Yiren Digital Reports Fourth Quarter and Fiscal Year 2024 Financial Results
BEIJING, March 20, 2025 /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 December 31, 2024.
Fourth Quarter 2024 and Fiscal Year 2024 Operational Highlights
Financial Services Business
- Total loans facilitated in the fourth quarter of 2024 reached RMB15.4 billion (US$2.1 billion), representing an increase of 14.6% from RMB13.4 billion in the third quarter of 2024 and compared to RMB11.6 billion in the same period of 2023.
- Cumulative number of borrowers served reached 12,350,400 as of December 31, 2024, representing an increase of 6.4% from 11,611,899 as of September 30, 2024, and compared to 9,295,666 as of December 31, 2023.
- Number of borrowers served in the fourth quarter of 2024 was 1,560,789, representing an increase of 4.2% from 1,498,020 in the third quarter of 2024 and compared to 1,371,501 in the same period of 2023. As we successfully enhance our customer segments, the repeat rate of our high-quality borrowers continues to grow. For the fiscal year of 2024, total number of borrowers served was 4,187,502, compared to 2,891,901 in 2023.
- Outstanding balance of performing loans facilitated reached RMB24.8 billion (US$3.4 billion) as of December 31, 2024, representing an increase of 8.7% from RMB22.8 billion as of September 30, 2024 and compared to RMB18.3 billion as of December 31, 2023.
Insurance Brokerage Business
- Cumulative number of insurance clients served reached 1,532,119 as of December 31, 2024, representing an increase of 4.2% from 1,470,738 as of September 30, 2024, and compared to 1,283,102 as of December 31, 2023.
- Number of insurance clients served in the fourth quarter of 2024 was 83,786, representing an increase of 1.8% from 82,291 in the third quarter of 2024, and compared to 102,556 in the same period of 2023. Total number of insurance clients served was 296,842 in 2024, compared to 358,278 in 2023. The decrease was due to the decline in new sales of our insurance products amid regulatory changes.
- Gross written premiums in the fourth quarter of 2024 were RMB1,100.3 million (US$150.7 million), representing a decrease of 18.6% from RMB1,351.3 million in the third quarter of 2024 and compared to RMB1,208.7 million in the same period of 2023. The decrease was attributed to the ongoing impact of regulatory changes and tightening measures. Total gross written premiums were RMB4,424.9 million in 2024, compared to RMB4,893.0 million in 2023.
"We closed out the year on a strong note, delivering another solid quarter of results that were in line with our previous guidance." said Mr. Ning Tang, Chairman and Chief Executive Officer.
"2024 marked a milestone for us with several key achievements: First, we upgraded our customer segments in the financial services business, effectively improving asset quality for sustainable growth. Second, we advanced our proprietary AI systems and integrated them across all operations, driving significant improvements in efficiency and user experience. Third, our international business met its phased objectives and achieved profitability, driven by our successful expansion in the Philippines. These successes set the foundation for our long-term, high-quality growth in the coming year."
"The year 2024 has been a strong one, with solid financial performance, as full-year revenue grew by 19%," Mr. Yuning Feng, Chief Financial Officer commented. "On the balance sheet side, as of the end of 2024, our cash and cash equivalents remained strong at RMB3.8 billion, highlighting our financial flexibility and positioning us to capitalize on strategic opportunities. Meanwhile, we are pleased to announce a cash dividend distribution for the second half of 2024, amounting to US$0.22 per American depositary share (the"ADS"), an approximately 20% payout ratio, up from 14% for the first half of 2024."
