Yiren Digital Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Rhea-AI Summary

Yiren Digital Ltd. (NYSE: YRD) reported its unaudited financial results for Q4 and fiscal year 2020, highlighting a restructuring to enhance its wealth management and credit services. Q4 total net revenue was RMB 1.16 billion, a 14% quarter-over-quarter increase, but down 51% year-over-year. Wealth management revenues decreased by 20.8%, while credit business revenue fell by 59.4%. The company incurred a net loss of RMB 559.6 million, largely due to a one-time loss of RMB 655.8 million from the restructuring. The outlook for 2021 anticipates wealth management sales of RMB 20-30 billion and loan originations of RMB 20-25 billion.

Positive

• Total client assets for current investment products increased by 71.2% quarter-over-quarter to RMB 8.55 billion.
• Sales volume of current investment products grew 48.8% from Q3 2020 to RMB 6.84 billion.
• Non-GAAP net income of RMB 96.2 million, a 21% increase quarter-over-quarter.

Negative

• Net loss of RMB 559.6 million in Q4 2020 compared to net income of RMB 404 million in Q4 2019.
• Total net revenue for 2020 was RMB 3.96 billion, down from RMB 8.62 billion in 2019.
• Revenue from credit business decreased by 60.7% year-over-year to RMB 2.53 billion.

BEIJING, April 1, 2021 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading comprehensive personal financial service platform in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2020.

On December 31, 2020, the Company entered into definitive agreements in relation to a business restructuring with CreditEase Holdings (Cayman) Limited ("CreditEase"), the controlling shareholder of the Company, to streamline the Company's service lines and reposition the Company as a comprehensive personal financial service platform (the "Restructuring"). Upon the completion of the Restructuring, the Company has ceased control over the business (the "Disposed Business") currently operated by Hengcheng Technology Development (Beijing) Co., Ltd. ("Hengcheng"), a variable interest entity of the Company, and CreditEase has, through its subsidiaries and affiliates, obtained control over Hengcheng and the Disposed Business operated by Hengcheng, and paid the designated subsidiaries of the Company an aggregate amount of RMB 67.0 million in cash.

Fourth Quarter 2020 and Fiscal Year 2020 Operational Highlights

Wealth Management

• Cumulative number of investors served reached 2,326,169 as of December 31, 2020, representing an increase of 1.9% from 2,283,828 as of September 30, 2020 and compared to 2,210,530 as of December 31, 2019.
• Number of active investors^[1] of current investment products^[2] was 163,593 as of December 31, 2020, representing a decrease of 4% from 170,907 as of September 30, 2020, and compared to 88,015 as of December 31, 2019.
• Total client assets^[3] for current investment products was RMB 8,550.7 million (US$1,310.5) as of December 31, 2020, representing an increase of 71.2% from 4,994.6 million as of September 30, 2020, and compared to RMB 1,063.6 million as of December 31, 2019.
• Sales volume of current investment products amounted to RMB 6,836.9 million (US$ 1,047.8 million) in the fourth quarter of 2020, representing an increase of 48.8% from RMB 4,593.3 million in the third quarter of 2020 and compared to RMB 2,548.4 million in the same period of 2019. For the fiscal year 2020, sales volume of current investment products reached RMB 15,779.7 million (US$ 2,418.3 million), compared to RMB 3,929.1 million in 2019.

Consumer Credit

• Total loan originations in the fourth quarter of 2020 reached RMB 4.2 billion (US$0.6 billion), representing an increase of 31.0% from RMB 3.2 billion in the third quarter of 2020 and compared to RMB 8.0 billion in the fourth quarter of 2019.
• Cumulative number of borrowers served reached 5,249,936 as of December 31, 2020, representing an increase of 3.7% from 5,060,824 as of September 30, 2020 and compared to 4,695,487 as of December 31, 2019.
• Number of borrowers served in the fourth quarter of 2020 was 189,117, representing an increase of 32.0% from 143,238 in the third quarter of 2020 and compared to 125,622 in the fourth quarter of 2019. Total number of borrowers served was 525,320 in 2020.
• Total outstanding principal balance of performing loans reached RMB 23,593.1 million (US$3,615.8 million) as of December 31, 2020, representing a decrease of 15.8% from RMB 28,007.2 million as of September 30,2020.

