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 March 2024

 

Commission File Number: 001-37657

 

YIREN DIGITAL LTD.

 

28/F, China Merchants Bureau Building, 118 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 ¨

 

 

 

Exhibit Index

 

Exhibit No.		Description
99.1		Yiren Digital Reports Fourth Quarter and Fiscal Year 2023 Financial Results

 

 

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: March 22, 2024

 

 

 

Exhibit 99.1

 

Yiren Digital Reports Fourth Quarter and Fiscal Year 2023 Financial Results

 

BEIJING – March 21, 2024 – 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 expenses¹ 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 EBITDA² (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.

 

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.

 

 

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 charge-off 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.

 

For investor and media inquiries, please contact:

Yiren Digital

Investor Relations

Email: ir@Yirendai.com

 

 

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
2019 Q1			0.0	%		0.8	%		2.0	%		3.4	%		5.3	%		5.9	%		6.3	%		6.3	%		6.3	%		6.3	%		6.3	%
2019 Q2			0.1	%		1.5	%		4.5	%		7.5	%		8.8	%		9.2	%		9.9	%		10.3	%		10.6	%		10.6	%		10.6	%
2019 Q3			0.2	%		2.9	%		6.8	%		9.0	%		10.4	%		12.0	%		13.2	%		13.8	%		14.4	%		14.6	%		14.6	%
2019 Q4			0.4	%		3.1	%		4.9	%		6.3	%		7.2	%		7.9	%		8.4	%		8.9	%		9.5	%		9.8	%		9.8	%
2020 Q1			0.6	%		2.3	%		4.1	%		5.2	%		6.0	%		6.2	%		6.6	%		7.3	%		7.8	%		7.9	%		7.9	%
2020 Q2			0.5	%		2.5	%		4.2	%		5.3	%		6.1	%		6.7	%		7.6	%		8.1	%		8.2	%		8.3	%		8.2	%
2020 Q3			1.1	%		3.3	%		5.1	%		6.3	%		7.1	%		8.1	%		8.7	%		8.9	%		8.9	%		8.8	%		8.7	%
2020 Q4			0.3	%		1.8	%		3.2	%		4.6	%		6.0	%		7.1	%		7.4	%		7.6	%		7.6	%		7.5	%		7.5	%
2021 Q1			0.4	%		2.3	%		3.9	%		5.5	%		6.7	%		7.0	%		7.2	%		7.3	%		7.2	%		7.1	%
2021 Q2			0.4	%		2.4	%		4.5	%		5.9	%		6.4	%		6.7	%		6.8	%		6.7	%		6.6	%
2021 Q3			0.5	%		3.1	%		5.0	%		5.9	%		6.3	%		6.4	%		6.4	%		6.3	%
2021 Q4			0.6	%		3.2	%		4.6	%		5.3	%		5.4	%		5.4	%		5.3	%
2022 Q1			0.6	%		2.5	%		3.8	%		4.5	%		4.5	%		4.4	%
2022 Q2			0.4	%		2.2	%		3.6	%		4.1	%		4.2	%
2022 Q3			0.5	%		2.7	%		4.1	%		4.7	%
2022 Q4			0.6	%		3.0	%		4.6	%
2023 Q1			0.5	%		3.1	%
2023 Q2			0.5	%