6-K
Yiren Digital Ltd. (YRD)
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 November 2021
Commission File Number: 001-37657
YIREN DIGITAL LTD.
10/F, Building 9, 91 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 x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
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: November 26, 2021
Exhibit Index
Exhibit 99.1—Yiren Digital Reports Third Quarter 2021 Financial Results
Exhibit 99.1
Yiren Digital Reports Third Quarter 2021 Financial Results
11/24/21
BEIJING, Nov. 24, 2021 /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 third quarter ended September 30, 2021.
Third Quarter 2021 Operational Highlights
Wealth Management
| · | Cumulative<br> number of investors served reached 2,612,279 as of September 30, 2021, representing an increase<br> of 2.9% from 2,538,656 as of June 30, 2021 and compared to 2,283,828 as of September 30,<br> 2020. |
|---|---|
| · | Number<br> of active investors^[1]^ was 427,873 as of September 30, 2021, representing an increase<br> of 11.0% from 385,536 as of June 30, 2021, and compared to 170,907 as of September 30, 2020. |
| --- | --- |
| · | Total<br> client assets^[2]^ was RMB17,415.3 million (US$2,702.8 million) as of September<br> 30, 2021, representing an increase of 18.8% from RMB14,660.4 million as of June 30, 2021,<br> and compared to RMB4,994.6 million as of September 30, 2020. |
| --- | --- |
| · | Sales<br> volume of investment products amounted to RMB5,030.2 million (US$780.7 million) in the third<br> quarter of 2021, representing a decrease of 5.9% from RMB5,343.6 million in the second quarter<br> of 2021 and compared to RMB4,593.3 million in the same period of 2020. |
| --- | --- |
Consumer Credit
| · | Total<br> loans facilitated under loan facilitation model in the third quarter of 2021 reached RMB6.8<br> billion (US$1.1 billion), representing an increase of 30.3% from RMB5.3 billion in the second<br> quarter of 2021 and compared to RMB3.1 billion in the third quarter of 2020. |
|---|---|
| · | Cumulative<br> number of borrowers served reached 5,840,424 as of September 30, 2021, representing an increase<br> of 5.1% from 5,558,085 as of June 30, 2021 and compared to 5,060,824 as of September 30,<br> 2020. |
| --- | --- |
| · | Number<br> of borrowers served in the third quarter of 2021 was 548,495 representing an increase of<br> 26.3% from 434,153 in the second quarter of 2021 and compared to 143,238 in the third quarter<br> of 2020. |
| --- | --- |
| · | Outstanding<br> balance of performing loans facilitated under loan facilitation model reached RMB13,793.9<br> million (US$2,140.8 million) as of September 30, 2021, representing an increase of 10.0%<br> from RMB12,543.7 million as of June 30, 2021 and compared to RMB6,250.3 million as of September<br> 30, 2020. |
| --- | --- |
"We are delighted to announce a solid quarter with visible increase in profitability and a healthy growth in business scale amid a muted macro environment," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "And as our business structures continue to integrate and expand, we are seeing growing interactions and synergies between each business line, reinforcing our strategic positioning as a user-centric leading digital personal financial management platform."
"For wealth management, we are pleased to see continued growth in both new investor base and average client asset per investor. As of September 30, 2021, our total client assets exceeded RMB17.4 billion, representing a 19% growth from last quarter and approximately 250% increase from the prior year. On Yiren Wealth's platform, the number of new investors grew 93% quarter-over-quarter and excluding insurance products, the number of investors with client asset over RMB500,000 grew almost three times compared with the prior year, a vivid reflection of our enhanced capabilities to serve a higher segment of our investor spectrum. Moreover, Hexiang insurance contributed RMB735 million in total premium this quarter, up 29% compared with last quarter."
"For our credit business, the total loan facilitation volume maintained a strong growth trajectory reaching RMB6.8 billion for the quarter, representing an increase of 30% quarter over quarter. Driven by our enhanced digital operating capabilities and improved servicing standards, our Yi Xiang Hua APP, the credit-tech platform offering unsecured revolving loans, saw its MAU jumping 82% quarter over quarter to 1.1 million users. Meanwhile, our SME loans, which we started to focus on in the second half of this year, increased by 431% from the last quarter and accounted 25% of our total loan volume in the third quarter."
