.9 million), compared with nil for the corresponding
period in 2019. The gain in this quarter was primarily due to the
waived contingent consideration payable of RMB117.0 million related
to the disposal of Shanghai Caiyin Asset Management Co, Ltd.
(“Shanghai Caiyin”).
Impairment of short-term investment was a loss
of RMB32.6 million (US$5.0 million), compared with nil for the
corresponding period in 2019. The loss in this quarter was
primarily due to the estimated loss related to the convertible
notes issued by Cornerstone Management, Inc. held by the
Company.
Net income was RMB81.1 million (US$12.4
million), compared with net income of RMB22.6 million in the same
period of 2019.
Cash and cash equivalents were RMB117.3 million
(US$18.0 million) as of December 31, 2020, compared with RMB122.1
million as of December 31, 2019.
Full Year 2020 Financial Results
Net revenue was RMB1,300.2 million (US$199.3
million), representing a decrease of 41.7% from RMB2,230.2 million
in 2019.
Revenue from loan facilitation services was RMB1,002.3 million
(US$153.6 million), representing a decrease of 42.6% from 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 RMB112.7 million
(US$17.3 million), representing a decrease of 57.8% from 2019. The
decrease was due to the lower outstanding loan balance funded by
individual investors.
Other revenue was RMB185.1 million (US28.4 million),
representing a decrease of 14.3% from 2019. The decrease was
primarily due to the reduced service fees as the Company no longer
provides the automated investment programs after the transition of
the Company’s funding sources to institutional funding
partners.
Origination and servicing expense was RMB239.2
million (US$36.7 million), representing a decrease of 43.8% from
2019, primarily due to the lower loan origination volume and
reduced collection costs as the Company no longer provides such
services under its new business model.
Allowance for uncollectible accounts receivable,
contract assets and loan receivables was RMB77.3 million
(US$11.8 million), representing a decrease of 67.6% from 2019,
primarily due to the overall decrease of loan origination volume,
as well as the relatively lower credit risk of the new business
model.
Sales and marketing expense was RMB375.1
million (US$57.5 million), representing a decrease of 38.1% from
2019, primarily due to lower customer acquisition expenses and
reduced advertising spending for promotional activities.
General and administrative expense was RMB155.0
million (US$23.8 million), representing a decrease of 30.8% from
2019, primarily due to the decrease in share-based compensation
expenses and the decrease in salaries and personnel related costs,
as well as other business-related expenses.
Research and development expense was RMB151.6
million (US$23.2 million), representing a decrease of 24.7% from
2019, primarily due to the decrease in share-based compensation
expenses.
Income from operations was RMB302.1 million
(US$46.3 million), compared with operating income of RMB534.7
million in 2019.
Gain from de-recognition of other payable associated
with disposal of Shanghai Caiyin was RMB117.0 million
(US$17.9 million), compared with nil for the corresponding period
in 2019. The gain was primarily due to the waived contingent
consideration payable of RMB117.0 million related to the disposal
of Shanghai Caiyin.
Impairment of short-term investment was a loss
of RMB67.2 million (US$10.3 million), compared with nil for the
corresponding period in 2019. The loss was primarily due to the
estimated loss related to the convertible notes issued by
Cornerstone Management, Inc. held by the Company.
Net income was RMB250.1 million (US$38.3
million), compared with net income of RMB527.2 million in 2019.
Conference Call
The Company will host a conference call to discuss its financial
results on Friday, April 9, 2021 at 8:00 a.m. US. Eastern Time
(8:00 PM Beijing/Hong Kong Time).
Please register in advance to join the conference using the link
provided below and dial in 10 minutes before the call is scheduled
to begin. Conference access information will be provided upon
registration.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/8618727
A replay of the conference call may be accessed by phone at the
following numbers until April 17, 2021. To access the replay,
please reference the conference ID 8618727.
