Jiayin recorded a notable surge in transaction volume during Q1 2023, attributed to the favorable recuperation of the domestic macroeconomic environment and the company's established expertise in lean operations.
Jiayin Group Inc (hereinafter referred to as "Jiayin", Chinese: 嘉银金科, NASDAQ: JFIN), headquartered in Shanghai, recently announced unaudited financial results for the first quarter ended March 31, 2023. The financial results show that, in Q1 2023, Jiayin achieved operating revenue of approximately CNY 1.12 billion (USD 163.4 million), an increase of 119.5% year-over-year, and net income was CNY 280 million, an increase of approximately 93.4% compared to the same period last year. Moreover, the company achieved a record transaction size in this quarter, with loan origination volume of CNY 19.8 billion, representing a year-on-year increase of 142.9%, which was better than previous market expectations
In terms of main business segments, in Q1 2023, Jiayin's revenue from loan facilitation services was CNY 867 million, up 94.1% year-over-year. Other revenue was CNY 255.7 million, an increase of 295.2% year-over-year. In addition, Jiayin continued to increase investment in quality customer acquisition channels to optimize the borrower segment structure. According to the financial report, the proportion of repeat borrowers remained stable at 67.8% in Q1 2023, and the average borrowing amount reached CNY 9,913, an increase of 13.5% year-on-year.
Founded in 2011, Jiayin is a leading fintech platform in China, dedicated to connecting consumers and financial institutions in consumer scenarios with technologies such as big data, cloud computing and artificial intelligence. Its product "Jirong" focuses on identifying and recommending borrowers for licensed financial institutions and helping them to provide a full-fledged Internet credit solution to borrowers. On May 10, 2019, Jiayin was successfully listed on NASDAQ in the United States.
In terms of overseas business, Jiayin Technology has been actively expanding the overseas market of financial technology. As of March 31, 2023, Jiayin has established partnerships with 64 financial institutions around the world, and another 68 financial institutions are under negotiation. Currently, the company has laid out a number of emerging markets such as Southeast Asia, Africa and Latin America. In 2021, Jiayin's market share in Mexico had been among the top three companies of its kind; in the same year, Jiayin opened its first African company in Nigeria and obtained a financial license. According to the financial report, in Q1 2023, Jiayin plans to further diversify its customer acquisition model in the Nigerian market and reduce its reliance on a single customer acquisition channel.
The major competitors of Jiayin include Chinese companies such as Lexin (Chinese: 乐信), Qifu Technology (Chinese: 奇富科技), Xinye Technology (信也科技), as well as international players such as Upstart from the US and FundingCircle from the UK.
As of press time, Jiayin closed at USD 6.02 apiece, with a market cap of USD 322 million.