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Yiren Digital Reports Fourth Quarter and Fiscal Year 2020 Financial Results

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BEIJING, April 1, 2021 /PRNewswire/ -- Yiren Digital Ltd. (NYSE:YRD) ("Yiren Digital" or the "Company"), a leading comprehensive personal financial service platform in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2020.

On December 31, 2020, the Company entered into definitive agreements in relation to a business restructuring with CreditEase Holdings (Cayman) Limited ("CreditEase"), the controlling shareholder of the Company, to streamline the Company's service lines and reposition the Company as a comprehensive personal financial service platform (the "Restructuring"). Upon the completion of the Restructuring, the Company has ceased control over the business (the "Disposed Business") currently operated by Hengcheng Technology Development (Beijing) Co., Ltd. ("Hengcheng"), a variable interest entity of the Company, and CreditEase has, through its subsidiaries and affiliates, obtained control over Hengcheng and the Disposed Business operated by Hengcheng, and paid the designated subsidiaries of the Company an aggregate amount of RMB 67.0 million in cash.

Fourth Quarter 2020 and Fiscal Year 2020 Operational Highlights

Wealth Management

  • Cumulative number of investors served reached 2,326,169 as of December 31, 2020, representing an increase of 1.9% from 2,283,828 as of September 30, 2020 and compared to 2,210,530 as of December 31, 2019.
  • Number of active investors[1] of current investment products[2] was 163,593 as of December 31, 2020, representing a decrease of 4% from 170,907 as of September 30, 2020, and compared to 88,015 as of December 31, 2019.
  • Total client assets[3] for current investment products was RMB 8,550.7 million (US$1,310.5) as of December 31, 2020, representing an increase of 71.2% from 4,994.6 million as of September 30, 2020, and compared to RMB 1,063.6 million as of December 31, 2019.
  • Sales volume of current investment products amounted to RMB 6,836.9 million (US$ 1,047.8 million) in the fourth quarter of 2020, representing an increase of 48.8% from RMB 4,593.3 million in the third quarter of 2020 and compared to RMB 2,548.4 million in the same period of 2019. For the fiscal year 2020, sales volume of current investment products reached RMB 15,779.7 million (US$ 2,418.3 million), compared to RMB 3,929.1 million in 2019.

Consumer Credit

  • Total loan originations in the fourth quarter of 2020 reached RMB 4.2 billion (US$0.6 billion), representing an increase of 31.0% from RMB 3.2 billion in the third quarter of 2020 and compared to RMB 8.0 billion in the fourth quarter of 2019.
  • Cumulative number of borrowers served reached 5,249,936 as of December 31, 2020, representing an increase of 3.7% from 5,060,824 as of September 30, 2020 and compared to 4,695,487 as of December 31, 2019.
  • Number of borrowers served in the fourth quarter of 2020 was 189,117, representing an increase of 32.0% from 143,238 in the third quarter of 2020 and compared to 125,622 in the fourth quarter of 2019. Total number of borrowers served was 525,320 in 2020.
  • Total outstanding principal balance of performing loans reached RMB 23,593.1 million (US$3,615.8 million) as of December 31, 2020, representing a decrease of 15.8% from RMB 28,007.2 million as of September 30,2020.

[1] Active investors refer to those who have made at least one investment through our wealth management platform or have had client assets with us above zero in the past twelve months.

[2] Current investment products include wealth management products the Company source from financial institutions, which do not include any of the Company's legacy products. Legacy products refer to the unsecured credit products the Company offered historically under its retail credit facilitation business which have been phased out for strategic reasons.

[3] Client assets refer to the outstanding balance of client assets generated through our platforms, where an asset is counted towards the outstanding balance for so long as it continues to be held by the investor who acquired it through our platform.

"Despite the unusual operating environment in 2020, we are pleased to see significant progresses in our strategic transitions, with wealth management growing into a main business pillar and with our new credit products continuing to ramp up in volume," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "We have successfully completed our legacy business restructuring at year-end, which will allow Yiren Digital to solely focus on the growth of our wealth management and loan facilitation-based credit businesses. With that, I believe Yiren Digital is well positioned to transition into China's leading digital financial service platform."

