Yiren Digital Reports Fourth Quarter and Fiscal Year 2021 Financial Results

Rhea-AI Summary

Yiren Digital Ltd. (NYSE: YRD) announced its unaudited financial results for Q4 and FY 2021, highlighting a total net revenue of RMB 4,477.9 million (US$702.7 million), a 13% increase from 2020. The wealth management segment accounted for 35% of total net revenue in Q4, with total client assets reaching RMB 19.3 billion, up 11% quarter-over-quarter. The company reported a net income of RMB 1,033.0 million for FY 2021, compared to a net loss of RMB 692.7 million in FY 2020. However, loans facilitated in Q4 decreased by 9.8% to RMB 6.2 billion.

Positive

• Total net revenue increased to RMB 4,477.9 million (US$702.7 million), a 13% rise from 2020.
• Wealth management segment contributed over 35% of total net revenue in Q4 2021.
• Total client assets reached RMB 19.3 billion, up 11% quarter-over-quarter.
• Net income for FY 2021 was RMB 1,033.0 million, recovering from a loss of RMB 692.7 million in 2020.

Negative

• Active investors decreased by 0.8% from Q3 2021.
• Sales of investment products fell to RMB 5,391.8 million in Q4, down from RMB 6,836.9 million in the same period in 2020.
• Loans facilitated in Q4 2021 decreased by 9.8% from Q3 2021.

BEIJING, Aug. 30, 2022 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading digital personal financial management platform in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2021.

Fourth Quarter 2021 and Fiscal Year 2021 Operational Highlights

Wealth Management

• Cumulative number of investors served reached 2,702,122 as of December 31, 2021, representing an increase of 3.4% from 2,612,279 as of September 30, 2021 and compared to 2,326,169 as of December 31, 2020.
•  Number of active investors^[1] was 424,366 as of December 31, 2021, representing a decrease of 0.8% from 427,873 as of September 30, 2021 and compared to 163,593 as of December 31, 2020. The quarter-over-quarter decline was primarily due to a decline in the insurance segment as a result of optimization in insurance product mix, which was offset by the rapid growth in customer base on Yiren Wealth platform.
• Total client assets^[2] was RMB19,261.0 million (US$3,022.5 million) as of December 31, 2021, representing an increase of 10.6% from RMB17,415.3 million as of September 30, 2021 and compared to RMB8,550.7 million as of December 31, 2020.
• Sales volume of investment products amounted to RMB5,391.8 million (US$846.1 million) in the fourth quarter of 2021, representing an increase of 7.2% from RMB5,030.2 million in the third quarter of 2021 and compared to RMB6,836.9 million in the same period of 2020. For the fiscal year of 2021, sales volume of investment products reached RMB21,588.6 million (US$3,387.7 million), compared to RMB15,779.7 million in 2020.

Consumer Credit

• Total loans facilitated under loan facilitation model in the fourth quarter of 2021 reached RMB6.2 billion (US$1.0 billion), representing a decrease of 9.8% from RMB6.8 billion in the third quarter of 2021 and compared to RMB4.2 billion in the fourth quarter of 2020.
• Cumulative number of borrowers served reached 6,127,068 as of December 31, 2021, representing an increase of 4.9% from 5,840,424 as of September 30, 2021 and compared to 5,249,936 as of December 31, 2020.
• Number of borrowers served in the fourth quarter of 2021 was 618,131, representing an increase of 12.7% from 548,495 in the third quarter of 2021 and compared to 189,117 in the fourth quarter of 2020. Total number of borrowers served in 2021 was 1,297,046.
• Outstanding balance of performing loans facilitated under loan facilitation model reached RMB14,102.3 million (US$2,213.0 million) as of December 31, 2021, representing an increase of 2.2% from RMB13,793.9 million as of September 30, 2021 and compared to RMB8,863.5 million as of December 31,2020.

Consumption-Driven Services

• In the second half of 2021, the Company began scaling its e-commerce platform and also launched a "Life Plus Finance" initiative ("Yiren Select"), integrating high quality financial services with online and offline consumption scenarios. Total gross merchandise volume generated through both channels reached RMB61.6 million (US$9.7 million) in the fourth quarter of 2021.

