EX-99.1 2 lx-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

LexinFintech Holdings Ltd. Reports Second Quarter 2024

Unaudited Financial Results

SHENZHEN, China, August 27, 2024 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading technology-empowered personal financial service enabler in China, today announced its unaudited financial results for the quarter ended June 30, 2024.

 

“We harvested a healthy set of operational and financial results with improved risk performance for new loans, uplifted net profit from the first quarter of 2024, and controlled loan origination in the second quarter of 2024,” said Jay Wenjie Xiao, Chairman and CEO of Lexin. “Total loan origination for the second quarter reached RMB 51.1 billion, a 12% decline quarter-over-quarter. Nevertheless, both total operating revenue and net profit grew by 12% compared to the first quarter of 2024, this was despite continued soft consumer demand and a weak credit environment.”

“Attributing to our persistent efforts to uphold our key strategies, we achieved several milestones during past quarter, including a rapid growth in our overseas business, a new record-low funding cost, and positive signs of overall risk performance improvement.”

“By leveraging Lexin's over a decade of experience in the domestic fintech market and quickly replicating our business model overseas, we saw an accelerated growth in our international operations, far outpacing our domestic business in the second quarter. Although the current scale of our overseas business is still small, we will continue to invest and sharpen our focus abroad.”

“Despite quarterly fluctuations in some risk performance indicators, more risk metrics showed early signs of improvement that extended into July. This was due to the proactive control on loan origination and substantial risk management capability improvement over the past quarters.”

“Additionally, our funding cost hit a historical low with a significant quarterly drop compared to the previous quarter. This improvement in funding cost effectively boosted our profitability compared to the first quarter of 2024.”

“Looking ahead to the remainder of 2024, we remain confident in navigating challenges and seizing opportunities in both Chinese and overseas markets, positioning ourselves for sustainable growth in a cautious consumer environment. We are committed to returning sustainable value to shareholders and have declared a cash dividend payout of US$0.072 per ADS for the six-month period ended June 30, 2024, representing roughly 20% of total net income, continuing our consistent capital return program,” Mr. Xiao continued.

Mr. James Zheng, Chief Financial Officer of Lexin, added, “The second quarter's total operating revenue reached RMB 3.6 billion, showing a 19.1% year-over-year increase and a 12.3% quarter-over-quarter increase. Net profit for the second quarter reached RMB 227 million, a 12.4% increase from the previous quarter. This significant revenue rise was achieved despite a controlled loan origination volume, demonstrating a substantial expansion of our revenue take rate. This increase was primarily driven by improved risk performance of newly issued assets and a record-low funding cost. Furthermore, we resumed ABS issuance in May and completed the second ABS in July, with the senior tranche funding cost as low as 2.80%. Additional factors such as a slight improvement in the early repayment ratio and an increased revenue split ratio in our profit-sharing model, also bolstered our resilient financial results in the second quarter.”

 

 

Page 1 of 13

 

Second Quarter 2024 Operational Highlights:

User Base

•
Total number of registered users reached 219 million as of June 30, 2024, representing an increase of 10.2% from 199 million as of June 30, 2023, and users with credit lines reached 43.3 million as of June 30, 2024, up by 5.8% from 41.0 million as of June 30, 2023.
•
Number of active users1 who used our loan products in the second quarter of 2024 was 4.2 million, representing a decrease of 16.4% from 5.0 million in the second quarter of 2023.
•
Number of cumulative borrowers with successful drawdown was 32.5 million as of June 30, 2024, an increase of 6.8% from 30.5 million as of June 30, 2023.

Loan Facilitation Business

•
As of June 30, 2024, we cumulatively originated RMB1,222.2 billion in loans, an increase of 23.8% from RMB987.4 billion as of June 30, 2023.
•
Total loan originations2 in the second quarter of 2024 was RMB51.1 billion, a decrease of 20.1% from RMB63.9 billion in the second quarter of 2023.
•
Total outstanding principal balance of loans2 reached RMB115 billion as of June 30, 2024, representing an increase of 0.9% from RMB114 billion as of June 30, 2023.