"On wealth management, we continue to see impressive growth momentum in the fourth quarter of 2020, and the demand remains strong going into the new year. More importantly, revenue generated from our current investment products is becoming a significant driver of revenue, increasing to 31% of our total net revenue from 12% last quarter. As of December 31, 2020, total client assets for our current investments products increased by 71% from prior quarter to RMB 8.6 billion. Notably, our insurance business has been growing at a better-than-expected rate, bringing in strong synergies to our other wealth management products and services, and will provide strong revenue contribution in 2021."

"On credit business, the two loan products that we started to shift towards in early 2020 have now grown into our main revenue contributor. In the fourth quarter of 2020, our small revolving loans and secured auto loans together accounted for 87% of total loans originated as compared to 67% last quarter. Compared with our unsecured standard loan products, these two products show better risk performance and enjoy higher unit economics, which enables us to further drive up profitability going forward."

"We continue to deliver solid financial results in the fourth quarter of 2020, increasing our total net revenue by 14% quarter over quarter to RMB 1.2 billion" said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "On the balance sheet side, our cash position remains strong with RMB 2.6 billion of cash and short-term investment as of December 31, 2020. The restructuring has impacted our fourth quarter and fiscal year 2020 results and excluding the one-time loss recognized, our non-GAAP net income was RMB 96.2 million, increasing by 21% quarter over quarter. "

Fourth Quarter 2020 Financial Results

Total net revenue in the fourth quarter of 2020 was RMB 1,160.9 million (US$177.9 million), compared to RMB 2,363.6 million in the same period last year due to decreased loan volume. Revenue from wealth management business reached RMB 413.1 million (US$63.3 million), representing a decrease of 20.8% from RMB 521.8 million in the fourth quarter of 2019. Revenue from credit business reached RMB 747.8 million (US$114.6 million), representing a decrease of 59.4% from RMB 1,841.8 million in the fourth quarter of 2019.

Sales and marketing expenses in the fourth quarter of 2020 were RMB 295.1 million (US$45.2

million), compared to RMB 960.4 million in the same period last year. The decrease was primarily due to internal restructuring to optimize operating efficiencies.

Origination, servicing and other operating costs in the fourth quarter of 2020 were RMB 596.9 million (US$91.5 million), compared to RMB 173.9 million in the same period last year. The increase was primarily due to an increase in loan servicing costs of disposed business and commission expenses as insurance volume expands.

General and administrative expenses in the fourth quarter of 2020 were RMB 149.3 million (US$22.9 million), compared to RMB139.9 million in the same period last year.

Provision for contract assets, receivables and others in the fourth quarter of 2020 were RMB 34.5 million (US$5.3 million), compared to RMB 588.3 million in the same period last year due to decreased loan volume and improved risk performance as the loan product mix changed with the evolution of the Company's credit business model.

Loss of disposal in the fourth quarter of 2020 were RMB 655.8 million (US$100.5 million). The loss was attributable to the Restructuring in which a one-time difference between the disposal consideration and the book value of the disposed businesses was recognized. The disposal consideration factored in the future expected losses of the disposed business.

Income tax benefit in the fourth quarter of 2020 was RMB 53.3 million (US$8.2 million).

Net loss in the fourth quarter of 2020 was RMB 559.6 million (US$85.8 million), as compared to net income of RMB 404.0 million in the same period last year.

Adjusted net income[4](non-GAAP) in the fourth quarter of 2020 was RMB 96.2 million (US$14.7 million), excluding the loss of disposal from Restructuring.

Adjusted EBITDA[4] (non-GAAP) in the fourth quarter of 2020 was RMB 48.9 million (US$7.5 million), compared to RMB 508.1 million in the same period last year.

Basic and diluted loss per ADS in the fourth quarter of 2020 was RMB 6.7 (US$1.0), compared to a basic income per ADS of RMB 4.4 and a diluted income per ADS of RMB 4.3 in the same period last year.

