Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2019

Commission File Number: 001-38806

 

 

Jiayin Group Inc.

 

 

26th Floor, Building No. 1, Youyou Century Plaza,

428 South Yanggao Road,

Pudong New Area, Shanghai 200122

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Jiayin Group Inc.
By:  

/s/ Dinggui Yan

Name:   Dinggui Yan
Title:   Director and Chief Executive Officer

Date: September 4, 2019

 

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EXHIBIT INDEX

 

Exhibit

   No.   

  

Description

Exhibit 99.1    Press Release: Jiayin Group Reports Second Quarter 2019 Unaudited Financial Results

 

3

EX-99.1

Exhibit 99.1

 

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Jiayin Group Reports Second Quarter 2019 Unaudited Financial Results

SHANGHAI, September 4, 2019 (GLOBE NEWSWIRE) —Jiayin Group Inc. (“Jiayin” or “the Company”) (NASDAQ: JFIN), a leading online individual finance marketplace in China, today announced its unaudited financial results for the quarter ended June 30, 2019.

Highlights:

 

   

Loan origination volume1 was RMB4,900 million, representing a decrease of 15.1% from the same period of 2018, and a decrease of 25.0% sequentially

 

   

Investment volume2 was RMB6,242 million, representing a decrease of 7.8% from the same period of 2018, and a decrease of 18.6% sequentially

 

   

Average investment amount per investor was RMB56,653, representing an increase of 32.7% from the same period of 2018

 

   

Average borrowing amount per borrower was RMB7,122, representing a decrease of 3.4% from the same period of 2018

 

   

Net revenue was RMB635.6 million, representing a decrease of 6.6% from the same period of 2018, and a decrease of 13.1 % sequentially

 

   

Operating income was RMB185.4 million, representing a decrease of 24.4%, from the same period of 2018, and a decrease of 37.1% sequentially

 

   

Net income was RMB168.6 million, representing a decrease of 19.8% from the same period of 2018, and a decrease of 33.7% sequentially

Mr. Yan Dinggui, the founder, Director and Chief Executive Officer, commented: “Our operating results in the second quarter reflect the challenges faced by all players in our industry. We were impacted both by compliance with the government’s triple decline policy and by generally unfavorable market conditions, yet by operating conservatively we sustained very attractive profitability. We are confident that we can emerge from this period of regulatory uncertainty with a strong and growing business, and achieve our long-term growth objectives.”

Financial Results

Net revenue was RMB635.6 million (US$92.6 million), representing a decrease of 6.6% from the same period of 2018, primarily due to reduced loan origination volume in the second quarter of 2019.

 

 

1 

“loan origination volume” refers to the total amount of loans facilitated through the Company’s marketplace during a certain period

2 

“investment volume” for a certain period refers to the sum of the principal amount of all investment transactions executed by investors directly through the Company’s marketplace during such period. The calculation of the investment volume of an investment made by an investor through the automated investment program does not take into account automated reinvestments enabled by the automated investment program;


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Revenue from loan facilitation services was RMB477.0 million (US$69.5 million), representing a decrease of 13.5% from the same period of 2018, primarily due to reduced loan origination volume.

Revenue from post-origination services was RMB85.8 million (US$12.5 million), representing an increase of 66.2% from the same period of 2018, as we benefitted from the accumulated loans originated during prior periods.

Origination and Servicing Expense was RMB127.7 million (US$18.6 million), representing an increase of 26.0% from the same period of 2018, primarily due to the increased expenses associated with risk control and credit assessment.

Allowance for Uncollectible Receivables and Contract Assets was RMB70.8 million (US$10.3 million), representing an increase of 23.2% from the same period of 2018, primary due to unfavorable industry conditions.

Sales and Marketing expense was RMB149.8 million (US$21.8 million), representing a decrease of 27.7% from the same period of 2018, primarily due to reduced advertisement spending for promotional activities.

General and Administrative expense was RMB51.5 million (US$7.5 million), representing an increase of 63.2% from the same period of 2018, primarily due to increased payroll expenses and certain share-based compensation expense related to options granted in October 2018.

Research and Development expense was RMB50.5 million (US$7.4 million), representing an increase of 33.9% from the same period of 2018, as the Company continued to improve its technology for credit assessment.

Income from operations was RMB185.4 million (US$27.0 million), representing a decrease of 24.4% from the same period of 2018.

Net income attributable to Jiayin Group shareholders was RMB168.9 million (US$24.6 million), compared with RMB210.2 million in the same period of 2018.

Cash and Equivalents at quarter-end were RMB438.4 million (US$63.9million), compared with RMB150.0 million in the same period of 2018.

Conference Call

The Company will host a conference call to discuss its financial results on Wednesday, September 4, 2019 at 8:00 a.m. US Eastern Time/ 8:00 PM China Standard Time.

Dial-in details for the earnings conference call are as follows:

 

China:    +86 4006208038    or    +86 8008190121
Hong Kong    +852 3018-6771      
United States, New York        +1 (845) 675-0437          


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To join, please dial in 10 minutes before the call is scheduled to begin and provide the passcode 2441378.

 

  Phone Number   Toll-Free Number
United States   +1 (845) 675-0437   +1 (866) 519-4004
Hong Kong   +852 30186771   +852 800906601
Mainland China  

+86 8008190121

+86 4006208038

 

A replay of the conference call may be accessed by phone at the following numbers until September 11, 2019. To access the replay, please reference the conference ID 2441378.

 

  Phone Number   Toll-Free Number
United States   +1 (646) 254-3697   +1 (855) 452-5696
Hong Kong   +852 30512780   +852 800963117
Mainland China  

+86 8008700206

+86 4006022065

 

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

About Jiayin Group Inc.

