LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX),
a leading online consumption and consumer finance platform for new
generation consumers in China, today announced its unaudited
financial results for the quarter ended December 31, 2020.
Fourth Quarter and Full Year 2020
Operational Highlights:
- Total loan originations1 in the fourth quarter of 2020 reached
RMB53.2 billion, an increase of 24.2% from RMB42.8 billion in the
fourth quarter of 2019. Total loan originations1 in 2020 reached
RMB177 billion, an increase of 40.3% from RMB126 billion in
2019.
- Total outstanding principal balance of loans1 reached RMB76.5
billion as of December 31, 2020, representing an increase of 26.3%
from RMB60.6 billion as of December 31, 2019.
- Number of active users2 who used our loan products in 2020
reached 12.9 million, representing an increase of 31.2% from 9.9
million in 2019. Number of active users2 who used our loan products
in the fourth quarter of 2020 reached 8.2 million, representing an
increase of 16.9% from 7.0 million in the fourth quarter of
2019.
- Number of new active users who used our loan products in 2020
was 6.1 million, representing a decrease of 6.9% from 6.6 million
in 2019. Number of new active users who used our loan products in
the fourth quarter of 2020 was 2.1 million, representing a decrease
of 1.7% in the fourth quarter of 2019.
- Number of orders placed on our platform in 2020 was 298
million, representing an increase of 77.1% from 168 million in
2019. Number of orders placed on our platform in the fourth quarter
of 2020 was 87.6 million, representing an increase of 26.5% from
69.2 million in the fourth quarter of 2019.
- The GMV3 of our e-commerce channel in 2020 reached RMB5.3
billion, representing a decrease of 34.7% from RMB8.1 billion in
2019. The GMV of our e-commerce channel in the fourth quarter of
2020 amounted to RMB1.4 billion, representing a decrease of 42.7%
from RMB2.4 billion in the fourth quarter of 2019.
- The weighted average tenor of loans originated on our platform
in the fourth quarter of 2020 was approximately 12 months. The
nominal APR4 was 16.1% for the fourth quarter of 2020.
- Total number of registered users reached 118 million as of
December 31, 2020, representing an increase of 61.2% from 73.3
million as of December 31, 2019; and users with credit line reached
27.7 million as of December 31, 2020, up by 43.2% from 19.4 million
as of December 31, 2019.
- 90 day+ delinquency ratio5 was 1.95% as of December 31,
2020.1 Originations of loans and outstanding principal
balance represent the origination and outstanding principal balance
of both on- and off-balance sheet loans.2 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 credit line granted by
us.3 GMV refers to the total value of transactions
completed for products purchased on the e-commerce channel, net of
returns.4 Nominal APR refers to all-in interest costs
and fees to the borrower over the net proceeds received by the
borrower as a percentage of the total loan originations of both on-
and off-balance sheet loans.5 90 day+ delinquency ratio
refers to outstanding principal balance of on- and off-balance
sheet loans that were 90 to 179 calendar days past due as a
percentage of the total outstanding principal balance of on- and
off-balance sheet loans on our platform as of a specific date.
On-balance sheet loans that were over 179 calendar days past due
and charged off are not included in the delinquency rate
calculation. Off-balance sheet loans that were over 179 calendar
days past due are assumed charged off and not included in the
delinquency rate calculation. The Company does not distinguish on
the basis of the on- or off-balance sheet treatment in monitoring
the credit risks of borrowers and the delinquency status of
loans.
Fourth Quarter 2020 Financial
Highlights:
- Total operating revenue reached RMB3.0 billion. Credit-oriented
services income reached RMB1.8 billion, representing an increase of
3.2% from the fourth quarter of 2019. Platform-based services
income reached RMB717 million, representing an increase of 232%
from the fourth quarter of 2019.
- Gross profit reached RMB1,520 million, representing an increase
of 2.9% from the fourth quarter of 2019.
- Net income was RMB510 million, representing a decrease of 1.6%
from the fourth quarter of 2019.
- Non-GAAP EBIT6 was RMB704 million, representing an increase of
0.8% from the fourth quarter of 2019.
- Adjusted net income6 was RMB603 million, representing an
increase of 3.1% from the fourth quarter of 2019. Adjusted net
income per ADS6 was RMB2.93 on a fully diluted basis.
Full Year 2020 Financial
Highlights:
- Total operating revenue reached RMB11.6 billion.
Credit-oriented services income reached RMB7.5 billion,
representing an increase of 26.3% from 2019. Platform-based
services income reached RMB2.0 billion, representing an increase of
150% from 2019.
- Gross profit reached RMB3,633 million, representing a decrease
of 27.3% from 2019.
- Net income was RMB595 million, representing a decrease of 74.1%
from 2019.
- Non-GAAP EBIT6 was RMB1,023 million, representing a decrease of
64.4% from 2019.
- Adjusted net income6 was RMB903 million, representing a
decrease of 62.9% from 2019. Adjusted net income per ADS6 was
RMB4.39 on a fully diluted basis.6 Non-GAAP EBIT,
adjusted net income, adjusted net income per ordinary share and per
ADS 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.
“In the past year, in spite of the challenging conditions
presented by the ongoing COVID-19 pandemic, Lexin was able to meet
our guidance and complete our loan origination targets. Our
registered users, scale, and revenues continued to grow, and our
credit risk is continuing to stabilize.” said Mr. Jay Wenjie Xiao,
Lexin’s chairman and chief executive officer. “In particular, our
‘To Bank’ technology service capabilities continue to lead the
industry. In the fourth quarter, loan originations generated under
our pure technology service model represented over 50% of our new
loan originations, improving the overall quality of our growth.
This year, Lexin will aim to achieve even faster growth with higher
quality, and based on the strong performance in the first quarter
and the improving asset quality, we are raising our full year loan
origination target up to RMB250 billion.”
“Even our core financial technology business continues to grow,
we will concurrently develop a second area of growth. At the
beginning of this year, Lexin introduced our new Yuehui, Maiya, and
Xiaofeihao products, to expand the potential of our business, and
to expand the customers that we serve from 120 million to the
potential 500 million in the new consumption cohort. We currently
estimate that our Maiya product will achieve GMV of RMB50 million
for March.” Mr. Xiao added. “The scale of our potential business
will extend to cover China’s USD4 trillion new consumption market.
