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Yiren Digital Reports Second Quarter 2024 Financial Results

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Yiren Digital (NYSE: YRD) reports its unaudited Q2 2024 financial results, showcasing a strong performance across its business segments.

Financial Services: Loans facilitated reached RMB12.9 billion, up 8.6% from Q1 2024 and 57.3% YoY. Borrowers totaled 10.8 million, with 1.5 million served in Q2.

Insurance Brokerage: Gross written premiums rose to RMB1,060.9 million, up 16.3% QoQ, though revenue declined 77.4% YoY due to regulatory changes.

Consumption & Lifestyle: GMV decreased 11.3% QoQ, but increased 40.1% YoY.

Financial Highlights: Total revenue was RMB1.5 billion, a 13% YoY increase. Net income dropped to RMB409.5 million from RMB527.3 million YoY due to higher provisions. Expenses rose across marketing and R&D, while cash flow remained positive.

Management Changes: CFO Na Mei will be succeeded by Yuning Feng. Dividend policy introduced with a semi-annual payout starting H1 2024. Share repurchase program continued with US$4.0 million allocated in Q2.

Yiren Digital (NYSE: YRD) ha riportato i risultati finanziari non auditati del secondo trimestre del 2024, evidenziando un’ottima performance nei diversi segmenti aziendali.

Servizi Finanziari: I prestiti facilitati hanno raggiunto 12,9 miliardi di RMB, in aumento dell'8,6% rispetto al primo trimestre del 2024 e del 57,3% rispetto all'anno precedente. I mutuatari sono stati 10,8 milioni, con 1,5 milioni serviti nel secondo trimestre.

Brokeraggio Assicurativo: I premi lordi scritti sono saliti a 1.060,9 milioni di RMB, segnando un aumento del 16,3% rispetto al trimestre precedente, anche se le entrate sono diminuite del 77,4% rispetto all'anno precedente a causa di cambiamenti normativi.

Consumo e Stile di Vita: Il GMV è diminuito dell'11,3% rispetto al trimestre precedente, ma è aumentato del 40,1% rispetto all'anno precedente.

Indicatori Finanziari: Il fatturato totale è stato di 1,5 miliardi di RMB, con un incremento del 13% rispetto all'anno precedente. Il reddito netto è sceso a 409,5 milioni di RMB rispetto a 527,3 milioni di RMB dell'anno precedente a causa di maggiori accantonamenti. Le spese sono aumentate nei settori marketing e R&D, mentre il flusso di cassa è rimasto positivo.

Cambiamenti nella Direzione: Il CFO Na Mei sarà sostituito da Yuning Feng. È stata introdotta una politica di dividendi con un pagamento semi-annuale a partire dal primo semestre del 2024. Il programma di riacquisto delle azioni è continuato con 4,0 milioni di dollari allocati nel secondo trimestre.

Yiren Digital (NYSE: YRD) ha publicado sus resultados financieros no auditados del segundo trimestre de 2024, mostrando un rendimiento sólido en sus segmentos comerciales.

Servicios Financieros: Los préstamos facilitados alcanzaron 12,9 mil millones de RMB, un aumento del 8,6% en comparación con el primer trimestre de 2024 y del 57,3% interanual. El total de prestatarios fue de 10,8 millones, con 1,5 millones atendidos en el segundo trimestre.

Corretaje de Seguros: Las primas brutas suscritas aumentaron a 1.060,9 millones de RMB, un incremento del 16,3% en comparación con el trimestre anterior, aunque los ingresos disminuyeron un 77,4% interanual debido a cambios regulatorios.

Consumo y Estilo de Vida: El GMV disminuyó un 11,3% en comparación con el trimestre anterior, pero aumentó un 40,1% interanual.

Aspectos Financieros Destacados: Los ingresos totales fueron de 1,5 mil millones de RMB, con un incremento del 13% interanual. La renta neta cayó a 409,5 millones de RMB desde 527,3 millones de RMB interanual debido a mayores provisiones. Los gastos aumentaron en marketing y I+D, mientras que el flujo de caja se mantuvo positivo.

Cambios en la Dirección: El CFO Na Mei será sucedido por Yuning Feng. Se introdujo una política de dividendos con un pago semestral a partir del primer semestre de 2024. El programa de recompra de acciones continuó con 4,0 millones de dólares asignados en el segundo trimestre.

Yiren Digital (NYSE: YRD)는 2024년 2분기 비감사 재무 결과를 발표하며 각 사업 부문에서 강력한 성과를 보여주었습니다.

금융 서비스: 중개한 대출은 129억 위안에 달하여 2024년 1분기 대비 8.6% 증가하고, 전년 대비 57.3% 증가했습니다. 총 차입자는 1,080만 명이며, 2분기 중 150만 명이 서비스되었습니다.

