Jiayin Group Inc. Reports Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
- None.
- Decrease in net income by 31.1% in Q4 2023 compared to the same period in 2022.
- Revenue from loan facilitation services decreased by 14.6% in Q4 2023 compared to the same period in 2022.
- Increase in facilitation and servicing expenses by 329.1% in Q4 2023 compared to the same period in 2022.
- Increase in allowance for uncollectible receivables by 190.1% in Q4 2023 compared to the same period in 2022.
Insights
The reported full-year revenue growth of 67.1% and net income growth of 9.9% for Jiayin Group Inc. are significant indicators of the company's financial performance. The increase in loan facilitation volume by 58.7% suggests a robust demand for the fintech platform's services, which is a positive sign for investors. However, the decrease in net income in Q4 by 31.1% year-over-year, despite the revenue increase, raises questions about cost management and margin pressures. This discrepancy between revenue growth and net income growth could be attributed to the increased facilitation and servicing expenses, which spiked by 329.1% in Q4. It's important to analyze whether these increased costs are investments that will lead to greater efficiencies or if they are a sign of rising cost structures that could affect future profitability.
Jiayin's strategic focus on leveraging artificial intelligence and expanding partnerships has positioned it well within the fintech sector. The commitment to diversifying funding sources and enhancing risk resilience is important in a tightening regulatory environment, particularly in China's financial industry. The company's initiatives in optimizing service and borrower structures and the reported high repeat borrowing rate of 72.9% can be seen as indicators of customer satisfaction and retention. However, the decrease in average borrowing amount per borrowing in Q4 suggests a potential shift in the loan portfolio towards smaller loans, which may impact future revenue streams. It is also noteworthy that the company's dividend policy and share repurchase plan signal confidence in its financial health and a commitment to shareholder returns, which could influence investor sentiment positively.
While Jiayin Group has reported strong growth metrics, the increased allowance for uncollectible receivables by 190.1% in Q4 indicates a higher risk profile associated with the expanded loan facilitation volume. This could reflect a strategic decision to capture market share in a competitive space, but it also necessitates a close monitoring of the delinquency and M3+ Delinquency Rates. The reported delinquency rates provide transparency into the credit quality of the loan portfolio, which is essential for stakeholders to assess the risk-adjusted return on investment. The company's efforts to improve risk identification and management efficiency will be critical in maintaining a balance between growth and credit risk, especially as the company looks to expand globally and navigate macroeconomic uncertainties.
-- Full Year Revenue Grew
-- Full Year Net Income Grew
SHANGHAI, China, March 28, 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 fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter 2023 Operational and Financial Highlights:
- Loan facilitation volume1 was RMB20.1 billion (US
$2.8 billion ), representing an increase of6.3% from the same period of 2022.
- Average borrowing amount per borrowing was RMB9,944 (US
$1,401) , representing a decrease of8.6% from the same period of 2022.
- Repeat borrowing rate2 was
72.9% , compared with67.2% in the same period of 2022.
- Net revenue was RMB1,600.5 million (US
$225.4 million ), representing an increase of51.8% from the same period of 2022.
- Income from operations was RMB232.0 million (US
$32.7 million ), compared with RMB346.5 million in the same period of 2022.
- Net income was RMB367.6 million (US
$51.8 million ), representing a decrease of31.1% from RMB533.7 million in the same period of 2022.
Full Year 2023 Operational and Financial Highlights:
- Loan facilitation volume1 was RMB88.1 billion (US
$12.4 billion ), representing an increase of58.7% from RMB55.5 billion in 2022.
- Average borrowing amount per borrowing was RMB10,318 (US
$1,453) , representing an increase of5.1% from RMB9,821 in 2022.
- Repeat borrowing rate2 was
70.6% , compared with67.0% in 2022.
- Net revenue was RMB5,466.9 million (US
$770.0 million ), representing an increase of67.1% from RMB3,271.4 million in 2022.
- Income from operations was RMB1,332.5 million (US
$187.7 million ), compared with RMB1,182.0 million in 2022.
- Net income was RMB1,297.6 million (US
$182.8 million ), compared with RMB1,180.2 million in 2022.