Credit Performance

•
90 day+ delinquency ratio was 3.7% as of June 30, 2024, as compared with 3.0% as of March 31, 2024.
•
First payment default rate (30 day+) for new loan originations was below 1% as of June 30, 2024.

Tech-empowerment Service

•
For the second quarter of 2024, we served over 80 business customers with our tech-empowerment service.
•
In the second quarter of 2024, the business customer retention rate3 of our tech-empowerment service was over 90%.

Installment E-commerce Platform Service

•
GMV4 in the second quarter of 2024 for our installment e-commerce platform service was RMB933 million, representing a decrease of 37.2% from RMB1,487 million in the second quarter of 2023.
•
In the second quarter of 2024, our installment e-commerce platform service served over 290,000 users and 400 merchants.

Other Operational Highlights

•
The weighted average tenor of loans originated on our platform in the second quarter of 2024 was approximately 12.8 months, as compared with 14.7 months in the second quarter of 2023.
•
Repeated borrowers’ contribution5 of loans across our platform for the second quarter of 2024 was 85.3%.

 

Page 2 of 13

 

Second Quarter 2024 Financial Highlights:

•
Total operating revenue was RMB3,641 million, representing an increase of 19.1% from the second quarter of 2023.
•
Credit facilitation service income was RMB2,669 million, representing an increase of 24.9% from the second quarter of 2023. Tech-empowerment service income was RMB535 million, representing an increase of 36.5% from the second quarter of 2023. Installment e-commerce platform service income was RMB437 million, representing a decrease of 17.0% from the second quarter of 2023.
•
Net income attributable to ordinary shareholders of the Company was RMB227 million, representing a decrease of 36.3% from the second quarter of 2023. Net income per ADS attributable to ordinary shareholders of the Company was RMB1.35 on a fully diluted basis.
•
Adjusted net income attributable to ordinary shareholders of the Company6 was RMB250 million, representing a decrease of 39.0% from the second quarter of 2023. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB1.49 on a fully diluted basis.

__________________________

1.
Active users refer to, for a specified period, users who made at least one transaction during that period through our platform or through our third-party partners’ platforms using the credit line granted by us.
2.
Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.
3.
Customer retention rate refers to the number of financial institution customers and partners who repurchase our service in the current quarter as a percentage of the total number of financial institution customers and partners in the preceding quarter.
4.
GMV refers to the total value of transactions completed for products purchased on our e-commerce and Maiya channel, net of returns.
5.
Repeated borrowers’ contribution for a given period refers to the principal amount of loans borrowed during that period by borrowers who had previously made at least one successful drawdown as a percentage of the total loan facilitation and origination volume through our platform during that period.
6.
Adjusted net income attributable to ordinary shareholders of the Company, adjusted net income per ordinary share and per ADS attributable to ordinary shareholders of the Company are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

Second Quarter 2024 Financial Results:

Operating revenue increased by 19.1% from RMB3,056 million in the second quarter of 2023 to RMB3,641 million in the second quarter of 2024.

Credit facilitation service income increased by 24.9% from RMB2,138 million in the second quarter of 2023 to RMB2,669 million in the second quarter of 2024. The increase was driven by the increases in loan facilitation and servicing fees-credit oriented and guarantee income, partially offset by the decrease in financing income.

Loan facilitation and servicing fees-credit oriented increased by 51.5% from RMB946 million in the second quarter of 2023 to RMB1,433 million in the second quarter of 2024. The increase was primarily due to the better control over the early repayment behaviors.

 

Guarantee income increased by 17.0% from RMB618 million in the second quarter of 2023 to RMB722 million in the second quarter of 2024. The increase was primarily driven by the increase of outstanding balances in the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.

 

Financing income decreased by 10.6% from RMB574 million in the second quarter of 2023 to RMB513 million in the second quarter of 2024. The decrease was primarily due to the decrease in the origination of on-balance sheet loans.

 

Page 3 of 13

 

Tech-empowerment service income increased by 36.5% from RMB392 million in the second quarter of 2023 to RMB535 million in the second quarter of 2024. The increase was primarily due to the increase of loan facilitation volume under the profit-sharing model.