As China becomes the world’s largest consumption market, Lexin will
utilize the customers, consumption scenarios, and operational
capabilities that we have accumulated over the many years, to fully
capture the potential of this historical opportunity, and to
realize ever stronger growth from the expanding new consumption
market.”
“We performed strongly in the last quarter of 2020 and we are
currently seeing strong positive growth trends for 2021. As a
result, we are raising our full year loan origination guidance for
2021, as we now expect total loan originations for 2021 to be
between RMB240 and RMB250 billion,” said Mr. Craig Yan Zeng,
Lexin’s chief financial officer, “In addition, the continued
efforts made on improving asset quality are expected to enable a
strong recovery in our profitability for the current fiscal
year.”
“Our credit performance and credit quality continues to improve
for new loan originations and is within our expectations,” said Mr.
Yang Qiao, Lexin’s vice president, “Our vintage charge-off rates7
is at approximately 4.0%, and our 90 day+ delinquency rate was
1.95% as of December, 2020. In addition, our first payment default
rate (30 day+)8 for new loan originations have been at below 1% for
the past 5 months now, and our one-month delinquencies for all our
key past vintages have peak. As a result, we expect our credit
performance to continue to improve in the future.”
7 Vintage charge-off rate
refers to, with respect to on- and off-balance sheet loans
originated during a specified time period, which we refer to as a
vintage, the total outstanding principal balance of the loans that
are charged off during a specified period, divided by the total
initial principal of the loans originated in such vintage. Please
refer to vintage curve at the end of “Fourth Quarter 2020 Financial
Results” of this press release.
8 Loan balance with first
payment day past due 30+ over total loan origination.
Fourth Quarter 2020 Financial
Results:
Operating revenue decreased from RMB3,148 million in the fourth
quarter of 2019 to RMB3,033 million in the fourth quarter of 2020.
This decrease in operating revenue was due to a decrease in online
direct sales and services income, partially offset by the increase
in credit-oriented services income and platform-based services
income for the quarter, driven by continuing increases in the
number of active users on our platform, and the change of the
presentation of guarantee income along with the adoption of ASC
326. Before the adoption of ASC 326, gain or loss related to
financial guarantee not accounted for as derivatives was recorded
in one combined financial statement line item within “Gain on
guarantee liabilities, net.” After the adoption of ASC 326, the
gain released from the guarantee liabilities accounted for under
ASC 460 is recorded as “Guarantee income” as a separate financial
statement line item within revenue and the relevant credit losses
are recorded as “Provision for credit losses of contingent
liabilities of guarantee.”
Online direct sales decreased by 60.6% from RMB1,085 million in
the fourth quarter of 2019 to RMB428 million in the fourth quarter
of 2020. This decrease was primarily due to the decrease in the
number of e-commerce orders during the fourth quarter of 2020.
Credit-oriented services income increased by 3.2% from RMB1,789
million in the fourth quarter of 2019 to RMB1,846 million in the
fourth quarter of 2020. The increase was primarily resulted from
the increase of RMB339 million due to change of presentation of
guarantee income as aforementioned
and the increase of interest and financial services income and other revenues, partially
offset by the decrease in loan facilitation and servicing
fees-credit oriented.
Loan facilitation and servicing fees-credit oriented decreased
by 32.4% from RMB1,530 million in the fourth quarter of 2019 to
RMB1,034 million in the fourth quarter of 2020. This decrease was
primarily due to the Company’s business strategy shift to increase
the loan originations under platform-based model.
Guarantee income for the fourth quarter of 2020 was RMB339
million. The guarantee liabilities accounted for under ASC 460 are
released from the underlying risk, i.e., as the underlying loan is
repaid by the borrower or when the lender is compensated in the
event of a borrower’s default.
Interest and financial services income and other revenues
increased by 82.3% from RMB259 million in the fourth quarter of
2019 to RMB473 million in the fourth quarter of 2020, which was
consistent with the increase in the origination of on-balance sheet
loans in the fourth quarter of 2020.
Platform-based services income increased by 232% from RMB216
million in the fourth quarter of 2019 to RMB717 million in the
fourth quarter of 2020. This increase was primarily contributed by
an increase in the loan facilitation and servicing fees-performance
based.
Loan facilitation and servicing fees-performance based increased
by 251% from RMB194 million in the fourth quarter of 2019 to RMB679
million in the fourth quarter of 2020. This increase was primarily
due to an increase in the origination of off-balance sheet loans
under the performance-based model within platform-based services,
driven by continuing increases in the number of active users on our
platform.
Cost of sales decreased by 60.4% from RMB1,092 million in the
fourth quarter of 2019 to RMB432 million in the fourth quarter of
2020, which is consistent with the decrease of online direct sales
revenue.
Funding cost increased by 9.7% from RMB128 million in the fourth
quarter of 2019 to RMB141 million in the fourth quarter of 2020,
which was consistent with the increase of the funding debts to fund
the on-balance sheet loans.
Processing and servicing cost increased by 81.8% from RMB210
million in the fourth quarter of 2019 to RMB382 million in the
fourth quarter of 2020. This increase was primarily due to an
increase in fees to third-party insurance companies and guarantee
companies, an increase in risk management expenses, and an increase
in salaries and personnel related costs.
Provision for credit losses of financing receivables decreased
by 31.2% from RMB219 million in the fourth quarter of 2019 to
RMB151 million in the fourth quarter of 2020. The credit losses
have reflected the most recent performance in relation to the
Company’s on-balance sheet loans and the Company has continued to
implement prudent credit assessment and risk management policies
and procedures.
Provision for credit losses of contract assets and receivables
increased by 794% from RMB20.9 million in the fourth quarter of
2019 to RMB187 million in the fourth quarter of 2020. This increase
was mainly due to the significant increase in off-balance sheet
loans originated as a result of the continuing growth of our
business, earlier recognition of credit losses under ASC 326 as
well as negative impact of the ongoing COVID-19 pandemic started in
2020.
Provision for credit losses of contingent liabilities of
guarantee was RMB220 million in the fourth quarter of 2020. After
the adoption of ASC 326 on January 1, 2020, a separate contingent
liability in full amount determined using current expected credit
losses (“CECL”) lifetime methodology is accounted for in addition
to and separately from the guarantee liabilities accounted for
under ASC 460, and relevant credit losses are recorded as
“Provision for credit losses of contingent liabilities of
guarantee.” Before the adoption of ASC 326, gain or loss related to
such financial guarantee was recorded in one combined financial
statement line item within “Gain on guarantee liabilities,
net.”
