M3+ Delinquency Rate by Vintage
— Third Quarter Total Loan Origination Volume Grew 123.5% to RMB14.9 Billion —
— Third Quarter Net Income Grew 98.8% to RMB248.1 Million —
SHANGHAI, China, Nov. 23, 2022 (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, 2022.
Third Quarter 2022 Operational and Financial Highlights:
- Loan origination volume1 was RMB14.9 billion (US$2.1 billion), representing an increase of 123.5% from the same period of 2021.
- Average borrowing amount per borrowing was RMB10,158 (US$1,428), representing an increase of 58.1% from the same period of 2021.
- Repeat borrowing rate2 was 63.8%, compared with 69.1% in the same period of 2021.
- Net revenue was RMB894.3 million (US$125.7 million), representing an increase of 55.0% from the same period of 2021.
- Income from operations was RMB308.6 million (US$43.4 million), representing an increase of 100.7% from RMB153.8 million in the same period of 2021.
- Net income was RMB248.1 million (US$34.9 million), representing an increase of 98.8% from RMB124.8 million in the same period of 2021.
Mr. Yan Dinggui, the Company’s Founder, Director and Chief Executive Officer, commented: “Our strong topline growth and the continued expansion of our partnership network in the third quarter amidst the macroeconomic headwinds demonstrated the resilience of our business as well as the value we delivered to our institutional funding partners and borrowers. Notably, we grew our net revenue by 55.0% in the third quarter, driven by a 123.5% year-over-year increase in our loan origination volume. Our margin profiles also continued to improve as we further refined our cost structure and optimized our operating efficiency.”
“Our robust third quarter performance attests to our commitment in strengthening our partnership network, refining our borrower base structure, and accelerating our global business expansion. Going forward, we will continue to invest in scaling up our long-term capabilities in technology development and risk management. We are confident that these efforts will enable us to better empower our financial institutions, serve our borrower base, and generate sustainable value for our shareholders in the long run.”
Third Quarter 2022 Financial Results
Net revenue was RMB894.3 million (US$125.7 million), representing an increase of 55.0% from the same period of 2021.
Revenue from loan facilitation services was RMB792.9 million (US$111.5 million), representing an increase of 47.7% from the same period of 2021. The increase was primarily due to increased loan origination volume from the Company’s institutional funding partners.
Other revenue was RMB101.4 million (US$14.3 million), compared with RMB40.3 million in the third quarter of 2021. The increase was mainly driven by revenue generated from individual investor referral services.
Origination and servicing expense was RMB148.4 million (US$20.9 million), representing an increase of 68.1% from the same period of 2021, driven by the increase in the Company’s loan origination volume.
Allowance for receivables and contract assets was RMB5.9 million (US$0.8 million), representing a decrease of 4.8% from the same period of 2021.
Sales and marketing expense was RMB323.6 million (US$45.5 million), representing an increase of 36.6% from the same period of 2021, primarily due to an increase in borrower acquisition expenses in the third quarter of 2022.
General and administrative expense was RMB51.4 million (US$7.2 million), representing an increase of 13.5% from the same period of 2021, primarily driven by an increase in expenditures for employee compensation and related benefits.
Research and development expense was RMB56.4 million (US$7.9 million), representing an increase of 52.0% from the same period of 2021, primarily due to higher employee compensation and benefit expenses as well as increased professional service fees.
Income from operations was RMB308.6 million (US$43.4 million), representing an increase of 100.7% from RMB153.8 million in the same period of 2021.
Net income was RMB248.1 million (US$34.9 million), representing an increase of 98.8% from RMB124.8 million in the same period of 2021.
Cash and cash equivalents were RMB217.5 million (US$30.6 million) as of September 30, 2022, compared with RMB213.9 million as of June 30, 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 | |
| September 30, 2022 | 0.99 | 0.62 | 0.46 | 0.96 | 2.42 | |
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 | % | 5.10 | % | 5.14 | % | 5.15 | % |
| 2021Q3 | 0.95 | % | 1.86 | % | 2.65 | % | 3.31 | % | 3.94 | % | 4.33 | % | 4.60 | % | 4.79 | % | 4.93 | % | — | — | — | |||
| 2021Q4 | 0.84 | % | 1.78 | % | 2.43 | % | 2.97 | % | 3.40 | % | 3.77 | % | — | — | — | — | — | — | ||||||
| 2022Q1 | 0.74 | % | 1.54 | % | 2.21 | % | — | — | — | — | — | — | — | — | — | |||||||||
Recent Development
US$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 September 30, 2022, the Company had repurchased approximately 0.9 million of its American depositary shares for approximately US$2.1 million under this share repurchase plan.
