BEIJING, March 16,
2023 /PRNewswire/ -- Yiren Digital Ltd. (NYSE:
YRD) ("Yiren Digital" or the "Company"), a leading digital personal
financial management platform in China, today announced its unaudited financial
results for the fourth quarter and the fiscal year ended
December 31, 2022.
Fourth Quarter 2022 and Fiscal Year 2022 Operational
Highlights
Holistic Wealth Business
- Cumulative number of clients served reached 3,138,191 as of
December 31, 2022, representing an
increase of 1.9% from 3,080,757 as of September 30, 2022 and compared to 2,702,122 as
of December 31, 2021.
- Number of active clients[1] was 535,928 as of
December 31, 2022, representing a
decrease of 13.7% from 621,137 as of September 30, 2022 and compared to 424,366 as of
December 31, 2021. The
quarter-over-quarter decline was primarily due to the change of
product mix. The decline was partially offset by the rapid growth
of customer base on Yiren Select platform.
- Total client assets[2] was RMB23,372.1 million (US$3,388.6 million) as of December 31, 2022, representing an increase of
2.5% from RMB22,795.8 million as of
September 30, 2022 and compared to
RMB19,261.0 million as of
December 31, 2021.
- Sales volume of investment products amounted to RMB6,502.1 million (US$942.7 million) in the fourth quarter of 2022,
representing an increase of 45.3% from RMB4,476.4 million in the third quarter of 2022
and compared to RMB5,391.8 million in
the same period of 2021. The growth was mainly driven by the rapid
expansion of our insurance brokerage business. For the fiscal year
of 2022, sales volume of investment products reached RMB21,897.0 million (US$3,174.8 million), compared to RMB21,588.6 million in 2021.
Credit-tech Business
- Total loans facilitated in the fourth quarter of 2022 reached
RMB6.8 billion (US$983.5 million), representing an increase of
7.7% from RMB6.3 billion in the third
quarter of 2022 and compared to RMB6.2
billion in the fourth quarter of 2021. The growth was mainly
due to the strong demand of our small revolving loan products.
Total loans facilitated in 2022 reached RMB22.6 billion (US$3.3
billion), compared to RMB23.2
billion. The decline was due to the business transitions,
which was largely offset by the strong growth of our consumer loan
business post the restructuring.
- Cumulative number of borrowers served reached 7,277,627 as of
December 31, 2022, representing an
increase of 4.6% from 6,960,095 as of September 30, 2022 and compared to 6,127,068 as
of December 31, 2021.
- Number of borrowers served in the fourth quarter of 2022 was
862,226, representing an increase of 16.9% from 737,320 in the
third quarter of 2022 and compared to 618,131 in the same period of
2021. The increase was driven by the strong demand of our small
revolving loan products. Total number of borrowers served in 2022
was 1,606,893, compared to 1,297,046 in 2021.
- Outstanding balance of performing loans facilitated reached
RMB11,259.8 million (US$1,632.5 million) as of December 31, 2022, representing an increase of
5.9% from RMB10,630.4 million as of
September 30, 2022 and compared to
RMB14,102.3 million as of
December 31, 2021.
Consumption-Driven Services
- Total gross merchandise volume generated through our e-commerce
platform and "Yiren Select" channel reached RMB292.1 million (US$42.3
million) in the fourth quarter of 2022. representing an
increase of 17.0% from RMB249.6
million in the third quarter of 2022 and compared to
RMB61.6 million in the same period of
2021.
"We are pleased to deliver an impressive quarter with robust
growth in both revenue and profitability, marking the full success
of our business re-structuring and product optimization despite the
volatilities of external environment amid the Covid resurgence."
said Mr. Ning Tang, Chairman and
Chief Executive Officer of Yiren Digital.
"As we previously projected, our insurance brokerage business
continued its strong momentum in the fourth quarter of 2022. Total
premium reached more than RMB1.3
billion, representing a 34% increase quarter over quarter
and over 50% growth year on year. In the year of 2022, our total
premium rocketed by 61% to appropriately RMB4 billion, significantly outperforming the
industry average of 4.6% annual growth rate. As of December 31, 2022, Hexiang Insurance Brokers had
established approximately 40 offline branches nationwide and
offered over 840 insurance products from more than 100
insurers."