Mr. Yan Dinggui, the Company’s Founder, Director and Chief Executive Officer, commented: “We are pleased to announce that our strong business growth continued in the fourth quarter, contributing to excellent financial results for the entire year. For the fiscal year ended December 31, 2023, our loan facilitation volume increased
“Our success in 2023 was thanks to our focus to remain committed to expanding partnerships with institutions, diversifying our funding sources, and enhancing our risk resilience. At the same time, we optimized our service and borrower structures. Among the year’s primary initiatives, we extensively leveraged artificial intelligence (AI) technology across various aspects of our business, including customer acquisition. We continued our efforts to expand collaboration with partners, optimize user portfolio structure, and improve risk identification, while enhancing management efficiency. These initiatives enabled us to achieve robust growth in the midst of tightening regulations and increasing macroeconomic uncertainties. Taken together, these steps further strengthened our solid foundation for future sustainable development.
Thanks to these positive results, we were pleased to have declared two cash dividends each of US
Looking ahead, we expect our growth and success to continue as we accelerate global business expansion, further diversify funding sources, and deepen the strategic application of AI technology. We firmly believe that these initiatives, among others, will enable us to maintain a strong competitive position in the market, sustain our lending leadership, and build long-term shareholder value as we move into 2024 and beyond.”
Fourth Quarter 2023 Financial Results
Net revenue was RMB1,600.5 million (US
Revenue from loan facilitation services was RMB768.4 million (US
Revenue from releasing of guarantee liabilities was RMB669.2 million (US
Other revenue was RMB162.9 million (US
Facilitation and servicing expense was RMB837.2 million (US
Allowance for uncollectible receivables, contract assets, loans receivable and others was RMB43.8 million (US
Sales and marketing expense was RMB329.5 million (US
General and administrative expense was RMB65.2 million (US
Research and development expense was RMB92.9 million (US
Income from operation was RMB232.0 million (US
Net income was RMB367.6 million (US
Basic and diluted net income per share was RMB1.72 (US
Cash and cash equivalents were RMB370.2 million (US
Full Year 2023 Financial Results
Net revenue was RMB5,466.9 million (US
Revenue from loan facilitation services was RMB3,489.2 million (US
Revenue from releasing of guarantee liabilities was RMB1,393.1 million (US
Other revenue was RMB584.6 million (US
Facilitation and servicing expense was RMB2,011.6 million (US
Allowance for uncollectible receivables, contract assets, loans receivable and others was RMB72.8 million (US
Sales and marketing expense was RMB1,538.9 million (US
General and administrative expense was RMB214.9 million (US
Research and development expense was RMB296.3 million (US
Income from operation was RMB1,332.5 million (US
Net income was RMB1,297.6 million (US
Basic and diluted net income per share was RMB6.06 (US
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, 2020 | 1.47 | 0.88 | 0.70 | 1.66 | 1.81 | |
| 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 | |
| March 31, 2023 | 0.91 | 0.79 | 0.63 | 1.40 | 1.72 | |
| June 30, 2023 | 0.97 | 0.70 | 0.66 | 1.45 | 1.76 | |
| September 30, 2023 | 1.16 | 0.76 | 0.52 | 1.29 | 2.02 | |
| December 31, 2023 | 1.13 | 0.90 | 0.68 | 1.48 | 2.07 | |
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 | ||||||||||||
| 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 | % | 5.02 | % | 5.08 | % | 5.10 | % |
| 2021Q4 | 0.84 | % | 1.78 | % | 2.43 | % | 2.97 | % | 3.40 | % | 3.77 | % | 4.12 | % | 4.39 | % | 4.61 | % | 4.76 | % | 4.85 | % | 4.88 | % |
