BEIJING, March 16, 2023 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), a leading digital personal financial management platform in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2022.

Fourth Quarter 2022 and Fiscal Year 2022 Operational Highlights

Holistic Wealth Business

  • Cumulative number of clients served reached 3,138,191 as of December 31, 2022, representing an increase of 1.9% from 3,080,757 as of September 30, 2022 and compared to 2,702,122 as of December 31, 2021.
  • Number of active clients[1] was 535,928 as of December 31, 2022, representing a decrease of 13.7% from 621,137 as of September 30, 2022 and compared to 424,366 as of December 31, 2021. The quarter-over-quarter decline was primarily due to the change of product mix. The decline was partially offset by the rapid growth of customer base on Yiren Select platform.
  • Total client assets[2] was RMB23,372.1 million (US$3,388.6 million) as of December 31, 2022, representing an increase of 2.5% from RMB22,795.8 million as of September 30, 2022 and compared to RMB19,261.0 million as of December 31, 2021.
  • Sales volume of investment products amounted to RMB6,502.1 million (US$942.7 million) in the fourth quarter of 2022, representing an increase of 45.3% from RMB4,476.4 million in the third quarter of 2022 and compared to RMB5,391.8 million in the same period of 2021. The growth was mainly driven by the rapid expansion of our insurance brokerage business. For the fiscal year of 2022, sales volume of investment products reached RMB21,897.0 million (US$3,174.8 million), compared to RMB21,588.6 million in 2021.

Credit-tech Business

  • Total loans facilitated in the fourth quarter of 2022 reached RMB6.8 billion (US$983.5 million), representing an increase of 7.7% from RMB6.3 billion in the third quarter of 2022 and compared to RMB6.2 billion in the fourth quarter of 2021. The growth was mainly due to the strong demand of our small revolving loan products. Total loans facilitated in 2022 reached RMB22.6 billion (US$3.3 billion), compared to RMB23.2 billion. The decline was due to the business transitions, which was largely offset by the strong growth of our consumer loan business post the restructuring.
  • Cumulative number of borrowers served reached 7,277,627 as of December 31, 2022, representing an increase of 4.6% from 6,960,095 as of September 30, 2022 and compared to 6,127,068 as of December 31, 2021.
  • Number of borrowers served in the fourth quarter of 2022 was 862,226, representing an increase of 16.9% from 737,320 in the third quarter of 2022 and compared to 618,131 in the same period of 2021. The increase was driven by the strong demand of our small revolving loan products. Total number of borrowers served in 2022 was 1,606,893, compared to 1,297,046 in 2021.
  • Outstanding balance of performing loans facilitated reached RMB11,259.8 million (US$1,632.5 million) as of December 31, 2022, representing an increase of 5.9% from RMB10,630.4 million as of September 30, 2022 and compared to RMB14,102.3 million as of December 31, 2021.

Consumption-Driven Services

  • Total gross merchandise volume generated through our e-commerce platform and “Yiren Select” channel reached RMB292.1 million (US$42.3 million) in the fourth quarter of 2022. representing an increase of 17.0% from RMB249.6 million in the third quarter of 2022 and compared to RMB61.6 million in the same period of 2021.

“We are pleased to deliver an impressive quarter with robust growth in both revenue and profitability, marking the full success of our business re-structuring and product optimization despite the volatilities of external environment amid the Covid resurgence.” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.

“As we previously projected, our insurance brokerage business continued its strong momentum in the fourth quarter of 2022. Total premium reached more than RMB1.3 billion, representing a 34% increase quarter over quarter and over 50% growth year on year. In the year of 2022, our total premium rocketed by 61% to appropriately RMB4 billion, significantly outperforming the industry average of 4.6% annual growth rate. As of December 31, 2022, Hexiang Insurance Brokers had established approximately 40 offline branches nationwide and offered over 840 insurance products from more than 100 insurers.”

“Regarding credit-tech business, our total loan volume reached RMB6.8 billion in the fourth quarter of 2022, representing an 8% increase quarter over quarter despite the pandemic resurgence and the infection peak post the reopening in November and December. The momentum is mainly driven by our consumer loan business. In this quarter, our small revolving loan took close to 80% of our total loan volume, compared to 65% in the same period of 2021, reflecting a vivid transition of our product mix upon the completion of business restructuring. Loan facilitation of our small revolving loan products reached RMB5.3 billion this quarter, showing a 15% quarterly increase and 32% annual growth. As our domestic consumption starts to recover, we expect the momentum to continue in the coming quarters.”

