Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
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 | 18th 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, Postal Zip Code | 200122 |
Entity Incorporation, State or Country Code | F4 |
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 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 18th 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, Postal Zip Code | 200122 |
Entity Address, Country | CN |
Contact Personnel Name | Bei Bai |
Local Phone Number | 6190-6826 |
City Area Code | 21 |
Contact Personnel Email Address | baibei@jiayinfintech.cn |
Business Contact Two | |
Document Information [Line Items] | |
Contact Personnel Name | Jin Chen |
Contact Personnel Email Address | chenjin1@jiayinfintech.cn |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 108,100,000 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 108,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
ASSETS | |||
Cash and cash equivalents | ¥ 117,320 | $ 17,980 | ¥ 122,149 |
Restricted cash | 2,000 | 307 | 0 |
Amounts due from related parties | 542 | 83 | 130,722 |
Accounts receivable and contract assets, net (net of allowance for credit losses of RMB 60,679 and nil as of December 31, 2019 and 2020, respectively) | 158,064 | 24,224 | 139,164 |
Loans receivable, net (net of allowance for credit losses of nil and RMB 27,700 as of December 31, 2019 and 2020, respectively) | 31,296 | 4,796 | |
Short-term investment , net | 0 | 69,618 | |
Prepaid expenses and other current assets | 61,289 | 9,393 | 91,002 |
Deferred tax assets , net | 40,935 | 6,274 | 68,292 |
Property and equipment , net | 19,449 | 2,981 | 39,084 |
Right-of-use assets | 6,926 | 1,061 | 37,215 |
Long-term investment | 87,551 | 13,418 | 3,826 |
TOTAL ASSETS | 525,372 | 80,517 | 701,072 |
Liabilities including amounts of the consolidated VIEs without recourse to the Parent Company (Note 2(b)): | |||
Payroll and welfare payables | 58,288 | 8,933 | 48,524 |
Amounts due to related parties | 8,785 | 1,346 | 872 |
Refund liabilities | 180,104 | ||
Tax payables | 279,383 | 42,817 | 179,421 |
Accrued expenses and other current liabilities | 70,954 | 10,875 | 158,705 |
Other payable related to the disposal of Shanghai Caiyin | 566,532 | 86,825 | 839,830 |
Lease liabilities | 5,195 | 796 | 35,215 |
TOTAL LIABILITIES | 989,137 | 151,592 | 1,442,671 |
Commitments and Contingencies (Note 15) | |||
SHAREHOLDERS’ DEFICIT | |||
Additional paid-in capital | 818,042 | 125,370 | 777,408 |
Accumulated deficit | (1,266,848) | (194,153) | (1,519,731) |
Accumulated other comprehensive income (loss) | (12,817) | (1,964) | 469 |
Total Jiayin Group shareholder’s deficit | (461,623) | (70,747) | (741,854) |
Noncontrolling interests | (2,142) | (328) | 255 |
TOTAL SHAREHOLDERS’ DEFICIT | (463,765) | (71,075) | (741,599) |
TOTAL LIABILITIES AND DEFICIT | 525,372 | 80,517 | 701,072 |
Class A Ordinary shares | |||
SHAREHOLDERS’ DEFICIT | |||
Class A ordinary shares (US$ 0.000000005 par value; 100,100,000 and 108,100,000 shares issued and outstanding as of December 31, 2019 and 2020, respectively)1 | 0 | 0 | 0 |
TOTAL SHAREHOLDERS’ DEFICIT | 0 | 0 | |
Class B Ordinary shares | |||
SHAREHOLDERS’ DEFICIT | |||
Class A ordinary shares (US$ 0.000000005 par value; 100,100,000 and 108,100,000 shares issued and outstanding as of December 31, 2019 and 2020, respectively)1 | 0 | $ 0 | 0 |
TOTAL SHAREHOLDERS’ DEFICIT | ¥ 0 | ¥ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2020CNY (¥)shares |
Business Acquisition [Line Items] | |
Loans receivable, allowance for credit losses | ¥ | ¥ 27,700 |
Class A Ordinary shares | |
Business Acquisition [Line Items] | |
Ordinary shares, shares authorized | 10,000,000,000,000 |
Ordinary shares, shares issued | 108,100,000 |
Ordinary shares, shares outstanding | 108,100,000 |
Class B Ordinary shares | |
Business Acquisition [Line Items] | |
Ordinary shares, shares authorized | 10,000,000,000,000 |
Ordinary shares, shares issued | 108,000,000 |
Ordinary shares, shares outstanding | 108,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net revenue (including revenue from related parties of nil, RMB 1,761, and RMB 1,761 for 2018, 2019 and 2020, respectively) | ¥ 1,300,160 | $ 199,258 | ¥ 2,230,176 | ¥ 2,881,940 |
Operating cost and expenses: | ||||
Origination and servicing | (239,199) | (36,659) | (425,565) | (401,679) |
Sales and marketing | (375,063) | (57,481) | (606,049) | (726,582) |
General and administrative | (154,963) | (23,749) | (230,248) | (150,465) |
Research and development | (151,550) | (23,226) | (201,404) | (184,302) |
Allowance for uncollectible receivables, contract assets, loans receivable and others | (77,278) | (11,843) | (232,241) | (265,978) |
Provision for assets and liabilities from the investor assurance program | ¥ | (467,728) | |||
Total operating cost and expenses | (998,053) | (152,958) | (1,695,507) | (2,196,734) |
Income from operations | 302,107 | 46,300 | 534,669 | 685,206 |
Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin | 117,021 | 17,934 | ||
Impairment of short-term investment | (67,169) | (10,294) | ||
Interest income | 7,716 | 1,183 | 5,720 | 169 |
Other income, net | 6,711 | 1,029 | 23,425 | 20,298 |
Income before taxes and income from investment in affiliates | 366,386 | 56,152 | 563,814 | 705,673 |
Income tax expense | (108,811) | (16,676) | (37,007) | (93,915) |
Income (loss) from investment in affiliates | (7,509) | (1,151) | 378 | |
Net income | 250,066 | 38,325 | 527,185 | 611,758 |
Net loss attributable to noncontrolling interest shareholders | (2,817) | (432) | (562) | |
Net income attributable to Jiayin Group Inc. | ¥ 252,883 | $ 38,757 | ¥ 527,747 | ¥ 611,758 |
Net income per share: | ||||
- Basic | (per share) | ¥ 1.17 | $ 0.18 | ¥ 2.51 | ¥ 3.06 |
- Diluted | (per share) | ¥ 1.17 | $ 0.18 | ¥ 2.51 | ¥ 3.06 |
Weighted average shares used in calculating net income per share: | ||||
- Basic | 216,100,000 | 216,100,000 | 210,409,863 | 200,000,000 |
- Diluted | 216,100,000 | 216,100,000 | 210,409,863 | 200,000,000 |
Net income | ¥ 250,066 | $ 38,325 | ¥ 527,185 | ¥ 611,758 |
Other comprehensive income, net of tax of nil | ||||
Foreign currency translation adjustments | (13,366) | (2,048) | 471 | |
Comprehensive income | 236,700 | 36,277 | 527,656 | 611,758 |
Comprehensive loss attributable to noncontrolling interests | (2,897) | (444) | (560) | |
Total comprehensive income attributable to Jiayin Group Inc. | ¥ 239,597 | $ 36,721 | ¥ 528,216 | ¥ 611,758 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Revenue from Related Parties | ¥ 6,209 | ¥ 1,761 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Class A [Member]CNY (¥)shares | Common Class B [Member]CNY (¥)shares | Additional paid-in capitalCNY (¥) | Accumulated deficitCNY (¥) | Accumulated other comprehensive income (loss)CNY (¥) | Noncontrolling interestCNY (¥) |
Beginning Balance at Dec. 31, 2017 | ¥ (1,931,542) | ¥ 0 | ¥ 0 | ¥ 327,694 | ¥ (2,259,236) | |||
Beginning 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 | ¥ 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 | 527,747 | (562) | |||||
Foreign currency translation adjustments | 471 | ¥ 469 | 2 | |||||
Share-based compensation | 147,582 | 147,582 | ||||||
Ending Balance at Dec. 31, 2019 | (741,599) | ¥ 0 | ¥ 0 | 777,408 | (1,519,731) | 469 | 255 | |
Ending Balance (in shares) at Dec. 31, 2019 | shares | 100,100,000 | 116,000,000 | ||||||
Capital contribution from noncontrolling interest shareholders | 500 | 500 | ||||||
Net income | 250,066 | $ 38,325 | 252,883 | (2,817) | ||||
Foreign currency translation adjustments | (13,366) | (2,048) | (13,286) | (80) | ||||
Share-based compensation | 30,652 | 30,652 | ||||||
Exercise of share options | 6,982 | 6,982 | ||||||
Business combination under common control | 3,000 | 3,000 | ||||||
Conversion of Class B Ordinary Share to Class A Ordinary Share | 0 | ¥ 0 | ¥ 0 | |||||
Convert Class B Ordinary Share to Class A Ordinary Share (in shares) | shares | 8,000,000 | (8,000,000) | ||||||
Ending Balance at Dec. 31, 2020 | ¥ (463,765) | $ (71,075) | ¥ 0 | ¥ 0 | ¥ 818,042 | ¥ (1,266,848) | ¥ (12,817) | ¥ (2,142) |
Ending Balance (in shares) at Dec. 31, 2020 | shares | 108,100,000 | 108,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net income for the year | ¥ 250,066 | $ 38,325 | ¥ 527,185 | ¥ 611,758 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Allowance for uncollectible receivables, contract assets, loans receivable and others | 77,278 | 11,843 | 232,241 | 265,978 |
Share-based compensation | 30,652 | 4,698 | 147,582 | 67,778 |
Depreciation and amortization | 23,158 | 3,549 | 17,710 | 11,300 |
Gain from disposal of property, equipment and software | (18) | |||
(Income) Loss from investment in affiliates | 7,509 | 1,151 | (378) | |
Impairment of short-term investment | 67,169 | 10,294 | ||
Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin | (117,021) | (17,934) | ||
Business combination under common control | 3,000 | 460 | ||
Changes in operating assets and liabilities: | ||||
Assets from the investor assurance program | 5,340 | 264,751 | ||
Accounts receivable and contract assets | (224,408) | (34,392) | (82,824) | (6,616) |
Loans receivable | (58,982) | (9,039) | ||
Prepaid expenses and other current assets | 26,538 | 4,067 | (35,186) | 31,242 |
Amount due from/to related parties | 10,039 | 1,539 | 10,100 | 500,845 |
Deferred tax assets | 27,357 | 4,193 | (61,654) | (17,637) |
Operating lease right-of-use assets | 30,289 | 4,642 | 9,626 | |
Liabilities from the investor assurance program | (840,472) | (1,470,052) | ||
Other guarantee liabilities | (4,060) | (697,168) | ||
Payroll and welfare payables | 9,764 | 1,496 | (60,374) | 5,176 |
Tax payables | 99,962 | 15,320 | 108,055 | 218,187 |
Refund liabilities | (180,104) | (27,602) | 15,505 | (71,613) |
Accrued expenses and other current liabilities | (87,751) | (13,448) | 47,692 | 57,721 |
Operating lease liabilities | (30,020) | (4,601) | (9,797) | |
Net cash (used in) provided by operating activities | (35,505) | (5,439) | 26,291 | (228,368) |
Cash flows from investing activities | ||||
Purchase of property, equipment and software | (848) | (130) | (27,608) | (16,889) |
Investments in equity investees | (3,378) | (518) | (3,540) | |
Disposal of a subsidiary, net of cash disposed of RMB 7,606 | (7,606) | |||
Purchase of short-term investment | (71,477) | |||
Sale of property, equipment and software | 1 | 466 | ||
Loans to related parties | 79 | 12 | (123,947) | (11,550) |
Repayments from related parties | 37,372 | 5,728 | 11,550 | |
Loans to third parties | (14,000) | |||
Repayments from loan to third parties | 14,000 | |||
Net cash (used in) provided by investing activities | 33,226 | 5,092 | (234,178) | (16,423) |
Cash flows from financing activities | ||||
Loans from related parties | 3,113 | 477 | 230 | 70,765 |
Contribution from noncontrolling shareholders of subsidiaries | 500 | 77 | 815 | |
Repayments to related parties | (104,365) | |||
Dividend distributed to shareholders | (400,000) | |||
Proceeds from exercise of options | 6,982 | 1,070 | ||
Net proceeds from issuance of ordinary shares, net of issuance cost of RMB 30,234 | 243,629 | |||
Net cash (used in) provided by financing activities | 10,595 | 1,624 | 244,674 | (433,600) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (11,145) | (1,710) | 2,421 | |
Net change in cash, cash equivalents and restricted cash | (2,829) | (433) | 39,208 | (678,391) |
Cash, cash equivalents and restricted cash at beginning of the year | 122,149 | 18,720 | 82,941 | 761,332 |
Cash, cash equivalents and restricted cash at end of the year | 119,320 | 18,287 | 122,149 | 82,941 |
Supplemental disclosure of cash flow information: | ||||
Income taxes paid, net | 162 | 25 | 55,581 | 33,773 |
Supplemental disclosure of non-cash investing activities: | ||||
Disposal consideration settled by service fee collected on behalf of the Company (see Note 8) | 156,276 | 23,950 | 238,857 | |
Investment consideration settled by loan due from related party | (91,957) | (14,093) | ||
Reconciliation to amounts on consolidated balance sheets | ||||
Cash and cash equivalents | 117,320 | 17,980 | 122,149 | 41,441 |
Restricted cash | 2,000 | 307 | 41,500 | |
Cash, cash equivalents and restricted cash at end of the year | ¥ 119,320 | $ 18,287 | ¥ 122,149 | ¥ 82,941 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Statement Of Cash Flows [Abstract] | |
Disposal of a subsidiary, net of cash disposed | ¥ 7,606 |
Net proceeds from issuance of ordinary shares, net of issuance cost | ¥ 30,234 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
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 institutional funding partners and individual investors with borrowers through a proprietary internet platform. 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. Since the third quarter of 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(k). During 2020, the Company was actively expanding business in overseas markets. The Company operates lending business by using its own funds in Indonesia and Mexico to extend small credit loans to individual borrowers. 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. Shanghai Caiyin deemed as the variable interest entity (see Note 2(b)) of the Company started from 2015 to 2019, provided the guarantee service to the loans funded by individual investors facilitated through Niwodai Internet. Such guarantee service was ceased since April 28, 2018. 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. The Company recorded a guarantee liability in connection with the transaction of RMB 2.9 billion as “other guarantee liabilities” in the consolidated balance sheet related to the acquisition. The liability has fully depleted in 2019. 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. 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. 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., Ltd. (“Geerong Yunke”). On September 10, 2019, Geerong Yunke conducted a business combination under common control with Geerong Yun (Shanghai) Enterprise Development Co., Ltd. (formerly known as “Jirongyun (Shanghai) Enterprise Development Co., Ltd”,”Geerong Yun”) as both the Geerong Yunke and Geerong Yun were controlled by Mr. Yan. The combination has been retrospectively reflected in the financial statements from the beginning of 2019, but not to prior periods as the impact was not material. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued 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. As of December 31, 2020 the Parent Company’s significant subsidiaries and its consolidated VIEs are as follows: Name Date of incorporation/ establishment or acquisition Place of incorporation/ establishment Percentage of direct or indirect ownership Principal activities 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 Shanghai Chuangzhen Software Co., Ltd. April 2020 Shanghai 100% Technology service Aguila Information, S.A.P.I. de C.V. January 2020 Mexico 51% Lending business PT. Jayindo Fintek Pratama April 2020 Indonesia 85% Lending business VIEs Shanghai Jiayin Finance Technology Co., Ltd. June 2015 Shanghai 100% Technology service Shanghai Jiajie Internet Finance Information Services Co., Ltd. July 2019 Shanghai 100% Technology development and consumer finance services 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, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation 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 and contract assets, loans receivable, 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, tax payables, accrued expenses and other current liabilities, and current portion of lease liabilities by RMB 46,899 as of December 31, 2020. Although the Company had the net cash outflows from operating activities was RMB 35,505 for the year ended December 31, 2020 the net income was RMB 250,066 for the years ended December 31, 2020. As of December 31, 2020, the Company had shareholders’ deficit of RMB 461,623. As of December 31, 2020, the Company had cash and cash equivalents of RMB 117,320. 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 existing cash and cash equivalents and current assets, and cash flow projections from operating activities, the Company believes that it will be able to meet its payment obligations and other commitments for at least the next 12 months. (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 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 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. Pursuant to this amendment agreement entered between Niwodai Internet and Shanghai Caiyin as part of the business transformation of the Company, 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 8). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued 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 to exercise all of his or her rights as a shareholder of Jiayin Finance including, but not limited to, the right (1) to make and sign the relevant shareholders’ general meeting decision on behalf of the shareholders of Jiayin Finance; (2) in accordance with the law and Jiayin Finance’s Charter of shareholders exercise the right to enjoy all the rights of shareholders , including but not limited to the right of shareholders to vote, sell or transfer or pledge or dispose of all or any part of Jiayin Finance’s shares; and (3) designate and appoint the legal representative, chairman, director, supervisor, general manager and other senior management of Jiayin Finance as the authorized representative of the company. This power of attorney is irrevocable and continues to be in force during the period when the authorized person is a shareholder of WFOE, from the date of signature of this power of attorney. