BEIJING, March 21, 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 December 31, 2023.
Fourth Quarter 2023 and Fiscal Year 2023 Operational
Highlights
Financial Services Business
- Total loans facilitated in the fourth quarter of 2023 reached
RMB11.6 billion (US$1.6 billion), representing an increase of
18.7% from RMB9.8 billion in the
third quarter of 2023 and compared to RMB6.8
billion in the same period of 2022. For the fiscal year of
2023, total loans facilitated reached RMB36.0 billion, compared to RMB22.6 billion in 2022.
- Cumulative number of borrowers served reached 9,295,666 as of
December 31, 2023, representing an
increase of 8.1% from 8,595,780 as of September 30, 2023 and compared to 7,277,627 as
of December 31, 2022.
- Number of borrowers served in the fourth quarter of 2023 was
1,371,501, representing an increase of 13.9% from 1,204,012 in the
third quarter of 2023 and compared to 862,226 in the same period of
2022. The increase was driven by the strong demand for our small
revolving loan products and the improvement of customer acquisition
efficiency. For the fiscal year of 2023, total number of borrowers
served was 2,891,901, compared to 1,606,893 in 2022.
- Outstanding balance of performing loans facilitated reached
RMB18.3 billion (US$2.6 billion) as of December 31, 2023, representing an increase of
20.9% from RMB15.1 billion as of
September 30, 2023 and compared to
RMB11.3 billion as of December 31, 2022.
Insurance Brokerage Business
- Cumulative number of insurance clients served reached 1,283,102
as of December 31, 2023, representing
an increase of 2.1% from 1,256,762 as of September 30, 2023 and compared to 924,824 as of
December 31, 2022.
- Number of insurance clients served in the fourth quarter of
2023 was 102,556, representing a decrease of 17.1% from 123,693 in
the third quarter of 2023 and compared to 85,314 in the same period
of 2022. The decrease was primarily due to the decline in life
insurance volume following product changes under the new
regulations. For the fiscal year of 2023, total number of insurance
clients served was 358,278, compared to 431,701 in 2022.
- Gross written premiums in the fourth quarter of 2023 were
RMB1,208.7 million (US$170.2 million), representing a decrease of
15.4% from RMB1,428.5 million in the
third quarter of 2023 and compared to RMB1,335.5 million in the same period of 2022.
The decrease was mainly attributed to the declined life insurance
volume following product changes under the new regulations. For the
fiscal year of 2023, total gross written premiums were RMB4,893.0 million, compared to RMB3,936.6 million in 2022.
Consumption and Lifestyle Business
- Total gross merchandise volume generated through our e-commerce
platform and "Yiren Select" channel reached RMB692.7 million (US$97.6
million) in the fourth quarter of 2023, representing an
increase of 23.0% from RMB563.2
million in the third quarter of 2023 and compared to
RMB292.1 million in the same period
of 2022. The increase was mainly due to the continuous growth of
paying customers on our e-commerce platform. For the fiscal year of
2023, total gross merchandise volume was RMB1,960.3 million, compared to RMB687.8 million in 2022.
"In a year of global economic uncertainties, we wrapped up 2023
stronger than ever, showcasing the strength and resilience of our
business. The year also marked a pivotal moment for us as we firmly
established ourselves as a pioneering AI-driven financial and
lifestyle services platform," said Mr. Ning
Tang, Chairman and Chief Executive Officer. "Through our 'AI
Lab' initiative, we have been training and fine-tuning our Large
Language Models (LLM) and developing our own LLM Operations
platform. This endeavor will, firstly, deepen AI integration across
our operational spectrum, boosting efficiency and enhancing
customer experience. Secondly, we aim to expand our AI expertise
beyond the fintech verticals to more selected sectors, empowering
both B2B and B2C clients and partners with advanced technological
capabilities. Moreover, we have recently encountered high-quality
AI companies and plan to expand our AI ecosystem through strategic
partnerships and investments. The horizon is brimming with exciting
prospects."
"We are glad to report a solid full year of 2023, with both our
top line and bottom line realizing double-digit annual growth,
beating our previous guidance." Ms. Na
Mei, Chief Financial Officer commented. "Our balance sheet
remains strong with total cash and cash equivalents of RMB5.8 billion by the end of the year, providing
a sufficient buffer for us to respond to any business opportunities
in institutional operations, international expansion, and strategic
AI deployment."
