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Yiren Digital Yiren Digital Reports Third Quarter 2021 Financial Results BEIJING , Nov. 24 , 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 third quarter ended September 30 , 2021 . Third Quarter 2021 Operational Highlights Wealth Management • Cumulative number of investors served reached 2,612,279 as of September 30 , 2021 , representing an increase of 2.9 % from 2,538,656 as of June 30 , 2021 and compared to 2,283,828 as of September 30 , 2020 . • Number of active investors [ 1 ] was 427,873 as of September 30 , 2021 , representing an increase of 11.0 % from 385,536 as of June 30 , 2021 , and compared to 170 , 907 as of September 30 , 2020 . • Total client assets [ 2 ] was RMB17,415.3 million ( US $ 2,702.8 million ) as of September 30 , 2021 , representing an increase of 18.8 % from RMB14,660.4 million as of June 30 , 2021 , and compared to RMB4,994.6 million as of September 30 , 2020 . • Sales volume of investment products amounted to RMB5,030.2 million ( US $ 780.7 million ) in the third quarter of 2021 , representing a decrease of 5.9 % from RMB5,343.6 million in the second quarter of 2021 and compared to RMB4,593.3 million in the same period of 2020 . Consumer Credit • Total loans facilitated under loan facilitation model in the third quarter of 2021 reached RMB6.8 billion ( US $ 1.1 billion ) , representing an increase of 30.3 % from RMB5.3 billion in the second quarter of 2021 and compared to RMB3.1 billion in the third quarter of 2020 . • Cumulative number of borrowers served reached 5,840,424 as of September 30 , 2021 , representing an increase of 5.1 % from 5,558,085 as of June 30 , 2021 and compared to 5,060,824 as of September 30 , 2020 . • Number of borrowers served in the third quarter of 2021 was 548,495 representing an increase of 26.3 % from 434,153 in the second quarter of 2021 and compared to 143,238 in the third quarter of 2020 . • Outstanding balance of performing loans facilitated under loan facilitation model reached RMB13,793.9 million ( US $ 2,140.8 million ) as of September 30 , 2021 , representing an increase of 10.0 % from RMB12,543.7 million as of June 30 , 2021 and compared to RMB6,250.3 million as of September 30 , 2020 . " We are delighted to announce a solid quarter with visible increase in profitability and a healthy growth in business scale amid a muted macro environment , " said Mr. Ning Tang , Chairman and Chief Executive Officer of Yiren Digital . " And as our business structures continue to integrate and expand , we are seeing growing interactions and synergies between each business line , reinforcing our strategic positioning as a user - centric leading digital personal financial management platform . " " For wealth management , we are pleased to see continued growth in both new investor base and average client asset per investor . As of September 30 , 2021 , our total client assets exceeded RMB17.4 billion , representing a 19 % growth from last quarter and approximately 250 % increase from the prior year . On Yiren Wealth's platform , the number of new investors grew 93 % quarter - over - quarter and excluding insurance products , the number of investors with client asset over RMB500,000 grew almost three times compared with the prior year , a vivid reflection of our enhanced capabilities to serve a higher segment of our investor spectrum . Moreover , Hexiang insurance contributed RMB735 million in total premium this quarter , up 29 % compared with last quarter . " " For our credit business , the total loan facilitation volume maintained a strong growth trajectory reaching RMB6.8 billion for the quarter , representing an increase of 30 % quarter over quarter . Driven by our enhanced digital operating capabilities and improved servicing standards , our Yi Xiang Hua APP , the credit - tech platform offering unsecured revolving loans , saw its MAU jumping 82 % quarter over quarter to 1.1million users . Meanwhile , our SME loans , which we started to focus on in the second half of this year , increased by 431 % from the last quarter and accounted 25 % of our total loan volume in the third quarter . " " In the third quarter , we are pleased to see strong growth across revenue , profit and transaction volume . Total revenue in the third quarter stood at RMB1.2 billion , increasing 20 % year over year , with wealth management business becoming an increasingly important