[1] Active investors refer to those who have made at least one investment through our wealth management platform or have had client assets with us above zero in the past twelve months.

[2] Current investment products include wealth management products the Company source from financial institutions, which do not include any of the Company's legacy products. Legacy products refer to the unsecured credit products the Company offered historically under its retail credit facilitation business which have been phased out for strategic reasons.

[3] Client assets refer to the outstanding balance of client assets generated through our platforms, where an asset is counted towards the outstanding balance for so long as it continues to be held by the investor who acquired it through our platform.

"Despite the unusual operating environment in 2020, we are pleased to see significant progresses in our strategic transitions, with wealth management growing into a main business pillar and with our new credit products continuing to ramp up in volume," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "We have successfully completed our legacy business restructuring at year-end, which will allow Yiren Digital to solely focus on the growth of our wealth management and loan facilitation-based credit businesses. With that, I believe Yiren Digital is well positioned to transition into China's leading digital financial service platform."

"On wealth management, we continue to see impressive growth momentum in the fourth quarter of 2020, and the demand remains strong going into the new year. More importantly, revenue generated from our current investment products is becoming a significant driver of revenue, increasing to 31% of our total net revenue from 12% last quarter. As of December 31, 2020, total client assets for our current investments products increased by 71% from prior quarter to RMB 8.6 billion. Notably, our insurance business has been growing at a better-than-expected rate, bringing in strong synergies to our other wealth management products and services, and will provide strong revenue contribution in 2021."

"On credit business, the two loan products that we started to shift towards in early 2020 have now grown into our main revenue contributor. In the fourth quarter of 2020, our small revolving loans and secured auto loans together accounted for 87% of total loans originated as compared to 67% last quarter. Compared with our unsecured standard loan products, these two products show better risk performance and enjoy higher unit economics, which enables us to further drive up profitability going forward."

"We continue to deliver solid financial results in the fourth quarter of 2020, increasing our total net revenue by 14% quarter over quarter to RMB 1.2 billion" said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "On the balance sheet side, our cash position remains strong with RMB 2.6 billion of cash and short-term investment as of December 31, 2020. The restructuring has impacted our fourth quarter and fiscal year 2020 results and excluding the one-time loss recognized, our non-GAAP net income was RMB 96.2 million, increasing by 21% quarter over quarter. "

Fourth Quarter 2020 Financial Results

Total net revenue in the fourth quarter of 2020 was RMB 1,160.9 million (US$177.9 million), compared to RMB 2,363.6 million in the same period last year due to decreased loan volume. Revenue from wealth management business reached RMB 413.1 million (US$63.3 million), representing a decrease of 20.8% from RMB 521.8 million in the fourth quarter of 2019. Revenue from credit business reached RMB 747.8 million (US$114.6 million), representing a decrease of 59.4% from RMB 1,841.8 million in the fourth quarter of 2019.

Sales and marketing expenses in the fourth quarter of 2020 were RMB 295.1 million (US$45.2

million), compared to RMB 960.4 million in the same period last year. The decrease was primarily due to internal restructuring to optimize operating efficiencies.

Origination, servicing and other operating costs in the fourth quarter of 2020 were RMB 596.9 million (US$91.5 million), compared to RMB 173.9 million in the same period last year. The increase was primarily due to an increase in loan servicing costs of disposed business and commission expenses as insurance volume expands.

General and administrative expenses in the fourth quarter of 2020 were RMB 149.3 million (US$22.9 million), compared to RMB139.9 million in the same period last year.

Provision for contract assets, receivables and others in the fourth quarter of 2020 were RMB 34.5 million (US$5.3 million), compared to RMB 588.3 million in the same period last year due to decreased loan volume and improved risk performance as the loan product mix changed with the evolution of the Company's credit business model.

Loss of disposal in the fourth quarter of 2020 were RMB 655.8 million (US$100.5 million). The loss was attributable to the Restructuring in which a one-time difference between the disposal consideration and the book value of the disposed businesses was recognized. The disposal consideration factored in the future expected losses of the disposed business.

Income tax benefit in the fourth quarter of 2020 was RMB 53.3 million (US$8.2 million).

Net loss in the fourth quarter of 2020 was RMB 559.6 million (US$85.8 million), as compared to net income of RMB 404.0 million in the same period last year.

