Yiren Digital Reports First Quarter 2025 Financial Results
First Quarter 2025 Operational Highlights
Financial Services Business
- Total loans facilitated in the first quarter of 2025 reached
RMB15.2 billion (US$2.1 billion ), representing a slight decrease of 1% fromRMB15.4 billion in the fourth quarter of 2024 and compared toRMB11.9 billion in the same period of 2024. - Cumulative number of borrowers served reached 12,909,436 as of
March 31, 2025 , representing an increase of 5% from 12,350,400 as ofDecember 31, 2024 , and compared to 9,978,280 as ofMarch 31, 2024 . - Number of borrowers served in the first quarter of 2025 was 1,375,406, representing a decrease of 12% from 1,560,789 in the fourth quarter of 2024 and compared to 1,352,200 in the same period of 2024. The decline was due to our strategic shift towards increasing the repeat borrowing rate among existing high-quality borrowers, combined with the traditionally slow season in the credit business during this period.
- Outstanding balance of performing loans facilitated reached
RMB27.5 billion (US$3.8 billion ) as ofMarch 31, 2025 , representing an increase of 11% fromRMB24.8 billion as ofDecember 31, 2024 and compared toRMB20.2 billion as ofMarch 31, 2024 .
Insurance Brokerage Business
- Cumulative number of insurance clients served reached 1,590,394 as of
March 31, 2025 , representing an increase of 4% from 1,532,119 as ofDecember 31, 2024 , and compared to 1,343,660 as ofMarch 31, 2024 . - Number of insurance clients served in the first quarter of 2025 was 77,541, representing a decrease of 7% from 83,786 in the fourth quarter of 2024, and compared to 73,687 in the same period of 2024. The decrease was due to an industry-wide downturn in new sales impacted by regulatory tightening.
- Gross written premiums in the first quarter of 2025 were
RMB801.8 million (US$110.5 million ), representing a decrease of 27% fromRMB1,100.3 million in the fourth quarter of 2024 and compared toRMB912.4 million in the same period of 2024. The decline was attributed to an industry-wide downturn in new sales impacted by regulatory tightening.
"We are pleased to report another solid and healthy quarter, reflecting the strength of our technology transformation strategy, which focuses on sustainable growth, operational efficiency, technology innovation and international expansion." said Mr.
"Our core business benefits from domestic economic stimulus policies that boost consumption and expand credit access, creating sector-wide opportunities. Through our strategic focus on attracting and serving high-quality borrowers, combined with ongoing integration of advanced technology across our platform, we are well-positioned to capitalize on these favorable conditions and confident in maintaining our growth momentum through 2025."
"In the first quarter of this year, our total revenue reached
First Quarter 2025 Financial Results
Total net revenue in the first quarter of 2025 was
Sales and marketing expenses in the first quarter of 2025 were
Origination, servicing and other operating costs in the first quarter of 2025 were
Research and development expenses in the first quarter of 2025 were
General and administrative expenses in the first quarter of 2025 were
Allowance for contract assets, receivables and others in the first quarter of 2025 was
Provision for contingent liabilities in the first quarter of 2025 was
Income tax expense in the first quarter of 2025 was
Net income in the first quarter of 2025 was
Adjusted EBITDA
[2] (non-GAAP) in the first quarter of 2025 was
Basic and diluted income per ADS in the first quarter of 2025 were
Net cash generated from operating activities in the first quarter of 2025 was
Net cash used in investing activities in the first quarter of 2025 was
Net cash used in financing activities in the first quarter of 2025 was
As of
Delinquency rates
[3]. As of
[1] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform. [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.
[3] Delinquency rates" refers to the outstanding principal balance of loans that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the total performing outstanding principal balance of loans as of a specific date. Loans originating outside mainland |
1) Management Change
Mr.
"On behalf of the Board, we are delighted to welcome William to join the Company. We look forward to his expertise and professionalism further strengthening our organization. We would also like to express our sincere gratitude to Yuning for his dedication and wish him every success in his future endeavors," said Mr.