보험 중개: 총 보험료는 106억 9천만 위안으로, 전 분기 대비 16.3% 증가했지만, 규제 변화로 인해 전년 대비 수익이 77.4% 감소했습니다.

소비 및 라이프스타일: GMV는 전 분기 대비 11.3% 감소했지만, 전년 대비 40.1% 증가했습니다.

재무 하이라이트: 총 수익은 15억 위안으로, 전년 대비 13% 증가했습니다. 순이익은 전년 52억 7천만 위안에서 40억 9천5백만 위안으로 감소했으며, 이는 높은 충당금 때문입니다. 마케팅과 연구 개발 비용이 증가했지만, 현금 흐름은 여전히 긍정적입니다.

경영 변화: CFO Na Mei가 Yuning Feng으로 교체됩니다. 2024년 상반기부터 반기 배당금 정책이 도입되었습니다. 2분기 중 400만 달러의 자사주 매입 프로그램이 계속되었습니다.

Yiren Digital (NYSE: YRD) a publié ses résultats financiers non audités du deuxième trimestre 2024, montrant une performance solide dans ses segments d'activité.

Services Financiers : Les prêts facilités ont atteint 12,9 milliards de RMB, en hausse de 8,6 % par rapport au premier trimestre 2024 et de 57,3 % par rapport à l'année précédente. Le nombre total d'emprunteurs s'est élevé à 10,8 millions, avec 1,5 million de clients servis au deuxième trimestre.

Courtage d'Assurance : Les primes brutes écrites sont passées à 1 060,9 millions de RMB, soit une hausse de 16,3 % par rapport au trimestre précédent, bien que les revenus aient diminué de 77,4 % par rapport à l'année précédente en raison de modifications réglementaires.

Consommation et Style de Vie : Le GMV a diminué de 11,3 % par rapport au trimestre précédent, mais a augmenté de 40,1 % par rapport à l'année précédente.

Points Financiers Clés : Le chiffre d'affaires total était de 1,5 milliard de RMB, soit une augmentation de 13 % par rapport à l'année précédente. Le revenu net a chuté à 409,5 millions de RMB, contre 527,3 millions de RMB l'année précédente, en raison d'une augmentation des provisions. Les dépenses ont augmenté dans le marketing et la R&D, tandis que le flux de trésorerie est resté positif.

Changements de Direction : Le CFO Na Mei sera remplacé par Yuning Feng. Une politique de dividende a été introduite avec un paiement semestriel à partir du premier semestre 2024. Le programme de rachat d'actions a été poursuivi avec 4,0 millions de dollars alloués au deuxième trimestre.

Yiren Digital (NYSE: YRD) hat seine ungeprüften Finanzzahlen für das zweite Quartal 2024 veröffentlicht und zeigt eine starke Leistung in seinen Geschäftsbereichen.

Finanzdienstleistungen: Die vermittelten Darlehen beliefen sich auf 12,9 Milliarden RMB, ein Anstieg von 8,6% im Vergleich zum ersten Quartal 2024 und von 57,3% im Jahresvergleich. Die Gesamtzahl der Kreditnehmer betrug 10,8 Millionen, wobei 1,5 Millionen im zweiten Quartal bedient wurden.

Versicherungsmakler: Die brutto geschriebenen Prämien stiegen auf 1.060,9 Millionen RMB, ein Anstieg von 16,3% im Vergleich zum Vorquartal, obwohl die Einnahmen aufgrund regulatorischer Änderungen um 77,4% im Jahresvergleich zurückgingen.

Konsum und Lebensstil: GMV sank um 11,3% im Vergleich zum Vorquartal, stieg jedoch um 40,1% im Jahresvergleich.

Finanzielle Höhepunkte: Der Gesamtumsatz betrug 1,5 Milliarden RMB, was einem Anstieg von 13% im Jahresvergleich entspricht. Der Nettogewinn sank auf 409,5 Millionen RMB von 527,3 Millionen RMB im Jahresvergleich aufgrund höherer Rückstellungen. Die Ausgaben stiegen in den Bereichen Marketing und F&E, während der Cashflow positiv blieb.

Änderungen im Management: CFO Na Mei wird von Yuning Feng abgelöst. Die Dividendenpolitik wurde mit einer halbjährlichen Auszahlung ab dem ersten Halbjahr 2024 eingeführt. Das Aktienrückkaufprogramm wurde mit 4,0 Millionen USD im zweiten Quartal fortgesetzt.

