Jiayin Group Inc. Reports Third Quarter 2024 Unaudited Financial Results

Rhea-AI Summary

Jiayin Group reported mixed Q3 2024 financial results. Loan facilitation volume increased 10.3% year-over-year to RMB26.7 billion (US$3.8 billion), while revenue from loan facilitation services grew 18.1% to RMB1,105.7 million. However, total net revenue decreased 1.5% to RMB1,444.9 million (US$205.9 million), and net income declined 16.8% to RMB269.6 million (US$38.4 million). The company's repeat borrowing rate was 67.8%, down from 71.5% in Q3 2023, while the average borrowing amount decreased 30.5% to RMB7,629.

Positive

• Loan facilitation volume grew 10.3% YoY to RMB26.7 billion
• Revenue from loan facilitation services increased 18.1% to RMB1,105.7 million
• Company maintains strong cash position of RMB741.2 million

Negative

• Net income decreased 16.8% YoY to RMB269.6 million
• Total net revenue declined 1.5% YoY to RMB1,444.9 million
• Income from operations fell 18.3% YoY to RMB311.9 million
• Sales and marketing expenses increased 34.9% YoY
• Repeat borrowing rate declined to 67.8% from 71.5%

Insights

Financial Analyst

Jiayin's Q3 2024 results present a mixed picture. While loan facilitation volume grew 10.3% YoY to RMB26.7 billion, net revenue declined 1.5% to RMB1.44 billion. The most concerning metrics are the 18.3% drop in operating income and 16.8% decrease in net income. The company's efficiency is under pressure with rising costs - sales and marketing expenses jumped 34.9%, while R&D costs increased 36%.

The delinquency rates show slight improvement in short-term metrics but deterioration in longer-term defaults, suggesting potential asset quality concerns. The shift in dividend policy from semi-annual to annual payments and ongoing share buybacks indicate a more conservative capital management approach. The Q4 guidance of RMB25 billion in loan facilitation volume suggests sequential slowdown.

Risk Management Expert

The risk profile shows concerning trends in asset quality. The 180+ days delinquency rate increased to 2.49% from 2.02% year-over-year, while the repeat borrowing rate declined to 67.8% from 71.5%. The 30.5% decrease in average borrowing amount to RMB7,629 suggests a strategic shift toward smaller loans to manage risk, but this hasn't prevented the deterioration in longer-term delinquencies.

The increase in allowance for uncollectible receivables by 36.5% indicates growing credit risk concerns. The combination of higher delinquencies and increased provisions while loan volumes grow signals potential challenges in risk management effectiveness.

SHANGHAI, Nov. 20, 2024 (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, 2024.

Third Quarter 2024 Operational and Financial Highlights:

• Loan facilitation volume¹ was RMB26.7 billion (US$3.8 billion), representing an increase of 10.3% from the same period of 2023.
   
• Average borrowing amount per borrowing was RMB7,629 (US$1,087), representing a decrease of 30.5% from the same period of 2023.
   
• Repeat borrowing rate² was 67.8% compared with 71.5% in the same period of 2023.
   
• Net revenue was RMB1,444.9 million (US$205.9 million), representing a decrease of 1.5% from the same period of 2023.
   
• Income from operation was RMB311.9 million (US$44.4 million), representing a decrease of 18.3% from the same period of 2023.
   
• Net income was RMB269.6 million (US$38.4 million), representing a decrease of 16.8% from the same period of 2023.

Mr. Yan Dinggui, the Company’s Founder, Director and Chief Executive Officer, commented: “As we close out the third quarter of 2024, I’m proud to report continued strong performance, with a significant year-over-year increase in both loan facilitation volume and related revenue. Our loan facilitation volume reached RMB26.7 billion in the third quarter, a 10.3% increase compared with the same period last year. Loan facilitation service revenue grew 18.1% to RMB1,105.7 million.  This growth reflects our strategic focus on innovation, risk management, and market diversification. We’ve successfully leveraged technology to enhance operational efficiency and borrower experience, while maintaining a sharp eye on risk resilience. We are confident that our adaptable business model and commitment to sustainable growth will enable us to capture new opportunities and deliver long-term value to our shareholders.”

___________________________

¹ “Loan facilitation volume” refers the loan facilitation 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.

Third Quarter 2024 Financial Results

Net revenue was RMB1,444.9 million (US$205.9 million), representing a decrease of 1.5% from the same period of 2023.

Revenue from loan facilitation services was RMB1,105.7 million (US$157.6 million), representing an increase of 18.1% from the same period of 2023. The increase was primarily driven by service fee optimization within our loan facilitation operations and increased loan facilitation volume from the Company’s institutional funding partners.

Revenue from releasing of guarantee liabilities was RMB251.7 million (US$35.9 million) compared with RMB397.9 million in the same period of 2023.The year-over-year decrease was primarily due to the decrease in average outstanding loan balances for which the Company provided guarantee services.