[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] 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.

"Looking back at the year of 2021, we are pleased to announce another concrete milestone during the journey of our business transitions towards China's leading digital personal financial management platform, with our revenue structure further diversifying and our business volume and profitability resuming to a healthy growth rate post the restructuring, meeting our previous guidance for both wealth management and credit-tech business lines," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.

"On wealth management, the growth momentum remains strong with contribution to our total net revenue reaching more than 35% in the fourth quarter of 2021, a historical high. Specially, our total client asset reached RMB19.3 billion as of December 31, 2021, representing an increase of 11% compared to the end of prior quarter. Notably, total investor base on Yiren Wealth platform saw an accelerated growth due to our Yiren Select initiative. In the fourth quarter of 2021, the number of new investors on Yiren Wealth increased by 22% on a quarter-over-quarter basis and the number of investors who held at least two different asset classes grew by 15% compared with the third quarter of 2021. Moreover, our insurance brokerage business has been growing at a higher-than-expected rate with total premiums reaching RMB888 million in the fourth quarter of 2021, representing a 21% quarterly growth, which is a sharp contrast to the overall industry downside cycle."

"On credit-tech we have seen a visible evolvement in our overall loan portfolio as we continue to optimize our product mix and shift towards higher credit quality customer segments, moving in full swing towards guided APR with stable unit economics. Currently, 99% of our new loans facilitated are small revolving loans and SME loans, compared to 71% in the year of 2021, leading to a shorter-tenor portfolio with lower operating and credit costs, which is more flexible to adjust to external environment. Moreover, our e-commerce platform launched in August 2021, has started to contribute revenue with rapid growth, effectively driving up our user activities and establishing a more diversified finance consumption ecosystem."

"The year of 2021 ended with strong earnings. Excluding one-time business disposal expense incurred in the fourth quarter of 2020, total net income for the year of 2021 was more than RMB1.0 billion, compared to a loss of RMB36.9 million in 2020, beating our internal target with fast business recovery and optimized operational efficiency," said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "On the balance sheet side, our cash position grows stronger with RMB3.0 billion cash and short-term investment as of December 31, 2021, an increase of 17% compared with the end of the last quarter, providing sufficient fuel for any further business expansion that we may have in the future."

Fourth Quarter 2021 Financial Results

Total net revenue in the fourth quarter of 2021 was RMB1,020.9 million (US$160.2 million), compared to RMB1,160.9 million in the same period of 2020. Specifically, in the fourth quarter of 2021, revenue from wealth management business was RMB372.3 million (US$58.4 million), and revenue from credit business was RMB615.5 million (US$96.6 million). Excluding the impact from the disposed business line, total net revenue in the fourth quarter of 2021 increased by 15.9% compared with the same period in 2020.

Sales and marketing expenses in the fourth quarter of 2021 were RMB304.1 million (US$47.8 million), compared to RMB295.1 million in the same period of 2020. The increase was primarily due to the continued expansion of our insurance brokerage business, which is offset by the optimization of cost structure in our offline business.

Origination, servicing and other operating costs in the fourth quarter of 2021 were RMB216.8 million (US$34.0 million), compared to RMB596.9 million in the same period of 2020. The decrease was primarily due to the improved cost efficiency after the business restructuring completed on December 31, 2020.

General and administrative expenses in the fourth quarter of 2021 were RMB119.4 million (US$18.8 million), compared to RMB149.3 million in the same period of 2020. The decrease was mainly due to the optimization of the company's offline business.

Allowance for contract assets, receivables and others in the fourth quarter of 2021 was RMB51.9 million (US$8.1 million), compared to RMB34.5 million in the same period of 2020. The increase was primarily driven by the growth of loan volumes facilitated.

Income tax expense in the fourth quarter of 2021 was RMB5.4 million (US$0.8 million).

Net income in the fourth quarter of 2021 was RMB330.8 million (US$51.9 million), as compared to net loss of RMB559.6 million in the same period of 2020. The change was primarily due to the one-time expense of business disposal during the restructuring completed on December 31, 2020.

