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 September 2022
Commission
File Number: 001-37657
YIREN DIGITAL LTD.
10/F, Building 9, 91 Jianguo Road
Chaoyang District, Beijing 100022
The People’s Republic of China
(Address of principal executive
offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Yiren Digital Reports Fourth Quarter and Fiscal
Year 2021 Financial Results
Yiren Digital
Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading digital personal financial management platform in China, announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2021.
Fourth Quarter 2021 and Fiscal Year 2021 Operational Highlights
Wealth Management
| · | Cumulative number of investors served reached 2,702,122 as of December 31,
2021, representing an increase of 3.4% from 2,612,279 as of September 30, 2021 and compared to 2,326,169 as of December 31, 2020. |
| · | Number of active investors[1] was
424,366 as of December 31, 2021, representing a decrease of 0.8% from 427,873 as of September 30, 2021 and compared to 163,593 as of December
31, 2020. The quarter-over-quarter decline was primarily due to a decline in the insurance segment as a result of optimization in insurance
product mix, which was offset by the rapid growth in customer base on Yiren Wealth platform. |
| · | Total client assets[2] was RMB19,261.0 million (US$3,022.5
million) as of December 31, 2021, representing an increase of 10.6% from RMB17,415.3 million as of September 30, 2021 and compared to
RMB8,550.7 million as of December 31, 2020. |
| · | Sales volume of investment products amounted to RMB5,391.8 million (US$846.1
million) in the fourth quarter of 2021, representing an increase of 7.2% from RMB5,030.2 million in the third quarter of 2021 and compared
to RMB6,836.9 million in the same period of 2020. For the fiscal year of 2021, sales volume of investment products reached RMB21,588.6
million (US$3,387.7 million), compared to RMB15,779.7 million in 2020. |
Consumer Credit
| · | Total loans facilitated under loan facilitation
model in the fourth quarter of 2021 reached RMB6.2 billion (US$1.0 billion), representing a decrease of 9.8% from RMB6.8 billion
in the third quarter of 2021 and compared to RMB4.2 billion in the fourth quarter of 2020. |
| · | Cumulative number of borrowers served reached 6,127,068
as of December 31, 2021, representing an increase of 4.9% from 5,840,424 as of September 30, 2021 and compared to 5,249,936 as of December
31, 2020. |
| · | Number of borrowers served in the fourth quarter
of 2021 was 618,131, representing an increase of 12.7% from 548,495 in the third quarter of 2021 and compared to 189,117 in the fourth
quarter of 2020. Total number of borrowers served in 2021 was 1,297,046. |
| · | Outstanding balance of performing loans facilitated
under loan facilitation model reached RMB14,102.3 million (US$2,213.0 million) as of December 31, 2021, representing an increase of 2.2%
from RMB13,793.9 million as of September 30, 2021 and compared to RMB8,863.5 million as of December 31,2020. |
Consumption-Driven Services
| · | In the second half of 2021, the Company began scaling
its e-commerce platform and also launched a "Life Plus Finance" initiative ("Yiren Select"), integrating high quality
financial services with online and offline consumption scenarios. Total gross merchandise volume generated through both channels reached
RMB61.6 million (US$9.7 million) in the fourth quarter of 2021. |
| [1] Active investors refer to those who have made at least one investment through our wealth management platform or have had client assets with us above zero in the past twelve months. |
| [2] Client assets refer to the outstanding balance of client assets generated through our platforms, where an asset is counted towards the outstanding balance for so long as it continues to be held by the investor who acquired it through our platform. |
"Looking back at the year
of 2021, we are pleased to announce another concrete milestone during the journey of our business transitions towards China's leading
digital personal financial management platform, with our revenue structure further diversifying and our business volume and profitability
resuming to a healthy growth rate post the restructuring, meeting our previous guidance for both wealth management and credit-tech business
lines," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.
"On wealth management, the
growth momentum remains strong with contribution to our total net revenue reaching more than 35% in the fourth quarter of 2021, a historical
high. Specially, our total client asset reached RMB19.3 billion as of December 31, 2021, representing an increase of 11% compared to the
end of prior quarter. Notably, total investor base on Yiren Wealth platform saw an accelerated growth due to our Yiren Select initiative.
In the fourth quarter of 2021, the number of new investors on Yiren Wealth increased by 22% on a quarter-over-quarter basis and the number
of investors who held at least two different asset classes grew by 15% compared with the third quarter of 2021. Moreover, our insurance
brokerage business has been growing at a higher-than-expected rate with total premiums reaching RMB888 million in the fourth quarter of
2021, representing a 21% quarterly growth, which is a sharp contrast to the overall industry downside cycle."
"On credit-tech we have
seen a visible evolvement in our overall loan portfolio as we continue to optimize our product mix and shift towards higher credit quality
customer segments, moving in full swing towards guided APR with stable unit economics. Currently, 99% of our new loans facilitated are
small revolving loans and SME loans, compared to 71% in the year of 2021, leading to a shorter-tenor portfolio with lower operating and
credit costs, which is more flexible to adjust to external environment. Moreover, our e-commerce platform launched in August 2021, has
started to contribute revenue with rapid growth, effectively driving up our user activities and establishing a more diversified finance
consumption ecosystem."
