Yiren Digital Reports Second Quarter 2020 Financial Results

Yiren Digital Reports Second Quarter 2020 Financial Results

  • August 28, 2020
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BEIJING , Aug. 27, 2020 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), a leading fintech company in China , today announced its unaudited financial results for the second quarter ended June 30, 2020 .” data-reactid=”23″>BEIJING , Aug. 27, 2020 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), a leading fintech company in China , today announced its unaudited financial results for the second quarter ended June 30, 2020 .

  • Cumulative number of investors served reached 2,223,250 as of June 30, 2020 , representing an increase of 0.2% from 2,218,181 as of March 31, 2020 and compared to 2,185,513 as of June 30, 2019 .
  • Number of current investors was 195,211 as of June 30, 2020 , representing a decrease of 11.5% from 220,568 as of March 31, 2020 .
  • Number of current non-P2P investors was 31,530 as of June 30, 2020 , representing an increase of 19.7% from 26,346 as of March 31, 2020 , and compared to 17,133 as of June 30, 2019 .
  • Total assets under administration (“AUA”) for P2P products on Yiren Wealth was RMB 25,896.8 million ( US$3,665.4 million ) as of June 30, 2020 , representing a decrease of 15.2% from RMB 30,536.4 million as of March 31, 2020 , and compared to RMB 43,249.9 million as of June 30, 2019 .
  • Total AUA for non-P2P products on Yiren Wealth was RMB 2,528.6 million ( US$357.9 million ) as of June 30, 2020 , representing an increase of 47.6% from 1,713.1 million as of March 31 , 2020,and compared to RMB 352.7 million as of June 30, 2019 .
  • Sales volume of non-P2P products amounted to RMB 2,186.2 million ( US$309.4 million ) in the second quarter of 2020, representing an increase of 1.1% from RMB 2,163.3 million in the first quarter of 2020 and compared to RMB 284.8 million in the same period of 2019.
  • Total loan originations in the second quarter of 2020 reached RMB 2.4 billion ( US$0.3 billion ), representing an increase of 30.6% from RMB 1.8 billion in the first quarter of 2020 and compared to RMB 9.7 billion in the second quarter of 2019.
  • Cumulative number of borrowers served reached 4,917,635 as of June 30, 2020 , representing an increase of 2.2% from 4,810,184 as of March 31, 2020 and compared to 4,491,334 as of June 30, 2019 .
  • Number of borrowers served in the second quarter of 2020 was 107,568 representing a decrease of 6.8% from 115,420 in the first quarter of 2020 and compared to 135,246 in the second quarter of 2019.
  • The percentage of loan volume generated by repeat borrowers was 0.3% in the second quarter of 2020.
  • 25.0% of loan originations were generated online in the second quarter of 2020.
  • Total outstanding principal balance of performing loans reached RMB 33,454.4 million ( US$4,735.2 million ) as of June 30,2020 , representing a decrease of 20.5% from RMB 42,063.0 million as of March 31,2020 .
  • Ning Tang , Chairman and Chief Executive Officer of Yiren Digital.” data-reactid=”45″>”With the pandemic still not far behind us and the changing market environment in the second quarter, we are making comprehensive progresses towards our business transition in our credit-tech business and have achieved meaningful scale in our wealth management business growth,” said Mr. Ning Tang , Chairman and Chief Executive Officer of Yiren Digital.

    Yi Xiang Hua , accounted for 13% of our total loan volume this quarter, growing over 500% quarter over quarter. Meanwhile, by leveraging our vast offline service network coverage, we are ramping up auto loans nicely, achieving a 51% growth from last quarter. Moreover, we have made great strides in repositioning our credit business by moving from a P2P funding model to a loan facilitation model. In the second quarter, 63% of loans facilitated were funded by institutional intuitional partners and we expect this proportion to reach close to 100% by the end of this year with a diversified partner base.”” data-reactid=”46″>”For our credit-tech business, our new online product initiatives are tracking very well. Our new revolving loan product, Yi Xiang Hua , accounted for 13% of our total loan volume this quarter, growing over 500% quarter over quarter. Meanwhile, by leveraging our vast offline service network coverage, we are ramping up auto loans nicely, achieving a 51% growth from last quarter. Moreover, we have made great strides in repositioning our credit business by moving from a P2P funding model to a loan facilitation model. In the second quarter, 63% of loans facilitated were funded by institutional intuitional partners and we expect this proportion to reach close to 100% by the end of this year with a diversified partner base.”

