Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024

Commission File Number: 001-37657

YIREN DIGITAL LTD.

28/F, China Merchants Bureau Building

118 Jianguo Road

Chaoyang District, Beijing 100022

The People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F

Form 40-F

Exhibit Index

Exhibit No.		Description

99.1		Yiren Digital Reports Second Quarter 2024 Financial Results

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Yiren Digital Ltd.

By:	/s/ Na Mei
	Name:	Na Mei
	Title:	Chief Financial Officer

Date: August 20, 2024

Exhibit 99.1

Yiren Digital Reports Second Quarter 2024 Financial Results

BEIJING – August 20, 2024 – 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 June 30, 2024.

Second Quarter 2024 Operational Highlights

Financial Services Business

Total loans facilitated in the second quarter of 2024 reached RMB12.9 billion (US$1.8 billion), representing an increase of 8.6% from RMB11.9 billion in the first quarter of 2024 and compared to RMB8.2 billion in the same period of 2023.

Cumulative number of borrowers served reached 10,807,497 as of June 30, 2024, representing an increase of 8.3% from 9,978,280 as of March 31, 2024, and compared to 8,002,372 as of June 30, 2023.

Number of borrowers served in the second quarter of 2024 was 1,491,756, representing an increase of 10.3% from 1,352,200 in the first quarter of 2024 and compared to 1,013,972 in the same period of 2023. The increase was due to our ongoing effort in customer acquisition and user experience enhancement.

Outstanding balance of performing loans facilitated reached RMB21.8 billion (US$3.0 billion) as of June 30, 2024, representing an increase of 8.3% from RMB20.2 billion as of March 31, 2024 and compared to RMB12.8 billion as of June 30, 2023.

Insurance Brokerage Business

Cumulative number of insurance clients served reached 1,410,158 as of June 30, 2024, representing an increase of 4.9% from 1,343,660 as of March 31, 2024, and compared to 1,133,069 as of June 30, 2023.

Number of insurance clients served in the second quarter of 2024 was 88,766, representing an increase of 20.5% from 73,687 in the first quarter of 2024 and compared to 135,449 in the same period of 2023. The increase was primarily due to the continued growth of our property insurance business.

Gross written premiums in the second quarter of 2024 were RMB1,060.9 million (US$146.0 million), representing an increase of 16.3% from RMB912.4 million in the first quarter of 2024 and compared to RMB1,332.5 million in the same period of 2023. The increase was mainly attributed to the continued expansion of our property insurance business.

Consumption and Lifestyle Business

Total gross merchandise volume generated through our e-commerce platform and “Yiren Select” channel reached RMB554.6 million (US$76.3 million) in the second quarter of 2024, representing a decrease of 11.3% from RMB625.1 million in the first quarter of 2024 and compared to RMB395.8 million in the same period of 2023. The decrease was mainly due to the already high penetration of our products and services within the existing customer pool, along with our strategic scale-back in product offerings as we shift our focus to upgrading customer segmentation.

“Despite the evolving market environment, we are pleased to report another solid quarter with strong unit economics, reflecting the resilience of our business structure and operational strategies, as well as our commitment to quality growth over mere expansion.” said Mr. Ning Tang, Chairman and Chief Executive Officer.

“Our continued investments in AI and the seamless integration of technological innovations into our operations have fostered dual growth in both technological advancements and operational efficiency. Our strategic direction positions us well to evolve into a leading AI-driven platform, paving the way for groundbreaking solutions and setting new industry standards.”

“In the second quarter of 2024, our total revenue reached RMB 1.5 billion, representing 13% increase year-over-year. We generate approximately RMB 369 million net cash from operation in this quarter, remaining healthy and strong.” Ms. Na Mei, Chief Financial Officer commented. “On the balance sheet side, our balance sheet remained strong with RMB 5.5 billion in cash and cash equivalents as of the end of this quarter and we are exploring diversified ways to enhance our shareholder returns. Through both our cash dividend policy and share buybacks, we aim to reward our shareholders for their long-term trust and support, while also boosting market confidence.”