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued The VIE Arrangement with Shanghai Kunjia, the WFOE - continued 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued The VIE Arrangement with Shanghai Kunjia, the WFOE - continued 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, 2019 2020 RMB RMB Cash and cash equivalents 54,602 12,469 Restricted cash — 2,000 Amounts due from related parties 1,651 3 Accounts receivable, net 110,219 9 Prepaid expenses and other current assets 66,722 29,676 Deferred tax assets, net 54,973 17,010 Property and equipment, net 38,303 3,582 Right-of-use assets 36,534 341 TOTAL ASSETS 363,004 65,090 Payroll and welfare payables 29,386 21,755 Amounts due to related parties 722 4,559 Refund liabilities 180,104 — Tax payables 164,444 232,730 Accrued expenses and other current liabilities 121,319 24,118 Other payable related to the disposal of Shanghai Caiyin 839,830 566,532 Lease liabilities 34,620 170 TOTAL LIABILITIES 1,370,425 849,864 Year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenue 2,881,940 2,151,165 624,868 Operating income 685,206 583,741 230,415 Net income 611,758 571,227 254,283 Net cash (used in) provided by operating activities (228,368 ) 19,465 (40,071 ) Net cash used in investing activities (16,423 ) (35,505 ) (62 ) Net cash used in financing activities (433,600 ) (12,299 ) — The VIEs contributed 100%, 96% and 48% of the Company’s consolidated revenue for years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the VIEs accounted for an aggregate of 52% and 12% of the consolidated total assets, and 95% and 86% 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued The VIE Arrangement with Shanghai Kunjia, the WFOE - continued 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 16 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 loans receivable, valuation allowances for deferred tax assets, valuation of share-based awards, 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 and contract assets, loans receivable, 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 and 2020, 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (e) Certain risks and concentrations Financial instrument that potentially exposes the Company to significant concentration of credit risk primarily includes cash and cash equivalents, restricted cash, accounts receivable and contract assets, loans receivable, and amounts due from related parties. As of December 31, 2019 and 2020, there were 64% and 53% of the Company’s cash and cash equivalents held in major financial institutions located in the PRC, respectively, and the rest were held in overseas major financial institutions which management considers to be of high credit quality. Accounts receivable and contract assets is typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable and contract assets is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. The Company believes that there is no significant credit risk associated with amounts due from related parties. Credit risk of loans receivable is controlled by the application of credit approvals, credit limits and monitoring procedures. No customer represented greater than 10% or more of the total net revenues or receivables for the year ended December 31, 2019. For the year ended December 31, 2020, Customer A and B contributed 17% and 13% of total net revenue of the Company, respectively. As of December 31, 2020, Customer C and A accounted for 24% and 14% of accounts receivable and contract assets, respectively. (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 and restricted cash denominated in RMB amounted to RMB 78,296 and RMB 63,197 as of December 31, 2019 and 2020, respectively. (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 Accounting Standard Codification (“ASC”) Topic 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, 2020 are included solely for the convenience of the readers and have been made at the rate of US$1.00=RMB 6.5250 (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 ) Restricted cash Restricted cash represents restricted deposit requested by custodian bank for business purpose. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (k ) 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 platform, 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 were current. For the loans facilitated under the investor assurance program managed by Shanghai Caiyin, the Company transferred cash to the restricted cash accounts to fund the investor assurance program when the balance of the investor assurance fund was depleted. At the loan inception, the Company recorded liability from investor assurance program in accordance with ASC Topic 460-10, which incorporates the expectation of potential future payments under the guarantee and took into account both non-contingent and contingent aspects of the guarantee. 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. 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 Company no longer provides any form of guarantee for new loans facilitated through the platform 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). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (k) Investor Assurance Program - continued 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. 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. Investor assurance program managed by independent third party 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. 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 to act as 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 years of 2019 and 2020. As of December 31, 2019 and 2020, the outstanding loan balance for which the Company provides secondary guarantee was RMB 487,216 and RMB 1,586,610, respectively. (l) Short term investment 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (m) Current Expected Credit Losses Prior to January 1, 2020, the Company applied incurred loss methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. On January 1, 2020, the Company adopted FASB ASC Topic 326 – “Financial Instruments – Credit Losses” (“ASC Topic 326”) which replaces the incurred loss methodology with the current expected credit loss (“CECL”) methodology. The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. The Company adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets. The adoption of ASC Topic 326 has no impact on the Group’s retained earnings as of January 1, 2020. Results for reporting periods beginning after January 1, 2020 are presented under ASC Topic 326 while prior periods continue to be reported in accordance with previously applicable U.S. GAAP. The Company’s in-scope assets are primarily loans receivable and accounts receivable and contract assets from customers. In establishing the allowance for loans receivable, the Company considers historical losses, delinquency rate and other factors in pooling basis upon the use of the Current Expected Credit Loss Model (“CECL Model”) in accordance with ASC topic 326, Financial Instruments - Credit Losses. The Company writes off loans receivable as a reduction to the allowance for loans receivable when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be n |
SHORT-TERM INVESTMENTS, NET
SHORT-TERM INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Investments [Abstract] | |
SHORT-TERM INVESTMENTS, NET | 3. SHORT-TERM INVESTMENTS, NET 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 US$10,000 with annual interest rate of 8%. The term of the convertible note was one year. Cornerstone was primarily engaged in private equity fund management. The Company had 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. However, with the Cornerstone’s financial situation deterioration, the Company determined that the short term investment was not recoverable and full impairment amounted to RMB 67,169 was provided in the year ended December 31, 2020. As of December 31, 2019 and 2020, the net balance of short-term investment was RMB 69,618 and nil, respectively. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 4. LOANS RECEIVABLE, NET The loans receivable, net consists of the following: As of December 31, 2019 2020 RMB RMB Loans receivable — 58,996 Allowance for credit losses — (27,700 ) Loans receivable, net — 31,296 The following table summarizes the balances of loans receivable by due date as of December 31, 2019 and 2020. As of December 31, 2019 2020 RMB RMB Undue — 23,107 1-14 days past due — 1,412 15 days or greater past due — 6,777 Loans receivable, net — 31,296 The movement of the allowance for credit losses for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB Balance at beginning of the year — — — Current year credit losses — — (27,498 ) Foreign currency exchange — — (202 ) Balance at end of the year — — (27,700 ) |
ACCOUNTS RECEIVABLE AND CONTRAC
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | 5. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET Accounts receivable consists of the following: As of December 31, 2019 2020 RMB RMB Accounts receivable: Receivables for loan facilitation and post-origination service from borrowers 170,898 — Receivables for loan referral service from institutional funding partners 28,945 109,910 Less: allowance for credit losses (60,679 ) — Total accounts receivable 139,164 109,910 The movement of allowance for uncollectible receivables for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year — 28,014 60,679 Current year credit losses 51,430 144,636 49,231 Current year write off (23,416 ) (111,971 ) (109,910 ) Balance at end of the year 28,014 60,679 — Contract assets consists of the following: As of December 31, 2019 2020 RMB RMB Contract assets — 48,154 Less: Allowance for credit losses — — Contract assets, net — 48,154 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 6 . PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the followings: As of December 31, 2019 2020 RMB RMB Leasehold improvement 8,093 8,093 Motor vehicles 1,604 1,993 Electronic equipment 56,068 56,453 Office equipment & furniture 6,868 6,873 Software 1,342 1,407 Total costs 73,975 74,819 Less: accumulated depreciation and amortization (34,891 ) (55,370 ) Property and equipment, net 39,084 19,449 For the years ended December 31, 2018, 2019 and 2020, depreciation expenses were RMB11,300, RMB 17,710 and RMB 20,483 respectively. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 7. LONG-TERM INVESTMENTS On March 13, 2020, the Company, through its subsidiary, Geerong, and another independent purchaser entered into a share purchase agreement with China Smartpay Group Holdings Limited (“China Smartpay”), pursuant to which, among others, Geerong agreed, subject to certain conditions, to acquire 35 ordinary shares of Keen Best Investment Limited (“Keen Best”), representing 35% equity interest in Keen Best, a wholly-owned subsidiary of China Smartpay On September 29, 2020, the Company closed the acquisition of the shares In May 2019, the Company acquired 24.9 378 |
DISPOSAL OF SHANGHAI CAIYIN
DISPOSAL OF SHANGHAI CAIYIN | 12 Months Ended |
Dec. 31, 2020 | |
Other Payable Relates To The Disposal Of Subsidiaries [Abstract] | |
DISPOSAL OF SHANGHAI CAIYIN | 8 . 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)). For the year ended December 31, 2019, no gain or loss was recognized for the transaction. For the year ended December 31, 2020, “Gain from de-recognition of other payable associated with disposal of Shanghai Caiyin” of RMB 117,021 was derived from the release of contingent consideration payable. As of December 31, 2019 and 2020, the payable related to the disposal of Shanghai Caiyin was RMB 839,830 which consisted of fixed consideration payable of RMB 467,744 and contingent consideration payable of RMB 372,085, and RMB 566,532 which consisted of fixed consideration payable of RMB 311,468 and contingent consideration payable of RMB 255,064, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | 9 . SHARE-BASED COMPENSATION The following table presents the classification of the Company’s share-based compensation expenses: Year ended December 31, 2018 2019 2020 RMB RMB RMB Origination and servicing 2,516 10,345 3,167 General and administrative 29,734 80,599 8,870 Research and development 22,820 48,578 10,170 Sales and marketing 12,708 8,060 8,445 Total 67,778 147,582 30,652 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 13,500,000 shares that will be used under the 2016 Plan. The shares were contributed by the Founder, representing 27% of Jiayin 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 2016 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 granted; and establish the terms, conditions and provision of such awards. The 2016 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 Jiayin Finance. In September 2016, Jiayin Finance granted options to acquire certain LLP shares, equivalent of 13,321,500 ordinary shares of Jiayin Finance with the exercise price of RMB 3.5 per share to employees of the Company pursuant to the 2016 Plan. Options have a 4.5-year life and vest at 15%, 25%, 30%, and 30% respectively at March 31, 2017, 2018, 2019 and 2020 respectively. In October 2018, Jiayin Finance granted options to acquire certain LLP shares, equivalent of 2,851,600 ordinary shares of Jiayin Finance with the exercise price of RMB 3.5 per share to employees of the Company pursuant to the 2016 Plan. Options have a 4.5-year life and vest at 15%, 25%, 30%, and 30% respectively at March 31, 2019, 2020, 2021 and 2022 respectively. 9. SHARE-BASED COMPENSATION – continued 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 Plan. 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 capital. Given the shares owned by the LLP for the purpose of the 2016 Plan are existing outstanding shares of Jiayin Finance, the option does not have dilution effect on income per share (see Note 12). In February 2019, the Company adopted the 2019 Share Incentive Plan (“2019 Plan”), effectively upon the completion of the Parent Company’s initial public offering (“IPO”) to replace the 2016 Plan on a 4:1 ratio. The 2019 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 2019 Plan, the Company cancelled 2,377,000 and 1,169,000 share options granted in September 2016 and October 2018, respectively. Total unrecognized share-based compensation expense of RMB 39,390 associated with the cancelled options was immediately recognized in the consolidated statement of comprehensive income upon cancellation for the year ended December 31, 2019. In November, 2019, the Company granted four batches options equivalent of 288,000 share options of Jiayin Group with the exercise price of RMB3.5 per share to employees pursuant to the 2019 Plan. In November, 2020, the Company granted four batches options equivalent of 1,583,000 share options of Jiayin Group with the exercise price of RMB3.5 per share to employees pursuant to the 2019 Plan. The Company uses a binominal pricing model to estimate the fair value of the above options granted under the 2019 Plan. The model requires the input of subjective assumptions including the estimated expected stock price volatility, dividend yield, time to maturity and the exercise multiple. For expected volatilities, as the length of time has been short since Company went to public, the Company has made reference to the historical price volatilities of several comparable companies in the same industry as the Company. 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 following assumptions were applied to estimate the fair value of the options granted in 2016, 2018, 2019 and 2020 at the date of grant: October 2018 November 2019 November 2020 Average risk-free rate of interest 3.32% 1.57%-1.69% 0.23%-0.60% Estimated volatility rate 44.32% 42.86%-45.28% 49.74%-53.91% Exercise multiples 2.8 2.8 2.8 Dividend yield 0.00% 0.00% 0.00% Time to maturity 4.5 years 0-3 years 0-3 years Fair value per underlying ordinary share RMB 88.13 RMB 53.43 RMB 18.33 The weighted average grant date fair value of options granted during the year ended December 31, 2018, 2019 and 2020 was RMB 84.88 per share, RMB 50.36 per share and RMB 14.78 per share, respectively. 9. SHARE-BASED COMPENSATION – continued The summary of the aggregate option activities and information regarding options outstanding for the years ended as of December 31, 2019 and 2020 is as follows: Number of Options (in ‘000s) Weighted Average Exercise Price Weighted Average Remaining Contract Life Aggregate Intrinsic Value RMB Years RMB Options outstanding at December 31, 2019 5,699 3.5 2.51 189,093 Granted 1,583 Exercised (1,981 ) Forfeited (921 ) Options outstanding at December 31, 2020 4,380 3.5 2.63 118,421 Options exercisable at December 31, 2020 2,369 3.5 2.20 56,756 Options vested or expected to be vested at December 31, 2020 4,380 3.5 2.63 118,421 As of December 31, 2020, there was RMB 27,168 in total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted average period of 2.63 years . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10 . INCOME TAXES Income tax expense consists of the following: Year ended December 31, 2018 2019 2020 RMB RMB RMB Current income tax expense: 111,552 168,924 83,216 Deferred income tax (benefit) expense: (17,637 ) (131,917 ) 25,595 Total income tax expense 93,915 37,007 108,811 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, Geerong (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 provision has been made in the consolidated financial statements as it has no assessable income for the years ended December 31, 2018, 2019 and 2020, respectively. PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), the Company’s subsidiaries and VIEs incorporated in the PRC are subject to statutory rate of 25%. High-technology enterprises may obtain a preferential tax rate of 15% provided they meet the related criteria. Niwodai Internet renewed its high-new technology enterprise (“HNTE”) certificate on November 23, 2017, thus Niwodai Internet was entitled to a preferential Enterprise Income Tax (“EIT”) rate of 15% from 2017 to 2019. The Company did not renew the certificate so Niwodai Internet was not qualified as a HNTE and was subject to EIT rate of 25% starting for 2020. Management believes it more-likely-than-not that Shanghai Chuangzhen Software Co., Ltd. will be qualified as an eligible software enterprise before the income tax year-end final settlement in 2020. As a result of this qualification, it is entitled to a tax holiday of a full exemption for year 2020 and 2021 in which its taxable income is greater than zero, followed by a three-year 50% 10 . INCOME TAXES – continued PRC – continued Mexico The Company’s subsidiary incorporated in Mexico is subject to corporate income tax at 30%. Indonesia The Company’s subsidiary incorporated in Indonesia is subject to Indonesia Income (“CIT”) law. In accordance with the CIT law, an Indonesian resident is subject to worldwide income tax. Corporate income tax is calculated based on corporate taxable income (income less deductible expenses / expenses after fiscal adjustment), and the applicable CIT rate is 25%. Based on Government Regulation No.1 Year 2020 Jo No.30 Year 2020, Corporate Income Tax is adjusted from 25% to 22% 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 income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that 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 25%. The Parent Company and its subsidiaries outside the PRC do not have any assessable profits for the years ended December 31, 2018, 2019 and 2020, 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 five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 100 is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. From inception to 2020, the Company is subject to examination of the PRC tax authorities. 