BEIJING, March 19, 2026 /PRNewswire/ -- Yiren Digital Ltd. $(YRD)$ ("Yiren Digital" or the "Company"), a leading fintech company specializing in digital consumer lending, insurance and financial technology innovation across China and global markets, today announced its unaudited financial results for the fourth quarter and 2025 fiscal year ended December 31, 2025.
Fourth Quarter and Fiscal Year 2025 Operational Highlights
Credit Solution Business (formerly known as Financial Services Business)
-- Total loans facilitated in the fourth quarter of 2025 was RMB12.0 billion
(US$1.7 billion), representing a decrease of 40% compared to RMB20.2
billion in the third quarter of 2025 and a decrease of 22% compared to
RMB15.4 billion in the same period of 2024. Total loans facilitated for
the 2025 full year reached RMB67.8 billion (US$9.7 billion), representing
an increase of 26% from RMB53.6 billion in 2024.
-- Number of borrowers served in the fourth quarter of 2025 was 742,444,
representing a decrease of 44% compared to 1,335,978 in the third quarter
of 2025 and a decrease of 52% compared to 1,560,789 in the same period of
2024. The decrease was due to the strategic tightening of the credit
policy amid ongoing industry-wide fluctuations in credit risk.
-- Repeat borrowers' loan amount [1] accounted for 77% of the total volume
of loans facilitated in the fourth quarter of 2025, in line with the
third quarter of 2025. Repeat borrowers' loan amount percentage was 76%
for the 2025 full year, compared to 59% in 2024.
-- Cumulative number of borrowers served reached 14,295,499 as of December
31, 2025, representing an increase of 2% from 14,006,873 as of September
30, 2025, and an increase of 16% compared to 12,350,400 as of December
31, 2024.
-- Outstanding balance of performing loans facilitated was RMB28.6 billion
(US$4.1 billion) as of December 31, 2025, representing a decrease of 17%
from RMB34.2 billion as of September 30, 2025, and an increase of 15%
compared to RMB24.8 billion as of December 31, 2024.
Insurance Brokerage Business
-- Gross written premiums in the fourth quarter of 2025 were RMB860.1
million (US$123.0 million), representing a decrease of 25% from
RMB1,148.0 million in the third quarter of 2025 and a decrease of 22%
compared to RMB1,100.3 million in the same period of 2024. The decline
was primarily due to reduced gross written premiums from broker channels,
partially offset by the continued strong growth of the internet insurance
distribution business.
-- Cumulative number of insurance clients was 2,035,550 as of December 31,
2025, representing an increase of 10% from 1,853,435 as of September 30,
2025, and an increase of 33% from 1,532,119 as of December 31, 2024.
-- Number of new insurance policies in the fourth quarter of 2025 was
824,225, representing a 16% increase from 710,079 in the third quarter of
2025, and a 68% increase from 490,409 in the same period of 2024. This
was primarily driven by the rapid expansion of internet distribution
channels throughout 2025.
"Our early efforts to strengthen credit standards and proactively build financial buffers ahead of the industry downturn have allowed us to navigate a challenging market environment while maintaining stable operations," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "The AI-driven risk management system we built over the past two years is delivering measurable results, sharpening our credit decision-making capabilities and reinforcing our operational resilience in China's evolving credit market. These same AI capabilities are enabling us to scale our internet insurance distribution business, which sustained strong growth momentum in 2025 and meaningfully expanded our addressable market. Our strategic focus in 2026 is to deepen our AI-driven operating model and accelerate the transformation of our two core business segments into purpose-built frameworks that serve institutional and individual clients and generate more commercial opportunities from the AI technologies we have developed over the past few years."
"Fiscal 2025 was a period of elevated credit risk across the consumer lending industry, and we met this environment with disciplined risk management and proactive balance sheet stewardship. We tightened our credit policy early and accumulated cash reserves to ensure we navigated the cycle with excess financial strength. Our internet insurance distribution business delivered strong momentum throughout the year, emerging as a meaningful contributor to revenue diversification and a proof point of our ability to scale new business lines," Mr. William Hui, Chief Financial Officer of Yiren Digital, commented.
