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, 2022.

Second Quarter 2022 Operational and Financial Highlights:

  • Loan origination volume1 was RMB13.5 billion (US$2.0 billion), representing an increase of 138.4% from the same period of 2021.
  • Average borrowing amount per borrowing was RMB8,939 (US$1,335), representing an increase of 49.4% from the same period of 2021.
  • Repeat borrowing rate2 was 67.8%, compared with repeat borrowing rate of 72.4% in the same period of 2021.
  • Net revenue was RMB811.6 million (US$121.2 million), representing an increase of 64.9% from the same period of 2021.
  • Income from operations was RMB344.5 million (US$51.4 million), representing an increase of 130.3% from RMB149.6 million in the same period of 2021.
  • Net income was RMB253.8 million (US$37.9 million), representing an increase of 100.2% from RMB126.8 million in the same period of 2021.

Mr. Yan Dinggui, the Company’s Founder, Director and Chief Executive Officer, commented: “In the second quarter, we achieved another quarter of strong financial and operational performance as we continue to invest into technology innovation and operational efficiency. The most notable of the second quarter’s financial results is that our net revenue grew by 64.9% while our net income more than doubled year over year. Such strong performance was driven by our ongoing efforts in enhancing our risk management capabilities, optimizing our borrower base, and expanding our partnership network of licensed institutions. Going forward, we are confident that our highly automated platforms, diverse funding sources, and global business will position us well in capitalizing on emerging market opportunities.”

Second Quarter 2022 Financial Results

Net revenue was RMB811.6 million (US$121.2 million), representing an increase of 64.9% from the same period of 2021.

Revenue from loan facilitation services was RMB742.6 million (US$110.9 million), representing an increase of 63.7% from the same period of 2021. The increase was primarily due to the increased loan origination volume from the Company’s institutional funding partners.

Other revenue was RMB69.0 million (US$10.3 million), compared with RMB38.5 million in the second quarter of 2021. The increase was mainly driven by revenue generated from individual investor referral services, partially offset by the ongoing restructuring of the Company's overseas business.

Origination and servicing expense was RMB128.3 million (US$19.2 million), representing an increase of 54.2% from the same period of 2021, driven by the increase in the Company’s loan origination volume.

Allowance for receivables and contract assets was RMB7.0 million (US$1.0 million), representing a decrease of 46.2% from the same period of 2021, primarily due to the ongoing restructuring of the Company's overseas business.

Sales and marketing expense was RMB235.0 million (US$35.1 million), representing an increase of 34.9% from the same period of 2021, primarily due to an increase in borrower acquisition expenses in the second quarter of 2022.

General and administrative expense was RMB42.6 million (US$6.4 million), representing an increase of 21.0% from the same period of 2021, primarily driven by an increase in expenditures in employee compensation and related benefits.

Research and development expense was RMB54.1 million (US$8.1 million), representing an increase of 69.6% from the same period of 2021, primarily due to higher employee compensation and benefit costs as well as increased professional service fees.

Income from operations was RMB344.5 million (US$51.4 million), representing an increase of 130.3% from RMB149.6 million in the same period of 2021.

Net income was RMB253.8 million (US$37.9 million), representing an increase of 100.2% from RMB126.8 million in the same period of 2021.

Cash and cash equivalents were RMB213.9 million (US$31.9 million) as of June 30, 2022, compared with RMB170.3 million as of March 31, 2022.

The following table provides the delinquency rates of all outstanding loans on the Company’s platform in Mainland China as of the respective dates indicated.

    Delinquent for
As of   1-30 days 31-60 days 61-90 days 91 -180 days More than 180 days
    (%)
December 31, 2018   1.35 2.53 2.37 5.46 9.45
December 31, 2019   1.27 2.20 1.68 4.79 8.39
December 31, 2020   1.47 0.88 0.70 1.66 1.81
December 31, 2021   1.31 0.90 0.72 1.78 2.12
March 31, 2022   0.78 0.74 0.53 1.61 2.69
June 30, 2022   0.89 0.50 0.44 1.00 2.61

The following chart and table display the historical cumulative M3+ Delinquency Rate by Vintage for loan products facilitated through the Company’s platform in Mainland China.

