Technology
Yiren Digital Reports Third Quarter 2024 Financial Results
Published
2 years agoon
By
BEIJING, Nov. 20, 2024 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), an AI-powered platform providing a comprehensive suite of financial and lifestyle services in China, today announced its unaudited financial results for the quarter ended September 30, 2024.
Third Quarter 2024 Operational Highlights
Financial Services Business
Total loans facilitated in the third quarter of 2024 reached RMB13.4 billion (US$1.9 billion), representing an increase of 3.5% from RMB12.9 billion in the second quarter of 2024 and compared to RMB9.8 billion in the same period of 2023.Cumulative number of borrowers served reached 11,611,899 as of September 30, 2024, representing an increase of 7.4% from 10,807,497 as of June 30, 2024, and compared to 8,595,780 as of September 30, 2023.Number of borrowers served in the third quarter of 2024 was 1,498,020, representing an increase of 0.4% from 1,491,756 in the second quarter of 2024 and compared to 1,204,012 in the same period of 2023. As our efforts to upgrade the customer mix reach a milestone success, we are now shifting our focus to increasing the repeat rate of existing high-quality borrowers.Outstanding balance of performing loans facilitated reached RMB22.8 billion (US$3.2 billion) as of September 30, 2024, representing an increase of 4.3% from RMB21.8 billion as of June 30, 2024 and compared to RMB15.1 billion as of September 30, 2023.
Insurance Brokerage Business
Cumulative number of insurance clients served reached 1,470,738 as of September 30, 2024, representing an increase of 4.3% from 1,410,158 as of June 30, 2024, and compared to 1,256,762 as of September 30, 2023.Number of insurance clients served in the third quarter of 2024 was 82,291, representing a decrease of 7.3% from 88,766 in the second quarter of 2024, and compared to 123,693 in the same period of 2023. The decrease was due to the decline in new sales of our insurance products amid regulatory changes.Gross written premiums in the third quarter of 2024 were RMB1,351.3 million (US$192.6 million), representing an increase of 27.4% from RMB1,060.9 million in the second quarter of 2024 and compared to RMB1,428.5 million in the same period of 2023. The quarterly increase was attributed to the gradual recovery of our life insurance business following product changes made in response to new regulations, along with the continued rise in renewed life insurance premiums.
Consumption and Lifestyle Business
Total gross merchandise volume generated through our e-commerce platform and “Yiren Select” channel reached RMB507.6 million (US$72.3 million) in the third quarter of 2024, representing a decrease of 8.5% from RMB554.6 million in the second quarter of 2024, and compared to RMB563.2 million in the same period of 2023. The decrease was mainly due to the already high penetration of our products and services within the existing customer pool, along with our strategic scale-back of product offerings as we shift our focus to upgrading customer segmentation.
“I’m pleased to report a stable and healthy quarter with concrete business development and strategic exploration, driven by our ‘quality over quantity’ strategy, which underscores our consistent focus on sustainable, high-quality growth.” said Mr. Ning Tang, Chairman and Chief Executive Officer.
“Our financial services business has improved asset quality through strong risk management and borrower optimization. We’ve also made progress in exploring new online business models for our insurance division. As a tech-powered platform, Yiren Digital prioritizes the use of technology and digital capabilities to enhance our business model. Furthermore, our AI investments are driving operational efficiency and enhancing the customer experience. These efforts lay the foundation for higher-quality growth and long-term value for our stakeholders.”
“In the third quarter of this year, our total revenue reached RMB 1.5 billion, up 13% year-over-year.” Mr.Yuning Feng, Chief Financial Officer commented. “On the balance sheet side, as we continued to make strategic long-term investments this quarter, cash and cash equivalents decreased compared to the end of the previous quarter, bringing the total to RMB3.7 billion. Despite this, our cash position remains strong and competitive within the industry. Meanwhile, we are continuing share buybacks and executing cash dividends to enhance returns for our shareholders.”
Third Quarter 2024 Financial Results
Total net revenue in the third quarter of 2024 was RMB1,479.1 million (US$210.8 million), representing an increase of 12.8% from RMB1,310.8 million in the third quarter of 2023. Particularly, in the third quarter of 2024, revenue from financial services business was RMB836.2 million (US$119.2 million), representing an increase of 25.2% from RMB668.0 million in the same period of 2023.The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB85.5 million (US$12.2 million), representing a decrease of 67.7% from RMB264.6 million in the third quarter of 2023. The decrease was primarily driven by a decline in life insurance sales, resulting from product modifications mandated by new regulations, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB557.4 million (US$79.4 million), representing an increase of 47.4% from RMB378.2 million in the third quarter of 2023. The annual increase was primarily attributed to the continuous growth of the service and product penetration in the expanding base of paying customers. As the penetration rate reached a substantial level in the third quarter of 2024, the growth rate is expected to moderate.
Sales and marketing expenses in the third quarter of 2024 were RMB335.6 million (US$47.8 million), compared to RMB195.7 million in the same period of 2023. The increase was primarily driven by the swift growth of our financial services segment and enhanced marketing endeavors aimed at attracting new, high-caliber customers while optimizing our customer composition.
