Yiren Digital Reports Fourth Quarter and Fiscal Year 2023 Financial Results

BEIJING, March 21, 2024 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China, today announced its unaudited financial results for the quarter ended December 31, 2023.

Fourth Quarter 2023 and Fiscal Year 2023 Operational Highlights

Financial Services Business

  • Total loans facilitated in the fourth quarter of 2023 reached RMB11.6 billion (US$1.6 billion), representing an increase of 18.7% from RMB9.8 billion in the third quarter of 2023 and compared to RMB6.8 billion in the same period of 2022. For the fiscal year of 2023, total loans facilitated reached RMB36.0 billion, compared to RMB22.6 billion in 2022.
  • Cumulative number of borrowers served reached 9,295,666 as of December 31, 2023, representing an increase of 8.1% from 8,595,780 as of September 30, 2023 and compared to 7,277,627 as of December 31, 2022.
  • Number of borrowers served in the fourth quarter of 2023 was 1,371,501, representing an increase of 13.9% from 1,204,012 in the third quarter of 2023 and compared to 862,226 in the same period of 2022. The increase was driven by the strong demand for our small revolving loan products and the improvement of customer acquisition efficiency. For the fiscal year of 2023, total number of borrowers served was 2,891,901, compared to 1,606,893 in 2022.
  • Outstanding balance of performing loans facilitated reached RMB18.3 billion (US$2.6 billion) as of December 31, 2023, representing an increase of 20.9% from RMB15.1 billion as of September 30, 2023 and compared to RMB11.3 billion as of December 31, 2022.

Insurance Brokerage Business

  • Cumulative number of insurance clients served reached 1,283,102 as of December 31, 2023, representing an increase of 2.1% from 1,256,762 as of September 30, 2023 and compared to 924,824 as of December 31, 2022.
  • Number of insurance clients served in the fourth quarter of 2023 was 102,556, representing a decrease of 17.1% from 123,693 in the third quarter of 2023 and compared to 85,314 in the same period of 2022. The decrease was primarily due to the decline in life insurance volume following product changes under the new regulations. For the fiscal year of 2023, total number of insurance clients served was 358,278, compared to 431,701 in 2022.
  • Gross written premiums in the fourth quarter of 2023 were RMB1,208.7 million (US$170.2 million), representing a decrease of 15.4% from RMB1,428.5 million in the third quarter of 2023 and compared to RMB1,335.5 million in the same period of 2022. The decrease was mainly attributed to the declined life insurance volume following product changes under the new regulations. For the fiscal year of 2023, total gross written premiums were RMB4,893.0 million, compared to RMB3,936.6 million in 2022.

Consumption and Lifestyle Business

  • Total gross merchandise volume generated through our e-commerce platform and “Yiren Select” channel reached RMB692.7 million (US$97.6 million) in the fourth quarter of 2023, representing an increase of 23.0% from RMB563.2 million in the third quarter of 2023 and compared to RMB292.1 million in the same period of 2022. The increase was mainly due to the continuous growth of paying customers on our e-commerce platform. For the fiscal year of 2023, total gross merchandise volume was RMB1,960.3 million, compared to RMB687.8 million in 2022.

“In a year of global economic uncertainties, we wrapped up 2023 stronger than ever, showcasing the strength and resilience of our business. The year also marked a pivotal moment for us as we firmly established ourselves as a pioneering AI-driven financial and lifestyle services platform,” said Mr. Ning Tang, Chairman and Chief Executive Officer. “Through our ‘AI Lab’ initiative, we have been training and fine-tuning our Large Language Models (LLM) and developing our own LLM Operations platform. This endeavor will, firstly, deepen AI integration across our operational spectrum, boosting efficiency and enhancing customer experience. Secondly, we aim to expand our AI expertise beyond the fintech verticals to more selected sectors, empowering both B2B and B2C clients and partners with advanced technological capabilities. Moreover, we have recently encountered high-quality AI companies and plan to expand our AI ecosystem through strategic partnerships and investments. The horizon is brimming with exciting prospects.”

