9F - Capital Watch
9F Inc.
Company Profile
Sector: Financial Services
Industry: Credit Services
Sub-Industry: Consumer Finance
9F is a leading digital financial account platform integrating and personalizing financial services in China with footprint in Southeast Asia. The company delivers a comprehensive range of financial products and services including loan products, online wealth management, and payment facilitation, all integrated under a single digital financial account.
According to Oliver Wyman, among the independent lending marketplaces in China, 9F was the largest online consumer finance platform in terms of outstanding loan balance as of December 31, 2018. The company leverages technology, a deep understanding of its large user base and strategic partner relationships to create a one-stop experience bringing together borrowers, investors, financial institution partners, and merchant partners.
9F's core product is One Card – a digital alternative to conventional personal finance offerings. Around One Card, 9F has built an ecosystem connecting borrowers, investors, financial institution partners and merchant partners. It offers revolving loan products tailored to the specific spending needs and risk profiles of millions of users. 9F's One Card users can utilize their approved credit limits to purchase products from 9F's strategic partners including China UnionPay that has connected more than 3 million merchants, and from the One Card Mall, 9F's proprietary online shopping platform.Additionally, 9F's One Card users can draw down cash from approved credit limits to meet other financial needs. The company also offers non-revolving loan products that cover key consumption verticals such as home improvement, education, elective medical care services, and consumer electronics.
9F reported revenues increased 80.5% year-over-yearto $238.6 million in the three months throughSeptember2019. Net income was $1.5million in the third quartercompared with $32.2 million in the same period of 2018. 9F served 1.4 million active borrowers during the trimester. The loan origination volume of loans facilitated through 9F’s marketplace reached $3 billion in the third quarter of 2019, representing an increase of 253.9% year-over-year. Of those loans, 78.6% were funded by financial institutions as 9F has been shifting from peer-to-peer lending under China’s new regulations in the sector.As of June 30, 2019, 9F's institutional funding partners had approved the funding limit in the aggregate amount of over 70 billion yuan ($10.4 billion) under the direct lending program.
In the third quarter of 2019, 9F launched its proprietary platform, 9F Superbrain, powered by artificial intelligence, cloud, and blockchain technologies, that delivers services to financial institution partners and merchant partners. The company has also established a new center in Shenzhen to build an AI and risk management team to streamline its support for overseas markets, strengthen its risk management, and develop new innovative modules. Overseas, 9F is applying for operating licenses to facilitate consumer loans and is exploring possibilities in the verticals ofonline retail, travel, beauty, and social media.
Corporate Information
Jiufu Building, Ronsin Technology Center,
Chaoyang District, Beijing,
China, 100102
Phone: +86 (10) 8527-6996
Email: pinpaituiguang@9fgroup.net
Key Executives
Mr. Lei Sun, Founder and CEO
Mr. Sun has over fifteen years of experience in financial services industry and is a recipient of numerous prestigious national awards. Prior to founding 9F in August 2006, Mr. Sun was a senior manager at the head office of China Minsheng Bank (HKEX: 1988) from September 2005 to August 2006. From August 2005 to September 2005, Mr. Sun served as a department head with Digital China Group Co., Ltd. (SZ: 000034) in charge of the development of internet financing products. Mr. Sun received his bachelor's degree in finance and EMBA from Peking University in 2003 and 2013, respectively.
Mr. Xiaojun Yang, President
Prior to joining 9F, Mr. Yang served as the vice chairman of Lufax, the largest P2P and financial asset trading platform in China, from February 2015 to March 2016. Between May 2009 and February 2015, Mr. Yang worked as the deputy general director of the Financial Innovation Supervision Department of the CBRC. From October 2005 to May 2009, Mr. Yang served as the division director of fund investment of Mutual Fund Supervision of the CSRC. From September 2004 to October 2005, Mr. Yang served as the depute general secretary of the Government of Mianyang City, Sichuan Province. Mr. Yang received his bachelor's degree in applied mathematics from Xi'an Jiaotong University in 1996, his master's degree in international economics and Ph.D degree in accounting from Xiamen University in 2002, and his MBA degree from the University of Cambridge in 2007.