Fourth Quarter 2025 Financial Results
Total net revenue in the fourth quarter of 2025 was RMB957.6 million (US$136.9 million), representing a decrease of 34% from RMB1,452.2 million in the fourth quarter of 2024.
Within this, revenue from credit solution business was RMB832.7 million (US$119.1 million), representing a decrease of 21% from RMB1,047.8 million in the same period of 2024. The decrease was mainly attributed to a decline in service fee rate under the new regulatory framework and a proactive, strategic scale-back on the loan facilitation volume of credit solution business amid heightened market risks. Revenue from credit solution business accounted for 87% of total net revenue in the fourth quarter.
Revenue from insurance brokerage business was RMB83.8 million (US$12.0 million) in the fourth quarter of 2025, representing a decrease of 21% from RMB106.4 million in the fourth quarter of 2024 due to structural compression in service fee rate in recent years. The internet distribution sub-segment has demonstrated strong growth momentum since mid-2025 and its contribution to total brokerage revenue is increasing significantly in the fourth quarter of 2025 to 22%.
Revenue from other business was RMB41.1 million (US$5.9 million), compared with RMB298.0 million in the same period of 2024. The decrease was mainly attributable to the continued decline in sales through the e-commerce business.
Sales and marketing expenses in the fourth quarter of 2025 were RMB206.1 million (US$29.5 million), a decrease of 31% compared to RMB298.5 million in the same period of 2024. This change was mainly attributable to a scale-down in facilitated loan volume in the fourth quarter of 2025, and a higher contribution from repeat borrowers through Yixianghua platform, which increased to 77%, compared with 65% in the same period last year, and a decrease in new customer acquisition costs as the result of AI-assisted precision marketing.
Origination, servicing and other operating costs in the fourth quarter of 2025 were RMB250.9 million (US$35.9 million), representing a 27% increase from RMB197.2 million in the same period of 2024. The increase reflects a strategic decision to raise asset recovery commissions to incentivize stronger recovery performance amid a challenging credit environment. These incremental recovery costs were partially offset by meaningful savings from the accelerated deployment of AI agents and automation across the collection and customer service workflows, as well as disciplined cost management across broader operations.
Research and development expenses in the fourth quarter of 2025 were RMB121.4 million (US$17.4 million), a decrease of 26% compared to RMB164.7 million in the same period of 2024, and an increase of 33% from RMB91.5 million in the third quarter of 2025. The year-over-year decrease in R&D expenses was mainly due to a high base resulting from a one-off development expense in the AI credit system in the second half of 2024. With that build largely complete, the deeper integration of AI automation tools across the credit analytic workflows in 2025 delivered measurable efficiency gains and a more optimized cost structure. R&D expenses increased in the fourth quarter compared to the third quarter due to increased investment in senior AI R&D talent to support the execution of the 2026 AI roadmap.
General and administrative expenses in the fourth quarter of 2025 were RMB44.3 million (US$6.3 million), representing a modest increase of 5%, compared to RMB42.2 million in the same period of 2024 and a decrease of 58% from RMB104.4 million in the third quarter of 2025. As Yiren Digital continues to invest in talent and implement organizational restructuring to strengthen its operational capabilities, these expenses may have some seasonal fluctuation.
Allowance for contract assets, receivables and others in the fourth quarter of 2025 was RMB295.8 million (US$42.3 million), compared to RMB203.1 million in the same period of 2024. The increase was driven by higher receivables from guarantee services and financing services, fueled by rising expected loss rates amid an industry-level higher risk profile of assets.
Provision for contingent liabilities in the fourth quarter of 2025 was RMB1,110.1 million (US$158.7 million), compared to RMB250.7 million in the same period of 2024. The increase was primarily driven by the overall growth in loan volume originated under the risk-taking model([) (2) (]) , coupled with a higher-risk asset profile.
Fair value adjustments gain/(loss) in the fourth quarter of 2025 was a loss of RMB84.9 million (US$12.1 million), compared to a gain of RMB16.9 million in the same period of 2024, and a gain of RMB161.3 million in the third quarter of 2025. The decrease primarily resulted from fair value changes in crypto assets, reflecting the overall decline in digital asset prices during the fourth quarter of 2025.
