Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Jiayin Group Inc. |
Entity Central Index Key | 0001743102 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Address, Address Line One | 26th Floor, Building No. 1, Youyou Century Plaza |
Entity Address, Address Line Two | 428 South Yanggao Road, |
Entity Address, Address Line Three | Pudong New Area |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-38806 |
Trading Symbol | JFIN |
Title of 12(b) Security | American Depositary Shares |
Security Exchange Name | NASDAQ |
Document Shell Company Report | false |
Document Registration Statement | false |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 100,100,000 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 116,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
ASSETS | ||||
Cash and cash equivalents | ¥ 122,149 | $ 17,546 | ¥ 41,441 | |
Restricted cash | 0 | 41,500 | ||
Amounts due from related parties | 130,722 | 18,777 | ||
Accounts receivable (net of allowance for uncollectible receivables of RMB 28,014 and RMB 60,679 as of December 31, 2018 and 2019, respectively) | 139,164 | 19,990 | 336,849 | |
Contract assets (net of allowance for uncollectible contract assets of RMB 39,801 and nil as of December 31, 2018 and 2019, respectively) | 203,080 | |||
Assets from the investor assurance program, net | 5,525 | |||
Short-term investment | 69,618 | 10,000 | ||
Prepaid expenses and other current assets | 91,002 | 13,072 | 88,234 | |
Deferred tax assets | 68,292 | 9,810 | 56,027 | |
Property and equipment | 39,084 | 5,614 | 29,011 | |
Right-of-use assets | 37,215 | 5,346 | ||
Long-term investment | 3,826 | 550 | ||
Other long-term assets | 212 | |||
TOTAL ASSETS | 701,072 | 100,705 | 801,879 | |
Liabilities including amounts of the consolidated VIEs without recourse to the Parent Company (Note 2(b)): | ||||
Payroll and welfare payables | 48,524 | 6,970 | 110,562 | |
Amounts due to related parties | 872 | 125 | 84,509 | |
Liabilities from the investor assurance program | 1,547,072 | |||
Refund liabilities | 180,104 | 25,870 | 84,498 | |
Other guarantee liabilities | 4,060 | |||
Tax payables | 179,421 | 25,772 | 422,177 | |
Accrued expenses and other current liabilities | 158,705 | 22,800 | 201,007 | |
Other payable related to the disposal of Shanghai Caiyin | 839,830 | 120,634 | ||
Lease liabilities | 35,215 | 5,058 | ||
TOTAL LIABILITIES | 1,442,671 | 207,229 | 2,453,885 | |
Commitments and Contingencies (Note 14) | ||||
SHAREHOLDERS' DEFICIT | ||||
Additional paid-in capital | 777,408 | 111,668 | 395,472 | |
Accumulated deficit | (1,519,731) | (218,296) | (2,047,478) | |
Other comprehensive income | 469 | 67 | ||
Total Jiayin Group shareholder's deficit | (741,854) | (106,561) | (1,652,006) | |
Noncontrolling interests | 255 | 37 | ||
TOTAL SHAREHOLDERS' DEFICIT | (741,599) | (106,524) | (1,652,006) | |
TOTAL LIABILITIES AND DEFICIT | 701,072 | 100,705 | 801,879 | |
Class A Ordinary shares | ||||
SHAREHOLDERS' DEFICIT | ||||
Ordinary shares | [1] | 0 | 0 | 0 |
TOTAL SHAREHOLDERS' DEFICIT | 0 | 0 | ||
Class B Ordinary shares | ||||
SHAREHOLDERS' DEFICIT | ||||
Ordinary shares | 0 | $ 0 | ¥ 0 | |
TOTAL SHAREHOLDERS' DEFICIT | ¥ 0 | |||
[1] | The total shares authorized for both Class A and Class B are 10,000,000,000,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / shares | Dec. 31, 2017CNY (¥) |
Business Acquisition [Line Items] | |||||
Accounts receivable, net of allowance for uncollectible receivables | ¥ | ¥ 60,679 | ¥ 28,014 | |||
Contract assets, net of allowance for uncollectible contract assets | ¥ | ¥ 0 | ¥ 39,801 | ¥ 82,005 | ||
Ordinary shares, par value | $ / shares | $ 0.00 | ||||
Ordinary shares, shares outstanding | 216,100,000 | ||||
Class A Ordinary shares | |||||
Business Acquisition [Line Items] | |||||
Ordinary shares, par value | $ / shares | 0.00 | $ 0.00 | |||
Ordinary shares, shares authorized | 10,000,000,000,000 | 10,000,000,000,000 | |||
Ordinary shares, shares issued | 100,100,000 | 84,000,000 | |||
Ordinary shares, shares outstanding | 100,100,000 | 84,000,000 | |||
Class B Ordinary shares | |||||
Business Acquisition [Line Items] | |||||
Ordinary shares, par value | $ / shares | $ 0.00 | $ 0.00 | |||
Ordinary shares, shares authorized | 10,000,000,000,000 | 10,000,000,000,000 | |||
Ordinary shares, shares issued | 116,000,000 | 116,000,000 | |||
Ordinary shares, shares outstanding | 116,000,000 | 116,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net revenue (including revenue from related parties of nil, nil, and RMB 1,761 for 2017, 2018 and 2019, respectively) | ¥ 2,230,176 | $ 320,345 | ¥ 2,881,940 | ¥ 2,250,850 |
Operating cost and expenses: | ||||
Origination and servicing | (425,565) | (61,129) | (401,679) | (229,353) |
Sales and marketing | (606,049) | (87,054) | (726,582) | (884,866) |
General and administrative | (230,248) | (33,074) | (150,465) | (95,597) |
Research and development | (201,404) | (28,930) | (184,302) | (180,967) |
Allowance for uncollectible receivables and contract assets | (232,241) | (33,359) | (265,978) | (130,943) |
Provision for assets and liabilities from the investor assurance program | ¥ | (467,728) | (42,463) | ||
Total operating cost and expenses | (1,695,507) | (243,546) | (2,196,734) | (1,564,189) |
Income from operations | 534,669 | 76,799 | 685,206 | 686,661 |
Interest income | 5,720 | 822 | 169 | 1,922 |
Other income, net | 23,425 | 3,364 | 20,298 | 12,609 |
Income before taxes and income from investment in affiliates | 563,814 | 80,985 | 705,673 | 701,192 |
Income tax expense | (37,007) | (5,315) | (93,915) | (161,647) |
Income from investment in affiliates | 378 | 54 | ||
Net income | 527,185 | 75,724 | 611,758 | 539,545 |
Net loss attributable to noncontrolling interest shareholders | (562) | (81) | ||
Net income attributable to Jiayin Group Inc. | ¥ 527,747 | $ 75,805 | ¥ 611,758 | ¥ 539,545 |
Net income per share: | ||||
- Basic | (per share) | ¥ 2.51 | $ 0.36 | ¥ 3.06 | ¥ 2.70 |
- Diluted | (per share) | ¥ 2.51 | $ 0.36 | ¥ 3.06 | ¥ 2.70 |
Weighted average shares used in calculating net income per share: | ||||
- Basic | 210,409,863 | 210,409,863 | 200,000,000 | 200,000,000 |
- Diluted | 210,409,863 | 210,409,863 | 200,000,000 | 200,000,000 |
Net income | ¥ 527,185 | $ 75,724 | ¥ 611,758 | ¥ 539,545 |
Other comprehensive income, net of tax of nil | ||||
Foreign currency translation adjustments | 471 | 68 | ||
Comprehensive income | 527,656 | 75,792 | 611,758 | 539,545 |
Comprehensive loss attributable to noncontrolling interests | (560) | (80) | ||
Total comprehensive income attributable to Jiayin Group Inc. | ¥ 528,216 | $ 75,872 | ¥ 611,758 | ¥ 539,545 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Revenue from Related Parties | ¥ 1,761 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Class A Ordinary sharesCNY (¥)shares | Class B Ordinary sharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Accumulated deficitCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Noncontrolling interestCNY (¥) |
Beginning Balance at Dec. 31, 2016 | ¥ (2,560,483) | ¥ 0 | ¥ 0 | ¥ 238,298 | ¥ (2,798,781) | |||
Beginning Balance (in shares) at Dec. 31, 2016 | shares | 84,000,000 | 116,000,000 | ||||||
Net income | 539,545 | 539,545 | ||||||
Share-based compensation | 89,396 | 89,396 | ||||||
Ending Balance at Dec. 31, 2017 | (1,931,542) | ¥ 0 | ¥ 0 | 327,694 | (2,259,236) | |||
Ending Balance (in shares) at Dec. 31, 2017 | shares | 84,000,000 | 116,000,000 | ||||||
Net income | 611,758 | 611,758 | ||||||
Dividend distributed to shareholders | (400,000) | (400,000) | ||||||
Share-based compensation | 67,778 | 67,778 | ||||||
Ending Balance at Dec. 31, 2018 | (1,652,006) | ¥ 0 | 395,472 | (2,047,478) | ||||
Ending Balance (in shares) at Dec. 31, 2018 | shares | 84,000,000 | 116,000,000 | ||||||
Shares issued in initial public offering ("IPO") | 234,354 | 234,354 | ||||||
Shares issued in initial public offering ("IPO") (in shares) | shares | 16,100,000 | |||||||
Capital contribution from noncontrolling interest shareholders | 815 | ¥ 815 | ||||||
Net income | 527,185 | $ 75,724 | 527,747 | (562) | ||||
Foreign currency translation adjustments | 471 | 68 | ¥ 469 | 2 | ||||
Share-based compensation | 147,582 | 147,582 | ||||||
Ending Balance at Dec. 31, 2019 | ¥ (741,599) | $ (106,524) | ¥ 0 | ¥ 0 | ¥ 777,408 | ¥ (1,519,731) | ¥ 469 | ¥ 255 |
Ending Balance (in shares) at Dec. 31, 2019 | shares | 100,100,000 | 116,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities | ||||
Net income for the year | ¥ 527,185 | $ 75,724 | ¥ 611,758 | ¥ 539,545 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Allowance for uncollectible receivables and contract assets | 232,241 | 33,359 | 265,978 | 130,943 |
Share-based compensation | 147,582 | 21,199 | 67,778 | 89,396 |
Depreciation and amortization | 17,710 | 2,544 | 11,300 | 4,098 |
Gain from disposal of property, equipment and software | (18) | |||
Income from investment in affiliates | (378) | (54) | ||
Changes in operating assets and liabilities: | ||||
Assets from the investor assurance program | 5,340 | 767 | 264,751 | (108,800) |
Account receivables and contract assets | (82,824) | (11,897) | (6,616) | (535,548) |
Prepaid expenses and other current assets | (35,186) | (5,054) | 31,242 | (2,840) |
Amount due from/to related parties | 10,100 | 1,451 | 500,845 | 68,564 |
Deferred tax assets | (61,654) | (8,856) | (17,637) | 81,099 |
Operating lease right-of-use assets | 9,626 | 1,383 | ||
Liabilities from the investor assurance program | (840,472) | (120,726) | (1,470,052) | 843,357 |
Other guarantee liabilities | (4,060) | (583) | (697,168) | (1,298,842) |
Payroll and welfare payables | (60,374) | (8,672) | 5,176 | 43,368 |
Tax payables | 108,055 | 15,521 | 218,187 | 153,412 |
Refund liabilities | 15,505 | 2,227 | (71,613) | (693) |
Accrued expenses and other current liabilities | 47,692 | 6,851 | 57,721 | 97,693 |
Operating lease liabilities | (9,797) | (1,407) | ||
Net cash provided by (used in) operating activities | 26,291 | 3,777 | (228,368) | 104,752 |
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (27,608) | (3,966) | (16,889) | (21,743) |
Investments in equity investees | (3,540) | (508) | ||
Disposal of a subsidiary, net of cash disposed of RMB 7,606 | (7,606) | (1,093) | ||
Purchase of short-term investment | (71,477) | (10,267) | ||
Sale of property, equipment and software | 466 | |||
Loans to related parties | (123,947) | (17,804) | (11,550) | |
Repayments from related parties | 11,550 | 82,958 | ||
Loans to third parties | (14,000) | (2,011) | ||
Repayments from loan to third parties | 14,000 | 2,011 | ||
Net cash provided by (used in) investing activities | (234,178) | (33,638) | (16,423) | 61,215 |
Cash flows from financing activities | ||||
Loans from related parties | 230 | 33 | 70,765 | 13,876 |
Contribution from noncontrolling shareholders of subsidiaries | 815 | 117 | ||
Repayments to related parties | (104,365) | |||
Dividend distributed to shareholders | (400,000) | |||
Net proceeds from issuance of ordinary shares, net of issuance cost of RMB 30,234 | 243,629 | 34,995 | ||
Net cash provided by (used in) financing activities | 244,674 | 35,145 | (433,600) | 13,876 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 2,421 | 348 | ||
Net change in cash, cash equivalents and restricted cash | 39,208 | 5,632 | (678,391) | 179,843 |
Cash, cash equivalents and restricted cash at beginning of the year | 82,941 | 11,914 | 761,332 | 581,489 |
Cash, cash equivalents and restricted cash at end of the year | 122,149 | 17,546 | 82,941 | 761,332 |
Supplemental disclosure of cash flow information: | ||||
Income taxes paid, net | 55,581 | 7,984 | 33,773 | 91,032 |
Supplemental disclosure of non-cash investing activities: | ||||
Disposal consideration settled by service fee collected on behalf of the Company (see Note 7) | 238,857 | 34,310 | ||
Reconciliation to amounts on consolidated balance sheets | ||||
Cash and cash equivalents | 122,149 | 17,546 | 41,441 | 606,097 |
Restricted cash | 41,500 | 155,235 | ||
Total cash, cash equivalents and restricted cash | ¥ 122,149 | $ 17,546 | ¥ 82,941 | ¥ 761,332 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Jiayin Group Inc. (the “Parent Company”) is an exempted company incorporated with limited liabilities in the Cayman Islands under the laws of the Cayman Islands in December 2017. The Parent Company and its subsidiaries provide individual finance services in the People’s Republic of China (“PRC”) by connecting investors with borrowers through a proprietary internet platform. History of the Company The Company began the operations mainly through its PRC entities in 2015. In September 2015, Shanghai Jiayin Finance Technology Co., Ltd (“Jiayin Finance”) formed a wholly-owned subsidiary Shanghai Niwodai Internet Finance Information Services Co., Ltd. (“Niwodai Internet”) to develop online individual finance services. In September 2015, Shanghai Caiyin Asset Management Co., Ltd (“Shanghai Caiyin”) was established by Mr. Yan (the “Founder”) to provide the guarantee services to the loans facilitated through Niwodai Internet. Upon formation, Shanghai Caiyin entered into an agreement (see Note 2(b)) with Niwodai Internet through which Niwodai Internet has the power to direct the activities that most significantly affects the economic performance of Shanghai Caiyin and would be able to receive the economic benefits of Shanghai Caiyin that could be significant to Shanghai Caiyin. Therefore Niwodai Internet was considered the primary beneficiary of Shanghai Caiyin and consolidated Shanghai Caiyin. In December 2015, Shanghai Caiyin acquired the servicing rights and obligations of all outstanding loan contracts facilitated by Shanghai Niwodai Finance Information Co., Ltd. (“Niwodai Finance”), an entity providing offline individual finance services controlled by the Founder, as well as the obligation to continue to provide guarantee on those loans through the investor assurance program that was previously managed by Niwodai Finance. Meanwhile, the Company acquired a group of selective intangible assets, including the Niwodai brand, the Niwodai website, and Niwodai Finance’s proprietary technology, which the Company believed would greatly benefit the development of the Company’s online loan facilitation business, from Niwodai Finance. Niwodai Finance agreed to pay Shanghai Caiyin an aggregate amount of RMB In December 2017, the Parent Company was incorporated by the same shareholders of Jiayin Finance in Cayman Island in connection with a group reorganization (“Reorganization”). As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Parent Company established, through a BVI and a Hong Kong intermediary company, a wholly-owned foreign invested subsidiary in the PRC, Shanghai Kunjia Technology Co., Ltd. (“Shanghai Kunjia” or “WFOE”) in June 2018. WFOE entered into a series of contractual arrangements (Note 2(b)) in June 2018 with Jiayin Finance (the “VIE”) and the shareholders of the VIE. The series of contractual agreements include Power of Attorney Agreement, Exclusive Purchase Agreement, Exclusive Consultation and Service Agreement, and Equity Pledge Agreement. The Company believes that these contractual agreements would enable WFOE to (1) have power to direct the activities that most significantly affect the economic performance of the VIE and its subsidiary and (2) receive the economic benefits of the VIE and its subsidiary that could be significant to them. Accordingly, the Company believes that WFOE is the primary beneficiary of the VIE and its subsidiary. Jiayin Finance, Niwodai Internet and Shanghai Caiyin are collectively referred to as “VIEs”. The Company considered the Reorganization as a reorganization of entities under common control. Accordingly, the accompanying financial statements have been prepared using historical cost basis as if the reorganization had occurred at the beginning of the first period presented. The share and per share data relating to the ordinary shares issued by Jiayin Group Inc. are presented as if the Reorganization occurred at the beginning of the first period presented. IPO On May 10, 2019, the Company completed its IPO on the NASDAQ Global Market. In this offering, 4,025,000 American depositary share (“ADSs”), representing 16,100,000 Class A ordinary shares, were issued at a price of US$10.50 per ADS. The aggregate proceeds received by the Company from the IPO, net of issuance costs, were approximately RMB 234,354. As of December 31, 2019, there were 216,100,000 ordinary shares outstanding, par value US$ 0.000000005 per share, being the sum of 100,100,000 Class A ordinary shares and 116,000,000 Class B ordinary shares. All classes of ordinary shares are entitled to the same dividend right. All of the Class B ordinary shares were held by the Founder of the Company. Business transformation On July 3, 2019, the Company established a wholly owned subsidiary, Geerong Yunke Information Technology Co. , In September, 2019, as part of the business transformation of the Company, Niwodai Internet and Shanghai Caiyin entered into an amendment agreement. Pursuant to this amendment agreement, Niwodai Internet no longer had the rights to adjust the charge rate of guarantee services for Shanghai Caiyin, to collect the residual economic benefits from the guarantee services provided by Shanghai Caiyin, or to terminate the guarantee service agreement at any time. As a result of such revision, Niwodai Internet lost power to direct the activities that most significantly affect the economic performance of Shanghai Caiyin and no economic benefits of Shanghai Caiyin would be received by Niwodai Internet. Therefore, starting from September 1, 2019, Niwodai Internet was no longer considered as the primary beneficiary of Shanghai Caiyin and Shanghai Caiyin was deconsolidated by the Company. The Company operates in an evolving regulatory environment and has been adjusting its business model to stay in compliance with regulatory requirements during the years presented. The Company historically has focused on connecting individual borrowers with individual investors. Starting in 2019 the Company also began to cooperate with institutional funding partners. Its investor assurance program also evolved over time as part of the transformation of its business model. See Note 2(j). As of December 31, 2019 the Parent Company’s significant subsidiaries and its consolidated VIEs are as follows: Name Date of incorporation/ establishmentor acquisition Place of incorporation/ establishment Percentage of legal ownership Principal activities Wholly owned subsidiaries Jiayin Holdings Limited January 2018 BVI 100 % Investment Holding Geerong (HK) Limited (formerly known as “Jiayin (HK) Limited”) January 2018 Hong Kong 100 % Investment Holding Jiayin Southeast Asia Holdings Limited February 2018 BVI 100 % Investment Holding Shanghai Kunjia Technology Co., Ltd. June 2018 Shanghai 100 % Investment Holding Geerong Yunke Information Technology Co. , Ltd . July 2019 Shanghai 100 % Technology development and consumer finance services Geerong Yun (Shanghai) Enterprise Development Co., Ltd. September 2019 Shanghai 100 % Technology development and consumer finance services VIEs Shanghai Jiayin Finance Technology Co., Ltd. June 2015 Shanghai 100 % Technology service Shanghai Niwodai Internet Finance Information Services Co., Ltd. September 2015 Shanghai 100 % Technology development and consumer finance services |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation and consolidation The accompanying consolidated financial statements of the Parent Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company has been historically operating with negative working capital. The aggregated amount of cash and cash equivalents, accounts receivable, short-term investment, and prepaid expenses and other current assets, was less than the aggregated amount of liabilities from payroll and welfare payables, amounts due to related parties, refund liabilities, tax payables, accrued expenses and other current liabilities, and current portion of lease liabilities by RMB 148.4 million as of December 31, 2019. Although the Company had net income of RMB 611.8 million and RMB 527.2 million for the years ended December 31, 2018 and 2019, respectively, and the net cash inflows from operating activities was RMB 26.3 million for the year ended December 31, 2019. As of December 31, 2019, the Company had shareholders’ deficit of RMB741.9 million. As of December 31, 2019, the Company had cash and cash equivalents of RMB 122.1 million. The Company regularly monitors its current and expected liquidity requirements to ensure that it maintains sufficient cash balances to meet its liquidity requirements in the short and long term. Based on the Company’s cash flow projections from operating activities, existing cash and cash equivalents and current assets, the Company believes that it will be able to meet its payment obligations and other commitments for at least through the period ending April 30 (b) Principles of consolidation The consolidated financial statements include the financial information of the Parent Company, its wholly owned subsidiaries and its consolidated VIEs. All intercompany balances and transactions have been eliminated upon consolidation. Variable interest entity The VIE Arrangement with Shanghai Caiyin In December 2015, Niwodai Internet entered into an agreement with Shanghai Caiyin through which Shanghai Caiyin would provide guarantee services for the loans facilitated by Niwodai Internet. Shanghai Caiyin would charge the borrowers a service fee at certain percentage of facilitated loan amount (“charge rate”) and would repay the loan and respective interests to investors within certain days upon borrowers’ default. The charge rate of the guarantee services was determined by Niwodai Internet who had the right to adjust it at any time at its discretion based on the actual performance of the loans facilitated. Niwodai Internet also had the right to collect from the excess of the guarantee services Shanghai Caiyin charges over the payment for default loans after deducting a reasonable cost incurred by Shanghai Caiyin. Furthermore, Niwodai Internet reserved the right to terminate the agreement at any time and engage other parties to perform the guarantee services. Upon termination, Niwodai Internet should assist Shanghai Caiyin to continue to perform guarantee services for existing loans. Shanghai Caiyin did not have business other than guarantee services during the periods presented. Through the aforementioned agreement Niwodai Internet obtained the power to direct the activities that most significantly affects the economic performance of Shanghai Caiyin and would be able to receive the economic benefits of Shanghai Caiyin that could be significant to Shanghai Caiyin. Therefore, Niwodai Internet was considered the primary beneficiary of Shanghai Caiyin and consolidated Shanghai Caiyin since its incorporation. In September 2019, as part of the business transformation of the Company, Niwodai Internet and Shanghai Caiyin entered into an amendment agreement. Pursuant to this amendment agreement, Niwodai Internet no longer had the rights to adjust the charge rate of guarantee services for Shanghai Caiyin, to collect the residual economic benefits from the guarantee services provided by Shanghai Caiyin, or to terminate the guarantee service agreement at any time. As a result of such revision, Niwodai Internet lost power to direct the activities that most significantly affects the economic performance of Shanghai Caiyin and no economic benefits of Shanghai Caiyin would be received by Niwodai Internet. Therefore, starting from September 1, 2019, Niwodai Internet was no longer considered as the primary beneficiary of Shanghai Caiyin and Shanghai Caiyin was deconsolidated by the Company. On September 16, 2019, Shanghai Caiyin was disposed to a third party company, Shenzhen Rongxinbao Non-financial Guarantee Co., Ltd. (“Shenzhen Rongxinbao”) (See Note 7). The VIE Arrangement with Shanghai Kunjia, the WFOE As PRC laws and regulations prohibit and restrict foreign ownership of internet value added businesses, the Parent Company operates its business, primarily through the VIEs. In June 2018, the Parent Company, through its wholly owned foreign invested subsidiary, Shanghai Kunjia or WFOE, entered into a series of contractual arrangements (“VIE agreements”) with Jiayin Finance and its respective shareholders that enable the Parent Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE and its subsidiary, and (2) receive the economic benefits of the VIE and its subsidiary that could be significant to the VIE and its subsidiary. Despite the lack of technical majority ownership, there exists a parent subsidiary relationship between Shanghai Kunjia and the VIE and its subsidiary through the aforementioned agreements. The following is a summary of the VIE agreements: The agreements that provide the Parent Company effective control over the VIE and its subsidiary include: Powers of Attorney: Pursuant to the Power of Attorney, each of the four shareholders have signed power of attorney with WFOE to irrevocably authorize the board of directors / Executive Directors of WFOE and their successors to act as his or her attorney-in-fact Exclusive Purchase Agreement: Pursuant to the Exclusive Purchase Agreement among WFOE, Jiayin Finance and the four shareholders of Jiayin Finance, the four shareholders and Jiayin Finance shall irrevocably grant WFOE, to purchase or appoint one or more persons from WFOE at any time to purchase all or part of the shares which is not subject to legal restriction or assets held by the four shareholders or Jiayin Finance. Except for WFOE and the designated person, no third party shall have the right to purchase shares and assets or other shares and assets related to the four shareholders. The consideration of the purchase should be RMB 1 or the lowest price permitted by the PRC laws. The effective time period of this agreement is ten years, and will be automatically extended to further years. The agreements that transfer economic benefits to the Parent Company include: Exclusive Consultation and Service Agreement: Pursuant to the Exclusive Consultation and Service Agreement between WFOE and Jiayin Finance, WFOE has the exclusive right to provide Jiayin Finance with consulting and other services. Without WFOE’s prior written consent, Jiayin Finance may not accept any services subject to this agreement from any third party. WFOE has the right to determine the service fee to be charged to Jiayin Finance under this agreement by considering, among other things, the complexity of the services, the actual cost that may be incurred for providing such services, as well as the value and comparable price on the market of the service provided. WFOE will have the exclusive ownership of all intellectual property rights created as a result of the performance of this agreement. Unless WFOE terminates this agreement in advance or otherwise provided by law, this agreement will remain effective for ten years and shall automatically extend the term of this agreement prior to its expiration. Jiayin Finance may not terminate this agreement unilaterally. Equity Pledge Agreement: Pursuant to the Equity Pledge Agreement among WFOE, Jiayin Finance and the four shareholders, in order to ensure that Jiayin Finance and its shareholders will fulfill the obligations under the power of attorney, the exclusive consultation and service agreement, and the exclusive purchase agreement (collectively “the Main Agreement”), the four shareholders have pledged 100% equity interest in Jiayin Finance to WFOE. According to the Main Agreement, the pledgee has the right to charge the service fee to Jiayin Finance. Those shareholders and WFOE also agree that without a prior written consent of the pledgee, they shall not transfer the shares or set up any pledge or other form of guarantee which may affect the rights and interests of the pledgee. These contractual arrangements allow the Parent Company, through its wholly owned subsidiary WFOE, to effectively control the VIEs, and to derive substantially all of the economic benefits from them. Accordingly, the Parent Company has consolidated the financial results of the VIEs. The Parent Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Parent Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the Company’s operating licenses; • levy fines on the Company; • confiscate any of the Company ’s income that they deem to be obtained through illegal operations; • shut down the Company’s services; • discontinue or restrict the Company’s operations in China; • impose conditions or requirements with which the Company may not be able to comply; • require the Company to change corporate structure and contractual arrangements; • restrict or prohibit the use of the proceeds from overseas offerings to finance the Company’s PRC consolidated VIEs’ business and operations; and • take other regulatory or enforcement actions that could be harmful to the Company’s business. The following condensed financial statement balances and amounts of the Parent Company’s VIEs, were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the Parent Company, its subsidiaries and its VIEs. As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 41,441 54,602 Restricted cash 41,500 — Amounts due from related parties — 1,651 Accounts receivable, net 336,849 110,219 Contract assets, net 203,080 — Assets from the investor assurance program, net 5,525 — Prepaid expenses and other current assets 88,234 66,722 Deferred tax assets 56,027 54,973 Property and equipment, net 29,011 38,303 Right-of-use — 36,534 Other long-term assets 212 — TOTAL ASSETS 801,879 363,004 Payroll and welfare payables 110,562 29,386 Amounts due to related parties 84,509 722 Liabilities from the investor assurance program 1,547,072 — Refund liabilities 84,498 180,104 Other guarantee liabilities 4,060 — Tax payables 422,177 164,444 Accrued expenses and other current liabilities 201,007 121,319 Other payable related to the disposal of Shanghai Caiyin — 839,830 Lease liabilities — 34,620 TOTAL LIABILITIES 2,453,885 1,370,425 Year ended December 31, 2017 2018 2019 RMB RMB RMB Net revenue 2,250,850 2,881,940 2,151,165 Operating income 686,661 685,206 583,741 Net income 539,545 611,758 571,227 Net cash provided by (used in) operating activities 104,752 (228,368 ) 19,465 Net cash provided by (used in) investing activities 61,215 (16,423 ) (35,505 ) Net cash provided by (used in) financing activities 13,876 (433,600 ) (12,299 ) The VIEs contributed 100% of the Company’s consolidated revenue for years ended December 31, 2017, 2018 and 96% for the year ended December 31, 2019. As of December 31, 2018 and 2019, the VIEs accounted for an aggregate of 100% and 52% of the consolidated total assets, and 100% and 95% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Parent Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs were ever to need financial support, the Company may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Company believes that there are no assets held in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and the PRC statutory reserves. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Parent Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Parent Company in the form of loans and advances or cash dividends. See Note 15 for disclosure of restricted net assets. (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Changes in estimates are recorded in the period they are identified. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company’s financial statements include allowance for uncollectible receivables and contract assets, provision for assets and liabilities from the investor assurance program, valuation allowances for deferred tax assets, valuation of share-based awards, measurement of assets and liabilities from the investor assurance program, fair value measurement and impairment of investment, discount rate used to measure lease liabilities, and allocation of considerations under revenue arrangements with various performance obligations. (d) Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, amounts due from/to related parties, accounts receivable, contract assets, assets from the investor assurance program, prepaid expenses and other assets, and other liabilities are recorded at cost which approximate their fair value mainly due to the short-term nature of these instruments. The Company does not have any assets or liabilities that are recorded at fair value subsequent to initial recognition on a recurring basis other than the short-term investment in convertible debt accounted for as available-for-sale debt security, which is classified as a level 2 fair value measurement. As of December 31, 2019, the carrying amount of the short-term investment is approximate to its fair value. The Company does not have any assets or liabilities measured at fair value on a non-recurring basis during the periods presented. (e) Certain risks and concentrations As of December 31, 2018, substantially all of the Company’s cash and cash equivalents as well as restricted cash were held in major financial institutions located in the PRC. As of December 31, 2019, 64% of the Company’s cash and cash equivalents were held in major financial institutions located in the PRC, and the rest 36% of Company’s cash were held in oversea major financial institutions which management considers to be of high credit quality. No customer represented greater than 10% or more of the total net revenues or receivables for the year s . (f) Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the Peoples Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Company’s cash and cash equivalents denominated in RMB amounted to RMB 41,441 and RMB 78,296 (g) Foreign currency translation The functional currency of Jiayin Group Inc. is in US dollars (“US$”). The functional currency of the Company’s subsidiaries and VIEs in the PRC is Renminbi (‘‘RMB’’). The functional currency of subsidiaries outside of PRC is typically their local currency. The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters. The Company also uses RMB as its reporting currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the statements of comprehensive income. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the statements of comprehensive income. (h) Convenience translation The Company’s financial statements are stated in RMB. Translations of balances in the consolidated balance sheets, and the related consolidated statements of comprehensive income, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended December 31, 2019 are included solely for the convenience of the readers and have been made at the rate of US$1.00=RMB6.9618, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2019. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate or at any other rate. (i) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. (j) Investor Assurance Program Investor assurance program managed by Shanghai Caiyin Historically for all the loans facilitated prior to April 2018, the Company had maintained an investor assurance program for the benefits of investors who invested on unsecured loans through its marketplace, through its consolidated VIE, Shanghai Caiyin until Shanghai Caiyin was disposed in September 2019 (see Note 2(b)). Under the investor assurance program, the Company set aside the service fees charged by Shanghai Caiyin into designated restricted cash accounts (“investor assurance fund”) to be used to cover the principal and interest of defaulted loans on a portfolio basis, payable on a first-loss basis up to the balance of the investor assurance program. The Company repaid the aggregate amounts of principal and respective interest, which were due based on the repayment schedule, to investors typically within a few days upon borrowers’ default. In accordance with the terms of the investor assurance program, an investor was entitled to compensation for losses resulting from defaulted loans within 15 calendar days of the due date. Default payments to investors could only be made from the investor assurance program when there were sufficient funds available. The Company’s obligation under the investor assurance program to make payments was limited to the amount of the restricted cash at any point in time and the Company was obliged to compensate investors once the restricted cash balance was replenished again from service fees generated from future borrowers. Once the investor was paid for a borrower’s default, any future amount recovered would be deposited into the investor assurance program. The Company had been regularly reviewing the actual net accumulated loss rate of each loan product facilitated and relevant economic factors to ensure the estimations are kept up-to-date. At the loan inception, the Company recorded liability from investor assurance program in accordance with ASC Topic 460-10, non-contingent Subsequently, the liability from the investor assurance program was measured in a combination of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 was determined on a loan by loan basis and it was reduced when the Company was released from the underlying risk, meaning when the loan was repaid by the borrower or when the lender was compensated in the event of a default. This component was a stand ready obligation which was not subject to the probable threshold used to record a contingent obligation. When the Company was released from the stand-ready liability upon expiration of the underlying loan, the Company records a corresponding amount as net revenue in the consolidated statement of comprehensive income. The other component was a contingent liability determined based on probable loss considering the actual historical performance and current condition, representing the future payouts under the investor assurance program in excess of the stand-ready liability and was measured using the guidance in ASC Topic 450, Contingencies. The ASC Topic 450 contingent component was determined on a collective basis and loans with similar risk characteristics were pooled into cohorts for purposes of measuring incurred losses. The ASC Topic 450 contingent component was recognized as part of operating expenses in the consolidated statement of comprehensive income as “provision for assets and liabilities from the investor assurance program”. At all times the recognized liability (including the stand-ready liability and contingent liability) was at least equal to the probable estimated losses of the guarantee portfolio. As the Company’s stand-ready liability was not traded in an active market with readily observable prices, the Company used significant unobservable inputs to measure the fair value of stand-ready liabilities upon initial recognition. The Company estimated the fair value of the stand-ready liability by estimating net expected accumulated loss rate for each product type, based on historical net accumulated loss rate for each product type and incorporating a markup margin. A discounted cash flow methodology was used to estimate the fair value of the guarantee liabilities. The significant unobservable inputs used in the fair value measurement of guarantee liabilities include the expected net accumulative loss rates applied in the valuation models. The weighted average expected net accumulative loss rates applied for year 2017 and 2018 are 13.4% and 11.2% on new loans facilitated in the respective years. These inputs in isolation could cause significant increases or decreases in fair value. The increase in the net expected cumulative loss rates could significantly increase the fair value of stand-ready liability of the loan newly facilitated upon initial recognition; conversely a decrease in the net expected cumulative loss rates could significantly decrease the fair value of stand-ready liability of the loan newly facilitated upon initial recognition. When a discounted cash flow model was used to determine fair value, the significant input used in the valuation model was the discount rate applied to present value the projected cash flows which is based on market rates. The Company also estimated the markup margin by looking at several comparable business models. The expected net accumulated loss rate of underlying loans was determined based on the average historical net accumulated loss rate of the Company’s products. At the loan inception, the Company recorded the assets from the investor assurance program which corresponded to the stand-ready liability recognized at fair value, and represented service fees that were collectible from the underlying loans that were expected to be used for the estimated payout of the corresponding guarantee liabilities. At each reporting date, the Company estimates the future cash flows and assesses whether there was any indicator of impairment. If the carrying amounts of the assets from the investor assurance program exceeded the expected cash to be received, an impairment loss was recorded for the asset not recoverable and was reported as “provision for assets and liabilities from the investor assurance program” in the statements of comprehensive income. The investor assurance program also covered the outstanding loans acquired from Niwodai Finance in the 2015 Acquisition, of which the associated guarantee liabilities were separately recorded as “other guarantee liabilities” in the Company’s consolidated balance sheet (see Note 1). Service fees collected from all the loans, including loans newly facilitated by the Company and loans related to other guarantee liabilities acquired in the 2015 Acquisition, were utilized to pay out on both liabilities from the investor assurance program and other guarantee liabilities. However, service fees collected from all the loans are principally related to new loans facilitated by the Company. The Company has facilitated a total of RMB 8,632 million unsecured loans that were subject to the investor assurance program managed by the consolidated VIE, representing 36% of total loan volume facilitated in the 2018. Since As of December 31, 2018 Current Other Offline and Loans Total outstanding loan balances 1,224,961 169,072 3,554,398 — Maximum potential undiscounted future payments 1,265,267 180,845 3,847,072 4,060 Remaining weighted average contractual term 2.3 8.8 10.5 — Net expected accumulative loss rate on outstanding loans 11.3 % 16.0 % 19.0 % — The Company no longer provides any form of guarantee for new loans facilitated through the marketplace since April 28, 2018 and therefore does not record liabilities from the investor assurance program associated with those new loans. Further, upon the disposal of Shanghai Caiyin in September 2019, the Company is no longer obligated for the guarantee liabilities arising from the investor assurance program maintained by Shanghai Caiyin for loans facilitated prior to April 28, 2018. See note 2(b). Investor assurance program managed by independent third parties Starting from April 28, 2018, all newly facilitated unsecured loans are subject to an investor assurance program managed by Shenzhen Rongxinbao, an unrelated third party guarantee company. All the borrowers obtaining new loans are required to enter into service agreement with Shenzhen Rongxinbao, according to which Shenzhen Rongxinbao will compensate investors for losses on principal and interest from borrower’s default. A portion of the service fees that the Company is entitled to is collected by Shenzhen Rongxinbao on behalf of the Company from the borrowers. The Company has facilitated RMB 11,082 million and RMB 15,661 million unsecured loans subject to the investor assurance program managed by Shenzhen Rongxinbao, representing 47% and 86% of total loan volume facilitated in 2018 and 2019, respectively. Starting on July 3, 2018, a part of unsecured loans newly facilitated by the Company are subject to an investor assurance program managed by China United SME Guarantee Corporation (“Sino Guarantee”), an unrelated third party guarantee company. Borrowers of those loans are required to enter into a separate agreement with Sino Guarantee and to contribute to an investor protection fund managed by Sino Guarantee. Investments made by investors on those loans are protected by the investor protection fund to the extent of the existing balance of the fund. The Company has facilitated RMB 1,233 million and RMB 2,544 million unsecured loans that is managed by Sino Guarantee, representing 5% and 14% of total loan volume facilitated in 2018 and 2019, respectively. The Company does not assume any liabilities if the balance of the fund is not sufficient to fully compensate all investors. Starting from January 2019, Shanghai Caiyin engaged Shenzhen Rongxinbao to help operate the investor assurance program for loans facilitated prior to April 2018 and funded the program by service fees that Rongxingbao collected on behalf of the Company. Further, upon disposal of Shanghai Caiyin in September 2019, the Company is no longer obligated for the guarantee liabilities aforementioned arising from the investor assurance program maintained by Shanghai Caiyin. Investor assurance program partnering with Class B Investors In July 2018, the Company launched an investor assurance programs by partnering with selective unrelated third party individual investors (“Class B investors”), who are willing to take higher risks in exchange for higher returns from managing the investor assurance for other investors who invest in the same loan product but with lower level of risk tolerance (“Class A investors”). The minimum investment amount for such Class B investment program is RMB 1 million. The investment of Class B investors are matched with a number of loans on the Company’s marketplace and each of such loans are matched with Class A and Class B investors at the same time. The borrower was required to pay certain non-refundable During the year of 2018, the Company has facilitated RMB2,727 million unsecured loans that were subject to the investor assurance program partnering with Class B investors, representing 12% of total loan volume facilitated in 2018. Guarantee arrangements for institutional funding partners For the loans facilitated between borrowers and institutional funding partners, guarantee services are provided by third party guarantee companies who charge guarantee service fees directly from borrowers. Upon borrowers’ default, the third-party guarantee companies compensate institutional funding partners for unpaid principal and interest. In certain contracts, the Company provides commitment letter of balance complements to the institutional funding partners in the event that the guarantee companies are unable to fully reimburse the institutional funding partners. In some other contracts, the guarantee companies require a third party company acts as a counter guarantor and require |
ASSETS FROM THE INVESTOR ASSURA
ASSETS FROM THE INVESTOR ASSURANCE PROGRAM | 12 Months Ended |
Dec. 31, 2019 | |
Assets [Abstract] | |
ASSETS FROM THE INVESTOR ASSURANCE PROGRAM | 3. ASSETS FROM THE INVESTOR ASSURANCE PROGRAM The movement of the assets from the investor assurance program for the year ended December 31, 2018 is as follow: Opening balance Assets arising Subsequent Additional provisions in the current year Ending balance as RMB RMB RMB RMB RMB Current loan products 1,187 968,732 (969,919 ) — — Other online standard loan products 218,686 373 (218,806 ) (87 ) 166 Offline and non-standard 50,403 710 (37,564 ) (8,190 ) 5,359 Total 270,276 969,815 (1,226,289 ) (8,277 ) 5,525 The movement of the assets from the investor assurance program for the year ended December 31, 2019 is as follow: Opening balance Assets arising Subsequent Additional Transfer out Ending RMB RMB RMB RMB RMB RMB Current loan products — — — — — — Other online standard loan products 166 — (165 ) — (1 ) — Offline and non-standard 5,359 — (5,175 ) — (184 ) — Total 5,525 — (5,340 ) — (185 ) — The Company recorded RMB 8,277 and nil additional provisions as provision for assets and liabilities from the investor assurance program in 2018 and 2019, respectively. The additional provisions of RMB 8,277 ere |
GUARANTEE LIABILITIES
GUARANTEE LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Liabilities [Abstract] | |
GUARANTEE LIABILITIES | 4. GUARANTEE LIABILITIES The Company’s movement on liabilities from the investor assurance program and other guarantee liabilities for the years ended December 31, 2018 and 2019 is as follows: Current loan Other online Offline and non- Total RMB RMB RMB RMB Opening balance as of January 1, 2018 827,703 741,275 2,149,374 3,718,352 Liability arising from new business 968,732 373 710 969,815 Net payouts for loans originated in 2015 — — (792,923 ) (792,923 ) Net payouts for loans originated in 2016 254 (4,412 ) (750,399 ) (754,557 ) Net payouts for loans originated in 2017 (778,674 ) (399,874 ) (231,609 ) (1,410,157 ) Net payouts for loans originated in 2018 (519,849 ) (146 ) (333 ) (520,328 ) Release on expiration (27,021 ) (89,582 ) (1,918 ) (118,521 ) Contingent liability accrued 103,964 6,386 349,101 459,451 Ending balance as of December 31, 2018 575,109 254,020 722,003 1,551,132 Current loan Other online Offline and non- Total RMB RMB RMB RMB Opening balance as of January 1, 2019 575,109 254,020 722,003 1,551,132 Liability arising from new business — — — — Net payouts for loans originated in 2015 — — (15,999 ) (15,999 ) Net payouts for loans originated in 2016 391 (431 ) (229,430 ) (229,470 ) Net payouts for loans originated in 2017 (181,253 ) (7,140 ) (86,452 ) (274,845 ) Net payouts for loans originated in 2018 (321,276 ) (2 ) (109 ) (321,387 ) Release on expiration (1,648 ) (6 ) (1,177 ) (2,831 ) Transfer out due to disposal of Shanghai Caiyin (71,323 ) (246,441 ) (388,836 ) (706,600 ) Ending balance as of December 31, 2019 — — — — |
SHORT-TERM INVESTMENT
SHORT-TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Investments [Abstract] | |
SHORT-TERM INVESTMENT | 5. SHORT-TERM INVESTMENT The Company entered into an investment agreement with Cornerstone Management, Inc. (“Cornerstone”), a third party private company, on July 15, 2019 to purchase its convertible notes for a cash consideration of The term of the convertible note is one year. Cornerstone is primarily engaged in private equity fund management. The Company has the right to convert the debt to Cornerstone’s ordinary shares upon its successful initial public offering at the lower price of the listing price or closing price of the exercise date, wherein the principle and the interest incurred shall be counted into total investment funds. No embedded derivative was bifurcated and the investment is recorded as available-for-sale considering its in-substance debt nature. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 6 PROPERTY AND EQUIPMENT Property and equipment consisted of the followings: Year ended December 31, 2018 2019 RMB RMB Leasehold improvement 7,291 8,093 Motor vehicles 1,604 1,604 Electronic equipment 29,756 56,068 Office equipment & furniture 6,432 6,868 Software 1,182 1,342 Total costs 46,265 73,975 Less: accumulated depreciation and amortization (17,254 ) (34,891 ) Property and equipment, net 29,011 39,084 For the years ended December 31, 2017, RMB4,098, |
DISPOSAL OF SHANGHAI CAIYIN
DISPOSAL OF SHANGHAI CAIYIN | 12 Months Ended |
Dec. 31, 2019 | |
Other Payable Relates To The Disposal Of Subsidiaries [Abstract] | |
DISPOSAL OF SHANGHAI CAIYIN | 7 DISPOSAL OF SHANGHAI CAIYIN In September, 2019, Niwodai Internet entered into an agreement (the “Agreement”) with Shenzhen Rongxinbao, and Shanghai Jiayin, which wholly owns the equity interest of Shanghai Caiyin. Pursuant to the Agreement, Shanghai Jiayin agreed to transfer all of its equity interest in Shanghai Caiyin to Shenzhen Rongxinbao and the Company revises the terms of its collaboration with Shanghai Caiyin. As a result, the Company deconsolidated Shanghai Caiyin (Note 2(b)). As Shanghai Caiyin was in net deficit position as of August 31, 2019 due to its collaboration with the Company, the Company also agreed to waive Shanghai Caiyin’s payables to the Company of RMB 1,974 million and pay a total transaction price of RMB 1,079 million, of which RMB 372 million is contingent upon Shanghai Caiyin’s liability status in the period preceding December 3 0 on December 30, |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | 8 SHARE-BASED COMPENSATION The following table presents the classification of the Company’s share-based compensation expenses: Year ended December 31, 2017 2018 2019 RMB RMB RMB Origination and servicing 1,620 2,516 10,345 General and administrative 24,326 29,734 80,599 Research and development 28,619 22,820 48,578 Sales and marketing 34,831 12,708 8,060 Total 89,396 67,778 147,582 In September 2016, Jiayin Finance approved an employee incentive plan (the “2016 Plan”) and utilized a limited liability partnership (“LLP”) as a vehicle to hold shares that will be used under the 2016 % of Finance’s total outstanding shares at the time. A company controlled by the Founder is the general partner (“GP”) of the LLP. The purpose of the LLP is to allow employees of the Company to receive share-based incentives. The LLP has no activities other than administrating the Plan and does not have any employees. On behalf of the Company and subject to approval of board of director of the Parent Company, the Founder, as the controller of LLP has the authority to select the eligible participants to whom awards will be granted; determine the number of shares covered; and establish the terms, conditions and provision of such awards. The Plan allows the grantees to hold options to purchase LLP shares from the GP or the designated persons to indirectly hold the equity shares of Finance. In , Finance granted options to acquire certain LLP shares, equivalent of ordinary shares of Finance with the exercise price of RMB per share to employees of the Company pursuant to the 2016 Plan. Options have a 4.5-year life and vest at %, %, %, and % respectively at March , , , and respectively. In , Finance granted options to acquire certain LLP shares, equivalent of ordinary shares of Finance with the exercise price of RMB per share to employees of the Company pursuant to the 2016 Plan. Options have a 4.5-year life and vest at %, %, %, and % respectively at March , , , and respectively. For illustration purposes, all the share information disclosed in this section refers to the shares of Jiayin Finance the grantees are entitled through LLP shares. The additional grants in October 2018 include the 2,851,600 shares from options forfeited in relation to the options granted in September 2016, which were automatically released to the 2016 The awards are in substance share-based expenses incurred by the controlling Founder on behalf of the Parent Company. The related expenses are reflected in the Parent Company’s consolidated financial statements as share-based compensation expenses with an offsetting to additional paid-in In , the Company adopted the Share Incentive Plan (“ Plan”), effectively upon the completion of the Parent Company’s initial public offering (“IPO”) to replace the Plan on a : ratio. The Plan contains performance vesting condition related to the operation results of the Company and the business department the grantee belongs to, as well as the grantee’s individual performance. The modification did not result in any incremental value. In connection with the adoption of Plan, the Company and share options granted in and , respectively. Total unrecognized share-based compensation expense of RMB associated with the options was immediately recognized in the consolidated statement of comprehensive income upon cancellation for the year ended December , . In November, , the Company granted four batches options equivalent of share options of Group with the exercise price of RMB per share to employees pursuant to the Plan. The Company uses a binominal pricing model, which assumes the value of an asset increases and decreases by fixed proportions at a predictable schedule, to estimate the fair value of the above options granted under the Plan and Plan. Binomial options pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of subjective assumptions including the estimated expected stock price volatility and, the exercise multiple. For expected , as the length of time has been short since Company went to public, the Company has made reference to the historical price of several comparable companies in the same industry as the Company in . For the exercise multiple, it is based on management’s estimation, which the Company believes is representative of the future exercise pattern of the options. The risk-free rate for periods within the contractual life of the option is based on the China or US Government Bond with maturity similar to the maturity of the options as of valuation. The estimated fair value of the ordinary shares, at the option grant dates, was determined with assistance from an independent third party valuation firm. