BEIJING, Aug. 27, 2020 /PRNewswire/ -- Yiren Digital Ltd.
(NYSE: YRD) ("Yiren Digital" or the "Company"), a leading fintech
company in China, today announced
its unaudited financial results for the second quarter ended
June 30, 2020.
Second Quarter 2020 Operational Highlights
Wealth Management—Yiren Wealth
- Cumulative number of investors served reached 2,223,250 as of
June 30, 2020, representing an
increase of 0.2% from 2,218,181 as of March
31, 2020 and compared to 2,185,513 as of June 30, 2019.
- Number of current investors was 195,211 as of June 30, 2020, representing a decrease of 11.5%
from 220,568 as of March 31,
2020.
- Number of current non-P2P investors was 31,530 as of
June 30, 2020, representing an
increase of 19.7% from 26,346 as of March
31, 2020, and compared to 17,133 as of June 30, 2019.
- Total assets under administration ("AUA") for P2P products on
Yiren Wealth was RMB 25,896.8 million
(US$3,665.4 million) as of
June 30, 2020, representing a
decrease of 15.2% from RMB 30,536.4
million as of March 31, 2020,
and compared to RMB 43,249.9 million
as of June 30, 2019.
- Total AUA for non-P2P products on Yiren Wealth was RMB 2,528.6 million (US$357.9 million) as of June 30, 2020, representing an increase of 47.6%
from 1,713.1 million as of March 31,
2020,and compared to RMB 352.7
million as of June 30,
2019.
- Sales volume of non-P2P products amounted to RMB 2,186.2 million (US$309.4 million) in the second quarter of 2020,
representing an increase of 1.1% from RMB
2,163.3 million in the first quarter of 2020 and compared to
RMB 284.8 million in the same period
of 2019.
Consumer Credit—Yiren Credit
- Total loan originations in the second quarter of 2020 reached
RMB 2.4 billion (US$0.3 billion), representing an increase of
30.6% from RMB 1.8 billion in the
first quarter of 2020 and compared to RMB
9.7 billion in the second quarter of 2019.
- Cumulative number of borrowers served reached 4,917,635 as of
June 30, 2020, representing an
increase of 2.2% from 4,810,184 as of March
31, 2020 and compared to 4,491,334 as of June 30, 2019.
- Number of borrowers served in the second quarter of 2020 was
107,568 representing a decrease of 6.8% from 115,420 in the first
quarter of 2020 and compared to 135,246 in the second quarter of
2019.
- The percentage of loan volume generated by repeat borrowers was
0.3% in the second quarter of 2020.
- 25.0% of loan originations were generated online in the second
quarter of 2020.
- Total outstanding principal balance of performing loans reached
RMB 33,454.4 million (US$4,735.2 million) as of June 30,2020, representing a decrease of 20.5%
from RMB 42,063.0 million as of
March 31,2020.
"With the pandemic still not far behind us and the changing
market environment in the second quarter, we are making
comprehensive progresses towards our business transition in our
credit-tech business and have achieved meaningful scale in our
wealth management business growth," said Mr. Ning Tang, Chairman and Chief Executive Officer
of Yiren Digital.
"For our credit-tech business, our new online product
initiatives are tracking very well. Our new revolving loan product,
Yi Xiang Hua, accounted for 13% of
our total loan volume this quarter, growing over 500% quarter over
quarter. Meanwhile, by leveraging our vast offline service network
coverage, we are ramping up auto loans nicely, achieving a 51%
growth from last quarter. Moreover, we have made great strides in
repositioning our credit business by moving from a P2P funding
model to a loan facilitation model. In the second quarter, 63% of
loans facilitated were funded by institutional intuitional partners
and we expect this proportion to reach close to 100% by the
end of this year with a diversified partner base."