“We delivered a strong profit of RMB485 million this quarter, increased by a significant 47% year over year and 80% quarter over quarter. For the full year of 2022, total net profit reached  RMB1.2 billion, showing an increase of 16% compared to the prior year despite the impact from the closure of our offline business line that leads to a declined full year revenue. Net profit margin climbed to 35% in 2022 from 23% in 2021, a vivid reflection of our fruitful efforts in optimizing unit economics via business transitions and cost control.” said Ms. Na Mei, Chief Financial Officer of Yiren Digital. “On the balance sheet side, our cash position grew stronger with usable cash reaching RMB5.2 billion, an 11% increase compared to the end of last quarter, paving a solid foundation for us to expand our business and seize any new opportunities in the future.”

Fourth Quarter 2022 Financial Results

Total net revenue in the fourth quarter of 2022 was RMB1,088.1 million (US$157.8 million), representing an increase of 6.6% from RMB1,020.9 million in the same period of 2021. Particularly, revenue from credit-tech business was RMB639.2 million (US$92.7 million) in the fourth quarter of 2022, representing an increase of 3.8% from RMB615.5 million in the same period of 2021. The increase was due to an increase of our small revolving loan products amid strong demand of consumption. Revenue from holistic wealth business was RMB319.8 million (US$46.4 million) in the fourth quarter of 2022, representing a decrease of 14.1% from RMB372.3 million in the fourth quarter of 2021. The decrease was due to the change of product mix.

Sales and marketing expenses in the fourth quarter of 2022 were RMB103.4 million (US$15.0 million), compared to RMB304.1 million in the same period of 2021. The decrease was primarily due to the optimization of cost structure for our offline business.

Origination, servicing and other operating costs in the fourth quarter of 2022 were RMB211.6 million (US$30.7 million), which remained stable compared to RMB216.8 million in the same period of 2021.

General and administrative expenses in the fourth quarter of 2022 were RMB85.3 million (US$12.4 million), compared to RMB119.4 million in the same period of 2021. The decrease was mainly due to the optimization of the Company’s offline business and overall improvement of cost efficiency.

Allowance for contract assets, receivables and others in the fourth quarter of 2022 was RMB55.7 million (US$8.1 million), compared to RMB51.9 million in the same period of 2021. The increase was primarily driven by the increase of loan volume facilitated.

Income tax expense in the fourth quarter of 2022 was RMB159.3 million (US$23.1 million).

Net income in the fourth quarter of 2022 was RMB485.2 million (US$70.4 million), as compared to RMB330.8 million in the same period of 2021. The increase was primarily due to the recovery of business volume and optimization of our business structure. Net income margin increased to 44.6% in the fourth quarter of 2022 from 32.4% in the same period of 2021 due to the improved cost efficiency.

Adjusted EBITDA[3] (non-GAAP) in the fourth quarter of 2022 was RMB654.1 million (US$93.5 million), compared to RMB353.4 million in the same period of 2021.

Basic and diluted income per ADS in the fourth quarter of 2022 were RMB5.4 (US$0.8) and RMB5.4 (US$0.8) respectively, compared to a basic per ADS of RMB3.9 and a diluted per ADS of RMB3.9 in the same period of 2021.

Net cash generated from operating activities in the fourth quarter of 2022 was RMB471.9 million (US$68.4 million), compared to RMB189.4 million in the same period of 2021.

Net cash provided by investing activities in the fourth quarter of 2022 was RMB283.1 million (US$41.1 million), compared to RMB381.9 million in the same period of 2021.

As of December 31, 2022, cash and cash equivalents were RMB4,271.9 million (US$619.4 million), compared to RMB3,613.0 million as of September 30, 2022. As of December 31, 2022, the balance of held-to-maturity investments was RMB2.7 million (US$0.4 million), compared to RMB1.8 million as of September 30, 2022. As of December 31, 2022, the balance of available-for-sale investments was RMB972.7 million (US$141.0 million), compared to RMB1,109.4 million as of September 30, 2022.

Delinquency rates. As of December 31, 2022, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.7%, 1.3% and 1.1% respectively, compared to 0.9%, 1.5% and 1.2% respectively as of December 31, 2021.