Fourth Quarter 2023 Financial Results
Total net revenue in the fourth quarter of 2023 was
RMB1,274.3 million (US$179.5 million), representing an increase of
17.1% from RMB1,088.1 million in the
fourth quarter of 2022. Particularly, in the fourth quarter of
2023, revenue from financial services business was RMB781.3 million (US$110.0
million), representing an increase of 22.2% from
RMB639.2 million in the same period
of 2022. The increase was attributed to the persistent and growing
demand for our small revolving loan products. Revenue from
insurance brokerage business was RMB98.2
million (US$13.8 million),
representing a decrease of 50.7% from RMB199.0 million in the fourth quarter of 2022.
The decrease was due to declined sales of life insurance attributed
to product changes under the new regulations. Revenue from
consumption and lifestyle business and others was RMB394.8 million (US$55.6
million), representing an increase of 58.0% from
RMB249.9 million in the fourth
quarter of 2022. The increase was primarily attributed to the
continuous growth in gross merchandise volume generated through our
e-commerce platform, driven by an expanding base of paying
customers on the platform.
Sales and marketing expenses in the fourth quarter of
2023 were RMB205.7 million
(US$29.0 million), compared to
RMB103.4 million in the same period
of 2022. The increase was primarily due to the growth of financial
services business volume.
Origination, servicing and other operating costs in the
fourth quarter of 2023 were RMB184.7
million (US$26.0 million),
compared to RMB211.6 million in the
same period of 2022. The decrease was due to the decline in sales
of life insurance products attributed to product changes under the
new regulations.
Research and development expenses[1] in
the fourth quarter of 2023 were RMB47.6
million (US$6.7 million),
compared to RMB32.9 million in the
same period of 2022. The increase was mainly attributed to our
ongoing investment in AI upgrades and technological
innovations.
General and administrative expenses in the fourth quarter
of 2023 were RMB50.5 million
(US$7.1 million), which remained
stable compared to RMB52.3 million in
the same period of 2022.
Allowance for contract assets, receivables and others in
the fourth quarter of 2023 was RMB98.7
million (US$13.9 million),
compared to RMB55.7 million in the
same period of 2022. The increase was primarily attributed to the
growing volume of loans facilitated on our platform.
Income tax expense in the fourth quarter of 2023 was
RMB140.8 million (US$19.8 million).
Net income in the fourth quarter of 2023 was RMB571.3 million (US$80.5
million), as compared to RMB485.2
million in the same period in 2022. The increase was
primarily due to the recovery of business volume and optimization
of our business structure.
Adjusted
EBITDA[2] (non-GAAP) in the
fourth quarter of 2023 was RMB684.8
million (US$96.5 million),
compared to RMB645.1 million in the
same period of 2022.
Basic and diluted income per ADS in the fourth quarter of
2023 were RMB6.5 (US$0.9) and
RMB6.5 (US$0.9) respectively, compared to a basic per
ADS of RMB5.4 and a diluted per ADS
of RMB5.4 in the same period of
2022.
Net cash generated from operating activities in the
fourth quarter of 2023 was RMB417.2
million (US$58.8 million),
compared to RMB471.9 million in the
same period of 2022.
Net cash used in investing activities in the fourth
quarter of 2023 was RMB260.3 million
(US$36.7 million), compared to
RMB283.1 million provided by
investing activities in the same period of 2022.
Net cash provided by financing activities in the fourth
quarter of 2023 was RMB332.3 million
(US$46.8 million), compared to
RMB54.6 million used in financing
activities in the same period of 2022.
As of December 31, 2023, cash and
cash equivalents were RMB5,791.3
million (US$815.7 million),
compared to RMB5,438.0 million as of
September 30, 2023. As of
December 31, 2023, the balance of
held-to-maturity investments was RMB10.4
million (US$1.5 million),
compared to RMB4.8 million as of
September 30, 2023. As of
December 31, 2023, the balance of
available-for-sale investments was RMB438.1
million (US$61.7 million),
compared to RMB338.1 million as of
September 30, 2023. As of
December 31, 2023, the balance of
trading securities was RMB76.1
million (US$10.7 million),
compared to RMB74.2 million as of
September 30, 2023.
Delinquency rates. As of December
31, 2023, the delinquency rates for loans that are past due
for 15-29 days, 30-59 days and 60-89 days were 0.9%, 1.4% and 1.2%,
respectively, compared to 0.8%, 1.2% and 1.0%, respectively, as of
September 30, 2023.