"On wealth management business, we are seeing very strong growth
momentum particularly for our fund products. As of June 30, 2020, the number of current non-P2P
investors increased 20% from last quarter to 31,530, and total
AUA for non-P2P products increased by 48% quarterly to RMB 2.5
billion. Moreover, average AUA per investor for non-P2P products
also sees steady growth, with average AUA per investor for bank's
fixed-income products exceeding RMB 100,000
and for funds over RMB 50,000, which is well above industry
average"
"We are delighted to see a notable acceleration in loan
originations from prior quarter to RMB 2.4
billion, thanks to our strategic initiatives this year in
diversification of our loan products," said Mr. Zhong Bi, Chief Financial Officer of Yiren
Digital. "To provide relief to our borrowers who were significantly
affected by the pandemic as well as medical workers who fought on
the frontlines, we proactively granted a concession totaling
RMB 245 million for over 50,000 borrowers in principal, interest and
late fees, this represents a one-time hit to our revenue. On the
balance sheet side, our cash position remains strong with
approximately RMB 3.4 billion of cash
and short-term investments as of June 30,
2020. "
"Thanks to our continued efforts in risk management, the delinquency rates have shown a
progressive improving trend. 15-90 days delinquency has decreased
to 5.5% as of June 30, 2020 from 8.9%
as of March 31, 2020. 15-90 days
delinquency further decreased to 5.2% as of July 31, 2020 as a result of our strengthened
efforts in tightening controls and improving borrower's credit
quality." said Mr. Michael Ji, Chief
Risk Officer of Yiren Digital. "To mitigate the risk caused by
covid-19 and help customers went through the financial hardship, we
have launched 7 relating special collection projects in the second quarter, including continued
'pandemic customer care program', which offered payment relief for
the customers who were hit by covid-19 and healthcare givers who
were fighting the disease. These special collection projects helped
us achieve a decline in NCL by over 10% as compared with projection
at the beginning of the year, even facing the economic headwind. We
will continue to strengthen our risk management and expect
delinquency rates to further improve in the second half of the
year.
Second Quarter 2020 Financial Results
Total amount of loans facilitated in the second
quarter of 2020 was RMB 2,402.5
million (US$340.1 million),
compared to RMB 9,673.8 million in
the same period last year. As of June 30,
2020, the total outstanding principal amount of the
performing loans was RMB 33.5 billion
(US$4.7 billion), decreased by 20%
from RMB 42.1 billion as of
March 31, 2020.
Total net revenue in the second quarter of 2020 was
RMB 754.7 million (US$106.8 million), compared to RMB 2,216.6 million in the same period last year.
Revenue from Yiren Credit reached
RMB 432.3 million (US$61.2 million), representing a decrease of 73%
from RMB 1,624.3 million in the
second quarter of 2019. Revenue from Yiren Wealth reached
RMB 322.4 million (US$45.6 million), representing a decrease of 46%
from RMB 592.4 million in the second
quarter of 2019.
Sales and marketing expenses in the second quarter
of 2020 were RMB 508.5 million
(US$72.0 million), compared to
RMB 1,208.6 million in the same
period last year. Sales and marketing expenses in the second
quarter of 2020 accounted for 21.2% of the total amount of loans
facilitated, as compared to 12.5% in the same period last year
mainly due to the decline of loan volume.
Origination and servicing costs in the second
quarter of 2020 were RMB 165.2
million (US$23.4 million),
compared to RMB 162.9 million in the
same period last year. Origination and servicing costs in the
second quarter of 2020 accounted for 6.9% of the total amount of
loans facilitated, compared to 1.7% in the same period last year
due to the decline of loan volume.
General and administrative expenses in the second quarter
of 2020 were RMB 172.6 million
(US$24.4 million), compared to
RMB 175.5 million in the same period
last year. General and administrative expenses in the second
quarter of 2020 accounted for 22.9% of the total net revenue,
compared to 7.9% in the same period last year.
Allowance for contract assets and receivables in the
second quarter of 2020 were RMB 168.7
million (US$23.9 million),
compared to RMB 500.9 million in the
same period last year.
Income tax benefit in the second quarter of 2020 was
RMB 47.6 million (US$6.7 million).
Net loss in the second quarter of 2020 was
RMB 232.2 million (US$32.9 million), compared to net income of
RMB 154.5 million in the same period
last year.
Adjusted EBITDA (non-GAAP) in the second quarter of
2020 was net loss of RMB 269.4
million (US$38.1 million),
compared to net income of RMB 239.9
million in the same period last year.
Basic income per ADS in the second quarter of 2020
was net loss of RMB 2.5 (US$0.4), compared to a basic income per ADS of
RMB 1.7 in the same period last
year.
Diluted income per ADS in the second quarter of 2020
was net loss of RMB 2.5 (US$0.4), compared to a diluted income per ADS of
RMB 1.7 in the same period last
year.
Net cash used in operating activities in the second
quarter of 2020 was RMB 86.8 million
(US$12.3 million), compared to net
cash generated from operating activities of RMB 36.4 million in the same period last
year.
Net cash used in investing activities in the second
quarter of 2020 was RMB 164.6 million
(US$23.3 million), compared to net
cash provided by investing activities of RMB
240.9 million in the same period last year.