"In the third quarter, we are pleased to see strong growth across revenue, profit and transaction volume. Total revenue in the third quarter stood at RMB1.2 billion, increasing 20% year over year, with wealth management business becoming an increasingly important growth driver and contributing close to 30% of total revenue. Meanwhile, net income grew three times year on year to over RMB0.3 billion, reflecting a net income margin of 26%, driven by our continued efforts in cost control and increasing operating efficiencies, "said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "Turning to our balance sheet, we ended the quarter with RMB2.3 billion in cash and cash equivalents, representing 6% increase from the prior quarter, leaving us with sufficient resilience to seize any new opportunities."
Third Quarter 2021 Financial Results
Total net revenue in the third quarter of 2021 was RMB1,232.0 million (US$191.2 million), compared to RMB1,022.8 million in the same period last year. Revenue from wealth management business reached RMB337.6 million (US$52.4 million), representing an increase of 20.1% from RMB281.1 million in the third quarter of 2020, as we continue to drive up our wealth management business. Revenue from credit business reached RMB894.4 million (US$138.8 million), representing an increase of 20.6% from RMB741.7 million in the third quarter of 2020, primarily driven by an increase in loan volume.
Sales and marketing expensesin the third quarter of 2021 were RMB407.2 million (US$63.2 million), compared to RMB485.1 million in the same period last year. The decrease was primarily due to internal restructuring to optimize operating efficiencies.
Origination, servicing andother operating costs in the third quarter of 2021 were RMB186.9 million (US$29.0 million), compared to RMB239.7 million in the same period last year. The decrease was due to the improved collection efficiency.
General and administrativeexpenses in the third quarter of 2021 were RMB139.3 million (US$21.6 million), compared to RMB159.7 million in the same period last year. The decrease was due to enhancement of operational efficiency.
Allowance for contract assets,receivables and others in the third quarter of 2021 was RMB83.6 million (US$13.0 million), compared to RMB25.0million in the same period last year. The increase was primarily driven by the one-time write back to credit impairment in the same period last year due to the better-than-expected credit performance post the pandemic. Excluding the one-time write back impact, allowance for contract assets remained stable compared to the same period last year.
Income tax expense in the third quarter of 2021 was RMB75.9million (US$11.8 million).
Net income in the third quarter of 2021 was RMB320.9 million (US$49.8million), compared to net income of RMB79.8 million in the same period last year.
Adjusted EBITDA^[3]^ (non-GAAP) in the third quarter of 2021 was RMB438.6 million (US$68.1 million), compared to RMB117.5 million in the same period last year.
Basic income per ADS in the third quarter of 2021 was RMB3.8 (US$0.6), compared to a basic income per ADS of RMB0.9 in the same period last year.
Diluted income per ADS in the third quarter of 2021 was RMB3.7 (US$0.6), compared to a diluted income per ADS of RMB0.9 in the same period last year.
Net cash generated from operatingactivities in the third quarter of 2021 was RMB323.8 million (US$50.3 million), compared to RMB3.1 million in the same period last year.
Net cash used in investing activitiesin the third quarter of 2021 was RMB233.8 million (US$36.3 million), compared to RMB99.5 million in the same period last year.
As of September 30, 2021, cash and cash equivalents was RMB2,328.4 million (US$361.4 million), compared to RMB2,192.5 million as of June 30, 2021. As of September 30, 2021, the balance of held-to-maturity investments was RMB2.2 million (US$0.3 million), compared to RMB2.2 million as of June 30, 2021. As of September 30, 2021, the balance of available-for-sale investments was RMB277.9 million (US$43.1 million), compared to RMB224.3 million as of June 30, 2021.
Delinquency rates. As of September 30, 2021, the delinquency rates for loans facilitated that are past due for 15-29 days, 30-59 days and 60-89 days were 0.7%, 0.9% and 0.8% respectively, compared to 0.5%, 0.8% and 0.7% respectively as of June 30, 2021.