Cumulative M3+ net charge-off rates. As of
December 31, 2023, the cumulative M3+
net charge-off rates for loans originated in 2020, 2021 and 2022
were 7.8%, 6.4% and 4.7%, respectively, as compared to 7.9%, 6.5%
and 4.5%, respectively, as of September 30,
2023.
Fiscal Year 2023 Financial Results
Total net revenue in 2023 was RMB4,895.6 million (US$689.5 million), compared to RMB3,434.6 million in 2022. Specifically, revenue
from financial services business in 2023 was RMB2,515.1 million (US$354.2 million), compared to RMB1,959.7 million in 2022. The increase was
driven by the growing demand for our small revolving loan products.
Revenue from insurance brokerage business in 2023 was RMB963.8 million (US$135.8
million), compared to RMB731.8
million in 2022. The increase was driven by our improved
customer acquisition and serving capabilities. Revenue from
consumption and lifestyle business and others was RMB1,416.7million (US$199.5 million), compared to RMB743.1 million in 2022. The increase was due to
the continuous growth of paying customers on our e-commerce
platform.
Sales and marketing expenses in 2023 was RMB656.6 million (US$92.5
million), compared to RMB574.0
million in 2022. The increase was primarily due to the
growth of financial services business volume.
Origination, servicing and other operating costs in 2023
was RMB976.2 million (US$137.5 million), compared to RMB776.8 million in 2022. The increase was due to
the rapid growth of our overall business scale compared to the year
of 2022.
Research and development expenses in 2023
was RMB148.8 million (US$21.0
million), which remained stable compared to RMB151.9 million in 2022.
General and administrative expenses in 2023 was
RMB231.1 million (US$32.6 million), which remained stable compared
to RMB271.8 million in 2022.
Allowance for contract assets, receivables and others in
2023 was RMB288.2 million
(US$40.6 million), compared to
RMB188.2 million in 2022. The
increase was primarily attributed to the growing volume of loans
facilitated on our platform.
Income tax expense in 2023 was RMB565.2 million (US$79.6
million).
Net income in 2023 was RMB2,080.2
million (US$293.0 million),
compared to RMB1,194.9 million in
2022. The increase was driven by the growing of our business
volume.
Adjusted EBITDA (non-GAAP) in 2023 was RMB2,578.5 million (US$363.2 million), compared to RMB1,570.3 million in 2022.
Basic and diluted income per ADS in 2023 were
RMB23.5 (US$3.3) and RMB23.3 (US$3.3)
respectively, compared to a basic per ADS of RMB13.7 and a diluted per ADS of RMB13.6 in 2022.
Net cash generated from operating activities in 2023 was
RMB2,171.0 million (US$305.8 million), compared to RMB1,849.4 million in 2022.
Business Outlook
Based on the Company's preliminary assessment of business and
market conditions, the Company projects the total revenue in the
full year of 2024 to be between RMB5.8
billion to RMB6.8 billion,
with a healthy net profit margin
This is the Company's current and preliminary view, which is
subject to changes and uncertainties.
Recent Development
In response to the recent SEC rules on cybersecurity risk
management, strategy, governance, and incident disclosure, the
board of directors has proactively adopted the Cybersecurity
Incident Response Policy. This initiative, including the
establishment of a cybersecurity risk management committee chaired
by Mr. Ning Tang with members Mr.
Sam Hanhui Sun and Mr. Hao Li,
underscores the Company's dedication to not only adhering to but
exceeding regulatory standards, thereby enhancing the overall
efficiency and transparency of corporate governance. The Company's
approach is rooted in a proactive stance towards risk management
related to the use of information technology and data protection,
reflecting a broader commitment to maintaining stakeholder trust by
staying at the forefront of industry best practices. For more
detailed information on the cybersecurity risk management committee
and the committee's charter, please visit our website at
https://ir.yiren.com/
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 RMB7.0999
to US$1.00, the effective noon buying
rate on December 29, 2023, 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 21, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on March 21, 2024).
Participants who wish to join the call should register online in
advance of the conference at:
https://s1.c-conf.com/diamondpass/10037668-ghu76t.html
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://edge.media-server.com/mmc/p/rqq7rpic.
