Yiren Digital (YRD) 10 Jun 212021 Q1 Earnings call transcript

Good day, and thank you for standing by, and welcome to the Yiren Digital First Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, to Mr. Lydia Yu. you. Thank ahead. go Please

Mr. welcome Mr. Today's Digital's the by call CEO -- CFO, to our Chairman and Mei going SVP, Earnings and is Cong, Zhou; the Quarter session. our Conference Q&A and our CEO, and CreditEase Call. features Na of during Tang; to you, Our First Ms. Mei. Yiren Ms. XXXX Founder, Ning Dennis Thank present the will presentation Director,

potential we would U.S. company's and factors included update Before are statements to as Act like will The we obligation results that from applicable harbor the those make contained risks, any factors with under you in of of filings company we any law. actual statements cause any Private to and safe the uncertainties regarding uncertainties begin, can in subject does to statements is made risks, such materially Exchange the remind to differ U.S. forward-looking Litigation information statements. Securities that the XXXX. provisions Such undertake Commission. under not Securities or required Further

During be supplemental U.S. to are as and the several our referring be with GAAP. financial presented financial assess non-GAAP performance. a considered to information measures in operating for These isolation not accordance review substitute measures financial intended call, measures will and in non-GAAP we and to or prepared

earnings to opening these about release. for our refer information non-GAAP now For press please pass to measures reconciliations to measures, I'll and remarks. Ning on GAAP

today. Thank you for us joining all

management high-quality our and our restructuring year, user-centric a transition to a business, of our have margin With digital platform. completed normal growth legacy resuming solid delivered leading business level. the our quarter of become to spin-off We start completion returning profitability the personal financial and to we

our key and on the constantly and are building edges transition growth, we competitive strengthening strategic focus our business we to along continue As way.

investors whom million over our customers networks the At in we also have same million served and user are are base new time, established borrowers a through X.X considerable Firstly, acquire with we reactivating. channels. segments accumulated X.X we to continuing partner and our

in cloud Secondly, building better with and to efficiency. data technology users serve innovation we operation coupled and making enhance AI, our been IT tech-driven our computing, blockchain systems, our have up efforts and and

Thirdly, enriching spectrum we full of broadening portfolio and and management product services. both to and are products credit a our financial wealth forge in

needs with ranging So of all better financial believe through we is are to investment to and from our are services and to them differentiated, through their expand insurance help be better serving we spend, and are we map. aiming both moves, products to right track in and we fully credit stage to channels This continue the better offline these our business on invest and address how lives, them protected. every customers' online

Now I business. give pass the I'll update it our credit over provide our to side, on then Mei update will on business and an wealth to management

and of in for XXX,XXX stood XX% Our last reputation. quarter, number see of Meanwhile, investors XX.X March our from from coming active Client RMB wealth in increase representing increasing XX% loyalty management of quarter brand an registered XX, investment Yiren representing number as billion March assets quarter. existing by increase products the grew XXXX, newly quarter-over-quarter. referral growth. investors Wealth of from and year last XX% from users continues this program business stable indicating the trust first to as of XXXX, at an XX, reached Total of

to RMB investor on grew who year, increased X Yiren from client we quarter-over-quarter asset the increasing addition, achievements and XXXX, asset held than by number are LTV. the the average of XX,XXX. prior In investors' classes meaningful In Wealth first per our investors making in quarter of by more XX% XXX%

our on The Hexiang business, Brokers. insurance momentum Next, strong. remains to growth Insurance

next We expected our digitize scenario-based well leveraging to of customers' services. revenue personal around users as sport-related traffic channels them an incidents, the platform insurance and as fully to stream. data-driven lessons, to and helps XXX,XXX. plan, insurance accident DAU our We our of capabilities. process a the specifically sees claims into Ski product their rollout We our provide customer our underwriting partnership entirely and quarter their purchase partner insurance equipment product onboarding book the tech Using to with life needs which this platform, initiative policy helping distribution worked and example, management, as from on a in tap tailor partner insurance their new the plan a realize an ski now into and Snowboard with for portfolio administration digitize strategic entire with trip, platform new design, insurance

for will We which will services open scenarios. platform to consumption to to ongoing funds more additional wealth stock launch brokerage China yield. market and assets, including digital giving second the serve different not equity of an assets note shifted business. and and Last our increasing We household to trend partners bringing attractive increasingly an futures, to to our stocks of money set retail offer continue financial in stock brokerage being them investors, synergies management our quarter, platform in number channel least, offshore is but from deposits

professional as and retail mass XXXX segments trading including capital customer the as will the in and exclusive to structural consulting one-on-one benefit from allow accelerating, Leveraging and highs and information our shift strong a seize worth initiative hitting retail strong us affluent offer taken and off target services. increasingly ecosystem financial resources market This volumes partnerships has addition, investors. phenomena global with investing new participation well and both this high trend. capabilities, are markets In new client sizable will platform are net with experiencing CreditEase value-added services, from investment as our

the for Mei, will our who to will credit key I turn quarter. Now this call highlight business over updates

update our an now I Ning, credit provide business. will on Thanks, and everyone. hello,

