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Second Quarter 2021 Operational Highlights
Wealth Management
- Cumulative number of investors served reached 2,538,656 as of
June 30, 2021 , representing an increase of 3.1% from 2,462,195 as ofMarch 31, 2021 and compared to 2,223,250 as ofJune 30, 2020 . - Number of active investors[1] was 385,536 as of
June 30, 2021 , representing an increase of 25.5% from 307,107 as ofMarch 31, 2021 , and compared to 102,658 as ofJune 30, 2020 . - Total client assets[2] was
RMB14,660.4 million (US$2,270.6 million ) as ofJune 30, 2021 , representing an increase of 37.3% fromRMB10,678.9 million as ofMarch 31, 2021 , and compared toRMB2,628.8 million as ofJune 30, 2020 . - Sales volume of investment products amounted to
RMB5,343.6 million (US$827.6 million ) in the second quarter of 2021, representing a decrease of 8.2% fromRMB5,823.1 million in the first quarter of 2021 and compared toRMB2,186.2 million in the same period of 2020.
Consumer Credit
- Total loans facilitated under loan facilitation model in the second quarter of 2021 reached
RMB5.3 billion (US$0.8 billion ), representing an increase of 6.5% fromRMB4.9 billion in the first quarter of 2021 and compared toRMB1.5 billion in the second quarter of 2020. - Cumulative number of borrowers served reached 5,558,085 as of
June 30, 2021 , representing an increase of 4.7% from 5,309,727 as ofMarch 31, 2021 and compared to 4,917,635 as ofJune 30, 2020 . - Number of borrowers served in the second quarter of 2021 was 434,153 representing an increase of 25.5% from 345,939 in the first quarter of 2021 and compared to 107,568 in the second quarter of 2020.
- Outstanding balance of performing loans facilitated under loan facilitation model reached
RMB12,543.7 million (US$1,942.8 million ) as ofJune 30, 2021 , representing an increase of 12.4% fromRMB11,159.2 million as ofMarch 31, 2021 and compared toRMB4,175.8 million as ofJune 30, 2020 .
[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. |
"We are pleased to deliver another solid quarter, with continued improvement in profitability and increasingly diversified revenue mix as we further navigate
"For wealth management, we are further differentiating ourselves by upgrading our services and enriching our product offerings as well as enhancing our capabilities to serve customers with higher investable assets. As of
"For our credit business, we are focusing on high-quality growth and continue to take a proactive approach to transition our target borrower segment into higher-credit quality borrowers, paving the way for the launch of increasingly diversified products. Meanwhile, to echo government's focus on supporting small and micro businesses, starting from the second half of this year, we will further expand our SME segment to better promote inclusive finance."
"In the second quarter, total revenue increased by 49% year-on-year to
Second Quarter 2021 Financial Results
Total net revenue in the second quarter of 2021 was
Sales and marketing expenses in the second quarter of 2021 were
Origination, servicing and other operating costs in the second quarter of 2021 were
General and administrative expenses in the second quarter of 2021 were
Allowance for contract assets, receivables and others in the second quarter of 2021 was
Income tax expense in the second quarter of 2021 was
Net income in the second quarter of 2021 was
Adjusted EBITDA[3] (non-GAAP) in the second quarter of 2021 was
Basic income per ADS in the second quarter of 2021 was
Diluted income per ADS in the second quarter of 2021 was
Net cash used in operating activities in the second quarter of 2021 was
Net cash used in investing activities in the second quarter of 2021 was
As of
Delinquency rates. As of
Cumulative M3+ net charge-off rates. As of
[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
Board Composition Change
Mr.
"On behalf of
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://apac.directeventreg.com/registration/event/9992662
Please note the Conference ID number of 9992662.
