9F Loan Originations Soar 62%

The number of registered users increased to 101.4 million as the financial services provider continues to navigate the tightly regulated industry.
Anthony RussoJun 17,2020,17:25

9F Inc. (Nasdaq: JFU) announced Wednesday a high number of loan originations and an increased number of registered users in the fourth quarter.

In a statement today, the Beijing-based financial services provider said its loan origination volume soared 62 year-over-year to $2.1 billion. As of December, its number of active users hit 101.4 million, an increase of 40% compared with the same period in the preceding year.

Although operating in the fintech sector in China presents a challenge, 9F has made strides to navigate around the tightened regulations.

“In order to maintain compliance with industry regulations, we downsized our loan origination volumes and decreased the outstanding loan balance for loans under our online lending information intermediary services,” Lei Sun, the chairman and chief executive officer of 9F, said in a statement today.

He added, “We have also prepared ourselves to adapt to new regulations, and believe we are well-positioned for any regulatory changes.”

While further expanding overseas in Southeast Asia, 9F has also continued to develop new cloud-based technology in efforts to provide highly customized services to its users and partners, primarily licensed financial institutions. It has also been enhancing e-commerce channels, including its shopping hopping platform of 9F One Mall, formerly known as One Card Mall. 

“We also connect more local life servicing consumption scenarios in connection with the verticals of health, entertainment, and tourism. We will continue to focus on expanding consumption scenarios to improve our ecosystem in 2020,” Sun said today.

In the period ending December, 9F’s revenues were $67.36 million, down 54% year-over-year. Net loss was $411.26 million, in contrast to a net income of $24.02 million. In early trading, 9F’s stock was trading 6% lower from Tuesday’s close at $5.95 per American depositary share. 

In addition, the company said that the PICC Property and Casualty Company Ltd. Guangdong Branch and 9F are seeking legal action against each other. The company claims that the PICC is obligated to pay 9F service fees under the two parties’ partnership and is seeking damages of around 2.3 billion yuan, which would cover outstanding service fees and payment losses. Since December, 9F has had its cooperation on new loans under its direct lending program with the PICC suspended. 

In the third quarter, 9F completed its initial public offering in Times Square, raising $84.6 million. 

In the first quarter of 2020, 9F said its loan origination volume was $300 million. In the second quarter, 9F expects its loan origination volume to come in the range of $141.12 million and $169.34 million.