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] "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 Year
Ended
|
|
|
December
31,
2022
|
|
September
30,
2023
|
|
December
31,
2023
|
|
December
31,
2023
|
|
|
December
31,
2022
|
|
December
31,
2023
|
|
December
31,
2023
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
services
|
525,137
|
|
586,883
|
|
722,451
|
|
101,755
|
|
|
1,362,685
|
|
2,240,852
|
|
315,617
|
|
Post-origination
services
|
37,616
|
|
984
|
|
4,630
|
|
652
|
|
|
204,336
|
|
17,203
|
|
2,423
|
|
Insurance brokerage
services
|
199,027
|
|
264,611
|
|
98,158
|
|
13,825
|
|
|
731,797
|
|
963,822
|
|
135,751
|
|
Financing
services
|
35,940
|
|
9,937
|
|
8,564
|
|
1,206
|
|
|
278,783
|
|
55,974
|
|
7,884
|
|
Electronic commerce
services
|
129,154
|
|
350,635
|
|
385,886
|
|
54,351
|
|
|
302,896
|
|
1,267,104
|
|
178,468
|
|
Others
|
161,202
|
|
97,724
|
|
54,621
|
|
7,694
|
|
|
554,123
|
|
350,678
|
|
49,392
|
|
Total net
revenue
|
1,088,076
|
|
1,310,774
|
|
1,274,310
|
|
179,483
|
|
|
3,434,620
|
|
4,895,633
|
|
689,535
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
103,427
|
|
195,714
|
|
205,730
|
|
28,977
|
|
|
573,974
|
|
656,603
|
|
92,481
|
|
Origination,servicing
and other
operating costs
|
211,591
|
|
245,360
|
|
184,700
|
|
26,014
|
|
|
776,841
|
|
976,172
|
|
137,491
|
|
Research and
development
|
32,936
|
|
38,981
|
|
47,586
|
|
6,702
|
|
|
151,924
|
|
148,754
|
|
20,952
|
|
General and
administrative
|
52,323
|
|
53,519
|
|
50,512
|
|
7,115
|
|
|
271,794
|
|
231,135
|
|
32,555
|
|
Allowance for contract
assets,
receivables and others
|
55,747
|
|
83,756
|
|
98,686
|
|
13,899
|
|
|
188,223
|
|
288,187
|
|
40,589
|
|
Total operating costs
and expenses
|
456,024
|
|
617,330
|
|
587,214
|
|
82,707
|
|
|
1,962,756
|
|
2,300,851
|
|
324,068
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income/(expense), net
|
3,439
|
|
25,815
|
|
29,880
|
|
4,209
|
|
|
(26,302)
|
|
80,749
|
|
11,373
|
|
Fair value adjustments
related to
Consolidated ABFE
|
(2,962)
|
|
(8,104)
|
|
(13,394)
|
|
(1,887)
|
|
|
18,900
|
|
(50,171)
|
|
(7,066)
|
|
Others, net
|
11,991
|
|
5,177
|
|
8,504
|
|
1,197
|
|
|
30,921
|
|
20,000
|
|
2,817
|
|
Total other
income
|
12,468
|
|
22,888
|
|
24,990
|
|
3,519
|
|
|
23,519
|
|
50,578
|
|
7,124
|
|
Income before provision
for income taxes
|
644,520
|
|
716,332
|
|
712,086
|
|
100,295
|
|
|
1,495,383
|
|
2,645,360
|
|
372,591
|
|
Income tax
expense
|
159,285
|
|
161,917
|
|
140,818
|
|
19,833
|
|
|
300,512
|
|
565,163
|
|
79,601
|
|
Net income
|
485,235
|
|
554,415
|
|
571,268
|
|
80,462
|
|
|
1,194,871
|
|
2,080,197
|
|
292,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary
shares outstanding, basic
|
179,211,437
|
|
176,866,653
|
|
175,445,539
|
|
175,445,539
|
|
|
174,695,959
|
|
176,749,706
|
|
176,749,706
|
|
Basic income per
share
|
2.7076
|
|
3.1346
|
|
3.2561
|
|
0.4586
|
|
|
6.8397
|
|
11.7692
|
|
1.6577
|
|
Basic income per
ADS
|
5.4152
|
|
6.2692
|
|
6.5122
|
|
0.9172
|
|
|
13.6794
|
|
23.5384