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 August 27, 2021:
International |
+61 2-9003-4211 |
|
+1 646-254-3697 |
Replay Access Code: |
9992662 |
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 |
171,084 |
542,132 |
551,373 |
85,397 |
529,625 |
1,093,505 |
169,362 |
|||||||
Post-origination services |
126,477 |
44,786 |
40,584 |
6,286 |
272,997 |
85,370 |
13,222 |
|||||||
Account management services |
300,720 |
- |
- |
- |
713,886 |
- |
- |
|||||||
Insurance brokerage services |
19,545 |
159,704 |
151,801 |
23,511 |
19,545 |
311,505 |
48,246 |
|||||||
Financing services |
1,586 |
114,932 |
125,267 |
19,401 |
2,236 |
240,199 |
37,202 |
|||||||
Others |
135,277 |
238,409 |
256,010 |
39,651 |
240,060 |
494,419 |
76,576 |
|||||||
Total net revenue |
754,689 |
1,099,963 |
1,125,035 |
174,246 |
1,778,349 |
2,224,998 |
344,608 |
|||||||
Operating costs and expenses: |
||||||||||||||
Sales and marketing |
508,466 |
405,176 |
436,882 |
67,663 |
1,124,907 |
842,058 |
130,418 |
|||||||
Origination,servicing and other operating |
165,183 |
174,525 |
182,667 |
28,292 |
268,101 |
357,192 |
55,322 |
|||||||
General and administrative |
172,568 |
119,865 |
127,690 |
19,777 |
321,609 |
247,555 |
38,341 |
|||||||
Allowance for contract assets, receivables |
168,708 |
141,232 |
93,433 |
14,471 |
312,093 |
234,665 |
36,345 |
|||||||
Total operating costs and expenses |
1,014,925 |
840,798 |
840,672 |
130,203 |
2,026,710 |
1,681,470 |
260,426 |
|||||||
Other income/(expenses): |
||||||||||||||
Interest income/(expense), net |
16,950 |
(10,980) |
(22,782) |
(3,529) |
42,066 |
(33,762) |
(5,229) |
|||||||
Fair value adjustments related to |
(32,957) |
(27,720) |
(20,916) |
(3,239) |
(58,977) |
(48,636) |
(7,533) |
|||||||
Others, net |
(3,510) |
5,122 |
14,674 |
2,273 |
8,674 |
19,796 |
3,066 |
|||||||
Total other expenses |
(19,517) |
(33,578) |
(29,024) |
(4,495) |
(8,237) |
(62,602) |
(9,696) |
|||||||
(Loss)/income before provision for income |
(279,753) |
225,587 |
255,339 |
39,548 |
(256,598) |
480,926 |
74,486 |
|||||||
Income tax (benefit)/expense |
(47,558) |
44,373 |
55,259 |
8,559 |
(43,622) |
99,632 |
15,431 |
|||||||
Net (loss)/income |
(232,195) |
181,214 |
200,080 |
30,989 |
(212,976) |
381,294 |
59,055 |
|||||||
Weighted average number of ordinary shares |
185,613,735 |
167,966,603 |
167,974,463 |
167,974,463 |
185,607,348 |
167,970,515 |
167,970,515 |
|||||||
Basic (loss)/income per share |
(1.2510) |
1.0789 |
1.1911 |
0.1845 |
(1.1475) |
2.2700 |
0.3516 |
|||||||
Basic (loss)/income per ADS |
(2.5020) |
2.1578 |
2.3822 |
0.3690 |
(2.2950) |
4.5400 |
0.7032 |
|||||||
Weighted average number of ordinary shares |
185,613,735 |
169,147,563 |
169,173,603 |
169,173,603 |
185,607,348 |
169,160,565 |
169,160,565 |
|||||||
Diluted (loss)/income per share |
(1.2510) |
1.0713 |
1.1827 |
0.1832 |
(1.1475) |
2.2540 |
0.3491 |
|||||||
Diluted (loss)/income per ADS |
(2.5020) |
2.1426 |
2.3654 |
0.3664 |
(2.2950) |
4.5080 |
0.6982 |
|||||||
Unaudited Condensed Consolidated Cash |
||||||||||||||
Net cash (used in)/generated from operating |
(64,721) |
(142,011) |
(212,993) |
(32,988) |
497,999 |
(355,004) |
(54,984) |
|||||||
Net cash used in investing activities |
(186,670) |
(286,056) |
(208,539) |
(32,299) |
(716,107) |
(494,595) |
(76,603) |
|||||||
Net cash provided by/(used in) financing |
39,905 |
279,400 |
144,107 |
22,319 |
(25,732) |
423,507 |
65,593 |
|||||||
Effect of foreign exchange rate changes |
(86) |
(118) |
