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Second Quarter 2020 Operational Highlights
Wealth Management—Yiren Wealth
- Cumulative number of investors served reached 2,223,250 as of
June 30, 2020 , representing an increase of 0.2% from 2,218,181 as ofMarch 31, 2020 and compared to 2,185,513 as ofJune 30, 2019 . - Number of current investors was 195,211 as of
June 30, 2020 , representing a decrease of 11.5% from 220,568 as ofMarch 31, 2020 . - Number of current non-P2P investors was 31,530 as of
June 30, 2020 , representing an increase of 19.7% from 26,346 as ofMarch 31, 2020 , and compared to 17,133 as ofJune 30, 2019 . - Total assets under administration ("AUA") for P2P products on Yiren Wealth was
RMB 25,896.8 million (US$3,665.4 million ) as ofJune 30, 2020 , representing a decrease of 15.2% fromRMB 30,536.4 million as ofMarch 31, 2020 , and compared toRMB 43,249.9 million as ofJune 30, 2019 . - Total AUA for non-P2P products on Yiren Wealth was
RMB 2,528.6 million (US$357.9 million ) as ofJune 30, 2020 , representing an increase of 47.6% from 1,713.1 million as ofMarch 31 , 2020,and compared toRMB 352.7 million as ofJune 30, 2019 . - Sales volume of non-P2P products amounted to
RMB 2,186.2 million (US$309.4 million ) in the second quarter of 2020, representing an increase of 1.1% fromRMB 2,163.3 million in the first quarter of 2020 and compared toRMB 284.8 million in the same period of 2019.
Consumer Credit—Yiren Credit
- Total loan originations in the second quarter of 2020 reached
RMB 2.4 billion (US$0.3 billion ), representing an increase of 30.6% fromRMB 1.8 billion in the first quarter of 2020 and compared toRMB 9.7 billion in the second quarter of 2019. - Cumulative number of borrowers served reached 4,917,635 as of
June 30, 2020 , representing an increase of 2.2% from 4,810,184 as ofMarch 31, 2020 and compared to 4,491,334 as ofJune 30, 2019 . - Number of borrowers served in the second quarter of 2020 was 107,568 representing a decrease of 6.8% from 115,420 in the first quarter of 2020 and compared to 135,246 in the second quarter of 2019.
- The percentage of loan volume generated by repeat borrowers was 0.3% in the second quarter of 2020.
- 25.0% of loan originations were generated online in the second quarter of 2020.
- Total outstanding principal balance of performing loans reached
RMB 33,454.4 million (US$4,735.2 million ) as ofJune 30,2020 , representing a decrease of 20.5% fromRMB 42,063.0 million as ofMarch 31,2020 .
"With the pandemic still not far behind us and the changing market environment in the second quarter, we are making comprehensive progresses towards our business transition in our credit-tech business and have achieved meaningful scale in our wealth management business growth," said Mr.
"For our credit-tech business, our new online product initiatives are tracking very well. Our new revolving loan product,
"On wealth management business, we are seeing very strong growth momentum particularly for our fund products. As of
"We are delighted to see a notable acceleration in loan originations from prior quarter to
"Thanks to our continued efforts in risk management, the delinquency rates have shown a progressive improving trend. 15-90 days delinquency has decreased to 5.5% as of
Second Quarter 2020 Financial Results
Total amount of loans facilitated in the second quarter of 2020 was
Total net revenue in the second quarter of 2020 was
Sales and marketing expenses in the second quarter of 2020 were
Origination and servicing costs in the second quarter of 2020 were
General and administrative expenses in the second quarter of 2020 were
Allowance for contract assets and receivables in the second quarter of 2020 were
Income tax benefit in the second quarter of 2020 was
Net loss in the second quarter of 2020 was
Adjusted EBITDA (non-GAAP) in the second quarter of 2020 was net loss of
Basic income per ADS in the second quarter of 2020 was net loss of
Diluted income per ADS in the second quarter of 2020 was net loss of
Net cash used in operating activities in the second quarter of 2020 was
Net cash used in investing activities in the second quarter of 2020 was
As of
Delinquency rates. As of
Cumulative M3+ net charge-off rates. As of
Management Change
Mr.
2020 Share Incentive Plan
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/9992747
Please note the Conference ID number of 9992747.
Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number.
Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.
