Yiren Digital Experiences Second Quarter 2020 Monetary Outcomes

BEIJING, Aug. 27, 2020 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Firm”), a number one fintech firm in China, right this moment introduced its unaudited monetary outcomes for the second quarter ended June 30, 2020.

Second Quarter 2020 Operational Highlights

Wealth Administration—Yiren Wealth

• Cumulative variety of buyers served reached 2,223,250 as of June 30, 2020, representing a rise of 0.2% from 2,218,181 as of March 31, 2020 and in comparison with 2,185,513 as of June 30, 2019.
• Variety of present buyers was 195,211 as of June 30, 2020, representing a lower of 11.5% from 220,568 as of March 31, 2020.
• Variety of present non-P2P buyers was 31,530 as of June 30, 2020, representing a rise of 19.7% from 26,346 as of March 31, 2020, and in comparison with 17,133 as of June 30, 2019.
• Complete belongings underneath administration (“AUA”) for P2P merchandise on Yiren Wealth was RMB 25,896.Eight million (US$3,665.Four million) as of June 30, 2020, representing a lower of 15.2% from RMB 30,536.Four million as of March 31, 2020, and in comparison with RMB 43,249.9 million as of June 30, 2019.
• Complete AUA for non-P2P merchandise on Yiren Wealth was RMB 2,528.6 million (US$357.9 million) as of June 30, 2020, representing a rise of 47.6% from 1,713.1 million as of March 31, 2020,and in comparison with RMB 352.7 million as of June 30, 2019.
• Gross sales quantity of non-P2P merchandise amounted to RMB 2,186.2 million (US$309.Four million) within the second quarter of 2020, representing a rise of 1.1% from RMB 2,163.Three million within the first quarter of 2020 and in comparison with RMB 284.Eight million in the identical interval of 2019.

Client Credit score—Yiren Credit score

• Complete loan originations within the second quarter of 2020 reached RMB 2.Four billion (US$0.Three billion), representing a rise of 30.6% from RMB 1.Eight billion within the first quarter of 2020 and in comparison with RMB 9.7 billion within the second quarter of 2019.
• Cumulative variety of debtors served reached 4,917,635 as of June 30, 2020, representing a rise of two.2% from 4,810,184 as of March 31, 2020 and in comparison with 4,491,334 as of June 30, 2019.
• Variety of debtors served within the second quarter of 2020 was 107,568 representing a lower of 6.8% from 115,420 within the first quarter of 2020 and in comparison with 135,246 within the second quarter of 2019.
• The proportion of loan quantity generated by repeat debtors was 0.3% within the second quarter of 2020.
• 25.0% of loan originations had been generated on-line within the second quarter of 2020.
• Complete excellent principal steadiness of performing loans reached RMB 33,454.Four million (US$4,735.2 million) as of June 30,2020, representing a lower of 20.5% from RMB 42,063.Zero million as of March 31,2020.

“With the pandemic nonetheless not far behind us and the altering market atmosphere within the second quarter, we’re making complete progresses in the direction of our enterprise transition in our credit-tech enterprise and have achieved significant scale in our wealth administration enterprise progress,” stated Mr. Ning Tang, Chairman and Chief Govt Officer of Yiren Digital.

“For our credit-tech enterprise, our new on-line product initiatives are monitoring very nicely. Our new revolving loan product, Yi Xiang Hua, accounted for 13% of our whole loan quantity this quarter, rising over 500% quarter over quarter. In the meantime, by leveraging our huge offline service community protection, we’re ramping up auto loans properly, attaining a 51% progress from final quarter. Furthermore, we’ve made nice strides in repositioning our credit score enterprise by transferring from a P2P funding model to a loan facilitation model. Within the second quarter, 63% of loans facilitated had been funded by institutional intuitional companions and we anticipate this proportion to achieve near 100% by the tip of this yr with a diversified associate base.”