Second Quarter 2024 Financial Results

Total net revenue in the second quarter of 2024 was RMB1,496.5 million (US$205.9 million), representing an increase of 13.0% from RMB1,324.2 million in the second quarter of 2023. Particularly, in the second quarter of 2024, revenue from financial services business was RMB851.0 million (US$117.1 million), representing an increase of 46.2% from RMB582.0 million in the same period of 2023. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB91.5 million (US$12.6 million), representing a decrease of 77.4% from RMB404.7 million in the second quarter of 2023. The decrease was primarily driven by a decline in life insurance sales, resulting from product modifications mandated by new regulations, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB554.0 million (US$76.2 million), representing an increase of 64.1% from RMB337.5 million in the second quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the second quarter of 2024, the growth rate is expected to moderate.

Sales and marketing expenses in the second quarter of 2024 were RMB285.1 million (US$39.2 million), compared to RMB148.9 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new, high-caliber customers while optimizing our customer composition.

Origination, servicing and other operating costs in the second quarter of 2024 were RMB246.5million (US$33.9 million), compared to RMB346.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services.

Research and development expenses¹ in the second quarter of 2024 were RMB55.8 million (US$7.7 million), compared to RMB33.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.

General and administrative expenses in the second quarter of 2024 were RMB68.7 million (US$9.4 million), compared to RMB63.7 million in the same period of 2023. The increase was primarily due to personnel adjustments.

Allowance for contract assets, receivables and others in the second quarter of 2024 was RMB123.3 million (US$17.0 million), compared to RMB48.9 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the more stringent risk estimates in response to the evolving external credit environment.

Provision for contingent liabilities in the second quarter of 2024 was RMB278.9 million (US$38.4 million), compared to RMB12.0 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model².

Income tax expense in the second quarter of 2024 was RMB92.0 million (US$12.7 million).

Net income in the second quarter of 2024 was RMB409.5 million (US$56.4 million), as compared to RMB527.3 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles.

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.

²The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.

Adjusted EBITDA³ (non-GAAP) in the second quarter of 2024 was RMB481.1 million (US$66.2 million), compared to RMB661.7 million in the same period of 2023.

Basic and diluted income per ADS in the second quarter of 2024 were RMB4.7 (US$0.7) and RMB4.7 (US$0.6) respectively, compared to a basic income per ADS of RMB6.0 and a diluted income per ADS of RMB5.9 in the same period of 2023.

Net cash generated from operating activities in the second quarter of 2024 was RMB368.9 million (US$50.8 million), compared to RMB718.1 million in the same period of 2023.

Net cash used in investing activities in the second quarter of 2024 was RMB536.9 million (US$73.9 million), compared to RMB20.0 million in the same period of 2023.

Net cash used in financing activities in the second quarter of 2024 was RMB125.9 million (US$17.3 million), compared to RMB6.1 million in the same period of 2023.

As of June 30, 2024, cash and cash equivalents were RMB5,496.9 million (US$756.4 million), compared to RMB5,904.0 million as of March 31, 2024. As of June 30, 2024, the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million), decreased 51.2% from March 31, 2024. As of June 30, 2024, the balance of available-for-sale investments was RMB329.8 million (US$45.4 million), compared to RMB379.5 million as of March 31, 2024. As of June 30, 2024, the balance of trading securities was RMB83.9 million (US$11.5 million), compared to RMB78.0 million as of March 31, 2024.

Delinquency rates. As of June 30, 2024, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.8%, 1.4% and 1.6%, respectively, compared to 0.9%, 1.6% and 1.4%, respectively, as of March 31, 2024.

Cumulative M3+ net charge-off rates. As of June 30, 2024, the cumulative M3+ net charge-off rates for loans originated in 2021, 2022 and 2023 were 6.1%, 4.6% and 5.9%, respectively, as compared to 6.3%, 4.7% and 3.9%, respectively, as of March 31, 2024.