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The following assumptions were applied to estimate the fair value of the options granted in 2016, 2018 and 2019 at the date of grant: September 2016 October 2018 November 2019 Average risk-free rate of interest 2.54% 3.32% 1.57%-1.69% Estimated volatility rate 50.46% 44.32% 42.86%-45.28% Dividend yield 0.00% 0.00% 0.00% Time to maturity 4.5 years 4.5 years 0-3 years Fair value per underlying ordinary share RMB RMB RMB 53.43 The weighted average grant date fair value of options granted during the year ended December 31, 201 7 , , and 2019 , and RMB 50.36per share, respectively. For the years ended December 31, 2017, Company RMB 89,396, 147,582, respectively. The summary of the aggregate option activity and information regarding options outstanding as of December 31, 2019 is as follows: Number of (in ‘000s) Weighted Average Exercise Price Weighted Average Remaining Contract Life Aggregate Intrinsic Value RMB Years RMB Options outstanding at December 31, 2018 11,437 3.5 3.55 357,993 Options granted in 2019 288 Options forfeited in 2019 (2,480 ) Options cancelled in 2019 (3,546 ) Options outstanding at December 31, 2019 5,699 3.5 2.51 189,093 Options exercisable at December 31, 2019 1,674 3.5 2.51 49,567 Options vested or expected to be vested at December 31, 2019 5,699 3.5 2.51 189,093 As of December 31, 2017, RMB RMB 55,917 non-vested 3.25 years, |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9 INCOME TAXES Income tax expense consist s Year ended December 31, 2017 2018 2019 RMB RMB RMB Current income tax expense: PRC 80,548 111,552 168,924 Deferred income tax expense (benefit): PRC 81,099 (17,637 ) (131,917 ) Total income tax expense 161,647 93,915 37,007 Cayman Islands Jiayin Group Inc. is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, Jiayin Group Inc. is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong The Parent Company subsidiary, Jiayin (HK) Limited, is located in Hong Kong and is subject to an income tax rate of 16.5% for taxable income earned in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Parent Company are not subject to any Hong Kong withholding tax. No income tax 2017, 2018 and 2019 , respectively PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), the Company Niwodai Internet renewed high-new Company n Uncertainties exist with respect to how the current income tax law in the PRC applies to the Company’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese i non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside of the PRC within the Company should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Parent Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Parent Company and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of The Parent Company and its subsidiaries outside the PRC do not have any assessable profits as of December 31, 2018 and 2019, therefore, the Company is not subject to any uncertain tax position. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended to Company Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth the significant components of the deferred tax assets and deferred tax liabilities: Year Ended December 31, 2018 2019 RMB RMB Deferred tax assets Payroll and welfare payable 16,880 12,131 Accrued expenses 20,462 16,199 Allowance for uncollectible receivables and contract assets 101,048 37,932 Liabilities from the investor assurance program 306,655 — Net loss carryforward 576,810 13,595 Liabilities related to customer incentive 23,423 44,216 Gross deferred tax assets 1,045,278 124,073 Valuation allowances (619,533 ) (1,909 ) Net deferred tax assets 425,745 122,164 Deferred tax liabilities Uncollected revenues (369,718 ) (53,872 ) Total deferred tax liabilities (369,718 ) (53,872 ) Net deferred tax assets (after offsetting) 56,027 68,292 Deferred tax assets and liabilities have been offset where the Company The Company carry-forward Company carry-forwards, , and RMB 2018 and 2019 respectively Company At December 31, 2017, , RMB In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Parent Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Company plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no withholding income taxes for undistributed profits of the Company’s PRC subsidiaries have been provided as of December 31, 2018 and 2019. The aggregate undistributed earnings of the Company’s PRC subsidiaries that are available for distribution was nil as of December 31, 2018 and 2019. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company does not accrue deferred tax liabilities on the earnings of the VIEs given that the Company’s VIEs had accumulated deficits as of December 31, 2018 and 2019. Reconciliations of the differences between PRC statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2017, 2018 and 2019 are as follows: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Statutory income tax rate 25.00 % 25.00 % 25.00 % Non-deductible expense 2.57 % 2.62 % 6.66 % Research and Development expense super deduction (0.31 %) (1.44 %) (2.97 %) Effect of tax holiday (4.24 %) (12.87 %) (18.86 %) Different tax rate of entities operating in other jurisdiction 0.00 % 0.00 % (0.07 %) Valuation allowance 0.00 % 0.00 % 0.32 % Change in 0.79 % 0.00 % (3.13 %) True up 0.00 % 0.00 % (0.40 % ) Effective tax rate 23.81 % 13.31 % 6.55 % The effect of the tax holiday on the income per share is as follows: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Tax saving amount due to HNTE status 29,739 90,819 106,516 Tax saving amount due to other jurisdiction — — (411 ) Income per share effect-basic and diluted 0.15 0.45 0.50 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2019 | |
Common Stock [Abstract] | |
ORDINARY SHARES | 10. ORDINARY SHARES On December 2017, the Company authorized a total of 500,000,000 shares with a par value of US$0.0001 upon its establishment, of which 10,000 shares were issued and outstanding. Following the approval of the Company’s Board on December 19, 2018, the Company split each of its ordinary shares to 20,000 ordinary shares. The share split has been applied retrospectively for all periods presented. On May 10 |
INCOME PER SHARE
INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
INCOME PER SHARE | 1 1 INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share attribute to ordinary shareholders after the stock split: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Net income attributable to ordinary shareholders – basic and diluted 539,545 611,758 527,747 Weighted average number of ordinary shares outstanding – diluted and diluted 200,000,000 200,000,000 210,409,863 Basic and diluted net income per share 2.70 3.06 2.51 As economic rights and obligations are applied equally to both Class A and Class B ordinary shares, earnings are allocated between the two classes of ordinary shares evenly with the same allocation on a per share basis. The Company does not have shares with anti-dilutive effect for the year ended December 31, 2017, 2018 and 2019. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | 12. LEASES Operating lease assets primarily represents various facilities under non-cancelable operating ( including fixed lease cost and short-term lease cost Total lease expense related to short-term leases was RMB 6,511 for the year ended December 31, 2019. Supplemental consolidated balance sheet information related to leases was as follows: As of December 31, 2019 Operating leases: RMB Operating leases right-of-use 37,215 Current portion of lease liabilities 2,735 Non-current 32,480 Total operating lease liabilities 35,215 Weighted average remaining lease term (in years) 1.2 Weighted average discount rate 4.75 % Supplemental cash flow information related to leases for the year ended December 31, 2019 is as follows: For the year ended 2019 RMB Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases 28,319 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 15,986 Maturities of lease payments by year and in the aggregate, under non-cancellable As of December 31, 2019 RMB 2020 33,430 2021 2,746 2022 and thereafter — Total lease payment 36,176 Less imputed interest (961 ) Total 35,215 As of December 31, 2018, the undiscounted future minimum lease payments under non-cancellable operating leases prior to the adoption of the lease ASUs were as follows: As of December 31, 2019 RMB 2019 23,901 2020 22,955 2021 3,826 2022 and thereafter — Total 50,682 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS The table below sets forth the major related parties and their relationships with the Company, with which the Company entered into transactions during the years ended December 31, 2017, 2018 and December 31, 2019: Name of related parties Relationship with the Company Shanghai Jiayin Finance Services Co., Ltd. (“Shanghai Jiayin”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Jiayin (Shanghai) Finance Information Service Co., Ltd. (“Jiayin (Shanghai)”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Shanghai Jiayin Zhuoyue Wealth Management Co., Ltd. (“Jiayin Zhuoyue”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Jiayin Credit Investigation Service Co., Ltd. (“Jiayin Credit”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Geerong Yun (Shanghai) Enterprise Development Co., Ltd. (“Geerong Yun”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Shanghai Shilupan Technology Co., Ltd. (“Shilupan”) Entity influenced by Mr. Yan the Founder and Chairman of the Company Kailiantong Payment Service Co., Ltd. (“Kailiantong”) Entity influenced by Mr. Yan the Founder and Chairman of the Company China SmartpayGroup Holdings Ltd. (“China Smartpay”) Entity influenced by Mr. Yan the Founder and Chairman of the Company GAYANG (Hongkong) Co., Ltd. (“GAYANG”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Shanghai Jiajie Assets Management Co., Ltd. (“Shanghai Jiajie”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company Jiayin Financial Leasing (Shanghai) Co., Ltd. (“Jiayin Financial Leasing”) Entity controlled by Mr. Yan, the Founder and Chairman of the Company SG Fintech Joint Stock Company (“SG Fintech”) Subsidiary of Company’s equity investee The Company entered into the following transactions with its related parties: Year ended December 31, 2017 2018 2019 RMB RMB RMB Services provided by related parties: Jiayin Zhuoyue (1) 106,256 77,984 81,206 Shanghai Jiayin (2) — 13,806 8,280 Shilupan (3) — 17,202 7,863 Jiayin (Shanghai) (1) 146,446 2,459 6,548 Kailiantong (4) — 8,065 2,255 Jiayin Credit (5) 2,420 10,513 196 Geerong Yun (6) — 3,136 — Total 255,122 133,165 106,348 Services provided to related parties Kailiantong (4) — — 1,761 Total — — 1,761 Year ended December 31, 2017 2018 2019 RMB RMB RMB Loans to related parties: China Smartpay(7) — — 119,924 GAYANG (8) — — 1,716 Shanghai Jiayin (8) — — 909 Shanghai Jiajie (8) — 7,700 800 SG Fintech (9) — — 598 Geerong Yun (10) — 3,850 — Total — 11,550 123,947 Loans from related parties Jiayin Financial Leasing(11) — — 150 Jiayin Credit (11) 13,876 70,765 80 Total 13,876 70,765 230 (1) Jiayin Zhuoyue and Jiayin (Shanghai) referred investors and borrowers to the Company and charged referral service fees. (2) Shanghai Jiayin rent office to the Company and charged lease payment and other related service fee, which is calculated dependent on its usage of underlying office. (3) Shilupan provided credit analysis service for the Company and charged corresponding service fees. (4) Kailiantong provided cash payment service to the Company charged transaction processing fees. The Company provided referral service to Kailiantong and charged loan facilitation fees, which resulted in the 2019 balance of amount due from related parties. (5) Jiayin Credit provided credit service to the Company and charged credit service fees. (6) Geerong Yun was acquired by the Company in 2019. The service provided in 2018 was referral service. See Note 1. (7) The amount represents loans to related party in 2019. The Company entered into a loan contract with China Smartpay of RMB 119,924 (US$ 17, 225) with fixed annual interest rate of 8%. The loan balance includes principal of RMB 119, 924 and interest of RMB 4,938 was recorded for year 2019. The total amount of RMB124,862 had not been repaid by the year end of 2019. (8) The amount represents loans to related parties in 2019 for the daily operation, which are non-interest bearing, unsecured, and due on demand. (9) The amount represents loans to related parties in 2019, which results in the balance of amount due from related parties shown as below. The Company entered into a loan contract with SG Fintech of RMB 598 (US$ 86) with fixed interest rate 0.5%. The loan balance includes principal RMB 598 and interest receivable RMB 1. (10) The amount represents loans to related parties in 2018, which was subsequently collected in the same year. (11) The amounts represent loans from related parties in the years of 2017, 2018 and 2019 for the daily operation. The following table present amounts due from and due to related parties as of December 31, 2018 and 2019: As of December 31, 2018 2019 RMB RMB Amounts due from related parties China Smartpay — 124,862 GAYANG — 1,716 Shanghai Jiayin — 1,564 Kailiantong — 1,050 Shanghai Jiajie — 800 SG Fintech — 599 Jiayin Credit — 131 Total — 130,722 Amounts due to related parties Jiayin Zhuoyue 8,199 722 Jiayin Financial Leasing — 150 Jiayin Credit 70,399 — Kailiantong 3,835 — Shilupan 2,076 — Total 84,509 872 Amounts due from related parties primarily consist of loans to related parties. Amounts due to related parties primarily consist of the amount of service fees payable to related parties. Balance as of December 31, 2018 for amount due to Credit represents the loan received by the Company for daily operation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Capital and other commitments The Company did not have significant capital and other commitments, long-term obligations as of December 31, 2019. As of December 31, 2019, the fair value of guarantees was not material. Contingencies The Compa ny |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 1 5 RESTRICTED NET ASSETS The Pare nt Pare nt Parent Under PRC law, the Pare nt Amounts restricted that include paid in capital and statutory reserve funds, as determined pursuant to PRC GAAP, are RMB , RMB 2017, |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS Starting from January 2020, a novel strain of coronavirus (“COVID-19”) has spread worldwide. Since then, the resulting restrictions on travel and quarantines in China and other countries and regions have caused adverse impacts on the Company’s business, slowing down the transformation in relation with loan facilitation for institutional funding partners in February but recovered in March. The extent to which COVID-19 impacts the business and financial results of the Company depends on future developments, which are uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and actions to contain COVID-19 or mitigate its impact, among others. As of the reporting date, COVID-19 has not caused a material negative impact on the Company’s business, financial condition, liquidity, results of operations and prospects. The future financial impact on the Company, if any, of COVID-19 cannot be reasonably estimated at this time, and the Company will continue to closely monitor the impact of the COVID-19 outbreak. On March 13, 2020, the Company and another independent investor entered into a share purchase agreement with China Smartpay, pursuant to which, among others, the Company agreed, subject to the approval obtained from the China Smartpay’s general meeting, to acquire ordinary shares of Keen Best Investments Limited (“Keen Best”), representing 35% equity interest in Keen Best, a wholly-owned subsidiary of China Smartpay. Mr. Yan, the founder, director and chief executive officer of the Company currently beneficially owns approximately 29.8% equity interest in China Smartpay. The Keen Best holds 100% of the equity interests in Union Evernew Investment Limited, a company incorporated in Hong Kong with limited liability, which in turn wholly owns Massnet Microcredit Company (Chongqing) Limited (“Massnet Microcredit”), a company established in the PRC with limited liability. Keen Best and its subsidiaries are principally engaged in internet microcredit business in the PRC through its nationwide microloan lending license. The purchase consideration is HK$105,000,000 and the Company plans to settle the consideration by offset its receivable from China Smartpay. |
FINANCIAL STATEMENTS SCHEDULE I
FINANCIAL STATEMENTS SCHEDULE I | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
FINANCIAL STATEMENTS SCHEDULE I | ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (AMOUNT IN THOUSANDS, EXCEPT SHARE AND SHARE RELATED DATA) 2018 2019 RMB RMB US$ Assets Current assets Cash and cash equivalents — 27,223 3,910 Short-term investment — 69,618 10,000 Amounts due from subsidiaries and VIEs — 44,695 6,420 Amounts due from a related party — 124,862 17,935 Prepaid and other current assets — 1,117 160 Total current assets — 267,515 38,425 Investments in subsidiaries and VIEs (1,652,006 ) (1,003,436 ) (144,135 ) Total assets (1,652,006 ) (735,921 ) (105,710 ) Liabilities Current Liabilities Accrued expenses and other current liabilities — 5,933 851 Total liabilities — 5,933 851 Equity Ordinary shares — — — Additional paid-in capital 395,472 777,408 111,668 Accumulated deficit (2,047,478 ) (1,519,731 ) (218,296 ) Other comprehensive income — 469 67 Total deficit (1,652,006 ) (741,854 ) (106,561 ) Total liabilities and deficit (1,652,006 ) (735,921 ) (105,710 ) JIAYIN GROUP INC. ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (AMOUNT IN THOUSANDS, EXCEPT SHARE AND SHARE RELATED DATA) Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Operating cost and expenses: General and administrative — — (2,886 ) (415 ) Total operating cost and expenses — — (2,886 ) (415 ) Loss from operations — — (2,886 ) (415 ) Interest income — — 4,910 705 Other income, net — — 1 — Income before taxes and income from equity in subsidiaries and VIEs — — 2,025 290 Income tax expense — — — — Equity in earnings of subsidiaries and VIEs 539,545 611,758 525,722 75,515 Net income 539,545 611,758 527,747 75,805 Other comprehensive income, net of tax Change in cumulative foreign currency translation adjustment — — 469 67 Other comprehensive income — — 469 67 Comprehensive income 539,545 611,758 528,216 75,872 JIAYIN GROUP INC. ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONSOLIDATED STATEMENTS OF COMPANY CASH FLOW STATEMENTS (AMOUNT IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cash flows from operating activities Net income 539,545 611,758 527,747 75,805 Adjustments to reconcile net income to net cash used in operating activities: Share of results of subsidiaries and VIEs (539,545 ) (611,758 ) (525,722 ) (75,515 ) Depreciation and amortization — — 2,020 290 Changes in operating assets and liabilities: Amounts due from a related party — — (4,938 ) (709 ) Amounts due from subsidiaries and VIEs (44,695 ) (6,420 ) Prepaid and other current assets — — (3,137 ) (451 ) Accrued expenses and other current liabilities — — 5,933 851 Net cash used in — — (42,792 ) (6,149 ) Cash flows from investing activities Loan to a related party — — (119,924 ) (17,225 ) Purchase of short-term investment — — (71,477 ) (10,267 ) Net cash used in investing activities — — (191,401 ) (27,492 ) Cash flows from financing activities Net proceeds from issuance of ordinary sh ares 255,928 36,762 Net cash provided by financing activities — — 255,928 36,762 Effect of foreign exchange rate changes on cash and cash equivalents — — 5,488 789 Net decrease in cash and cash equivalents — — 27,223 3,910 Cash and cash equivalents at beginning of year — — — — Cash and cash equivalents at end of the year — — 27,223 3,910 Supplemental disclosure of significant non-cash — — — — Decease in investment in subsidiaries and VIEs for cash dividend paid by a subsidiary on behalf of the parent to the Company — (400,000 ) — — JIAYIN GROUP INC. ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I NOTES TO SCHEDULE I 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) 5-04(c) S-X, 2. As disclosed in Note 1 to the consolidated financial statements, the Parent Company was incorporated on December 21, 2017 in the Cayman Islands to be the holding company of the Company. The Parent Company undertook a series of transactions to redomicile its business from PRC to the Cayman Islands. The Parent Company has presented Schedule I as if Cayman Islands parent company has been incorporated on January 1, 2017. 3. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and VIEs. The Parent Company records its investments in subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries and VIEs” and share of their earnings as “Equity in earnings of subsidiaries and VIEs” on the Condensed Statements of Comprehensive Income. 4. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosure certain supplemental information relating to the operations of the Parent Company and, as such, these statements should be read in conjunction with the notes to the accompanying Consolidated Financial Statements. 5. As of December 31, 2018 and 2019, there were no material contingencies, significant provisions of long term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Parent Company. 6. Translations of balances in the additional financial information of Parent Company- Financial Statements Schedule I from RMB into US$ as of and for the year ended December 31, 2019 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB6.9618, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2019 No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2019, or at any other rate. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation The accompanying consolidated financial statements of the Parent Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company has been historically operating with negative working capital. The aggregated amount of cash and cash equivalents, accounts receivable, short-term investment, and prepaid expenses and other current assets, was less than the aggregated amount of liabilities from payroll and welfare payables, amounts due to related parties, refund liabilities, tax payables, accrued expenses and other current liabilities, and current portion of lease liabilities by RMB 148.4 million as of December 31, 2019. Although the Company had net income of RMB 611.8 million and RMB 527.2 million for the years ended December 31, 2018 and 2019, respectively, and the net cash inflows from operating activities was RMB 26.3 million for the year ended December 31, 2019. As of December 31, 2019, the Company had shareholders’ deficit of RMB741.9 million. As of December 31, 2019, the Company had cash and cash equivalents of RMB 122.1 million. The Company regularly monitors its current and expected liquidity requirements to ensure that it maintains sufficient cash balances to meet its liquidity requirements in the short and long term. 30 |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial information of the Parent Company, its wholly owned subsidiaries and its consolidated VIEs. All intercompany balances and transactions have been eliminated upon consolidation. Variable interest entity The VIE Arrangement with Shanghai Caiyin In December 2015, Niwodai Internet entered into an agreement with Shanghai Caiyin through which Shanghai Caiyin would provide guarantee services for the loans facilitated by Niwodai Internet. Shanghai Caiyin would charge the borrowers a service fee at certain percentage of facilitated loan amount (“charge rate”) and would repay the loan and respective interests to investors within certain days upon borrowers’ default. The charge rate of the guarantee services was determined by Niwodai Internet who had the right to adjust it at any time at its discretion based on the actual performance of the loans facilitated. Niwodai Internet also had the right to collect from the excess of the guarantee services Shanghai Caiyin charges over the payment for default loans after deducting a reasonable cost incurred by Shanghai Caiyin. Furthermore, Niwodai Internet reserved the right to terminate the agreement at any time and engage other parties to perform the guarantee services. Upon termination, Niwodai Internet should assist Shanghai Caiyin to continue to perform guarantee services for existing loans. Shanghai Caiyin did not have business other than guarantee services during the periods presented. Through the aforementioned agreement Niwodai Internet obtained the power to direct the activities that most significantly affects the economic performance of Shanghai Caiyin and would be able to receive the economic benefits of Shanghai Caiyin that could be significant to Shanghai Caiyin. Therefore, Niwodai Internet was considered the primary beneficiary of Shanghai Caiyin and consolidated Shanghai Caiyin since its incorporation. In September 2019, as part of the business transformation of the Company, Niwodai Internet and Shanghai Caiyin entered into an amendment agreement. Pursuant to this amendment agreement, Niwodai Internet no longer had the rights to adjust the charge rate of guarantee services for Shanghai Caiyin, to collect the residual economic benefits from the guarantee services provided by Shanghai Caiyin, or to terminate the guarantee service agreement at any time. As a result of such revision, Niwodai Internet lost power to direct the activities that most significantly affects the economic performance of Shanghai Caiyin and no economic benefits of Shanghai Caiyin would be received by Niwodai Internet. Therefore, starting from September 1, 2019, Niwodai Internet was no longer considered as the primary beneficiary of Shanghai Caiyin and Shanghai Caiyin was deconsolidated by the Company. On September 16, 2019, Shanghai Caiyin was disposed to a third party company, Shenzhen Rongxinbao Non-financial Guarantee Co., Ltd. (“Shenzhen Rongxinbao”) (See Note 7). The VIE Arrangement with Shanghai Kunjia, the WFOE As PRC laws and regulations prohibit and restrict foreign ownership of internet value added businesses, the Parent Company operates its business, primarily through the VIEs. In June 2018, the Parent Company, through its wholly owned foreign invested subsidiary, Shanghai Kunjia or WFOE, entered into a series of contractual arrangements (“VIE agreements”) with Jiayin Finance and its respective shareholders that enable the Parent Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE and its subsidiary, and (2) receive the economic benefits of the VIE and its subsidiary that could be significant to the VIE and its subsidiary. Despite the lack of technical majority ownership, there exists a parent subsidiary relationship between Shanghai Kunjia and the VIE and its subsidiary through the aforementioned agreements. The following is a summary of the VIE agreements: The agreements that provide the Parent Company effective control over the VIE and its subsidiary include: Powers of Attorney: Pursuant to the Power of Attorney, each of the four shareholders have signed power of attorney with WFOE to irrevocably authorize the board of directors / Executive Directors of WFOE and their successors to act as his or her attorney-in-fact Exclusive Purchase Agreement: Pursuant to the Exclusive Purchase Agreement among WFOE, Jiayin Finance and the four shareholders of Jiayin Finance, the four shareholders and Jiayin Finance shall irrevocably grant WFOE, to purchase or appoint one or more persons from WFOE at any time to purchase all or part of the shares which is not subject to legal restriction or assets held by the four shareholders or Jiayin Finance. Except for WFOE and the designated person, no third party shall have the right to purchase shares and assets or other shares and assets related to the four shareholders. The consideration of the purchase should be RMB 1 or the lowest price permitted by the PRC laws. The effective time period of this agreement is ten years, and will be automatically extended to further years. The agreements that transfer economic benefits to the Parent Company include: Exclusive Consultation and Service Agreement: Pursuant to the Exclusive Consultation and Service Agreement