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Yiren Digital Yiren Digital Reports Second Quarter 2021 Financial Results BEIJING , Aug. 19 , 2021 / 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 second quarter ended June 30 , 2021 . Second Quarter 2021 Operational Highlights Wealth Management • Cumulative number of investors served reached 2,538,656 as of June 30 , 2021 , representing an increase of 3.1 % from 2,462,195 as of March 31 , 2021 and compared to 2,223,250 as of June 30 , 2020 . • Number of active investors [ 1 ] was 385,536 as of June 30 , 2021 , representing an increase of 25.5 % from 307,107 as of March 31 , 2021 , and compared to 102,658 as of June 30 , 2020 . • Total client assets [ 2 ] was RMB14,660.4 million ( US $ 2,270.6 million ) as of June 30 , 2021 , representing an increase of 37.3 % from RMB10,678.9 million as of March 31 , 2021 , and compared to RMB2,628.8 million as of June 30 , 2020 . • Sales volume of investment products amounted to RMB5,343.6 million ( US $ 827.6 million ) in the second quarter of 2021 , representing a decrease of 8.2 % from RMB5,823.1 million in the first quarter of 2021 and compared to RMB2,186.2 million in the same period of 2020 . Consumer Credit • Total loans facilitated under loan facilitation model in the second quarter of 2021 reached RMB5.3 billion ( US $ 0.8 billion ) , representing an increase of 6.5 % from RMB4.9 billion in the first quarter of 2021 and compared to RMB1.5 billion in the second quarter of 2020 . Cumulative number of borrowers served reached 5,558,085 as of June 30 , 2021 , representing an increase of 4.7 % from 5,309,727 as of March 31 , 2021 and compared to 4,917,635 as of June 30 , 2020 . • Number of borrowers served in the second quarter of 2021 was 434,153 representing an increase of 25.5 % from 345,939 in the first quarter of 2021 and compared to 107,568 in the second quarter of 2020 . • Outstanding balance of performing loans facilitated under loan facilitation model reached RMB12,543.7 million ( US $ 1,942.8 million ) as of June 30 , 2021 , representing an increase of 12.4 % from RMB11,159.2 million as of March 31 , 2021 and compared to RMB4,175.8 million as of June 30 , 2020 . [ 1 ] Active investors refer to those who have made at least one investment through our wealth management platform or have had client assets with us 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 investor who acquired it through our platform . " We are pleased to deliver another solid quarter , with continued improvement in profitability and increasingly diversified revenue mix as we further navigate Yiren Digital to become a leading user - centric personal financial management platform , " said Mr. Ning Tang , Chairman and Chief Executive Officer of Yiren Digital . " As we continue to strengthen our competitive edges and drive up our business scale , we have developed sophisticated strategies for different business lines . " " For wealth management , we are further differentiating ourselves by upgrading our services and enriching our product offerings as well as enhancing our capabilities to serve customers with higher investable assets . As of June 30 , 2021 , total client assets reached RMB14.7 billion , representing an increase of 37 % from last quarter . Average client asset per investor further increased by 17 % quarter - over - quarter to approximately RMB100,000 , and the number of investors who held more than two asset classes on our Yiren Wealth platform grew by 420 % from prior year , reflecting a concrete improvement in our customers ' overall LTV . " " For our credit business , we are focusing on high - quality growth and continue to take a proactive approach to transition our target borrower segment into higher - credit quality borrowers , paving the way for the launch of increasingly diversified products . Meanwhile , to echo government's focus on supporting small and micro businesses , starting from the second half of this year , we will further expand our SME segment to better promote inclusive finance . " " In the second quarter , total revenue increased by 49 % year - on - year to RMB1.1 billion , of which 25 % came from our wealth management business . Driven by enhanced cost control and operating efficiencies , total net income in the second quarter grew by 10 % quarter - over - quarter , reflecting a healthy net income margin of 18 % , " said Ms. Na Mei , Chief Financial Officer of Yiren Digital . " On the balance sheet side , our cash position remains strong with RMB2.2 billion of cash and cash equivalents as of June 30 , 2021 , which provides us with sufficient resilience to continue exploring new initiatives and new opportunities , and to meet any new capital requirement that may come . " Second Quarter 2021 Financial Results Total net revenue in the second quarter of 2021 was RMB1,125.0 million ( US $ 174.2 million ) , compared to RMB754.7 million in the same period last year . Revenue from wealth management business reached RMB286.8 million ( US $ 44.4 million ) , representing a decrease of 11.0 % from RMB322.4 million in the second quarter of 2020 , primarily driven by the spin - off of our legacy business . Revenue from credit business reached RMB838.2 million ( US $ 129.8 million ) , representing an increase of 93.9 % from RMB432.3 million in the second quarter of 2020 , primarily driven by an increase in loan volume . Sales and marketing expenses in the second quarter of 2021 were RMB436.9 million ( US $ 67.7 million ) , compared to RMB508.5 million in the same period last year . The decrease was primarily due to internal restructuring to optimize operating efficiencies . Origination , servicing and other operating costs in the second quarter of 2021 were RMB182.7 million ( US $ 28.3 million ) , compared to RMB165.2 million in the same period last year . General and administrative expenses in the second quarter of 2021 were RMB127.7 million ( US $ 19.8 million ) , compared to RMB172.6 million in the same period last year . The decrease was due to enhancement of operational efficiency . Allowance for contract assets , receivables and others in the second quarter of 2021 was RMB93.4 million ( US $ 14.5 million ) , compared to RMB168.7 million in the same period last year . The decrease was primarily due to the optimization of product mix , improved asset quality post pandemic as well as further enhancement in the Company's risk management framework . Income tax expense in the second quarter of 2021 was RMB55.3 million ( US $ 8.6 million ) . Net income in the second quarter of 2021 was RMB200.1 million ( US $ 31.0 million ) , as compared to a net loss of RMB232.2 million in the same period last year . Adjusted EBITDA [ 3 ] ( non - GAAP ) in the second quarter of 2021 was RMB295.4 million ( US $ 45.8 million ) , compared to a loss of RMB269.4 million in the same period last year . Basic income per ADS in the second quarter of 2021 was RMB2.4 ( US $ 0.4 ) , compared to a basic loss per ADS of RMB2.5 in the same period last year . Diluted income per ADS in the second quarter of 2021 was RMB2.4 ( US $ 0.4 ) , compared to a diluted loss per ADS of RMB2.5 in the same period last year . Net cash used in operating activities in the second quarter of 2021 was RMB213.0 million ( US $ 33.0 million ) , compared to RMB64.7 million in the same period last year . Net cash used in investing activities in the second quarter of 2021 was RMB208.5 million ( US $ 32.3 million ) , compared to RMB186.7 million in the same period last year . As of June 30 , 2021 , cash and cash equivalents was RMB2 , 192.5 million ( US $ 339.6 million ) , compared to RMB2,362.3 million as of March 31 , 2021. As of June 30 , 2021 , the balance of held - to - maturity investments was RMB2.2 million ( US $ 0.3 million ) , compared to RMB3.1 million as of March 31 , 2021. As of June 30 , 2021 , the balance of available - for - sale investments was RMB224.3 million ( US $ 34.7 million ) , compared to RMB234.6 million as of March 31 , 2021 .