New Zealand markets open in 2 hours 26 minutes
  • NZX 50

    13,333.43
    +221.23 (+1.69%)
     
  • NZD/USD

    0.7189
    -0.0031 (-0.43%)
     
  • ALL ORDS

    7,078.90
    -28.20 (-0.40%)
     
  • OIL

    51.98
    -1.15 (-2.16%)
     
  • GOLD

    1,855.50
    -10.40 (-0.56%)
     

Jiayin Group Inc. Reports Third Quarter 2020 Unaudited Financial Results

Jiayin Group Inc.
·13-min read

--Completed transformation to 100% institutional funding--
--Eliminated outstanding loan balance of legacy P2P lending business--

SHANGHAI, China, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a leading fintech platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Operational and Financial Highlights :

  • Loan origination volume1 was RMB3,330 million (US$490.5 million), representing a decrease of 29.4% from the same period of 2019, and an increase of 48.8% sequentially.

  • Average borrowing amount per borrower was RMB6,556 (US$965.6), representing a decrease of 12.0% from the same period of 2019.

  • Repeat borrowing rate2 was 74.5%, compared with repeat borrowing rate of 52.7% in the same period of 2019.

  • Institutional funding accounted for 100% of the total loans facilitated, compared with 8.2% in the same period of 2019.

  • Net revenue was RMB401.3 million (US$59.1 million), representing a decrease of 21.4% from the same period of 2019, and an increase of 63.8% sequentially.

  • Operating income was RMB150.0 million (US$22.1 million), representing an increase of 79.6% from the same period of 2019, and an increase of 212.5% sequentially.

  • Net income was RMB88.4 million (US$13.0 million), representing an increase of 8.1% from the same period of 2019, and an increase of 115.1% sequentially.

Mr. Yan Dinggui, the Founder, Director and Chief Executive Officer, commented: “I am excited to report another solid quarter of strong business performance. Most notably, we completed the business transition upon which we embarked at the start of the year. I am proud to announce that as of November 10, 2020, the outstanding loan balance of our legacy P2P lending business was reduced to zero! This marks a significant milestone. Jiayin has successfully transformed to a finance technology company fully funded only by institutions. Considering that at this time one year ago, our platform funding was over 90% from individuals, this rapid transition demonstrates our agility and outstanding execution capability.”

Yan added, “In addition to successfully completing our funding transition, we continued to deliver encouraging business results despite the challenging environment. The loans we facilitated performed very well, investor confidence remained strong, we improved operating efficiency, and we maintained attractive profitability. In the quarter, our net income reached RMB88.4 million, up 8.1% year over year and 115.1% sequentially. This remarkable improvement demonstrates both the effectiveness of our growth strategy and our strong execution. Jiayin always strives to operate conservatively but profitably. We believe that our strong underlying business and brand recognition will enable us to achieve robust growth for the coming years.”

Third Quarter 2020 Financial Results

Net revenue was RMB401.3 million (US$59.1 million), representing a decrease of 21.4% from the same period of 2019.

Revenue from loan facilitation services was RMB290.6 million (US$42.8 million), representing a decrease of 26.7% from the same period of 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 RMB33.7 million (US$5.0 million), representing a decrease of 43.2% from the same period of 2019. The decrease was due to the lower outstanding loan balance.

Other revenue was RMB77.0 million (US11.3 million), representing an increase of 40.0% from the same period of 2019. The increase was primarily due to the variable consideration related to automated investment program recognized from loans previously facilitated under the P2P business.

Origination and servicing expenses were RMB59.5 million (US$8.8 million), representing a decrease of 41.1% from the same period of 2019, primarily due to the lower volume of loans facilitated by the Company and reduced collection costs as the company no longer provides such services under its new business model.

Allowance for uncollectable receivables, contract assets and loan receivables was RMB15.8 million (US$2.3 million), representing a decrease of 76.7% from the same period of 2019, primarily due to the the overall decrease of facilitation volume, as well as the relatively lower credit risk of the new business model.

Sales and marketing expenses were RMB99.5 million (US$14.7 million), representing a decrease of 34.7% from the same period of 2019, primarily due to the lower customer acquisition expenses and reduced advertising spending for promotional activities.

General and administrative expenses were RMB37.3 million (US$5.5 million), representing a decrease of 21.5% from the same period of 2019, primarily due to the decrease in share-based compensation expense and the decrease in salaries and personnel related costs, as well as other business-related expenses.

Research and development expenses were RMB39.2 million (US$5.8 million), representing a decrease of 33.1% from the same period of 2019, primarily due to the decrease in share-based compensation expense and a more streamlined team in the technology and development department resulting from the business transition.

Income from operations was RMB150.0 million (US$22.1 million), representing an increase of 79.6% from the same period of 2019, and an increase of 212.5% sequentially.

Other income (expense), net was a net loss of RMB32.8 million (US$4.8 million), compared with a net gain of RMB7.3 million for the corresponding period in 2019. The loss in this quarter was primarily due to the estimated loss of short-term investments.

Net income was RMB88.4 million (US$13.0 million), representing an increase of 8.1% from the same period of 2019, and an increase of 115.1% sequentially.

Cash and cash equivalents were RMB94.8 million (US$14.0 million) as of September 30, 2020, compared with RMB69.9 million as of June 30, 2020.

