Yiren Digital Reviews Fourth Quarter and Fiscal 12 months 2021 Monetary Outcomes

BEIJING, Aug. 30, 2022 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Firm”), a number one digital private monetary administration platform in China, right now introduced its unaudited monetary outcomes for the fourth quarter and the fiscal yr ended December 31, 2021.

Fourth Quarter 2021 and Fiscal 12 months 2021 Operational Highlights

Wealth Administration

• Cumulative variety of traders served reached 2,702,122 as of December 31, 2021, representing a rise of three.4% from 2,612,279 as of September 30, 2021 and in comparison with 2,326,169 as of December 31, 2020.

• Variety of energetic traders^[1] was 424,366 as of December 31, 2021, representing a lower of 0.8% from 427,873 as of September 30, 2021 and in comparison with 163,593 as of December 31, 2020. The quarter-over-quarter decline was primarily on account of a decline within the insurance coverage section on account of optimization in insurance coverage product combine, which was offset by the speedy development in buyer base on Yiren Wealth platform.

• Whole shopper property^[2] was RMB19,261.Zero million (US$3,022.5 million) as of December 31, 2021, representing a rise of 10.6% from RMB17,415.Three million as of September 30, 2021 and in comparison with RMB8,550.7 million as of December 31, 2020.

• Gross sales quantity of funding merchandise amounted to RMB5,391.Eight million (US$846.1 million) within the fourth quarter of 2021, representing a rise of seven.2% from RMB5,030.2 million within the third quarter of 2021 and in comparison with RMB6,836.9 million in the identical interval of 2020. For the fiscal yr of 2021, gross sales quantity of funding merchandise reached RMB21,588.6 million (US$3,387.7 million), in comparison with RMB15,779.7 million in 2020.

Shopper Credit score

• Whole loans facilitated beneath mortgage facilitation mannequin within the fourth quarter of 2021 reached RMB6.2 billion (US$1.Zero billion), representing a lower of 9.8% from RMB6.Eight billion within the third quarter of 2021 and in comparison with RMB4.2 billion within the fourth quarter of 2020.

• Cumulative variety of debtors served reached 6,127,068 as of December 31, 2021, representing a rise of 4.9% from 5,840,424 as of September 30, 2021 and in comparison with 5,249,936 as of December 31, 2020.

• Variety of debtors served within the fourth quarter of 2021 was 618,131, representing a rise of 12.7% from 548,495 within the third quarter of 2021 and in comparison with 189,117 within the fourth quarter of 2020. Whole variety of debtors served in 2021 was 1,297,046.

• Excellent steadiness of performing loans facilitated beneath mortgage facilitation mannequin reached RMB14,102.Three million (US$2,213.Zero million) as of December 31, 2021, representing a rise of two.2% from RMB13,793.9 million as of September 30, 2021 and in comparison with RMB8,863.5 million as of December 31,2020.

Story continues

Consumption-Pushed Companies

• Within the second half of 2021, the Firm started scaling its e-commerce platform and in addition launched a “Life Plus Finance” initiative (“Yiren Choose”), integrating top quality monetary providers with on-line and offline consumption eventualities. Whole gross merchandise quantity generated by means of each channels reached RMB61.6 million (US$9.7 million) within the fourth quarter of 2021.

“Trying again on the yr of 2021, we’re happy to announce one other concrete milestone in the course of the journey of our enterprise transitions in the direction of China’s main digital private monetary administration platform, with our income construction additional diversifying and our enterprise quantity and profitability resuming to a wholesome development price put up the restructuring, assembly our earlier steering for each wealth administration and credit-tech enterprise strains,” mentioned Mr. Ning Tang, Chairman and Chief Government Officer of Yiren Digital.

“On wealth administration, the expansion momentum stays sturdy with contribution to our complete web income reaching greater than 35% within the fourth quarter of 2021, a historic excessive. Specifically, our complete shopper asset reached RMB19.Three billion as of December 31, 2021, representing a rise of 11% in comparison with the top of prior quarter. Notably, complete investor base on Yiren Wealth platform noticed an accelerated development on account of our Yiren Choose initiative. Within the fourth quarter of 2021, the variety of new traders on Yiren Wealth elevated by 22% on a quarter-over-quarter foundation and the variety of traders who held a minimum of two completely different asset courses grew by 15% in contrast with the third quarter of 2021. Furthermore, our insurance coverage brokerage enterprise has been rising at a higher-than-expected price with complete premiums reaching RMB888 million within the fourth quarter of 2021, representing a 21% quarterly development, which is a pointy distinction to the general business draw back cycle.”

“On credit-tech we’ve seen a visual evolvement in our general mortgage portfolio as we proceed to optimize our product combine and shift in the direction of greater credit score high quality buyer segments, shifting in full swing in the direction of guided APR with secure unit economics. At present, 99% of our new loans facilitated are small revolving loans and SME loans, in comparison with 71% within the yr of 2021, resulting in a shorter-tenor portfolio with decrease working and credit score prices, which is extra versatile to regulate to exterior surroundings. Furthermore, our e-commerce platform launched in August 2021, has began to contribute income with speedy development, successfully driving up our person actions and establishing a extra diversified finance consumption ecosystem.”