2) Share Incentive Plan
To promote the success and enhance the value of
Business Outlook
Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the second quarter of 2025 to be between
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
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
Conference Call
Participants who wish to join the call should register online in advance of the conference at:
https://dpregister.com/sreg/10200245/ff3e415b7a
Once registration is completed, participants will receive the dial-in details for the conference call.
Additionally, a live and archived webcast of the conference call will be available at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ZoyvDsQv
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
About
Unaudited Condensed Consolidated Statements of Operations |
|||||
(in thousands, except for share, per share and per ADS data, and percentages) |
|||||
|
For the Three Months Ended |
||||
|
|
|
|
|
|
|
RMB |
|
RMB |
|
USD |
Net revenue: |
|
|
|
|
|
Loan facilitation services |
676,295 |
|
742,394 |
|
102,305 |
Post-origination services |
1,772 |
|
1,744 |
|
240 |
Guarantee services |
16,853 |
|
318,397 |
|
43,876 |
Financing services |
10,666 |
|
41,887 |
|
5,772 |
Insurance brokerage services |
124,926 |
|
71,460 |
|
9,847 |
Electronic commerce services |
502,936 |
|
184,074 |
|
25,366 |
Others |
44,636 |
|
194,570 |
|
26,813 |
Total net revenue |
1,378,084 |
|
1,554,526 |
|
214,219 |
Operating costs and expenses: |
|
|
|
|
|
Sales and marketing |
277,223 |
|
276,952 |
|
38,164 |
Origination,servicing and other operating costs |
233,270 |
|
224,738 |
|
30,970 |
Research and development |
40,521 |
|
85,954 |
|
11,845 |
General and administrative |
83,674 |
|
95,837 |
|
13,207 |
Allowance for contract assets, receivables and others |
102,334 |
|
152,805 |
|
21,057 |
Provision for contingent liabilities |
67,258 |
|
410,763 |
|
56,605 |
Total operating costs and expenses |
804,280 |
|
1,247,049 |
|
171,848 |
Other income/(expenses): |
|
|
|
|
|
Interest income, net |
27,713 |
|
24,206 |
|
3,336 |
Fair value adjustments gain/(loss) |
15,468 |
|
(58,376) |
|
(8,044) |
Others, net |
677 |
|
674 |
|
93 |
Total other income/(expenses) |
43,858 |
|
(33,496) |
|
(4,615) |
Income before provision for income taxes |
617,662 |
|
273,981 |
|
37,756 |
Share of results of equity investees |
- |
|
(129) |
|
(18) |
Income tax expense |
131,779 |
|
26,346 |
|
3,631 |
Net income |
485,883 |
|
247,506 |
|
34,107 |
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding, basic |
174,282,443 |
|
172,800,275 |
|
172,800,275 |
Basic income per share |
2.7879 |
|
1.4323 |
|
0.1974 |
Basic income per ADS |
5.5758 |
|
2.8646 |
|
0.3948 |
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding, diluted |