Adjusted EBITDA^[3] (non-GAAP) in the fourth quarter of 2021 was RMB353.4 million (US$55.5 million), compared to RMB48.9 million in the same period of 2020.

Basic and diluted income per ADS in the fourth quarter of 2021 was RMB3.9 (US$0.6), compared to a basic loss per ADS of RMB6.7 and a diluted loss per ADS of RMB6.7 in the same period of 2020.

Net cash generated from operating activities in the fourth quarter of 2021 was RMB189.4 million (US$29.7 million), compared to net cash used in operating activities of RMB219.1 million in the same period of 2020.

Net cash used in investing activities in the fourth quarter of 2021 was RMB381.9 million (US$59.9 million), compared to net cash used in investing activities of RMB981.1 million in the same period of 2020.

As of December 31, 2021, cash and cash equivalents was RMB2,864.5 million (US$449.5 million), compared to RMB2,328.4 million as of September 30, 2021. As of December 31, 2021, the balance of held-to-maturity investments was RMB2.2 million (US$0.3 million), compared to RMB2.2 million as of September 30, 2021. As of December 31, 2021, the balance of available-for-sale investments was RMB177.4 million (US$27.8 million), compared to RMB277.9 million as of September 30, 2021.

Delinquency rates. As of December 31, 2021, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.9%, 1.5% and 1.2% respectively, compared to 0.5%, 0.7% and 0.6% respectively as of December 31, 2020.

Cumulative M3+ net charge-off rates. As December 31, 2021, the cumulative M3+ net charge-off rate for loans originated in 2018, 2019 and 2020 was 9.8%, 11.4% and 5.8% respectively, as compared to 9.9%, 11.0% and 4.8% respectively as of September 30, 2021.

[3] "Adjusted EBITDA" is a non-GAAP financial measure. 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 "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

Fiscal Year 2021 Financial Results

Total net revenue in 2021 was RMB4,477.9 million (US$702.7 million), compared to RMB3,962.0 million in 2020. Specifically, revenue from wealth management business in 2021 was RMB1,260.5 million (US$197.8 million), and revenue from credit business in 2021 was RMB3,184.3 million (US$499.7 million). Excluding the impact from the disposed business line, total net revenue in the year of 2021 increased by 92.8% compared with the year of 2020. The increase was primarily due to the business recovery from the COVID-19 pandemic and continued growth in the sales volume of current investment products and loans facilitated under loan facilitation model post the restructuring.

Sales and marketing expenses in 2021 was RMB1,553.3 million (US$243.8 million), compared to RMB1,905.1 million in 2020. The decrease was primarily due to the optimization of the Company's offline business.

Origination, servicing and other operating costs in 2021 was RMB760.9 million (US$119.4 million), compared to RMB1,104.7 million in 2020. The decrease was mainly due to the improved cost efficiency after the business restructuring completed on December 31, 2020.

General and administrative expenses in 2021 was RMB506.2 million (US$79.4 million), compared to RMB630.6 million in 2020. The decrease was primarily due to the optimization of our offline business and the overall improvement of cost efficiency.

Allowance for contract assets, receivables and others in 2021 was RMB370.2 million (US$58.1 million), which remained stable compared to RMB371.6 million in 2020.

Income tax expense in 2021 was RMB170.2 million (US$26.7 million).

Net income in 2021 was RMB1,033.0 million (US$162.1 million), compared to a net loss of RMB692.7 million in 2020. The income was driven by the resumption of business growth as well as improving operational efficiencies post the pandemic outbreak.

Adjusted EBITDA (non-GAAP) in 2021 was RMB1,338.9 million (US$210.1 million), compared to a loss of RMB73.2 million in 2020. Adjusted EBITDA margin¹ (non-GAAP) in 2021 was 29.9%, compared to a loss of 1.8% in 2020.

Basic and diluted income per ADS in 2021 were RMB12.2 (US$1.9) and RMB12.1 (US$1.9) respectively, compared to a loss per ADS of RMB7.7 and a diluted loss per ADS of RMB7.7 in 2020.