"Regarding credit-tech business, our total loan volume reached
RMB6.8 billion in the fourth quarter
of 2022, representing an 8% increase quarter over quarter despite
the pandemic resurgence and the infection peak post the reopening
in November and December. The momentum is mainly driven by our
consumer loan business. In this quarter, our small revolving loan
took close to 80% of our total loan volume, compared to 65% in the
same period of 2021, reflecting a vivid transition of our product
mix upon the completion of business restructuring. Loan
facilitation of our small revolving loan products reached
RMB5.3 billion this quarter, showing
a 15% quarterly increase and 32% annual growth. As our domestic
consumption starts to recover, we expect the momentum to continue
in the coming quarters."
"We delivered a strong profit of RMB485
million this quarter, increased by a significant 47% year
over year and 80% quarter over quarter. For the full year of 2022,
total net profit reached RMB1.2
billion, showing an increase of 16% compared to the prior
year despite the impact from the closure of our offline business
line that leads to a declined full year revenue. Net profit margin
climbed to 35% in 2022 from 23% in 2021, a vivid reflection of our
fruitful efforts in optimizing unit economics via business
transitions and cost control." said Ms. Na
Mei, Chief Financial Officer of Yiren Digital. "On the
balance sheet side, our cash position grew stronger with usable
cash reaching RMB5.2 billion, an 11%
increase compared to the end of last quarter, paving a solid
foundation for us to expand our business and seize any new
opportunities in the future."
Fourth Quarter 2022 Financial Results
Total net revenue in the fourth quarter of 2022 was
RMB1,088.1 million (US$157.8 million), representing an increase of
6.6% from RMB1,020.9 million in the
same period of 2021. Particularly, revenue from credit-tech
business was RMB639.2 million
(US$92.7 million) in the fourth
quarter of 2022, representing an increase of 3.8% from RMB615.5 million in the same period of 2021. The
increase was due to an increase of our small revolving loan
products amid strong demand of consumption. Revenue from holistic
wealth business was RMB319.8 million
(US$46.4 million) in the fourth
quarter of 2022, representing a decrease of 14.1% from RMB372.3 million in the fourth quarter of 2021.
The decrease was due to the change of product mix.
Sales and marketing expenses in the fourth quarter
of 2022 were RMB103.4 million
(US$15.0 million), compared to
RMB304.1 million in the same period
of 2021. The decrease was primarily due to the optimization of cost
structure for our offline business.
Origination, servicing and other operating costs in
the fourth quarter of 2022 were RMB211.6
million (US$30.7 million),
which remained stable compared to RMB216.8
million in the same period of 2021.
General and administrative expenses in the fourth
quarter of 2022 were RMB85.3 million
(US$12.4 million), compared to
RMB119.4 million in the same period
of 2021. The decrease was mainly due to the optimization of the
Company's offline business and overall improvement of cost
efficiency.
Allowance for contract assets, receivables and others in
the fourth quarter of 2022 was RMB55.7
million (US$8.1 million),
compared to RMB51.9 million in the
same period of 2021. The increase was primarily driven by the
increase of loan volume facilitated.
Income tax expense in the fourth quarter of 2022 was
RMB159.3 million (US$23.1 million).
Net income in the fourth quarter of 2022 was
RMB485.2 million (US$70.4 million), as compared to RMB330.8 million in the same period of 2021. The
increase was primarily due to the recovery of business volume and
optimization of our business structure. Net income margin increased
to 44.6% in the fourth quarter of 2022 from 32.4% in the same
period of 2021 due to the improved cost efficiency.
Adjusted
EBITDA[3] (non-GAAP) in the
fourth quarter of 2022 was RMB654.1
million (US$93.5 million),
compared to RMB353.4 million in the
same period of 2021.