    June 30, 2020 , the number of current non-P2P investors increased 20% from last quarter to 31,530, and total AUA for non-P2P products increased by 48% quarterly to RMB 2.5 billion. Moreover, average AUA per investor for non-P2P products also sees steady growth, with average AUA per investor for bank’s fixed-income products exceeding RMB 100,000 and for funds over RMB 50,000 , which is well above industry average”” data-reactid=”47″>”On wealth management business, we are seeing very strong growth momentum particularly for our fund products. As of June 30, 2020 , the number of current non-P2P investors increased 20% from last quarter to 31,530, and total AUA for non-P2P products increased by 48% quarterly to RMB 2.5 billion. Moreover, average AUA per investor for non-P2P products also sees steady growth, with average AUA per investor for bank’s fixed-income products exceeding RMB 100,000 and for funds over RMB 50,000 , which is well above industry average”

    RMB 2.4 billion , thanks to our strategic initiatives this year in diversification of our loan products,” said Mr. Zhong Bi , Chief Financial Officer of Yiren Digital. “To provide relief to our borrowers who were significantly affected by the pandemic as well as medical workers who fought on the frontlines, we proactively granted a concession totaling RMB 245 million for over 50,000 borrowers in principal, interest and late fees, this represents a one-time hit to our revenue. On the balance sheet side, our cash position remains strong with approximately RMB 3.4 billion of cash and short-term investments as of June 30, 2020 . “” data-reactid=”48″>”We are delighted to see a notable acceleration in loan originations from prior quarter to RMB 2.4 billion , thanks to our strategic initiatives this year in diversification of our loan products,” said Mr. Zhong Bi , Chief Financial Officer of Yiren Digital. “To provide relief to our borrowers who were significantly affected by the pandemic as well as medical workers who fought on the frontlines, we proactively granted a concession totaling RMB 245 million for over 50,000 borrowers in principal, interest and late fees, this represents a one-time hit to our revenue. On the balance sheet side, our cash position remains strong with approximately RMB 3.4 billion of cash and short-term investments as of June 30, 2020 . “

    the delinquency rates have shown a progressive improving trend. 15-90 days delinquency has decreased to 5.5% as of June 30, 2020 from 8.9% as of March 31, 2020 . 15-90 days delinquency further decreased to 5.2% as of July 31, 2020 as a result of our strengthened efforts in tightening controls and improving borrower’s credit quality.” said Mr. Michael Ji , Chief Risk Officer of Yiren Digital. “To mitigate the risk caused by covid-19 and help customers went through the financial hardship, we have launched 7 relating special collection projects in the second quarter , including continued ‘pandemic customer care program’, which offered payment relief for the customers who were hit by covid-19 and healthcare givers who were fighting the disease. These special collection projects helped us achieve a decline in NCL by over 10% as compared with projection at the beginning of the year, even facing the economic headwind. We will continue to strengthen our risk management and expect delinquency rates to further improve in the second half of the year.” data-reactid=”49″>”Thanks to our continued efforts in risk management, the delinquency rates have shown a progressive improving trend. 15-90 days delinquency has decreased to 5.5% as of June 30, 2020 from 8.9% as of March 31, 2020 . 15-90 days delinquency further decreased to 5.2% as of July 31, 2020 as a result of our strengthened efforts in tightening controls and improving borrower’s credit quality.” said Mr. Michael Ji , Chief Risk Officer of Yiren Digital. “To mitigate the risk caused by covid-19 and help customers went through the financial hardship, we have launched 7 relating special collection projects in the second quarter , including continued ‘pandemic customer care program’, which offered payment relief for the customers who were hit by covid-19 and healthcare givers who were fighting the disease. These special collection projects helped us achieve a decline in NCL by over 10% as compared with projection at the beginning of the year, even facing the economic headwind. We will continue to strengthen our risk management and expect delinquency rates to further improve in the second half of the year.

