Yirendai Ltd. (NYSE:YRD) Q2 2019 Earnings Conference Call - Final Transcript

Sep 04, 2019 • 08:00 pm ET


Yirendai Ltd. (NYSE:YRD) Q2 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Yirendai Second Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Ms. Lydia Yu. Thank you. Please go ahead.

Lydia Yu

Thank you, and welcome to Yirendai's second quarter 2019 earnings conference call. Today's call features a presentation by the Founder, Chairman, and CEO of CreditEase and CEO of Yirendai, Mr. Ning Tang; our Senior VP of Corporate Business Development, Mr. Dennis Cong; our Board of Director and CRO, Mr. Huan Chen; Ms. Wei Wang, our CEO of Yiren Credit; Ms. Xiao Shang, our CEO of Yiren Wealth; and Ms. Joanne Liu, our CFO of Yirendai will join the presenters in the Q&A session.

Before beginning, we will like to remind you that the discussions during this call contain forward-looking statements made under the safe harbor provisions of the US Private Securities and Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any such statements. Further information regarding potential risks, uncertainties or factors is included in Yirendai's filing with the US Securities and Exchange Commission. Yirendai does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

During the call, we will be referring to several non-GAAP financial measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the US GAAP. For information about these non-GAAP measures and a reconciliation to GAAP measures, please refer to our earnings press release.

I will now pass it on for our CEO, Ning, for opening remarks.

Ning Tang

Thank you all for attending our second quarter 2019 earnings conference call. I'm pleased to announce that we have achieved another solid quarter of operation in both credit and wealth management businesses. In particular, we gained strong momentum in working with our bank partners to diversify our funding sources.

This quarter, on the credit side, quarter-over-quarter loan originations remained flat as we maintained our focus on asset quality. As of September 2019, the line of credit we have obtained from our institutional partners has increased from RMB19 billion in Q1 2019 to close to RMB30 billion. We are now working with approximately 10 partners, including leading joint stock and city commercial banks. We expect loan origination funded by institutional partners to reach approximately 30% by the end of this year.

In addition, we have also started to gain access to PBOC credit system through our institutional funding partners, which will not only allow us to obtain detailed credit reports on the real-time basis to enhance our loan application underwriting efficiency, but will also significantly improve our delinquency management and collection efforts.

To further expand our institutional relationships, we have started to offer online lending solutions to our