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 November 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):  ☐

 

 

 


EXHIBIT INDEX

 

Exhibit

            No.             

  

Description

Exhibit 99.1    Press Release: Jiayin Group Inc. Reports Third Quarter 2019 Unaudited Financial Results

 

2


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: November 26, 2019

 

3

EX-99.1

Exhibit 99.1

 

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Jiayin Group Inc. Reports Third Quarter 2019 Unaudited Financial Results

SHANGHAI, November 26, 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 September 30, 2019.

Highlights:

 

   

Loan origination volume1 was RMB4,720 million, representing an increase of 12.6% from the same period of 2018, and a decrease of 3.7% sequentially

 

   

Investment volume2 was RMB5,128 million, representing an increase of 11.3% from the same period of 2018, and a decrease of 17.8% sequentially

 

   

Average investment amount per investor was RMB74,592, representing an increase of 31.7% from the same period of 2018

 

   

Average borrowing amount per borrower was RMB7,453, representing an increase of 10.4% from the same period of 2018

 

   

Net revenue was RMB510.8 million, representing an increase of 0.5% from the same period of 2018, and a decrease of 19.6 % sequentially

 

   

Operating income was RMB83.5 million, compared with an operating loss of RMB 55.8 million in the same period of 2018, and a decrease of 55.0% sequentially

 

   

Net income was RMB81.8million, compared with a net loss of RMB 44.0 million in the same period of 2018, and a decrease of 51.5% sequentially

Mr. Yan Dinggui, the Founder, Director and Chief Executive Officer, commented: “Industry conditions remained challenging during the third quarter, but solid execution of Company’s strategy enabled us to sustain an attractive level of profitability. Our efforts now are focused on preparation for the change in regulatory qualification and compliance. Because the final outcome of industry reforms is still uncertain, we want to be fully prepared for a range of scenarios.”

Financial Results

Net revenue was RMB510.8 million (US$71.5 million), representing an increase of 0.5% from the same period of 2018.

Revenue from loan facilitation services was RMB396.5 million (US$55.5 million), representing an increase of 6.6% from the same period of 2018, primarily due to the increased loan origination volume compared with the same period of 2018.

 

 

1 

“Loan origination volume” refers to the total amount of loans facilitated during the period presented.

2 

“Investment volume” refers to the total amount of all investment transactions executed by investors during the period presented.


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Revenue from post-origination services was RMB59.3 million (US$8.3 million), representing a decrease of 3.4% from the same period of 2018. The decrease was due to the disposal of our previously-consolidated affiliated company Shanghai Caiyin Asset Management Co, Ltd. (“Caiyin”), which provided certain post-origination loan services.

Origination and servicing expense was RMB101.1 million (US$14.1 million), representing an increase of 2.7% from the same period of 2018, primarily due to higher expenses associated with credit assessment.

Allowance for uncollectible receivables and contract assets was RMB67.8 million (US$9.5 million), representing an increase of 156.9% from the same period of 2018, primarily due to the increase in loan origination volume and unfavorable changes in estimated collectability, which is caused by difficult industry conditions.

Sales and marketing expense was RMB152.4 million (US$21.3million), representing an increase of 33.8% from the same period of 2018, driven by an increase in advertising expenses to promote the Company’s brand.

General and administrative expense was RMB47.5 million (US$6.6 million), representing an increase of 76.7% from the same period of 2018. The increase was primarily due to increased staffing cost, as well as certain share-based compensation expense allocated to general and administrative expenses.

Research and development expense was RMB58.6 million (US$8.2 million), representing an increase of 60.0% from the same period of 2018, as the Company continued to invest in technology.

Income from operations was RMB83.5 million (US$11.7 million), compared with an operating loss of RMB 55.8 million in the same period of 2018.

Net income attributable to Jiayin shareholders was RMB81.8 million (US$11.4 million), compared with a net loss of RMB44.0 million in the same period of 2018.

Cash and cash equivalents at quarter-end were RMB238.0 million (US$33.3 million), compared with RMB359.8 million in the same period of 2018.

During the quarter, the Company conducted a business combination with Geerong Yun (Shanghai) Enterprise Development Co., Ltd. (“Geerong Yun”), an innovative fintech-driven platform connecting financial institutions. Prior to the combination, Geerong Yun and Jiayin were under the common control of Mr. Dinggui Yan, the Founder, Director and Chief Executive Officer of Jiayin. The combination has been retrospectively reflected in the financial statements from the beginning of 2019, but not to prior periods as the impact was not material. The consolidation is intended to support the growth of Jiayin’s institutional funding sources, as well as to strengthen our big data analytics and fintech R&D. In addition, during this quarter, the Company disposed Caiyin, the details of the disposal was provided in the Company’s press releases furnished to the SEC on form 6-Ks, including the relevant exhibits which dated on September 16, 2019 and October 24, 2019, respectively.


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Conference Call

The Company will host a conference call to discuss its financial results on Tuesday, November 26, 2019 at 8:00 a.m. US Eastern Time/ 9:00 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       

To join, please dial in 10 minutes before the call is scheduled to begin and provide the passcode 6759548.