As of June 30, 2020, cash and cash
equivalents was RMB 2,935.5 million
(US$415.5 million), compared to
RMB 3,195.0 million as of
March 31, 2020. As of June 30, 2020, the balance of held-to-maturity
investments was RMB 4.1 million
(US$0.6 million), compared to
RMB 4.4 million as of March 31, 2020. As of June
30, 2020, the balance of available-for-sale investments was
RMB 513.0 million (US$72.6 million), compared to RMB 456.1 million as of March 31, 2020.
Delinquency rates. As of June 30,
2020, the delinquency rates for loans that are past due for
15-29 days, 30-59 days and 60-89 days were 1.4%, 2.0%, and 2.1%,
respectively compared to1.6%, 4.1%, and 3.2%, as of March 31, 2020.
Cumulative M3+ net charge-off rates. As of
June 30, 2020, the cumulative M3+ net
charge-off rate for loans originated in 2017 was 16.7%, compared to
16.5% as of March 31, 2020. As of
June 30, 2020, the cumulative M3+ net
charge-off rate for loans originated in 2018 was 17.6%, compared to
15.8% as of March 31, 2020. As of
June 30, 2020, the cumulative M3+ net
charge-off rate for loans originated in 2019 was 9.4%, compared to
5.2% as of March 31, 2020.
Recent Development
Management Change
Mr. Zhong Bi has resigned from
his position as the Company's Chief Financial Officer ("CFO") to
pursue other opportunities, effective on September 10, 2020. The board of directors of the
Company has appointed Ms. Na Mei as
the Company's new CFO, effective on September 10, 2020. Over the past two months, Ms.
Mei has been working with Mr. Bi on daily CFO duties to ensure a
smooth transition.
Ms. Mei joined CreditEase Consumer Credit Division, now part of
Yiren Digital, in 2015. She has served as the financial controller
for this business unit and the head of business finance department.
Prior to joining CreditEase, Ms. Mei had worked 12 years at
PricewaterhouseCoopers. She brought in seasoned experience in
finance management, taxation, internal control and consulting,
along with years of first-hand exposure dealing with publicly
listed companies in China and
abroad. Ms. Mei obtained her bachelor's degree from Capital
Economic University and is a certified public accountant.
2020 Share Incentive Plan
Yiren Digital adopted a 2020 share incentive plan (the "2020
Plan") in the second quarter of 2020. The 2020 Plan has a ten-year
term, and has a maximum number of 18,560,000 ordinary shares
available for issuance pursuant to all awards under the 2020 Plan.
Yiren Digital may grant restricted share units and other form of
awards pursuant to the 2020 Plan. In connection with the adoption
of the 2020 Plan and to prevent dilution to existing shareholders,
CreditEase Holdings (Cayman) Limited, the parent company of Yiren
Digital, will surrender for cancellation and for nil consideration
18,560,000 ordinary shares of US$0.0001 par value each standing in its name in
the register of members of Yiren Digital.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
several non-GAAP financial measures, such as adjusted EBITDA and
adjusted EBITDA margin as supplemental measures to review and
assess operating performance. We believe these non-GAAP measures
provide useful information about our core operating results,
enhance the overall understanding of our past performance and
prospects and allow for greater visibility with respect to key
metrics used by our management in our financial and operational
decision-making. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with accounting principles generally accepted in
the United States of America
("U.S. GAAP"). The non-GAAP financial measures have limitations as
analytical tools. Other companies, including peer companies in the
industry, may calculate these non-GAAP measures differently, which
may reduce their usefulness as a comparative measure. The Company
compensates for these limitations by reconciling the non-GAAP
financial measures to the nearest U.S. GAAP performance measure,
all of which should be considered when evaluating our performance.
See "Operating Highlights and Reconciliation of GAAP to Non-GAAP
measures" at the end of this press release.
Currency Conversion
This announcement contains currency conversions of certain RMB
amounts into US$ 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 RMB 7.0651
to US$1.00, the effective noon buying
rate on June 30, 2020, as set forth
in the H.10 statistical release of the Federal Reserve Board.
Conference Call
Yiren Digital's management will host an earnings conference call
at 8:00 p.m. U.S. Eastern Time on August 27, 2020
(or 8:00 a.m. Beijing/Hong Kong Time on August 28, 2020).
Participants who wish to join the call should register online in
advance of the conference at:
http://apac.directeventreg.com/registration/event/9992747
Please note the Conference ID number of 9992747.
Once registration is completed, participants will receive the
dial-in information for the conference call, an event passcode, and
a unique registrant ID number.