Positive
  • Total loans facilitated increased by 8.6% QoQ to RMB12.9 billion.
  • Total revenue grew by 13% YoY to RMB1.5 billion.
  • Gross written premiums rose 16.3% QoQ to RMB1,060.9 million.
  • Cash and cash equivalents stood at RMB5.5 billion as of June 30, 2024.
  • New semi-annual dividend policy announced.
Negative
  • Net income dropped to RMB409.5 million from RMB527.3 million YoY.
  • Revenue from insurance brokerage declined by 77.4% YoY.
  • Total GMV in consumption and lifestyle business decreased by 11.3% QoQ.
  • Sales and marketing expenses increased to RMB285.1 million from RMB148.9 million YoY.
  • Allowance for contract assets, receivables, and others rose to RMB123.3 million from RMB48.9 million YoY.

Insights

Yiren Digital's Q2 2024 results show a mixed performance. Total revenue increased 13% year-over-year to RMB 1.5 billion, driven by 46.2% growth in financial services revenue. However, net income declined to RMB 409.5 million from RMB 527.3 million last year.

The company's loan facilitation business is growing strongly, with total loans up 8.6% quarter-over-quarter. However, the insurance brokerage segment saw a sharp 77.4% revenue decline due to regulatory changes. The consumption business grew 64.1% year-over-year but declined sequentially.

While top-line growth is solid, rising provisions and expenses are pressuring profitability. The new semi-annual dividend policy and ongoing share buybacks are positive for shareholders. Overall, Yiren Digital is showing resilience but faces challenges in maintaining profit growth amid regulatory changes and investments in AI capabilities.

Yiren Digital's strategic focus on AI integration is promising for long-term competitiveness. The company is positioning itself as an AI-powered platform, with ongoing investments in AI upgrades and technological innovations. This is evident from the 69% year-over-year increase in R&D expenses to RMB 55.8 million.

The seamless integration of AI into operations has fostered dual growth in technological advancements and operational efficiency. This strategy could lead to improved customer experiences, more efficient loan underwriting and potentially new AI-driven financial products.

However, the impact of these AI investments on the bottom line is not yet clear. As the company continues to invest heavily in technology, investors should monitor how these expenditures translate into tangible benefits and competitive advantages in the crowded fintech space.

Yiren Digital's performance reflects broader trends in China's fintech sector. The strong growth in financial services, particularly small revolving loans, indicates robust consumer credit demand. However, the sharp decline in insurance brokerage revenue highlights the impact of regulatory changes on the industry.

The company's focus on customer acquisition and experience enhancement is paying off, with the number of borrowers served increasing by 10.3% quarter-over-quarter. The growth in property insurance business partially offsets the decline in life insurance sales.

The moderation in e-commerce growth suggests market saturation among existing customers. Yiren Digital's shift towards customer segmentation and AI-driven solutions could help maintain growth momentum. However, the company needs to navigate carefully through the evolving regulatory landscape and economic uncertainties in China to sustain its performance.

BEIJING, Aug. 20, 2024 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China, today announced its unaudited financial results for the quarter ended June 30, 2024. 

Second Quarter 2024 Operational Highlights

Financial Services Business

  • Total loans facilitated in the second quarter of 2024 reached RMB12.9 billion (US$1.8 billion), representing an increase of 8.6% from RMB11.9 billion in the first quarter of 2024 and compared to RMB8.2 billion in the same period of 2023.
  • Cumulative number of borrowers served reached 10,807,497 as of June 30, 2024, representing an increase of 8.3% from 9,978,280 as of March 31, 2024, and compared to 8,002,372 as of June 30, 2023.
  • Number of borrowers served in the second quarter of 2024 was 1,491,756, representing an increase of 10.3% from 1,352,200 in the first quarter of 2024 and compared to 1,013,972 in the same period of 2023. The increase was due to our ongoing effort in customer acquisition and user experience enhancement.
  • Outstanding balance of performing loans facilitated reached RMB21.8 billion (US$3.0 billion) as of June 30, 2024, representing an increase of 8.3% from RMB20.2 billion as of March 31, 2024 and compared to RMB12.8 billion as of June 30, 2023.

Insurance Brokerage Business

  • Cumulative number of insurance clients served reached 1,410,158 as of June 30, 2024, representing an increase of 4.9% from 1,343,660 as of March 31, 2024, and compared to 1,133,069 as of June 30, 2023.
  • Number of insurance clients served in the second quarter of 2024 was 88,766, representing an increase of 20.5% from 73,687 in the first quarter of 2024 and compared to 135,449 in the same period of 2023. The increase was primarily due to the continued growth of our property insurance business.
  • Gross written premiums in the second quarter of 2024 were RMB1,060.9 million (US$146.0 million), representing an increase of 16.3% from RMB912.4 million in the first quarter of 2024 and compared to RMB1,332.5 million in the same period of 2023. The increase was mainly attributed to the continued expansion of our property insurance business.