176,202,571 |
|
173,935,749 |
|
173,935,749 |
Diluted income per share |
2.7575 |
|
1.4230 |
|
0.1961 |
Diluted income per ADS |
5.5150 |
|
2.8460 |
|
0.3922 |
|
|
|
|
|
|
Unaudited Condensed Consolidated Cash Flow Data |
|
|
|
|
|
Net cash generated from operating activities |
631,743 |
|
478,650 |
|
65,960 |
Net cash used in investing activities |
(683,697) |
|
(145,590) |
|
(20,063) |
Net cash used in financing activities |
(14,774) |
|
(80,576) |
|
(11,104) |
Effect of foreign exchange rate changes |
1,340 |
|
2,367 |
|
326 |
Net (decrease)/increase in cash, cash equivalents and restricted cash |
(65,388) |
|
254,851 |
|
35,119 |
Cash, cash equivalents and restricted cash, beginning of period |
6,058,604 |
|
4,101,557 |
|
565,210 |
Cash, cash equivalents and restricted cash, end of period |
5,993,216 |
|
4,356,408 |
|
600,329 |
Unaudited Condensed Consolidated Balance Sheets |
|||||
(in thousands) |
|||||
|
As of |
||||
|
December
31,
|
|
|
|
|
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Cash and cash equivalents |
3,841,284 |
|
4,043,590 |
|
557,222 |
Restricted cash |
260,273 |
|
312,818 |
|
43,107 |
Accounts receivable |
566,541 |
|
583,542 |
|
80,414 |
Guarantee receivable |
474,132 |
|
620,241 |
|
85,472 |
Contract assets, net |
1,008,920 |
|
1,114,576 |
|
153,593 |
Contract cost |
294 |
|
425 |
|
59 |
Prepaid expenses and other assets |
2,361,585 |
|
2,299,149 |
|
316,831 |
Loans at fair value |
421,922 |
|
314,790 |
|
43,379 |
Financing receivables |
17,515 |
|
22,040 |
|
3,037 |
Amounts due from related parties |
3,387,952 |
|
3,284,281 |
|
452,586 |
Financial investments |
437,203 |
|
404,059 |
|
55,681 |
Equity investments |
9,239 |
|
9,110 |
|
1,255 |
Property, equipment and software, net |
78,678 |
|
78,358 |
|
10,798 |
Crypto assets |
- |
|
148,062 |
|
20,403 |
Deferred tax assets |
77,463 |
|
1 |
|
- |
Right-of-use assets |
39,695 |
|
38,917 |
|
5,363 |
Total assets |
12,982,696 |
|
13,273,959 |
|
1,829,200 |
Accounts payable |
43,167 |
|
79,882 |
|
11,008 |
Amounts due to related parties |
129,629 |
|
99,616 |
|
13,727 |
Guarantee liabilities-stand ready |
606,886 |
|
809,726 |
|
111,583 |
Guarantee liabilities-contingent |
578,797 |
|
756,699 |
|
104,276 |
Deferred revenue |
9,479 |
|
482 |
|
66 |
Payable to investors at fair value |
368,022 |
|
287,500 |
|
39,619 |
Accrued expenses and other liabilities |
1,622,050 |
|
1,393,592 |
|
192,042 |
Deferred tax liabilities |
41,471 |
|
54,897 |
|
7,565 |
Lease liabilities |
40,765 |
|
37,808 |
|
5,210 |
Total liabilities |
3,440,266 |
|
3,520,202 |
|
485,096 |
Ordinary shares |
132 |
|
132 |
|
18 |
Additional paid-in capital |
5,198,457 |
|
5,201,567 |
|
716,795 |
|
(170,463) |
|
(170,463) |
|
(23,490) |
Accumulated other comprehensive income |
79,268 |
|
40,903 |
