YRD Yiren Digital Ltd

 

 

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 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 Third Quarter 2024 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/ Yuning Feng
		Name:	Yuning Feng
		Title:	Chief Financial Officer

 

Date: November 21, 2024

 

 

 

Exhibit 99.1

 

Yiren Digital Reports Third Quarter 2024 Financial Results

 

BEIJING – November 20, 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 September 30, 2024.

 

Third Quarter 2024 Operational Highlights

 

Financial Services Business

 

·

Total loans facilitated in the third quarter of 2024 reached RMB13.4 billion (US$1.9 billion), representing an increase of 3.5% from RMB12.9 billion in the second quarter of 2024 and compared to RMB9.8 billion in the same period of 2023.

 

·

Cumulative number of borrowers served reached 11,611,899 as of September 30, 2024, representing an increase of 7.4% from 10,807,497 as of June 30, 2024, and compared to 8,595,780 as of September 30, 2023.

 

·

Number of borrowers served in the third quarter of 2024 was 1,498,020, representing an increase of 0.4% from 1,491,756 in the second quarter of 2024 and compared to 1,204,012 in the same period of 2023. As our efforts to upgrade the customer mix reach a milestone success, we are now shifting our focus to increasing the repeat rate of existing high-quality borrowers.

 

·

Outstanding balance of performing loans facilitated reached RMB22.8 billion (US$3.2 billion) as of September 30, 2024, representing an increase of 4.3% from RMB21.8 billion as of June 30, 2024 and compared to RMB15.1 billion as of September 30, 2023.

 

Insurance Brokerage Business

 

·

Cumulative number of insurance clients served reached 1,470,738 as of September 30, 2024, representing an increase of 4.3% from 1,410,158 as of June 30, 2024, and compared to 1,256,762 as of September 30, 2023.

 

·

Number of insurance clients served in the third quarter of 2024 was 82,291, representing a decrease of 7.3% from 88,766 in the second quarter of 2024, and compared to 123,693 in the same period of 2023. The decrease was due to the decline in new sales of our insurance products amid regulatory changes.

 

·

Gross written premiums in the third quarter of 2024 were RMB1,351.3 million (US$192.6 million), representing an increase of 27.4% from RMB1,060.9 million in the second quarter of 2024 and compared to RMB1,428.5 million in the same period of 2023. The quarterly increase was attributed to the gradual recovery of our life insurance business following product changes made in response to new regulations, along with the continued rise in renewed life insurance premiums.

 

 

Consumption and Lifestyle Business

 

·

Total gross merchandise volume generated through our e-commerce platform and “Yiren Select” channel reached RMB507.6 million (US$72.3 million) in the third quarter of 2024, representing a decrease of 8.5% from RMB554.6 million in the second quarter of 2024, and compared to RMB563.2 million in the same period of 2023. The decrease was mainly due to the already high penetration of our products and services within the existing customer pool, along with our strategic scale-back of product offerings as we shift our focus to upgrading customer segmentation.

 

"I’m pleased to report a stable and healthy quarter with concrete business development and strategic exploration, driven by our ‘quality over quantity’ strategy, which underscores our consistent focus on sustainable, high-quality growth." said Mr. Ning Tang, Chairman and Chief Executive Officer. 

 

"Our financial services business has improved asset quality through strong risk management and borrower optimization. We’ve also made progress in exploring new online business models for our insurance division. As a tech-powered platform, Yiren Digital prioritizes the use of technology and digital capabilities to enhance our business model. Furthermore, our AI investments are driving operational efficiency and enhancing the customer experience. These efforts lay the foundation for higher-quality growth and long-term value for our stakeholders."

 

"In the third quarter of this year, our total revenue reached RMB 1.5 billion, up 13% year-over-year." Mr. Yuning Feng, Chief Financial Officer commented. "On the balance sheet side, as we continued to make strategic long-term investments this quarter, cash and cash equivalents decreased compared to the end of the previous quarter, bringing the total to RMB3.7 billion. Despite this, our cash position remains strong and competitive within the industry. Meanwhile, we are continuing share buybacks and executing cash dividends to enhance returns for our shareholders."

