Jiayin Group Inc. Reports Second Quarter 2024 Unaudited Financial Results
-- Second Quarter Total Loan Facilitation Volume remained stable at RMB 24.0 billion --
-- Second Quarter Net Revenue Grew 15.5% to RMB1,476.3 million --
SHANGHAI, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Jiayin Group Inc. ("Jiayin" or the "Company") $(JFIN)$, a leading fintech platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Operational and Financial Highlights:
-- Loan facilitation volume1 was RMB24.0 billion (US$3.3 billion), compared
with RMB24.0 billion in the same period of 2023.
-- Average borrowing amount per borrowing was RMB9,080 (US$1,249),
representing a decrease of 12.4% from the same period of 2023.
-- Repeat borrowing rate2 was 67.1%, compared with 70.1% in the same period
of 2023.
-- Net revenue was RMB1,476.3 million (US$203.1 million), representing an
increase of 15.5% from the same period of 2023.
-- Income from operation was RMB227.1 million (US$31.3 million),
representing a decrease of 38.5% from the same period of 2023.
-- Net income was RMB238.3 million (US$32.8 million), representing a
decrease of 27.0% from RMB326.3 million in the same period of 2023.
Mr. Yan Dinggui, the Company's Founder, Director and Chief Executive Officer, commented: "Our second quarter results underscore the strength of our strategic focus and risk management practices, enabling us to sustain fundamental growth while delivering value to our stakeholders. This steady performance amid evolving market conditions highlights the resilience and adaptability built into our business model. After observing several consecutive quarters, we believe that the key risk indicators in the market have stabilized and are improving, which provides a favorable environment for us to accelerate business growth in the coming period. Looking ahead, we remain committed to driving sustainable development through innovation and strategic market expansion."
_________________
(1) "Loan facilitation volume" refers the loan 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.
Second Quarter 2024 Financial Results
Net revenue was RMB1,476.3 million (US$203.1 million), representing an increase of 15.5% from the same period of 2023.
Revenue from loan facilitation services was RMB951.1 million (US$130.9 million), representing an increase of 2.8% from the same period of 2023. The increase was primarily driven by service fee optimization within our loan facilitation operations.
Revenue from releasing of guarantee liabilities was RMB424.8 million (US$58.5 million), compared to RMB197.2 million in the same period of 2023. The year-over-year increase was primarily due to the growth in average outstanding loan balances which the Company provided guarantee services.
Other revenue was RMB100.4 million (US$13.7 million), representing a decrease of 35.5% from 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 RMB608.2 million (US$83.7 million), representing an increase of 70.9% from the same period of 2023, primarily due to the increase of guarantee costs incurred.
Reversal of uncollectible receivables, contract assets, loans receivable and others was a reversal of RMB 3.3 million (US$ 0.5 million), compared with RMB13.8 million allowance in the same period of 2023, primarily due to the net impact of current period provision and recovery of certain receivables written off in prior year.
Sales and marketing expense was RMB486.6 million (US$67.0 million), representing an increase of 15.7% from the same period of 2023, primarily due to an increase in borrower acquisition expenses.
General and administrative expense was RMB65.0 million (US$8.9 million), representing an increase of 29.8% from the same period of 2023, primarily driven by an increase in payroll expenses and share-based compensation.
Research and development expense was RMB92.8 million (US$12.8 million), representing an increase of 36.3% from the same period of 2023, primarily due to higher employee compensation benefit expenses.
Income from operation was RMB227.1 million (US$31.3 million), representing a decrease of 38.5% from the same period of 2023.
Net income was RMB238.3 million (US$32.8 million), representing a decrease of 27.0% from RMB326.3 million in the same period of 2023.
Basic and diluted net income per share were both RMB1.12(US$0.15), compared to RMB1.52 in the second quarter of 2023. Basic and diluted net income per ADS were both RMB4.48 (US$0.60), compared to RMB6.08 in the second quarter of 2023. Each ADS represents four Class A ordinary shares of the Company.
Cash and cash equivalents were RMB880.2 million (US$121.1 million) as of June 30, 2024, compared with RMB568.2 million as of March 31, 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
------------------------------------------------------------
More than
As of 1-30 days 31-60 days 61-90 days 91 -180 days 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
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 third quarter of 2024 to reach approximately RMB25 billion. This forecast reflects the Company's confidence in the improving economic environment and the company's product and operational capabilities.
Recent Development
Dividend Policy
On August 16, 2024, the Company's Board of Directors approved the payment of cash dividends of US$0.125 per ordinary share, or US$0.50 per American depositary share $(ADS.AU)$. Shareholders of record at the close of trading on August 27, 2024 (U.S. Eastern Time) will be entitled to receive these dividends. The distribution of dividends is expected to occur on or around September 3, 2024, for ordinary shareholders, and on or around September 6, 2024, for ADS holders. Dividends to ADS holders will be subject to the terms and conditions of the deposit agreement, including any applicable fees and expenses. The aggregate amount of cash to be distributed is expected to be approximately US$26.6 million.
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 August 27, 2024, the Company had repurchased approximately 3.3 million of its ADSs for approximately US$13.9 million.
Environmental, Social and Governance $(ESG.NZ)$
On August 7, 2024, the Company published its 2023 ESG report, marking its third annual ESG publication. The report underscores Jiayin's steadfast commitment to corporate sustainability, ethical business practices, and transparent governance. In 2023, the Company continued to create societal value and advance its digital transformation initiatives. Key efforts included enhancing service quality, building a responsible supply chain, and promoting low-carbon practices through the adoption of green technologies. These initiatives are designed to minimize environmental impact, boost resource efficiency, and contribute to the development of a circular economy.
The ESG report is prepared in accordance with the Global Reporting Initiative's Sustainability Reporting Standards (GRI Standards), with reference to Nasdaq's ESG Reporting Guide 2.0. To download the full report in English or Chinese, please visit the ESG section of the Company's investor relations website at: https://ir.jiayintech.cn/environmental-social-and-governance.
Conference Call
The Company will conduct a conference call to discuss its financial results on Tuesday, August 27, 2024 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/BIab3d5299bc4c481ca5b0bd145bde23a9.
(MORE TO FOLLOW) Dow Jones Newswires
August 27, 2024 06:00 ET (10:00 GMT)
Comments