Core Viewpoint - Yiren Digital Ltd. has been recognized for its exceptional ESG performance, ranking in the top 17% globally in the Diversified Financial Services and Capital Markets sector according to the 2024 S&P Global Corporate Sustainability Assessment [1][3] ESG Performance and Achievements - Yiren Digital demonstrated significant advancements in information security, business ethics, risk management, and corporate governance, reflecting its commitment to sustainable development [2] - The company released its first ESG Report, outlining its progress in 2023 and setting a target to reduce the average Power Usage Effectiveness (PUE) of its leased data centers to 1.3 by 2024 [4] - Yiren Digital introduced over 100 environmental protection indicators into its risk control model to identify potential environmental risks of funding applicants, directing capital towards green initiatives [5] Integration of ESG Principles - The company has integrated ESG principles into its corporate strategy and daily operations, focusing on long-term value creation and social responsibility [6] - Yiren Digital leverages AI-powered models to drive growth and transform the industry while promoting environmental sustainability through innovative products [7] Governance and Compliance - A robust ESG governance framework is in place, ensuring compliance with local laws and regulations while strengthening corporate governance systems [8] Recognition and Awards - Yiren Digital has received multiple accolades for its ESG efforts, including being named "Outstanding ESG Enterprise" at the 2024 Global Zhejiang Entrepreneurs ESG Conference and recognized as an "ESG Innovation Pioneer Enterprise" [9]

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 ...