Net cash generated from operating activities in 2021 was RMB158.2 million (US$24.8 million), compared to net cash generated from operating activities of RMB282.0 million in 2020.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as 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 RMB6.3726 to US$1.00, the effective noon buying rate on December 31, 2021, as set forth in the H.10 statistical release of the Federal Reserve Board.

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 digital personal financial management platform in China. The Company provides customized, asset allocation based 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, 2020		September 30, 2021		December 31, 2021		December 31, 2021			December 31, 2020		December 31, 2021		December 31, 2021
	RMB		RMB		RMB		USD			RMB		RMB		USD
Net revenue:
Loan facilitation services	393,682		601,283		410,988		64,493			1,329,720		2,105,776		330,442
Post-origination services	201,873		39,024		49,861		7,824			670,440		174,255		27,344
Account management services	50,566		-		-		-			921,779		-		-
Insurance brokerage services	308,790		199,406		244,780		38,411			430,830		755,691		118,584
Financing services	54,348		144,614		140,027		21,973			59,658		524,840		82,359
Electronic commerce services	-		-		33,114		5,196			-		33,114		5,196
Others	151,592		247,664		142,170		22,311			549,535		884,253		138,760
Total net revenue	1,160,851		1,231,991		1,020,940		160,208			3,961,962		4,477,929		702,685
Operating costs and expenses:
Sales and marketing	295,133		407,172		304,114		47,722			1,905,095		1,553,344		243,754
Origination,servicing and other operating costs	596,926		186,915		216,751		34,013			1,104,682		760,858		119,395
General and administrative	149,276		139,321		119,364		18,731			630,555		506,240		79,440
Allowance for contract assets, receivables and others	34,520		83,578		51,911		8,146			371,629		370,154		58,085
Loss of disposal	655,839		-		-		-			655,839		-		-
Total operating costs and expenses	1,731,694		816,986		692,140		108,612			4,667,800		3,190,596		500,674
Other income/(expenses):
Interest income/(expense), net	8,554		(21,565)		(18,056)		(2,833)			61,623		(73,383)		(11,515)
Fair value adjustments related to Consolidated ABFE	(54,106)		(526)		11,720		1,839			(143,988)		(37,442)		(5,875)
Others, net	3,444		3,934		2,935		460			14,844		26,665		4,183
Total other expenses	(42,108)		(18,157)		(3,401)		(534)			(67,521)		(84,160)		(13,207)
(Loss)/income before provision for income taxes	(612,951)		396,848		325,399		51,062			(773,359)		1,203,173		188,804
Income tax (benefit)/expense	(53,342)		75,923		(5,366)		(842)			(80,611)		170,189		26,706
Net (loss)/income	(559,609)		320,925		330,765		51,904			(692,748)		1,032,984		162,098
Weighted average number of ordinary shares outstanding, basic	167,964,040		170,193,542		169,967,125		169,967,125			180,301,898		169,029,826		169,029,826
Basic (loss)/income per share	(3.3317)		1.8856		1.9461		0.3054			(3.8422)		6.1113		0.9590
Basic (loss)/income per ADS	(6.6634)		3.7712		3.8922		0.6108			(7.6844)		12.2226		1.9180
Weighted average number of ordinary shares outstanding, diluted	167,964,040		171,571,392		171,171,951		171,171,951			180,301,898		170,590,203		170,590,203
Diluted (loss)/income per share	(3.3317)		1.8705		1.9324		0.3032			(3.8422)		6.0554		0.9502
Diluted (loss)/income per ADS	(6.6634)		3.7410		3.8648		0.6064			(7.6844)		12.1108		1.9004
Unaudited Condensed Consolidated Cash Flow Data
Net cash (used in)/generated from operating activities	(219,069)		323,819		189,377		29,717			282,028		158,192		24,824
Net cash  (used in)/provided by investing activities	(981,096)		(233,782)		381,870		59,924			(1,796,663)		(346,507)		(54,374)
Net cash provided by/(used in) financing activities	899,487		49,770		(45,831)		(7,192)			955,448		427,446		67,076
Effect of foreign exchange rate changes	(538)		(257)		(283)		(44)			(2,807)		(936)		(147)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(301,216)		139,550		525,133		82,405			(561,994)		238,195		37,379
Cash, cash equivalents and restricted cash, beginning of period	3,008,364		2,280,660		2,420,210		379,785			3,269,142		2,707,148		424,811
Cash, cash equivalents and restricted cash, end of period	2,707,148		2,420,210		2,945,343		462,190			2,707,148		2,945,343		462,190