Management Change

The Company announces that Ms. Na Mei will resign from her position as Chief Financial Officer due to personal reasons effective as of the close of business on August 20,2024 New York time. Ms. Mei will continue to serve CreditEase, Yiren Digital’s parent company, and assist in ensuring a smooth transition to the new CFO. The board of directors of the Company (the “Board”) extends its gratitude to Ms. Mei for her dedicated service and significant contributions during her tenure.

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 Reconciliations of GAAP to Non-GAAP Measures” and the table captioned “Reconciliations of Adjusted EBITDA” set forth at the end of this press release.

Following this development, the Board has appointed Mr. Yuning Feng as the new Chief Financial Officer to succeed Ms. Mei. Mr. Feng brings extensive experience and expertise in investment banking and financial control to the role, and the Board is confident in his ability to lead the Company’s financial operations with distinction.

Mr. Feng possesses over a decade of experience in venture capital investment, investment banking and financial control. Before joining Yiren Digital, he was a partner at CE Innovation Capital, from 2015 to 2018 and from 2021 to 2024. In this role, he led investments in fintech, enterprise solutions, and AI sectors, managed investment portfolios, and contributed to fundraising and fund management. From 2018 to 2021, Mr. Feng served as an investment banker at China Renaissance, specializing in corporate finance for fintech and enterprise solutions companies, where he established strong connections with a variety of companies and investors. Earlier in his career, Mr. Feng was a financial controller at Goldman Sachs and UBS from 2008 to 2012. He received a bachelor’s degree from Beijing Foreign Studies University in 2008 and an MBA from the University of Warwick in 2014.

Dividend Policy

The Company is pleased to announce that the Board has approved a semi-annual dividend policy, reflecting our commitment to delivering value to our shareholders. Pursuant to the policy, the Board plans to declare semi-annual dividends at an amount equivalent to no less than 10% of the Company’s anticipated net income after tax in each half year commencing from the first half of 2024. The determination to declare and pay such semi-annual dividends and the amount of dividends in any particular half year will be made at the discretion of the Board and will be based upon the Company’s operations, earnings, cash flow, financial condition and other relevant factors that the Board may deem appropriate.

The cash dividend for the first half of 2024, a payment of US$0.2 per American depositary share (the “ADS”), each representing two ordinary shares of the Company, par value US$0.0001 per share, is expected to be paid on or about October 15, 2024, to holders of the Company’s ordinary shares and ADSs of record as of the close of business on September 30, 2024, Hong Kong time and New York time, respectively.

Update on Share Repurchase

In September 2022, the Board authorized a share repurchase program under which the Company may repurchase up to US$20 million worth of its ADSs. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management.

In the second quarter of 2024, the Company allocated US$4.0 million to repurchase shares in the public market. As of June 30, 2024, the Company had in aggregate purchased approximately 4.3 million ADSs in the open market for a total amount of approximately US$13.5 million (exclusive of commissions) under the 2022 share repurchase program.

Business Outlook

Based on the Company’s preliminary assessment of business and market conditions, the Company projects the total revenue in the third quarter of 2024 to be between RMB1.4 billion to RMB1.5 billion, with a healthy net profit margin.

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 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 RMB7.2672 to US$1.00, the effective noon buying rate on June 28, 2024, 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 August 20, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on August 20, 2024).

Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10191859/fd4b40278f

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://event.choruscall.com/mediaframe/webcast.html?webcastid=T01PiHJw

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.

