Yiren Digital Reports First Quarter 2025 Financial Results

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].