“On wealth administration enterprise, we’re seeing very robust progress momentum notably for our fund merchandise. As of June 30, 2020, the variety of present non-P2P buyers elevated 20% from final quarter to 31,530, and whole AUA for non-P2P merchandise elevated by 48% quarterly to RMB 2.5 billion. Furthermore, common AUA per investor for non-P2P merchandise additionally sees regular progress, with common AUA per investor for bank’s fixed-income merchandise exceeding RMB 100,000 and for funds over RMB 50,000, which is nicely above business common”

“We’re delighted to see a notable acceleration in loan originations from prior quarter to RMB 2.Four billion, because of our strategic initiatives this yr in diversification of our loan merchandise,” stated Mr. Zhong Bi, Chief Monetary Officer of Yiren Digital. “To supply reduction to our debtors who had been considerably affected by the pandemic in addition to medical staff who fought on the frontlines, we proactively granted a concession totaling RMB 245 million for over 50,000 debtors in principal, curiosity and late charges, this represents a one-time hit to our income. On the steadiness sheet aspect, our cash place stays robust with roughly RMB 3.Four billion of cash and short-term investments as of June 30, 2020. “

“Because of our continued efforts in threat administration, the delinquency charges have proven a progressive bettering development. 15-90 days delinquency has decreased to five.5% as of June 30, 2020 from 8.9% as of March 31, 2020. 15-90 days delinquency additional decreased to five.2% as of July 31, 2020 because of our strengthened efforts in tightening controls and bettering borrower’s credit score high quality.” stated Mr. Michael Ji, Chief Danger Officer of Yiren Digital. “To mitigate the danger brought on by covid-19 and assist prospects went via the monetary hardship, we’ve launched 7 relating particular assortment initiatives in the second quarter, together with continued ‘pandemic buyer care program’, which provided fee reduction for the purchasers who had been hit by covid-19 and healthcare givers who had been preventing the illness. These particular assortment initiatives helped us obtain a decline in NCL by over 10% as in contrast with projection firstly of the yr, even going through the financial headwind. We’ll proceed to strengthen our threat administration and anticipate delinquency charges to additional enhance within the second half of the yr.

Second Quarter 2020 Monetary Outcomes

Complete quantity of loans facilitated within the second quarter of 2020 was RMB 2,402.5 million (US$340.1 million), in comparison with RMB 9,673.Eight million in the identical interval final yr. As of June 30, 2020, the whole excellent principal quantity 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.

Complete web income within the second quarter of 2020 was RMB 754.7 million (US$106.Eight million), in comparison with RMB 2,216.6 million in the identical interval final yr. Income from Yiren Credit score reached RMB 432.Three million (US$61.2 million), representing a lower of 73% from RMB 1,624.Three million within the second quarter of 2019. Income from Yiren Wealth reached RMB 322.Four million (US$45.6 million), representing a lower of 46% from RMB 592.Four million within the second quarter of 2019.

Gross sales and advertising and marketing bills within the second quarter of 2020 had been RMB 508.5 million (US$72.Zero million), in comparison with RMB 1,208.6 million in the identical interval final yr. Gross sales and advertising and marketing bills within the second quarter of 2020 accounted for 21.2% of the whole quantity of loans facilitated, as in comparison with 12.5% in the identical interval final yr primarily as a result of decline of loan quantity.

Origination and servicing prices within the second quarter of 2020 had been RMB 165.2 million (US$23.Four million), in comparison with RMB 162.9 million in the identical interval final yr. Origination and servicing prices within the second quarter of 2020 accounted for six.9% of the whole quantity of loans facilitated, in comparison with 1.7% in the identical interval final yr as a result of decline of loan quantity.

Basic and administrative bills within the second quarter of 2020 had been RMB 172.6 million (US$24.Four million), in comparison with RMB 175.5 million in the identical interval final yr. Basic and administrative bills within the second quarter of 2020 accounted for 22.9% of the whole web income, in comparison with 7.9% in the identical interval final yr.

Allowance for contract belongings and receivables within the second quarter of 2020 had been RMB 168.7 million (US$23.9 million), in comparison with RMB 500.9 million in the identical interval final yr.

Revenue tax profit within the second quarter of 2020 was RMB 47.6 million (US$6.7 million).

Web loss within the second quarter of 2020 was RMB 232.2 million (US$32.9 million), in comparison with web earnings of RMB 154.5 million in the identical interval final yr. 

Adjusted EBITDA (non-GAAP) within the second quarter of 2020 was web lack of RMB 269.Four million (US$38.1 million), in comparison with web earnings of RMB 239.9 million in the identical interval final yr.