between WFOE and Jiayin Finance, WFOE has the exclusive right to provide Jiayin Finance with consulting and other services. Without WFOE’s prior written consent, Jiayin Finance may not accept any services subject to this agreement from any third party. WFOE has the right to determine the service fee to be charged to Jiayin Finance under this agreement by considering, among other things, the complexity of the services, the actual cost that may be incurred for providing such services, as well as the value and comparable price on the market of the service provided. WFOE will have the exclusive ownership of all intellectual property rights created as a result of the performance of this agreement. Unless WFOE terminates this agreement in advance or otherwise provided by law, this agreement will remain effective for ten years and shall automatically extend the term of this agreement prior to its expiration. Jiayin Finance may not terminate this agreement unilaterally. Equity Pledge Agreement: Pursuant to the Equity Pledge Agreement among WFOE, Jiayin Finance and the four shareholders, in order to ensure that Jiayin Finance and its shareholders will fulfill the obligations under the power of attorney, the exclusive consultation and service agreement, and the exclusive purchase agreement (collectively “the Main Agreement”), the four shareholders have pledged 100% equity interest in Jiayin Finance to WFOE. According to the Main Agreement, the pledgee has the right to charge the service fee to Jiayin Finance. Those shareholders and WFOE also agree that without a prior written consent of the pledgee, they shall not transfer the shares or set up any pledge or other form of guarantee which may affect the rights and interests of the pledgee. These contractual arrangements allow the Parent Company, through its wholly owned subsidiary WFOE, to effectively control the VIEs, and to derive substantially all of the economic benefits from them. Accordingly, the Parent Company has consolidated the financial results of the VIEs. The Parent Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Parent Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the Company’s operating licenses; • levy fines on the Company; • confiscate any of the Company ’s income that they deem to be obtained through illegal operations; • shut down the Company’s services; • discontinue or restrict the Company’s operations in China; • impose conditions or requirements with which the Company may not be able to comply; • require the Company to change corporate structure and contractual arrangements; • restrict or prohibit the use of the proceeds from overseas offerings to finance the Company’s PRC consolidated VIEs’ business and operations; and • take other regulatory or enforcement actions that could be harmful to the Company’s business. The following condensed financial statement balances and amounts of the Parent Company’s VIEs, were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the Parent Company, its subsidiaries and its VIEs. As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 41,441 54,602 Restricted cash 41,500 — Amounts due from related parties — 1,651 Accounts receivable, net 336,849 110,219 Contract assets, net 203,080 — Assets from the investor assurance program, net 5,525 — Prepaid expenses and other current assets 88,234 66,722 Deferred tax assets 56,027 54,973 Property and equipment, net 29,011 38,303 Right-of-use — 36,534 Other long-term assets 212 — TOTAL ASSETS 801,879 363,004 Payroll and welfare payables 110,562 29,386 Amounts due to related parties 84,509 722 Liabilities from the investor assurance program 1,547,072 — Refund liabilities 84,498 180,104 Other guarantee liabilities 4,060 — Tax payables 422,177 164,444 Accrued expenses and other current liabilities 201,007 121,319 Other payable related to the disposal of Shanghai Caiyin — 839,830 Lease liabilities — 34,620 TOTAL LIABILITIES 2,453,885 1,370,425 Year ended December 31, 2017 2018 2019 RMB RMB RMB Net revenue 2,250,850 2,881,940 2,151,165 Operating income 686,661 685,206 583,741 Net income 539,545 611,758 571,227 Net cash provided by (used in) operating activities 104,752 (228,368 ) 19,465 Net cash provided by (used in) investing activities 61,215 (16,423 ) (35,505 ) Net cash provided by (used in) financing activities 13,876 (433,600 ) (12,299 ) The VIEs contributed 100% of the Company’s consolidated revenue for years ended December 31, 2017, 2018 and 96% for the year ended December 31, 2019. As of December 31, 2018 and 2019, the VIEs accounted for an aggregate of 100% and 52% of the consolidated total assets, and 100% and 95% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Parent Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs were ever to need financial support, the Company may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Company believes that there are no assets held in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and the PRC statutory reserves. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Parent Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Parent Company in the form of loans and advances or cash dividends. See Note 15 for disclosure of restricted net assets. |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Changes in estimates are recorded in the period they are identified. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company’s financial statements include allowance for uncollectible receivables and contract assets, provision for assets and liabilities from the investor assurance program, valuation allowances for deferred tax assets, valuation of share-based awards, measurement of assets and liabilities from the investor assurance program, fair value measurement and impairment of investment, discount rate used to measure lease liabilities, and allocation of considerations under revenue arrangements with various performance obligations. |
Fair value | (d) Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, amounts due from/to related parties, accounts receivable, contract assets, assets from the investor assurance program, prepaid expenses and other assets, and other liabilities are recorded at cost which approximate their fair value mainly due to the short-term nature of these instruments. The Company does not have any assets or liabilities that are recorded at fair value subsequent to initial recognition on a recurring basis other than the short-term investment in convertible debt accounted for as available-for-sale debt security, which is classified as a level 2 fair value measurement. As of December 31, 2019, the carrying amount of the short-term investment is approximate to its fair value. The Company does not have any assets or liabilities measured at fair value on a non-recurring basis during the periods presented. |
Certain risks and concentrations | (e) Certain risks and concentrations As of December 31, 2018, substantially all of the Company’s cash and cash equivalents as well as restricted cash were held in major financial institutions located in the PRC. As of December 31, 2019, 64% of the Company’s cash and cash equivalents were held in major financial institutions located in the PRC, and the rest 36% of Company’s cash were held in oversea major financial institutions which management considers to be of high credit quality. No customer represented greater than 10% or more of the total net revenues or receivables for the year s . |
Foreign currency risk | (f) Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the Peoples Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Company’s cash and cash equivalents denominated in RMB amounted to RMB 41,441 and RMB 78,296 |
Foreign currency translation | (g) Foreign currency translation The functional currency of Jiayin Group Inc. is in US dollars (“US$”). The functional currency of the Company’s subsidiaries and VIEs in the PRC is Renminbi (‘‘RMB’’). The functional currency of subsidiaries outside of PRC is typically their local currency. The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters. The Company also uses RMB as its reporting currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the statements of comprehensive income. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the statements of comprehensive income. |
Convenience translation | (h) Convenience translation The Company’s financial statements are stated in RMB. Translations of balances in the consolidated balance sheets, and the related consolidated statements of comprehensive income, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended December 31, 2019 are included solely for the convenience of the readers and have been made at the rate of US$1.00=RMB6.9618, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2019. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate or at any other rate. |
Cash and cash equivalents | (i) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. |
Investor assurance program | (j) Investor Assurance Program Investor assurance program managed by Shanghai Caiyin Historically for all the loans facilitated prior to April 2018, the Company had maintained an investor assurance program for the benefits of investors who invested on unsecured loans through its marketplace, through its consolidated VIE, Shanghai Caiyin until Shanghai Caiyin was disposed in September 2019 (see Note 2(b)). Under the investor assurance program, the Company set aside the service fees charged by Shanghai Caiyin into designated restricted cash accounts (“investor assurance fund”) to be used to cover the principal and interest of defaulted loans on a portfolio basis, payable on a first-loss basis up to the balance of the investor assurance program. The Company repaid the aggregate amounts of principal and respective interest, which were due based on the repayment schedule, to investors typically within a few days upon borrowers’ default. In accordance with the terms of the investor assurance program, an investor was entitled to compensation for losses resulting from defaulted loans within 15 calendar days of the due date. Default payments to investors could only be made from the investor assurance program when there were sufficient funds available. The Company’s obligation under the investor assurance program to make payments was limited to the amount of the restricted cash at any point in time and the Company was obliged to compensate investors once the restricted cash balance was replenished again from service fees generated from future borrowers. Once the investor was paid for a borrower’s default, any future amount recovered would be deposited into the investor assurance program. The Company had been regularly reviewing the actual net accumulated loss rate of each loan product facilitated and relevant economic factors to ensure the estimations are kept up-to-date. At the loan inception, the Company recorded liability from investor assurance program in accordance with ASC Topic 460-10, non-contingent Subsequently, the liability from the investor assurance program was measured in a combination of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 was determined on a loan by loan basis and it was reduced when the Company was released from the underlying risk, meaning when the loan was repaid by the borrower or when the lender was compensated in the event of a default. This component was a stand ready obligation which was not subject to the probable threshold used to record a contingent obligation. When the Company was released from the stand-ready liability upon expiration of the underlying loan, the Company records a corresponding amount as net revenue in the consolidated statement of comprehensive income. The other component was a contingent liability determined based on probable loss considering the actual historical performance and current condition, representing the future payouts under the investor assurance program in excess of the stand-ready liability and was measured using the guidance in ASC Topic 450, Contingencies. The ASC Topic 450 contingent component was determined on a collective basis and loans with similar risk characteristics were pooled into cohorts for purposes of measuring incurred losses. The ASC Topic 450 contingent component was recognized as part of operating expenses in the consolidated statement of comprehensive income as “provision for assets and liabilities from the investor assurance program”. At all times the recognized liability (including the stand-ready liability and contingent liability) was at least equal to the probable estimated losses of the guarantee portfolio. As the Company’s stand-ready liability was not traded in an active market with readily observable prices, the Company used significant unobservable inputs to measure the fair value of stand-ready liabilities upon initial recognition. The Company estimated the fair value of the stand-ready liability by estimating net expected accumulated loss rate for each product type, based on historical net accumulated loss rate for each product type and incorporating a markup margin. A discounted cash flow methodology was used to estimate the fair value of the guarantee liabilities. The significant unobservable inputs used in the fair value measurement of guarantee liabilities include the expected net accumulative loss rates applied in the valuation models. The weighted average expected net accumulative loss rates applied for year 2017 and 2018 are 13.4% and 11.2% on new loans facilitated in the respective years. These inputs in isolation could cause significant increases or decreases in fair value. The increase in the net expected cumulative loss rates could significantly increase the fair value of stand-ready liability of the loan newly facilitated upon initial recognition; conversely a decrease in the net expected cumulative loss rates could significantly decrease the fair value of stand-ready liability of the loan newly facilitated upon initial recognition. When a discounted cash flow model was used to determine fair value, the significant input used in the valuation model was the discount rate applied to present value the projected cash flows which is based on market rates. The Company also estimated the markup margin by looking at several comparable business models. The expected net accumulated loss rate of underlying loans was determined based on the average historical net accumulated loss rate of the Company’s products. At the loan inception, the Company recorded the assets from the investor assurance program which corresponded to the stand-ready liability recognized at fair value, and represented service fees that were collectible from the underlying loans that were expected to be used for the estimated payout of the corresponding guarantee liabilities. At each reporting date, the Company estimates the future cash flows and assesses whether there was any indicator of impairment. If the carrying amounts of the assets from the investor assurance program exceeded the expected cash to be received, an impairment loss was recorded for the asset not recoverable and was reported as “provision for assets and liabilities from the investor assurance program” in the statements of comprehensive income. The investor assurance program also covered the outstanding loans acquired from Niwodai Finance in the 2015 Acquisition, of which the associated guarantee liabilities were separately recorded as “other guarantee liabilities” in the Company’s consolidated balance sheet (see Note 1). Service fees collected from all the loans, including loans newly facilitated by the Company and loans related to other guarantee liabilities acquired in the 2015 Acquisition, were utilized to pay out on both liabilities from the investor assurance program and other guarantee liabilities. However, service fees collected from all the loans are principally related to new loans facilitated by the Company. The Company has facilitated a total of RMB 8,632 million unsecured loans that were subject to the investor assurance program managed by the consolidated VIE, representing 36% of total loan volume facilitated in the 2018. Since As of December 31, 2018 Current Other Offline and Loans Total outstanding loan balances 1,224,961 169,072 3,554,398 — Maximum potential undiscounted future payments 1,265,267 180,845 3,847,072 4,060 Remaining weighted average contractual term 2.3 8.8 10.5 — Net expected accumulative loss rate on outstanding loans 11.3 % 16.0 % 19.0 % — The Company no longer provides any form of guarantee for new loans facilitated through the marketplace since April 28, 2018 and therefore does not record liabilities from the investor assurance program associated with those new loans. Further, upon the disposal of Shanghai Caiyin in September 2019, the Company is no longer obligated for the guarantee liabilities arising from the investor assurance program maintained by Shanghai Caiyin for loans facilitated prior to April 28, 2018. See note 2(b). Investor assurance program managed by independent third parties Starting from April 28, 2018, all newly facilitated unsecured loans are subject to an investor assurance program managed by Shenzhen Rongxinbao, an unrelated third party guarantee company. All the borrowers obtaining new loans are required to enter into service agreement with Shenzhen Rongxinbao, according to which Shenzhen Rongxinbao will compensate investors for losses on principal and interest from borrower’s default. A portion of the service fees that the Company is entitled to is collected by Shenzhen Rongxinbao on behalf of the Company from the borrowers. The Company has facilitated RMB 11,082 million and RMB 15,661 million unsecured loans subject to the investor assurance program managed by Shenzhen Rongxinbao, representing 47% and 86% of total loan volume facilitated in 2018 and 2019, respectively. Starting on July 3, 2018, a part of unsecured loans newly facilitated by the Company are subject to an investor assurance program managed by China United SME Guarantee Corporation (“Sino Guarantee”), an unrelated third party guarantee company. Borrowers of those loans are required to enter into a separate agreement with Sino Guarantee and to contribute to an investor protection fund managed by Sino Guarantee. Investments made by investors on those loans are protected by the investor protection fund to the extent of the existing balance of the fund. The Company has facilitated RMB 1,233 million and RMB 2,544 million unsecured loans that is managed by Sino Guarantee, representing 5% and 14% of total loan volume facilitated in 2018 and 2019, respectively. The Company does not assume any liabilities if the balance of the fund is not sufficient to fully compensate all investors. Starting from January 2019, Shanghai Caiyin engaged Shenzhen Rongxinbao to help operate the investor assurance program for loans facilitated prior to April 2018 and funded the program by service fees that Rongxingbao collected on behalf of the Company. Further, upon disposal of Shanghai Caiyin in September 2019, the Company is no longer obligated for the guarantee liabilities aforementioned arising from the investor assurance program maintained by Shanghai Caiyin. Investor assurance program partnering with Class B Investors In July 2018, the Company launched an investor assurance programs by partnering with selective unrelated third party individual investors (“Class B investors”), who are willing to take higher risks in exchange for higher returns from managing the investor assurance for other investors who invest in the same loan product but with lower level of risk tolerance (“Class A investors”). The minimum investment amount for such Class B investment program is RMB 1 million. The investment of Class B investors are matched with a number of loans on the Company’s marketplace and each of such loans are matched with Class A and Class B investors at the same time. The borrower was required to pay certain non-refundable During the year of 2018, the Company has facilitated RMB2,727 million unsecured loans that were subject to the investor assurance program partnering with Class B investors, representing 12% of total loan volume facilitated in 2018. Guarantee arrangements for institutional funding partners For the loans facilitated between borrowers and institutional funding partners, guarantee services are provided by third party guarantee companies who charge guarantee service fees directly from borrowers. Upon borrowers’ default, the third-party guarantee companies compensate institutional funding partners for unpaid principal and interest. In certain contracts, the Company provides commitment letter of balance complements to the institutional funding partners in the event that the guarantee companies are unable to fully reimburse the institutional funding partners. In some other contracts, the guarantee companies require a third party company acts as a counter guarantor and require the Company to provide a commitment letter of balance complements to compensate third party guarantee companies in the event that the counter guarantor are unable to fully reimburse the guarantee companies. To manage the risk exposure, the Company in turn obtains a back-to-back guarantee from another third party company. The fair value of guarantee liabilities of the Company as a secondary guarantor was inconsequential and no compensation was made by the Company during the year of 2019. As of December 31, 2019, the outstanding loan balance for which the Company provides secondary guarantee was RMB487,216. |
Restricted cash | (k) Restricted cash Restricted cash primarily represents funds managed by the Company through designated deposit accounts for the investor assurance program. Services fees collected from borrowers are utilized to net payout on both liabilities from the investor assurance program and other guarantee liabilities. There is no other use of these funds except for making payments to investors for default loans that are subject to the investor assurance program. The balance of restricted cash as of December 31, 2018 and December 31, 2019 is comprised of the following: As of December 31, 2018 2019 RMB RMB Restricted cash related to: Investor assurance program 41,000 — Others 500 — Total restricted cash 41,500 — The movement of restricted cash related to guarantee liabilities, which covers both liabilities from the investor assurance program and other guarantee liabilities for the years ended December 31, 2018 and 2019 is presented as follows: Year ended December 31, 2018 2019 RMB RMB Beginning balance 154,742 41,000 Service fees collected by Shanghai Caiyin and deposited directly into restricted cash (1) 2,284,291 193,632 Transfer from cash (2) 1,079,932 609,951 Gross payouts related to guarantee liabilities (4,099,353 ) (1,002,671 ) Gross recoveries related to guarantee liabilities 621,388 160,970 Transfer out due to disposal of Shanghai Caiyin — (2,882 ) Ending balance 41,000 — (1) Service fees collected from borrowers represents service fees collected by Shanghai Caiyin in the year presented that are directly deposited to the restricted cash accounts. (2) Transfer from cash represents cash transferred by the Company into the designated deposit account when the balance of the account is not sufficient to compensate losses for all investors. |
Investment in debt securities | (l) Investment in debt securities The Company invested in convertible notes issued by a private company in 2019 and accounted for the investment as available-for-sale debt security at fair value with changes in fair value deferred in other comprehensive income. The Company reviews its investments for other-than-temporary impairment and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Company’s intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. If the investment’s fair value is less than the cost of an investment and the Company determines the impairment to be other-than-temporary, the Company recognizes an impairment loss based on the fair value in earnings. The Company has not recorded any other-than-temporary impairment during the periods presented. |
Property and equipment | (m) Property and equipment Property and equipment is generally stated at historical cost and depreciated on a straight-line basis over the estimated useful lives of the assets. Depreciation and amortization expense of long-lived assets are included in either origination and servicing expenses, selling and marketing expenses, general and administrative expenses, or research and development expenses as appropriate. Property and equipment consist of the following and depreciation is calculated on a straight-line basis over the following estimated useful lives: Category Estimated useful life Electronic equipment 3 years Office equipment & Furniture 5 years Motor vehicles 4 years Leasehold improvement Shorter of the lease term or expected useful life Software 10 years |
Investment in Affiliates | (n) Investment in Affiliates Affiliated companies are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investment in affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliated companies is recognized in the statements of comprehensive income and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliated companies are eliminated to the extent of the Company’s interest in the affiliated companies; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an affiliated company equals or exceeds its interest in the affiliated company, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliated company. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. The Company has not recorded any impairment losses in any of the periods reported. The Company acquired 24.9% ordinary shares of SG Fintech Holding Joint Stock Company in May 2019 and equity method accounting was applied. SG Fintech Holding Joint Stock Company is a Vietnam enterprise targeting to explore micro-finance loan products and services to serve the segments that are currently underserved in the market. For the year ended December 31, 2019, the Company recorded investment income of RMB 378 on the investment. |
Valued-added taxes ("VAT") | (o) Valued-added taxes (“VAT”) The Company is subject to VAT at the rate of 6% given that they are classified as a general tax payer. VAT is reported as a deduction to revenue when incurred and amounted to RMB 273,785, RMB 298,720 and RMB 168,763 for the years ended December 31, 2017, 2018 and 2019, respectively. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. |
Share-based compensation | (p) Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument issued and recognized as compensation expense on a graded vesting basis, over the requisite service period, with a corresponding impact reflected in additional paid-in The expected term represents the period that share-based awards are expected to be outstanding, giving consideration to the contractual terms of the share-based awards, vesting schedules and expectations of future employee exercise behavior. Volatility is estimated based on annualized standard deviation of daily stock price return of comparable companies for the period before valuation date and with similar span as the expected expiration term. The Company adopted ASU 2016-09 Modifications of the terms or conditions of the awards are treated as an exchange of the original awards for new awards. Incremental compensation cost is measured and recognized as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before the terms are modified. When the Company cancels unvested options, the remaining unrecognized expenses are recognized immediately on the cancellation date. |
