Yiren Digital (YRD) 21 Nov 232023 Q3 Earnings call transcript

Thank you for standing by, and welcome to the Yiren Digital Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Ms. Lydia Yu, Investor Relations. Please go ahead.

Thank you, operator. to Quarter welcome Call. Earnings and everyone, our XXXX Third Conference Hello, call the our CreditEase by prepared CEO, Chairman Today's remarks of Founder, features and CEO Mr. and Tang; Ning CFO, Ms. our and Mei. Na

the Ms. presenters Zhao SVP, Our will in Q&A session. Mei the join

remind Litigation Before that this XXXX. Reform made the Act discussions statements of provision you safe beginning, of forward-looking like harbor contain U.S. during would under we to call Private Securities

Forward-looking statements and involve inherent uncertainties. risks

future today. risks, be may or materially from Further results information in company's laws. expressed regarding do not included the the such, is to undertake As with any as statements the U.S. uncertainties required forward-looking We the factors relevant different filings obligation views our any under update SEC.

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

For pass information our will remarks. those release. I to reconciliations Ning, press earnings refer and now measures, measures please on CEO GAAP for to to our opening about it non-GAAP all

Lydia. call all earnings you Thank today. everyone. for our joining Hi, you, Thank conference

recovery front, the and and year-over-year face have the development, with on experience elevate decline overarching macroeconomic directed on we to era, efficiency. a post-COVID macroeconomic As into expectations, a optimize customer still the market China from but growth our basis previous the transitions the third China year-over-year in data gaining shows towards aiming GDP recent X.X% quarter. In economic consistently challenges operational investments traction, reaching quarter, research beating of

we earnings, improvements over bottom quarter-over-quarter. in consistent of the result, quality enhanced the have As past our line few quarters, a our

and capitalize and services, we our financial Our positions rebounds. consumption AI services the services. lifestyle anchored us pillars: by corporate In the to financial platform insurance quarter, key X economy and is new positioning technology-driven reviewed an lifestyle that on growth as strategic whilst opportunities and approach

quarter, achieve increase marketing utilizing have tools accuracy targeting and social we greater visibility. started to This AI-assisted media our advertising

of We process. in assist to in the progress are chatbots also upgrading every loan of stages collection our

into business this get Let's quarter's update.

Services, Hua for representing RMB the increase user to total our Financial to sixth quarter Xiang Yi increased in year XX% the the of on year-over-year. volume and million to quarter billion, number X.X X.X on in XX% XXXX, third high from was indicating stable number a of loan [indiscernible] per The stickiness total Xx, X.X average the First, APP borrowers increase quarter quarter from and million. activeness. XX% at by [ consecutive transactions user of continued prior ], maintained prior

channels Yi XX% remaining distribution are In methods well acquisition our terms continue are first-time acquisition Xiang to user as acquisitions explore of borrowers, approximately new repeat new optimize for as XX% attract to while high-quality Borrower borrowers. Hua, the customers.

loans During model AI-assisted experimented this [indiscernible], of utilizing partners increasing to XX% this these Combined seasonally, by initiatives quarter, new we to enhance with our and targeting. in our user new media prior utilizing with tools, the facilitated quarter. accuracy with collaboration acquisition marketing fine-tune quarter, resulted selected WeChat we from initiated borrowers

Our market. Philippines the significant international have growth efforts expansion experienced in

remarkable showing increase XXX% The the compared of quarter. previous a results to third quarter

decrease noted driver approximately front future X% funding a excited for in sources. We to costs Funding market, improvements in markets risk models this. continue notable We last have are continue Merging growth this for international pursue continue our also to quarter tailored diversify quarter. compared funding we achieved institutional management and join fine-tune the and local and in risk as our as for to substantial to as the growth.