Participants joining the conference call should dial-in at least
10 minutes before the scheduled start time.
A replay of the conference call may be accessed by phone at the
following numbers until September 3, 2020:
International
|
+61
2-8199-0299
|
U.S.
|
+1
646-254-3697
|
Replay Access
Code:
|
9992747
|
Additionally, a live and archived webcast of the conference call
will be available at ir.yirendai.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "target,"
"confident" and similar statements. Such statements are based upon
management's current expectations and current market and operating
conditions and relate to events that involve known or unknown
risks, uncertainties and other factors, all of which are difficult
to predict and many of which are beyond Yiren Digital's control.
Forward-looking statements involve risks, uncertainties, and other
factors that could cause actual results to differ materially from
those contained in any such statements. Potential risks and
uncertainties include, but are not limited to, uncertainties as to
Yiren Digital's ability to attract and retain borrowers and
investors on its marketplace, its ability to introduce new loan
products and platform enhancements, its ability to compete
effectively, PRC regulations and policies relating to the
peer-to-peer lending service industry in China, general economic conditions in
China, and Yiren Digital's ability
to meet the standards necessary to maintain listing of its ADSs on
the NYSE or other stock exchange, including its ability to cure any
non-compliance with the NYSE's continued listing criteria. Further
information regarding these and other risks, uncertainties or
factors is included in Yiren Digital's filings with the U.S.
Securities and Exchange Commission. All information provided in
this press release is as of the date of this press release, and
Yiren Digital does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under applicable law.
About Yiren Digital
Yiren Digital Ltd. (NYSE: YRD) is a leading fintech company in
China, providing both credit and
wealth management services. For its credit business, the Company
provides an effective solution to address largely underserved
investor and individual borrower demand in China through online and offline channels to
efficiently match borrowers with investors and execute loan
transactions. Yiren Digital deploys a proprietary risk management
system, which enables the Company to effectively assess the
creditworthiness of borrowers, appropriately price the risks
associated with borrowers, and offer quality loan investment
opportunities to investors. Yiren Digital's marketplace provides
borrowers with quick and convenient access to consumer credit at
competitive prices and investors with easy and quick access to an
alternative asset class with attractive returns. For its wealth
management business, the Company targets China's mass affluent population and strives
to provide customized wealth management services, with a
combination of long-term and short-term targets as well as
different types of investments, ranging from cash and fixed-income
