LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX),
a leading online consumption and finance platform for new
generation consumers and users in China, today announced its
unaudited financial results for the quarter ended March 31, 2021.
“We are happy to announce a quarter where we achieved all-time
highs in our key financial metrics,” said Mr. Jay Wenjie Xiao,
Lexin's chairman and chief executive officer. “This record quarter
was driven by our larger and growing user base, the rapid growth of
our loan originations, and the continued improvement of our asset
quality due to the implementation of our New Consumption Strategy
and the continuous refinement of our risk management efforts. We
are confident in our ability to achieve the loan originations
target of between RMB240 billion and RMB250 billion for 2021 as we
expect the positive trajectory in both loan growth and asset
quality to continue for the rest of the year.”
“We accelerated the push of our New Consumption Strategy in the
first quarter, and have received positive preliminary results. A
total of 78.6 million orders were generated across our various
products in the first quarter of 2021, representing an increase of
53.2% year-on-year,” continued Mr. Xiao. “Maiya, in particular,
helps merchants to improve their operations as a marketing tool,
and we expect this new product to facilitate a GMV of RMB300
million in the second quarter, establishing itself as a new source
of growth for Lexin.”
“In the meantime, we have also further diversified our fintech
business by entering new areas of growth. We have expanded our
financing services for small and micro business owners, which
completed loan originations of RMB2.1 billion in the first quarter.
Fifteen percent of our current users are in need of such small and
micro business financing based on our research and we will step up
efforts to tap the potential of this sector in the future. In
addition, we expanded a ‘joint-operation service’ in May for
regional banks, by which Lexin will provide a suite of
technological services to help regional banks develop their own
product offerings, leveraging our financial technology,
operational, and product capabilities accumulated over the past
seven years. These new initiatives will enable Lexin to unlock
greater growth potential with a more diversified business
model.”
“We are very proud to announce our best quarter ever, and in
particular our highest adjusted net income ever,” said Mr. Craig
Yan Zeng, Lexin’s chief financial officer, “In addition to our
highest loan originations and other all-time highs, all our
operations continue to perform strongly, and we were able to
achieve this quarter’s strong results due to our increasingly
strong and stable credit performance. As highlighted back in
January, the recovery and stabilization of our asset quality has
already occurred, and we expect this trend to continue.”
“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 rates1
is now between 3.5 and 4.0%, and our 90 day+ delinquency rate was
1.84% as of March, 2021. In addition, as you can see from the
graphs disclosed with our latest earnings release, our first
payment default rate (30 day+)2 for new loan originations have been
at well under 1% and continues to decrease. Through continuous
improvements and refinements of our risk management systems and our
portfolio management systems, we have developed more accurate and
differentiated strategies to manage overdue borrowers while
enhancing collection rates3 through high efficiency and intelligent
tools, as well as more refined business management policies,
enabling us to keep our overall collection rates high, improve
efficiency, and reduce expected delinquency rates. As a result, we
expect our credit performance to continue to be stable in the
future.”
1 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 “First Quarter 2021 Financial Results” of this
press release.
2 Loan balance with first payment day
past due 30+ over total loan origination.
3 Collection rate is defined as (i) the
amount of principal that was repaid within 30 days after such
principal became overdue divided by (ii) the total amount of
principal that is overdue, as of a specific date.
First Quarter 2021 Operational Highlights:
User base continues to grow with active user numbers in
the quarter hitting a new record high:
- Total number of registered users
reached 132 million as of March 31, 2021, representing an increase
of 56.5% from 84.2 million as of March 31, 2020; and users with
credit line reached 30.3 million as of March 31, 2021, up by 46.5%
from 20.7 million as of March 31, 2020.
- Number of active users4 who used our
loan products in the first quarter of 2021 reached 8.24 million,
representing an increase of 29.2% from 6.38 million in the first
quarter of 2020.
- Number of new active users who used our
loan products in the first quarter of 2021 was 1.8 million,
representing an increase of 88.0% from 1.0 million in the first
quarter of 2020.
Loan facilitation business sees both loan originations
and outstanding principal balance of loans hitting record
highs:
- Total loan originations5 in the first
quarter of 2021 reached RMB53.8 billion, an increase of 57.8% from
RMB34.1 billion in the first quarter of 2020.
- Total outstanding principal balance of
loans5 reached RMB82.4 billion as of March 31, 2021, representing
an increase of 40.8% from RMB58.5 billion as of March 31,
2020.
- In additional to new generation
consumers, Lexin has started to expand financing services for small
and micro business owners. In the first quarter, loan originations
for small and micro business owners reached RMB2.1 billion.
- Number of orders placed on our platform
in the first quarter of 2021 was 78.6 million, representing an
increase of 53.2% from 51.3 million in the first quarter of
2020.