Conference Call
The Company will conduct a conference call to discuss its financial results on Wednesday, November 23, 2022 at 8:00 AM U.S. Eastern Time (9:00 PM Beijing/Hong Kong Time on the same day).
To join the conference call, all participants must use the following link to complete the online registration process in advance. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call.
Participant Online Registration: https://register.vevent.com/register/BIeb0f1bab4a7c4d928c727fa829273437
A live and archived webcast of the conference call will be available on the Company’s investors relations website at http://ir.jiayin-fintech.com/.
About Jiayin Group Inc.
Jiayin Group Inc. is a leading fintech platform in China committed to facilitating effective, transparent, secure and fast connections between underserved individual borrowers and financial institutions. The origin of the business of the Company can be traced back to 2011. The Company operates a highly secure and open platform with a comprehensive risk management system and a proprietary and effective risk assessment model which employs advanced big data analytics and sophisticated algorithms to accurately assess the risk profiles of potential borrowers. For more information, please visit https://ir.jiayin-fintech.com/.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) 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 RMB7.1135 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2022. The Company makes no representation that the RMB or US$ 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 investor and media inquiries, please contact:
Jiayin Group
Mr. Shawn Zhang
Email: [email protected]
or
The Blueshirt Group
Ms. Ally Wang
Email: [email protected]
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, |
|||||||
| 2021 | 2022 | |||||||
| RMB | RMB | US$ | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | 182,551 | 217,453 | 30,569 | |||||
| Restricted cash | 2,016 | 2,021 | 284 | |||||
| Amounts due from related parties | 37,017 | 16,383 | 2,303 | |||||
| Accounts receivable and contract assets, net | 502,431 | 1,439,719 | 202,392 | |||||
| Loan receivables, net | 329 | 4,069 | 572 | |||||
| Prepaid expenses and other current assets | 62,255 | 202,256 | 28,433 | |||||
| Deferred tax assets, net | 48,456 | 79,700 | 11,204 | |||||
| Property and equipment, net | 9,100 | 17,305 | 2,433 | |||||
| Right-of-use assets | 35,507 | 26,365 | 3,706 | |||||
| Long-term investment | 90,528 | 108,760 | 15,289 | |||||
| Other non-current assets | 1,242 | 1,802 | 253 | |||||
| TOTAL ASSETS | 971,432 | 2,115,833 | 297,438 | |||||
| LIABILITIES AND EQUITY | ||||||||
| Payroll and welfare payable | 56,056 | 72,461 | 10,186 | |||||
| Amounts due to related parties | 4,485 | 3,317 | 466 | |||||
| Tax payables | 409,063 | 699,631 | 98,353 | |||||
| Accrued expenses and other current liabilities | 118,808 | 315,007 | 44,284 | |||||
| Other payable related to the disposal of Shanghai Caiyin | 322,028 | 305,321 | 42,920 | |||||
| Lease liabilities | 35,243 | 25,476 | 3,581 | |||||
| TOTAL LIABILITIES | 945,683 | 1,421,213 | 199,790 | |||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A ordinary shares (US$ 0.000000005 par value; 108,100,000 shares issued as of December 31, 2021 and September 30, 2022; 108,100,000 and 105,365,048 shares outstanding as of December 31, 2021 and September 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 September 30, 2022)3 |
0 | 0 | 0 | |||||
| Additional paid-in capital | 840,580 | 855,578 | 120,275 | |||||
| Treasury stock (nil and 2,734,952 shares as of December 31, 2021 and September 30, 2022, respectively) |
– | (11,644 | ) | (1,637 | ) | |||
