Yiren Digital Reports Fourth Quarter and Fiscal Year 2023 Financial Results

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 Year Ended

                                                                                               
            
          For the Three Months Ended


                                                                            December                       September                       December   December     December                     December      December
                                                                                 31,                              30,                             31,         31,           31,                           31,            31,
                                                                                2022                             2023                            2023        2023          2022                          2023           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                                211,591                          245,360                         184,700      26,014       776,841                       976,172        137,491
     operating costs


              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,                                  55,747                           83,756                          98,686      13,899       188,223                       288,187         40,589
     receivables and others


              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                              (2,962)                         (8,104)                       (13,394)    (1,887)       18,900                      (50,171)       (7,066)
     Consolidated ABFE


     
            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                                                  179,211,437                      176,866,653                     175,445,539 175,445,539   174,695,959                   176,749,706    176,749,706
     shares outstanding, basic


     
            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                                                  179,628,555                      178,366,565                     177,106,305 177,106,305   175,391,332                   178,688,319    178,688,319
     shares outstanding, diluted


              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                              471,890                          645,416                         417,232      58,765     1,849,430                     2,171,013        305,780
     activities


              Net cash  provided by/(used in)
               investing                                                     283,145                        (393,919)                      (260,331)   (36,667)       52,559                       100,045         14,091
     activities


              Net cash (used in/)provided by
               financing                                                    (54,551)                       (502,636)                        332,309      46,805     (489,123)                    (569,278)      (80,181)
     activities


              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                                               699,377                        (248,744)                        482,796      68,000     1,415,351                     1,697,909        239,145
     restricted cash


              Cash, cash equivalents and
               restricted cash,                                            3,661,318                        5,824,552                       5,575,808     785,336     2,945,344                     4,360,695        614,191
     beginning of period


              Cash, cash equivalents and
               restricted cash,                                            4,360,695                        5,575,808                       6,058,604     853,336     4,360,695                     6,058,604        853,336
     end of period


                         Unaudited Condensed Consolidated Balance Sheets


     
          
                 (in thousands)


                                                                                 
        
           As of


                                                                        December   September        December   December
                                                                             31,          30,              31,         31,
                                                                            2022         2023             2023        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                                         7,765       25,873           23,669       3,333
     income


                    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 Year Ended

                                                                          
              
                For the Three Months Ended


                                                            December                        September                                December                                December                     December                        December      December
                                                                 31,                               30,                                      31,                                      31,                           31,                              31,            31,
                                                                2022                              2023                                     2023                                     2023                          2022                             2023           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                                         38,085                            59,300                                   77,598                                   10,929                       151,539                          223,468         31,475
     costs




           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                                        137,256                           176,182                                   98,019                                   13,806                       524,767                          697,669         98,265
     costs




           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                                         36,250                             9,878                                    9,083                                    1,279                       100,535                           55,035          7,751
     costs






                        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            Amount of Loans                             Accumulated M3+ Net              Total Net
                                                                                                             Charge-
     Issued           Facilitated                                   Charge-Off                   Off Rate
     Period                 During the
                               Period                                 as of December 31,            as of December
                                                                                          2023                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                         
              
                Month on Book
     Period


                                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