Jiayin Group Inc. Reports Strong Q2 2024 Financial Results
Jiayin Group Inc. Reports Second Quarter 2024 Financial Results
-- Second Quarter Total Loan Facilitation Volume remained stable at RMB 24.0 billion --
-- Second Quarter Net Revenue Grew 15.5% to RMB1,476.3 million --
Jiayin Group Inc. ("Jiayin" or the "Company") (NASDAQ: JFIN), a notable fintech platform in China, recently disclosed its unaudited financial results for the second quarter.
Operational and Financial Highlights for Q2 2024
Key Figures:
- Loan facilitation volume stood at RMB24.0 billion (approximately US$3.3 billion), consistent with the previous year's figures.
- Average borrowing amount per transaction was RMB9,080 (around US$1,249), down by 12.4% when compared to the previous year.
- Repeat borrowing rate measured at 67.1%, slightly lower than 70.1% recorded in the same period last year.
- Net revenue reached RMB1,476.3 million (approximately US$203.1 million), marking a 15.5% increase year-on-year.
- Income from operations was RMB227.1 million (about US$31.3 million), reflecting a 38.5% decrease from the prior year.
- Net income totaled RMB238.3 million (roughly US$32.8 million), representing a decrease of 27% compared to RMB326.3 million reported in the same quarter of 2023.
Leadership Insights
Mr. Yan Dinggui, Jiayin's Founder, Director, and Chief Executive Officer, shared insights on the financial outcomes: “Our second quarter results underscore the strength of our strategic focus and risk management practices.” He emphasized the company's commitment to sustainable growth and innovation in a continuously evolving market.
Detailed Financial Results
Revenue Performance
- Revenue from loan facilitation services reached RMB951.1 million (approximately US$130.9 million), a rise of 2.8% year-over-year due to service fee optimization.
- Revenues from the release of guarantee liabilities were RMB424.8 million (around US$58.5 million), significantly up from RMB197.2 million a year prior, attributed to an increase in average outstanding loan balances.
- Other revenues totaled RMB100.4 million (approximately US$13.7 million), down by 35.5% due primarily to reduced income from individual investor referral services.
Expenses Overview
- Facilitation and servicing expenses reached RMB608.2 million (about US$83.7 million), up by 70.9%, driven by increased guarantee costs.
- Sales and marketing expenses were RMB486.6 million (around US$67.0 million), reflecting a 15.7% increase, attributed to greater investor acquisition expenditures.
- General and administrative expenses were RMB65.0 million (approximately US$8.9 million), up by 29.8%, mainly due to higher payroll and share-based compensation costs.
- Research and development expenses totaled RMB92.8 million (roughly US$12.8 million), a 36.3% increase year-on-year due to improved employee compensation benefits.
Cash and Liquidity Position
As of the end of Q2 2024, Jiayin reported cash and cash equivalents of RMB880.2 million (approximately US$121.1 million), a substantial increase from RMB568.2 million at the end of March 2024.
Company's Strategic Outlook
Looking forward, Jiayin anticipates its loan facilitation volume for the third quarter of 2024 to reach around RMB25 billion, reflecting optimism regarding prevailing economic conditions and the company's operational capabilities.
Recent Developments
Dividend and Share Repurchase Plans
On a recent board meeting, the Company approved a cash dividend of US$0.125 per ordinary share and US$0.50 per American depositary share (ADS). Record shareholders will benefit from these dividends, and distributions are set to occur shortly after.
In March 2024, Jiayin's Board amended its existing share repurchase plan, allowing repurchases up to US$30 million. As of August 27, 2024, approximately 3.3 million ADSs have been repurchased for around US$13.9 million.
Environmental, Social and Governance (ESG) Initiatives
The Company published its 2023 ESG report recently, highlighting its initiatives focused on corporate sustainability, responsible supply chains, digital transformation, and enhancing service quality while adopting green technologies.
Conclusion
Jiayin Group Inc. continues to solidify its position as a leading financial technology entity, demonstrating resilience amid market challenges and persistent growth through strategic innovation and resource management.
Frequently Asked Questions
What were Jiayin Group's key financial highlights in Q2 2024?
Key highlights include a net revenue growth of 15.5% to RMB1,476.3 million and stable loan facilitation volume of RMB24.0 billion.
How did Jiayin's net income change in Q2 2024?
Net income fell to RMB238.3 million, a decrease of 27% from RMB326.3 million in the same quarter of 2023.
What is the Company's outlook for Q3 2024?
Jiayin expects loan facilitation volume in Q3 2024 to reach approximately RMB25 billion, indicating a positive market outlook.
What recent developments has Jiayin announced?
The Company announced a cash dividend plan and an extension of its share repurchase program, allowing significant repurchases of its ADSs.
How does Jiayin demonstrate its commitment to sustainability?
Through its ESG initiatives, which focus on responsible practices, enhanced service quality, and the adoption of green technologies to minimize environmental impact.
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