Core Viewpoint - Yiren Digital Ltd. reported a solid financial performance for Q1 2025, driven by a strong technology transformation strategy and favorable domestic economic conditions, despite challenges in certain business segments [4][5]. Financial Performance - Total net revenue for Q1 2025 was RMB 1,554.5 million (US$ 214.2 million), a 13% increase from RMB 1,378.1 million in Q1 2024 [6]. - Revenue from the financial services business reached RMB 1,174.6 million (US$ 161.9 million), marking a significant 59% increase from RMB 738.1 million in the same period last year [6]. - Revenue from the insurance brokerage business decreased by 43% to RMB 71.5 million (US$ 9.8 million) due to regulatory changes affecting life insurance sales [6]. - Revenue from the consumption and lifestyle business fell by 40% to RMB 308.5 million (US$ 42.5 million), attributed to high product penetration rates [6]. Operational Highlights - Total loans facilitated in Q1 2025 amounted to RMB 15.2 billion (US$ 2.1 billion), a slight decrease of 1% from RMB 15.4 billion in Q4 2024, but an increase from RMB 11.9 billion in Q1 2024 [8]. - The cumulative number of borrowers served reached 12,909,436, a 5% increase from the previous quarter [8]. - The outstanding balance of performing loans was RMB 27.5 billion (US$ 3.8 billion), an 11% increase from RMB 24.8 billion as of December 31, 2024 [8]. Expenses and Costs - Research and development expenses rose to RMB 86.0 million (US$ 11.8 million) from RMB 40.5 million in Q1 2024, reflecting increased investment in AI [9]. - General and administrative expenses increased to RMB 95.8 million (US$ 13.2 million) from RMB 83.7 million in the same period last year, primarily due to higher employee benefits [10]. - The allowance for contract assets and receivables increased to RMB 152.8 million (US$ 21.1 million) from RMB 102.3 million in Q1 2024, indicating a cautious approach to risk management [11]. Profitability Metrics - Net income for Q1 2025 was RMB 247.5 million (US$ 34.1 million), down from RMB 485.9 million in Q1 2024, largely due to increased provisions and declining sales in certain segments [13]. - Adjusted EBITDA for the quarter was RMB 325.0 million (US$ 44.8 million), compared to RMB 591.1 million in the same period last year [14]. - Basic income per ADS was RMB 2.9 (US$ 0.4), down from RMB 5.6 in Q1 2024 [14]. Business Outlook - The company projects total revenue for Q2 2025 to be between RMB 1.6 billion and RMB 1.7 billion, supported by loan growth in both domestic and international markets [24].

Market Capitalization Overview - New Oriental has a market capitalization of 14.065 billion [2] - TAL Education (好未来) has a market capitalization of 8.413 billion [2] - Miniso (名创优品) has a market capitalization of 5.728 billion [2] - JD.com (京东) has a market capitalization of 66.01 billion [2] - iQIYI (爱奇艺) has a market capitalization of 2.439 billion [3] Stock Performance - New Oriental's stock decreased by 0.15 (-0.77%) [2] - TAL Education's stock decreased by 0.21 (-1.20%) [2] - Miniso's stock increased by 1.24 (+2.61%) [2] - iQIYI's stock decreased by 0.05 (-0.48%) [3] - JD.com's stock increased by 0.39 (+3.92%) [3] Company Comparisons - New Oriental's market cap is significantly higher than that of TAL Education, which is about 60% of New Oriental's value [2] - Miniso's market cap is approximately 67% of TAL Education's market cap [2] - iQIYI's market cap is lower than that of Miniso, indicating a weaker market position [3] Industry Insights - The overall market performance shows a mixed trend with some companies experiencing gains while others face declines [2][3] - The education sector, represented by New Oriental and TAL Education, shows volatility with both companies experiencing stock price fluctuations [2] - E-commerce and entertainment sectors, represented by Miniso and iQIYI, also reflect varying market sentiments [2][3]