"The year of 2021 ended
with strong earnings. Excluding one-time business disposal expense incurred in the fourth quarter of 2020, total net income for the year
of 2021 was more than RMB1.0 billion, compared to a loss of RMB36.9 million in 2020, beating our internal target with fast business recovery
and optimized operational efficiency," said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "On the balance sheet side,
our cash position grows stronger with RMB3.0 billion cash and short-term investment as of December 31, 2021, an increase of 17% compared
with the end of the last quarter, providing sufficient fuel for any further business expansion that we may have in the future."
Fourth Quarter 2021 Financial
Results
Total net revenue in
the fourth quarter of 2021 was RMB1,020.9 million (US$160.2 million), compared to RMB1,160.9 million in the same period of 2020. Specifically,
in the fourth quarter of 2021, revenue from wealth management business was RMB372.3 million (US$58.4 million), and revenue from credit
business was RMB615.5 million (US$96.6 million). Excluding the impact from the disposed business line, total net revenue in the fourth
quarter of 2021 increased by 15.9% compared with the same period in 2020.
Sales and marketing expenses in
the fourth quarter of 2021 were RMB304.1 million (US$47.8 million), compared to RMB295.1 million in the same period of 2020. The increase
was primarily due to the continued expansion of our insurance brokerage business, which is offset by the optimization of cost structure
in our offline business.
Origination, servicing and
other operating costs in the fourth quarter of 2021 were RMB216.8 million (US$34.0 million), compared to RMB596.9 million in
the same period of 2020. The decrease was primarily due to the improved cost efficiency after the business restructuring completed on
December 31, 2020.
General and administrative
expenses in the fourth quarter of 2021 were RMB119.4 million (US$18.8 million), compared to RMB149.3 million in the same period
of 2020. The decrease was mainly due to the optimization of the company's offline business.
Allowance for contract assets,
receivables and others in the fourth quarter of 2021 was RMB51.9 million (US$8.1 million), compared to RMB34.5 million in the
same period of 2020. The increase was primarily driven by the growth of loan volumes facilitated.
Income tax expense in
the fourth quarter of 2021 was RMB5.4 million (US$0.8 million).
Net income in the
fourth quarter of 2021 was RMB330.8 million (US$51.9 million), as compared to net loss of RMB559.6 million in the same period of 2020.
The change was primarily due to the one-time expense of business disposal during the restructuring completed on December 31, 2020.
Adjusted EBITDA[3] (non-GAAP) in
the fourth quarter of 2021 was RMB353.4 million (US$55.5 million), compared to RMB48.9 million in the same period of 2020.
Basic and diluted income per
ADS in the fourth quarter of 2021 was RMB3.9 (US$0.6), compared to a basic loss per ADS of RMB6.7 and a diluted loss per ADS
of RMB6.7 in the same period of 2020.
Net cash generated from operating
activities in the fourth quarter of 2021 was RMB189.4 million (US$29.7 million), compared to net cash used in operating activities
of RMB219.1 million in the same period of 2020.
Net cash used in investing
activities in the fourth quarter of 2021 was RMB381.9 million (US$59.9 million), compared to net cash used in investing activities
of RMB981.1 million in the same period of 2020.
As of December 31, 2021, cash
and cash equivalents was RMB2,864.5 million (US$449.5 million), compared to RMB2,328.4 million as of September 30, 2021. As of December
31, 2021, the balance of held-to-maturity investments was RMB2.2 million (US$0.3 million), compared to RMB2.2 million as of September
30, 2021. As of December 31, 2021, the balance of available-for-sale investments was RMB177.4 million (US$27.8 million), compared to RMB277.9
million as of September 30, 2021.
Delinquency rates. As
of December 31, 2021, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.9%, 1.5% and
1.2% respectively, compared to 0.5%, 0.7% and 0.6% respectively as of December 31, 2020.
Cumulative M3+ net charge-off
rates. As December 31, 2021, the cumulative M3+ net charge-off rate for loans originated in 2018, 2019 and 2020 was 9.8%, 11.4%
and 5.8% respectively, as compared to 9.9%, 11.0% and 4.8% respectively as of September 30, 2021.
| [3] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release. |
Fiscal Year 2021 Financial
Results
Total net revenue in
2021 was RMB4,477.9 million (US$702.7 million), compared to RMB3,962.0 million in 2020. Specifically, revenue from wealth management business
in 2021 was RMB1,260.5 million (US$197.8 million), and revenue from credit business in 2021 was RMB3,184.3 million (US$499.7 million).
Excluding the impact from the disposed business line, total net revenue in the year of 2021 increased by 92.8% compared with the year
of 2020. The increase was primarily due to the business recovery from the COVID-19 pandemic and continued growth in the sales volume of
current investment products and loans facilitated under loan facilitation model post the restructuring.
Sales and marketing expenses in
2021 was RMB1,553.3 million (US$243.8 million), compared to RMB1,905.1 million in 2020. The decrease was primarily due to the optimization
of the Company's offline business.
Origination, servicing and
other operating costs in 2021 was RMB760.9 million (US$119.4 million), compared to RMB1,104.7 million in 2020. The decrease was
mainly due to the improved cost efficiency after the business restructuring completed on December 31, 2020.