“We are glad to report a solid full year of 2023, with both our top line and bottom line realizing double-digit annual growth, beating our previous guidance.” Ms. Na Mei, Chief Financial Officer commented. “Our balance sheet remains strong with total cash and cash equivalents of RMB5.8 billion by the end of the year, providing a sufficient buffer for us to respond to any business opportunities in institutional operations, international expansion, and strategic AI deployment.”

Fourth Quarter 2023 Financial Results

Total net revenue in the fourth quarter of 2023 was RMB1,274.3 million (US$179.5 million), representing an increase of 17.1% from RMB1,088.1 million in the fourth quarter of 2022. Particularly, in the fourth quarter of 2023, revenue from financial services business was RMB781.3 million (US$110.0 million), representing an increase of 22.2% from RMB639.2 million in the same period of 2022. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB98.2 million (US$13.8 million), representing a decrease of 50.7% from RMB199.0 million in the fourth quarter of 2022. The decrease was due to declined sales of life insurance attributed to product changes under the new regulations. Revenue from consumption and lifestyle business and others was RMB394.8 million (US$55.6 million), representing an increase of 58.0% from RMB249.9 million in the fourth quarter of 2022. The increase was primarily attributed to the continuous growth in gross merchandise volume generated through our e-commerce platform, driven by an expanding base of paying customers on the platform.

Sales and marketing expenses in the fourth quarter of 2023 were RMB205.7 million (US$29.0 million), compared to RMB103.4 million in the same period of 2022. The increase was primarily due to the growth of financial services business volume.

Origination, servicing and other operating costs in the fourth quarter of 2023 were RMB184.7 million (US$26.0 million), compared to RMB211.6 million in the same period of 2022. The decrease was due to the decline in sales of life insurance products attributed to product changes under the new regulations.

Research and development expenses[1] in the fourth quarter of 2023 were RMB47.6 million (US$6.7 million), compared to RMB32.9 million in the same period of 2022. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.

General and administrative expenses in the fourth quarter of 2023 were RMB50.5 million (US$7.1 million), which remained stable compared to RMB52.3 million in the same period of 2022.

Allowance for contract assets, receivables and others in the fourth quarter of 2023 was RMB98.7 million (US$13.9 million), compared to RMB55.7 million in the same period of 2022. The increase was primarily attributed to the growing volume of loans facilitated on our platform.

Income tax expense in the fourth quarter of 2023 was RMB140.8 million (US$19.8 million).

Net income in the fourth quarter of 2023 was RMB571.3 million (US$80.5 million), as compared to RMB485.2 million in the same period in 2022. The increase was primarily due to the recovery of business volume and optimization of our business structure.

Adjusted EBITDA[2] (non-GAAP) in the fourth quarter of 2023 was RMB684.8 million (US$96.5 million), compared to RMB645.1 million in the same period of 2022.

Basic and diluted income per ADS in the fourth quarter of 2023 were RMB6.5 (US$0.9) and RMB6.5 (US$0.9) respectively, compared to a basic per ADS of RMB5.4 and a diluted per ADS of RMB5.4 in the same period of 2022.

Net cash generated from operating activities in the fourth quarter of 2023 was RMB417.2 million (US$58.8 million), compared to RMB471.9 million in the same period of 2022.

Net cash used in investing activities in the fourth quarter of 2023 was RMB260.3 million (US$36.7 million), compared to RMB283.1 million provided by investing activities in the same period of 2022.

Net cash provided by financing activities in the fourth quarter of 2023 was RMB332.3 million (US$46.8 million), compared to RMB54.6 million used in financing activities in the same period of 2022.

As of December 31, 2023, cash and cash equivalents were RMB5,791.3 million (US$815.7 million), compared to RMB5,438.0 million as of September 30, 2023. As of December 31, 2023, the balance of held-to-maturity investments was RMB10.4 million (US$1.5 million), compared to RMB4.8 million as of September 30, 2023. As of December 31, 2023, the balance of available-for-sale investments was RMB438.1 million (US$61.7 million), compared to RMB338.1 million as of September 30, 2023. As of December 31, 2023, the balance of trading securities was RMB76.1 million (US$10.7 million), compared to RMB74.2 million as of September 30, 2023.