Primary earnings per ADS within the second quarter of 2020 was web lack of RMB 2.5 (US$0.4), in comparison with a fundamental earnings per ADS of RMB 1.7 in the identical interval final yr.

Diluted earnings per ADS within the second quarter of 2020 was web lack of RMB 2.5 (US$0.4), in comparison with a diluted earnings per ADS of RMB 1.7 in the identical interval final yr.

Web cash utilized in working actions within the second quarter of 2020 was RMB 86.Eight million (US$12.Three million), in comparison with web cash generated from working actions of RMB 36.Four million in the identical interval final yr.

Web cash utilized in investing actions within the second quarter of 2020 was RMB 164.6 million (US$23.Three million), in comparison with web cash offered by investing actions of RMB 240.9 million in the identical interval final yr.

As of June 30, 2020, cash and cash equivalents was RMB 2,935.5 million (US$415.5 million), in comparison with RMB 3,195.Zero million as of March 31, 2020. As of June 30, 2020, the steadiness of held-to-maturity investments was RMB 4.1 million (US$0.6 million), in comparison with RMB 4.Four million as of March 31, 2020. As of June 30, 2020, the steadiness of available-for-sale investments was RMB 513.Zero million (US$72.6 million), in comparison with RMB 456.1 million as of March 31, 2020.

Delinquency charges. As of June 30, 2020, the delinquency charges for loans which might be overdue for 15-29 days, 30-59 days and 60-89 days had been 1.4%, 2.0%, and a couple of.1%, respectively in contrast to1.6%, 4.1%, and three.2%, as of March 31, 2020. 

Cumulative M3+ web cost–off charges. As of June 30, 2020, the cumulative M3+ web charge-off charge for loans originated in 2017 was 16.7%, in comparison with 16.5% as of March 31, 2020. As of June 30, 2020, the cumulative M3+ web charge-off charge for loans originated in 2018 was 17.6%, in comparison with 15.8% as of March 31, 2020. As of June 30, 2020, the cumulative M3+ web charge-off charge for loans originated in 2019 was 9.4%, in comparison with 5.2% as of March 31, 2020.

Current Improvement

Administration Change

Mr. Zhong Bi has resigned from his place because the Firm’s Chief Monetary Officer (“CFO”) to pursue different alternatives, efficient on September 10, 2020. The board of administrators of the Firm has appointed Ms. Na Mei because the Firm’s new CFO, efficient on September 10, 2020. Over the previous two months, Ms. Mei has been working with Mr. Bi on each day CFO duties to make sure a clean transition.

Ms. Mei joined CreditEase Client Credit score Division, now a part of Yiren Digital, in 2015. She has served because the monetary controller for this enterprise unit and the pinnacle of enterprise finance division. Previous to becoming a member of CreditEase, Ms. Mei had labored 12 years at PricewaterhouseCoopers. She introduced in seasoned expertise in finance administration, taxation, inner management and consulting, together with years of first-hand publicity coping with publicly listed corporations in China and overseas. Ms. Mei obtained her bachelor’s diploma from Capital Financial College and is an authorized public accountant.

2020 Share Incentive Plan

Yiren Digital adopted a 2020 share incentive plan (the “2020 Plan”) within the second quarter of 2020. The 2020 Plan has a ten-year time period, and has a most variety of 18,560,000 odd shares accessible for issuance pursuant to all awards underneath the 2020 Plan. Yiren Digital may grant restricted share items and different type of awards pursuant to the 2020 Plan. In reference to the adoption of the 2020 Plan and to stop dilution to current shareholders, CreditEase Holdings (Cayman) Restricted, the guardian firm of Yiren Digital, will give up for cancellation and for nil consideration 18,560,000 odd shares of US$0.0001 par value every standing in its title within the register of members of Yiren Digital.

Non-GAAP Monetary Measures

In evaluating the enterprise, the Firm considers and makes use of a number of non-GAAP monetary measures, similar to adjusted EBITDA and adjusted EBITDA margin as supplemental measures to assessment and assess working efficiency. We imagine these non-GAAP measures present helpful details about our core working outcomes, improve the general understanding of our previous efficiency and prospects and permit for higher visibility with respect to key metrics utilized by our administration in our monetary and operational decision-making. The presentation of those non-GAAP monetary measures just isn’t meant to be thought-about in isolation or as an alternative to the monetary data ready and introduced in accordance with accounting ideas typically accepted in the USA of America (“U.S. GAAP”). The non-GAAP monetary measures have limitations as analytical instruments. Different corporations, together with peer corporations within the business, may calculate these non-GAAP measures in a different way, which may scale back their usefulness as a comparative measure. The Firm compensates for these limitations by reconciling the non-GAAP monetary measures to the closest U.S. GAAP efficiency measure, all of which must be thought-about when evaluating our efficiency. See “Working Highlights and Reconciliation of GAAP to Non-GAAP measures” on the finish of this press launch.