Revenue Recognition | (q) Revenue Recognition The Company provides services mainly as an online marketplace connecting individual investors or institutional funding partner (collectively as “Investors”) with borrowers. The Company provides three services for loans facilitated on its platform: loan facilitation service, post-origination service (e.g. cash processing and collection services) and guarantee service. However, since the Company ceased to provide investor assurance program managed by itself, the Company no longer provides any guarantee services, and offers only loan facilitation services and post-origination servicers on loans facilitated on its marketplace. The Company’s platform enables individual investors to directly invest in loans that can be selected, at the individual investors’ discretion, from hundreds of new lending opportunities to pre-approved pre-approved Historically, the Company had typically charged a portion of service fees at loan origination with the remaining service fees collected on a monthly basis, which were payable by the borrowers for all services provided. The upfront fees collected were RMB 2.9 billion, RMB 0.5 billion, and nil during the years ended December 31, 2017, 2018 and 2019, respectively. The upfront fees were due when the underlying loan was successfully facilitated, and monthly fees were due on the same day when the monthly repayment of principal and interest was due. The Company stopped charging upfront service fees to comply with the new regulatory requirements since February 2018 for all loans facilitated through its online marketplace. The Company charges a substantial amount of service fees on the same day when the first and second monthly repayments of principal and interest are due. The Company also charges service fees to individual investors for using the automated investment programs which equal to a certain percentage of the actual return in excess of the expected rate of return from the investments, payable at the end of the investment period. No application fee is charged to borrowers or individual investors. In order to be more competitive by providing a certain level of assurance to the investors, the Company maintained an investor assurance program for the benefit of the investors using its marketplace. In the event of borrowers’ default, marketplace investors are entitled to receive unpaid interest and principal under the terms of the investor assurance program. Prior to April 28, 2018, the Company, through its consolidated VIE entity at that time, Shanghai Caiyin, was obligated to make the payment to the investors to the extent that the funds under the investor assurance program were available. In the event of insufficient funds, the Company was required to make payments to investors as soon as the funding was replenished from future collections of service fees. Given that the Company effectively took on all of the credit risk of the borrowers and was compensated by the service fee charged, the Company deemed the guarantee as a service and recognized a stand-ready obligation for its guarantee exposure in accordance with ASC Topic 460, Guarantees. However, the Company ceased to provide the investor assurance program managed by itself, and therefore no longer provides guarantee service on loans newly facilitated subsequent to April 28, 2018 (see Note 2 (j) Investor Assurance Program). Starting from July 2019, the Company provides service through its facilitation of loan transactions between borrowers and institutional funding partners. When the investors are institutional funding partners, the Company’s service mainly consist of: 1) Performing credit assessment on the borrowers and matching the institutional funding partners with potential qualified borrowers and facilitating the execution of loan agreements between the parties; 2) Providing information support for institutional funding partners and borrowers over the loan term. The Company has adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC 606 on January 1, 2018 using the full retrospective method which requires the Company to present its financial statements for all periods as if Topic 606 had been applied to all prior periods. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps: • Step 1: Identify the contract (s) with a customer • Step 2: Identify the performance obligations in the contract • Step 3: Determine the transaction price • Step 4: Allocate the transaction price to the performance obligations in the contract • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company determines that both the The Company determines the total transaction price to be the service fees chargeable according to the contracts, net of value-added tax. Prior to April 28, 2018, the Company’s transaction price included variable consideration in the form of prepayment risk of the borrowers. The Company reflected in the transaction price the borrower’s prepayment risk and estimated variable consideration for these contracts using the expected value approach on the basis of historical information and current trends of the repayment percentage of the borrowers. The transaction price was allocated amongst the guarantee service, if any, and two performance obligations. The considerations are allocated to the loan facilitation services and post-origination services using their relative standalone selling prices consistent with the guidance in ASC 606. The Company does not have observable standalone selling price information for the loan facilitation services or post-origination services because it does not provide loan facilitation services or post-origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market reasonably available to the Company. As a result, the estimation of standalone selling price involves significant judgment. The Company uses expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post-origination services as the basis of revenue allocation. In estimating its standalone selling price for the loan facilitation services and post-origination services, the Company considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Company’s services, and other market factors. For each type of service, the Company recognizes revenue when (or as) the entity satisfies the service/ performance obligation by transferring the promised service (that is, an asset) to customers based on the underlying contract terms excluding consideration of impairment of contract assets or accounts receivable. Revenues from loan facilitation services are recognized at the time a loan is originated between the Investors and the borrower and the principal loan balance is transferred to the borrower, at which time the facilitation service is considered completed. Revenues from post-origination services are recognized evenly over the term of the underlying loans as the post-origination services are a series of distinct services that are substantially the same and that have the same pattern of transfer to the I For upfront fees that are partially refundable to the borrowers, the Company estimated the refund based on historical prepayment rate and recorded a corresponding refund liabilities upon receiving such fees. Other revenue Under ASC 606, service fees derived from individual investors using the automated investment programs are initially estimated based on historical experience of returns on similar investment products and current trends. The service fees are recognized on a straight-line basis over the term of the investment period. The service fees related to the automated investment programs are due at the end of the investment period. The investment period refers to the period of time when the investments are matched with loans and are generating returns for the individual investors. The Company records service fees only when it becomes probable that a significant reversal in the amount of cumulative revenue will not occur. The revenue of service fee recognized under ASC 606 for the years ended December 31, 2017, 2018 and 2019 was RMB 156,563, RMB 242,513 and RMB 174,191, respectively. The weighted average investment period was 8.7 months, 8.0 months and 8.3 months for the years ended December 31, 2017, 2018 and 2019, respectively. Other revenue also includes revenue from guarantee services recognized at the expiry of the guarantee term, penalty fees for loan prepayment and late payment, and service fee for transferring loans between investors on the Company’s platform. Under ASC 606, penalty fees are contingency-based variable considerations and constrained by the occurrence of delinquency or prepayment. They are recognized when the uncertainty associated with the variability is resolved, that is, when the underlying event occurs and the fees are collected. The service fees for transferring loans between individual investors are recognized when the transfer is completed and service fees are collected from the individual investors. The following table illustrates the disaggregation of revenue by product and services the Company offered in 2017, 2018 and 2019, respectively: For the year ended December 31, 2017 Loan facilitation Post-origination Other Total RMB RMB RMB RMB Current loan products 678,003 21,067 15,330 714,400 Other online standard loan products 637,860 60,070 80,225 778,155 Offline and non-standard loan products 540,721 44,301 722 585,744 Other services — — 172,551 172,551 Total 1,856,584 125,438 268,828 2,250,850 For the year ended December 31, 2018 Loan facilitation Post-origination Other Total RMB RMB RMB RMB Current loan products 2,245,941 174,370 27,021 2,447,332 Other online standard loan products 51 26,938 89,582 116,571 Offline and non-standard loan products 916 40,660 1,918 43,494 Other services — — 274,543 274,543 Total 2,246,908 241,968 393,064 2,881,940 For the year ended December 31, 2019 Loan facilitation Post-origination Other Total RMB RMB RMB RMB Current loan products 1,742,708 230,024 1,648 1,974,380 Other online standard loan products 4,357 5,854 6 10,217 Offline and non-standard loan products — 31,169 1,177 32,346 Other services — — 213,233 213,233 Total 1,747,065 267,047 216,064 2,230,176 Incentives to individual investors The Company provides incentives to individual investors using the automated investment program in a form that either reduces the amount of investment required to purchase financial products or entitles them to receive higher interest rates in the products they purchase and pays the incentive to the investors upon maturity of the investment program. If the investors early terminate the program and withdraw the investment, no incentive will be paid. Such incentives are recorded as a reduction of revenue over the investment period and the incentive accrued not paid are recorded as refund liabilities based on the management’s best estimate. Year ended December 31, 2017 2018 2019 RMB RMB RMB Incentives paid to: New investors 69,150 89,776 92,696 Returning investors 100,000 206,380 353,297 Total incentives paid to investors 169,150 296,156 445,993 Accounts receivable and contract assets, net Contract assets represent the Company’s right to consideration in exchange for services that the Company has transferred to the customer before payment is due. Prior to February 2018, the Company’s right to consideration for the monthly fees of facilitation service is conditional on the borrowers’ actual payment, as the borrower had the right to early terminate the loan contract prior to the loan maturity and are not obligated to pay the remaining monthly fees. As such, the Company records a corresponding contract asset for the monthly service fees allocated to loan facilitation service and post-origination service that have already been delivered in relation to loans facilitated on the Company’s platform when recognizing revenue from loan facilitation service and post-origination service. No accounts receivable is recorded since the Company does not have unconditional right to the consideration if the borrowers choose to early terminate and are not obligated to pay the remaining service fees in relation to the loans facilitated prior to February 2018. In addition, the Company’s right to the consideration for the service fee derived from automated investment programs is conditional on the actual return of the investment; therefore, a corresponding contract asset is recorded when the revenue of service fee is recognized. Starting from February 2018, according to the contractual agreement with borrower, upon inception of the loan, the Company has the unconditional right to the first six months’ service fee for the loans facilitated on the Company’s platform at loan inception regardless of the subsequent timing of the borrower’s repayment of the loan. Therefore, the Company recorded accounts receivable up to total fees collectible in the first six months and contract assets for fees collectible in the subsequent months when recognizing revenue from loan facilitation service subsequent to February 2018. For loans facilitated prior to April 28, 2018, the Company also collects remaining fees on a monthly basis; however there has been no such monthly service fees since April 28, 2018. Starting from April 28, 2018, the Company charged all of the service fees in two equal installments that are due on the same days when the first and second monthly repayments of principal and interest are due. The Company also has unconditional right to the first two months’ service fees upon loan origination. Similarly, the Company collects service fee for the facilitation loan service between borrowers and institutional funding partners since July 2019. The service fee are charged in the subsequent month of facilitation service completed. The Company has unconditional right to the service fees upon loan origination . As such, accounts receivable were recorded by the Company when recognizing revenue from the loan facilitation service. Meanwhile, the portion of service fees that are collected and allocated to the post-origination service yet to be provided were recorded as deferred revenue on the consolidated balance sheet. No contract assets were recognized on loans facilitated subsequent to April 28, 2018. Accounts receivable and contract assets are stated at the historical carrying amount net of write-offs and allowance for collectability in accordance with ASC Topic 310. The Company established an allowance for uncollectible contract assets based on estimates, which incorporate historical experience and other factors surrounding the credit risk of specific customers which is essentially the net expected accumulative loss rates used in determining the fair value of guarantee liabilities under each product type. The Company estimated the allowance for uncollectible receivables based on expected net accumulated loss rates for terms during which losses of such service fees are expected to occur, which are consistent with the terms during which the Company expects to collect service fees. The profile of the borrowers are homogeneous for each product type and as such, the Company applies a portfolio approach in accounting for credit risk. For individual customers where there is an observable indicator of impairment such as fraud, a specific allowance is provided. The Company evaluates and adjusts its allowance for uncollectible rec eivable s borrowers The Company’s accounts receivable as of December 31, 2018 are as follows: Accounts Receivable Allowance for Accounts receivable, RMB RMB RMB Current loan products 364,863 (28,014 ) 336,849 Other online standard loan products — — — Offline and non-standard — — — Other services — — — Total 364,863 (28,014 ) 336,849 The Company’s accounts receivable as of December 31, 2019 are as follows: Accounts Receivable Allowance for Accounts receivable, RMB RMB RMB Current loan products 196,148 (60,444 ) 135,704 Other online standard loan products 3,695 (235 ) 3,460 Offline and non-standard — — — Other services — — — Total 199,843 (60,679 ) 139,164 The aging of accounts receivable as of December 31, 2018 is presented as follows: Current loan Other online Offline and non-standard Other Services Total RMB RMB RMB RMB RMB 0-30 351,250 — — — 351,250 31-60 6,945 — — — 6,945 60-90 6,668 — — — 6,668 Total 364,863 — — — 364,863 The aging of accounts receivable as of December 31, 2019 is presented as follows: Current loan Other online Offline and non-standard Other Services Total RMB RMB RMB RMB RMB 0-30 187,575 3,690 — — 191,265 31-60 2,984 — — — 2,984 60-90 4,620 5 — — 4,625 Over 90 days 2 969 — — — 969 Total 196,148 3,695 — — 199,843 2 The accounts receivable of aging over 90 days comes from facilitation and post-origination service between institutional funding partners and borrowers. The movement of accounts receivable for the year ended December 31, 2018 is as follows: Opening Addition in the Collection in the Write off in the Ending balance RMB RMB RMB RMB RMB Current loan products — 1,517,277 (1,128,998 ) (23,416 ) 364,863 Other online standard loan products — 2 (2 ) — — Offline and non-standard — 18 (18 ) — — Other services — 4,252 (4,252 ) — — Total — 1,521,549 (1,133,270 ) (23,416 ) 364,863 The movement of accounts receivable for the year ended December 31, 2019 is as follows: Opening Addition in the Collection in the Write off in the Ending balance RMB RMB RMB RMB RMB Current loan products 364,863 2,398,006 (2,454,752 ) (111,969 ) 196,148 Other online standard loan products — 5,498 (1,801 ) (2 ) 3,695 Total 364,863 2,403,504 (2,456,553 ) (111,971 ) 199,843 The movement of allowance for uncollectible receivables for the year ended December 31, 2018 is as follows: Opening balance as of Current year net Write off in the current Ending balance as RMB RMB RMB RMB Current loan products — (51,430 ) 23,416 (28,014 ) Other online standard loan products — — — — Offline and non-standard — — — — Other services — — — — Total — (51,430 ) 23,416 (28,014 ) The movement of allowance for uncollectible receivables for the year ended December 31, 2019 is as follows: Opening balance as of Current year net Write off in the current Ending balance as RMB RMB RMB RMB Current loan products (28,014 ) (144,399 ) 111,969 (60,444 ) Other online standard loan products — (237 ) 2 (235 ) Total (28,014 ) (144,636 ) 111,971 (60,679 ) The movement of contract assets for the year ended December 31, 2018 is as follows: Opening Addition in Collection in Write off in the Ending RMB RMB RMB RMB RMB Current loan products 335,550 898,142 (1,001,265 ) (177,812 ) 54,615 Other online standard loan products 162,942 26,987 (107,384 ) (68,443 ) 14,102 Offline and non-standard 376,304 41,548 (244,329 ) (10,497 ) 163,026 Other services 6,500 270,291 (265,653 ) — 11,138 Total 881,296 1,236,968 (1,618,631 ) (256,752 ) 242,881 The movement of contract assets for the year ended December 31, 2019 is as follows: Opening Addition in Collection in Write off in Transfer out Reclass to 3 Ending RMB RMB RMB RMB RMB RMB RMB Current loan products 54,615 41,747 (41,134 ) (46,306 ) (140,988 ) (132,066 ) — Other online standard loan products 14,102 3,827 (10,398 ) (5,382 ) (6,492 ) (4,343 ) — Offline and non-standard loan products 163,026 21,704 (107,591 ) (35,674 ) (43,011 ) (1,546 ) — Other services 11,138 — (11,138 ) — — — — Total 242,881 67,278 (170,261 ) (87,362 ) (190,491 ) (137,955 ) — 3 The amount pertained to accrued but unpaid incentives to individual investors that were previously recorded as a contra account to contract assets. The obligation to provide incentives to the individual investors remains with the Company after disposal of Shanghai Caiyin. The movement of allowance for uncollectible contract assets for the year ended December 31, 2018 is as follows: Opening balance as of Current year net Current year write- Ending balance as of RMB RMB RMB RMB Current loan products (32,571 ) (179,153 ) 177,812 (33,912 ) Other online standard loan products (42,484 ) (28,957 ) 68,443 (2,998 ) Offline and non-standard (6,950 ) (6,438 ) 10,497 (2,891 ) Other services — — — — Total (82,005 ) (214,548 ) 256,752 (39,801 ) The movement of allowance for uncollectible contract assets for the year ended December 31, 2019 is as follows: Opening Current year Current year Transfer out Ending RMB RMB RMB RMB RMB Current loan products (33,912 ) (12,758 ) 46,306 364 — Other online standard loan products (2,998 ) (2,852 ) 5,382 468 — Offline and non-standard loan products (2,891 ) (71,995 ) 35,674 39,212 — Other services — Total (39,801 ) (87,605 ) 87,362 40,044 — The deferred revenue in relation to the post-origination service were nil, RMB 41,252 and RMB 55,689 as of December 31, 2017, 2018 and 2019, which is recorded in “accrued expenses and other current liabilities” on the consolidated balance sheet. Meanwhile the Company recognized RMB 41,252 post-origination revenues by reducing the balance of the deferred revenue in 2019. The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied pertaining to post-origination service are RMB 171,000, RMB 222,735 and RMB 182,026 as of December 31, 2017, 2018 and 2019 respectively, among which approximately 70%, 92% and 100% of the remaining performance obligations will be recognized by the Company over the following 12 months, respectively, with the remainder recognized thereafter. Revenue recognized for the years ended December 31, 2017, 2018 and 2019 from performance obligations satisfied (or partially satisfied) in prior periods pertaining to adjustments to variable consideration due to the change of estimated return on investment periods, change of estimated prepayment rate and referral fees was immaterial. The Company used practical expedient in applying full retrospective method on completed contracts in transiting to ASC 606. For completed contracts that have variable consideration, the Company used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods. The Company determines that the Investor and borrower acquisition cost paid based on the amount of investment or borrowing represents costs to obtain a contract qualifying for capitalization since these payments are directly related to sales achieved during a period. Such cost was not material during the years presented. |
Employee defined contribution plan | (r) Employee defined contribution plan Full time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company makes contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was RMB 82,053, RMB 51,611 and RMB 65,076 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Origination and servicing expense | (s) Origination and servicing expense Origination and servicing expenses primarily consist of variable expenses including costs related to credit assessment, user and system support, payment processing services and collection, associated with facilitating and servicing loans, salaries and benefits for the personnel who work on credit checking, data processing and analysis, loan origination, user and system support and loan collection. |
Sales and marketing expenses | (t) Sales and marketing expenses Sales and marketing expenses primarily consist of variable marketing and promotional expenses, including those related to borrower and investor acquisition and retention, and general brand and awareness building. Salaries and benefits expenses related to the Company’s sales and marketing personnel and other expenses related to the Company’s sales and marketing team are also included in the sales and marketing expenses. The Company’s Investor and borrower acquisition expenses include charges by third-party online channels for online marketing services such as search engine marketing and search engine optimization, and referral fees charged by other parties relating to borrower and I |
Government grant | (u) Government grant Government grants are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies are recorded as other income in the period the cash is received and when all the conditions for their receipt have been satisfied. The government grants received by the Company amount to RMB 12,471, RMB 22,465 and RMB 18,722 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Income taxes | (v) Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more like than not that a portion of or all of the deferred tax assets will not be realized. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2017, 2018 and 2019. |
Comprehensive income | (w) Comprehensive income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included net income and foreign currency translation adjustments. |
Income per share | (x) Income per share Basic income per share are computed by dividing net income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Diluted income per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Ordinary share equivalents of stock options are calculated using the treasury stock method. Ordinary share equivalents are excluded from the computation in income periods should their effects be anti-dilutive. |
Segment reporting | (y) Segment reporting The Company uses management approach to determine operation segment. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (‘‘CODM’’) for making decisions, allocation of resource and assessing performance. The Company’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Company. The Company operates and manages its business as a single segment. The Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Operating leases | (z) Operating leases In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company leases administrative office spaces under operating leases. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Company measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Company estimates its incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to its own. As of December 31, 2019, the Company’s operating leases had a weighted average remaining lease term of 1.2 years and a weighted average discount rate of 4.75%. The Company measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Company considers only payments that are fixed and determinable at the time of lease commencement. The Company begins recognizing operating lease expense when the lessor makes the underlying asset available to the Company. After considering the factors that create an economic incentive, the Company did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. Additionally, the Company elects not to recognize lease with lease term of 12 months or less at the commencement date in the consolidated balance sheets and records its operating lease expense in its consolidated statements of operations on a straight-line basis over the lease term. The Company has adopted ASU No. 2016-02, “Leases”, beginning January 1, 2019 and elected to utilize a modified retrospective approach which allowed the Company to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods presented. No cumulative effect adjustment to the opening balance of retained earnings were made. The Company also elected the package of practical expedients, which among other things, does not require reassessment of lease classification. Upon adoption of Topic 842, the Company recognized right-of-use assets and corresponding lease liabilities of RMB 46,841 and RMB 45,012, respectively, on the consolidated balance sheets. The difference between the right-of-use assets and lease liabilities was due to prepaid rent. The adoption of the new guidance did not have a material effect on the Company’s consolidated statements of comprehensive income and consolidated statements of cash flows. |