(278) |
(43) |
1,120 |
(396) |
(61) |
|||||||
Net decrease in cash, cash equivalents and |
(211,572) |
(148,785) |
(277,703) |
(43,011) |
(242,720) |
(426,488) |
(66,055) |
|||||||
Cash, cash equivalents and restricted cash, |
3,237,994 |
2,707,148 |
2,558,363 |
396,240 |
3,269,142 |
2,707,148 |
419,284 |
|||||||
Cash, cash equivalents and restricted cash, |
3,026,422 |
2,558,363 |
2,280,660 |
353,229 |
3,026,422 |
2,280,660 |
353,229 |
Unaudited Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
As of |
|||||||
|
|
|
|
||||
RMB |
RMB |
RMB |
USD |
||||
Cash and cash equivalents |
2,469,909 |
2,362,310 |
2,192,500 |
339,575 |
|||
Restricted cash |
237,239 |
196,053 |
88,160 |
13,654 |
|||
Accounts receivable |
122,742 |
148,114 |
228,554 |
35,399 |
|||
Contract assets, net |
750,174 |
917,995 |
1,063,470 |
164,711 |
|||
Contract cost |
65,529 |
62,061 |
44,684 |
6,921 |
|||
Prepaid expenses and other assets |
278,591 |
215,099 |
213,942 |
33,135 |
|||
Loans at fair value |
192,156 |
175,664 |
112,931 |
17,491 |
|||
Financing receivables |
1,253,494 |
1,471,509 |
1,738,742 |
269,297 |
|||
Amounts due from related parties |
884,006 |
911,972 |
1,064,703 |
164,901 |
|||
Held-to-maturity investments |
3,286 |
3,137 |
2,233 |
346 |
|||
Available-for-sale investments |
175,515 |
234,587 |
224,336 |
34,745 |
|||
Property, equipment and software, net |
147,193 |
134,351 |
123,491 |
19,126 |
|||
Deferred tax assets |
16,745 |
13,906 |
8,629 |
1,336 |
|||
Right-of-use assets |
105,674 |
98,467 |
93,783 |
14,525 |
|||
Total assets |
6,702,253 |
6,945,225 |
7,200,158 |
1,115,162 |
|||
Accounts payable |
9,903 |
12,923 |
64,469 |
9,985 |
|||
Amounts due to related parties |
970,309 |
769,744 |
498,053 |
77,138 |
|||
Deferred revenue |
50,899 |
44,408 |
21,137 |
3,274 |
|||
Payable to investors at fair value |
52,623 |
52,082 |
51,289 |
7,944 |
|||
Accrued expenses and other liabilities |
1,208,915 |
1,148,549 |
1,238,591 |
191,833 |
|||
Secured borrowings |
500,500 |
799,200 |
968,600 |
150,017 |
|||
Refund liability |
10,845 |
7,404 |
6,412 |
993 |
|||
Deferred tax liabilities |
38,741 |
76,003 |
118,654 |
18,377 |
|||
Lease liabilities |
81,854 |
76,735 |
70,114 |
10,859 |
|||
Total liabilities |
2,924,589 |
2,987,048 |
3,037,319 |
470,420 |
|||
Ordinary shares |
121 |
121 |
122 |
19 |
|||
Additional paid-in capital |
5,058,176 |
5,058,884 |
5,065,177 |
784,496 |
|||
|
(40,147) |
(40,147) |
(40,147) |
(6,218) |
|||
Accumulated other comprehensive income |
17,108 |
16,648 |
16,139 |
2,500 |
|||
Accumulated deficit |
(1,257,594) |
(1,077,329) |
(878,452) |
(136,055) |
|||
Total equity |
3,777,664 |
3,958,177 |
4,162,839 |
644,742 |
|||
Total liabilities and equity |
6,702,253 |
6,945,225 |
7,200,158 |
1,115,162 |
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 investment in current investment |
2,186,210 |
5,823,057 |
5,343,601 |
827,618 |
4,349,523 |
11,166,657 |
1,729,495 |
|||||||
Number of investors in current investment |
30,392 |
110,072 |
120,091 |
120,091 |
30,142 |
203,472 |
203,472 |
|||||||
Amount of loans facilitated under loan |
1,522,646 |
4,930,287 |
5,252,859 |
813,564 |
2,263,914 |
10,183,146 |
1,577,168 |
|||||||
Amount of loans facilitated |
2,402,494 |
4,930,287 |
5,252,859 |
813,564 |
4,241,948 |
10,183,146 |
1,577,168 |
|||||||
Number of borrowers |
107,568 |
345,939 |
434,153 |
434,153 |
220,731 |
646,486 |
646,486 |
|||||||
Remaining principal of performing loans |
4,175,751 |
11,159,179 |
12,543,745 |