Gross profit increased by 2.9% from RMB1,478 million in the
fourth quarter of 2019 to RMB1,520 million in the fourth quarter of
2020. The increase in the gross profit is primarily due to the
significant increase in platform-based services income and interest
and financial services income and other revenues, and partially
offset by the increase in processing and servicing cost, provision
for credit losses of contract assets and receivables and provision
for credit losses of contingent liabilities of guarantee.
Sales and marketing expenses decreased by 34.0% from RMB520
million in the fourth quarter of 2019 to RMB343 million in the
fourth quarter of 2020. This decrease was primarily due to a
decrease in online advertising cost.
Research and development expenses decreased by 6.1% from RMB101
million of 2019 to RMB95.1 million in the fourth quarter of 2020.
This decrease was primarily due to a decrease in salaries and
personnel related costs.
General and administrative expenses increased by 4.8% from
RMB120 million in the fourth quarter of 2019 to RMB125 million in
the fourth quarter of 2020. This increase was primarily due to an
increase in rental expenses.
Change in fair value of financial guarantee derivatives was a
loss of RMB326 million in the fourth quarter of 2020, as compared
to a loss of RMB258 million in the fourth quarter of 2019. The loss
was primarily due to the re-measurement of the expected loss rates
of the underlying outstanding off-balance sheet loans at the
balance sheet date.
Change in fair value of loans at fair value was a loss of
RMB35.9 million in the fourth quarter of 2020. Starting from the
second quarter of 2020, for the loans we acquired/purchased from
the relevant funding partners during the period, we account for
them using fair value option pursuant to ASC 825, Financial
Instruments, and record them as “Loans at fair value”. Changes in
fair value of these loans are reported net and recorded as “Change
in fair value of loans at fair value”.
Income tax expense for the fourth quarter of 2020 was RMB94.2
million, as compared to income tax expense of RMB96.1 million in
the fourth quarter of 2019. The decrease of the income tax expense
was consistent with the decrease of the taxable income from the
same period of 2019.
Net income for the fourth quarter of 2020 was RMB510 million,
representing a decrease of 1.6% from RMB518 million in the fourth
quarter of 2019.
Adjusted net income for the fourth quarter of 2020 was RMB603
million, representing an increase of 3.1% from RMB585 million in
the fourth quarter of 2019.
Full Year 2020 Financial
Results:
Operating revenue increased from RMB10,604 million in 2019 to
RMB11,645 million in 2020. This increase in operating revenue was
due to an increase in credit-oriented services income and
platform-based services income for the year, driven by continuing
increases in the number of active users on our platform, and the
change of the presentation of guarantee income along with the
adoption of ASC 326, partially offset by the decrease in online
direct sales and services income. Before the adoption of ASC 326,
gain or loss related to financial guarantee not accounted for as
derivatives was recorded in one combined financial statement line
item within “Gain on guarantee liabilities, net.” After the
adoption of ASC 326, the gain released from the guarantee
liabilities accounted for under ASC 460 is recorded as “Guarantee
income” as a separate financial statement line item within revenue
and the relevant credit losses are recorded as “Provision for
credit losses of contingent liabilities of guarantee.”
Online direct sales decreased by 47.5% from RMB3,624 million in
2019 to RMB1,901million in 2020. This decrease was primarily due to
the decrease in the number of e-commerce orders during 2020.
Credit-oriented services income increased by 26.3% from RMB6.0
billion in 2019 to RMB7.5 billion in 2020. The increase was
primarily resulted from the increase of RMB2,320 million due to
change of presentation of guarantee income as aforementioned,
partially offset by the decrease in loan facilitation and servicing
fees-credit oriented.
Loan facilitation and servicing fees-credit oriented decreased
by 21.3% from RMB4,812 million in 2019 to RMB3,787 million in 2020.
This decrease was primarily due to the Company’s business strategy
shift to increase the loan originations under platform-based
model.
Guarantee income for 2020 was RMB2,320 million. The guarantee
liabilities accounted for under ASC 460 are released from the
underlying risk, i.e., as the underlying loan is repaid by the
borrower or when the lender is compensated in the event of a
borrower’s default.
Interest and financial services income and other revenues
increased by 23.7% from RMB1,147 million in 2019 to RMB1,419
million in 2020, which was consistent with the increase in the
origination of on-balance sheet loans in 2020.
Platform-based services income increased by 150% from RMB816
million in 2019 to RMB2,037 million in 2020. This increase was
primarily contributed by an increase in the loan facilitation and
servicing fees-performance based, partially offset by the decrease
in loan facilitation and servicing fees-volume based.
Loan facilitation and servicing fees-performance based increased
by 198% from RMB649 million in 2019 to RMB1,931 million in 2020.
This increase was primarily due to an increase in the origination
of off-balance sheet loans under the performance-based model within
platform-based services, driven by continuing increases in the
number of active users on our platform.
Cost of sales decreased by 47.4% from RMB3,624 million in 2019
to RMB1,908 million in 2020, which was consistent with the decrease
of online direct sales revenue.
Funding cost increased by 15.9% from RMB509 million in 2019 to
RMB590 million in 2020, which was consistent with the increase of
the funding debts to fund the on-balance sheet loans.
Processing and servicing cost increased by 120% from RMB642
million in 2019 to RMB1,413 million in 2020. This increase was
primarily due to an increase in fees to third-party insurance
companies and guarantee companies, an increase in fees to
third-party payment platforms, an increase in risk management
expenses, an increase in credit assessment cost, and an increase in
salaries and personnel related costs.
Provision for credit losses of financing receivables increased
by 10.0% from RMB709 million in 2019 to RMB779 million in 2020. The
credit losses have reflected the most recent performance in
relation to the Company’s on-balance sheet loans and the Company
has continued to implement prudent credit assessment and risk
management policies and procedures.
Provision for credit losses of contract assets and receivables
increased by 252% from RMB125 million in 2019 to RMB442 million in
2020. This increase was mainly due to the significant increase in
off-balance sheet loans originated as a result of the continuing
growth of our business, earlier recognition of credit losses under
ASC 326 as well as negative impact of the ongoing COVID-19 pandemic
started in 2020.
