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First Quarter 2020 Operational Highlights
Wealth Management—Yiren Wealth
- Cumulative number of investors served reached 2,218,181 as of
March 31, 2020 , representing an increase of 0.3% from 2,210,530 as ofDecember 31, 2019 and compared to 2,159,771 as ofMarch 31, 2019 . - Number of current investors was 220,568 as of
March 31, 2020 , representing a decrease of 10.5% from 246, 561 as ofDecember 31, 2019 . - Number of current non-P2P investors was 26,346 as of
March 31, 2020 , representing an increase of 23.3% from 21,360 as ofDecember 31, 2019 and compared to 19,236 as ofMarch 31, 2019 . - Total assets under administration ("AUA") for P2P products on Yiren Wealth was
RMB 30,536.4 million (US$ 4,312.6 million ) as ofMarch 31, 2020 , representing a decrease of 10.9% fromRMB 34,264.8 million as ofDecember 31, 2019 , and compared toRMB 46,236.7 million as ofMarch 31, 2019 . - Total AUA for non-P2P products on Yiren Wealth was
RMB 1,713.1 million (US$241.9 million ) as ofMarch 31, 2020 , representing an increase of 66.8% fromRMB 1,026.9 million as ofDecember 31, 2019 and compared toRMB 424.9 million as ofMarch 31, 2019 . - Sales volume of non-P2P products amounted to
RMB 2,163.3 million (US$ 305.5 million ) in the first quarter of 2020, representing a decrease of 15.1% fromRMB 2,548.4 million in the fourth quarter of 2019 and compared toRMB 328.7 million in the same period of 2019.
Consumer Credit—Yiren Credit
- Total loan originations in the first quarter of 2020 reached
RMB 1.8 billion (US$0.3 billion ), representing a decrease of 77.0% fromRMB 8.0 billion in the fourth quarter of 2019 and compared toRMB 10.9 billion in the first quarter of 2019. - Cumulative number of borrowers served reached 4,810,184 as of
March 31, 2020 , representing an increase of 2.4% from 4,695,487 as ofDecember 31, 2019 and compared to 4,405,115 as ofMarch 31, 2019 . - Number of borrowers served in the first quarter of 2020 was 115,420, representing a decrease of 8.1% from 125,622 in the fourth quarter of 2019 and compared to 149,715 in the first quarter of 2019.
- The percentage of loan volume generated by repeat borrowers was 4.9% in the first quarter of 2020.
- 51.4% of loan originations were generated online in the first quarter of 2020.
- Total outstanding principal balance of performing loans reached
RMB 42,063.0 million (US$ 5,940.4 million ) as ofMarch 31,2020 , representing a decrease of 17.8% fromRMB 51,157.3 million as ofDecember 31, 2019 .
"During this unprecedented time, our core businesses remained stable while we made substantial progress to diversify and enrich our business lines as we continue our business transformation into
"For credit business, we have rolled out a series of new products to provide a full spectrum of credit services and meet broader needs for mainstream consumers' daily financing, including small-ticket-shorter-tenor loans, auto loans and SME loans. For the micro and small loans, we launched our products and services partnering with online consumption platforms. To fully leverage our nationwide service network coverage, we have rolled out auto loans targeted at second-handed cars, and the business has shown encouraging early growth momentum."
"On the wealth management front, non-P2P products are increasingly popular among investors and have seen strong growth. As of
"Under the challenging operating environment amid the pandemic in the first quarter of 2020, we maintained strong liquidity and profitability," said Mr.
"For credit performance and the risk management, overall, early delinquencies increased in the first quarter and reached its peak at the end of March due to the pandemic situation before it quickly declined in April and returned to near pre-pandemic level in May." said Mr.