assets, to funds and insurance. For more information, please visit
ir.Yirendai.com.
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,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
services
|
1,237,718
|
|
358,541
|
|
171,084
|
|
24,215
|
|
|
2,292,764
|
|
529,625
|
|
74,964
|
Post-origination
services
|
241,321
|
|
146,520
|
|
126,477
|
|
17,902
|
|
|
537,600
|
|
272,997
|
|
38,640
|
Account management
services
|
549,024
|
|
413,166
|
|
300,720
|
|
42,564
|
|
|
1,037,364
|
|
713,886
|
|
101,044
|
Others
|
188,577
|
|
105,433
|
|
156,408
|
|
22,138
|
|
|
329,320
|
|
261,841
|
|
37,061
|
Total net
revenue
|
2,216,640
|
|
1,023,660
|
|
754,689
|
|
106,819
|
|
|
4,197,048
|
|
1,778,349
|
|
251,709
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
1,208,647
|
|
616,441
|
|
508,466
|
|
71,969
|
|
|
2,336,592
|
|
1,124,907
|
|
159,220
|
Origination and
servicing
|
162,945
|
|
102,918
|
|
165,183
|
|
23,380
|
|
|
335,068
|
|
268,101
|
|
37,947
|
General and
administrative
|
175,534
|
|
149,041
|
|
172,568
|
|
24,425
|
|
|
433,241
|
|
321,609
|
|
45,521
|
Allowance for
contract assets and
receivables
|
500,861
|
|
143,385
|
|
168,708
|
|
23,879
|
|
|
691,965
|
|
312,093
|
|
44,174
|
Total operating costs
and expenses
|
2,047,987
|
|
1,011,785
|
|
1,014,925
|
|
143,653
|
|
|
3,796,866
|
|
2,026,710
|
|
286,862
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income,
net
|
25,213
|
|
25,116
|
|
16,950
|
|
2,399
|
|
|
49,088
|
|
42,066
|
|
5,954
|
Fair value
adjustments related to
Consolidated ABFE
|
5,787
|
|
(26,020)
|
|
(32,957)
|
|
(4,665)
|
|
|
40,785
|
|
(58,977)
|
|
(8,348)
|
Others,
net
|
17,480
|
|
12,184
|
|
(3,510)
|
|
(496)
|
|
|
177,703
|
|
8,674
|
|
1,228
|
Total other
income/(expenses)
|
48,480
|
|
11,280
|
|
(19,517)
|
|
(2,762)
|
|
|
267,576
|
|
(8,237)
|
|
(1,166)
|
Income/(loss) before
provision for
income taxes
|
217,133
|
|
23,155
|
|
(279,753)
|
|
(39,596)
|
|
|
667,758
|
|
(256,598)
|
|
(36,319)
|
Share of results of
equity investees
|
(816)
|
|
-
|
|
-
|
|
-
|
|
|
(5,773)
|
|
-
|
|
-
|
Income tax
expense/(benefit)
|
61,856
|
|
3,936
|
|
(47,558)
|
|
(6,731)
|
|
|
138,390
|
|
(43,622)
|
|
(6,174)
|
Net
income/(loss)
|
154,461
|
|
19,219
|
|
(232,195)
|
|
(32,865)
|
|
|
523,595
|
|
(212,976)
|
|
(30,145)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary
shares outstanding, basic
|
184,608,337
|
|
185,600,961
|
|
185,613,735
|
|
185,613,735
|
|
|
184,865,964
|
|
185,607,348
|
|
185,607,348
|
Basic income/(loss)
per share
|
0.8367
|
|
0.1036
|
|
(1.2510)
|
|
(0.1771)
|
|
|
2.8323
|
|
(1.1475)
|
|
(0.1624)
|
Basic income/(loss)
per ADS
|
1.6734
|
|
0.2072
|
|
(2.5020)
|
|
(0.3542)
|
|
|
5.6646
|
|
(2.2950)
|
|
(0.3248)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary
shares outstanding, diluted
|
186,667,233
|
|
186,166,429
|
|
185,613,735
|
|
185,613,735
|
|
|
186,621,626
|
|
185,607,348
|
|
185,607,348
|
Diluted income/(loss)
per share
|
0.8275
|
|
0.1032
|
|
(1.2510)
|
|
(0.1771)
|
|
|
2.8057
|
|
(1.1475)
|
|
(0.1624)
|
Diluted income/(loss)
per ADS
|
1.6550
|
|
0.2064
|
|
(2.5020)
|
|
(0.3542)
|
|
|
5.6114
|
|
(2.2950)
|
|