For investor and media inquiries, please contact:

Yiren Digital

Investor Relations

Email: ir@yiren.com

Unaudited Condensed Consolidated Statements of Operations

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

	For the Three Months Ended												For the Six Months Ended
	June 30, 2023			March 31, 2024			June 30, 2024			June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2024
	RMB			RMB			RMB			USD			RMB			RMB			USD
Net revenue:
Loan facilitation services		514,353			676,295			695,532			95,708			931,518			1,371,827			188,770
Post-origination services		5,273			1,772			1,290			178			11,589			3,062			421
Insurance brokerage services		404,695			124,926			91,526			12,594			601,053			216,452			29,785
Financing services		14,896			10,666			19,574			2,693			37,473			30,240			4,161
Electronic commerce services		287,725			502,936			523,641			72,055			530,583			1,026,577			141,262
Guarantee services		6,343			16,853			68,934			9,486			12,102			85,787			11,805
Others		90,921			44,636			96,039			13,216			186,231			140,675			19,357
Total net revenue		1,324,206			1,378,084			1,496,536			205,930			2,310,549			2,874,620			395,561
Operating costs and expenses:
Sales and marketing		148,947			277,223			285,101			39,231			255,159			562,324			77,378
Origination,servicing and other operating costs		346,367			233,270			246,542			33,925			546,112			479,812			66,024
Research and development		33,018			40,521			55,812			7,680			62,187			96,333			13,256
General and administrative		63,723			83,674			68,670			9,449			127,104			152,344			20,963
Allowance for contract assets, receivables and others		48,865			102,334			123,285			16,965			88,271			225,619			31,047
Provision for contingent liabilities		11,975			67,258			278,925			38,382			17,474			346,183			47,636
Total operating costs and expenses		652,895			804,280			1,058,335			145,632			1,096,307			1,862,615			256,304
Other (expenses)/income:
Interest income, net		10,535			27,713			24,668			3,394			25,054			52,381			7,208
Fair value adjustments related to Consolidated ABFE		(17,470	)		15,468			38,706			5,326			(28,673	)		54,174			7,455
Others, net		2,730			677			(11	)		(1	)		6,319			666			91
Total other (expenses)/income		(4,205	)		43,858			63,363			8,719			2,700			107,221			14,754
Income before provision for income taxes		667,106			617,662			501,564			69,017			1,216,942			1,119,226			154,011
Income tax expense		139,758			131,779			92,036			12,664			262,428			223,815			30,798
Net income		527,348			485,883			409,528			56,353			954,514			895,411			123,213

Weighted average number of ordinary shares outstanding, basic		176,929,176			174,282,443			172,831,722			172,831,722			177,353,262			173,557,082			173,557,082
Basic income per share		2.9806			2.7879			2.3695			0.3261			5.3820			5.1592			0.7099
Basic income per ADS		5.9612			5.5758			4.7390			0.6522			10.7640			10.3184			1.4198

Weighted average number of ordinary shares outstanding, diluted		179,124,032			176,202,571			174,711,554			174,711,554			179,650,148			175,457,062			175,457,062
Diluted income per share		2.9440			2.7575			2.3440			0.3225			5.3132			5.1033			0.7022
Diluted income per ADS		5.8880			5.5150			4.6880			0.6450			10.6264			10.2066			1.4044

Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from operating activities		718,058			631,743			368,908			50,763			1,108,365			1,000,651			137,693
Net cash (used in)/provided by investing activities		(19,988	)		(683,697	)		(536,883	)		(73,878	)		754,295			(1,220,580	)		(167,957	)
Net cash used in financing activities		(6,120	)		(14,774	)		(125,884	)		(17,322	)		(398,951	)		(140,658	)		(19,355	)
Effect of foreign exchange rate changes		329			1,340			(896	)		(123	)		148			444			61
Net increase/(decrease) in cash, cash equivalents and restricted cash		692,279			(65,388	)		(294,755	)		(40,560	)		1,463,857			(360,143	)		(49,558	)
Cash, cash equivalents and restricted cash, beginning of period		5,132,273			6,058,604			5,993,216			824,694			4,360,695			6,058,604			833,692
Cash, cash equivalents and restricted cash, end of period		5,824,552			5,993,216			5,698,461			784,134			5,824,552			5,698,461			784,134