| 2022Q1 | 0.74 | % | 1.54 | % | 2.21 | % | 2.77 | % | 3.26 | % | 3.69 | % | 4.01 | % | 4.28 | % | 4.49 | % | 4.63 | % | 4.74 | % | 4.78 | % |
| 2022Q2 | 0.59 | % | 1.30 | % | 1.94 | % | 2.56 | % | 3.06 | % | 3.46 | % | 3.81 | % | 4.13 | % | 4.36 | % | 4.53 | % | 4.63 | % | 4.68 | % |
| 2022Q3 | 0.74 | % | 1.56 | % | 2.25 | % | 2.92 | % | 3.52 | % | 4.05 | % | 4.51 | % | 4.85 | % | 5.10 | % | 5.26 | % | 5.34 | % | 5.36 | % |
| 2022Q4 | 0.71 | % | 1.62 | % | 2.47 | % | 3.27 | % | 3.94 | % | 4.49 | % | 4.91 | % | 5.22 | % | 5.47 | % | — | — | — | |||
| 2023Q1 | 0.68 | % | 1.50 | % | 2.32 | % | 3.00 | % | 3.61 | % | 4.13 | % | — | — | — | — | — | — | ||||||
| 2023Q2 | 0.63 | % | 1.47 | % | 2.35 | % | — | — | — | — | — | — | — | — | — | |||||||||
Business Outlook
The Company expects its loan facilitation volume for the full year of 2024 to be in the range of RMB93 billion to RMB98 billion and its loan facilitation volume for the first quarter of 2024 to be around RMB22 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
On July 10, 2023, the company's Board of Directors approved a cash dividend of US
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
Conference Call
The Company will conduct a conference call to discuss its financial results on Thursday, March 28, 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/BI64f4010c94fb4c4d83d89ba610bb6b83
A live and archived webcast of the conference call will be available on the Company’s investors relations website at https://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 https://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 RMB7.0999 to US
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: 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 December 31, | |||||||||
| 2022 | 2023 | |||||||||
| RMB | RMB | US$ | ||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents | 291,018 | 370,193 | 52,141 | |||||||
| Restricted cash | 2,023 | 2,435 | 343 | |||||||
| Accounts receivable and contract assets, net | 1,732,218 | 2,103,545 | 296,278 | |||||||
| Financial assets receivables, net | 292,342 | 991,628 | 139,668 | |||||||
| Prepaid expenses and other current assets | 493,731 | 1,922,056 | 270,716 | |||||||
| Deferred tax assets, net | 70,778 | 61,174 | 8,616 | |||||||
| Property and equipment, net | 18,900 | 40,332 | 5,681 | |||||||
| Right-of-use assets | 27,604 | 49,659 | 6,994 | |||||||
| Long-term investments | 90,497 | 101,481 | 14,293 | |||||||
| Other non-current assets | 1,759 | 2,263 | 319 | |||||||
| TOTAL ASSETS | 3,020,870 | 5,644,766 | 795,049 | |||||||
| LIABILITIES AND EQUITY | ||||||||||
| Deferred guarantee income | 276,518 | 886,862 | 124,912 | |||||||
| Contingent guarantee liabilities | - | 933,947 | 131,544 | |||||||
| Payroll and welfare payable | 81,558 | 94,856 | 13,360 | |||||||
| Tax payables | 632,825 | 568,819 | 80,116 | |||||||
| Accrued expenses and other current liabilities | 572,701 | 731,863 | 103,081 | |||||||
| Other payable related to the disposal of Shanghai Caiyin | 188,300 | - | - | |||||||
| Lease liabilities | 27,465 | 47,958 | 6,755 | |||||||
| TOTAL LIABILITIES | 1,779,367 | 3,264,305 | 459,768 | |||||||
| TOTAL SHAREHOLDERS' EQUITY | 1,241,503 | 2,380,461 | 335,281 | |||||||
| TOTAL LIABILITIES AND EQUITY | 3,020,870 | 5,644,766 | 795,049 | |||||||
| JIAYIN GROUP INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amounts in thousands, except for share and per share data) | ||||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net revenue | 1,054,392 | 1,600,543 | 225,432 | 3,271,414 | 5,466,873 | 769,993 | ||||||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||||||
| Facilitation and servicing | (195,098 | ) | (837,249 | ) | (117,924 | ) | (565,227 | ) | (2,011,553 | ) | (283,321 | ) | ||||||||||||
