9F Inc. (NASDAQ: JFU) is a Chinese micro-cap fintech player that has been taking an absolute beating in the market. Playing in one of the most viciously competitive markets, this $68 million company is no match to take on the giants it stands up against. The future is bleak for JFU stock.
A Broad Overview of 9F Inc.
9F Inc. (JFU) essentially functions as an internet securities service platform, that dabbles around a range of related areas such as transaction facilitation, loan issuance, investment options, as well as traffic referral services. The fintech space in China is one that is highly competitive and consists of thousands of players that are similar to 9F. A core challenge that the company faced had been differentiation, with nothing unique offered that was not already launched in the market, at a higher quality. Similarly, strict regulations by the Chinese state authorities played a toll on the market and contributed to the gutting of low-tier players such as 9F Inc.
JFU Failing by Every Metric
To state it bluntly, things look quite dim for the future of JFU. It is a stock that is failing by every metric and has even received a NASDAQ notice recently, regarding failure to comply with the minimum bid price. Revenue from 2017 to 2021 has annually been declining hard, with the figures standing at $1.04 billion, $807 million, $635 million, $192 million, and finally $119 million in 2021. These plummeting performance figures, combined with its consecutive losses point to an imminently approaching collapse which would end in a bankruptcy filing.
JFU is a prime example of a failing stock that is unable to stand up to its competition in any dimension. Its dismal performance over the years has resulted in its price plummeting from $13 in 2019, to merely $0.21 at present.