1,942,779 |
4,175,751 |
12,543,745 |
1,942,779 |
|||||||
Segment Information |
||||||||||||||
Wealth management: |
||||||||||||||
Revenue |
322,381 |
263,743 |
286,839 |
44,426 |
738,257 |
550,582 |
85,274 |
|||||||
Sales and marketing expenses |
45,454 |
38,987 |
29,044 |
4,498 |
112,780 |
68,031 |
10,537 |
|||||||
Origination,servicing and other operating |
39,648 |
132,510 |
150,505 |
23,311 |
70,493 |
283,015 |
43,833 |
|||||||
Consumer credit: |
||||||||||||||
Revenue |
432,308 |
836,220 |
838,196 |
129,820 |
1,040,092 |
1,674,416 |
259,334 |
|||||||
Sales and marketing expenses |
463,012 |
366,189 |
407,838 |
63,165 |
1,012,127 |
774,027 |
119,881 |
|||||||
Origination,servicing and other operating |
125,535 |
42,015 |
32,162 |
4,981 |
197,608 |
74,177 |
11,489 |
|||||||
Reconciliation of Adjusted EBITDA |
||||||||||||||
Net (loss)/income |
(232,195) |
181,214 |
200,080 |
30,989 |
(212,976) |
381,294 |
59,055 |
|||||||
Interest (income)/expense, net |
(16,950) |
10,980 |
22,782 |
3,529 |
(42,066) |
33,762 |
5,229 |
|||||||
Income tax (benefit)/expense |
(47,558) |
44,373 |
55,259 |
8,559 |
(43,622) |
99,632 |
15,431 |
|||||||
Depreciation and amortization |
24,368 |
15,151 |
12,170 |
1,885 |
51,539 |
27,321 |
4,232 |
|||||||
Share-based compensation |
2,954 |
(240) |
5,090 |
788 |
7,495 |
4,850 |
751 |
|||||||
Adjusted EBITDA |
(269,381) |
251,478 |
295,381 |
45,750 |
(239,630) |
546,859 |
84,698 |
|||||||
Adjusted EBITDA margin |
-35.7% |
22.9% |
26.3% |
26.3% |
-13.5% |
24.6% |
24.6% |
Delinquency Rates (Loan Facilitation Model) |
||||||
15-29 days |
30-59 days |
60-89 days |
||||
All Loans |
||||||
|
1.3% |
1.9% |
1.5% |
|||
|
0.6% |
0.8% |
0.7% |
|||
|
0.5% |
0.8% |
0.6% |
|||
|
1.0% |
1.8% |
1.7% |
|||
|
0.8% |
1.3% |
1.0% |
|||
|
0.5% |
0.7% |
0.6% |
|||
|
0.5% |
0.8% |
0.6% |
|||
|
0.5% |
0.8% |
0.7% |
|||
Online Channels |
||||||
|
0.4% |
0.7% |
0.5% |
|||
|
0.8% |
1.1% |
1.7% |
|||
|
0.3% |
0.2% |
0.0% |
|||
|
0.9% |
1.7% |
1.5% |
|||
|
1.0% |
2.1% |
1.6% |
|||
|
0.6% |
1.0% |
1.1% |
|||
|
0.5% |
0.9% |
0.7% |
|||
|
0.7% |
0.9% |
0.8% |
|||
Offline Channels |
||||||
|
1.3% |
2.0% |
1.6% |
|||
|
0.6% |
0.8% |
0.7% |
|||
|
0.5% |
0.9% |
0.7% |
|||
|
1.1% |
1.9% |
1.8% |
|||
|
0.7% |
0.9% |
0.7% |
|||
|
0.4% |
0.6% |
0.4% |
|||
|
0.4% |
0.7% |
0.6% |
|||
|
0.4% |
0.7% |
0.6% |
Net Charge-Off Rate (Loan Facilitation Model) |
||||||
Loan |
Amount of Loans |
Accumulated M3+ Net |
Total Net Charge-Off |
|||
(in RMB thousands) |
(in RMB thousands) |
|||||
2015 |
4,530,824 |
250,850 |
5.5% |
|||
2016 |
3,749,815 |
319,425 |
8.5% |
|||
2017 |
5,043,494 |
527,583 |
10.5% |
|||
2018 |
4,211,573 |
415,948 |
9.9% |
|||
2019 |
3,431,443 |
359,282 |
10.5% |
|||
2020 |
9,614,819 |
352,935 |
3.7% |
|||
2021Q1 |
4,930,287 |
23,045 |
0.5% |
M3+ Net Charge-Off Rate (Loan Facilitation Model) |
||||||||||||
Loan |
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% |
||
2018Q4 |
0.6% |
2.2% |
3.4% |
5.2% |
6.9% |
9.0% |
9.7% |
9.9% |
9.6% |
|||
2019Q1 |
0.0% |
0.8% |
2.0% |
3.4% |
5.3% |
5.9% |
6.3% |
6.3% |
||||
2019Q2 |
0.1% |
1.5% |
4.5% |
7.5% |
8.8% |
9.2% |
9.9% |
|||||
2019Q3 |
0.2% |
2.9% |
6.8% |
9.0% |
10.4% |
12.0% |
||||||
2019Q4 |
0.4% |
3.1% |
4.9% |
6.3% |
7.2% |
|||||||
2020Q1 |
0.6% |
2.3% |
4.1% |
5.2% |
||||||||
2020Q2 |
0.5% |
2.5% |
4.2% |
|||||||||
2020Q3 |
1.1% |
3.3% |
||||||||||
2020Q4 |
0.3% |
View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2021-financial-results-301358808.html
SOURCE