Core Insights - Yiren Digital Ltd. has joined China's Artificial Intelligence Industry Alliance (AIIA), highlighting its commitment to innovation and collaboration in the AI sector [1][2] - The AIIA aims to advance the development of China's AI industry and promote digital transformation across various sectors [2] Company Overview - Since its NYSE listing in 2015, Yiren Digital has evolved from a fintech pioneer to a leader in intelligent technology, enhancing operations through advanced AI integration [3] - The company employs a business strategy of 'AI + diverse applications' and has developed several proprietary intelligent platforms to drive innovation in various areas [4] Technological Advancements - Yiren Digital has created platforms such as the DiTing Intelligent Decision-making Platform and the QingNiao Intelligent Customer Service System, which enhance decision-making, marketing, and customer service [4] - The company has implemented a comprehensive risk control system, including tools for emotion recognition and fraud prevention, ensuring regulatory compliance [4] Ethical AI Practices - Yiren Digital is committed to the ethical application of AI, utilizing machine learning techniques to enhance training objectivity and improve knowledge reliability [5] - The company's Model Factory and model parallel processing frameworks ensure transparency and interpretability of its algorithms [5] Recognition and Awards - Recently, Yiren Digital was recognized as one of the 'Beijing Top 10 Financial Brands for the Year 2024' for its service quality and technological innovations [6]

Core Viewpoint - Yiren Digital Ltd (NYSE: YRD) is presented as a potentially attractive investment opportunity due to its profitability, growth, and low stock multiples, which may lead some to question its viability [1] Company Summary - YRD is characterized as a profitable and growing business, suggesting strong operational performance and market demand for its services [1] Investment Potential - The stock of YRD is described as being available at very low multiples, indicating a potentially undervalued investment opportunity in the market [1]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 reached RMB1.5 billion, a 13% increase year-over-year [29] - Net income for the quarter was RMB355 million, a decrease of 36% year-over-year due to lower profitability in the insurance business, increased marketing and R&D expenses, and significant upfront provisions [40][41] - Total loan volume reached RMB13.4 billion, a 36% increase year-over-year, driven by strong demand for small revolving loan products [10][30] Business Line Data and Key Metrics Changes - Financial Services segment revenue increased 25% year-over-year to RMB836 million, maintaining steady growth [30] - Insurance sector gross written premiums were RMB1.4 billion, down 5% year-over-year but up 27% quarter-over-quarter, with a significant decline in life insurance sales due to regulatory changes [31][32] - Consumption and Lifestyle Services segment GMV was RMB508 million, a 10% year-over-year decline, attributed to high product penetration and strategic reduction in offerings [33] Market Data and Key Metrics Changes - In the Philippines, loan volumes and revenues posted double-digit increases quarter-over-quarter, indicating strong growth momentum in international markets [17] - The company added nearly 20 new funding partners by the end of Q3 2024, with funding costs reduced by 64 basis points quarter-over-quarter [16] Company Strategy and Development Direction - The company emphasizes a "quality over quantity" strategy, focusing on sustainable, high-quality growth and strong risk management [7][10] - Ongoing investments in AI are expected to enhance operational efficiency and customer experience, with proprietary AI applications integrated into daily operations [9][19] - The company aims to create synergies between its lending platform and insurance services, offering customized insurance products to borrowers [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain market conditions but remains confident in maintaining a robust risk management approach while pursuing growth [51][53] - The company expects revenue for Q4 2024 to be between RMB1.3 billion to RMB1.5 billion, with a healthy net profit margin [46] Other Important Information - The company allocated US$3 million for share buybacks in Q3 2024, purchasing approximately 5 million ADS [45] - Cash and cash equivalents stood at RMB3.7 billion, reflecting a notable decrease due to long-term investments in business expansion [44] Q&A Session Summary Question: Why is there a slowdown in loan volume growth? - Management noted that while credit demand remains high, uncertain market conditions necessitate a focus on quality, which impacts growth rates [51][52] Question: What makes the company competitive in the AI space? - The company positions itself as an AI application firm with unique use cases and accumulated data, focusing on credit and insurance-related models [59][60] Question: What is the status of AI systems being commercialized? - Six major AI systems have been developed, with some already in use and others in early development, aiming for commercialization in the near future [60][61]