Origination, servicing and other operating costs in the third quarter of 2024 were RMB205.9million (US$29.3 million), compared to RMB245.4 million in the same period of 2023. The decrease was mainly due to the decline in insurance brokerage services.
Research and development expenses in the third quarter of 2024 were RMB150.8 million (US$21.5 million), compared to RMB39.0 million in the same period of 2023. The increase was mainly attributed to our ongoing investment in AI upgrades and technological innovations.
General and administrative expenses in the third quarter of 2024 were RMB80.1 million (US$11.4 million), compared to RMB53.5 million in the same period of 2023. The increase was primarily due to increasing incentive bonus and employee benefits.
Allowance for contract assets, receivables and others in the third quarter of 2024 was RMB94.9 million (US$13.5 million), compared to RMB72.7 million in the same period of 2023. The increase reflects the growing volume of loans facilitated on our platform and the stringent risk estimates in response to the evolving external credit environment.
Provision for contingent liabilities in the third quarter of 2024 was RMB272.4 million (US$38.8 million), compared to RMB11.1 million in the same period of 2023. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model[1].
Income tax expense in the third quarter of 2024 was RMB44.7 million (US$6.4 million).
Net income in the third quarter of 2024 was RMB355.4 million (US$50.7 million), as compared to RMB554.4 million in the same period in 2023. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles.
Adjusted EBITDA[2] (non-GAAP) in the third quarter of 2024 was RMB393.9 million (US$56.1 million), compared to RMB692.7 million in the same period of 2023.
Basic and diluted income per ADS in the third quarter of 2024 were RMB4.1 (US$0.6) and RMB4.0 (US$0.6) respectively, compared to a basic income per ADS of RMB6.3 and a diluted income per ADS of RMB6.2 in the same period of 2023.
Net cash generated from operating activities in the third quarter of 2024 was RMB50.4 million (US$7.2 million), compared to RMB645.4 million in the same period of 2023.
Net cash used in investing activities in the third quarter of 2024 was RMB1,859.6 million (US$265.0 million), compared to RMB393.9 million in the same period of 2023.
Net cash used in financing activities in the third quarter of 2024 was RMB22.2 million (US$3.2 million), compared to RMB502.6 million in the same period of 2023.
The changes in cash flows reflect strategic decisions aimed at driving the company’s growth and long-term development. This includes a cash infusion to support broader collaborations with institutional business partners in our financial services division as our loan balance reaches a considerable size, which is reflected in the decline in net cash generated from operating activities. Changes in net cash used in investing and financing activities were driven by investments in potential acquisitions and business expansion, as well as ongoing share repurchases to enhance shareholder value.
As of September 30, 2024, cash and cash equivalents were RMB3,705.9 million (US$528.1 million), compared to RMB5,496.9 million as of June 30, 2024. The decline is due to our long-term investments in business expansion and potential acquisitions, which are still in the early stages and have not been finalized. As of September 30, 2024, the balance of held-to-maturity investments was RMB5.1 million (US$0.7 million), remained unchanged from June 30, 2024. As of September 30, 2024, the balance of available-for-sale investments was RMB321.6 million (US$45.8 million), compared to RMB329.8 million as of June 30, 2024. As of September 30, 2024, the balance of trading securities was RMB63.3 million (US$9.0 million), compared to RMB83.9 million as of June 30, 2024.
Delinquency rates[3]. As of September 30, 2024, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 1.8%, 1.2% and 1.2%, respectively, compared to 1.9%, 1.4% and 1.5%, respectively, as of June 30, 2024.
[1] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.
[2] “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.
[3] “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.
Dividend Policy
Under the Company’s semi-annual dividend policy, the Company distributed cash dividends in October 2024, representing a payout ratio of 14% of earnings for the first half of 2024.
Update on Share Repurchase
In the third quarter of 2024, the Company allocated US$3.0 million to repurchase shares in the public market. As of September 30, 2024, the Company had in aggregate purchased approximately 5.0 million ADSs in the open market for a total amount of approximately US$16.5 million (exclusive of commissions) under the 2022 share repurchase program.
Business Outlook
Based on the Company’s preliminary assessment of business and market conditions, the Company projects the total revenue in the fourth quarter of 2024 to be between RMB1.3 billion to RMB1.5 billion, with a healthy net profit margin.
This is the Company’s current and preliminary view, which is subject to changes and uncertainties.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See “Operating Highlights and Reconciliation of GAAP to Non-GAAP measures” at the end of this press release.
Currency Conversion
This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB7.0176 to US$1.00, the effective noon buying rate on September 30, 2024, 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 7:00 a.m. U.S. Eastern Time on November 20, 2024 (or 8:00 p.m. Beijing/Hong Kong Time on November 20, 2024).
Participants who wish to join the call should register online in advance of the conference at:
https://dpregister.com/sreg/10194517/fdfac17402
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://event.choruscall.com/mediaframe/webcast.html?webcastid=MvArF4tV
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 an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Our mission is to elevate customers’ financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. We support clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses.