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	As of
	December 31, 2023			March 31, 2024			June 30, 2024			June 30, 2024
	RMB			RMB			RMB			USD
Cash and cash equivalents		5,791,333			5,903,995			5,496,932			756,403
Restricted cash		267,271			89,221			201,529			27,731
Trading securities		76,053			77,967			83,889			11,544
Accounts receivable		499,027			610,745			654,698			90,089
Guarantee receivable		2,890			36,787			260,759			35,882
Contract assets, net		978,051			994,116			962,482			132,442
Contract cost		32			18			206			28
Prepaid expenses and other assets		423,621			1,273,040			1,662,654			228,789
Loans at fair value		677,835			655,058			473,311			65,130
Financing receivables		116,164			73,383			30,501			4,197
Amounts due from related parties		820,181			726,991			1,509,651			207,735
Held-to-maturity investments		10,420			10,420			5,087			700
Available-for-sale investments		438,084			379,489			329,829			45,386
Equity investments		-			-			2,500			344
Property, equipment and software, net		79,158			77,777			77,970			10,729
Deferred tax assets		73,414			59,260			44,309			6,097
Right-of-use assets		23,382			18,758			19,462			2,678
Total assets		10,276,916			10,987,025			11,815,769			1,625,904
Accounts payable		30,902			41,484			43,710			6,015
Amounts due to related parties		14,414			1,122			2,485			342
Guarantee liabilities-stand ready		8,802			40,583			278,656			38,344
Guarantee liabilities-contingent		28,351			81,921			336,190			46,261
Deferred revenue		54,044			46,807			38,843			5,345
Payable to investors at fair value		445,762			445,762			350,000			48,162
Accrued expenses and other liabilities		1,463,369			1,595,052			1,727,182			237,668
Deferred tax liabilities		122,075			114,222			55,520			7,640
Lease liabilities		23,648			19,025			19,280			2,653
Total liabilities		2,191,367			2,385,978			2,851,866			392,430
Ordinary shares		130			130			130			18
Additional paid-in capital		5,171,232			5,172,942			5,175,653			712,194
Treasury stock		(94,851	)		(109,444	)		(139,380	)		(19,179	)
Accumulated other comprehensive income		23,669			66,671			47,798			6,576
Retained earnings		2,985,369			3,470,748			3,879,702			533,865
Total equity		8,085,549			8,601,047			8,963,903			1,233,474
Total liabilities and equity		10,276,916			10,987,025			11,815,769			1,625,904

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 Three Months Ended												For the Six Months Ended
	June 30, 2023			March 31, 2024			June 30, 2024			June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2024
	RMB			RMB			RMB			USD			RMB			RMB			USD
Operating Highlights
Amount of loans facilitated		8,156,201			11,910,367			12,936,017			1,780,055			14,576,413			24,846,384			3,418,976
Number of borrowers		1,013,972			1,352,200			1,491,756			1,491,756			1,457,736			2,439,778			2,439,778
Remaining principal of performing loans		12,768,448			20,156,161			21,827,634			3,003,582			12,768,448			21,827,634			3,003,582
Cumulative number of insurance clients		1,133,069			1,343,660			1,410,158			1,410,158			1,133,069			1,410,158			1,410,158
Number of insurance clients		135,449			73,687			88,766			88,766			212,414			153,807			153,807
Gross written premiums		1,332,458			912,431			1,060,885			145,983			2,255,841			1,973,316			271,537
First year premium		1,101,928			514,141			577,387			79,451			1,729,243			1,091,528			150,199
Renewal premium		230,530			398,290			483,498			66,532			526,598			881,788			121,338
Gross merchandise volume		395,820			625,120			554,574			76,312			704,387			1,179,695			162,331

Segment Information
Financial services business:
Revenue		581,974			738,117			851,031			117,106			1,065,847			1,589,148			218,674
Sales and marketing expenses		103,164			251,922			253,103			34,828			165,382			505,025			69,494
Origination, servicing and other operating costs		38,961			85,787			113,234			15,582			86,570			199,021			27,386
Allowance for contract assets, receivables and others		45,754			101,127			124,765			17,168			85,976			225,892			31,084
Provision for contingent liabilities		11,975			67,258			278,925			38,382			17,474			346,183			47,636