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: As of December 31, 2019 2020 RMB RMB Deferred tax assets Payroll and welfare payable 12,131 11,635 Accrued expenses 16,199 10,198 Allowance for uncollectible receivables, contract assets, loans receivable and others 37,932 56,164 Net loss carryforward 13,595 13,495 Liabilities related to customer incentive 44,216 11,435 Gross deferred tax assets 124,073 102,927 Valuation allowances (1,909 ) (4,102 ) Net deferred tax assets 122,164 98,825 Deferred tax liabilities Uncollected revenues (53,872 ) (57,890 ) Total deferred tax liabilities (53,872 ) (57,890 ) Deferred tax assets, net 68,292 40,935 10 . INCOME TAXES – continued Deferred tax assets and liabilities have been offset where the Company has a legally enforceable right to do so, and intends to settle on a net basis. Changes in valuation allowance are as follows: Year Ended December 31, 2020 RMB Balance at beginning of the year (1,909 ) Additions (2,871 ) Reversals 678 Balance at end of the year (4,102 ) The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Company has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. On the basis of this evaluation, valuation allowances of RMB 1,909, and RMB 4,102 have been established for deferred tax assets as of December 31, 2019 and 2020 respectively, based on a more likely than not threshold due to cumulated loss and uncertainty of sufficient profit generated in future years for certain subsidiaries within the Company. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carry forwards period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. At December 31, 2020, tax loss carry-forward amounted to RMB 55,222, and would expire in calendar year 2023 to 2025 if not utilized. 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. 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, 2019 and 2020. The aggregate undistributed earnings of the Company’s PRC subsidiaries that are available for distribution was nil as of December 31, 2019 and 2020. 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, 2019 and 2020. 10 . INCOME TAXES – continued Reconciliations of the differences between PRC statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2018, 2019 and 2020 are as follows: Year Ended December 31, 2018 2019 2020 RMB RMB RMB Statutory income tax rate 25.00 % 25.00 % 25.00 % Non-deductible expense 2.62 % 6.66 % 2.54 % Research and Development expense super deduction (1.44 %) (2.97 %) (0.62 %) Effect of tax holiday (12.87 %) (18.86 %) (2.12 %) Different tax rate of entities operating in other jurisdiction 0.00 % (0.07 %) 4.86 % Valuation allowance 0.00 % 0.32 % 0.61 % Change in tax rate 0.00 % (3.13 %) 0.00 % True up 0.00 % (0.40 %) 0.05 % Effective tax rate 13.31 % 6.55 % 30.32 % The effect of the tax holiday on the income per share is as follows: Year Ended December 31, 2018 2019 2020 RMB RMB RMB Tax saving amount due to HNTE status 90,819 106,516 — Tax saving amount due to Software enterprise — — 7,527 Tax expense amount due to other jurisdiction — (411 ) (17,405 ) Income per share effect-basic and diluted 0.45 0.50 (0.05 ) |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock [Abstract] | |
ORDINARY SHARES | 1 1 . 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 completed a two for one split of ordinary share authorized and outstanding to 20,000 ordinary shares. The share split has been applied retrospectively for all periods presented. On May 10, 2019, the Company completed its IPO on the NASDAQ Global Market. In this offering, 4,025,000 ADSs, representing 16,100,000 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. Upon completion of IPO, the 216,100,000 outstanding ordinary shares with par value of US$0.000000005 per share were split into 100,100,000 Class A ordinary shares and 116,000,000 Class B ordinary shares, with each Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to ten votes on all matters that are subject to shareholder vote. The share split has been applied retrospectively for all periods presented. 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 Parent Company. During the year ended December 31, 2020, 8,000,000 Class B ordinary shares were converted into Class A ordinary shares. |
INCOME PER SHARE
INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
INCOME PER SHARE | 1 2 . 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, 2018 2019 2020 RMB RMB RMB Net income attributable to ordinary shareholders – basic and diluted 611,758 527,747 252,883 Weighted average number of ordinary shares outstanding – basic and diluted 200,000,000 210,409,863 216,100,000 Basic and diluted net income per share 3.06 2.51 1.17 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 a |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | 1 3 . LEASES Operating lease assets primarily represents various facilities under non-cancelable operating leases expiring within one to two years. Lease costs are included in origination and servicing expenses, sales and marketing expenses, general and administrative expenses, and research and development expenses, depending on the use of the underlying asset. Operating lease expenses (including fixed lease cost and short-term lease cost) were RMB24,255, RMB35,738 and RMB26,466 for the years ended December 31, 2018, 2019 and 2020, respectively. Total lease expense related to short-term leases was nil for the year ended December 31, 2020. Supplemental consolidated balance sheet information related to leases was as follows: As of December 31, 2019 2020 Operating leases: RMB RMB Operating leases right-of-use assets 37,215 6,926 Current portion of lease liabilities 2,735 3,322 Non-current portion of lease liabilities 32,480 1,873 Total operating lease liabilities 35,215 5,195 Weighted average remaining lease term (in years) 1.2 1.7 Weighted average discount rate 4.75 % 4.75 % Supplemental cash flow information related to leases for the years ended December 31, 2019 and 2020 is as follows: For the year ended December 31, 2019 2020 RMB RMB Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases 28,319 25,665 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 15,986 4,734 1 3 . LEASES - continued Maturities of lease payments by year and in the aggregate, under non-cancellable operating leases with terms in excess of one year as of December 31, 2020 are as follows: RMB 2021 3,462 2022 1,281 2023 and thereafter 663 Total lease payment 5,406 Less imputed interest (211 ) Total 5,195 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 1 4 . 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, 2018, 2019 and December 31, 2020: 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 Name of related parties Relationship with 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 Smartpay Group 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 Limahui Technology Co. Ltd. (“Limahui”) Entity influenced by Mr. Zhang, the director of the Company Subsidiary shareholder The minority shareholders of the subsidiaries of the Company Subsidiary director The director of the subsidiary of the Company The Company entered into the following transactions with its related parties: Year ended December 31, 2018 2019 2020 RMB RMB RMB Services provided by related parties: Jiayin Zhuoyue (1) 77,984 81,206 55,207 Jiayin (Shanghai) (1) 2,459 6,548 9,004 Shanghai Jiayin (2) 13,806 8,280 5,845 Li Mahui (4) — — 425 Kailiantong (3) 8,065 2,255 — Shilupan (5) 17,202 7,863 — Jiayin Credit (6) 10,513 196 — Geerong Yun (7) 3,136 — — Total 133,165 106,348 70,481 Services provided to related parties Kailiantong (3) — 1,761 6,209 Total — 1,761 6,209 14. RELATED PARTY TRANSACTIONS - continued Year ended December 31, 2018 2019 2020 RMB RMB RMB Loans to related parties: Subsidiary shareholder (8) — — 463 Subsidiary director (9) — — 79 China Smartpay (10) — 119,924 — GAYANG (11) — 1,716 — Shanghai Jiayin (11) — 909 — Shanghai Jiajie (11) 7,700 800 — SG Fintech(12) — 598 — Geerong Yun (7) 3,850 — — Total 11,550 123,947 542 Loans from related parties Subsidiary shareholder (13) — — 3,113 Jiayin Financial Leasing (14) — 150 — Jiayin Credit (14) 70,765 80 — Total 70,765 230 3,113 (1) Jiayin Zhuoyue and Jiayin (Shanghai) referred investors and borrowers to the Company and charged referral service fees. (2) Shanghai Jiayin rents office space to the Company and charges other related service fee, which is calculated dependent on its usage of the underlying office space. (3) Kailiantong provides cash payment services to the Company and charges 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. Our Founder, Mr. Dinggui Yan, partially disposed of his investment over China Smartpay in September 2020, and therefore Mr. Dinggui Yan lost the significant influence over China Smartpay thereafter. As Kailiantong was wholly owned by China Smartpay, Kailiantong was no longer deemed as our related party as of October 2020. (4) Limahui primarily provides internet catering service for employees of the Company and charged corresponding service fees. Mr. Zhang has significant influence over Limahui in the first three quarters of 2020. (5) Shilupan provided credit analysis service for the Company and charged corresponding service fees. (6) Jiayin Credit provided credit service to the Company and charged credit service fees. (7) Geerong Yun provided referral services to the Company and charged referral service fees. Geerong Yun was acquired by the company in September 2019 and became our wholly-owned subsidiary thereafter. (8) The amount represents loans to minority shareholders of the subsidiary company Thanh Cong Biz Link Joint Stock Company (“Biz link”) in 2020, for the investment and establishment of the Biz link, which are non-interest bearing, unsecured, and due on demand. (9) The amount represents loans to the minority director of the subsidiary PT. Jayindo Fintek Pratama since November 2020 with principal of RMB 79 and annual interest rate of 6%. The outstanding loan balance will be repaid in 36 equal monthly installments. (10) The Company entered into a loan contract with China Smartpay of RMB119,924(US$17,225) with fixed annual interest rate of 9%. The interest was RMB4,938 for the year ended December 31, 2019 and the interest portion through January to September 2020 was RMB7,570. The outstanding loan balance including principal and interests had been settled with consideration of the acquisition with Keen Best (See Note 7), together with a lump-sum cash payment of RMB37,372 in September 2020. Since October 2020, China Smartpay is no longer a related party of the Company. (11) The amount represents loans which are non-interest bearing, unsecured, and due on demand. 14. RELATED PARTY TRANSACTIONS - continued (12) 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. As of December 31, 2020, all principal and interest have been collected. ( 1 3 ) The amount represents loans from minority shareholders of the subsidiary company Aguila Information, S.A.P.I. de C.V. (“Aguila Information”) in 2020, which results in the balance of amount due to related parties shown as below. Aguila Information entered into an agreement with minority shareholders that the portion of total investment capital which exceeds paid-in capital is deemed as loan to the Company. The loans will be due on March 31, 2021 with annual interest rate of 3%. ( 1 4 ) The amounts represent loans from related parties in the years of 2018, 2019 and 2020 for the daily operation. (1 5 ) Shanghai Zhundian Enterprise Service Co., Ltd.("Shanghai Zhundian")(formerly known as “Shanghai Limahui E-Commerce Co., Ltd”) was a related party controlled by Yan Dinggui, the Chairman of Jiayin Group during the period of January, 2020 to April, 2020. On April 22, 2020, Shanghai Zhundian was acquired by Jiayin Finance, and becomes a wholly-owned subsidiary of Jiayin Group Inc. The consideration is nil, and the Group recorded RMB 3,000 in APIC as it is a combination under common control and the net assets of Shanghai Zhundian on the acquisition date was RMB 3,000. The following table present amounts due from and due to related parties as of December 31, 2019 and 2020: As of December 31, 2019 2020 RMB RMB Amounts due from related parties Subsidiary shareholder — 463 Subsidiary director — 79 China Smartpay 124,862 — GAYANG 1,716 — Shanghai Jiayin 1,564 — Kailiantong 1,050 — Shanghai Jiajie 800 — SG Fintech 599 — Jiayin Credit 131 — Total 130,722 542 Amounts due to related parties Subsidiary shareholder — 3,113 Jiayin Zhuoyue 722 3,442 Shanghai Jiayin — 2,150 Jiayin Financial Leasing 150 — Jiayin Credit — 80 Total 872 8,785 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 and loans from related parties. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 1 5 . COMMITMENTS AND CONTINGENCIES Capital and other commitments The Company did not have significant capital, other commitments or long term obligations as of December 31, 2020. As of December 31, 2020, the fair value of guarantees was not material. See Note 2(k). Contingencies On September 11, 2020, a securities class action complaint was filed against the Company and the Company’s officers and directors in the Supreme Court of the State of New York, County of New York. An amended complaint was filed on February 1, 2021, which added as defendants the underwriters for the Company’s initial public offering. The plaintiff asserted claims under Sections 11 and 15 of the Securities Act of 1933 based on purported misstatements and omissions in Form F-1 registration statement for the Company’s initial public offering. The plaintiff brought his claims individually and on behalf of all other persons who acquired the Company’s American Depositary Shares pursuant and/or traceable to our initial public offering, and seeks compensatory damages, rescission, injunctive relief, and costs and expenses, including attorneys’ fees and expert fees in unidentified amounts. On April 2, 2021, the Company, one of the underwriters for the Company’s initial public offering and certain of the Company’s directors and officers filed a joint motion to dismiss the plaintiff’s amended complaint in its entirety and with prejudice. The plaintiff’s opposition to the motion to dismiss is due June 1, 2021, and the motion is scheduled to be fully briefed on July 16, 2021. As such, the Company is currently not in a position to estimate the possible loss or possible range of loss, if any, associated with the resolution of the lawsuits. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 1 6 . RESTRICTED NET ASSETS The Parent Company’s ability to pay dividends is primarily dependent on the Parent Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the VIEs and subsidiaries of the VIEs incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The consolidated results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Parent Company’s subsidiaries. Under PRC law, the Parent Company’s subsidiaries, VIEs and the subsidiaries of the VIEs located in the PRC (collectively referred as the “PRC entities”) are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The PRC entities are required to allocate at least 10% of their after tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. In addition, the registered capital of the PRC entities is also restricted. Amounts restricted that include paid in capital and statutory reserve funds, as determined pursuant to PRC GAAP, are RMB738,494 and RMB1,031,649 as of December 31, 2019 and 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 1 7 . SUBSEQUENT EVENTS On January 5, 2021, Noble Fintech Pte. Ltd (“Noble Fintech”), a wholly owned subsidiary of the Company entered into a framework acquisition agreement (the “SPA”) with the minority shareholders of the Aguila Information, S.A.P.I. de C.V. (“Aguila Information”), pursuant to which, Noble Fintech agreed to transfer its 6% of the equity interests of Aguila Information to the minority shareholders. Following the completion of the proposed transaction, the equity interest of Aguila Information owned by the Company will decrease from 51% to 45%. As Aguila Information was in net deficit position as of December 31, 2020, the consideration of the transfer was one Mexican Peso. On April 1, 2021, Jiayin Finance, a wholly consolidated variable interest entity of the Company entered into a framework acquisition agreement (the “SPA”) with Shanghai Bweenet Network Technology Co., Ltd. (“Shanghai Bweenet”) and its shareholders, pursuant to which, Jiayin Finance agreed, subject to certain conditions, to subscribe for certain equity interests of Shanghai Bweenet and acquire certain equity interests held by current shareholders of Shanghai Bweenet, for an aggregate consideration of RMB95,000. Following the completion of the proposed transaction, Jiayin Finance will own 95% of the equity interests of Shanghai Bweenet. The consideration will be paid in several installments, subject to certain conditions. The closing of the proposed transaction is subject to the certain customary conditions, including completion of satisfactory due diligence. |
FINANCIAL STATEMENTS SCHEDULE I
FINANCIAL STATEMENTS SCHEDULE I | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
