On December 19, the P2P online lending platform, your parent company, Jiayin Jinke, formally submitted an application for an IPO (initial public offering) to the US Securities and Exchange Commission for listing on the Nasdaq Stock Exchange. The registration name of Jiayin Jinke is JIAYINGROUPINC., and the stock code is JFIN. The listing plan is expected to raise no more than $57500,000, or 396 million yuan.
According to the prospectus, Jiayin Jinkes net income in 2016 was 591.1 billion yuan (RMB, the same below), in 2017 it was 2.259 billion yuan, an increase of 28.8%, and in the first three quarters of 2018 it was 2.171 billion yuan, an increase of 46.7% over the same period last year. Net profit is also rising year by year, reaching - 389.8 billion yuan in 2016, achieving positive income of 539.5 billion yuan in 2017 and 449.4 billion yuan in the first three quarters of 2018, an increase of 13.4% over the same period last year.
You and I were founded for three years and went to the U.S. market with the group.
In 2011, the predecessor of Jiayin Jinke was founded by Yan Dinggui, the current director and CEO. In June 2015, Yan Dinggui acquired shell resources of Furen Technology Co., Ltd. and Jiayin Jinke was listed on the new third board. In September 2015, Jiayin Finance established a wholly-owned subsidiary, Shanghai Youyi Internet Financial Information Service Co., Ltd., to develop online personal financial services. Jiayin Jinke delisted from the new third board in April 2018 to prepare for the listing.
According to the prospectus, the three major shareholders before the companys IPO are: the founder and executive director of the company are strict and precious. They hold 58% of the shares through New Dream Capital Holding Limited, which is also the largest single shareholder and controlling shareholder. Mr. Zhang Guanglin, co-founder and vice-chairman of the company, holds 12% of the shares through Sunshinewood Holding Limited. DreamGlory L.P. has a 27% stake.
This issue will take the form of concurrent A-share and B-share. The holders of Class A common stock and Class B common stock have the same rights except voting rights and conversion rights. Class A common stock has one vote per share and Class B common stock has 10 votes per share, which can be converted into Class A common stock. Yan Dinggui, founder, director and CEO of the company, holds all shares in Class B common shares.
The average investment of investors is about 69,000 yuan.
According to the prospectus, Jiayin Jinkes income mainly comes from providing matching services for investors and borrowers as well as other related services provided during the loan period and charging service fees. Service fees are generally charged to borrowers, but also to investors under certain circumstances, automatic investment plan services and secondary market loan transfer service fees. It is worth noting that Jiayin Jinke does not use its own funds to invest in its own lending channels.
Investors have a high viscosity to your and our lending platforms, and over time, investors tend to invest more and more money. In the nine months from the beginning of 2018 to September 30, the average investment of investors was about 69,000 yuan, while the average investment of repetitive investors was about 86,000 yuan. Since 2018, the total investment contributed by the platform is 19.2 billion yuan, of which 96.1% comes from returnees who have tasted the fruits of successful investment.
Since 2018, 97.2% of investors have participated in the companys automation investment projects. The project can automatically match investors and borrowers, and reinvest investment returns according to investorspreferences for investment duration and loan duration. In addition, Jiayin Jinke has established a highly liquid secondary lending market in which investors can transfer their loan targets to other investors.
According to Jiayin Jinke, the borrowers of the platform are individuals with good reputation and have stable wages or credit records, but they have not yet been fully served by traditional financial institutions. The main way to get customers is through online debit channels, including online advertisements such as websites, search engines, appstores, and establishing online partnerships with online traffic markets that can reach high-quality debtors. Since 2018, the companys average cost of getting customers is 203 yuan, which is equivalent to 3.0% of the borrowers average loan principal, lower than the industry average of 3.4%.
Affected by the market, but the risk indicators improved
In the third quarter of 2018, the companys business and financial situation were affected by the tight market funds and the thunderstorm of Internet finance in China, which confirmed a net loss of 44 million yuan. Since late July, the government has implemented a new and robust monetary and fiscal policy, which has provided more liquidity to the market, alleviated the capital side of the market to a certain extent, alleviated investorsworries, and the negative situation began to improve.
Since September, the business performance of Jiayin Jinke has begun to pick up gradually. New loans amounted to 1.3 billion yuan. From August 2018 to September 2018, it reached 1.8 billion yuan, from October 2018 to 2 billion yuan, and from November 2018 to 2.3 billion yuan.
The investment scale increased from 1.3 billion yuan in August 2018 to 1.6 billion yuan in September 2018, 2.1 billion yuan in October 2018 and 2.6 billion yuan in November 2018. At the same time, the default rate of M1 (30 days) decreased from 1.40% to 1.32%, and that of M1-M3 (30-90 days) decreased from 5.72% to 5.17%.
Jiayin Jinke believes that the recovery of business indicators proves that the negative impact of adverse market development is temporary and has begun to fade.
Source of this article: Peng Mei News Responsible Editor: Yao Liwei_NT6056