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 %
Source : Yiren Digital Reports Fourth Quarter and Fiscal Year 2023 Financial Results
>
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