FINANCIAL STATEMENTS SCHEDULE I | JIAYIN GROUP INC. ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (AMOUNT IN THOUSANDS, EXCEPT SHARE AND SHARE RELATED DATA) 2019 2020 RMB RMB US$ Assets Current assets Cash and cash equivalents 27,223 21,213 3,251 Short-term investment ,net 69,618 — — Amounts due from subsidiaries and VIEs 44,695 167,887 25,731 Amounts due from a related party 124,862 — — Prepaid and other current assets 1,117 855 131 Total current assets 267,515 189,955 29,113 Investments in subsidiaries and VIEs (1,003,436 ) (652,193 ) (99,953 ) Total assets (735,921 ) (462,238 ) (70,840 ) Liabilities Current Liabilities Accrued expenses and other current liabilities 5,933 2,385 366 Total liabilities 5,933 2,385 366 Equity Ordinary shares — — — Additional paid-in capital 777,408 815,042 124,911 Accumulated deficit (1,519,731 ) (1,266,848 ) (194,153 ) Accumulated other comprehensive income (loss) 469 (12,817 ) (1,964 ) Total deficit (741,854 ) (464,623 ) (71,206 ) Total liabilities and deficit (735,921 ) (462,238 ) (70,840 ) 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, 2018 2019 2020 RMB RMB RMB US$ Operating cost and expenses: General and administrative — (2,886 ) (6,740 ) (1,033 ) Total operating cost and expenses — (2,886 ) (6,740 ) (1,033 ) Loss from operations — (2,886 ) (6,740 ) (1,033 ) Interest income — 4,910 7,701 1,180 Other income (loss) , net — 1 (67,169 ) (10,294 ) Income before taxes and income from equity in subsidiaries and VIEs — 2,025 (66,208 ) (10,147 ) Income tax expense — — — — Equity in earnings of subsidiaries and VIEs 611,758 525,722 319,091 48,904 Net income 611,758 527,747 252,883 38,757 Other comprehensive income, net of tax Change in cumulative foreign currency translation adjustment — 469 (13,286 ) (2,036 ) Other comprehensive income (loss) — 469 (13,286 ) (2,036 ) Comprehensive income 611,758 528,216 239,597 36,721 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, 2018 2019 2020 RMB RMB RMB US$ Cash flows from operating activities Net income 611,758 527,747 252,883 38,757 Adjustments to reconcile net income to net cash used in operating activities: Share of results of subsidiaries and VIEs (611,758 ) (525,722 ) (319,091 ) (48,904 ) Depreciation and amortization — 2,020 2,675 410 Impairment of short-term investment — — 67,169 10,294 Changes in operating assets and liabilities: Amounts due from a related party — (4,938 ) — — Amounts due from subsidiaries and VIEs — (44,695 ) (35,702 ) (5,471 ) Prepaid and other current assets — (3,137 ) (2,413 ) (370 ) Accrued expenses and other current liabilities — 5,933 (3,548 ) (544 ) Net cash used in operating activities — (42,792 ) (38,027 ) (5,828 ) Cash flows from investing activities Loan to a related party — (119,924 ) — — Purchase of short-term investment — (71,477 ) — — Cash collected from loan to related parties — — 37,372 5,728 Net cash (used in) provided by investing activities — (191,401 ) 37,372 5,728 Cash flows from financing activities Net proceeds from issuance of ordinary shares — 255,928 — — Proceeds from exercise of options — — 6,982 1,070 Net cash provided by financing activities — 255,928 6,982 1,070 Effect of foreign exchange rate changes on cash and cash equivalents — 5,488 (12,337 ) (1,891 ) Net increase (decrease) in cash and cash equivalents — 27,223 (6,010 ) (921 ) Cash and cash equivalents at beginning of year — — 27,223 4,172 Cash and cash equivalents at end of the year — 27,223 21,213 3,251 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 ) — — — 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) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 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 Topic 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, 2019 and 2020, 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, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020 No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation 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 and contract assets, loans receivable, 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, tax payables, accrued expenses and other current liabilities, and current portion of lease liabilities by RMB 46,899 as of December 31, 2020. Although the Company had the net cash outflows from operating activities was RMB 35,505 for the year ended December 31, 2020 the net income was RMB 250,066 for the years ended December 31, 2020. As of December 31, 2020, the Company had shareholders’ deficit of RMB 461,623. As of December 31, 2020, the Company had cash and cash equivalents of RMB 117,320. 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 existing cash and cash equivalents and current assets, and cash flow projections from operating activities, the Company believes that it will be able to meet its payment obligations and other commitments for at least the next 12 months. |
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 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 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. Pursuant to this amendment agreement entered between Niwodai Internet and Shanghai Caiyin as part of the business transformation of the Company, 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 8). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued 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 to exercise all of his or her rights as a shareholder of Jiayin Finance including, but not limited to, the right (1) to make and sign the relevant shareholders’ general meeting decision on behalf of the shareholders of Jiayin Finance; (2) in accordance with the law and Jiayin Finance’s Charter of shareholders exercise the right to enjoy all the rights of shareholders , including but not limited to the right of shareholders to vote, sell or transfer or pledge or dispose of all or any part of Jiayin Finance’s shares; and (3) designate and appoint the legal representative, chairman, director, supervisor, general manager and other senior management of Jiayin Finance as the authorized representative of the company. This power of attorney is irrevocable and continues to be in force during the period when the authorized person is a shareholder of WFOE, from the date of signature of this power of attorney. 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued The VIE Arrangement with Shanghai Kunjia, the WFOE - continued 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued The VIE Arrangement with Shanghai Kunjia, the WFOE - continued 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, 2019 2020 RMB RMB Cash and cash equivalents 54,602 12,469 Restricted cash — 2,000 Amounts due from related parties 1,651 3 Accounts receivable, net 110,219 9 Prepaid expenses and other current assets 66,722 29,676 Deferred tax assets, net 54,973 17,010 Property and equipment, net 38,303 3,582 Right-of-use assets 36,534 341 TOTAL ASSETS 363,004 65,090 Payroll and welfare payables 29,386 21,755 Amounts due to related parties 722 4,559 Refund liabilities 180,104 — Tax payables 164,444 232,730 Accrued expenses and other current liabilities 121,319 24,118 Other payable related to the disposal of Shanghai Caiyin 839,830 566,532 Lease liabilities 34,620 170 TOTAL LIABILITIES 1,370,425 849,864 Year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenue 2,881,940 2,151,165 624,868 Operating income 685,206 583,741 230,415 Net income 611,758 571,227 254,283 Net cash (used in) provided by operating activities (228,368 ) 19,465 (40,071 ) Net cash used in investing activities (16,423 ) (35,505 ) (62 ) Net cash used in financing activities (433,600 ) (12,299 ) — The VIEs contributed 100%, 96% and 48% of the Company’s consolidated revenue for years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the VIEs accounted for an aggregate of 52% and 12% of the consolidated total assets, and 95% and 86% 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (b) Principles of consolidation continued Variable interest entity continued The VIE Arrangement with Shanghai Kunjia, the WFOE - continued 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 16 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 loans receivable, valuation allowances for deferred tax assets, valuation of share-based awards, 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 and contract assets, loans receivable, 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 and 2020, 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 Financial instrument that potentially exposes the Company to significant concentration of credit risk primarily includes cash and cash equivalents, restricted cash, accounts receivable and contract assets, loans receivable, and amounts due from related parties. As of December 31, 2019 and 2020, there were 64% and 53% of the Company’s cash and cash equivalents held in major financial institutions located in the PRC, respectively, and the rest were held in overseas major financial institutions which management considers to be of high credit quality. Accounts receivable and contract assets is typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable and contract assets is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. The Company believes that there is no significant credit risk associated with amounts due from related parties. Credit risk of loans receivable is controlled by the application of credit approvals, credit limits and monitoring procedures. No customer represented greater than 10% or more of the total net revenues or receivables for the year ended December 31, 2019. For the year ended December 31, 2020, Customer A and B contributed 17% and 13% of total net revenue of the Company, respectively. As of December 31, 2020, Customer C and A accounted for 24% and 14% of accounts receivable and contract assets, respectively. |
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 and restricted cash denominated in RMB amounted to RMB 78,296 and RMB 63,197 as of December 31, 2019 and 2020, respectively. |
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 Accounting Standard Codification (“ASC”) Topic 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, 2020 are included solely for the convenience of the readers and have been made at the rate of US$1.00=RMB 6.5250 |
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. |
Restricted cash | ( j ) Restricted cash Restricted cash represents restricted deposit requested by custodian bank for business purpose. |
Investor assurance program | (k ) 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 platform, 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 were current. For the loans facilitated under the investor assurance program managed by Shanghai Caiyin, the Company transferred cash to the restricted cash accounts to fund the investor assurance program when the balance of the investor assurance fund was depleted. At the loan inception, the Company recorded liability from investor assurance program in accordance with ASC Topic 460-10, which incorporates the expectation of potential future payments under the guarantee and took into account both non-contingent and contingent aspects of the guarantee. 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. 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 Company no longer provides any form of guarantee for new loans facilitated through the platform 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). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (k) Investor Assurance Program - continued 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. 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. Investor assurance program managed by independent third party 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. 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 to act as 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 years of 2019 and 2020. As of December 31, 2019 and 2020, the outstanding loan balance for which the Company provides secondary guarantee was RMB 487,216 and RMB 1,586,610, respectively. |
Short term investment | (l) Short term investment 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. |
Current Expected Credit Losses | (m) Current Expected Credit Losses Prior to January 1, 2020, the Company applied incurred loss methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. On January 1, 2020, the Company adopted FASB ASC Topic 326 – “Financial Instruments – Credit Losses” (“ASC Topic 326”) which replaces the incurred loss methodology with the current expected credit loss (“CECL”) methodology. The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. The Company adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets. The adoption of ASC Topic 326 has no impact on the Group’s retained earnings as of January 1, 2020. Results for reporting periods beginning after January 1, 2020 are presented under ASC Topic 326 while prior periods continue to be reported in accordance with previously applicable U.S. GAAP. The Company’s in-scope assets are primarily loans receivable and accounts receivable and contract assets from customers. In establishing the allowance for loans receivable, the Company considers historical losses, delinquency rate and other factors in pooling basis upon the use of the Current Expected Credit Loss Model (“CECL Model”) in accordance with ASC topic 326, Financial Instruments - Credit Losses. The Company writes off loans receivable as a reduction to the allowance for loans receivable when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be not probable that the balance can be collected. The Company estimated the allowance for receivables due from individual borrowers 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 is homogeneous for each product type and as such, the Company applies a portfolio approach in accounting for credit risk. Accounts receivable for loan facilitation service and post-origination service between individual investors and borrowers are identified as uncollectible if any repayment of the underlying loan is 90 days past due, and no other factor evidences the possibility of collecting the delinquent amounts. The Company will write off aforementioned accounts receivable from borrowers and corresponding provisions if any repayment of the underlying loan is 90 days past due. The Company establishes an allowance for accounts receivable and contract assets from institutional funding partners and other entities that are based on historical experience and other factors surrounding the credit risk of specific customers. Uncollectible receivables from institutional funding partners and other entities are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company has determined the balance will not be collected. |
Loans receivable | (m) Loans receivable Loans receivable represents the loans extended directly to overseas individual borrowers with the Company’s own funds. The loans receivable is measured at amortized cost and recorded on the Company’s consolidated balance sheets. |
Property and equipment | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued ( o ) 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 |
Long term Investment | ( p ) Long term investment The Company applies the equity method of accounting to equity investments, in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Company initially records its investment at cost. The difference between the cost of the equity investment and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill or as an intangible asset as appropriate, which is included in the equity method investment on the consolidated balance sheets. The Company subsequently adjusts the carrying amount of the investment to recognize the Company’s proportionate share of each equity investee’s net income or loss into consolidated statements of operations and comprehensive (loss)/income after the date of acquisition. 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. |
Valued-added taxes ("VAT") | ( q ) 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 298,720, RMB 168,763 and RMB 92,161 for the years ended December 31, 2018, 2019 and 2020, 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 | ( r ) 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 capital. 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 and accounts for forfeitures of the share-based awards when they occur. Previously recognized compensation cost for the awards is reversed in the period that the award is forfeited. Amortization of share-based compensation is presented in the same line item in the consolidated statements of comprehensive income as the cash compensation of those employees receiving the award. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (r) Share-based compensation – continued 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 | ( s ) Revenue Recognition The Company has adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC Topic 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 Loan facilitation and post-origination service The Company provides three services for loans facilitated on its platform: loan facilitation service, post-origination service and guarantee service. However, since the Company ceased to provide investor assurance program managed by itself, for loans facilitated after April 28, 2018, the Company no longer provides any guarantee services, and offers only loan facilitation services and post-origination servicers on loans facilitated on its platform. 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 borrowers that are posted on the Company’s platform every day. Individual investors also have the option to use the automated investment programs whereby the funds are automatically allocated among pre-approved borrowers. The automated investment programs automatically reinvest individual investors’ funds as soon as a loan is repaid, enabling the individual investors to accelerate the reinvestment of cash flows without having to continually revisit the Company’s mobile application. 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 Company stopped charging upfront service fees to comply with the new regulatory requirements since February 2018 for all loans facilitated through its online platform. 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. 