Yiren Digital Reports Second Quarter 2024 Financial Results

BEIJING,Aug. 20,2024 -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"),an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China,today announced its unaudited financial results for the quarter ended June 30,2024.

Second Quarter 2024 Operational Highlights

Financial Services Business

Total loans facilitated in the second quarter of 2024 reached RMB12.9 billion (US$1.8 billion),representing an increase of 8.6% from RMB11.9 billion in the first quarter of 2024 and compared to RMB8.2 billion in the same period of 2023.

Cumulative number of borrowers served reached 10,807,497 as of June 30,2024,representing an increase of 8.3% from 9,978,280 as of March 31,and compared to 8,002,372 as of June 30,2023.

Number of borrowers served in the second quarter of 2024 was 1,491,756,representing an increase of 10.3% from 1,352,200 in the first quarter of 2024 and compared to 1,013,972 in the same period of 2023. The increase was due to our ongoing effort in customer acquisition and user experience enhancement.

Outstanding balance of performing loans facilitated reached RMB21.8 billion (US$3.0 billion) as of June 30,representing an increase of 8.3% from RMB20.2 billion as of March 31,2024 and compared to RMB12.8 billion as of June 30,2023.

Insurance Brokerage Business

Cumulative number of insurance clients served reached 1,410,158 as of June 30,representing an increase of 4.9% from 1,343,660 as of March 31,and compared to 1,133,069 as of June 30,2023.

Number of insurance clients served in the second quarter of 2024 was 88,766,representing an increase of 20.5% from 73,687 in the first quarter of 2024 and compared to 135,449 in the same period of 2023. The increase was primarily due tothe continued growth of our property insurance business.

Gross written premiums in the second quarter of 2024 were RMB1,060.9 million (US$146.0 million),representing an increase of 16.3% from RMB912.4 million in the first quarter of 2024 and compared to RMB1,332.5 million in the same period of 2023. The increase was mainly attributed to the continued expansion of our property insurance business.

Consumption and Lifestyle Business

Total gross merchandise volume generated through our e-commerce platform and "Yiren Select" channel reached RMB554.6 million (US$76.3 million) in the second quarter of 2024,representing a decrease of 11.3% from RMB625.1 million in the first quarter of 2024 and compared to RMB395.8 million in the same period of 2023. The decrease was mainly due to the already high penetration of our products and services within the existing customer pool,along with our strategic scale-back in product offerings as we shift our focus to upgrading customer segmentation.

"Despite the evolving market environment,we are pleased to report another solid quarter with strong unit economics,reflecting the resilience of our business structure and operational strategies,as well as our commitment to quality growth over mere expansion." said Mr. Ning Tang,Chairman and Chief Executive Officer.

"Our continued investments in AI and the seamless integration of technological innovations into our operations have fostered dual growth in both technological advancements and operational efficiency. Our strategic direction positions us well to evolve into a leading AI-driven platform,paving the way for groundbreaking solutions and setting new industry standards."

"In the second quarter of 2024,our total revenue reached RMB 1.5 billion,representing 13% increase year-over-year. We generate approximately RMB 369 million net cash from operation in this quarter,remaining healthy and strong." Ms. Na Mei,Chief Financial Officer commented. "On the balance sheet side,our balance sheet remained strong with RMB 5.5 billion in cash and cash equivalents as of the end of this quarter and we are exploring diversified ways to enhance our shareholder returns. Through both our cash dividend policy and share buybacks,we aim to reward our shareholders for their long-term trust and support,while also boosting market confidence."

Second Quarter 2024 Financial Results

Total net revenue in the second quarter of 2024 was RMB1,496.5 million (US$205.9 million),representing an increase of 13.0% from RMB1,324.2 million in the second quarter of 2023. Particularly,in the second quarter of 2024,revenue from financial services business was RMB851.0 million (US$117.1 million),representing an increase of 46.2% from RMB582.0 million in the same period of 2023. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB91.5 million (US$12.6 million),representing a decrease of 77.4% from RMB404.7 million in the second quarter of 2023. The decrease was primarily driven by a decline in life insurance sales,resulting from product modifications mandated by new regulations,along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB554.0 million (US$76.2 million),representing an increase of 64.1% from RMB337.5 million in the second quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the second quarter of 2024,the growth rate is expected to moderate.

Sales and marketing expenses in the second quarter of 2024 were RMB285.1 million (US$39.2 million),compared to RMB148.9 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new,high-caliber customers while optimizing our customer composition.

Origination,servicing and other operating costs in the second quarter of 2024 were RMB246.5million (US$33.9 million),compared to RMB346.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services.

