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Jiayin Group Inc. Reports Fourth Quarter and Fiscal Year 2020¹ Unaudited Financial Results

-- Fourth Quarter Total Loan Origination Volume grew YoY6.5% to RMB3,088 million—

SHANGHAI, April 9, 2021 (GLOBE NEWSWIRE) --Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a leading fintech platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.

Mr. Yan Dinggui, the Founder, Director and Chief Executive Officer, commented: “We have successfully transformed our business into a dynamic finance technology company. In November 2020, the outstanding loan balance of our legacy P2P lending business was reduced to zero. With a sophisticated risk management platform and a laser-like focus on our business transformation, we were able to generate solid results in the fourth quarter. Net income of fourth quarter 2020 was RMB 81.1 million, an increase of 259% from a year ago. In light of evolving market dynamics and rapidly changing technologies, we will stay agile and prudent. We will make investments that will enable us to develop synergistic technologies and penetrate new markets.”

Net revenue was RMB340.3 million (US$52.2 million), representing a decrease of 3.5% from the same period of 2019.

Revenue from loan facilitation services was RMB291.3 million (US$44.6 million), representing an increase of 5.3% from the same period of 2019. The increase was primarily due to the increased loan origination volume from the institutional funding partners.

Revenue from post-origination services was RMB3.6 million (US$0.6 million), representing a decrease of 92.6% from the same period of 2019. The decrease was due to the lower outstanding loan balance funded by individual investors.

Other revenue was RMB45.4 million (US$7.0 million), representing an increase of 66.3% from the same period of 2019. The increase was primarily due to the growth of the Company's overseas lending business.

Origination and servicing expense was RMB64.9 million (US$9.9 million), representing a decrease of 17.1% from the same period of 2019, primarily due to the reduced collection costs as the Company no longer provides such services under its new business model.

Allowance for uncollectible accounts receivable, contract assets and loan receivables was RMB20.3 million (US$3.1 million), representing a decrease of 63.8% from the same period of 2019, primarily due to the overall decrease of loan origination volume, as well as the relatively lower credit risk of the new business model.

Sales and marketing expense was RMB117.5 million (US$18.0 million), representing a decrease of 11.3% from the same period of 2019, primarily due to lower customer acquisition expenses and the decrease in share-based compensation expenses.

General and administrative expense was RMB42.9 million (US$6.6 million), representing a decrease of 43.5% from 2019, primarily due to the decrease in share-based compensation expenses allocated to general and administrative expenses.

Research and development expense was RMB41.9 million (US$6.4 million), representing an increase of 8.5% from the same period of 2019, primarily due to the increase in salaries and personnel related expenses, as the Company continued to increase investments into technology development.

Income from operations was RMB52.9 million (US$8.1 million), compared with an operating loss of RMB28.9 million in the same period of 2019.

Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin was a gain of RMB117.0 million (US$17.9 million), compared with nil for the corresponding period in 2019. The gain in this quarter was primarily due to the waived contingent consideration payable of RMB117.0 million related to the disposal of Shanghai Caiyin Asset Management Co, Ltd. (“Shanghai Caiyin”).

Impairment of short-term investment was a loss of RMB32.6 million (US$5.0 million), compared with nil for the corresponding period in 2019. The loss in this quarter was primarily due to the estimated loss related to the convertible notes issued by Cornerstone Management, Inc. held by the Company.

Net income was RMB81.1 million (US$12.4 million), compared with net income of RMB22.6 million in the same period of 2019.

Cash and cash equivalents were RMB117.3 million (US$18.0 million) as of December 31, 2020, compared with RMB122.1 million as of December 31, 2019.

Net revenue was RMB1,300.2 million (US$199.3 million), representing a decrease of 41.7% from RMB2,230.2 million in 2019.

Revenue from loan facilitation services was RMB1,002.3 million (US$153.6 million), representing a decrease of 42.6% from 2019. The decrease was primarily due to the lower loan origination volume and the shift to institutional funding partners.

Revenue from post-origination services was RMB112.7 million (US$17.3 million), representing a decrease of 57.8% from 2019. The decrease was due to the lower outstanding loan balance funded by individual investors.

Other revenue was RMB185.1 million (US28.4 million), representing a decrease of 14.3% from 2019. The decrease was primarily due to the reduced service fees as the Company no longer provides the automated investment programs after the transition of the Company’s funding sources to institutional funding partners.

