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 November 2022

 

Commission File Number: 001-37657

 

YIREN DIGITAL LTD.

 

5/F, Hanwei Plaza, No. 7, Guanghua 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):  ¨

 

 

 

Exhibit Index

 

Exhibit No.	Description
99.1	Yiren Digital Reports Third Quarter 2022 Financial Results

 

 

SIGNATURE

 

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: November 23, 2022

 

 

Exhibit 99.1

 

Yiren Digital Reports Third Quarter 2022 Financial Results

 

BEIJING, Nov. 22, 2022 /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 quarter ended September 30, 2022.

 

Third Quarter 2022 Operational Highlights

 

Holistic Wealth Business

 

•

Cumulative number of clients served reached 3,080,757 as of September 30, 2022, representing an increase of 17.9% from 2,612,279 as of September 30, 2021.

•

Number of active clients[1] was 621,137 as of September 30, 2022, representing an increase of 45.2% from 427,873 as of September 30, 2021. The increase was driven by our expanding insurance brokerage business and Yiren Select initiatives.

•

Total client assets[2] reached RMB22,795.8 million (US$3,204.6 million) as of September 30, 2022, representing an increase of 30.9% from RMB17,415.3 million as of September 30, 2021.

•

Sales volume of investment products amounted to RMB4,476.4 million (US$629.3 million) in the third quarter of 2022, representing a decrease of 11.0% from RMB5,030.2 million in the third quarter of 2021. The decrease was due to the changes of product mix.

 

Credit-tech Business

 

•

Total loans facilitated in the third quarter of 2022 reached RMB6.3 billion (US$0.9 billion), representing a decrease of 7.9% from RMB6.8 billion in the third quarter of 2021. The decrease was mainly due to the strategic optimization of our product structure.

•

Cumulative number of borrowers served reached 6,960,095 as of September 30, 2022, representing an increase of 19.2% compared to 5,840,424 as of September 30, 2021.

•

Number of borrowers served in the third quarter of 2022 was 737,320 representing an increase of 34.4% from 548,495 in the third quarter of 2021. The increase was due to our improved services, enriched membership benefits as well as enhanced customer engagement.

•

Outstanding balance of performing loans facilitated reached RMB10,630.4 million (US$1,494.4 million) as of September 30, 2022, representing a decrease of 22.9% from RMB13,793.9 million as of September 30, 2021. The decrease was due to the scale back of our offline business as part of our business optimization process coupled with impacts from the pandemic resurgence.

 

Consumption-Driven Services

 

•

Total gross merchandise volume generated through our e-commerce platform and "Yiren Select" channel reached RMB249.6 million (US$35.1 million) in the third quarter of 2022.

 

"We are pleased to deliver a resilient quarter with solid business recovery and continued improvement in profitability post our product restructuring and pandemic resurgence in the first half this year," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.

 

"Regarding our holistic wealth business, our insurance brokerage business continues its strong momentum this quarter, becoming an essential revenue pillar. In the third quarter of 2022, our total premiums reached RMB1 billion, representing a 36% increase year on year, surpassing the industry average growth rate by over six times. Revenue generated from Hexiang Insurance brokerage services reached RMB189 million, accounting for more than 22% of total revenue in the third quarter this year, and we expect to see an accelerated double-digit growth in the fourth quarter, driven by our outstanding capabilities in product customization and innovation."

 

"On our credit-tech business, new loan portfolios post the product optimization enjoy higher operating efficiencies and lower borrowing costs, translating into healthier unit economics that allows us to better scale. In the third quarter this year, our total loan volume reached RMB6.3 billion, accounting for 66% of total loans facilitated in the first half this year and reaching close to pre-restructuring level. Given the current strong demand for our loan-facilitation services, especially for our small revolving loans, we project a further two-digit growth quarter over quarter in total loan volume in the fourth quarter this year."

 

"We delivered a solid profit of RMB270 million this quarter, reflecting a net income margin of 32.2%, up 6.2 percentage points from the same period of last year as we enjoy better unit economics post the product-restructuring and continue to improve our cost control," said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "Turning to our balance sheet, we remained at a strong cash position with usable cash reaching RMB4.7 billion as of September 30, 2022, reserving sufficient buffer for the further execution of our share repurchase plan announced earlier this year as well as providing enough fuels for any new business opportunities going ahead."