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 platform. In the event of borrowers’ default, platform 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 (k) Investor Assurance Program). The Company determines that both the individual investors and the borrowers are its customers. The Company assesses ability and intention to pay the service fees of both borrowers and individual investors when they become due and determines if the collection of the service fees is probable, based on historical experiences as well as the credit due diligence performed on each borrower prior to loan origination. The Company considers the loan facilitation service, guarantee service and post origination service as three separate services, of which, the guarantee service was accounted for in accordance with ASC Topic 460, Guarantees. While the post-origination service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post-origination service are two separate performance obligations under ASC Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Company’s promises to deliver the services are separately identifiable from each other in the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (s) Revenue Recognition – continued 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 loan facilitation service and post-origination 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 individual 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 individual investors. Revenues from guarantee services are recognized at the expiry of the guarantee term. For upfront fees that are partially refundable to the borrowers, the Company estimated the refund based on historical prepayment rate and recorded corresponding refund liabilities upon receiving such fees. The portion of service fees that are collected and allocated to the post-origination service yet to be provided were recorded as deferred revenue. The deferred revenue in relation to the post-origination service were RMB 55,689 and RMB nil as of December 31, 2019 and 2020, which is recorded in “accrued expenses and other current liabilities” on the consolidated balance sheet. The aggregate amount of the transaction price allocated to performance obligations that are unsatisfied pertaining to post-origination service are RMB 222,735, RMB 182,026 and RMB nil as of December 31, 2018, 2019 and 2020 respectively, among which approximately 92%, 100% and nil of the remaining performance obligations will be recognized by the Company over the following 12 months, respectively, with the remainder recognized thereafter. Since the third quarter of 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 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. The Company assesses ability and intention to pay the service fees of the customers when they become due and determines if the collection of the service fees is probable, based on historical experiences as well as the credit due diligence performed before cooperation. The Company determines the total transaction price to be the service fees chargeable according to the contracts, net of value-added tax. The Company identifies one performance obligation under ASC Topic 606, as the Company does not retain any further obligations after the facilitation of a loan. 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 institutional funding partners and the borrower and the principal loan balance is transferred to the borrower, at which time the facilitation service is considered completed. The Company does not provide post-origination service in such arrangements. The institutional funding partners typically engage third-party non-performing loan management entities to assist on the subsequent collection. The Company is in turn engaged by such non-performing loan management entities to provide information including risk profile and collection methods or plans for the borrowers on its platform to the non-performing loan management entity basing on the historical records and experiences that the Company has as of the date when each loan is successfully extended to borrower. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (s) Revenue Recognition – continued The Company determines the total transaction price to be the service fees chargeable according to the contracts, net of value-added tax. Before May 2020, the service fee is calculated based on the facilitated loan amount and the agreed charge rate, i.e. the consideration promised in the contract includes fixed amounts. However, starting from May 2020, the Company reached a mutual agreement with the customers for a new settlement method. The service fee is calculated based on the estimated overdue amount of underlying loans and the agreed charge rate. The transaction price included variable consideration due to overdue amount of the borrowers. The Company reflected in the transaction price the borrower’s estimated delinquent risk and estimated variable consideration for these contracts using the expected value approach on the basis of historical information and current trends of the delinquency of the borrowers. Revenue from technical services is recognized at the time a loan is successfully originated by the institutional funding partner as the technical services are completed at that time. Other revenue Investor referral The Company provides referral services in respect of investment products offered by the financial service providers on Youdao wealth platform. The Company considers the financial service providers to be its customers, and receives service fees from the customers are primarily based on the transaction price of the investment successfully subscribed by online investors. After the online investors subscribe the products referred by the Company, the Company does not retain any further obligations. The price for each referral charged to the financial service providers is a fixed price as pre-agreed in the service contract. Revenue is recognized when the online investors successfully subscribed to investment products from financial service providers. Interest income Interest income is recognized over the terms of Loans receivable using the effective interest rate method under ASC Topic 310. Interest income is not recorded when reasonable doubt exists as to the full, timely collection of interest income or principal. Interest collected upfront at the loan inception is recorded as deferred revenue. The deferred revenue in relation to the loan origination were nil and RMB 4,154 as of December 31, 2019 and 2020, which is recorded in “accrued expenses and other current liabilities” on the consolidated balance sheet. Others 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. Not application fee is charged to borrowers or individual investors. Under ASC Topic 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 Topic 606 for the years ended December 31, 2018, 2019 and 2020 was RMB 242,513, RMB 174,191 and RMB 23,815, 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 fees for transferring loans between investors on the Company’s platform. Under ASC Topic 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (s) Revenue Recognition - continued The following table illustrates the disaggregation of revenue by product and services the Company offered in 2018, 2019 and 2020, respectively: For the year ended December 31, 2018 Loan facilitation services Post- origination services Other revenues 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 services Post- origination services Other revenues 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 For the year ended December 31, 2020 Loan facilitation services Post- origination services Other revenues Total RMB RMB RMB RMB Current loan products 943,084 112,731 — 1,055,815 Offline and non-standard loan products — — — — Other services — — 244,345 244,345 Total 943,084 112,731 244,345 1,300,160 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. The Company was released from the obligation under the refund liabilities and recognized as other revenue of amounting to RMB 77,045 in year 2020. Year ended December 31, 2018 2019 2020 RMB RMB RMB Incentives paid to: New investors 89,776 92,696 — Returning investors 206,380 353,297 202,463 Total incentives paid to investors 296,156 445,993 202,463 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (s) Revenue Recognition – continued Accounts receivable and contract assets 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. The Company only recognizes accounts receivable and contract assets to the extent that the Company believes it is probable that it will collect substantially all of the consideration to which it will be entitled to in exchange for the services transferred to the customer. 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, and from January 1, 2020 ASC Topic 326. The Company established an allowance for uncollectible accounts receivable and contract assets based on estimates, which incorporate historical experience and other factors surrounding the credit risk of specific type of customers. The Company evaluates and adjusts its allowance for uncollectible accounts receivable and contract assets on a quarterly basis or more often as necessary Revenue recognized for the years ended December 31, 2018, 2019 and 2020 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 Topic 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 acquisition cost paid based on the amount of loan facilitated 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 | ( t ) 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 51,611, RMB 65,076 and RMB 37,665 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Origination and servicing expense | ( u ) 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 | ( v ) 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 Investor acquisition. For the years ended December 31, 2018, 2019 and 2020, the advertising expenses were RMB 25,994, RMB 26,985 and RMB 21,697, respectively. |
Government grant | ( w ) 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 22,465, RMB 18,722 and RMB 6,773 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Income taxes | ( x ) 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, 2018, 2019 and 2020. |
Comprehensive income | ( y ) 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 | ( z ) 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 | ( aa ) Segment reporting The Company uses the 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 | ( a b ) Operating leases 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. 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, 2020, the Company’s operating leases had a weighted average remaining lease term of 1.7 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. |
Recent accounting pronouncements | ( ac ) Recent accounting pronouncements Recently Adopted Accounting Pronouncements 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 Company adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the consolidated financial statements. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued (ac) Recent accounting pronouncements - continued Recent Accounting Guidance Not Yet Adopted 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. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging, which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective in the first quarter of 2021 on a prospective basis, with early adoption permitted. The Company will adopt the new standard effective January 1, 2021 and concluded the adoption of this guidance did not have a material impact on the consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of principal subsidiaries and VIEs | As of December 31, 2020 the Parent Company’s significant subsidiaries and its consolidated VIEs are as follows: Name Date of incorporation/ establishment or acquisition Place of incorporation/ establishment Percentage of direct or indirect ownership Principal activities 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 Shanghai Chuangzhen Software Co., Ltd. April 2020 Shanghai 100% Technology service Aguila Information, S.A.P.I. de C.V. January 2020 Mexico 51% Lending business PT. Jayindo Fintek Pratama April 2020 Indonesia 85% Lending business VIEs Shanghai Jiayin Finance Technology Co., Ltd. June 2015 Shanghai 100% Technology service Shanghai Jiajie Internet Finance Information Services Co., Ltd. July 2019 Shanghai 100% Technology development and consumer finance services 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, 2020 | |
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, 2019 2020 RMB RMB Cash and cash equivalents 54,602 12,469 Restricted cash — 2,000 Amounts due from related parties 1,651 3 Accounts receivable, net 110,219 9 Prepaid expenses and other current assets 66,722 29,676 Deferred tax assets, net 54,973 17,010 Property and equipment, net 38,303 3,582 Right-of-use assets 36,534 341 TOTAL ASSETS 363,004 65,090 Payroll and welfare payables 29,386 21,755 Amounts due to related parties 722 4,559 Refund liabilities 180,104 — Tax payables 164,444 232,730 Accrued expenses and other current liabilities 121,319 24,118 Other payable related to the disposal of Shanghai Caiyin 839,830 566,532 Lease liabilities 34,620 170 TOTAL LIABILITIES 1,370,425 849,864 Year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenue 2,881,940 2,151,165 624,868 Operating income 685,206 583,741 230,415 Net income 611,758 571,227 254,283 Net cash (used in) provided by operating activities (228,368 ) 19,465 (40,071 ) Net cash used in investing activities (16,423 ) (35,505 ) (62 ) Net cash used in financing activities (433,600 ) (12,299 ) — |
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 2018, 2019 and 2020, respectively: For the year ended December 31, 2018 Loan facilitation services Post- origination services Other revenues 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 services Post- origination services Other revenues 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 For the year ended December 31, 2020 Loan facilitation services Post- origination services Other revenues Total RMB RMB RMB RMB Current loan products 943,084 112,731 — 1,055,815 Offline and non-standard loan products — — — — Other services — — 244,345 244,345 Total 943,084 112,731 244,345 1,300,160 |
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. The Company was released from the obligation under the refund liabilities and recognized as other revenue of amounting to RMB 77,045 in year 2020. Year ended December 31, 2018 2019 2020 RMB RMB RMB Incentives paid to: New investors 89,776 92,696 — Returning investors 206,380 353,297 202,463 Total incentives paid to investors 296,156 445,993 202,463 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of loans receivable, net | The loans receivable, net consists of the following: As of December 31, 2019 2020 RMB RMB Loans receivable — 58,996 Allowance for credit losses — (27,700 ) Loans receivable, net — 31,296 |
Summary of balances of loans receivable by due date | The following table summarizes the balances of loans receivable by due date as of December 31, 2019 and 2020. As of December 31, 2019 2020 RMB RMB Undue — 23,107 1-14 days past due — 1,412 15 days or greater past due — 6,777 Loans receivable, net — 31,296 |
Summary of the allowance for credit losses | The movement of the allowance for credit losses for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB Balance at beginning of the year — — — Current year credit losses — — (27,498 ) Foreign currency exchange — — (202 ) Balance at end of the year — — (27,700 ) |
ACCOUNTS RECEIVABLE AND CONTR_2
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of accounts receivable | Accounts receivable consists of the following: As of December 31, 2019 2020 RMB RMB Accounts receivable: Receivables for loan facilitation and post-origination service from borrowers 170,898 — Receivables for loan referral service from institutional funding partners 28,945 109,910 Less: allowance for credit losses (60,679 ) — Total accounts receivable 139,164 109,910 |
Summary of movement of allowance for uncollectible receivables | The movement of allowance for uncollectible receivables for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year — 28,014 60,679 Current year credit losses 51,430 144,636 49,231 Current year write off (23,416 ) (111,971 ) (109,910 ) Balance at end of the year 28,014 60,679 — |
Summary of Contract Assets | Contract assets consists of the following: As of December 31, 2019 2020 RMB RMB Contract assets — 48,154 Less: Allowance for credit losses — — Contract assets, net — 48,154 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net consisted of the followings: As of December 31, 2019 2020 RMB RMB Leasehold improvement 8,093 8,093 Motor vehicles 1,604 1,993 Electronic equipment 56,068 56,453 Office equipment & furniture 6,868 6,873 Software 1,342 1,407 Total costs 73,975 74,819 Less: accumulated depreciation and amortization (34,891 ) (55,370 ) Property and equipment, net 39,084 19,449 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased 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, 2018 2019 2020 RMB RMB RMB Origination and servicing 2,516 10,345 3,167 General and administrative 29,734 80,599 8,870 Research and development 22,820 48,578 10,170 Sales and marketing 12,708 8,060 8,445 Total 67,778 147,582 30,652 |
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, 2019 and 2020 at the date of grant: October 2018 November 2019 November 2020 Average risk-free rate of interest 3.32% 1.57%-1.69% 0.23%-0.60% Estimated volatility rate 44.32% 42.86%-45.28% 49.74%-53.91% Exercise multiples 2.8 2.8 2.8 Dividend yield 0.00% 0.00% 0.00% Time to maturity 4.5 years 0-3 years 0-3 years Fair value per underlying ordinary share RMB 88.13 RMB 53.43 RMB 18.33 |
Summary of aggregate option activities | The summary of the aggregate option activities and information regarding options outstanding for the years ended as of December 31, 2019 and 2020 is as follows: Number of Options (in ‘000s) Weighted Average Exercise Price Weighted Average Remaining Contract Life Aggregate Intrinsic Value RMB Years RMB Options outstanding at December 31, 2019 5,699 3.5 2.51 189,093 Granted 1,583 Exercised (1,981 ) Forfeited (921 ) Options outstanding at December 31, 2020 4,380 3.5 2.63 118,421 Options exercisable at December 31, 2020 2,369 3.5 2.20 56,756 Options vested or expected to be vested at December 31, 2020 4,380 3.5 2.63 118,421 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax expense | Income tax expense consists of the following: Year ended December 31, 2018 2019 2020 RMB RMB RMB Current income tax expense: 111,552 168,924 83,216 Deferred income tax (benefit) expense: (17,637 ) (131,917 ) 25,595 Total income tax expense 93,915 37,007 108,811 |
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: As of December 31, 2019 2020 RMB RMB Deferred tax assets Payroll and welfare payable 12,131 11,635 Accrued expenses 16,199 10,198 Allowance for uncollectible receivables, contract assets, loans receivable and others 37,932 56,164 Net loss carryforward 13,595 13,495 Liabilities related to customer incentive 44,216 11,435 Gross deferred tax assets 124,073 102,927 Valuation allowances (1,909 ) (4,102 ) Net deferred tax assets 122,164 98,825 Deferred tax liabilities Uncollected revenues (53,872 ) (57,890 ) Total deferred tax liabilities (53,872 ) (57,890 ) Deferred tax assets, net 68,292 40,935 |
Summary of changes in valuation allowance | Changes in valuation allowance are as follows: Year Ended December 31, 2020 RMB Balance at beginning of the year (1,909 ) Additions (2,871 ) Reversals 678 Balance at end of the year (4,102 ) |