Jiayin Group Inc. is a leading online individual finance marketplace in China committed to facilitating effective, transparent, secure and fast connections between investors and borrowers, whose needs are underserved by traditional 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.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at 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 RMB6.8650 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 28, 2019. The Company makes no representation that the RMB or US$ 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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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 registration statement on Form F-1 filed in connection with its initial public offering.

For more information, please contact:

In China:

Jiayin Group

Ms. Shelley Bai

Email: ir@niwodai.com

or

The Blueshirt Group

Ms. Susie Wang

Email: susie@blueshirtgroup.com

In the U.S.:

Ms. Julia Qian

Email: julia@blueshirtgroup.com


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JIAYIN GROUP INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except for share and per share data)

 

     As of December 31,     As of June 30,  
     2018     2019  
     RMB     RMB     US$  

ASSETS

      

Cash and cash equivalents

     41,441       438,406       63,861  

Restricted cash

     41,500       3,387       493  

Accounts receivable, net

     336,849       260,549       37,953  

Contract assets, net

     203,080       41,235       6,007  

Assets from the investor assurance program, net

     5,525       453       66  

Prepaid expenses and other current assets

     88,234       80,411       11,713  

Deferred tax assets

     56,027       56,027       8,161  

Property and equipment

     29,011       35,187       5,126  

Right-of-use assets3

     —         51,675       7,527  

Other long-term assets

     212       2,968       433  
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     801,879       970,298       141,340  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

      

Liabilities including amounts of the consolidated VIEs without recourse to the Company:

      

Payroll and welfare payable

     110,562       99,126       14,439  

Amounts due to related parties

     84,509       13,846       2,017  

Liabilities from investor assurance program

     1,547,072       887,382       129,262  

Other guarantee liabilities

     4,060       —         —    

Tax payables

     422,177       473,522       68,976  

Refund liabilities

     84,498       60,389       8,797  

Lease liabilities3

     —         49,947       7276  

Accrued expenses and other current liabilities

     201,007       310,841       45,279  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     2,453,885       1,895,053       276,046  
  

 

 

   

 

 

   

 

 

 

Commitments and Contingencies

      

SHAREHOLDERS’ DEFICIT

      

Ordinary shares (US$ 0.000000005 par value; 10,000,000,000,000 shares authorized, 200,000,000 shares issued and outstanding as of December 31, 2018, 216,100,000 shares issued and outstanding as of June 30, 2019, respectively)

     0       0       0  

Additional paid-in capital

     395,472       699,827       101,941  

Accumulated deficit

     (2,047,478     (1,624,615     (236,652

Other comprehensive income

     —         6       1  

Minority interests

     —         27       4  
  

 

 

   

 

 

   

 

 

 

TOTAL SHAREHOLDERS’ DEFICIT

     (1,652,006     (924,755     (134,706
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND DEFICIT

     801,879       970,298       141,340  
  

 

 

   

 

 

   

 

 

 

 

 

3 

The Company has adopted ASU No. 2016-02, “Leases,” beginning January 1, 2019 and elected to utilize a modified retrospective approach which allowed the Company to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods presented. No cumulative effect adjustment to the opening balance of retained earnings were made. The adoption of the new guidance did not have a material effect the Company’s our results of operations, financial condition or liquidity.


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JIAYIN GROUP INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands, except for share and per share data)

 

     Three Months Ended June 30     Six Months Ended June 30  
     2018     2019     2018     2019  
     RMB     RMB     US$     RMB     RMB     US$  

Net revenue

     680,261       635,616       92,588       1,663,518       1,366,947       199,118  

Operating cost and expenses:

            

Origination and servicing

     (101,294     (127,670     (18,597     (186,125     (246,104     (35,849

Allowance for uncollectible accounts receivable and contract assets

     (57,438     (70,751     (10,306     (161,231     (114,545     (16,685

Provision for assets and liabilities from investor assurance program

     —         —         —         (164,373     —         —    

Sales and marketing

     (207,073     (149,818     (21,823     (448,763     (321,251     (46,796

General and administrative

     (31,527     (51,460     (7,496     (56,416     (100,751     (14,676

Research and development

     (37,722     (50,497     (7,356     (75,775     (104,219     (15,181

Total operating cost and expenses

     (435,054     (450,196     (65,578     (1,092,683     (886,870     (129,187

Income from operation

     245,207       185,420       27,010       570,835       480,077       69,931  

Interest income (expense)

     420       308       45       812       (174     (25

Other income, net

     2,385       9,963       1,451       10,371       13,482       1,964  

Income before income taxes

     248,012       195,691       28,506       582,018       493,385       71,870  

Income tax expense

     (37,772     (27,045     (3,939     (88,641     (70,523     (10,273

Net income

     210,240       168,646       24,567       493,377       422,862       61,597  

Less: net loss attributable to non-controlling interest shareholders

     —         (227     (33     —         (227     (33

Net income attributable to Jiayin Group Inc.

     210,240       168,873       24,600       493,377       423,089       61,630  

Other comprehensive income, net of tax of nil:

            

Foreign currency translation adjustments

     —         7       1       —         7       1  

Total comprehensive income attributable to Jiayin Group Inc.

     210,240       168,880       24,601       493,377       423,096       61,631  

Weighted average shares used in calculating net income per share:

            

- Basic and diluted

     200,000,000       209,123,333       209,123,333       200,000,000       204,561,667       204,561,667  

Net income per share:

            

- Basic and diluted

     1.05       0.81       0.12       2.47       2.07       0.30