Net cash used in operating activities in the fourth quarter of 2020 was RMB 219.1 million (US$33.6 million), compared to net cash generated from operating activities of RMB 88.1 million in the same period last year.

Net cash used in investing activities in the fourth quarter of 2020 was RMB 981.1 million (US$150.4 million), compared to net cash provided by investing activities of RMB 1,197.2 million in the same period last year.

[4] "Adjusted net income(Loss)", "Adjusted EBITDA" and "Adjusted EBITDA margin" are non-GAAP financial measures. 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 "Reconciliation of Adjusted Net Income/(Loss)" and "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

As of December 31, 2020, cash and cash equivalents was RMB 2,469.9 million (US$378.5 million), compared to RMB 2,836.2 million as of September 30, 2020. As of December 31, 2020, the balance of held-to-maturity investments was RMB 3.3 million (US$0.5 million), compared to RMB 2.3 million as of September 30, 2020. As of December 31, 2020, the balance of available-for-sale investments was RMB 175.5 million (US$26.9 million), compared to RMB 511.3 million as of September 30, 2020.

Delinquency rates. As of December 31, 2020, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.2%, 1.7% and 1.4% respectively, compared to 1.2%, 2.0% and 1.7% respectively as of December 31, 2019. As of December 31, 2020, the delinquency rates for loans originated under loan facilitation model that are past due for 15-29 days, 30-59 days and 60-89 days were 0.5%, 0.7% and 0.6% respectively, compared to 0.8%, 1.3% and 1.0% respectively as of December 31, 2019.

Cumulative M3+ net charge-off rates. As of December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2017 was 16.9%, compared to 17.0% as of September 30, 2020. As December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2018 was 18.6%, compared to 18.3% as of September 30, 2020. As of December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2019 was 13.6%, compared to 11.9% as of September 30, 2020. Particularly, as of December 31, 2020, the cumulative M3+ net charge-off rate for loans originated in 2017, 2018 and 2019 under loan facilitation model was 10.6%, 10.2% and 8.5% respectively.

Fiscal Year 2020 Financial Results

Total net revenue in 2020 was RMB 3,962.0 million (US$607.2 million), compared to RMB 8,616.8 million in 2019 due to decreased loan volume. Revenue from wealth management business in 2020 reached RMB 1,432.4 million (US$219.5 million), representing a decrease of 34.2% from RMB 2,176.2 million in 2019. Revenue from credit business in 2020 was RMB 2,529.6 million (US$387.7 million), representing a decrease of 60.7% from RMB 6,440.6 million in 2019.

Sales and marketing expenses in 2020 was RMB 1,905.1 million (US$292.0 million), compared to RMB 4,457.4 million in 2019 due to decreased marketing campaigns in 2020 as a result of the COVID-19 outbreak.

Origination, servicing and other operating costs in 2020 was RMB 1,104.7 million (US$169.3 million), compared to RMB 665.1 million in 2019, mainly due to increased commission expenses as insurance volume expands.

General and administrative expenses in 2020 was RMB 630.6 million (US$96.6 million), compared to RMB 741.3 million in 2019.

Provision for contract assets, receivables and others in 2020 were RMB 371.6 million (US$57.0 million), compared to RMB 1,625.1 million in 2019, due to decreased loan volume and better risk performance as the loan product mix changed with the evolution of the Company's credit business model.  

Income tax benefit in 2020 was RMB 80.6 million (US$12.4 million).

Net loss in 2020 was RMB 692.7 million (US$106.2 million), compared to net income of RMB1,155.6 million in 2019. The loss was mainly due to a one-time loss on disposal of RMB 655.8 million post Restructuring.

Adjusted net loss (non-GAAP) in 2020 was RMB 36.9 million (US 5.7 million), excluding the loss of disposal from the Restructuring. The loss was mainly attributable to the concessions that were granted in 2020 to provide relief to borrowers who were significantly impacted by COVID-19 outbreak.