Delinquency rates. As of December 31, 2023, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.9%, 1.4% and 1.2%, respectively, compared to 0.8%, 1.2% and 1.0%, respectively, as of September 30, 2023.

Cumulative M3+ net chargeoff rates. As of December 31, 2023, the cumulative M3+ net charge-off rates for loans originated in 2020, 2021 and 2022 were 7.8%, 6.4% and 4.7%, respectively, as compared to 7.9%, 6.5% and 4.5%, respectively, as of September 30, 2023.

Fiscal Year 2023 Financial Results

Total net revenue in 2023 was RMB4,895.6 million (US$689.5 million), compared to RMB3,434.6 million in 2022. Specifically, revenue from financial services business in 2023 was RMB2,515.1 million (US$354.2 million), compared to RMB1,959.7 million in 2022. The increase was driven by the growing demand for our small revolving loan products. Revenue from insurance brokerage business in 2023 was RMB963.8 million (US$135.8 million), compared to RMB731.8 million in 2022. The increase was driven by our improved customer acquisition and serving capabilities. Revenue from consumption and lifestyle business and others was RMB1,416.7million (US$199.5 million), compared to RMB743.1 million in 2022. The increase was due to the continuous growth of paying customers on our e-commerce platform.

Sales and marketing expenses in 2023 was RMB656.6 million (US$92.5 million), compared to RMB574.0 million in 2022. The increase was primarily due to the growth of financial services business volume.

Origination, servicing and other operating costs in 2023 was RMB976.2 million (US$137.5 million), compared to RMB776.8 million in 2022. The increase was due to the rapid growth of our overall business scale compared to the year of 2022.

Research and development expenses in 2023 was RMB148.8 million (US$21.0 million), which remained stable compared to RMB151.9 million in 2022.

General and administrative expenses in 2023 was RMB231.1 million (US$32.6 million), which remained stable compared to RMB271.8 million in 2022.

Allowance for contract assets, receivables and others in 2023 was RMB288.2 million (US$40.6 million), compared to RMB188.2 million in 2022. The increase was primarily attributed to the growing volume of loans facilitated on our platform.

Income tax expense in 2023 was RMB565.2 million (US$79.6 million).

Net income in 2023 was RMB2,080.2 million (US$293.0 million), compared to RMB1,194.9 million in 2022. The increase was driven by the growing of our business volume.

Adjusted EBITDA (non-GAAP) in 2023 was RMB2,578.5 million (US$363.2 million), compared to RMB1,570.3 million in 2022.

Basic and diluted income per ADS in 2023 were RMB23.5 (US$3.3) and RMB23.3 (US$3.3) respectively, compared to a basic per ADS of RMB13.7 and a diluted per ADS of RMB13.6 in 2022.

Net cash generated from operating activities in 2023 was RMB2,171.0 million (US$305.8 million), compared to RMB1,849.4 million in 2022.

Business Outlook

Based on the Company’s preliminary assessment of business and market conditions, the Company projects the total revenue in the full year of 2024 to be between RMB5.8 billion to RMB6.8 billion, with a healthy net profit margin

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

Recent Development

In response to the recent SEC rules on cybersecurity risk management, strategy, governance, and incident disclosure, the board of directors has proactively adopted the Cybersecurity Incident Response Policy. This initiative, including the establishment of a cybersecurity risk management committee chaired by Mr. Ning Tang with members Mr. Sam Hanhui Sun and Mr. Hao Li, underscores the Company’s dedication to not only adhering to but exceeding regulatory standards, thereby enhancing the overall efficiency and transparency of corporate governance. The Company’s approach is rooted in a proactive stance towards risk management related to the use of information technology and data protection, reflecting a broader commitment to maintaining stakeholder trust by staying at the forefront of industry best practices. For more detailed information on the cybersecurity risk management committee and the committee’s charter, please visit our website at https://ir.yiren.com/

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 RMB7.0999 to US$1.00, the effective noon buying rate on December 29, 2023, 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 March 21, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on March 21, 2024).

Participants who wish to join the call should register online in advance of the conference at: https://s1.c-conf.com/diamondpass/10037668-ghu76t.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/rqq7rpic

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 the 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 an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Our mission is to elevate customers’ financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. We support clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses.

