6-K
Yiren Digital Ltd. (YRD)
UNITED STATES
SECURITIES AND EXCHANGECOMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGNPRIVATE ISSUER
PURSUANT TO RULE 13a-16OR 15d-16 UNDER
THE SECURITIES EXCHANGEACT OF 1934
For the month of November 2023
Commission File Number: 001-37657
YIREN DIGITAL LTD.
28/F, China MerchantsBureau Building, 118 Jianguo Road
Chaoyang District,Beijing 100022
The People’sRepublic 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 ¨
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Yiren Digital Reports Third Quarter 2023 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: November 22, 2023
Exhibit 99.1
Yiren Digital Reports Third Quarter 2023 FinancialResults
BEIJING – November 21, 2023 – Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), an AI-driven one-stop select financial and lifestyle services platform in China, today announced its unaudited financial results for the quarter ended September 30, 2023.
Third Quarter 2023 Operational Highlights
Financial Services Business
| ● | Total<br> loans facilitated in the third quarter of 2023 reached RMB9.8 billion (US$1.3 billion), representing<br> an increase of 20.3% from RMB8.2 billion in the second quarter of 2023 and compared to RMB6.3<br> billion in the same period of 2022. |
|---|---|
| ● | Cumulative<br> number of borrowers served reached 8,595,780 as of September 30, 2023, representing<br> an increase of 7.4% from 8,002,372 as of June 30, 2023 and compared to 6,960,095 as<br> of September 30, 2022. |
| ● | Number<br> of borrowers served in the third quarter of 2023 was 1,204,012, representing an increase<br> of 18.7% from 1,013,972 in the second quarter of 2023 and compared to 737,320 in the same<br> period of 2022. The increase<br> was driven by the strong demand for our small revolving loan products and the improvement<br> of customer acquisition efficiency. |
| ● | Outstanding<br> balance of performing loans facilitated reached RMB15.1 billion (US$2.1 billion) as of September 30,<br> 2023, representing an increase of 18.2% from RMB12.8 billion as of June 30, 2023 and<br> compared to RMB10.6 billion as of September 30, 2022. |
Insurance Brokerage Business
| ● | Cumulative<br> number of insurance clients served reached 1,256,762 as of September 30, 2023, representing<br> an increase of 10.9% from 1,133,069 as of June 30, 2023 and compared to 866,874 as of<br> September 30, 2022. |
|---|---|
| ● | Number<br> of insurance clients served in the third quarter of 2023 was 123,693, representing a decrease<br> of 8.7% from 135,449 in the second quarter of 2023 and compared to 156,294 in the same period<br> of 2022. The decrease was primarily a result of our strategic shift towards prioritizing<br> products with higher average premiums. |
| ● | Gross<br> written premiums in the third quarter of 2023 were RMB1,428.5 million (US$195.8 million),<br> representing an increase of 7.2% from RMB1,332.5 million in the second quarter of 2023 and<br> compared to RMB996.9 million in the same period of 2022. The increase was mainly attributed<br> to the contribution from the renewal premiums of long-term insurance policies. |
Consumption and Lifestyle Business
| ● | Total<br> gross merchandise volume generated through our e-commerce platform and “Yiren Select”<br> channel reached RMB563.2 million (US$77.2 million) in the third quarter of 2023, representing<br> an increase of 42.3% from RMB395.8 million in the second quarter of 2023 and compared to<br> RMB249.6 million in the same period of 2022. The increase was mainly due to the continuous<br> growth of paying customers on our e-commerce platform. |
|---|
“Over the past quarter, we invested in AI across the enterprise, and we have noted tangible progress in improving operational efficiencies and enhanced profitability,” said Mr. Ning Tang, Chairman and Chief Executive Officer. “We are confident in maintaining our leading position as an AI and technology-driven financial and lifestyle services platform through continued investments in technological innovation.”
“Amidst a moderately recovering macro environment, we are pleased by the financial results we achieved this quarter with net revenue increasing 56% year-over-year to RMB1.3 billion and net income increasing 105% year-over-year to RMB554.4 million,” Ms. Na Mei, Chief Financial Officer commented. “In the third quarter, we generated approximately RMB645.4 million cash from operations and as of quarter-end, our cash position remains strong at RMB5.4 billion.”