Adjusted EBITDA (non-GAAP) in 2020 was a loss of RMB 73.2 million (US$11.2 million), compared to an adjusted EBITDA of RMB 1,491.3 million in 2019. Adjusted EBITDA margin[4](non-GAAP) in 2020 was a loss of 1.8%, compared to 17.3% in 2019.

Basic and diluted loss per ADS in 2020 was RMB 7.7 (US$1.2), compared to a basic income per ADS of RMB 12.5 and a diluted income per ADS of RMB 12.4 in 2019.

Net cash generated from operating activities in 2020 was RMB 282.0 million (US$43.2 million), compared to net cash generated from operating activities of RMB 274.2 million in 2019.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company's guidance for 2021 is as follows:

  • For wealth management business, total sales volume of current products to be between RMB 20 billion and RMB 30 billion;
  • For credit-tech business, total loan originations to be between RMB 20 billion and RMB 25 billion.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted Net Income/(Loss), 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 6.5250 to US$1.00, the effective noon buying rate on December 31, 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 a.m. U.S. Eastern Time on April 1, 2021 (or 8:00 p.m. Beijing/Hong Kong Time on April 1, 2021).

Participants who wish to join the call should register online in advance of the conference at:

http://apac.directeventreg.com/registration/event/5099352

Please note the Conference ID number of 5099352.

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 April 8, 2020:

International

+61 2-8199-0299

U.S.

+1 646-254-3697

Replay Access Code:

5099352

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. is a leading personal financial services platform in China. The Company provides customized asset allocation services and wealth management solutions to China's mass affluent population as well as utilizes online and offline channels to provide retail credit facilitation services to individual borrowers and small business owners.

 

 

 

Unaudited Condensed Consolidated Statements of Operations

 (in thousands, except for share, per share and per ADS data, and percentages)


For the Three Months Ended 



For the Year Ended 


December
31, 2019


September
30, 2020


December 31,
2020


December 31,
2020



December 31,
2019


December
31, 2020


December
31, 2020


RMB


RMB


RMB


USD



RMB


RMB


USD

Net revenue:















Loan facilitation services

1,602,341


406,413


393,682


60,334



5,182,028


1,329,720


203,789

Post-origination services

117,110


195,570


201,873


30,938



757,783


670,440


102,750

Account management services

489,641


157,327


50,566


7,750



2,016,678


921,779


141,269

Others

154,536


263,452


514,730


78,886



660,295


1,040,023


159,391

Total net revenue

2,363,628


1,022,762


1,160,851


177,908



8,616,784


3,961,962


607,199

Operating costs and expenses:















  Sales and marketing

960,396


485,055


295,133


45,231



4,457,353


1,905,095


291,969

  Origination,servicing and other operating
  costs

173,942


239,655


596,926


91,483



665,083


1,104,682


169,300

  General and administrative

139,935


159,670


149,276


22,878



741,268


630,555


96,637

  Provision for contract assets, receivables
  and others

588,344


25,016


34,520


5,290



1,625,051


371,629


56,955

  Loss of disposal

-


-


655,839


100,512



-


655,839


100,512

Total operating costs and expenses

1,862,617


909,396


1,731,694


265,394



7,488,755


4,667,800


715,373

Other income/(expenses):















   Interest income, net

10,454


11,003


8,554


1,311



73,367


61,623


9,444

   Fair value adjustments related to
   Consolidated ABFE

(35,596)


(30,905)


(54,106)


(8,292)



3,866


(143,988)


(22,067)

   Others, net

6,942


2,726


3,444


528



191,757


14,844


2,275

Total other (expenses)/income

(18,200)


(17,176)


(42,108)


(6,453)



268,990


(67,521)


(10,348)

Income/(loss) before provision for income
taxes

482,811


96,190


(612,951)


(93,939)



1,397,019


(773,359)


(118,522)

Share of results of equity investees

2,088


-


-


-



(2,180)


-


-

Income tax expense/(benefit)

80,914


16,353


(53,342)


(8,175)



239,228


(80,611)


(12,354)

Net income/(loss)

403,985


79,837


(559,609)


(85,764)



1,155,611


(692,748)


(106,168)
