 

 

Third Quarter 2022 Financial Results

 

Total net revenue in the third quarter of 2022 was RMB840.7 million (US$118.2 million), representing a decrease of 31.8% from RMB1,232.0 million in the third quarter of 2021. Particularly, in the third quarter of 2022, revenue from credit-tech business was RMB493.4 million (US$69.4 million), representing a decrease of 44.8% from RMB894.4 million in the same period of 2021. The decrease was due to the strategic shift of our product structure and pricing. Revenue from holistic wealth business was RMB294.3 million ($41.4 million), representing a decrease of 12.8% from RMB337.6 million in the third quarter of 2021. The decrease was due to the declined sales volume of investment products.

 

Sales and marketing expenses in the third quarter of 2022 were RMB136.4 million (US$19.2 million), compared to RMB407.2 million in the same period of 2021. The decrease was primarily due to the optimization of cost structure for our offline business.

 

Origination, servicing and other operating costs in the third quarter of 2022 were RMB223.6 million (US$31.4 million), compared to RMB186.9 million in the same period of 2021. The increase was due to the expanding insurance brokerage business.

 

General and administrative expenses in the third quarter of 2022 were RMB109.9 million (US$15.5 million), compared to RMB139.3 million in the same period of 2021. The decrease was mainly due to the optimization of the Company's offline business.

 

Allowance for contract assets, receivables and others in the third quarter of 2022 was RMB35.1 million (US$4.9 million), compared to RMB83.6 million in the same period of 2021. The decrease was primarily due to the impact of the optimization of product mix.

 

Income tax expense in the third quarter of 2022 was RMB70.0 million (US$9.8 million).

 

Net income in the third quarter of 2022 was RMB270.3 million (US$38.0 million), as compared to RMB320.9 million in the same period in 2021. The decrease was due to the declined revenue amid product structure transitions yet net income margin increased to 32.2% in the third quarter of 2022 from 26.0% in the same period of 2021 due to the improved cost efficiency.

 

Adjusted EBITDA^[3] (non-GAAP) in the third quarter of 2022 was RMB365.0 million (US$51.3 million), compared to RMB438.6 million in the same period of 2021.

 

Basic and diluted income per ADS in the third quarter of 2022 was RMB3.0 (US$0.4) and RMB3.0 (US$0.4), compared to a basic per ADS of RMB3.8 and a diluted per ADS of RMB3.7 in the same period of 2021.

 

Net cash generated from operating activities in the third quarter of 2022 was RMB342.9 million (US$48.2 million), compared to RMB323.8 million in the same period of 2021.

 

Net cash used in investing activities in the third quarter of 2022 was RMB835.1 million (US$117.4 million), compared to RMB233.8 million in the same period of 2021.

 

[1] Active clients refer to those who have made at least one investment through our holistic wealth ecosystem or have 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 clients on our platforms.

[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.

 

As of September 30, 2022, cash and cash equivalents were RMB3,613.0 million (US$507.9 million), compared to RMB4,354.5 million as of June 30, 2022 and RMB2,864.5 million as of December 31, 2021. As of September 30, 2022, the balance of held-to-maturity investments was RMB1.8 million (US$0.3 million), compared to RMB102.2 million as of June 30, 2022 and RMB2.2 million as of December 31, 2021. As of September 30, 2022, the balance of available-for-sale investments was RMB1,109.4 million (US$156.0 million), compared to RMB136.4 million as of June 30, 2022 and RMB177.4 million as of December 31, 2021.

 

Delinquency rates. As of September 30, 2022, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.7%, 1.1% and 1.0% respectively, compared to 0.6%, 1.4% and 1.5% respectively as of June 30, 2022.

 

Cumulative M3+ net charge-off rates. As of September 30, 2022, the cumulative M3+ net charge-off rates for loans originated in 2019, 2020 and 2021 were 11.7%, 8.0% and 6.1% respectively, as compared to 11.7%, 7.8% and 5.3% respectively as of June 30, 2022.

 

 

Business Outlook

 

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the fourth quarter of 2022 to be between RMB0.9 billion to RMB1.1 billion, with net profit margin expected to remain stable.

 

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

 

Recent Development

 

The board of directors of the Company (the "Board") has appointed Mr. Hiu Fung Vincent Pang as (i) a director of the Company, (ii) the chairman of the Nominating and Corporate Governance Committee, (iii) a member of the Audit Committee, and (iv) a member of the Compensation Committee, to succeed Ms. Chaomei Chen, who has resigned from the foregoing positions due to personal reasons. The director change became effective on November 22, 2022.