Research and development expenses[1] in the second quarter of 2024 were RMB55.8 million (US$7.7 million),compared to RMB33.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.

General and administrative expenses in the second quarter of 2024 were RMB68.7 million (US$9.4 million),compared to RMB63.7 million in the same period of 2023. The increase was primarily due to personnel adjustments.

Allowance for contract assets,receivables and others in the second quarter of 2024 was RMB123.3 million (US$17.0 million),compared to RMB48.9 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the more stringent risk estimates in response to the evolving external credit environment.

Provision for contingent liabilities in the second quarter of 2024 was RMB278.9 million (US$38.4 million),compared to RMB12.0 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model[2].

Income tax expense in the second quarter of 2024 was RMB92.0 million (US$12.7 million).

Net income in the second quarter of 2024 was RMB409.5 million (US$56.4 million),as compared to RMB527.3 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model,resulting in substantial upfront provisions required by the current accounting principles.

Adjusted EBITDA[3] (non-GAAP) in the second quarter of 2024 was RMB481.1 million (US$66.2 million),compared to RMB661.7 million in the same period of 2023.

Basic and diluted income per ADS in the second quarter of 2024 were RMB4.7 (US$0.7) and RMB4.7 (US$0.6) respectively,compared to a basic income per ADS of RMB6.0 and a diluted income per ADS of RMB5.9 in the same period of 2023.

Net cash generated from operating activities in the second quarter of 2024 was RMB368.9 million (US$50.8 million),compared to RMB718.1 million in the same period of 2023.

Net cash used in investing activities in the second quarter of 2024 was RMB536.9 million (US$73.9 million),compared to RMB20.0 million provided by investing activities in the same period of 2023.

Net cash used in financing activities in the second quarter of 2024 was RMB125.9 million (US$17.3 million),compared to RMB6.1 million in the same period of 2023.

As of June 30,cash and cash equivalents were RMB5,496.9 million (US$756.4 million),compared to RMB5,904.0 million as of March 31,2024. As of June 30,the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million),decreased 51.2% from March 31,the balance of available-for-sale investments was RMB329.8 million (US$45.4 million),compared to RMB379.5 million as of March 31,the balance of trading securities was RMB83.9 million (US$11.5 million),compared to RMB78.0 million as of March 31,2024.

Delinquency rates. As of June 30,the delinquency rates for loans that are past due for 15-29 days,30-59 days and 60-89 days were 0.8%,1.4% and 1.6%,respectively,compared to 0.9%,1.6% and 1.4%,as of March 31,2024.

Cumulative M3+ net charge-off rates. As of June 30,the cumulative M3+ net charge-off rates for loans originated in 2021,2022 and 2023 were 6.1%,4.6% and 5.9%,as compared to 6.3%,4.7% and 3.9%,2024.

Management Change

The Company announces that Ms. Na Mei will resign from her position as Chief Financial Officer due to personal reasons effective as of the close of business on August 20,2024 New York time. Ms.Mei will continue to serve CreditEase,Yiren Digital's parent company,and assist in ensuring a smooth transition to the new CFO. The board of directors of the Company (the "Board") extends its gratitude to Ms. Mei for her dedicated service and significant contributions during her tenure.

Following this development,the Board has appointed Mr. Yuning Feng as the new Chief Financial Officer to succeed Ms. Mei. Mr. Feng brings extensive experience and expertise in investment banking and financial control to the role,and the Board is confident in his ability to lead the Company's financial operations with distinction.

Mr. Feng possesses over a decade of experience in venture capital investment,investment banking and financial control. Before joining Yiren Digital,he was a partner at CE Innovation Capital,from 2015 to 2018 and from 2021 to 2024. In this role,he led investments in fintech,enterprise solutions,and AI sectors,managed investment portfolios,and contributed to fundraising and fund management. From 2018 to 2021,Mr. Feng served as an investment banker at China Renaissance,specializing in corporate finance for fintech and enterprise solutions companies,where he established strong connections with a variety of companies and investors. Earlier in his career,Mr. Feng was a financial controller at Goldman Sachs and UBS from 2008 to 2012. He received a bachelor's degree from Beijing Foreign Studies University in 2008 and an MBA from the University of Warwick in 2014.

Dividend Policy

The Company is pleased to announce that the Board has approved a semi-annual dividend policy,reflecting our commitment to delivering value to our shareholders. Pursuant to the policy,the Board plans to declare semi-annual dividends at an amount equivalent to no less than 10% of the Company's anticipated net income after tax in each half year commencing from the first half of 2024. The determination to declare and pay such semi-annual dividends and the amount of dividends in any particular half year will be made at the discretion of the Board and will be based upon the Company's operations,earnings,cash flow,financial condition and other relevant factors that the Board may deem appropriate.