Origination and servicing expense was RMB239.2 million (US$36.7 million), representing a decrease of 43.8% from 2019, primarily due to the lower loan origination volume and reduced collection costs as the Company no longer provides such services under its new business model.

Allowance for uncollectible accounts receivable, contract assets and loan receivables was RMB77.3 million (US$11.8 million), representing a decrease of 67.6% from 2019, primarily due to the overall decrease of loan origination volume, as well as the relatively lower credit risk of the new business model.

Sales and marketing expense was RMB375.1 million (US$57.5 million), representing a decrease of 38.1% from 2019, primarily due to lower customer acquisition expenses and reduced advertising spending for promotional activities.

General and administrative expense was RMB155.0 million (US$23.8 million), representing a decrease of 30.8% from 2019, primarily due to the decrease in share-based compensation expenses and the decrease in salaries and personnel related costs, as well as other business-related expenses.

Research and development expense was RMB151.6 million (US$23.2 million), representing a decrease of 24.7% from 2019, primarily due to the decrease in share-based compensation expenses.

Income from operations was RMB302.1 million (US$46.3 million), compared with operating income of RMB534.7 million in 2019.

Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin was RMB117.0 million (US$17.9 million), compared with nil for the corresponding period in 2019. The gain was primarily due to the waived contingent consideration payable of RMB117.0 million related to the disposal of Shanghai Caiyin.

Impairment of short-term investment was a loss of RMB67.2 million (US$10.3 million), compared with nil for the corresponding period in 2019. The loss was primarily due to the estimated loss related to the convertible notes issued by Cornerstone Management, Inc. held by the Company.

Net income was RMB250.1 million (US$38.3 million), compared with net income of RMB527.2 million in 2019.

The Company will host a conference call to discuss its financial results on Friday, April 9, 2021 at 8:00 a.m. US. Eastern Time (8:00 PM Beijing/Hong Kong Time).

Please register in advance to join the conference using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

Participant Online Registration: http://apac.directeventreg.com/registration/event/8618727

A replay of the conference call may be accessed by phone at the following numbers until April 17, 2021. To access the replay, please reference the conference ID 8618727.

A live and archived webcast of the conference call will be available on the Company’s investors relations website at http://ir.jiayin-fintech.com/.

Jiayin Group Inc. is a leading fintech platform in China committed to facilitating effective, transparent, secure and fast connections between underserved individual borrowers and financial institutions. The origin of the business of the Company can be traced back to 2011. The Company operates a highly secure and open platform with a comprehensive risk management system and a proprietary and effective risk assessment model which employs advanced big data analytics and sophisticated algorithms to accurately assess the risk profiles of potential borrowers.

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at a specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.5250 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2020. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Potential risks and uncertainties include, but are not limited to, those relating to the Company’s ability to retain existing investors and borrowers and attract new investors and borrowers in an effective and cost-efficient way, the Company’s ability to increase the investment volume and loan

origination of loans volume facilitated through its marketplace, effectiveness of the Company’s credit assessment model and risk management system, PRC laws and regulations relating to the online individual finance industry in China, general economic conditions in China, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Stock Market or other stock exchange, including its ability to cure any non-compliance with the continued listing criteria of the Nasdaq Stock Market. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

	As of December 31,			As of December 31,
	2019			2020
	RMB			RMB			US$
ASSETS
Cash and cash equivalents		122,149			117,320			17,980
Restricted cash		-			2,000			307
Amounts due from related parties⁴		130,722			542			83
Accounts receivable, net⁴		139,164			158,064			24,224
Loan receivables, net⁴		-			31,296			4,796
Short-term investment⁴		69,618			-			-
Prepaid expenses and other current assets		91,002			61,289			9,393
Deferred tax assets, net		68,292			40,935			6,274
Property and equipment, net		39,084			19,449			2,981
Right-of-use assets		37,215			6,926			1,061
Long-term investment		3,826			87,551			13,418
TOTAL ASSETS		701,072			525,372			80,517
LIABILITIES AND EQUITY
Payroll and welfare payable		48,524			58,288			8,933
Amounts due to related parties		872			8,785			1,346
Refund liabilities		180,104			-			-
Tax payables		179,421			279,383			42,817
Accrued expenses and other current liabilities		158,705			70,954			10,875
Other payable related to the disposal of Shanghai Caiyin		839,830			566,532			86,825
Lease liabilities		35,215			5,195			796
TOTAL LIABILITIES		1,442,671			989,137			151,592
SHAREHOLDERS' DEFICIT
Class A ordinary shares (US$ 0.000000005 par value; 100,100,000 shares issued and outstanding as of December 31, 2019 and 108,100,000 shares issued and outstanding as of December 31, 2020)⁵		0			0			0
Class B ordinary shares (US$ 0.000000005 par value; 116,000,000 shares issued and outstanding as of December 31, 2019 and 108,000,000 shares issued and outstanding as of December 31, 2020)⁵		0			0			0
Additional paid-in capital		777,408			818,042			125,370
Accumulated deficit		(1,519,731	)		(1,266,848	)		(194,153	)
Accumulated other comprehensive income (loss)		469			(12,817	)		(1,964	)
Total Jiayin Group Inc. shareholder's deficit		(741,854	)		(461,623	)		(70,747	)
Non-controlling interests		255			(2,142	)		(328	)
TOTAL SHAREHOLDERS' DEFICIT		(741,599	)		(463,765	)		(71,075	)
TOTAL LIABILITIES AND DEFICIT		701,072			525,372			80,517