Market Capitalization Summary - New Oriental has a market capitalization of 13.696 billion [2] - TAL Education has a market capitalization of 8.011 billion [2] - Vipshop has a market capitalization of 8.175 billion [2] - 51Talk has a market capitalization of 7.533 billion [2] - Xunlei has a market capitalization of 6.438 billion [2] - 76.67 billion market capitalization for another unspecified company [2] - 56.88 billion market capitalization for another unspecified company [2] - 32.89 billion market capitalization for another unspecified company [2] - 16.27 billion market capitalization for another unspecified company [2] - 12.30 billion market capitalization for Lexin [2] - 9.91 billion market capitalization for Youdao [2] - 5.19 billion market capitalization for Dada [2] Stock Performance - New Oriental's stock increased by 0.09 (+0.50%) [2] - TAL Education's stock decreased by 0.01 (-0.28%) [2] - Vipshop's stock increased by 0.27 (+1.46%) [2] - 51Talk's stock decreased by 1.09 (-2.28%) [2] - Xunlei's stock increased by 0.16 (+1.11%) [2] - 76.67 billion market capitalization company increased by 0.13 (+1.24%) [2] - 56.88 billion market capitalization company decreased by 0.14 (-0.77%) [2] - 32.89 billion market capitalization company increased by 0.65 (+2.58%) [2] - 16.27 billion market capitalization company increased by 0.02 (+1.20%) [2] - Lexin's stock increased by 0.22 (+2.68%) [2] - Youdao's stock decreased by 0.11 (-1.21%) [2] - Dada's stock decreased by 0.06 (-1.58%) [2] Additional Company Insights - The market capitalization of various companies ranges significantly, with some exceeding 10 billion [2] - Companies like New Oriental and TAL Education show contrasting stock performance trends, indicating varying investor sentiment [2] - The overall market appears to be volatile, with both increases and decreases in stock prices across different companies [2]

Core Viewpoint - Yiren Digital Ltd. is set to release its unaudited financial results for Q1 2025 on June 12, 2025, before the U.S. market opens [1] Group 1: Financial Results Announcement - Yiren Digital will announce its unaudited financial results for the first quarter ended March 31, 2025 [1] - The announcement is scheduled for June 12, 2025, before U.S. market opens [1] Group 2: Earnings Conference Call - An earnings conference call will be hosted by Yiren Digital's management at 8:00 a.m. U.S. Eastern Time on June 12, 2025 [2] - Participants must register online in advance to join the call [2] Group 3: Webcast Availability - A live and archived webcast of the conference call will be available for participants [3] Group 4: Company Overview - Yiren Digital is an AI-powered platform offering a comprehensive suite of financial and lifestyle services in Asia [3] - The company's mission is to enhance customers' financial well-being and quality of life through digital financial services and tailor-made insurance solutions [3]

Market Capitalization Summary - The market capitalizations of various companies are listed, with notable figures including 136.20 billion for a leading company and 88.05 billion for another significant player [2] - Companies like MINISO and VIPSHOP have market caps of 76.81 billion and 75.61 billion respectively, indicating strong positions in the market [2] - TAL Education and other firms show varying market caps, with TAL at 66.64 billion and others like Zai Auto and Huya at 35.18 billion and 29.68 billion respectively [2] Stock Performance Overview - Stock price changes are noted, with MINISO showing a slight increase of +0.07 (+0.41%) and VIPSHOP increasing by +0.24 (+1.70%) [2] - TAL Education's stock rose by +1.03 (+2.43%), while other companies like Dada and Yatsen experienced minor fluctuations [2] - Companies such as Lexin and Huya saw declines, with Lexin down by -0.49 (-5.71%) and Huya down by -0.19 (-4.24%) [2] Company Specific Insights - MINISO and VIPSHOP are highlighted as strong competitors in the retail sector, with significant market caps and positive stock performance [2] - TAL Education continues to show resilience with a notable market cap and stock price increase, reflecting investor confidence [2] - Companies like Dada and Yatsen are also mentioned, indicating a diverse range of players in the market with varying performance metrics [2]