Conference Call

The Company will host a conference call to discuss its financial results on Monday, November 30, 2020 at 8:00 a.m. US. Eastern Time (9:00 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/5890747

A replay of the conference call may be accessed by phone at the following numbers until December 8, 2020. To access the replay, please reference the conference ID 5890747.

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 RMB6.7896 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2020. The Company makes no representation that the RMB or US$ 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 Group
Ms. Shelley Bai
Email: ir@jiayinfintech.cn

or

The Blueshirt Group
Ms. Susie Wang
Email: susie@blueshirtgroup.com

In the U.S.:

Ms. Julia Qian
Email: 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 September 30,

2019

2020

RMB

RMB

US$

ASSETS

Cash and cash equivalents

122,149

94,826

13,966

Restricted cash

2,000

295

Amounts due from related parties3

130,722

5,604

825

Accounts receivable, net3

139,164

116,227

17,118

Loan receivables, net3

17,965

2,646

Short-term investment3

69,618

33,698

4,963

Prepaid expenses and other current assets

91,002

56,546

8,328

Deferred tax assets

68,292

68,292

10,058

Property and equipment

39,084

24,488

3,607

Right-of-use assets

37,215

13,152

1,937

Long-term investment

3,826

99,640

14,675

TOTAL ASSETS

701,072

532,438

78,418

LIABILITIES AND EQUITY

Payroll and welfare payable

48,524

39,948

5,884

Amounts due to related parties

872

12,753

1,878

Refund liabilities

180,104

13,071

1,925

Tax payables

179,421

248,070

36,537

Accrued expenses and other current liabilities

158,705

81,681

12,030

Other payable related to the disposal of Shanghai Caiyin

839,830

680,683

100,254

Lease liabilities

35,215

11,101

1,635

TOTAL LIABILITIES

1,442,671

1,087,307

160,143

SHAREHOLDERS' DEFICIT

Class A ordinary shares (US$ 0.000000005 par value;
100,100,000 shares issued and outstanding as of
December 31, 2019 and September 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 September 30, 2020)4

0

0

0

Additional paid-in capital

777,408

799,602

117,769

Accumulated deficit

(1,519,731

)

(1,352,471

)

(199,197

)

Other comprehensive income

469

(4,385

)

(647

)

Total Jiayin Group shareholder's deficit

(741,854

)

(557,254

)

(82,075

)

Non-controlling interests

255

2,385

350

TOTAL SHAREHOLDERS' DEFICIT

(741,599

)

(554,869

)

(81,725

)

TOTAL LIABILITIES AND DEFICIT

701,072

532,438

78,418


JIAYIN GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands, except for share and per share data)

For the Three Months Ended
September 30,

For the Nine Months Ended
September 30,

2019

2020

2019

2020

RMB

RMB

US$

RMB

RMB

US$

Net revenue (including revenue from related
parties of RMB 654 and RMB
993 for 2019Q3
and 2020Q3, respectively)

510,773

401,310

59,107

1,887,556

959,825

141,367

Operating cost and expenses:

Origination and servicing

(101,128

)

(59,478

)

(8,760

)

(354,929

)

(174,341

)

(25,678

)

Allowance for uncollectible accounts receivable,
contract assets and loan receivables

(67,780

)

(15,845

)

(2,334

)

(182,325

)

(56,971

)

(8,391

)

Sales and marketing

(152,364

)

(99,500

)

(14,655

)

(492,336

)

(257,584

)

(37,938

)

General and administrative

(47,465

)

(37,273

)

(5,490

)

(154,405

)

(112,099

)

(16,510

)

Research and development

(58,566

)

(39,200

)

(5,774

)

(162,785

)

(109,674

)

(16,153

)

Total operating cost and expenses

(427,303

)

(251,296

)

(37,013

)

(1,346,780

)

(710,669

)

(104,670

)

Income from operation

83,470

150,014

22,094

540,776

249,156

36,697

Interest income (expense)

88

2,488

366

(88

)

7,727

1,138

Other income (expense), net

7,308

(32,763

)

(4,825

)

20,876

(28,611

)

(4,214

)

Income before income taxes and income
from investment in affiliates

90,866

119,739

17,635

561,564

228,272

33,621

Income tax expense

(9,099

)

(32,128

)

(4,732

)

(79,623

)

(60,070

)

(8,847

)

Income from investment in affiliates

740

109

713

105

Net income

81,767

88,351

13,012

481,941

168,915

24,879

Less: net income (loss) attributable to
non-controlling interest shareholders

152

2,209

324

(76

)

1,655

244

Net income attributable to Jiayin Group Inc.

81,615

86,142

12,688

482,017

167,260

24,635

Weighted average shares used in
calculating
net income per share:

- Basic and diluted

216,100,000

216,100,000

216,100,000

206,307,671

216,100,000

216,100,000

Net income per share:

- Basic and diluted

0.38

0.40

0.06

2.34

0.77

0.11

Other comprehensive income, net of
tax of nil:

Foreign currency translation adjustments

10,769

(8,449

)

(1,243

)

10,777

(4,878

)

(719

)

Comprehensive income

92,536

79,902

11,769

492,718

164,037

24,160

Comprehensive income (loss) attributable to
non-controlling interest

151

2,151

317

(76

)

1,631

240

Total comprehensive income attributable to
Jiayin Group Inc.

92,385

77,751

11,452

492,794

162,406

23,920


_____________________

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.