Yiren Digital : Reports First Quarter 2025 Financial Results Presentation

Published: 2025-06-12 06:48:06 ET YRD

Published on 06/12/2025 at 06:48

Investor Presentation

June 2025

"Our vision is to elevate customers' life quality by delivering AI-powered digital services, while also empowering the technological capabilities of selected sectors."

Better tech. Better life.

Company Overview

Diversified Business Lines Driving Innovation and Value

Financial Services Life & Property Insurance Consumption and lifestyle

Revolving loan services provide liquidity to individuals, families, and businesses, aiding in financial health by offering balanced repayment and consumption plans.

Customized insurance services to cater to wide-ranging needs in education, healthcare, retirement planning, asset protection, and business growth.

Satisfying diverse quality-of-life needs through membership benefits and various products and services, including entertainment, travel, skincare and more.

Intelligent Customer Service

Intelligent Marketing/Operations

Intelligent Risk Management

Loan Repayment

Credit Application

AI Risk/Anti-Fraud

Customer Referral， Collections &

Risk Mgmt Services

Borrowers Institutional

Post-facilitation Services

Service Fees

Funding Partners

Intelligent KYC E-Signing Platform

Funding

Precise Targeting, Diverse Acquisition

Precise-targeting Customers

100mn+ borrowers served

Mainly aged 25-40

Stable salary or self-employed

Multi-acquisition Channels

Social media marketing

E-commerce & life service platforms

Revolving loans

ranging from 4-200k

Average Principal

Amt RMB 7k-8k

Loan Tenor

3, 6, 9 or 12 months

Flexible

repayment options

Omni-channel experience collaboration across multiple channels

AI-powered fraud detection and security measures for customer comfort and trust

AI customized debt collection process for optimal debt recovery

Omni-Channel

AI Assistant

Zhiyu

Fraud Detection & Security

Post-Loan

Engagement

Debt Collection Optimization

Streamlined KYC

E-signing capability for convenient documentation

Automated application process for quick credit decision

Personalized customer service support with AI analyzing customer feedback for continuous improvement

Post-loan engagement through personalized offers,

financial education, and other activities

Extensive

Data Accumulation

Comprehensive Credit Data

Anti-fraud and Blacklist Database

19 years of experience and data accumulation in the credit-tech business

Strong capability to understand data across economic cycles and the lifecycle of loans.

Over 100 million of registered users, and millions of customers' database

30+ Credit Enhancement Agencies , 60+ Products.

Over 11,000 dimensions of external data are incorporated.

Rich data pool covering credit records, income details, bank statements, consumption records, shopping behaviors, anti-fraud info etc.

Identified approx. 20,000 features based on the second-generation credit reports

Implemented a social-network-based anti-fraud monitoring system.

Owns an 800 million-entry blacklist, covering high-bit IDs, phone numbers, devices, and IP addresses.

Better products

and services

More customers and repeat users

More data plugged into our AI- driven system to make it more intelligent and efficient

Attract more partners with better offerings and terms

Deliver more

personalized user

experience and diverse services

Competitive edges: 1）Nationwide business deployment

Experienced teams on property, life insurance and internet industry 3）Strong capacities in product innovation and market expansion

Customer Acquistion

Multi-layer of customer needs

Product Strategy

450+ Insurance Agents from

30+ Branches Nationwide

Entrepreneurs

Inheritance

Entrepreneur risk prevention

High-net-worth

Life Insurance

Asset Allocation

Mass Affluent

Property Insurance

"Insurtech

plus"

Protection

Inclusive customers

Customer Resources within CE ecosystem



Cross-Sector Cooperation and Online Marketing

Unique 2B2C Channel

Asset

Note: As a licensed insurance broker, Hexiang does not take any underwriting risks.

Customized Scenario-based Insurance products under 2B2C model

Rich Application Scenarios

2B Corporate Clients

After being served by Hexiang, working with Hexiang to design tailor-made insurance products for its own customers, realizing additional revenue stream.

Property Insurance + Life Insurance

Partially transformed into 2B corportate clients by Hexiang.

Hexiang Insurance

Serving both 2B and 2C clients with diversified products.

Corporate's Customers

Provided with Hexiang's scenario-based insurance products embedded into related consumption platforms.

Medicine & Healthcare

Wealth & Finance

Travel & Leisure

Engineering & Construction

Customization & Digitalization

Tech-driven KYC

Insurance Ecosystem

Servicing Capabilities

Note: As a licensed insurance broker, Hexiang does not take any underwriting risks.