Weighted average number of ordinary shares
outstanding, basic

185,586,690


182,144,192


167,964,040


167,964,040



185,219,586


180,301,898


180,301,898

Basic income/(loss) per share

2.1768


0.4383


(3.3317)


(0.5106)



6.2391


(3.8422)


(0.5888)

Basic income/(loss) per ADS

4.3536


0.8766


(6.6634)


(1.0212)



12.4782


(7.6844)


(1.1776)
















Weighted average number of ordinary shares
outstanding, diluted

186,322,276


182,730,892


167,964,040


167,964,040



186,535,464


180,301,898


180,301,898

Diluted income/(loss) per share

2.1682


0.4369


(3.3317)


(0.5106)



6.1951


(3.8422)


(0.5888)

Diluted income/(loss) per ADS

4.3364


0.8738


(6.6634)


(1.0212)



12.3902


(7.6844)


(1.1776)
















Unaudited Condensed Consolidated Cash
Flow Data















Net cash generated from/(used in) operating
activities

88,104


3,098


(219,069)


(33,576)



274,168


282,028


43,222

Net cash provided by/(used in) investing
activities

1,197,182


(99,460)


(981,096)


(150,359)



1,110,001


(1,796,663)


(275,351)

Net cash (used in)/provided by financing
activities

(730,595)


81,693


899,487


137,853



(1,149,705)


955,448


146,429

Effect of foreign exchange rate changes

(2,336)


(3,389)


(538)


(82)



193


(2,807)


(430)

Net decrease in cash, cash equivalents and
restricted cash

552,355


(18,058)


(301,216)


(46,164)



234,657


(561,994)


(86,130)

Cash, cash equivalents and restricted cash,
beginning of period

2,716,787


3,026,422


3,008,364


461,052



3,034,485


3,269,142


501,018

Cash, cash equivalents and restricted cash,
end of period

3,269,142


3,008,364


2,707,148


414,888



3,269,142


2,707,148


414,888

 

 

 

Unaudited Condensed Consolidated Balance Sheets

 (in thousands)


As of


December
31, 2019


September 30,
2020


December 31,
2020


December 31,
2020


RMB


RMB


RMB


USD









        Cash and cash equivalents

3,198,086


2,836,229


2,469,909


378,530

        Restricted cash

71,056


172,135


237,239


36,358

        Accounts receivable

3,398


100,657


122,742


18,811

        Contract assets, net

2,398,685


1,231,190


750,174


114,969

        Contract cost

160,003


124,005


65,529


10,043

        Prepaid expenses and other assets

1,333,221


986,747


278,591


42,697

        Loans at fair value

418,492


180,058


192,156


29,449

        Financing receivables

29,612


267,938


1,253,494


192,106

        Amounts due from related parties

988,853


1,584,084


884,006


135,480

        Held-to-maturity investments

6,627


2,349


3,286


504

        Available-for-sale investments

460,991


511,267


175,515


26,899

        Property, equipment and software, net

195,855


163,696


147,193


22,558

        Deferred tax assets

45,407


50,175


16,745


2,566

        Right-of-use assets

334,134


160,825


105,674


16,195

Total assets

9,644,420


8,371,355


6,702,253


1,027,165

        Accounts payable

43,583


24,757


9,903


1,517

        Amounts due to related parties

106,645


293,620


970,309


148,706

        Liabilities from quality assurance program
and guarantee

4,397


2,065


22,783


3,492

        Deferred revenue

358,203


135,590


50,899


7,801

        Payable to investors at fair value

-


9,876


52,623


8,065

        Accrued expenses and other liabilities

2,338,745


1,993,273


1,686,632


258,488

        Refund liability

1,801,535


1,285,109


10,845


1,662

        Deferred tax liabilities

218,888


150,486


38,741


5,937

        Lease liabilities

282,334


135,544


81,854


12,545

Total liabilities

5,154,330


4,030,320


2,924,589


448,213

        Ordinary shares

121


121


121


19

        Additional paid-in capital

5,038,691


5,059,529


5,058,176


775,199

        Treasury stock

(37,097)