Third Quarter 2023 Financial Results
Totalnet revenue in the third quarter of 2023 was RMB1,310.8 million (US$179.7 million), representing an increase of 55.9% from RMB840.7 million in the third quarter of 2022. Particularly, in the third quarter of 2023, revenue from financial services business was RMB668.0 million (US$91.6 million), representing an increase of 35.4% from RMB493.4 million in the same period of 2022. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB264.6 million (US$36.3 million), representing an increase of 40.0% from RMB189.0 million in the third quarter of 2022. The increase was due to the effectiveness of the cross-selling between property and life insurance, as well as an increase in high-premium policy sales. Revenue from consumption and lifestyle business and others was RMB378.2 million (US$51.8 million), representing an increase of 139.0% from RMB158.3 million in the third quarter of 2022. The increase was primarily attributed to the continuous growth in gross merchandise volume generated through our e-commerce platform, driven by an expanding base of paying customers on the platform.
Salesand marketing expenses in the third quarter of 2023 were RMB195.7 million (US$26.8 million), compared to RMB136.4 million in the same period of 2022. The increase was primarily due to the growth of financial services business volume.
Origination,servicing and other operating costs in the third quarter of 2023 were RMB245.4 million (US$33.6 million), compared to RMB223.6 million in the same period of 2022. The increase was due to the expanding insurance brokerage business.
Researchand development expenses^1^ in the third quarter of 2023 were RMB39.0 million (US$5.3 million), compared to RMB33.4 million in the same period of 2022. The increase was mainly attributed to our ongoing investment in technological innovation.
Generaland administrative expenses in the third quarter of 2023 were RMB53.5 million (US$7.3 million), compared to RMB76.5 million in the same period of 2022. The decrease resulted from the implementation of our strategy to refine operations, leading to improvements in overall cost efficiency.
Allowancefor contract assets, receivables and others in the third quarter of 2023 was RMB83.8 million (US$11.5 million), compared to RMB35.1 million in the same period of 2022. The increase was primarily attributed to the growing volume of loans facilitated on our platform and additional provisions made for the maturing balances of auto-secured loans.
Incometax expense in the third quarter of 2023 was RMB161.9 million (US$22.2 million).
Netincome in the third quarter of 2023 was RMB554.4 million (US$76.0 million), as compared to RMB270.3 million in the same period in 2022. The increase was primarily due to the recovery of business volume and optimization of our business structure.
AdjustedEBITDA^2^ (non-GAAP) in the third quarter of 2023 was RMB692.7 million (US$94.9 million), compared to RMB365.0 million in the same period of 2022.
Basicand diluted income per ADS in the third quarter of 2023 was RMB6.3 (US$0.9) and RMB6.2 (US$0.9), compared to a basic per ADS of RMB3.0 and a diluted per ADS of RMB3.0 in the same period of 2022.
Netcash generated from operating activities in the third quarter of 2023 was RMB645.4 million (US$88.5 million), compared to RMB342.9 million in the same period of 2022.
Netcash used in investing activities in the third quarter of 2023 was RMB393.9 million (US$54.0 million), compared to RMB835.1 million in the same period of 2022.
Netcash used in financing activities in the third quarter of 2023 was RMB502.6 million (US$68.9 million), compared to RMB276.2 million in the same period of 2022.
^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.
^2^“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.
As of September 30, 2023, cash and cash equivalents were RMB5,438.0 million (US$745.3 million), compared to RMB5,808.8 million as of June 30, 2023. As of September 30, 2023, the balance of held-to-maturity investments was RMB4.8 million (US$0.7 million), compared to RMB5.8 million as of June 30, 2023. As of September 30, 2023, the balance of available-for-sale investments was RMB338.1 million (US$46.3 million), compared to RMB102.6 million as of June 30, 2023. As of September 30, 2023, the balance of trading securities was RMB74.2 million (US$10.2 million), compared to nil as of June 30, 2023.
Delinquencyrates. As of September 30, 2023, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.8%, 1.2% and 1.0%, respectively, compared to 0.7%, 1.1% and 1.1%, respectively, as of June 30, 2023.