    RMB 2,402.5 million ( US$340.1 million ), compared to RMB 9,673.8 million in the same period last year. As of June 30, 2020 , the total outstanding principal amount 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 .” data-reactid=”51″>Total amount of loans facilitated  in the second quarter of 2020 was RMB 2,402.5 million ( US$340.1 million ), compared to RMB 9,673.8 million in the same period last year. As of June 30, 2020 , the total outstanding principal amount 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 .

    RMB 754.7 million ( US$106.8 million ), compared to RMB 2,216.6 million in the same period last year. Revenue from Yiren Credit reached RMB 432.3 million ( US$61.2 million ), representing a decrease of 73% from RMB 1,624.3 million in the second quarter of 2019. Revenue from Yiren Wealth reached RMB 322.4 million ( US$45.6 million ), representing a decrease of 46% from RMB 592.4 million in the second quarter of 2019.” data-reactid=”52″>Total net revenue in the second quarter of 2020 was RMB 754.7 million ( US$106.8 million ), compared to RMB 2,216.6 million in the same period last year. Revenue from Yiren Credit reached RMB 432.3 million ( US$61.2 million ), representing a decrease of 73% from RMB 1,624.3 million in the second quarter of 2019. Revenue from Yiren Wealth reached RMB 322.4 million ( US$45.6 million ), representing a decrease of 46% from RMB 592.4 million in the second quarter of 2019.

    RMB 508.5 million ( US$72.0 million ), compared to RMB 1,208.6 million in the same period last year. Sales and marketing expenses in the second quarter of 2020 accounted for 21.2% of the total amount of loans facilitated, as compared to 12.5% in the same period last year mainly due to the decline of loan volume.” data-reactid=”57″>Sales and marketing expenses  in the second quarter of 2020 were RMB 508.5 million ( US$72.0 million ), compared to RMB 1,208.6 million in the same period last year. Sales and marketing expenses in the second quarter of 2020 accounted for 21.2% of the total amount of loans facilitated, as compared to 12.5% in the same period last year mainly due to the decline of loan volume.

    RMB 165.2 million ( US$23.4 million ), compared to RMB 162.9 million in the same period last year. Origination and servicing costs in the second quarter of 2020 accounted for 6.9% of the total amount of loans facilitated, compared to 1.7% in the same period last year due to the decline of loan volume.” data-reactid=”58″>Origination and servicing costs  in the second quarter of 2020 were RMB 165.2 million ( US$23.4 million ), compared to RMB 162.9 million in the same period last year. Origination and servicing costs in the second quarter of 2020 accounted for 6.9% of the total amount of loans facilitated, compared to 1.7% in the same period last year due to the decline of loan volume.

    RMB 172.6 million ( US$24.4 million ), compared to RMB 175.5 million in the same period last year. General and administrative expenses in the second quarter of 2020 accounted for 22.9% of the total net revenue, compared to 7.9% in the same period last year.” data-reactid=”59″>General and administrative expenses in the second quarter of 2020 were RMB 172.6 million ( US$24.4 million ), compared to RMB 175.5 million in the same period last year. General and administrative expenses in the second quarter of 2020 accounted for 22.9% of the total net revenue, compared to 7.9% in the same period last year.

    RMB 168.7 million ( US$23.9 million ), compared to RMB 500.9 million in the same period last year.” data-reactid=”60″>Allowance for contract assets and receivables  in the second quarter of 2020 were RMB 168.7 million ( US$23.9 million ), compared to RMB 500.9 million in the same period last year.

    RMB 47.6 million ( US$6.7 million ).” data-reactid=”61″>Income tax benefit  in the second quarter of 2020 was RMB 47.6 million ( US$6.7 million ).

    RMB 232.2 million ( US$32.9 million ), compared to net income of RMB 154.5 million in the same period last year. ” data-reactid=”62″>Net loss  in the second quarter of 2020 was RMB 232.2 million ( US$32.9 million ), compared to net income of RMB 154.5 million in the same period last year. 

