Yiren Digital (YRD) Deutsche Bank’s Depositary Receipts Virtual Investor Conference summary

Business overview and evolution

• Transitioned from offline to online models in consumer lending and insurance, leveraging 18 years of experience.

• Operates three main business units: consumer lending, insurance brokerage, and lifestyle/consumption services.

• Core lending business connects borrowers to institutional funding partners using AI-driven risk evaluation and anti-fraud systems.

• Customer acquisition relies on major Chinese social media and e-commerce platforms.

• Insurance business offers both life and property products, serving business and affluent individual clients.

Financial performance and revenue model

• Loan facilitation volume grew 59% year-on-year, with borrower numbers up 47%.

• Insurance gross written premiums rebounded to RMB 1 billion after regulatory-driven declines.

• Total revenue reached RMB 1.49 billion last quarter, up 9% quarter-on-quarter.

• Net income margin declined due to higher customer acquisition costs and product mix changes.

• Revenue streams include service fees from lending, insurance commissions, and sales of lifestyle products.

Risk management and technology

• Maintains low delinquency rates: under 1% for 15-29 days, 1.4% for 30-59 days, 1.6% for 60-89 days.

• AI and data-driven risk models leverage over 5,000 external data dimensions and 100 million registered users.

• Ongoing AI upgrades target cost reduction, risk minimization, and operational efficiency.