General and administrative
expenses in 2021 was RMB506.2 million (US$79.4 million), compared to RMB630.6 million in 2020. The decrease was primarily due
to the optimization of our offline business and the overall improvement of cost efficiency.
Allowance for contract assets,
receivables and others in 2021 was RMB370.2 million (US$58.1 million), which remained stable compared to RMB371.6 million in
2020.
Income tax expense in
2021 was RMB170.2 million (US$26.7 million).
Net income in 2021
was RMB1,033.0 million (US$162.1 million), compared to a net loss of RMB692.7 million in 2020. The income was driven by the resumption
of business growth as well as improving operational efficiencies post the pandemic outbreak.
Adjusted EBITDA (non-GAAP) in
2021 was RMB1,338.9 million (US$210.1 million), compared to a loss of RMB73.2 million in 2020. Adjusted EBITDA margin1 (non-GAAP)
in 2021 was 29.9%, compared to a loss of 1.8% in 2020.
Basic and diluted income per
ADS in 2021 were RMB12.2 (US$1.9) and RMB12.1 (US$1.9) respectively, compared to a loss per ADS of RMB7.7 and a diluted loss
per ADS of RMB7.7 in 2020.
Net cash generated from operating
activities in 2021 was RMB158.2 million (US$24.8 million), compared to net cash generated from operating activities of RMB282.0
million in 2020.
Non-GAAP Financial Measures
In evaluating the business, the
Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures
to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results,
enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used
by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical
tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce
their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures
to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights
and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.
Currency Conversion
This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB6.3726 to US$1.00, the effective noon buying rate on December 31, 2021, as set forth in the H.10
statistical release of the Federal Reserve Board.
Safe Harbor Statement
This press release contains forward-looking
statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements
can be identified by terminology such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates," "target," "confident" and similar statements. Such
statements are based upon management's current expectations and current market and operating conditions and relate to events that involve
known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's
control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially
from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren
Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform
enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in
China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain listing of its ADSs
on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further
information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities
and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does
not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except
as required under applicable law.
About Yiren Digital
Yiren Digital Ltd. is a leading
digital personal financial management platform in China. The Company provides customized, asset allocation based wealth management
solutions to China's mass affluent population as well as utilizes online and offline channels to provide retail credit facilitation services
to individual borrowers and small business owners.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except for share, per share and per ADS data, and percentages)
| | |
For
the Three Months Ended | | |
For
the Year Ended | |
| | |
December
31,
2020 | | |
September
30,
2021 | | |
December
31,
2021 | | |
December
31,
2021 | | |
December
31,
2020 | | |
December
31,
2021 | | |
December
31,