Financial Performance - Total net revenue in Q3 2024 was RMB1,479.1 million (US$210.8 million), representing a 12.8% increase from RMB1,310.8 million in Q3 2023[8] - Total net revenue for the three months ended September 30, 2024, was RMB 1,479,088 thousand, a decrease of 1.2% compared to RMB 1,496,536 thousand in the previous quarter[33] - Revenue from financial services business was RMB836.2 million (US$119.2 million), a 25.2% increase from RMB668.0 million in Q3 2023[8] - Revenue from the financial services business in Q3 2024 was RMB 836,193, a decrease from RMB 851,031 in Q2 2024[36] - Net income in Q3 2024 was RMB355.4 million (US$50.7 million), a decrease from RMB554.4 million in the same period in 2023[14] - Net income for the three months ended September 30, 2024, was RMB 355,442 thousand, down 13.2% from RMB 409,528 thousand in the previous quarter[33] - Adjusted EBITDA for the nine months ended September 30, 2024, was RMB 1,467,972, reflecting a decrease of 22.4% from RMB 1,893,638 in the same period of 2023[36] - The adjusted EBITDA margin for Q3 2024 was 26.6%, down from 32.1% in Q2 2024[36] Loan Facilitation - Total loans facilitated in Q3 2024 reached RMB13.4 billion (US$1.9 billion), a 3.5% increase from RMB12.9 billion in Q2 2024 and a 36.7% increase from RMB9.8 billion in Q3 2023[5] - The amount of loans facilitated in Q3 2024 reached RMB 13,392,676, a 3.5% increase from RMB 12,936,017 in Q2 2024[36] - Cumulative number of borrowers served reached 11,611,899 as of September 30, 2024, a 7.4% increase from 10,807,497 as of June 30, 2024[5] - The number of borrowers increased to 1,498,020 in Q3 2024, a slight increase from 1,491,756 in Q2 2024[36] Cash and Assets - As of September 30, 2024, cash and cash equivalents were RMB3,705.9 million (US$528.1 million), down from RMB5,496.9 million as of June 30, 2024[19] - Cash and cash equivalents decreased to RMB 3,705,866 thousand as of September 30, 2024, from RMB 5,496,932 thousand as of June 30, 2024[35] - Total assets increased to RMB 12,457,945 thousand as of September 30, 2024, compared to RMB 11,815,769 thousand as of June 30, 2024[35] - Total liabilities increased to RMB 3,173,092 thousand as of September 30, 2024, from RMB 2,851,866 thousand as of June 30, 2024[35] Research and Development - Research and development expenses in Q3 2024 were RMB150.8 million (US$21.5 million), compared to RMB39.0 million in Q3 2023, reflecting ongoing investment in AI upgrades[11] - Research and development expenses for the three months ended September 30, 2024, were RMB 150,840 thousand, a significant increase from RMB 55,812 thousand in the previous quarter[33] Share Repurchase - In Q3 2024, the company allocated US$3.0 million to repurchase shares, totaling approximately US$16.5 million under the 2022 share repurchase program[23] Operating Costs - Operating costs and expenses totaled RMB 1,139,816 thousand for the three months ended September 30, 2024, an increase of 7.6% from RMB 1,058,335 thousand in the previous quarter[33] - The company reported a significant increase in sales and marketing expenses, which rose to RMB 307,459 in Q3 2024, compared to RMB 253,103 in Q2 2024[36] Delinquency Rates - The delinquency rate for loans was reported at 2.1% for December 2022, showing a slight improvement from 2.0% in December 2021[37] - The 30+ days delinquency rate for loans issued in Q3 2023 reached 7.8%[38] - In Q2 2023, the delinquency rate for loans issued at 12 months was 7.3%[38] - The delinquency rate for loans issued in Q1 2023 was 6.2% at 6 months[38] - The delinquency rate for loans issued in Q4 2022 was 5.9% at 12 months[38] - The delinquency rate for loans issued in Q1 2022 was 4.8% at 12 months[38] - The delinquency rate for loans issued in Q4 2021 was 5.8% at 12 months[38] - The delinquency rate for loans issued in Q3 2021 was 6.9% at 12 months[38] - The delinquency rate for loans issued in Q2 2021 was 7.9% at 12 months[38] - The delinquency rate for loans issued in Q1 2020 was 8.5% at 24 months[38] - The delinquency rate for loans issued in Q4 2019 was 10.3% at 24 months[38]

