Yiren Digital Reports Second Quarter 2020 Financial Results

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,              
        
         March 31,           
              
                June 30,              
              
                June 30,     
       
       June 30,      
       
       June 30,       
       
       June 30,
                                                                            2019                              2020                                         2020                                           2020                  2019                   2020                    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                         500,861                           143,385                                      168,708                                         23,879               691,965                312,093                  44,174
    receivables




              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                           5,787                          (26,020)                                    (32,957)                                       (4,665)               40,785               (58,977)                (8,348)
    Consolidated ABFE



              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                        217,133                            23,155                                    (279,753)                                      (39,596)              667,758              (256,598)               (36,319)
    income taxes




              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                   184,608,337                       185,600,961                                  185,613,735                                    185,613,735           184,865,964            185,607,348             185,607,348
    shares outstanding, basic




              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                   186,667,233                       186,166,429                                  185,613,735                                    185,613,735           186,621,626            185,607,348             185,607,348
    shares outstanding, diluted




              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)                          36,352                           557,762                                     (86,768)                                      (12,281)            (622,083)               470,994                  66,664
    operating activities



              Net cash provided by/(used in)                            240,896                         (524,479)                                   (164,623)                                      (23,302)              (9,035)             (689,102)               (97,537)
    investing activities



              Net cash (used in)/provided by                           (73,385)                         (65,637)                                      39,905                                          5,648               420,004               (25,732)                (3,642)
    financing activities



              Effect of foreign exchange rate changes                     1,532                             1,206                                         (86)                                          (12)                (664)                 1,120                     159



              Net increase/(decrease) in cash, cash                     205,395                          (31,148)                                   (211,572)                                      (29,947)            (211,778)             (242,720)               (34,356)
    equivalents and restricted cash



              Cash, cash equivalents and restricted                   2,617,311                         3,269,142                                    3,237,994                                        458,308             3,034,484              3,269,142                 462,717
    cash, beginning of period



              Cash, cash equivalents and restricted                   2,822,706                         3,237,994                                    3,026,422                                        428,361             2,822,706              3,026,422                 428,361
    cash, end of period


                                                                       
     
       Unaudited Condensed Consolidated Balance Sheets


                                                                           
        
                 (in thousands)




                                                                                       
              
                As of



                                                                              
              
                December 31,               March 31,       June 30,        June 30,
                                                                                                              2019                     2020            2020             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,                         March 31,             
              
                June 30,                                        June 30,    
       
       June 30,     
       
       June 30,          June 30,
                                                                 2019                              2020                                          2020                                             2020                 2019                  2020               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               58,071,303                        42,063,039                                    33,454,423                                        4,735,166           58,071,303            33,454,423          4,735,166
    loans





          
                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  
       
                Amount of Loans             
              
                Accumulated M3+ Net Charge-            
     
                Total Net Charge-Off
       Issued               Facilitated                                                   Off                                               Rate
       Period            During the Period                                        as of June 30, 2020                               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                           
              
               Month on Book
     Issued
     Period

       ---

                            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