(40,147)


(40,147)


(6,153)

        Accumulated other comprehensive income

21,855


18,595


17,108


2,622

        Accumulated deficit

(533,480)


(697,063)


(1,257,594)


(192,735)

Total equity

4,490,090


4,341,035


3,777,664


578,952

Total liabilities and equity

9,644,420


8,371,355


6,702,253


1,027,165

 

 

 
















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 Year Ended 


December 31,
2019


September 30,
2020


December 31,
2020


December 31,
2020



December 31,
2019


December 31,
2020


December
31, 2020


RMB


RMB


RMB


USD



RMB


RMB


USD

Operating Highlights















Amount of investment in legacy
products

8,790,755


2,620,252


531,062


81,389



41,203,595


12,372,812


1,896,216

Number of investors in legacy
products

105,849


41,851


15,610


15,610



348,832


122,085


122,085

Amount of investment in current
investment products

2,548,414


4,593,256


6,836,906


1,047,802



3,929,131


15,779,685


2,418,343

Number of investors in current
investment products

13,896


76,707


99,112


99,112



32,668


153,700


153,700

Amount of loans facilitated under
loan facilitation model

1,086,746


3,148,367


4,202,538


644,067



3,431,443


9,614,819


1,473,535

Amount of loans facilitated

7,998,046


3,206,977


4,202,538


644,067



39,103,048


11,651,463


1,785,665

Number of borrowers

125,622


143,238


189,117


189,117



541,955


525,320


525,320

Remaining principal of performing
loans facilitated under loan
facilitation model

3,627,706


6,250,343


8,863,461


1,358,385



3,627,706


8,863,461


1,358,385

Remaining principal of performing
loans

51,157,313


28,007,249


23,593,103


3,615,801



51,157,313


23,593,103


3,615,801
















Segment Information















Wealth management:















Revenue

521,849


281,050


413,057


63,303



2,176,215


1,432,364


219,520

Sales and marketing expenses

67,080


43,879


39,012


5,979



643,542


195,671


29,988

      Origination,servicing and other
operating costs

3,061


105,522


266,492


40,842



87,477


442,507


67,817
















Consumer credit:















Revenue

1,841,779


741,712


747,794


114,605



6,440,569


2,529,598


387,679

Sales and marketing expenses

893,316


441,176


256,121


39,252



3,813,811


1,709,424


261,981

      Origination,servicing and other
operating costs

170,881


134,133


330,434


50,641



577,606


662,175


101,483
















 Reconciliation of Adjusted Net
Income/(Loss) 















 Net income/(loss) 

403,985


79,837


(559,609)


(85,764)



1,155,611


(692,748)


(106,168)

 Loss of disposal 

-


-


655,839


100,512



-


655,839


100,512

Adjusted net income/(loss)

403,985


79,837


96,230


14,748



1,155,611


(36,909)


(5,656)
















Reconciliation of Adjusted
EBITDA















Net income/(loss)

403,985


79,837


(559,609)


(85,764)



1,155,611


(692,748)


(106,168)

Interest income, net

(10,454)


(11,003)


(8,554)


(1,311)



(73,367)


(61,623)


(9,444)

Loss of disposal

-


-


655,839


100,512



-


655,839


100,512

Income tax expense/(benefit)

80,914


16,353


(53,342)


(8,175)



239,228


(80,611)


(12,354)

Depreciation and amortization

30,083


23,404


16,829


2,579



125,850


91,772


14,065

Share-based compensation

3,556


8,952


(2,274)


(349)



43,941


14,173


2,172

Adjusted EBITDA

508,084


117,543


48,889


7,492



1,491,263


(73,198)


(11,217)

Adjusted EBITDA margin

21.5%


11.5%


4.2%


4.2%



17.3%


-1.8%


-1.8%

 

 