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 Nine Months Ended
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2024
RMB
RMB
RMB
USD
RMB
RMB
USD
Net revenue:
Loan facilitation services
586,883
695,532
600,899
85,627
1,518,401
1,972,726
281,111
Post-origination services
984
1,290
1,421
203
12,573
4,483
639
Insurance brokerage services
264,611
91,526
85,530
12,188
865,664
301,982
43,032
Financing services
9,937
19,574
31,448
4,481
47,410
61,688
8,790
Electronic commerce services
350,635
523,641
546,366
77,856
881,218
1,572,943
224,143
Guarantee services
30,173
68,934
136,746
19,486
42,275
222,533
31,711
Others
67,551
96,039
76,678
10,927
253,782
217,353
30,972
Total net revenue
1,310,774
1,496,536
1,479,088
210,768
3,621,323
4,353,708
620,398
Operating costs and expenses:
Sales and marketing
195,714
285,101
335,647
47,829
450,873
897,971
127,960
Origination,servicing and other operating costs
245,360
246,542
205,913
29,342
791,472
685,725
97,715
Research and development
38,981
55,812
150,840
21,495
101,168
247,173
35,222
General and administrative
53,519
68,670
80,097
11,413
180,623
232,441
33,123
Allowance for contract assets, receivables and others
72,652
123,285
94,913
13,525
160,923
320,532
45,675
Provision for contingent liabilities
11,104
278,925
272,406
38,818
28,578
618,589
88,148
Total operating costs and expenses
617,330
1,058,335
1,139,816
162,422
1,713,637
3,002,431
427,843
Other income/(expenses):
Interest income, net
25,815
24,668
21,877
3,117
50,869
74,258
10,582
Fair value adjustments related to Consolidated ABFE
(8,104)
38,706
36,423
5,190
(36,777)
90,597
12,910
Others, net
5,177
(11)
2,535
362
11,496
3,201
456
Total other income/(expenses)
22,888
63,363
60,835
8,669
25,588
168,056
23,948
Income before provision for income taxes
716,332
501,564
400,107
57,015
1,933,274
1,519,333
216,503
Income tax expense
161,917
92,036
44,665
6,365
424,345
268,480
38,258
Net income
554,415
409,528
355,442
50,650
1,508,929
1,250,853
178,245
Weighted average number of ordinary shares outstanding,
basic
176,866,653
172,831,722
175,018,644
175,018,644
177,189,206
173,557,082
173,557,082
Basic income per share
3.1346
2.3695
2.0309
0.2894
8.5159
7.2072
1.0270
Basic income per ADS
6.2692
4.7390
4.0618
0.5788
17.0318
14.4144
2.0540
Weighted average number of ordinary shares outstanding,
diluted
178,366,565
174,711,554
176,035,324
176,035,324
179,220,434
175,457,062
175,457,062
Diluted income per share
3.1083
2.3440
2.0192
0.2877
8.4194
7.1291
1.0159
Diluted income per ADS
6.2166
4.6880
4.0384
0.5754
16.8388
14.2582
2.0318
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from operating activities
645,416
368,908
50,393
7,181
1,753,781
1,051,044
149,773
Net cash (used in)/provided by investing activities
(393,919)
(536,883)
(1,859,587)
(264,989)
360,376
(3,080,167)
(438,920)
Net cash used in financing activities
(502,636)
(125,884)
(22,227)
(3,167)
(901,587)
(162,885)
(23,211)
Effect of foreign exchange rate changes
2,395
(896)
(6,252)
(891)
2,543
(5,808)
(828)
Net (decrease)/increase in cash, cash equivalents and
restricted cash
(248,744)
(294,755)
(1,837,673)
(261,866)
1,215,113
(2,197,816)
(313,186)
Cash, cash equivalents and restricted cash, beginning of period
5,824,552
5,993,216
5,698,461
812,024
4,360,695
6,058,604
863,344
Cash, cash equivalents and restricted cash, end of period
5,575,808
5,698,461
3,860,788
550,158
5,575,808
3,860,788
550,158
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
As of
December 31,
2023
June 30,
2024
September 30,
2024
September 30,
2024
RMB
RMB
RMB
USD
Cash and cash equivalents
5,791,333
5,496,932
3,705,866
528,082
Restricted cash
267,271
201,529
154,922
22,076
Trading securities
76,053
83,889
63,276
9,017
Accounts receivable
499,027
654,698
668,757
95,297
Guarantee receivable