Recent accounting pronouncements | (aa) Recent accounting pronouncements Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which has subsequently been amended by ASU 2019-04, ASU 2019-05, ASU 2019-09, ASU 2019-10 and ASU 2020-03. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Company’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application of the pending content that links to this paragraph is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In November 2018, the FASB issued ASC No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which mitigate transition complexity by requiring that for nonpublic business entities the amendments in Update 2016-13 are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The adoption is not expected to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and valuation processes for Level 3 fair value measurements. The ASU adds new disclosure requirements for Level 3 measurements. The adoption is not expected to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of principal subsidiaries and VIEs | The Company operates in an evolving regulatory environment and has been adjusting its business model to stay in compliance with regulatory requirements during the years presented. The Company historically has focused on connecting individual borrowers with individual investors. Starting in 2019 the Company also began to cooperate with institutional funding partners. Its investor assurance program also evolved over time as part of the transformation of its business model. See Note 2(j). As of December 31, 2019 the Parent Company’s significant subsidiaries and its consolidated VIEs are as follows: Name Date of incorporation/ establishmentor acquisition Place of incorporation/ establishment Percentage of legal ownership Principal activities Wholly owned subsidiaries Jiayin Holdings Limited January 2018 BVI 100 % Investment Holding Geerong (HK) Limited (formerly known as “Jiayin (HK) Limited”) January 2018 Hong Kong 100 % Investment Holding Jiayin Southeast Asia Holdings Limited February 2018 BVI 100 % Investment Holding Shanghai Kunjia Technology Co., Ltd. June 2018 Shanghai 100 % Investment Holding Geerong Yunke Information Technology Co. , Ltd . July 2019 Shanghai 100 % Technology development and consumer finance services Geerong Yun (Shanghai) Enterprise Development Co., Ltd. September 2019 Shanghai 100 % Technology development and consumer finance services VIEs Shanghai Jiayin Finance Technology Co., Ltd. June 2015 Shanghai 100 % Technology service Shanghai Niwodai Internet Finance Information Services Co., Ltd. September 2015 Shanghai 100 % Technology development and consumer finance services |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of condensed financial statement balances and amounts of Company's VIEs | The following condensed financial statement balances and amounts of the Parent Company’s VIEs, were included in the accompanying consolidated financial statements after the elimination of intercompany balances and transactions among the Parent Company, its subsidiaries and its VIEs. As of December 31, 2018 2019 RMB RMB Cash and cash equivalents 41,441 54,602 Restricted cash 41,500 — Amounts due from related parties — 1,651 Accounts receivable, net 336,849 110,219 Contract assets, net 203,080 — Assets from the investor assurance program, net 5,525 — Prepaid expenses and other current assets 88,234 66,722 Deferred tax assets 56,027 54,973 Property and equipment, net 29,011 38,303 Right-of-use — 36,534 Other long-term assets 212 — TOTAL ASSETS 801,879 363,004 Payroll and welfare payables 110,562 29,386 Amounts due to related parties 84,509 722 Liabilities from the investor assurance program 1,547,072 — Refund liabilities 84,498 180,104 Other guarantee liabilities 4,060 — Tax payables 422,177 164,444 Accrued expenses and other current liabilities 201,007 121,319 Other payable related to the disposal of Shanghai Caiyin — 839,830 Lease liabilities — 34,620 TOTAL LIABILITIES 2,453,885 1,370,425 Year ended December 31, 2017 2018 2019 RMB RMB RMB Net revenue 2,250,850 2,881,940 2,151,165 Operating income 686,661 685,206 583,741 Net income 539,545 611,758 571,227 Net cash provided by (used in) operating activities 104,752 (228,368 ) 19,465 Net cash provided by (used in) investing activities 61,215 (16,423 ) (35,505 ) Net cash provided by (used in) financing activities 13,876 (433,600 ) (12,299 ) |
Summary of loans under investor assurance program | The table below pertains to information related to existing unsecured loans facilitated prior to April 28, 2018: As of December 31, 2018 Current Other Offline and Loans Total outstanding loan balances 1,224,961 169,072 3,554,398 — Maximum potential undiscounted future payments 1,265,267 180,845 3,847,072 4,060 Remaining weighted average contractual term 2.3 8.8 10.5 — Net expected accumulative loss rate on outstanding loans 11.3 % 16.0 % 19.0 % — |
Summary of restricted cash | The balance of restricted cash as of December 31, 2018 and December 31, 2019 is comprised of the following: As of December 31, 2018 2019 RMB RMB Restricted cash related to: Investor assurance program 41,000 — Others 500 — Total restricted cash 41,500 — |
Summary of movement of restricted cash related to investor assurance program | The movement of restricted cash related to guarantee liabilities, which covers both liabilities from the investor assurance program and other guarantee liabilities for the years ended December 31, 2018 and 2019 is presented as follows: Year ended December 31, 2018 2019 RMB RMB Beginning balance 154,742 41,000 Service fees collected by Shanghai Caiyin and deposited directly into restricted cash (1) 2,284,291 193,632 Transfer from cash (2) 1,079,932 609,951 Gross payouts related to guarantee liabilities (4,099,353 ) (1,002,671 ) Gross recoveries related to guarantee liabilities 621,388 160,970 Transfer out due to disposal of Shanghai Caiyin — (2,882 ) Ending balance 41,000 — (1) Service fees collected from borrowers represents service fees collected by Shanghai Caiyin in the year presented that are directly deposited to the restricted cash accounts. (2) Transfer from cash represents cash transferred by the Company into the designated deposit account when the balance of the account is not sufficient to compensate losses for all investors. |
Summary of property and equipment estimated useful lives | Property and equipment consist of the following and depreciation is calculated on a straight-line basis over the following estimated useful lives: Category Estimated useful life Electronic equipment 3 years Office equipment & Furniture 5 years Motor vehicles 4 years Leasehold improvement Shorter of the lease term or expected useful life Software 10 years |
Summary of disaggregation of revenue by product | The following table illustrates the disaggregation of revenue by product and services the Company offered in 2017, 2018 and 2019, respectively: For the year ended December 31, 2017 Loan facilitation Post-origination Other Total RMB RMB RMB RMB Current loan products 678,003 21,067 15,330 714,400 Other online standard loan products 637,860 60,070 80,225 778,155 Offline and non-standard loan products 540,721 44,301 722 585,744 Other services — — 172,551 172,551 Total 1,856,584 125,438 268,828 2,250,850 For the year ended December 31, 2018 Loan facilitation Post-origination Other Total RMB RMB RMB RMB Current loan products 2,245,941 174,370 27,021 2,447,332 Other online standard loan products 51 26,938 89,582 116,571 Offline and non-standard loan products 916 40,660 1,918 43,494 Other services — — 274,543 274,543 Total 2,246,908 241,968 393,064 2,881,940 For the year ended December 31, 2019 Loan facilitation Post-origination Other Total RMB RMB RMB RMB Current loan products 1,742,708 230,024 1,648 1,974,380 Other online standard loan products 4,357 5,854 6 10,217 Offline and non-standard loan products — 31,169 1,177 32,346 Other services — — 213,233 213,233 Total 1,747,065 267,047 216,064 2,230,176 |
Summary of incentives paid to investors | Such incentives are recorded as a reduction of revenue over the investment period and the incentive accrued not paid are recorded as refund liabilities based on the management’s best estimate. Year ended December 31, 2017 2018 2019 RMB RMB RMB Incentives paid to: New investors 69,150 89,776 92,696 Returning investors 100,000 206,380 353,297 Total incentives paid to investors 169,150 296,156 445,993 |
Summary of accounts receivable | The Company’s accounts receivable as of December 31, 2018 are as follows: Accounts Receivable Allowance for Accounts receivable, RMB RMB RMB Current loan products 364,863 (28,014 ) 336,849 Other online standard loan products — — — Offline and non-standard — — — Other services — — — Total 364,863 (28,014 ) 336,849 The Company’s accounts receivable as of December 31, 2019 are as follows: Accounts Receivable Allowance for Accounts receivable, RMB RMB RMB Current loan products 196,148 (60,444 ) 135,704 Other online standard loan products 3,695 (235 ) 3,460 Offline and non-standard — — — Other services — — — Total 199,843 (60,679 ) 139,164 |
Summary of aging of accounts receivable | The aging of accounts receivable as of December 31, 2018 is presented as follows: Current loan Other online Offline and non-standard Other Services Total RMB RMB RMB RMB RMB 0-30 351,250 — — — 351,250 31-60 6,945 — — — 6,945 60-90 6,668 — — — 6,668 Total 364,863 — — — 364,863 The aging of accounts receivable as of December 31, 2019 is presented as follows: Current loan Other online Offline and non-standard Other Services Total RMB RMB RMB RMB RMB 0-30 187,575 3,690 — — 191,265 31-60 2,984 — — — 2,984 60-90 4,620 5 — — 4,619 Over 90 days 1 969 — — — 969 Total 196,148 3,695 — — 199,843 |
Summary of movement of accounts receivable | The movement of accounts receivable for the year ended December 31, 2018 is as follows: Opening Addition in the Collection in the Write off in the Ending balance RMB RMB RMB RMB RMB Current loan products — 1,517,277 (1,128,998 ) (23,416 ) 364,863 Other online standard loan products — 2 (2 ) — — Offline and non-standard — 18 (18 ) — — Other services — 4,252 (4,252 ) — — Total — 1,521,549 (1,133,270 ) (23,416 ) 364,863 The movement of accounts receivable for the year ended December 31, 2019 is as follows: Opening Addition in the Collection in the Write off in the Ending balance RMB RMB RMB RMB RMB Current loan products 364,863 2,398,006 (2,454,752 ) (111,969 ) 196,148 Other online standard loan products — 5,498 (1,801 ) (2 ) 3,695 Other services — — — — — Total 364,863 2,403,504 (2,456,553 ) (111,971 ) 199,843 |
Summary of movement of allowance for uncollectible receivables | The movement of allowance for uncollectible receivables for the year ended December 31, 2018 is as follows: Opening balance as of Current year net Write off in the current Ending balance as RMB RMB RMB RMB Current loan products — (51,430 ) 23,416 (28,014 ) Other online standard loan products — — — — Offline and non-standard — — — — Other services — — — — Total — (51,430 ) 23,416 (28,014 ) The movement of allowance for uncollectible receivables for the year ended December 31, 2019 is as follows: Opening balance as of Current year net Write off in the current Ending balance as RMB RMB RMB RMB Current loan products (28,014 ) (144,399 ) 111,969 (60,444 ) Other online standard loan products — (237 ) 2 (235 ) Total (28,014 ) (144,636 ) 111,971 (60,679 ) |
Summary of movement of contract assets | The movement of contract assets for the year ended December 31, 2018 is as follows: Opening Addition in Collection in Write off in the Ending RMB RMB RMB RMB RMB Current loan products 335,550 898,142 (1,001,265 ) (177,812 ) 54,615 Other online standard loan products 162,942 26,987 (107,384 ) (68,443 ) 14,102 Offline and non-standard 376,304 41,548 (244,329 ) (10,497 ) 163,026 Other services 6,500 270,291 (265,653 ) — 11,138 Total 881,296 1,236,968 (1,618,631 ) (256,752 ) 242,881 The movement of contract assets for the period ended August 31, 2019 is as follows: Opening Addition in Collection in Write off in Transfer out Reclass to 2 Ending RMB RMB RMB RMB RMB RMB RMB Current loan products 54,615 41,747 (41,134 ) (46,306 ) (140,988 ) (132,066 ) — Other online standard loan products 14,102 3,827 (10,398 ) (5,382 ) (6,492 ) (4,343 ) — Offline and non-standard loan products 163,026 21,704 (107,591 ) (35,674 ) (43,011 ) (1,546 ) — Other services 11,138 — (11,138 ) — — — — Total 242,881 67,278 (170,261 ) (87,362 ) (190,491 ) (137,955 ) — |
Summary of movement of allowance for uncollectible contract assets | The movement of allowance for uncollectible contract assets for the year ended December 31, 2018 is as follows: Opening balance as of Current year net Current year write- Ending balance as of RMB RMB RMB RMB Current loan products (32,571 ) (179,153 ) 177,812 (33,912 ) Other online standard loan products (42,484 ) (28,957 ) 68,443 (2,998 ) Offline and non-standard (6,950 ) (6,438 ) 10,497 (2,891 ) Other services — — — — Total (82,005 ) (214,548 ) 256,752 (39,801 ) The movement of allowance for uncollectible contract assets for the year ended December 31, 2019 is as follows: Opening Current year Current year Transfer out Ending RMB RMB RMB RMB RMB Current loan products (33,912 ) (12,758 ) 46,306 364 — Other online standard loan products (2,998 ) (2,852 ) 5,382 468 — Offline and non-standard loan products (2,891 ) (71,995 ) 35,674 39,212 — Other services — Total (39,801 ) (87,605 ) 87,362 40,044 — |
GUARANTEE LIABILITIES (Tables)
GUARANTEE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liabilities [Abstract] | |
Summary of movement on liabilities from investor assurance program | The Company’s movement on liabilities from the investor assurance program and other guarantee liabilities for the years ended December 31, 2018 and 2019 is as follows: Current loan Other online Offline and non- Total RMB RMB RMB RMB Opening balance as of January 1, 2018 827,703 741,275 2,149,374 3,718,352 Liability arising from new business 968,732 373 710 969,815 Net payouts for loans originated in 2015 — — (792,923 ) (792,923 ) Net payouts for loans originated in 2016 254 (4,412 ) (750,399 ) (754,557 ) Net payouts for loans originated in 2017 (778,674 ) (399,874 ) (231,609 ) (1,410,157 ) Net payouts for loans originated in 2018 (519,849 ) (146 ) (333 ) (520,328 ) Release on expiration (27,021 ) (89,582 ) (1,918 ) (118,521 ) Contingent liability accrued 103,964 6,386 349,101 459,451 Ending balance as of December 31, 2018 575,109 254,020 722,003 1,551,132 Current loan Other online Offline and non- Total RMB RMB RMB RMB Opening balance as of January 1, 2019 575,109 254,020 722,003 1,551,132 Liability arising from new business — — — — Net payouts for loans originated in 2015 — — (15,999 ) (15,999 ) Net payouts for loans originated in 2016 391 (431 ) (229,430 ) (229,470 ) Net payouts for loans originated in 2017 (181,253 ) (7,140 ) (86,452 ) (274,845 ) Net payouts for loans originated in 2018 (321,276 ) (2 ) (109 ) (321,387 ) Release on expiration (1,648 ) (6 ) (1,177 ) (2,831 ) Transfer out due to disposal of Shanghai Caiyin (71,323 ) (246,441 ) (388,836 ) (706,600 ) Ending balance as of December 31, 2019 — — — — |
ASSETS FROM THE INVESTOR ASSU_2
ASSETS FROM THE INVESTOR ASSURANCE PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Assets [Abstract] | |
Summary of movement of assets from investor assurance program | The movement of the assets from the investor assurance program for the year ended December 31, 2018 is as follow: Opening balance Assets arising Subsequent Additional provisions in the current year Ending balance as RMB RMB RMB RMB RMB Current loan products 1,187 968,732 (969,919 ) — — Other online standard loan products 218,686 373 (218,806 ) (87 ) 166 Offline and non-standard 50,403 710 (37,564 ) (8,190 ) 5,359 Total 270,276 969,815 (1,226,289 ) (8,277 ) 5,525 The movement of the assets from the investor assurance program for the year ended December 31, 2019 is as follow: Opening balance Assets arising Subsequent Additional Transfer out Ending RMB RMB RMB RMB RMB RMB Current loan products — — — — — — Other online standard loan products 166 — (165 ) — (1 ) — Offline and non-standard 5,359 — (5,175 ) — (184 ) — Total 5,525 — (5,340 ) — (185 ) — |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment consisted of the followings: Year ended December 31, 2018 2019 RMB RMB Leasehold improvement 7,291 8,093 Motor vehicles 1,604 1,604 Electronic equipment 29,756 56,068 Office equipment & furniture 6,432 6,868 Software 1,182 1,342 Total costs 46,265 73,975 Less: accumulated depreciation and amortization (17,254 ) (34,891 ) Property and equipment, net 29,011 39,084 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of share-based compensation expenses | The following table presents the classification of the Company’s share-based compensation expenses: Year ended December 31, 2017 2018 2019 RMB RMB RMB Origination and servicing 1,620 2,516 10,345 General and administrative 24,326 29,734 80,599 Research and development 28,619 22,820 48,578 Sales and marketing 34,831 12,708 8,060 Total 89,396 67,778 147,582 |
Summary of assumptions to estimate fair value of options at date of grant | The following assumptions were applied to estimate the fair value of the options granted in 2016, 2018 and 2019 at the date of grant: September 2016 October 2018 November 2019 Average risk-free rate of interest 2.54% 3.32% 1.57%-1.69% Estimated volatility rate 50.46% 44.32% 42.86%-45.28% Dividend yield 0.00% 0.00% 0.00% Time to maturity 4.5 years 4.5 years 0-3 years Fair value per underlying ordinary share RMB RMB RMB 53.43 |
Summary of aggregate option activity | The summary of the aggregate option activity and information regarding options outstanding as of December 31, 2019 is as follows: Number of (in ‘000s) Weighted Average Exercise Price Weighted Average Remaining Contract Life Aggregate Intrinsic Value RMB Years RMB Options outstanding at December 31, 2018 11,437 3.5 3.55 357,993 Options granted in 2019 288 Options forfeited in 2019 (2,480 ) Options cancelled in 2019 (3,546 ) Options outstanding at December 31, 2019 5,699 3.5 2.51 189,093 Options exercisable at December 31, 2019 1,674 3.5 2.51 49,567 Options vested or expected to be vested at December 31, 2019 5,699 3.5 2.51 189,093 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax expense | Income tax expense consist of the following: Year ended December 31, 2017 2018 2019 RMB RMB RMB Current income tax expense: PRC 80,548 111,552 168,924 Deferred income tax expense (benefit): PRC 81,099 (17,637 ) (131,917 ) Total income tax expense 161,647 93,915 37,007 |
Summary of significant components of deferred tax assets and deferred tax liabilities | The following table sets forth the significant components of the deferred tax assets and deferred tax liabilities: Year Ended December 31, 2018 2019 RMB RMB Deferred tax assets Payroll and welfare payable 16,880 12,131 Accrued expenses 20,462 16,199 Allowance for uncollectible receivables and contract assets 101,048 37,932 Liabilities from the investor assurance program 306,655 — Net loss carryforward 576,810 13,595 Liabilities related to customer incentive 23,423 44,216 Gross deferred tax assets 1,045,278 124,073 Valuation allowances (619,533 ) (1,909 ) Net deferred tax assets 425,745 122,164 Deferred tax liabilities Uncollected revenues (369,718 ) (53,872 ) Total deferred tax liabilities (369,718 ) (53,872 ) Net deferred tax assets (after offsetting) 56,027 68,292 |
Summary of reconciliations of differences between prc statutory income tax rate and group's effective income tax rate | Reconciliations of the differences between PRC statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2017, 2018 and 2019 are as follows: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Statutory income tax rate 25.00 % 25.00 % 25.00 % Non-deductible expense 2.57 % 2.62 % 6.66 % Research and Development expense super deduction (0.31 %) (1.44 %) (2.97 %) Effect of tax holiday (4.24 %) (12.87 %) (18.86 %) Different tax rate of entities operating in other jurisdiction 0.00 % 0.00 % (0.07 %) Valuation allowance 0.00 % 0.00 % 0.32 % Change in 0.79 % 0.00 % (3.13 %) True up 0.00 % 0.00 % (0.40 % ) Effective tax rate 23.81 % 13.31 % 6.55 % |
Summary of effect of tax holiday | The effect of the tax holiday on the income per share is as follows: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Tax saving amount due to HNTE status 29,739 90,819 106,516 Tax saving amount due to other jurisdiction — — (411 ) Income per share effect-basic and diluted 0.15 0.45 0.52 |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted net income per share attribute to ordinary shareholders after stock split | The following table sets forth the computation of basic and diluted net income per share attribute to ordinary shareholders after the stock split: Year Ended December 31, 2017 2018 2019 RMB RMB RMB Net income attributable to ordinary shareholders – basic and diluted 539,545 611,758 527,747 Weighted average number of ordinary shares outstanding – diluted and diluted 200,000,000 200,000,000 210,409,863 Basic and diluted net income per share 2.70 3.06 2.51 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of supplemental consolidated balance sheet information related to leases | Supplemental consolidated balance sheet information related to leases was as follows: As of December 31, 2019 Operating leases: RMB Operating leases right-of-use 37,215 Current portion of lease liabilities 2,735 Non-current 32,480 Total operating lease liabilities 35,215 Weighted average remaining lease term (in years) 1.2 Weighted average discount rate 4.75 % |
Summary of cash flow information related to leases | Supplemental cash flow information related to leases for the year ended December 31, 2019 is as follows: For the year ended 2019 RMB Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases 28,319 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 15,986 |
Summary of maturities of lease payments | Maturities of lease payments by year and in the aggregate, under non-cancellable As of December 31, 2019 RMB 2020 33,430 2021 2,746 2022 and thereafter — Total lease payment 36,176 Less imputed interest (961 ) Total 35,215 As of December 31, 2019 RMB 2019 23,901 2020 22,955 2021 3,826 2022 and thereafter — Total 50,682 |
Summary of Future minimum lease payments | As of December 31, 2018, the undiscounted future minimum lease payments under non-cancellable operating leases prior to the adoption of the lease ASUs were as follows: As of December 31, 2019 RMB 2019 23,901 2020 22,955 2021 3,826 2022 and thereafter — Total 50,682 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of transactions with and amounts due from and due to related parties | The Company entered into the following transactions with its related parties: Year ended December 31, 2017 2018 2019 RMB RMB RMB Services provided by related parties: Jiayin Zhuoyue (1) 106,256 77,984 81,206 Shanghai Jiayin (2) — 13,806 8,280 Shilupan (3) — 17,202 7,863 Jiayin (Shanghai) (1) 146,446 2,459 6,548 Kailiantong (4) — 8,065 2,255 Jiayin Credit (5) 2,420 10,513 196 Geerong Yun (6) — 3,136 — Total 255,122 133,165 106,348 Services provided to related parties Kailiantong (4) — — 1,761 Total — — 1,761 Year ended December 31, 2017 2018 2019 RMB RMB RMB Loans to related parties: China Smartpay(7) — — 119,924 GAYANG (8) — — 1,716 Shanghai Jiayin (8) — — 909 Shanghai Jiajie (8) — 7,700 800 SG Fintech (9) — — 598 Geerong Yun (10) — 3,850 — Total — 11,550 123,947 Loans from related parties Jiayin Financial Leasing(11) — — 150 Jiayin Credit (11) 13,876 70,765 80 Total 13,876 70,765 230 (1) Jiayin Zhuoyue and Jiayin (Shanghai) referred investors and borrowers to the Company and charged referral service fees. (2) Shanghai Jiayin rent office to the Company and charged lease payment and other related service fee, which is calculated dependent on its usage of underlying office. (3) Shilupan provided credit analysis service for the Company and charged corresponding service fees. (4) Kailiantong provided cash payment service to the Company charged transaction processing fees. The Company provided referral service to Kailiantong and charged loan facilitation fees, which resulted in the 2019 balance of amount due from related parties. (5) Jiayin Credit provided credit service to the Company and charged credit service fees. (6) Geerong Yun was acquired by the Company in 2019. The service provided in 2018 was referral service. See Note 1. (7) The amount represents loans to related party in 2019. The Company entered into a loan contract with China Smartpay of RMB 119,924 (US$ 17, 225) with fixed annual interest rate of 8%. The loan balance includes principal of RMB 119, 924 and interest of RMB 4,938 was recorded for year 2019. The total amount of RMB124,862 had not been repaid by the year end of 2019. (8) The amount represents loans to related parties in 2019 for the daily operation, which are non-interest bearing, unsecured, and due on demand. (9) The amount represents loans to related parties in 2019, which results in the balance of amount due from related parties shown as below. The Company entered into a loan contract with SG Fintech of RMB 598 (US$ 86) with fixed interest rate 0.5%. The loan balance includes principal RMB 598 and interest receivable RMB 1. (10) The amount represents loans to related parties in 2018, which was subsequently collected in the same year. (11) The amounts represent loans from related parties in the years of 2017, 2018 and 2019 for the daily operation. The following table present amounts due from and due to related parties as of December 31, 2018 and 2019: As of December 31, 2018 2019 RMB RMB Amounts due from related parties China Smartpay — 124,862 GAYANG — 1,716 Shanghai Jiayin — 1,564 Kailiantong — 1,050 Shanghai Jiajie — 800 SG Fintech — 599 Jiayin Credit — 131 Total — 130,722 Amounts due to related parties Jiayin Zhuoyue 8,199 722 Jiayin Financial Leasing — 150 Jiayin Credit 70,399 — Kailiantong 3,835 — Shilupan 2,076 — Total 84,509 872 Amounts due from related parties primarily consist of loans to related parties. Amounts due to related parties primarily consist of the amount of service fees payable to related parties. Balance as of December 31, 2018 for amount due to Credit represents the loan received by the Company for daily operation. |
FINANCIAL STATEMENTS SCHEDULE_2
FINANCIAL STATEMENTS SCHEDULE I (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS | ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (AMOUNT IN THOUSANDS, EXCEPT SHARE AND SHARE RELATED DATA) 2018 2019 RMB RMB US$ Assets Current assets Cash and cash equivalents — 27,223 3,910 Short-term investment — 69,618 10,000 Amounts due from subsidiaries and VIEs — 44,695 6,420 Amounts due from a related party — 124,862 17,935 Prepaid and other current assets — 1,117 160 Total current assets — 267,515 38,425 Investments in subsidiaries and VIEs (1,652,006 ) (1,003,436 ) (144,135 ) Total assets (1,652,006 ) (735,921 ) (105,710 ) Liabilities Current Liabilities Accrued expenses and other current liabilities — 5,933 851 Total liabilities — 5,933 851 Equity Ordinary shares — — — Additional paid-in capital 395,472 777,408 111,668 Accumulated deficit (2,047,478 ) (1,519,731 ) (218,296 ) Other comprehensive income — 469 67 Total deficit (1,652,006 ) (741,854 ) (106,561 ) Total liabilities and deficit (1,652,006 ) (735,921 ) (105,710 ) |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME | ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (AMOUNT IN THOUSANDS, EXCEPT SHARE AND SHARE RELATED DATA) Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Operating cost and expenses: General and administrative — — (2,886 ) (415 ) Total operating cost and expenses — — (2,886 ) (415 ) Loss from operations — — (2,886 ) (415 ) Interest income — — 4,910 705 Other income, net — — 1 — Income before taxes and income from equity in subsidiaries and VIEs — — 2,025 290 Income tax expense — — — — Equity in earnings of subsidiaries and VIEs 539,545 611,758 525,722 75,515 Net income 539,545 611,758 527,747 75,805 Other comprehensive income, net of tax Change in cumulative foreign currency translation adjustment — — 469 67 Other comprehensive income — — 469 67 Comprehensive income 539,545 611,758 528,216 75,872 |
CONSOLIDATED STATEMENTS OF COMPANY CASH FLOW STATEMENTS | ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONSOLIDATED STATEMENTS OF COMPANY CASH FLOW STATEMENTS (AMOUNT IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cash flows from operating activities Net income 539,545 611,758 527,747 75,805 Adjustments to reconcile net income to net cash used in operating activities: Share of results of subsidiaries and VIEs (539,545 ) (611,758 ) (525,722 ) (75,515 ) Depreciation and amortization — — 2,020 290 Changes in operating assets and liabilities: Amounts due from a related party — — (4,938 ) (709 ) Amounts due from subsidiaries and VIEs (44,695 ) (6,420 ) Prepaid and other current assets — — (3,137 ) (451 ) Accrued expenses and other current liabilities — — 5,933 851 Net cash used in — — (42,792 ) (6,149 ) Cash flows from investing activities Loan to a related party — — (119,924 ) (17,225 ) Purchase of short-term investment — — (71,477 ) (10,267 ) Net cash used in investing activities — — (191,401 ) (27,492 ) Cash flows from financing activities Net proceeds from issuance of ordinary sh ares 255,928 36,762 Net cash provided by financing activities — — 255,928 36,762 Effect of foreign exchange rate changes on cash and cash equivalents — — 5,488 789 Net decrease in cash and cash equivalents — — 27,223 3,910 Cash and cash equivalents at beginning of year — — — — Cash and cash equivalents at end of the year — — 27,223 3,910 Supplemental disclosure of significant non-cash — — — — Decease in investment in subsidiaries and VIEs for cash dividend paid by a subsidiary on behalf of the parent to the Company — (400,000 ) — — |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 10, 2019CNY (¥)shares | Dec. 31, 2015CNY (¥) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | May 10, 2019$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / shares |
Summary of Organization and Principal Activities [Line Items] | |||||||
Contractual consideration net of funds remaining in the investor assurance program | ¥ 130,722 | $ 18,777 | |||||