Adjusted net income^[4](non-GAAP) in the fourth quarter of 2020 was RMB 96.2 million (US$14.7 million), excluding the loss of disposal from Restructuring.

Adjusted EBITDA^[4] (non-GAAP) in the fourth quarter of 2020 was RMB 48.9 million (US$7.5 million), compared to RMB 508.1 million in the same period last year.

Basic and diluted loss per ADS in the fourth quarter of 2020 was RMB 6.7 (US$1.0), compared to a basic income per ADS of RMB 4.4 and a diluted income per ADS of RMB 4.3 in the same period last year.

Net cash used in operating activities in the fourth quarter of 2020 was RMB 219.1 million (US$33.6 million), compared to net cash generated from operating activities of RMB 88.1 million in the same period last year.

Net cash used in investing activities in the fourth quarter of 2020 was RMB 981.1 million (US$150.4 million), compared to net cash provided by investing activities of RMB 1,197.2 million in the same period last year.

[4] "Adjusted net income(Loss)", "Adjusted EBITDA" and "Adjusted EBITDA margin" are non-GAAP financial measures. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliation of Adjusted Net Income/(Loss)" and "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

As of December 31, 2020, cash and cash equivalents was RMB 2,469.9 million (US$378.5 million), compared to RMB 2,836.2 million as of September 30, 2020. As of December 31, 2020, the balance of held-to-maturity investments was RMB 3.3 million (US$0.5 million), compared to RMB 2.3 million as of September 30, 2020. As of December 31, 2020, the balance of available-for-sale investments was RMB 175.5 million (US$26.9 million), compared to RMB 511.3 million as of September 30, 2020.

Delinquency rates. As of December 31, 2020, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.2%, 1.7% and 1.4% respectively, compared to 1.2%, 2.0% and 1.7% respectively as of December 31, 2019. As of December 31, 2020, the delinquency rates for loans originated under loan facilitation model that are past due for 15-29 days, 30-59 days and 60-89 days were 0.5%, 0.7% and 0.6% respectively, compared to 0.8%, 1.3% and 1.0% respectively as of December 31, 2019.

Cumulative M3+ net charge-off rates. As of December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2017 was 16.9%, compared to 17.0% as of September 30, 2020. As December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2018 was 18.6%, compared to 18.3% as of September 30, 2020. As of December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2019 was 13.6%, compared to 11.9% as of September 30, 2020. Particularly, as of December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2017, 2018 and 2019 under loan facilitation model was 10.6%, 10.2% and 8.5% respectively.

Fiscal Year 2020 Financial Results

Total net revenue in 2020 was RMB 3,962.0 million (US$607.2 million), compared to RMB 8,616.8 million in 2019 due to decreased loan volume. Revenue from wealth management business in 2020 reached RMB 1,432.4 million (US$219.5 million), representing a decrease of 34.2% from RMB 2,176.2 million in 2019. Revenue from credit business in 2020 was RMB 2,529.6 million (US$387.7 million), representing a decrease of 60.7% from RMB 6,440.6 million in 2019.

Sales and marketing expenses in 2020 was RMB 1,905.1 million (US$292.0 million), compared to RMB 4,457.4 million in 2019 due to decreased marketing campaigns in 2020 as a result of the COVID-19 outbreak.

Origination, servicing and other operating costs in 2020 was RMB 1,104.7 million (US$169.3 million), compared to RMB 665.1 million in 2019, mainly due to increased commission expenses as insurance volume expands.

General and administrative expenses in 2020 was RMB 630.6 million (US$96.6 million), compared to RMB 741.3 million in 2019.

Provision for contract assets, receivables and others in 2020 were RMB 371.6 million (US$57.0 million), compared to RMB 1,625.1 million in 2019, due to decreased loan volume and better risk performance as the loan product mix changed with the evolution of the Company's credit business model.  

Income tax benefit in 2020 was RMB 80.6 million (US$12.4 million).

Net loss in 2020 was RMB 692.7 million (US$106.2 million), compared to net income of RMB1,155.6 million in 2019. The loss was mainly due to a one-time loss on disposal of RMB 655.8 million post Restructuring.

