UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2021

 

 

 

Commission File Number: 001-37657

 

 

 

YIREN DIGITAL LTD.

 

10/F, Building 9, 91 Jianguo Road

Chaoyang District, Beijing 100022

The People’s Republic 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    ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

 

 

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: August 20, 2021

 

 

 

Exhibit Index

 

Exhibit 99.1—Yiren Digital Reports Second Quarter 2021 Financial Results

 

 

 

Exhibit 99.1

 

Yiren Digital Reports Second Quarter 2021 Financial Results

 

BEIJING, Aug. 19, 2021 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading digital personal financial management platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2021.

 

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 of March 31, 2021 and compared to 2,223,250 as of June 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 of March 31, 2021, and compared to 102,658 as of June 30, 2020.
·Total client assets[2] was RMB14,660.4 million (US$2,270.6 million) as of June 30, 2021, representing an increase of 37.3% from RMB10,678.9 million as of March 31, 2021, and compared to RMB2,628.8 million as of June 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% from RMB5,823.1 million in the first quarter of 2021 and compared to RMB2,186.2 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% from RMB4.9 billion in the first quarter of 2021 and compared to RMB1.5 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 of March 31, 2021 and compared to 4,917,635 as of June 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 of June 30, 2021, representing an increase of 12.4% from RMB11,159.2 million as of March 31, 2021 and compared to RMB4,175.8 million as of June 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 Yiren Digital to become a leading user-centric personal financial management platform," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "As we continue to strengthen our competitive edges and drive up our business scale, we have developed sophisticated strategies for different business lines."

 

"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 June 30, 2021, total client assets reached RMB14.7 billion, representing an increase of 37% from last quarter. Average client asset per investor further increased by 17% quarter-over-quarter to approximately RMB100,000, and the number of investors who held more than two asset classes on our Yiren Wealth platform grew by 420% from prior year, reflecting a concrete improvement in our customers' overall LTV. "

 

"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 RMB1.1 billion, of which 25% came from our wealth management business. Driven by enhanced cost control and operating efficiencies, total net income in the second quarter grew by 10% quarter-over-quarter, reflecting a healthy net income margin of 18%,"said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "On the balance sheet side, our cash position remains strong with RMB2.2 billion of cash and cash equivalents as of June 30, 2021, which provides us with sufficient resilience to continue exploring new initiatives and new opportunities, and to meet any new capital requirement that may come."

 

 

 

Second Quarter 2021 Financial Results

 

Total net revenue in the second quarter of 2021 was RMB1,125.0 million (US$174.2 million), compared to RMB754.7 million in the same period last year. Revenue from wealth management business reached RMB286.8 million (US$44.4 million), representing a decrease of 11.0% from RMB322.4 million in the second quarter of 2020, primarily driven by the spin-off of our legacy business. Revenue from credit business reached RMB838.2 million (US$129.8 million), representing an increase of 93.9% from RMB432.3 million in the second quarter of 2020, primarily driven by an increase in loan volume.

 

Sales and marketing expenses in the second quarter of 2021 were RMB436.9 million (US$67.7 million), compared to RMB508.5 million in the same period last year. The decrease was primarily due to internal restructuring to optimize operating efficiencies.

 

Origination, servicing and other operating costs in the second quarter of 2021 were RMB182.7 million (US$28.3 million), compared to RMB165.2 million in the same period last year.

 

General and administrative expenses in the second quarter of 2021 were RMB127.7 million (US$19.8 million), compared to RMB172.6 million in the same period last year. The decrease was due to enhancement of operational efficiency.

 

Allowance for contract assets, receivables and others in the second quarter of 2021 was RMB93.4 million (US$14.5 million), compared to RMB168.7 million in the same period last year. The decrease was primarily due to the optimization of product mix, improved asset quality post pandemic as well as further enhancement in the Company's risk management framework.

 

Income tax expense in the second quarter of 2021 was RMB55.3 million (US$8.6 million).

 

Net income in the second quarter of 2021 was RMB200.1 million (US$31.0 million), as compared to a net loss of RMB232.2 million in the same period last year.

 

Adjusted EBITDA[3] (non-GAAP) in the second quarter of 2021 was RMB295.4 million (US$45.8 million), compared to a loss of RMB269.4 million in the same period last year.

 

Basic income per ADS in the second quarter of 2021 was RMB2.4 (US$0.4), compared to a basic loss per ADS of RMB2.5 in the same period last year.

 

Diluted income per ADS in the second quarter of 2021 was RMB2.4 (US$0.4), compared to a diluted loss per ADS of RMB2.5 in the same period last year.

 

Net cash used in operating activities in the second quarter of 2021 was RMB213.0 million (US$33.0 million), compared to RMB64.7 million in the same period last year.

 

Net cash used in investing activities in the second quarter of 2021 was RMB208.5 million (US$32.3 million), compared to RMB186.7 million in the same period last year.