CumulativeM3+ net charge-off rates. As of September 30, 2023, the cumulative M3+ net charge-off rates for loans originated in 2020, 2021 and 2022 were 7.9%, 6.5% and 4.5%, respectively, as compared to 8.0%, 6.6% and 3.9%, respectively, as of June 30, 2023.
Business Outlook
Based on the Company’s preliminary assessment of business and market conditions, the Company projects the total revenue in the fourth quarter of 2023 to be between RMB1.0 billion to RMB1.3 billion, with net profit margin expected to remain stable.
This is the Company’s current and preliminary view, which is subject to changes and uncertainties.
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 RMB7.2960 to US$1.00, the effective noon buying rate on September 29, 2023, 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 November 21, 2023 (or 9:00 p.m. Beijing/Hong Kong Time on November 21, 2023).
Participants who wish to join the call should register online in advance of the conference at:
https://s1.c-conf.com/diamondpass/10035120-gh876t.html
Once registration is completed, participants will receive the dial-in details for the conference call.
Additionally, a live and archived webcast of the conference call will be available at https://ir.yirendai.com/presentations-webcasts
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 AI-driven one-stop select financial and lifestyle services platform in China. The Company provides personalized insurance solutions for individuals, families, and businesses, along with high-quality lifestyle services to enhance clients’ well-being and security, as well as offers financial consulting services for clients throughout their growth journey, addressing financing needs that arise from consumption and production.
For investor and media inquiries, please contact:
Yiren Digital
Investor Relations
Email: ir@Yirendai.com
Unaudited Condensed Consolidated Statementsof Operations
(in thousands, except for share, per shareand per ADS data, and percentages)
| For the<br> Three Months Ended | For the<br> Nine Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br><br>30,<br> <br> 2022 | June<br><br>30,<br> <br> 2023 | September<br><br>30,<br> <br> 2023 | September<br>30,<br> 2023 | September<br><br>30,<br> <br> 2022 | September<br><br>30,<br> <br> 2023 | September<br>30,<br> 2023 | |||||||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||||||||
| Net revenue: | |||||||||||||||||||
| Loan facilitation services | 334,162 | 514,353 | 586,883 | 837,548 | 1,518,401 | ||||||||||||||
| Post-origination services | 74,433 | 5,273 | 984 | 166,720 | 12,573 | ||||||||||||||
| Insurance brokerage services | 189,019 | 404,695 | 264,611 | 532,770 | 865,664 | ||||||||||||||
| Financing services | 54,702 | 14,896 | 9,937 | 242,843 | 47,410 | ||||||||||||||
| Electronic commerce services | 52,954 | 287,725 | 350,635 | 173,742 | 881,218 | ||||||||||||||
| Others | 135,385 | 97,264 | 97,724 | 392,921 | 296,057 | ||||||||||||||
| Total net revenue | 840,655 | 1,324,206 | 1,310,774 | 2,346,544 | 3,621,323 | ||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||
| Sales and marketing | 136,406 | 148,947 | 195,714 | 470,547 | 450,873 | ||||||||||||||
| Origination, servicing and other operating costs | 223,622 | 346,367 | 245,360 | 565,250 | 791,472 | ||||||||||||||
| Research and development expenses | 33,422 | 33,018 | 38,981 | 118,987 | 101,168 | ||||||||||||||
