Jiayin Group (JFIN) Reports Q2 Net Income of $19.6M

HANGHAI, China, Aug. 25, 2021 (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 second quarter ended June 30, 2021.

Second Quarter 2021 Operational and Financial Highlights :

• Loan origination volume¹ was RMB5,663 million (US$877.1 million), representing an increase of 153.0% from the same period of 2020.
  
• Average borrowing amount per borrower was RMB5,993 (US$928.2), representing a decrease of 14.2% from the same period of 2020.
  
• Repeat borrowing rate² was 72.4%, compared with repeat borrowing rate of 72.0% in the same period of 2020.
  
• Net revenue was RMB492.2 million (US$76.2 million), representing an increase of 100.9% from the same period of 2020.
  
• Operating income was RMB149.6 million (US$23.2 million), compared with operating income of RMB48.0 million in the same period of 2020.
  
• Net income was RMB126.8 million (US$19.6 million), compared with net income of RMB41.1 million in the same period of 2020.

Mr. Yan Dinggui, the Company's Founder, Director and Chief Executive Officer, commented, “We are excited to announce an outstanding quarter with record operational and financial results. Loan origination volume reached RMB5,663.4 million, up 153.0% year over year, while total revenue grew 100.9% to RMB492.2 million from the same period of 2020. This milestone quarter fully reflects not only our successful business transition but also fruitful evidence of the years we dedicated to enhancing our risk management and improving asset quality. Our ability to grow our loan origination volume also illustrates the trust and confidence our funding partners have in our ability to generate high quality loan assets with optimized risk control system. Looking ahead, we will continue broadening partnerships with more funding partners to diversify our funding resources while maintaining excellence in our risk management. We are confident our robust growth will sustain and positive trajectory in both loan growth and asset quality will continue into the future.”

“In addition to our topline expansion, we also accomplished meaningful progress in improving our operational efficiency and achieving noteworthy profitability. Our net income grew 208.5% year over year to RMB126.8 million. This outstanding improvement demonstrates both the effectiveness of our growth strategy and strength in execution capabilities,” Mr. Yan concluded.

Second Quarter 2021 Financial Results

Net revenue was RMB492.2 million (US$76.2 million), representing an increase of 100.9% from the same period of 2020.

Revenue from loan facilitation services was RMB453.7 million (US$70.3 million), representing an increase of 178.0% from the same period of 2020, of which RMB40.7 million (US$6.3 million) was from individual investor referral services. The increase was primarily due to the increased loan origination volume from our institutional funding partners.

Revenue from post-origination services was nil, representing a decrease of 100% from the same period of 2020. The decrease was due to the outstanding loan balance of our legacy P2P lending business being reduced to zero in November 2020.

Other revenue was RMB38.5 million (US$5.9 million), representing a decrease of 8.3% from the same period of 2020. The decrease was primarily due to reduced revenue from P2P related services as the Company no longer supports the legacy P2P lending business, of which has been partially offset by increased revenues generated both from our overseas business and sales of hardware by Shanghai Bweenet Network Technology Co., Ltd. (“Shanghai Bweenet ”) since May 2021.

Origination and servicing expense was RMB83.2 million (US$12.9 million), representing an increase of 63.5% from the same period of 2020, primarily due to the increase in credit assessment expense resulting from higher loan origination volume.

Cost of sales was RMB5.0 million (US$0.8 million), compared with nil from the same period of 2020. The increase was primarily due the cost of hardware sold by Shanghai Bweenet.

Allowance for uncollectible receivables, contract assets, loans receivable and others was RMB13.0 million (US$2.0 million), representing an increase of 21.5% from the same period of 2020, primarily due to an increase in loan principal and interest as a result of the higher loan origination volume from overseas business, of which has been partially offset by the decrease in estimated default rate under current business model.

Sales and marketing expense was RMB174.2 million (US$27.0 million), representing an increase of 169.7% from the same period of 2020, primarily due to our new online advertising and marketing strategy which has resulted in higher customer acquisition expenses.

General and administrative expense was RMB35.2 million (US$5.5 million), representing a decrease of 3.8% from the same period of 2020, primarily due to the decrease in headcount, of which has been partially offset by the increase in personnel related costs allocating to general and administration department.

Research and development expense was RMB31.9 million (US$4.9 million), representing a decrease of 6.5% from the same period of 2020, primarily due to the improved utilization of our facility allocating to research and development department, of which has been partially offset by the increase in professional services expenses as the Company continues to enhance the research and development capability.

Income from operations was RMB149.6 million (US$23.2 million), compared with an operating income of RMB48.0 million in the same period of 2020.

Net income was RMB126.8 million (US$19.6 million), compared with net income of RMB41.1 million in the same period of 2020.

Cash and cash equivalents were RMB141.4 million (US$21.9 million) as of June 30, 2021, compared with RMB123.3 million as of March 31, 2021.

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

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.

Conference Call

The company will conduct a conference call on Wednesday, August 25, 2021 at 8:00 AM U.S. 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/7698324

A replay of the conference call may be accessed by phone at the following numbers until September 2, 2021. To access the replay, please reference the conference ID 7698324.

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 http://www.jiayinfintech.cn/english/.

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 RMB6.4566 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2021. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

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