Fourth Quarter 2024 Financial Results
Total net revenue in the fourth quarter of 2024 was RMB1,452.2 million (US$199.0 million), representing an increase of 14.0% from RMB1,274.3 million in the fourth quarter of 2023. Particularly, in the fourth quarter of 2024, revenue from financial services business was RMB1,047.8 million (US$143.5 million), representing an increase of 34.1% from RMB781.3 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 RMB106.4 million (US$14.6 million), representing an increase of 8.4% from RMB98.2 million in the fourth quarter of 2023. The increase was driven by a higher-than-expected premium renewal rate. Revenue from consumption and lifestyle business and others was RMB298.0 million (US$40.8 million), representing a decrease of 24.5% from RMB394.8 million in the fourth quarter 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 of product offerings as we upgrade our customer segment. The Company is conducting a strategic review of this segment to better understand its potential and identify the best ways to serve our customers. Based on the findings, we will adjust our approach and offerings to ensure we effectively meet their needs.
Sales and marketing expenses in the fourth quarter of 2024 were RMB298.5 million (US$40.9 million), compared to RMB205.7 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 fourth quarter of 2024 were RMB197.2 million (US$27.0 million), which remained relatively stable compared to RMB184.7 million in the same period of 2023.
Research and development expenses in the fourth quarter of 2024 were RMB164.7 million (US$22.6 million), compared to RMB47.6 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 fourth quarter of 2024 were RMB42.2 million (US$5.8 million), compared to RMB50.5 million in the same period of 2023. The decrease was primarily due to ongoing investments in technology and AI, which have transformed the company's personnel composition and improved operational efficiency.
Allowance for contract assets, receivables and others in the fourth quarter of 2024 was RMB203.1 million (US$27.8 million), compared to RMB100.2 million in the same period of 2023. The increase was mainly due to a higher allowance for accounts receivable and financing receivables, reflecting our prudent approach to the heightened uncertainties in future market conditions.
Provision for contingent liabilities in the fourth quarter of 2024 was RMB250.7 million (US$34.3 million), compared to a reversal of RMB1.5 million in the same period of 2023. The increase was mainly attributed to a growing volume of loans facilitated under our risk-taking model[1].
Income tax expense in the fourth quarter of 2024 was RMB10.7 million (US$1.5 million).
Net income in the fourth quarter of 2024 was RMB331.4 million (US$45.4 million), as compared to RMB571.3 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated by our risk-taking model, which required substantial upfront provisions under current accounting principles, as well as increased investment in acquiring new, higher-quality borrowers and developing AI innovation and capabilities.
Adjusted EBITDA[2] (non-GAAP) in the fourth quarter of 2024 was RMB313.9 million (US$43.0 million), compared to RMB684.8 million in the same period of 2023.
Basic and diluted income per ADS in the fourth quarter of 2024 were RMB3.8 (US$0.5) and RMB3.8 (US$0.5) respectively, compared to a basic income per ADS of RMB6.5 and a diluted income per ADS of RMB6.5 in the same period of 2023.
Net cash generated from operating activities in the fourth quarter of 2024 was RMB373.0 million (US$51.1 million), compared to RMB417.2 million in the same period of 2023.
Net cash used in investing activities in the fourth quarter of 2024 was RMB32.9 million (US$4.5 million), compared to RMB260.3 million in the same period of 2023.
Net cash used in financing activities in the fourth quarter of 2024 was RMB114.3 million (US$15.7 million), compared to RMB332.3 million provided by financing activities in the same period of 2023.
As of December 31, 2024, cash and cash equivalents were RMB3,841.3 million (US$526.3 million), compared to RMB3,705.9 million as of September 30, 2024. As of December 31, 2024, the balance of held-to-maturity investments was RMB6.6 million (US$0.9 million), compared to RMB5.1 million as of September 30, 2024. As of December 31, 2024, the balance of available-for-sale investments was RMB353.2 million (US$48.4 million), compared to RMB321.6 million as of September 30, 2024. As of December 31, 2024, the balance of trading securities was RMB77.4 million (US$10.6 million), compared to RMB63.3 million as of September 30, 2024.
Delinquency rates[3]. As of December 31, 2024, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 1.6%, 1.2% and 1.1%, respectively, compared to 1.8%, 1.2% and 1.2%, respectively, as of September 30, 2024.