2021 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| Net revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Loan facilitation services | |
| 393,682 | | |
| 601,283 | | |
| 410,988 | | |
| 64,493 | | |
| 1,329,720 | | |
| 2,105,776 | | |
| 330,442 | |
| Post-origination services | |
| 201,873 | | |
| 39,024 | | |
| 49,861 | | |
| 7,824 | | |
| 670,440 | | |
| 174,255 | | |
| 27,344 | |
| Account management services | |
| 50,566 | | |
| - | | |
| - | | |
| - | | |
| 921,779 | | |
| - | | |
| - | |
| Insurance brokerage services | |
| 308,790 | | |
| 199,406 | | |
| 244,780 | | |
| 38,411 | | |
| 430,830 | | |
| 755,691 | | |
| 118,584 | |
| Financing services | |
| 54,348 | | |
| 144,614 | | |
| 140,027 | | |
| 21,973 | | |
| 59,658 | | |
| 524,840 | | |
| 82,359 | |
| Electronic commerce services | |
| - | | |
| - | | |
| 33,114 | | |
| 5,196 | | |
| - | | |
| 33,114 | | |
| 5,196 | |
| Others | |
| 151,592 | | |
| 247,664 | | |
| 142,170 | | |
| 22,311 | | |
| 549,535 | | |
| 884,253 | | |
| 138,760 | |
| Total net revenue | |
| 1,160,851 | | |
| 1,231,991 | | |
| 1,020,940 | | |
| 160,208 | | |
| 3,961,962 | | |
| 4,477,929 | | |
| 702,685 | |
| Operating costs and expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Sales and marketing | |
| 295,133 | | |
| 407,172 | | |
| 304,114 | | |
| 47,722 | | |
| 1,905,095 | | |
| 1,553,344 | | |
| 243,754 | |
| Origination,servicing and other operating costs | |
| 596,926 | | |
| 186,915 | | |
| 216,751 | | |
| 34,013 | | |
| 1,104,682 | | |
| 760,858 | | |
| 119,395 | |
| General and administrative | |
| 149,276 | | |
| 139,321 | | |
| 119,364 | | |
| 18,731 | | |
| 630,555 | | |
| 506,240 | | |
| 79,440 | |
| Allowance for contract assets, receivables and others | |
| 34,520 | | |
| 83,578 | | |
| 51,911 | | |
| 8,146 | | |
| 371,629 | | |
| 370,154 | | |
| 58,085 | |
| Loss of disposal | |
| 655,839 | | |
| - | | |
| - | | |
| - | | |
| 655,839 | | |
| - | | |
| - | |
| Total operating costs and expenses | |
| 1,731,694 | | |
| 816,986 | | |
| 692,140 | | |
| 108,612 | | |
| 4,667,800 | | |
| 3,190,596 | | |
| 500,674 | |
| Other income/(expenses): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Interest income/(expense), net | |
| 8,554 | | |
| (21,565 | ) | |
| (18,056 | ) | |
| (2,833 | ) | |
| 61,623 | | |
| (73,383 | ) | |
| (11,515 | ) |
| Fair value adjustments related to Consolidated ABFE | |
| (54,106 | ) | |
| (526 | ) | |
| 11,720 | | |
| 1,839 | | |
| (143,988 | ) | |
| (37,442 | ) | |
| (5,875 | ) |
| Others, net | |
| 3,444 | | |
| 3,934 | | |
| 2,935 | | |
| 460 | | |
| 14,844 | | |
| 26,665 | | |
| 4,183 | |
| Total other expenses | |
| (42,108 | ) | |
| (18,157 | ) | |
| (3,401 | ) | |
| (534 | ) | |
| (67,521 | ) | |
| (84,160 | ) | |
| (13,207 | ) |
| (Loss)/income before provision for
income taxes | |
| (612,951 | ) | |
| 396,848 | | |
| 325,399 | | |
| 51,062 | | |
| (773,359 | ) | |
| 1,203,173 | | |
| 188,804 | |
| Income tax (benefit)/expense | |
| (53,342 | ) | |
| 75,923 | | |
| (5,366 | ) | |
| (842 | ) | |
| (80,611 | ) | |
| 170,189 | | |
| 26,706 | |
| Net (loss)/income | |
| (559,609 | ) | |
| 320,925 | | |
| 330,765 | | |
| 51,904 | | |
| (692,748 | ) | |
| 1,032,984 | | |
| 162,098 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding,
basic | |
| 167,964,040 | | |
| 170,193,542 | | |
| 169,967,125 | | |
| 169,967,125 | | |
| 180,301,898 | | |
| 169,029,826 | | |
| 169,029,826 | |
| Basic (loss)/income per share | |
| (3.3317 | ) | |
| 1.8856 | | |
| 1.9461 | | |
| 0.3054 | | |
| (3.8422 | ) | |
| 6.1113 | | |
| 0.9590 | |
| Basic (loss)/income per ADS | |
| (6.6634 | ) | |
| 3.7712 | | |
| 3.8922 | | |
| 0.6108 | | |
| (7.6844 | ) | |
| 12.2226 | | |
| 1.9180 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding,
diluted | |
| 167,964,040 | | |
| 171,571,392 | | |
| 171,171,951 | | |
| 171,171,951 | | |
| 180,301,898 | | |
| 170,590,203 | | |
| 170,590,203 | |
| Diluted (loss)/income per share | |
