Yiren Digital Reports First Quarter 2024 Financial Results

Core Viewpoint Yiren Digital Ltd. reported strong financial results for the first quarter of 2024, showcasing significant growth in revenue and operational metrics despite seasonal challenges. The company continues to enhance its AI capabilities and expand its service offerings in financial and lifestyle sectors. Financial Services Business - Total loans facilitated in Q1 2024 reached RMB 11.9 billion (US$ 1.6 billion), up 2.3% from RMB 11.6 billion in Q4 2023 and significantly higher than RMB 6.4 billion in Q1 2023 [2] - Cumulative number of borrowers served reached 9,978,280, a 7.3% increase from 9,295,666 as of December 31, 2023, and up from 7,582,435 as of March 31, 2023 [2] - Outstanding balance of performing loans was RMB 20.2 billion (US$ 2.8 billion), reflecting a 10.4% increase from RMB 18.3 billion as of December 31, 2023, and up from RMB 11.1 billion as of March 31, 2023 [2] Insurance Brokerage Business - Cumulative number of insurance clients served reached 1,343,660, a 4.7% increase from 1,283,102 as of December 31, 2023, and up from 1,007,238 as of March 31, 2023 [3] - Gross written premiums in Q1 2024 were RMB 912.4 million (US$ 126.4 million), down 24.5% from RMB 1,208.7 million in Q4 2023, primarily due to a decline in life insurance volume from regulatory changes [3] Consumption and Lifestyle Business - Total gross merchandise volume through the e-commerce platform reached RMB 625.1 million (US$ 86.6 million) in Q1 2024, a decrease of 9.8% from RMB 692.7 million in Q4 2023, attributed to seasonal factors [4] Financial Performance - Total net revenue for Q1 2024 was RMB 1,378.1 million (US$ 190.9 million), a 39.7% increase from RMB 986.3 million in Q1 2023 [7] - Revenue from financial services was RMB 738.1 million (US$ 102.2 million), up 52.5% from RMB 483.9 million in the same period of 2023 [7] - Net income for Q1 2024 was RMB 485.9 million (US$ 67.3 million), compared to RMB 427.2 million in Q1 2023, driven by growth in financial services and lifestyle segments [10] Operational Efficiency - The company generated approximately RMB 632 million in net cash from operations during Q1 2024, reflecting a 62% increase from the previous year [5] - Cash and equivalents stood at RMB 5.9 billion (US$ 817.7 million) as of March 31, 2024, with a total of USD 9.5 million allocated for share repurchase by the same date [6] Business Outlook - The company projects total revenue for Q2 2024 to be between RMB 1.4 billion to RMB 1.6 billion, maintaining a healthy net profit margin [13] Recent Developments - A new ESG (Environmental, Social, and Governance) committee was established to enhance governance and sustainability efforts [17][18] - The board of directors saw a change with the appointment of Mrs. Shuo Zheng, who brings extensive experience in financial control and regulatory compliance [14][15]