The cash dividend for the first half of 2024,a payment of US$0.2 per American depositary share (the "ADS"),each representing two ordinary shares of the Company,par value US$0.0001 per share,is expected to be paid on or about October 15,to holders of the Company's ordinary shares and ADSs of record as of the close of business on September 30,Hong Kong time and New York time,respectively.

Update on Share Repurchase

In September 2022,the Board authorized a share repurchase program under which the Company may repurchase up to US$20 million worth of its ADSs. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions,privately negotiated transactions or other legally permissible means as determined by the management.

In the second quarter of 2024,the Company allocated US$4.0 million to repurchase shares in the public market. As of June 30,the Company had in aggregate purchased approximately 4.3 million ADSs in the open market for a total amount of approximately US$13.5 million (exclusive of commissions) under the 2022 share repurchase program.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions,the Company projects the total revenue in the third quarter of 2024 to be between RMB1.4 billion to RMB1.5 billion,with a healthy net profit margin.

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

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 RMB7.2672 to US$1.00,the effective noon buying rate on June 28,as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on August 20,2024 (or 8:00 p.m. Beijing/Hong Kong Time on August 20,2024).

Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10191859/fd4b40278f

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://event.choruscall.com/mediaframe/webcast.html?webcastid=T01PiHJw

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 the 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 an advanced,AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Our mission is to elevate customers' financial well-being and enhance their quality of life by delivering digital financial services,tailor-made insurance solutions,and premium lifestyle services. We support clients at various growth stages,addressing financing needs arising from consumption and production activities,while aiming to augment the overall well-being and security of individuals,families,and businesses.

[1] Research and development expenses have been segregated from general and administrative expenses and restated for historical periods to better reflect the Company's cost and expense structure.

[2] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.

[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 Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

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 Six Months Ended

June 30,

2023

March 31,

2024

June 30,

2023

June 30,

2024

RMB

RMB

RMB

USD

RMB

RMB

USD

Net revenue:

Loan facilitation services

514,353

676,295

695,532

95,708

931,518

1,371,827

188,770

Post-origination services

5,273

1,772

1,290

178

11,589

3,062

421

Insurance brokerage services

404,695

124,926

91,526

12,594

601,053

216,452

29,785

Financing services

14,896

10,666

19,574

2,693

37,473

30,240

4,161

Electronic commerce services

287,725

502,936

523,641

72,055

530,583

1,026,577

141,262

Guarantee services

6,343

16,853

68,934

9,486

12,102

85,787

11,805

Others

90,921

44,636

96,039

13,216

186,231

140,675

19,357

Total net revenue

1,324,206

1,378,084

1,496,536

205,930

2,310,549

2,874,620

395,561

Operating costs and expenses:

Sales and marketing

148,947

277,223

285,101

39,231

255,159

562,324

77,378

Origination,servicing and other operating costs

346,367

233,270

246,542

33,925

546,112

479,812

66,024

Research and development

33,018

40,521

55,812

7,680

62,187

96,333

13,256

General and administrative

63,723

83,674

68,670

9,449

127,104

152,344

20,963

Allowance for contract assets,receivables and others

48,865

102,334

123,285

16,965

88,271

225,619

31,047

Provision for contingent liabilities

11,975

67,258

278,925

38,382

17,474

346,183

47,636

Total operating costs and expenses

652,895

804,280

1,058,335

145,632

1,096,307

1,862,615

256,304

Other (expenses)/income:

Interest income,net

10,535

27,713

24,668

3,394

25,054

52,381

7,208

Fair value adjustments related to Consolidated ABFE

(17,470)

15,468

38,706

5,326

(28,673)

54,174

7,455

Others,net

2,730

677

(11)

(1)

6,319

666

91

Total other (expenses)/income

(4,205)

43,858

63,363

8,719

2,700

107,221

14,754

Income before provision for income taxes

667,106

617,662

501,564

69,017

1,216,942

1,119,226

154,011

Income tax expense

139,758

131,779

92,036

12,664

262,428

223,815

30,798

Net income

527,348

485,883

409,528

56,353

954,514

895,411

123,213

Weighted average number of ordinary shares outstanding,

basic

176,929,176

174,282,443

172,831,722

172,722

177,353,262

173,557,082

173,082

Basic income per share

2.9806

2.7879

2.3695

0.3261

5.3820

5.1592

0.7099

Basic income per ADS

5.9612

5.5758

4.7390

0.6522

10.7640

10.3184

1.4198

Weighted average number of ordinary shares outstanding,

diluted

179,124,032

176,202,571

174,711,554

174,554

179,650,148

175,457,062

175,062

Diluted income per share

2.9440

2.7575

2.3440

0.3225

5.3132

5.1033

0.7022

Diluted income per ADS

5.8880

5.5150

4.6880

0.6450

10.6264

10.2066

1.4044

Unaudited Condensed Consolidated Cash Flow Data

Net cash generated from operating activities

718,058

631,743

368,908

50,763

1,108,365

1,000,651

137,693

Net cash (used in)/provided by investing activities

(19,988)

