By Connor Hart

American depository receipts of Yiren Digital fell after the company logged a lower profit in the first quarter, hurt by declining sales in certain business units and higher spend on research and development.

ADRs declined 7.5%, to $6.88, in midday trading Thursday. They are up 45% over the past year.

The Chinese company, which provides financial and lifestyle services, before the opening bell said that net income fell to 247.5 million yuan ($34.5 million) from CNY485.9 million a year earlier.

Quarterly earnings per ADS came in at CNY2.85, down from CNY5.52 last year.

The company attributed its lower bottom line primarily to growing loan volumes, which resulted in what it called substantial upfront provisions. Declining sales in the insurance brokerage business and the consumption and lifestyle segments, as well as increased research and development costs, further hurt profitability.

Revenue increased 13% to CNY1.55 billion, driven by growing demand for the company's small revolving loan products.

Chief Executive Ning Tang said that the company stands to directly benefit from domestic economic stimulus policies that boost consumption and expand credit access. These policies, coupled with the company's ongoing integration of advanced technologies, make Yiren well positioned for the year ahead, he added.

For the current quarter, Yiren guided for revenue between CNY1.6 billion and CNY1.7 billion.

Also on Thursday, Yiren named Ka Chun William Hui as its chief financial officer, effective June 30. He will succeed Yuning Feng, who will resign due to personal reasons, the company said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

June 12, 2025 12:36 ET (16:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.