 

Installment e-commerce platform service income decreased by 17.0% from RMB526 million in the second quarter of 2023 to RMB437 million in the second quarter of 2024. The decrease was primarily due to the decrease in transaction volume in the second quarter of 2024.

Cost of sales decreased by 9.1% from RMB465 million in the second quarter of 2023 to RMB423 million in the second quarter of 2024, which was consistent with the decrease in installment e-commerce platform service income.

Funding cost decreased by 41.8% from RMB156 million in the second quarter of 2023 to RMB90.5 million in the second quarter of 2024, which was primarily driven by the decrease in the cost of funding and funding debts to fund the on-balance sheet loans.

Processing and servicing costs increased by 16.3% from RMB446 million in the second quarter of 2023 to RMB519 million in the second quarter of 2024. This increase was primarily due to an increase in risk management and collection expenses.

Provision for financing receivables was RMB171 million for the second quarter of 2024, as compared to RMB146 million for the second quarter of 2023. The increase was primarily due to the decrease in performance of the on-balance sheet loans.

Provision for contract assets and receivables was RMB155 million in the second quarter of 2024, as compared to RMB125 million in the second quarter of 2023. The increase was primarily due to the increase in loan facilitation and servicing fees and the decrease in performance of the off-balance sheet loans.

Provision for contingent guarantee liabilities was RMB935 million in the second quarter of 2024, as compared to RMB722 million in the second quarter of 2023. The increase was primarily due to the increase of outstanding balances of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees, as well as the decrease in performance of the off-balance sheet loans.

Gross profit increased by 35.4% from RMB995 million in the second quarter of 2023 to RMB1,348 million in the second quarter of 2024.

Sales and marketing expenses was RMB467 million in the second quarter of 2024, as compared to RMB453 million in the second quarter of 2023.

Research and development expenses was RMB143 million in the second quarter of 2024, as compared to RMB121 million in the second quarter of 2023. The increase was primarily due to increased investment in technology development.

General and administrative expenses RMB100 million in the second quarter of 2024, as compared to RMB96.5 million in the second quarter of 2023.

Change in fair value of financial guarantee derivatives and loans at fair value was a loss of RMB368 million in the second quarter of 2024, as compared to a gain of RMB130 million in the second quarter of 2023. The change in fair value was primarily due to the re-measurement of the expected loss rates, partially offset by the fair value gains realized as a result of the release of guarantee obligation.

Income tax expense is RMB60.0 million in the second quarter of 2024, as compared to RMB80.8 million in the second quarter of 2023. The change was primarily due to the decrease of income before income tax expense.

Page 4 of 13

 

Net income decreased by 36.3% from RMB356 million in the second quarter of 2023 to RMB227 million in the second quarter of 2024.

 

Recent Development

Semi-Annual Dividend

The board of directors of the Company has approved a dividend of US$0.036 per ordinary share, or US$0.072 per ADS, for the six-month period ended June 30, 2024 in accordance with the Company’s dividend policy, which is expected to be paid on October 18, 2024 to shareholders of record (including holders of ADSs) as of the close of business on September 16, 2024 New York time.

 

Conference Call

The Company’s management will host an earnings conference call at 10:00 PM U.S. Eastern time on August 27, 2024 (10:00 AM Beijing/Hong Kong time on August 28, 2024).

Participants who wish to join the conference call should register online at:

https://register.vevent.com/register/BI3c6bd663baef41b58321967fdd88a0d6

Once registration is completed, each participant will receive the dial-in number and a unique access PIN for the conference call.

Participants joining the conference call should dial in at least 10 minutes before the scheduled start time.

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.lexin.com.

 

About LexinFintech Holdings Ltd.

We are a leading credit technology-empowered personal financial service enabler. Our mission is to use technology and risk management expertise to make financing more accessible for young generation consumers. We strive to achieve this mission by connecting consumers with financial institutions, where we facilitate through a unique model that includes online and offline channels, installment consumption platform, big data and AI driven credit risk management capabilities, as well as smart user and loan management systems. We also empower financial institutions by providing cutting-edge proprietary technology solutions to meet their needs of financial digital transformation.

For more information, please visit http://ir.lexin.com.