Cumulative M3+ net charge–off rates. As December 31, 2022, the cumulative M3+ net charge-off rates for loans originated in 2019, 2020 and 2021 were 11.6%, 8.1% and 6.5% respectively, as compared to 11.7%, 8.0% and 6.1% respectively as of September 30, 2022.

 

[1] Active clients refer to those who have made at least one investment through our holistic wealth ecosystem or have client assets above zero in the past twelve months.

[2] Client assets refer to the outstanding balance of client assets generated through our platforms, where an asset is counted towards the outstanding balance for so long as it continues to be held by the clients on our platforms.

[3] “Adjusted EBITDA” is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of “Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures” and the table captioned “Reconciliation of Adjusted EBITDA” set forth at the end of this press release.

 

Fiscal Year 2022 Financial Results

Total net revenue in 2022 was RMB3,434.6 million (US$498.0 million), compared to RMB4,477.9 million in 2021. Specifically, revenue from credit-tech business in 2022 was RMB1,959.7 million (US$284.1 million), and revenue from holistic wealth business in 2022 was RMB1,172.0 million (US$169.9 million). The decrease in 2022 full year revenue was primarily due to the transition of our business structure.

Sales and marketing expenses in 2022 was RMB574.0 million (US$83.2 million), compared to RMB1,553.3 million in 2021. The decrease was primarily due to the optimization of the Company’s offline business and the improvement of our cost efficiency.

Origination, servicing and other operating costs in 2022 was RMB776.8 million (US$112.6 million), which remained stable compared to RMB760.9 million in 2021.

General and administrative expenses in 2022 was RMB423.7 million (US$61.4 million), compared to RMB506.2 million in 2021. The decrease was primarily due to the optimization of our offline business and the overall improvement of cost efficiency.

Allowance for contract assets, receivables and others in 2022 was RMB188.2 million (US$27.3 million), compared to RMB370.2 million in 2021. The decline was due to the business structure transition and product mix optimization.

Income tax expense in 2022 was RMB300.5 million (US$43.6 million).

Net income in 2022 was RMB1,194.9 million (US$173.2 million), compared to RMB1,033.0 million in 2021. The increase was driven by the resumption of business growth and the optimization of cost structure post business transitions. Net income margin increased to 34.8% in 2022 from 23.1% in 2021 due to the improved cost efficiency and asset quality.

Adjusted EBITDA (non-GAAP) in 2022 was RMB1,570.3 million (US$227.7 million), compared to RMB1,338.9 million in 2021. Adjusted EBITDA margin (non-GAAP) in 2022 was 45.7%, compared to 29.9% in 2021.

Basic and diluted income per ADS in 2022 were RMB13.7 (US$2.0) and RMB13.6 (US$2.0) respectively, compared to a basic per ADS of RMB12.2 and a diluted per ADS of RMB12.1 in 2021.

Net cash generated from operating activities in 2022 was RMB1,849.4 million (US$268.1 million), compared to RMB158.2 million in 2021.

Business Outlook

Based on the Company’s preliminary assessment of business and market conditions, the Company projects the total revenue in the full year of 2023 to be between RMB3.6 billion to RMB4 billion, with net profit margin expected to remain stable.

This is the Company’s current and preliminary view, which is subject to changes and uncertainties.

Conference Call

The Company will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on March 16, 2023 (or 8:00 p.m. Beijing/Hong Kong Time on March 16, 2023).

Participants who wish to join the call should register online in advance of the conference at:
https://s1.c-conf.com/diamondpass/10029325-jd4z98.html

Once registration is completed, participants will receive the dial-in details for the conference call.

Additionally, a live and archived webcast of the conference call will be available at https://edge.media-server.com/mmc/p/2tasepf4

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See “Operating Highlights and Reconciliation of GAAP to Non-GAAP measures” at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8972 to US$1.00, the effective noon buying rate on December 30, 2022, as set forth in the H.10 statistical release of the Federal Reserve Board.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital’s control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital’s ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is a leading digital personal financial management platform in China. The Company provides customized, asset allocation-based holistic wealth solutions to China’s mass affluent population as well as provides retail credit facilitation services to individual borrowers and small business owners.