Consumption and Lifestyle Business

  • Total gross merchandise volume generated through our e-commerce platform and "Yiren Select" channel reached RMB554.6 million (US$76.3 million) in the second quarter of 2024, representing a decrease of 11.3% from RMB625.1 million in the first quarter of 2024 and compared to RMB395.8 million in the same period of 2023. The decrease was mainly due to the already high penetration of our products and services within the existing customer pool, along with our strategic scale-back in product offerings as we shift our focus to upgrading customer segmentation.

"Despite the evolving market environment, we are pleased to report another solid quarter with strong unit economics, reflecting the resilience of our business structure and operational strategies, as well as our commitment to quality growth over mere expansion." said Mr. Ning Tang, Chairman and Chief Executive Officer. 

"Our continued investments in AI and the seamless integration of technological innovations into our operations have fostered dual growth in both technological advancements and operational efficiency. Our strategic direction positions us well to evolve into a leading AI-driven platform, paving the way for groundbreaking solutions and setting new industry standards."

"In the second quarter of 2024, our total revenue reached RMB 1.5 billion, representing 13% increase year-over-year. We generate approximately RMB 369 million net cash from operation in this quarter, remaining healthy and strong." Ms. Na Mei, Chief Financial Officer commented. "On the balance sheet side, our balance sheet remained strong with RMB 5.5 billion in cash and cash equivalents as of the end of this quarter and we are exploring diversified ways to enhance our shareholder returns. Through both our cash dividend policy and share buybacks, we aim to reward our shareholders for their long-term trust and support, while also boosting market confidence."

Second Quarter 2024 Financial Results

Total net revenue in the second quarter of 2024 was RMB1,496.5 million (US$205.9 million), representing an increase of 13.0% from RMB1,324.2 million in the second quarter of 2023. Particularly, in the second quarter of 2024, revenue from financial services business was RMB851.0 million (US$117.1 million), representing an increase of 46.2% from RMB582.0 million in the same period of 2023. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB91.5 million (US$12.6 million), representing a decrease of 77.4% from RMB404.7 million in the second quarter of 2023. The decrease was primarily driven by a decline in life insurance sales, resulting from product modifications mandated by new regulations, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB554.0 million (US$76.2 million), representing an increase of 64.1% from RMB337.5 million in the second quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the second quarter of 2024, the growth rate is expected to moderate.

Sales and marketing expenses in the second quarter of 2024 were RMB285.1 million (US$39.2 million), compared to RMB148.9 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new, high-caliber customers while optimizing our customer composition.

Origination, servicing and other operating costs in the second quarter of 2024 were RMB246.5million (US$33.9 million), compared to RMB346.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services. 

Research and development expenses[1] in the second quarter of 2024 were RMB55.8 million (US$7.7 million), compared to RMB33.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.

General and administrative expenses in the second quarter of 2024 were RMB68.7 million (US$9.4 million), compared to RMB63.7 million in the same period of 2023. The increase was primarily due to personnel adjustments.

Allowance for contract assets, receivables and others in the second quarter of 2024 was RMB123.3 million (US$17.0 million), compared to RMB48.9 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the more stringent risk estimates in response to the evolving external credit environment.

Provision for contingent liabilities in the second quarter of 2024 was RMB278.9 million (US$38.4 million), compared to RMB12.0 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model[2].

Income tax expense in the second quarter of 2024 was RMB92.0 million (US$12.7 million). 

Net income in the second quarter of 2024 was RMB409.5 million (US$56.4 million), as compared to RMB527.3 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles. 

Adjusted EBITDA[3] (non-GAAP) in the second quarter of 2024 was RMB481.1 million (US$66.2 million), compared to RMB661.7 million in the same period of 2023. 

Basic and diluted income per ADS in the second quarter of 2024 were RMB4.7 (US$0.7) and RMB4.7 (US$0.6) respectively, compared to a basic income per ADS of RMB6.0 and a diluted income per ADS of RMB5.9 in the same period of 2023. 

Net cash generated from operating activities in the second quarter of 2024 was RMB368.9 million (US$50.8 million), compared to RMB718.1 million in the same period of 2023. 

Net cash used in investing activities in the second quarter of 2024 was RMB536.9 million (US$73.9 million), compared to RMB20.0 million provided by investing activities in the same period of 2023.

Net cash used in financing activities in the second quarter of 2024 was RMB125.9 million (US$17.3 million), compared to RMB6.1 million in the same period of 2023. 

As of June 30, 2024, cash and cash equivalents were RMB5,496.9 million (US$756.4 million), compared to RMB5,904.0 million as of March 31, 2024. As of June 30, 2024, the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million), decreased 51.2% from March 31, 2024. As of June 30, 2024, the balance of available-for-sale investments was RMB329.8 million (US$45.4 million), compared to RMB379.5 million as of March 31, 2024. As of June 30, 2024, the balance of trading securities was RMB83.9 million (US$11.5 million), compared to RMB78.0 million as of March 31, 2024.