 

Third Quarter 2024 Financial Results

 

Total net revenue in the third quarter of 2024 was RMB1,479.1 million (US$210.8 million), representing an increase of 12.8% from RMB1,310.8 million in the third quarter of 2023. Particularly, in the third quarter of 2024, revenue from financial services business was RMB836.2 million (US$119.2 million), representing an increase of 25.2% from RMB668.0 million in the same period of 2023.The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB85.5 million (US$12.2 million), representing a decrease of 67.7% from RMB264.6 million in the third quarter of 2023. The decrease was primarily driven by a decline in life insurance sales, resulting from product modifications mandated by new regulations, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB557.4 million (US$79.4 million), representing an increase of 47.4% from RMB378.2 million in the third quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the third quarter of 2024, the growth rate is expected to moderate.

 

 

Sales and marketing expenses in the third quarter of 2024 were RMB335.6 million (US$47.8 million), compared to RMB195.7 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new, high-caliber customers while optimizing our customer composition.

 

Origination, servicing and other operating costs in the third quarter of 2024 were RMB205.9million (US$29.3 million), compared to RMB245.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services.

 

Research and development expenses in the third quarter of 2024 were RMB150.8 million (US$21.5 million), compared to RMB39.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.

 

General and administrative expenses in the third quarter of 2024 were RMB80.1 million (US$11.4 million), compared to RMB53.5 million in the same period of 2023. The increase was primarily due to increasing incentive bonus and employee benefits.

 

Allowance for contract assets, receivables and others in the third quarter of 2024 was RMB94.9 million (US$13.5 million), compared to RMB72.7 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the stringent risk estimates in response to the evolving external credit environment.

 

Provision for contingent liabilities in the third quarter of 2024 was RMB272.4 million (US$38.8 million), compared to RMB11.1 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model^[1].

 

Income tax expense in the third quarter of 2024 was RMB44.7 million (US$6.4 million). 

 

Net income in the third quarter of 2024 was RMB355.4 million (US$50.7 million), as compared to RMB554.4 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles. 

 

^[1] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.

 

 

Adjusted EBITDA^[2] (non-GAAP) in the third quarter of 2024 was RMB393.9 million (US$56.1 million), compared to RMB692.7 million in the same period of 2023. 

 

Basic and diluted income per ADS in the third quarter of 2024 were RMB4.1 (US$0.6) and RMB4.0 (US$0.6) respectively, compared to a basic income per ADS of RMB6.3 and a diluted income per ADS of RMB6.2 in the same period of 2023. 

 

Net cash generated from operating activities in the third quarter of 2024 was RMB50.4 million (US$7.2 million), compared to RMB645.4 million in the same period of 2023. 

 

Net cash used in investing activities in the third quarter of 2024 was RMB1,859.6 million (US$265.0 million), compared to RMB393.9 million in the same period of 2023.

 

Net cash used in financing activities in the third quarter of 2024 was RMB22.2 million (US$3.2 million), compared to RMB502.6 million in the same period of 2023. 

 

The changes in cash flows reflect strategic decisions aimed at driving the company's growth and long-term development. This includes a cash infusion to support broader collaborations with institutional business partners in our financial services division as our loan balance reaches a considerable size, which is reflected in the decline in net cash generated from operating activities. Changes in net cash used in investing and financing activities were driven by investments in potential acquisitions and business expansion, as well as ongoing share repurchases to enhance shareholder value.

 

As of September 30, 2024, cash and cash equivalents were RMB3,705.9 million (US$528.1 million), compared to RMB5,496.9 million as of June 30, 2024. The decline is due to our long-term investments in business expansion and potential acquisitions, which are still in the early stages and have not been finalized. As of September 30, 2024, the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million), remained unchanged from June 30, 2024. As of September 30, 2024, the balance of available-for-sale investments was RMB321.6 million (US$45.8 million), compared to RMB329.8 million as of June 30, 2024. As of September 30, 2024, the balance of trading securities was RMB63.3 million (US$9.0 million), compared to RMB83.9 million as of June 30, 2024.