Basic and diluted income per ADS in the fourth
quarter of 2022 were RMB5.4
(US$0.8) and RMB5.4 (US$0.8)
respectively, compared to a basic per ADS of RMB3.9 and a diluted per ADS of RMB3.9 in the same period of 2021.
Net cash generated from operating activities in the
fourth quarter of 2022 was RMB471.9
million (US$68.4 million),
compared to RMB189.4 million in the
same period of 2021.
Net cash provided by investing activities in the
fourth quarter of 2022 was RMB283.1
million (US$41.1 million),
compared to RMB381.9 million in the
same period of 2021.
As of December 31, 2022, cash and
cash equivalents were RMB4,271.9
million (US$619.4 million),
compared to RMB3,613.0 million as of
September 30, 2022. As of
December 31, 2022, the balance of
held-to-maturity investments was RMB2.7 million (US$0.4 million), compared to RMB1.8 million as of September 30, 2022. As of December 31, 2022, the balance of
available-for-sale investments was RMB972.7
million (US$141.0 million),
compared to RMB1,109.4 million as of
September 30, 2022.
Delinquency rates. As of December
31, 2022, the delinquency rates for loans that are past due
for 15-29 days, 30-59 days and 60-89 days were 0.7%, 1.3% and 1.1%
respectively, compared to 0.9%, 1.5% and 1.2% respectively as of
December 31, 2021.
Cumulative M3+ net charge-off rates. As
December 31, 2022, the cumulative M3+
net charge-off rates for loans originated in 2019, 2020 and 2021
were 11.6%, 8.1% and 6.5% respectively, as compared to 11.7%, 8.0%
and 6.1% respectively as of September 30,
2022.
[1] Active clients refer to those who
have made at least one investment through our holistic wealth
ecosystem or have client assets above zero in the past twelve
months.
|
[2] 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 clients on
our platforms.
|
[3] "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
Reconciliation of GAAP to Non-GAAP Measures" and the table
captioned "Reconciliation of Adjusted EBITDA" set forth at the end
of this press release.
|
Fiscal Year 2022 Financial Results
Total net revenue in 2022 was RMB3,434.6 million (US$498.0 million), compared to RMB4,477.9 million in 2021. Specifically, revenue
from credit-tech business in 2022 was RMB1,959.7 million (US$284.1 million), and revenue from holistic
wealth business in 2022 was RMB1,172.0
million (US$169.9 million).
The decrease in 2022 full year revenue was primarily due to the
transition of our business structure.
Sales and marketing expenses in 2022 was RMB574.0 million (US$83.2
million), compared to RMB1,553.3
million in 2021. The decrease was primarily due to the
optimization of the Company's offline business and the improvement
of our cost efficiency.
Origination, servicing and other operating costs in 2022
was RMB776.8 million (US$112.6 million), which remained stable compared
to RMB760.9 million in 2021.
General and administrative expenses in 2022 was
RMB423.7 million (US$61.4 million), compared to RMB506.2 million in 2021. The decrease was
primarily due to the optimization of our offline business and the
overall improvement of cost efficiency.
Allowance for contract assets, receivables and others in
2022 was RMB188.2 million
(US$27.3 million), compared to
RMB370.2 million in 2021. The decline
was due to the business structure transition and product mix
optimization.
Income tax expense in 2022 was RMB300.5 million (US$43.6
million).
Net income in 2022 was RMB1,194.9 million (US$173.2 million), compared to RMB1,033.0 million in 2021. The increase was
driven by the resumption of business growth and the optimization of
cost structure post business transitions. Net income margin
increased to 34.8% in 2022 from 23.1% in 2021 due to the improved
cost efficiency and asset quality.
Adjusted EBITDA (non-GAAP) in 2022 was RMB1,570.3 million (US$227.7 million), compared to RMB1,338.9 million in 2021. Adjusted EBITDA
margin (non-GAAP) in 2022 was 45.7%, compared to 29.9% in 2021.
Basic and diluted income per ADS in 2022 were
RMB13.7 (US$2.0) and RMB13.6 (US$2.0)
respectively, compared to a basic per ADS of RMB12.2 and a diluted per ADS of RMB12.1 in 2021.