|
5,637 |
Retained earnings |
4,435,036 |
|
4,681,618 |
|
645,144 |
Total equity |
9,542,430 |
|
9,753,757 |
|
1,344,104 |
Total liabilities and equity |
12,982,696 |
|
13,273,959 |
|
1,829,200 |
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 |
||||
|
|
|
|
|
|
|
RMB |
|
RMB |
|
USD |
Operating Highlights |
|
|
|
|
|
Amount of loans facilitated |
11,910,367 |
|
15,237,923 |
|
2,099,842 |
Number of borrowers |
1,352,200 |
|
1,375,406 |
|
1,375,406 |
Remaining principal of performing loans |
20,156,161 |
|
27,458,292 |
|
3,783,854 |
Cumulative number of insurance clients |
1,343,660 |
|
1,590,394 |
|
1,590,394 |
Number of insurance clients |
73,687 |
|
77,541 |
|
77,541 |
Gross written premiums |
912,431 |
|
801,798 |
|
110,491 |
First year premium |
514,141 |
|
412,497 |
|
56,844 |
Renewal premium |
398,290 |
|
389,301 |
|
53,647 |
|
|
|
|
|
|
Segment Information |
|
|
|
|
|
Financial services business: |
|
|
|
|
|
Revenue |
738,117 |
|
1,174,577 |
|
161,861 |
Sales and marketing expenses |
251,922 |
|
260,903 |
|
35,953 |
Origination, servicing and other operating costs |
85,787 |
|
140,623 |
|
19,378 |
Allowance for contract assets, receivables and others |
101,127 |
|
152,112 |
|
20,962 |
Provision for contingent liabilities |
67,258 |
|
410,763 |
|
56,605 |
|
|
|
|
|
|
Insurance brokerage business: |
|
|
|
|
|
Revenue |
124,926 |
|
71,460 |
|
9,847 |
Sales and marketing expenses |
3,565 |
|
2,795 |
|
385 |
Origination, servicing and other operating costs |
136,883 |
|
81,440 |
|
11,223 |
Allowance for contract assets, receivables and others |
1,012 |
|
(578) |
|
(80) |
|
|
|
|
|
|
Consumption & lifestyle business and others: |
|
|
|
|
|
Revenue |
515,041 |
|
308,489 |
|
42,511 |
Sales and marketing expenses |
21,736 |
|
13,254 |
|
1,826 |
Origination, servicing and other operating costs |
10,600 |
|
2,675 |
|
369 |
Allowance for contract assets, receivables and others |
9 |
|
(1,994) |
|
(275) |
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA |
|
|
|
|
|
Net income |
485,883 |
|
247,506 |
|
34,107 |
Interest income, net |
(27,713) |
|
(24,206) |
|
(3,336) |
Income tax expense |
131,779 |
|
26,346 |
|
3,631 |
Depreciation and amortization |
1,892 |
|
2,297 |
|
317 |
Share-based compensation |
1,207 |
|
2,187 |
|
301 |
Fair value adjustments related to crypto assets and financial investment * |
(1,933) |
|
70,824 |
|
9,760 |
Adjusted EBITDA |
591,115 |
|
324,954 |
|
44,780 |
Adjusted EBITDA margin |
42.9 % |
|
20.9 % |
|
20.9 % |
*Due to the expansion of asset categories in which the Company has invested and the significant fluctuations in their fair value changes, adjustments for fair value changes relating to crypto assets and financial investments are hereby incorporated, and historical periods have been restated to enhance investors' comprehension of the Company's financial statements. |