2,890
260,759
391,547
55,795
Contract assets, net
978,051
962,482
916,543
130,606
Contract cost
32
206
279
40
Prepaid expenses and other assets
423,621
1,662,654
2,291,397
326,521
Loans at fair value
677,835
473,311
414,803
59,109
Financing receivables
116,164
30,501
28,672
4,086
Amounts due from related parties
820,181
1,509,651
3,338,868
475,785
Held-to-maturity investments
10,420
5,087
5,087
725
Available-for-sale investments
438,084
329,829
321,550
45,820
Equity investments
–
2,500
7,105
1,012
Property, equipment and software, net
79,158
77,970
80,224
11,432
Deferred tax assets
73,414
44,309
54,595
7,780
Right-of-use assets
23,382
19,462
14,454
2,060
Total assets
10,276,916
11,815,769
12,457,945
1,775,243
Accounts payable
30,902
43,710
42,712
6,085
Amounts due to related parties
14,414
2,485
96,498
13,751
Guarantee liabilities-stand ready
8,802
278,656
449,759
64,090
Guarantee liabilities-contingent
28,351
336,190
512,004
72,960
Deferred revenue
54,044
38,843
18,348
2,615
Payable to investors at fair value
445,762
350,000
350,000
49,875
Accrued expenses and other liabilities
1,463,369
1,727,182
1,672,111
238,274
Deferred tax liabilities
122,075
55,520
16,434
2,342
Lease liabilities
23,648
19,280
15,226
2,170
Total liabilities
2,191,367
2,851,866
3,173,092
452,162
Ordinary shares
130
130
132
19
Additional paid-in capital
5,171,232
5,175,653
5,198,271
740,748
Treasury stock
(94,851)
(139,380)
(160,534)
(22,876)
Accumulated other comprehensive
income
23,669
47,798
21,226
3,024
Retained earnings
2,985,369
3,879,702
4,225,758
602,166
Total equity
8,085,549
8,963,903
9,284,853
1,323,081
Total liabilities and equity
10,276,916
11,815,769
12,457,945
1,775,243
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 Nine Months Ended
September 30,
2023
June 30,
2024
September 30,
2024
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2024
RMB
RMB
RMB
USD
RMB
RMB
USD
Operating Highlights
Amount of loans facilitated
9,814,359
12,936,017
13,392,676
1,908,441
24,390,773
38,239,060
5,449,022
Number of borrowers
1,204,012
1,491,756
1,498,020
1,498,020
2,128,924
3,365,960
3,365,960
Remaining principal of performing loans
15,090,800
21,827,634
22,768,555
3,244,493
15,090,800
22,768,555
3,244,493
Cumulative number of insurance clients
1,256,762
1,410,158
1,470,738
1,470,738
1,256,762
1,470,738
1,470,738
Number of insurance clients
123,693
88,766
82,291
82,291
293,254
226,191
226,191
Gross written premiums
1,428,484
1,060,885
1,351,311
192,560
3,684,325
3,324,627
473,756
First year premium
914,839
577,387
511,377
72,871
2,644,082
1,602,905
228,412
Renewal premium
513,645
483,498
839,934
119,689
1,040,243
1,721,722
245,344
Gross merchandise volume
563,224
554,574
507,585
72,330
1,267,611
1,687,280
240,435
Segment Information
Financial services business:
Revenue
667,966
851,031
836,193
119,157
1,733,813
2,425,341
345,608
Sales and marketing expenses
146,369
253,103
307,459
43,812
311,751
812,484
115,778
Origination, servicing and other operating
costs
59,300
113,234
119,706
17,058
145,870
318,727
45,418
Allowance for contract assets, receivables and
others
77,135
124,765
93,248
13,288
163,111
319,140
45,477
Provision for contingent liabilities
11,104
278,925
272,406
38,818
28,578
618,589
88,148
Insurance brokerage business:
Revenue
264,611
91,526
85,530
12,188
865,664
301,982
43,032
Sales and marketing expenses
3,175
4,263
3,545
505
9,309
11,373
1,621
Origination, servicing and other operating
costs
176,182
122,358
78,466
11,181
599,650
337,707
48,123
Allowance for contract assets, receivables and
others
(3,981)
(1,502)
(414)
(59)
(355)
(904)
(129)
Consumption & lifestyle business and others:
Revenue
378,197
553,979
557,365
79,423
1,021,846
1,626,385
231,758
Sales and marketing expenses
46,170
27,735
24,643
3,512
129,813
74,114