To follow us on Twitter, please go to: https://twitter.com/LexinFintech.

 

 

Page 5 of 13

 

Use of Non-GAAP Financial Measures Statement

In evaluating our business, we consider and use adjusted net income attributable to ordinary shareholders of the Company, non-GAAP EBIT, adjusted net income per ordinary share and per ADS attributable to ordinary shareholders of the Company, four non-GAAP measures, as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income attributable to ordinary shareholders of the Company as net income attributable to ordinary shareholders of the Company excluding share-based compensation expenses, interest expense associated with convertible notes, and investment income/(loss) and we define non-GAAP EBIT as net income excluding income tax expense, share-based compensation expenses, interest expense, net, and investment income/(loss).

We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Adjusted net income attributable to ordinary shareholders of the Company enables our management to assess our operating results without considering the impact of share-based compensation expenses, interest expense associated with convertible notes, and investment income/(loss). Non-GAAP EBIT, on the other hand, enables our management to assess our operating results without considering the impact of income tax expense, share-based compensation expenses, interest expense, net, and investment income/(loss). We also believe that the use of these non-GAAP financial measures facilitates investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP.

These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using adjusted net income attributable to ordinary shareholders of the Company and non-GAAP EBIT is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses, interest expense associated with convertible notes, income tax expense, interest expense, net, and investment income/(loss) have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income attributable to ordinary shareholders of the Company and non-GAAP EBIT. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

We compensate for these limitations by reconciling each of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2672 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 28, 2024. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

 

 

Page 6 of 13

 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Lexin’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the expectation of the collection efficiency and delinquency, business outlook and quotations from management in this announcement, contain forward-looking statements. Lexin may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Lexin’s goal and strategies; Lexin’s expansion plans; Lexin’s future business development, financial condition and results of operations; Lexin’s expectation regarding demand for, and market acceptance of, its credit and investment management products; Lexin’s expectations regarding keeping and strengthening its relationship with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Lexin’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Lexin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

LexinFintech Holdings Ltd.

IR inquiries:

Mandy Dong

Tel: +86 (755) 3637-8888 ext. 6258

E-mail: Mandydong@lexin.com

 

Media inquiries:

Limin Chen

Tel: +86 (755) 3637-8888 ext. 6993

E-mail: liminchen@lexin.com

SOURCE LexinFintech Holdings Ltd.

 

Page 7 of 13

 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Balance Sheets

 

As of

 

(In thousands)

December 31, 2023

 

June 30, 2024

 

 

RMB

 

RMB

 

US$

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

2,624,719

 

 

2,093,712

 

 

288,104

 

Restricted cash

 

1,433,502

 

 

2,079,970

 

 

286,213

 

Restricted term deposit and short-term investments

 

305,182

 

 

345,192

 

 

47,500

 

Short-term financing receivables, net(1)

 

3,944,000

 

 

3,865,333

 

 

531,888

 

Short-term contract assets and receivables, net(1)

 

6,112,981

 

 

6,595,149

 

 

907,523

 

Deposits to insurance companies and guarantee companies

 

2,613,271

 

 

2,369,989

 

 

326,121

 

Prepayments and other current assets

 

1,428,769

 

 

1,327,862

 

 

182,721

 

Amounts due from related parties

 

6,989

 

 

7,321

 

 

1,007

 

Inventories, net

 

33,605

 

 

45,034

 

 

6,197

 

Total Current Assets

 

18,503,018

 

 

18,729,562

 

 

2,577,274

 

Non-current Assets

 

 

 

 

 

 

Restricted cash

 

144,948

 

 

98,880

 

 

13,606

 

Long-term financing receivables, net(1)

 

200,514

 

 

144,478

 

 

19,881

 

Long-term contract assets and receivables, net(1)

 

599,818

 

 

398,602

 

 

54,849

 

Property, equipment and software, net

 

446,640

 

 

548,630

 

 

75,494

 

Land use rights, net

 

897,267

 

 

880,067

 

 

121,101

 

Long‑term investments

 

255,003

 

 

255,641

 

 

35,177

 

Deferred tax assets

 

1,232,092

 

 