Cumulative M3+ net charge-offrates. As of September 30, 2021, the cumulative M3+ net charge-off rate for loans facilitated in 2018, 2019 and 2020 was 9.9%, 11.0% and 4.8% respectively, as compared to 9.9%, 10.5% and 3.7% respectively as of June 30, 2021.
^[1]^ Active investors refer to those who have made at least one investment through our wealth management platform or have had client assets with us 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 investor who acquired it through our platform.
^[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.
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.
Board Composition Change
Mr. Dennis Cong has resigned from the board of directors of the Company, having fulfilled his term as a board member since November 2020, effective from November 24, 2021.
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 RMB6.4434 to US$1.00, the effective noon buying rate on September 30, 2021, 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 7:00 a.m. U.S. Eastern Time on November 24, 2021 (or 8:00 p.m. Beijing/Hong Kong Time on November 24, 2021).
Participants who wish to join the call should register online in advance of the conference at:
http://apac.directeventreg.com/registration/event/8382762
Please note the Conference ID number of 8382762.
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 December 2, 2021:
| International | +61 2-8199-0299 |
|---|---|
| U.S. | +1 646-254-3697 |
Replay Access Code:8382762
Additionally, a live and archived webcast of the conference call will be available at ir.yirendai.com.
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 services and wealth management solutions to China's mass affluent population as well as utilizes online and offline channels to provide retail credit facilitation services to individual borrowers and small business owners.
Unaudited Condensed Consolidated Statements of Operations
(inthousands, except for share, per share and per ADS data, and percentages)
| For<br> the Three Months Ended | For<br> the Nine Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br> 30, <br> 2020 | June<br> 30, <br> 2021 | September<br> 30, <br> 2021 | September<br> 30, 2021 | September<br> 30, <br> 2020 | September<br> 30,<br> 2021 | September<br> 30, 2021 | |||||||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||||||||
| Net<br> revenue: | |||||||||||||||||||
| Loan<br> facilitation services | 406,413 | 551,373 | 601,283 | 936,038 | 1,694,788 | ||||||||||||||
| Post-origination<br> services | 195,570 | 40,584 | 39,024 | 468,567 | 124,394 | ||||||||||||||
| Account<br> management services | 157,327 | - | - | 871,213 | - | ||||||||||||||
| Insurance<br> brokerage services | 102,495 | 151,801 | 199,406 | 122,040 | 510,911 | ||||||||||||||
| Financing<br> services | 3,075 | 125,267 | 144,614 | 5,310 | 384,813 | ||||||||||||||
| Others | 157,882 | 256,010 | 247,664 | 397,943 | 742,083 | ||||||||||||||
| Total<br> net revenue | 1,022,762 | 1,125,035 | 1,231,991 | 2,801,111 | 3,456,989 | ||||||||||||||