 

  Month on Book
Vintage 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th
2018Q1 2.41 % 4.38 % 6.21 % 8.05 % 9.80 % 11.35 % 12.71 % 13.80 % 14.61 % 15.10 % 15.38 % 15.44 %
2018Q2 2.43 % 4.43 % 6.15 % 7.87 % 9.47 % 11.02 % 12.30 % 13.50 % 14.25 % 14.70 % 14.94 % 15.00 %
2018Q3 2.23 % 3.89 % 5.66 % 7.30 % 8.89 % 10.64 % 12.00 % 12.86 % 13.47 % 13.87 % 14.07 % 14.13 %
2018Q4 2.26 % 4.53 % 6.38 % 8.25 % 9.99 % 11.40 % 12.44 % 13.22 % 13.83 % 14.25 % 14.53 % 14.64 %
2019Q1 2.17 % 3.86 % 5.32 % 6.84 % 8.13 % 9.21 % 10.21 % 11.07 % 11.85 % 12.45 % 12.80 % 12.87 %
2019Q2 1.83 % 3.40 % 4.59 % 5.85 % 6.98 % 8.21 % 9.35 % 10.33 % 11.08 % 11.54 % 11.73 % 11.74 %
2019Q3 1.64 % 3.41 % 4.26 % 5.42 % 7.03 % 8.60 % 10.13 % 10.94 % 11.59 % 11.92 % 12.04 % 12.01 %
2019Q4 1.31 % 3.08 % 4.52 % 6.27 % 7.69 % 8.69 % 9.51 % 9.99 % 10.31 % 10.49 % 10.55 % 10.54 %
2020Q1 1.67 % 3.43 % 4.46 % 5.36 % 6.11 % 6.67 % 7.09 % 7.38 % 7.61 % 7.76 % 7.84 % 7.85 %
2020Q2 1.46 % 2.37 % 3.11 % 3.68 % 4.14 % 4.52 % 4.80 % 5.08 % 5.27 % 5.42 % 5.49 % 5.51 %
2020Q3 0.96 % 1.70 % 2.24 % 2.77 % 3.27 % 3.73 % 4.16 % 4.47 % 4.71 % 4.87 % 4.96 % 4.98 %
2020Q4 0.85 % 1.74 % 2.37 % 3.00 % 3.49 % 3.89 % 4.24 % 4.50 % 4.72 % 4.87 % 4.96 % 4.99 %
2021Q1 0.96 % 1.83 % 2.45 % 3.04 % 3.51 % 3.95 % 4.28 % 4.56 % 4.78 % 4.93 % 5.01 % 5.03 %
2021Q2 1.00 % 1.90 % 2.65 % 3.30 % 3.90 % 4.35 % 4.64 % 4.89 % 5.01 %      
2021Q3 0.95 % 1.86 % 2.65 % 3.31 % 3.94 % 4.33 %            
2021Q4 0.84 % 1.78 % 2.43 %                  

Recent DevelopmentUS$10 Million Share Repurchase Plan

On June 13, 2022, the Company’s board of directors authorized a share repurchase plan under which the Company may repurchase its ordinary shares with an aggregate value of US$10 million during the 12-month period beginning on June 13, 2022. As of June 30, 2022, the Company had repurchased approximately 0.2 million American depositary shares for approximately US$0.5 million under this share repurchase plan.

Conference Call

The Company will conduct a conference call to discuss its financial results on Thursday, August 18, 2022 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time on the same day).

To join the conference call, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call.

Participant Online Registration: https://register.vevent.com/register/BI2ad8bfdc33154a498bfd411d8238d464

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. For more information, please visit https://ir.jiayin-fintech.com/.

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 RMB6.6981 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2022. The Company makes no representation that the RMB or US$ 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