Forex Conversion

This announcement incorporates forex conversions of sure RMB quantities into US$ at specified charges solely for the comfort of the reader. Except in any other case famous, all translations from RMB to US$ are made at a charge of RMB 7.0651 to US$1.00, the efficient midday shopping for charge on June 30, 2020, as set forth within the H.10 statistical launch of the Federal Reserve Board.

Convention Name

Yiren Digital’s administration will host an earnings convention name at 8:00 p.m. U.S. Jap Time on August 27, 2020 (or 8:00 a.m. Beijing/Hong Kong Time on August 28, 2020).

Members who want to be part of the decision ought to register on-line prematurely of the convention at:

http://apac.directeventreg.com/registration/occasion/9992747

Please observe the Convention ID variety of 9992747.

As soon as registration is accomplished, members will obtain the dial-in data for the convention name, an occasion passcode, and a novel registrant ID quantity. 

Members becoming a member of the convention name ought to dial-in at the least 10 minutes earlier than the scheduled begin time.

A replay of the convention name may be accessed by telephone on the following numbers till September 3, 2020:

Moreover, a dwell and archived webcast of the convention name can be accessible at ir.yirendai.com.

Secure Harbor Assertion

This press launch incorporates forward-looking statements. These statements represent “forward-looking” statements inside the which means of Part 21E of the Securities Change Act of 1934, as amended, and as outlined within the U.S. Personal Securities Litigation Reform Act of 1995. These forward-looking statements might be recognized by terminology similar to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “goal,” “assured” and comparable statements. Such statements are based mostly upon administration’s present expectations and present market and working situations and relate to occasions that contain recognized or unknown dangers, uncertainties and different components, all of that are tough to foretell and lots of of that are past Yiren Digital’s management. Ahead-looking statements contain dangers, uncertainties, and different components that would trigger precise outcomes to vary materially from these contained in any such statements. Potential dangers and uncertainties embody, however aren’t restricted to, uncertainties as to Yiren Digital’s potential to draw and retain debtors and buyers on its market, its potential to introduce new loan merchandise and platform enhancements, its potential to compete successfully, PRC rules and insurance policies regarding the peer-to-peer lending service business in China, normal financial situations in China, and Yiren Digital’s potential to satisfy the requirements obligatory to take care of itemizing of its ADSs on the NYSE or different stock exchange, together with its potential to treatment any non-compliance with the NYSE’s continued itemizing standards. Additional data relating to these and different dangers, uncertainties or components is included in Yiren Digital’s filings with the U.S. Securities and Change Fee. All data offered on this press launch is as of the date of this press launch, and Yiren Digital doesn’t undertake any obligation to replace any forward-looking assertion because of new data, future occasions or in any other case, besides as required underneath relevant regulation.

About Yiren Digital

Yiren Digital Ltd. (NYSE: YRD) is a number one fintech firm in China, offering each credit score and wealth administration providers. For its credit score enterprise, the Firm gives an efficient resolution to handle largely underserved investor and particular person borrower demand in China via on-line and offline channels to effectively match debtors with buyers and execute loan transactions. Yiren Digital deploys a proprietary threat administration system, which permits the Firm to successfully assess the creditworthiness of debtors, appropriately price the dangers related to debtors, and provide high quality loan funding alternatives to buyers. Yiren Digital’s market gives debtors with fast and handy entry to shopper credit score at aggressive costs and buyers with straightforward and fast entry to an alternate asset class with engaging returns. For its wealth administration enterprise, the Firm targets China’s mass prosperous inhabitants and strives to offer custom-made wealth administration providers, with a mixture of long-term and short-term targets in addition to several types of investments, starting from cash and fixed-income belongings, to funds and insurance coverage. For extra data, please go to ir.Yirendai.com.