(0.3248)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated
Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated
from/(used in)
operating activities
|
36,352
|
|
557,762
|
|
(86,768)
|
|
(12,281)
|
|
|
(622,083)
|
|
470,994
|
|
66,664
|
Net cash provided
by/(used in)
investing activities
|
240,896
|
|
(524,479)
|
|
(164,623)
|
|
(23,302)
|
|
|
(9,035)
|
|
(689,102)
|
|
(97,537)
|
Net cash (used
in)/provided by
financing activities
|
(73,385)
|
|
(65,637)
|
|
39,905
|
|
5,648
|
|
|
420,004
|
|
(25,732)
|
|
(3,642)
|
Effect of foreign
exchange rate changes
|
1,532
|
|
1,206
|
|
(86)
|
|
(12)
|
|
|
(664)
|
|
1,120
|
|
159
|
Net
increase/(decrease) in cash, cash
equivalents and restricted cash
|
205,395
|
|
(31,148)
|
|
(211,572)
|
|
(29,947)
|
|
|
(211,778)
|
|
(242,720)
|
|
(34,356)
|
Cash, cash
equivalents and restricted
cash, beginning of period
|
2,617,311
|
|
3,269,142
|
|
3,237,994
|
|
458,308
|
|
|
3,034,484
|
|
3,269,142
|
|
462,717
|
Cash, cash
equivalents and restricted
cash, end of period
|
2,822,706
|
|
3,237,994
|
|
3,026,422
|
|
428,361
|
|
|
2,822,706
|
|
3,026,422
|
|
428,361
|
Unaudited
Condensed Consolidated Balance Sheets
|
(in
thousands)
|
|
|
As
of
|
|
December 31,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
3,198,086
|
|
3,194,993
|
|
2,935,543
|
|
415,498
|
Restricted
cash
|
71,056
|
|
43,001
|
|
90,879
|
|
12,863
|
Accounts
receivable
|
3,398
|
|
33,902
|
|
27,309
|
|
3,865
|
Contract
assets, net
|
2,398,685
|
|
1,873,548
|
|
1,356,886
|
|
192,055
|
Contract
cost
|
160,003
|
|
149,917
|
|
145,809
|
|
20,638
|
Prepaid
expenses and other assets
|
1,333,221
|
|
868,462
|
|
1,134,257
|
|
160,545
|
Loans at
fair value
|
418,492
|
|
313,267
|
|
246,475
|
|
34,886
|
Financing
receivables
|
29,612
|
|
33,381
|
|
54,876
|
|
7,767
|
Amounts
due from related parties
|
988,853
|
|
1,583,859
|
|
1,560,376
|
|
220,857
|
Held-to-maturity investments
|
6,627
|
|
4,399
|
|
4,126
|
|
584
|
Available-for-sale investments
|
460,991
|
|
456,061
|
|
513,013
|
|
72,612
|
Property,
equipment and software, net
|
195,855
|
|
188,880
|
|
184,957
|
|
26,179
|
Deferred
tax assets
|
45,407
|
|
42,084
|
|
49,051
|
|
6,943
|
Right-of-use assets
|
334,134
|
|
291,028
|
|
224,067
|
|
31,715
|
Total
assets
|
9,644,420
|
|
9,076,782
|
|
8,527,624
|
|
1,207,007
|
Accounts
payable
|
43,583
|
|
39,068
|
|
40,324
|
|
5,708
|
Amounts
due to related parties
|
106,645
|
|
112,034
|
|
184,325
|
|
26,090
|
Liabilities from quality assurance program and guarantee
|
4,397
|
|
3,487
|
|
2,660
|
|
377
|
Deferred
revenue
|
358,203
|
|
254,933
|
|
190,712
|
|
26,994
|
Accrued
expenses and other liabilities
|
2,338,745
|
|
1,946,205
|
|
1,981,040
|
|
280,397
|
Refund
liability
|
1,801,535
|
|
1,760,942
|
|
1,501,318
|
|
212,497
|
Deferred
tax liabilities
|
218,888
|
|
216,304
|
|
162,016
|
|
22,932
|
Lease
liabilities
|
282,334
|
|
259,197
|
|
205,056
|
|
29,024
|
Total
liabilities
|
5,154,330
|
|
4,592,170
|
|
4,267,451
|
|
604,019
|
Ordinary
shares
|
121
|
|
121
|
|
121
|
|
17
|
Additional
paid-in capital
|
5,038,691
|
|
5,045,268
|
|
5,050,226
|
|
714,813
|
Treasury
stock
|
(37,097)