10,561
Origination, servicing and other operating
costs
9,878
10,950
7,741
1,103
45,952
29,291
4,174
Allowance for contract assets, receivables and
others
(313)
(11)
1,666
237
(1,545)
1,664
237
Reconciliation of Adjusted EBITDA
Net income
554,415
409,528
355,442
50,650
1,508,929
1,250,853
178,245
Interest income, net
(25,815)
(24,668)
(21,877)
(3,117)
(50,869)
(74,258)
(10,582)
Income tax expense
161,917
92,036
44,665
6,365
424,345
268,480
38,258
Depreciation and amortization
1,664
2,026
2,401
342
5,310
6,319
901
Share-based compensation
513
2,136
13,235
1,886
5,923
16,578
2,362
Adjusted EBITDA
692,694
481,058
393,866
56,126
1,893,638
1,467,972
209,184
Adjusted EBITDA margin
52.8 %
32.1 %
26.6 %
26.6 %
52.3 %
33.7 %
33.7 %
Delinquency Rates
1-30 days
31-60 days
61-90 days
December 31, 2019
2.1 %
1.2 %
0.9 %
December 31, 2020
1.3 %
0.7 %
0.6 %
December 31, 2021
2.0 %
1.5 %
1.2 %
December 31, 2022
1.7 %
1.2 %
1.1 %
December 31, 2023
2.0 %
1.4 %
1.2 %
March 31, 2024
2.1 %
1.6 %
1.4 %
June 30, 2024
1.9 %
1.4 %
1.5 %
September 30, 2024
1.8 %
1.2 %
1.2 %
30+ Days Delinquency Rates by Vintage[1]
Loan Issued Period
Month on Book
2
4
6
8
10
12
14
16
18
20
22
24
2019Q1
0.0 %
0.5 %
1.6 %
2.3 %
3.3 %
4.4 %
5.9 %
6.1 %
6.4 %
6.9 %
6.9 %
6.9 %
2019Q2
0.3 %
1.4 %
2.8 %
5.0 %
7.8 %
8.9 %
9.5 %
10.0 %
10.3 %
10.7 %
10.9 %
11.2 %
2019Q3
0.3 %
2.0 %
5.1 %
7.6 %
9.1 %
10.4 %
11.3 %
12.4 %
13.3 %
14.1 %
14.7 %
15.2 %
2019Q4
0.7 %
3.0 %
4.4 %
5.7 %
6.6 %
7.3 %
8.1 %
8.5 %
9.0 %
9.4 %
9.7 %
10.3 %
2020Q1
0.8 %
2.0 %
3.4 %
4.5 %
5.4 %
5.9 %
6.5 %
6.8 %
7.1 %
7.5 %
8.1 %
8.5 %
2020Q2
0.6 %
2.0 %
3.3 %
4.5 %
5.3 %
6.0 %
6.4 %
6.9 %
7.4 %
8.0 %
8.6 %
8.8 %
2020Q3
1.3 %
2.8 %
4.3 %
5.4 %
6.3 %
6.9 %
7.5 %
8.2 %
8.9 %
9.3 %
9.5 %
9.5 %
2020Q4
0.3 %
1.4 %
2.4 %
3.4 %
4.3 %
5.4 %
6.4 %
7.3 %
7.7 %
8.0 %
8.2 %
8.3 %
2021Q1
0.5 %
1.8 %
3.0 %
4.2 %
5.3 %
6.3 %
7.1 %
7.3 %
7.5 %
7.7 %
7.8 %
7.9 %
2021Q2
0.5 %
2.1 %
3.8 %
5.5 %
6.8 %
7.5 %
7.7 %
7.9 %
8.1 %
8.3 %
8.2 %
8.2 %
2021Q3
0.6 %
2.5 %
4.2 %
5.4 %
6.1 %
6.5 %
6.7 %
6.9 %
6.9 %
6.9 %
6.9 %
6.8 %
2021Q4
0.8 %
2.7 %
4.1 %
4.9 %
5.4 %
5.8 %
5.8 %
5.8 %
5.7 %
5.6 %
5.6 %
5.5 %
2022Q1
0.7 %
2.1 %
3.2 %
4.0 %
4.6 %
4.8 %
4.7 %
4.6 %
4.6 %
4.5 %
4.5 %
4.4 %
2022Q2
0.5 %
1.8 %
2.9 %
3.8 %
4.3 %
4.5 %
4.4 %
4.3 %
4.3 %
4.2 %
4.2 %
4.1 %
2022Q3
0.6 %
2.2 %
3.5 %
4.3 %
4.8 %
5.0 %
5.0 %
4.9 %
4.9 %
4.8 %
4.7 %
4.7 %
2022Q4
0.7 %
2.5 %
3.9 %
4.9 %
5.6 %
5.9 %
5.8 %
5.8 %
5.7 %
5.6 %
5.5 %
2023Q1
0.6 %
2.4 %
4.0 %
5.2 %
5.9 %
6.2 %
6.1 %
6.0 %
5.9 %
5.5 %
2023Q2
0.7 %
3.0 %
4.9 %
6.3 %
7.0 %
7.3 %
7.2 %
6.9 %
2023Q3
0.9 %
3.7 %
5.8 %
7.1 %
7.9 %
8.1 %
7.8 %
2023Q4
0.8 %
3.6 %
5.8 %
7.0 %
7.6 %
2024Q1
0.7 %
3.2 %
5.0 %
6.4 %
2024Q2
0.6 %
2.7 %
2024Q3
0.6 %
[1]The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are more than 30 days past due,
as a percentage of the total loans facilitated during that same period. Loans originating outside mainland China are excluded from the calculation.
View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-third-quarter-2024-financial-results-302312773.html
SOURCE Yiren Digital
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SPS Releases New Report on Turning Workplace Data and AI into a Competitive Advantage
Published
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October 27, 2026By
Featuring insights from AWS, the report explores how connecting workplace data, human context and AI can help organizations make better business decisions
NEW YORK, Oct. 27, 2026 /PRNewswire/ — SPS, a leading technology-driven business transformation company, today released Turning Workplace Data into a Competitive Advantage, a new report examining how organizations can connect workplace data, human context and AI to generate meaningful insights and make better business decisions.