Provision for credit losses of contingent liabilities of
guarantee was RMB2,881 million in 2020. After the adoption of ASC
326 on January 1, 2020, a separate contingent liability in full
amount determined using current expected credit losses (“CECL”)
lifetime methodology is accounted for in addition to and separately
from the guarantee liabilities accounted for under ASC 460, and
relevant credit losses are recorded as “Provision for credit losses
of contingent liabilities of guarantee.” Before the adoption of ASC
326, gain or loss related to such financial guarantee was recorded
in one combined financial statement line item within “Gain on
guarantee liabilities, net.”
Gross profit decreased by 27.3% from RMB4,994 million in 2019 to
RMB3,633 million in 2020. The decrease in the gross profit is
primarily due to the significant increase of processing and
servicing cost, provision for credit losses of contract assets and
receivables and provision for credit losses of contingent
liabilities of guarantee, partially offset by the increase in
platform-based services income.
Sales and marketing expenses decreased by 17.2% from RMB1,539
million in 2019 to RMB1,274 million in 2020. This decrease was
primarily due to a decrease in online advertising cost.
Research and development expenses increased by 14.0% from RMB416
million in 2019 to RMB474 million in 2020. This increase was
primarily due to an increase in salaries and personnel related
costs and an increase in depreciation and amortization
expenses.
General and administrative expenses increased by 9.5% from
RMB412 million in 2019 to RMB451 million in 2020. This increase was
primarily due to an increase in salaries and personnel related
costs.
Change in fair value of financial guarantee derivatives was a
loss of RMB707 million in 2020, as compared to a loss of RMB212
million in 2019. The loss was primarily due to the re-measurement
of the expected loss rates of the underlying outstanding
off-balance sheet loans at the balance sheet date.
Change in fair value of loans at fair value was a loss of
RMB47.3 million in 2020. Starting from the second quarter of 2020,
for the loans we acquired/purchased from the relevant funding
partners during the period, we account for them using fair value
option pursuant to ASC 825, Financial Instruments, and record them
as “Loans at fair value”. Changes in fair value of these loans are
reported net and recorded as “Change in fair value of loans at fair
value”.
An investment-related impairment charge of RMB69.2 million was
recognized in 2020 on an equity investment due to its unsatisfied
financial performance.
Income tax expense for 2020 was RMB90.6 million, as compared to
income tax expense of RMB412 million in 2019. The decrease of the
income tax expense was consistent with the decrease of the taxable
income from 2019. In addition, RMB16.2 million income tax provision
relating to 2019 was reversed as one subsidiary of the Group was
certified to be qualified for using a preferential tax rate of 10%
for 2019 annual tax clearance in the third quarter of 2020.
Net income for 2020 was RMB595 million, representing a decrease
of 74.1% from RMB2,295 million in 2019.
Adjusted net income for 2020 was RMB903 million, representing a
decrease of 62.9% from RMB2,434 million in 2019.
Please click here to view our vintage curve:
http://ml.globenewswire.com/Resource/Download/016e8a88-23ed-46f7-92ce-697c02cd0ae7
Regulatory update
In February 2021, the China Banking Regulatory Commission, the
People’s Bank of China, the Ministry of Education, the Office of
the Central Cyberspace Affairs Commission and the Ministry of
Public Security jointly issued the Notice on Further Strengthening
the Regulation and Management Work of Internet Consumer Loan for
College Students. The notice provides that the micro-credit
companies are prohibited to provide internet consumer loans to
college students. In addition, it sets forth several requirements
on the banking financial institutions participating in internet
consumer loans for college students, including without limitation:
(i) the banking financial institutions and its cooperative
institution shall not conduct online precision marketing aimed at
college students, and shall complete necessary filings and reports
with relevant authorities before offline promotion in campus; (ii)
the banking financial institutions shall strictly check credit
qualifications and the identities of college students and their use
of loans, conduct comprehensive credit assessment, and receive a
written confirmation from the second repayment sources (such as
parents, guardians, or other administrator of the college students)
that they agree such internet consumer loan provided to such
college student and they will guarantee the repayment of such
internet consumer loan; and (iii) all credit information of
internet consumer loan for college students shall be submitted to
the financial credit information database in a timely, complete and
accurate manner, and college students who do not agree to submit
such credit information shall not be extended the loan.
In 2017, as directed by the relevant regulatory authorities, our
micro-credit loan company had already stopped providing services to
college students. We will also recommend new customers based on any
new instructions provided by our financial institution partners. In
addition, we will continue to assess and strengthen our customer
identification capabilities, to better comply with the requests of
our financial institution partners.
Management changes
On March 18, 2021, Lexin appointed Mr. Ryan Huanian Liu as the
Company’s new senior vice president responsible for new business
initiatives. Previously, Mr. Liu was Lexin’s chief risk officer in
charge of the company’s risk control operations. In addition, Lexin
would also like to welcome Mr. Yang Qiao to the Lexin team as a new
vice president responsible for risk control. Prior to joining
Lexin, Mr. Qiao held senior positions with JD Finance, Discover,
and ZRobot.
Outlook
Based on Lexin’s preliminary assessment of the current market
conditions, the Company now expects total loan originations for
fiscal year 2021 to be between RMB240 billion and RMB250 billion,
representing an upward adjustment of up to RMB30 billion from the
previously stated guidance of RMB220 to RMB230 billion disclosed in
the Company’s January 2021 press release. This is Lexin’s current
and preliminary view, which is subject to changes and
uncertainties.
Conference Call
The Company's management will host an earnings conference call
at 11:00 PM U.S. Eastern time on March 18, 2021 (11:00 AM
Beijing/Hong Kong time on March 19, 2021).
Participants who wish to join the conference call should
register online at:
http://apac.directeventreg.com/registration/event/3006519
Please note the Conference ID number of 3006519.
Once registration is completed, participants will receive the
dial-in information for the conference call, an event passcode, and
a unique registrant ID number.
Participants joining the conference call should dial-in at least
10 minutes before the scheduled start time.
Additionally, a live and archived webcast of the conference call
will be available on the Company’s investor relations website at
http://ir.lexin.com.
A replay of the conference call will be accessible approximately
two hours after the conclusion of the live call until March 26,
2021, by dialing the following telephone numbers:
United States: |
1
855 452 5696 or 1 646 254 3697 |
International: |
61 2 8199 0299 |
Replay Access Code: |
3006519 |
About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. is a leading online consumption and
consumer finance platform for new generation consumers in China.