“The yr of 2021 ended with sturdy earnings. Excluding one-time enterprise disposal expense incurred within the fourth quarter of 2020, complete web earnings for the yr of 2021 was greater than RMB1.Zero billion, in comparison with a lack of RMB36.9 million in 2020, beating our inner goal with quick enterprise restoration and optimized operational effectivity,” mentioned Ms. Na Mei, Chief Monetary Officer of Yiren Digital. “On the steadiness sheet aspect, our money place grows stronger with RMB3.Zero billion money and short-term funding as of December 31, 2021, a rise of 17% in contrast with the top of the final quarter, offering enough gas for any additional enterprise growth that we might have sooner or later.”

Fourth Quarter 2021 Monetary Outcomes

Whole web income within the fourth quarter of 2021 was RMB1,020.9 million (US$160.2 million), in comparison with RMB1,160.9 million in the identical interval of 2020. Particularly, within the fourth quarter of 2021, income from wealth administration enterprise was RMB372.Three million (US$58.Four million), and income from credit score enterprise was RMB615.5 million (US$96.6 million). Excluding the influence from the disposed enterprise line, complete web income within the fourth quarter of 2021 elevated by 15.9% in contrast with the identical interval in 2020.

Gross sales and advertising and marketing bills within the fourth quarter of 2021 have been RMB304.1 million (US$47.Eight million), in comparison with RMB295.1 million in the identical interval of 2020. The rise was primarily because of the continued growth of our insurance coverage brokerage enterprise, which is offset by the optimization of price construction in our offline enterprise.

Origination, servicing and different working prices within the fourth quarter of 2021 have been RMB216.Eight million (US$34.Zero million), in comparison with RMB596.9 million in the identical interval of 2020. The lower was primarily because of the improved price effectivity after the enterprise restructuring accomplished on December 31, 2020.

Common and administrative bills within the fourth quarter of 2021 have been RMB119.Four million (US$18.Eight million), in comparison with RMB149.Three million in the identical interval of 2020. The lower was primarily because of the optimization of the corporate’s offline enterprise.

Allowance for contract property, receivables and others within the fourth quarter of 2021 was RMB51.9 million (US$8.1 million), in comparison with RMB34.5 million in the identical interval of 2020. The rise was primarily pushed by the expansion of mortgage volumes facilitated.

Earnings tax expense within the fourth quarter of 2021 was RMB5.Four million (US$0.Eight million).

Internet earnings within the fourth quarter of 2021 was RMB330.Eight million (US$51.9 million), as in comparison with web lack of RMB559.6 million in the identical interval of 2020. The change was primarily because of the one-time expense of enterprise disposal in the course of the restructuring accomplished on December 31, 2020.

Adjusted EBITDA^[3](non-GAAP) within the fourth quarter of 2021 was RMB353.Four million (US$55.5 million), in comparison with RMB48.9 million in the identical interval of 2020.

Fundamental and diluted earnings per ADS within the fourth quarter of 2021 was RMB3.9 (US$0.6), in comparison with a fundamental loss per ADS of RMB6.7 and a diluted loss per ADS of RMB6.7 in the identical interval of 2020.

Internet money generated from working actions within the fourth quarter of 2021 was RMB189.Four million (US$29.7 million), in comparison with web money utilized in working actions of RMB219.1 million in the identical interval of 2020.

Internet money utilized in investing actions within the fourth quarter of 2021 was RMB381.9 million (US$59.9 million), in comparison with web money utilized in investing actions of RMB981.1 million in the identical interval of 2020.

As of December 31, 2021, money and money equivalents was RMB2,864.5 million (US$449.5 million), in comparison with RMB2,328.Four million as of September 30, 2021. As of December 31, 2021, the steadiness of held-to-maturity investments was RMB2.2 million (US$0.Three million), in comparison with RMB2.2 million as of September 30, 2021. As of December 31, 2021, the steadiness of available-for-sale investments was RMB177.Four million (US$27.Eight million), in comparison with RMB277.9 million as of September 30, 2021.

Delinquency charges. As of December 31, 2021, the delinquency charges for loans which can be late for 15-29 days, 30-59 days and 60-89 days have been 0.9%, 1.5% and 1.2% respectively, in comparison with 0.5%, 0.7% and 0.6% respectively as of December 31, 2020.

Cumulative M3+ web cost–off charges. As December 31, 2021, the cumulative M3+ web charge-off price for loans originated in 2018, 2019 and 2020 was 9.8%, 11.4% and 5.8% respectively, as in comparison with 9.9%, 11.0% and 4.8% respectively as of September 30, 2021.

