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Yiren Digital Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Yiren Digital Ltd. (NYSE: YRD), a leader in AI-driven financial and lifestyle services in China, has disclosed its unaudited financial results for the quarter ending December 31, 2024. This latest reporting period highlights a year of transformative growth and strategic advancements in the company’s operations.

Operational Highlights for Q4 2024

Financial Services Growth

In the fourth quarter, Yiren Digital successfully facilitated loans totaling RMB 15.4 billion (approximately US$ 2.1 billion), marking a remarkable increase of 14.6% from the previous quarter and 32.7% over the same period last year. This growth underscores the company’s robust performance in the financial services market, showing a strong demand for their offerings. As of December 31, 2024, the cumulative number of borrowers reached 12,350,400, a 6.4% rise from the last quarter.

The number of new borrowers for this quarter rose to 1,560,789, reflecting a dedication to enhancing customer segments and boosting repeat borrowers. Yiren Digital is seeing continued improvements in asset quality, which is essential for sustainable growth.

Moreover, the outstanding balance of performing loans increased to RMB 24.8 billion (US$ 3.4 billion) as of the end of December, indicating an 8.7% rise from the prior quarter and 35.9% year-over-year growth.

Insurance Brokerage Insights

The insurance brokerage segment also exhibited positive trends, serving 1,532,119 clients by the end of Q4, a 4.2% increase from September. New insurance clients numbered 83,786 in this quarter, showing a modest rise despite a comparison to the previous year when numbers were slightly higher due to new product introductions. Total gross written premiums in Q4 amounted to RMB 1,100.3 million (US$ 150.7 million), reflecting a decrease of 18.6% from Q3 2024, mainly due to regulatory impacts on new sales.

Lifestyle and Consumption Services

Revenue from Yiren Digital’s lifestyle business and other services was recorded at RMB 298.0 million (US$ 40.8 million), down by 24.5% from Q4 2023. This decline can be attributed to a strategic shift in focusing on a more refined customer base, prompting a re-evaluation of product offerings in order to better serve existing customers. The company is currently undertaking a strategic review of this segment to enhance its market viability.

Q4 Financial Breakdown

Total net revenue for Q4 was RMB 1,452.2 million (US$ 199.0 million), up by 14.0% from the prior year’s quarter, driven largely by the flourishing financial services sector. The profitability from this segment alone brought in RMB 1,047.8 million (US$ 143.5 million), showcasing a 34.1% growth year-over-year.

Expenses linked to sales and marketing surged to RMB 298.5 million (US$ 40.9 million) due to increased marketing activities aimed at attracting higher-quality clients, illustrating the company's commitment to growth and customer acquisition.

Notably, the research and development costs saw a sharp increase to RMB 164.7 million (US$ 22.6 million) as Yiren Digital continues to invest heavily in AI technologies to improve operational efficiencies.

Full Year Financial Overview: Fiscal Year 2024

The completeness of 2024 saw Yiren Digital achieving total net revenue of RMB 5,805.9 million (US$ 795.4 million), a 19% uplift from 2023. This year marked significant improvements in financial service revenues, which totaled RMB 3,473.1 million (US$ 475.8 million), up from RMB 2,515.1 million a year prior. This showcases the growing demand for their revolving loan products.

Despite the challenges, net income for 2024 reached RMB 1,582.3 million (US$ 216.8 million), albeit lower than the previous year’s figures regionally due to increased investment in strategic growth initiatives.

The company maintained a solid cash position, holding RMB 3.8 billion in cash and equivalents, reinforcing its financial flexibility.

Looking Ahead: 2025 Projections

For the upcoming fiscal year, Yiren Digital forecasts total revenue to range between RMB 5.5 billion to RMB 6.5 billion, anticipating steady growth driven by robust demand and ongoing organizational enhancements. With successful expansions projected, particularly in markets like the Philippines, Yiren Digital is optimistic about its capacity to sustain high-quality growth moving forward.

Conclusion

Yiren Digital's 2024 performance reflects a blend of resilience and innovation, setting a solid foundation for future endeavors in both financial services and AI-led solutions. The management's focus on customer segment growth, operational efficiency, and strategic investments positions the company well for continued advancement in a competitive landscape.