 

Mr. Hiu Fung Vincent Pang has over 30 years of experience in auditing, consulting and taxation. He served as a Partner at KPMG Consulting (China) Co., Ltd. for over 15 years until his retirement in December 2021, during which he served as the Partner in Charge of Northern China Tax department of KPMG Consulting (China) Co., Ltd. from 2017 to 2020. Previously, Mr. Pang held various positions at Deloitte Beijing, Beijing Zhonggongxin Certified Public Accountants Co., Ltd., PricewaterhouseCoopers Beijing, KPMG Vancouver and Dyke & Howard Vancouver from 1991 to 2006. Mr. Pang received a degree of Bachelor of Commerce from McGill University in Canada in 1991. Mr. Pang is also a Canadian Chartered Accountant.

 

The Board has determined that Mr. Hiu Fung Vincent Pang satisfies the "independence" requirements of Section 303A of the Corporate Governance Rules of the NYSE and Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

 

"We are grateful for all the contributions that Ms. Chaomei Chen has made to the Company during the past six years and sincerely wish her all the best in her future endeavors," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "We would like to welcome Mr. Pang to Yiren Digital. Mr. Pang's extensive background in accounting, consulting and taxation will provide valuable insight and guidance to the Company," continued Mr. Ning Tang.

 

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.

 

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 RMB7.1135 to US$1.00, the effective noon buying rate on September 30, 2022, 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 November 22, 2022 (or 9:00 p.m. Beijing/Hong Kong Time on November 22, 2022).

 

Participants who wish to join the call should register online in advance of the conference at:

 

https://s1.c-conf.com/diamondpass/10027037-fkc8rq.html

 

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://edge.media-server.com/mmc/p/tjzaznsw

 

 

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-based holistic wealth solutions to China's mass affluent population as well as provides 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 Nine Months Ended
		September 30, 2021				September 30, 2022				September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2022
		RMB				RMB				USD				RMB				RMB				USD
Net revenue:
Loan facilitation services			601,283				334,162				46,976				1,694,788				837,548				117,741
Post-origination services			39,024				74,433				10,464				124,394				166,720				23,437
Insurance brokerage services			199,406				189,019				26,572				510,911				532,770				74,896
Financing services			144,614				54,702				7,690				384,813				242,843				34,138
Electronic commerce services			-				52,954				7,444				-				173,742				24,424
Others			247,664				135,385				19,031				742,083				392,921				55,236
Total net revenue			1,231,991				840,655				118,177				3,456,989				2,346,544				329,872
Operating costs and expenses:
Sales and marketing			407,172				136,406				19,176				1,249,230				470,547				66,149
Origination,servicing and other operating costs			186,915				223,622				31,436				544,107				565,250				79,462
General and administrative			139,321				109,947				15,456				386,876				338,459				47,580
Allowance for contract assets, receivables and others			83,578				35,074				4,931				318,243				132,476				18,622
Total operating costs and expenses			816,986				505,049				70,999				2,498,456				1,506,732				211,813
Other (expenses)/income:
Interest expense, net			(21,565	)			(378	)			(53	)			(55,327	)			(29,741	)			(4,181	)
Fair value adjustments related to Consolidated ABFE			(526	)			2,077				292				(49,162	)			21,862				3,073
Others, net			3,934				3,035				427				23,730				18,930				2,661
Total other (expenses)/income			(18,157	)			4,734				666				(80,759	)			11,051				1,553
Income before provision for income taxes			396,848				340,340				47,844				877,774				850,863				119,612
Income tax expense			75,923				70,020				9,843				175,555				141,227				19,853
Net income			320,925				270,320				38,001				702,219				709,636				99,759
Weighted average number of ordinary shares outstanding, basic			170,193,542				179,409,525				179,409,525				168,719,693				173,174,370				173,174,370
Basic income per share			1.8856				1.5067				0.2118				4.1620				4.0978				0.5761
Basic income per ADS			3.7712				3.0134				0.4236				8.3240				8.1956				1.1522
Weighted average number of ordinary shares outstanding, diluted			171,571,392				179,841,065				179,841,065				169,972,343				173,962,494				173,962,494
Diluted income per share			1.8705				1.5031				0.2113				4.1314				4.0792				0.5735
Diluted income per ADS			3.7410				3.0062				0.4226				8.2628				8.1584				1.1470
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from/(used in) operating activities			323,819				342,888				48,202				(31,185	)			1,377,540				193,651
Net cash  (used in)/provided by investing activities			(233,782	)			(835,064	)			(117,391	)			(728,377	)			(230,586	)			(32,415	)
Net cash provided by/(used in) financing activities			49,770				(276,198	)			(38,827	)			473,277				(434,572	)			(61,091	)
Effect of foreign exchange rate changes			(257	)			2,284				321				(653	)			3,592				505
Net increase/(decrease) in cash, cash equivalents and restricted cash			139,550				(766,090	)			(107,695	)			(286,938	)			715,974				100,650
Cash, cash equivalents and restricted cash, beginning of period			2,280,660				4,427,408				622,395				2,707,148				2,945,344				414,050
Cash, cash equivalents and restricted cash, end of period			2,420,210				3,661,318				514,700				2,420,210				3,661,318				514,700