Mr. Shawn ZhangEmail: ir@jiayinfintech.cn

or

The Blueshirt Group

Ms. Ally WangEmail: ally@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 ofJune 30,  
    2021     2022  
    RMB     RMB     US$  
ASSETS                        
Cash and cash equivalents     182,551       213,883       31,932  
Restricted cash     2,016       2,019       301  
Amounts due from related parties     37,017       37,659       5,622  
Accounts receivable and contract assets, net     502,431       1,115,824       166,588  
Loan receivables, net     329       1,884       281  
Prepaid expenses and other current assets     62,255       72,067       10,759  
Deferred tax assets, net     48,456       85,044       12,697  
Property and equipment, net     9,100       6,259       934  
Right-of-use assets     35,507       27,378       4,087  
Long-term investment     90,528       100,115       14,947  
Other non-current assets     1,242       1,449       216  
TOTAL ASSETS     971,432       1,663,581       248,364  
LIABILITIES AND EQUITY                        
Payroll and welfare payable     56,056       59,490       8,882  
Amounts due to related parties     4,485       3,768       563  
Tax payables     409,063       611,420       91,283  
Accrued expenses and other current liabilities     118,808       221,258       33,030  
Other payable related to the disposal of Shanghai Caiyin     322,028       305,321       45,583  
Lease liabilities     35,243       26,842       4,007  
TOTAL LIABILITIES     945,683       1,228,099       183,348  
SHAREHOLDERS' EQUITY                        
Class A ordinary shares (US$ 0.000000005 par value; 108,100,000 shares issued as of December 31, 2021 and June 30, 2022; 108,100,000 and 107,198,796 shares outstanding as of December 31, 2021 and June 30, 2022)3     0       0       0  
Class B ordinary shares (US$ 0.000000005 par value; 108,000,000 shares issued and outstanding as of December 31, 2021 and June 30, 2022)3     0       0       0  
Additional paid-in capital     840,580       845,856       126,283  
Treasury stock (nil and 901,204 shares as of December 31, 2021 and June 30, 2022, respectively)     -       (3,106 )     (464 )
Accumulated deficit     (794,762 )     (396,182 )     (59,148 )
Accumulated other comprehensive loss     (17,954 )     (8,792 )     (1,313 )
Total Jiayin Group Inc. shareholder's equity     27,864       437,776       65,358  
Non-controlling interests     (2,115 )     (2,294 )     (342 )
TOTAL SHAREHOLDERS' EQUITY     25,749       435,482       65,016  
TOTAL LIABILITIES AND EQUITY     971,432       1,663,581       248,364  
                         

 

 

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,  
    2021     2022     2021     2022  
    RMB     RMB     US$     RMB     RMB     US$  
Net revenue (including revenue from related parties of RMB12,069 and RMB1,513 for 2021Q2 and 2022Q2, RMB23,880 and RMB5,253 for 2021H1 and 2022H1, respectively)     492,173       811,554       121,162       835,228       1,322,728       197,478  
Operating costs and expenses:                                                
Origination and servicing     (83,224 )     (128,283 )     (19,152 )     (147,323 )     (221,685 )     (33,097 )
Cost of sales     (4,983 )     -       -       (4,983 )     -       -  
Allowance for receivables and contract assets     (13,042 )     (7,042 )     (1,051 )     (21,052 )     (11,062 )     (1,652 )
Sales and marketing     (174,220 )     (235,030 )     (35,089 )     (265,465 )     (383,819 )     (57,303 )
General and administrative     (35,169 )     (42,604 )     (6,361 )     (72,962 )     (83,312 )     (12,438 )
Research and development     (31,924 )     (54,128 )     (8,081 )     (60,045 )     (95,895 )     (14,317 )
Total operating costs and expenses     (342,562 )     (467,087 )     (69,734 )     (571,830 )     (795,773 )     (118,807 )
Income from operation     149,611       344,467       51,428       263,398       526,955       78,671  
Interest income     1,018       339       50       113       614       92  
Other income (expense)     10,426       (11,121 )     (1,660 )     12,362       (6,616 )     (988 )
Income before income taxes and income from investment in affiliates     161,055       333,685       49,818       275,873       520,953       77,775  
Income tax expense     (37,222 )     (82,313 )     (12,289 )     (59,391 )     (127,713 )     (19,067 )
Income from investment in affiliates     3,002       2,447       365       4,027       5,227       780  
Net income     126,835       253,819       37,894       220,509       398,467       59,488  
Less: net income (loss) attributable to noncontrollinginterest shareholders     7       (67 )     (10 )     468       (113 )     (17 )
Net income attributable to Jiayin Group Inc.     126,828       253,886       37,904       220,041       398,580       59,505  
Weighted average shares used in calculating net income per share:                                                
- Basic and diluted     216,100,000       216,070,290       216,070,290       216,100,000       216,085,063       216,085,063  
Net income per share:                                                
- Basic and diluted     0.59       1.18       0.18       1.02       1.84       0.28  
Net income     126,835       253,819       37,894       220,509       398,467       59,488  
Other comprehensive income, net of tax of nil:                                                
Foreign currency translation adjustments     (2,587 )     9,955       1,486       (3,551 )     9,095       1,358  
Comprehensive income     124,248       263,774       39,380       216,958       407,562       60,846  
Comprehensive (loss) income attributable to noncontrolling interest     (23 )     (136 )     (20 )     341       (179 )     (27 )
Total comprehensive income attributable to Jiayin Group Inc.     124,271       263,910       39,400       216,617       407,741       60,873  
                                                 

_______________________________

1 “Loan origination volume” refers the loan origination volume 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. “Repeat borrowers” during a certain period refers to borrowers who have borrowed in such period and have borrowed at least twice since such borrowers’ registration on our platform until the end of such period.3 The total shares authorized for both Class A and Class B are 10,000,000,000,000.

A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/31cb07be-0dcc-48b2-a11d-db21e464eaff 

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