 

 

 

Unaudited Condensed Consolidated Statements of Operations

 (in thousands, except for share, per share and per ADS data, and percentages)

For the Three Months Ended 

For the Year Ended 

December 31,
2021

September 30,
2022

December 31,
2022

December 31,
2022

December 31,
2021

December 31,
2022

December 31,
2022

RMB

RMB

RMB

USD

RMB

RMB

USD

Net revenue:

Loan facilitation services

410,988

334,162

525,137

76,138

2,105,776

1,362,685

197,571

Post-origination services

49,861

74,433

37,616

5,454

174,255

204,336

29,626

Insurance brokerage services

244,780

189,019

199,027

28,856

755,691

731,797

106,101

Financing services

140,027

54,702

35,940

5,211

524,840

278,783

40,420

Electronic commerce services

33,114

52,954

129,154

18,725

33,114

302,896

43,916

Others

142,170

135,385

161,202

23,372

884,253

554,123

80,339

Total net revenue

1,020,940

840,655

1,088,076

157,756

4,477,929

3,434,620

497,973

Operating costs and expenses:

Sales and marketing

304,114

136,406

103,427

14,995

1,553,344

573,974

83,218

Origination,servicing and other
operating costs

216,751

223,622

211,591

30,678

760,858

776,841

112,631

General and administrative

119,364

109,947

85,259

12,361

506,240

423,718

61,433

Allowance for contract assets,
receivables and others

51,911

35,074

55,747

8,083

370,154

188,223

27,291

Total operating costs and expenses

692,140

505,049

456,024

66,117

3,190,596

1,962,756

284,573

Other (expenses)/income:

Interest (expense)/income, net

(18,056)

(378)

3,439

499

(73,383)

(26,302)

(3,813)

Fair value adjustments related to
Consolidated ABFE

11,720

2,077

(2,962)

(429)

(37,442)

18,900

2,740

Others, net

2,935

3,035

11,991

1,738

26,665

30,921

4,483

Total other (expenses)/income

(3,401)

4,734

12,468

1,808

(84,160)

23,519

3,410

Income before provision for income taxes

325,399

340,340

644,520

93,447

1,203,173

1,495,383

216,810

Income tax (benefit)/expense

(5,366)

70,020

159,285

23,095

170,189

300,512

43,570

Net income

330,765

270,320

485,235

70,352

1,032,984

1,194,871

173,240

Weighted average number of ordinary
shares outstanding, basic

169,967,125

179,409,525

179,211,437

179,211,437

169,029,826

174,695,959

174,695,959

Basic income per share

1.9461

1.5067

2.7076

0.3926

6.1113

6.8397

0.9917

Basic income per ADS

3.8922

3.0134

5.4152

0.7852

12.2226

13.6794

1.9834

Weighted average number of ordinary
shares outstanding, diluted

171,171,951

179,841,065

179,628,555

179,628,555

170,590,203

175,391,332

175,391,332

Diluted income per share

1.9324

1.5031

2.7013

0.3917

6.0554

6.8126

0.9877

Diluted income per ADS

3.8648

3.0062

5.4026

0.7834

12.1108

13.6252

1.9754

Unaudited Condensed Consolidated
Cash Flow Data

Net cash generated from operating
activities

189,377

342,888

471,890

68,418

158,192

1,849,430

268,142

Net cash  provided by/(used in) investing
activities

381,870

(835,064)

283,145

41,052

(346,507)

52,559

7,620

Net cash (used in)/provided by financing
activities

(45,831)

(276,198)

(54,551)

(7,909)

427,446

(489,123)

(70,916)

Effect of foreign exchange rate changes

(283)

2,284

(1,107)

(160)

(936)

2,485

360

Net increase/(decrease) in cash, cash
equivalents and restricted cash

525,133

(766,090)

699,377

101,401

238,195

1,415,351

205,206

Cash, cash equivalents and restricted cash,
beginning of period

2,420,210

4,427,408

3,661,318

530,840

2,707,148

2,945,344

427,035

Cash, cash equivalents and restricted cash,
end of period

2,945,343

3,661,318

4,360,695

632,241

2,945,343

4,360,695

632,241

 

 

 

Unaudited Condensed Consolidated Balance Sheets

 (in thousands)