1,345,458

 

 

185,141

 

Other assets

 

861,491

 

 

618,063

 

 

85,050

 

Total Non-current Assets

 

4,637,773

 

 

4,289,819

 

 

590,299

 

TOTAL ASSETS

 

23,140,791

 

 

23,019,381

 

 

3,167,573

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

49,801

 

 

42,968

 

 

5,913

 

Amounts due to related parties

 

2,958

 

 

9,167

 

 

1,261

 

Short‑term borrowings

 

502,013

 

 

608,093

 

 

83,676

 

Short‑term funding debts

 

3,483,196

 

 

2,345,753

 

 

322,786

 

Deferred guarantee income

 

1,538,385

 

 

1,275,387

 

 

175,499

 

Contingent guarantee liabilities

 

1,808,540

 

 

1,474,899

 

 

202,953

 

Accruals and other current liabilities

 

4,434,254

 

 

4,800,387

 

 

660,553

 

Convertible notes

 

505,450

 

 

-

 

 

-

 

Total Current Liabilities

 

12,324,597

 

 

10,556,654

 

 

1,452,641

 

Non-current Liabilities

 

 

 

 

 

 

Long-term borrowings

 

524,270

 

 

551,938

 

 

75,949

 

Long‑term funding debts

 

455,800

 

 

1,701,449

 

 

234,127

 

Deferred tax liabilities

 

75,340

 

 

71,192

 

 

9,796

 

Other long-term liabilities

 

50,702

 

 

47,235

 

 

6,500

 

Total Non-current Liabilities

 

1,106,112

 

 

2,371,814

 

 

326,372

 

TOTAL LIABILITIES

 

13,430,709

 

 

12,928,468

 

 

1,779,013

 

Shareholders’ equity:

 

 

 

 

 

 

Class A Ordinary Shares

 

199

 

 

200

 

 

30

 

Class B Ordinary Shares

 

41

 

 

41

 

 

7

 

Treasury stock

 

(328,764

)

 

(328,764

)

 

(45,239

)

Additional paid-in capital

 

3,204,961

 

 

3,254,489

 

 

447,833

 

Statutory reserves

 

1,106,579

 

 

1,106,579

 

 

152,270

 

Accumulated other comprehensive income

 

(13,545

)

 

(24,776

)

 

(3,409

)

Retained earnings

 

5,740,611

 

 

6,083,144

 

 

837,068

 

Total shareholders’ equity

 

9,710,082

 

 

10,090,913

 

 

1,388,560

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

23,140,791

 

 

23,019,381

 

 

3,167,573

 

__________________________

(1) Short-term financing receivables, net of allowance for credit losses of RMB58,594 and RMB91,343 as of December 31, 2023 and June 30, 2024, respectively.

Short-term contract assets and receivables, net of allowance for credit losses of RMB436,136 and RMB467,977 as of December 31, 2023 and June 30, 2024, respectively.

Long-term financing receivables, net of allowance for credit losses of RMB3,087 and RMB4,186 as of December 31, 2023 and June 30, 2024, respectively.

Long-term contract assets and receivables, net of allowance for credit losses of RMB61,838 and RMB35,408 as of December 31, 2023 and June 30, 2024, respectively.
 

Page 8 of 13

 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Operations

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(In thousands, except for share and per share data)

2023

 

2024

 

 

2023

 

2024

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit facilitation service income

 

2,137,718

 

 

2,669,093

 

 

367,280

 

 

 

4,253,526

 

 

5,317,571

 

 

731,722

 

Loan facilitation and servicing fees-credit oriented

 

945,919

 

 

1,433,416

 

 

197,245

 

 

 

1,910,090

 

 

2,850,664

 

 

392,264

 

Guarantee income

 

617,599

 

 

722,288

 

 

99,390

 

 

 

1,171,267

 

 

1,466,539

 

 

201,802

 

Financing income

 

574,200

 

 

513,389

 

 

70,645

 

 

 

1,172,169

 

 

1,000,368

 

 

137,655

 

Tech-empowerment service income

 

391,695

 

 

534,548

 

 

73,556

 

 

 

759,627

 

 

896,091

 