Adjusted net loss (non-GAAP) in 2020 was RMB 36.9 million (US 5.7 million), excluding the loss of disposal from the Restructuring. The loss was mainly attributable to the concessions that were granted in 2020 to provide relief to borrowers who were significantly impacted by COVID-19 outbreak.

Adjusted EBITDA (non-GAAP) in 2020 was a loss of RMB 73.2 million (US$11.2 million), compared to an adjusted EBITDA of RMB 1,491.3 million in 2019. Adjusted EBITDA margin^[4](non-GAAP) in 2020 was a loss of 1.8%, compared to 17.3% in 2019.

Basic and diluted loss per ADS in 2020 was RMB 7.7 (US$1.2), compared to a basic income per ADS of RMB 12.5 and a diluted income per ADS of RMB 12.4 in 2019.

Net cash generated from operating activities in 2020 was RMB 282.0 million (US$43.2 million), compared to net cash generated from operating activities of RMB 274.2 million in 2019.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company's guidance for 2021 is as follows:

• For wealth management business, total sales volume of current products to be between RMB 20 billion and RMB 30 billion;
• For credit-tech business, total loan originations to be between RMB 20 billion and RMB 25 billion.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted Net Income/(Loss), adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 6.5250 to US$1.00, the effective noon buying rate on December 31, 2020, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on April 1, 2021 (or 8:00 p.m. Beijing/Hong Kong Time on April 1, 2021).

Participants who wish to join the call should register online in advance of the conference at:

http://apac.directeventreg.com/registration/event/5099352

Please note the Conference ID number of 5099352.

Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number. 

Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.

A replay of the conference call may be accessed by phone at the following numbers until April 8, 2020:

International	+61 2-8199-0299
U.S.	+1 646-254-3697
Replay Access Code:	5099352

Additionally, a live and archived webcast of the conference call will be available at ir.yirendai.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is a leading personal financial services platform in China. The Company provides customized asset allocation services and wealth management solutions to China's mass affluent population as well as utilizes online and offline channels to provide retail credit facilitation services to individual borrowers and small business owners.

 

 

 

Unaudited Condensed Consolidated Statements of Operations
(in thousands, except for share, per share and per ADS data, and percentages)
	For the Three Months Ended									For the Year Ended
	December 31, 2019		September 30, 2020		December 31, 2020		December 31, 2020			December 31, 2019		December 31, 2020		December 31, 2020
	RMB		RMB		RMB		USD			RMB		RMB		USD
Net revenue:
Loan facilitation services	1,602,341		406,413		393,682		60,334			5,182,028		1,329,720		203,789
Post-origination services	117,110		195,570		201,873		30,938			757,783		670,440		102,750
Account management services	489,641		157,327		50,566		7,750			2,016,678		921,779		141,269
Others	154,536		263,452		514,730		78,886			660,295		1,040,023		159,391
Total net revenue	2,363,628		1,022,762		1,160,851		177,908			8,616,784		3,961,962		607,199
Operating costs and expenses:
Sales and marketing	960,396		485,055		295,133		45,231			4,457,353		1,905,095		291,969
Origination,servicing and other operating   costs	173,942		239,655		596,926		91,483			665,083		1,104,682		169,300
General and administrative	139,935		159,670		149,276		22,878			741,268		630,555		96,637
Provision for contract assets, receivables   and others	588,344		25,016		34,520		5,290			1,625,051		371,629		56,955
Loss of disposal	-		-		655,839		100,512			-		655,839		100,512
Total operating costs and expenses	1,862,617		909,396		1,731,694		265,394			7,488,755		4,667,800		715,373
Other income/(expenses):
Interest income, net	10,454		11,003		8,554		1,311			73,367		61,623		9,444
Fair value adjustments related to    Consolidated ABFE	(35,596)		(30,905)		(54,106)		(8,292)			3,866		(143,988)		(22,067)
Others, net	6,942		2,726		3,444		528			191,757		14,844		2,275
Total other (expenses)/income	(18,200)		(17,176)		(42,108)		(6,453)			268,990		(67,521)		(10,348)
Income/(loss) before provision for income taxes	482,811		96,190		(612,951)		(93,939)			1,397,019		(773,359)		(118,522)
Share of results of equity investees	2,088		-		-		-			(2,180)		-		-
Income tax expense/(benefit)	80,914		16,353		(53,342)		(8,175)			239,228		(80,611)		(12,354)
Net income/(loss)	403,985		79,837		(559,609)		(85,764)			1,155,611		(692,748)		(106,168)
Weighted average number of ordinary shares outstanding, basic	185,586,690		182,144,192		167,964,040		167,964,040			185,219,586		180,301,898		180,301,898
Basic income/(loss) per share	2.1768		0.4383		(3.3317)		(0.5106)			6.2391		(3.8422)		(0.5888)
Basic income/(loss) per ADS	4.3536		0.8766		(6.6634)		(1.0212)			12.4782		(7.6844)		(1.1776)
Weighted average number of ordinary shares outstanding, diluted	186,322,276		182,730,892		167,964,040		167,964,040			186,535,464		180,301,898		180,301,898
Diluted income/(loss) per share	2.1682		0.4369		(3.3317)		(0.5106)			6.1951		(3.8422)		(0.5888)
Diluted income/(loss) per ADS	4.3364		0.8738		(6.6634)		(1.0212)			12.3902		(7.6844)		(1.1776)
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from/(used in) operating activities	88,104		3,098		(219,069)		(33,576)			274,168		282,028		43,222
Net cash provided by/(used in) investing activities	1,197,182		(99,460)		(981,096)		(150,359)			1,110,001		(1,796,663)		(275,351)
Net cash (used in)/provided by financing activities	(730,595)		81,693		899,487		137,853			(1,149,705)		955,448		146,429
Effect of foreign exchange rate changes	(2,336)		(3,389)		(538)		(82)			193		(2,807)		(430)
Net decrease in cash, cash equivalents and restricted cash	552,355		(18,058)		(301,216)		(46,164)			234,657		(561,994)		(86,130)
Cash, cash equivalents and restricted cash, beginning of period	2,716,787		3,026,422		3,008,364		461,052			3,034,485		3,269,142		501,018
Cash, cash equivalents and restricted cash, end of period	3,269,142		3,008,364		2,707,148		414,888			3,269,142		2,707,148		414,888

