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 March 2022

 

Commission File Number: 001-38806

Jiayin Group Inc.

 

18th 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.

 

 

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): ☐

 

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EXHIBIT INDEX

 

 

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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.

 

 

Date: March 31, 2022

 

 

Jiayin Group Inc. Reports Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results

-- Fourth Quarter Total Loan Origination Volume Grew 75.3% to RMB5.4 billion --

-- Fourth Quarter Net Income Grew 51.0% to RMB122.5 million --

-- Full Year Revenue Grew 36.9% to RMB1.8 billion --

--Full Year Net Income Grew 87.0% to RMB467.8 million --

 

SHANGHAI, China, March 31, 2022 (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, 2021.

 

Fourth Quarter 2021 Operational and Financial Highlights :

 

Full Year 2021 Operational and Financial Highlights:

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Mr. Yan Dinggui, the Company’s Founder, Director and Chief Executive Officer, commented: “We delivered strong business and financial results for the fourth quarter and full year of 2021 as we continued to drive loan origination growth and expand partnerships with institutions.  In 2021, our loan origination volume grew 89.7% year over year to RMB21.9 billion, while net revenue increased by 36.9% year over year to RMB1.8 billion. Notably, our net income increased by 87.0% year over year to RMB467.8 million.  Achieving these solid results against a backdrop of intensifying regulatory oversight, on-going impact from COVID-19, and macroeconomic uncertainties is a testament to the effectiveness of our growth strategies.”

 

Mr. Yan further noted: “Importantly, we continued to focus on forging partnerships with financial institutions, diversifying our funding sources, strengthening our risk management systems, and improving our asset quality. As a result, we also aligned the direction of our business in step with regulatory changes while expanding our borrowers base, and optimizing our product portfolio. Going forward, we will continue to invest in areas that will accelerate our global expansion and diversify our funding sources to fortify our market leadership. We are confident that these investments will enable us to sustain our business growth in 2022.”

 

Fourth Quarter 2021 Financial Results

 

Net revenue was RMB368.2 million (US$57.8 million), representing an increase of 8.2% from the same period of 2020.

 

Revenue from loan facilitation services was RMB361.1 million (US$56.7 million), representing an increase of 24.0% from the same period of 2020, of which RMB52.4 million (US$8.2 million) was from individual investor referral services. The increase was primarily due to the increased loan origination volume from the Company’s institutional funding partners.

 

Revenue from post-origination services was nil, because the outstanding loan balance of the Company’s legacy P2P lending business was reduced to zero in November 2020.

 

Other revenue was RMB7.1 million (US$1.1 million), representing a decrease of 84.4% from the same period of 2020. The decrease was primarily due to changes in the consolidation scope of the Company’s overseas entities.

 

Origination and servicing expense was RMB84.8 million (US$13.3 million), representing an increase of 30.7% from the same period of 2020, primarily due to the increase in credit assessment expense which was in line with the increase in the Company’s loan origination volume.

 

Cost of sales was RMB1.1 million (US$0.2 million), compared with nil for the same period of 2020. The increase was primarily due to the cost of hardware sold by Shanghai Bweenet.

 

Allowance for receivables and contract assets was RMB17.2 million (US$2.7 million), representing a decrease of 15.3% from the same period of 2020, primarily because the outstanding loan balance of the Company’s legacy P2P lending business was reduced to zero in November 2020.

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Sales and marketing expense was RMB156.9 million (US$24.6 million), representing an increase of 33.5% from the same period of 2020, primarily driven by the increase in the Company’s loan origination volume.

 

General and administrative expense was RMB46.8 million (US$7.3 million), representing an increase of 9.1% from the same period of 2020, primarily a result of the Company’s efforts in enhancing its professional talents in step with the Company’s business expansion .

 

Research and development expense was RMB46.6 million (US$7.3 million), representing an increase of 11.2% from the same period of 2020, primarily due to higher employee compensation and benefit costs. The increase was also driven by the Company’s increased investments in developing its IT infrastructure.

 

Income from operations was RMB14.7 million (US$2.3 million), compared with RMB52.9 million in the same period of 2020.

 

Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin was RMB138.0 million (US$21.7 million), compared with RMB117.0 million in the same period of 2020. The gain in the fourth quarter of 2021 was derived from the release of a contingent consideration payable.