 

123,306

 

Installment e-commerce platform service income

 

526,399

 

 

437,047

 

 

60,140

 

 

 

1,025,558

 

 

668,956

 

 

92,051

 

Total operating revenue

 

3,055,812

 

 

3,640,688

 

 

500,976

 

 

 

6,038,711

 

 

6,882,618

 

 

947,079

 

Operating cost

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(465,393

)

 

(422,933

)

 

(58,198

)

 

 

(931,864

)

 

(658,680

)

 

(90,637

)

Funding cost

 

(155,651

)

 

(90,525

)

 

(12,457

)

 

 

(306,034

)

 

(181,263

)

 

(24,943

)

Processing and servicing cost

 

(446,140

)

 

(518,692

)

 

(71,374

)

 

 

(975,101

)

 

(1,106,423

)

 

(152,249

)

Provision for financing receivables

 

(145,931

)

 

(170,974

)

 

(23,527

)

 

 

(284,779

)

 

(307,657

)

 

(42,335

)

Provision for contract assets and receivables

 

(125,242

)

 

(154,778

)

 

(21,298

)

 

 

(267,188

)

 

(320,720

)

 

(44,133

)

Provision for contingent guarantee liabilities

 

(722,018

)

 

(934,693

)

 

(128,618

)

 

 

(1,375,095

)

 

(1,763,070

)

 

(242,607

)

Total operating cost

 

(2,060,375

)

 

(2,292,595

)

 

(315,472

)

 

 

(4,140,061

)

 

(4,337,813

)

 

(596,904

)

Gross profit

 

995,437

 

 

1,348,093

 

 

185,504

 

 

 

1,898,650

 

 

2,544,805

 

 

350,175

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

(453,112

)

 

(467,423

)

 

(64,320

)

 

 

(893,077

)

 

(885,040

)

 

(121,786

)

Research and development expenses

 

(121,338

)

 

(143,250

)

 

(19,712

)

 

 

(250,865

)

 

(278,232

)

 

(38,286

)

General and administrative expenses

 

(96,519

)

 

(100,434

)

 

(13,820

)

 

 

(193,556

)

 

(190,194

)

 

(26,172

)

Total operating expenses

 

(670,969

)

 

(711,107

)

 

(97,852

)

 

 

(1,337,498

)

 

(1,353,466

)

 

(186,244

)

Change in fair value of financial guarantee derivatives and loans at fair value

 

130,461

 

 

(368,261

)

 

(50,674

)

 

 

286,726

 

 

(684,184

)

 

(94,147

)

Interest (expense)/income, net

 

(21,804

)

 

1,988

 

 

274

 

 

 

(25,884

)

 

(1,916

)

 

(264

)

Investment (loss)/income

 

(699

)

 

260

 

 

36

 

 

 

(539

)

 

350

 

 

48

 

Others, net

 

4,101

 

 

15,603

 

 

2,147

 

 

 

16,856

 

 

36,028

 

 

4,958

 

Income before income tax expense

 

436,527

 

 

286,576

 

 

39,435

 

 

 

838,311

 

 

541,617

 

 

74,526

 

Income tax expense

 

(80,794

)

 

(60,045

)

 

(8,262

)

 

 

(155,088

)

 

(113,463

)

 

(15,613

)

Net income

 

355,733

 

 

226,531

 

 

31,173

 

 

 

683,223

 

 

428,154

 

 

58,913

 

Net income attributable to ordinary shareholders of the Company

 

355,733

 

 

226,531

 

 

31,173

 

 

 

683,223

 

 

428,154

 

 

58,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ordinary share attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1.08

 

 

0.68

 

 

0.09

 

 

 

2.08

 

 

1.30

 

 

0.18

 

Diluted

 

1.02

 

 

0.68

 

 

0.09

 

 

 

1.94

 

 

1.30

 

 

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ADS attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

2.17

 

 

1.37

 

 

0.19

 

 

 

4.16

 

 

2.59

 

 

0.36

 

Diluted

 

2.04

 

 

1.35

 

 

0.19

 

 

 

3.87

 

 

2.59

 

 

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

328,241,855

 

 