|
Phone Number |
Toll-Free Number |
United States |
+1 (646) 254-3697 |
+1 (855) 452-5696 |
Hong Kong |
+852 30512780 |
+852 800963117 |
Mainland China |
|
+86 4006322162+86 8008700205 |
A live and archived webcast of the conference call will be
available on the Company’s investors relations website at
http://ir.jiayin-fintech.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading fintech platform in China
committed to facilitating effective, transparent, secure and fast
connections between underserved individual borrowers and financial
institutions. The origin of the business of the Company can be
traced back to 2011. The Company operates a highly secure and open
platform with a comprehensive risk management system and a
proprietary and effective risk assessment model which employs
advanced big data analytics and sophisticated algorithms to
accurately assess the risk profiles of potential borrowers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) 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 RMB6.5250 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as
of December 31, 2020. The Company makes no representation that the
RMB or US$ 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 Group
Ms. Shelley BaiEmail: ir@jiayinfintech.cn
or
The Blueshirt Group
Ms. 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 December 31, |
|
|
|
2019 |
|
2020 |
|
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
122,149 |
|
117,320 |
|
17,980 |
|
Restricted cash |
|
- |
|
2,000 |
|
307 |
|
Amounts due from related parties4 |
|
130,722 |
|
542 |
|
83 |
|
Accounts receivable, net4 |
|
139,164 |
|
158,064 |
|
24,224 |
|
Loan receivables, net4 |
|
- |
|
31,296 |
|
4,796 |
|
Short-term investment4 |
|
69,618 |
|
- |
|
- |
|
Prepaid expenses and other current assets |
|
91,002 |
|
61,289 |
|
9,393 |
|
Deferred tax assets, net |
|
68,292 |
|
40,935 |
|
6,274 |
|
Property and equipment, net |
|
39,084 |
|
19,449 |
|
2,981 |
|
Right-of-use assets |
|
37,215 |
|
6,926 |
|
1,061 |
|
Long-term investment |
|
3,826 |
|
87,551 |
|
13,418 |
|
TOTAL
ASSETS |
|
701,072 |
|
525,372 |
|
80,517 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
Payroll and welfare payable |
|
48,524 |
|
58,288 |
|
8,933 |
|
Amounts due to related parties |
|
872 |
|
8,785 |
|
1,346 |
|
Refund liabilities |
|
180,104 |
|
- |
|
- |
|
Tax payables |
|
179,421 |
|
279,383 |
|
42,817 |
|
Accrued expenses and other current liabilities |
|
158,705 |
|
70,954 |
|
10,875 |
|
Other payable related to the disposal of Shanghai Caiyin |
|
839,830 |
|
566,532 |
|
86,825 |
|
Lease liabilities |
|
35,215 |
|
5,195 |
|
796 |
|
TOTAL
LIABILITIES |
|
1,442,671 |
|
989,137 |
|
151,592 |
|
SHAREHOLDERS'
DEFICIT |
|
|
|
|
|
|
|
Class A ordinary shares (US$ 0.000000005 par value;
100,100,000 shares issued and outstanding as of December 31,
2019 and 108,100,000 shares issued and outstanding as
of December 31, 2020)5 |
|
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 108,000,000 shares issued and outstanding as
of December 31, 2020)5 |
|
0 |
|
0 |
|
0 |
|
Additional paid-in capital |
|
777,408 |
|
818,042 |
|
125,370 |
|
Accumulated deficit |
|
(1,519,731 |
) |
(1,266,848 |
) |
(194,153 |
) |
Accumulated other comprehensive income (loss) |
|
469 |
|
(12,817 |
) |
(1,964 |
) |
Total Jiayin Group Inc. shareholder's deficit |
|
(741,854 |
) |
(461,623 |
) |
(70,747 |
) |
Non-controlling interests |
|
255 |
|
(2,142 |
) |
(328 |
) |
TOTAL SHAREHOLDERS'
DEFICIT |
|
(741,599 |
) |
(463,765 |
) |
(71,075 |
) |
TOTAL LIABILITIES AND
DEFICIT |
|
701,072 |
|
525,372 |
|
80,517 |
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
Net revenue (including revenue from related
parties of RMB 1,107 and nil for 2019Q4 and
2020Q4, respectively) |
|
352,455 |
|
340,335 |
|
52,159 |
|
2,230,176 |
|
1,300,160 |
|
199,258 |
|