Fiscal Year 2024 Financial Results
Total net revenue in 2024 was RMB5,805.9 million (US$795.4 million), compared to RMB4,895.6 million in 2023. Specifically, revenue from financial services business in 2024 was RMB3,473.1 million (US$475.8 million), compared to RMB2,515.1 million in 2023. The increase was driven by the growing demand for our small revolving loan products. Revenue from insurance brokerage business in 2024 was RMB408.4 million (US$55.9 million), compared to RMB963.8 million in 2023. The decrease was due to the ongoing impacts from regulatory changes. Revenue from consumption and lifestyle business and others was RMB1,924.4 million (US$263.6 million), compared to RMB1,416.7 million in 2023. The overall increase was mainly due to the continuous growth of this segment in the first half of the year, followed by a strategic scale-back in the second half.
Sales and marketing expenses in 2024 were RMB1,196.4 million (US$163.9 million), compared to RMB656.6 million in 2023. The increase was primarily due to our efforts to attract new, higher-quality borrowers and the growth of our financial services business volume.
Origination, servicing and other operating costs in 2024 were RMB883.0 million (US$121.0 million), compared to RMB976.2 million in 2023. The decrease was due to the AI-driven improvement of operational efficiency as well as the decline of our insurance product sales.
Research and development expenses in 2024 were RMB411.9 million (US$56.4 million), compared to RMB148.8 million in 2023. The significant increase was driven by our ongoing investment in AI development and the expansion of our technical team.
General and administrative expenses in 2024 were RMB274.7 million (US$37.6 million), which remained relatively stable compared to RMB231.1 million in 2023.
Allowance for contract assets, receivables and others in 2024 was RMB523.6 million (US$71.7 million), compared to RMB261.2 million in 2023. The increase was mainly due to a higher allowance for accounts receivable and financing receivables, reflecting our prudent approach to the heightened uncertainties in future market conditions.
Provision for contingent liabilities in 2024 was RMB869.3 million (US$119.1 million), compared to RMB27.0 million in 2023. The increase was mainly attributed to the growing loan volume facilitated under our risk-taking model where upfront provision is required under current accounting principles.
Income tax expense in 2024 was RMB279.2 million (US$38.2 million).
Net income in 2024 was RMB1,582.3 million (US$216.8 million), compared to RMB2,080.2 million in 2023.
Adjusted EBITDA (non-GAAP) in 2024 was RMB1,781.8 million (US$244.1 million), compared to RMB2,578.5 million in 2023.
Basic and diluted income per ADS in 2024 were RMB18.3 (US$2.5) and RMB18.1 (US$2.5) respectively, compared to a basic per ADS of RMB23.5 and a diluted per ADS of RMB23.3 in 2023.
Net cash generated from operating activities in 2024 was RMB1,424.1 million (US$195.1 million), compared to RMB2,171.0 million in 2023.
[1] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform. |
[2] "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. |
[3] "Delinquency rates" refers to the outstanding principal balance of loans that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the total performing outstanding principal balance of loans as of a specific date. Loans originating outside mainland China are not included in the calculation. We define a performing loan as one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days. |
Dividend Policy
Under the Company's semi-annual dividend policy, the Company will distribute a cash dividend for the second half of 2024, amounting to US$0.22 per American depositary share (the "ADS"), each representing two ordinary shares of the Company, par value US$0.0001 per share. The dividend is expected to be paid on or about May 15, 2025 to holders of the Company's ordinary shares and ADSs of record as of the close of business on April 30, 2025, based on Hong Kong time and New York time, respectively.
Business Outlook
Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the year of 2025 to be between RMB5.5 billion to RMB6.5 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 RMB7.2993 to US$1.00, the effective noon buying rate on December 31, 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 March 20, 2025 (or 8:00 p.m. Beijing/Hong Kong Time on March 20, 2025).
Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10197602/feaaa46216
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=NaB0pL6P
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.