Delinquency rates. As of June 30, 2024, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.8%, 1.4% and 1.6%, respectively, compared to 0.9%, 1.6% and 1.4%, respectively, as of March 31, 2024. 

Cumulative M3+ net charge-off rates. As of June 30, 2024, the cumulative M3+ net charge-off rates for loans originated in 2021, 2022 and 2023 were 6.1%, 4.6% and 5.9%, respectively, as compared to 6.3%, 4.7% and 3.9%, respectively, as of March 31, 2024.

Management Change

The Company announces that Ms. Na Mei will resign from her position as Chief Financial Officer due to personal reasons effective as of the close of business on August 20, 2024 New York time. Ms. Mei will continue to serve CreditEase, Yiren Digital's parent company, and assist in ensuring a smooth transition to the new CFO. The board of directors of the Company (the "Board") extends its gratitude to Ms. Mei for her dedicated service and significant contributions during her tenure.

Following this development, the Board has appointed Mr. Yuning Feng as the new Chief Financial Officer to succeed Ms. Mei. Mr. Feng brings extensive experience and expertise in investment banking and financial control to the role, and the Board is confident in his ability to lead the Company's financial operations with distinction.

Mr. Feng possesses over a decade of experience in venture capital investment, investment banking and financial control. Before joining Yiren Digital, he was a partner at CE Innovation Capital, from 2015 to 2018 and from 2021 to 2024. In this role, he led investments in fintech, enterprise solutions, and AI sectors, managed investment portfolios, and contributed to fundraising and fund management. From 2018 to 2021, Mr. Feng served as an investment banker at China Renaissance, specializing in corporate finance for fintech and enterprise solutions companies, where he established strong connections with a variety of companies and investors. Earlier in his career, Mr. Feng was a financial controller at Goldman Sachs and UBS from 2008 to 2012. He received a bachelor's degree from Beijing Foreign Studies University in 2008 and an MBA from the University of Warwick in 2014.

Dividend Policy

The Company is pleased to announce that the Board has approved a semi-annual dividend policy, reflecting our commitment to delivering value to our shareholders. Pursuant to the policy, the Board plans to declare semi-annual dividends at an amount equivalent to no less than 10% of the Company's anticipated net income after tax in each half year commencing from the first half of 2024. The determination to declare and pay such semi-annual dividends and the amount of dividends in any particular half year will be made at the discretion of the Board and will be based upon the Company's operations, earnings, cash flow, financial condition and other relevant factors that the Board may deem appropriate.

The cash dividend for the first half of 2024, a payment of US$0.2 per American depositary share (the "ADS"), each representing two ordinary shares of the Company, par value US$0.0001 per share, is expected to be paid on or about October 15, 2024, to holders of the Company's ordinary shares and ADSs of record as of the close of business on September 30, 2024, Hong Kong time and New York time, respectively. 

Update on Share Repurchase

In September 2022, the Board authorized a share repurchase program under which the Company may repurchase up to US$20 million worth of its ADSs. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management.

In the second quarter of 2024, the Company allocated US$4.0 million to repurchase shares in the public market. As of June 30, 2024, the Company had in aggregate purchased approximately 4.3 million ADSs in the open market for a total amount of approximately US$13.5 million (exclusive of commissions) under the 2022 share repurchase program.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the third quarter of 2024 to be between RMB1.4 billion to RMB1.5 billion, with a healthy net profit margin.

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 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 RMB7.2672 to US$1.00, the effective noon buying rate on June 28, 2024, 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 August 20, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on August 20, 2024).

Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10191859/fd4b40278f

Once registration is completed, participants will receive the dial-in details for the conference call.

Additionally, a live and archived webcast of the conference call will be available at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=T01PiHJw

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 the 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 an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Our mission is to elevate customers' financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. We support clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses.

[1] Research and development expenses have been segregated from general and administrative expenses and restated for historical periods to better reflect the Company's cost and expense structure.
[2] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.
[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.

 

 

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 Six Months Ended 


June 30,
2023


March 31,
2024


June 30,
2024


June 30,
2024



June 30,
2023


June 30,
2024


June 30,
2024


RMB


RMB


RMB


USD



RMB


RMB


USD

Net revenue:















Loan facilitation services

514,353


676,295


695,532


95,708



931,518


1,371,827


188,770

Post-origination services

5,273


1,772


1,290


178



11,589


3,062


421

Insurance brokerage services

404,695


124,926


91,526


12,594



601,053


216,452


29,785

Financing services

14,896


10,666


19,574


2,693



37,473


30,240


4,161

Electronic commerce services

287,725


502,936


523,641


72,055



530,583


1,026,577


141,262

Guarantee services

6,343


16,853


68,934


9,486



12,102


85,787


11,805

Others

90,921


44,636


96,039


13,216



186,231


140,675


19,357

Total net revenue

1,324,206


1,378,084


1,496,536


205,930



2,310,549


2,874,620


395,561

Operating costs and expenses:















Sales and marketing

148,947


277,223


285,101


39,231



255,159


562,324


77,378

Origination,servicing and other operating costs

346,367


233,270


246,542


33,925



546,112


479,812


66,024

Research and development

33,018


40,521


55,812


7,680



62,187


96,333


13,256

General and administrative

63,723


83,674


68,670


9,449



127,104


152,344


20,963

Allowance for contract assets, receivables and others

48,865


102,334


123,285


16,965



88,271


225,619


31,047

Provision for contingent liabilities

11,975


67,258


278,925


38,382



17,474


346,183


47,636

Total operating costs and expenses

652,895


804,280


1,058,335


145,632



1,096,307


1,862,615


256,304

Other (expenses)/income:















Interest income, net

10,535


27,713


24,668


3,394



25,054


52,381


7,208

Fair value adjustments related to Consolidated ABFE

(17,470)


15,468


38,706


5,326



(28,673)


54,174


7,455

Others, net

2,730


677


(11)


(1)



6,319


666


91

Total other (expenses)/income

(4,205)


43,858


63,363


8,719



2,700


107,221


14,754

Income before provision for income taxes

667,106


617,662


501,564


69,017



1,216,942


1,119,226


154,011

Income tax expense

139,758


131,779


92,036


12,664



262,428


223,815


30,798

Net income

527,348


485,883


409,528


56,353



954,514


895,411


123,213
















Weighted average number of ordinary shares outstanding,
basic

176,929,176


174,282,443


172,831,722


172,831,722



177,353,262


173,557,082


173,557,082

Basic income per share

2.9806


2.7879


2.3695


0.3261



5.3820


5.1592


0.7099

Basic income per ADS

5.9612


5.5758


4.7390


0.6522



10.7640


10.3184


1.4198
















Weighted average number of ordinary shares outstanding,
diluted

179,124,032


176,202,571


174,711,554


174,711,554



179,650,148


175,457,062


175,457,062

Diluted income per share

2.9440


2.7575


2.3440


0.3225



5.3132


5.1033


0.7022

Diluted income per ADS

5.8880


5.5150


4.6880


0.6450



10.6264


10.2066


1.4044
















Unaudited Condensed Consolidated Cash Flow Data















Net cash generated from operating activities

718,058


631,743


368,908


50,763



1,108,365


1,000,651


137,693

Net cash  (used in)/provided by investing activities

(19,988)


(683,697)


(536,883)


(73,878)



754,295


(1,220,580)


(167,957)

Net cash used in financing activities

(6,120)


(14,774)


(125,884)


(17,322)



(398,951)


(140,658)


(19,355)

Effect of foreign exchange rate changes

329


1,340


(896)


(123)



148


444


61

Net increase/(decrease) in cash, cash equivalents and
restricted cash

692,279


(65,388)


(294,755)


(40,560)



1,463,857


(360,143)


(49,558)

Cash, cash equivalents and restricted cash, beginning of
period

5,132,273


6,058,604


5,993,216


824,694



4,360,695


6,058,604


833,692

Cash, cash equivalents and restricted cash, end of period

5,824,552


5,993,216


5,698,461


784,134



5,824,552


5,698,461


784,134

 

 

Unaudited Condensed Consolidated Balance Sheets

 (in thousands)


