Yiren Digital Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

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.

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.

Financial Analyst

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.

Tech Expert

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.

Market Research Analyst

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 %

 

 

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.