Guarantee liability | ¥ | ¥ 4,060 | ||||||
Shares par value | $ / shares | $ 0.00 | ||||||
Common shares, shares issued (in shares) | shares | 216,100,000 | 216,100,000 | |||||
Stock issued equivalent common stock shares | shares | 16,100,000 | ||||||
IPO Expenses Capitalization | ¥ | ¥ 234,354 | ||||||
American Depositary Share [Member] | |||||||
Summary of Organization and Principal Activities [Line Items] | |||||||
Shares issued in initial public offering ("IPO") (in shares) | shares | 4,025,000 | ||||||
Shares issued, price per share | $ / shares | $ 10.50 | ||||||
Common Class A [Member] | |||||||
Summary of Organization and Principal Activities [Line Items] | |||||||
Shares par value | $ / shares | $ 0.00 | $ 0.00 | |||||
Common shares, shares issued (in shares) | shares | 100,100,000 | 100,100,000 | 84,000,000 | ||||
Shares issued in initial public offering ("IPO") (in shares) | shares | 16,100,000 | ||||||
Common Class B [Member] | |||||||
Summary of Organization and Principal Activities [Line Items] | |||||||
Shares par value | $ / shares | $ 0.00 | $ 0.00 | |||||
Common shares, shares issued (in shares) | shares | 116,000,000 | 116,000,000 | 116,000,000 | ||||
Shanghai Niwodai Finance Information Co., Ltd. ("Niwodai Finance") | |||||||
Summary of Organization and Principal Activities [Line Items] | |||||||
Investor assurance fund | ¥ | ¥ 136,300 | ||||||
Shanghai Caiyin Asset Management Co., Ltd. ("Shanghai Caiyin") | |||||||
Summary of Organization and Principal Activities [Line Items] | |||||||
Total consideration | ¥ | 700,000 | ||||||
Guarantee liability | ¥ | ¥ 2,900,000 | ||||||
Shanghai Caiyin Asset Management Co., Ltd. ("Shanghai Caiyin") | Shanghai Niwodai Finance Information Co., Ltd. ("Niwodai Finance") | |||||||
Summary of Organization and Principal Activities [Line Items] | |||||||
Contractual consideration net of funds remaining in the investor assurance program | ¥ | ¥ 563,700 |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of principal subsidiaries and VIEs (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiaries [Member] | Jiayin Holdings Limited | |
Date of incorporation/establishment or acquisition | Jan. 31, 2018 |
Place of incorporation/establishment | BVI |
Percentage of legal ownership | 100.00% |
Principal activities | Investment Holding |
Subsidiaries [Member] | Geerong(HK) Limited (formerly known as "Jiayin (HK) Limited") | |
Date of incorporation/establishment or acquisition | Jan. 31, 2018 |
Place of incorporation/establishment | Hong Kong |
Percentage of legal ownership | 100.00% |
Principal activities | Investment Holding |
Subsidiaries [Member] | Jiayin Southeast Asia Holdings Limited | |
Date of incorporation/establishment or acquisition | Feb. 28, 2018 |
Place of incorporation/establishment | BVI |
Percentage of legal ownership | 100.00% |
Principal activities | Investment Holding |
Subsidiaries [Member] | Shanghai Kunjia Technology Co., Ltd. | |
Date of incorporation/establishment or acquisition | Jun. 30, 2018 |
Place of incorporation/establishment | Shanghai |
Percentage of legal ownership | 100.00% |
Principal activities | Investment Holding |
Subsidiaries [Member] | Geerong Yunke Information Technology Co., Ltd | |
Date of incorporation/establishment or acquisition | Jul. 30, 2019 |
Place of incorporation/establishment | Shanghai |
Percentage of legal ownership | 100.00% |
Principal activities | Technology development and consumer finance services |
Subsidiaries [Member] | Geerong Yun (Shanghai) Enterprise Development Co., Ltd. | |
Date of incorporation/establishment or acquisition | Sep. 30, 2019 |
Place of incorporation/establishment | Shanghai |
Percentage of legal ownership | 100.00% |
Principal activities | Technology development and consumer finance services |
Variable Interest Entity, Primary Beneficiary [Member] | Shanghai Jiayin Finance Technology Co., Ltd. | |
Date of incorporation/establishment or acquisition | Jun. 30, 2015 |
Place of incorporation/establishment | Shanghai |
Percentage of legal ownership | 100.00% |
Principal activities | Technology service |
Variable Interest Entity, Primary Beneficiary [Member] | Shanghai Niwodai Internet Finance Information Services Co., Ltd. | |
Date of incorporation/establishment or acquisition | Sep. 30, 2015 |
Place of incorporation/establishment | Shanghai |
Percentage of legal ownership | 100.00% |
Principal activities | Technology development and consumer finance services |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Jul. 30, 2019 | |
Shareholders' deficit | ¥ (741,854,000) | ¥ (1,652,006,000) | $ (106,561) | ||||
Net income | 527,747,000 | $ 75,805 | 611,758,000 | ¥ 539,545,000 | |||
Net cash used in the operating activities | 26,291,000 | $ 3,777 | (228,368,000) | 104,752,000 | |||
Cash and cash equivalents | ¥ 122,149,000 | ¥ 41,441,000 | ¥ 606,097,000 | $ 17,546 | |||
VIEs percentage of Group's consolidated revenue | 96.00% | 96.00% | 100.00% | 100.00% | |||
VIEs percentage of consolidated total assets | 52.00% | 52.00% | 100.00% | ||||
VIEs percentage of consolidated total liabilities | 95.00% | 95.00% | 100.00% | ||||
Convenience translation rate per US$1.00 | 6.9618 | 6.9618 | |||||
Value added tax rate | 6.00% | ||||||
Value added tax amount | ¥ 168,763,000 | ¥ 298,720,000 | ¥ 273,785,000 | ||||
Service fees | ¥ 174,191,000 | ¥ 242,513,000 | ¥ 156,563,000 | ||||
Weighted average investment period | 8 months 9 days | 8 months 9 days | 8 months | 8 months 21 days | |||
Remaining performance obligations | ¥ 137,313,000 | ¥ 222,735,000 | |||||
Remaining performance obligations, percentage that will be recognized by the Group over the following 12 months | 100.00% | 92.00% | 100.00% | ||||
Advertising expenses | ¥ 26,985,000 | ¥ 25,994,000 | ¥ 21,828,000 | ||||
Government grants | 18,722,000 | 22,465,000 | 12,471,000 | ||||
Minimum operating lease commitements | 50,682,000 | 50,682,000 | |||||
Employee defined contribution plan expense | ¥ 65,076,000 | 51,611,000 | 82,053,000 | ||||
Percentage of ownership interest | 20.00% | 20.00% | |||||
Current portion of lease liabilities | ¥ 2,735,000 | ||||||
Weighted average discount rate | 4.75% | 4.75% | |||||
Right-of-use assets | ¥ 37,215,000 | ||||||
Lease liabilities | 35,215,000 | ||||||
Deferred Revenue | 55,689,000 | ¥ 41,252,000 | ¥ 0 | ||||
Weighted average expected net accumulative loss rates | 11.20% | 13.40% | |||||
SG Fintech Joint Stock Company | |||||||
Business acquisition, percentage of voting interests acquired | 24.90% | ||||||
Investment income, net | ¥ 378,000 | ||||||
Cash and Cash Equivalents [Member] | CHINA | |||||||
Concentration risk, percentage | 64.00% | 64.00% | |||||
Cash and Cash Equivalents [Member] | Overseas | |||||||
Concentration risk, percentage | 36.00% | 36.00% | |||||
Exclusive Purchase Agreement Member [Member] | Shanghai Kunjia Technology Co., Ltd. ("Shanghai Kunjia" or "WFOE") [Member] | |||||||
Consideration of purchase | ¥ 1 | ||||||
Effective time period of agreement | 10 years | 10 years | |||||
Post-origination service | |||||||
Contract liability revenue recognised | ¥ 4,902,000 | ||||||
Remaining performance obligations | ¥ 182,026,000 | ¥ 222,735,000 | ¥ 171,000,000 | ||||
Remaining performance obligations, percentage that will be recognized by the Group over the following 12 months | 100.00% | 92.00% | 70.00% | 100.00% | |||
Deferred Revenue, Revenue Recognized | ¥ 41,252,000 | ||||||
Post-origination service | Accrued Liabilities | |||||||
Contract liabilities | 0 | ||||||
Post-origination service | Other Current Liabilities | |||||||
Contract liabilities | ¥ 41,252,000 | ||||||
China United SME Guarantee Corporation | |||||||
Unsecured loans facilitated subject to investor assurance program | ¥ 2,544,000,000 | ¥ 1,233,000,000 | |||||
Percentage of total loan volume facilitated | 14.00% | 14.00% | 5.00% | ||||
Shenzhen Rongxinbao Non-financial Guarantee Co., Ltd. | |||||||
Unsecured loans facilitated subject to investor assurance program | ¥ 15,661,000,000 | ¥ 11,082,000,000 | |||||
Percentage of total loan volume facilitated | 86.00% | 86.00% | 47.00% | ||||
Selective unrelated third party individual investors | |||||||
Investment amount | ¥ 1,000,000 | ||||||
Unsecured loans facilitated subject to investor assurance program | ¥ 2,727,000,000 | ¥ 2,727,000,000 | |||||
Percentage of total loan volume facilitated | 12.00% | 12.00% | 12.00% | ||||
Payment Guarantee [Member] | |||||||
Guarantee obligations | ¥ 487,216,000 | ||||||
CNY | |||||||
Cash and cash equivalents | ¥ 41,441,000 | ||||||
Variable Interest Entity, Primary Beneficiary | |||||||
Unsecured loans facilitated subject to investor assurance program | ¥ 8,632,000,000 | ||||||
Percentage of total loan volume facilitated | 36.00% | ||||||
Equity Pledge Agreement | |||||||
Percentage of equity interest in Jiayin Finance pledged to WFOE | 100.00% | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of condensed financial statement balances and amounts of Company's VIEs (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 122,149 | ¥ 41,441 | ¥ 606,097 | $ 17,546 | |
Restricted cash | 0 | 41,500 | |||
Amounts due from related parties | 130,722 | 18,777 | |||
Accounts receivable, net | 139,164 | 336,849 | 19,990 | ||
Contract assets, net | 203,080 | ||||
Assets from the investor assurance program, net | 5,525 | 270,276 | |||
Prepaid expenses and other current assets | 91,002 | 88,234 | 13,072 | ||
Deferred tax assets | 68,292 | 56,027 | 9,810 | ||
Property and equipment | 39,084 | 29,011 | 5,614 | ||
Right-of-use assets | 37,215 | 5,346 | |||
Other long-term assets | 212 | ||||
TOTAL ASSETS | 701,072 | 801,879 | 100,705 | ||
Payroll and welfare payables | 48,524 | 110,562 | 6,970 | ||
Amounts due to related parties | 872 | 84,509 | 125 | ||
Liabilities from the investor assurance program | 1,547,072 | 3,718,352 | |||
Refund liabilities | 180,104 | 84,498 | 25,870 | ||
Other guarantee liabilities | 4,060 | ||||
Tax payables | 179,421 | 422,177 | 25,772 | ||
Accrued expenses and other current liabilities | 158,705 | 201,007 | 22,800 | ||
Other payable related to the disposal of Shanghai Caiyin | 839,830 | 120,634 | |||
Lease liabilities | 35,215 | 5,058 | |||
TOTAL LIABILITIES | 1,442,671 | 2,453,885 | $ 207,229 | ||
Net revenue | 2,230,176 | $ 320,345 | 2,881,940 | 2,250,850 | |
Operating income | 534,669 | 76,799 | 685,206 | 686,661 | |
Net income | 527,747 | 75,805 | 611,758 | 539,545 | |
Net cash provided by (used in) operating activities | 26,291 | 3,777 | (228,368) | 104,752 | |
Net cash provided by (used in) investing activities | (234,178) | (33,638) | (16,423) | 61,215 | |
Net cash provided by (used in) financing activities | 244,674 | $ 35,145 | (433,600) | 13,876 | |
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 54,602 | 41,441 | |||
Restricted cash | 41,500 | ||||
Amounts due from related parties | 1,651 | ||||
Accounts receivable, net | 110,219 | 336,849 | |||
Contract assets, net | 203,080 | ||||
Assets from the investor assurance program, net | 5,525 | ||||
Prepaid expenses and other current assets | 66,722 | 88,234 | |||
Deferred tax assets | 54,973 | 56,027 | |||
Property and equipment | 38,303 | 29,011 | |||
Right-of-use assets | 36,534 | ||||
Other long-term assets | 212 | ||||
TOTAL ASSETS | 363,004 | 801,879 | |||
Payroll and welfare payables | 29,386 | 110,562 | |||
Amounts due to related parties | 722 | 84,509 | |||
Liabilities from the investor assurance program | 1,547,072 | ||||
Other guarantee liabilities | 4,060 | ||||
Tax payables | 164,444 | 422,177 | |||
Accrued expenses and other current liabilities | 121,319 | 201,007 | |||
Other payable related to the disposal of Shanghai Caiyin | 839,830 | ||||
Lease liabilities | 34,620 | ||||
TOTAL LIABILITIES | 1,370,425 | 2,453,885 | |||
Net revenue | 2,151,165 | 2,881,940 | 2,250,850 | ||
Operating income | 583,741 | 685,206 | 686,661 | ||
Net income | 571,227 | 611,758 | 539,545 | ||
Net cash provided by (used in) operating activities | 19,465 | (228,368) | 104,752 | ||
Net cash provided by (used in) investing activities | (35,505) | (16,423) | 61,215 | ||
Net cash provided by (used in) financing activities | ¥ (12,299) | ¥ (433,600) | ¥ 13,876 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of loans under investor assurance program (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Current loan products | |
Guarantor Obligations [Line Items] | |
Total outstanding loan balances | ¥ 1,224,961 |
Maximum potential undiscounted future payments | ¥ 1,265,267 |
Remaining weighted average contractual term | 2 years 3 months 18 days |
Net expected accumulative loss rate on outstanding loans | 11.30% |
Other online standard loan products | |
Guarantor Obligations [Line Items] | |
Total outstanding loan balances | ¥ 169,072 |
Maximum potential undiscounted future payments | ¥ 180,845 |
Remaining weighted average contractual term | 8 years 9 months 18 days |
Net expected accumulative loss rate on outstanding loans | 16.00% |
Offline and non-standard loan products | |
Guarantor Obligations [Line Items] | |
Total outstanding loan balances | ¥ 3,554,398 |
Maximum potential undiscounted future payments | ¥ 3,847,072 |
Remaining weighted average contractual term | 10 years 6 months |
Net expected accumulative loss rate on outstanding loans | 19.00% |
Loans related to other guarantee liabilities | |
Guarantor Obligations [Line Items] | |
Maximum potential undiscounted future payments | ¥ 4,060 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of restricted cash (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted cash related to: | ||||
Restricted cash | ¥ 0 | ¥ 41,500 | ||
Investor assurance program | ||||
Restricted cash related to: | ||||
Restricted cash | 0 | ¥ 0 | 41,000 | ¥ 154,742 |
Others | ||||
Restricted cash related to: | ||||
Restricted cash | ¥ 0 | ¥ 500 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of movement of restricted cash related to investor assurance program (Detail) - CNY (¥) ¥ in Thousands | 8 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Beginning balance | ¥ 41,500 | ¥ 41,500 | |
Transfer out due to disposal of Shanghai Caiyin | (190,491) | ||
Ending balance | 0 | ¥ 41,500 | |
Investor assurance program | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Beginning balance | 41,000 | 41,000 | 154,742 |
Service fees collected by Shanghai Caiyin and deposited directly into restricted cash | 193,632 | 2,284,291 | |
Transfer from cash | 609,951 | 1,079,932 | |
Gross payouts related to guarantee liabilities | (1,002,671) | (4,099,353) | |
Gross recoveries related to guarantee liabilities | 160,970 | 621,388 | |
Transfer out due to disposal of Shanghai Caiyin | (2,882) | ||
Ending balance | ¥ 0 | ¥ 0 | ¥ 41,000 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of property and equipment estimated useful lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Office equipment & Furniture | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Shorter of the lease term or expected useful life |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of disaggregation of revenue by product (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | ¥ 2,230,176 | $ 320,345 | ¥ 2,881,940 | ¥ 2,250,850 |
Current loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,974,380 | 2,447,332 | 714,400 | |
Other online standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 10,217 | 116,571 | 778,155 | |
Offline and non-standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 32,346 | 43,494 | 585,744 | |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 213,233 | 274,543 | 172,551 | |
Loan facilitation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,747,065 | 2,246,908 | 1,856,584 | |
Loan facilitation services | Current loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,742,708 | 2,245,941 | 678,003 | |
Loan facilitation services | Other online standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 4,357 | 51 | 637,860 | |
Loan facilitation services | Offline and non-standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | 916 | 540,721 | |
Loan facilitation services | Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | |||
Post-origination services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 267,047 | 241,968 | 125,438 | |
Post-origination services | Current loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 230,024 | 174,370 | 21,067 | |
Post-origination services | Other online standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 5,854 | 26,938 | 60,070 | |
Post-origination services | Offline and non-standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 31,169 | 40,660 | 44,301 | |
Post-origination services | Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 0 | |||
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 216,064 | 393,064 | 268,828 | |
Other revenues | Current loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,648 | 27,021 | 15,330 | |
Other revenues | Other online standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 6 | 89,582 | 80,225 | |
Other revenues | Offline and non-standard loan products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,177 | 1,918 | 722 | |
Other revenues | Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | ¥ 213,233 | ¥ 274,543 | ¥ 172,551 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of incentives paid to investors (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Incentives paid to: | |||
New investors | ¥ 92,696 | ¥ 89,776 | ¥ 69,150 |
Returning investors | 353,297 | 206,380 | 100,000 |
Total incentives paid to investors | ¥ 445,993 | ¥ 296,156 | ¥ 169,150 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of accounts receivable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable | ¥ 199,843 | ¥ 364,863 | |
Allowance for uncollectible receivables | (60,679) | (28,014) | |
Accounts receivable, net | 139,164 | $ 19,990 | 336,849 |
Current loan products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable | 196,148 | 364,863 | |
Allowance for uncollectible receivables | (60,444) | (28,014) | |
Accounts receivable, net | 135,704 | ¥ 336,849 | |
Other online standard loan products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable | 3,695 | ||
Allowance for uncollectible receivables | (235) | ||
Accounts receivable, net | ¥ 3,460 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of aging of accounts receivable (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | ¥ 199,843 | ¥ 364,863 |
0-30 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 191,265 | 351,250 |
31-60 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 2,984 | 6,945 |
61-90 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 4,625 | 6,668 |
Over 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 969 | |
Current loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 196,148 | 364,863 |
Current loan products | 0-30 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 187,575 | 351,250 |
Current loan products | 31-60 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 2,984 | 6,945 |
Current loan products | 61-90 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 4,620 | ¥ 6,668 |
Current loan products | Over 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 969 | |
Other online standard loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 3,695 | |
Other online standard loan products | 0-30 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 3,690 | |
Other online standard loan products | 61-90 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | ¥ 5 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of movement of accounts receivable (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Opening balance | ¥ 364,863 | |
Addition in the current year | 2,403,504 | ¥ 1,521,549 |
Collection in the current year | (2,456,553) | (1,133,270) |
Write off in the current year | (111,971) | (23,416) |
Ending balance | 199,843 | 364,863 |
Current loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Opening balance | 364,863 | |
Addition in the current year | 2,398,006 | 1,517,277 |
Collection in the current year | (2,454,752) | (1,128,998) |
Write off in the current year | (111,969) | (23,416) |
Ending balance | 196,148 | 364,863 |
Other online standard loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Addition in the current year | 5,498 | 2 |
Collection in the current year | (1,801) | (2) |
Write off in the current year | (2) | |
Ending balance | ¥ 3,695 | |
Offline and non-standard loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Addition in the current year | 18 | |
Collection in the current year | (18) | |
Other services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Addition in the current year | 4,252 | |
Collection in the current year | ¥ (4,252) |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of movement of allowance for uncollectible receivables (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Opening balance | ¥ (28,014) | |
Current year net provision | (144,636) | ¥ (51,430) |
Current year write-off | 111,971 | 23,416 |
Ending balance | (60,679) | (28,014) |
Current loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Opening balance | (28,014) | |
Current year net provision | (144,399) | (51,430) |
Current year write-off | 111,969 | 23,416 |
Ending balance | (60,444) | ¥ (28,014) |
Other online standard loan products | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current year net provision | (237) | |
Current year write-off | 2 | |
Ending balance | ¥ (235) |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of movement of contract assets (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Opening balance | ¥ 242,881 | ¥ 881,296 |
Addition in the current year | 67,278 | 1,236,968 |
Collection in the current year | (170,261) | (1,618,631) |
Write off in the current year | (87,362) | (256,752) |
Transfer out due to disposal of Shanghai Caiyin | (190,491) | |
Reclass to refund liability | (137,955) | |
Ending balance | 0 | 242,881 |
Current loan products | ||
Opening balance | 54,615 | 335,550 |
Addition in the current year | 41,747 | 898,142 |
Collection in the current year | (41,134) | (1,001,265) |
Write off in the current year | (46,306) | (177,812) |
Transfer out due to disposal of Shanghai Caiyin | (140,988) | |
Reclass to refund liability | (132,066) | |
Ending balance | 0 | 54,615 |
Other online standard loan products | ||
Opening balance | 14,102 | 162,942 |
Addition in the current year | 3,827 | 26,987 |
Collection in the current year | (10,398) | (107,384) |
Write off in the current year | (5,382) | (68,443) |
Transfer out due to disposal of Shanghai Caiyin | (6,492) | |
Reclass to refund liability | (4,343) | |
Ending balance | 0 | 14,102 |
Offline and non-standard loan products | ||
Opening balance | 163,026 | 376,304 |
Addition in the current year | 21,704 | 41,548 |
Collection in the current year | (107,591) | (244,329) |
Write off in the current year | (35,674) | (10,497) |
Transfer out due to disposal of Shanghai Caiyin | (43,011) | |
Reclass to refund liability | (1,546) | |
Ending balance | 0 | 163,026 |
Other services | ||
Opening balance | 11,138 | 6,500 |
Addition in the current year | 270,291 | |
Collection in the current year | (11,138) | (265,653) |
Transfer out due to disposal of Shanghai Caiyin | 0 | |
Ending balance | ¥ 0 | ¥ 11,138 |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of movement of allowance for uncollectible contract assets (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning balance | ¥ (39,801) | ¥ (82,005) |
Current year net provision | (87,605) | (214,548) |
Current year write-off | 87,362 | 256,752 |
Transfer out due to disposal of Shanghai Caiyin | (190,491) | |
Ending balance | 0 | (39,801) |
Current loan products | ||
Beginning balance | (33,912) | (32,571) |
Current year net provision | (12,758) | (179,153) |
Current year write-off | 46,306 | 177,812 |
Transfer out due to disposal of Shanghai Caiyin | (140,988) | |
Ending balance | 0 | (33,912) |
Other online standard loan products | ||
Beginning balance | (2,998) | (42,484) |
Current year net provision | (2,852) | (28,957) |
Current year write-off | 5,382 | 68,443 |
Transfer out due to disposal of Shanghai Caiyin | (6,492) | |
Ending balance | 0 | (2,998) |
Offline and non-standard loan products | ||
Beginning balance | (2,891) | (6,950) |
Current year net provision | (71,995) | (6,438) |
Current year write-off | 35,674 | 10,497 |
Transfer out due to disposal of Shanghai Caiyin | (43,011) | |
Ending balance | ¥ 0 | ¥ (2,891) |
ASSETS FROM THE INVESTOR ASSU_3
ASSETS FROM THE INVESTOR ASSURANCE PROGRAM - Summary of movement of assets from investor assurance program (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Opening balance | ¥ 5,525 | ¥ 270,276 |
Assets arising from new business | 969,815 | |
Subsequent collections during the year | (5,340) | (1,226,289) |
Additional provisions in the current year | 0 | (8,277) |
Transfer out due to disposal of Shanghai Caiyin | (185) | |
Ending Balance | 5,525 | |
Current loan products | ||
Opening balance | 1,187 | |
Assets arising from new business | 968,732 | |
Subsequent collections during the year | (969,919) | |
Other online standard loan products | ||
Opening balance | 166 | 218,686 |
Assets arising from new business | 373 | |
Subsequent collections during the year | (165) | (218,806) |
Additional provisions in the current year | (87) | |
Transfer out due to disposal of Shanghai Caiyin | (1) | |
Ending Balance | 166 | |
Offline and non-standard loan products | ||
Opening balance | 5,359 | 50,403 |
Assets arising from new business | 710 | |
Subsequent collections during the year | (5,175) | (37,564) |
Additional provisions in the current year | (8,190) | |
Transfer out due to disposal of Shanghai Caiyin | ¥ (184) | |
Ending Balance | ¥ 5,359 |
ASSETS FROM THE INVESTOR ASSU_4
ASSETS FROM THE INVESTOR ASSURANCE PROGRAM - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets From Investor Assurance Program [Abstract] | ||
Additional provisions as provision for assets and liabilities | ¥ 0 | ¥ 8,277 |
Allowance for uncollectible assets | ¥ 8,277 |
GUARANTEE LIABILITIES - Summary
GUARANTEE LIABILITIES - Summary of movement on liabilities from investor assurance program (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | ||
Opening balance | ¥ 1,547,072 | ¥ 3,718,352 |
Liability arising from new business | 969,815 | |
Release on expiration | (2,831) | (118,521) |
Contingent liability accrued | 459,451 | |
Ending balance | 1,547,072 | |
Transfer out due to disposal of Shanghai Caiyin | (706,600) | |
2015 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (15,999) | (792,923) |
2016 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (229,470) | (754,557) |
2017 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (274,845) | (1,410,157) |
2018 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (321,387) | (520,328) |
Current loan products | ||
Guarantor Obligations [Line Items] | ||
Opening balance | 575,109 | 827,703 |
Liability arising from new business | 968,732 | |
Release on expiration | (1,648) | (27,021) |
Contingent liability accrued | 103,964 | |
Ending balance | 575,109 | |
Transfer out due to disposal of Shanghai Caiyin | (71,323) | |
Current loan products | 2016 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | 391 | 254 |
Current loan products | 2017 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (181,253) | (778,674) |
Current loan products | 2018 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (321,276) | (519,849) |
Other online standard loan products | ||
Guarantor Obligations [Line Items] | ||
Opening balance | 254,020 | 741,275 |
Liability arising from new business | 373 | |
Release on expiration | (6) | (89,582) |
Contingent liability accrued | 6,386 | |
Ending balance | 254,020 | |
Transfer out due to disposal of Shanghai Caiyin | (246,441) | |
Other online standard loan products | 2016 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (431) | (4,412) |
Other online standard loan products | 2017 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (7,140) | (399,874) |
Other online standard loan products | 2018 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (2) | (146) |
Offline and non-standard loan products | ||
Guarantor Obligations [Line Items] | ||
Opening balance | 722,003 | 2,149,374 |
Liability arising from new business | 710 | |
Release on expiration | (1,177) | (1,918) |
Contingent liability accrued | 349,101 | |
Ending balance | 722,003 | |