 

   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 December 3, 2019. To access the replay, please reference the conference ID 6759548.

 

   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 RMB7.1477 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2019. The Company makes no representation that the RMB or US$ 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 CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

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

ASSETS

      

Cash and cash equivalents

     41,441       237,994       33,297  

Restricted cash

     41,500       —         —    

Amounts due from related parties

     —         131,328       18,373  

Accounts receivable, net

     336,849       208,798       29,212  

Contract assets, net

     203,080       —         —    

Assets from the investor assurance program, net

     5,525       —         —    

Short term Investment

     —         71,477       10,000  

Prepaid expenses and other current assets

     88,234       132,118       18,484  

Deferred tax assets

     56,027       —         —    

Long term Investment

     —         3,540       495  

Property and equipment

     29,011       39,169       5,480  

Right-of-use assets3

     —         44,742       6,260  

Other long-term assets

     212       3,234       452  
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     801,879       872,400       122,053  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

      

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

      

Payroll and welfare payable

     110,562       91,512       12,803  

Amounts due to related parties

     84,509       7,511       1,051  

Liabilities from investor assurance program

     1,547,072       —         —    

Other guarantee liabilities

     4,060       —         —    

Other Payable

     50,783       293,069       41,002  

Other Payable related to the disposal of Caiyin

     —         987,511       138,158  

Tax payables

     422,177       141,491       19,795  

Refund liabilities

     84,498       —         —    

Lease liabilities3

     —         42,914       6,004  

Deferred Tax Liability

     —         4,969       695  

Accrued expenses and other current liabilities

     150,224       143,285       20,046  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     2,453,885       1,712,262       239,554  
  

 

 

   

 

 

   

 

 

 

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 September 30, 2019, respectively)

     0       0       0  

Additional paid-in capital

     395,472       715,029       100,036  

Accumulated deficit4

     (2,047,478     (1,565,535     (219,026

Other comprehensive income

     —         10,770       1,507  

Minority interests

     —         (126     (18
  

 

 

   

 

 

   

 

 

 

TOTAL SHAREHOLDERS’ DEFICIT

     (1,652,006     (839,862     (117,501
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND DEFICIT

     801,879       872,400       122,053  
  

 

 

   

 

 

   

 

 

 

 

 

 

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.

4 

It includes accumulated loss from under common control transactions related to Geerong Yun.


LOGO

 

JIAYIN GROUP INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

 

    

Three Months Ended

September 30

   

Nine Months Ended

September 30

 
     2018     2019     2018     2019  
     RMB     RMB     US$     RMB     RMB     US$  

Net revenue (including revenue from related parties of RMB nil and RMB 654 for the period 2018Q3, and 2019Q3, respectively)

     508,165       510,773       71,460       2,171,683       1,887,556       264,079  

Operating cost and expenses:

            

Origination and servicing

     (97,911     (101,128     (14,148     (284,035     (354,929     (49,656

Allowance for uncollectible accounts receivable and contract assets

     (26,386     (67,780     (9,483     (187,618     (182,325     (25,508

Provision for assets and liabilities from investor assurance program

     (262,336     —         —         (426,710     —         —    

Sales and marketing

     (113,867     (152,364     (21,317     (562,630     (492,336     (68,880

General and administrative

     (26,856     (47,465     (6,641     (83,272     (154,405     (21,602

Research and development

     (36,612     (58,566     (8,194     (112,387     (162,785     (22,775
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating cost and expenses

     (563,968     (427,303     (59,783     (1,656,652     (1,346,780     (188,421
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operation

     (55,803     83,470       11,677       515,031       540,776       75,658  

Interest income (expense)

     230       88       12       1,042       (88     (12

Other income, net

     1,669       7,308       1,022       12,039       20,876       2,921  

Income (loss) before income taxes

     (53,904     90,866       12,711       528,112       561,564       78,567  

Income tax expense

     9,952       (9,099     (1,273     (78,689     (79,623     (11,140

Net income (loss)

     (43,952     81,767       11,438       449,423       481,941       67,427  

Less: net income (loss) attributable to non-controlling interest shareholders

     —         152       21       —         (76     (11
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Jiayin Group Inc.

     (43,952     81,615       11,417       449,423       482,017       67,438  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income, net of tax of nil:

            

Foreign currency translation adjustments

     —         10,770       1,507       —         10,777       1,508  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss) attributable to Jiayin Group Inc.

     (43,952     92,385       12,924       449,423       492,794       68,946  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in calculating net income per share:

            

- Basic and diluted

     200,000,000       216,100,000       216,100,000       200,000,000       206,307,671       206,307,671  

Net income (loss) per share:

            

- Basic and diluted

     (0.22     0.38       0.05       2.25       2.34       0.33  

Net income (loss) per ADS(1 ADS represents 4 ordinary shares):

            

- Basic and diluted

     (0.88     1.52       0.20       9.00       9.36       1.32