Dale Tungsten's questions to Yiren Digital Ltd (YRD) leadership • Q1 2025
Question
A shareholder, Dale Tungsten, asked for context on the new crypto asset on the balance sheet, the related fair value adjustment, and the timeline for the guarantee business to stabilize and become profitable.
Answer
CEO Ning Tang and CFO Yuning Feng explained that the company allocated a small amount of overseas cash to crypto assets as an investment exploration. They acknowledged a Q1 fair value loss of approximately RMB 70 million but noted the value has since recovered. William Hui, SVP & incoming CFO, addressed the guarantee business, stating it's currently around 40% of the loan mix with an optimal target below 50%. He expects it to grow slightly for a few more quarters before the non-guaranteed business begins to outpace it.