Summary of reconciliations of differences between PRC statutory income tax rate and group's effective income tax rate | 10 . INCOME TAXES – continued Reconciliations of the differences between PRC statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2018, 2019 and 2020 are as follows: Year Ended December 31, 2018 2019 2020 RMB RMB RMB Statutory income tax rate 25.00 % 25.00 % 25.00 % Non-deductible expense 2.62 % 6.66 % 2.54 % Research and Development expense super deduction (1.44 %) (2.97 %) (0.62 %) Effect of tax holiday (12.87 %) (18.86 %) (2.12 %) Different tax rate of entities operating in other jurisdiction 0.00 % (0.07 %) 4.86 % Valuation allowance 0.00 % 0.32 % 0.61 % Change in tax rate 0.00 % (3.13 %) 0.00 % True up 0.00 % (0.40 %) 0.05 % Effective tax rate 13.31 % 6.55 % 30.32 % |
Summary of effect of tax holiday | The effect of the tax holiday on the income per share is as follows: Year Ended December 31, 2018 2019 2020 RMB RMB RMB Tax saving amount due to HNTE status 90,819 106,516 — Tax saving amount due to Software enterprise — — 7,527 Tax expense amount due to other jurisdiction — (411 ) (17,405 ) Income per share effect-basic and diluted 0.45 0.50 (0.05 ) |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 2019 2020 RMB RMB RMB Net income attributable to ordinary shareholders – basic and diluted 611,758 527,747 252,883 Weighted average number of ordinary shares outstanding – basic and diluted 200,000,000 210,409,863 216,100,000 Basic and diluted net income per share 3.06 2.51 1.17 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 Operating leases: RMB RMB Operating leases right-of-use assets 37,215 6,926 Current portion of lease liabilities 2,735 3,322 Non-current portion of lease liabilities 32,480 1,873 Total operating lease liabilities 35,215 5,195 Weighted average remaining lease term (in years) 1.2 1.7 Weighted average discount rate 4.75 % 4.75 % |
Summary of cash flow information related to leases | Supplemental cash flow information related to leases for the years ended December 31, 2019 and 2020 is as follows: For the year ended December 31, 2019 2020 RMB RMB Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases 28,319 25,665 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 15,986 4,734 |
Summary of maturities of lease payments | 1 3 . LEASES - continued Maturities of lease payments by year and in the aggregate, under non-cancellable operating leases with terms in excess of one year as of December 31, 2020 are as follows: RMB 2021 3,462 2022 1,281 2023 and thereafter 663 Total lease payment 5,406 Less imputed interest (211 ) Total 5,195 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 2019 2020 RMB RMB RMB Services provided by related parties: Jiayin Zhuoyue (1) 77,984 81,206 55,207 Jiayin (Shanghai) (1) 2,459 6,548 9,004 Shanghai Jiayin (2) 13,806 8,280 5,845 Li Mahui (4) — — 425 Kailiantong (3) 8,065 2,255 — Shilupan (5) 17,202 7,863 — Jiayin Credit (6) 10,513 196 — Geerong Yun (7) 3,136 — — Total 133,165 106,348 70,481 Services provided to related parties Kailiantong (3) — 1,761 6,209 Total — 1,761 6,209 14. RELATED PARTY TRANSACTIONS - continued Year ended December 31, 2018 2019 2020 RMB RMB RMB Loans to related parties: Subsidiary shareholder (8) — — 463 Subsidiary director (9) — — 79 China Smartpay (10) — 119,924 — GAYANG (11) — 1,716 — Shanghai Jiayin (11) — 909 — Shanghai Jiajie (11) 7,700 800 — SG Fintech(12) — 598 — Geerong Yun (7) 3,850 — — Total 11,550 123,947 542 Loans from related parties Subsidiary shareholder (13) — — 3,113 Jiayin Financial Leasing (14) — 150 — Jiayin Credit (14) 70,765 80 — Total 70,765 230 3,113 (1) Jiayin Zhuoyue and Jiayin (Shanghai) referred investors and borrowers to the Company and charged referral service fees. (2) Shanghai Jiayin rents office space to the Company and charges other related service fee, which is calculated dependent on its usage of the underlying office space. (3) Kailiantong provides cash payment services to the Company and charges 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. Our Founder, Mr. Dinggui Yan, partially disposed of his investment over China Smartpay in September 2020, and therefore Mr. Dinggui Yan lost the significant influence over China Smartpay thereafter. As Kailiantong was wholly owned by China Smartpay, Kailiantong was no longer deemed as our related party as of October 2020. (4) Limahui primarily provides internet catering service for employees of the Company and charged corresponding service fees. Mr. Zhang has significant influence over Limahui in the first three quarters of 2020. (5) Shilupan provided credit analysis service for the Company and charged corresponding service fees. (6) Jiayin Credit provided credit service to the Company and charged credit service fees. (7) Geerong Yun provided referral services to the Company and charged referral service fees. Geerong Yun was acquired by the company in September 2019 and became our wholly-owned subsidiary thereafter. (8) The amount represents loans to minority shareholders of the subsidiary company Thanh Cong Biz Link Joint Stock Company (“Biz link”) in 2020, for the investment and establishment of the Biz link, which are non-interest bearing, unsecured, and due on demand. (9) The amount represents loans to the minority director of the subsidiary PT. Jayindo Fintek Pratama since November 2020 with principal of RMB 79 and annual interest rate of 6%. The outstanding loan balance will be repaid in 36 equal monthly installments. (10) The Company entered into a loan contract with China Smartpay of RMB119,924(US$17,225) with fixed annual interest rate of 9%. The interest was RMB4,938 for the year ended December 31, 2019 and the interest portion through January to September 2020 was RMB7,570. The outstanding loan balance including principal and interests had been settled with consideration of the acquisition with Keen Best (See Note 7), together with a lump-sum cash payment of RMB37,372 in September 2020. Since October 2020, China Smartpay is no longer a related party of the Company. (11) The amount represents loans which are non-interest bearing, unsecured, and due on demand. 14. RELATED PARTY TRANSACTIONS - continued (12) 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. As of December 31, 2020, all principal and interest have been collected. ( 1 3 ) The amount represents loans from minority shareholders of the subsidiary company Aguila Information, S.A.P.I. de C.V. (“Aguila Information”) in 2020, which results in the balance of amount due to related parties shown as below. Aguila Information entered into an agreement with minority shareholders that the portion of total investment capital which exceeds paid-in capital is deemed as loan to the Company. The loans will be due on March 31, 2021 with annual interest rate of 3%. ( 1 4 ) The amounts represent loans from related parties in the years of 2018, 2019 and 2020 for the daily operation. (1 5 ) Shanghai Zhundian Enterprise Service Co., Ltd.("Shanghai Zhundian")(formerly known as “Shanghai Limahui E-Commerce Co., Ltd”) was a related party controlled by Yan Dinggui, the Chairman of Jiayin Group during the period of January, 2020 to April, 2020. On April 22, 2020, Shanghai Zhundian was acquired by Jiayin Finance, and becomes a wholly-owned subsidiary of Jiayin Group Inc. The consideration is nil, and the Group recorded RMB 3,000 in APIC as it is a combination under common control and the net assets of Shanghai Zhundian on the acquisition date was RMB 3,000. The following table present amounts due from and due to related parties as of December 31, 2019 and 2020: As of December 31, 2019 2020 RMB RMB Amounts due from related parties Subsidiary shareholder — 463 Subsidiary director — 79 China Smartpay 124,862 — GAYANG 1,716 — Shanghai Jiayin 1,564 — Kailiantong 1,050 — Shanghai Jiajie 800 — SG Fintech 599 — Jiayin Credit 131 — Total 130,722 542 Amounts due to related parties Subsidiary shareholder — 3,113 Jiayin Zhuoyue 722 3,442 Shanghai Jiayin — 2,150 Jiayin Financial Leasing 150 — Jiayin Credit — 80 Total 872 8,785 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 and loans from related parties. |
FINANCIAL STATEMENTS SCHEDULE_2
FINANCIAL STATEMENTS SCHEDULE I (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS | JIAYIN GROUP INC. ADDITIONAL INFORMATION—FINANCIAL STATEMENTS SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (AMOUNT IN THOUSANDS, EXCEPT SHARE AND SHARE RELATED DATA) 2019 2020 RMB RMB US$ Assets Current assets Cash and cash equivalents 27,223 21,213 3,251 Short-term investment ,net 69,618 — — Amounts due from subsidiaries and VIEs 44,695 167,887 25,731 Amounts due from a related party 124,862 — — Prepaid and other current assets 1,117 855 131 Total current assets 267,515 189,955 29,113 Investments in subsidiaries and VIEs (1,003,436 ) (652,193 ) (99,953 ) Total assets (735,921 ) (462,238 ) (70,840 ) Liabilities Current Liabilities Accrued expenses and other current liabilities 5,933 2,385 366 Total liabilities 5,933 2,385 366 Equity Ordinary shares — — — Additional paid-in capital 777,408 815,042 124,911 Accumulated deficit (1,519,731 ) (1,266,848 ) (194,153 ) Accumulated other comprehensive income (loss) 469 (12,817 ) (1,964 ) Total deficit (741,854 ) (464,623 ) (71,206 ) Total liabilities and deficit (735,921 ) (462,238 ) (70,840 ) |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME | 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, 2018 2019 2020 RMB RMB RMB US$ Operating cost and expenses: General and administrative — (2,886 ) (6,740 ) (1,033 ) Total operating cost and expenses — (2,886 ) (6,740 ) (1,033 ) Loss from operations — (2,886 ) (6,740 ) (1,033 ) Interest income — 4,910 7,701 1,180 Other income (loss) , net — 1 (67,169 ) (10,294 ) Income before taxes and income from equity in subsidiaries and VIEs — 2,025 (66,208 ) (10,147 ) Income tax expense — — — — Equity in earnings of subsidiaries and VIEs 611,758 525,722 319,091 48,904 Net income 611,758 527,747 252,883 38,757 Other comprehensive income, net of tax Change in cumulative foreign currency translation adjustment — 469 (13,286 ) (2,036 ) Other comprehensive income (loss) — 469 (13,286 ) (2,036 ) Comprehensive income 611,758 528,216 239,597 36,721 |
CONSOLIDATED STATEMENTS OF COMPANY CASH FLOW STATEMENTS | 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, 2018 2019 2020 RMB RMB RMB US$ Cash flows from operating activities Net income 611,758 527,747 252,883 38,757 Adjustments to reconcile net income to net cash used in operating activities: Share of results of subsidiaries and VIEs (611,758 ) (525,722 ) (319,091 ) (48,904 ) Depreciation and amortization — 2,020 2,675 410 Impairment of short-term investment — — 67,169 10,294 Changes in operating assets and liabilities: Amounts due from a related party — (4,938 ) — — Amounts due from subsidiaries and VIEs — (44,695 ) (35,702 ) (5,471 ) Prepaid and other current assets — (3,137 ) (2,413 ) (370 ) Accrued expenses and other current liabilities — 5,933 (3,548 ) (544 ) Net cash used in operating activities — (42,792 ) (38,027 ) (5,828 ) Cash flows from investing activities Loan to a related party — (119,924 ) — — Purchase of short-term investment — (71,477 ) — — Cash collected from loan to related parties — — 37,372 5,728 Net cash (used in) provided by investing activities — (191,401 ) 37,372 5,728 Cash flows from financing activities Net proceeds from issuance of ordinary shares — 255,928 — — Proceeds from exercise of options — — 6,982 1,070 Net cash provided by financing activities — 255,928 6,982 1,070 Effect of foreign exchange rate changes on cash and cash equivalents — 5,488 (12,337 ) (1,891 ) Net increase (decrease) in cash and cash equivalents — 27,223 (6,010 ) (921 ) Cash and cash equivalents at beginning of year — — 27,223 4,172 Cash and cash equivalents at end of the year — 27,223 21,213 3,251 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 ) — — — |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) ¥ in Thousands | May 10, 2019CNY (¥)shares | Dec. 31, 2019CNY (¥) | May 10, 2019$ / shares |
Summary of Organization and Principal Activities [Line Items] | |||
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 | ||
Shanghai Caiyin Asset Management Co Ltd | |||
Summary of Organization and Principal Activities [Line Items] | |||
Guarantee liability | ¥ | ¥ 2,900,000 |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of principal subsidiaries and VIEs (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries [Member] | Jiayin Holdings Limited | |
Date of incorporation/establishment or acquisition | Jan. 31, 2018 |
Place of incorporation/establishment | BVI |
Percentage of direct or indirect 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 direct or indirect 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 direct or indirect 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 direct or indirect ownership | 100.00% |
Principal activities | Investment Holding |
Subsidiaries [Member] | Geerong Yunke Information Technology Co., Ltd | |
Date of incorporation/establishment or acquisition | Jul. 31, 2019 |
Place of incorporation/establishment | Shanghai |
Percentage of direct or indirect 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 direct or indirect ownership | 100.00% |
Principal activities | Technology development and consumer finance services |
Subsidiaries [Member] | Shanghai Chuangzhen Software Co., Ltd. | |
Date of incorporation/establishment or acquisition | Apr. 30, 2020 |
Place of incorporation/establishment | Shanghai |
Percentage of direct or indirect ownership | 100.00% |
Principal activities | Technology service |
Subsidiaries [Member] | Aguila Information, S.A.P.I. de C.V. | |
Date of incorporation/establishment or acquisition | Jan. 31, 2020 |
Place of incorporation/establishment | Mexico |
Percentage of direct or indirect ownership | 51.00% |
Principal activities | Lending business |
Subsidiaries [Member] | PT Jayindo Fintek Pratama | |
Date of incorporation/establishment or acquisition | Apr. 30, 2020 |
Place of incorporation/establishment | Indonesia |
Percentage of direct or indirect ownership | 85.00% |
Principal activities | Lending business |
Variable Interest Entity, Primary Beneficiary Shanghai Jiayin Finance Technology Co Ltd | |
Date of incorporation/establishment or acquisition | Jun. 30, 2015 |
Place of incorporation/establishment | Shanghai |
Percentage of direct or indirect ownership | 100.00% |
Principal activities | Technology service |
Variable Interest Entity, Primary Beneficiary Shanghai Jiajie Internet Finance Information Services Co Ltd | |
Date of incorporation/establishment or acquisition | Sep. 30, 2015 |
Place of incorporation/establishment | Shanghai |
Percentage of direct or indirect ownership | 100.00% |
Principal activities | Technology development and consumer finance services |
Variable Interest Entity, Primary Beneficiary Shanghai Niwodai Internet Finance Information Services Co Ltd | |
Date of incorporation/establishment or acquisition | Jul. 31, 2019 |
Place of incorporation/establishment | Shanghai |
Percentage of direct or indirect ownership | 100.00% |
Principal activities | Technology development and consumer finance services |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2019USD ($) | |
Working capital | ¥ (46,899,000) | |||||
Net cash used in the operating activities | (35,505,000) | $ (5,439,000) | ¥ 26,291,000 | ¥ (228,368,000) | ||
Net income | 250,066,000 | $ 38,325,000 | 527,185,000 | 611,758,000 | ||
Shareholders' deficit | (461,623,000) | (741,854,000) | $ (70,747,000) | |||
Cash and cash equivalents | ¥ 117,320,000 | ¥ 122,149,000 | ¥ 41,441,000 | $ 17,980,000 | ||
VIEs percentage of Group's consolidated revenue | 48.00% | 48.00% | 96.00% | 100.00% | ||
VIEs percentage of consolidated total assets | 12.00% | 12.00% | 52.00% | |||
VIEs percentage of consolidated total liabilities | 86.00% | 86.00% | 95.00% | |||
Convenience translation rate per US$1.00 | 6.5250 | 6.5250 | ||||
Value added tax rate | 6.00% | 6.00% | ||||
Value added tax amount | ¥ 92,161,000 | ¥ 168,763,000 | ¥ 298,720,000 | |||
Deferred Revenue | 55,689,000 | |||||
Service fees | 23,815,000 | 174,191,000 | 242,513,000 | |||
Refund liabilities | (180,104,000) | $ (27,602,000) | 15,505,000 | (71,613,000) | ||
Employee defined contribution plan expense | 37,665,000 | 65,076,000 | 51,611,000 | |||
Advertising expense | 21,697,000 | 26,985,000 | 25,994,000 | |||
Government grants | ¥ 6,773,000 | ¥ 18,722,000 | 22,465,000 | |||
Weighted average remaining lease term | 1 year 8 months 12 days | 1 year 2 months 12 days | 1 year 8 months 12 days | |||
Weighted average discount rate | 4.75% | 4.75% | 4.75% | |||
Retained earnings | ¥ (1,266,848,000) | ¥ (1,519,731,000) | $ (194,153,000) | |||
Cumulative Effect Adjustment | ASU 2016-02 | ||||||
Retained earnings | $ | $ 0 | |||||
Other Revenue [Member] | ||||||
Refund liabilities | 77,045,000 | |||||
Accrued Expenses and Other Current Liabilities | ||||||
Deferred Revenue | 4,154,000 | |||||
Post-origination service | ||||||
Remaining performance obligations | ¥ 182,026,000 | ¥ 222,735,000 | ||||
Remaining performance obligations, percentage that will be recognized by the Group over the following 12 months | 100.00% | 92.00% | ||||
CNY | ||||||
Cash and cash equivalents | ¥ 63,197,000 | ¥ 78,296,000 | ||||
Cash and Cash Equivalents | Net Assets, Geographic Area | CHINA | ||||||
Concentration risk, percentage | 53.00% | 53.00% | 64.00% | |||
Customer Concentration Risk | Net Revenue | Customer A | ||||||
Concentration risk, percentage | 17.00% | 17.00% | ||||
Customer Concentration Risk | Net Revenue | Customer B | ||||||
Concentration risk, percentage | 13.00% | 13.00% | ||||
Customer Concentration Risk | Accounts Receivable and Contract Assets | Customer A | ||||||
Concentration risk, percentage | 14.00% | 14.00% | ||||
Customer Concentration Risk | Accounts Receivable and Contract Assets | Customer C | ||||||
Concentration risk, percentage | 24.00% | 24.00% | ||||
Equity Pledge Agreement | ||||||
Percentage of equity interest in Jiayin Finance pledged to WFOE | 100.00% | 100.00% | ||||
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 | ||||
Payment Guarantee [Member] | ||||||
Guarantee obligations | ¥ 1,586,610,000 | ¥ 487,216,000 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 117,320 | ¥ 122,149 | ¥ 41,441 | $ 17,980 | |
Restricted cash | 2,000 | 0 | 307 | ||
Amounts due from related parties | 542 | 130,722 | 83 | ||
Accounts receivable, net | 109,910 | 139,164 | |||
Prepaid expenses and other current assets | 61,289 | 91,002 | 9,393 | ||
Deferred tax assets , net | 40,935 | 68,292 | 6,274 | ||