Income tax benefit in the fourth quarter of 2025 was RMB245.3 million (US$35.1 million).
Net loss for the fourth quarter of 2025 was RMB882.2 million (US$126.1 million), compared to a net income of RMB331.4 million in the same period in 2024. The loss primarily resulted from substantial upfront provisions recognized in the quarter for risk-taking model assets in the credit solution business -- required by accounting standards for the expanding loan volume under the risk-taking model -- along with a higher-risk asset profile and lower fee rates in the loan facilitation business under the new regulations. The short-term impact of accounting standards on earnings should normalize as the risk-taking loan balance stabilizes.
Adjusted EBITDA([) (3) (]) (non-GAAP) in the fourth quarter of 2025 was a loss of RMB1,022.8 million (US$146.3 million), compared to a gain of RMB319.5 million in the same period of 2024 and a gain of RMB236.8 million in the third quarter of 2025.
Basic and diluted loss per ADS in the fourth quarter of 2025 were RMB10.1230 (US$1.4476) and RMB10.0650 (US$1.4392), respectively, compared to basic and diluted income per ADS of RMB3.8378 and RMB3.8156, respectively, in the same period of 2024.
Net cash used in operating activities in the fourth quarter of 2025 was RMB197.6 million (US$28.3 million), compared to RMB373.0 million generated from operating activities in the same period of 2024.
Net cash provided by investing activities in the fourth quarter of 2025 was RMB50.8 million (US$7.3 million), compared to RMB32.9 million used in investing activities in the same period of 2024.
Net cash used in financing activities in the fourth quarter of 2025 was RMB234.1 million (US$33.5 million), compared to RMB114.3 million in the same period of 2024.
As of December 31, 2025, cash and cash equivalents were RMB3,348.1 million (US$478.8 million), compared to RMB3,841.3 million as of December 31, 2024. As of December 31, 2025, the balance of financial investments was RMB483.7 million (US$69.2 million), compared to RMB437.2 million as of December 31, 2024.
Delinquency rates([) (4) (]) . As of December 31, 2025, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 3.4%, 3.0% and 2.8%, respectively, compared to 2.7%, 1.7% and 1.4%, respectively, as of September 30, 2025.
Fiscal Year 2025 Financial Results
Total net revenue in 2025 was RMB5,719.2 million (US$817.8 million), representing a decrease of 1% from RMB5,805.9 million in 2024.
By segment, revenue from credit solution business was RMB5,040.0 million (US$720.7 million), representing an increase of 45% from RMB3,473.1 million in 2024. The increase was primarily attributable to increased guarantee services revenue from overall growth in loan volume originated under the risk-taking model in 2025, as well as to increased revenue from marketing services and technical support services.
Revenue from insurance brokerage business was RMB297.6 million (US$42.6 million) in 2025, representing a decrease of 27% from RMB408.4 million in 2024. The decline reflects structural compression in brokerage commission rates and tightened market conditions under enhanced regulatory oversight in recent years. However, the internet distribution channel has demonstrated strong growth momentum in 2025 and accounted for 14% of revenue in this segment for the whole year result.
Revenue from other business was RMB381.6 million (US$54.6 million), compared with the revenue of RMB1,924.4 million in 2024. The decrease was mainly attributable to a continued decline in sales from the e-commerce business.
Sales and marketing expenses in 2025 were RMB1,159.9 million (US$165.9 million), a 3% decrease compared to RMB1,196.4 million in 2024, while total loan facilitation increased by 26% in 2025, reflecting improved customer acquisition efficiency. The decline in sales and marketing expenses was mainly attributable to a higher contribution from repeat borrowers through the Yixianghua platform, which increased to 76% in 2025, compared with 59% in 2024. The increasing application of Artificial Intelligence Generated Content ("AIGC") and AI agents in tele-sales also contributed to the decrease in this expense.
