Jiayin Group Inc. Announces Cash Dividend
Jiayin Group Inc. (NASDAQ: JFIN) approves cash dividend of US$0.10 per ordinary share or US$0.40 per ADS, with an expected distribution of approximately US$21.2 million to shareholders and ADS holders.
The declaration of a cash dividend by Jiayin Group Inc. signals a positive reinforcement of shareholder value, reflecting the company's current liquidity and profit distribution policy. A dividend payout, especially in the fintech sector where reinvestment into growth and technology is prevalent, suggests a robust cash flow position. The dividend of US$0.10 per ordinary share translates to a significant aggregate payout of US$21.2 million, which indicates a strong balance sheet. Investors will assess the impact of this cash outflow on the company's future investments and operational capabilities.
Additionally, the timing and process of the dividend distribution through American depositary shares (ADS) highlight the company's compliance with international financial practices, catering to its global investors. This move could potentially enhance the attractiveness of Jiayin's shares to foreign investors, considering the ADS mechanism allows easier trading on U.S. exchanges. The market will monitor the stock's performance leading up to and following the ex-dividend date for potential price adjustments that typically account for the dividend payout.
From a market perspective, Jiayin Group's announcement is a signal to the market about its confidence in sustained earnings and stability. Dividend payments often influence investor sentiment and can lead to a reevaluation of the stock's valuation. The commitment to return capital to shareholders may also be interpreted as a lack of high-yield investment opportunities within the company, which could prompt further analysis by investors into the company's growth strategy.
Moreover, the impact on the stock market will depend on the investor base's composition. If the investor base is dividend-sensitive, the stock may see increased buying interest. However, if the market expected a higher dividend or is more growth-oriented, the reaction could be muted or even negative. The specific context of the fintech industry in China, including regulatory environment and competition, will also play a crucial role in shaping the market's response to this announcement.
Examining the broader economic implications, the dividend payout by Jiayin Group Inc. could be a microcosm of the financial health within the fintech sector in China. It reflects not only company-specific confidence but also suggests stability in the sector despite potential regulatory challenges and the macroeconomic environment. The distribution of dividends might indicate a mature phase of the company's business cycle, where it can afford to return capital to shareholders rather than reinvesting all profits back into the company for growth.
Furthermore, a substantial dividend payout like this can have a ripple effect on the economy, as it increases the disposable income of shareholders, which could potentially lead to increased consumer spending. This scenario is contingent on the marginal propensity to consume of the shareholders. In the long term, consistent dividend payments could support a stable investment climate and contribute to the attractiveness of the Chinese stock market for both domestic and international investors.
01/08/2024 - 05:00 AM
SHANGHAI, China, Jan. 08, 2024 (GLOBE NEWSWIRE) -- Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a leading fintech platform in China, today announced that its board of directors approved the payment of a cash dividend of US$0.10 per ordinary share, or US$0.40 per American depositary share (“ADS”). The holders of the Company’s ordinary shares shown on the Company’s record at the close of trading on January 19, 2024 (U.S. Eastern Time) will be entitled to these dividends. These shareholders, including Citibank, N.A., the depositary of our ADS program (the “Depositary”), are expected to receive the payments of dividends on or around January 24, 2024. Dividends to the Company’s ADS holders are expected to be paid through the Depositary on or around January 31, 2024, and will be subject to the terms of the deposit agreement by and among the Company and the Depositary, and the holders and beneficial owners of ADSs issued thereunder, including the fees and expenses payable thereunder.
The aggregate amount of cash to be distributed for the dividends is expected to be approximately US$21.2 million .
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/
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 Zhangir@jiayinfintech.cn
or
The Blueshirt Group
Ms. Ally Wangally@blueshirtgroup.com
What is the recent announcement from Jiayin Group Inc. (NASDAQ: JFIN)?
Jiayin Group Inc. (NASDAQ: JFIN) has approved the payment of a cash dividend of US$0.10 per ordinary share or US$0.40 per ADS.
When will the dividend be distributed to shareholders?
Shareholders shown on the Company’s record at the close of trading on January 19, 2024 (U.S. Eastern Time) will be entitled to the dividends, with an expected payment on or around January 24, 2024.
How much is the expected aggregate amount of cash to be distributed for the dividends?
The aggregate amount of cash to be distributed for the dividends is expected to be approximately US$21.2 million.
What is the expected payment date for ADS holders?
Dividends to the Company’s ADS holders are expected to be paid through the Depositary on or around January 31, 2024.
What are the terms and conditions for the payment of dividends to ADS holders?
The payment of dividends to ADS holders will be subject to the terms of the deposit agreement by and among the Company and the Depositary, and the holders and beneficial owners of ADSs issued thereunder, including the fees and expenses payable thereunder.