| General and administrative | 76,525 | 63,723 | 53,519 | 219,472 | 180,623 | ||||||||||||||
| Allowance for contract assets, receivables<br> and others | 35,074 | 60,840 | 83,756 | 132,476 | 189,501 | ||||||||||||||
| Total operating costs and expenses | 505,049 | 652,895 | 617,330 | 1,506,732 | 1,713,637 | ||||||||||||||
| Other (expenses)/income: | |||||||||||||||||||
| Interest (expense)/income, net | (378 | ) | 10,535 | 25,815 | (29,741 | ) | 50,869 | ||||||||||||
| Fair value adjustments related to Consolidated ABFE | 2,077 | (17,470 | ) | (8,104 | ) | ) | 21,862 | (36,777 | ) | ) | |||||||||
| Others, net | 3,035 | 2,730 | 5,177 | 18,930 | 11,496 | ||||||||||||||
| Total other income/(expenses) | 4,734 | (4,205 | ) | 22,888 | 11,051 | 25,588 | |||||||||||||
| Income before provision for income taxes | 340,340 | 667,106 | 716,332 | 850,863 | 1,933,274 | ||||||||||||||
| Income tax expense | 70,020 | 139,758 | 161,917 | 141,227 | 424,345 | ||||||||||||||
| Net income | 270,320 | 527,348 | 554,415 | 709,636 | 1,508,929 | ||||||||||||||
| Weighted average number of ordinary shares outstanding,<br> basic | 179,409,525 | 176,929,176 | 176,866,653 | 173,174,370 | 177,189,206 | ||||||||||||||
| Basic income per share | 1.5067 | 2.9806 | 3.1346 | 4.0978 | 8.5159 | ||||||||||||||
| Basic income per ADS | 3.0134 | 5.9612 | 6.2692 | 8.1956 | 17.0318 | ||||||||||||||
| Weighted average number of ordinary shares outstanding,<br> diluted | 179,841,065 | 179,124,032 | 178,366,565 | 173,962,494 | 179,220,434 | ||||||||||||||
| Diluted income per share | 1.5031 | 2.9440 | 3.1083 | 4.0792 | 8.4194 | ||||||||||||||
| Diluted income per ADS | 3.0062 | 5.8880 | 6.2166 | 8.1584 | 16.8388 | ||||||||||||||
| Unaudited Condensed Consolidated Cash Flow Data | |||||||||||||||||||
| Net cash generated from operating activities | 342,888 | 718,058 | 645,416 | 1,377,540 | 1,753,781 | ||||||||||||||
| Net cash (used in)/provided by investing activities | (835,064 | ) | (19,988 | ) | (393,919 | ) | ) | (230,586 | ) | 360,376 | |||||||||
| Net cash used in financing activities | (276,198 | ) | (6,120 | ) | (502,636 | ) | ) | (434,572 | ) | (901,587 | ) | ) | |||||||
| Effect of foreign exchange rate changes | 2,284 | 329 | 2,395 | 3,592 | 2,543 | ||||||||||||||
| Net increase in cash, cash equivalents and restricted cash | (766,090 | ) | 692,279 | (248,744 | ) | ) | 715,974 | 1,215,113 | |||||||||||
| Cash, cash equivalents and restricted<br> cash, beginning of period | 4,427,408 | 5,132,273 | 5,824,552 | 2,945,344 | 4,360,695 | ||||||||||||||
| Cash, cash equivalents and restricted<br> cash, end of period | 3,661,318 | 5,824,552 | 5,575,808 | 3,661,318 | 5,575,808 |
All values are in US Dollars.
| Unaudited Condensed Consolidated Balance Sheets<br><br><br><br>(inthousands) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| As of | |||||||||||
| December<br> 31, <br> 2022 | June<br> 30, <br> 2023 | September<br> 30, <br> 2023 | September 30, 2023 | ||||||||
| RMB | RMB | RMB | |||||||||
| Cash and cash equivalents | 4,271,899 | 5,808,775 | 5,437,972 | ||||||||
| Restricted cash | 88,796 | 15,777 | 137,836 | ||||||||
| Trading securities | - | - | 74,185 | ||||||||
| Accounts receivable | 221,004 | 490,680 | 432,824 | ||||||||
| Contract assets, net | 626,739 | 694,507 | 826,088 | ||||||||