Net cash generated from operating activities in 2022 was
RMB1,849.4 million (US$268.1 million), compared to RMB158.2 million in 2021.
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 2023 to be between RMB3.6
billion to RMB4 billion, with
net profit margin expected to remain stable.
This is the Company's current and preliminary view, which is
subject to changes and uncertainties.
Conference Call
The Company will host an earnings conference call at
8:00 a.m. U.S. Eastern Time on
March 16, 2023 (or 8:00 p.m. Beijing/Hong Kong Time on March 16, 2023).
Participants who wish to join the call should register online in
advance of the conference at:
https://s1.c-conf.com/diamondpass/10029325-jd4z98.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/2tasepf4
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 RMB6.8972
to US$1.00, the effective noon buying
rate on December 30, 2022, as set
forth in the H.10 statistical release of the Federal Reserve
Board.
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 digital personal financial
management platform in China. The
Company provides customized, asset allocation-based holistic wealth
solutions to China's mass affluent
population as well as provides 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,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
services
|
410,988
|
|
334,162
|
|
525,137
|
|
76,138
|
|
|
2,105,776
|
|
1,362,685
|
|
197,571
|
Post-origination
services
|
49,861
|
|
74,433
|
|
37,616
|
|
5,454
|
|
|
174,255
|
|
204,336
|
|
29,626
|
Insurance brokerage
services
|
244,780
|
|
189,019
|
|
199,027
|
|
28,856
|
|
|
755,691
|
|
731,797
|
|
106,101
|
Financing
services
|
140,027
|
|
54,702
|
|
35,940
|
|
5,211
|
|
|
524,840
|
|
278,783
|
|
40,420
|
Electronic commerce
services
|
33,114
|
|
52,954
|
|
129,154
|
|
18,725
|
|
|
33,114
|
|
302,896
|
|
43,916
|
Others
|
142,170
|
|
135,385
|
|
161,202
|
|
23,372
|
|
|
884,253
|
|
554,123
|
|
80,339
|
Total net
revenue
|
1,020,940
|
|
840,655
|
|
1,088,076
|
|
157,756
|
|
|
4,477,929
|
|
3,434,620
|
|
497,973
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
304,114
|
|
136,406
|
|
103,427
|
|
14,995
|
|
|
1,553,344
|
|
573,974
|
|
83,218
|
Origination,servicing
and other
operating costs
|
216,751
|
|
223,622
|
|
211,591
|
|
30,678
|
|
|
760,858
|
|
776,841
|
|
112,631
|
General and
administrative
|
119,364
|
|
109,947
|
|
85,259
|
|
12,361
|
|
|
506,240
|
|
423,718
|
|
61,433
|
Allowance for contract
assets,
receivables and others
|
51,911
|
|
35,074
|
|
55,747
|
|
8,083
|
|
|
370,154
|
|
188,223
|
|
27,291
|
Total operating costs
and expenses
|
692,140
|
|
505,049
|
|
456,024
|
|
66,117
|
|
|
3,190,596
|
|
1,962,756
|
|
284,573
|
Other
(expenses)/income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