    RMB 269.4 million ( US$38.1 million ), compared to net income of RMB 239.9 million in the same period last year.” data-reactid=”63″>Adjusted EBITDA  (non-GAAP) in the second quarter of 2020 was net loss of RMB 269.4 million ( US$38.1 million ), compared to net income of RMB 239.9 million in the same period last year.

    RMB 2.5 (US$0.4) , compared to a basic income per ADS of RMB 1.7 in the same period last year.” data-reactid=”64″>Basic income per ADS  in the second quarter of 2020 was net loss of RMB 2.5 (US$0.4) , compared to a basic income per ADS of RMB 1.7 in the same period last year.

    RMB 2.5 (US$0.4) , compared to a diluted income per ADS of RMB 1.7 in the same period last year.” data-reactid=”65″>Diluted income per ADS  in the second quarter of 2020 was net loss of RMB 2.5 (US$0.4) , compared to a diluted income per ADS of RMB 1.7 in the same period last year.

    RMB 86.8 million ( US$12.3 million ), compared to net cash generated from operating activities of RMB 36.4 million in the same period last year.” data-reactid=”66″>Net cash used in operating activities  in the second quarter of 2020 was RMB 86.8 million ( US$12.3 million ), compared to net cash generated from operating activities of RMB 36.4 million in the same period last year.

    RMB 164.6 million ( US$23.3 million ), compared to net cash provided by investing activities of RMB 240.9 million in the same period last year.” data-reactid=”67″>Net cash used in investing activities  in the second quarter of 2020 was RMB 164.6 million ( US$23.3 million ), compared to net cash provided by investing activities of RMB 240.9 million in the same period last year.

    June 30, 2020 , cash and cash equivalents was RMB 2,935.5 million ( US$415.5 million ), compared to RMB 3,195.0 million as of March 31, 2020 . As of June 30, 2020 , the balance of held-to-maturity investments was RMB 4.1 million ( US$0.6 million ), compared to RMB 4.4 million as of March 31, 2020 . As of June 30, 2020 , the balance of available-for-sale investments was RMB 513.0 million ( US$72.6 million ), compared to RMB 456.1 million as of March 31, 2020 .” data-reactid=”68″>As of June 30, 2020 , cash and cash equivalents was RMB 2,935.5 million ( US$415.5 million ), compared to RMB 3,195.0 million as of March 31, 2020 . As of June 30, 2020 , the balance of held-to-maturity investments was RMB 4.1 million ( US$0.6 million ), compared to RMB 4.4 million as of March 31, 2020 . As of June 30, 2020 , the balance of available-for-sale investments was RMB 513.0 million ( US$72.6 million ), compared to RMB 456.1 million as of March 31, 2020 .

    June 30, 2020 , the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.4%, 2.0%, and 2.1%, respectively compared to1.6%, 4.1%, and 3.2%, as of March 31 , 2020. ” data-reactid=”69″>Delinquency rates . As of June 30, 2020 , the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.4%, 2.0%, and 2.1%, respectively compared to1.6%, 4.1%, and 3.2%, as of March 31 , 2020. 

    June 30, 2020 , the cumulative M3+ net charge-off rate for loans originated in 2017 was 16.7%, compared to 16.5% as of March 31, 2020 . As of June 30, 2020 , the cumulative M3+ net charge-off rate for loans originated in 2018 was 17.6%, compared to 15.8% as of March 31, 2020 . As of June 30, 2020 , the cumulative M3+ net charge-off rate for loans originated in 2019 was 9.4%, compared to 5.2% as of March 31, 2020 .” data-reactid=”70″>Cumulative M3+ net chargeoff rates. As of June 30, 2020 , the cumulative M3+ net charge-off rate for loans originated in 2017 was 16.7%, compared to 16.5% as of March 31, 2020 . As of June 30, 2020 , the cumulative M3+ net charge-off rate for loans originated in 2018 was 17.6%, compared to 15.8% as of March 31, 2020 . As of June 30, 2020 , the cumulative M3+ net charge-off rate for loans originated in 2019 was 9.4%, compared to 5.2% as of March 31, 2020 .

