The stock in Yiren Digital Ltd. (NYSE: YRD) tanked 11.42% to $4.5 per American depositary share in midday Thursday after reporting decreased revenue for the fourth quarter.
The Beijing-based fintech company said in a statement today that in the three months through December that its revenues were $177.9 million, representing a decrease of 50.88% from a year ago. The company said the drop in revenue was due to decreased loan volume.
Yiren reported revenue from the wealth management business reached $63.3 million, representing a decrease of 20.8% year-over-year while revenue from credit business decreased 59.4% from last year to $114.6 million in the fourth quarter.
Net loss in the fourth quarter was $85.8 million, as compared to net income of $61.53 million in the same period last year.
"Despite the unusual operating environment in 2020, we are pleased to see significant progresses in our strategic transitions, with wealth management growing into a main business pillar and with our new credit products continuing to ramp up in volume," said Ning Tang, chairman and chief executive officer of Yiren Digital, said in a statement today.
Founded in 2012, Yiren provides credit and wealth management services. Under its risk management system, the company assesses the creditworthiness and the price risks associated with borrowers, as well as offering loan investment opportunities to investors.
Looking forward, the company said for wealth management business, it expects the total sales volume of current products to be between 20 billion yuan and 30 billion yuan.
For credit-tech business, total loan originations to be between 20 billion yuan and 25 billion yuan, the company added.
In addition, the company reported that it entered into a definitive agreement with CreditEase Holdings Limited to streamline the company's service lines and reposition the company as a comprehensive personal financial service platform.