(expense)/income, net
|
(18,056)
|
|
(378)
|
|
3,439
|
|
499
|
|
|
(73,383)
|
|
(26,302)
|
|
(3,813)
|
Fair value adjustments
related to
Consolidated ABFE
|
11,720
|
|
2,077
|
|
(2,962)
|
|
(429)
|
|
|
(37,442)
|
|
18,900
|
|
2,740
|
Others, net
|
2,935
|
|
3,035
|
|
11,991
|
|
1,738
|
|
|
26,665
|
|
30,921
|
|
4,483
|
Total other
(expenses)/income
|
(3,401)
|
|
4,734
|
|
12,468
|
|
1,808
|
|
|
(84,160)
|
|
23,519
|
|
3,410
|
Income before provision
for income taxes
|
325,399
|
|
340,340
|
|
644,520
|
|
93,447
|
|
|
1,203,173
|
|
1,495,383
|
|
216,810
|
Income tax
(benefit)/expense
|
(5,366)
|
|
70,020
|
|
159,285
|
|
23,095
|
|
|
170,189
|
|
300,512
|
|
43,570
|
Net income
|
330,765
|
|
270,320
|
|
485,235
|
|
70,352
|
|
|
1,032,984
|
|
1,194,871
|
|
173,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary
shares outstanding, basic
|
169,967,125
|
|
179,409,525
|
|
179,211,437
|
|
179,211,437
|
|
|
169,029,826
|
|
174,695,959
|
|
174,695,959
|
Basic income per
share
|
1.9461
|
|
1.5067
|
|
2.7076
|
|
0.3926
|
|
|
6.1113
|
|
6.8397
|
|
0.9917
|
Basic income per
ADS
|
3.8922
|
|
3.0134
|
|
5.4152
|
|
0.7852
|
|
|
12.2226
|
|
13.6794
|
|
1.9834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary
shares outstanding, diluted
|
171,171,951
|
|
179,841,065
|
|
179,628,555
|
|
179,628,555
|
|
|
170,590,203
|
|
175,391,332
|
|
175,391,332
|
Diluted income per
share
|
1.9324
|
|
1.5031
|
|
2.7013
|
|
0.3917
|
|
|
6.0554
|
|
6.8126
|
|
0.9877
|
Diluted income per
ADS
|
3.8648
|
|
3.0062
|
|
5.4026
|
|
0.7834
|
|
|
12.1108
|
|
13.6252
|
|
1.9754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed
Consolidated
Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from
operating
activities
|
189,377
|
|
342,888
|
|
471,890
|
|
68,418
|
|
|
158,192
|
|
1,849,430
|
|
268,142
|
Net cash provided
by/(used in) investing
activities
|
381,870
|
|
(835,064)
|
|
283,145
|
|
41,052
|
|
|
(346,507)
|
|
52,559
|
|
7,620
|
Net cash (used
in)/provided by financing
activities
|
(45,831)
|
|
(276,198)
|
|
(54,551)
|
|
(7,909)
|
|
|
427,446
|
|
(489,123)
|
|
(70,916)
|
Effect of foreign
exchange rate changes
|
(283)
|
|
2,284
|
|
(1,107)
|
|
(160)
|
|
|
(936)
|
|
2,485
|
|
360
|
Net increase/(decrease)
in cash, cash
equivalents and restricted cash
|
525,133
|
|
(766,090)
|
|
699,377
|
|
101,401
|
|
|
238,195
|
|
1,415,351
|
|
205,206
|
Cash, cash equivalents
and restricted cash,
beginning of period
|
2,420,210
|
|
4,427,408
|
|
3,661,318
|
|
530,840
|
|
|
2,707,148
|
|
2,945,344
|
|
427,035
|
Cash, cash equivalents
and restricted cash,
end of period
|
2,945,343
|
|
3,661,318
|
|
4,360,695
|
|
632,241
|
|
|
2,945,343
|
|
4,360,695
|
|
632,241
|
Unaudited Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