The Company provides a range of services including financial
technology services, membership benefits, and a point redemption
system through its ecommerce platform Fenqile and membership
platform Le Card. The Company works with financial institutions and
brands both online and offline to provide a comprehensive
consumption ecosystem catering to the needs of young professionals
in China. Lexin utilizes advanced technologies such as big data,
cloud computing and artificial intelligence throughout the
Company's services and operations, which include risk management,
loan facilitation, and the near-instantaneous matching of users’
funding requests with offers from the Company's many funding
partners.
For more information, please visit http://ir.lexin.com
To follow us on Twitter, please go to:
https://twitter.com/LexinFintech.
Use of Non-GAAP Financial Measures
Statement
In evaluating our business, we consider and use adjusted net
income, non-GAAP EBIT, adjusted net income per ordinary share and
per ADS, 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 as net income excluding share-based compensation expenses,
interest expense associated with convertible notes,
investment-related impairment and investment loss/(income) and we
define non-GAAP EBIT as net income excluding income tax expense,
share-based compensation expenses, interest expense, net,
investment-related impairment, and investment loss/(income).
We present these non-GAAP financial measures because it is used
by our management to evaluate our operating performance and
formulate business plans. Adjusted net income enables our
management to assess our operating results without considering the
impact of share-based compensation expenses, interest expense
associated with convertible notes, investment-related impairment
and investment loss/(income). 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, investment-related
impairment and investment loss/(income). 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 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-related impairment and investment loss/(income) have
been and may continue to be incurred in our business and are not
reflected in the presentation of adjusted net income 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 the non-GAAP
financial measure 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 RMB6.5250 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Federal Reserve Board on December 31, 2020. The
Company makes no representation that the RMB or US$ amounts
referred could be converted into US$ or RMB, as the case may be, at
any particular rate or at all.
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 its 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:Tony HungTel: +86 (755)
3637-8888 ext. 6258E-mail: IR@lexin.com
Media inquiries:Limin ChenTel: +86 (755) 3637-8888 ext.
6993E-mail: liminchen@lexin.com
SOURCE LexinFintech Holdings Ltd.
|
LexinFintech Holdings Ltd. |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
As of |
|
(In
thousands) |
December 31, 2019 |
|
December 31, 2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2,085,234 |
|
|
1,563,755 |
|
|
239,656 |
|
Restricted cash |
|
1,813,855 |
|
|
1,112,152 |
|
|
170,445 |
|
Restricted time deposits |
|
1,962,293 |
|
|
1,779,458 |
|
|
272,714 |
|
Short-term financing receivables, net of allowance for credit
losses of RMB318,262 andRMB508,013 as of December 31, 2019 and
December 31, 2020, respectively |
|
3,752,690 |
|
|
4,918,548 |
|
|
753,800 |
|
Loans at fair value |
|
- |
|
|
381,393 |
|
|
58,451 |
|
Accrued interest receivable, net of allowance for credit losses of
nil and RMB1,681 as ofDecember 31, 2019 and December 31,
2020, respectively |
|
54,284 |
|
|
79,793 |
|
|
12,229 |
|
Prepaid expenses and other current assets |
|
1,324,924 |
|
|
1,004,845 |
|
|
153,999 |
|
Amounts due from related parties |
|
- |
|
|
941 |
|
|
144 |
|
Deposits to insurance companies and guarantee companies |
|
1,251,003 |
|
|
1,066,281 |
|
|
163,415 |
|
Short-term guarantee receivables, net of allowance for credit
losses of RMB49,833 andRMBB58,771 as of December 31, 2019 and
December 31, 2020, respectively |
|
1,183,278 |
|
|
756,197 |
|
|
115,892 |
|
Short-term contract assets and service fees receivable, net of
allowance for credit losses ofRMB94,894 and RMB65,607 as of
December 31, 2019 and December 31, 2020,
respectively |
|
2,971,976 |
|
|
3,707,649 |
|
|
568,222 |
|
Inventories, net |
|
106,781 |
|
|
47,170 |
|
|
7,229 |
|
Total current assets |
|
16,506,318 |
|
|
16,418,182 |
|
|
2,516,196 |
|
Non‑current assets |
|
|
|
|
|
|
|
|
|
Restricted cash |
|
86,537 |
|
|
163,999 |
|
|
25,134 |
|
Restricted time deposits |
|
4,350 |
|
|
- |
|
|
- |
|
Long‑term financing receivables, net of allowance for credit losses
of RMB55,283 andRMB21,149 as of December 31, 2019 and
December 31, 2020, respectively |
|
658,798 |
|
|
204,761 |
|
|
31,381 |
|
Long-term guarantee receivables, net of allowance for credit losses
of RMB750 and RMB16,994as of December 31, 2019 and
December 31, 2020, respectively |
|
281,699 |
|
|
218,654 |
|
|
33,510 |
|
Long-term contract assets and service fees receivable, net of
allowance for credit losses ofRMB2,845 and RMB18,970 as of December