 

 

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	As of
	December 31, 2019		September 30, 2020		December 31, 2020		December 31, 2020
	RMB		RMB		RMB		USD
Cash and cash equivalents	3,198,086		2,836,229		2,469,909		378,530
Restricted cash	71,056		172,135		237,239		36,358
Accounts receivable	3,398		100,657		122,742		18,811
Contract assets, net	2,398,685		1,231,190		750,174		114,969
Contract cost	160,003		124,005		65,529		10,043
Prepaid expenses and other assets	1,333,221		986,747		278,591		42,697
Loans at fair value	418,492		180,058		192,156		29,449
Financing receivables	29,612		267,938		1,253,494		192,106
Amounts due from related parties	988,853		1,584,084		884,006		135,480
Held-to-maturity investments	6,627		2,349		3,286		504
Available-for-sale investments	460,991		511,267		175,515		26,899
Property, equipment and software, net	195,855		163,696		147,193		22,558
Deferred tax assets	45,407		50,175		16,745		2,566
Right-of-use assets	334,134		160,825		105,674		16,195
Total assets	9,644,420		8,371,355		6,702,253		1,027,165
Accounts payable	43,583		24,757		9,903		1,517
Amounts due to related parties	106,645		293,620		970,309		148,706
Liabilities from quality assurance program and guarantee	4,397		2,065		22,783		3,492
Deferred revenue	358,203		135,590		50,899		7,801
Payable to investors at fair value	-		9,876		52,623		8,065
Accrued expenses and other liabilities	2,338,745		1,993,273		1,686,632		258,488
Refund liability	1,801,535		1,285,109		10,845		1,662
Deferred tax liabilities	218,888		150,486		38,741		5,937
Lease liabilities	282,334		135,544		81,854		12,545
Total liabilities	5,154,330		4,030,320		2,924,589		448,213
Ordinary shares	121		121		121		19
Additional paid-in capital	5,038,691		5,059,529		5,058,176		775,199
Treasury stock	(37,097)		(40,147)		(40,147)		(6,153)
Accumulated other comprehensive income	21,855		18,595		17,108		2,622
Accumulated deficit	(533,480)		(697,063)		(1,257,594)		(192,735)
Total equity	4,490,090		4,341,035		3,777,664		578,952
Total liabilities and equity	9,644,420		8,371,355		6,702,253		1,027,165