As of
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
2,864,543
|
|
3,612,972
|
|
4,271,899
|
|
619,367
|
Restricted
cash
|
80,800
|
|
48,346
|
|
88,796
|
|
12,874
|
Accounts
receivable
|
305,018
|
|
274,623
|
|
221,004
|
|
32,044
|
Contract
assets, net
|
1,105,905
|
|
502,936
|
|
626,739
|
|
90,869
|
Contract
cost
|
9,959
|
|
1,610
|
|
787
|
|
114
|
Prepaid
expenses and other assets
|
352,015
|
|
361,258
|
|
321,411
|
|
46,600
|
Loans at
fair value
|
73,734
|
|
11,109
|
|
54,049
|
|
7,836
|
Financing
receivables
|
1,697,962
|
|
713,411
|
|
514,388
|
|
74,579
|
Amounts
due from related parties
|
879,256
|
|
1,124,738
|
|
1,266,232
|
|
183,586
|
Held-to-maturity investments
|
2,200
|
|
1,800
|
|
2,700
|
|
391
|
Available-for-sale investments
|
177,360
|
|
1,109,408
|
|
972,738
|
|
141,034
|
Property,
equipment and software, net
|
102,548
|
|
82,184
|
|
77,256
|
|
11,201
|
Deferred
tax assets
|
7,388
|
|
102,934
|
|
84,187
|
|
12,206
|
Right-of-use assets
|
80,752
|
|
39,133
|
|
33,909
|
|
4,916
|
Total assets
|
7,739,440
|
|
7,986,462
|
|
8,536,095
|
|
1,237,617
|
Accounts
payable
|
19,065
|
|
31,711
|
|
14,144
|
|
2,050
|
Amounts
due to related parties
|
434,127
|
|
244,185
|
|
227,724
|
|
33,017
|
Deferred
revenue
|
12,379
|
|
526
|
|
65,539
|
|
9,502
|
Payable to
investors at fair value
|
50,686
|
|
39,598
|
|
-
|
|
-
|
Accrued
expenses and other liabilities
|
1,182,783
|
|
1,234,738
|
|
1,315,006
|
|
190,658
|
Secured
borrowings
|
1,028,600
|
|
767,900
|
|
767,900
|
|
111,335
|
Refund
liability
|
5,732
|
|
351
|
|
-
|
|
-
|
Deferred
tax liabilities
|
112,535
|
|
78,819
|
|
79,740
|
|
11,561
|
Lease
liabilities
|
72,101
|
|
40,968
|
|
35,229
|
|
5,108
|
Total
liabilities
|
2,918,008
|
|
2,438,796
|
|
2,505,282
|
|
363,231
|
Ordinary
shares
|
123
|
|
129
|
|
129
|
|
19
|
Additional
paid-in capital
|
5,100,486
|
|
5,158,676
|
|
5,160,783
|
|
748,243
|
Treasury
stock
|
(42,897)
|
|
(42,897)
|
|
(46,734)
|
|
(6,776)
|
Accumulated other comprehensive
income
|
11,553
|
|
7,509
|
|
7,765
|
|
1,126
|
Accumulated deficit
|
(247,833)
|
|
424,249
|
|
908,870
|
|
131,774
|
Total equity
|
4,821,432
|
|
5,547,666
|
|
6,030,813
|
|
874,386
|
Total liabilities and
equity
|
7,739,440
|
|
7,986,462
|
|
8,536,095
|
|
1,237,617
|
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,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Operating
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of investment in
current investment
products
|
5,391,760
|
|
4,476,390
|
|
6,502,061
|
|
942,710
|
|
|
21,588,645
|
|
21,897,031
|
|
3,174,771
|
Number of investors in
current investment
products
|
144,987
|
|
176,787
|
|
107,692
|
|
107,692
|
|
|
409,281
|
|
506,310
|
|
506,310
|