Authored by Nicole Mangarella, Head of Global Technology and Innovation at SPS, the report explores why collecting more data is not enough. Drawing in part on perspectives shared at the 2026 SPS Connected Workplace Experience event, hosted by SPS in partnership with AWS in New York City, the report examines how connecting information across workplace systems, combining quantitative signals with human context, and applying artificial intelligence can help leaders uncover patterns, identify risks and act with greater confidence.
Organizations generate workplace information through occupancy platforms, room-booking systems, sensors, service requests, visitor systems, employee feedback and financial systems. When those sources remain disconnected, however, leaders may see only part of the picture. Bringing them together can reveal insights individual systems may miss, helping organizations better understand workplace utilization, operational performance, employee experience and potential risk.
SPS’s approach to creating more connected, intelligent workplace operations has also earned industry recognition. In the 2026 IDC MarketScape for Worldwide Mailroom Solutions and Services, IDC named SPS a Leader, recognizing its ability to connect physical and digital workflows through AI-enabled document intelligence, integrated workplace services and operational automation.
“The competitive advantage isn’t having more workplace data. It’s knowing which questions to ask, connecting the information needed to answer them, and turning those insights into better decisions—faster,” said Mangarella. “Organizations don’t need another dashboard. They need the right information and context to make better decisions.”
Creating a Trusted Foundation for AI
As organizations expand their use of AI, the report highlights the importance of trustworthy, well-governed data. Michal Kolodziej, Senior Account Solution Architect at AWS, emphasizes that AI needs more than large volumes of information; it needs data with sufficient precision and context to produce reliable answers people can trust.
The report also examines AWS’s “working backwards” approach: start with the business problem and desired outcome, determine the information needed to support the decision, and then design the technology, data architecture and processes around it. SPS describes a similar approach to workplace intelligence, beginning with a focused set of high-value data before expanding to additional sources.
The report further highlights how governance, common definitions and clear ownership can help organizations move from fragmented information toward workplace intelligence that leaders can use with confidence.
Explore Turning Workplace Data into a Competitive Advantage to discover practical examples and five questions workplace leaders can use to turn data into better decisions.
About SPS
SPS is a leading technology-driven business transformation company. With our innovative Enterprise Workplace Solutions, we empower organizations to adopt modern work concepts to enhance productivity and flexibility. Our Technology Business Solutions bring together cutting-edge technology, deep vertical process expertise and a diverse global workforce to support clients in their digital transformation journey and efficiently tackle their most complex challenges.
Headquartered in Zurich, Switzerland, SPS operates in more than 20 countries and focuses on clients in banking, insurance and healthcare. SPS has more than 8,000 employees and is recognized with a world-class Net Promoter Score by its global client base.
We act with precision, connect people to the right information, and turn data into insights for better outcomes.
Discover how our dedicated team at SPS makes an impact that matters by visiting SPS Global.
SPS. The Power of Possibility.
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SOURCE SPS
Technology
ABB turns aging drives into a second life at ACC’s Jamul plant, without stopping production
Published
18 minutes agoon
October 27, 2026By
To date, on-site drive reconditioning has preserved capital and material value, avoided ~16 metric tons of CO₂ emissions, and maintained continuity, delivering environmental, economic, and operational value in one decision.Asset health assessment by ABB helped the major Indian cement producer choose a tailored, multi-year ABB Motion OneCare agreement, for enhanced reliability, uptime, and cost predictability.ACC Limited is set to benefit from energy appraisals, scheduled drive reconditioning, and digital monitoring to shift maintenance from reactive to predictive.
BENGALURU, India, Oct. 27, 2026 /PRNewswire/ — ABB has signed a multi-year ABB Motion OneCare service agreement with ACC Limited, a major cement producer in the Adani Group, to improve the operational reliability of ACC’s Jamul cement plant in Chhattisgarh, India. The comprehensive maintenance framework, shaped around ACC’s needs, encompasses scheduled reconditioning, digital monitoring, and energy appraisals, with the latter extending the program’s scope from restoration into ongoing performance enhancement.
Phase one, completed in April 2026, reconditioned 25 ABB ACS800 variable speed drives on site without a major shutdown. By retaining the existing cabinets and reconditioning equipment rather than replacing complete panels, the project avoided approximately 16 tonnes of CO₂ emissions.
A second phase covering the reconditioning of an additional 25 ACS800 drive modules is planned for Q4 2026. As part of the agreement, ACC also began using ABB Ability™ Digital Powertrain Insights, setting the foundation to shift from reactive to predictive maintenance.
A fleet that delivered — and a clear signal to act
The ABB ACS800 drives at Jamul — installed in 2010 — had maintained a strong reliability record across well over a decade of near-continuous operation in one of the most demanding industrial environments. Over time, however, the cumulative effects of electrical aging reached a point where trip event patterns were no longer in line with the plant’s operational requirements — a natural inflection point for a fleet that had been running full steam since installation, and a clear signal that the time had come to act.