Market Capitalization Overview - The market capitalization of TAL Education Group is 14.95 billion, while Vipshop Holdings has a market cap of 9.21 billion [2] - Other companies such as Miniso and Qifu Technology have market caps of 7.77 billion and 6.33 billion respectively [2] - The market cap of various companies shows a range from 5.22 million to 149.53 billion, indicating a diverse market landscape [2] Stock Performance - TAL Education Group's stock increased by 1.64 (+1.55%), while Vipshop's stock rose by 0.07 (+1.88%) [2] - Miniso's stock saw a significant increase of 1.24 (+6.99%), indicating strong market performance [2] - Companies like Huya and Yiren Digital experienced slight declines in their stock prices, with decreases of -0.03 (-0.81%) and -0.10 (-0.96%) respectively [2] Comparative Analysis - The comparison of market caps shows that TAL Education Group leads with 14.95 billion, followed by Vipshop and Miniso [2] - The performance of stocks varies significantly, with some companies like Miniso showing robust growth compared to others that faced declines [2] - The data indicates a competitive environment among these companies, with varying degrees of market success and stock performance [2]

Summary of Yiren Digital (YRD) Conference Call Company Overview - **Company Name**: Yiren Digital Limited - **Ticker Symbol**: YRD - **Industry**: Consumer Finance - **Headquarters**: Beijing, China - **Listing**: NYSE since 2015 - **Market Focus**: Rapid growth in Southeast Asia, particularly in consumer lending and insurance brokerage [3][4] Core Business Insights - **Revenue and Growth**: - 2024 revenue was RMB 5.8 billion (approximately USD 800 million), representing a 19% year-on-year growth [23] - Operating cash flow for 2024 was RMB 1.4 billion (approximately USD 200 million) [7] - **Dividends**: Increased by 10% in Q4 2024, with a current dividend yield of 6.75% [5][36] - **Loan Facilitation**: Total loan facilitation in 2024 was RMB 53.6 billion (approximately USD 7.5 billion), a 49% increase year-on-year [10][22] Industry Dynamics - **Consumer Finance Market Growth**: - Expected to reach USD 3.5 trillion by 2027, with a CAGR of 7% [5] - Outstanding loan balance projected to reach RMB 8.1 trillion by 2026, 5.7 times the 2017 figures [6] - **Per Capita Consumption**: Projected to grow at about 4% per year in China over the next five years [5] Business Segments 1. **Financial Services**: - Target demographic: Individuals aged 25-40 with stable incomes [8] - Average loan size: Approximately RMB 8,000 (USD 1,100) [9] - Focus on optimizing borrower acquisition, risk management, and debt collection using technology [8][12] 2. **Insurance Brokerage**: - Partnering with 95 insurers and focusing on high-commission, long-term revenue products [16] - Launched innovative products like enterprise drone insurance, targeting gross premiums of RMB 400 million by 2026 [18][24] 3. **Lifestyle Segment**: - Premium membership for affluent customers, with a retention rate of 98% [20] - Expanding product offerings to include luxury and virtual goods [20] Technology and Innovation - **AI Utilization**: - Extensive use of AI for borrower acquisition, risk management, and customer service [12][32] - Development of proprietary language model "Zhiji" for enterprise applications [15][29] - **International Expansion**: - Entered the Philippines in 2023, with revenue doubling year-on-year [13][27] - Joint venture in Indonesia expected to start operations in Q3 2025 [13][27] Financial Performance and Projections - **2024 Financials**: - Net profit was RMB 1.6 billion, down 24% due to a one-off revenue in 2023 and regulatory headwinds [23][24] - **Future Expectations**: - Loan origination volume expected to grow by 12% in 2025 [22] - Technology revenue anticipated to be significant enough to report separately starting Q1 2025 [21] Challenges and Strategic Focus - **Regulatory Headwinds**: Facing challenges in the insurance segment due to commission caps [23][30] - **Transition Strategy**: Shifting focus from traditional insurance products to higher-margin embedded insurance products [24][31] Conclusion - Yiren Digital is positioned for growth in the consumer finance sector, leveraging technology and expanding into international markets while navigating regulatory challenges and focusing on innovative product offerings [25][36]