| Contract cost | 787 | 356 | 271 | ||||||||
| Prepaid expenses and other assets | 321,411 | 297,018 | 272,577 | ||||||||
| Loans at fair value | 54,049 | 412,389 | 534,687 | ||||||||
| Financing receivables | 514,388 | 252,878 | 162,411 | ||||||||
| Amounts due from related parties | 1,266,232 | 1,098,164 | 940,472 | ||||||||
| Held-to-maturity investments | 2,700 | 5,820 | 4,820 | ||||||||
| Available-for-sale investments | 972,738 | 102,594 | 338,069 | ||||||||
| Property, equipment and software, net | 77,256 | 73,991 | 73,446 | ||||||||
| Deferred tax assets | 84,187 | 92,359 | 88,231 | ||||||||
| Right-of-use assets | 33,909 | 25,424 | 27,352 | ||||||||
| Total assets | 8,536,095 | 9,370,732 | 9,351,241 | ||||||||
| Accounts payable | 14,144 | 66,738 | 38,025 | ||||||||
| Amounts due to related parties | 227,724 | 338,779 | 27,664 | ||||||||
| Deferred revenue | 65,539 | 32,450 | 27,150 | ||||||||
| Accrued expenses and other liabilities | 1,315,006 | 1,427,016 | 1,483,190 | ||||||||
| Secured borrowings | 767,900 | 392,100 | - | ||||||||
| Deferred tax liabilities | 79,740 | 100,178 | 118,543 | ||||||||
| Lease liabilities | 35,229 | 26,930 | 27,709 | ||||||||
| Total liabilities | 2,505,282 | 2,384,191 | 1,822,235 | ||||||||
| Ordinary shares | 129 | 130 | 130 | ||||||||
| Additional paid-in capital | 5,160,783 | 5,168,632 | 5,169,821 | ||||||||
| Treasury stock | (46,734 | ) | (66,914 | ) | (81,501 | ) | ) | ||||
| Accumulated other comprehensive income | 7,765 | 23,748 | 25,873 | ||||||||
| Retained earnings | 908,870 | 1,860,945 | 2,414,683 | ||||||||
| Total equity | 6,030,813 | 6,986,541 | 7,529,006 | ||||||||
| Total liabilities and equity | 8,536,095 | 9,370,732 | 9,351,241 |
All values are in US Dollars.
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 Nine Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September<br><br>30, <br> 2022 | June<br><br>30, <br> 2023 | September<br><br>30, <br> 2023 | September<br>30, 2023 | September<br><br>30, <br> 2022 | September<br><br>30, <br> 2023 | September<br>30, 2023 | |||||||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||||||||
| Operating Highlights | |||||||||||||||||||
| Gross written premiums | 996,864 | 1,332,458 | 1,428,484 | 2,601,100 | 3,684,325 | ||||||||||||||
| First year premium | 767,250 | 1,101,928 | 914,839 | 2,071,610 | 2,644,082 | ||||||||||||||
| Renewal premium | 229,614 | 230,530 | 513,645 | 529,490 | 1,040,243 | ||||||||||||||
| Number of insurance clients | 156,294 | 135,449 | 123,693 | 352,175 | 293,254 | ||||||||||||||
| Cumulative number of insurance clients | 866,874 | 1,133,069 | 1,256,762 | 866,874 | 1,256,762 | ||||||||||||||
| Amount of loans facilitated | 6,298,522 | 8,156,201 | 9,814,359 | 15,839,577 | 24,390,773 | ||||||||||||||
| Number of borrowers | 737,320 | 1,013,972 | 1,204,012 | 1,228,435 | 2,128,924 | ||||||||||||||
| Remaining principal of performing loans | 10,630,352 | 12,768,448 | 15,090,800 | 10,630,352 | 15,090,800 | ||||||||||||||
| Gross merchandise volume | 249,624 | 395,820 | 563,224 | 395,762 | 1,267,611 | ||||||||||||||
| Segment Information | |||||||||||||||||||
| Insurance brokerage business: | |||||||||||||||||||
| Revenue | 189,019 | 404,695 | 264,611 | 532,770 | 865,664 | ||||||||||||||
| Sales and marketing expenses | 2,565 | 3,845 | 3,175 | 14,783 | 9,309 | ||||||||||||||