 

^[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.

 

 

Delinquency rates^[3]. As of September 30, 2024, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 1.8%, 1.2% and 1.2%, respectively, compared to 1.9%, 1.4% and 1.5%, respectively, as of June 30, 2024. 

 

Dividend Policy

 

Under the Company’s semi-annual dividend policy, the Company distributed cash dividends in October 2024, representing a payout ratio of 14% of earnings for the first half of 2024.

 

Update on Share Repurchase

 

In the third quarter of 2024, the Company allocated US$3.0 million to repurchase shares in the public market. As of September 30, 2024, the Company had in aggregate purchased approximately 5.0 million ADSs in the open market for a total amount of approximately US$16.5 million (exclusive of commissions) under the 2022 share repurchase program.

 

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 2024 to be between RMB1.3 billion to RMB1.5 billion, with a healthy net profit margin.

 

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

 

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. 

 

^[3] Delinquency rates" refers to the outstanding principal balance of loans that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the total performing outstanding principal balance of loans as of a specific date. Loans originating outside mainland China are not included in the calculation. We define a performing loan as one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days.

 

 

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 RMB7.0176 to US$1.00, the effective noon buying rate on September 30, 2024, 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 7:00 a.m. U.S. Eastern Time on November 20, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on November 20, 2024).

 

Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10194517/fdfac17402

 

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://event.choruscall.com/mediaframe/webcast.html?webcastid=MvArF4tV

 

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.

 

 

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, 2023				June 30, 2024				September 30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				USD				RMB				RMB				USD
Net revenue:
Loan facilitation services			586,883				695,532				600,899				85,627				1,518,401				1,972,726				281,111
Post-origination services			984				1,290				1,421				203				12,573				4,483				639
Insurance brokerage services			264,611				91,526				85,530				12,188				865,664				301,982				43,032
Financing services			9,937				19,574				31,448				4,481				47,410				61,688				8,790
Electronic commerce services			350,635				523,641				546,366				77,856				881,218				1,572,943				224,143
Guarantee services			30,173				68,934				136,746				19,486				42,275				222,533				31,711
Others			67,551				96,039				76,678				10,927				253,782				217,353				30,972
Total net revenue			1,310,774				1,496,536				1,479,088				210,768				3,621,323				4,353,708				620,398
Operating costs and expenses:
Sales and marketing			195,714				285,101				335,647				47,829				450,873				897,971				127,960
Origination,servicing and other operating costs			245,360				246,542				205,913				29,342				791,472				685,725				97,715
Research and development			38,981				55,812				150,840				21,495				101,168				247,173				35,222
General and administrative			53,519				68,670				80,097				11,413				180,623				232,441				33,123
Allowance for contract assets, receivables and others			72,652				123,285				94,913				13,525				160,923				320,532				45,675
Provision for contingent liabilities			11,104				278,925				272,406				38,818				28,578				618,589				88,148
Total operating costs and expenses			617,330				1,058,335				1,139,816				162,422				1,713,637				3,002,431				427,843
Other income/(expenses):
Interest income, net			25,815				24,668				21,877				3,117				50,869				74,258				10,582
Fair value adjustments related to Consolidated ABFE			(8,104	)			38,706				36,423				5,190				(36,777	)			90,597				12,910
Others, net			5,177				(11	)			2,535				362				11,496				3,201				456
Total other income/(expenses)			22,888				63,363				60,835				8,669				25,588				168,056				23,948
Income before provision for income taxes			716,332				501,564				400,107				57,015				1,933,274				1,519,333				216,503
Income tax expense			161,917				92,036				44,665				6,365				424,345				268,480				38,258
Net income			554,415				409,528				355,442				50,650				1,508,929				1,250,853				178,245
Weighted average number of ordinary shares outstanding, basic			176,866,653				172,831,722				175,018,644				175,018,644				177,189,206				173,557,082				173,557,082
Basic income per share			3.1346				2.3695				2.0309				0.2894				8.5159				7.2072				1.0270
Basic income per ADS			6.2692				4.7390				4.0618				0.5788				17.0318				14.4144				2.0540
Weighted average number of ordinary shares outstanding, diluted			178,366,565				174,711,554				176,035,324				176,035,324				179,220,434				175,457,062				175,457,062
Diluted income per share			3.1083				2.3440				2.0192				0.2877				8.4194				7.1291				1.0159
Diluted income per ADS			6.2166				4.6880				4.0384				0.5754				16.8388				14.2582				2.0318
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from operating activities			645,416				368,908				50,393				7,181				1,753,781				1,051,044				149,773
Net cash  (used in)/provided by investing activities			(393,919	)			(536,883	)			(1,859,587	)			(264,989	)			360,376				(3,080,167	)			(438,920	)
Net cash used in financing activities			(502,636	)			(125,884	)			(22,227	)			(3,167	)			(901,587	)			(162,885	)			(23,211	)
Effect of foreign exchange rate changes			2,395				(896	)			(6,252	)			(891	)			2,543				(5,808	)			(828	)
Net (decrease)/increase in cash, cash equivalents and restricted cash			(248,744	)			(294,755	)			(1,837,673	)			(261,866	)			1,215,113				(2,197,816	)			(313,186	)
Cash, cash equivalents and restricted cash, beginning of period			5,824,552				5,993,216				5,698,461				812,024				4,360,695				6,058,604				863,344
Cash, cash equivalents and restricted cash, end of period			5,575,808				5,698,461				3,860,788				550,158				5,575,808				3,860,788				550,158