Delinquency Rates


Including:Loan Facilitation Model



15-29 days


30-59 days


60-89 days


15-29 days


30-59 days


60-89 days

All Loans













December 31, 2015

0.7%


1.2%


0.9%


1.3%


1.9%


1.5%

December 31, 2016

0.6%


0.9%


0.8%


0.6%


0.8%


0.7%

December 31, 2017

0.8%


1.0%


0.8%


0.5%


0.8%


0.6%

December 31, 2018

1.0%


1.8%


1.7%


1.0%


1.8%


1.7%

December 31, 2019

1.2%


2.0%


1.7%


0.8%


1.3%


1.0%

December 31, 2020

1.2%


1.7%


1.4%


0.5%


0.7%


0.6%














Online Channels












December 31, 2015

0.5%


0.8%


0.6%


0.4%


0.7%


0.5%

December 31, 2016

0.5%


0.9%


0.8%


0.8%


1.1%


1.7%

December 31, 2017

1.3%


1.2%


0.9%


0.3%


0.2%


0.0%

December 31, 2018

1.2%


2.3%


2.2%


0.9%


1.7%


1.5%

December 31, 2019

1.6%


2.9%


2.5%


1.0%


2.1%


1.6%

December 31, 2020

0.9%


1.5%


1.6%


0.6%


1.0%


1.1%














Offline Channels












December 31, 2015

0.7%


1.2%


1.0%


1.3%


2.0%


1.6%

December 31, 2016

0.6%


0.9%


0.8%


0.6%


0.8%


0.7%

December 31, 2017

0.6%


0.9%


0.7%


0.5%


0.9%


0.7%

December 31, 2018

0.9%


1.6%


1.5%


1.1%


1.9%


1.8%

December 31, 2019

1.0%


1.7%


1.5%


0.7%


0.9%


0.7%

December 31, 2020

1.3%


1.8%


1.3%


0.4%


0.6%


0.4%

 

 

 

Net Charge-Off Rate


Including:Loan Facilitation Model



Loan Issued
Period


Amount of Loans
Facilitated
During the Period


Accumulated M3+ Net
Charge-Off
as of December 31, 2020


Total Net Charge-Off
Rate
as of December 31, 2020


Amount of Loans
Facilitated
During the Period


Accumulated M3+ Net
Charge-Off
as of December 31, 2020


Total Net Charge-Off
Rate
as of December 31, 2020



(in RMB thousands)


(in RMB thousands)




(in RMB thousands)


(in RMB thousands)
















2015


53,143,029


4,409,316


8.3%


4,530,824


253,460


5.6%

2016


53,805,112


5,024,432


9.3%


3,749,815


321,396


8.6%

2017


69,883,293


11,815,925


16.9%


5,043,494


535,515


10.6%

2018


63,176,149


11,725,429


18.6%


4,211,573


427,707


10.2%

2019


39,103,048


5,305,343


13.6%


3,431,443


293,272


8.5%

2020Q1-Q3


6,781,464


45,840


0.7%


5,412,281


44,695


0.8%

 

 