A replay of the conference call may be accessed by phone at the following numbers until September 3, 2020:
International |
+61 2-8199-0299 |
|
+1 646-254-3697 |
Replay Access Code: |
9992747 |
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 |
For the Six Months Ended |
|||||||||||||
|
|
|
|
|
|
|
||||||||
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||||||||
Net revenue: |
||||||||||||||
Loan facilitation services |
1,237,718 |
358,541 |
171,084 |
24,215 |
2,292,764 |
529,625 |
74,964 |
|||||||
Post-origination services |
241,321 |
146,520 |
126,477 |
17,902 |
537,600 |
272,997 |
38,640 |
|||||||
Account management services |
549,024 |
413,166 |
300,720 |
42,564 |
1,037,364 |
713,886 |
101,044 |
|||||||
Others |
188,577 |
105,433 |
156,408 |
22,138 |
329,320 |
261,841 |
37,061 |
|||||||
Total net revenue |
2,216,640 |
1,023,660 |
754,689 |
106,819 |
4,197,048 |
1,778,349 |
251,709 |
|||||||
Operating costs and expenses: |
||||||||||||||
Sales and marketing |
1,208,647 |
616,441 |
508,466 |
71,969 |
2,336,592 |
1,124,907 |
159,220 |
|||||||
Origination and servicing |
162,945 |
102,918 |
165,183 |
23,380 |
335,068 |
268,101 |
37,947 |
|||||||
General and administrative |
175,534 |
149,041 |
172,568 |
24,425 |
433,241 |
321,609 |
45,521 |
|||||||
Allowance for contract assets and |
500,861 |
143,385 |
168,708 |
23,879 |
691,965 |
312,093 |
44,174 |
|||||||
Total operating costs and expenses |
2,047,987 |
1,011,785 |
1,014,925 |
143,653 |
3,796,866 |
2,026,710 |
286,862 |
|||||||
Other income/(expenses): |
||||||||||||||
Interest income, net |
25,213 |
25,116 |
16,950 |
2,399 |
49,088 |
42,066 |
5,954 |
|||||||
Fair value adjustments related to |
5,787 |
(26,020) |
(32,957) |
(4,665) |
40,785 |
(58,977) |
(8,348) |
|||||||
Others, net |
17,480 |
12,184 |
(3,510) |
(496) |
177,703 |
8,674 |
1,228 |
|||||||
Total other income/(expenses) |
48,480 |
11,280 |
(19,517) |
(2,762) |
267,576 |
(8,237) |
(1,166) |
|||||||
Income/(loss) before provision for |
217,133 |
23,155 |
(279,753) |
(39,596) |
667,758 |
(256,598) |
(36,319) |
|||||||
Share of results of equity investees |
(816) |
- |
- |
- |
(5,773) |
- |
- |
|||||||
Income tax expense/(benefit) |
61,856 |
3,936 |
(47,558) |
(6,731) |
138,390 |
(43,622) |
(6,174) |
|||||||
Net income/(loss) |
154,461 |
19,219 |
(232,195) |
(32,865) |
523,595 |
(212,976) |
(30,145) |
|||||||
Weighted average number of ordinary |
184,608,337 |
185,600,961 |
185,613,735 |
185,613,735 |
184,865,964 |
185,607,348 |
185,607,348 |
|||||||
Basic income/(loss) per share |
0.8367 |
0.1036 |
(1.2510) |
(0.1771) |
2.8323 |
(1.1475) |
(0.1624) |
|||||||
Basic income/(loss) per ADS |
1.6734 |
0.2072 |
(2.5020) |
(0.3542) |
5.6646 |
(2.2950) |
(0.3248) |
|||||||
Weighted average number of ordinary |
186,667,233 |
186,166,429 |
185,613,735 |
185,613,735 |
186,621,626 |
185,607,348 |
185,607,348 |
|||||||
Diluted income/(loss) per share |
0.8275 |
0.1032 |
(1.2510) |
(0.1771) |
2.8057 |
(1.1475) |
(0.1624) |
|||||||
Diluted income/(loss) per ADS |
1.6550 |
0.2064 |
(2.5020) |
(0.3542) |
5.6114 |
(2.2950) |
(0.3248) |
|||||||
Unaudited Condensed Consolidated |
||||||||||||||
Net cash generated from/(used in) |
36,352 |
557,762 |
(86,768) |
(12,281) |
(622,083) |
470,994 |
66,664 |
|||||||
Net cash provided by/(used in) |
240,896 |
(524,479) |
(164,623) |