    Zhong Bi has resigned from his position as the Company’s Chief Financial Officer (“CFO”) to pursue other opportunities, effective on September 10, 2020 . The board of directors of the Company has appointed Ms. Na Mei as the Company’s new CFO, effective on September 10, 2020 . Over the past two months, Ms. Mei has been working with Mr. Bi on daily CFO duties to ensure a smooth transition.” data-reactid=”73″>Mr. Zhong Bi has resigned from his position as the Company’s Chief Financial Officer (“CFO”) to pursue other opportunities, effective on September 10, 2020 . The board of directors of the Company has appointed Ms. Na Mei as the Company’s new CFO, effective on September 10, 2020 . Over the past two months, Ms. Mei has been working with Mr. Bi on daily CFO duties to ensure a smooth transition.

    China and abroad. Ms. Mei obtained her bachelor’s degree from Capital Economic University and is a certified public accountant.” data-reactid=”74″>Ms. Mei joined CreditEase Consumer Credit Division, now part of Yiren Digital, in 2015. She has served as the financial controller for this business unit and the head of business finance department. Prior to joining CreditEase, Ms. Mei had worked 12 years at PricewaterhouseCoopers. She brought in seasoned experience in finance management, taxation, internal control and consulting, along with years of first-hand exposure dealing with publicly listed companies in China and abroad. Ms. Mei obtained her bachelor’s degree from Capital Economic University and is a certified public accountant.

    US$0.0001 par value each standing in its name in the register of members of Yiren Digital.” data-reactid=”76″>Yiren Digital adopted a 2020 share incentive plan (the “2020 Plan”) in the second quarter of 2020. The 2020 Plan has a ten-year term, and has a maximum number of 18,560,000 ordinary shares available for issuance pursuant to all awards under the 2020 Plan. Yiren Digital may grant restricted share units and other form of awards pursuant to the 2020 Plan. In connection with the adoption of the 2020 Plan and to prevent dilution to existing shareholders, CreditEase Holdings (Cayman) Limited, the parent company of Yiren Digital, will surrender for cancellation and for nil consideration 18,560,000 ordinary shares of US$0.0001 par value each standing in its name in the register of members of Yiren Digital.

    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.” data-reactid=”78″>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.

    RMB 7.0651 to US$1.00 , the effective noon buying rate on June 30, 2020 , as set forth in the H.10 statistical release of the Federal Reserve Board.” data-reactid=”80″>This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 7.0651 to US$1.00 , the effective noon buying rate on June 30, 2020 , as set forth in the H.10 statistical release of the Federal Reserve Board.

    August 28, 2020 ).” data-reactid=”82″>Yiren Digital’s management will host an earnings conference call at 8:00 p.m. U.S. Eastern Time on August 27, 2020 (or 8:00 a.m. Beijing/Hong Kong Time on August 28, 2020 ).

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

    http://apac.directeventreg.com/registration/event/9992747” data-reactid=”84″> http://apac.directeventreg.com/registration/event/9992747

    Please note the Conference ID number of 9992747.

    Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number. 

    Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.

    A replay of the conference call may be accessed by phone at the following numbers until September 3, 2020:

    International

    +61 2-8199-0299

    U.S.

    +1 646-254-3697

    Replay Access Code:

    9992747

    ir.yirendai.com .” data-reactid=”91″>Additionally, a live and archived webcast of the conference call will be available at  ir.yirendai.com .

    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.” data-reactid=”93″>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.