Core Viewpoint - Yiren Digital Ltd. reported a stable third quarter in 2024, highlighting a focus on sustainable, high-quality growth through strategic initiatives in financial services, insurance brokerage, and e-commerce sectors [2][3]. Financial Services Business - Total loans facilitated in Q3 2024 reached RMB 13.4 billion (US$ 1.9 billion), up 3.5% from RMB 12.9 billion in Q2 2024 and significantly higher than RMB 9.8 billion in Q3 2023 [3][4]. - The cumulative number of borrowers served increased to 11,611,899, a 7.4% rise from 10,807,497 in Q2 2024 and up from 8,595,780 in Q3 2023 [3][4]. - The outstanding balance of performing loans reached RMB 22.8 billion (US$ 3.2 billion), reflecting a 4.3% increase from RMB 21.8 billion in Q2 2024 and a substantial rise from RMB 15.1 billion in Q3 2023 [3][4]. Insurance Brokerage Business - The cumulative number of insurance clients served reached 1,470,738, marking a 4.3% increase from 1,410,158 in Q2 2024 and up from 1,256,762 in Q3 2023 [3][4]. - Gross written premiums in Q3 2024 were RMB 1,351.3 million (US$ 192.6 million), a 27.4% increase from RMB 1,060.9 million in Q2 2024, but a decrease from RMB 1,428.5 million in Q3 2023 [3][4]. Consumption and Lifestyle Business - Total gross merchandise volume through the e-commerce platform reached RMB 507.6 million (US$ 72.3 million) in Q3 2024, down 8.5% from RMB 554.6 million in Q2 2024 and lower than RMB 563.2 million in Q3 2023 [3][4]. Financial Performance - Total net revenue for Q3 2024 was RMB 1,479.1 million (US$ 210.8 million), up 12.8% from RMB 1,310.8 million in Q3 2023 [3][4]. - Revenue from financial services was RMB 836.2 million (US$ 119.2 million), a 25.2% increase from RMB 668.0 million in Q3 2023 [3][4]. - Net income for Q3 2024 was RMB 355.4 million (US$ 50.7 million), down from RMB 554.4 million in Q3 2023, primarily due to increased provisions related to loan volume [3][4]. Cash Flow and Investments - Net cash generated from operating activities in Q3 2024 was RMB 50.4 million (US$ 7.2 million), a significant decrease from RMB 645.4 million in Q3 2023 [4]. - Cash and cash equivalents as of September 30, 2024, were RMB 3,705.9 million (US$ 528.1 million), down from RMB 5,496.9 million as of June 30, 2024, due to long-term investments [4][5]. Business Outlook - The company projects total revenue for Q4 2024 to be between RMB 1.3 billion and RMB 1.5 billion, with a healthy net profit margin anticipated [5].

Group 1 - Yiren Digital Ltd. plans to release its unaudited financial results for Q3 2024 on November 20, 2024, before U.S. market opens [1] - The earnings conference call will take place at 7:00 a.m. U.S. Eastern Time on the same day, with registration required for participants [2] - A live and archived webcast of the conference call will be available for those unable to join the live session [3] Group 2 - Yiren Digital is an AI-powered platform offering a comprehensive suite of financial and lifestyle services in China, aiming to enhance customers' financial well-being and quality of life [3] - The company supports clients at various growth stages, addressing financing needs from consumption and production activities [3]

Group 1 - The core investment thesis for Yiren Digital Ltd. (NYSE: YRD) is a Buy rating, supported by the resumption of dividend payments and a new semi-annual distribution policy [1] - YRD is expected to complete its share buyback program by the end of 2024, indicating strong financial health and commitment to returning value to shareholders [1] - The investment service Asia Value & Moat Stocks focuses on identifying undervalued stocks in Asia, particularly in the Hong Kong market, emphasizing deep value balance sheet bargains and wide moat stocks [1]

BEIJING, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Yiren Digital (NYSE: YRD) based in Beijing, an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China, today announced that Yuning Feng, CFO of Yiren Digital will present at the dbVIC - Deutsche Bank American Depositary Receipt (ADR) Virtual Investor Conference on September 25. This virtual investor conference is aimed exclusively at introducing global companies with ADR programs to investors. DATE:September 25, 2024TIME:8 ...

Yiren Digital Ltd. (NYSE:YRD) Q2 2024 Results Conference Call August 20, 2024 8:00 AM ET Company Participants Keyao He - Investor Relations Ning Tang - Chief Executive Officer Na Mei - Chief Financial Officer Conference Call Participants Bruce Oren - Black Lab Fund Operator Good day, and welcome to the Yiren Digital Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Keyao He, Investor Relations Offi ...

Exhibit 99.1 Yiren Digital Reports First Quarter 2024 Financial Results BEIJING – June 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 March 31, 2024. First Quarter 2024 Operational Highlights Financial Services Business l Total loans facilitated in the first quarter of 2024 reached RMB11.9 billion (US$1.6 bil ...