Jiayin Group Inc. Shows Resilience in Q3 2024 Financials

Strong Performance from Jiayin Group Inc. in Q3 2024

Jiayin Group Inc. (NASDAQ: JFIN), a top fintech platform in China, recently shared its unaudited financial results for the third quarter. Despite facing some operational obstacles, the company exhibited a tenacious growth in its loan facilitation volume, signaling positive market dynamics.

Highlights of Q3 2024 Financial Performance

The following operational highlights stand out:

• Loan facilitation volume reached RMB26.7 billion (approximately US$3.8 billion), marking a notable increase of 10.3% from the previous year.
• The average borrowing amount decreased to RMB7,629 (roughly US$1,087), showing a decline of 30.5% compared to the same quarter in 2023.
• Repeat borrowing rates slightly dipped to 67.8% from 71.5% in Q3 2023.
• Net revenue was reported at RMB1,444.9 million (about US$205.9 million), falling by 1.5% year-over-year.
• Operating income saw a significant decrease of 18.3% to RMB311.9 million (approximately US$44.4 million).
• Net income totaled RMB269.6 million (around US$38.4 million), reflecting a decrease of 16.8% year-over-year.

Mr. Yan Dinggui, the CEO, expressed his satisfaction with the company's performance, especially in loan facilitation volume growth. The firm’s focus on innovation, risk management, and market diversification has played a crucial role in enhancing operational efficiency and borrower experiences.

In-Depth Look at Financial Results

The financial results for Q3 2024 demonstrate mixed outcomes:

Revenue Breakdown

Revenue from loan facilitation services saw an impressive rise to RMB1,105.7 million (around US$157.6 million), marking an 18.1% increase year-over-year. This growth can be attributed primarily to effectively optimizing service fees and augmenting loan volumes through institutional partners.

In contrast, guarantees liabilities revenue dropped to RMB251.7 million (estimated US$35.9 million), a significant decrease from RMB397.9 million in the same quarter last year due to reduced average outstanding loan balances.

Other revenue streams also decreased, notably individual investor referral services, which fell to RMB87.5 million (around US$12.4 million) from RMB131.9 million year-over-year.

Expenses Insights

Facilitation and servicing expenses reduced to RMB419.1 million (approximately US$59.7 million) compared to RMB544.3 million a year earlier, largely due to lower expenses associated with financial guarantees.

In contrast, marketing and sales expenses jumped by 34.9% to RMB550.3 million (about US$78.4 million), driven by higher costs in borrower acquisition.

General and administrative expenses also experienced a moderate increase to RMB56.1 million (around US$8.0 million), influenced by rising employee compensation costs.

Strategic Developments and Future Outlook

Jiayin Group Inc. anticipates a loan facilitation volume of at least RMB25 billion for the fourth quarter of 2024, indicating the company's optimistic market assessment. The company has also amended its dividend policy and extended its share repurchase plan, highlighting its commitment to shareholder value.

Recent Updates on Dividend Policy

In a recent board meeting, the company updated its dividend approach, allowing for annual dividend distributions starting from 2025, which will now be determined based on year-end net income. The focus remains on maintaining operational flexibility while rewarding stockholders creatively.

Share Repurchase Plan Extensions

As part of its strategic financial management, Jiayin's board has approved an extension of the existing share repurchase plan, which allows the company to buy back up to US$30 million worth of shares until June 2025. This decision reinforces Jiayin's ongoing commitment to bolstering shareholder equity.

Frequently Asked Questions

What were Jiayin Group Inc.'s net income figures for Q3 2024?

Net income for the third quarter of 2024 was RMB269.6 million (approximately US$38.4 million), marking a 16.8% decrease from the previous year.

What led to the increase in loan facilitation services revenue?

The revenue increase for loan facilitation services was primarily driven by service fee optimization and an uplift in loan volumes from institutional partners.

How did operational expenses change in Q3 2024?

While facilitation and servicing expenses decreased due to cost-saving measures, sales and marketing expenses rose substantially due to higher borrower acquisition costs.

What is the company’s outlook for the fourth quarter of 2024?

Jiayin anticipates loan facilitation volume for Q4 2024 to be no less than RMB25 billion, reflecting a positive forecast despite current challenges.

What are the new dividend policy changes for Jiayin Group?

The updated dividend policy allows for annual cash dividend distributions beginning in 2025 based on the previous fiscal year's net income, ensuring ongoing value for shareholders.

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