 

 

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	As of
	December 31, 2020		September 30, 2021		December 31, 2021		December 31, 2021
	RMB		RMB		RMB		USD
Cash and cash equivalents	2,469,909		2,328,380		2,864,543		449,511
Restricted cash	237,239		91,830		80,800		12,679
Accounts receivable	122,742		258,729		305,018		47,864
Contract assets, net	750,174		1,191,497		1,105,905		173,541
Contract cost	65,529		34,707		9,959		1,563
Prepaid expenses and other assets	278,591		358,052		352,015		55,239
Loans at fair value	192,156		82,474		73,734		11,571
Financing receivables	1,253,494		1,969,456		1,697,962		266,449
Amounts due from related parties	884,006		768,646		879,256		137,974
Held-to-maturity investments	3,286		2,200		2,200		341
Available-for-sale investments	175,515		277,934		177,360		27,832
Property, equipment and software, net	147,193		115,326		102,548		16,092
Deferred tax assets	16,745		6,285		7,388		1,159
Right-of-use assets	105,674		70,897		80,752		12,672
Total assets	6,702,253		7,556,413		7,739,440		1,214,487
Accounts payable	9,903		36,799		19,065		2,992
Amounts due to related parties	970,309		474,925		434,127		68,124
Deferred revenue	50,899		11,862		12,379		1,943
Payable to investors at fair value	52,623		50,814		50,686		7,954
Accrued expenses and other liabilities	1,208,915		1,245,263		1,182,783		185,604
Secured borrowings	500,500		1,038,600		1,028,600		161,410
Refund liability	10,845		5,927		5,732		899
Deferred tax liabilities	38,741		147,575		112,535		17,659
Lease liabilities	81,854		53,194		72,101		11,314
Total liabilities	2,924,589		3,064,959		2,918,008		457,899
Ordinary shares	121		123		123		19
Additional paid-in capital	5,058,176		5,096,994		5,100,486		800,378
Treasury stock	(40,147)		(42,502)		(42,897)		(6,731)
Accumulated other comprehensive income	17,108		14,442		11,553		1,812
Accumulated deficit	(1,257,594)		(577,603)		(247,833)		(38,890)
Total equity	3,777,664		4,491,454		4,821,432		756,588
Total liabilities and equity	6,702,253		7,556,413		7,739,440		1,214,487

 

 

 

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, 2020		September 30, 2021		December 31, 2021		December 31, 2021			December 31, 2020		December 31, 2021		December 31 2021
	RMB		RMB		RMB		USD			RMB		RMB		USD
Operating Highlights
Amount of investment in current investment products	6,836,906		5,030,228		5,391,760		846,085			15,779,685		21,588,645		3,387,729
Number of investors in current investment products	99,112		127,378		144,987		144,987			153,700		409,281		409,281
Amount of loans facilitated under loan facilitation model	4,202,538		6,841,921		6,170,158		968,232			9,614,819		23,195,224		3,639,837
Number of borrowers	189,117		548,495		618,131		618,131			525,320		1,297,046		1,297,046
Remaining principal of performing loans facilitated under loan facilitation model	8,863,461		13,793,925		14,102,279		2,212,955			8,863,461		14,102,279		2,212,955
Electronic commerce of gross merchandise volume	-		-		61,619		9,669			-		61,619		9,669
Segment Information
Wealth management:
Revenue	413,057		337,627		372,304		58,423			1,432,364		1,260,513		197,803
Sales and marketing expenses	39,012		55,463		75,842		11,901			195,671		199,336		31,281
Origination,servicing and other operating costs	266,492		159,348		156,243		24,518			442,507		598,606		93,934
Consumer credit:
Revenue	747,794		894,364		615,522		96,589			2,529,598		3,184,302		499,686
Sales and marketing expenses	256,121		351,709		227,508		35,702			1,709,424		1,353,244		212,353
Origination,servicing and other operating costs	330,434		27,567		53,396		8,379			662,175		155,140		24,345
Others:
Revenue	-		-		33,114		5,196			-		33,114		5,196
Sales and marketing expenses	-		-		764		119			-		764		120
Origination,servicing and other operating costs	-		-		7,112		1,116			-		7,112		1,116
Reconciliation of Adjusted EBITDA
Net (loss)/income	(559,609)		320,925		330,765		51,904			(692,748)		1,032,984		162,098
Interest (income)/expense, net	(8,554)		21,565		18,056		2,833			(61,623)		73,383		11,515
Income (benefit)/tax expense	(53,342)		75,923		(5,366)		(842)			(80,611)		170,189		26,706
Depreciation and amortization	16,829		8,449		7,466		1,172			91,772		43,236		6,785
Share-based compensation	(2,274)		11,742		2,497		392			14,173		19,089		2,995
Adjusted EBITDA	48,889		438,604		353,418		55,459			(73,198)		1,338,881		210,099
Adjusted EBITDA margin	4.2 %		35.6 %		34.6 %		34.6 %			-1.8 %		29.9 %		29.9 %