|
|
(37,097)
|
|
(37,097)
|
|
(5,251)
|
Accumulated other comprehensive income
|
21,855
|
|
18,671
|
|
23,474
|
|
3,323
|
Accumulated deficit
|
(533,480)
|
|
(542,351)
|
|
(776,551)
|
|
(109,914)
|
Total
equity
|
4,490,090
|
|
4,484,612
|
|
4,260,173
|
|
602,988
|
Total liabilities and
equity
|
9,644,420
|
|
9,076,782
|
|
8,527,624
|
|
1,207,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Highlights and Reconciliation of GAAP to Non-GAAP
Measures
|
(in thousands,
except for number of borrowers, number of investors and
percentages)
|
|
|
For the Three
Months Ended
|
|
|
For the Six Months
Ended
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Operating
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of p2p
investment
|
11,939,582
|
|
5,203,747
|
|
4,017,751
|
|
568,676
|
|
|
23,375,170
|
|
9,221,497
|
|
1,305,218
|
Number of p2p
investors
|
157,973
|
|
78,256
|
|
63,066
|
|
63,066
|
|
|
320,054
|
|
108,252
|
|
108,252
|
Amount of non-p2p
investment
|
284,782
|
|
2,163,313
|
|
2,186,210
|
|
309,438
|
|
|
613,490
|
|
4,349,523
|
|
615,635
|
Number of non-p2p
investors
|
10,235
|
|
18,809
|
|
30,392
|
|
30,392
|
|
|
19,370
|
|
39,443
|
|
39,443
|
Amount of loans
facilitated
|
9,673,818
|
|
1,839,454
|
|
2,402,494
|
|
340,051
|
|
|
20,608,740
|
|
4,241,948
|
|
600,409
|
Number of
borrowers
|
135,246
|
|
115,420
|
|
107,568
|
|
107,568
|
|
|
280,634
|
|
220,731
|
|
220,731
|
Remaining principal
of performing
loans
|
58,071,303
|
|
42,063,039
|
|
33,454,423
|
|
4,735,166
|
|
|
58,071,303
|
|
33,454,423
|
|
4,735,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
management:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
592,378
|
|
415,876
|
|
322,381
|
|
45,630
|
|
|
1,113,812
|
|
738,257
|
|
104,493
|
Sales and marketing
expenses
|
213,168
|
|
67,326
|
|
45,454
|
|
6,434
|
|
|
357,072
|
|
112,780
|
|
15,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
1,624,262
|
|
607,784
|
|
432,308
|
|
61,189
|
|
|
3,083,236
|
|
1,040,092
|
|
147,216
|
Sales and marketing
expenses
|
995,479
|
|
549,115
|
|
463,012
|
|
65,535
|
|
|
1,979,520
|
|
1,012,127
|
|
143,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
154,461
|
|
19,219
|
|
(232,195)
|
|
(32,865)
|
|
|
523,595
|
|
(212,976)
|
|
(30,145)
|
Interest income,
net
|
(25,213)
|
|
(25,116)
|
|
(16,950)
|
|
(2,399)
|
|
|
(49,088)
|
|
(42,066)
|
|
(5,954)
|
Income tax
expense/(benefit)
|
61,856
|
|
3,936
|
|
(47,558)
|
|
(6,731)
|
|
|
138,390
|
|
(43,622)
|
|
(6,174)
|
Depreciation and
amortization
|
31,112
|
|
27,171
|
|
24,368
|
|
3,449
|
|
|
63,614
|
|
51,539
|
|
7,295
|
Share-based
compensation
|
17,732
|
|
4,541
|
|
2,954
|
|
418
|
|
|
32,431
|
|
7,495
|
|
1,061
|
Adjusted
EBITDA
|
239,948
|
|
29,751
|
|
(269,381)
|
|
(38,128)
|
|
|
708,942
|
|
(239,630)
|
|
(33,917)
|
Adjusted EBITDA
margin
|
10.8%
|
|
2.9%
|
|
-35.7%
|
|
-35.7%
|
|
|
16.9%
|
|
-13.5%
|
|
-13.5%
|
Delinquency
Rates
|
|
|
Delinquent
for
|
|
|
15-29
days
|
|
30-59
days
|
|
60-89
days
|
All
Loans
|
|
|
|
|
|
|
December 31,
2015
|
0.7%
|
|
1.2%
|
|
0.9%
|
December 31,
2016
|
0.6%
|
|
0.9%
|
|
0.8%
|
December 31,
2017
|
0.8%
|
|
1.0%
|
|