 

 

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

		As of
		December 31, 2023				June 30, 2024				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				USD
Cash and cash equivalents			5,791,333				5,496,932				3,705,866				528,082
Restricted cash			267,271				201,529				154,922				22,076
Trading securities			76,053				83,889				63,276				9,017
Accounts receivable			499,027				654,698				668,757				95,297
Guarantee receivable			2,890				260,759				391,547				55,795
Contract assets, net			978,051				962,482				916,543				130,606
Contract cost			32				206				279				40
Prepaid expenses and other assets			423,621				1,662,654				2,291,397				326,521
Loans at fair value			677,835				473,311				414,803				59,109
Financing receivables			116,164				30,501				28,672				4,086
Amounts due from related parties			820,181				1,509,651				3,338,868				475,785
Held-to-maturity investments			10,420				5,087				5,087				725
Available-for-sale investments			438,084				329,829				321,550				45,820
Equity investments			-				2,500				7,105				1,012
Property, equipment and software, net			79,158				77,970				80,224				11,432
Deferred tax assets			73,414				44,309				54,595				7,780
Right-of-use assets			23,382				19,462				14,454				2,060
Total assets			10,276,916				11,815,769				12,457,945				1,775,243
Accounts payable			30,902				43,710				42,712				6,085
Amounts due to related parties			14,414				2,485				96,498				13,751
Guarantee liabilities-stand ready			8,802				278,656				449,759				64,090
Guarantee liabilities-contingent			28,351				336,190				512,004				72,960
Deferred revenue			54,044				38,843				18,348				2,615
Payable to investors at fair value			445,762				350,000				350,000				49,875
Accrued expenses and other liabilities			1,463,369				1,727,182				1,672,111				238,274
Deferred tax liabilities			122,075				55,520				16,434				2,342
Lease liabilities			23,648				19,280				15,226				2,170
Total liabilities			2,191,367				2,851,866				3,173,092				452,162
Ordinary shares			130				130				132				19
Additional paid-in capital			5,171,232				5,175,653				5,198,271				740,748
Treasury stock			(94,851	)			(139,380	)			(160,534	)			(22,876	)
Accumulated other comprehensive income			23,669				47,798				21,226				3,024
Retained earnings			2,985,369				3,879,702				4,225,758				602,166
Total equity			8,085,549				8,963,903				9,284,853				1,323,081
Total liabilities and equity			10,276,916				11,815,769				12,457,945				1,775,243

 

 