number of in Yiren following growth helping of of first growth of XX.X increase volume, We close X.X Credit first Credit low Total end quarters the quarter-over-quarter. the users reached consecutive quarter, in RMB XX% increase quarter-over-quarter increasing solid under XX% quarter, the the the continue business XXX% to of registered first strong. year a year-on-year. platform see served to in start In X facilitated loans the to facilitation Yiren X% of XXXX an us billion in quarter an XXX,XXX, quarter the year-on-year. million, the first reached model, loan and borrowers At

key what customers' through diverse Ming offering financial the personal needs leading now meet echo We the on positioning user-centric be platform services. to suite are financial comprehensive the our financial to digital initiatives, focused a strategic X our earlier on of which mentioned management

our credit which online XB payment we established credit tax matrix from offline customers' are a through Firstly, offering and partners. full with consumption and the grow a enriching our secured both of we also platforms, help products third-party of platforms traveling, with consistent our tenors. we a size numbers a and from covering and have including such various various scenarios, mix been shopping, to products channels, and partnership management up by needs. and scale. channel with established networking, have unsecured companies meet ticket have as further products now diversifying loans apart XC we drive entertainment SaaS social education us channels, And our Offering and broadening financial Also, the

partners, we cooperation. we continuing more expand XX So with than are far, working and are to channel more external

through to we families Hexiang to last and both them to life their insurance Brokers national protect and our services with to year to borrowers work XXXX, platform Secondly, products has cross-sell insurance of off-line now XXX% started our upsell better driver of XXXX offer and by online our and Insurance increasing premium stores, and property saw network our per become August more strategies. growth than by policy a business. and driven Average credit XXX new visible from April

and So built you lines, by complementary of that have services. see financial specific business different entered ecosystem we integrating can a

operational continue front, product achieve to the we cost improve unit the our efficiency and economics. On

For the XX% further repeat services acquisition increasing quarters. as from see our and in percentage products volume we by of broaden borrows thereby low cost by prior offerings, the example, generated we customer decline

performance, risk have performance. we been credit stable improving on Lastly, and

As and to to for days, past X.X% of Recovery March days X.X%, respectively. were the are XXXX, XX due that levels. lower days XX to our X.X%, XX rate historical in line XX, to for the (inaudible) loans XX and XX delinquency XX

through In level. healthy terms of refined access have stabilize rate policy, the management a more our enabling risk to us collection improved management, at we rate delinquency

it As a to will the result, Na, credit who CFO, continue financial performance our year. we to that, update. expect throughout will a With pass provide now our we strong

Mei. you, Hello, Thank everyone.

will update, items I on under focus operation financial only. For business the of our key performance financial

that deck refer earnings can posted release on our to our the You financial results website. IR detailed has been in and

business. management wealth operating First, for our our highlights

investors As number have Client products active products X.X as quarter-over-quarter our of XX, the to investors, assets and March increased quarter-over-quarter. XX, investment XXXX, more XX% in our than served billion to March XXXX. XX% grew we total in investment million of CNYXX.X XXX,XXX, increased of

On broker business, Broker to and X% slowest the now of the due quarters. out Due On increase came way the XX% XX% our quarter-over-quarter. rapid is our was billion, revenue Hexiang in from is our an credit to ramp-up insurance In CNYX.X origination to show our business. quarter Quarter year-on-year loan quarter, to holiday, increased wealth the billion, the service Insurance volume side, representing China further in P&L. total insurance which quarter following management CNYX.X our financials. for first historical X revenue in we from of in to in expand generated

operational line We decreased service X% financial have billion. to Total from expense expense our and million, also financial revenue year-on-year increased new driven auto which revenue a mainly Selling added prior year by CNYXXX.X represents CNYX.X to item, marketing decreased lease. XX% from efficiency. by

a volume the Our insurance receivables CNYXXX.X commission was changing based due in expense collection CNYXXX.X sales to compared Last million, for result Allowance contract of assets, as equivalent and quarter, quarter, increase mainly loan premiums. rate year prior X.X% million allowance an on of service original channel X% to to result rate, to expense adjusted as in from paid quarter. to last others write-back. increased expanded this which on we actual allowance and X.X%

write-backs, of year increased Net was The last XXX% last rate from quarter million. income X.X%. the prior the XXXX compared Excluding to allowance for quarter. CNYXXX.X the quarter rate to QX was better in

cash of our March billion XX, with and side, position XXXX. strong short-term sheet balance the CNYX.X of On as investment remains cash

Our continue employ current allow new opportunity. new strong tap well sheet the and in into operating environment initiatives us and balance position us to to

outlook. Finally, on business

closing year full remarks. reflects of For our the Operator, our range This CNYXX remain current marketing total the of the and at change. product facility. our forecast This loan waiting billion to for XXXX, are subject CNYXX investment to and billion Q&A. review which are for total we the operating preliminary to million CNYXX for the million and forecast CNYXX conditions, concludes

call this Thank call for This you, our joining today. everyone, the concludes for you. Thank quarter.

you. Thank

You Have day, may a disconnect. all Take great goodbye. care. and