[1] Research and development expenses have been segregated from general and administrative expenses and restated for historical periods to better reflect the Company’s cost and expense structure.
[2] “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.

 

 

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 Year Ended 

December
31,

2022

September
30,

2023

December
31,

2023

December
31,

2023

December
31,

2022

December
31,

2023

December
31,

2023

RMB

RMB

RMB

USD

RMB

RMB

USD

Net revenue:

Loan facilitation services

525,137

586,883

722,451

101,755

1,362,685

2,240,852

315,617

Post-origination services

37,616

984

4,630

652

204,336

17,203

2,423

Insurance brokerage services

199,027

264,611

98,158

13,825

731,797

963,822

135,751

Financing services

35,940

9,937

8,564

1,206

278,783

55,974

7,884

Electronic commerce services

129,154

350,635

385,886

54,351

302,896

1,267,104

178,468

Others

161,202

97,724

54,621

7,694

554,123

350,678

49,392

Total net revenue

1,088,076

1,310,774

1,274,310

179,483

3,434,620

4,895,633

689,535

Operating costs and expenses:

Sales and marketing

103,427

195,714

205,730

28,977

573,974

656,603

92,481

Origination,servicing and other
operating costs

211,591

245,360

184,700

26,014

776,841

976,172

137,491

Research and development

32,936

38,981

47,586

6,702

151,924

148,754

20,952

General and administrative

52,323

53,519

50,512

7,115

271,794

231,135

32,555

Allowance for contract assets,
receivables and others

55,747

83,756

98,686

13,899

188,223

288,187

40,589

Total operating costs and expenses

456,024

617,330

587,214

82,707

1,962,756

2,300,851

324,068

Other income/(expenses):

Interest income/(expense), net

3,439

25,815

29,880

4,209

(26,302)

80,749

11,373

Fair value adjustments related to
Consolidated ABFE

(2,962)

(8,104)

(13,394)

(1,887)

18,900

(50,171)

(7,066)

Others, net

11,991

5,177

8,504

1,197

30,921

20,000

2,817

Total other income

12,468

22,888

24,990

3,519

23,519

50,578

7,124

Income before provision for income taxes

644,520

716,332

712,086

100,295

1,495,383

2,645,360

372,591

Income tax expense

159,285

161,917

140,818

19,833

300,512

565,163

79,601

Net income

485,235

554,415

571,268

80,462

1,194,871

2,080,197

292,990

Weighted average number of ordinary
shares outstanding, basic

179,211,437

176,866,653

175,445,539

175,445,539

174,695,959

176,749,706

176,749,706

Basic income per share

2.7076

3.1346

3.2561

0.4586

6.8397

11.7692

1.6577

Basic income per ADS

5.4152

6.2692

6.5122

0.9172

13.6794

23.5384

3.3154

Weighted average number of ordinary
shares outstanding, diluted

179,628,555

178,366,565

177,106,305

177,106,305

175,391,332

178,688,319

178,688,319

Diluted income per share

2.7013

3.1083

3.2256

0.4543

6.8126

11.6415

1.6397

Diluted income per ADS

5.4026

6.2166

6.4512

0.9086

13.6252

23.2830

3.2794

Unaudited Condensed Consolidated Cash Flow Data

Net cash generated from operating
activities

471,890

645,416

417,232

58,765

1,849,430

2,171,013

305,780

Net cash  provided by/(used in) investing
activities

283,145

(393,919)

(260,331)

(36,667)

52,559

100,045

14,091

Net cash (used in/)provided by financing
activities

(54,551)

(502,636)

332,309

46,805

(489,123)

(569,278)

(80,181)

Effect of foreign exchange rate changes

(1,107)

2,395

(6,414)

(903)

2,485

(3,871)

(545)

Net increase in cash, cash equivalents and
restricted cash

699,377

(248,744)

482,796

68,000

1,415,351

1,697,909

239,145

Cash, cash equivalents and restricted cash,
beginning of period

3,661,318

5,824,552

5,575,808

785,336

2,945,344

4,360,695

614,191

Cash, cash equivalents and restricted cash,
end of period

4,360,695

5,575,808

6,058,604

853,336

4,360,695

6,058,604

853,336

   