    China , providing both credit and wealth management services. For its credit business, the Company provides an effective solution to address largely underserved investor and individual borrower demand in China through online and offline channels to efficiently match borrowers with investors and execute loan transactions. Yiren Digital deploys a proprietary risk management system, which enables the Company to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers, and offer quality loan investment opportunities to investors. Yiren Digital’s marketplace provides borrowers with quick and convenient access to consumer credit at competitive prices and investors with easy and quick access to an alternative asset class with attractive returns. For its wealth management business, the Company targets China’s mass affluent population and strives to provide customized wealth management services, with a combination of long-term and short-term targets as well as different types of investments, ranging from cash and fixed-income assets, to funds and insurance. For more information, please visit ir.Yirendai.com .” data-reactid=”95″>Yiren Digital Ltd. (NYSE: YRD) is a leading fintech company in China , providing both credit and wealth management services. For its credit business, the Company provides an effective solution to address largely underserved investor and individual borrower demand in China through online and offline channels to efficiently match borrowers with investors and execute loan transactions. Yiren Digital deploys a proprietary risk management system, which enables the Company to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers, and offer quality loan investment opportunities to investors. Yiren Digital’s marketplace provides borrowers with quick and convenient access to consumer credit at competitive prices and investors with easy and quick access to an alternative asset class with attractive returns. For its wealth management business, the Company targets China’s mass affluent population and strives to provide customized wealth management services, with a combination of long-term and short-term targets as well as different types of investments, ranging from cash and fixed-income assets, to funds and insurance. For more information, please visit ir.Yirendai.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,
    2019

    March 31,
    2020

    June 30,
    2020

    June 30,
    2020

    June 30,
    2019

    June 30,
    2020

    June 30,
    2020

    RMB

    RMB

    RMB

    USD

    RMB

    RMB

    USD

    Net revenue:

    Loan facilitation services

    1,237,718

    358,541

    171,084

    24,215

    2,292,764

    529,625

    74,964

    Post-origination services

    241,321

    146,520

    126,477

    17,902

    537,600

    272,997

    38,640

    Account management services

    549,024

    413,166

    300,720

    42,564

    1,037,364

    713,886

    101,044

    Others

    188,577

    105,433

    156,408

    22,138

    329,320

    261,841

    37,061

    Total net revenue

    2,216,640

    1,023,660

    754,689

    106,819

    4,197,048

    1,778,349

    251,709

    Operating costs and expenses:

    Sales and marketing

    1,208,647

    616,441

    508,466

    71,969

    2,336,592

    1,124,907

    159,220

    Origination and servicing

    162,945

    102,918

    165,183

    23,380

    335,068

    268,101

    37,947

    General and administrative

    175,534

    149,041

    172,568

    24,425

    433,241

    321,609

    45,521

    Allowance for contract assets and
    receivables

    500,861

    143,385

    168,708

    23,879

    691,965

    312,093

    44,174

    Total operating costs and expenses

    2,047,987

    1,011,785

    1,014,925

    143,653

    3,796,866

    2,026,710

    286,862

    Other income/(expenses):

    Interest income, net

    25,213

    25,116

    16,950

    2,399

    49,088

    42,066

    5,954

    Fair value adjustments related to
    Consolidated ABFE

    5,787

    (26,020)

    (32,957)

    (4,665)

    40,785

    (58,977)

    (8,348)

    Others, net

    17,480

    12,184

    (3,510)

    (496)

    177,703

    8,674

    1,228

    Total other income/(expenses)

    48,480

    11,280

    (19,517)

    (2,762)

    267,576

    (8,237)

    (1,166)

    Income/(loss) before provision for
    income taxes

    217,133

    23,155

    (279,753)

    (39,596)

    667,758

    (256,598)

    (36,319)

    Share of results of equity investees

    (816)

    (5,773)

    Income tax expense/(benefit)

    61,856

    3,936

    (47,558)

    (6,731)

    138,390

    (43,622)

    (6,174)

    Net income/(loss)

    154,461

    19,219

    (232,195)

    (32,865)

    523,595

    (212,976)

    (30,145)

    Weighted average number of ordinary
    shares outstanding, basic

    184,608,337

    185,600,961

    185,613,735

    185,613,735

    184,865,964

    185,607,348

    185,607,348

    Basic income/(loss) per share

    0.8367

    0.1036

    (1.2510)

    (0.1771)

    2.8323

    (1.1475)

    (0.1624)

    Basic income/(loss) per ADS

    1.6734

    0.2072

    (2.5020)

    (0.3542)

    5.6646

    (2.2950)

    (0.3248)

    Weighted average number of ordinary
    shares outstanding, diluted

    186,667,233

    186,166,429

    185,613,735

    185,613,735

    186,621,626

    185,607,348

    185,607,348

    Diluted income/(loss) per share

    0.8275

    0.1032

    (1.2510)