31, 2019 and December 31, 2020, respectively |
|
482,875 |
|
|
481,989 |
|
|
73,868 |
|
Property, equipment and software, net |
|
92,553 |
|
|
125,694 |
|
|
19,263 |
|
Land use rights, net |
|
- |
|
|
1,000,467 |
|
|
153,328 |
|
Long‑term investments |
|
511,605 |
|
|
521,802 |
|
|
79,970 |
|
Deferred tax assets |
|
157,138 |
|
|
747,332 |
|
|
114,534 |
|
Other assets |
|
454,421 |
|
|
462,285 |
|
|
70,848 |
|
Total non‑current assets |
|
2,729,976 |
|
|
3,926,983 |
|
|
601,836 |
|
TOTAL ASSETS |
|
19,236,294 |
|
|
20,345,165 |
|
|
3,118,032 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
201,837 |
|
|
42,961 |
|
|
6,584 |
|
Amounts due to related parties |
|
40,804 |
|
|
67,514 |
|
|
10,347 |
|
Short‑term borrowings |
|
1,977,691 |
|
|
1,827,063 |
|
|
280,010 |
|
Short‑term funding debts |
|
3,755,528 |
|
|
4,685,935 |
|
|
718,151 |
|
Accrued interest payable |
|
87,003 |
|
|
36,484 |
|
|
5,591 |
|
Guarantee liabilities(1) |
|
1,726,368 |
|
|
- |
|
|
- |
|
Deferred guarantee income(1) |
|
- |
|
|
694,582 |
|
|
106,449 |
|
Contingent guarantee liabilities(1) |
|
- |
|
|
1,738,787 |
|
|
266,481 |
|
Funds payable to individual investors |
|
618,749 |
|
|
- |
|
|
- |
|
Accrued expenses and other current liabilities |
|
1,394,639 |
|
|
2,926,347 |
|
|
448,482 |
|
Total current liabilities |
|
9,802,619 |
|
|
12,019,673 |
|
|
1,842,095 |
|
Non‑current liabilities |
|
|
|
|
|
|
|
|
|
Long‑term funding debts |
|
450,595 |
|
|
825,814 |
|
|
126,562 |
|
Deferred tax liabilities |
|
309,646 |
|
|
21,046 |
|
|
3,225 |
|
Convertible notes |
|
2,046,051 |
|
|
1,920,227 |
|
|
294,288 |
|
Other long-term liabilities |
|
27,844 |
|
|
27,667 |
|
|
4,240 |
|
Total non‑current liabilities |
|
2,834,136 |
|
|
2,794,754 |
|
|
428,315 |
|
TOTAL LIABILITIES |
|
12,636,755 |
|
|
14,814,427 |
|
|
2,270,410 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
Class A Ordinary Shares |
|
170 |
|
|
176 |
|
|
27 |
|
Class B Ordinary Shares |
|
61 |
|
|
58 |
|
|
9 |
|
Additional paid‑in capital |
|
2,519,886 |
|
|
2,724,006 |
|
|
417,472 |
|
Statutory reserves |
|
352,313 |
|
|
649,234 |
|
|
99,499 |
|
Accumulated other comprehensive (loss)/income |
|
(7,288 |
) |
|
3,308 |
|
|
507 |
|
Retained earnings |
|
3,734,397 |
|
|
2,113,956 |
|
|
323,978 |
|
Non-controlling interests |
|
- |
|
|
40,000 |
|
|
6,130 |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
6,599,539 |
|
|
5,530,738 |
|
|
847,622 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
19,236,294 |
|
|
20,345,165 |
|
|
3,118,032 |
|
(1) |
We
have adopted ASU No. 2016-13, Financial Instruments—Credit Losses
(Topic 326) effective January 1, 2020 using the modified
retrospective method. |
|
|
|
Before the adoption of ASC 326,
the guarantee liabilities subsequent to initial recognition were
measured at the greater of the amount determined based on ASC 460
and the amount determined under ASC 450. An excess liability was
recorded when the aggregate contingent liabilities under ASC 450
exceeded the balance of guarantee liabilities determined under ASC
460. |
|
|
|
After the adoption of ASC 326, a
contingent liability in full amount determined using CECL lifetime
methodology of the guarantee (i.e., the contingent aspect recorded
as “Contingent guarantee liabilities”) shall be accounted for in
addition to and separately from the guarantee liability (i.e., the
noncontingent aspect recorded as “Deferred guarantee income”)
accounted for under ASC 460. |
|
LexinFintech
Holdings Ltd. |
Unaudited
Condensed Consolidated Statements of Operations |
|
|
For the Three Months Ended December 31, |
|
|
For the Year Ended December 31, |
|
(In thousands, except for share and per share
data) |
2019 |
|
2020 |
|
|
2019 |
|
2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online direct sales |
|
1,084,700 |
|
|
427,760 |
|
|
65,557 |
|
|
|
3,623,991 |
|
|
1,900,835 |
|
|
291,316 |
|
Membership services(1) |
|
26,067 |
|
|
37,009 |
|
|
5,672 |
|
|
|
112,558 |
|
|
113,107 |
|
|
17,334 |
|
Other services(1) |
|
32,451 |
|
|
5,482 |
|
|
839 |
|
|
|
92,292 |
|
|
68,890 |
|
|
10,558 |
|
Online direct sales and services income(1) |
|
1,143,218 |
|
|
470,251 |
|
|
72,068 |
|
|
|
3,828,841 |
|
|
2,082,832 |
|
|
319,208 |
|
Loan facilitation and servicing fees-credit oriented(1) |
|
1,529,525 |
|
|
1,034,265 |
|
|
158,508 |
|
|
|
4,811,868 |
|
|
3,786,996 |
|
|
580,383 |
|
Interest and financial services income and other revenues |
|
259,256 |
|
|
472,668 |
|
|
72,440 |
|
|
|
1,146,824 |
|
|
1,418,892 |
|
|
217,455 |
|
Guarantee income(2) |
|
- |
|
|
338,580 |
|
|
51,890 |
|
|
|
- |
|
|
2,319,693 |
|
|
355,509 |
|
Credit-oriented services income(1) |
|
1,788,781 |
|
|
1,845,513 |
|
|
282,838 |
|
|
|
5,958,692 |
|
|
7,525,581 |
|
|
1,153,347 |
|
Loan facilitation and servicing fees-performance based(1) |
|
193,559 |
|
|
679,494 |
|
|
104,137 |
|
|
|
648,516 |
|
|
1,930,835 |
|
|
295,913 |
|
Loan facilitation and servicing fees-volume based(1) |
|
22,503 |
|
|
37,903 |
|
|
5,809 |
|
|
|
167,458 |
|
|
106,007 |
|
|
16,246 |
|
Platform-based services income(1) |
|
216,062 |
|
|
717,397 |
|
|
109,946 |
|
|
|
815,974 |
|
|
2,036,842 |
|
|
312,159 |
|
Total operating revenue |
|
3,148,061 |
|
|
3,033,161 |