Origination, servicing and other operating costs in 2025 were RMB786.4 million (US$112.5 million), representing an 11% decrease from RMB883.0 million in 2024. This decrease was primarily driven by cost savings from decreased insurance brokerage business along with the broader use of AI agents to automate customer service, and enhanced cost discipline in overall operations.
Research and development expenses in 2025 were RMB406.6 million (US$58.1 million), representing a decrease of 1% compared to RMB411.9 million in 2024. R&D expenses were well-balanced in 2025 as the AI credit system completed a major upgrade at the end of 2024, which created cost savings, offset by an increase in AI talent for future AI initiatives.
General and administrative expenses in 2025 were RMB323.4 million (US$46.2 million), representing an increase of 18% compared to RMB274.7 million in 2024, primarily driven by the continuous investment in professionals and specialized talent to support business diversification and strengthen risk management, alongside organizational restructuring initiatives.
Allowance for contract assets, receivables and others in 2025 was RMB892.7 million (US$127.6 million), compared to RMB523.6 million in 2024. The increase was driven by increased loan facilitation volume in 2025 compared to the prior year, which resulted in higher receivables and a corresponding increase in the allowance.
Provision for contingent liabilities in 2025 was RMB2,366.3 million (US$338.4 million), compared to RMB869.3 million in 2024. The increase was primarily driven by the overall growth in loan volume originated under the risk-taking model in 2025, coupled with a higher-risk asset profile.
Fair value adjustments gain in 2025 was RMB46.1 million (US$6.6 million) compared to RMB107.5 million in 2024. The decrease was mainly attributable to fair value changes in crypto assets, reflecting weaker digital asset prices in the fourth quarter of 2025.
Income tax benefit in 2025 was RMB99.0 million (US$14.2 million), compared to an income tax expense of RMB279.2 million in 2024.
Net income in 2025 was RMB40.5 million (US$5.8 million), compared to RMB1,582.3 million in 2024. The decrease primarily resulted from increasing allowance of contract assets and receivables due to more loan facilitation volume during the period, plus substantial upfront provisions recognized for the risk-taking model assets in the fourth quarter of 2025 required by accounting standards, along with a higher-risk asset profile and lower fee rates in the loan facilitation business under new regulations. The short-term impact of accounting standards on earnings should normalize as the risk-taking loan balance stabilizes.
Adjusted EBITDA (non-GAAP) in 2025 was a loss of RMB109.6 million (US$15.7 million), compared to a gain of RMB1,776.2 million in 2024.
Basic and diluted income per ADS in 2025 were RMB0.4670 (US$0.0668) and RMB0.4640 (US$0.0664), respectively, compared to RMB18.2654 and RMB18.1132, respectively, in 2024.
Net cash generated from operating activities in 2025 was RMB686.7 million (US$98.2 million), compared to RMB1,424.1 million in 2024.
Net cash used in investing activities in 2025 was RMB1,554.6 million (US$222.3 million), compared to RMB3,113.1 million in 2024.
Net cash provided by financing activities in 2025 was RMB662.6 million (US$94.8 million), compared to RMB277.2 million used in financing activities in 2024.
Dividend Policy
Under the Company's semi-annual dividend policy, the Board has determined to temporarily suspend the Company's cash dividend for the second half of 2025. This decision reflects the Company's current capital priorities, including maintaining appropriate reserves to support potential credit fluctuations in its lending business and funding investments in technology development. The Board periodically reviews the Company's capital requirements, financial condition and results of operations when considering future dividend declarations.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.
Currency Conversion
This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.9931 to US$1.00, the effective noon buying rate on December 31, 2025, as set forth in the H.10 statistical release of the Federal Reserve Board.
Conference Call
Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on March 19, 2026 (or 8:00 p.m. Beijing/Hong Kong Time on March 19, 2026).
Participants who wish to join the call should register online in advance of the conference at:
https://dpregister.com/sreg/10207200/1036f9b7260.
Once registration is completed, participants will receive the dial-in details for the conference call.