|
|
3.3154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary
shares outstanding, diluted
|
179,628,555
|
|
178,366,565
|
|
177,106,305
|
|
177,106,305
|
|
|
175,391,332
|
|
178,688,319
|
|
178,688,319
|
|
Diluted income per
share
|
2.7013
|
|
3.1083
|
|
3.2256
|
|
0.4543
|
|
|
6.8126
|
|
11.6415
|
|
1.6397
|
|
Diluted income per
ADS
|
5.4026
|
|
6.2166
|
|
6.4512
|
|
0.9086
|
|
|
13.6252
|
|
23.2830
|
|
3.2794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed
Consolidated Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from
operating
activities
|
471,890
|
|
645,416
|
|
417,232
|
|
58,765
|
|
|
1,849,430
|
|
2,171,013
|
|
305,780
|
|
Net cash provided
by/(used in) investing
activities
|
283,145
|
|
(393,919)
|
|
(260,331)
|
|
(36,667)
|
|
|
52,559
|
|
100,045
|
|
14,091
|
|
Net cash (used
in/)provided by financing
activities
|
(54,551)
|
|
(502,636)
|
|
332,309
|
|
46,805
|
|
|
(489,123)
|
|
(569,278)
|
|
(80,181)
|
|
Effect of foreign
exchange rate changes
|
(1,107)
|
|
2,395
|
|
(6,414)
|
|
(903)
|
|
|
2,485
|
|
(3,871)
|
|
(545)
|
|
Net increase in cash,
cash equivalents and
restricted cash
|
699,377
|
|
(248,744)
|
|
482,796
|
|
68,000
|
|
|
1,415,351
|
|
1,697,909
|
|
239,145
|
|
Cash, cash equivalents
and restricted cash,
beginning of period
|
3,661,318
|
|
5,824,552
|
|
5,575,808
|
|
785,336
|
|
|
2,945,344
|
|
4,360,695
|
|
614,191
|
|
Cash, cash equivalents
and restricted cash,
end of period
|
4,360,695
|
|
5,575,808
|
|
6,058,604
|
|
853,336
|
|
|
4,360,695
|
|
6,058,604
|
|
853,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
As of
|
|
|
December
31,
2022
|
|
September
30,
2023
|
|
December
31,
2023
|
|
December
31,
2023
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
4,271,899
|
|
5,437,972
|
|
5,791,333
|
|
815,692
|
|
Restricted
cash
|
88,796
|
|
137,836
|
|
267,271
|
|
37,644
|
|
Trading
securities
|
-
|
|
74,185
|
|
76,053
|
|
10,712
|
|
Accounts
receivable
|
221,004
|
|
432,824
|
|
499,027
|
|
70,287
|
|
Contract
assets, net
|
626,739
|
|
826,088
|
|
978,051
|
|
137,756
|
|
Contract
cost
|
787
|
|
271
|
|
32
|
|
4
|
|
Prepaid
expenses and other assets
|
321,411
|
|
272,577
|
|
426,511
|
|
60,073
|
|
Loans at
fair value
|
54,049
|
|
534,687
|
|
677,835
|
|
95,471
|
|
Financing
receivables
|
514,388
|
|
162,411
|
|
116,164
|
|
16,361
|
|
Amounts
due from related parties
|
1,266,232
|
|
940,472
|
|
820,181
|
|
115,520
|
|
Held-to-maturity investments
|
2,700
|
|
4,820
|
|
10,420
|
|
1,468
|
|
Available-for-sale investments
|
972,738
|
|
338,069
|
|
438,084
|
|
61,703
|
|
Property,
equipment and software, net
|
77,256
|
|
73,446
|
|
79,158
|
|
11,149
|
|
Deferred
tax assets
|
84,187
|
|
88,231
|
|
73,414
|
|
10,340
|
|
Right-of-use assets
|
33,909
|
|
27,352
|
|
23,382
|
|
3,293
|
|
Total assets
|
8,536,095
|
|
9,351,241
|
|
10,276,916
|
|
1,447,473
|
|
Accounts
payable
|
14,144
|
|
38,025
|
|
30,902
|
|
4,353
|
|
Amounts
due to related parties
|
227,724
|
|
27,664
|
|
14,414
|
|
2,030
|
|
Deferred
revenue
|
65,539
|
|
27,150
|
|