growth driver and contributing close to 30 % of total revenue . Meanwhile , net income grew three times year on year to over RMBO.3 billion , reflecting a net income margin of 26 % , driven by our continued efforts in cost control and increasing operating efficiencies , " said Ms. Na Mei , Chief Financial Officer of Yiren Digital . " Turning to our balance sheet , we ended the quarter with RMB2.3 billion in cash and cash equivalents , representing 6 % increase from the prior quarter , leaving us with sufficient resilience to seize any new opportunities . " Third Quarter 2021 Financial Results Total net revenue in the third quarter of 2021 was RMB1,232.0 million ( US $ 191.2 million ) , compared to RMB1,022.8 million in the same period last year . Revenue from wealth management business reached RMB337.6 million ( US $ 52.4 million ) , representing an increase of 20.1 % from RMB281.1 million in the third quarter of 2020 , as we continue to drive up our wealth management business . Revenue from credit business reached RMB894.4 million ( US $ 138.8 million ) , representing an increase of 20.6 % from RMB741.7 million in the third quarter of 2020 , primarily driven by an increase in loan volume . Sales and marketing expenses in the third quarter of 2021 were RMB407.2 million ( US $ 63.2 million ) , compared to RMB485.1 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 third quarter of 2021 were RMB186.9 million ( US $ 29.0 million ) , compared to RMB239.7 million in the same period last year . The decrease was due to the improved collection efficiency . General and administrative expenses in the third quarter of 2021 were RMB139.3 million ( US $ 21.6 million ) , compared to RMB159.7 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 third quarter of 2021 was RMB83.6 million ( US $ 13.0 million ) , compared to RMB25.0million in the same period last year . The increase was primarily driven by the one - time write back to credit impairment in the same period last year due to the better - than - expected credit performance post the pandemic . Excluding the one - time write back impact , allowance for contract assets remained stable compared to the same period last year . Income tax expense in the third quarter of 2021 was RMB75.9million ( US $ 11.8 million ) . Net income in the third quarter of 2021 was RMB320.9 million ( US $ 49.8million ) , compared to net income of RMB79.8 million in the same period last year . Adjusted EBITDA [ 3 ] ( non - GAAP ) in the third quarter of 2021 was RMB438.6 million ( US $ 68.1 million ) , compared to RMB117.5 million in the same period last year . Basic income per ADS in the third quarter of 2021 was RMB3.8 ( US $ 0.6 ) , compared to a basic income per ADS of RMBO.9 in the same period last year . Diluted income per ADS in the third quarter of 2021 was RMB3.7 ( US $ 0.6 ) , compared to a diluted income per ADS of RMB0.9 in the same period last year . Net cash generated from operating activities in the third quarter of 2021 was RMB323.8 million ( US $ 50.3 million ) , compared to RMB3.1 million in the same period last year . Net cash used in investing activities in the third quarter of 2021 was RMB233.8 million ( US $ 36.3 million ) , compared to RMB99.5 million in the same period last year . As of September 30 , 2021 , cash and cash equivalents was RMB2,328.4 million ( US $ 361.4 million ) , compared to RMB2 , 192.5 million as of June 30 , 2021. As of September 30 , 2021 , the balance of held - to - maturity investments was RMB2.2 million ( US $ 0.3 million ) , compared to RMB2.2 million as of June 30 , 2021. As of September 30 , 2021 , the balance of available - for - sale investments was RMB277.9 million ( US $ 43.1 million ) , compared to RMB224.3 million as of June 30 , 2021 . Delinquency rates . As of September 30 , 2021 , the delinquency rates for loans facilitated that are past due for 15-29 days , 30-59 days and 60-89 days were 0.7 % , 0.9 % and 0.8 % respectively , compared to 0.5 % , 0.8 % and 0.7 % respectively as of June 30 , 2021 . Cumulative M3 + net charge - off rates . As of September 30 , 2021 , the cumulative M3 + net charge - off rate for loans facilitated in 2018 , 2019 and 2020 was 9.9 % , 11.0 % and 4.8 % respectively , as compared to 9.9 % , 10.5 % and 3.7 % respectively as of June 30 , 2021 . [ 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 . [ 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 .