M3+ Net Charge-Off Rate


Including:Loan Facilitation Model

Loan Issued Period


Month on Book


Month on Book



4

7

10

13

16

19

22

25

28

31

34


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%


1.0%

1.9%

2.7%

3.6%

4.3%

4.8%

5.1%

5.3%

5.3%

5.2%

5.2%

2015Q2


0.8%

2.3%

3.8%

5.2%

6.4%

7.3%

7.9%

8.3%

8.5%

8.7%

8.8%


1.1%

2.8%

4.2%

5.3%

6.2%

6.7%

7.0%

7.0%

6.9%

6.8%

6.8%

2015Q3


0.4%

1.6%

3.1%

4.4%

5.6%

6.5%

7.1%

7.6%

7.9%

8.1%

8.4%


0.6%

2.2%

3.8%

5.0%

5.9%

6.5%

6.7%

6.8%

6.7%

6.7%

6.7%

2015Q4


0.4%

1.6%

3.1%

4.4%

5.5%

6.3%

6.9%

7.4%

7.9%

8.3%

8.5%


1.0%

1.5%

2.2%

2.8%

3.1%

3.4%

3.7%

4.0%

4.2%

4.4%

4.4%

2016Q1


0.3%

1.2%

2.5%

3.6%

4.5%

5.2%

5.8%

6.4%

7.0%

7.4%

7.6%


0.6%

0.9%

1.3%

1.7%

2.0%

2.2%

2.4%

2.7%

2.9%

3.0%

3.2%

2016Q2


0.4%

1.6%

3.1%

4.3%

5.2%

6.0%

6.8%

7.6%

8.1%

8.4%

8.7%


0.6%

1.4%

2.3%

3.0%

3.6%

4.2%

4.8%

5.4%

5.8%

6.0%

6.2%

2016Q3


0.3%

1.6%

3.1%

4.3%

5.4%

6.6%

7.8%

8.6%

9.2%

9.5%

9.8%


0.4%

1.7%

2.7%

4.1%

5.3%

6.5%

7.7%

8.6%

9.3%

9.3%

9.5%

2016Q4


0.2%

1.5%

2.9%

4.4%

5.9%

7.4%

8.4%

9.3%

10.0%

10.4%

10.7%


0.3%

2.1%

3.8%

5.4%

7.2%

9.2%

10.4%

11.5%

12.4%

12.9%

13.3%

2017Q1


0.3%

1.6%

3.3%

5.1%

7.1%

8.5%

9.7%

10.7%

11.3%

11.8%

12.1%


0.3%

1.6%

3.4%

5.3%

7.5%

8.9%

10.0%

10.9%

11.6%

12.1%

12.3%

2017Q2


1.1%

3.0%

5.7%

8.3%

10.2%

11.9%

13.3%

14.3%

15.1%

15.5%

15.8%


4.1%

5.8%

7.9%

9.6%

11.3%

12.5%

13.2%

13.9%

14.6%

14.9%

15.1%

2017Q3


0.4%

3.1%

6.4%

9.0%

11.5%

13.4%

14.8%

15.9%

16.7%

17.2%

17.4%


0.3%

1.6%

3.5%

4.9%

6.5%

7.6%

8.4%

8.9%

9.4%

9.9%

10.1%

2017Q4


0.7%

4.1%

7.5%

10.6%

13.3%

15.3%

16.8%

17.9%

18.7%

19.2%

19.2%


0.2%

2.3%

5.1%

6.5%

7.9%

9.0%

9.7%

10.2%

10.7%

11.2%

10.6%

2018Q1


0.4%

3.1%

6.6%

10.0%

12.9%

15.1%

16.8%

18.1%

19.1%

19.3%



0.2%

2.9%

5.1%

6.8%

7.2%

7.9%

8.4%

8.7%

9.0%

8.6%


2018Q2


0.5%

3.7%

7.4%

10.8%

13.6%

15.8%

17.7%

19.2%

19.6%




0.7%

4.1%

7.1%

9.4%

11.2%

12.4%

13.4%

14.1%

14.3%



2018Q3


0.4%

3.0%

6.2%

9.1%

11.7%

13.9%

15.9%

16.6%





0.2%

2.8%

3.6%

4.5%

5.2%

6.4%

7.0%

7.0%




2018Q4


0.3%

2.5%

5.6%

8.6%

11.7%

14.5%

15.8%






0.6%

2.2%

3.4%

5.2%

6.9%

9.0%

9.7%





2019Q1


0.2%

2.5%

5.6%

9.0%

12.7%

14.6%







0.0%

0.8%

2.0%

3.4%

5.3%

5.9%






2019Q2


0.3%

2.9%

6.9%

11.3%

13.7%








0.1%

1.5%

4.5%

7.5%

8.8%







2019Q3


0.3%

3.4%

8.0%

10.9%









0.2%

2.9%

6.8%

9.0%








2019Q4


0.3%

3.9%

7.0%










0.4%

3.1%

4.9%









2020Q1


0.5%

2.4%











0.6%

2.3%










2020Q2


0.4%












0.5%











 

 

Cision View original content:http://www.prnewswire.com/news-releases/yiren-digital-reports-fourth-quarter-and-fiscal-year-2020-financial-results-301260600.html

SOURCE Yiren Digital

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