(683,697)

(536,883)

(73,878)

754,295

(1,220,580)

(167,957)

Net cash used in financing activities

(6,120)

(14,774)

(125,884)

(17,322)

(398,951)

(140,658)

(19,355)

Effect of foreign exchange rate changes

329

1,340

(896)

(123)

148

444

61

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

restricted cash

692,279

(65,388)

(294,755)

(40,560)

1,463,857

(360,143)

(49,558)

Cash,cash equivalents and restricted cash,beginning of

period

5,132,273

6,604

5,993,216

824,694

4,360,695

6,604

833,692

Cash,end of period

5,824,552

5,216

5,698,461

784,134

5,134

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of

December 31,

2024

RMB

RMB

RMB

USD

Cash and cash equivalents

5,791,333

5,903,995

5,932

756,403

Restricted cash

267,271

89,221

201,529

27,731

Trading securities

76,053

77,967

83,889

11,544

Accounts receivable

499,027

610,745

654,698

90,089

Guarantee receivable

2,890

36,787

260,759

35,882

Contract assets,net

978,051

994,116

962,482

132,442

Contract cost

32

18

206

28

Prepaid expenses and other assets

423,621

1,273,040

1,662,654

228,789

Loans at fair value

677,835

655,058

473,311

65,130

Financing receivables

116,164

73,383

30,501

4,197

Amounts due from related parties

820,181

726,991

1,509,651

207,735

Held-to-maturity investments

10,420

10,420

5,087

700

Available-for-sale investments

438,084

379,489

329,829

45,386

Equity investments

-

-

2,500

344

Property,equipment and software,net

79,158

77,777

77,970

10,729

Deferred tax assets

73,414

59,260

44,309

6,097

Right-of-use assets

23,382

18,758

19,462

2,678

Total assets

10,276,916

10,987,025

11,815,769

1,625,904

Accounts payable

30,902

41,484

43,710

6,015

Amounts due to related parties

14,414

1,122

2,485

342

Guarantee liabilities-stand ready

8,802

40,583

278,656

38,344

Guarantee liabilities-contingent

28,351

81,921

336,190

46,261

Deferred revenue

54,044

46,807

38,843

5,345

Payable to investors at fair value

445,762

445,762

350,000

48,162

Accrued expenses and other liabilities

1,369

1,595,052

1,727,182

237,668

Deferred tax liabilities

122,075

114,222

55,520

7,640

Lease liabilities

23,648

19,025

19,280

2,653

Total liabilities

2,191,367

2,385,978

2,851,866

392,430

Ordinary shares

130

130

130

18

Additional paid-in capital

5,171,232

5,172,942

5,175,653

712,194

Treasury stock

(94,851)

(109,444)

(139,380)

(19,179)

Accumulated other comprehensive

income

23,669

66,671

47,798

6,576

Retained earnings

2,985,369

3,470,748

3,879,702

533,865

Total equity

8,085,549

8,601,047

8,963,903

1,233,474

Total liabilities and equity

10,904

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands,except for number of borrowers,number of insurance clients,cumulative number of insurance clients and percentages)

For the Three Months Ended

For the Six Months Ended

June 30,

2024

June 30,

2024

RMB

RMB

RMB

USD

RMB

RMB

USD

Operating Highlights

Amount of loans facilitated

8,156,201

11,910,367

12,936,780,055

14,576,413

24,846,384

3,418,976

Number of borrowers

1,972

1,200

1,756

1,736

2,439,778

2,778

Remaining principal of performing loans

12,768,448

20,161

21,827,634

3,003,582

12,448

21,582

Cumulative number of insurance clients

1,069

1,660

1,158

1,158

Number of insurance clients

135,449

73,687

88,766

88,766

212,414

153,807

153,807

Gross written premiums

1,332,458

912,431

1,060,885

145,983

2,255,841

1,973,316

271,537

First year premium

1,101,928

514,141

577,387

79,451

1,729,243

1,091,528

150,199

Renewal premium

230,530

398,290

483,498

66,532

526,598

881,788

121,338

Gross merchandise volume

395,820

625,120

554,574

76,312

704,387

1,179,695

162,331

Segment Information

Financial services business:

Revenue

581,974

738,117

851,031

117,106

1,065,847

1,589,148

218,674

Sales and marketing expenses

103,164

251,922

253,103

34,828

165,382

505,025

69,494

Origination,servicing and other operating

costs

38,961

85,787

113,234

15,582

86,570

199,021

27,386

Allowance for contract assets,receivables and

others

45,754

101,127

124,765

17,168

85,976

225,892

31,084

Provision for contingent liabilities

11,636

Insurance brokerage business:

Revenue

404,785

Sales and marketing expenses

3,845

3,565

4,263

587

6,134

7,828

1,077

Origination,servicing and other operating

costs

289,851

136,883

122,358

16,837

423,468

259,241

35,673

Allowance for contract assets,receivables and

others

3,614

1,012

(1,502)

(207)

3,626

(490)

(67)

Consumption & lifestyle business and others:

Revenue

337,537

515,041

553,979

76,230

643,649

1,069,020

147,102

Sales and marketing expenses

41,938

21,736

27,735

3,816

83,643

49,471

6,807

Origination,servicing and other operating

costs

17,555

10,600

10,950

1,506

36,074

21,550

2,965

Allowance for contract assets,receivables and

others

(753)

9

(11)

(2)

(1,232)

(2)

-

Reconciliation of Adjusted EBITDA

Net income

527,213

Interest income,net

(10,535)

(27,713)

(24,668)

(3,394)

(25,054)

(52,381)

(7,208)

Income tax expense

139,798

Depreciation and amortization

1,778

1,892

2,026

279

3,646

3,918

539

Share-based compensation

3,321

1,207

2,136

294

5,410

3,343

460

Adjusted EBITDA

661,670

593,048

481,058

66,196

1,200,944

1,074,106

147,802

Adjusted EBITDA margin

50.0%

43.0%

32.1%

32.1%

52.0%

37.4%

37.4%

Delinquency Rates

15-29 days

30-59 days

60-89 days

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%

December 31,2022

0.7%

1.3%

1.1%

December 31,2023

0.9%

1.4%

1.2%

March 31,2024

0.9%

1.6%

1.4%

June 30,2024

0.8%

1.4%

1.6%

Net Charge-Off Rate

Loan

Issued

Period

Amount of Loans

Facilitated

During the Period

Accumulated M3+ Net

Charge-Off

as of June 30,2024

Total Net Charge-

Off Rate

as of June 30,2024

(in RMB thousands)

(in RMB thousands)

2019

3,431,443

381,533

11.1%

2020

9,614,819

723,686

7.5%

2021

23,195,224

1,075

6.1%

2022

22,623,101

1,033,743

4.6%

2023

36,036,301

2,126,589

5.9%

2024Q1

11,367

105,205

0.9%

M3+ Net Charge-Off Rate

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%

7.3%

7.8%

7.9%

7.9%

2020Q2

0.5%

2.5%

4.2%

5.3%

6.1%

6.7%

7.6%

8.1%

8.2%

8.3%

8.2%

2020Q3

1.1%

3.3%

5.1%

6.3%

7.1%

8.1%

8.7%

8.9%

8.9%

8.8%

8.7%

2020Q4

0.3%

1.8%

3.2%

4.6%

6.0%

7.1%

7.4%

7.6%

7.6%

7.5%

7.5%

2021Q1

0.4%

2.3%

3.9%

5.5%

6.7%

7.0%

7.2%

7.3%

7.2%

7.1%

7.0%

2021Q2

0.4%

2.4%

4.5%

5.9%

6.4%

6.7%

6.8%

6.7%

6.6%

6.5%

6.4%

2021Q3

0.5%

3.1%

5.0%

5.9%

6.3%

6.4%

6.4%

6.3%

6.2%

6.1%

2021Q4

0.6%

3.2%

4.6%

5.3%

5.4%

5.4%

5.3%

5.2%

5.1%

2022Q1

0.6%

2.5%

3.8%

4.5%

4.5%

4.4%

4.3%

4.2%

2022Q2

0.4%

2.2%

3.6%

4.1%

4.2%

4.1%

4.0%

2022Q3

0.5%

2.7%

4.1%

4.7%

4.8%

4.6%

2022Q4

0.6%

3.0%

4.6%

5.4%

5.4%

2023Q1

0.5%

3.1%

4.9%

5.8%

2023Q2

0.5%

3.3%

5.2%

2023Q3

0.7%

4.0%

2023Q4

0.6%