Shulou(Shulou.com)06/03 Report--

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Internet finance leader Jiufu finally caught the last bus of the annual report. On June 17th, Nine Fortune released its unaudited results for the fourth quarter of fiscal 2019 and for the full year ahead of the U. S. stock market.

Revenue in the fourth quarter of 2019 was 469 million yuan, down 54.4% from a year earlier, and a net loss of 2.8631 billion yuan, compared with 167.2 million yuan a year earlier, according to financial data.

The plunge in the fourth quarter directly dragged down Jiufu's performance for the whole of 2019. According to the financial report, Jiufu's total revenue in 2019 was 4.425 billion yuan, down 20.4% from a year earlier, while the net loss was 2.1536 billion yuan, up 208.09% from a year earlier.

Jiufu received a lot of attention as a rookie who went public in August last year, but the "fall-out" of partner PICC made the rookie Jiufu worried.

Internet financial haze, fleeing to the B side

The online lending platform Jiufu, which was founded in 2006, is still firmly listed in the spring tide of Internet finance last year. It's just that after Jiufu experienced a change of listing location and halved the amount of capital raised, the market is not so confident.

On the day of Jiufu's listing, the share price was quoted at $10.88, up 14.5% from the offering price of $9.50. After that, the share price continued to rise twice to trigger a circuit breaker, rising by more than 40% at one point. However, the rise did not last long, then fell, and closed up only 0.84%.

At the moment when lufax, the most famous online loan intermediary platform, proposed that it would transform and dilute the proportion of Internet financial business, Jiufu, as the leader of Internet finance, also had to seek transformation.

In early 2019, Jiufu put forward the "T.E Technology enabling Strategy" to provide comprehensive technical support for cooperative financial institutions and scene partners, and made use of technical features such as artificial intelligence big data and cloud computing in the financial service process to connect financial institutions and users and improve service efficiency.

Jiufu's Jiufu financial cloud, Jiufu super brain and Jiufu super digital wallet constitute a complete intelligent financial product system, promoting scene cooperation objects and financial institutions into 3A enterprises (AI, API, Account), enabling scenarios, products, technology, cooperation and other ecosystems.

After Jiufu Center turned to technology enabling, it launched a number of artificial intelligence application products, similar to intelligent risk control system, intelligent voice analysis, anti-fraud system and so on. This has increased the leverage for Jiufu to cooperate with B-end enterprises, and Jiufu's latest financial data also show that its "T.E technology enabling strategy" is effective.

According to the financial report, the amount of loans made by Jiufu in the fourth quarter of 2019 was 14.3 billion yuan, up 62.4% from a year earlier, of which loans from institutional funds accounted for 79.8%, compared with 6.6% in the same period last year.

The amount of loans brokered by Jiufu for the whole of 2019 was 55.1 billion yuan, an increase of 20.9% over the same period last year. Among them, the proportion of loans made by institutional funds was 63.3%, compared with 1.6% in the same period last year.

The number of active borrowers in Jiufu was 1 million in the fourth quarter of 2019, up 80.2% from a year earlier, and the number of active borrowers for the whole of 2019 was 2.08 million, up 23.7% from a year earlier. As of December 31, 2019, the number of registered users of the platform was 101.4 million, an increase of 40.2% compared with the same period last year.

Jiufu's "T.E technology enabling strategy" strengthens its competitiveness in B-end enterprises and attracts more users at the same time. However, Jiufu, who was "going well" all the way, overturned, and the dispute with PICC property insurance not only made Jiufu's annual financial report "difficult to give birth" in 2019, but also made it jump into a whirlpool of losses.

Friendship turns over and loan matchmaking business is blocked.

The late arrival of Jiufu's unaudited results for the fourth quarter of fiscal year 2019 and for the whole year is largely due to the "fall-out" of the partner's PICC.

PICC property insurance and Jiufu both issued an announcement that the two companies had disputes due to a dispute over 2.3 billion yuan in technical service fees, and both companies have filed lawsuits. Jiufu said that PICC property insurance unpaid technical service fees totaled 2.2 billion yuan, and put forward a request: PICC property insurance compensation of 2.3 billion yuan, to make up for the failure to pay timely technical service fees and related late fee losses.

The dispute with PICC property insurance directly affected the performance of Jiufu.

Revenue in the fourth quarter of 2019 was 469 million yuan, compared with 1.0278 billion yuan in the same period last year, down 54.4% from a year earlier, according to financial data. Jiufu said in the financial report that the decline in revenue was due to a decline in revenue from loan matchmaking services.