First Quarter 2020 Financial Results
Total amount of loans facilitated in the first quarter of 2020 was
Total net revenue in the first quarter of 2020 was
Sales and marketing expenses in the first quarter of 2020 were
Origination and servicing costs in the first quarter of 2020 were
General and administrative expenses in the first quarter of 2020 were
Allowance for contract assets and receivables in the first quarter of 2020 were
Income tax expense in the first quarter of 2020 was
Net income in the first quarter of 2020 was
Adjusted EBITDA (non-GAAP) in the first quarter of 2020 was
Basic income per ADS in the first quarter of 2020 was
Diluted income per ADS in the first quarter of 2020 was
Net cash generated from operating activities in the first quarter of 2020 was
Net cash used in investing activities in the first quarter of 2020 was
As of
Delinquency rates. As of
Cumulative M3+ net charge-off rates. As of
[1] Adjusted EBITDA margin is a non-GAAP financial measure calculated as adjusted EBITDA divided by total net revenue. |
Accounting Policy Change
Effective
The CECL methodology is applicable to estimation of credit losses of financial assets measured at amortized cost, primarily including accounts receivable, contract assets, financing receivables and other receivables. As a result, the Company recognized the cumulative effect as a decrease of approximately
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:
http://apac.directeventreg.com/registration/event/2773237
Please note the Conference ID number of 2773237
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 July 1, 2020:
International |
+61 2-8199-0299 |
|
+1 646-254-3697 |
Replay Access Code: |
2773237 |
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
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 |
1,055,046 |
358,541 |
50,636 |
||
Post-origination services |
296,279 |
146,520 |
20,693 |
||
Account management services |
488,340 |
413,166 |
58,350 |
||
Others |
140,743 |
105,433 |
14,890 |
||
Total net revenue |
1,980,408 |
1,023,660 |
144,569 |
||
Operating costs and expenses: |
|||||
Sales and marketing |
1,127,945 |
616,441 |
87,058 |
||
Origination and servicing |
172,123 |
102,918 |
14,535 |
||
General and administrative |
257,707 |
149,041 |
21,049 |
||
Allowance for contract assets and receivables |
191,104 |
143,385 |
20,250 |
||
Total operating costs and expenses |
1,748,879 |
1,011,785 |
142,892 |
||
Other income/(expenses): |
|||||
Interest income, net |
23,875 |
25,116 |
3,547 |
||
Fair value adjustments related to Consolidated ABFE |
34,998 |
(26,020) |
(3,675) |
||
Others, net |
160,223 |
12,184 |
1,721 |
||
Total other income/(expenses) |
219,096 |
11,280 |
1,593 |
||
Income before provision for income taxes |
450,625 |
23,155 |
3,270 |
||
Share of results of equity investees |
(4,957) |
- |
- |
||
Income tax expense |
76,534 |
3,936 |
556 |
||
Net income |
369,134 |
19,219 |
2,714 |
||
Weighted average number of ordinary shares outstanding, basic |
185,126,457 |
185,600,961 |
185,600,961 |
||
Basic income per share |
1.9940 |
0.1036 |
0.0146 |
||
Basic income per ADS |
3.9880 |
0.2072 |
0.0292 |
||
Weighted average number of ordinary shares outstanding, diluted |
186,578,885 |
186,166,429 |
186,166,429 |
||
Diluted income per share |
1.9784 |
0.1032 |
0.0146 |
||
Diluted income per ADS |
3.9568 |
0.2064 |
0.0292 |
||
Unaudited Condensed Consolidated Cash Flow Data |