54,044
|
|
7,612
|
|
Payable to investors at fair value
|
-
|
|
99,954
|
|
445,762
|
|
62,784
|
|
Accrued
expenses and other liabilities
|
1,315,006
|
|
1,483,190
|
|
1,500,522
|
|
211,344
|
|
Secured
borrowings
|
767,900
|
|
-
|
|
-
|
|
-
|
|
Deferred
tax liabilities
|
79,740
|
|
118,543
|
|
122,075
|
|
17,194
|
|
Lease
liabilities
|
35,229
|
|
27,709
|
|
23,648
|
|
3,331
|
|
Total
liabilities
|
2,505,282
|
|
1,822,235
|
|
2,191,367
|
|
308,648
|
|
Ordinary
shares
|
129
|
|
130
|
|
130
|
|
18
|
|
Additional
paid-in capital
|
5,160,783
|
|
5,169,821
|
|
5,171,232
|
|
728,353
|
|
Treasury
stock
|
(46,734)
|
|
(81,501)
|
|
(94,851)
|
|
(13,359)
|
|
Accumulated other comprehensive
income
|
7,765
|
|
25,873
|
|
23,669
|
|
3,333
|
|
Retained
earnings
|
908,870
|
|
2,414,683
|
|
2,985,369
|
|
420,480
|
|
Total equity
|
6,030,813
|
|
7,529,006
|
|
8,085,549
|
|
1,138,825
|
|
Total liabilities and
equity
|
8,536,095
|
|
9,351,241
|
|
10,276,916
|
|
1,447,473
|
|
|
|
|
|
|
|
|
|
|
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,
2022
|
|
September
30,
2023
|
|
December
31,
2023
|
|
December
31,
2023
|
|
|
December
31,
2022
|
|
December
31,
2023
|
|
December
31,
2023
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
Operating
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of loans
facilitated
|
6,783,523
|
|
9,814,359
|
|
11,645,528
|
|
1,640,238
|
|
|
22,623,101
|
|
36,036,301
|
|
5,075,607
|
|
Number of
borrowers
|
862,226
|
|
1,204,012
|
|
1,371,501
|
|
1,371,501
|
|
|
1,606,893
|
|
2,891,901
|
|
2,891,901
|
|
Remaining principal of
performing loans
|
11,259,763
|
|
15,090,800
|
|
18,251,550
|
|
2,570,677
|
|
|
11,259,763
|
|
18,251,550
|
|
2,570,677
|
|
Cumulative number of
insurance clients
|
924,824
|
|
1,256,762
|
|
1,283,102
|
|
1,283,102
|
|
|
924,824
|
|
1,283,102
|
|
1,283,102
|
|
Number of insurance
clients
|
85,314
|
|
123,693
|
|
102,556
|
|
102,556
|
|
|
431,701
|
|
358,278
|
|
358,278
|
|
Gross written
premiums
|
1,335,488
|
|
1,428,484
|
|
1,208,717
|
|
170,244
|
|
|
3,936,588
|
|
4,893,042
|
|
689,171
|
|
First year
premium
|
665,452
|
|
914,839
|
|
536,252
|
|
75,529
|
|
|
2,737,062
|
|
3,180,334
|
|
447,941
|
|
Renewal
premium
|
670,036
|
|
513,645
|
|
672,465
|
|
94,715
|
|
|
1,199,526
|
|
1,712,708
|
|
241,230
|
|
Gross merchandise
volume
|
292,086
|
|
563,224
|
|
692,733
|
|
97,569
|
|
|
687,848
|
|
1,960,344
|
|
276,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial services
business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
639,167
|
|
667,966
|
|
781,306
|
|
110,045
|
|
|
1,959,732
|
|
2,515,119
|
|
354,247
|
|
Sales and marketing
expenses
|
58,016
|
|
146,369
|
|
186,304
|
|
26,240
|
|
|
383,950
|
|
498,055
|
|
70,150
|
|
Origination, servicing
and other operating
costs
|
38,085
|
|
59,300
|
|
77,598
|
|
10,929
|
|
|
151,539
|
|
223,468
|
|
31,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance brokerage
business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
199,027
|
|
264,611
|
|
98,158
|
|
13,825
|
|
|