| Origination, servicing and other operating costs | 152,983 | 289,851 | 176,182 | 387,511 | 599,650 | ||||||||||||||
| Financial services business: | |||||||||||||||||||
| Revenue | 493,369 | 581,974 | 667,966 | 1,320,565 | 1,733,813 | ||||||||||||||
| Sales and marketing expenses | 88,714 | 103,164 | 146,369 | 325,934 | 311,751 | ||||||||||||||
| Origination, servicing and other operating costs | 39,951 | 38,961 | 59,300 | 113,454 | 145,870 | ||||||||||||||
| Consumption & lifestyle business and others: | |||||||||||||||||||
| Revenue | 158,267 | 337,537 | 378,197 | 493,209 | 1,021,846 | ||||||||||||||
| Sales and marketing expenses | 45,127 | 41,938 | 46,170 | 129,830 | 129,813 | ||||||||||||||
| Origination, servicing and other operating costs | 30,688 | 17,555 | 9,878 | 64,285 | 45,952 | ||||||||||||||
| Reconciliation of Adjusted EBITDA | |||||||||||||||||||
| Net income | 270,320 | 527,348 | 554,415 | 709,636 | 1,508,929 | ||||||||||||||
| Interest expense/(income), net | 378 | (10,535 | ) | (25,815 | ) | ) | 29,741 | (50,869 | ) | ) | |||||||||
| Income tax expense | 70,020 | 139,758 | 161,917 | 141,227 | 424,345 | ||||||||||||||
| Depreciation and amortization | 8,514 | 1,778 | 1,664 | 23,893 | 5,310 | ||||||||||||||
| Share-based compensation | 15,760 | 3,321 | 513 | 20,642 | 5,923 | ||||||||||||||
| Adjusted EBITDA | 364,992 | 661,670 | 692,694 | 925,139 | 1,893,638 | ||||||||||||||
| Adjusted EBITDA margin | 43.4 | % | 50.0 | % | 52.8 | % | % | 39.4 | % | 52.3 | % | % |
All values are in US Dollars.
| 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 | % | ||||||||||||||||
| March 31, 2023 | 0.6 | % | 1.2 | % | 1.2 | % | ||||||||||||||||
| June 30, 2023 | 0.7 | % | 1.1 | % | 1.1 | % | ||||||||||||||||
| September 30, 2023 | 0.8 | % | 1.2 | % | 1.0 | % | ||||||||||||||||
| Net Charge-Off Rate | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||
| Loan <br><br>Issued <br><br>Period | Amount of Loans<br><br> Facilitated <br> During the Period | Accumulated M3+ Net<br><br> Charge-Off <br> as of September 30, 2023 | Total Net Charge-Off <br><br>Rate <br> as of September 30, <br><br>2023 | |||||||||||||||||||
| (in RMB thousands) | (in RMB thousands) | |||||||||||||||||||||
| 2019 | 3,431,443 | 390,347 | 11.4 | % | ||||||||||||||||||
| 2020 | 9,614,819 | 761,411 | 7.9 | % | ||||||||||||||||||
| 2021 | 23,195,224 | 1,502,598 | 6.5 | % | ||||||||||||||||||
| 2022 | 22,623,101 | 1,019,963 | 4.5 | % | ||||||||||||||||||
| 2023H1 | 14,576,413 | 249,378 | 1.7 | % | ||||||||||||||||||
| M3+ Net Charge-Off Rate | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Loan<br><br> Issued<br><br> 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 | % | ||
| 2021Q1 | 0.4 | % | 2.3 | % | 3.9 | % | 5.5 | % | 6.7 | % | 7.0 | % | 7.2 | % | 7.3 | % | 7.2 | % | ||||
| 2021Q2 | 0.4 | % | 2.4 | % | 4.5 | % | 5.9 | % | 6.4 | % | 6.7 | % | 6.8 | % | 6.7 | % | ||||||
| 2021Q3 | 0.5 | % | 3.1 | % | 5.0 | % | 5.9 | % | 6.3 | % | 6.4 | % | 6.4 | % | ||||||||
| 2021Q4 | 0.6 | % | 3.2 | % | 4.6 | % | 5.3 | % | 5.4 | % | 5.4 | % | ||||||||||
| 2022Q1 | 0.6 | % | 2.5 | % | 3.8 | % | 4.5 | % | 4.5 | % | ||||||||||||
| 2022Q2 | 0.4 | % | 2.2 | % | 3.6 | % | 4.1 | % | ||||||||||||||
| 2022Q3 | 0.5 | % | 2.7 | % | 4.1 | % | ||||||||||||||||
| 2022Q4 | 0.6 | % | 3.0 | % | ||||||||||||||||||
| 2023Q1 | 0.5 | % |