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, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||
RMB | RMB | RMB | USD | RMB | RMB | USD | ||||||||
Net revenue: | ||||||||||||||
Loan facilitation services | 722,451 | 600,899 | 748,663 | 102,566 | 2,240,852 | 2,721,389 | 372,829 | |||||||
Post-origination services | 4,630 | 1,421 | 1,474 | 202 | 17,203 | 5,957 | 816 | |||||||
Insurance brokerage services | 98,158 | 85,530 | 106,387 | 14,575 | 963,822 | 408,369 | 55,946 | |||||||
Financing services | 8,564 | 31,448 | 31,551 | 4,323 | 55,974 | 93,239 | 12,774 | |||||||
Electronic commerce services | 385,886 | 546,366 | 292,678 | 40,097 | 1,267,104 | 1,865,621 | 255,589 | |||||||
Guarantee services | 8,590 | 136,746 | 206,766 | 28,327 | 50,865 | 429,299 | 58,814 | |||||||
Others | 46,031 | 76,678 | 64,674 | 8,860 | 299,813 | 282,027 | 38,637 | |||||||
Total net revenue | 1,274,310 | 1,479,088 | 1,452,193 | 198,950 | 4,895,633 | 5,805,901 | 795,405 | |||||||
Operating costs and expenses: | ||||||||||||||
Sales and marketing | 205,730 | 335,647 | 298,458 | 40,889 | 656,603 | 1,196,429 | 163,910 | |||||||
Origination,servicing and other operating costs | 184,700 | 205,913 | 197,232 | 27,021 | 976,172 | 882,957 | 120,965 | |||||||
Research and development | 47,586 | 150,840 | 164,703 | 22,564 | 148,754 | 411,876 | 56,427 | |||||||
General and administrative | 50,512 | 80,097 | 42,232 | 5,786 | 231,135 | 274,673 | 37,629 | |||||||
Allowance for contract assets, receivables and others | 100,229 | 94,913 | 203,090 | 27,823 | 261,152 | 523,622 | 71,736 | |||||||
Provision for contingent liabilities | (1,543) | 272,406 | 250,691 | 34,344 | 27,035 | 869,280 | 119,091 | |||||||
Total operating costs and expenses | 587,214 | 1,139,816 | 1,156,406 | 158,427 | 2,300,851 | 4,158,837 | 569,758 | |||||||
Other income/(expenses): | ||||||||||||||
Interest income, net | 29,880 | 21,877 | 31,219 | 4,277 | 80,749 | 105,477 | 14,450 | |||||||
Fair value adjustments related to Consolidated ABFE | (13,394) | 36,423 | 16,935 | 2,320 | (50,171) | 107,532 | 14,732 | |||||||
Others, net | 8,504 | 2,535 | (1,353) | (186) | 20,000 | 1,848 | 253 | |||||||
Total other income | 24,990 | 60,835 | 46,801 | 6,411 | 50,578 | 214,857 | 29,435 | |||||||
Income before provision for income taxes | 712,086 | 400,107 | 342,588 | 46,934 | 2,645,360 | 1,861,921 | 255,082 | |||||||
Share of results of equity investees | - | - | (440) | (60) | - | (440) | (60) | |||||||
Income tax expense | 140,818 | 44,665 | 10,702 | 1,466 | 565,163 | 279,182 | 38,248 | |||||||
Net income | 571,268 | 355,442 | 331,446 | 45,408 | 2,080,197 | 1,582,299 | 216,774 | |||||||