Rather than defaulting to full replacement, ACC engaged ABB’s certified engineers for a structured asset health assessment. The finding was clear: the drives’ cabinets and enclosures remained structurally sound. Targeted reconditioning was both the technically right and most cost-effective route to extended lifetime and sustained reliability.
Expertise brought to the plant
Two decades of working knowledge of ACC’s equipment and operational calendar shaped the approach. ABB developed a service plan tailored to ACC’s shutdown windows and budget cycle. The multi-year ABB Motion OneCare agreement includes scheduled drive reconditioning, ABB Ability™ Digital Powertrain Insights, and energy appraisals. To start, ABB brought its reconditioning expertise directly to Jamul. Earlier this year, 25 ACS800 drives were restored to factory specification without interrupting production, with the original enclosures retained. Phase two is in planning: an additional 25 ACS800 modules are scheduled for on-site reconditioning in the last quarter of 2026.
In addition, with ABB Ability™ Digital Powertrain Insights now active across the fleet, ACC’s teams gain continuous visibility into temperature, current, vibration, and fault patterns — the intelligence to act on emerging issues before they become failures. Energy appraisals, built into the later phase of the program, will extend its scope from restoration into systematic performance improvement. “We know what unchecked wear costs over time: a small inefficiency that eats away at ROI for years. At Jamul, the evidence pointed clearly to assets with productive life still in them,” said Amit Gupta, Local Division Manager, Motion Services, ABB India. “Our job was to restore them properly and give the team the tools to stay ahead of the next problem. At ABB, we don’t just fix what fails. We want to protect what works.”
Circularity as the operating logic
The program reflects the competitive logic of industrial circularity. Restoring what was installed rather than replacing it kept material and economic value in productive use, and protected continuity — all in one decision. ABB data indicates reconditioning reduces drive lifecycle emissions by 50 to 80% versus full replacement. Digital monitoring gives ACC’s teams real-time intelligence: now they know exactly what to fix, and exactly when to fix it, for maximum uptime.
“Moving from reactive firefighting to a structured maintenance plan was exactly what this operation needed. That kind of peace of mind doesn’t come easily. It comes from a partner that understands how your business runs,” added Vinod Bahety, CEO – Cement Business, Adani Group. “We didn’t need a full system overhaul; we needed expert support, actionable insights, and a plan we could execute around our schedule. That’s what we got.”
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
ABB Motion, a global leader in motors and drives, is at the core of accelerating a more productive and sustainable future. We innovate and push the boundaries of technology to contribute to energy efficient, decarbonizing and circular solutions for customers, industries and societies. With our digitally enabled drives, motors and services we support our customers and partners to achieve better performance, safety and reliability. To help the world’s industries outrun – leaner and cleaner, we deliver motor-driven solutions for a wide range of applications in all industrial segments. Building on over 140 years of domain expertise in electric powertrains, our more than 23,000 employees across 100 countries learn and improve every day. go.abb/motion
ACC Limited, a subsidiary of Ambuja Cements and part of the diversified Adani Group, is one of India’s most trusted building materials and concrete solutions company. With a legacy of nearly nine decades, ACC operates 20 cement manufacturing sites, 119 ready-mix concrete plants, and a nationwide network of channel partners, serving its customers. ACC is actively advancing its sustainability roadmap with a strong focus on green energy, circular economy, and digital transformation. The Company alongside Ambuja Cements is among the fourth large-scale building materials company in the world committed to net-zero by 2050, with its near-term and science-based net-zero targets validated by the Science Based Targets initiative (SBTi). ACC continues to drive operational excellence through synergies with the Adani Group in logistics, power, project execution, and digital infrastructure. ACC has been recognised India’s Most Sustainable Company 2026 in the Cement Sector by Business Today. Its blended cement products are GreenPro certified, and its innovative products are listed in the GRIHA product catalogue. ACC has been recognised as one of ‘India’s Most Trusted Cement Brands’ by TRA Research and among the ‘Iconic Brands of India 2025’ by The Economic Times for the third consecutive year. https://www.acclimited.com/
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STOCKHOLM, Oct. 27, 2026 /PRNewswire/ —
Record sales, operating profit and margin
Third quarter
Net sales totaled SEK 40,771 M (38,146), with organic growth of 4% (3) and acquired net growth of 2% (5). Exchange rates affected sales by 1% (–6).Organic sales growth was strong in Americas and EMEIA, good in Global Technologies and Entrance Systems, but declined in Asia Pacific.Three acquisitions with combined annual sales of about SEK 350 M and one divestment were completed during the quarter.Operating income1 (EBITA) increased by 12% to SEK 7,612 M (6,815) with an operating margin of 18.7% (17.9).Operating income1 (EBIT) increased by 11% to SEK 7,102 M (6,416) with an operating margin of 17.4% (16.8).Net income1 amounted to SEK 4,718 M (4,144).Earnings per share1 amounted to SEK 4.24 (3.73).Operating cash flow amounted to SEK 7,405 M (6,969).