As of


December 31,
2023


March 31,
2024


June 30,
2024


June 30,
2024


RMB


RMB


RMB


USD









        Cash and cash equivalents

5,791,333


5,903,995


5,496,932


756,403

        Restricted cash

267,271


89,221


201,529


27,731

        Trading securities

76,053


77,967


83,889


11,544

        Accounts receivable

499,027


610,745


654,698


90,089

        Guarantee receivable

2,890


36,787


260,759


35,882

        Contract assets, net

978,051


994,116


962,482


132,442

        Contract cost

32


18


206


28

        Prepaid expenses and other assets

423,621


1,273,040


1,662,654


228,789

        Loans at fair value

677,835


655,058


473,311


65,130

        Financing receivables

116,164


73,383


30,501


4,197

        Amounts due from related parties

820,181


726,991


1,509,651


207,735

        Held-to-maturity investments

10,420


10,420


5,087


700

        Available-for-sale investments

438,084


379,489


329,829


45,386

        Equity investments

-


-


2,500


344

        Property, equipment and software, net

79,158


77,777


77,970


10,729

        Deferred tax assets

73,414


59,260


44,309


6,097

        Right-of-use assets

23,382


18,758


19,462


2,678

Total assets

10,276,916


10,987,025


11,815,769


1,625,904

        Accounts payable

30,902


41,484


43,710


6,015

        Amounts due to related parties

14,414


1,122


2,485


342

        Guarantee liabilities-stand ready

8,802


40,583


278,656


38,344

        Guarantee liabilities-contingent

28,351


81,921


336,190


46,261

        Deferred revenue

54,044


46,807


38,843


5,345

        Payable to investors at fair value

445,762


445,762


350,000


48,162

        Accrued expenses and other liabilities

1,463,369


1,595,052


1,727,182


237,668

        Deferred tax liabilities

122,075


114,222


55,520


7,640

        Lease liabilities

23,648


19,025


19,280


2,653

Total liabilities

2,191,367


2,385,978


2,851,866


392,430

        Ordinary shares

130


130


130


18

        Additional paid-in capital

5,171,232


5,172,942


5,175,653


712,194

        Treasury stock

(94,851)


(109,444)


(139,380)


(19,179)

        Accumulated other comprehensive
income

23,669


66,671


47,798


6,576

        Retained earnings

2,985,369


3,470,748


3,879,702


533,865

Total equity

8,085,549


8,601,047


8,963,903


1,233,474

Total liabilities and equity

10,276,916


10,987,025


11,815,769


1,625,904

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except for number of  borrowers, number of insurance clients, cumulative number of insurance clients and percentages)


For the Three Months Ended 



For the Six Months Ended 


June 30,
2023


March 31,
2024


June 30,
2024


June 30,
2024



June 30,
2023


June 30,
2024


June 30,
2024


RMB


RMB


RMB


USD



RMB


RMB


USD

Operating Highlights















Amount of loans facilitated 

8,156,201


11,910,367


12,936,017


1,780,055



14,576,413


24,846,384


3,418,976

Number of borrowers

1,013,972


1,352,200


1,491,756


1,491,756



1,457,736


2,439,778


2,439,778

Remaining principal of performing loans 

12,768,448


20,156,161


21,827,634


3,003,582



12,768,448


21,827,634


3,003,582

Cumulative number of insurance clients

1,133,069


1,343,660


1,410,158


1,410,158



1,133,069


1,410,158


1,410,158

Number of insurance clients

135,449


73,687


88,766


88,766



212,414


153,807


153,807

Gross written premiums

1,332,458


912,431


1,060,885


145,983



2,255,841


1,973,316


271,537

First year premium

1,101,928


514,141


577,387


79,451



1,729,243


1,091,528


150,199

Renewal premium

230,530


398,290


483,498


66,532



526,598


881,788


121,338

Gross merchandise volume 

395,820


625,120


554,574


76,312



704,387


1,179,695


162,331
















Segment Information















Financial services business:















Revenue

581,974


738,117


851,031


117,106



1,065,847


1,589,148


218,674

Sales and marketing expenses

103,164


251,922


253,103


34,828



165,382


505,025


69,494

Origination, servicing and other operating
costs

38,961


85,787


113,234


15,582



86,570


199,021


27,386

Allowance for contract assets, receivables and
others

45,754


101,127


124,765


17,168



85,976


225,892


31,084

Provision for contingent liabilities

11,975


67,258


278,925


38,382



17,474


346,183


47,636
















Insurance brokerage business:















Revenue

404,695


124,926


91,526


12,594



601,053


216,452


29,785

Sales and marketing expenses

3,845


3,565


4,263


587



6,134


7,828


1,077

Origination, servicing and other operating
costs

289,851


136,883


122,358


16,837



423,468


259,241


35,673

Allowance for contract assets, receivables and
others

3,614


1,012


(1,502)


(207)



3,626


(490)


(67)
















Consumption & lifestyle business and others:















Revenue

337,537


515,041


553,979


76,230



643,649


1,069,020


147,102

Sales and marketing expenses

41,938


21,736


27,735


3,816



83,643


49,471


6,807

Origination, servicing and other operating
costs

17,555


10,600


10,950


1,506



36,074


21,550


2,965

Allowance for contract assets, receivables and
others

(753)


9


(11)


(2)



(1,232)


(2)


-
















Reconciliation of Adjusted EBITDA















Net income

527,348


485,883


409,528


56,353



954,514


895,411


123,213

Interest income, net

(10,535)


(27,713)


(24,668)


(3,394)



(25,054)


(52,381)


(7,208)

Income tax expense

139,758


131,779


92,036


12,664



262,428


223,815


30,798

Depreciation and amortization

1,778


1,892


2,026


279



3,646


3,918


539

Share-based compensation

3,321


1,207


2,136


294



5,410


3,343


460

Adjusted EBITDA

661,670


593,048


481,058


66,196



1,200,944


1,074,106


147,802

Adjusted EBITDA margin

50.0 %


43.0 %


32.1 %


32.1 %



52.0 %


37.4 %


37.4 %

 

