By Connor Hart
American depository receipts of Yiren Digital fell after the company posted a lower profit in the fourth quarter, dragged down by higher upfront provisions as loan volumes increased, as well as more investments in artificial intelligence.
ADRs sank 20%, to $6.88, in afternoon trading Thursday. Despite declining 9.3% in the past month, ADRs have gained 28% in the last year.
The Chinese company, which provides financial and lifestyle services, earlier in the day said net income fell to 331.4 million yuan ($45.4 million) from CNY571.3 million a year earlier.
Quarterly earnings per ADS came in at CNY3.8, down from CNY6.5 last year.
The company attributed the decrease to higher loan volumes, which required more upfront provisions under current accounting principles, as well as increased investment in AI.
Revenue increased 14% to CNY1.45 billion, boosted by Yiren's financial-services business, which the company said benefited from persistent and growing demand for its small revolving loan products.
Chief Executive Ning Tang said that in 2024, the company upgraded its customer segments in its financial-services business, advanced and integrated its proprietary AI systems and achieved profitability in its international business, driven by its expansion in the Philippines.
"These successes set the foundation for our long-term, high-quality growth in the coming year," he said.
Yiren guided for revenue between CNY5.5 billion and CNY6.5 billion in 2025.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 20, 2025 15:10 ET (19:10 GMT)
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