As of

December 31,
2021

September 30,
2022

December 31,
2022

December 31,
2022

RMB

RMB

RMB

USD

        Cash and cash equivalents

2,864,543

3,612,972

4,271,899

619,367

        Restricted cash

80,800

48,346

88,796

12,874

        Accounts receivable

305,018

274,623

221,004

32,044

        Contract assets, net

1,105,905

502,936

626,739

90,869

        Contract cost

9,959

1,610

787

114

        Prepaid expenses and other assets

352,015

361,258

321,411

46,600

        Loans at fair value

73,734

11,109

54,049

7,836

        Financing receivables

1,697,962

713,411

514,388

74,579

        Amounts due from related parties

879,256

1,124,738

1,266,232

183,586

        Held-to-maturity investments

2,200

1,800

2,700

391

        Available-for-sale investments

177,360

1,109,408

972,738

141,034

        Property, equipment and software, net

102,548

82,184

77,256

11,201

        Deferred tax assets

7,388

102,934

84,187

12,206

        Right-of-use assets

80,752

39,133

33,909

4,916

Total assets

7,739,440

7,986,462

8,536,095

1,237,617

        Accounts payable

19,065

31,711

14,144

2,050

        Amounts due to related parties

434,127

244,185

227,724

33,017

        Deferred revenue

12,379

526

65,539

9,502

        Payable to investors at fair value

50,686

39,598

–

–

        Accrued expenses and other liabilities

1,182,783

1,234,738

1,315,006

190,658

        Secured borrowings

1,028,600

767,900

767,900

111,335

        Refund liability

5,732

351

–

–

        Deferred tax liabilities

112,535

78,819

79,740

11,561

        Lease liabilities

72,101

40,968

35,229

5,108

Total liabilities

2,918,008

2,438,796

2,505,282

363,231

        Ordinary shares

123

129

129

19

        Additional paid-in capital

5,100,486

5,158,676

5,160,783

748,243

        Treasury stock

(42,897)

(42,897)

(46,734)

(6,776)

        Accumulated other comprehensive
income

11,553

7,509

7,765

1,126

        Accumulated deficit

(247,833)

424,249

908,870

131,774

Total equity

4,821,432

5,547,666

6,030,813

874,386

Total liabilities and equity

7,739,440

7,986,462

8,536,095

1,237,617

 

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except for number of  borrowers, number of investors and percentages)

For the Three Months Ended 

For the Year Ended 

December 31,
2021

September 30,
2022

December 31,
2022

December 31,
2022

December 31,
2021

December 31,
2022

December 31,
2022

RMB

RMB

RMB

USD

RMB

RMB

USD

Operating Highlights

Amount of investment in current investment
products

5,391,760

4,476,390

6,502,061

942,710

21,588,645

21,897,031

3,174,771

Number of investors in current investment
products

144,987

176,787

107,692

107,692

409,281

506,310

506,310

Amount of loans facilitated under loan
facilitation model

6,170,158

6,298,522

6,783,523

983,518

23,195,224

22,623,101

3,280,041

Number of borrowers

618,131

737,320

862,226

862,226

1,297,046

1,606,893

1,606,893

Remaining principal of performing loans
facilitated under loan facilitation model

14,102,279

10,630,352

11,259,763

1,632,512

14,102,279

11,259,763

1,632,512

Gross merchandise volume 

61,619

249,624

292,086

42,348

61,619

687,848

99,729

Segment Information

Holistic Wealth:

Revenue

372,304

294,332

319,755

46,360

1,260,513

1,171,992

169,923

Sales and marketing expenses

75,842

46,698

44,661

6,475

199,336

187,141

27,133

Origination,servicing and other operating costs

156,243

165,605

157,342

22,812

598,606

561,080

81,349

Consumer credit:

Revenue

615,522

493,369

639,167

92,671

3,184,302

1,959,732

284,134

Sales and marketing expenses

227,508

88,714

58,016

8,412

1,353,244

383,950

55,668

Origination,servicing and other operating costs

53,396

39,951

38,085

5,522

155,140

151,539

21,971

Others:

Revenue

33,114

52,954

129,154

18,725

33,114

302,896

43,916

Sales and marketing expenses

764

994

750

108

764

2,883

417

Origination,servicing and other operating costs

7,112

18,066

16,164

2,344

7,112

64,222

9,311

Reconciliation of Adjusted EBITDA

Net income

330,765

270,320

485,235

70,352

1,032,984

1,194,871

173,240

Interest expense/(income), net

18,056

378

(3,439)

(499)

73,383

26,302

3,813

Income (benefit)/tax expense

(5,366)