The services RMB continued points from quarter this million. with XX The rate segment percentage this segment resulting improved quarters, also to our in number XX% this in X%, and of quarter, active over at and XX% and generated active past in growth by users MX rate million. XX reinforced growth which an quality mutually prior loan with rapid to quarter with to remained services lifestyle delinquency increasing XXX has the GMV X.X Asset is collection with stable quarter. few days total further lifestyle consumption created our synergies quarter Consumption ecosystem. also a financial increase stimulating from our increased prior services in users demand X.XX loop

billion gross average. third and industry premiums year-over-year of business, quarter on up quarter-over-quarter, ahead our Lastly, reached X% which X.X XX% of XXXX, in insurance significantly brokerage RMB is

the premiums first due of Highlighted our year quarter this insurance of property regulation was quarter, for down while premiums, Breaking -- peak the returns accounted XX%. attributed capping Gap] total to at premiums timing were life the pricing premiums caused X%. the to strategic new Second insurance [Audio for remaining profit future has XX%

increased million prior line, of this assets our remaining XX% contract prior of deliver cash loan receivable bottom year. to to of continue volume profit high-widening ] quarter RMB business XXX expense. as the company. at RMB across we our efficiency. brokerage tech as and decreased we our and increased was X.X% net XX XX% this million We start G&A stable XX cost the Research live for relating RMB million continue we [ increase service to year-over-year Gap] XXX strong million, million insurance about Origination and this quarter, segment. AI operating service Allowance [Audio to increased about to year-over-year to mainly quarter, XX% facility. On XX% XX by costs operation as million, and from XXX driven and from year-over-year increased a RMB year. for generate developed an in RMB innovation expense origination to to XXX% from RMB

balance end side, of X.X sheet cash On and the total the RMB cash of our quarter. remains strong balance sheet billion this by with equivalents

USD This our to X in deployed public shares market. quarter, payback the we million

profit confidence RMB the remarks. remain as stable. We the path. path the of billion to of current Based billion company's and we we to assessment margin our to with program. USD accumulated business and and our deployed our spent uncertainties. With of the to net quarter-end, fundamental between share RMB XXXX full Operator, questions. current on maintain As in the come changes X.X subject third our our through is now first for marketing conditions, we growth trying our X.X million year repurchase close and has revenue company X.X you. which Thank This reflect open that, is review, preliminary stand can for business

question first the comes of Matthew Fincadia. Larson [Operator line Instructions] The with from

missed the Okay. I read of call, but I report. most conference the

unprecedented, on show returns Another financial the of great a mean quarter. it's you sort really basis. I quarterly

up X this of run last what call. you're much Xx try higher days in career, at plans pretty and less based to unprecedented. stock Your your rate, a are stock of pretty in price? the has on advance is Because XX-year than level earnings, But in which gone your trading sharply my get

cash unprecedented. you Xx least the that the value probably have sheet In at the company addition, that's your on of balance And also is.

be also a company few a used Your like years $XX share to ago. worth

So the the $X or $X is PRC at stock a are down range distrustful. from people you're unusual, and but Chinese

me you minimum, you that? company out because be said, being with that investor not plans stock $XX So do help awareness this should with your have broaden And of to $X. what can

and perspective my do on -- can, colleagues Na and then more. provide I'll other

back as to kind And And you volume shares. up, enables gone Na so we I shares. more that first keep that, buying And we of one and see remarks us is has your mentioned, our recognition. all, think for thank the now buy

can. So as much continue to we will we do that as

more loop, reinforcing one. stock And up positive further, there our hope I so buyback, a up, goes and so is that's on. for for room buyback more room price going price

So this is one.

interestingly, other parties interactions Secondly, we investors on with have same interested the quite issue. had some and

market be intriguing sense, are the and okay, get interest at probably bigger. But I more found We attracted suggestions, well, level. cap was much lots lot institutional big, which your retail to is, there now, thoughts so a today, they good quite interesting when of And like as the is interest. to which some make our

that the our investor or keep We chunk we communication interest. missed if big of So not mainly good institutional enough. a doing solely, is

more proactively good thinking better say, side more and parties to institutional like great. is like with business and there's work consistency better on while interested are prospects communication that are we better like enjoying front, is communications. And we getting visibility have, do with we -- other very So are be continuing I'd investors done a do to clear quite retail good to and

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While of the spend retail a will side is something time lot we on.