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 Nine Months Ended
		September 30, 2023				June 30, 2024				September 30, 2024				September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2024
		RMB				RMB				RMB				USD				RMB				RMB				USD
Operating Highlights
Amount of loans facilitated			9,814,359				12,936,017				13,392,676				1,908,441				24,390,773				38,239,060				5,449,022
Number of borrowers			1,204,012				1,491,756				1,498,020				1,498,020				2,128,924				3,365,960				3,365,960
Remaining principal of performing loans			15,090,800				21,827,634				22,768,555				3,244,493				15,090,800				22,768,555				3,244,493
Cumulative number of insurance clients			1,256,762				1,410,158				1,470,738				1,470,738				1,256,762				1,470,738				1,470,738
Number of insurance clients			123,693				88,766				82,291				82,291				293,254				226,191				226,191
Gross written premiums			1,428,484				1,060,885				1,351,311				192,560				3,684,325				3,324,627				473,756
First year premium			914,839				577,387				511,377				72,871				2,644,082				1,602,905				228,412
Renewal premium			513,645				483,498				839,934				119,689				1,040,243				1,721,722				245,344
Gross merchandise volume			563,224				554,574				507,585				72,330				1,267,611				1,687,280				240,435
Segment Information
Financial services business:
Revenue			667,966				851,031				836,193				119,157				1,733,813				2,425,341				345,608
Sales and marketing expenses			146,369				253,103				307,459				43,812				311,751				812,484				115,778
Origination, servicing and other operating costs			59,300				113,234				119,706				17,058				145,870				318,727				45,418
Allowance for contract assets, receivables and others			77,135				124,765				93,248				13,288				163,111				319,140				45,477
Provision for contingent liabilities			11,104				278,925				272,406				38,818				28,578				618,589				88,148
Insurance brokerage business:
Revenue			264,611				91,526				85,530				12,188				865,664				301,982				43,032
Sales and marketing expenses			3,175				4,263				3,545				505				9,309				11,373				1,621
Origination, servicing and other operating costs			176,182				122,358				78,466				11,181				599,650				337,707				48,123
Allowance for contract assets, receivables and others			(3,981	)			(1,502	)			(414	)			(59	)			(355	)			(904	)			(129	)
Consumption & lifestyle business and others:
Revenue			378,197				553,979				557,365				79,423				1,021,846				1,626,385				231,758
Sales and marketing expenses			46,170				27,735				24,643				3,512				129,813				74,114				10,561
Origination, servicing and other operating costs			9,878				10,950				7,741				1,103				45,952				29,291				4,174
Allowance for contract assets, receivables and others			(313	)			(11	)			1,666				237				(1,545	)			1,664				237
Reconciliation of Adjusted EBITDA
Net income			554,415				409,528				355,442				50,650				1,508,929				1,250,853				178,245
Interest income, net			(25,815	)			(24,668	)			(21,877	)			(3,117	)			(50,869	)			(74,258	)			(10,582	)
Income tax expense			161,917				92,036				44,665				6,365				424,345				268,480				38,258
Depreciation and amortization			1,664				2,026				2,401				342				5,310				6,319				901
Share-based compensation			513				2,136				13,235				1,886				5,923				16,578				2,362
Adjusted EBITDA			692,694				481,058				393,866				56,126				1,893,638				1,467,972				209,184
Adjusted EBITDA margin			52.8	%			32.1	%			26.6	%			26.6	%			52.3	%			33.7	%			33.7	%

 

 

	Delinquency Rates
		1-30 days				31-60 days				61-90 days
December 31, 2019			2.1	%			1.2	%			0.9	%
December 31, 2020			1.3	%			0.7	%			0.6	%
December 31, 2021			2.0	%			1.5	%			1.2	%
December 31, 2022			1.7	%			1.2	%			1.1	%
December 31, 2023			2.0	%			1.4	%			1.2	%
March 31, 2024			2.1	%			1.6	%			1.4	%
June 30, 2024			1.9	%			1.4	%			1.5	%
September 30, 2024			1.8	%			1.2	%			1.2	%

 

 