 

Unaudited Condensed Consolidated Balance Sheets

 (in thousands)

As of

December
31,

2022

September
30,

2023

December
31,

2023

December
31,

2023

RMB

RMB

RMB

USD

        Cash and cash equivalents

4,271,899

5,437,972

5,791,333

815,692

        Restricted cash

88,796

137,836

267,271

37,644

        Trading securities

74,185

76,053

10,712

        Accounts receivable

221,004

432,824

499,027

70,287

        Contract assets, net

626,739

826,088

978,051

137,756

        Contract cost

787

271

32

4

        Prepaid expenses and other assets

321,411

272,577

426,511

60,073

        Loans at fair value

54,049

534,687

677,835

95,471

        Financing receivables

514,388

162,411

116,164

16,361

        Amounts due from related parties

1,266,232

940,472

820,181

115,520

        Held-to-maturity investments

2,700

4,820

10,420

1,468

        Available-for-sale investments

972,738

338,069

438,084

61,703

        Property, equipment and software, net

77,256

73,446

79,158

11,149

        Deferred tax assets

84,187

88,231

73,414

10,340

        Right-of-use assets

33,909

27,352

23,382

3,293

Total assets

8,536,095

9,351,241

10,276,916

1,447,473

        Accounts payable

14,144

38,025

30,902

4,353

        Amounts due to related parties

227,724

27,664

14,414

2,030

        Deferred revenue

65,539

27,150

54,044

7,612

        Payable to investors at fair value

99,954

445,762

62,784

        Accrued expenses and other liabilities

1,315,006

1,483,190

1,500,522

211,344

        Secured borrowings

767,900

        Deferred tax liabilities

79,740

118,543

122,075

17,194

        Lease liabilities

35,229

27,709

23,648

3,331

Total liabilities

2,505,282

1,822,235

2,191,367

308,648

        Ordinary shares

129

130

130

18

        Additional paid-in capital

5,160,783

5,169,821

5,171,232

728,353

        Treasury stock

(46,734)

(81,501)

(94,851)

(13,359)

        Accumulated other comprehensive
income

7,765

25,873

23,669

3,333

        Retained earnings

908,870

2,414,683

2,985,369

420,480

Total equity

6,030,813

7,529,006

8,085,549

1,138,825

Total liabilities and equity

8,536,095

9,351,241

10,276,916

1,447,473

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except for number of  borrowers, number of insurance clients, cumulative number of insurance clients and percentages)

 

For the Three Months Ended 

For the Year Ended 

December
31,

2022

September
30,

2023

December
31,

2023

December
31,

2023

December
31,

2022

December
31,

2023

December
31,

2023

RMB

RMB

RMB

USD

RMB

RMB

USD

Operating Highlights

Amount of loans facilitated 

6,783,523

9,814,359

11,645,528

1,640,238

22,623,101

36,036,301

5,075,607

Number of borrowers

862,226

1,204,012

1,371,501

1,371,501

1,606,893

2,891,901

2,891,901

Remaining principal of performing loans 

11,259,763

15,090,800

18,251,550

2,570,677

11,259,763

18,251,550

2,570,677

Cumulative number of insurance clients

924,824

1,256,762

1,283,102

1,283,102

924,824

1,283,102

1,283,102

Number of insurance clients

85,314

123,693

102,556

102,556

431,701

358,278

358,278

Gross written premiums

1,335,488

1,428,484

1,208,717

170,244

3,936,588

4,893,042

689,171

First year premium

665,452

914,839

536,252

75,529

2,737,062

3,180,334

447,941

Renewal premium

670,036

513,645

672,465

94,715

1,199,526

1,712,708

241,230

Gross merchandise volume 

292,086

563,224

692,733

97,569

687,848

1,960,344

276,109

Segment Information

Financial services business:

Revenue

639,167

667,966

781,306

110,045

1,959,732

2,515,119

354,247

Sales and marketing expenses

58,016

146,369

186,304

26,240

383,950

498,055

70,150

Origination, servicing and other operating
costs

38,085

59,300

77,598

10,929

151,539

223,468

31,475

Insurance brokerage business:

Revenue

199,027

264,611

98,158

13,825

731,797

963,822

135,751

Sales and marketing expenses

2,634

3,175

3,578

504

17,417

12,887

1,815

Origination, servicing and other operating
costs

137,256

176,182

98,019

13,806

524,767

697,669

98,265

Consumption & lifestyle business and others:

Revenue

249,882

378,197

394,846

55,613

743,091

1,416,692

199,537

Sales and marketing expenses

42,777

46,170

15,848

2,233

172,607

145,661

20,516

Origination, servicing and other operating
costs

36,250

9,878

9,083

1,279

100,535

55,035

7,751

Reconciliation of Adjusted EBITDA

Net income

485,235

554,415

571,268

80,462

1,194,871

2,080,197

292,990

Interest (income)/expense, net

(3,439)

(25,815)

(29,880)

(4,209)

26,302

(80,749)

(11,373)

Income tax expense

159,285

161,917

140,818

19,833

300,512

565,163

79,601

Depreciation and amortization

2,537

1,664

1,806

254

26,430

7,116

1,002

Share-based compensation

1,494

513

828

117

22,136

6,751

951

Adjusted EBITDA

645,112

692,694

684,840

96,457

1,570,251

2,578,478

363,171

Adjusted EBITDA margin

59.3 %

52.8 %

53.7 %

53.7 %

45.7 %

52.7 %

52.7 %

 

 

Delinquency Rates 

15-29 days

30-59 days

60-89 days

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 %

December 31, 2022

0.7 %

1.3 %

1.1 %

March 31, 2023

0.6 %

1.2 %

1.2 %

June 30, 2023

0.7 %

1.1 %

1.1 %

September 30, 2023

0.8 %

1.2 %

1.0 %

December 31, 2023

0.9 %

1.4 %

1.2 %

 

 

Net Charge-Off Rate 

Loan
Issued
Period

Amount of Loans
Facilitated

During the Period

Accumulated M3+ Net
Charge-Off

as of December 31,
2023

Total Net Charge-
Off Rate

as of December
31, 2023

(in RMB thousands)

(in RMB thousands)

2019

3,431,443

387,239

11.3 %

2020

9,614,819

746,687

7.8 %

2021

23,195,224

1,481,751

6.4 %

2022

22,623,101

1,070,819

4.7 %

2023Q1-Q3

24,390,773

694,391

2.8 %

 

 

 M3+ Net Charge-Off Rate 

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 %

9.8 %

2020Q1

0.6 %

2.3 %

4.1 %

5.2 %

6.0 %

6.2 %

6.6 %

7.3 %

7.8 %

7.9 %

7.9 %

2020Q2

0.5 %

2.5 %

4.2 %

5.3 %

6.1 %

6.7 %

7.6 %

8.1 %

8.2 %

8.3 %

8.2 %

2020Q3

1.1 %

3.3 %

5.1 %

6.3 %

7.1 %

8.1 %

8.7 %

8.9 %

8.9 %

8.8 %

8.7 %

2020Q4

0.3 %

1.8 %

3.2 %

4.6 %

6.0 %

7.1 %

7.4 %

7.6 %

7.6 %

7.5 %

7.5 %

2021Q1

0.4 %

2.3 %

3.9 %

5.5 %

6.7 %

7.0 %

7.2 %

7.3 %

7.2 %

7.1 %

2021Q2

0.4 %

2.4 %

4.5 %

5.9 %

6.4 %

6.7 %

6.8 %

6.7 %

6.6 %

2021Q3

0.5 %

3.1 %

5.0 %

5.9 %

6.3 %

6.4 %

6.4 %

6.3 %

2021Q4

0.6 %

3.2 %

4.6 %

5.3 %

5.4 %

5.4 %

5.3 %

2022Q1

0.6 %

2.5 %

3.8 %

4.5 %

4.5 %

4.4 %

2022Q2

0.4 %

2.2 %

3.6 %

4.1 %

4.2 %

2022Q3

0.5 %

2.7 %

4.1 %

4.7 %

2022Q4

0.6 %

3.0 %

4.6 %

2023Q1

0.5 %

3.1 %

2023Q2

0.5 %

 

View original content to download multimedia: Read More