Property and equipment , net | 19,449 | 39,084 | 2,981 | ||
Right-of-use assets | 6,926 | 37,215 | 1,061 | ||
TOTAL ASSETS | 525,372 | 701,072 | 80,517 | ||
Payroll and welfare payables | 58,288 | 48,524 | 8,933 | ||
Amounts due to related parties | 8,785 | 872 | 1,346 | ||
Refund liabilities | 180,104 | ||||
Tax payables | 279,383 | 179,421 | 42,817 | ||
Accrued expenses and other current liabilities | 70,954 | 158,705 | 10,875 | ||
Other payable related to the disposal of Shanghai Caiyin | 566,532 | 839,830 | 86,825 | ||
Lease liabilities | 5,195 | 35,215 | 796 | ||
TOTAL LIABILITIES | 989,137 | 1,442,671 | $ 151,592 | ||
Net revenue | 1,300,160 | $ 199,258 | 2,230,176 | 2,881,940 | |
Operating income | 302,107 | 46,300 | 534,669 | 685,206 | |
Net income | 252,883 | 38,757 | 527,747 | 611,758 | |
Net cash (used in) provided by operating activities | (35,505) | (5,439) | 26,291 | (228,368) | |
Net cash used in investing activities | 33,226 | 5,092 | (234,178) | (16,423) | |
Net cash used in financing activities | 10,595 | $ 1,624 | 244,674 | (433,600) | |
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 12,469 | 54,602 | |||
Restricted cash | 2,000 | ||||
Amounts due from related parties | 3 | 1,651 | |||
Accounts receivable, net | 9 | 110,219 | |||
Prepaid expenses and other current assets | 29,676 | 66,722 | |||
Deferred tax assets , net | 17,010 | 54,973 | |||
Property and equipment , net | 3,582 | 38,303 | |||
Right-of-use assets | 341 | 36,534 | |||
TOTAL ASSETS | 65,090 | 363,004 | |||
Payroll and welfare payables | 21,755 | 29,386 | |||
Amounts due to related parties | 4,559 | 722 | |||
Refund liabilities | 180,104 | ||||
Tax payables | 232,730 | 164,444 | |||
Accrued expenses and other current liabilities | 24,118 | 121,319 | |||
Other payable related to the disposal of Shanghai Caiyin | 566,532 | 839,830 | |||
Lease liabilities | 170 | 34,620 | |||
TOTAL LIABILITIES | 849,864 | 1,370,425 | |||
Net revenue | 624,868 | 2,151,165 | 2,881,940 | ||
Operating income | 230,415 | 583,741 | 685,206 | ||
Net income | 254,283 | 571,227 | 611,758 | ||
Net cash (used in) provided by operating activities | (40,071) | 19,465 | (228,368) | ||
Net cash used in investing activities | ¥ (62) | (35,505) | (16,423) | ||
Net cash used in financing activities | ¥ (12,299) | ¥ (433,600) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of property and equipment estimated useful lives (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
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 ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of disaggregation of revenue by product (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | ¥ 1,300,160 | $ 199,258 | ¥ 2,230,176 | ¥ 2,881,940 |
Current loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,055,815 | 1,974,380 | 2,447,332 | |
Other online standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 10,217 | 116,571 | ||
Offline and non-standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 32,346 | 43,494 | ||
Other services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 244,345 | 213,233 | 274,543 | |
Loan facilitation services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 943,084 | 1,747,065 | 2,246,908 | |
Loan facilitation services | Current loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 943,084 | 1,742,708 | 2,245,941 | |
Loan facilitation services | Other online standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 4,357 | 51 | ||
Loan facilitation services | Offline and non-standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 916 | |||
Post-origination services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 112,731 | 267,047 | 241,968 | |
Post-origination services | Current loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 112,731 | 230,024 | 174,370 | |
Post-origination services | Other online standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 5,854 | 26,938 | ||
Post-origination services | Offline and non-standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 31,169 | 40,660 | ||
Other revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 244,345 | 216,064 | 393,064 | |
Other revenues | Current loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,648 | 27,021 | ||
Other revenues | Other online standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 6 | 89,582 | ||
Other revenues | Offline and non-standard loan products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,177 | 1,918 | ||
Other revenues | Other services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | ¥ 244,345 | ¥ 213,233 | ¥ 274,543 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of incentives paid to investors (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Incentives paid to: | |||
New investors | ¥ 92,696 | ¥ 89,776 | |
Returning investors | ¥ 202,463 | 353,297 | 206,380 |
Total incentives paid to investors | ¥ 202,463 | ¥ 445,993 | ¥ 296,156 |
SHORT-TERM INVESTMENTS, NET - A
SHORT-TERM INVESTMENTS, NET - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jul. 15, 2019USD ($) | |
Short-term investment , net | ¥ | ¥ 0 | ¥ 69,618 | ||
Impairment of short-term investment | ¥ 67,169 | $ 10,294 | ||
Cornerstone Management, Inc | ||||
Short-term investment , net | $ | $ 10,000 | |||
Interest rate on investments | 8.00% |
LOANS RECEIVABLE, NET - Summary
LOANS RECEIVABLE, NET - Summary of loans receivable, net (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Receivables [Abstract] | |
Loans receivable | ¥ 58,996 |
Allowance for credit losses | (27,700) |
Loans receivable, net | ¥ 31,296 |
LOANS RECEIVABLE, NET - Summa_2
LOANS RECEIVABLE, NET - Summary of balances of loans receivable by due date (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Loans receivable, net | ¥ 31,296 |
Undue | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Loans receivable, net | 23,107 |
1-14 Days Past Due | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Loans receivable, net | 1,412 |
15 Days or Greater Past Due | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Loans receivable, net | ¥ 6,777 |
LOANS RECEIVABLE, NET - Summa_3
LOANS RECEIVABLE, NET - Summary of the allowance for credit losses (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Receivables [Abstract] | |
Current year credit losses | ¥ (27,498) |
Foreign currency exchange | (202) |
Balance at end of the year | ¥ (27,700) |
ACCOUNTS RECEIVABLE AND CONTR_3
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - Summary of accounts receivable (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Receivables for loan facilitation and post-origination service from borrowers | ¥ 170,898 | ||
Receivables for loan referral service from institutional funding partners | ¥ 109,910 | 28,945 | |
Less: allowance for credit losses | (60,679) | ¥ (28,014) | |
Total accounts receivable | ¥ 109,910 | ¥ 139,164 |
ACCOUNTS RECEIVABLE AND CONTR_4
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - Summary of movement of allowance for uncollectible receivables (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance at the beginning of the year | ¥ 60,679 | ¥ 28,014 | |
Current year credit losses | 49,231 | 144,636 | ¥ 51,430 |
Current year write off | ¥ (109,910) | (111,971) | (23,416) |
Balance at end of the year | ¥ 60,679 | ¥ 28,014 |
ACCOUNTS RECEIVABLE AND CONTR_5
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - Summary of Contract Assets (Detail) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Contract With Customer Asset Net [Abstract] | |
Contract assets | ¥ 48,154 |
Contract assets, net | ¥ 48,154 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of property and equipment, net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total costs | ¥ 74,819 | ¥ 73,975 | |
Less: accumulated depreciation and amortization | (55,370) | (34,891) | |
Property and equipment, net | 19,449 | $ 2,981 | 39,084 |
Leasehold improvement | |||
Property Plant And Equipment [Line Items] | |||
Total costs | 8,093 | 8,093 | |
Motor vehicles | |||
Property Plant And Equipment [Line Items] | |||
Total costs | 1,993 | 1,604 | |
Electronic equipment | |||
Property Plant And Equipment [Line Items] | |||
Total costs | 56,453 | 56,068 | |
Office equipment & furniture | |||
Property Plant And Equipment [Line Items] | |||
Total costs | 6,873 | 6,868 | |
Software | |||
Property Plant And Equipment [Line Items] | |||
Total costs | ¥ 1,407 | ¥ 1,342 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expenses | ¥ 20,483 | ¥ 17,710 | ¥ 11,300 |
LONG-TERM INVESTMENTS - Additio
LONG-TERM INVESTMENTS - Additional Information (Detail) ¥ in Thousands | Sep. 29, 2020CNY (¥) | Sep. 29, 2020USD ($) | Jan. 31, 2020CNY (¥) | May 31, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | Sep. 29, 2020USD ($) | Mar. 13, 2020shares |
Long Term Investments [Line Items] | ||||||||||
Income (loss) from investment in affiliates | ¥ (7,509) | $ (1,151,000) | ¥ 378 | |||||||
Long-term investment | 87,551 | 3,826 | $ 13,418,000 | |||||||
Keen Best | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Number of ordinary shares acquired | shares | 35 | |||||||||
Equity Percent Acquired | 35.00% | |||||||||
Purchase price for shares | ¥ 91,957 | $ 13,544,000 | ||||||||
Goodwill | ¥ 1,508 | $ 231,000 | ||||||||
Income (loss) from investment in affiliates | 822 | 126,000 | ||||||||
Impairment on investment | $ | $ 0 | |||||||||
SG Fintech Joint Stock Company | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Equity Percent Acquired | 24.10% | 24.90% | ||||||||
Income (loss) from investment in affiliates | 6,687 | |||||||||
Impairment on investment | ¥ 49 | |||||||||
Investment income, net | ¥ 378 | |||||||||
Cash consideration | ¥ 3,378 | ¥ 3,400 |
DISPOSAL OF SHANGHAI CAIYIN - A
DISPOSAL OF SHANGHAI CAIYIN - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | |
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 | ¥ 1,973,613 | ||||
Contingent amount | 372,085 | ||||
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 | ¥ 117,021 | ¥ 255,064 | |||
Shanghai Caiyin [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sale value of disposal group | ¥ 1,078,686 | ||||
Contingent consideration receivable | ¥ 372,085 | ||||
Disposal group, including discontinued operation, gain derived from release of contingent consideration payable | 117,021 | ||||
Disposal group accounts payable | 566,532 | ¥ 839,830 | |||
Disposal group fixed payable | 311,468 | 467,744 | |||
Disposal group contingent payable | ¥ 255,064 | ¥ 372,085 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Nov. 30, 2020 | Nov. 30, 2019 | Oct. 31, 2018 | Sep. 30, 2016 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Options granted in period | 1,583,000 | ||||||||||||
Options cancelled | 2,377,000 | ||||||||||||
Unrecognized share-based compensation expense recognized | ¥ 39,390 | ||||||||||||
Weighted average grant date fair value of options granted | ¥ 14.78 | ¥ 50.36 | ¥ 84.88 | ||||||||||
Total unrecognized compensation cost related to non-vested stock options | ¥ 27,168 | ||||||||||||
Total unrecognized compensation cost related to non-vested stock options, weighted-average period | 2 years 7 months 17 days | ||||||||||||
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 | ¥ 3.5 | ||||||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Share-based Compensation Award, Tranche One | Employee Stock | |||||||||||||
Options life | 4 years 6 months | ||||||||||||
Options vesting percentage | 30.00% | 30.00% | 25.00% | 15.00% | |||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Share-based Compensation Award, Tranche Two | |||||||||||||
Options granted in period | 2,851,600 | ||||||||||||
Options exercise price | ¥ 3.5 | ||||||||||||
Shanghai Jiayin Finance Technology Co., Ltd. | Share-based Compensation Award, Tranche Two | Employee Stock | |||||||||||||
Options life | 4 years 6 months | ||||||||||||
Options vesting percentage | 30.00% | 30.00% | 25.00% | 15.00% | |||||||||
Two Thousand Nineteen Incentive Plan | |||||||||||||
Options granted in period | 1,583,000 | 288,000 | |||||||||||
Employee incentive plan | Shanghai Jiayin Finance Technology Co., Ltd. | |||||||||||||
Shares that will be used under the Plan | 13,500,000 | ||||||||||||
Two Thousand Eighteen incentive paln | |||||||||||||
Options cancelled | 1,169,000 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of share-based compensation expenses (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | ¥ 30,652 | $ 4,698 | ¥ 147,582 | ¥ 67,778 |
Origination and servicing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 3,167 | 10,345 | 2,516 | |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 8,870 | 80,599 | 29,734 | |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 10,170 | 48,578 | 22,820 | |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | ¥ 8,445 | ¥ 8,060 | ¥ 12,708 |
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, 2020 | Nov. 30, 2019 | Oct. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Average risk-free rate of interest | 3.32% | ||
Average risk-free rate of interest, Minimum | 0.23% | 1.57% | |
Average risk-free rate of interest, Maximum | 0.60% | 1.69% | |
Estimated volatility rate | 44.32% | ||
Estimated volatility rate, Minimum | 49.74% | 42.86% | |
Estimated volatility rate, Maximum | 53.91% | 45.28% | |
Exercise multiples | 2.80% | 2.80% | 2.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Time to maturity | 4 years 6 months | ||
Time to maturity, Minimum | 0 years | 0 years | |
Time to maturity, Maximum | 3 years | 3 years | |
Fair value per underlying ordinary share | ¥ 18.33 | ¥ 53.43 | ¥ 88.13 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of aggregate option activities (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Options - Beginning balance | 5,699,000 | |
Options granted in period | 1,583,000 | |
Number of Option - Exercised | (1,981,000) | |
Number of Options - Forfeited | (921,000) | |
Number of Options - Ending balance | 4,380,000 | 5,699,000 |
Number of Options - Options exercisable | 2,369,000 | |
Number of Options - Options vested or expected to be vested | 4,380,000 | |
Weighted Average Exercise Price - Beginning balance | ¥ 3.5 | |
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 7 months 17 days | 2 years 6 months 3 days |
Weighted Average Remaining Contract Life - Options exercisable | 2 years 2 months 12 days | |
Weighted Average Remaining Contract Life - Options vested or expected to be vested | 2 years 7 months 17 days | |
Aggregate Intrinsic Value - Options outstanding | ¥ 118,421 | ¥ 189,093 |
Aggregate Intrinsic Value - Options exercisable | 56,756 | |
Aggregate Intrinsic Value - Options vested or expected to be vested | ¥ 118,421 |
INCOME TAXES - Summary of incom
INCOME TAXES - Summary of income tax expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense: | ¥ 83,216 | ¥ 168,924 | ¥ 111,552 | |
Deferred income tax (benefit) expense: | 25,595 | (131,917) | (17,637) | |
Total income tax expense | ¥ 108,811 | $ 16,676 | ¥ 37,007 | ¥ 93,915 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||||
Income tax rate | 25.00% | 25.00% | 25.00% | ||
Income tax reconciliation percentage of tax holiday exemption | 2.12% | 18.86% | 12.87% | ||
Valuation allowances | ¥ 4,102 | ¥ 1,909 | |||
Tax loss carry-forward | ¥ 55,222 | ||||
Tax loss carry-forward, expiration date | Dec. 31, 2025 | Dec. 31, 2023 | |||
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. | ||||
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 Chuangzhen Software Co., Ltd. | |||||
Income Taxes [Line Items] | |||||
Income tax reconciliation tax holiday exemption amount | ¥ 0 | ||||
Income tax holiday exemption period | 3 years | ||||
Income tax reconciliation percentage of tax holiday exemption | 50.00% | ||||
Forecast [Member] | Shanghai Chuangzhen Software Co., Ltd. | |||||
Income Taxes [Line Items] | |||||
Income tax reconciliation tax holiday exemption amount | ¥ 0 | ||||
Income tax holiday exemption period | 3 years | ||||
Income tax reconciliation percentage of tax holiday exemption | 50.00% | ||||
Hong Kong | |||||
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 | ||||
Statute of limitations period for related party transaction (in years) | 10 years | ||||
Hong Kong | |||||
Income Taxes [Line Items] | |||||
Income tax rate | 16.50% | ||||
Mexico | |||||
Income Taxes [Line Items] | |||||
Income tax rate | 30.00% | ||||
Indonesia | |||||
Income Taxes [Line Items] | |||||
Percentage of CIT rate | 25 | ||||
Percentage of Corporate Income Tax adjust | 22 | ||||
Indonesia | Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Percentage of Corporate Income Tax adjust | 20 | 22 |
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, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Payroll and welfare payable | ¥ 11,635 | ¥ 12,131 |
Accrued expenses | 10,198 | 16,199 |
Allowance for uncollectible receivables, contract assets, loans receivable and others | 56,164 | 37,932 |
Net loss carryforward | 13,495 | 13,595 |
Others | 11,435 | 44,216 |
Gross deferred tax assets | 102,927 | 124,073 |
Valuation allowances | (4,102) | (1,909) |
Net deferred tax assets | 98,825 | 122,164 |
Deferred tax liabilities | ||
Uncollected revenues | (57,890) | (53,872) |
Total deferred tax liabilities | (57,890) | (53,872) |
Deferred tax assets, net | ¥ 40,935 | ¥ 68,292 |
INCOME TAXES - Summary of chang
INCOME TAXES - Summary of changes in valuation allowance (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Income Tax Disclosure [Abstract] | |
Balance at beginning of the year | ¥ (1,909) |
Additions | (2,871) |
Reversals | 678 |
Balance at end of the year | ¥ (4,102) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Non-deductible expense | 2.54% | 6.66% | 2.62% |
Research and Development expense super deduction | (0.62%) | (2.97%) | (1.44%) |
Effect of tax holiday | (2.12%) | (18.86%) | (12.87%) |
Different tax rate of entities operating in other jurisdiction | 4.86% | (0.07%) | 0.00% |
Valuation allowance | 0.61% | 0.32% | 0.00% |
Change in tax rate | 0.00% | (3.13%) | 0.00% |
True up | 0.05% | (0.40%) | (0.00%) |
Effective tax rate | 30.32% | 6.55% | 13.31% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax saving amount due to HNTE status | ¥ 106,516 | ¥ 90,819 | |
Tax saving amount due to Software enterprise | ¥ 7,527 | ||
Tax expense amount due to other jurisdiction | ¥ (17,405) | ¥ (411) | |