 

Impairment of short-term investment was nil, compared with RMB32.6 million in the same period of 2020 due to the estimated loss related to the convertible notes issued by Cornerstone Management, Inc. held by the Company.

 

Net income was RMB122.5 million (US$19.2 million), compared with RMB81.1 million in the same period of 2020.

 

Cash and cash equivalents were RMB182.6 million (US$28.7 million) as of December 31, 2021, compared with RMB117.3 million as of December, 31, 2020.

 

Full Year 2021 Financial Results

 

Net revenue was RMB1,780.5 million (US$279.4 million), representing an increase of 36.9% from RMB1,300.2 million in 2020.

 

Revenue from loan facilitation services was RMB1,648.7 million (US$258.7 million), representing an increase of 64.5% from 2020. The increase was primarily due to the increased loan origination volume from the Company’s institutional funding partners.

 

Revenue from post-origination services was nil, compared with RMB112.7 million in 2020, as a result of the outstanding loan balance of the Company’s legacy P2P lending business being reduced to zero in November 2020.

 

Other revenue was RMB131.8 million (US20.7 million), representing a decrease of 28.8% from 2020, primarily due to reduced revenue from P2P related services as the Company ceased its legacy P2P lending business in November 2020. The decrease was partially offset by

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Shanghai Bweenet’s revenue contribution and the revenue generated from providing technology service to a related party.

 

Origination and servicing expense was RMB320.5 million (US$50.3 million), representing an increase of 34.0% from 2020, primarily due to the increase in credit assessment expense in line with the higher loan origination volume in 2021.

 

Allowance for receivables and contract assets was RMB44.4 million (US$7.0 million), representing a decrease of 42.6% from 2020, primarily because the outstanding loan balance of the Company’s legacy P2P lending business was reduced to zero in November 2020. The decrease was partially offset by the allowance for receivables from a related party.

 

Sales and marketing expense was RMB659.3 million (US$103.5 million), representing an increase of 75.8% from 2020, primarily due to an increase in borrower acquisition expenses as well as the increase in the Company’s loan origination volume in 2021.

 

General and administrative expense was RMB165.2 million (US$25.9 million), representing an increase of 6.6% from 2020, primarily due to the increased expenditures in employees benefits and professional service fees.

 

Research and development expense was RMB143.7 million (US$22.5 million), representing a decrease of 5.2% from 2020, primarily due to the improved utilization and productivity of the Company’s facilities and employees allocated to the research and development department, partially offset by the increase in professional services expenses as the Company continues to enhance research and development capabilities.

 

Income from operations was RMB432.0 million (US$67.8 million), compared with RMB302.1 million in 2020.

 

Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin was RMB138.0 million (US$21.7 million), compared with with RMB117.0 million in 2020. The gain in 2021 was derived from the release of contingent consideration payable..

 

Impairment of short-term investment was nil, compared with RMB67.2 million in 2020. The impairment loss in 2020 was primarily due to the estimated loss related to the convertible notes issued by Cornerstone Management, Inc. held by the Company.

 

Net income was RMB467.8 million (US$73.4 million), compared with RMB250.1 million in 2020.

 

The financial statements for the fourth quarter and full year ended December 31, 2021 herein the press release have not been audited by the Company’s independent registered accounting firm. The audited financial statements for the year ended December 31, 2021 to be disclosed in the Company’s Form 20-F may have discrepancies with the above-mentioned unaudited financial statements.

 

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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.

 

 

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.

 

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Conference Call

 

The company will conduct a conference call on March 31, 2022 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time).

 

Please register in advance to join the conference using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

 

Participant Online Registration: http://apac.directeventreg.com/registration/event/3983194

 

A replay of the conference call may be accessed by phone at the following numbers until April 7, 2022. To access the replay, please reference the conference ID 3983194.

 

 

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

 

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://www.jiayinfintech.cn/english/.

 

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 RMB6.3726 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 30, 2021. The Company makes no representation that the RMB or US$ 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 annual report on Form 20-F.

 

For more information, please contact:

 

In China:

 

Jiayin Group

 

Mr. Shawn Zhang

Email: ir@jiayinfintech.cn

 

or

 

The Blueshirt Group

 

Ms. Ally Wang

Email: ally@blueshirtgroup.com

 

In the U.S.:

 

Ms. Julia Qian

Email: julia@blueshirtgroup.com

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JIAYIN GROUP INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

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JIAYIN GROUP INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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