| Operating<br> costs and expenses: | |||||||||||||||||||
| Sales<br> and marketing | 485,055 | 436,882 | 407,172 | 1,609,962 | 1,249,230 | ||||||||||||||
| Origination,servicing<br> and other operating costs | 239,655 | 182,667 | 186,915 | 507,756 | 544,107 | ||||||||||||||
| General<br> and administrative | 159,670 | 127,690 | 139,321 | 481,279 | 386,876 | ||||||||||||||
| Allowance<br> for contract assets, receivables and others | 25,016 | 93,433 | 83,578 | 337,109 | 318,243 | ||||||||||||||
| Total<br> operating costs and expenses | 909,396 | 840,672 | 816,986 | 2,936,106 | 2,498,456 | ||||||||||||||
| Other<br> income/(expenses): | |||||||||||||||||||
| Interest<br> income/(expense), net | 11,003 | (22,782 | ) | (21,565 | ) | ) | 53,069 | (55,327 | ) | ) | |||||||||
| Fair<br> value adjustments related to Consolidated ABFE | (30,905 | ) | (20,916 | ) | (526 | ) | ) | (89,882 | ) | (49,162 | ) | ) | |||||||
| Others,<br> net | 2,726 | 14,674 | 3,934 | 11,400 | 23,730 | ||||||||||||||
| Total<br> other expenses | (17,176 | ) | (29,024 | ) | (18,157 | ) | ) | (25,413 | ) | (80,759 | ) | ) | |||||||
| Income/(loss)<br> before provision for income taxes | 96,190 | 255,339 | 396,848 | (160,408 | ) | 877,774 | |||||||||||||
| Income<br> tax expense/(benefit) | 16,353 | 55,259 | 75,923 | (27,269 | ) | 175,555 | |||||||||||||
| Net<br> income/(loss) | 79,837 | 200,080 | 320,925 | (133,139 | ) | 702,219 | |||||||||||||
| Weighted<br> average number of ordinary shares outstanding, basic | 182,144,192 | 167,974,463 | 170,193,542 | 184,444,536 | 168,719,693 | ||||||||||||||
| Basic<br> income/(loss) per share | 0.4383 | 1.1911 | 1.8856 | (0.7218 | ) | 4.1620 | |||||||||||||
| Basic<br> income/(loss) per ADS | 0.8766 | 2.3822 | 3.7712 | (1.4436 | ) | 8.3240 | |||||||||||||
| Weighted<br> average number of ordinary shares outstanding, diluted | 182,730,892 | 169,173,603 | 171,571,392 | 184,444,536 | 169,972,343 | ||||||||||||||
| Diluted<br> income/(loss) per share | 0.4369 | 1.1827 | 1.8705 | (0.7218 | ) | 4.1314 | |||||||||||||
| Diluted<br> income/(loss) per ADS | 0.8738 | 2.3654 | 3.7410 | (1.4436 | ) | 8.2628 | |||||||||||||
| Unaudited<br> Condensed Consolidated Cash Flow Data | |||||||||||||||||||
| Net<br> cash generated/(used in) from operating activities | 3,098 | (212,993 | ) | 323,819 | 501,097 | (31,185 | ) | ) | |||||||||||
| Net<br> cash used in investing activities | (99,460 | ) | (208,539 | ) | (233,782 | ) | ) | (815,567 | ) | (728,377 | ) | ) | |||||||
| Net<br> cash provided by financing activities | 81,693 | 144,107 | 49,770 | 55,961 | 473,277 | ||||||||||||||
| Effect<br> of foreign exchange rate changes | (3,389 | ) | (278 | ) | (257 | ) | ) | (2,269 | ) | (653 | ) | ) | |||||||
| Net<br> (decrease)/increase in cash, cash equivalents and restricted cash | (18,058 | ) | (277,703 | ) | 139,550 | (260,778 | ) | (286,938 | ) | ) | |||||||||