 

 

 

Delinquency Rates (Loan Facilitation Model)
		15-29 days		30-59 days		60-89 days
All Loans
December 31, 2015		1.3 %		1.9 %		1.5 %
December 31, 2016		0.6 %		0.8 %		0.7 %
December 31, 2017		0.5 %		0.8 %		0.6 %
December 31, 2018		1.0 %		1.8 %		1.7 %
December 31, 2019		0.8 %		1.3 %		1.0 %
December 31, 2020		0.5 %		0.7 %		0.6 %
December 31, 2021		0.9 %		1.5 %		1.2 %
Online Channels
December 31, 2015		0.4 %		0.7 %		0.5 %
December 31, 2016		0.8 %		1.1 %		1.7 %
December 31, 2017		0.3 %		0.2 %		0.0 %
December 31, 2018		0.9 %		1.7 %		1.5 %
December 31, 2019		1.0 %		2.1 %		1.6 %
December 31, 2020		0.6 %		1.0 %		1.1 %
December 31, 2021		0.8 %		1.3 %		1.1 %
Offline Channels
December 31, 2015		1.3 %		2.0 %		1.6 %
December 31, 2016		0.6 %		0.8 %		0.7 %
December 31, 2017		0.5 %		0.9 %		0.7 %
December 31, 2018		1.1 %		1.9 %		1.8 %
December 31, 2019		0.7 %		0.9 %		0.7 %
December 31, 2020		0.4 %		0.6 %		0.4 %
December 31, 2021		1.0 %		1.8 %		1.4 %

 

 

 

Net Charge-Off Rate (Loan Facilitation Model)
Loan Issued Period	Amount of Loans Facilitated During the Period		Accumulated M3+ Net Charge-Off as of December 31, 2021		Total Net Charge-Off Rate as of December 31, 2021
2015	4,530,824		243,840		5.4 %
2016	3,749,815		317,288		8.5 %
2017	5,043,494		523,778		10.4 %
2018	4,211,573		413,071		9.8 %
2019	3,431,443		390,252		11.4 %
2020	9,614,819		560,733		5.8 %
2021Q1-Q3	17,025,066		374,843		2.2 %

 

 

 