0.8%
|
December 31,
2018
|
1.0%
|
|
1.8%
|
|
1.7%
|
December 31,
2019
|
1.2%
|
|
2.0%
|
|
1.7%
|
March 31,
2020
|
1.6%
|
|
4.1%
|
|
3.2%
|
June 30,
2020
|
1.4%
|
|
2.0%
|
|
2.1%
|
|
|
|
|
|
|
|
Online
Channels
|
|
|
|
|
|
December 31,
2015
|
0.5%
|
|
0.8%
|
|
0.6%
|
December 31,
2016
|
0.5%
|
|
0.9%
|
|
0.8%
|
December 31,
2017
|
1.1%
|
|
1.1%
|
|
0.9%
|
December 31,
2018
|
1.2%
|
|
2.3%
|
|
2.2%
|
December 31,
2019
|
1.6%
|
|
2.9%
|
|
2.5%
|
March 31,
2020
|
1.9%
|
|
5.2%
|
|
3.8%
|
June 30,
2020
|
1.4%
|
|
2.4%
|
|
2.7%
|
|
|
|
|
|
|
|
Offline
Channels
|
|
|
|
|
|
December 31,
2015
|
0.7%
|
|
1.2%
|
|
1.0%
|
December 31,
2016
|
0.6%
|
|
0.9%
|
|
0.8%
|
December 31,
2017
|
0.6%
|
|
0.9%
|
|
0.7%
|
December 31,
2018
|
0.9%
|
|
1.6%
|
|
1.5%
|
December 31,
2019
|
1.0%
|
|
1.7%
|
|
1.5%
|
March 31,
2020
|
1.6%
|
|
3.7%
|
|
3.1%
|
June 30,
2020
|
1.4%
|
|
1.8%
|
|
2.0%
|
Net Charge-Off
Rate
|
Loan
Issued
Period
|
|
Amount of
Loans
Facilitated
During the Period
|
|
Accumulated M3+
Net Charge-
Off
as of June 30, 2020
|
|
Total Net
Charge-Off
Rate
as of June 30, 2020
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2015
|
|
53,143,029
|
|
4,441,696
|
|
8.4%
|
2016
|
|
53,805,112
|
|
5,057,850
|
|
9.4%
|
2017
|
|
69,883,293
|
|
11,693,408
|
|
16.7%
|
2018
|
|
63,176,149
|
|
11,131,294
|
|
17.6%
|
2019
|
|
39,103,048
|
|
3,688,712
|
|
9.4%
|
2020Q1
|
|
1,320,428
|
|
6,388
|
|
0.5%
|
M3+ Net Charge-Off
Rate
|
Loan
Issued
Period
|
|
Month on
Book
|
|
|
4
|
7
|
10
|
13
|
16
|
19
|
22
|
25
|
28
|
31
|
34
|
2015Q1
|
|
0.8%
|
2.0%
|
3.4%
|
4.7%
|
5.7%
|
6.5%
|
7.1%
|
7.5%
|
7.7%
|
7.8%
|
7.8%
|
2015Q2
|
|
0.8%
|
2.3%
|
3.8%
|
5.2%
|
6.4%
|
7.3%
|
7.9%
|
8.3%
|
8.5%
|
8.7%
|
8.8%
|
2015Q3
|
|
0.4%
|
1.6%
|
3.1%
|
4.4%
|
5.6%
|
6.5%
|
7.1%
|
7.6%
|
7.9%
|
8.1%
|
8.4%
|
2015Q4
|
|
0.4%
|
1.6%
|
3.1%
|
4.4%
|
5.5%
|
6.3%
|
6.9%
|
7.4%
|
7.9%
|
8.3%
|
8.5%
|
2016Q1
|
|
0.3%
|
1.2%
|
2.5%
|
3.6%
|
4.5%
|
5.2%
|
5.8%
|
6.4%
|
7.0%
|
7.4%
|
7.6%
|
2016Q2
|
|
0.4%
|
1.6%
|
3.1%
|
4.3%
|
5.2%
|
6.0%
|
6.8%
|
7.6%
|
8.1%
|
8.4%
|
8.7%
|
2016Q3
|
|
0.3%
|
1.6%
|
3.1%
|
4.3%
|
5.4%
|
6.6%
|
7.8%
|
8.6%
|
9.2%
|
9.5%
|
9.8%
|
2016Q4
|
|
0.2%
|
1.5%
|
2.9%
|
4.4%
|
5.9%
|
7.4%
|
8.4%
|
9.3%
|
10.0%
|
10.4%
|
10.7%
|
2017Q1
|
|
0.3%
|
1.5%
|
3.2%
|
5.1%
|
7.1%
|
8.6%
|
9.8%
|
10.8%
|
11.5%
|
12.0%
|
12.2%
|
2017Q2
|
|
1.1%
|
2.9%
|
5.6%
|
8.4%
|
10.4%
|
12.1%
|
13.5%
|
14.5%
|
15.3%
|
15.8%
|
16.0%
|
2017Q3
|
|
0.3%
|
2.9%
|
6.4%
|
9.1%
|
11.6%
|
13.6%
|
15.0%
|
16.2%
|
16.9%
|
17.5%
|
|
2017Q4
|
|
0.5%
|
3.9%
|
7.3%
|
10.5%
|
13.2%
|
15.3%
|
16.9%
|
18.0%
|
18.8%
|
|
|
2018Q1
|
|
0.4%
|
3.0%
|
6.6%
|
10.1%
|
12.9%
|
15.2%
|
16.9%
|
18.2%
|
|
|
|
2018Q2
|
|
0.5%
|
3.6%
|
7.4%
|
10.8%
|
13.6%
|
15.8%
|
17.7%
|
|
|
|
|
2018Q3
|
|
0.4%
|
3.0%
|
6.2%
|
9.1%
|
11.7%
|
13.9%
|
|
|
|
|
|
2018Q4
|
|
0.3%
|
2.5%
|
5.6%
|
8.6%
|
11.7%
|
|
|
|
|
|
|
2019Q1
|
|
0.2%
|
2.5%
|
5.6%
|
9.0%
|
|
|
|
|
|
|
|
2019Q2
|
|
0.3%
|
2.9%
|
6.9%
|
|
|
|
|
|
|
|
|
2019Q3
|
|
0.3%
|
3.4%
|
|
|
|
|
|
|
|
|
|
2019Q4
|
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2020-financial-results-301119856.html
SOURCE Yiren Digital