| Cash,<br> cash equivalents and restricted cash, beginning of period | 3,026,422 | 2,558,363 | 2,280,660 | 3,269,142 | 2,707,148 | ||||||||||||||
| Cash,<br> cash equivalents and restricted cash, end of period | 3,008,364 | 2,280,660 | 2,420,210 | 3,008,364 | 2,420,210 |
All values are in US Dollars.
Unaudited Condensed Consolidated Balance Sheets
(inthousands)
| As of | |||||||
|---|---|---|---|---|---|---|---|
| December 31, <br> 2020 | June 30, <br> 2021 | September 30, <br> 2021 | September 30, 2021 | ||||
| RMB | RMB | RMB | |||||
| Cash and cash equivalents | 2,469,909 | 2,192,500 | 2,328,380 | 361,359 | |||
| Restricted cash | 237,239 | 88,160 | 91,830 | 14,252 | |||
| Accounts receivable | 122,742 | 228,554 | 258,729 | 40,154 | |||
| Contract assets, net | 750,174 | 1,063,470 | 1,191,497 | 184,917 | |||
| Contract cost | 65,529 | 44,684 | 34,707 | 5,386 | |||
| Prepaid expenses and other assets | 278,591 | 213,942 | 358,052 | 55,569 | |||
| Loans at fair value | 192,156 | 112,931 | 82,474 | 12,800 | |||
| Financing receivables | 1,253,494 | 1,738,742 | 1,969,456 | 305,656 | |||
| Amounts due from related parties | 884,006 | 1,064,703 | 768,646 | 119,292 | |||
| Held-to-maturity investments | 3,286 | 2,233 | 2,200 | 341 | |||
| Available-for-sale investments | 175,515 | 224,336 | 277,934 | 43,135 | |||
| Property, equipment and software, net | 147,193 | 123,491 | 115,326 | 17,898 | |||
| Deferred tax assets | 16,745 | 8,629 | 6,285 | 975 | |||
| Right-of-use assets | 105,674 | 93,783 | 70,897 | 11,003 | |||
| Total assets | 6,702,253 | 7,200,158 | 7,556,413 | 1,172,737 | |||
| Accounts payable | 9,903 | 64,469 | 36,799 | 5,711 | |||
| Amounts due to related parties | 970,309 | 498,053 | 474,925 | 73,707 | |||
| Deferred revenue | 50,899 | 21,137 | 11,862 | 1,841 | |||
| Payable to investors at fair value | 52,623 | 51,289 | 50,814 | 7,886 | |||
| Accrued expenses and other liabilities | 1,208,915 | 1,238,591 | 1,245,263 | 193,262 | |||
| Secured borrowings | 500,500 | 968,600 | 1,038,600 | 161,188 | |||
| Refund liability | 10,845 | 6,412 | 5,927 | 920 | |||
| Deferred tax liabilities | 38,741 | 118,654 | 147,575 | 22,903 | |||
| Lease liabilities | 81,854 | 70,114 | 53,194 | 8,256 | |||
| Total liabilities | 2,924,589 | 3,037,319 | 3,064,959 | 475,674 | |||
| Ordinary shares | 121 | 122 | 123 | 19 | |||
| Additional paid-in capital | 5,058,176 | 5,065,177 | 5,096,994 | 791,041 | |||
| Treasury stock | (40,147 | ) | (40,147 | ) | (42,502 | ) | (6,596 |
| Accumulated other<br> comprehensive income | 17,108 | 16,139 | 14,442 | 2,241 | |||
| Accumulated deficit | (1,257,594 | ) | (878,452 | ) | (577,603 | ) | (89,642 |
| Total equity | 3,777,664 | 4,162,839 | 4,491,454 | 697,063 | |||
| Total liabilities and equity | 6,702,253 | 7,200,158 | 7,556,413 | 1,172,737 |
All values are in US Dollars.
Operating Highlights and Reconciliation ofGAAP to Non-GAAP Measures
(in thousands, except for number of borrowers,number of investors and percentages)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, <br> 2020 | June 30, <br> 2021 | September 30, <br> 2021 | September 30, 2021 | September 30, <br> 2020 | September 30, <br> 2021 | September 30, 2021 | ||||||