		30+ Days Delinquency Rates By Vintage*
Loan Issued Period		Month on Book
		2				4				6				8				10				12				14				16				18				20				22				24
2019Q1		0.0		%		0.5		%		1.6		%		2.3		%		3.3		%		4.4		%		5.9		%		6.1		%		6.4		%		6.9		%		6.9		%		6.9		%
2019Q2			0.3	%			1.4	%			2.8	%			5.0	%			7.8	%			8.9	%			9.5	%			10.0	%			10.3	%			10.7	%			10.9	%			11.2	%
2019Q3			0.3	%			2.0	%			5.1	%			7.6	%			9.1	%			10.4	%			11.3	%			12.4	%			13.3	%			14.1	%			14.7	%			15.2	%
2019Q4			0.7	%			3.0	%			4.4	%			5.7	%			6.6	%			7.3	%			8.1	%			8.5	%			9.0	%			9.4	%			9.7	%			10.3	%
2020Q1			0.8	%			2.0	%			3.4	%			4.5	%			5.4	%			5.9	%			6.5	%			6.8	%			7.1	%			7.5	%			8.1	%			8.5	%
2020Q2			0.6	%			2.0	%			3.3	%			4.5	%			5.3	%			6.0	%			6.4	%			6.9	%			7.4	%			8.0	%			8.6	%			8.8	%
2020Q3			1.3	%			2.8	%			4.3	%			5.4	%			6.3	%			6.9	%			7.5	%			8.2	%			8.9	%			9.3	%			9.5	%			9.5	%
2020Q4			0.3	%			1.4	%			2.4	%			3.4	%			4.3	%			5.4	%			6.4	%			7.3	%			7.7	%			8.0	%			8.2	%			8.3	%
2021Q1			0.5	%			1.8	%			3.0	%			4.2	%			5.3	%			6.3	%			7.1	%			7.3	%			7.5	%			7.7	%			7.8	%			7.9	%
2021Q2			0.5	%			2.1	%			3.8	%			5.5	%			6.8	%			7.5	%			7.7	%			7.9	%			8.1	%			8.3	%			8.2	%			8.2	%
2021Q3			0.6	%			2.5	%			4.2	%			5.4	%			6.1	%			6.5	%			6.7	%			6.9	%			6.9	%			6.9	%			6.9	%			6.8	%
2021Q4			0.8	%			2.7	%			4.1	%			4.9	%			5.4	%			5.8	%			5.8	%			5.8	%			5.7	%			5.6	%			5.6	%			5.5	%
2022Q1			0.7	%			2.1	%			3.2	%			4.0	%			4.6	%			4.8	%			4.7	%			4.6	%			4.6	%			4.5	%			4.5	%			4.4	%
2022Q2			0.5	%			1.8	%			2.9	%			3.8	%			4.3	%			4.5	%			4.4	%			4.3	%			4.3	%			4.2	%			4.2	%			4.1	%
2022Q3			0.6	%			2.2	%			3.5	%			4.3	%			4.8	%			5.0	%			5.0	%			4.9	%			4.9	%			4.8	%			4.7	%			4.7	%
2022Q4			0.7	%			2.5	%			3.9	%			4.9	%			5.6	%			5.9	%			5.8	%			5.8	%			5.7	%			5.6	%			5.5	%
2023Q1			0.6	%			2.4	%			4.0	%			5.2	%			5.9	%			6.2	%			6.1	%			6.0	%			5.9	%			5.5	%
2023Q2			0.7	%			3.0	%			4.9	%			6.3	%			7.0	%			7.3	%			7.2	%			6.9	%
2023Q3			0.9	%			3.7	%			5.8	%			7.1	%			7.9	%			8.1	%			7.8	%
2023Q4			0.8	%			3.6	%			5.8	%			7.0	%			7.6	%
2024Q1			0.7	%			3.2	%			5.0	%			6.4	%
2024Q2			0.6	%			2.7	%
2024Q3			0.6	%

 

*The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are more than 30 days past due, as a percentage of the total loans facilitated during that same period. Loans originating outside mainland China are excluded from the calculation.

 

 

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