|
|
464,852 |
|
|
|
10,603,507 |
|
|
11,645,255 |
|
|
1,784,714 |
|
Operating cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(1,091,666 |
) |
|
(431,804 |
) |
|
(66,177 |
) |
|
|
(3,624,301 |
) |
|
(1,907,508 |
) |
|
(292,338 |
) |
Funding cost |
|
(128,307 |
) |
|
(140,735 |
) |
|
(21,569 |
) |
|
|
(508,829 |
) |
|
(589,837 |
) |
|
(90,396 |
) |
Processing and servicing cost |
|
(210,124 |
) |
|
(381,964 |
) |
|
(58,539 |
) |
|
|
(642,126 |
) |
|
(1,413,212 |
) |
|
(216,584 |
) |
Provision for credit losses of financing receivables |
|
(219,363 |
) |
|
(150,851 |
) |
|
(23,119 |
) |
|
|
(708,684 |
) |
|
(779,235 |
) |
|
(119,423 |
) |
Provision for credit losses of contract assets and receivables |
|
(20,940 |
) |
|
(187,227 |
) |
|
(28,694 |
) |
|
|
(125,471 |
) |
|
(441,805 |
) |
|
(67,710 |
) |
Provision for credit losses of contingent liabilities of
guarantee(2) |
|
- |
|
|
(220,489 |
) |
|
(33,791 |
) |
|
|
- |
|
|
(2,880,590 |
) |
|
(441,470 |
) |
Total operating cost |
|
(1,670,400 |
) |
|
(1,513,070 |
) |
|
(231,889 |
) |
|
|
(5,609,411 |
) |
|
(8,012,187 |
) |
|
(1,227,921 |
) |
Gross profit |
|
1,477,661 |
|
|
1,520,091 |
|
|
232,963 |
|
|
|
4,994,096 |
|
|
3,633,068 |
|
|
556,793 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
(520,009 |
) |
|
(343,272 |
) |
|
(52,609 |
) |
|
|
(1,538,698 |
) |
|
(1,274,402 |
) |
|
(195,311 |
) |
Research and development expenses |
|
(101,342 |
) |
|
(95,124 |
) |
|
(14,578 |
) |
|
|
(415,995 |
) |
|
(474,265 |
) |
|
(72,684 |
) |
General and administrative expenses |
|
(119,723 |
) |
|
(125,464 |
) |
|
(19,228 |
) |
|
|
(412,117 |
) |
|
(451,284 |
) |
|
(69,162 |
) |
Total operating expenses |
|
(741,074 |
) |
|
(563,860 |
) |
|
(86,415 |
) |
|
|
(2,366,810 |
) |
|
(2,199,951 |
) |
|
(337,157 |
) |
Change in fair value of financial guarantee derivatives, net |
|
(257,777 |
) |
|
(325,848 |
) |
|
(49,938 |
) |
|
|
(212,256 |
) |
|
(707,442 |
) |
|
(108,420 |
) |
Change in fair value of loans at fair value |
|
- |
|
|
(35,926 |
) |
|
(5,506 |
) |
|
|
- |
|
|
(47,282 |
) |
|
(7,246 |
) |
Gain on guarantee liabilities, net(2) |
|
115,546 |
|
|
- |
|
|
- |
|
|
|
196,063 |
|
|
- |
|
|
- |
|
Interest expense, net |
|
(29,476 |
) |
|
(18,074 |
) |
|
(2,770 |
) |
|
|
(39,215 |
) |
|
(77,542 |
) |
|
(11,884 |
) |
Investment-related impairment |
|
- |
|
|
(33,786 |
) |
|
(5,178 |
) |
|
|
- |
|
|
(69,156 |
) |
|
(10,599 |
) |
Investment (loss)/income |
|
(1,222 |
) |
|
(1,436 |
) |
|
(220 |
) |
|
|
52,211 |
|
|
7,885 |
|
|
1,208 |
|
Others, net |
|
50,345 |
|
|
62,734 |
|
|
9,614 |
|
|
|
82,422 |
|
|
146,029 |
|
|
22,380 |
|
Income before income
tax expense |
|
614,003 |
|
|
603,895 |
|
|
92,550 |
|
|
|
2,706,511 |
|
|
685,609 |
|
|
105,075 |
|
Income tax expense |
|
(96,081 |
) |
|
(94,219 |
) |
|
(14,440 |
) |
|
|
(411,959 |
) |
|
(90,629 |
) |
|
(13,890 |
) |
Net income |
|
517,922 |
|
|
509,676 |
|
|
78,110 |
|
|
|
2,294,552 |
|
|
594,980 |
|
|
91,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1.45 |
|
|
1.39 |
|
|
0.21 |
|
|
|
6.45 |
|
|
1.63 |
|
|
0.25 |
|
Diluted |
|
1.30 |
|
|
1.27 |
|
|
0.19 |
|
|
|
6.14 |
|
|
1.56 |
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.89 |
|
|
2.79 |
|
|
0.43 |
|
|
|
12.90 |
|
|
3.26 |
|
|
0.50 |
|
Diluted |
|
2.60 |
|
|
2.54 |
|
|
0.39 |
|
|
|
12.29 |
|
|
3.13 |
|
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
358,312,515 |
|
|
365,939,185 |
|
|
365,939,185 |
|
|
|
355,625,970 |
|
|
364,733,164 |
|
|
364,733,164 |
|
Diluted |
|
408,188,044 |
|
|
411,086,216 |
|
|
411,086,216 |
|
|
|
375,831,131 |
|
|
411,229,810 |
|
|
411,229,810 |
|
________________________
(1) |
Starting from the second quarter of 2020, we report revenue streams
in three categories—online direct sales and services income,
credit-oriented services income and platform-based services income,
to provide more relevant information. We also revised the
comparative period presentation to conform to current period
classification. |
In providing credit-oriented services, we originate on-balance
sheet loans, or facilitate the loan origination of off-balance
loans where we also provide guarantee services. Consequently, we
take all credit risks of borrowers in respect of on-balance sheet
loans, and off-balance sheet loans through the relevant guarantee
arrangements. By nature, revenue earned from off-balance sheet
loans where we also provide guarantee services is recorded as “Loan
facilitation and servicing fees-credit oriented” and “Guarantee
income,” and interest income and other fees from on-balance sheet
loans is recorded as “Interest and financial services income and
other revenues.”
In providing platform-based services, we do not provide
guarantee services and take no credit risks of borrowers in respect
of principal and interests due to the lenders for off-balance sheet
loans we facilitate. We either charge the service fees for loan
facilitation and servicing at predetermined rates based on the
performance of the underlying off-balance sheet loans, which we
refer to as performance-based model, or charge the service fees at
predetermined rates of amount of loan originations upon successful
matching of borrowing requests, which we refer to as volume-based
model.