| RMB | RMB | RMB | RMB | RMB | ||||||||
| Operating Highlights | ||||||||||||
| Amount of investment in current investment products | 4,593,256 | 5,343,601 | 5,030,228 | 780,679 | 8,942,780 | 16,196,885 | 2,513,717 | |||||
| Number of investors in current investment products | 76,707 | 120,091 | 127,378 | 127,378 | 90,888 | 299,186 | 299,186 | |||||
| Amount of loans facilitated under loan facilitation model | 3,148,367 | 5,252,859 | 6,841,921 | 1,061,849 | 5,412,281 | 17,025,066 | 2,642,249 | |||||
| Number of borrowers | 143,238 | 434,153 | 548,495 | 548,495 | 360,170 | 967,057 | 967,057 | |||||
| Remaining principal of performing loans facilitated under loan facilitation model | 6,250,343 | 12,543,745 | 13,793,925 | 2,140,784 | 6,250,343 | 13,793,925 | 2,140,784 | |||||
| Segment Information | ||||||||||||
| Wealth management: | ||||||||||||
| Revenue | 281,050 | 286,839 | 337,627 | 52,399 | 1,019,307 | 888,209 | 137,848 | |||||
| Sales and marketing expenses | 43,879 | 29,044 | 55,463 | 8,608 | 156,659 | 123,494 | 19,166 | |||||
| Origination,servicing and other operating costs | 105,522 | 150,505 | 159,348 | 24,731 | 176,015 | 442,363 | 68,654 | |||||
| Consumer credit: | ||||||||||||
| Revenue | 741,712 | 838,196 | 894,364 | 138,803 | 1,781,804 | 2,568,780 | 398,668 | |||||
| Sales and marketing expenses | 441,176 | 407,838 | 351,709 | 54,584 | 1,453,303 | 1,125,736 | 174,711 | |||||
| Origination,servicing and other operating costs | 134,134 | 32,162 | 27,567 | 4,278 | 331,741 | 101,744 | 15,790 | |||||
| Reconciliation of Adjusted EBITDA | ||||||||||||
| Net income/(loss) | 79,837 | 200,080 | 320,925 | 49,807 | (133,139 | ) | 702,219 | 108,983 | ||||
| Interest (income)/expense, net | (11,003 | ) | 22,782 | 21,565 | 3,347 | (53,069 | ) | 55,327 | 8,587 | |||
| Income tax expense/(benefit) | 16,353 | 55,259 | 75,923 | 11,783 | (27,269 | ) | 175,555 | 27,245 | ||||
| Depreciation and amortization | 23,404 | 12,170 | 8,449 | 1,311 | 74,943 | 35,770 | 5,551 | |||||
| Share-based compensation | 8,952 | 5,090 | 11,742 | 1,822 | 16,447 | 16,592 | 2,575 | |||||
| Adjusted EBITDA | 117,543 | 295,381 | 438,604 | 68,070 | (122,087 | ) | 985,463 | 152,941 | ||||
| Adjusted EBITDA margin | 11.5 | % | 26.3 | % | 35.6 | % | 35.6 | -4.4 | % | 28.5 | % | 28.5 |
All values are in US Dollars.
| Delinquency Rates (Loan Facilitation Model) | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 15-29 days | 30-59 days | 60-89 days | |||||||||||||||||||||||||||||||
| All Loans | |||||||||||||||||||||||||||||||||
| December 31, 2015 | 1.3 | % | 1.9 | % | 1.5 | % | |||||||||||||||||||||||||||
| December 31, 2016 | 0.6 | % | 0.8 | % | 0.7 | % | |||||||||||||||||||||||||||
| December 31, 2017 | 0.5 | % | 0.8 | % | 0.6 | % | |||||||||||||||||||||||||||
| December 31, 2018 | 1.0 | % | 1.8 | % | 1.7 | % | |||||||||||||||||||||||||||