Other revenue was RMB87.5 million (US$12.4 million), compared with RMB131.9 million for the same period of 2023. The decrease was mainly due to the decrease in revenue from individual investor referral services.

Facilitation and servicing expense was RMB419.1 million (US$59.7 million) compared with RMB544.3 million for the same period of 2023. This was primarily due to decreased expenses related to financial guarantee services, which was partially offset by the effect of increased loan facilitation volume.

Allowance for uncollectible receivables, contract assets, loans receivable and others was RMB11.6 million (US$1.7 million), representing an increase of 36.5% from the same period of 2023, primarily due to increased balances of receivables arising from loan facilitation.

Sales and marketing expense was RMB550.3 million (US$78.4 million), representing an increase of 34.9% from the same period of 2023, primarily due to an increase in borrower acquisition expenses.

General and administrative expense was RMB56.1 million (US$8.0 million), representing an increase of 5.5% from the same period of 2023, primarily driven by an increase in expenditures for employee compensation and related benefits.

Research and development expense was RMB95.9 million (US$13.7 million), representing an increase of 36.0% from the same period of 2023, primarily driven by an increase in expenditures for employee compensation and related benefits.

Income from operation was RMB311.9 million (US$44.4 million), representing a decrease of 18.3% from the same period of 2023.

Net income was RMB269.6 million (US$38.4 million), representing a decrease of 16.8% from RMB323.9 million in the same period of 2023.

Basic and diluted net income per share were both RMB1.27 (US$0.18) compared with RMB1.51 in the third quarter of 2023. Basic and diluted net income per ADS were both RMB5.08 (US$0.72) compared with RMB6.04 in the third quarter of 2023. Each ADS represents four Class A ordinary shares of the Company.

Cash and cash equivalents were RMB741.2 million (US$105.6 million) as of September 30, 2024, compared with RMB880.2 million as of June 30, 2024.

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, 2021		1.31	0.90	0.72	1.78	2.12
December 31, 2022		1.01	0.67	0.51	1.18	2.02
December 31, 2023		1.13	0.90	0.68	1.48	2.07
March 31, 2024		0.99	0.85	0.68	1.63	2.62
June 30, 2024		0.96	0.83	0.67	1.61	2.60
September 30, 2024		0.93	0.76	0.55	1.32	2.49

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.

Business Outlook

The Company expects its loan facilitation volume for the fourth quarter of 2024 to reach no less than RMB25 billion. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Recent Development

Dividend Policy

The board of directors of the Company (the “Board”) previously approved and adopted a dividend policy on March 28, 2023, (the “Existing Dividend Policy”) under which the Company may choose to declare and distribute a cash dividend twice each fiscal year, starting from 2023, at an aggregate amount of no less than 15% of the net income after tax of the Company in the previous fiscal year.

On November 19, 2024, the Board approved and adopted an amended dividend policy (the “Amended Dividend Policy”) to replace the Company’s Existing Dividend Policy in its entirety, with immediate effect. Under the Amended Dividend Policy, the Company may choose to declare and distribute a cash dividend once each fiscal year, starting from 2025, at an aggregate amount of no less than 15% of the net income after tax of the Company in the previous fiscal year. The determination to make dividend distributions in any particular fiscal year will be made at the discretion of the Board based upon factors such as the Company’s results of operations, cash flow, general financial condition, capital requirements, contractual restrictions and other factors as the Board may deem relevant.

Share Repurchase Plan Update

In March 2024, the Company’s Board of Directors approved an adjustment to the existing share repurchase plan, pursuant to which the aggregate value of ordinary shares authorized for repurchase under the plan shall not exceed US$30 million.

On June 4, 2024, the Company’s Board of Directors approved to extend the share repurchase plan for a period of 12 months, commencing on June 13, 2024, and ending on June 12, 2025. Pursuant to the extended share repurchase plan, the Company may repurchase its ordinary shares through June 12, 2025, with an aggregate value not exceeding the remaining balance under the share repurchase plan. As of November 20, 2024, the Company had repurchased approximately 3.5 million of its ADSs for approximately US$15.0 million.

Conference Call

The Company will conduct a conference call to discuss its financial results on November 20, 2024, 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/BIc807864fea404df38423af62dcb33615

A live and archived webcast of the conference call will be available on the Company’s investors relations website at http://ir.jiayintech.cn/.

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://ir.jiayintech.cn/.