Fiscal 12 months 2021 Monetary Outcomes

Whole web income in 2021 was RMB4,477.9 million (US$702.7 million), in comparison with RMB3,962.Zero million in 2020. Particularly, income from wealth administration enterprise in 2021 was RMB1,260.5 million (US$197.Eight million), and income from credit score enterprise in 2021 was RMB3,184.Three million (US$499.7 million). Excluding the influence from the disposed enterprise line, complete web income within the yr of 2021 elevated by 92.8% in contrast with the yr of 2020. The rise was primarily because of the enterprise restoration from the COVID-19 pandemic and continued development within the gross sales quantity of present funding merchandise and loans facilitated beneath mortgage facilitation mannequin put up the restructuring.

Gross sales and advertising and marketing bills in 2021 was RMB1,553.Three million (US$243.Eight million), in comparison with RMB1,905.1 million in 2020. The lower was primarily because of the optimization of the Firm’s offline enterprise.

Origination, servicing and different working prices in 2021 was RMB760.9 million (US$119.Four million), in comparison with RMB1,104.7 million in 2020. The lower was primarily because of the improved price effectivity after the enterprise restructuring accomplished on December 31, 2020.

Common and administrative bills in 2021 was RMB506.2 million (US$79.Four million), in comparison with RMB630.6 million in 2020. The lower was primarily because of the optimization of our offline enterprise and the general enchancment of price effectivity.

Allowance for contract property, receivables and others in 2021 was RMB370.2 million (US$58.1 million), which remained secure in comparison with RMB371.6 million in 2020.

Earnings tax expense in 2021 was RMB170.2 million (US$26.7 million).

Internet earnings in 2021 was RMB1,033.Zero million (US$162.1 million), in comparison with a web lack of RMB692.7 million in 2020. The earnings was pushed by the resumption of enterprise development in addition to enhancing operational efficiencies put up the pandemic outbreak.

Adjusted EBITDA (non-GAAP) in 2021 was RMB1,338.9 million (US$210.1 million), in comparison with a lack of RMB73.2 million in 2020. Adjusted EBITDA margin¹ (non-GAAP) in 2021 was 29.9%, in comparison with a lack of 1.8% in 2020.

Fundamental and diluted earnings per ADS in 2021 have been RMB12.2 (US$1.9) and RMB12.1 (US$1.9) respectively, in comparison with a loss per ADS of RMB7.7 and a diluted loss per ADS of RMB7.7 in 2020.

Internet money generated from working actions in 2021 was RMB158.2 million (US$24.Eight million), in comparison with web money generated from working actions of RMB282.Zero million in 2020.

Non-GAAP Monetary Measures

In evaluating the enterprise, the Firm considers and makes use of a number of non-GAAP monetary measures, equivalent to adjusted EBITDA and adjusted EBITDA margin as supplemental measures to evaluate 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 shouldn’t be meant to be thought-about in isolation or as an alternative choice to the monetary data ready and introduced in accordance with accounting rules typically accepted in the USA of America (“U.S. GAAP”). The non-GAAP monetary measures have limitations as analytical instruments. Different firms, together with peer firms within the business, might calculate these non-GAAP measures otherwise, which can 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 ought to 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.

Foreign money Conversion

This announcement comprises 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 price of RMB6.3726 to US$1.00, the efficient midday shopping for price on December 31, 2021, as set forth within the H.10 statistical launch of the Federal Reserve Board.

Secure Harbor Assertion

This press launch comprises forward-looking statements. These statements represent “forward-looking” statements inside the that means of Part 21E of the Securities Trade Act of 1934, as amended, and as outlined within the U.S. Personal Securities Litigation Reform Act of 1995. These forward-looking statements will be recognized by terminology equivalent 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 plenty of of that are past Yiren Digital’s management. Ahead-looking statements contain dangers, uncertainties, and different components that might trigger precise outcomes to vary materially from these contained in any such statements. Potential dangers and uncertainties embody, however will not be restricted to, uncertainties as to Yiren Digital’s capability to draw and retain debtors and traders on its market, its capability to introduce new mortgage merchandise and platform enhancements, its capability to compete successfully, PRC rules and insurance policies regarding the peer-to-peer lending service business in China, basic financial situations in China, and Yiren Digital’s capability to satisfy the requirements essential to keep up itemizing of its ADSs on the NYSE or different inventory change, together with its capability to treatment any non-compliance with the NYSE’s continued itemizing standards. Additional data concerning these and different dangers, uncertainties or components is included in Yiren Digital’s filings with the U.S. Securities and Trade Fee. All data supplied 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 on account of new data, future occasions or in any other case, besides as required beneath relevant legislation.

About Yiren Digital

Yiren Digital Ltd. is a number one digital private monetary administration platform in China. The Firm supplies personalized, asset allocation based mostly wealth administration options to China’s mass prosperous inhabitants in addition to makes use of on-line and offline channels to offer retail credit score facilitation providers to particular person debtors and small enterprise homeowners.