New Consumption efforts rapidly scaling up at an
accelerating pace, in particular the buy-now pay-later service
Maiya:
- Maiya recorded GMV of RMB60 million in
the first quarter, and is expected to generate GMV of RMB300
million in the second quarter.
- Maiya has served over 200,000 users and
300 merchants, 69% of which were brick-and-mortar vendors, in the
first quarter.
The Company has begun new fintech initiatives in the
quarter:
- In May, the Company launched its “joint
cooperation” service for regional banks. Under the “joint
cooperation” model, Lexin provides a series of technological
services, including tailor-made product development, customer
acquisition, user operation, and risk management support, to help
regional banks develop their own product offerings.
Credit performance and credit quality continue to
improve:
- 90 day+ delinquency ratio6 was 1.84% as
of March 31, 2021.
- First payment default rate (30 day+)2
for new loan originations was below 1% as of March 31, 2021 and
continues to decrease.
- Vintage charge-off rates are between
3.5-4% as of March 31, 2021.
Other operational highlights:
- The weighted average tenor of loans
originated on our platform in the first quarter of 2021 was
approximately 11.7 months. The nominal APR7 was 15.5% for the first
quarter of 2021.
- The GMV8 of our e-commerce channel in
the first quarter of 2021 amounted to RMB1.2 billion, representing
a slightly decrease of 0.5% from the first quarter of 2020.
4 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.
5 Originations of loans and outstanding
principal balance represent the origination and outstanding
principal balance of both on- and off-balance sheet loans.
6 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.
7 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.
8 GMV refers to the total value of
transactions completed for products purchased on the e-commerce
channel, net of returns.
First Quarter 2021 Financial Highlights:
- Total operating revenue reached RMB2.9
billion. Credit-oriented services income reached RMB1.8 billion,
representing an increase of 8.9% from the first quarter of 2020.
Platform-based services income reached RMB636 million, representing
an increase of 122% from the first quarter of 2020.
- Gross profit reached RMB1,369 million,
representing an increase of 720% from the first quarter of
2020.
- Net income was RMB711 million, as
compared to a net loss of RMB678 million in the first quarter of
2020.
- Non-GAAP EBIT9 was RMB911 million.
- Adjusted net income9 attributable to
ordinary shareholders of the Company reached an all-time high of
RMB771 million, as compared to an adjusted net loss attributable to
ordinary shareholders of the Company of RMB596 million in the first
quarter of 2020. Adjusted net income per ADS9 attributable to
ordinary shareholders of the Company was RMB3.72 on a fully diluted
basis.
9 Non-GAAP EBIT, adjusted net (loss)/income
attributable to ordinary shareholders of the Company, adjusted net
(loss)/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.
First Quarter 2021 Financial Results:
Operating revenue increased from RMB2,500 million in the first
quarter of 2020 to RMB2,944 million in the first quarter of 2021.
This increase in operating revenue was due to 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, partially offset by a decrease in
online direct sales and services income.
Online direct sales decreased by 12.9% from RMB490 million in
the first quarter of 2020 to RMB426 million in the first quarter of
2021. This decrease was primarily due to the decrease in the number
of e-commerce orders during the first quarter of 2021.
Credit-oriented services income increased by 8.9% from RMB1,686
million in the first quarter of 2020 to RMB1,837 million in the
first quarter of 2021. The increase was primarily due to the
increase of loan facilitation and servicing fees-credit oriented
and the increase of interest and financial services income and other revenues, partially
offset by the decrease in guarantee income.
Loan facilitation and servicing fees-credit oriented increased
by 39.0% from RMB763 million in the first quarter of 2020 to
RMB1,060 million in the first quarter of 2021. This increase was
primarily due to the increase in off-balance sheet loans originated
under credit-based model as a result of the continuing growth of
our business, with the expansion of partnerships with institutional
funding partners.
Guarantee income decreased by 65.3% from RMB677 million in the
first quarter of 2020 to RMB235 million in the first quarter of
2021. The decrease was primarily due to the decrease of loan
origination of the off-balance sheet loans funded by certain
Institutional Funding Partners, which are accounted for as
guarantee liabilities under ASC 460, Guarantees.
Interest and financial services income and other revenues
increased by 120% from RMB246 million in the first quarter of 2020
to RMB542 million in the first quarter of 2021, which was
consistent with the increase in the origination of on-balance sheet
loans in the first quarter of 2021.
Platform-based services income increased by 122% from RMB287
million in the first quarter of 2020 to RMB636 million in the first
quarter of 2021. 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 107% from RMB277 million in the first quarter of 2020 to RMB573
million in the first quarter of 2021. 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 9.7% from RMB480 million in the first
quarter of 2020 to RMB433 million in the first quarter of 2021,
which is consistent with the decrease of online direct sales
revenue.
Funding cost decreased by 9.3% from RMB143 million in the first
quarter of 2020 to RMB130 million in the first quarter of 2021,
which was consistent with the decrease of the funding debts to fund
the on-balance sheet loans.