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 RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024. The Company makes no representation that the RMB or US$ 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 in this announcement include, but are not limited to, statements in the section entitled, “Business Outlook,” such as forecast of loan facilitation volume, and statements made by the Company’s Founder, Director and Chief Executive Officer, such as the Company’s future growth. 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 facilitation volume of loans 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. 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: ir@jiayinfintech.cn

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,
		2023			2024
		RMB			RMB			US$
ASSETS
Cash and cash equivalents		370,193			741,206			105,621
Restricted cash		2,435			—			—
Accounts receivable and contract assets, net		2,103,545			2,820,024			401,850
Financial assets receivables, net		991,628			514,263			73,282
Prepaid expenses and other current assets, net		1,922,056			807,660			115,091
Deferred tax assets, net		61,174			86,783			12,366
Property and equipment, net		40,332			44,708			6,371
Right-of-use assets, net		49,659			54,057			7,703
Long-term investment		101,481			175,702			25,037
Other non-current assets		2,263			2,983			425
TOTAL ASSETS		5,644,766			5,247,386			747,746
LIABILITIES AND EQUITY
Deferred guarantee income		886,862			380,717			54,252
Contingent guarantee liabilities		933,947			351,370			50,070
Payroll and welfare payable		94,856			111,369			15,870
Tax payables		568,819			605,076			86,223
Accrued expenses and other current liabilities		731,863			895,795			127,650
Lease liabilities		47,958			54,244			7,730
TOTAL LIABILITIES		3,264,305			2,398,571			341,795
TOTAL SHAREHOLDERS' EQUITY		2,380,461			2,848,815			405,951
TOTAL LIABILITIES AND EQUITY		5,644,766			5,247,386			747,746

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,
		2023			2024						2023			2024
		RMB			RMB			US$			RMB				RMB		US$
Net revenue		1,466,344			1,444,872			205,893			3,866,330			4,396,539			626,502
Operating costs and expenses:
Facilitation and servicing		(544,251	)		(419,056	)		(59,715	)		(1,174,305	)		(1,694,188		)	(241,420	)
Allowance for uncollectible receivables,     contract assets, loans receivable and others		(8,491	)		(11,638	)		(1,658	)		(29,011	)		(10,993		)	(1,566	)
Sales and marketing		(407,940	)		(550,289	)		(78,416	)		(1,209,461	)		(1,396,660		)	(199,022	)
General and administrative		(53,209	)		(56,099	)		(7,994	)		(149,673	)		(167,310		)	(23,841	)
Research and development		(70,532	)		(95,925	)		(13,669	)		(203,400	)		(272,014		)	(38,762	)
Total operating costs and expenses		(1,084,423	)		(1,133,007	)		(161,452	)		(2,765,850	)		(3,541,165		)	(504,611	)
Income from operation		381,921			311,865			44,441			1,100,480			855,374			121,891
Interest income, net		2,957			2,934			418			4,940			9,168			1,306
Other income, net		2,567			8,742			1,246			13,579			74,966			10,683
Income before income taxes and loss    from investment in affiliates		387,445			323,541			46,105			1,118,999			939,508			133,880
Income tax expense		(61,806	)		(53,927	)		(7,685	)		(185,055	)		(158,559		)	(22,594	)
Loss from investment in affiliates		(1,738	)		—			—			(4,002	)		—			—
Net income		323,901			269,614			38,420			929,942			780,949			111,286
Less: net income (loss) attributable to    non-controlling interest		108			2			—			85			(4		)	(1	)
Net income attributable to    Jiayin Group Inc.		323,793			269,612			38,420			929,857			780,953			111,287
Weighted average shares used in    calculating net income per share:
- Basic and diluted		214,740,208			212,672,997			212,672,997			214,168,317			212,380,527			212,380,527
Net income per share:
- Basic and diluted		1.51			1.27			0.18			4.34			3.68			0.52
Net income per ADS:
- Basic and diluted		6.04			5.08			0.72			17.36			14.72			2.08
Net income		323,901			269,614			38,420			929,942			780,949			111,286
Other comprehensive income (loss),    net of tax of nil:
Foreign currency translation adjustments		2,044			(7,008	)		(999	)		8,014			(9,891		)	(1,409	)
Comprehensive income		325,945			262,606			37,421			937,956			771,058			109,877
Comprehensive income (loss)    attributable to non-controlling interest		147			(69	)		(10	)		(4	)		(13		)	(2	)
Total comprehensive income    attributable to Jiayin Group Inc.		325,798			262,675			37,431			937,960			771,071			109,879

A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8192de01-1462-4730-9c79-d7659198df5d

FAQ

What was Jiayin Group's (JFIN) loan facilitation volume in Q3 2024?

Jiayin Group's loan facilitation volume in Q3 2024 was RMB26.7 billion (US$3.8 billion), representing a 10.3% increase from Q3 2023.

How much did Jiayin Group (JFIN) earn in Q3 2024?

Jiayin Group reported net income of RMB269.6 million (US$38.4 million) in Q3 2024, representing a 16.8% decrease from Q3 2023.

What is Jiayin Group's (JFIN) guidance for Q4 2024?

Jiayin Group expects its loan facilitation volume for Q4 2024 to reach no less than RMB25 billion.