731,797
|
|
963,822
|
|
135,751
|
|
Sales and marketing
expenses
|
2,634
|
|
3,175
|
|
3,578
|
|
504
|
|
|
17,417
|
|
12,887
|
|
1,815
|
|
Origination, servicing
and other operating
costs
|
137,256
|
|
176,182
|
|
98,019
|
|
13,806
|
|
|
524,767
|
|
697,669
|
|
98,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumption &
lifestyle business and others:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
249,882
|
|
378,197
|
|
394,846
|
|
55,613
|
|
|
743,091
|
|
1,416,692
|
|
199,537
|
|
Sales and marketing
expenses
|
42,777
|
|
46,170
|
|
15,848
|
|
2,233
|
|
|
172,607
|
|
145,661
|
|
20,516
|
|
Origination, servicing
and other operating
costs
|
36,250
|
|
9,878
|
|
9,083
|
|
1,279
|
|
|
100,535
|
|
55,035
|
|
7,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
485,235
|
|
554,415
|
|
571,268
|
|
80,462
|
|
|
1,194,871
|
|
2,080,197
|
|
292,990
|
|
Interest
(income)/expense, net
|
(3,439)
|
|
(25,815)
|
|
(29,880)
|
|
(4,209)
|
|
|
26,302
|
|
(80,749)
|
|
(11,373)
|
|
Income tax
expense
|
159,285
|
|
161,917
|
|
140,818
|
|
19,833
|
|
|
300,512
|
|
565,163
|
|
79,601
|
|
Depreciation and
amortization
|
2,537
|
|
1,664
|
|
1,806
|
|
254
|
|
|
26,430
|
|
7,116
|
|
1,002
|
|
Share-based
compensation
|
1,494
|
|
513
|
|
828
|
|
117
|
|
|
22,136
|
|
6,751
|
|
951
|
|
Adjusted
EBITDA
|
645,112
|
|
692,694
|
|
684,840
|
|
96,457
|
|
|
1,570,251
|
|
2,578,478
|
|
363,171
|
|
Adjusted EBITDA
margin
|
59.3 %
|
|
52.8 %
|
|
53.7 %
|
|
53.7 %
|
|
|
45.7 %
|
|
52.7 %
|
|
52.7 %
|
|
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 %
|
|
March 31,
2023
|
|
0.6 %
|
|
1.2 %
|
|
1.2 %
|
|
June 30,
2023
|
|
0.7 %
|
|
1.1 %
|
|
1.1 %
|
|
September 30,
2023
|
0.8 %
|
|
1.2 %
|
|
1.0 %
|
|
December 31,
2023
|
|
0.9 %
|
|
1.4 %
|
|
1.2 %
|
|
Net Charge-Off
Rate
|
|
Loan
Issued
Period
|
|
Amount of Loans
Facilitated
During the Period
|
|
Accumulated M3+
Net
Charge-Off
as of December 31,
2023
|
|
Total Net
Charge-
Off Rate
as of December
31, 2023
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
|
2019
|
|
3,431,443
|
|
387,239
|
|
11.3 %
|
|
2020
|
|
9,614,819
|
|
746,687
|
|
7.8 %
|
|
2021
|
|
23,195,224
|
|
1,481,751
|
|
6.4 %
|
|
2022
|
|
22,623,101
|
|
1,070,819
|
|
4.7 %
|
|
2023Q1-Q3
|
|
24,390,773
|
|
694,391
|
|
2.8 %
|
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 %
|
|
2021Q2
|
|
0.4 %
|
2.4 %
|
4.5 %
|
5.9 %
|
6.4 %
|
6.7 %
|
6.8 %
|
6.7 %
|
6.6 %
|
|
|
2021Q3
|
|
0.5 %
|
3.1 %
|
5.0 %
|
5.9 %
|
6.3 %
|
6.4 %
|
6.4 %
|
6.3 %
|
|
|
|
2021Q4
|
|
0.6 %
|
3.2 %
|
4.6 %
|
5.3 %
|
5.4 %
|
5.4 %
|
5.3 %
|
|
|
|
|
2022Q1
|
|
0.6 %
|
2.5 %
|
3.8 %
|
4.5 %
|
4.5 %
|
4.4 %
|
|
|
|
|
|
2022Q2
|
|
0.4 %
|
2.2 %
|
3.6 %
|
4.1 %
|
4.2 %
|
|
|
|
|
|
|
2022Q3
|
|
0.5 %
|
2.7 %
|
4.1 %
|
4.7 %
|
|
|
|
|
|
|
|
2022Q4
|
|
0.6 %
|
3.0 %
|
4.6 %
|
|
|
|
|
|
|
|
|
2023Q1
|
|
0.5 %
|
3.1 %
|
|
|
|
|
|
|
|
|
|
2023Q2
|
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/yiren-digital-reports-fourth-quarter-and-fiscal-year-2023-financial-results-302095828.html
SOURCE Yiren Digital