Delinquency Rates |
||||||
|
|
1-30 days |
|
31-60 days |
|
61-90 days |
|
|
1.3 % |
|
0.7 % |
|
0.6 % |
|
|
2.0 % |
|
1.5 % |
|
1.2 % |
|
|
1.7 % |
|
1.2 % |
|
1.1 % |
|
|
2.0 % |
|
1.4 % |
|
1.2 % |
|
|
1.6 % |
|
1.2 % |
|
1.1 % |
|
|
1.6 % |
|
1.2 % |
|
1.2 % |
|
30+ Days Delinquency Rates By Vintage* |
||||||||||||
Loan Issued Period |
|
Month on Book |
|||||||||||
|
|
2 |
4 |
6 |
8 |
10 |
12 |
14 |
16 |
18 |
20 |
22 |
24 |
2020Q1 |
|
0.8 % |
2.0 % |
3.4 % |
4.5 % |
5.4 % |
5.9 % |
6.5 % |
6.8 % |
7.1 % |
7.5 % |
8.1 % |
8.5 % |
2020Q2 |
|
0.6 % |
2.0 % |
3.3 % |
4.5 % |
5.3 % |
6.0 % |
6.4 % |
6.9 % |
7.4 % |
8.0 % |
8.6 % |
8.8 % |
2020Q3 |
|
1.3 % |
2.8 % |
4.3 % |
5.4 % |
6.3 % |
6.9 % |
7.5 % |
8.2 % |
8.9 % |
9.3 % |
9.5 % |
9.5 % |
2020Q4 |
|
0.3 % |
1.4 % |
2.4 % |
3.4 % |
4.3 % |
5.4 % |
6.4 % |
7.3 % |
7.7 % |
8.0 % |
8.2 % |
8.3 % |
2021Q1 |
|
0.5 % |
1.8 % |
3.0 % |
4.2 % |
5.3 % |
6.3 % |
7.1 % |
7.3 % |
7.5 % |
7.7 % |
7.8 % |
7.9 % |
2021Q2 |
|
0.5 % |
2.1 % |
3.8 % |
5.5 % |
6.8 % |
7.5 % |
7.7 % |
7.9 % |
8.1 % |
8.3 % |
8.2 % |
8.2 % |
2021Q3 |
|
0.6 % |
2.5 % |
4.2 % |
5.4 % |
6.1 % |
6.5 % |
6.7 % |
6.9 % |
6.9 % |
6.9 % |
6.9 % |
6.8 % |
2021Q4 |
|
0.8 % |
2.7 % |
4.1 % |
4.9 % |
5.4 % |
5.8 % |
5.8 % |
5.8 % |
5.7 % |
5.6 % |
5.6 % |
5.5 % |
2022Q1 |
|
0.7 % |
2.1 % |
3.2 % |
4.0 % |
4.6 % |
4.8 % |
4.7 % |
4.6 % |
4.6 % |
4.5 % |
4.5 % |
4.4 % |
2022Q2 |
|
0.5 % |
1.8 % |
2.9 % |
3.8 % |
4.3 % |
4.5 % |
4.4 % |
4.3 % |
4.3 % |
4.2 % |
4.2 % |
4.1 % |
2022Q3 |
|
0.6 % |
2.2 % |
3.5 % |
4.3 % |
4.8 % |
5.0 % |
5.0 % |
4.9 % |
4.9 % |
4.8 % |
4.7 % |
4.7 % |
2022Q4 |
|
0.7 % |
2.5 % |
3.9 % |
4.9 % |
5.6 % |
5.9 % |
5.8 % |
5.8 % |
5.7 % |
5.6 % |
5.5 % |
5.4 % |
2023Q1 |
|
0.6 % |
2.4 % |
4.0 % |
5.2 % |
5.9 % |
6.2 % |
6.1 % |
6.0 % |
5.9 % |
5.8 % |
5.7 % |
5.7 % |
2023Q2 |
|
0.7 % |
3.0 % |
4.9 % |
6.3 % |
7.0 % |
7.3 % |
7.2 % |
7.0 % |
6.9 % |
6.8 % |
6.6 % |
|
2023Q3 |
|
0.9 % |
3.7 % |
5.8 % |
7.1 % |
7.9 % |
8.1 % |
8.0 % |
7.9 % |
7.7 % |
7.5 % |
|
|
2023Q4 |
|
0.8 % |
3.6 % |
5.8 % |
7.0 % |
7.6 % |
7.8 % |
7.7 % |
7.6 % |
|
|
|
|
2024Q1 |
|
0.7 % |
3.2 % |
5.0 % |
6.1 % |
6.7 % |
7.0 % |
7.2 % |
|
|
|
|
|
2024Q2 |
|
0.6 % |
2.5 % |
4.2 % |
5.3 % |
6.1 % |
|
|
|
|
|
|
|
2024Q3 |
|
0.6 % |
2.3 % |
3.8 % |
4.8 % |
|
|
|
|
|
|
|
|
2024Q4 |
|
0.7 % |
2.4 % |
|
|
|
|
|
|
|
|
|
|
2025Q1 |
|
0.6 % |
|
|
|
|
|
|
|
|
|
|
|
*The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are more than 30 days past due, as a percentage of the total loans facilitated during that same period. Loans originating
outside mainland |
View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-first-quarter-2025-financial-results-302480094.html
SOURCE