9F inc. (Nasdaq: JFU) displayed a poor performance in loan facilitation services and post-origination services, which had a negative impact on revenue in its second quarter financials, resulting in its stock plummeting on Friday.
The digital financial account platform based in Beijing, said revenue its revenue in three months through June was $152.4 million, down 58% year-over-year, in its statement. Net income was $25 million or $12.79 per share.
Loan facilitation service, which 9F said was a result of the declining revenue, was $125.7 million, down 62 percent year-over-year in the second quarter. 9F also attributed its post-origination services towards its revenue drop, which were $10.5 million, down 27% compared with a year ago.
Lei Sun, the chief executive officer and chairman of 9F noted the “uncertain regulatory environment” were factors throughout the Fintech industry.
“We will continue to invest and acquire licensed financial institutions to diversify our portfolio of services and create synergies,” Sun said in a statement on Friday.
He added “We strategically acquired a stake in a licensed consumer finance company in China which will complement our existing consumer credit loan business and diversify the products we have on offer. We are also actively obtaining financial licenses in overseas markets such as Southeast Asia where we can leverage and apply our extensive experience and operational expertise to new high-growth markets,”
9F has 8 investments, according to Crunchbase, as it acquired a stake in Hubei Consumer Finance Co., the consumer finance company, yesterday. The investment helped 9F become the second largest stakeholder in Hubei.
“It is another step in our strategy to develop stronger relationships with financial institutions and will expand our ecosystem deeper into the consumer finance sector," Sun said in a separate statement yesterday.
9F completed its initial public offering at Time Square in August, where it raised $84.6 million for 8.9 million American depositary shares.
9F’s stock tanked on Friday morning, as it traded down 6 percent, at $10.27 per share.