Weighted average number of ordinary shares outstanding, basic | 175,445,539 | 175,018,644 | 172,723,644 | 172,723,644 | 176,749,706 | 173,256,348 | 173,256,348 | |||||||
Basic income per share | 3.2561 | 2.0309 | 1.9189 | 0.2629 | 11.7692 | 9.1327 | 1.2512 | |||||||
Basic income per ADS | 6.5122 | 4.0618 | 3.8378 | 0.5258 | 23.5384 | 18.2654 | 2.5024 | |||||||
Weighted average number of ordinary shares outstanding, diluted | 177,106,305 | 176,035,324 | 173,727,886 | 173,727,886 | 178,688,319 | 174,711,569 | 174,711,569 | |||||||
Diluted income per share | 3.2256 | 2.0192 | 1.9078 | 0.2614 | 11.6415 | 9.0566 | 1.2408 | |||||||
Diluted income per ADS | 6.4512 | 4.0384 | 3.8156 | 0.5228 | 23.2830 | 18.1132 | 2.4816 | |||||||
Unaudited Condensed Consolidated Cash Flow Data | ||||||||||||||
Net cash generated from operating activities | 417,232 | 50,393 | 373,038 | 51,106 | 2,171,013 | 1,424,082 | 195,098 | |||||||
Net cash (used in)/provided by investing activities | (260,331) | (1,859,587) | (32,948) | (4,514) | 100,045 | (3,113,115) | (426,495) | |||||||
Net cash provided by/(used in) financing activities | 332,309 | (22,227) | (114,341) | (15,665) | (569,278) | (277,226) | (37,980) | |||||||
Effect of foreign exchange rate changes | (6,414) | (6,252) | 15,020 | 2,058 | (3,871) | 9,212 | 1,263 | |||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | 482,796 | (1,837,673) | 240,769 | 32,985 | 1,697,909 | (1,957,047) | (268,114) | |||||||
Cash, cash equivalents and restricted cash, beginning of period | 5,575,808 | 5,698,461 | 3,860,788 | 528,926 | 4,360,695 | 6,058,604 | 830,025 | |||||||
Cash, cash equivalents and restricted cash, end of period | 6,058,604 | 3,860,788 | 4,101,557 | 561,911 | 6,058,604 | 4,101,557 | 561,911 | |||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
As of | |||||||
December 31, | September 30, | December 31, | December 31, | ||||
RMB | RMB | RMB | USD | ||||
Cash and cash equivalents | 5,791,333 | 3,705,866 | 3,841,284 | 526,254 | |||
Restricted cash | 267,271 | 154,922 | 260,273 | 35,657 | |||
Trading securities | 76,053 | 63,276 | 77,426 | 10,607 | |||
Accounts receivable | 499,027 | 668,757 | 566,541 | 77,616 | |||
Guarantee receivable | 2,890 | 391,547 | 474,132 | 64,956 | |||
Contract assets, net | 978,051 | 916,543 | 1,008,920 | 138,221 | |||
Contract cost | 32 | 279 | 294 | 40 | |||
Prepaid expenses and other assets | 423,621 | 2,291,397 | 2,361,585 | 323,536 | |||
Loans at fair value | 677,835 | 414,803 | 421,922 | 57,803 | |||
Financing receivables | 116,164 | 28,672 | 17,515 | 2,400 | |||
Amounts due from related parties | 820,181 | 3,338,868 | 3,387,952 | 464,148 | |||
Held-to-maturity investments | 10,420 | 5,087 | 6,587 | 902 | |||