Transfer out due to disposal of Shanghai Caiyin | (388,836) | |
Offline and non-standard loan products | 2015 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (15,999) | (792,923) |
Offline and non-standard loan products | 2016 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (229,430) | (750,399) |
Offline and non-standard loan products | 2017 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | (86,452) | (231,609) |
Offline and non-standard loan products | 2018 | ||
Guarantor Obligations [Line Items] | ||
Net payouts for loans originated | ¥ (109) | ¥ (333) |
SHORT-TERM INVESTMENT - Additio
SHORT-TERM INVESTMENT - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jul. 15, 2019USD ($) |
Short-term investments | ¥ 69,618 | $ 10,000 | |
Cornerstone Management, Inc | |||
Short-term investments | $ 10,000 | ||
Interest rate on investments | 8.00% |
PROPERTY AND EQUIPMENT - Summa
PROPERTY AND EQUIPMENT - Summary of property and equipment (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total costs | ¥ 73,975 | ¥ 46,265 | |
Less: accumulated depreciation and amortization | (34,891) | (17,254) | |
Property and equipment, net | 39,084 | $ 5,614 | 29,011 |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Total costs | 8,093 | 7,291 | |
Motor vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total costs | 1,604 | 1,604 | |
Electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total costs | 56,068 | 29,756 | |
Office equipment & furniture | |||
Property, Plant and Equipment [Line Items] | |||
Total costs | 6,868 | 6,432 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Total costs | ¥ 1,342 | ¥ 1,182 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | ¥ 17,710 | ¥ 11,300 | ¥ 4,098 |
DISPOSAL OF SHANGHAI CAIYIN -
DISPOSAL OF SHANGHAI CAIYIN - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 30, 2022CNY (¥) | Dec. 30, 2021CNY (¥) | Dec. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Shareholders deficit | ¥ (741,854) | $ (106,561) | ¥ (1,652,006) | ||||
Shanghai Caiyin [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Shareholders deficit | ¥ 2,987,000 | ||||||
Sale value of disposal group | 1,079,000 | ||||||
Contingent consideration receivable | ¥ 372,000 | ||||||
Disposal group accounts payable | 840,000 | ||||||
Disposal group fixed payable | 468,000 | ||||||
Disposal group contingent payable | 372,000 | ||||||
Shanghai Caiyin Asset Management Co Ltd [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loans receivable waived off | ¥ 1,974 | ||||||
Shanghai Caiyin Asset Management Co Ltd [Member] | Forecast [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Contingent amount | ¥ 117 | ¥ 225 | ¥ 372 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of share-based compensation expenses (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | ¥ 147,582 | $ 21,199 | ¥ 67,778 | ¥ 89,396 |
Origination and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 10,345 | 2,516 | 1,620 | |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 80,599 | 29,734 | 24,326 | |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 48,578 | 22,820 | 28,619 | |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | ¥ 8,060 | ¥ 12,708 | ¥ 34,831 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Nov. 30, 2019¥ / sharesshares | Oct. 31, 2018¥ / sharesshares | Sep. 30, 2016¥ / sharesshares | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)shares | Mar. 31, 2019 | Dec. 31, 2018CNY (¥)¥ / shares | Mar. 31, 2018 | Dec. 31, 2017CNY (¥)¥ / shares | Mar. 31, 2017 | |
Options granted in period | 288,000 | 288,000 | |||||||||||
Options exercise price | ¥ / shares | |||||||||||||
Weighted average grant date fair value of options granted | ¥ / shares | ¥ 50.36 | ¥ 84.88 | ¥ 18.16 | ||||||||||
Share-based compensation expense | ¥ 147,582 | $ 21,199 | ¥ 67,778 | ¥ 89,396 | |||||||||
Total unrecognized compensation cost related to non-vested stock options | ¥ | ¥ 55,917 | ¥ 222,928 | ¥ 74,962 | ||||||||||
Total unrecognized compensation cost related to non-vested stock options, weighted-average period | 2 years 6 months 3 days | 2 years 6 months 3 days | 3 years 6 months 18 days | 3 years 3 months | |||||||||
Unrecognized share-based compensation expense recognized | ¥ | ¥ 39,390 | ||||||||||||
Options cancelled | 2,377,000 | (3,546,000) | (3,546,000) | ||||||||||
Two Thousand Nineteen Incentive Plan | |||||||||||||
Options granted in period | 288,000 | ||||||||||||
Options exercise price | ¥ / shares | ¥ 3.5 | ||||||||||||
Two Thousand Sixteen incentive paln | |||||||||||||
Options cancelled | 2,377,000 | 2,377,000 | |||||||||||
Two Thousand Eighteen incentive paln | |||||||||||||
Options cancelled | 1,169,000 | ||||||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | |||||||||||||
Percentage of total outstanding shares | 27.00% | ||||||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Share-based Compensation Award, Tranche One | |||||||||||||
Options granted in period | 13,321,500 | ||||||||||||
Options exercise price | ¥ / shares | ¥ 3.5 | ||||||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Share-based Compensation Award, Tranche Two | |||||||||||||
Options granted in period | 2,851,600 | ||||||||||||
Options exercise price | ¥ / shares | ¥ 3.5 | ||||||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Employee Stock | Share-based Compensation Award, Tranche One | |||||||||||||
Options life | 4 years 6 months | ||||||||||||
Options vesting percentage | 30.00% | 30.00% | 25.00% | 15.00% | |||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Employee Stock | Share-based Compensation Award, Tranche Two | |||||||||||||
Options life | 4 years 6 months | ||||||||||||
Options vesting percentage | 30.00% | 30.00% | 25.00% | 15.00% | |||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Employee incentive plan | |||||||||||||
Shares that will be used under the Plan | 13,500,000 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of assumptions to estimate fair value of options at date of grant (Detail) - ¥ / shares | 1 Months Ended | ||
Nov. 30, 2019 | Oct. 31, 2018 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Average risk-free rate of interest | 3.32% | 2.54% | |
Average risk-free rate of interest, Minimum | 1.57% | ||
Average risk-free rate of interest, Maximum | 1.69% | ||
Estimated volatility rate | 44.32% | 50.46% | |
Estimated volatility rate, Minimum | 42.86% | ||
Estimated volatility rate, Maximum | 45.28% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Time to maturity | 4 years 6 months | 4 years 6 months | |
Time to maturity, Minimum | 0 years | ||
Time to maturity, Maximum | 3 years | ||
Fair value per underlying ordinary share | ¥ 53.43 | ¥ 88.13 | ¥ 21.38 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of aggregate option activity (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of Options - Beginning balance | 11,437,000 | ||
Number of Options - Options granted | 288,000 | ||
Number of Options - Options forfeited | (2,480,000) | ||
Number of Option - Option Cancelled | 2,377,000 | (3,546,000) | |
Number of Options - Ending balance | 5,699,000 | ||
Number of Options - Options exercisable | 1,674,000 | ||
Number of Options - Options vested or expected to be vested | 5,699,000 | ||
Weighted Average Exercise Price - Beginning balance | ¥ 3.5 | ||
Weighted Average Exercise Price - Options granted | |||
Weighted Average Exercise Price - Ending balance | 3.5 | ¥ 3.5 | |
Weighted Average Exercise Price - Options exercisable | 3.5 | ||
Weighted Average Exercise Price - Options vested or expected to be vested | ¥ 3.5 | ||
Weighted Average Remaining Contract Life - Options outstanding | 2 years 6 months 3 days | 3 years 6 months 18 days | |
Weighted Average Remaining Contract Life - Options exercisable | 2 years 6 months 3 days | ||
Weighted Average Remaining Contract Life - Options vested or expected to be vested | 2 years 6 months 3 days | ||
Aggregate Intrinsic Value - Options outstanding | ¥ 189,093 | ¥ 357,993 | |
Aggregate Intrinsic Value - Options exercisable | 49,567 | ||
Aggregate Intrinsic Value - Options vested or expected to be vested | ¥ 189,093 |
INCOME TAXES - INCOME TAXES - S
INCOME TAXES - INCOME TAXES - Summary of income tax expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Deferred income tax expense (benefit) | ||||
Total income tax expense | ¥ 37,007 | $ 5,315 | ¥ 93,915 | ¥ 161,647 |
PRC | ||||
Current income tax expense: | ||||
Current income tax expense | 168,924 | 111,552 | 80,548 | |
Deferred income tax expense (benefit) | ||||
Deferred income tax expense (benefit) | ¥ (131,917) | ¥ (17,637) | ¥ 81,099 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - CNY (¥) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||||
Income tax rate | 25.00% | 25.00% | 25.00% | |
Valuation allowances | ¥ 1,909,000 | ¥ 619,533,000 | ¥ 1,909,000 | |
Tax loss carry-forward | ¥ 54,380,000 | ¥ 2,307,241,000 | ¥ 2,076,261,000 | ¥ 54,380,000 |
Tax loss carry-forward, limitations on use | The Company operates its business through its subsidiaries and VIEs. The Company does not file consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries' or VIEs' earnings within the Company. | |||
Tax loss carry-forward, expiration date | Dec. 31, 2023 | Dec. 31, 2022 | ||
Foreign investment enterprises, withholding income tax rate | 10.00% | |||
Foreign investment enterprises, withholding income tax rate for those who qualifies as a beneficial owner | 5.00% | |||
Foreign investment enterprises, threshold of beneficial ownership to qualify for reduction in withholding income tax rate | 25.00% | |||
Foreign investment enterprises, withholding income tax rate for those who do not qualify as a beneficial owner | 10.00% | |||
Shanghai Niwodai Internet Finance Information Services Co., Ltd. | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 15.00% | |||
PRC | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 25.00% | |||
Preferential tax rate | 15.00% | |||
Statute of limitations period (in years) | 3 years | |||
Extension period for statute of limitations under special circumstances (in years) | 5 years | |||
Amount of underpayment threshold of tax liability listed as special circumstance | ¥ 100,000 | ¥ 100,000 | ||
Statute of limitations period for related party transaction (in years) | 10 years | |||
Statute of limitations period for tax evasion (in years) | 0 years | |||
Hong Kong | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 16.50% |
INCOME TAXES - Summary of signi
INCOME TAXES - Summary of significant components of deferred tax assets and deferred tax liabilities (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Payroll and welfare payable | ¥ 12,131 | ¥ 16,880 |
Accrued expenses | 16,199 | 20,462 |
Allowance for uncollectible receivables and contract assets | 37,932 | 101,048 |
Liabilities from the investor assurance program | 306,655 | |
Net loss carryforward | 13,595 | 576,810 |
Others | 44,216 | 23,423 |
Gross deferred tax assets | 124,073 | 1,045,278 |
Valuation allowances | (1,909) | (619,533) |
Net deferred tax assets | 122,164 | 425,745 |
Deferred tax liabilities | ||
Uncollected revenues | (53,872) | (369,718) |
Total deferred tax liabilities | (53,872) | (369,718) |
Net deferred tax assets | ¥ 68,292 | ¥ 56,027 |
INCOME TAXES - Summary of recon
INCOME TAXES - Summary of reconciliations of differences between PRC statutory income tax rate and Group's effective income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Non-deductable expense | 6.66% | 2.62% | 2.57% |
Research and Development expense super deduction | (2.97%) | (1.44%) | (0.31%) |
Effect of tax holiday | (18.86%) | (12.87%) | (4.24%) |
Different tax rate of entities operating in other jurisdiction | (0.07%) | 0.00% | 0.00% |
Valuation allowance | 0.32% | 0.00% | 0.00% |
Change in tax rate | (3.13%) | 0.00% | 0.79% |
True up | (0.40%) | 0.00% | 0.00% |
Effective tax rate | 6.55% | 13.31% | 23.81% |
INCOME TAXES - Summary of effec
INCOME TAXES - Summary of effect of tax holiday (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax saving amount due to HNTE status | ¥ 106,516 | ¥ 90,819 | ¥ 29,739 |
Tax saving amount due to Cayman | ¥ (411) | ||
Income (loss) per share effect-basic and diluted | ¥ 0.50 | ¥ 0.45 | ¥ 0.15 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Details) ¥ in Thousands | May 10, 2019CNY (¥)shares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | May 10, 2019$ / shares | Dec. 31, 2017$ / sharesshares |
Common shares, par value (in dollars per share) | $ / shares | $ 0.00 | ||||
Common shares, shares outstanding (in shares) | 216,100,000 | ||||
Ordinary shares split ratio | 20,000 | ||||
Stock sale price | $ / shares | $ 10.50 | ||||
IPO Expenses Capitalization | ¥ | ¥ 234,354 | ||||
Common Class A [Member] | |||||
Common shares, shares issued (in shares) | 10,000,000,000,000 | 10,000,000,000,000 | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.00 | $ 0.00 | |||
Common shares, shares outstanding (in shares) | 100,100,000 | 84,000,000 | |||
Common Stock, Shares, Issued | 100,100,000 | 84,000,000 | |||
Stock issued during period | 16,100,000 | ||||
Common Class B [Member] | |||||
Common shares, shares issued (in shares) | 10,000,000,000,000 | 10,000,000,000,000 | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.00 | $ 0.00 | |||
Common shares, shares outstanding (in shares) | 116,000,000 | 116,000,000 | |||
Common Stock, Shares, Issued | 116,000,000 | 116,000,000 | |||
ADS [Member] | |||||
Stock issued during period | 4,025,000 | ||||
Common Stock [Member] | |||||
Stock issued during period | 16,100,000 | ||||
Jiayin Group Inc and Subsidiaries | |||||
Common shares, shares issued (in shares) | 500,000,000 | ||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Common shares, shares outstanding (in shares) | 10,000 | ||||
Common Stock, Shares, Issued | 10,000 |
INCOME PER SHARE - Summary of c
INCOME PER SHARE - Summary of computation of basic and diluted net income per share attribute to ordinary shareholders after stock split (Detail) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Earnings Per Share [Abstract] | ||||
Net income attributable to ordinary shareholders – basic and diluted | ¥ 527,747 | $ 75,805 | ¥ 611,758 | ¥ 539,545 |
Weighted average number of ordinary shares outstanding – basic | shares | 210,409,863 | 210,409,863 | 200,000,000 | 200,000,000 |
Basic and diluted net income per share | ¥ / shares | ¥ 2.51 | ¥ 3.06 | ¥ 2.70 |
INCOME PER SHARE - Additional I
INCOME PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Shares with anti-dilutive effect | 0 | 0 | 0 |
LEASES - Additional Information
LEASES - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease expenses | ¥ 35,738 | ¥ 24,255 | ¥ 22,886 |
Short-term leases expense | ¥ 6,511 |
LEASES - Summary of supplementa
LEASES - Summary of supplemental consolidated balance sheet information related to leases (Detail) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Summary Of Supplemental Consolidated Balance Sheet Information Related To Leases [Line Items] | |
Operating leases right-of-use assets | ¥ 37,215 |
Current portion of lease liabilities | 2,735 |
Non-current portion of lease liabilities | 32,480 |
Total operating lease liabilities | ¥ 35,215 |
Weighted average remaining lease term (in years) | 1 year 2 months 12 days |
Weighted average discount rate | 4.75% |
LEASES - Summary of cash flow i
LEASES - Summary of cash flow information related to leases (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Cash paid for amounts included in measurement of liabilities: | |
Operating cash flows from operating leases | ¥ 28,319 |
Non-cash right-of-use assets in exchange for new lease liabilities: | |
Operating leases | ¥ 15,986 |
LEASES - Summary of maturities
LEASES - Summary of maturities of lease payments (Detail) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | ¥ 33,430 |
2021 | 2,746 |
2022 and thereafter | 0 |
Total lease payment | 36,176 |
Less imputed interest | (961) |
Total | ¥ 35,215 |
LEASES - Summary of Future min
LEASES - Summary of Future minimum lease payments (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | ¥ 23,901 | |
2020 | 22,955 | |
2021 | 3,826 | |
2022 and thereafter | 0 | |
Total | ¥ 50,682 | ¥ 50,682 |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Summary of transactions with and amounts due from and due to related parties (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | ¥ 106,348 | ¥ 133,165 | ¥ 255,122 | |||
Services provided to related parties | 1,761 | 0 | 0 | |||
Loans to related parties | 123,947 | $ 17,804 | 11,550 | |||
Loans from related parties | 230 | $ 33 | 70,765 | 13,876 | ||
Amounts due from related parties | ||||||
Amounts due from related parties | 130,722 | $ 18,777 | ||||
Amounts due to related parties | ||||||
Amounts due to related parties | 872 | 84,509 | $ 125 | |||
Shanghai Jiayin Zhuoyue Wealth Management Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 81,206 | 77,984 | 106,256 | |||
Amounts due to related parties | ||||||
Amounts due to related parties | 722 | 8,199 | ||||
Shanghai Shilupan Technology Co., Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 7,863 | 17,202 | ||||
Amounts due to related parties | ||||||
Amounts due to related parties | 2,076 | |||||
Shanghai Jiayin Finance Services Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 8,280 | 13,806 | ||||
Loans to related parties | 909 | |||||
Amounts due to related parties | ||||||
Amounts due to related parties | 150 | |||||
Jiayin Credit Investigation Service Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 196 | 10,513 | ¥ 2,420 | |||
Loans from related parties | 80 | 70,765 | 13,876 | |||
Amounts due from related parties | ||||||
Amounts due from related parties | 131 | |||||
Amounts due to related parties | ||||||
Amounts due to related parties | 70,399 | |||||
Kailiantong Payment Service Co., Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 2,255 | 8,065 | ||||
Services provided to related parties | 1,761 | |||||
Amounts due from related parties | ||||||
Amounts due from related parties | 1,564 | |||||
Amounts due to related parties | ||||||
Amounts due to related parties | 3,835 | |||||
Jirongyun (Shanghai) Enterprise Development Co., Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Loans to related parties | 3,850 | |||||
Jiayin (Shanghai) Finance Information Service Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 6,548 | 2,459 | 146,446 | |||
Shanghai Jiajie Assets Management Co., Ltd | ||||||
Amounts due from related parties | ||||||
Amounts due from related parties | 599 | |||||
Shanghai Niwodai Finance Information Service Co., Ltd | ||||||
Amounts due from related parties | ||||||
Amounts due from related parties | 124,862 | |||||
China Smartpay Group Holdings Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Loans to related parties | 119,924 | |||||
Amounts due from related parties | ||||||
Amounts due from related parties | 1,050 | |||||
GAYANG (Hong Kong) Co., Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Loans to related parties | 1,716 | |||||
Amounts due from related parties | ||||||
Amounts due from related parties | 800 | |||||
SG Fintech Joint Stock Company | ||||||
Related Party Transaction [Line Items] | ||||||
Loans to related parties | 598 | |||||
Amounts due from related parties | ||||||
Amounts due from related parties | 1,716 | |||||
Geerong Yun (Shanghai) Enterprise Development Co., Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided by related parties | 0 | 3,136 | ¥ 0 | |||
Jiayin Financial Leasing (Shanghai) Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Loans from related parties | 150 | |||||
Shanghai Jiajie Asset Management Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Loans to related parties | ¥ 800 | ¥ 7,700 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Summary of transactions with and amounts due from and due to related parties (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Related Party Transaction [Line Items] | ||
Loans to related party | ¥ 130,722,000 | $ 18,777 |
China Smartpay | ||
Related Party Transaction [Line Items] | ||
Loans | 119,924,000 | $ 17,225 |
Loans to related party | ¥ 124,862,000 | |
Interest Rate On Loan Receivable | 8.00% | 8.00% |
Interest receivable | ¥ 4,938,000 | |
Principal Amount Due From Related Parties | 119,924,000 | |
SG Fintech | ||
Related Party Transaction [Line Items] | ||
Loans | ¥ 598,000 | $ 86 |
Interest Rate On Loan Receivable | 0.50% | 0.50% |
Loan pricipal amount | ¥ 598 | |
Interest receivable | ¥ 1 |
RESTRICTED NET ASSETS - Additio
RESTRICTED NET ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Net Assets [Abstract] | |||
Minimum percentage of after tax profit to be allocated to statutory reserve | 10.00% | ||
Percentage of registered capital where entity has the right to discontinue allocations to the statutory reserve | 50.00% | ||
Amounts restricted that include paid in capital and statutory reserve funds, as determined pursuant to PRC GAAP | ¥ 738,494 | ¥ 217,199 | ¥ 217,199 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - HKD ($) | Mar. 13, 2020 | Dec. 31, 2019 |
Subsequent event [Line Items] | ||
Equity ownership percent | 20.00% | |
Subsequent event [Member] | ||
Subsequent event [Line Items] | ||
Purchase Consideration | $ 105,000,000 | |
Subsequent event [Member] | MrDinggui Yan [Member] | China Smart pay [Member] | ||
Subsequent event [Line Items] | ||
Equity ownership percent | 29.80% | |
Subsequent event [Member] | Keen Best [Member] | ||
Subsequent event [Line Items] | ||
Equity Percent Acquired | 35.00% | |
Subsequent event [Member] | Keen Best [Member] | Union Ever new Investment Limited [Member] | ||
Subsequent event [Line Items] | ||
Equity ownership percent | 100.00% |
FINANCIAL STATEMENTS SCHEDULE_3
FINANCIAL STATEMENTS SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 122,149 | $ 17,546 | ¥ 41,441 | ¥ 606,097 |
Short-term investments | 69,618 | 10,000 | ||
Amounts due from related parties | 130,722 | 18,777 | ||
Prepaid and other current assets | 91,002 | 13,072 | 88,234 | |
TOTAL ASSETS | 701,072 | 100,705 | 801,879 | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 158,705 | 22,800 | 201,007 | |
TOTAL LIABILITIES | 1,442,671 | 207,229 | 2,453,885 | |
Equity | ||||
Additional paid-in capital | 777,408 | 111,668 | 395,472 | |
Accumulated deficit | (1,519,731) | (218,296) | (2,047,478) | |
Other Comprehensive Income | 469 | 67 | ||
Total Jiayin Group shareholder's deficit | (741,854) | (106,561) | (1,652,006) | |
TOTAL LIABILITIES AND DEFICIT | 701,072 | 100,705 | 801,879 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 27,223 | 3,910 | ||
Short-term investments | 69,618 | 10,000 | ||
Amounts due from subsidiaries and VIEs | 44,695 | 6,420 | ||
Amounts due from related parties | 124,862 | 17,935 | ||
Prepaid and other current assets | 1,117 | 160 | ||
Total current assets | 267,515 | 38,425 | ||
Investments in subsidiaries and VIEs | (1,003,436) | (144,135) | (1,652,006) | |
TOTAL ASSETS | (735,921) | (105,710) | (1,652,006) | |
Current liabilities | ||||
Accrued expenses and other current liabilities | 5,933 | 851 | ||
TOTAL LIABILITIES | 5,933 | 851 | ||
Equity | ||||
Ordinary shares | 0 | 0 | 0 | |
Additional paid-in capital | 777,408 | 111,668 | 395,472 | |
Accumulated deficit | (1,519,731) | (218,296) | (2,047,478) | |
Other Comprehensive Income | 469 | 67 | ||
Total Jiayin Group shareholder's deficit | (741,854) | (106,561) | (1,652,006) | |
TOTAL LIABILITIES AND DEFICIT | ¥ (735,921) | $ (105,710) | ¥ (1,652,006) |
FINANCIAL STATEMENTS SCHEDULE_4
FINANCIAL STATEMENTS SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Operating cost and expenses: | ||||
General and administrative | ¥ (230,248) | $ (33,074) | ¥ (150,465) | ¥ (95,597) |
Total operating cost and expanses | 1,695,507 | 243,546 | 2,196,734 | 1,564,189 |
Loss from operations | 534,669 | 76,799 | 685,206 | 686,661 |
Interest income | 5,720 | 822 | 169 | 1,922 |
Other income, net | 23,425 | 3,364 | 20,298 | 12,609 |
Income tax expense | 37,007 | 5,315 | 93,915 | 161,647 |
Other comprehensive income, net of tax | ||||
Change in cumulative foreign currency translation adjustment | 471 | 68 | ||
Other comprehensive income | 471 | 68 | ||
Comprehensive income | 528,216 | 75,872 | 611,758 | 539,545 |
Parent Company | ||||
Operating cost and expenses: | ||||
General and administrative | (2,886) | (415) | ||
Total operating cost and expanses | (2,886) | (415) | ||
Loss from operations | (2,886) | (415) | ||
Interest income | 4,910 | 705 | ||
Other income, net | 1 | |||
Income before taxes and income from equity in subsidiaries and VIEs | 2,025 | 290 | ||
Income tax expense | 0 | 0 | ||
Equity in earnings of subsidiaries and VIEs | 525,722 | 75,515 | 611,758 | 539,545 |
Net income | 527,747 | 75,805 | 611,758 | 539,545 |
Other comprehensive income, net of tax | ||||
Change in cumulative foreign currency translation adjustment | 469 | 67 | ||
Other comprehensive income | 469 | 67 | ||
Comprehensive income | ¥ 528,216 | $ 75,872 | ¥ 611,758 | ¥ 539,545 |
FINANCIAL STATEMENTS SCHEDULE_5
FINANCIAL STATEMENTS SCHEDULE I - CONSOLIDATED STATEMENTS OF COMPANY CASH FLOW STATEMENTS (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Cash flows from operating activities | |||||
Net income | ¥ 527,747 | $ 75,805 | ¥ 611,758 | ¥ 539,545 | |
Adjustments to reconcile net income to net cash flows from operating activities: | |||||
Depreciation and amortization | 17,710 | 2,544 | 11,300 | 4,098 | |
Changes in operating assets and liabilities: | |||||
Amount due from/to related parties | 10,100 | 1,451 | 500,845 | 68,564 | |
Prepaid expenses and other current assets | (35,186) | (5,054) | 31,242 | (2,840) | |
Accrued expenses and other current liabilities | 158,705 | 201,007 | $ 22,800 | ||
Net cash used in operating activities | 26,291 | 3,777 | (228,368) | 104,752 | |
Cash flows from investing activities | |||||
Loans to a related party | 123,947 | 17,804 | 11,550 | ||
Purchase of short-term investment | (71,477) | (10,267) | |||
Net cash used in investing activities | (234,178) | (33,638) | (16,423) | 61,215 | |
Cash flows from financing activities | |||||
Net proceeds from issuance of ordinary shares | 243,629 | 34,995 | |||
Net cash provided by financing activities | 244,674 | 35,145 | (433,600) | 13,876 | |
Net decrease in cash and cash equivalents | 39,208 | 5,632 | (678,391) | 179,843 | |
Cash, cash equivalents and restricted cash at beginning of the year | 82,941 | 11,914 | 761,332 | 581,489 | |
Cash, cash equivalents and restricted cash at end of the year | 122,149 | 17,546 | 82,941 | 761,332 | |
Parent Company | |||||
Cash flows from operating activities | |||||
Net income | 527,747 | 75,805 | 611,758 | 539,545 | |
Adjustments to reconcile net income to net cash flows from operating activities: | |||||
Share of results of subsidiaries and VIEs | (525,722) | (75,515) | (611,758) | ¥ (539,545) | |
Depreciation and amortization | 2,020 | 290 | |||
Changes in operating assets and liabilities: | |||||
Amount due from/to related parties | (4,938) | (709) | |||
Amounts due from subsidiaries and VIEs | (44,695) | (6,420) | |||
Prepaid expenses and other current assets | (3,137) | (451) | |||
Accrued expenses and other current liabilities | 5,933 | $ 851 | |||
Net cash used in operating activities | (42,792) | (6,149) | |||
Cash flows from investing activities | |||||
Loans to a related party | (119,924) | (17,225) | |||
Purchase of short-term investment | (71,477) | (10,267) | |||
Net cash used in investing activities | (191,401) | (27,492) | |||
Cash flows from financing activities | |||||
Net proceeds from issuance of ordinary shares | 255,928 | 36,762 | |||
Net cash provided by financing activities | 255,928 | 36,762 | |||
Effect of foreign exchange rate changes on cash and cash equivalents | 5,488 | 789 | |||
Net decrease in cash and cash equivalents | 27,223 | 3,910 | |||
Cash, cash equivalents and restricted cash at beginning of the year | 0 | 0 | |||
Cash, cash equivalents and restricted cash at end of the year | ¥ 27,223 | $ 3,910 | 0 | ||
Supplemental disclosure of significant non-cash investing and financing activities: | |||||
Decease in investment in subsidiaries and VIEs for cash dividend paid by a subsidiary on behalf of the parent to the Company's shareholders | ¥ (400,000) |
FINANCIAL STATEMENTS SCHEDULE_6
FINANCIAL STATEMENTS SCHEDULE I - Additional Information (Detail) | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | |
Convenience translation rate per US$1.00 | 6.9618 |