 

Delinquency Rates 



15-29 days


30-59 days


60-89 days

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 %

December 31, 2022


0.7 %


1.3 %


1.1 %

December 31, 2023


0.9 %


1.4 %


1.2 %

March 31, 2024


0.9 %


1.6 %


1.4 %

June 30, 2024


0.8 %


1.4 %


1.6 %

 

 

Net Charge-Off Rate 

Loan
Issued
Period


Amount of Loans
Facilitated

During the Period


Accumulated M3+ Net
Charge-Off

as of June 30, 2024


Total Net Charge-
Off Rate

as of June 30, 2024



(in RMB thousands)


(in RMB thousands)



2019


3,431,443


381,533


11.1 %

2020


9,614,819


723,686


7.5 %

2021


23,195,224


1,418,075


6.1 %

2022


22,623,101


1,033,743


4.6 %

2023


36,036,301


2,126,589


5.9 %

2024Q1


11,910,367


105,205


0.9 %

 

 

M3+ Net Charge-Off Rate

Loan
Issued
Period


Month on Book



4

7

10

13

16

19

22

25

28

31

34

2019Q1


0.0 %

0.8 %

2.0 %

3.4 %

5.3 %

5.9 %

6.3 %

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 %

10.6 %

10.6 %

2019Q3


0.2 %

2.9 %

6.8 %

9.0 %

10.4 %

12.0 %

13.2 %

13.8 %

14.4 %

14.6 %

14.6 %

2019Q4


0.4 %

3.1 %

4.9 %

6.3 %

7.2 %

7.9 %

8.4 %

8.9 %

9.5 %

9.8 %

9.8 %

2020Q1


0.6 %

2.3 %

4.1 %

5.2 %

6.0 %

6.2 %

6.6 %

7.3 %

7.8 %

7.9 %

7.9 %

2020Q2


0.5 %

2.5 %

4.2 %

5.3 %

6.1 %

6.7 %

7.6 %

8.1 %

8.2 %

8.3 %

8.2 %

2020Q3


1.1 %

3.3 %

5.1 %

6.3 %

7.1 %

8.1 %

8.7 %

8.9 %

8.9 %

8.8 %

8.7 %

2020Q4


0.3 %

1.8 %

3.2 %

4.6 %

6.0 %

7.1 %

7.4 %

7.6 %

7.6 %

7.5 %

7.5 %

2021Q1


0.4 %

2.3 %

3.9 %

5.5 %

6.7 %

7.0 %

7.2 %

7.3 %

7.2 %

7.1 %

7.0 %

2021Q2


0.4 %

2.4 %

4.5 %

5.9 %

6.4 %

6.7 %

6.8 %

6.7 %

6.6 %

6.5 %

6.4 %

2021Q3


0.5 %

3.1 %

5.0 %

5.9 %

6.3 %

6.4 %

6.4 %

6.3 %

6.2 %

6.1 %


2021Q4


0.6 %

3.2 %

4.6 %

5.3 %

5.4 %

5.4 %

5.3 %

5.2 %

5.1 %



2022Q1


0.6 %

2.5 %

3.8 %

4.5 %

4.5 %

4.4 %

4.3 %

4.2 %




2022Q2


0.4 %

2.2 %

3.6 %

4.1 %

4.2 %

4.1 %

4.0 %





2022Q3


0.5 %

2.7 %

4.1 %

4.7 %

4.8 %

4.6 %






2022Q4


0.6 %

3.0 %

4.6 %

5.4 %

5.4 %







2023Q1


0.5 %

3.1 %

4.9 %

5.8 %








2023Q2


0.5 %

3.3 %

5.2 %









2023Q3


0.7 %

4.0 %










2023Q4


0.6 %











 

 

Cision View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2024-financial-results-302226268.html

SOURCE Yiren Digital

FAQ

What were Yiren Digital's financial results for Q2 2024?

Yiren Digital reported total revenue of RMB1.5 billion, a 13% YoY increase, and net income of RMB409.5 million, down from RMB527.3 million YoY.

How did Yiren Digital's loan facilitation perform in Q2 2024?

Total loans facilitated reached RMB12.9 billion, representing an 8.6% QoQ and 57.3% YoY increase.

What changes occurred in Yiren Digital's insurance brokerage revenue in Q2 2024?

Revenue from insurance brokerage declined by 77.4% YoY due to regulatory changes affecting life insurance sales.

What is Yiren Digital's new dividend policy?

The new semi-annual dividend policy will distribute at least 10% of net income after tax per half year, starting H1 2024.

Who is the new CFO of Yiren Digital?

Yuning Feng has been appointed as the new CFO, succeeding Na Mei.

Yiren Digital Ltd.

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