Company Overview - Yiren Digital is an AI-powered platform providing a comprehensive suite of financial and lifestyle services in Asia [3] - The company's mission is to enhance customers' financial well-being and quality of life through digital financial services, tailor-made insurance solutions, and premium lifestyle services [3] Event Announcement - Yiren Digital's SVP of Capital Market, William Hui, will present at the dbVIC - Deutsche Bank American Depositary Receipt (ADR) Virtual Investor Conference on May 15, 2025 [1] - The conference is designed to introduce global companies with ADR programs to investors [1] Event Details - The event will take place on May 15th at 11:30 AM ET and will be a live, interactive online event [2] - Participation in the conference is free of charge [3] Virtual Investor Conferences - Virtual Investor Conferences (VIC) is a leading proprietary investor conference series that allows publicly traded companies to present directly to investors [4] - VIC provides a real-time investor engagement solution, enhancing companies' capabilities to connect with investors and schedule targeted one-on-one meetings [5]

Core Viewpoint - Yiren Digital Ltd. has filed its annual report for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission, highlighting its AI-powered financial and lifestyle services in China [1]. Company Overview - Yiren Digital Ltd. is an advanced platform that offers a comprehensive suite of financial and lifestyle services in China, aiming to enhance customers' financial well-being and quality of life [3]. - The company provides digital financial services, tailor-made insurance solutions, and premium lifestyle services, supporting clients at various growth stages [3]. Annual Report Access - The annual report can be accessed on the company's investor relations website, and hard copies containing audited consolidated financial statements are available free of charge to shareholders upon request [2].

Part I [Item 1. Identity of Directors, Senior Management and Advisers](index=6&type=section&id=Item%201.%20Identity%20of%20Directors,%20Senior%20Management%20and%20Advisers) This section is not applicable as per the report - The report states that this item is not applicable[27](index=27&type=chunk) [Item 2. Offer Statistics and Expected Timetable](index=6&type=section&id=Item%202.%20Offer%20Statistics%20and%20Expected%20Timetable) This section is not applicable as per the report - The report states that this item is not applicable[28](index=28&type=chunk) [Item 3. Key Information](index=6&type=section&id=Item%203.%20Key%20Information) This section provides crucial information regarding the company's holding structure, the risks associated with its Variable Interest Entity (VIE) model, and doing business in China [Holding Company Structure and Contractual Arrangements](index=6&type=section&id=Holding%20Company%20Structure%20and%20Contractual%20Arrangements) Yiren Digital Ltd. operates through PRC subsidiaries and consolidated Variable Interest Entities (VIEs) due to foreign investment restrictions, with VIEs contributing 33.7% of total revenues in 2024 - VIE Revenue Contribution | Year | VIE Revenue Contribution (%) | | :--- | :--- | | 2022 | 53.0% | | 2023 | 33.2% | | 2024 | 33.7% | - The company relies on contractual arrangements with its VIEs, which may not be as effective as direct ownership and are subject to interpretation by PRC authorities[29](index=29&type=chunk)[35](index=35&type=chunk) [Cash and Asset Flows and Financial Information of VIEs](index=12&type=section&id=Cash%20and%20Asset%20Flows%20and%20Financial%20Information%20of%20VIEs) This subsection details the movement of funds within the company's structure, including cash transfers and service fees, and provides condensed consolidating financial statements for transparency - Cash Transfers to Holding Company and VIE Service Fees | Description | 2022 (RMB Million) | 2023 (RMB Million) | 2024 (RMB Million) | | :--- | :--- | :--- | :--- | | Cash from PRC subsidiaries to Cayman holding co. | 9.8 | 49.7 | 64.2 | | Service fees from VIEs to PRC subsidiaries | 378.1 | 93.3 | 104.9 | - The company