| Accumulated deficit | (794,762 | ) | (148,041 | ) | (20,811 | ) | ||
| Accumulated other comprehensive loss | (17,954 | ) | 1,183 | 166 | ||||
| Total Jiayin Group Inc. shareholder’s equity | 27,864 | 697,076 | 97,993 | |||||
| Non-controlling interests | (2,115 | ) | (2,456 | ) | (345 | ) | ||
| TOTAL SHAREHOLDERS’ EQUITY | 25,749 | 694,620 | 97,648 | |||||
| TOTAL LIABILITIES AND EQUITY | 971,432 | 2,115,833 | 297,438 | |||||
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, |
||||||||||||||||
| 2021 | 2022 | 2021 | 2022 | ||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net revenue (including revenue from related parties of RMB 994 and RMB 620 for 2021Q3 and 2022Q3, respectively) |
577,050 | 894,295 | 125,718 | 1,412,278 | 2,217,022 | 311,664 | |||||||||||
| Operating costs and expenses: | |||||||||||||||||
| Origination and servicing | (88,303 | ) | (148,444 | ) | (20,868 | ) | (235,626 | ) | (370,129 | ) | (52,032 | ) | |||||
| Cost of sales | (9,405 | ) | – | – | (14,388 | ) | – | – | |||||||||
| Allowance for receivables and contract assets | (6,190 | ) | (5,918 | ) | (832 | ) | (27,242 | ) | (16,980 | ) | (2,387 | ) | |||||
| Sales and marketing | (236,876 | ) | (323,592 | ) | (45,490 | ) | (502,342 | ) | (707,411 | ) | (99,446 | ) | |||||
| General and administrative | (45,347 | ) | (51,408 | ) | (7,226 | ) | (118,309 | ) | (134,719 | ) | (18,938 | ) | |||||
| Research and development | (37,103 | ) | (56,357 | ) | (7,923 | ) | (97,147 | ) | (152,252 | ) | (21,403 | ) | |||||
| Total operating costs and expenses | (423,224 | ) | (585,719 | ) | (82,339 | ) | (995,054 | ) | (1,381,491 | ) | (194,206 | ) | |||||
| Income from operation | 153,826 | 308,576 | 43,379 | 417,224 | 835,531 | 117,458 | |||||||||||
| Interest (expense) income | (545 | ) | 610 | 86 | (433 | ) | 1,226 | 172 | |||||||||
| Other income | 1,910 | 13,738 | 1,931 | 14,271 | 7,122 | 1,001 | |||||||||||
| Income before income taxes and income from investment in affiliates |
155,191 | 322,924 | 45,396 | 431,062 | 843,879 | 118,631 | |||||||||||
| Income tax expense | (30,296 | ) | (77,679 | ) | (10,920 | ) | (89,687 | ) | (205,393 | ) | (28,874 | ) | |||||
| (Loss) income from investment in affiliates | (132 | ) | 2,821 | 397 | 3,894 | 8,048 | 1,131 | ||||||||||
| Net income | 124,763 | 248,066 | 34,873 | 345,269 | 646,534 | 90,888 | |||||||||||
| Less: net (loss) income attributable to noncontrolling interest shareholders |
(3,604 | ) | (74 | ) | (10 | ) | (3,136 | ) | (187 | ) | (26 | ) | |||||
| Net income attributable to Jiayin Group Inc. | 128,367 | 248,140 | 34,883 | 348,405 | 646,721 | 90,914 | |||||||||||
| Weighted average shares used in calculating net income per share: |
|||||||||||||||||
| – Basic and diluted | 216,100,000 | 215,096,072 | 215,096,072 | 216,100,000 | 215,755,078 | 215,755,078 | |||||||||||
| Net income per share: | |||||||||||||||||
| – Basic and diluted | 0.59 | 1.15 | 0.16 | 1.61 | 3.00 | 0.42 | |||||||||||
| Net income | 124,763 | 248,066 | 34,873 | 345,269 | 646,534 | 90,888 | |||||||||||
| Other comprehensive income, net of tax of nil: | |||||||||||||||||
| Foreign currency translation adjustments | (166 | ) | 9,888 | 1,390 | (3,717 | ) | 18,983 | 2,834 | |||||||||
| Comprehensive income | 124,597 | 257,954 | 36,263 | 341,552 | 665,517 | 93,722 | |||||||||||
| Comprehensive loss attributable to noncontrolling interest |
(3,600 | ) | (162 | ) | (23 | ) | (3,259 | ) | (341 | ) | (51 | ) | |||||
| Total comprehensive income attributable to Jiayin Group Inc. |
128,197 | 258,116 | 36,286 | 344,811 | 665,858 | 93,773 | |||||||||||
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.
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