| (3.3317 | ) | |
| 1.8705 | | |
| 1.9324 | | |
| 0.3032 | | |
| (3.8422 | ) | |
| 6.0554 | | |
| 0.9502 | |
| Diluted (loss)/income per ADS | |
| (6.6634 | ) | |
| 3.7410 | | |
| 3.8648 | | |
| 0.6064 | | |
| (7.6844 | ) | |
| 12.1108 | | |
| 1.9004 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Unaudited Condensed Consolidated Cash
Flow Data | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net cash (used in)/generated from operating activities | |
| (219,069 | ) | |
| 323,819 | | |
| 189,377 | | |
| 29,717 | | |
| 282,028 | | |
| 158,192 | | |
| 24,824 | |
| Net cash (used in)/provided by investing activities | |
| (981,096 | ) | |
| (233,782 | ) | |
| 381,870 | | |
| 59,924 | | |
| (1,796,663 | ) | |
| (346,507 | ) | |
| (54,374 | ) |
| Net cash provided by/(used in) financing activities | |
| 899,487 | | |
| 49,770 | | |
| (45,831 | ) | |
| (7,192 | ) | |
| 955,448 | | |
| 427,446 | | |
| 67,076 | |
| Effect of foreign exchange rate changes | |
| (538 | ) | |
| (257 | ) | |
| (283 | ) | |
| (44 | ) | |
| (2,807 | ) | |
| (936 | ) | |
| (147 | ) |
| Net (decrease)/increase in cash, cash equivalents and
restricted cash | |
| (301,216 | ) | |
| 139,550 | | |
| 525,133 | | |
| 82,405 | | |
| (561,994 | ) | |
| 238,195 | | |
| 37,379 | |
| Cash, cash equivalents and restricted
cash, beginning of period | |
| 3,008,364 | | |
| 2,280,660 | | |
| 2,420,210 | | |
| 379,785 | | |
| 3,269,142 | | |
| 2,707,148 | | |
| 424,811 | |
| Cash, cash equivalents and restricted
cash, end of period | |
| 2,707,148 | | |
| 2,420,210 | | |
| 2,945,343 | | |
| 462,190 | | |
| 2,707,148 | | |
| 2,945,343 | | |
| 462,190 | |
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
| | |
As of | |
| | |
December 31, | | |
September 30, | | |
December 31, | | |
December 31, | |
| | |
2020 | | |
2021 | | |
2021 | | |
2021 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | |
| Cash and cash equivalents | |
| 2,469,909 | | |
| 2,328,380 | | |
| 2,864,543 | | |
| 449,511 | |
| Restricted cash | |
| 237,239 | | |
| 91,830 | | |
| 80,800 | | |
| 12,679 | |
| Accounts receivable | |
| 122,742 | | |
| 258,729 | | |
| 305,018 | | |
| 47,864 | |
| Contract assets, net | |
| 750,174 | | |
| 1,191,497 | | |
| 1,105,905 | | |
| 173,541 | |
| Contract cost | |
| 65,529 | | |
| 34,707 | | |
| 9,959 | | |
| 1,563 | |
| Prepaid expenses and other assets | |
| 278,591 | | |
| 358,052 | | |
| 352,015 | | |
| 55,239 | |
| Loans at fair value | |
| 192,156 | | |
| 82,474 | | |
| 73,734 | | |
| 11,571 | |
| Financing receivables | |
| 1,253,494 | | |
| 1,969,456 | | |
| 1,697,962 | | |
| 266,449 | |
| Amounts due from related parties | |
| 884,006 | | |
| 768,646 | | |
| 879,256 | | |
| 137,974 | |
| Held-to-maturity investments | |
| 3,286 | | |
| 2,200 | | |
| 2,200 | | |
| 341 | |
| Available-for-sale investments | |
| 175,515 | | |
| 277,934 | | |
| 177,360 | | |
| 27,832 | |
| Property, equipment and software, net | |
| 147,193 | | |
| 115,326 | | |
| 102,548 | | |
| 16,092 | |
| Deferred tax assets | |
| 16,745 | | |
| 6,285 | | |
| 7,388 | | |
| 1,159 | |
| Right-of-use assets | |
| 105,674 | | |
| 70,897 | | |
| 80,752 | | |
| 12,672 | |
| Total assets | |
| 6,702,253 | | |
| 7,556,413 | | |
| 7,739,440 | | |
| 1,214,487 | |
| Accounts payable | |
| 9,903 | | |
| 36,799 | | |
| 19,065 | | |
| 2,992 | |
| Amounts due to related parties | |
| 970,309 | | |
| 474,925 | | |
| 434,127 | | |
| 68,124 | |
| Deferred revenue | |
| 50,899 | | |
| 11,862 | | |
| 12,379 | | |
| 1,943 | |
| Payable to investors at fair value | |
| 52,623 | | |
| 50,814 | | |
| 50,686 | | |
| 7,954 | |
| Accrued expenses and other liabilities | |
| 1,208,915 | | |
| 1,245,263 | | |
| 1,182,783 | | |
| 185,604 | |
| Secured borrowings | |
| 500,500 | | |
| 1,038,600 | | |
| 1,028,600 | | |
| 161,410 | |
| Refund liability | |
| 10,845 | | |
| 5,927 | | |
| 5,732 | | |
| 899 | |
| Deferred tax liabilities | |