Additionally, a live and archived webcast of the conference call will be available at:
https://ir.yiren.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
About Yiren Digital
Yiren Digital Ltd. is a leading fintech company specializing in digital consumer lending, insurance, and financial technology innovation across China and global markets. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. With the successful filing of the in-house developed Large Language Model Zhiyu, the substantial upgrade of its Magicube Agent platform, Yiren Digital is establishing a new growth engine to position itself as an AI-powered next-generation fintech leader. For more information, please visit https://ir.yiren.com.
([1]) "Repeat borrowers' loan amount" refers to the proportion of total loan
facilitation and origination volume through Yixianghua platform in a given
period that is generated by borrowers who have previously completed at least
one successful drawdown during that period.
([2]) "The risk-taking model" refers to the framework in which Yiren Digital
assumes the credit risk for the loans facilitated on its platform.
([3]) "Adjusted EBITDA" is a non-GAAP financial measure. For more information
on this non-GAAP financial measure, please see the section of "Operating
Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table
captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this
press release.
([4]) "Delinquency rates" refers to the outstanding principal balance of loans
that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the
total performing outstanding principal balance of loans as of a specific date.
Loans originating outside mainland China are not included in the calculation.
We define a performing loan as one that is being repaid according to the
agreed terms and has not become delinquent for more than 90 days.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except for share, per share and per ADS data, and percentages)
For the Three Months Ended For the Year Ended
-------------------------------------------------- --------------------------------------
December September December December December December December 31,
31, 2024 30, 2025 31, 2025 31, 2025 31, 2024 31, 2025 2025
----------- ----------- ----------- ----------- ----------- ------------
RMB RMB RMB USD RMB RMB USD
Net revenue:
Loan facilitation services 748,663 611,859 5,734 820 2,721,389 2,234,571 319,539
Post-origination services 1,474 2,617 (7,569) (1,082) 5,957 7,255 1,038
Guarantee services 206,766 458,363 612,283 87,555 429,299 1,705,985 243,953
Financing services 31,551 67,850 67,541 9,658 93,239 243,099 34,763
Insurance brokerage services 106,387 84,228 83,768 11,979 408,369 297,593 42,555
Electronic commerce services 292,678 32,555 14,405 2,060 1,865,621 324,996 46,474
Network and marketing
services* 61,804 222,032 151,619 21,681 241,114 636,277 90,986
Technology services* 1,470 70,646 26,555 3,797 33,570 256,323 36,654
Others* 1,400 4,814 3,294 471 7,343 13,121 1,876
Total net revenue 1,452,193 1,554,964 957,630 136,939 5,805,901 5,719,220 817,838
Operating costs and expenses:
Sales and marketing 298,458 331,758 206,058 29,466 1,196,429 1,159,934 165,868
Origination,servicing and
other operating costs 197,232 149,911 250,878 35,875 882,957 786,386 112,452
Research and development 164,703 91,514 121,406 17,361 411,876 406,567 58,138
General and administrative 42,232 104,420 44,250 6,328 274,673 323,369 46,241
Allowance for contract
assets, receivables and
others 203,090 229,355 295,798 42,298 523,622 892,656 127,648
Provision for contingent
liabilities 250,691 459,783 1,110,124 158,746 869,280 2,366,344 338,383
Total operating costs and
expenses 1,156,406 1,366,741 2,028,514 290,074 4,158,837 5,935,256 848,730
Other income/(loss):
Investment income 7,356 3,791 1,047 150 19,168 9,055 1,295