330,780,601

 

 

330,780,601

 

 

 

328,402,747

 

 

330,528,871

 

 

330,528,871

 

Diluted

 

374,351,114

 

 

335,192,422

 

 

335,192,422

 

 

 

374,821,074

 

 

334,421,262

 

 

334,421,262

 

 

Page 9 of 13

 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(In thousands)

2023

 

2024

 

 

2023

 

2024

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Net income

 

355,733

 

 

226,531

 

 

31,173

 

 

 

683,223

 

 

428,154

 

 

58,913

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil tax

 

(24,579

)

 

(13,554

)

 

(1,865

)

 

 

(20,582

)

 

(11,231

)

 

(1,545

)

Total comprehensive income

 

331,154

 

 

212,977

 

 

29,308

 

 

 

662,641

 

 

416,923

 

 

57,368

 

Total comprehensive income attributable to ordinary shareholders of the Company

 

331,154

 

 

212,977

 

 

29,308

 

 

 

662,641

 

 

416,923

 

 

57,368

 

 

Page 10 of 13

 

LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(In thousands, except for share and per share data)

2023

 

2024

 

 

2023

 

2024

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Reconciliation of Adjusted net income attributable to ordinary shareholders of the Company to Net income attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to ordinary shareholders of the Company

 

355,733

 

 

226,531

 

 

31,173

 

 

 

683,223

 

 

428,154

 

 

58,913

 

Add: Share-based compensation expenses

 

25,987

 

 

23,119

 

 

3,181

 

 

 

58,656

 

 

46,393

 

 

6,384

 

Interest expense associated with convertible notes

 

27,017

 

 

373

 

 

51

 

 

 

42,073

 

 

5,695

 

 

784

 

Investment loss/(income)

 

699

 

 

(260

)

 

(36

)

 

 

539

 

 

(350

)

 

(48

)

Adjusted net income attributable to ordinary shareholders of the Company

 

409,436

 

 

249,763

 

 

34,369

 

 

 

784,491

 

 

479,892

 

 

66,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per ordinary share attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1.25

 

 

0.76

 

 

0.10

 

 

 

2.39

 

 

1.45

 

 

0.20

 

Diluted

 

1.09

 

 

0.75

 

 

0.10

 

 

 

2.09

 

 

1.43

 

 

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per ADS attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

2.49

 

 

1.51

 

 

0.21

 

 

 

4.78

 

 

2.90

 

 

0.40

 

Diluted

 

2.19

 

 

1.49

 

 

0.21

 

 

 

4.19

 

 

2.87

 

 

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in calculating net income per ordinary share for non-GAAP EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

328,241,855

 

 

330,780,601

 

 

330,780,601

 

 

 

328,402,747

 

 

330,528,871

 

 

330,528,871

 

Diluted

 

374,351,114

 

 

335,192,422

 

 

335,192,422

 

 

 

374,821,074

 

 

334,421,262

 

 

334,421,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliations of Non-GAAP EBIT to Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

355,733

 

 

226,531

 

 

31,173

 

 

 

683,223

 

 

428,154

 

 

58,913

 

Add: Income tax expense

 

80,794

 

 

60,045

 

 

8,262

 

 

 

155,088

 

 

113,463

 

 

15,613

 

Share-based compensation expenses

 

25,987

 

 

23,119

 

 

3,181

 

 

 

58,656

 

 

46,393

 

 

6,384

 

Interest expense/(income), net

 

21,804

 

 

(1,988

)

 

(274

)

 

 

25,884

 

 

1,916

 

 

264

 

Investment loss/(income)

 

699

 

 

(260

)

 

(36

)

 

 

539

 

 

(350

)

 

(48

)

Non-GAAP EBIT

 

485,017

 

 

307,447

 

 

42,306

 

 

 

923,390

 

 

589,576

 

 

81,126

 

 

 

Page 11 of 13

 

Additional Credit Information

Vintage Charge Off Curve

img85518425_0.jpg 

Dpd30+/GMV by Performance Windows

img85518425_1.jpg 

 

Page 12 of 13

 

First Payment Default 30+

img85518425_2.jpg 

Page 13 of 13