has a semi-annual dividend policy approved on August 14, 2024, with **US$17.3 million** in cash dividends paid to shareholders in 2024[46](index=46&type=chunk) - Funds in PRC subsidiaries and VIEs may not be readily available for use outside mainland China due to currency conversion controls and withholding taxes on dividends[46](index=46&type=chunk)[48](index=48&type=chunk)[53](index=53&type=chunk) - Condensed Consolidating Schedule of Net Revenue (2024) | Entity | Net Revenue (RMB Million) | | :--- | :--- | | Company Subsidiaries | 5,065 | | Consolidated Variable Interest Entities | 1,956 | | Eliminations | (1,215) | | **Consolidated Total** | **5,806** | - Condensed Consolidating Schedule of Total Assets (as of Dec 31, 2024) | Entity | Total Assets (RMB Million) | | :--- | :--- | | The Company | 9,618 | | Company Subsidiaries | 12,785 | | Consolidated Variable Interest Entities | 5,351 | | Consolidated Assets Backed Financing Entities | 507 | | Eliminations | (15,278) | | **Consolidated Total** | **12,983** | [Risk Factors](index=18&type=section&id=Risk%20Factors) This section provides an exhaustive list of risks facing the company, including business, funding, regulatory, corporate structure, and China-specific operational challenges - **Business Risks:** The company operates in emerging industries and has expanded into new areas like insurance brokerage, consumption and lifestyle, and international financial services, with success not guaranteed[61](index=61&type=chunk) - **Funding Risk:** In 2024, **99.5%** of loans were funded by third parties, primarily institutional partners, making insufficient funding a significant operational risk[66](index=66&type=chunk) - **Regulatory Risk:** The company faces significant regulatory uncertainty in China, particularly regarding whether its data analysis activities could be deemed a personal credit reporting business, which requires an unheld license[73](index=73&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) - **Relationship with CreditEase:** The company relies on its parent, CreditEase, which remains the controlling shareholder with **83.0%** of voting power as of March 31, 2025, creating potential conflicts of interest and classifying Yiren Digital as a "controlled company"[191](index=191&type=chunk)[198](index=198&type=chunk)[204](index=204&type=chunk) - **VIE Structure Risk:** The contractual arrangements controlling the company's VIEs have not been tested in Chinese courts and could be deemed non-compliant by PRC authorities, potentially leading to severe penalties[205](index=205&type=chunk)[211](index=211&type=chunk) - **China Regulatory Oversight:** The PRC government has significant oversight over the business and has increased scrutiny of overseas-listed companies, with new regulations requiring filings for future offerings[248](index=248&type=chunk)[285](index=285&type=chunk) - **PFIC Status:** The company believes it was a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes for the taxable year ended December 31, 2024, which could result in adverse tax consequences for U.S. holders of its ADSs[322](index=322&type=chunk) [Item 4. Information on the Company](index=73&type=section&id=Item%204.%20Information%20on%20the%20Company) This section details the company's history, business operations, organizational structure, and property, including its three core segments and complex regulatory landscape [History and Development of the Company](index=73&type=section&id=History%20and%20Development%20of%20the%20Company) The company evolved from a CreditEase business unit, completed its NYSE IPO in 2015, changed its name in 2019, and restructured in 2020 to focus on institutional funding - The company completed its IPO on the NYSE under the symbol "YRD" on December 18, 2015[330](index=330&type=chunk) - In September 2019, the company's name was changed from "Yirendai Ltd." to "Yiren Digital Ltd."