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Yiren Digital Reports First Quarter 2025 Financial Results

In the first quarter of 2025, Yiren Digital Ltd. (NYSE: YRD), an AI-enabled platform delivering a wide range of financial and lifestyle services across Asia, published its unaudited financial results. The company demonstrated notable endurance and adaptability under the current economic climate, resulting in a solid operational performance.

Operational Highlights

Financial Services Business

Yiren's robust financial services saw loans facilitated reaching RMB 15.2 billion (approximately US$ 2.1 billion). Although there was a marginal decline of 1% compared to the previous quarter, it did see a significant increase from RMB 11.9 billion in the same quarter last year. The total number of borrowers served as of March 31, 2025, rose to a staggering 12.9 million, reflecting a 5% growth compared to the previous quarter. However, the number of borrowers serviced in Q1 2025 did experience a drop of 12% sequentially, attributed to a strategic pivot to focus on repeat borrowing among high-quality clients.

As of the end of March 2025, the value of outstanding performing loans reached RMB 27.5 billion (approximately US$3.8 billion), which marks an increase of 11% since the end of 2024. These impressive figures illustrate Yiren's commitment to maintaining a solid market presence while responsibly managing its portfolio.

Insurance Brokerage Business

The company’s insurance brokerage sector also continued evolving, with the cumulative number of clients served reaching 1,590,394, a solid growth of 4% month-on-month. However, the quarter did witness a 7% drop in the number of active clients compared to Q4 2024, largely due to a slowdown in new sales attributed to industry-level regulatory tightening. Consequently, gross written premiums fell to RMB 801.8 million (or US$ 110.5 million), a decline of 27% from the previous quarter.

Financial Performance

Revenue for the quarter was recorded at RMB 1.6 billion, representing an impressive 13% year-over-year growth. Particularly, revenues from the financial services segment surged by 59% compared to the same quarter in the previous year, driven by the growing demand for small revolving loan products. However, insurance brokerage revenues declined by 43%, influenced by a downturn in life insurance sales and regulatory changes affecting commission structures. Revenues from the consumption and lifestyle sector also dropped by 40%, indicating fewer new sales opportunities.

Yiren Digital's commitment to innovation is evident in its R&D expenditure, which jumped to RMB 86.0 million, showcasing a focus on advancements in AI to enhance its market positioning. Despite a decrease in net income to RMB 247.5 million, linked to increased provisions for new loan models and losses in certain segments, Yiren maintains a strong cash position of RMB 4.0 billion.

Recent Developments

In terms of management changes, the company has appointed Mr. Ka Chun William Hui as the new CFO effective June 30, 2025, as Mr. Yuning Feng resigns. Hui brings extensive experience in investment banking, enhancing Yiren Digital's strategic direction.

To bring value to its shareholders, Yiren Digital's board introduced a 2025 Share Incentive Plan, allocating 18,560,000 ordinary shares aimed at bolstering company performance and market competitiveness.

Future Outlook

Looking ahead, Yiren Digital projects revenues between RMB 1.6 billion to RMB 1.7 billion for the second quarter of 2025, driven by loan growth and broader market penetration. This optimistic forecast coupled with ongoing strategic initiatives reinforces Yiren's potential for sustainable growth amid evolving market dynamics. The company remains focused on leveraging technological advancements to secure its position as a leader in financial and lifestyle services in Asia.

Yiren Digital's unwavering commitment to its growth strategy and innovative technology deployment underscores its resilience in today's market.

In conclusion, while challenges exist, Yiren Digital continues to exhibit a capacity for recovery and adaptation, making it a formidable player in the financial technology landscape.