Jiayin Group sells equity interest in Fujian Zhuoqun

Jiayin Group announced that the company has determined to sell its 100% equity interest in Fuzhou Zhuoqun Jieneng Information Technology Co., Ltd. and its subsidiary, Fujian Jiaxi Financial Guarantee Co., Ltd. On April 4, Shanghai Jiayin Finance Technology Co., Ltd, a wholly consolidated variable interest entity of the company, entered into a share acquisition framework agreement with Shenzhen Rongxinbao Non-Financial Guarantee Co., Ltd., an independent third-party guarantee company. Pursuant to the Agreement, Jiayin Finance agreed to transfer its 100% equity interest of Fujian Zhuoqun to Shenzhen Rongxinbao for an aggregate consideration of RMB395M, with February 28 as the base date of valuation. The profit and loss of Fujian Zhuoqun during the transitional period from the base date of valuation to the closing date of the proposed transaction belong to the company and will be settled in cash or any other form as determined by both parties. The base transaction consideration of RMB395M will be satisfied in the following manners: (i) approximately RMB316.2M will be settled with the payables the company owed to Fujian Zhuoqun as a result of the intercompany balances occurred before the proposed transaction, (ii) approximately RMB78.7M will be settled with the payables the company owed to Shenzhen Rongxinbao in connection with the disposal of Shanghai Caiyin Asset Management Co., Ltd. in 2019, and (iii) the rest will be paid in cash or any other form as determined by both parties. The closing of the proposed transaction is subject to certain customary conditions, including completion of satisfactory due diligence. Following the completion of the proposed transaction, Jiayin Finance will not own any equity interest in Fujian Zhuoqun.