| December 31, 2019 | 0.8 | % | 1.3 | % | 1.0 | % | |||||||||||||||||||||||||||
| December 31, 2020 | 0.5 | % | 0.7 | % | 0.6 | % | |||||||||||||||||||||||||||
| March 31, 2021 | 0.5 | % | 0.8 | % | 0.6 | % | |||||||||||||||||||||||||||
| June 30, 2021 | 0.5 | % | 0.8 | % | 0.7 | % | |||||||||||||||||||||||||||
| September 30, 2021 | 0.7 | % | 0.9 | % | 0.8 | % | |||||||||||||||||||||||||||
| Online Channels | |||||||||||||||||||||||||||||||||
| December 31, 2015 | 0.4 | % | 0.7 | % | 0.5 | % | |||||||||||||||||||||||||||
| December 31, 2016 | 0.8 | % | 1.1 | % | 1.7 | % | |||||||||||||||||||||||||||
| December 31, 2017 | 0.3 | % | 0.2 | % | 0.0 | % | |||||||||||||||||||||||||||
| December 31, 2018 | 0.9 | % | 1.7 | % | 1.5 | % | |||||||||||||||||||||||||||
| December 31, 2019 | 1.0 | % | 2.1 | % | 1.6 | % | |||||||||||||||||||||||||||
| December 31, 2020 | 0.6 | % | 1.0 | % | 1.1 | % | |||||||||||||||||||||||||||
| March 31, 2021 | 0.5 | % | 0.9 | % | 0.7 | % | |||||||||||||||||||||||||||
| June 30, 2021 | 0.7 | % | 0.9 | % | 0.8 | % | |||||||||||||||||||||||||||
| September 30, 2021 | 0.8 | % | 1.1 | % | 0.9 | % | |||||||||||||||||||||||||||
| Offline Channels | |||||||||||||||||||||||||||||||||
| December 31, 2015 | 1.3 | % | 2.0 | % | 1.6 | % | |||||||||||||||||||||||||||
| December 31, 2016 | 0.6 | % | 0.8 | % | 0.7 | % | |||||||||||||||||||||||||||
| December 31, 2017 | 0.5 | % | 0.9 | % | 0.7 | % | |||||||||||||||||||||||||||
| December 31, 2018 | 1.1 | % | 1.9 | % | 1.8 | % | |||||||||||||||||||||||||||
| December 31, 2019 | 0.7 | % | 0.9 | % | 0.7 | % | |||||||||||||||||||||||||||
| December 31, 2020 | 0.4 | % | 0.6 | % | 0.4 | % | |||||||||||||||||||||||||||
| March 31, 2021 | 0.4 | % | 0.7 | % | 0.6 | % | |||||||||||||||||||||||||||
| June 30, 2021 | 0.4 | % | 0.7 | % | 0.6 | % | |||||||||||||||||||||||||||
| September 30, 2021 | 0.6 | % | 0.8 | % | 0.7 | % | |||||||||||||||||||||||||||
| Net Charge-Off Rate (Loan Facilitation Model) | |||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||||
| Loan<br> Issued<br> Period | Amount of Loans <br> Facilitated <br> During the Period | Accumulated M3+ Net<br> Charge-Off <br> as of September 30, 2021 | Total Net Charge-Off <br> Rate <br> as of September 30, 2021 | ||||||||||||||||||||||||||||||
| (in RMB thousands) | (in RMB thousands) | ||||||||||||||||||||||||||||||||
| 2015 | 4,530,824 | 249,527 | 5.5 | % | |||||||||||||||||||||||||||||
| 2016 | 3,749,815 | 318,255 | 8.5 | % | |||||||||||||||||||||||||||||
| 2017 | 5,043,494 | 525,863 | 10.4 | % | |||||||||||||||||||||||||||||
| 2018 | 4,211,573 | 415,810 | 9.9 | % | |||||||||||||||||||||||||||||
| 2019 | 3,431,443 | 375,802 | 11.0 | % | |||||||||||||||||||||||||||||
| 2020 | 9,614,819 | 465,215 | 4.8 | % | |||||||||||||||||||||||||||||
| 2021H1 | 10,183,146 | 136,363 | 1.3 | % | |||||||||||||||||||||||||||||
| M3+ Net Charge-Off Rate (Loan Facilitation Model) | |||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Loan <br> Issued <br> Period | Month on Book | ||||||||||||||||||||||||||||||||