| 38,741 | | |
| 147,575 | | |
| 112,535 | | |
| 17,659 | |
| Lease liabilities | |
| 81,854 | | |
| 53,194 | | |
| 72,101 | | |
| 11,314 | |
| Total liabilities | |
| 2,924,589 | | |
| 3,064,959 | | |
| 2,918,008 | | |
| 457,899 | |
| Ordinary shares | |
| 121 | | |
| 123 | | |
| 123 | | |
| 19 | |
| Additional paid-in capital | |
| 5,058,176 | | |
| 5,096,994 | | |
| 5,100,486 | | |
| 800,378 | |
| Treasury stock | |
| (40,147 | ) | |
| (42,502 | ) | |
| (42,897 | ) | |
| (6,731 | ) |
| Accumulated other comprehensive income | |
| 17,108 | | |
| 14,442 | | |
| 11,553 | | |
| 1,812 | |
| Accumulated deficit | |
| (1,257,594 | ) | |
| (577,603 | ) | |
| (247,833 | ) | |
| (38,890 | ) |
| Total equity | |
| 3,777,664 | | |
| 4,491,454 | | |
| 4,821,432 | | |
| 756,588 | |
| Total liabilities and equity | |
| 6,702,253 | | |
| 7,556,413 | | |
| 7,739,440 | | |
| 1,214,487 | |
Operating Highlights
and Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except
for number of borrowers, number of investors and percentages)
| | |
For
the Three Months Ended | | |
For
the Year Ended | |
| | |
December 31, | | |
September 30, | | |
December 31, | | |
December 31, | | |
December 31, | | |
December 31, | | |
December 31, | |
| | |
2020 | | |
2021 | | |
2021 | | |
2021 | | |
2020 | | |
2021 | | |
2021 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| Operating Highlights | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Amount of investment
in current investment products | |
| 6,836,906 | | |
| 5,030,228 | | |
| 5,391,760 | | |
| 846,085 | | |
| 15,779,685 | | |
| 21,588,645 | | |
| 3,387,729 | |
| Number of investors in current
investment products | |
| 99,112 | | |
| 127,378 | | |
| 144,987 | | |
| 144,987 | | |
| 153,700 | | |
| 409,281 | | |
| 409,281 | |
| Amount of loans facilitated under
loan facilitation model | |
| 4,202,538 | | |
| 6,841,921 | | |
| 6,170,158 | | |
| 968,232 | | |
| 9,614,819 | | |
| 23,195,224 | | |
| 3,639,837 | |
| Number of borrowers | |
| 189,117 | | |
| 548,495 | | |
| 618,131 | | |
| 618,131 | | |
| 525,320 | | |
| 1,297,046 | | |
| 1,297,046 | |
| Remaining principal of performing
loans facilitated under loan facilitation model | |
| 8,863,461 | | |
| 13,793,925 | | |
| 14,102,279 | | |
| 2,212,955 | | |
| 8,863,461 | | |
| 14,102,279 | | |
| 2,212,955 | |
| Electronic commerce of gross
merchandise volume | |
| - | | |
| - | | |
| 61,619 | | |
| 9,669 | | |
| - | | |
| 61,619 | | |
| 9,669 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment Information | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Wealth management: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| 413,057 | | |
| 337,627 | | |
| 372,304 | | |
| 58,423 | | |
| 1,432,364 | | |
| 1,260,513 | | |
| 197,803 | |
| Sales and marketing expenses | |
| 39,012 | | |
| 55,463 | | |
| 75,842 | | |
| 11,901 | | |
| 195,671 | | |
| 199,336 | | |
| 31,281 | |
| Origination,servicing and other
operating costs | |
| 266,492 | | |
| 159,348 | | |
| 156,243 | | |
| 24,518 | | |
| 442,507 | | |
| 598,606 | | |
| 93,934 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Consumer credit: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| 747,794 | | |
| 894,364 | | |
| 615,522 | | |
| 96,589 | | |
| 2,529,598 | | |
| 3,184,302 | | |
| 499,686 | |
| Sales and marketing expenses | |
| 256,121 | | |
| 351,709 | | |
| 227,508 | | |
| 35,702 | | |
| 1,709,424 | | |
| 1,353,244 | | |
| 212,353 | |
| Origination,servicing and other
operating costs | |
| 330,434 | | |
| 27,567 | | |
| 53,396 | | |
| 8,379 | | |
| 662,175 | | |
| 155,140 | | |
| 24,345 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Others: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| - | | |
| - | | |
| 33,114 | | |
| 5,196 | | |
| - | | |
| 33,114 | | |
| 5,196 | |
| Sales and marketing expenses | |
| - | | |
| - | | |
| 764 | | |
| 119 | | |
| - | | |
| 764 | | |
| 120 | |
| Origination,servicing