 

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except for number of  borrowers, number of investors and percentages)
	For the Three Months Ended									For the Year Ended
	December 31, 2019		September 30, 2020		December 31, 2020		December 31, 2020			December 31, 2019		December 31, 2020		December 31, 2020
	RMB		RMB		RMB		USD			RMB		RMB		USD
Operating Highlights
Amount of investment in legacy products	8,790,755		2,620,252		531,062		81,389			41,203,595		12,372,812		1,896,216
Number of investors in legacy products	105,849		41,851		15,610		15,610			348,832		122,085		122,085
Amount of investment in current investment products	2,548,414		4,593,256		6,836,906		1,047,802			3,929,131		15,779,685		2,418,343
Number of investors in current investment products	13,896		76,707		99,112		99,112			32,668		153,700		153,700
Amount of loans facilitated under loan facilitation model	1,086,746		3,148,367		4,202,538		644,067			3,431,443		9,614,819		1,473,535
Amount of loans facilitated	7,998,046		3,206,977		4,202,538		644,067			39,103,048		11,651,463		1,785,665
Number of borrowers	125,622		143,238		189,117		189,117			541,955		525,320		525,320
Remaining principal of performing loans facilitated under loan facilitation model	3,627,706		6,250,343		8,863,461		1,358,385			3,627,706		8,863,461		1,358,385
Remaining principal of performing loans	51,157,313		28,007,249		23,593,103		3,615,801			51,157,313		23,593,103		3,615,801
Segment Information
Wealth management:
Revenue	521,849		281,050		413,057		63,303			2,176,215		1,432,364		219,520
Sales and marketing expenses	67,080		43,879		39,012		5,979			643,542		195,671		29,988
Origination,servicing and other operating costs	3,061		105,522		266,492		40,842			87,477		442,507		67,817
Consumer credit:
Revenue	1,841,779		741,712		747,794		114,605			6,440,569		2,529,598		387,679
Sales and marketing expenses	893,316		441,176		256,121		39,252			3,813,811		1,709,424		261,981
Origination,servicing and other operating costs	170,881		134,133		330,434		50,641			577,606		662,175		101,483
Reconciliation of Adjusted Net Income/(Loss)
Net income/(loss)	403,985		79,837		(559,609)		(85,764)			1,155,611		(692,748)		(106,168)
Loss of disposal	-		-		655,839		100,512			-		655,839		100,512
Adjusted net income/(loss)	403,985		79,837		96,230		14,748			1,155,611		(36,909)		(5,656)
Reconciliation of Adjusted EBITDA
Net income/(loss)	403,985		79,837		(559,609)		(85,764)			1,155,611		(692,748)		(106,168)
Interest income, net	(10,454)		(11,003)		(8,554)		(1,311)			(73,367)		(61,623)		(9,444)
Loss of disposal	-		-		655,839		100,512			-		655,839		100,512
Income tax expense/(benefit)	80,914		16,353		(53,342)		(8,175)			239,228		(80,611)		(12,354)
Depreciation and amortization	30,083		23,404		16,829		2,579			125,850		91,772		14,065
Share-based compensation	3,556		8,952		(2,274)		(349)			43,941		14,173		2,172
Adjusted EBITDA	508,084		117,543		48,889		7,492			1,491,263		(73,198)		(11,217)
Adjusted EBITDA margin	21.5%		11.5%		4.2%		4.2%			17.3%		-1.8%		-1.8%

 

 