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going with many by to shares good. that's Can right. know I far? All pretty bought much you're is the volume. year? how You $XX showing. this you to all were bought your do worth, sounds the million you volume back me tough have How so but restricted back share buy That you tell buyback

Na so Na, mentioned details. more this go number, through please

of I is to million as Actually, million million. and perform third perform USD the [indiscernible] script, payback. occurred we back perform the mentioned the to my share payback Yes, month, limitation we'll continue at the amount, at our to X.X X quarter, to by latest this in have accumulated the, by amounting end, with end $XX USD

people you the But really $X whole like you. to very less I you of than just of private the you want public it's the about second at do make shares? And You company? earnings, at the could be thought this okay? conference million, is the market you're like than Xx said don't you a you private, it it more Why the pay spend balance XX% the right, which while on than first fine. people, call. a of question. happy to less money premium part It okay? tendering mean on I be your which company. missed the portion Have a get Just I sheet. is And balance take and $X Got will trading out. take I me $X, money of cash for I'm and sorry, to on. Why mean, took is -- just unusual. a to get capitalization have all -- sheet

that -- or to has in approached So would been party like ever buyout? who by participate a a have you third

global to the see clear in as strategy certainly previous become fintech a call, to leader. our I go we Yes, it's so very global But that explained math.

And so of listed do us maintaining a company upside like position going to global. this lot gives

market believe and -- So will we consistent good performance. performance, recognize the good also,

having prestige it? be benefit publicly company run, long a rather traded So are will stock you? because it the that saying would certain has in So U.S. you think you a you listed attached to

Yes.

reward and do with globally partners acquisitions can and employees stock we like example, For the like on. our We globally. can so

very strategic. it's So

vehicle, platform. We this this have

in stock still people your All right. But pay stock wouldn't make is when -- I it to sense undervalued.

might you You could cash. because plenty pay have of cash --

So to if through you're people going reward cash... the

I am about the talking future.

Okay.

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made haven't be your there's else gotten I'll it there. And been So like I patient. much that leave familiar money But I've as very say. as had because nothing to with I'm haven't to I've companies. -- I'd just mean, I just to I frustrated

worth be a more. should lot stock Your

can shares? volume I could you're buy is earnings more last couple will allow the open shares this that's as you I As days, all mean volumes buying after the spiked when ask. buy of shares more for call? the window many to as the you When

Yes. Once up, we the... opens window will the resume

up, in. all go window When that is open sir? You'll

Okay. I'll your answer question. After the...

The exact date...

as conference By is Yes. call release, earnings, the open. window financial today, the and the release quarter statement of complete third the after Yes. we

Last Okay. question.

a the more pay shareholders CRC to a makes paid XYF which you ], do Qihu you and dividends, from some is company Some then your if pays which is, money [ QFIN because cash FINV pay Qifu dealing dividends of competitors huge a of there. actually position symbol, is returned only the reach (sic) have dividend. your But with to shareholders. it that comfortable to not dividends,

you have So considered that?

We have about that. thought

a a matter fact, of like it As a ago for while we while. did

And are so schools there different thoughts. of

high-quality pay to say say I tend category are, dividends, as a high-growth company, more for agree and once you to we high And you so have dividend people of one paying so that a opportunities just And opposed is are growth said that what you become which is companies -- you high-growth companies. we a some cash. school like if our that which people growth a

we category. that so And belong to should

firmly And we show so growth. believe rate, we high-growth are, high-quality AI-driven the I as growth,

dividend understand So the to investors. money I helps in yes, of so terms returning

So way in a that's generating aggressively. we to of sticking That's And high-growth do company better use. buy while value way putting for alternative current thinking. another being back -- returning cash of returning, our investors,

All good, mean right, are except stock hasn't I price the moved. buybacks the for really

dividend, all X.Xx also. are are if some were The X that Morgan them is dividend with pay peer-to-peer X%. same familiar a Qifu, like at lenders billion view, look companies -- X the advice. which or really them. that you're Stanley be, you of you pay they that I'm used then follows or One cap, trades research give market ago FinVolution. right, pay And a just traded Xx a earnings. at in that came X They space earnings, is sure dividends, they it's $X I'm got me years a point okay? -- but QFIN, public all of business and to Qihu, you from you and but And Let that X sorry.

So a X to just dividend stock or or your X Xx. market increase earnings paying multiple could price

a your Xx up or could literally small go X So dividend. you if just stock pay

all balance view investors think will you on pay from all of financial they very that balance it, because gives you pay dividend, this you're sheet have to the actually very, to want is So point there money, have of But unless because like can't a that kind comfort you proves them good dividend. invest you it pay it right? dividends might a very, also you that sheet you certain if because that valid. So is them cash about your position

or your dividend. So a stock up paying could X just by Xx go

that's So my advice.

Thank you. Noted.

We will it start further.

for our This your you participation. concludes Instructions] [Operator conference Thank today. for

You may now disconnect.

all. you, Thank

you. Thank