and other operating costs | |
| - | | |
| - | | |
| 7,112 | | |
| 1,116 | | |
| - | | |
| 7,112 | | |
| 1,116 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Reconciliation
of Adjusted EBITDA | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net (loss)/income | |
| (559,609 | ) | |
| 320,925 | | |
| 330,765 | | |
| 51,904 | | |
| (692,748 | ) | |
| 1,032,984 | | |
| 162,098 | |
| Interest (income)/expense, net | |
| (8,554 | ) | |
| 21,565 | | |
| 18,056 | | |
| 2,833 | | |
| (61,623 | ) | |
| 73,383 | | |
| 11,515 | |
| Loss of disposal | |
| 655,839 | | |
| - | | |
| - | | |
| - | | |
| 655,839 | | |
| - | | |
| - | |
| Income (benefit)/tax expense | |
| (53,342 | ) | |
| 75,923 | | |
| (5,366 | ) | |
| (842 | ) | |
| (80,611 | ) | |
| 170,189 | | |
| 26,706 | |
| Depreciation and amortization | |
| 16,829 | | |
| 8,449 | | |
| 7,466 | | |
| 1,172 | | |
| 91,772 | | |
| 43,236 | | |
| 6,785 | |
| Share-based
compensation | |
| (2,274 | ) | |
| 11,742 | | |
| 2,497 | | |
| 392 | | |
| 14,173 | | |
| 19,089 | | |
| 2,995 | |
| Adjusted
EBITDA | |
| 48,889 | | |
| 438,604 | | |
| 353,418 | | |
| 55,459 | | |
| (73,198 | ) | |
| 1,338,881 | | |
| 210,099 | |
| Adjusted EBITDA margin | |
| 4.2 | % | |
| 35.6 | % | |
| 34.6 | % | |
| 34.6 | % | |
| -1.8 | % | |
| 29.9 | % | |
| 29.9 | % |
| Delinquency Rates (Loan Facilitation Model) |
| | |
15-29 days | | |
30-59 days | | |
60-89 days | |
| All Loans | |
| | | |
| | | |
| | |
| December 31, 2015 | |
| 1.3 | % | |
| 1.9 | % | |
| 1.5 | % |
| December 31, 2016 | |
| 0.6 | % | |
| 0.8 | % | |
| 0.7 | % |
| December 31, 2017 | |
| 0.5 | % | |
| 0.8 | % | |
| 0.6 | % |
| December 31, 2018 | |
| 1.0 | % | |
| 1.8 | % | |
| 1.7 | % |
| December 31, 2019 | |
| 0.8 | % | |
| 1.3 | % | |
| 1.0 | % |
| December 31, 2020 | |
| 0.5 | % | |
| 0.7 | % | |
| 0.6 | % |
| December 31, 2021 | |
| 0.9 | % | |
| 1.5 | % | |
| 1.2 | % |
| | |
| | | |
| | | |
| | |
| Online Channels | |
| | | |
| | | |
| | |
| December 31, 2015 | |
| 0.4 | % | |
| 0.7 | % | |
| 0.5 | % |
| December 31, 2016 | |
| 0.8 | % | |
| 1.1 | % | |
| 1.7 | % |
| December 31, 2017 | |
| 0.3 | % | |
| 0.2 | % | |
| 0.0 | % |
| December 31, 2018 | |
| 0.9 | % | |
| 1.7 | % | |
| 1.5 | % |
| December 31, 2019 | |
| 1.0 | % | |
| 2.1 | % | |
| 1.6 | % |
| December 31, 2020 | |
| 0.6 | % | |
| 1.0 | % | |
| 1.1 | % |
| December 31, 2021 | |
| 0.8 | % | |
| 1.3 | % | |
| 1.1 | % |
| | |
| | | |
| | | |
| | |
| Offline Channels | |
| | | |
| | | |
| | |
| December 31, 2015 | |
| 1.3 | % | |
| 2.0 | % | |
| 1.6 | % |
| December 31, 2016 | |
| 0.6 | % | |
| 0.8 | % | |
| 0.7 | % |
| December 31, 2017 | |
| 0.5 | % | |
| 0.9 | % | |
| 0.7 | % |
| December 31, 2018 | |
| 1.1 | % | |
| 1.9 | % | |
| 1.8 | % |
| December 31, 2019 | |
| 0.7 | % | |
| 0.9 | % | |
| 0.7 | % |
| December 31, 2020 | |
| 0.4 | % | |
| 0.6 | % | |
| 0.4 | % |
| December 31, 2021 | |
| 1.0 | % | |
| 1.8 | % | |
| 1.4 | % |
| Net Charge-Off Rate (Loan Facilitation Model) |
Loan
Issued
Period | |
Amount of Loans
Facilitated
During the
Period | | |
Accumulated M3+ Net
Charge-Off
as of December 31,
2021 | | |
Total Net Charge-Off
Rate
as of December 31,
2021 | |
| 2015 | |
| 4,530,824 | | |
| 243,840 | | |
| 5.4 | % |
| 2016 | |
| 3,749,815 | | |
| 317,288 | | |
| 8.5 | % |
| 2017 | |
| 5,043,494 | | |
| 523,778 | | |
| 10.4 | % |
| 2018 | |
| 4,211,573 | | |
| 413,071 | | |
| 9.8 | % |
| 2019 | |
| 3,431,443 | | |
| 390,252 | | |
| 11.4 | % |
| 2020 | |
| 9,614,819 | | |
| 560,733 | | |
| 5.8 | % |
| 2021Q1-Q3 | |
| 17,025,066 | | |
| 374,843 | | |
| 2.2 | % |
| M3+ Net Charge-Off Rate (Loan Facilitation Model) |
Loan
Issued
Period | |
Month on Book | |
| | |
| 4 | | |
| 7 | | |
| 10 | | |
| 13 | | |
| 16 | | |
| 19 | | |
| 22 | | |
| 25 | | |
| 28 | | |
| 31 | | |
| 34 | |
| 2015Q1 | |
| 1.0 | % | |
| 1.9 | % | |
| 2.8 | % | |
| 3.7 | % | |
| 4.3 | % | |
| 4.8 | % | |
| 5.1 | % | |