Available-for-sale investments | 438,084 | 321,550 | 353,190 | 48,387 | |||
Equity investments | - | 7,105 | 9,239 | 1,266 | |||
Property, equipment and software, net | 79,158 | 80,224 | 78,678 | 10,779 | |||
Deferred tax assets | 73,414 | 54,595 | 77,463 | 10,612 | |||
Right-of-use assets | 23,382 | 14,454 | 39,695 | 5,438 | |||
Total assets | 10,276,916 | 12,457,945 | 12,982,696 | 1,778,622 | |||
Accounts payable | 30,902 | 42,712 | 43,167 | 5,912 | |||
Amounts due to related parties | 14,414 | 96,498 | 129,629 | 17,759 | |||
Guarantee liabilities-stand ready | 8,802 | 449,759 | 606,886 | 83,143 | |||
Guarantee liabilities-contingent | 28,351 | 512,004 | 578,797 | 79,295 | |||
Deferred revenue | 54,044 | 18,348 | 9,479 | 1,299 | |||
Payable to investors at fair value | 445,762 | 350,000 | 368,022 | 50,419 | |||
Accrued expenses and other liabilities | 1,463,369 | 1,672,111 | 1,622,050 | 222,220 | |||
Deferred tax liabilities | 122,075 | 16,434 | 41,471 | 5,682 | |||
Lease liabilities | 23,648 | 15,226 | 40,765 | 5,585 | |||
Total liabilities | 2,191,367 | 3,173,092 | 3,440,266 | 471,314 | |||
Ordinary shares | 130 | 132 | 132 | 18 | |||
Additional paid-in capital | 5,171,232 | 5,198,271 | 5,198,457 | 712,186 | |||
Treasury stock | (94,851) | (160,534) | (170,463) | (23,353) | |||
Accumulated other comprehensive income | 23,669 | 21,226 | 79,268 | 10,860 | |||
Retained earnings | 2,985,369 | 4,225,758 | 4,435,036 | 607,597 | |||
Total equity | 8,085,549 | 9,284,853 | 9,542,430 | 1,307,308 | |||
Total liabilities and equity | 10,276,916 | 12,457,945 | 12,982,696 | 1,778,622 | |||
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 Year Ended | |||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||
RMB | RMB | RMB | USD | RMB | RMB | USD | ||||||||
Operating Highlights | ||||||||||||||
Amount of loans facilitated | 11,645,528 | 13,392,676 | 15,352,533 | 2,103,288 | 36,036,301 | 53,591,593 | 7,342,018 | |||||||
Number of borrowers | 1,371,501 | 1,498,020 | 1,560,789 | 1,560,789 | 2,891,901 | 4,187,502 | 4,187,502 | |||||||
Remaining principal of performing loans | 18,251,550 | 22,768,555 | 24,755,199 | 3,391,448 | 18,251,550 | 24,755,199 | 3,391,448 | |||||||
Cumulative number of insurance clients | 1,283,102 | 1,470,738 | 1,532,119 | 1,532,119 | 1,283,102 | 1,532,119 | 1,532,119 | |||||||
Number of insurance clients | 102,556 | 82,291 | 83,786 | 83,786 | 358,278 | 296,842 | 296,842 | |||||||
Gross written premiums | 1,208,717 | 1,351,311 | 1,100,262 | 150,735 | 4,893,042 | 4,424,889 | 606,207 | |||||||
First year premium | 536,252 | 511,377 | 475,285 | 65,114 | 3,180,334 | 2,078,190 | 284,711 | |||||||
Renewal premium | 672,465 | 839,934 | 624,977 | 85,621 | 1,712,708 | 2,346,699 | 321,496 | |||||||