Mr. Lei Liu, Co-founder, Senior VP and CRO
Prior to founding 9F, Mr. Liu worked as the senior product manager of the retail banking department of the head office of China Minsheng Bank (HKEX: 1988) from 2006 through 2007, responsible for developing personal loan products. Prior to that, Mr. Liu served as a supervisor of personal finance business with the Shenzhen branch of China Minsheng Bank, responsible for business development and product design since 2003. Mr. Liu received his bachelor's degree in economics from Shanghai University of Finance and Economics in 2003, and his EMBA degree from Peking University in 2018.
Investor FAQs
1. When is 9F established?
We have built a trusted brand with a demonstrated track record of delivering value to both investors and borrowers. The origin of 9F can be traced back to 2006.
2. When does 9F's fiscal year end?
9F fiscal year ends on December 31.
3. On which exchange is 9F's stock traded and what is the ticker symbol?
9F's American Depositary Shares (ADSs) is listed on the Nasdaq Global Select Market under the symbol "JFG."
4. How many 9F's ordinary shares does one American Depositary Share ("ADS") of the Company represent?
Each ADS of 9F represents one Class A ordinary shares.
5. How can I obtain a copy of 9F's Annual Report?
Annual reports are available via this website. All SEC documents are also accessible online through the SEC Filings page.
6. Who is 9F's US legal counsel?
Skadden, Arps, Slate, Meagher & Flom LLP
7. Who is 9F's Depositary Bank for ADSs?
Citibank, N.A.
8. How big is 9F's loan volume?
9F has 76.7 million registered users as of March 31, 2019, and company's loan origination volume was 9.7 billion (US$1.4 billion) for the three months ended March 31, 2019, representing a 32.1% decrease from RMB14.3 billion for the same period in 2018.
Key Executives
Mr. Yanjun Lin, CFO
Mr. Lin has worked in the banking and finance industry for more than 15 years. Mr. Lin has been serving as an independent non-executive director of Bank of Jinzhou Co., Ltd. (HKEX: 0416) since January 2017. Mr. Lin served as the director of Barclays Capital Asia Limited from August 2012 to April 2015. Prior to that, Mr. Lin served as an associate, vice president and director at Credit Suisse (Hong Kong) Limited from June 2008 to August 2012. Mr. Lin received his bachelor's degree in money and banking from Peking University in 2001 and is an EMBA candidate of PBC School of Finance of Tsinghua University.
Mr. Lixing Chen, Co-founder, Senior VP
Mr. Chen is 9F's co-founder and vice president in charge of research and development of financial service solutions and internet products. From January 2005 to July 2006, Mr. Chen worked as a project manager with Regal Lloyds International Real Estate Consultants Beijing Co., Ltd. Between July 2003 and December 2004, Mr. Chen served as an analyst at China Economic Information Network Co., Ltd. Mr. Chen received his bachelor's degree in finance from Peking University in 2003 and his master's degree in finance from the Institute of Finance & Banking of the Chinese Academy of Social Sciences in 2014.
Mr. Zhijun Li, CMO
Prior to join 9F, Mr. Li worked with Tencent Technology (Beijing) Co., Ltd. as product marketing manager, in charge of product design and marketing operation. From January 2009 to June 2013, Mr. Li worked with Beijing Kuailete Education Consultation Co., Ltd., where he served as a co-founder and was in charge of its brand promotions and the designs and operations of the relevant education products. Prior to that, from September 2006 to January 2009, Mr. Li served as a regional sales director of P&G (Guangzhou) Ltd., responsible for the marketing and promotion of P&G products in the entire Bohai gulf zone. Mr. Li received his bachelor's degree in car body design and his master's degree in vehicle engineering from Jilin University in 2003 and 2006, respectively.
IR Contacts
In the United States:
Ms. Honglan Cheng, Selina
Head of Investor Relations
Email: selina.cheng@capitalwatch.com
Tel: +1-650-799-7109
Research Report