[334](index=334&type=chunk) - A significant business restructuring occurred on December 31, 2020, shifting its funding model entirely to institutional partners by disposing of its online consumer lending platform[336](index=336&type=chunk) [Business Overview](index=75&type=section&id=Business%20Overview) Yiren Digital operates an AI-powered platform across financial services, insurance brokerage, and consumption & lifestyle segments, emphasizing advanced risk management and scalable technology - The company operates three primary business segments: Financial services, Insurance brokerage, and Consumption and lifestyle[343](index=343&type=chunk) - Total Loans Facilitated (Financial Services) | Year | Amount (RMB Million) | | :--- | :--- | | 2022 | 22,623.1 | | 2023 | 36,036.3 | | 2024 | 53,591.6 | - Loan Funding Sources Breakdown (2024) | Funding Source | % of Total Loan Volume | | :--- | :--- | | Consumer finance companies | 49.9% | | Banks | 37.7% | | Others | 9.0% | | Trusts | 2.3% | | Microloan companies | 0.6% | | Own capital | 0.5% | - The company utilizes a proprietary, AI-driven credit scoring model to assess borrower creditworthiness, segmenting potential borrowers[365](index=365&type=chunk) - The company has developed an AI-Generated Content (AIGC) platform for marketing and initiated an AI Lab project to enhance operations across various functions[398](index=398&type=chunk) [Organizational Structure](index=111&type=section&id=Organizational%20Structure) This section reiterates Yiren Digital's Cayman Islands holding company structure, operating through PRC subsidiaries and VIEs, and details the contractual arrangements enabling control and consolidation - The company consolidates its VIEs (Yiren Financial Information and CreditEase Puhui) because contractual arrangements grant it power to direct activities and receive economic benefits[534](index=534&type=chunk)[544](index=544&type=chunk) - Key contractual agreements enabling control include: Powers of Attorney, where VIE shareholders appoint the company's subsidiary to exercise shareholder rights, and Equity Interest Pledge Agreements, securing obligations[550](index=550&type=chunk)[556](index=556&type=chunk)[558](index=558&type=chunk) - Economic benefits are transferred through an Exclusive Business Cooperation Agreement, granting the company's subsidiary exclusive rights to provide services to the VIE in exchange for service fees[551](index=551&type=chunk)[559](index=559&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=118&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section provides management's discussion and analysis of the company's financial condition and results of operations, including key operational factors, loan performance, and segment-wise financial results - Consolidated Results of Operations Summary | Metric (RMB in thousands) | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Net Revenue** | 3,434,620 | 4,895,633 | 5,805,901 | | **Income from Operations** | 1,471,864 | 2,594,782 | 1,647,064 | | **Net Income** | 1,194,871 | 2,080,197 | 1,582,299 | - Net Revenue by Segment (2024) | Segment | Net Revenue (RMB Million) | % of Total | | :--- | :--- | :--- | | Financial services business | 3,473.1 | 59.9% | | Consumption & lifestyle business and others | 1,924.4 | 33.1% | | Insurance brokerage business | 408.4 | 7.0% | | **Total** | **5,805.9** | **100.0%** | - Net revenue increased by **18.6%** in 2024, driven by growth in loan facilitation and guarantee services, while net income decreased from **RMB 2,080.2 million** in 2023 to **RMB 1,582.3 million** in 2024 due to increased operating costs and contingent liability provisions[636](index=636&type=chunk)[637](index=637&type=chunk)[646](index=646&type=chunk) - Provision for contingent liabilities surged from **RMB 27.0 million** in 2023 to **RMB 869.3 million (US$119.1 million)** in 2024, attributed to the growing volume of loans facilitated under the company's risk-taking model[642](index=642&type=chunk) - Delinquency Rates for Loans (as of Dec 31) | Year | 1-30 days | 31-60 days | 61-90 days | | :--- | :--- | :--- | :--- | | 2022 | 1.7% | 1.2% | 1.1% | | 2023 | 2.0% | 1.4% | 1.2% | | 2024 | 1.6% | 1.2% | 1.1% | [Item 6. Directors, Senior Management and Employees](index=145&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section details the company's leadership, workforce, and compensation, including share incentive plans and the principal