	For the Three Months Ended December 31,									For the Year Ended December 31,
	2019			2020						2019			2020
	RMB			RMB			US$			RMB			RMB			US$
Net revenue (including revenue from related parties of RMB 1,107 and nil for 2019Q4 and 2020Q4, respectively)		352,455			340,335			52,159			2,230,176			1,300,160			199,258
Operating cost and expenses:
Origination and servicing		(78,333	)		(64,859	)		(9,940	)		(425,565	)		(239,199	)		(36,659	)
Allowance for uncollectible accounts receivable, contract assets and loan receivables		(56,025	)		(20,307	)		(3,112	)		(232,241	)		(77,278	)		(11,843	)
Sales and marketing		(132,434	)		(117,479	)		(18,004	)		(606,049	)		(375,063	)		(57,481	)
General and administrative		(75,923	)		(42,865	)		(6,569	)		(230,248	)		(154,963	)		(23,749	)
Research and development		(38,619	)		(41,876	)		(6,418	)		(201,404	)		(151,550	)		(23,226	)
Total operating cost and expenses		(381,334	)		(287,386	)		(44,043	)		(1,695,507	)		(998,053	)		(152,958	)
(Loss) income from operation		(28,879	)		52,949			8,116			534,669			302,107			46,300
Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin		-			117,021			17,934			-			117,021			17,934
Impairment of short-term investment		-			(32,595	)		(4,995	)		-			(67,169	)		(10,294	)
Interest income (expense)		5,806			(11	)		(2	)		5,720			7,716			1,183
Other income (expense), net		2,634			748			115			23,425			6,711			1,029
Income before income taxes and income from investment in affiliates		(20,439	)		138,112			21,168			563,814			366,386			56,152
Income tax benefit (expense)		42,616			(48,741	)		(7,470	)		(37,007	)		(108,811	)		(16,676	)
Income (loss) from investment in affiliates		378			(8,222	)		(1,260	)		378			(7,509	)		(1,151	)
Net income		22,555			81,149			12,438			527,185			250,066			38,325
Less: net loss attributable to non- controlling interest shareholders		(487	)		(4,472	)		(685	)		(562	)		(2,817	)		(432	)
Net income attributable to Jiayin Group Inc.		23,042			85,621			13,123			527,747			252,883			38,757
Weighted average shares used in calculating net income per share:
- Basic and diluted		216,100,000			216,100,000			216,100,000			210,409,863			216,100,000			216,100,000
Net income per share:
- Basic and diluted		0.10			0.40			0.06			2.51			1.17			0.18

Net income		22,555			81,149			12,438			527,185			250,066			38,325
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustments		(10,305	)		(8,489	)		(1,301	)		471			(13,366	)		(2,048	)
Comprehensive income		12,250			72,660			11,137			527,656			236,700			36,277
Comprehensive loss attributable to non-controlling interest		(487	)		(6,516	)		(999	)		(560	)		(2,897	)		(444	)
Total comprehensive income attributable to Jiayin Group Inc.		12,737			79,176			12,136			528,216			239,597			36,721


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United States	+1 (646) 254-3697	+1 (855) 452-5696
Hong Kong	+852 30512780	+852 800963117
Mainland China		+86 4006322162 +86 8008700205