|||||
Net cash (used in)/ generated from operating activities |
(658,435) |
557,762 |
78,771 |
||
Net cash used in investing activities |
(249,931) |
(524,479) |
(74,070) |
||
Net cash provided by/ (used in) financing activities |
493,389 |
(65,637) |
(9,270) |
||
Effect of foreign exchange rate changes |
(2,196) |
1,206 |
170 |
||
Net decrease in cash, cash equivalents and restricted cash |
(417,173) |
(31,148) |
(4,399) |
||
Cash, cash equivalents and restricted cash, beginning of period |
3,034,484 |
3,269,142 |
461,691 |
||
Cash, cash equivalents and restricted cash, end of period |
2,617,311 |
3,237,994 |
457,292 |
Unaudited Condensed Consolidated Balance Sheets |
||||||
(in thousands) |
||||||
As of |
||||||
|
|
|
||||
RMB |
RMB |
USD |
||||
Cash and cash equivalents |
3,198,086 |
3,194,993 |
451,219 |
|||
Restricted cash |
71,056 |
43,001 |
6,073 |
|||
Accounts receivable |
3,398 |
33,902 |
4,788 |
|||
Contract assets, net |
2,398,685 |
1,873,548 |
264,596 |
|||
Contract cost |
160,003 |
149,917 |
21,172 |
|||
Prepaid expenses and other assets |
1,333,221 |
868,462 |
122,651 |
|||
Loans at fair value |
418,492 |
313,267 |
44,242 |
|||
Financing receivables |
29,612 |
33,381 |
4,714 |
|||
Amounts due from related parties |
988,853 |
1,583,859 |
223,684 |
|||
Held-to-maturity investments |
6,627 |
4,399 |
621 |
|||
Available-for-sale investments |
460,991 |
456,061 |
64,408 |
|||
Property, equipment and software, net |
195,855 |
188,880 |
26,675 |
|||
Deferred tax assets |
45,407 |
42,084 |
5,943 |
|||
Right-of-use assets |
334,134 |
291,028 |
41,101 |
|||
Total assets |
9,644,420 |
9,076,782 |
1,281,887 |
|||
Accounts payable |
43,583 |
39,068 |
5,517 |
|||
Amounts due to related parties |
106,645 |
112,034 |
15,822 |
|||
Liabilities from quality assurance program and guarantee |
4,397 |
3,487 |
492 |
|||
Deferred revenue |
358,203 |
254,933 |
36,003 |
|||
Accrued expenses and other liabilities |
2,338,745 |
1,946,205 |
274,858 |
|||
Refund liability |
1,801,535 |
1,760,942 |
248,692 |
|||
Deferred tax liabilities |
218,888 |
216,304 |
30,549 |
|||
Lease liabilities |
282,334 |
259,197 |
36,606 |
|||
Total liabilities |
5,154,330 |
4,592,170 |
648,539 |
|||
Ordinary shares |
121 |
121 |
17 |
|||
Additional paid-in capital |
5,038,691 |
5,045,268 |
712,528 |
|||
|
(37,097) |
(37,097) |
(5,239) |
|||
Accumulated other comprehensive income |
21,855 |
18,671 |
2,637 |
|||
Accumulated deficit |
(533,480) |
(542,351) |
(76,595) |
|||
Total (deficit)/ equity |
4,490,090 |
4,484,612 |
633,348 |
|||
Total liabilities and equity |
9,644,420 |
9,076,782 |
1,281,887 |
Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures |
||||||
(in thousands, except for number of borrowers, number of investors and percentages) |
||||||
For the Three Months Ended |
||||||
|
|
|
||||
RMB |
RMB |
USD |
||||
Operating Highlights |
||||||
Amount of p2p investment |
11,435,588 |
5,203,747 |
734,909 |
|||
Number of p2p investors |
200,780 |
78,256 |
78,256 |
|||
Amount of non-p2p investment |
328,708 |
2,163,313 |
305,518 |
|||
Number of non-p2p investors |
14,022 |
18,809 |
18,809 |
|||
Amount of loans facilitated |
10,934,923 |
1,839,454 |
259,781 |
|||
Number of borrowers |
149,715 |
115,420 |
115,420 |
|||
Remaining principal of performing loans |
63,213,843 |
42,063,039 |
5,940,436 |
|||
Segment Information |
||||||
Wealth management: |
||||||
Revenue |
521,434 |
415,876 |