Segment Information | ||||||||||||||
Financial services business: | ||||||||||||||
Revenue | 781,306 | 836,193 | 1,047,768 | 143,544 | 2,515,119 | 3,473,109 | 475,814 | |||||||
Sales and marketing expenses | 186,304 | 307,459 | 290,253 | 39,765 | 498,055 | 1,102,737 | 151,074 | |||||||
Origination, servicing and other operating costs | 77,598 | 119,706 | 123,585 | 16,931 | 223,468 | 442,312 | 60,597 | |||||||
Allowance for contract assets, receivables and others | 99,496 | 93,248 | 200,755 | 27,503 | 262,607 | 519,895 | 71,225 | |||||||
Provision for contingent liabilities | (1,543) | 272,406 | 250,691 | 34,344 | 27,035 | 869,280 | 119,091 | |||||||
Insurance brokerage business: | ||||||||||||||
Revenue | 98,158 | 85,530 | 106,387 | 14,575 | 963,822 | 408,369 | 55,946 | |||||||
Sales and marketing expenses | 3,578 | 3,545 | 2,333 | 320 | 12,887 | 13,706 | 1,878 | |||||||
Origination, servicing and other operating costs | 98,019 | 78,466 | 69,518 | 9,524 | 697,669 | 407,225 | 55,790 | |||||||
Allowance for contract assets, receivables and others | (35) | (414) | 241 | 33 | (390) | (663) | (91) | |||||||
Consumption & lifestyle business and others: | ||||||||||||||
Revenue | 394,846 | 557,365 | 298,038 | 40,831 | 1,416,692 | 1,924,423 | 263,645 | |||||||
Sales and marketing expenses | 15,848 | 24,643 | 5,872 | 804 | 145,661 | 79,986 | 10,958 | |||||||
Origination, servicing and other operating costs | 9,083 | 7,741 | 4,129 | 566 | 55,035 | 33,420 | 4,578 | |||||||
Allowance for contract assets, receivables and others | 774 | 1,666 | (756) | (104) | (771) | 908 | 124 | |||||||
Reconciliation of Adjusted EBITDA | ||||||||||||||
Net income | 571,268 | 355,442 | 331,446 | 45,408 | 2,080,197 | 1,582,299 | 216,774 | |||||||
Interest income, net | (29,880) | (21,877) | (31,219) | (4,277) | (80,749) | (105,477) | (14,450) | |||||||
Income tax expense | 140,818 | 44,665 | 10,702 | 1,466 | 565,163 | 279,182 | 38,248 | |||||||
Depreciation and amortization | 1,806 | 2,401 | 2,574 | 353 | 7,116 | 8,893 | 1,218 | |||||||
Share-based compensation | 828 | 13,235 | 350 | 48 | 6,751 | 16,928 | 2,319 | |||||||
Adjusted EBITDA | 684,840 | 393,866 | 313,853 | 42,998 | 2,578,478 | 1,781,825 | 244,109 | |||||||
Adjusted EBITDA margin | 53.7 % | 26.6 % | 21.6 % | 21.6 % | 52.7 % | 30.7 % | 30.7 % | |||||||
Delinquency Rates | ||||||
1-30 days | 31-60 days | 61-90 days | ||||
December 31, 2019 | 2.1 % | 1.2 % | 0.9 % | |||
December 31, 2020 | 1.3 % | 0.7 % | 0.6 % | |||
December 31, 2021 | 2.0 % | 1.5 % | 1.2 % | |||
December 31, 2022 | 1.7 % | 1.2 % | 1.1 % | |||
December 31, 2023 | 2.0 % | 1.4 % | 1.2 % | |||
March 31, 2024 | 2.1 % | 1.6 % | 1.4 % | |||