| 5.3 | % | |
| 5.3 | % | |
| 5.3 | % | |
| 5.2 | % |
| 2015Q2 | |
| 1.1 | % | |
| 2.8 | % | |
| 4.2 | % | |
| 5.3 | % | |
| 6.2 | % | |
| 6.7 | % | |
| 7.0 | % | |
| 7.0 | % | |
| 6.9 | % | |
| 6.8 | % | |
| 6.8 | % |
| 2015Q3 | |
| 0.6 | % | |
| 2.2 | % | |
| 3.8 | % | |
| 5.0 | % | |
| 5.9 | % | |
| 6.5 | % | |
| 6.7 | % | |
| 6.8 | % | |
| 6.7 | % | |
| 6.7 | % | |
| 6.7 | % |
| 2015Q4 | |
| 1.0 | % | |
| 1.5 | % | |
| 2.2 | % | |
| 2.8 | % | |
| 3.1 | % | |
| 3.4 | % | |
| 3.7 | % | |
| 4.0 | % | |
| 4.2 | % | |
| 4.4 | % | |
| 4.4 | % |
| 2016Q1 | |
| 0.6 | % | |
| 0.9 | % | |
| 1.3 | % | |
| 1.7 | % | |
| 2.0 | % | |
| 2.2 | % | |
| 2.4 | % | |
| 2.7 | % | |
| 2.9 | % | |
| 3.0 | % | |
| 3.2 | % |
| 2016Q2 | |
| 0.6 | % | |
| 1.4 | % | |
| 2.3 | % | |
| 3.0 | % | |
| 3.6 | % | |
| 4.2 | % | |
| 4.8 | % | |
| 5.4 | % | |
| 5.8 | % | |
| 6.0 | % | |
| 6.2 | % |
| 2016Q3 | |
| 0.4 | % | |
| 1.7 | % | |
| 2.7 | % | |
| 4.1 | % | |
| 5.3 | % | |
| 6.5 | % | |
| 7.7 | % | |
| 8.6 | % | |
| 9.3 | % | |
| 9.3 | % | |
| 9.5 | % |
| 2016Q4 | |
| 0.3 | % | |
| 2.1 | % | |
| 3.8 | % | |
| 5.4 | % | |
| 7.2 | % | |
| 9.2 | % | |
| 10.4 | % | |
| 11.5 | % | |
| 12.4 | % | |
| 12.9 | % | |
| 13.3 | % |
| 2017Q1 | |
| 0.3 | % | |
| 1.6 | % | |
| 3.4 | % | |
| 5.3 | % | |
| 7.5 | % | |
| 8.9 | % | |
| 10.0 | % | |
| 10.9 | % | |
| 11.6 | % | |
| 12.1 | % | |
| 12.3 | % |
| 2017Q2 | |
| 4.1 | % | |
| 5.8 | % | |
| 7.9 | % | |
| 9.6 | % | |
| 11.3 | % | |
| 12.5 | % | |
| 13.2 | % | |
| 13.9 | % | |
| 14.6 | % | |
| 14.9 | % | |
| 15.1 | % |
| 2017Q3 | |
| 0.3 | % | |
| 1.6 | % | |
| 3.5 | % | |
| 4.9 | % | |
| 6.5 | % | |
| 7.6 | % | |
| 8.4 | % | |
| 8.9 | % | |
| 9.4 | % | |
| 9.9 | % | |
| 10.1 | % |
| 2017Q4 | |
| 0.2 | % | |
| 2.3 | % | |
| 5.1 | % | |
| 6.5 | % | |
| 7.9 | % | |
| 9.0 | % | |
| 9.7 | % | |
| 10.2 | % | |
| 10.7 | % | |
| 11.2 | % | |
| 10.6 | % |
| 2018Q1 | |
| 0.2 | % | |
| 2.9 | % | |
| 5.1 | % | |
| 6.8 | % | |
| 7.2 | % | |
| 7.9 | % | |
| 8.4 | % | |
| 8.7 | % | |
| 9.0 | % | |
| 8.6 | % | |
| 8.1 | % |
| 2018Q2 | |
| 0.7 | % | |
| 4.1 | % | |
| 7.1 | % | |
| 9.4 | % | |
| 11.2 | % | |
| 12.4 | % | |
| 13.4 | % | |
| 14.1 | % | |
| 14.3 | % | |
| 14.1 | % | |
| 14.1 | % |
| 2018Q3 | |
| 0.2 | % | |
| 2.8 | % | |
| 3.6 | % | |
| 4.5 | % | |
| 5.2 | % | |
| 6.4 | % | |
| 7.0 | % | |
| 7.0 | % | |
| 6.9 | % | |
| 7.0 | % | |
| 6.9 | % |
| 2018Q4 | |
| 0.6 | % | |
| 2.2 | % | |
| 3.4 | % | |
| 5.2 | % | |
| 6.9 | % | |
| 9.0 | % | |
| 9.7 | % | |
| 9.9 | % | |
| 9.6 | % | |
| 9.7 | % | |
| 9.7 | % |
| 2019Q1 | |
| 0.0 | % | |
| 0.8 | % | |
| 2.0 | % | |
| 3.4 | % | |
| 5.3 | % | |
| 5.9 | % | |
| 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 | % | |
| | | |
| | |
| 2019Q3 | |
| 0.2 | % | |
| 2.9 | % | |
| 6.8 | % | |
| 9.0 | % | |
| 10.4 | % | |
| 12.0 | % | |
| 13.2 | % | |
| 13.8 | % | |
| | | |
| | | |
| | |
| 2019Q4 | |
| 0.4 | % | |
| 3.1 | % | |
| 4.9 | % | |
| 6.3 | % | |
| 7.2 | % | |
| 7.9 | % | |
| 8.4 | % | |
| | | |
| | | |
| | | |
| | |
| 2020Q1 | |
| 0.6 | % | |
| 2.3 | % | |
| 4.1 | % | |
| 5.2 | % | |
| 6.0 | % | |
| 6.2 | % | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2020Q2 | |
| 0.5 | % | |
| 2.5 | % | |
| 4.2 | % | |
| 5.3 | % | |
| 6.1 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2020Q3 | |
| 1.1 | % | |
| 3.3 | % | |
| 5.1 | % | |
| 6.3 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2020Q4 | |
| 0.3 | % | |
| 1.8 | % | |
| 3.2 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2021Q1 | |
| 0.4 | % | |
| 2.3 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2021Q2 | |
| 0.4 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
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.
| |
By |
/s/ Na Mei |
| |
Name: |
Na Mei |
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Title: |
Chief Financial Officer |
Date: September 1, 2022
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