Income (loss) per share effect-basic and diluted | ¥ (0.05) | ¥ 0.50 | ¥ 0.45 |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Details) ¥ in Thousands | May 10, 2020shares | May 10, 2019CNY (¥)Voteshares | Dec. 19, 2018 | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | May 10, 2019$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Common shares, par value | $ / shares | $ 0.00 | ||||||
Common shares, shares outstanding | 216,100,000 | ||||||
Ordinary shares, split description | the Company completed a two for one split of ordinary share authorized and outstanding to 20,000 ordinary shares. | ||||||
Ordinary shares split ratio | 20,000 | ||||||
Stock sale price | $ / shares | $ 10.50 | ||||||
IPO Expenses Capitalization | ¥ | ¥ 234,354 | ||||||
Common Class A [Member] | |||||||
Common shares, shares authorized | 10,000,000,000,000 | 10,000,000,000,000 | |||||
Common shares, par value | $ / shares | $ 0.00 | $ 0.00 | |||||
Common shares, shares outstanding | 108,100,000 | 100,100,000 | 100,100,000 | ||||
Common Stock, Shares, Issued | 108,100,000 | 100,100,000 | |||||
Stock issued during period | 16,100,000 | ||||||
Number of votes | Vote | 1 | ||||||
Conversion of Class B Ordinary Share to Class A Ordinary Share | 8,000,000 | ||||||
Common Class B [Member] | |||||||
Common shares, shares authorized | 10,000,000,000,000 | 10,000,000,000,000 | |||||
Common shares, par value | $ / shares | $ 0.00 | $ 0.00 | |||||
Common shares, shares outstanding | 108,000,000 | 116,000,000 | 116,000,000 | ||||
Common Stock, Shares, Issued | 108,000,000 | 116,000,000 | |||||
Number of votes | Vote | 10 | ||||||
Conversion of Class B Ordinary Share to Class A Ordinary Share | (8,000,000) | ||||||
ADS | |||||||
Stock issued during period | 4,025,000 | ||||||
Common Stock | |||||||
Stock issued during period | 16,100,000 | ||||||
Jiayin Group Inc and Subsidiaries | |||||||
Common shares, shares authorized | 500,000,000 | ||||||
Common shares, par value | $ / shares | $ 0.0001 | ||||||
Common shares, shares outstanding | 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, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Earnings Per Share [Abstract] | ||||
Net income attributable to ordinary shareholders – basic and diluted | ¥ 252,883 | $ 38,757 | ¥ 527,747 | ¥ 611,758 |
Weighted average number of ordinary shares outstanding – basic and diluted | shares | 216,100,000 | 216,100,000 | 210,409,863 | 200,000,000 |
Basic and diluted net income per share | ¥ / shares | ¥ 1.17 | ¥ 2.51 | ¥ 3.06 |
INCOME PER SHARE - Additional I
INCOME PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Shares with dilutive effect | 0 | 0 | 0 |
LEASES - Additional Information
LEASES - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease expenses | ¥ 26,466 | ¥ 35,738 | ¥ 24,255 |
LEASES - Summary of supplementa
LEASES - Summary of supplemental consolidated balance sheet information related to leases (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Summary Of Supplemental Consolidated Balance Sheet Information Related To Leases [Abstract] | |||
Operating leases right-of-use assets | ¥ 6,926 | ¥ 37,215 | |
Current portion of lease liabilities | 3,322 | 2,735 | |
Non-current portion of lease liabilities | 1,873 | 32,480 | |
Total operating lease liabilities | ¥ 5,195 | $ 796 | ¥ 35,215 |
Weighted average remaining lease term (in years) | 1 year 8 months 12 days | 1 year 8 months 12 days | 1 year 2 months 12 days |
Weighted average discount rate | 4.75% | 4.75% | 4.75% |
LEASES - Summary of cash flow i
LEASES - Summary of cash flow information related to leases (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in measurement of liabilities: | ||
Operating cash flows from operating leases | ¥ 25,665 | ¥ 28,319 |
Non-cash right-of-use assets in exchange for new lease liabilities: | ||
Operating leases | ¥ 4,734 | ¥ 15,986 |
LEASES - Summary of maturities
LEASES - Summary of maturities of lease payments (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Operating Lease Liabilities Payments Due [Abstract] | |||
2021 | ¥ 3,462 | ||
2022 | 1,281 | ||
2023 and thereafter | 663 | ||
Total lease payment | 5,406 | ||
Less imputed interest | (211) | ||
Total | ¥ 5,195 | $ 796 | ¥ 35,215 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||
Services provided to related parties | ¥ 6,209 | ¥ 1,761 | ¥ 0 | ||
Loans from related parties | 3,113 | $ 477 | 230 | 70,765 | |
Amounts due from related parties | |||||
Amounts due from related parties | 542 | 130,722 | $ 83 | ||
Amounts due to related parties | |||||
Amounts due to related parties | 8,785 | 872 | $ 1,346 | ||
Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 70,481 | 106,348 | 133,165 | ||
Services Provided To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided to related parties | 6,209 | 1,761 | |||
Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 542 | 123,947 | 11,550 | ||
Loans From Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans from related parties | 3,113 | 230 | 70,765 | ||
Shanghai Jiayin Zhuoyue Wealth Management Co., Ltd | |||||
Amounts due to related parties | |||||
Amounts due to related parties | 3,442 | 722 | |||
Shanghai Jiayin Zhuoyue Wealth Management Co., Ltd | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 55,207 | 81,206 | 77,984 | ||
Shanghai Jiayin Finance Services Co., Ltd | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 1,564 | ||||
Amounts due to related parties | |||||
Amounts due to related parties | 2,150 | ||||
Shanghai Jiayin Finance Services Co., Ltd | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 5,845 | 8,280 | 13,806 | ||
Shanghai Jiayin Finance Services Co., Ltd | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 909 | ||||
Shanghai Shilupan Technology Co., Ltd. | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 7,863 | 17,202 | |||
Jiayin (Shanghai) Finance Information Service Co., Ltd | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 9,004 | 6,548 | 2,459 | ||
Li Mahui Technology Co. Ltd | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 425 | ||||
Kailiantong Payment Service Co., Ltd. | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 1,050 | ||||
Kailiantong Payment Service Co., Ltd. | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 2,255 | 8,065 | |||
Kailiantong Payment Service Co., Ltd. | Services Provided To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided to related parties | 6,209 | 1,761 | |||
Jiayin Credit Investigation Service Co., Ltd | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 131 | ||||
Amounts due to related parties | |||||
Amounts due to related parties | 80 | ||||
Jiayin Credit Investigation Service Co., Ltd | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 196 | 10,513 | |||
Jiayin Credit Investigation Service Co., Ltd | Loans From Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans from related parties | 80 | 70,765 | |||
Geerong Yun (Shanghai) Enterprise Development Co., Ltd. | Services Provided By Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Services provided by related parties | 3,136 | ||||
Geerong Yun (Shanghai) Enterprise Development Co., Ltd. | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 3,850 | ||||
Subsidiary Shareholder | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 463 | ||||
Amounts due to related parties | |||||
Amounts due to related parties | 3,113 | ||||
Subsidiary Shareholder | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 463 | ||||
Subsidiary Shareholder | Loans From Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans from related parties | 3,113 | ||||
China Smartpay Group Holdings Limited | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 124,862 | ||||
China Smartpay Group Holdings Limited | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 119,924 | ||||
Subsidiary Director | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 79 | ||||
Subsidiary Director | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | ¥ 79 | ||||
GAYANG (Hong Kong) Co., Limited | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 1,716 | ||||
GAYANG (Hong Kong) Co., Limited | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 1,716 | ||||
Shanghai Jiajie Assets Management Co., Ltd | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 800 | ||||
Shanghai Jiajie Assets Management Co., Ltd | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 800 | ¥ 7,700 | |||
SG Fintech Joint Stock Company | |||||
Amounts due from related parties | |||||
Amounts due from related parties | 599 | ||||
SG Fintech Joint Stock Company | Loans To Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans to related parties | 598 | ||||
Jiayin Financial Leasing (Shanghai) Co., Ltd | |||||
Amounts due to related parties | |||||
Amounts due to related parties | 150 | ||||
Jiayin Financial Leasing (Shanghai) Co., Ltd | Loans From Related Parties | |||||
Related Party Transaction [Line Items] | |||||
Loans from related parties | ¥ 150 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Summary of transactions with and amounts due from and due to related parties (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Apr. 22, 2020CNY (¥) | Sep. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥)Instalment | Dec. 31, 2020USD ($)Instalment | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) |
Related Party Transaction [Line Items] | |||||||
Lump-sum cash payment | ¥ 37,372 | $ 5,728 | ¥ 11,550 | ||||
Business combination under common control | 3,000 | ||||||
Additional Paid-In Capital [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Business combination under common control | 3,000 | ||||||
Loans To Related Parties | |||||||
Related Party Transaction [Line Items] | |||||||
Loans to related parties | 542 | ¥ 123,947 | ¥ 11,550 | ||||
Subsidiary Director | Loans To Related Parties | |||||||
Related Party Transaction [Line Items] | |||||||
Loans to related parties | ¥ 79 | ||||||
Interest rate on loan receivable | 6.00% | 6.00% | |||||
Number of loan instalments | Instalment | 36 | 36 | |||||
China Smartpay | |||||||
Related Party Transaction [Line Items] | |||||||
Interest rate on loan receivable | 9.00% | 9.00% | |||||
Loans | ¥ 119,924 | $ 17,225 | |||||
Interest receivable | ¥ 7,570 | ¥ 4,938 | |||||
Lump-sum cash payment | ¥ 37,372 | ||||||
SG Fintech Joint Stock Company | |||||||
Related Party Transaction [Line Items] | |||||||
Interest rate on loan receivable | 0.50% | 0.50% | |||||
Loans | ¥ 598 | $ 86 | |||||
Interest receivable | 1 | ||||||
SG Fintech Joint Stock Company | Shanghai Zhundian Enterprise Service Co., Ltd [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Net assets | ¥ 3,000 | ||||||
SG Fintech Joint Stock Company | Shanghai Zhundian Enterprise Service Co., Ltd [Member] | Additional Paid-In Capital [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Business combination under common control | ¥ 3,000 | ||||||
SG Fintech Joint Stock Company | Loans To Related Parties | |||||||
Related Party Transaction [Line Items] | |||||||
Loans to related parties | ¥ 598 |
RESTRICTED NET ASSETS - Additio
RESTRICTED NET ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | ¥ 1,031,649 | ¥ 738,494 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Apr. 01, 2021CNY (¥) | Jan. 05, 2021 | Dec. 31, 2020MXN ($) |
Aguila Information, S.A.P.I. de C.V. | |||
Subsequent Event [Line Items] | |||
Purchase price for shares | $ | $ 1 | ||
Subsequent Event | Aguila Information, S.A.P.I. de C.V. | |||
Subsequent Event [Line Items] | |||
Equity ownership percent transferred | 6.00% | ||
Equity ownership percent before agreement to transfer equity interest | 51.00% | ||
Equity ownership percent after agreement to transfer equity interest | 45.00% | ||
Subsequent Event | Jiayin Finance | |||
Subsequent Event [Line Items] | |||
Equity ownership percent transferred | 95.00% | ||
Purchase price for shares | ¥ | ¥ 95,000 |
FINANCIAL STATEMENTS SCHEDULE_3
FINANCIAL STATEMENTS SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets | ||||
Cash and cash equivalents | ¥ 117,320 | $ 17,980 | ¥ 122,149 | ¥ 41,441 |
Short-term investment , net | 0 | 69,618 | ||
Amounts due from related parties | 542 | 83 | 130,722 | |
Prepaid and other current assets | 61,289 | 9,393 | 91,002 | |
TOTAL ASSETS | 525,372 | 80,517 | 701,072 | |
Current Liabilities | ||||
Accrued expenses and other current liabilities | 70,954 | 10,875 | 158,705 | |
TOTAL LIABILITIES | 989,137 | 151,592 | 1,442,671 | |
Equity | ||||
Additional paid-in capital | 818,042 | 125,370 | 777,408 | |
Accumulated deficit | (1,266,848) | (194,153) | (1,519,731) | |
Accumulated other comprehensive income (loss) | (12,817) | (1,964) | 469 | |
Total Jiayin Group shareholder’s deficit | (461,623) | (70,747) | (741,854) | |
TOTAL LIABILITIES AND DEFICIT | 525,372 | 80,517 | 701,072 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 21,213 | 3,251 | 27,223 | |
Short-term investment , net | 69,618 | |||
Amounts due from subsidiaries and VIEs | 167,887 | 25,731 | 44,695 | |
Amounts due from related parties | 124,862 | |||
Prepaid and other current assets | 855 | 131 | 1,117 | |
Total current assets | 189,955 | 29,113 | 267,515 | |
Investments in subsidiaries and VIEs | (652,193) | (99,953) | (1,003,436) | |
TOTAL ASSETS | (462,238) | (70,840) | (735,921) | |
Current Liabilities | ||||
Accrued expenses and other current liabilities | 2,385 | 366 | 5,933 | |
TOTAL LIABILITIES | 2,385 | 366 | 5,933 | |
Equity | ||||
Ordinary shares | 0 | 0 | 0 | |
Additional paid-in capital | 815,042 | 124,911 | 777,408 | |
Accumulated deficit | (1,266,848) | (194,153) | (1,519,731) | |
Accumulated other comprehensive income (loss) | (12,817) | (1,964) | 469 | |
Total Jiayin Group shareholder’s deficit | (464,623) | (71,206) | (741,854) | |
TOTAL LIABILITIES AND DEFICIT | ¥ (462,238) | $ (70,840) | ¥ (735,921) |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating cost and expenses: | ||||
General and administrative | ¥ (154,963) | $ (23,749) | ¥ (230,248) | ¥ (150,465) |
Total operating cost and expenses | 998,053 | 152,958 | 1,695,507 | 2,196,734 |
Operating income | 302,107 | 46,300 | 534,669 | 685,206 |
Interest income | 7,716 | 1,183 | 5,720 | 169 |
Other income (loss) , net | 6,711 | 1,029 | 23,425 | 20,298 |
Income tax expense | 108,811 | 16,676 | 37,007 | 93,915 |
Other comprehensive income, net of tax | ||||
Change in cumulative foreign currency translation adjustment | (13,366) | (2,048) | 471 | |
Total comprehensive income attributable to Jiayin Group Inc. | 239,597 | 36,721 | 528,216 | 611,758 |
Parent Company | ||||
Operating cost and expenses: | ||||
General and administrative | (6,740) | (1,033) | (2,886) | |
Total operating cost and expenses | (6,740) | (1,033) | (2,886) | |
Operating income | (6,740) | (1,033) | (2,886) | |
Interest income | 7,701 | 1,180 | 4,910 | |
Other income (loss) , net | (67,169) | (10,294) | 1 | |
Income before taxes and income from equity in subsidiaries and VIEs | (66,208) | (10,147) | 2,025 | |
Income tax expense | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries and VIEs | 319,091 | 48,904 | 525,722 | 611,758 |
Net income | 252,883 | 38,757 | 527,747 | 611,758 |
Other comprehensive income, net of tax | ||||
Change in cumulative foreign currency translation adjustment | (13,286) | (2,036) | 469 | |
Other comprehensive income (loss) | (13,286) | (2,036) | 469 | |
Total comprehensive income attributable to Jiayin Group Inc. | ¥ 239,597 | $ 36,721 | ¥ 528,216 | ¥ 611,758 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net income | ¥ 252,883 | $ 38,757 | ¥ 527,747 | ¥ 611,758 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Depreciation and amortization | 23,158 | 3,549 | 17,710 | 11,300 |
Impairment of short-term investment | 67,169 | 10,294 | ||
Changes in operating assets and liabilities: | ||||
Amount due from/to related parties | 10,039 | 1,539 | 10,100 | 500,845 |
Prepaid and other current assets | 26,538 | 4,067 | (35,186) | 31,242 |
Accrued expenses and other current liabilities | (87,751) | (13,448) | 47,692 | 57,721 |
Net cash (used in) provided by operating activities | (35,505) | (5,439) | 26,291 | (228,368) |
Cash flows from investing activities | ||||
Purchase of short-term investment | (71,477) | |||
Net cash (used in) provided by investing activities | 33,226 | 5,092 | (234,178) | (16,423) |
Cash flows from financing activities | ||||
Net proceeds from issuance of ordinary shares | 243,629 | |||
Proceeds from exercise of options | 6,982 | 1,070 | ||
Net cash (used in) provided by financing activities | 10,595 | 1,624 | 244,674 | (433,600) |
Net increase (decrease) in cash and cash equivalents | (2,829) | (433) | 39,208 | (678,391) |
Cash, cash equivalents and restricted cash at beginning of the year | 122,149 | 18,720 | 82,941 | 761,332 |
Cash, cash equivalents and restricted cash at end of the year | 119,320 | 18,287 | 122,149 | 82,941 |
Parent Company | ||||
Cash flows from operating activities | ||||
Net income | 252,883 | 38,757 | 527,747 | 611,758 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Share of results of subsidiaries and VIEs | (319,091) | (48,904) | (525,722) | (611,758) |
Depreciation and amortization | 2,675 | 410 | 2,020 | |
Impairment of short-term investment | 67,169 | 10,294 | ||
Changes in operating assets and liabilities: | ||||
Amount due from/to related parties | (4,938) | |||
Amounts due from subsidiaries and VIEs | (35,702) | (5,471) | (44,695) | |
Prepaid and other current assets | (2,413) | (370) | (3,137) | |
Accrued expenses and other current liabilities | (3,548) | (544) | 5,933 | |
Net cash (used in) provided by operating activities | (38,027) | (5,828) | (42,792) | |
Cash flows from investing activities | ||||
Loan to a related party | (119,924) | |||
Purchase of short-term investment | (71,477) | |||
Cash collected from loan to related parties | 37,372 | 5,728 | ||
Net cash (used in) provided by investing activities | 37,372 | 5,728 | (191,401) | |
Cash flows from financing activities | ||||
Net proceeds from issuance of ordinary shares | 255,928 | |||
Proceeds from exercise of options | 6,982 | 1,070 | ||
Net cash (used in) provided by financing activities | 6,982 | 1,070 | 255,928 | |
Effect of foreign exchange rate changes on cash and cash equivalents | (12,337) | (1,891) | 5,488 | |
Net increase (decrease) in cash and cash equivalents | (6,010) | (921) | 27,223 | |
Cash, cash equivalents and restricted cash at beginning of the year | 27,223 | 4,172 | ||
Cash, cash equivalents and restricted cash at end of the year | ¥ 21,213 | $ 3,251 | ¥ 27,223 | |
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, 2020 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Convenience translation rate per US$1.00 | 6.5250 |