58,733 |
|||
Sales and marketing expenses |
143,904 |
67,326 |
9,508 |
|||
Consumer credit: |
||||||
Revenue |
1,458,974 |
607,784 |
85,836 |
|||
Sales and marketing expenses |
984,041 |
549,115 |
77,550 |
|||
Reconciliation of Adjusted EBITDA |
||||||
Net income |
369,134 |
19,219 |
2,714 |
|||
Interest income, net |
(23,875) |
(25,116) |
(3,547) |
|||
Income tax expense |
76,534 |
3,936 |
556 |
|||
Depreciation and amortization |
32,502 |
27,171 |
3,837 |
|||
Share-based compensation |
14,699 |
4,541 |
641 |
|||
Adjusted EBITDA |
468,994 |
29,751 |
4,201 |
|||
Adjusted EBITDA margin |
23.7% |
2.9% |
2.9% |
Delinquency Rates |
||||||
Delinquent for |
||||||
15-29 days |
30-59 days |
60-89 days |
||||
All Loans |
||||||
|
0.7% |
1.2% |
0.9% |
|||
|
0.6% |
0.9% |
0.8% |
|||
|
0.8% |
1.0% |
0.8% |
|||
|
1.0% |
1.8% |
1.7% |
|||
|
1.2% |
2.0% |
1.7% |
|||
|
1.6% |
4.1% |
3.2% |
|||
Online Channels |
||||||
|
0.5% |
0.8% |
0.6% |
|||
|
0.5% |
0.9% |
0.8% |
|||
|
1.1% |
1.1% |
0.9% |
|||
|
1.2% |
2.3% |
2.2% |
|||
|
1.6% |
2.9% |
2.5% |
|||
|
1.9% |
5.2% |
3.8% |
|||
Offline Channels |
||||||
|
0.7% |
1.2% |
1.0% |
|||
|
0.6% |
0.9% |
0.8% |
|||
|
0.6% |
0.9% |
0.7% |
|||
|
0.9% |
1.6% |
1.5% |
|||
|
1.0% |
1.7% |
1.5% |
|||
|
1.6% |
3.7% |
3.1% |
M3+ Net Charge-Off Rate |
||||||
Loan Issued Period |
Amount of Loans Facilitated |
Accumulated M3+ Net Charge-Off |
Total Net Charge-Off Rate |
|||
(in RMB thousands) |
(in RMB thousands) |
|||||
2015 |
53,143,029 |
4,455,505 |
8.4% |
|||
2016 |
53,805,112 |
5,071,489 |
9.4% |
|||
2017 |
69,883,293 |
11,506,013 |
16.5% |
|||
2018 |
63,176,149 |
9,989,880 |
15.8% |
|||
2019 |
39,103,048 |
2,018,636 |
5.2% |
M3+ Net Charge-Off Rate |
||||||||||||
Loan |
Month on Book |
|||||||||||
4 |
7 |
10 |
13 |
16 |
19 |
22 |
25 |
28 |
31 |
34 |
||
2015Q1 |
0.8% |
2.0% |
3.4% |
4.7% |
5.7% |
6.5% |
7.1% |
7.5% |
7.7% |
7.8% |
7.8% |
|
2015Q2 |
0.8% |
2.3% |
3.8% |
5.2% |
6.4% |
7.3% |
7.9% |
8.3% |
8.5% |
8.7% |
8.8% |
|
2015Q3 |
0.4% |
1.6% |
3.1% |
4.4% |
5.6% |
6.5% |
7.1% |
7.6% |
7.9% |
8.1% |
8.4% |
|
2015Q4 |
0.4% |
1.6% |
3.1% |
4.4% |
5.5% |
6.3% |
6.9% |
7.4% |
7.9% |
8.3% |
8.5% |
|
2016Q1 |
0.3% |
1.2% |
2.5% |
3.6% |
4.5% |
5.2% |
5.8% |
6.4% |
7.0% |
7.4% |
7.6% |
|
2016Q2 |
0.4% |
1.6% |
3.1% |
4.3% |
5.2% |
6.0% |
6.8% |
7.6% |
8.1% |
8.4% |
8.7% |
|
2016Q3 |
0.3% |
1.6% |
3.1% |
4.3% |
5.4% |
6.6% |
7.8% |
8.6% |
9.2% |
9.5% |
9.8% |
|
2016Q4 |
0.2% |
1.5% |
2.9% |
4.4% |
5.9% |
7.4% |
8.4% |
9.3% |
10.0% |
10.4% |
10.7% |
|
2017Q1 |
0.3% |
1.5% |
3.2% |
5.1% |
7.1% |
8.6% |
9.8% |
10.8% |
11.5% |
12.0% |
12.2% |
|
2017Q2 |
1.1% |
2.9% |
5.6% |
8.4% |
10.4% |
12.1% |
13.5% |
14.5% |
15.3% |
15.8% |
||
2017Q3 |
0.3% |
2.9% |
6.4% |
9.1% |
11.6% |
13.6% |
15.0% |
16.2% |
16.9% |
|||
2017Q4 |
0.5% |
3.9% |
7.3% |
10.5% |
13.2% |
15.3% |
16.9% |
18.0% |
||||
2018Q1 |
0.4% |
3.0% |
6.6% |
10.1% |
12.9% |
15.2% |
16.9% |
|||||
2018Q2 |
0.5% |
3.6% |
7.4% |
10.8% |
13.6% |
15.8% |
||||||
2018Q3 |
0.4% |
3.0% |
6.2% |
9.1% |
11.7% |
|||||||
2018Q4 |
0.3% |
2.5% |
5.6% |
8.6% |
||||||||
2019Q1 |
0.2% |
2.5% |
5.6% |
|||||||||
2019Q2 |
0.3% |
2.9% |
||||||||||
2019Q3 |
0.3% |
View original content:http://www.prnewswire.com/news-releases/yiren-digital-reports-first-quarter-2020-financial-results-301082237.html
SOURCE
For investor and media inquiries, please contact: Yiren Digital, Investor Relations, Email: ir@Yirendai.com