 

As of June 30, 2021, cash and cash equivalents was RMB2,192.5 million (US$339.6 million), compared to RMB2,362.3 million as of March 31, 2021. As of June 30, 2021, the balance of held-to-maturity investments was RMB2.2 million (US$0.3 million), compared to RMB3.1 million as of March 31, 2021. As of June 30, 2021, the balance of available-for-sale investments was RMB224.3 million (US$34.7 million), compared to RMB234.6 million as of March 31, 2021.

 

Delinquency rates. As of June 30, 2021, the delinquency rates for loans facilitated that are past due for 15-29 days, 30-59 days and 60-89 days were 0.5%, 0.8% and 0.7% respectively, compared to 0.5%, 0.8% and 0.6% respectively as of March 31, 2021.

 

Cumulative M3+ net charge-off rates. As of June 30, 2021, the cumulative M3+ net charge-off rate for loans facilitated in 2018, 2019 and 2020 was 9.9%, 10.5% and 3.7% respectively, as compared to 10.0%, 9.7% and 2.2% respectively as of March 31, 2021.

 

[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 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.

 

Board Composition Change

 

Mr. Quan Zhou will resign from the board, having fulfilled his term as a board member since January 2015, effective August 19, 2021.

 

"On behalf of Yiren Digital's Board of Directors, I would like to express my gratitude to Mr. Quan Zhou for his time, dedication and valuable contribution to the Company," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.

 

 

 

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 RMB6.4566 to US$1.00, the effective noon buying rate on June 30, 2021, 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 August 19, 2021 (or 8:00 p.m. Beijing/Hong Kong Time on August 19, 2021).

 

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
U.S. +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 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 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 a leading digital personal financial management platform in China. The Company provides customized asset allocation services and wealth management solutions to China's mass affluent population as well as utilizes online and offline channels to provide retail credit facilitation services to individual borrowers and small business owners.

 

 

 

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 
   June 30,   March 31,   June 30,   June 30,   June 30,   June 30,   June 30, 
   2020   2021   2021   2021   2020   2021   2021 
   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 costs   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 and others   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 Consolidated ABFE   (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 taxes   (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 outstanding, basic   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 outstanding, diluted   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 Flow Data                                   
Net cash (used in)/generated from operating activities   (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 activities   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 restricted cash   (211,572)   (148,785)   (277,703)   (43,011)   (242,720)   (426,488)   (66,055)
Cash, cash equivalents and restricted cash, beginning of period   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, end of period   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 
   December 31,   March 31,   June 30,   June 30, 
   2020   2021   2021   2021 
   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 
Treasury stock   (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 
   June 30,     March 31,   June 30,   June 30,   June 30,   June 30,   June 30, 
   2020   2021   2021   2021   2020   2021   2021 
   RMB   RMB   RMB   USD   RMB   RMB   USD 
Operating Highlights                                   
Amount of investment in current investment products   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 products   30,392    110,072    120,091    120,091    30,142    203,472    203,472 
Amount of loans facilitated under loan facilitation model   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 facilitated under loan facilitation model   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 costs   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 costs   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            
December 31, 2015   1.3%   1.9%   1.5%
December 31, 2016   0.6%   0.8%   0.7%
December 31, 2017   0.5%   0.8%   0.6%
December 31, 2018   1.0%   1.8%   1.7%
December 31, 2019   0.8%   1.3%   1.0%
December 31, 2020   0.5%   0.7%   0.6%
March 31, 2021   0.5%   0.8%   0.6%
June 30, 2021   0.5%   0.8%   0.7%
                
Online Channels               
December 31, 2015   0.4%   0.7%   0.5%
December 31, 2016   0.8%   1.1%   1.7%
December 31, 2017   0.3%   0.2%   0.0%
December 31, 2018   0.9%   1.7%   1.5%
December 31, 2019   1.0%   2.1%   1.6%
December 31, 2020   0.6%   1.0%   1.1%
March 31, 2021   0.5%   0.9%   0.7%
June 30, 2021   0.7%   0.9%   0.8%
                
Offline Channels               
December 31, 2015   1.3%   2.0%   1.6%
December 31, 2016   0.6%   0.8%   0.7%
December 31, 2017   0.5%   0.9%   0.7%
December 31, 2018   1.1%   1.9%   1.8%
December 31, 2019   0.7%   0.9%   0.7%
December 31, 2020   0.4%   0.6%   0.4%
March 31, 2021   0.4%   0.7%   0.6%
June 30, 2021   0.4%   0.7%   0.6%

  

Net Charge-Off Rate (Loan Facilitation Model) 
Loan    Amount of Loans    Accumulated M3+Net    Net Total Charge-Off 
Issued
Period
   Facilitated
During the Period
   Charge-Off
as of June 30, 2021
   Rate
as of June 30, 2021
 
(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

Issued

  Month on Book 
Period  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%