Interest income 23,863 19,704 14,473 2,070 86,309 78,764 11,263
Fair value adjustments
gain/(loss) 16,935 161,328 (84,917) (12,143) 107,532 46,053 6,585
Others, net (1,353) 644 12,821 1,833 1,848 28,223 4,036
Total other income/(loss) 46,801 185,467 (56,576) (8,090) 214,857 162,095 23,179
Income/(loss) before
provision for income taxes 342,588 373,690 (1,127,460) (161,225) 1,861,921 (53,941) (7,713)
Share of results of equity
investees (440) - - - (440) (4,560) (652)
Income tax expense/(benefit) 10,702 56,053 (245,303) (35,078) 279,182 (99,027) (14,160)
Net income/(loss) 331,446 317,637 (882,157) (126,147) 1,582,299 40,526 5,795
Weighted average number of
ordinary shares outstanding,
basic 172,723,644 174,179,898 174,286,897 174,286,897 173,256,348 173,575,410 173,575,410
Basic income/(loss) per share 1.9189 1.8236 (5.0615) (0.7238) 9.1327 0.2335 0.0334
Basic income/(loss) per ADS 3.8378 3.6472 (10.1230) (1.4476) 18.2654 0.4670 0.0668
Weighted average number of
ordinary shares outstanding,
diluted 173,727,886 175,153,288 175,292,459 175,292,459 174,711,569 174,684,691 174,684,691
Diluted income/(loss) per
share 1.9078 1.8135 (5.0325) (0.7196) 9.0566 0.2320 0.0332
Diluted income/(loss) per ADS 3.8156 3.6270 (10.0650) (1.4392) 18.1132 0.4640 0.0664
Unaudited Condensed
Consolidated Cash Flow Data
Net cash generated from/(used
in) operating activities 373,038 (5,484) (197,645) (28,263) 1,424,082 686,745 98,203
Net cash (used in)/provided
by investing activities (32,948) (707,599) 50,800 7,264 (3,113,115) (1,554,589) (222,303)
Net cash (used in)/provided
by financing activities (114,341) 529,732 (234,140) (33,482) (277,226) 662,604 94,751
Effect of foreign exchange
rate changes 15,020 (10,449) (7,989) (1,142) 9,212 (25,483) (3,644)
Net increase/(decrease) in
cash, cash equivalents and
restricted cash 240,769 (193,800) (388,974) (55,623) (1,957,047) (230,723) (32,993)
Cash, cash equivalents and
restricted cash, beginning
of period 3,860,788 4,453,608 4,259,808 609,145 6,058,604 4,101,557 586,515
Cash, cash equivalents and
restricted cash, end of
period 4,101,557 4,259,808 3,870,834 553,522 4,101,557 3,870,834 553,522
=========== =========== =========== =========== =========== =========== ============
* Given the Company's diversified revenue streams, Network and marketing services and Technology services are now
separately presented from Other revenue, with the remaining balance classified as Others. Comparative figures for the
prior period have been restated.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
As of
-------------------------------------------------
December September December December 31,
31, 2024 30, 2025 31, 2025 2025
---------- ---------- ---------- ------------
RMB RMB RMB USD
Cash and cash
equivalents 3,841,284 3,864,891 3,348,126 478,776
Restricted cash 260,273 394,917 522,708 74,746
Accounts receivable 566,541 796,551 753,463 107,744
Guarantee receivable 474,132 715,996 832,905 119,104
Contract assets, net 1,008,920 1,227,236 619,291 88,557
Contract cost 294 6,936 4,287 613
Prepaid expenses and
other assets 2,361,585 2,672,111 1,848,697 264,360
Loans at fair value 421,922 473,570 342,895 49,033
Financing receivables 17,515 1,061,080 909,182 130,011
Amounts due from related
parties 3,387,952 3,101,835 2,974,080 425,288
Financial investments 437,203 498,766 483,700 69,168
Equity investments 9,239 4,633 11,528 1,649
Property, equipment and
software, net 78,678 84,867 50,403 7,208
Crypto assets - 333,530 391,267 55,950
Deferred tax assets 77,463 173,182 325,094 46,488
Right-of-use assets 39,695 40,257 37,329 5,338
Total assets 12,982,696 15,450,358 13,454,955 1,924,033
---------- ---------- ---------- ------------
Accounts payable 43,167 50,401 79,630 11,387
Amounts due to related
parties 129,629 51,826 44,179 6,317
Guarantee
liabilities-stand
ready 606,886 929,970 989,701 141,525
Guarantee