Sales and income
Third quarter
January–September
2025
2026
Δ
2025
2026
Δ
Sales, SEK M
38,146
40,771
7 %
114,102
115,781
1 %
Of which:
Organic growth
1,119
1,428
4 %
2,671
3,568
3 %
Acquisitions and divestments
1,853
935
2 %
5,417
2,623
2 %
Exchange rate effects
–2,243
262
1 %
–4,572
–4,512
–4%
Operating income (EBIT)1, SEK M
6,416
7,102
11 %
18,216
19,242
6 %
Operating margin (EBITA)1, %
17.9 %
18.7 %
17.0 %
17.8 %
Operating margin (EBIT)1, %
16.8 %
17.4 %
16.0 %
16.6 %
Income before tax1, SEK M
5,563
6,333
14 %
15,648
17,018
9 %
Net income1, SEK M
4,144
4,718
14 %
11,658
12,678
9 %
Operating cash flow, SEK M
6,969
7,405
6 %
14,845
16,847
13 %
Earnings per share1, SEK
3.73
4.24
14 %
10.49
11.41
9 %
1 Excluding items affecting comparability for the same period of the previous year. Please see the tabulated figures section in this report, page 12, for further details about the financial effects in 2025.
Comments by the President and CEO
“I am happy to report another record strong quarter for ASSA ABLOY in which our sales grew by 7%, driven by 4% organic sales growth, 2% net acquired growth and 1% from currency movements. This is the seventh consecutive quarter with organic sales growth despite the geopolitical and macroeconomic uncertainties we have seen in the last couple of years. The good organic sales growth contributed to a record-high operating margin and for the first time our operating profit exceeds SEK 7bn in a quarter!
Organic sales growth was strong in the Americas and EMEIA divisions – 6% and 5% respectively. Americas growth was driven by continued strong growth in the non-residential segment and Latin America. The North America Residential segment improved and had good sales growth. In EMEIA, the growth was driven by very strong sales growth in Central Europe, while the other regions had good or stable sales growth developments. Global Technologies grew by 4%, with strong sales growth in HID, while Global Solutions’ growth was low single-digit due to temporarily lower deliveries in the retail business unit. Entrance Systems reported good organic growth of 3%, driven by Pedestrian and Perimeter Security. Organic sales in Asia Pacific declined 1% due to weak sales in Greater China.
The operating profit (EBIT) totaled SEK 7,102 M, up 11% vs. last year. The operating margin improved by 60 bps year-on-year to 17.4% (16.8) driven by excellent operating leverage of 47% due to price realization and cost efficiencies. The operating cash flow improved by 6% year-on-year to SEK 7,405 M, resulting in an excellent cash conversion of 117%.
Our people make the difference
Our decentralized organization and commitment to innovation remain two of our key competitive advantages. However, the foundation of everything we do is our 65,000 people. Their dedication, expertise and curiosity drive our success. As more of our products and solutions become electromechanical, our technology platforms create new opportunities to realize synergies. To continue to lead this transition, we continue to invest in our people. Over the last eight years, the number of internal applications for each open position has almost tripled, demonstrating the strength of our culture and the career opportunities available within ASSA ABLOY. Developing talent remains a strategic priority. Through leadership development programs, continuous learning opportunities and increased cross-divisional collaboration, we are building the capabilities to support future growth. Our ‘Together We’ culture is founded on empowerment, innovation and integrity. This supports our ambition to be a world-leading organization, knowing that when our people succeed, our business succeeds too.
Our acquisition strategy also brings talented people into the Group, adding fresh perspectives, new ideas and entrepreneurship. We are proud that many founders of the companies we acquire choose to remain with ASSA ABLOY. During the quarter, we acquired three businesses. We also announced the signing of Gunnebo Entrance Control, which will strengthen and complement our existing offering in pedestrian access solutions.
We are proud of what we have accomplished in the first nine months and are confident in our ability to deliver another strong year. At the same time, we remain focused on the opportunities ahead. To ensure that ASSA ABLOY remains long-term competitive, we will also launch our 11th manufacturing footprint program during the fourth quarter.
Thank you for your continued trust in ASSA ABLOY.”
Nico Delvaux
President and CEO
Further information can be obtained from:
Nico Delvaux, President and CEO
phone: +46 8 506 485 82
Erik Pieder, Executive Vice President and CFO,
phone: +46 8 506 485 72
Björn Tibell, Head of Investor Relations,
phone: +46 70 275 67 68
e-mail: bjorn.tibell@assaabloy.com
ASSA ABLOY is holding a telephone and web conference at 09.00 CET on 27 October, 2026, which can be followed online at assaabloy.com/investors.
It is possible to submit questions by telephone on:
08–505 100 31, +44 203 059 5863 or +1 631 570 5613
This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on 27 October, 2026.
This information was brought to you by Cision http://news.cision.com.
https://news.cision.com/assa-abloy/r/quarterly-report-q3-2026,c4415570
The following files are available for download:
https://mb.cision.com/Main/7333/4415570/4340384.pdf
The full report (PDF)
https://news.cision.com/assa-abloy/i/assa-abloy-logo-door-,c3576156
ASSA ABLOY logo door
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