Insurance brokerage business:
Revenue		404,695			124,926			91,526			12,594			601,053			216,452			29,785
Sales and marketing expenses		3,845			3,565			4,263			587			6,134			7,828			1,077
Origination, servicing and other operating costs		289,851			136,883			122,358			16,837			423,468			259,241			35,673
Allowance for contract assets, receivables and others		3,614			1,012			(1,502	)		(207	)		3,626			(490	)		(67	)

Consumption & lifestyle business and others:
Revenue		337,537			515,041			553,979			76,230			643,649			1,069,020			147,102
Sales and marketing expenses		41,938			21,736			27,735			3,816			83,643			49,471			6,807
Origination, servicing and other operating costs		17,555			10,600			10,950			1,506			36,074			21,550			2,965
Allowance for contract assets, receivables and others		(753	)		9			(11	)		(2	)		(1,232	)		(2	)		-

Reconciliation of Adjusted EBITDA
Net income		527,348			485,883			409,528			56,353			954,514			895,411			123,213
Interest income, net		(10,535	)		(27,713	)		(24,668	)		(3,394	)		(25,054	)		(52,381	)		(7,208	)
Income tax expense		139,758			131,779			92,036			12,664			262,428			223,815			30,798
Depreciation and amortization		1,778			1,892			2,026			279			3,646			3,918			539
Share-based compensation		3,321			1,207			2,136			294			5,410			3,343			460
Adjusted EBITDA		661,670			593,048			481,058			66,196			1,200,944			1,074,106			147,802
Adjusted EBITDA margin		50.0	%		43.0	%		32.1	%		32.1	%		52.0	%		37.4	%		37.4	%

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	%
December 31, 2023		0.9	%		1.4	%		1.2	%
March 31, 2024		0.9	%		1.6	%		1.4	%
June 30, 2024		0.8	%		1.4	%		1.6	%

Net Charge-Off Rate
Loan Issued Period	Amount of Loans Facilitated During the Period		Accumulated M3+ Net Charge-Off as of June 30, 2024		Total Net Charge- Off Rate as of June 30, 2024
	(in RMB thousands)		(in RMB thousands)
2019		3,431,443		381,533		11.1	%
2020		9,614,819		723,686		7.5	%
2021		23,195,224		1,418,075		6.1	%
2022		22,623,101		1,033,743		4.6	%
2023		36,036,301		2,126,589		5.9	%
2024Q1		11,910,367		105,205		0.9	%

	M3+ Net Charge-Off Rate
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	%	7.3	%	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	%	7.0	%
2021Q2		0.4	%	2.4	%	4.5	%	5.9	%	6.4	%	6.7	%	6.8	%	6.7	%	6.6	%	6.5	%	6.4	%
2021Q3		0.5	%	3.1	%	5.0	%	5.9	%	6.3	%	6.4	%	6.4	%	6.3	%	6.2	%	6.1	%
2021Q4		0.6	%	3.2	%	4.6	%	5.3	%	5.4	%	5.4	%	5.3	%	5.2	%	5.1	%
2022Q1		0.6	%	2.5	%	3.8	%	4.5	%	4.5	%	4.4	%	4.3	%	4.2	%
2022Q2		0.4	%	2.2	%	3.6	%	4.1	%	4.2	%	4.1	%	4.0	%
2022Q3		0.5	%	2.7	%	4.1	%	4.7	%	4.8	%	4.6	%
2022Q4		0.6	%	3.0	%	4.6	%	5.4	%	5.4	%
2023Q1		0.5	%	3.1	%	4.9	%	5.8	%
2023Q2		0.5	%	3.3	%	5.2	%
2023Q3		0.7	%	4.0	%
2023Q4		0.6	%