Jiayin Sees Increased Loan Origination Volume, but Flat on Revenue

The financing marketplace said its loan origination volume reached 4.7 billion yuan in the third quarter, at a 13% increase year-over-year.

CapitalWatch Staff
    Nov 26, 2019 1:00 PM  PT
Jiayin Sees Increased Loan Origination Volume, but Flat on Revenue
author: CapitalWatch Staff   

Jiayin Group Inc. (NASDAQ: JFIN) sent its stock on a 5% slide on Tuesday, to $7.47 per American depositary share, after posting lower-than-expected revenue for the third quarter.

The company, an online finance marketplace, said in a statement today that its revenue increased 0.5% year-over-year, to $71.5 million, below analysts' expectations. Net income was $11.4 million, in contrast to a loss of $6.5 million a year ago. Earnings per share were 5 cents, according to the report.

"Industry conditions remained challenging during the third quarter, but solid execution of Company's strategy enabled us to sustain an attractive level of profitability," Dinggui Yan, the founder, director and chief executive officer of Jiayin, said in the statement.

Jiayin said its loan origination volume reached 4.7 billion yuan, at a 13% increase from the third quarter of 2018. The average investment amount per investor on its peer-to-peer lending business grew 32% to 74,600 yuan, the company stated. The average borrowing amount rose 10% to 7,500 yuan per borrower, according to the report.

Yan also said, "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."

The company noted that it has arranged a "business combination" with Geerong Yun (Shanghai) Enterprise Development Co. Ltd., a fintech platform connecting financial institutions, operated by Yan, to diversify Jiayin's funding sources.

"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," Jiayin wrote in its statement today.

Separately, Jiayin has disposed of its affiliate, Caiyin, during the third quarter. In a September statement, Jiayin said that Caiyin "provided certain post-origination loan management services and manages the investor assurance program for loans facilitated by the Company prior to April 28, 2018, and will continue to provide these services."

The Chinese peer-to-peer lending platform debuted on the Nasdaq in May 2019, raising $36.8 million in its initial public offering. The company sold 3.5 million shares priced at $10.50 apiece.