Yiren Digital (YRD) investor relations material

Executive summary

• Achieved significant progress in transitioning to an AI-native, asset-light, multi-industry solutions provider, leveraging proprietary AI for efficiency, risk management, and digital distribution.

• Focused on portfolio quality, risk-adjusted returns, and premium repeat borrowers, resulting in improved delinquency rates and higher repeat borrower contribution.

• Expanded AI ecosystem through partnerships, investments, and warrant agreements with AI-native companies, especially in education and entertainment.

• Insurance client base and brokerage revenue grew significantly, with strong growth in new policies and digital distribution channels.

• Initiated and authorized a $20 million share repurchase program to enhance shareholder value.

Financial highlights

• Total net revenue for Q2 2026 was RMB 890 million, down 3% sequentially and 46% year-over-year, with a more diversified and technology-driven revenue mix.

• Net loss narrowed by 9% sequentially to RMB 449.6 million, mainly due to lower provisions for contingent liabilities.

• Loans facilitated were RMB 6.3 billion, down 29% quarter-over-quarter; outstanding performing loans declined 30% to RMB 15.1 billion.

• Insurance brokerage revenue was RMB 67.3 million, down 23% sequentially but up 16% year-over-year; gross written premiums were RMB 838.9 million, up 2% sequentially.

• Cash and cash equivalents were RMB 1.7 billion as of June 30, 2026, down from RMB 2.45 billion at March 31, 2026.

Outlook and guidance

• Will continue transitioning to an asset-light, technology-led model in credit solutions and insurance, with further AI integration and commercialization of AI-enabled insurance solutions in 2H26.

• Plans to deepen AI integration across operations and selectively expand the AI ecosystem through partnerships and acquisitions.

• Focus remains on disciplined execution, capital allocation, and building sustainable long-term value.

• Board is evaluating capital allocation initiatives, including dividends and share repurchase programs.