M3+ Net Charge-Off Rate (Loan Facilitation Model)
Loan Issued Period	Month on Book
2015Q2	1.1 %	2.8 %	4.2 %	5.3 %	6.2 %	6.7 %	7.0 %	7.0 %	6.9 %	6.8 %	6.8 %
2015Q3	0.6 %	2.2 %	3.8 %	5.0 %	5.9 %	6.5 %	6.7 %	6.8 %	6.7 %	6.7 %	6.7 %
2015Q4	1.0 %	1.5 %	2.2 %	2.8 %	3.1 %	3.4 %	3.7 %	4.0 %	4.2 %	4.4 %	4.4 %
2016Q1	0.6 %	0.9 %	1.3 %	1.7 %	2.0 %	2.2 %	2.4 %	2.7 %	2.9 %	3.0 %	3.2 %
2016Q2	0.6 %	1.4 %	2.3 %	3.0 %	3.6 %	4.2 %	4.8 %	5.4 %	5.8 %	6.0 %	6.2 %
2016Q3	0.4 %	1.7 %	2.7 %	4.1 %	5.3 %	6.5 %	7.7 %	8.6 %	9.3 %	9.3 %	9.5 %
2016Q4	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 %	3.4 %	5.3 %	7.5 %	8.9 %	10.0 %	10.9 %	11.6 %	12.1 %	12.3 %
2017Q2	4.1 %	5.8 %	7.9 %	9.6 %	11.3 %	12.5 %	13.2 %	13.9 %	14.6 %	14.9 %	15.1 %
2017Q3	0.3 %	1.6 %	3.5 %	4.9 %	6.5 %	7.6 %	8.4 %	8.9 %	9.4 %	9.9 %	10.1 %
2017Q4	0.2 %	2.3 %	5.1 %	6.5 %	7.9 %	9.0 %	9.7 %	10.2 %	10.7 %	11.2 %	10.6 %
2018Q1	0.2 %	2.9 %	5.1 %	6.8 %	7.2 %	7.9 %	8.4 %	8.7 %	9.0 %	8.6 %	8.1 %
2018Q2	0.7 %	4.1 %	7.1 %	9.4 %	11.2 %	12.4 %	13.4 %	14.1 %	14.3 %	14.1 %	14.1 %
2018Q3	0.2 %	2.8 %	3.6 %	4.5 %	5.2 %	6.4 %	7.0 %	7.0 %	6.9 %	7.0 %	6.9 %
2018Q4	0.6 %	2.2 %	3.4 %	5.2 %	6.9 %	9.0 %	9.7 %	9.9 %	9.6 %	9.7 %	9.7 %
2019Q1	0.0 %	0.8 %	2.0 %	3.4 %	5.3 %	5.9 %	6.3 %	6.3 %	6.3 %	6.3 %
2019Q2	0.1 %	1.5 %	4.5 %	7.5 %	8.8 %	9.2 %	9.9 %	10.3 %	10.6 %
2019Q3	0.2 %	2.9 %	6.8 %	9.0 %	10.4 %	12.0 %	13.2 %	13.8 %
2019Q4	0.4 %	3.1 %	4.9 %	6.3 %	7.2 %	7.9 %	8.4 %
2020Q1	0.6 %	2.3 %	4.1 %	5.2 %	6.0 %	6.2 %
2020Q2	0.5 %	2.5 %	4.2 %	5.3 %	6.1 %
2020Q3	1.1 %	3.3 %	5.1 %	6.3 %
2020Q4	0.3 %	1.8 %	3.2 %
2021Q1	0.4 %	2.3 %
2021Q2	0.4 %

 

View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-fourth-quarter-and-fiscal-year-2021-financial-results-301614873.html

SOURCE Yiren Digital

FAQ

What were Yiren Digital's financial results for Q4 2021?

Yiren Digital reported a total net revenue of RMB 1,020.9 million (US$160.2 million) in Q4 2021, down from RMB 1,160.9 million in Q4 2020.

How did Yiren Digital perform in FY 2021?

In FY 2021, Yiren Digital achieved total net revenue of RMB 4,477.9 million (US$702.7 million), up 13% from RMB 3,962.0 million in FY 2020.

What was the net income for Yiren Digital in 2021?

Yiren Digital reported a net income of RMB 1,033.0 million (US$162.1 million) in 2021, compared to a net loss of RMB 692.7 million in 2020.

What trends were observed in Yiren Digital's loan facilitation model?

Loans facilitated in Q4 2021 reached RMB 6.2 billion, marking a 9.8% decline from Q3 2021.

What growth was seen in Yiren Digital's wealth management segment?

The wealth management segment's revenue contribution grew to over 35% of total revenue in Q4 2021, with client assets increasing by 11% quarter-over-quarter.