Amount of loans
facilitated under loan
facilitation model
|
6,170,158
|
|
6,298,522
|
|
6,783,523
|
|
983,518
|
|
|
23,195,224
|
|
22,623,101
|
|
3,280,041
|
Number of
borrowers
|
618,131
|
|
737,320
|
|
862,226
|
|
862,226
|
|
|
1,297,046
|
|
1,606,893
|
|
1,606,893
|
Remaining principal of
performing loans
facilitated under loan facilitation model
|
14,102,279
|
|
10,630,352
|
|
11,259,763
|
|
1,632,512
|
|
|
14,102,279
|
|
11,259,763
|
|
1,632,512
|
Gross merchandise
volume
|
61,619
|
|
249,624
|
|
292,086
|
|
42,348
|
|
|
61,619
|
|
687,848
|
|
99,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holistic
Wealth:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
372,304
|
|
294,332
|
|
319,755
|
|
46,360
|
|
|
1,260,513
|
|
1,171,992
|
|
169,923
|
Sales and marketing
expenses
|
75,842
|
|
46,698
|
|
44,661
|
|
6,475
|
|
|
199,336
|
|
187,141
|
|
27,133
|
Origination,servicing
and other operating costs
|
156,243
|
|
165,605
|
|
157,342
|
|
22,812
|
|
|
598,606
|
|
561,080
|
|
81,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
615,522
|
|
493,369
|
|
639,167
|
|
92,671
|
|
|
3,184,302
|
|
1,959,732
|
|
284,134
|
Sales and marketing
expenses
|
227,508
|
|
88,714
|
|
58,016
|
|
8,412
|
|
|
1,353,244
|
|
383,950
|
|
55,668
|
Origination,servicing
and other operating costs
|
53,396
|
|
39,951
|
|
38,085
|
|
5,522
|
|
|
155,140
|
|
151,539
|
|
21,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
33,114
|
|
52,954
|
|
129,154
|
|
18,725
|
|
|
33,114
|
|
302,896
|
|
43,916
|
Sales and marketing
expenses
|
764
|
|
994
|
|
750
|
|
108
|
|
|
764
|
|
2,883
|
|
417
|
Origination,servicing
and other operating costs
|
7,112
|
|
18,066
|
|
16,164
|
|
2,344
|
|
|
7,112
|
|
64,222
|
|
9,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
330,765
|
|
270,320
|
|
485,235
|
|
70,352
|
|
|
1,032,984
|
|
1,194,871
|
|
173,240
|
Interest
expense/(income), net
|
18,056
|
|
378
|
|
(3,439)
|
|
(499)
|
|
|
73,383
|
|
26,302
|
|
3,813
|
Income (benefit)/tax
expense
|
(5,366)
|
|
70,020
|
|
159,285
|
|
23,095
|
|
|
170,189
|
|
300,512
|
|
43,570
|
Depreciation and
amortization
|
7,466
|
|
8,514
|
|
2,537
|
|
368
|
|
|
43,236
|
|
26,430
|
|
3,832
|
Share-based
compensation
|
2,497
|
|
15,760
|
|
1,494
|
|
217
|
|
|
19,089
|
|
22,136
|
|
3,209
|
Adjusted
EBITDA
|
353,418
|
|
364,992
|
|
645,112
|
|
93,533
|
|
|
1,338,881
|
|
1,570,251
|
|
227,664
|
Adjusted EBITDA
margin
|
34.6 %
|
|
43.4 %
|
|
59.3 %
|
|
59.3 %
|
|
|
29.9 %
|
|
45.7 %
|
|
45.7 %
|
Delinquency Rates
(Loan Facilitation Model)
|
|
|
15-29
days
|
|
30-59
days
|
|
60-89
days
|
All
Loans
|
|
|
|
|
|
|
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 %
|
March 31,
2022
|
|
0.9 %
|
|
2.0 %
|
|
1.9 %
|
June 30,
2022
|
|
0.6 %
|
|
1.4 %
|
|
1.5 %