June 30, 2024 | 1.9 % | 1.4 % | 1.5 % | |||
September 30, 2024 | 1.8 % | 1.2 % | 1.2 % | |||
December 31, 2024 | 1.6 % | 1.2 % | 1.1 % | |||
30+ Days Delinquency Rates By Vintage* | |||||||||||||
Loan | Month on Book | ||||||||||||
2 | 4 | 6 | 8 | 10 | 12 | 14 | 16 | 18 | 20 | 22 | 24 | ||
2019Q1 | 0.0 % | 0.5 % | 1.6 % | 2.3 % | 3.3 % | 4.4 % | 5.9 % | 6.1 % | 6.4 % | 6.9 % | 6.9 % | 6.9 % | |
2019Q2 | 0.3 % | 1.4 % | 2.8 % | 5.0 % | 7.8 % | 8.9 % | 9.5 % | 10.0 % | 10.3 % | 10.7 % | 10.9 % | 11.2 % | |
2019Q3 | 0.3 % | 2.0 % | 5.1 % | 7.6 % | 9.1 % | 10.4 % | 11.3 % | 12.4 % | 13.3 % | 14.1 % | 14.7 % | 15.2 % | |
2019Q4 | 0.7 % | 3.0 % | 4.4 % | 5.7 % | 6.6 % | 7.3 % | 8.1 % | 8.5 % | 9.0 % | 9.4 % | 9.7 % | 10.3 % | |
2020Q1 | 0.8 % | 2.0 % | 3.4 % | 4.5 % | 5.4 % | 5.9 % | 6.5 % | 6.8 % | 7.1 % | 7.5 % | 8.1 % | 8.5 % | |
2020Q2 | 0.6 % | 2.0 % | 3.3 % | 4.5 % | 5.3 % | 6.0 % | 6.4 % | 6.9 % | 7.4 % | 8.0 % | 8.6 % | 8.8 % | |
2020Q3 | 1.3 % | 2.8 % | 4.3 % | 5.4 % | 6.3 % | 6.9 % | 7.5 % | 8.2 % | 8.9 % | 9.3 % | 9.5 % | 9.5 % | |
2020Q4 | 0.3 % | 1.4 % | 2.4 % | 3.4 % | 4.3 % | 5.4 % | 6.4 % | 7.3 % | 7.7 % | 8.0 % | 8.2 % | 8.3 % | |
2021Q1 | 0.5 % | 1.8 % | 3.0 % | 4.2 % | 5.3 % | 6.3 % | 7.1 % | 7.3 % | 7.5 % | 7.7 % | 7.8 % | 7.9 % | |
2021Q2 | 0.5 % | 2.1 % | 3.8 % | 5.5 % | 6.8 % | 7.5 % | 7.7 % | 7.9 % | 8.1 % | 8.3 % | 8.2 % | 8.2 % | |
2021Q3 | 0.6 % | 2.5 % | 4.2 % | 5.4 % | 6.1 % | 6.5 % | 6.7 % | 6.9 % | 6.9 % | 6.9 % | 6.9 % | 6.8 % | |
2021Q4 | 0.8 % | 2.7 % | 4.1 % | 4.9 % | 5.4 % | 5.8 % | 5.8 % | 5.8 % | 5.7 % | 5.6 % | 5.6 % | 5.5 % | |
2022Q1 | 0.7 % | 2.1 % | 3.2 % | 4.0 % | 4.6 % | 4.8 % | 4.7 % | 4.6 % | 4.6 % | 4.5 % | 4.5 % | 4.4 % | |
2022Q2 | 0.5 % | 1.8 % | 2.9 % | 3.8 % | 4.3 % | 4.5 % | 4.4 % | 4.3 % | 4.3 % | 4.2 % | 4.2 % | 4.1 % | |
2022Q3 | 0.6 % | 2.2 % | 3.5 % | 4.3 % | 4.8 % | 5.0 % | 5.0 % | 4.9 % | 4.9 % | 4.8 % | 4.7 % | 4.7 % | |
2022Q4 | 0.7 % | 2.5 % | 3.9 % | 4.9 % | 5.6 % | 5.9 % | 5.8 % | 5.8 % | 5.7 % | 5.6 % | 5.5 % | 5.4 % | |
2023Q1 | 0.6 % | 2.4 % | 4.0 % | 5.2 % | 5.9 % | 6.2 % | 6.1 % | 6.0 % | 5.9 % | 5.8 % | 5.5 % | ||
2023Q2 | 0.7 % | 3.0 % | 4.9 % | 6.3 % | 7.0 % | 7.3 % | 7.2 % | 7.0 % | 6.9 % | 6.5 % | |||
2023Q3 | 0.9 % | 3.7 % | 5.8 % | 7.1 % | 7.9 % | 8.1 % | 8.0 % | 7.9 % | |||||
2023Q4 | 0.8 % | 3.6 % | 5.8 % | 7.0 % | 7.6 % | 7.8 % | 7.7 % | ||||||
2024Q1 | 0.7 % | 3.2 % | 5.0 % | 6.1 % | 6.9 % | ||||||||
2024Q2 | 0.6 % | 2.5 % | 4.2 % | 5.5 % | |||||||||
2024Q3 | 0.6 % | 2.3 % | |||||||||||
2024Q4 | 0.6 % | ||||||||||||
*The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period | |||||||||||||
SOURCE Yiren Digital
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