95 Partner Institutions Nationwide

1,000+ insurance

products on the shelf

Our Partnering Insurers

Insurance commissions

Financial Services

Insurance Brokerage

Lifestyle Services

Lifestyle & Consumption

External funding partners

Loan facilitation & Post origination service fees1

YRD licensed subsidary

Insurance Brokerage

Loan facilitation & Post origination service fees1

Guarantee service fees

Financing service fees

Sales of consumption services and products, membership services etc.

Note1: Including customer acquisition, risk profiling, collection, etc.

+28%

yoy

Loans Facilitated

+2%

yoy

# of Borrowers

Served

+13%

yoy

Total Revenue

Solid and sustainable growth in revenue and business scale

Healthy balance sheet and proactive shareholder returns

Core competitive advantages across all operations enhanced by 'AI Lab'

Number of Borrowers

Loans Facilitated

1Q25:

-12% QoQ

+2% YoY

1,204,012

1,491,756

1,371,501

1,560,789

1,498,020

1,375,406

1,352,200

1,013,972

1Q25:

-1% QoQ

+28% YoY

11,646 11,910

12,936 13,393

(RMB Million)

15,353 15,238

9,814

8,156

2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25

67%

59%

56%

55%

61%

65%

74%

26%

35%

39%

44%

45%

41%

33%

Starting in H2 2023, the company upgraded its customer segmentation, attracting higher-quality borrowers with stronger repayment capabilities and better risk profiles. These efforts began yielding results by 3Q24, with repeat borrowing rates among this segment becoming the new focus. In 1Q25, the repeat borrowing rate reached 74%.

2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25

Gross Written Premiums

Cumulative Number of Insurance Clients

1Q25:

-27% QoQ

-12% YoY

(RMB Million)

1Q25:

+4% QoQ

+18% YoY

1,256,762

1,133,069

1,470,738

1,410,158

1,343,660

1,283,102

1,590,394

1,532,119

1,428

1,332

1,351

1,209

1,061

1,100

912

802

2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25

Note2: The decline in GWP was attributed to decreased new sales of insurance products amid industry-wide weakness following regulatory changes. Our GWP is expected to show visible recovery in 2Q25.

Net Revenue

GAAP Net Income

(RMB Million)

1Q25:

+7% QoQ

+13% YoY

1,324 1,311 1,274 1,378

1,497 1,479 1,452 1,555

(RMB Million)

1Q25:

-25% QoQ

-49% YoY

527

486

410

355

331

248

554 571

2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25

Note3:The decrease in net income was primarily due to: 1) Growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles, with the majority of the revenue benefits expected to materialize in the coming quarters.; 2) Declining sales in the insurance brokerage business; 3) Increased R&D costs; 4) An unrealized loss from fair value adjustments on invested assets, with some of these adjustments expected to reverse in 2Q25.

2.0% 2.0%

1.7%

1.6%

1.5%

1.4%

1.3%

1.2%

1.2% 1.2%

1.1% 1.1%

0.7%

0.6%

FY20 FY21 FY22 FY23 FY24 1Q25

Financial service business

Expanding customer base and increasing line of credits for high quality borrowers through constantly-evolving AI systems and improved services

Insurance brokerage

Proactively adapting products and partnerships to embrace new regulations in the short-term, and enhancing partnerships via both 2B2C and B2B models while expanding market reach through long-term product innovation and customization

International expansion

The financial services business in Southeast Asia is thriving and strategically expanding into global markets, capitalizing on insights and expertise acquired from its business activities in the Philippines

AI upgrade

Developing an LLMOps platform and LLMs for fintech and selected sectors, fostering a leading AI-powered service platform for both individuals and businesses.

Diversified Business Lines Driving Innovation and Value

Comprehensive services covering a wide range of financial needs

and consumption demands, strong synergies, healthy unit 01

economics with multiple growth drivers

A Leading AI Business in the Making

Harnessing AI expertise from fintech verticals to extend services to selected sectors, a highly scalable LLMOps platform with open-source

functionalities, and an expanding AI ecosystem 03

through strategic partnerships

High Profitability and Sufficient Cash Reserve

Continued growth in profitability with improved operational efficiency, strong cash position ready to seize any new opportunities ahead

19 Years of Operation & Strong Management Team

Strong management team with decades of experience in the industry,

solid operation fully tested by external changing environment

*Due to the expansion of asset categories in which the Company has invested and the significant fluctuations in their fair value changes, adjustments for fair value changes relating to crypto assets and financial investments are hereby incorporated, and historical periods have been restated to enhance investors' comprehension of the Company's financial statements.

* The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are more than 30 days past due, as a percentage of the total loans facilitated during that same period. Loans originating outside mainland China are excluded from the calculation.

Disclaimer

Yiren Digital Ltd. published this content on June 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 12, 2025 at 10:47 UTC.