|
Septempber 30,
2022
|
0.7 %
|
|
1.1 %
|
|
1.0 %
|
December 31,
2022
|
0.7 %
|
|
1.3 %
|
|
1.1 %
|
|
|
|
|
|
|
|
Online
Channels
|
|
|
|
|
|
December 31,
2019
|
1.0 %
|
|
2.1 %
|
|
1.6 %
|
December 31,
2020
|
0.6 %
|
|
1.0 %
|
|
1.1 %
|
December 31,
2021
|
0.8 %
|
|
1.3 %
|
|
1.1 %
|
March 31,
2022
|
|
0.7 %
|
|
1.5 %
|
|
1.3 %
|
June 30,
2022
|
|
0.6 %
|
|
1.1 %
|
|
1.2 %
|
Septempber 30,
2022
|
0.6 %
|
|
0.9 %
|
|
0.8 %
|
December 31,
2022
|
0.7 %
|
|
1.1 %
|
|
0.9 %
|
|
|
|
|
|
|
|
Offline
Channels
|
|
|
|
|
|
December 31,
2019
|
0.7 %
|
|
0.9 %
|
|
0.7 %
|
December 31,
2020
|
0.4 %
|
|
0.6 %
|
|
0.4 %
|
December 31,
2021
|
1.0 %
|
|
1.8 %
|
|
1.4 %
|
March 31,
2022
|
|
1.1 %
|
|
2.7 %
|
|
2.9 %
|
June 30,
2022
|
|
0.8 %
|
|
2.0 %
|
|
2.3 %
|
Septempber 30,
2022
|
1.3 %
|
|
1.9 %
|
|
1.9 %
|
December 31,
2022
|
1.2 %
|
|
2.2 %
|
|
2.3 %
|
Net Charge-Off Rate
(Loan Facilitation Model)
|
Loan
Issued
Period
|
|
Amount of Loans
Facilitated
During the Period
|
|
Accumulated M3+
Net
Charge-Off
as of December 31,
2022
|
|
Total Net
Charge-Off
Rate
as of December 31,
2022
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2019
|
|
3,431,443
|
|
398,602
|
|
11.6 %
|
2020
|
|
9,614,819
|
|
780,798
|
|
8.1 %
|
2021
|
|
23,195,224
|
|
1,513,766
|
|
6.5 %
|
2022Q1-Q3
|
|
15,839,577
|
|
316,444
|
|
2.0 %
|
M3+ Net Charge-Off
Rate (Loan Facilitation Model)
|
Loan
Issued
Period
|
|
Month on
Book
|
|
|
4
|
7
|
10
|
13
|
16
|
19
|
22
|
25
|
28
|
31
|
34
|
2019Q1
|
|
0.0 %
|
0.8 %
|
2.0 %
|
3.4 %
|
5.3 %
|
5.9 %
|
6.3 %
|
6.3 %
|
6.3 %
|
6.3 %
|
6.3 %
|
2019Q2
|
|
0.1 %
|
1.5 %
|
4.5 %
|
7.5 %
|
8.8 %
|
9.2 %
|
9.9 %
|
10.3 %
|
10.6 %
|
10.6 %
|
10.6 %
|
2019Q3
|
|
0.2 %
|
2.9 %
|
6.8 %
|
9.0 %
|
10.4 %
|
12.0 %
|
13.2 %
|
13.8 %
|
14.4 %
|
14.6 %
|
14.6 %
|
2019Q4
|
|
0.4 %
|
3.1 %
|
4.9 %
|
6.3 %
|
7.2 %
|
7.9 %
|
8.4 %
|
8.9 %
|
9.5 %
|
9.8 %
|
9.8 %
|
2020Q1
|
|
0.6 %
|
2.3 %
|
4.1 %
|
5.2 %
|
6.0 %
|
6.2 %
|
6.6 %
|
7.2 %
|
7.7 %
|
7.9 %
|
|
2020Q2
|
|
0.5 %
|
2.5 %
|
4.2 %
|
5.3 %
|
6.1 %
|
6.7 %
|
7.5 %
|
8.1 %
|
8.2 %
|
|
|
2020Q3
|
|
1.1 %
|
3.3 %
|
5.1 %
|
6.3 %
|
7.1 %
|
8.1 %
|
8.7 %
|
8.8 %
|
|
|
|
2020Q4
|
|
0.3 %
|
1.8 %
|
3.2 %
|
4.6 %
|
6.0 %
|
7.0 %
|
7.4 %
|
|
|
|
|
2021Q1
|
|
0.4 %
|
2.3 %
|
3.9 %
|
5.5 %
|
6.6 %
|
6.9 %
|
|
|
|
|
|
2021Q2
|
|
0.4 %
|
2.4 %
|
4.5 %
|
5.9 %
|
6.4 %
|
|
|
|
|
|
|
2021Q3
|
|
0.5 %
|
3.1 %
|
5.0 %
|
5.9 %
|
|
|
|
|
|
|
|
2021Q4
|
|
0.6 %
|
3.2 %
|
4.6 %
|
|
|
|
|
|
|
|
|
2022Q1
|
|
0.6 %
|
2.6 %
|
|
|
|
|
|
|
|
|
|
2022Q2
|
|
0.4 %
|
|
|
|
|
|
|
|
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content:https://www.prnewswire.com/news-releases/yiren-digital-reports-fourth-quarter-and-fiscal-year-2022-financial-results-301773958.html
SOURCE Yiren Digital