Delinquency Rates								Including:Loan Facilitation Model
		15-29 days		30-59 days		60-89 days		15-29 days		30-59 days		60-89 days
All Loans
December 31, 2015		0.7%		1.2%		0.9%		1.3%		1.9%		1.5%
December 31, 2016		0.6%		0.9%		0.8%		0.6%		0.8%		0.7%
December 31, 2017		0.8%		1.0%		0.8%		0.5%		0.8%		0.6%
December 31, 2018		1.0%		1.8%		1.7%		1.0%		1.8%		1.7%
December 31, 2019		1.2%		2.0%		1.7%		0.8%		1.3%		1.0%
December 31, 2020		1.2%		1.7%		1.4%		0.5%		0.7%		0.6%
Online Channels
December 31, 2015		0.5%		0.8%		0.6%		0.4%		0.7%		0.5%
December 31, 2016		0.5%		0.9%		0.8%		0.8%		1.1%		1.7%
December 31, 2017		1.3%		1.2%		0.9%		0.3%		0.2%		0.0%
December 31, 2018		1.2%		2.3%		2.2%		0.9%		1.7%		1.5%
December 31, 2019		1.6%		2.9%		2.5%		1.0%		2.1%		1.6%
December 31, 2020		0.9%		1.5%		1.6%		0.6%		1.0%		1.1%
Offline Channels
December 31, 2015		0.7%		1.2%		1.0%		1.3%		2.0%		1.6%
December 31, 2016		0.6%		0.9%		0.8%		0.6%		0.8%		0.7%
December 31, 2017		0.6%		0.9%		0.7%		0.5%		0.9%		0.7%
December 31, 2018		0.9%		1.6%		1.5%		1.1%		1.9%		1.8%
December 31, 2019		1.0%		1.7%		1.5%		0.7%		0.9%		0.7%
December 31, 2020		1.3%		1.8%		1.3%		0.4%		0.6%		0.4%

 

 

 

Net Charge-Off Rate								Including:Loan Facilitation Model
Loan Issued Period		Amount of Loans Facilitated During the Period		Accumulated M3+ Net Charge-Off as of December 31, 2020		Total Net Charge-Off Rate as of December 31, 2020		Amount of Loans Facilitated During the Period		Accumulated M3+ Net Charge-Off as of December 31, 2020		Total Net Charge-Off Rate as of December 31, 2020
		(in RMB thousands)		(in RMB thousands)				(in RMB thousands)		(in RMB thousands)
2015		53,143,029		4,409,316		8.3%		4,530,824		253,460		5.6%
2016		53,805,112		5,024,432		9.3%		3,749,815		321,396		8.6%
2017		69,883,293		11,815,925		16.9%		5,043,494		535,515		10.6%
2018		63,176,149		11,725,429		18.6%		4,211,573		427,707		10.2%
2019		39,103,048		5,305,343		13.6%		3,431,443		293,272		8.5%
2020Q1-Q3		6,781,464		45,840		0.7%		5,412,281		44,695		0.8%

 

 

