Latest activity in recent index: Yiren Digital Ltd – ADR (NYSE: YRD)

Yiren Digital Ltd – ADR (NYSE: YRD) remained among the day gainers and traded with change of -2.88% on volume of 99838 shares in the last session as compared to average volume of 112580 shares. During last trade its minimum price was $2.7 and it gained highest price of $2.82. YRD has total market capitalization of $257.09M.

Yiren Digital Ltd. (YRD) recently reported its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Operational Highlights

Wealth Management—Yiren Wealth

Cumulative number of investors served reached 2,223,250 as of June 30, 2020, representing a raise of 0.2% from 2,218,181 as of March 31, 2020 and contrast to 2,185,513 as of June 30, 2019.

Number of current investors was 195,211 as of June 30, 2020, representing a decrease of 11.5% from 220,568 as of March 31, 2020.

Number of current non-P2P investors was 31,530 as of June 30, 2020, representing a raise of 19.7% from 26,346 as of March 31, 2020, and contrast to 17,133 as of June 30, 2019.

Total assets under administration (“AUA”) for P2P products on Yiren Wealth was RMB 25,896.8M (US$3,665.4M) as of June 30, 2020, representing a decrease of 15.2% from RMB 30,536.4M as of March 31, 2020, and contrast to RMB 43,249.9M as of June 30, 2019.

Total AUA for non-P2P products on Yiren Wealth was RMB 2,528.6M (US$357.9M) as of June 30, 2020, representing a raise of 47.6% from 1,713.1M as of March 31, 2020,and contrast to RMB 352.7M as of June 30, 2019.

Sales volume of non-P2P products amounted to RMB 2,186.2M (US$309.4M) in the second quarter of 2020, representing a raise of 1.1% from RMB 2,163.3M in the first quarter of 2020 and contrast to RMB 284.8M in the same period of 2019.

“For our credit-tech business, our new online product initiatives are tracking very well. Our new revolving loan product, Yi Xiang Hua, accounted for 13% of our total loan volume this quarter, growing over 500% quarter over quarter. In The Meantime, by leveraging our vast offline service network coverage, we are ramping up auto loans nicely, achieving a 51% growth from last quarter. Moreover, we have made great strides in repositioning our credit business by moving from a P2P funding model to a loan facilitation model. In the second quarter, 63% of loans facilitated were funded by institutional intuitional partners and we expect this proportion to reach close to 100% by the end of this year with a diversified partner base.”

“On wealth management business, we are seeing very strong growth momentum particularly for our fund products. As of June 30, 2020, the number of current non-P2P investors increased 20% from last quarter to 31,530, and total AUA for non-P2P products increased by 48% quarterly to RMB 2.5B. Moreover, average AUA per investor for non-P2P products also sees steady growth, with average AUA per investor for bank’s fixed-income products exceeding RMB 100,000 and for funds over RMB 50,000, which is well above industry average”

Second Quarter 2020 Financial Results

Total amount of loans facilitated in the second quarter of 2020 was RMB 2,402.5M (US$340.1M), contrast to RMB 9,673.8M in the same period last year. As of June 30, 2020, the total outstanding principal amount of the performing loans was RMB 33.5B (US$4.7B), reduced by 20% from RMB 42.1B as of March 31, 2020.

Total net revenue in the second quarter of 2020 was RMB 754.7M (US$106.8M), contrast to RMB 2,216.6M in the same period last year. Revenue from Yiren Credit reached RMB 432.3M (US$61.2M), representing a decrease of 73% from RMB 1,624.3M in the second quarter of 2019. Revenue from Yiren Wealth reached RMB 322.4M (US$45.6M), representing a decrease of 46% from RMB 592.4M in the second quarter of 2019.

Sales and marketing expenses in the second quarter of 2020 were RMB 508.5M (US$72.0M), contrast to RMB 1,208.6M in the same period last year. Sales and marketing expenses in the second quarter of 2020 accounted for 21.2% of the total amount of loans facilitated, as contrast to 12.5% in the same period last year mainly Because of the decline of loan volume.

Origination and servicing costs in the second quarter of 2020 were RMB 165.2M (US$23.4M), contrast to RMB 162.9M in the same period last year. Origination and servicing costs in the second quarter of 2020 accounted for 6.9% of the total amount of loans facilitated, contrast to 1.7% in the same period last year Because of the decline of loan volume.

General and administrative expenses in the second quarter of 2020 were RMB 172.6M (US$24.4M), contrast to RMB 175.5M in the same period last year. General and administrative expenses in the second quarter of 2020 accounted for 22.9% of the total net revenue, contrast to 7.9% in the same period last year.

Allowance for contract assets and receivables in the second quarter of 2020 were RMB 168.7M (US$23.9M), contrast to RMB 500.9M in the same period last year.

YRD has a gross margin of 90.60% and an operating margin of 10.00% while its profit margin remained 6.60% for the last 12 months. Its earnings per share (EPS) expected to touch remained -27.00% for this year while earning per share for the next 5-years is expected to reach at -1.42%.

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