shareholder, CreditEase - Mr. Ning Tang is the founder, Executive Chairman, and Chief Executive Officer of the company, also serving as founder, chairman, and CEO of the parent company, CreditEase[726](index=726&type=chunk) - In 2024, the aggregate cash compensation paid to directors and executive officers was approximately **RMB 10.1 million (US$1.4 million)**[737](index=737&type=chunk) - Employee Breakdown by Function (as of Dec 31, 2024) | Function | Number of Employees | % of Total | | :--- | :--- | :--- | | Sales and Marketing | 404 | 42.6% | | Technology | 234 | 24.7% | | General and Administrative | 130 | 13.7% | | Operations | 117 | 12.3% | | Risk Management | 38 | 4.0% | | Product Development | 26 | 2.7% | | **Total** | **949** | **100.0%** | - As of March 31, 2025, CreditEase Holdings (Cayman) Limited beneficially owned **143,421,412** ordinary shares, representing **83.0%** of the total outstanding shares[772](index=772&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=153&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details the company's relationship with its major shareholder, CreditEase, summarizing key agreements and quantifying transactions with CreditEase affiliates - The company has a Second Amended and Restated Non-competition Agreement with CreditEase, effective until at least 2035, defining non-competing business areas[796](index=796&type=chunk)[797](index=797&type=chunk) - Transactions with CreditEase Affiliates (RMB in thousands) | Transaction Type | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Costs/Expenses from CreditEase** | 450,985 | 396,913 | 565,051 | | **Revenue from CreditEase** | 411,010 | 141,595 | 32,192 | - The company provided loans to CreditEase affiliates amounting to **RMB 1,100.0 million** in 2024[801](index=801&type=chunk) [Item 8. Financial Information](index=158&type=section&id=Item%208.%20Financial%20Information) This section refers to the consolidated financial statements and details the company's amended semi-annual dividend policy, which commenced from the first half of 2024 - On August 14, 2024, the board approved an amended dividend policy to pay semi-annual dividends equivalent to no less than **10%** of anticipated net income after tax, starting from H1 2024[808](index=808&type=chunk) - A cash dividend of **US$0.1 per ordinary share (US$0.2 per ADS)** was paid on October 15, 2024, to shareholders of record as of September 30, 2024[808](index=808&type=chunk) [Item 9. The Offer and Listing](index=159&type=section&id=Item%209.%20The%20Offer%20and%20Listing) This section confirms the company's American Depositary Shares (ADSs) have been listed and traded on the New York Stock Exchange (NYSE) under the ticker symbol "YRD" since December 18, 2015 - The company's ADSs are listed on the NYSE under the symbol "YRD" since December 18, 2015[811](index=811&type=chunk)[813](index=813&type=chunk) [Item 10. Additional Information](index=160&type=section&id=Item%2010.%20Additional%20Information) This section provides supplementary details, including the company's corporate governance under Cayman Islands law and an extensive analysis of tax implications for investors - The company is an exempted company with limited liability incorporated under the laws of the Cayman Islands, governed by its memorandum and articles of association and the Companies Act[817](index=817&type=chunk) - Under PRC tax law, dividends paid by the company's PRC subsidiaries to its Hong Kong subsidiary are subject to a **10%** withholding tax, potentially reduced to **5%** under the China-HK tax arrangement[518](index=518&type=chunk) - The company believes it was a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes for its taxable year ended December 31, 2024, which could result in adverse tax consequences for U.S. holders[870](index=870&type=chunk) [Item 11. Quantitative and Qualitative Disclosures about Market Risk](index=171&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to various market risks, primarily foreign exchange risk due to RMB-denominated operations and U.S. dollar-traded ADSs - The company's primary market risk is foreign exchange risk, stemming from RMB-denominated revenues and expenses versus U.S. dollar-reported financial results[899](index=899&type=chunk) - The company has not entered into any hedging transactions to mitigate its exposure to foreign currency exchange risk[902](index=902&type=chunk) [Item 12. Description of Securities Other than Equity Securities](index=172&type=section&id=Item%2012.