Strong Loan Growth Amidst Rising Expenses #UKFinance

• Total Revenue: RMB1.5 billion, up 30% year-over-year.

• Total Loan Volume: RMB13.4 billion, a 36% increase year-over-year.

• Financial Services Revenue: RMB836 million, up 25% year-over-year.

• Insurance Gross Written Premiums: RMB1.4 billion, down 5% year-over-year, up 27% quarter-over-quarter.

• Insurance Revenue: RMB85.5 million, down 68% year-over-year.

• Consumption and Lifestyle Services GMV: RMB508 million, a 10% year-over-year decline.

• Sales and Marketing Expenses: RMB336 million, up 71% year-over-year.

• Research and Development Expenses: RMB151 million, up 287% year-over-year.

• Origination, Servicing, and Other Operating Costs: RMB206 million, down 16% year-over-year.

• General and Administrative Expenses: RMB80 million, up 50% year-over-year.

• Net Income: RMB355 million, down 36% year-over-year.

• Operating Cash Flow: Approximately RMB50 million net cash generated.

• Cash and Cash Equivalents: RMB3.7 billion.

• Share Buybacks: USD3 million allocated in Q3 2024.

• Q4 2024 Revenue Outlook: Expected between RMB1.3 billion to RMB1.5 billion.

Release Date: November 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Yiren Digital Ltd (NYSE:YRD) reported a 36% year-over-year increase in total loan volumes, reaching RMB13.4 billion.

• The company has seen a significant improvement in asset quality due to strong risk management and borrower optimization.

• Yiren Digital Ltd (NYSE:YRD) has successfully integrated AI into daily operations, enhancing efficiency and customer experience.

• The company expanded its funding partnerships, adding nearly 20 new partners by the end of the third quarter.

• Yiren Digital Ltd (NYSE:YRD) achieved a 27% quarter-over-quarter increase in total premiums for its insurance brokerage business.

• Revenue from the insurance segment decreased by 68% year-over-year due to regulatory changes and product adjustments.

• The consumption and lifestyle services segment experienced a 10% year-over-year decline in total GMV.

• Sales and marketing expenses increased by 71% year-over-year, driven by efforts to attract new and high-quality customers.

• Research and development expenses rose by 287% year-over-year due to ongoing investments in technology and AI talent.

• Net income decreased by 36% year-over-year, impacted by reduced profitability in the insurance business and increased expenses.

Q: We noticed a slowdown in loan volume growth this quarter. Can you explain the reasons behind this and provide any updates on credit demand and new customer acquisition strategies for Q4? A: Ning Tang, CEO: The demand for credit remains high, but market conditions are uncertain. We are focusing on a quality-over-quantity strategy, emphasizing risk management. We aim to bring in higher-quality customers at reasonable acquisition costs. Yuning Feng, CFO: We continue to collaborate with platforms like TikTok and WeChat to efficiently screen and qualify borrowers. We expect customer acquisition costs to remain high due to market competition, but we are committed to expanding our repeat borrowing pool.

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