liabilities-contingent 578,797 874,717 1,300,097 185,911
Deferred revenue 9,479 335 227 33
Payable to investors at
fair value 368,022 1,392,631 1,294,792 185,153
Accrued expenses and
other liabilities 1,622,050 1,656,601 404,680 57,869
Deferred tax liabilities 41,471 108,404 30,619 4,379
Lease liabilities 40,765 42,596 39,758 5,685
Total liabilities 3,440,266 5,107,481 4,183,683 598,259
---------- ---------- ---------- ------------
Ordinary shares 132 133 133 19
Additional paid-in
capital 5,198,457 5,229,667 5,239,550 749,246
Treasury stock (170,463) (170,686) (170,686) (24,408)
Accumulated other
comprehensive income 79,268 70,603 10,722 1,533
Retained earnings 4,435,036 5,213,160 4,191,553 599,384
Total equity 9,542,430 10,342,877 9,271,272 1,325,774
---------- ---------- ---------- ------------
Total liabilities and equity 12,982,696 15,450,358 13,454,955 1,924,033
========== ========== ========== ============
Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except for number of borrowers, number of insurance clients, cumulative number of insurance clients and
percentages)
For the Three Months Ended For the Year Ended
------------------------------------
December September December December December December December 31,
31, 2024 30, 2025 31, 2025 31, 2025 31, 2024 31, 2025 2025
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RMB RMB RMB USD RMB RMB USD
Operating Highlights
Amount of loans facilitated 15,352,533 20,166,545 12,038,386 1,721,466 53,591,593 67,790,653 9,693,935
Number of borrowers 1,560,789 1,335,978 742,444 742,444 4,187,502 3,513,192 3,513,192
Remaining principal of performing loans 24,755,199 34,235,130 28,574,962 4,086,165 24,755,199 28,574,962 4,086,165
Cumulative number of insurance clients 1,532,119 1,853,435 2,035,550 2,035,550 1,532,119 2,035,550 2,035,550
Number of insurance clients 83,786 229,353 267,730 267,730 296,842 589,756 589,756
Gross written premiums 1,100,262 1,147,966 860,106 122,994 4,424,889 3,659,950 523,366
First year premium 475,285 443,189 469,498 67,138 2,078,190 1,765,537 252,469
Renewal premium 624,977 704,777 390,608 55,856 2,346,699 1,894,413 270,897
Segment Information
Credit solution business:
Revenue 1,047,768 1,423,231 832,728 119,078 3,473,109 5,040,026 720,714
Sales and marketing expenses 290,253 322,184 156,400 22,365 1,102,737 1,071,892 153,279
Origination, servicing and other
operating costs 123,585 87,322 182,160 26,049 442,312 515,722 73,747
Allowance for contract assets,
receivables and others 200,755 226,267 296,962 42,465 519,895 891,601 127,497
Provision for contingent liabilities 250,691 459,783 1,110,124 158,746 869,280 2,366,344 338,383
Insurance brokerage business:
Revenue 106,387 84,228 83,768 11,979 408,369 297,593 42,555
Sales and marketing expenses 2,333 2,077 1,639 234 13,706 9,242 1,321
Origination, servicing and other
operating costs 69,518 61,142 65,651 9,388 407,225 260,916 37,311
Allowance for contract assets,
receivables and others 241 677 (1,242) (178) (663) (579) (83)
Others:
Revenue 298,038 47,505 41,134 5,882 1,924,423 381,601 54,569
Sales and marketing expenses 5,872 7,497 48,019 6,867 79,986 78,800 11,268
Origination, servicing and other
operating costs 4,129 1,447 3,067 438 33,420 9,748 1,394
Allowance for contract assets,
receivables and others (756) 34 (1) - 908 (1,916) (274)
Reconciliation of Adjusted EBITDA
Net income/(loss) 331,446 317,637 (882,157) (126,147) 1,582,299 40,526 5,795
Interest income and investment income,
net (31,219) (23,495) (15,520) (2,220) (105,477) (87,819) (12,558)
Income tax expense/(benefit) 10,702 56,053 (245,303) (35,078) 279,182 (99,027) (14,160)
Depreciation and amortization 2,574 3,252 4,758 681 8,893 12,950 1,852
Share-based compensation 350 14,439 6,662 953 16,928 30,220 4,321
Fair value adjustments related to crypto
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