| 4 | 7 | 10 | 13 | 16 | 19 | 22 | 25 | 28 | 31 | 34 | |||||||||||||||||||||||
| 2015Q1 | 1.0 | % | 1.9 | % | 2.8 | % | 3.7 | % | 4.3 | % | 4.8 | % | 5.1 | % | 5.3 | % | 5.3 | % | 5.3 | % | 5.2 | % | |||||||||||
| 2015Q2 | 1.1 | % | 2.8 | % | 4.2 | % | 5.3 | % | 6.2 | % | 6.7 | % | 7.0 | % | 7.0 | % | 6.9 | % | 6.8 | % | 6.8 | % | |||||||||||
| 2015Q3 | 0.6 | % | 2.2 | % | 3.8 | % | 5.0 | % | 5.9 | % | 6.5 | % | 6.7 | % | 6.8 | % | 6.7 | % | 6.7 | % | 6.7 | % | |||||||||||
| 2015Q4 | 1.0 | % | 1.5 | % | 2.2 | % | 2.8 | % | 3.1 | % | 3.4 | % | 3.7 | % | 4.0 | % | 4.2 | % | 4.4 | % | 4.4 | % | |||||||||||
| 2016Q1 | 0.6 | % | 0.9 | % | 1.3 | % | 1.7 | % | 2.0 | % | 2.2 | % | 2.4 | % | 2.7 | % | 2.9 | % | 3.0 | % | 3.2 | % | |||||||||||
| 2016Q2 | 0.6 | % | 1.4 | % | 2.3 | % | 3.0 | % | 3.6 | % | 4.2 | % | 4.8 | % | 5.4 | % | 5.8 | % | 6.0 | % | 6.2 | % | |||||||||||
| 2016Q3 | 0.4 | % | 1.7 | % | 2.7 | % | 4.1 | % | 5.3 | % | 6.5 | % | 7.7 | % | 8.6 | % | 9.3 | % | 9.3 | % | 9.5 | % | |||||||||||
| 2016Q4 | 0.3 | % | 2.1 | % | 3.8 | % | 5.4 | % | 7.2 | % | 9.2 | % | 10.4 | % | 11.5 | % | 12.4 | % | 12.9 | % | 13.3 | % | |||||||||||
| 2017Q1 | 0.3 | % | 1.6 | % | 3.4 | % | 5.3 | % | 7.5 | % | 8.9 | % | 10.0 | % | 10.9 | % | 11.6 | % | 12.1 | % | 12.3 | % | |||||||||||
| 2017Q2 | 4.1 | % | 5.8 | % | 7.9 | % | 9.6 | % | 11.3 | % | 12.5 | % | 13.2 | % | 13.9 | % | 14.6 | % | 14.9 | % | 15.1 | % | |||||||||||
| 2017Q3 | 0.3 | % | 1.6 | % | 3.5 | % | 4.9 | % | 6.5 | % | 7.6 | % | 8.4 | % | 8.9 | % | 9.4 | % | 9.9 | % | 10.1 | % | |||||||||||
| 2017Q4 | 0.2 | % | 2.3 | % | 5.1 | % | 6.5 | % | 7.9 | % | 9.0 | % | 9.7 | % | 10.2 | % | 10.7 | % | 11.2 | % | 10.6 | % | |||||||||||
| 2018Q1 | 0.2 | % | 2.9 | % | 5.1 | % | 6.8 | % | 7.2 | % | 7.9 | % | 8.4 | % | 8.7 | % | 9.0 | % | 8.6 | % | 8.1 | % | |||||||||||
| 2018Q2 | 0.7 | % | 4.1 | % | 7.1 | % | 9.4 | % | 11.2 | % | 12.4 | % | 13.4 | % | 14.1 | % | 14.3 | % | 14.1 | % | 14.1 | % | |||||||||||
| 2018Q3 | 0.2 | % | 2.8 | % | 3.6 | % | 4.5 | % | 5.2 | % | 6.4 | % | 7.0 | % | 7.0 | % | 6.9 | % | 7.0 | % | 6.9 | % | |||||||||||
| 2018Q4 | 0.6 | % | 2.2 | % | 3.4 | % | 5.2 | % | 6.9 | % | 9.0 | % | 9.7 | % | 9.9 | % | 9.6 | % | 9.7 | % | |||||||||||||
| 2019Q1 | 0.0 | % | 0.8 | % | 2.0 | % | 3.4 | % | 5.3 | % | 5.9 | % | 6.3 | % | 6.3 | % | 6.3 | % | |||||||||||||||
| 2019Q2 | 0.1 | % | 1.5 | % | 4.5 | % | 7.5 | % | 8.8 | % | 9.2 | % | 9.9 | % | 10.3 | % | |||||||||||||||||
| 2019Q3 | 0.2 | % | 2.9 | % | 6.8 | % | 9.0 | % | 10.4 | % | 12.0 | % | 13.2 | % | |||||||||||||||||||
| 2019Q4 | 0.4 | % | 3.1 | % | 4.9 | % | 6.3 | % | 7.2 | % | 7.9 | % | |||||||||||||||||||||
| 2020Q1 | 0.6 | % | 2.3 | % | 4.1 | % | 5.2 | % | 6.0 | % | |||||||||||||||||||||||
| 2020Q2 | 0.5 | % | 2.5 | % | 4.2 | % | 5.3 | % | |||||||||||||||||||||||||
| 2020Q3 | 1.1 | % | 3.3 | % | 5.1 | % | |||||||||||||||||||||||||||
| 2020Q4 | 0.3 | % | 1.8 | % | |||||||||||||||||||||||||||||
| 2021Q1 | 0.4 | % |