M3+ Net Charge-Off Rate														Including:Loan Facilitation Model
Loan Issued Period		Month on Book												Month on Book
		4	7	10	13	16	19	22	25	28	31	34		4	7	10	13	16	19	22	25	28	31	34
2015Q1		0.8%	2.0%	3.4%	4.7%	5.7%	6.5%	7.1%	7.5%	7.7%	7.8%	7.8%		1.0%	1.9%	2.7%	3.6%	4.3%	4.8%	5.1%	5.3%	5.3%	5.2%	5.2%
2015Q2		0.8%	2.3%	3.8%	5.2%	6.4%	7.3%	7.9%	8.3%	8.5%	8.7%	8.8%		1.1%	2.8%	4.2%	5.3%	6.2%	6.7%	7.0%	7.0%	6.9%	6.8%	6.8%
2015Q3		0.4%	1.6%	3.1%	4.4%	5.6%	6.5%	7.1%	7.6%	7.9%	8.1%	8.4%		0.6%	2.2%	3.8%	5.0%	5.9%	6.5%	6.7%	6.8%	6.7%	6.7%	6.7%
2015Q4		0.4%	1.6%	3.1%	4.4%	5.5%	6.3%	6.9%	7.4%	7.9%	8.3%	8.5%		1.0%	1.5%	2.2%	2.8%	3.1%	3.4%	3.7%	4.0%	4.2%	4.4%	4.4%
2016Q1		0.3%	1.2%	2.5%	3.6%	4.5%	5.2%	5.8%	6.4%	7.0%	7.4%	7.6%		0.6%	0.9%	1.3%	1.7%	2.0%	2.2%	2.4%	2.7%	2.9%	3.0%	3.2%
2016Q2		0.4%	1.6%	3.1%	4.3%	5.2%	6.0%	6.8%	7.6%	8.1%	8.4%	8.7%		0.6%	1.4%	2.3%	3.0%	3.6%	4.2%	4.8%	5.4%	5.8%	6.0%	6.2%
2016Q3		0.3%	1.6%	3.1%	4.3%	5.4%	6.6%	7.8%	8.6%	9.2%	9.5%	9.8%		0.4%	1.7%	2.7%	4.1%	5.3%	6.5%	7.7%	8.6%	9.3%	9.3%	9.5%
2016Q4		0.2%	1.5%	2.9%	4.4%	5.9%	7.4%	8.4%	9.3%	10.0%	10.4%	10.7%		0.3%	2.1%	3.8%	5.4%	7.2%	9.2%	10.4%	11.5%	12.4%	12.9%	13.3%
2017Q1		0.3%	1.6%	3.3%	5.1%	7.1%	8.5%	9.7%	10.7%	11.3%	11.8%	12.1%		0.3%	1.6%	3.4%	5.3%	7.5%	8.9%	10.0%	10.9%	11.6%	12.1%	12.3%
2017Q2		1.1%	3.0%	5.7%	8.3%	10.2%	11.9%	13.3%	14.3%	15.1%	15.5%	15.8%		4.1%	5.8%	7.9%	9.6%	11.3%	12.5%	13.2%	13.9%	14.6%	14.9%	15.1%
2017Q3		0.4%	3.1%	6.4%	9.0%	11.5%	13.4%	14.8%	15.9%	16.7%	17.2%	17.4%		0.3%	1.6%	3.5%	4.9%	6.5%	7.6%	8.4%	8.9%	9.4%	9.9%	10.1%
2017Q4		0.7%	4.1%	7.5%	10.6%	13.3%	15.3%	16.8%	17.9%	18.7%	19.2%	19.2%		0.2%	2.3%	5.1%	6.5%	7.9%	9.0%	9.7%	10.2%	10.7%	11.2%	10.6%
2018Q1		0.4%	3.1%	6.6%	10.0%	12.9%	15.1%	16.8%	18.1%	19.1%	19.3%			0.2%	2.9%	5.1%	6.8%	7.2%	7.9%	8.4%	8.7%	9.0%	8.6%
2018Q2		0.5%	3.7%	7.4%	10.8%	13.6%	15.8%	17.7%	19.2%	19.6%				0.7%	4.1%	7.1%	9.4%	11.2%	12.4%	13.4%	14.1%	14.3%
2018Q3		0.4%	3.0%	6.2%	9.1%	11.7%	13.9%	15.9%	16.6%					0.2%	2.8%	3.6%	4.5%	5.2%	6.4%	7.0%	7.0%
2018Q4		0.3%	2.5%	5.6%	8.6%	11.7%	14.5%	15.8%						0.6%	2.2%	3.4%	5.2%	6.9%	9.0%	9.7%
2019Q1		0.2%	2.5%	5.6%	9.0%	12.7%	14.6%							0.0%	0.8%	2.0%	3.4%	5.3%	5.9%
2019Q2		0.3%	2.9%	6.9%	11.3%	13.7%								0.1%	1.5%	4.5%	7.5%	8.8%
2019Q3		0.3%	3.4%	8.0%	10.9%									0.2%	2.9%	6.8%	9.0%
2019Q4		0.3%	3.9%	7.0%										0.4%	3.1%	4.9%
2020Q1		0.5%	2.4%											0.6%	2.3%
2020Q2		0.4%												0.5%

 

 

View original content:http://www.prnewswire.com/news-releases/yiren-digital-reports-fourth-quarter-and-fiscal-year-2020-financial-results-301260600.html

SOURCE Yiren Digital

FAQ

What are the Q4 2020 earnings results for Yiren Digital (YRD)?

Yiren Digital reported a total net revenue of RMB 1.16 billion for Q4 2020, a 14% increase from Q3 2020, but a significant decrease from the previous year's RMB 2.36 billion.

How did the restructuring affect Yiren Digital's financial performance?

The restructuring led to a net loss of RMB 559.6 million in Q4 2020, largely due to a one-time loss of RMB 655.8 million from the disposed business.

What is Yiren Digital's guidance for 2021?

Yiren Digital projects total sales volume of current wealth management products between RMB 20 billion and RMB 30 billion, and total loan originations between RMB 20 billion and RMB 25 billion.