    (0.1771)

    2.8057

    (1.1475)

    (0.1624)

    Diluted income/(loss) per ADS

    1.6550

    0.2064

    (2.5020)

    (0.3542)

    5.6114

    (2.2950)

    (0.3248)

    Unaudited Condensed Consolidated
    Cash Flow Data

    Net cash generated from/(used in)
    operating activities

    36,352

    557,762

    (86,768)

    (12,281)

    (622,083)

    470,994

    66,664

    Net cash provided by/(used in)
    investing activities

    240,896

    (524,479)

    (164,623)

    (23,302)

    (9,035)

    (689,102)

    (97,537)

    Net cash (used in)/provided by
    financing activities

    (73,385)

    (65,637)

    39,905

    5,648

    420,004

    (25,732)

    (3,642)

    Effect of foreign exchange rate changes

    1,532

    1,206

    (86)

    (12)

    (664)

    1,120

    159

    Net increase/(decrease) in cash, cash
    equivalents and restricted cash

    205,395

    (31,148)

    (211,572)

    (29,947)

    (211,778)

    (242,720)

    (34,356)

    Cash, cash equivalents and restricted
    cash, beginning of period

    2,617,311

    3,269,142

    3,237,994

    458,308

    3,034,484

    3,269,142

    462,717

    Cash, cash equivalents and restricted
    cash, end of period

    2,822,706

    3,237,994

    3,026,422

    428,361

    2,822,706

    3,026,422

    428,361

     

     

    Unaudited Condensed Consolidated Balance Sheets

     (in thousands)

    As of

    December 31,
    2019

    March 31,
    2020

    June 30,
    2020

    June 30,
    2020

    RMB

    RMB

    RMB

    USD

            Cash and cash equivalents

    3,198,086

    3,194,993

    2,935,543

    415,498

            Restricted cash

    71,056

    43,001

    90,879

    12,863

            Accounts receivable

    3,398

    33,902

    27,309

    3,865

            Contract assets, net

    2,398,685

    1,873,548

    1,356,886

    192,055

            Contract cost

    160,003

    149,917

    145,809

    20,638

            Prepaid expenses and other assets

    1,333,221

    868,462

    1,134,257

    160,545

            Loans at fair value

    418,492

    313,267

    246,475

    34,886

            Financing receivables

    29,612

    33,381

    54,876

    7,767

            Amounts due from related parties

    988,853

    1,583,859

    1,560,376

    220,857

            Held-to-maturity investments

    6,627

    4,399

    4,126

    584

            Available-for-sale investments

    460,991

    456,061

    513,013

    72,612

            Property, equipment and software, net

    195,855

    188,880

    184,957

    26,179

            Deferred tax assets

    45,407

    42,084

    49,051

    6,943

            Right-of-use assets

    334,134

    291,028

    224,067

    31,715

    Total assets

    9,644,420

    9,076,782

    8,527,624

    1,207,007

            Accounts payable

    43,583

    39,068

    40,324

    5,708

            Amounts due to related parties

    106,645

    112,034

    184,325

    26,090

            Liabilities from quality assurance program and guarantee

    4,397

    3,487

    2,660

    377

            Deferred revenue

    358,203

    254,933

    190,712

    26,994

            Accrued expenses and other liabilities

    2,338,745

    1,946,205

    1,981,040

    280,397

            Refund liability

    1,801,535

    1,760,942

    1,501,318

    212,497

            Deferred tax liabilities

    218,888

    216,304

    162,016

    22,932

            Lease liabilities

    282,334

    259,197

    205,056

    29,024

    Total liabilities

    5,154,330

    4,592,170

    4,267,451

    604,019

            Ordinary shares

    121

    121

    121

    17

            Additional paid-in capital

    5,038,691

    5,045,268

    5,050,226

    714,813

            Treasury stock

    (37,097)

    (37,097)

    (37,097)

    (5,251)

            Accumulated other comprehensive income

    21,855

    18,671

    23,474

    3,323

            Accumulated deficit

    (533,480)

    (542,351)

    (776,551)

    (109,914)

    Total equity

    4,490,090

    Source Article