(23,302) |
(9,035) |
(689,102) |
(97,537) |
|||||||
Net cash (used in)/provided by |
(73,385) |
(65,637) |
39,905 |
5,648 |
420,004 |
(25,732) |
(3,642) |
|||||||
Effect of foreign exchange rate changes |
1,532 |
1,206 |
(86) |
(12) |
(664) |
1,120 |
159 |
|||||||
Net increase/(decrease) in cash, cash |
205,395 |
(31,148) |
(211,572) |
(29,947) |
(211,778) |
(242,720) |
(34,356) |
|||||||
Cash, cash equivalents and restricted |
2,617,311 |
3,269,142 |
3,237,994 |
458,308 |
3,034,484 |
3,269,142 |
462,717 |
|||||||
Cash, cash equivalents and restricted |
2,822,706 |
3,237,994 |
3,026,422 |
428,361 |
2,822,706 |
3,026,422 |
428,361 |
Unaudited Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
As of |
|||||||
|
|
|
|
||||
RMB |
RMB |
RMB |
USD |
||||
Cash and cash equivalents |
3,198,086 |
3,194,993 |
2,935,543 |
415,498 |
|||
Restricted cash |
71,056 |
43,001 |
90,879 |
12,863 |
|||
Accounts receivable |
3,398 |
33,902 |
27,309 |
3,865 |
|||
Contract assets, net |
2,398,685 |
1,873,548 |
1,356,886 |
192,055 |
|||
Contract cost |
160,003 |
149,917 |
145,809 |
20,638 |
|||
Prepaid expenses and other assets |
1,333,221 |
868,462 |
1,134,257 |
160,545 |
|||
Loans at fair value |
418,492 |
313,267 |
246,475 |
34,886 |
|||
Financing receivables |
29,612 |
33,381 |
54,876 |
7,767 |
|||
Amounts due from related parties |
988,853 |
1,583,859 |
1,560,376 |
220,857 |
|||
Held-to-maturity investments |
6,627 |
4,399 |
4,126 |
584 |
|||
Available-for-sale investments |
460,991 |
456,061 |
513,013 |
72,612 |
|||
Property, equipment and software, net |
195,855 |
188,880 |
184,957 |
26,179 |
|||
Deferred tax assets |
45,407 |
42,084 |
49,051 |
6,943 |
|||
Right-of-use assets |
334,134 |
291,028 |
224,067 |
31,715 |
|||
Total assets |
9,644,420 |
9,076,782 |
8,527,624 |
1,207,007 |
|||
Accounts payable |
43,583 |
39,068 |
40,324 |
5,708 |
|||
Amounts due to related parties |
106,645 |
112,034 |
184,325 |
26,090 |
|||
Liabilities from quality assurance program and guarantee |
4,397 |
3,487 |
2,660 |
377 |
|||
Deferred revenue |
358,203 |
254,933 |
190,712 |
26,994 |
|||
Accrued expenses and other liabilities |
2,338,745 |
1,946,205 |
1,981,040 |
280,397 |
|||
Refund liability |
1,801,535 |
1,760,942 |
1,501,318 |
212,497 |
|||
Deferred tax liabilities |
218,888 |
216,304 |
162,016 |
22,932 |
|||
Lease liabilities |
282,334 |
259,197 |
205,056 |
29,024 |
|||
Total liabilities |
5,154,330 |
4,592,170 |
4,267,451 |
604,019 |
|||
Ordinary shares |
121 |
121 |
121 |
17 |
|||
Additional paid-in capital |
5,038,691 |
5,045,268 |
5,050,226 |
714,813 |
|||
|
(37,097) |
(37,097) |
(37,097) |
(5,251) |
|||
Accumulated other comprehensive income |
21,855 |
18,671 |
23,474 |
3,323 |
|||
Accumulated deficit |
(533,480) |
(542,351) |
(776,551) |
(109,914) |
|||
Total equity |
4,490,090 |
4,484,612 |
4,260,173 |
602,988 |
|||
Total liabilities and equity |
9,644,420 |
9,076,782 |
8,527,624 |
1,207,007 |
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 |
For the Six Months Ended |
|||||||||||||
|
|
|
|
|
|
|
||||||||
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||||||||
Operating Highlights |
||||||||||||||
Amount of p2p investment |
11,939,582 |
5,203,747 |
4,017,751 |
568,676 |
23,375,170 |
9,221,497 |
1,305,218 |
|||||||
Number of p2p investors |
157,973 |
78,256 |
63,066 |
63,066 |
320,054 |