70,020

159,285

23,095

170,189

300,512

43,570

Depreciation and amortization

7,466

8,514

2,537

368

43,236

26,430

3,832

Share-based compensation

2,497

15,760

1,494

217

19,089

22,136

3,209

Adjusted EBITDA

353,418

364,992

645,112

93,533

1,338,881

1,570,251

227,664

Adjusted EBITDA margin

34.6 %

43.4 %

59.3 %

59.3 %

29.9 %

45.7 %

45.7 %

 

 

 

Delinquency Rates (Loan Facilitation Model)

15-29 days

30-59 days

60-89 days

All Loans

December 31, 2019

0.8 %

1.3 %

1.0 %

December 31, 2020

0.5 %

0.7 %

0.6 %

December 31, 2021

0.9 %

1.5 %

1.2 %

March 31, 2022

0.9 %

2.0 %

1.9 %

June 30, 2022

0.6 %

1.4 %

1.5 %

Septempber 30, 2022

0.7 %

1.1 %

1.0 %

December 31, 2022

0.7 %

1.3 %

1.1 %

Online Channels

December 31, 2019

1.0 %

2.1 %

1.6 %

December 31, 2020

0.6 %

1.0 %

1.1 %

December 31, 2021

0.8 %

1.3 %

1.1 %

March 31, 2022

0.7 %

1.5 %

1.3 %

June 30, 2022

0.6 %

1.1 %

1.2 %

Septempber 30, 2022

0.6 %

0.9 %

0.8 %

December 31, 2022

0.7 %

1.1 %

0.9 %

Offline Channels

December 31, 2019

0.7 %

0.9 %

0.7 %

December 31, 2020

0.4 %

0.6 %

0.4 %

December 31, 2021

1.0 %

1.8 %

1.4 %

March 31, 2022

1.1 %

2.7 %

2.9 %

June 30, 2022

0.8 %

2.0 %

2.3 %

Septempber 30, 2022

1.3 %

1.9 %

1.9 %

December 31, 2022

1.2 %

2.2 %

2.3 %

 

 

 

Net Charge-Off Rate (Loan Facilitation Model)

Loan
Issued
Period

Amount of Loans
Facilitated
During the Period

Accumulated M3+ Net
Charge-Off
as of December 31,
2022

Total Net Charge-Off
Rate
as of December 31,
2022

(in RMB thousands)

(in RMB thousands)

2019

3,431,443

398,602

11.6 %

2020

9,614,819

780,798

8.1 %

2021

23,195,224

1,513,766

6.5 %

2022Q1-Q3

15,839,577

316,444

2.0 %

 

 

 

M3+ Net Charge-Off Rate (Loan Facilitation Model)

Loan
Issued
Period

Month on Book

4

7

10

13

16

19

22

25

28

31

34

2019Q1

0.0 %

0.8 %

2.0 %

3.4 %

5.3 %

5.9 %

6.3 %

6.3 %

6.3 %

6.3 %

6.3 %

2019Q2

0.1 %

1.5 %

4.5 %

7.5 %

8.8 %

9.2 %

9.9 %

10.3 %

10.6 %

10.6 %

10.6 %

2019Q3

0.2 %

2.9 %

6.8 %

9.0 %

10.4 %

12.0 %

13.2 %

13.8 %

14.4 %

14.6 %

14.6 %

2019Q4

0.4 %

3.1 %

4.9 %

6.3 %

7.2 %

7.9 %

8.4 %

8.9 %

9.5 %

9.8 %

9.8 %

2020Q1

0.6 %

2.3 %

4.1 %

5.2 %

6.0 %

6.2 %

6.6 %

7.2 %

7.7 %

7.9 %

2020Q2

0.5 %

2.5 %

4.2 %

5.3 %

6.1 %

6.7 %

7.5 %

8.1 %

8.2 %

2020Q3

1.1 %

3.3 %

5.1 %

6.3 %

7.1 %

8.1 %

8.7 %

8.8 %

2020Q4

0.3 %

1.8 %

3.2 %

4.6 %

6.0 %

7.0 %

7.4 %

2021Q1

0.4 %

2.3 %

3.9 %

5.5 %

6.6 %

6.9 %

2021Q2

0.4 %

2.4 %

4.5 %

5.9 %

6.4 %

2021Q3

0.5 %

3.1 %

5.0 %

5.9 %

2021Q4

0.6 %

3.2 %

4.6 %

2022Q1

0.6 %

2.6 %

2022Q2

0.4 %