Of the three parts that make up Jiufu's revenue, income from loan matchmaking services has always been the focus.

The income from the loan matchmaking service of Jiufu was 88 million yuan in the fourth quarter of 2019, down 90.5% from 925.4 million yuan in the same period last year, while the business income fell off the cliff because of the dispute between Jiufu and PICC property insurance. The service income under the Jiufu direct loan program cannot be recognized.

Of the remaining two businesses of Jiufu, the income from post-loan management services was 301.6 million yuan, an increase of 299.5% compared with 75.5 million yuan in the same period last year, while other income was 79.4 million yuan, up 194.9% from 26.9 million yuan in the same period last year. Although both businesses performed well, revenue from the main business loan matchmaking service nearly halved, directly affecting Jiufu's performance in the fourth quarter of 2019 and for the whole year.

According to the financial report, Jiufu posted a net loss of 2.8631 billion yuan in the fourth quarter of 2019, compared with a net income of 167.2 million yuan in the same period last year. Jiufu posted a net loss of 2.1536 billion yuan in 2019, compared with 1.9925 billion yuan in the same period last year.

It never rains but it pours. While its performance is affected, the expenditure costs of Jiufu are still growing.

It is difficult to memorize the cost.

In the financial report of Jiufu, we can see the rise in the cost of expenses except for the administrative expenses.

On the one hand, in today's era when traffic is king, it can be said that no effort has been spared in order to get customers.

Financial data show that Jiufu's management expenses in the fourth quarter of 2019 were 217.4 million yuan, a decrease of 47.6 percent compared with 414.8 million yuan in the same period last year, and sales and marketing expenses were 721.1 million yuan. Compared with 331 million yuan in the same period last year, the cost of obtaining customers increased by 117.9%.

On the other hand, in addition to the general environmental regulatory pressure, due to the epidemic and other reasons, the repayment ability of borrowers on the platform has been negatively affected, and Jiufu's outstanding loan balance has also increased significantly.

Data show that as of December 31, 2019, the outstanding loan balance was 76 billion yuan, an increase of 46.2 percent compared with 52 billion yuan in the same period last year.

Although Jiufu has strengthened in controlling the number of new borrowers and strengthening risk assessment, the inevitable overall delinquency rate is still growing. Correspondingly, Jiufu also surged in collection expenses, with financial data showing that it paid 478.1 million yuan for collection services to third-party companies in the fourth quarter of 2019, up 348% from 106.7 million yuan in the same period last year.

Costs are rising, and Jiufu is not optimistic about the next performance outlook.

Jiufu expects to make loans of 2.3 billion yuan in the first quarter of 2020 and between 10 and 1.2 billion yuan in the second quarter of 2020. From the financial data, we can see that the amount of loans made by Jiufu in the fourth quarter of 2019 was 14.3 billion yuan.

At present, the nine rich not only have to face the poor performance, but also face the problem of negative impression produced by their own image.

The road ahead is difficult to predict.

Although Jiufu has already acquired partnerships with a number of financial institutions, Jiufu, which has suffered huge losses, may also have some negative impact on its partners.

Information released by Jiufu shows that as of September 30, 2019, Jiufu has completed more than 90 billion yuan of institutional capital credit with 30 financial institutions. Jiufu also revealed that it has cooperated with two local city commercial banks, two private banks, a number of consumer financial companies and other financial institutions, and the cumulative credit scale of institutional funds has reached 110 billion yuan.

It is more difficult to gain the trust of B-side enterprises than C-side enterprises. At present, Jiufu appears in the PICC dispute, resulting in huge losses, while Jiufu is losing money, the enterprises that cooperate with it may also be affected. There needs to be a question mark over whether Jiufu can still gain the trust of financial institutions in the future.

At the same time, Jiufu, as a loan platform, has received many complaints. On the black cat complaint platform, the number of complaints about Jiufu exceeded 30,000, and the number of complaint posts about Jiufu reached more than 10,000. Whether on the B side or the C side, Jiufu needs to maintain its own image.

All in all, as an online loan platform, it is not easy for Jiufu to escape from Internet finance to the B side. The "overturning of friendship" with partners has not only led to Jiufu's current losses, but also more unknown in the longer run.

(official account of Liu Kuang / tr. by Phil Newell) ID:liukuang110

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