 

 

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

		As of
		December 31, 2021				June 30, 2022				September 30, 2022				September 30, 2022
		RMB				RMB				RMB				USD
Cash and cash equivalents			2,864,543				4,354,487				3,612,972				507,904
Restricted cash			80,800				72,921				48,346				6,796
Accounts receivable			305,018				297,939				274,623				38,606
Contract assets, net			1,105,905				634,079				502,936				70,702
Contract cost			9,959				2,545				1,610				226
Prepaid expenses and other assets			352,015				266,636				361,258				50,785
Loans at fair value			73,734				19,812				11,109				1,562
Financing receivables			1,697,962				960,238				713,411				100,290
Amounts due from related parties			879,256				935,714				1,124,738				158,113
Held-to-maturity investments			2,200				102,200				1,800				253
Available-for-sale investments			177,360				136,362				1,109,408				155,958
Property, equipment and software, net			102,548				92,714				82,184				11,553
Deferred tax assets			7,388				75,555				102,934				14,470
Right-of-use assets			80,752				48,151				39,133				5,501
Total assets			7,739,440				7,999,353				7,986,462				1,122,719
Accounts payable			19,065				30,903				31,711				4,458
Amounts due to related parties			434,127				411,530				244,185				34,327
Deferred revenue			12,379				1,713				526				74
Payable to investors at fair value			50,686				49,605				39,598				5,567
Accrued expenses and other liabilities			1,182,783				1,242,139				1,234,738				173,577
Secured borrowings			1,028,600				869,300				767,900				107,950
Refund liability			5,732				5,390				351				49
Deferred tax liabilities			112,535				80,200				78,819				11,079
Lease liabilities			72,101				49,724				40,968				5,759
Total liabilities			2,918,008				2,740,504				2,438,796				342,840
Ordinary shares			123				123				129				18
Additional paid-in capital			5,100,486				5,107,095				5,158,676				725,195
Treasury stock			(42,897	)			(42,897	)			(42,897	)			(6,030	)
Accumulated other comprehensive income			11,553				4,772				7,509				1,056
Accumulated deficit			(247,833	)			189,756				424,249				59,640
Total equity			4,821,432				5,258,849				5,547,666				779,879
Total liabilities and equity			7,739,440				7,999,353				7,986,462				1,122,719

 

 

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 Nine Months Ended
		September 30, 2021				September 30, 2022				September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2022
		RMB				RMB				USD				RMB				RMB				USD
Operating Highlights
Amount of investment in current investment products			5,030,228				4,476,390				629,281				16,196,885				15,394,970				2,164,191
Number of investors in current investment products			127,378				176,787				176,787				299,186				437,296				437,296
Amount of loans facilitated under loan facilitation model			6,841,921				6,298,522				885,432				17,025,066				15,839,577				2,226,693
Number of borrowers			548,495				737,320				737,320				967,057				1,228,435				1,228,435
Remaining principal of performing loans facilitated under loan facilitation model			13,793,925				10,630,352				1,494,391				13,793,925				10,630,352				1,494,391
Gross merchandise volume			-				249,624				35,092				-				395,762				55,635
Segment Information
Holistic Wealth:
Revenue			337,627				294,332				41,376				888,209				852,237				119,806
Sales and marketing expenses			55,463				46,698				6,565				123,494				142,480				20,030
Origination,servicing and other operating costs			159,348				165,605				23,280				442,363				403,738				56,757
Consumer credit:
Revenue			894,364				493,369				69,357				2,568,780				1,320,565				185,642
Sales and marketing expenses			351,709				88,714				12,471				1,125,736				325,934				45,819
Origination,servicing and other operating costs			27,567				39,951				5,616				101,744				113,454				15,949
Others:
Revenue			-				52,954				7,444				-				173,742				24,424
Sales and marketing expenses			-				994				140				-				2,133				300
Origination,servicing and other operating costs			-				18,066				2,540				-				48,058				6,756
Reconciliation of Adjusted EBITDA
Net income			320,925				270,320				38,001				702,219				709,636				99,759
Interest expense, net			21,565				378				53				55,327				29,741				4,181
Income tax expense			75,923				70,020				9,843				175,555				141,227				19,853
Depreciation and amortization			8,449				8,514				1,197				35,770				23,893				3,359
Share-based compensation			11,742				15,760				2,216				16,592				20,642				2,902
Adjusted EBITDA			438,604				364,992				51,310				985,463				925,139				130,054
Adjusted EBITDA margin			35.6	%			43.4	%			43.4	%			28.5	%			39.4	%			39.4	%