108,252 |
108,252 |
|||||||
Amount of non-p2p investment |
284,782 |
2,163,313 |
2,186,210 |
309,438 |
613,490 |
4,349,523 |
615,635 |
|||||||
Number of non-p2p investors |
10,235 |
18,809 |
30,392 |
30,392 |
19,370 |
39,443 |
39,443 |
|||||||
Amount of loans facilitated |
9,673,818 |
1,839,454 |
2,402,494 |
340,051 |
20,608,740 |
4,241,948 |
600,409 |
|||||||
Number of borrowers |
135,246 |
115,420 |
107,568 |
107,568 |
280,634 |
220,731 |
220,731 |
|||||||
Remaining principal of performing |
58,071,303 |
42,063,039 |
33,454,423 |
4,735,166 |
58,071,303 |
33,454,423 |
4,735,166 |
|||||||
Segment Information |
||||||||||||||
Wealth management: |
||||||||||||||
Revenue |
592,378 |
415,876 |
322,381 |
45,630 |
1,113,812 |
738,257 |
104,493 |
|||||||
Sales and marketing expenses |
213,168 |
67,326 |
45,454 |
6,434 |
357,072 |
112,780 |
15,963 |
|||||||
Consumer credit: |
||||||||||||||
Revenue |
1,624,262 |
607,784 |
432,308 |
61,189 |
3,083,236 |
1,040,092 |
147,216 |
|||||||
Sales and marketing expenses |
995,479 |
549,115 |
463,012 |
65,535 |
1,979,520 |
1,012,127 |
143,257 |
|||||||
Reconciliation of Adjusted |
||||||||||||||
Net income/(loss) |
154,461 |
19,219 |
(232,195) |
(32,865) |
523,595 |
(212,976) |
(30,145) |
|||||||
Interest income, net |
(25,213) |
(25,116) |
(16,950) |
(2,399) |
(49,088) |
(42,066) |
(5,954) |
|||||||
Income tax expense/(benefit) |
61,856 |
3,936 |
(47,558) |
(6,731) |
138,390 |
(43,622) |
(6,174) |
|||||||
Depreciation and amortization |
31,112 |
27,171 |
24,368 |
3,449 |
63,614 |
51,539 |
7,295 |
|||||||
Share-based compensation |
17,732 |
4,541 |
2,954 |
418 |
32,431 |
7,495 |
1,061 |
|||||||
Adjusted EBITDA |
239,948 |
29,751 |
(269,381) |
(38,128) |
708,942 |
(239,630) |
(33,917) |
|||||||
Adjusted EBITDA margin |
10.8% |
2.9% |
-35.7% |
-35.7% |
16.9% |
-13.5% |
-13.5% |
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% |
|||
|
1.4% |
2.0% |
2.1% |
|||
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% |
|||
|
1.4% |
2.4% |
2.7% |
|||
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% |
|||
|
1.4% |
1.8% |
2.0% |
Net Charge-Off Rate |
||||||
Loan |
Amount of Loans |
Accumulated M3+ Net Charge- |
Total Net Charge-Off |
|||
(in RMB thousands) |
(in RMB thousands) |
|||||
2015 |
53,143,029 |
4,441,696 |
8.4% |
|||
2016 |
53,805,112 |
5,057,850 |
9.4% |
|||
2017 |
69,883,293 |
11,693,408 |
16.7% |
|||
2018 |
63,176,149 |
11,131,294 |
17.6% |
|||
2019 |
39,103,048 |
3,688,712 |
9.4% |
|||
2020Q1 |
1,320,428 |
6,388 |
0.5% |
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% |
16.0% |
|
2017Q3 |
0.3% |
2.9% |
6.4% |
9.1% |
11.6% |
13.6% |
15.0% |
16.2% |
16.9% |
17.5% |
||
2017Q4 |
0.5% |
3.9% |
7.3% |
10.5% |
13.2% |
15.3% |
16.9% |
18.0% |
18.8% |
|||
2018Q1 |
0.4% |
3.0% |
6.6% |
10.1% |
12.9% |
15.2% |
16.9% |
18.2% |
||||
2018Q2 |
0.5% |
3.6% |
7.4% |
10.8% |
13.6% |
15.8% |
17.7% |
|||||
2018Q3 |
0.4% |
3.0% |
6.2% |
9.1% |
11.7% |
13.9% |
||||||
2018Q4 |
0.3% |
2.5% |
5.6% |
8.6% |
11.7% |
|||||||
2019Q1 |
0.2% |
2.5% |
5.6% |
9.0% |
||||||||
2019Q2 |
0.3% |
2.9% |
6.9% |
|||||||||
2019Q3 |
0.3% |
3.4% |
||||||||||
2019Q4 |
0.3% |
View original content:http://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2020-financial-results-301119856.html
SOURCE
Yiren Digital, Investor Relations, Email: ir@Yirendai.com, +86-18810523966