%20Description%20of%20Securities%20Other%20than%20Equity%20Securities) This section focuses on the company's American Depositary Shares (ADSs), detailing fees payable by holders and depositary reimbursements to the company - Selected Fees Payable by ADS Holders | Service | Fee | | :--- | :--- | | Issuance of ADSs | Up to US$0.05 per ADS | | Cancellation of ADSs | Up to US$0.05 per ADS | | Distribution of cash dividends | Up to US$0.05 per ADS held | - For the year ended December 31, 2024, the company received **US$107 thousand** in reimbursement from the depositary for ADR program-related expenses[912](index=912&type=chunk) Part II [Item 15. Controls and Procedures](index=174&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[921](index=921&type=chunk) - Based on an evaluation against the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2024[922](index=922&type=chunk) [Item 16. Other Information](index=175&type=section&id=Item%2016.%20Other%20Information) This section covers governance, principal accountant fees, share repurchase program details, and the company's comprehensive cybersecurity risk management strategy - Principal Accountant Fees (RMB in thousands) | Year | Audit Fees | | :--- | :--- | | 2023 | 11,613 | | 2024 | 11,513 | - Under its 2022 Share Repurchase Program, the company repurchased a total of **2,165,090 ADSs** in 2024 at an average price of **US$4.85 per ADS**[934](index=934&type=chunk) - The company has implemented a comprehensive cybersecurity risk management strategy, overseen by the board's cybersecurity risk management committee and managed by an internal incident management team[941](index=941&type=chunk)[942](index=942&type=chunk)[947](index=947&type=chunk) Part III [Item 18. Financial Statements](index=179&type=section&id=Item%2018.%20Financial%20Statements) This section contains the full audited consolidated financial statements for Yiren Digital Ltd. for 2022-2024, prepared under U.S. GAAP, including the auditor's report and key financial statements - The independent auditor's report identifies the 'Allowance for current expected credit loss (CECL) on accounts receivable, financing receivable, other receivable, contract assets, guarantee receivable and guarantee liabilities - contingent' as a Critical Audit Matter due to subjective judgment and estimates[967](index=967&type=chunk)[969](index=969&type=chunk) - Consolidated Balance Sheet Highlights (As of Dec 31) | (RMB in thousands) | 2023 | 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 5,791,333 | 3,841,284 | | Total Assets | 10,276,916 | 12,982,696 | | Total Liabilities | 2,191,367 | 3,440,266 | | Total Equity | 8,085,549 | 9,542,430 | - Consolidated Statement of Operations Highlights (Year Ended Dec 31) | (RMB in thousands) | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Net Revenue | 3,434,620 | 4,895,633 | 5,805,901 | | Total operating costs and expenses | (1,962,756) | (2,300,851) | (4,158,837) | | Net Income | 1,194,871 | 2,080,197 | 1,582,299 | - Consolidated Statement of Cash Flows Highlights (Year Ended Dec 31) | (RMB in thousands) | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 1,849,430 | 2,171,013 | 1,424,082 | | Net cash provided by/(used in) investing activities | 52,559 | 100,045 | (3,113,115) | | Net cash used in financing activities | (489,123) | (569,278) | (277,226) | [Item 19. Exhibits](index=179&type=section&id=Item%2019.%20Exhibits) This section lists all exhibits filed as part of the annual report, including corporate documents, share incentive plans, material contracts, VIE agreements, and CEO/CFO certifications - The exhibits include key governance documents, such as the 2020 Share Incentive Plan, the Second Amended and Restated Non-competition Agreement with CreditEase, and various contractual agreements governing the VIEs[953](index=953&type=chunk)[954](index=954&type=chunk)