Yiren Digital Ltd. (YRD) stock soared 11.11% in the current-market trading session at the price of $4.20 despite no fundamental reason. The last reported news was its financial results for the second quarter ended 30th June 2021. YRD is a Chinese digital finance management program. It provides cash management solutions and asset allocation services to customers.
YRD Second Quarter 2021 Earnings Report
On 19th August 2021, YRD published its financial results for the second quarter ended 30th June 2021 and provided business updates.
Management Comments
Chief Executive Officer of YRD, Mr. Ning Tang, remarked that they are happy to present another quarter results with solid growth. They have witnessed substantial progress in profitability and an immensely diversified revenue mix. The company continues to grow its competitive edge and drive its market scale. It has also developed advanced strategies for different business groups. The management is concentrating on high-quality growth in the credit sector that will pave the way to launch diversified products. Starting from the second half of 2021, they keep expanding their SME segment to support general finance, he added.
Financial Highlights
YRD reported net revenue of RMB1,125.0 million (US$174.2 million) for the second quarter of 2021. Net revenues were RMB754.7 million in the same quarter of the previous year. Revenue from the wealth management business was RMB286.8 million (US$44.4 million). It represents a drop of 11.0% from RMB322.4 million in the same period of 2020. General and administrative expenses were RMB127.7 million (US$19.8 million) in the second quarter ended 30rh June 2021. G&A expenses were RMB172.6 million in the same quarter ended 30th June 2020. For the second quarter of 2021, sales and marketing expenses were RMB436.9 million (US$67.7 million).
YRD reported a net income of RMB200.1 million (US$31.0 million) in the second quarter of 2021. The net loss was RMB232.2 million in the same quarter of the previous year. Diluted income per ADS was RMB2.4 (US$0.4) in the second quarter ended 30th June 2021. Diluted loss per ADS was RMB2.5 in the same quarter ended 30th June 2020. Net cash utilized in operating activities was RMB213.0 million (US$33.0 million) in the second quarter of 2021. As of 30th June 2021, cash and cash equivalents were RMB2,192.5 million (US$339.6 million). Cash and cash equivalents were RMB2,362.3 million as of 31st March 2021.