Operating cost and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and servicing |
|
(78,333 |
) |
(64,859 |
) |
(9,940 |
) |
(425,565 |
) |
(239,199 |
) |
(36,659 |
) |
Allowance for uncollectible
accounts receivable, contract assets and loan
receivables |
|
(56,025 |
) |
(20,307 |
) |
(3,112 |
) |
(232,241 |
) |
(77,278 |
) |
(11,843 |
) |
Sales and marketing |
|
(132,434 |
) |
(117,479 |
) |
(18,004 |
) |
(606,049 |
) |
(375,063 |
) |
(57,481 |
) |
General and
administrative |
|
(75,923 |
) |
(42,865 |
) |
(6,569 |
) |
(230,248 |
) |
(154,963 |
) |
(23,749 |
) |
Research and development |
|
(38,619 |
) |
(41,876 |
) |
(6,418 |
) |
(201,404 |
) |
(151,550 |
) |
(23,226 |
) |
Total operating cost
and expenses |
|
(381,334 |
) |
(287,386 |
) |
(44,043 |
) |
(1,695,507 |
) |
(998,053 |
) |
(152,958 |
) |
(Loss) income from
operation |
|
(28,879 |
) |
52,949 |
|
8,116 |
|
534,669 |
|
302,107 |
|
46,300 |
|
Gain from de-recognition of
other payable associated with disposal of Shanghai
Caiyin |
|
- |
|
117,021 |
|
17,934 |
|
- |
|
117,021 |
|
17,934 |
|
Impairment of short-term
investment |
|
- |
|
(32,595 |
) |
(4,995 |
) |
- |
|
(67,169 |
) |
(10,294 |
) |
Interest income (expense) |
|
5,806 |
|
(11 |
) |
(2 |
) |
5,720 |
|
7,716 |
|
1,183 |
|
Other income (expense),
net |
|
2,634 |
|
748 |
|
115 |
|
23,425 |
|
6,711 |
|
1,029 |
|
Income before income
taxes and income from investment in
affiliates |
|
(20,439 |
) |
138,112 |
|
21,168 |
|
563,814 |
|
366,386 |
|
56,152 |
|
Income tax benefit (expense) |
|
42,616 |
|
(48,741 |
) |
(7,470 |
) |
(37,007 |
) |
(108,811 |
) |
(16,676 |
) |
Income (loss) from investment in affiliates |
|
378 |
|
(8,222 |
) |
(1,260 |
) |
378 |
|
(7,509 |
) |
(1,151 |
) |
Net income |
|
22,555 |
|
81,149 |
|
12,438 |
|
527,185 |
|
250,066 |
|
38,325 |
|
Less: net loss attributable to non-controlling
interest shareholders |
|
(487 |
) |
(4,472 |
) |
(685 |
) |
(562 |
) |
(2,817 |
) |
(432 |
) |
Net income attributable to Jiayin Group
Inc. |
|
23,042 |
|
85,621 |
|
13,123 |
|
527,747 |
|
252,883 |
|
38,757 |
|
Weighted average shares used in
calculating net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
216,100,000 |
|
216,100,000 |
|
216,100,000 |
|
210,409,863 |
|
216,100,000 |
|
216,100,000 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted |
|
0.10 |
|
0.40 |
|
0.06 |
|
2.51 |
|
1.17 |
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
22,555 |
|
81,149 |
|
12,438 |
|
527,185 |
|
250,066 |
|
38,325 |
|
Other comprehensive income, net of tax of
nil: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
(10,305 |
) |
(8,489 |
) |
(1,301 |
) |
471 |
|
(13,366 |
) |
(2,048 |
) |
Comprehensive income |
|
12,250 |
|
72,660 |
|
11,137 |
|
527,656 |
|
236,700 |
|
36,277 |
|
Comprehensive loss attributable to non-controlling
interest |
|
(487 |
) |
(6,516 |
) |
(999 |
) |
(560 |
) |
(2,897 |
) |
(444 |
) |
Total comprehensive income attributable to
Jiayin Group Inc. |
|
12,737 |
|
79,176 |
|
12,136 |
|
528,216 |
|
239,597 |
|
36,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________1 The financial statements for the
fourth quarter and full year ended December 31, 2020 herein the
press release have not been audited or reviewed by the Company’s
independent registered accounting firm. The audited financial
statements for the year ended December 31, 2020 to be disclosed in
the Company’s Form 20-F may have discrepancies with the
above-mentioned unaudited and unreviewed financial statements.2
“Loan origination volume” refers the loan origination volume
facilitated in Mainland China during the period presented.3 “Repeat
borrowing rate” refers to the repeat borrowers as a percentage of
all of our borrowers in Mainland China.4 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.5 The total shares
authorized for both Class A and Class B are 10,000,000,000,000.
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