| Allowance for uncollectible receivables, contract assets, loans receivable and others | (15,073 | ) | (43,753 | ) | (6,162 | ) | (32,053 | ) | (72,764 | ) | (10,249 | ) | ||||||||||||
| Sales and marketing | (373,971 | ) | (329,453 | ) | (46,402 | ) | (1,081,382 | ) | (1,538,913 | ) | (216,751 | ) | ||||||||||||
| General and administrative | (59,320 | ) | (65,182 | ) | (9,181 | ) | (194,039 | ) | (214,856 | ) | (30,262 | ) | ||||||||||||
| Research and development | (64,442 | ) | (92,917 | ) | (13,087 | ) | (216,694 | ) | (296,317 | ) | (41,735 | ) | ||||||||||||
| Total operating costs and expenses | (707,904 | ) | (1,368,554 | ) | (192,756 | ) | (2,089,395 | ) | (4,134,403 | ) | (582,318 | ) | ||||||||||||
| Income from operation | 346,488 | 231,989 | 32,676 | 1,182,019 | 1,332,470 | 187,675 | ||||||||||||||||||
| Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin | 117,021 | - | - | 117,021 | - | - | ||||||||||||||||||
| Gain from disposal of subsidiaries | - | 278,219 | 39,186 | - | 278,219 | 39,186 | ||||||||||||||||||
| Impairment of long-term investments | (15,078 | ) | (91,236 | ) | (12,850 | ) | (15,078 | ) | (91,236 | ) | (12,850 | ) | ||||||||||||
| Interest income (expense), net | (943 | 7,955 | 1,120 | 281 | 12,895 | 1,816 | ||||||||||||||||||
| Other income, net | 36,325 | 1,256 | 177 | 43,447 | 14,834 | 2,089 | ||||||||||||||||||
| Income before income taxes and share of gain (loss) from equity method investments | 483,813 | 428,183 | 60,309 | 1,327,690 | 1,547,182 | 217,916 | ||||||||||||||||||
| Income tax benefit (expense) | 49,994 | (62,561 | ) | (8,812 | ) | (155,398 | ) | (247,616 | ) | (34,876 | ) | |||||||||||||
| Share of gain (loss) from equity method investments | (109 | ) | 2,012 | 283 | 7,940 | (1,990 | ) | (280 | ) | |||||||||||||||
| Net income | 533,698 | 367,634 | 51,780 | 1,180,232 | 1,297,576 | 182,760 | ||||||||||||||||||
| Less: net income (loss) attributable to noncontrolling interest | 761 | (128 | ) | (18 | ) | 574 | (43 | ) | (6 | ) | ||||||||||||||
| Net income attributable to Jiayin Group Inc. | 532,937 | 367,762 | 51,798 | 1,179,658 | 1,297,619 | 182,766 | ||||||||||||||||||
| Weighted average shares used in calculating net income per share: | ||||||||||||||||||||||||
| - Basic and diluted | 213,789,483 | 213,462,066 | 213,462,066 | 215,259,640 | 213,996,233 | 213,996,233 | ||||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||
| - Basic and diluted | 2.49 | 1.72 | 0.24 | 5.48 | 6.06 | 0.85 | ||||||||||||||||||
| Net income per ADS: | ||||||||||||||||||||||||
| - Basic and diluted | 9.97 | 6.88 | 0.96 | 21.92 | 24.24 | 3.40 | ||||||||||||||||||
| Net income | 533,698 | 367,634 | 51,780 | 1,180,232 | 1,297,576 | 182,760 | ||||||||||||||||||
| Other comprehensive income, net of tax of nil: | ||||||||||||||||||||||||
| Foreign currency translation adjustments | (4,181 | ) | (15,146 | ) | (2,133 | ) | 14,802 | (7,132 | ) | (1,005 | ) | |||||||||||||
| Comprehensive income | 529,517 | 352,488 | 49,647 | 1,195,034 | 1,290,444 | 181,755 | ||||||||||||||||||
| Comprehensive Income (loss) attributable to noncontrolling interest | 875 | (94 | ) | (13 | ) | 534 | (98 | ) | (14 | ) | ||||||||||||||
| Total comprehensive income attributable to Jiayin Group Inc. | 528,642 | 352,582 | 49,660 | 1,194,500 | 1,290,542 | 181,769 | ||||||||||||||||||
______________________
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.
A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c07d5bdf-cc29-4c90-81a0-df326008b3b9
FAQ
What was Jiayin Group Inc.'s (JFIN) full year revenue growth for 2023?
What was the net income growth for Jiayin Group Inc. (JFIN) in 2023?
How did Jiayin Group Inc.'s (JFIN) loan facilitation volume change in Q4 2023?
What was the repeat borrowing rate for Jiayin Group Inc. (JFIN) in Q4 2023?
What was the net revenue for Jiayin Group Inc. (JFIN) in Q4 2023?