 

 

Delinquency Rates (Loan Facilitation Model)
		15-29 days				30-59 days				60-89 days
All Loans
December 31, 2019			0.8	%			1.3	%			1.0	%
December 31, 2020			0.5	%			0.7	%			0.6	%
December 31, 2021			0.9	%			1.5	%			1.2	%
March 31, 2022			0.9	%			2.0	%			1.9	%
June 30, 2022			0.6	%			1.4	%			1.5	%
Septempber 30, 2022			0.7	%			1.1	%			1.0	%
Online Channels
December 31, 2019			1.0	%			2.1	%			1.6	%
December 31, 2020			0.6	%			1.0	%			1.1	%
December 31, 2021			0.8	%			1.3	%			1.1	%
March 31, 2022			0.7	%			1.5	%			1.3	%
June 30, 2022			0.6	%			1.1	%			1.2	%
Septempber 30, 2022			0.6	%			0.9	%			0.8	%
Offline Channels
December 31, 2019			0.7	%			0.9	%			0.7	%
December 31, 2020			0.4	%			0.6	%			0.4	%
December 31, 2021			1.0	%			1.8	%			1.4	%
March 31, 2022			1.1	%			2.7	%			2.9	%
June 30, 2022			0.8	%			2.0	%			2.3	%
Septempber 30, 2022			1.3	%			1.9	%			1.9	%

 

Net Charge-Off Rate (Loan Facilitation Model)
Loan Issued Period		Amount of Loans Facilitated During the Period				Accumulated M3+ Net Charge-Off as of Septempber 30, 2022				Total Net Charge-Off Rate as of Septempber 30, 2022
		(in RMB thousands)				(in RMB thousands)
2019			3,431,443				401,135				11.7	%
2020			9,614,819				768,606				8.0	%
2021			23,195,224				1,414,959				6.1	%
2022H1			9,541,056				140,742				1.5	%

 

 

M3+ Net Charge-Off Rate (Loan Facilitation Model)
Loan Issued Period		Month on Book
		4				7				10				13				16				19				22				25				28				31				34
2019Q1			0.0	%			0.8	%			2.0	%			3.4	%			5.3	%			5.9	%			6.3	%			6.3	%			6.3	%			6.3	%			6.3	%
2019Q2			0.1	%			1.5	%			4.5	%			7.5	%			8.8	%			9.2	%			9.9	%			10.3	%			10.6	%			10.6	%			10.6	%
2019Q3			0.2	%			2.9	%			6.8	%			9.0	%			10.4	%			12.0	%			13.2	%			13.8	%			14.4	%			14.6	%			14.6	%
2019Q4			0.4	%			3.1	%			4.9	%			6.3	%			7.2	%			7.9	%			8.4	%			8.9	%			9.5	%			9.8	%
2020Q1			0.6	%			2.3	%			4.1	%			5.2	%			6.0	%			6.2	%			6.6	%			7.2	%			7.7	%
2020Q2			0.5	%			2.5	%			4.2	%			5.3	%			6.1	%			6.7	%			7.5	%			8.1	%
2020Q3			1.1	%			3.3	%			5.1	%			6.3	%			7.1	%			8.1	%			8.7	%
2020Q4			0.3	%			1.8	%			3.2	%			4.6	%			6.0	%			7.0	%
2021Q1			0.4	%			2.3	%			3.9	%			5.5	%			6.6	%
2021Q2			0.4	%			2.4	%			4.5	%			5.9	%
2021Q3			0.5	%			3.1	%			5.0	%
2021Q4			0.6	%			3.2	%
2022Q1			0.6	%

 

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