Revenue from “Loan facilitation and servicing fees-credit
oriented,” “Loan facilitation and servicing fees-performance based”
and “Loan facilitation and servicing fees-volume based” were
previously reported as one combined financial statement line item
as “Loan facilitation and servicing fees” before the change of
presentation.
For online direct sales and services income, we report the
premium membership fees for our membership packages as “Membership
services,” and the commission fee earned from third-party sellers
for the online marketplace services we rendered and other services
revenue as “Other services” within “Online direct sales and
services income.” The premium membership fees, commission fee
earned from third-party sellers and other services revenue were
previously reported as “Services and others” within “Online direct
sales and services income” before the change of presentation.
(2) |
We
have adopted ASU No. 2016-13, Financial Instruments—Credit Losses
(Topic 326) effective January 1, 2020 using the modified
retrospective method. |
Before the adoption of ASC 326, gain or loss related to
guarantee liabilities accounted for under ASC 460 was recorded in
one combined financial statement line item within “Gain on
guarantee liabilities, net.”
After the adoption of ASC 326, the gain released from the
guarantee liabilities accounted for under ASC 460 is recorded as a
separate financial statement line item within revenue as “Guarantee
income” and the relevant credit losses of guarantee are recorded as
“Provision for credit losses of contingent liabilities of
guarantee.”
|
LexinFintech Holdings Ltd. |
Unaudited Condensed Consolidated Statements of
Comprehensive Income |
|
|
For the Three Months Ended December 31, |
|
For the Year Ended December 31, |
|
(In thousands) |
2019 |
|
2020 |
|
2019 |
|
2020 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
|
US$ |
|
Net
income |
|
517,922 |
|
|
509,676 |
|
|
78,110 |
|
|
2,294,552 |
|
|
594,980 |
|
|
|
91,185 |
|
Other comprehensive (loss)/ income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil tax |
|
(6,339 |
) |
|
13,884 |
|
|
2,128 |
|
|
7,020 |
|
|
10,596 |
|
|
|
1,624 |
|
Total comprehensive
income |
|
511,583 |
|
|
523,560 |
|
|
80,238 |
|
|
2,301,572 |
|
|
605,576 |
|
|
|
92,809 |
|
|
LexinFintech Holdings Ltd. |
Unaudited Reconciliations of GAAP and Non-GAAP
Results |
|
|
For the Three Months Ended December 31, |
|
|
For the Year Ended December 31, |
|
(In thousands, except for share and per share
data) |
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
RMB |
|
|
RMB |
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Reconciliation of Adjusted Net Income to Net
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
517,922 |
|
|
|
509,676 |
|
|
78,110 |
|
|
|
2,294,552 |
|
|
|
594,980 |
|
|
|
91,185 |
|
Add: Share-based compensation expenses |
|
53,495 |
|
|
|
46,633 |
|
|
7,148 |
|
|
|
177,262 |
|
|
|
198,825 |
|
|
|
30,472 |
|
Interest expense associated with convertible notes |
|
12,393 |
|
|
|
11,535 |
|
|
1,768 |
|
|
|
14,261 |
|
|
|
47,781 |
|
|
|
7,323 |
|
Investment-related impairment |
|
- |
|
|
|
33,786 |
|
|
5,178 |
|
|
|
- |
|
|
|
69,156 |
|
|
|
10,599 |
|
Investment loss/ (income) |
|
1,222 |
|
|
|
1,436 |
|
|
220 |
|
|
|
(52,211 |
) |
|
|
(7,885 |
) |
|
|
(1,208 |
) |
Adjusted net income |
|
585,032 |
|
|
|
603,066 |
|
|
92,424 |
|
|
|
2,433,864 |
|
|
|
902,857 |
|
|
|
138,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1.63 |
|
|
|
1.65 |
|
|
0.25 |
|
|
|
6.84 |
|
|
|
2.48 |
|
|
|
0.38 |
|
Diluted |
|
1.43 |
|
|
|
1.47 |
|
|
0.22 |
|
|
|
6.48 |
|
|
|
2.20 |
|
|
|
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
3.27 |
|
|
|
3.30 |
|
|
0.51 |
|
|
|
13.69 |
|
|
|
4.95 |
|
|
|
0.76 |
|
Diluted |
|
2.87 |
|
|
|
2.93 |
|
|
0.45 |
|
|
|
12.95 |
|
|
|
4.39 |
|
|
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
358,312,515 |
|
|
|
365,939,185 |
|
|
365,939,185 |
|
|
|
355,625,970 |
|
|
|
364,733,164 |
|
|
|
364,733,164 |
|
Diluted |
|
408,188,044 |
|
|
|
411,086,216 |
|
|
411,086,216 |
|
|
|
375,831,131 |
|
|
|
411,229,810 |
|
|
|
411,229,810 |
|
|
LexinFintech Holdings Ltd. |
Unaudited Reconciliations of GAAP and Non-GAAP
Results |
|
|
For the Three Months Ended December 31, |
|
|
For the Year Ended December 31, |
|
(In thousands) |
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Reconciliations of Non-GAAP EBIT to Net
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
517,922 |
|
|
|
509,676 |
|
|
|
78,110 |
|
|
|
2,294,552 |
|
|
|
594,980 |
|
|
|
91,185 |
|
Add: Income tax expense |
|
96,081 |
|
|
|
94,219 |
|
|
|
14,440 |
|
|
|
411,959 |
|
|
|
90,629 |
|
|
|
13,890 |
|
Share-based compensation expenses |
|
53,495 |
|
|
|
46,633 |
|
|
|
7,148 |
|
|
|
177,262 |
|
|
|
198,825 |
|
|
|
30,472 |
|
Interest expense, net |
|
29,476 |
|
|
|
18,074 |
|
|
|
2,770 |
|
|
|
39,215 |
|
|
|
77,542 |
|
|
|
11,884 |
|
Investment-related impairment |
|
- |
|
|
|
33,786 |
|
|
|
5,178 |
|
|
|
- |
|
|
|
69,156 |
|
|
|
10,599 |
|
Investment loss/(income) |
|
1,222 |
|
|
|
1,436 |
|
|
|
220 |
|
|
|
(52,211 |
) |
|
|
(7,885 |
) |
|
|
(1,208 |
) |
Non-GAAP EBIT |
|
698,196 |
|
|
|
703,824 |
|
|
|
107,866 |
|
|
|
2,870,777 |
|
|
|
1,023,247 |
|
|
|
156,822 |
|
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