Processing and servicing cost increased by 26.8% from RMB313
million in the first quarter of 2020 to RMB397 million in the first
quarter of 2021. This increase was primarily due to an increase in
risk management and collection expenses, and an increase in
salaries and personnel related costs, partially offset by a
decrease in fees to third party insurance companies and guarantee
companies.
Provision for credit losses of financing receivables decreased
by 40.7% from RMB290 million in the first quarter of 2020 to RMB172
million in the first quarter of 2021, partially contributed by the
decrease of negative impact on expected credit losses from COVID-19
in the first quarter of 2021 compared with that in the first
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 145% from RMB89.3 million in the first quarter of 2020
to RMB219 million in the first quarter of 2021. 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.
Provision for credit losses of contingent liabilities of
guarantee decreased by 78.0% from RMB1,017 million in the first
quarter of 2020 to RMB224 million in the first quarter of 2021. The
decrease was primarily due to the decrease of loan origination of
the off-balance sheet loans funded by certain Institutional Funding
Partners, which are accounted for as guarantee liabilities under
ASC 460, Guarantees. In addition, the negative impact on expected
credit losses from COVID-19 has been much improved in the first
quarter of 2021 compared with that in the first quarter of
2020.Gross profit increased by 720% from RMB167 million in the
first quarter of 2020 to RMB1,369 million in the first quarter of
2021. The increase in the gross profit is primarily due to the
significant increase in platform-based services income and
credit-oriented services income, the decrease in provision for
credit losses of financing receivables and provision for credit
losses of contingent liabilities of guarantee, partially offset by
the increase in processing and servicing cost and provision for
credit losses of contract assets and receivables.
Sales and marketing expenses increased by 41.7% from RMB244
million in the first quarter of 2020 to RMB346 million in the first
quarter of 2021. This increase was primarily due to an increase in
online advertising cost, and an increase in salaries and personnel
related costs.
Research and development expenses decreased by 1.6% from RMB126
million in the first quarter of 2020 to RMB124 million in the first
quarter of 2021. This decrease was primarily due to a decrease in
share-based compensation expenses.
General and administrative expenses increased by 19.7% from
RMB110 million in the first quarter of 2020 to RMB131 million in
the first quarter of 2021. This increase was primarily due to an
increase in salaries and personnel related costs.
Change in fair value of financial guarantee derivatives was a
gain of RMB154 million in the first quarter of 2021, as compared to
a loss of RMB439 million in the first quarter of 2020, when it was
significantly impacted by the outbreak of COVID-19 in the first
quarter of 2020.The gain 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
RMB77.8 million in the first quarter of 2021. 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 first quarter of 2021 was RMB131
million, as compared to income tax benefit of RMB125 million in the
first quarter of 2020. The income tax expense/benefit recognized is
consistent with our profit/loss status during the periods.
Net income for the first quarter of 2021 was RMB711 million, as
compared to net loss of RMB678 million in the first quarter of
2020.
Adjusted net income for the first quarter of 2021 was RMB771
million, as compared to adjusted net loss of RMB596 million in the
first quarter of 2020.
Please click here to view our credit quality curves:
Link1 pdf is available
at http://ml.globenewswire.com/Resource/Download/53ea4f13-0594-4aab-8b2a-23d0155d8946
Link2 pdf is available
at http://ml.globenewswire.com/Resource/Download/d139ee9e-0039-481c-9b67-f3db575ba668
Link3 pdf is available
at http://ml.globenewswire.com/Resource/Download/2ac6cdc3-a60a-4464-9ac7-61f1b34a1595
Outlook
Based on Lexin’s preliminary assessment of the current market
conditions, the Company expects total loan originations for fiscal
year 2021 to be between RMB240 billion and RMB250 billion,
maintaining the previously stated guidance. 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 7:00 AM U.S. Eastern time on June 1, 2021 (7:00 PM Beijing/Hong
Kong time on June 1, 2021).
Participants who wish to join the conference call should
register online at:
http://apac.directeventreg.com/registration/event/2682783
Please note the Conference ID number of 2682783.
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 June 8, 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: |
2682783 |
About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. is a leading online consumption and
finance platform for new generation consumers and users in China.
The Company provides a comprehensive range of consumption,
financial and business services including financial technology
services, “buy now pay later” (“BNPL”) services, and membership
benefits through its ecommerce platform Fenqile, BNPL product
Maiya, 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, and other consumption and
financial services.
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
(loss)/income attributable to ordinary shareholders of the Company,
non-GAAP EBIT, adjusted net (loss)/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
(loss)/income attributable to ordinary shareholders of the Company
as net (loss)/income attributable to ordinary shareholders of the
Company excluding share-based compensation expenses, interest
expense associated with convertible notes and investment loss and
we define non-GAAP EBIT as net (loss)/income excluding income tax
(benefit)/expense, share-based compensation expenses, interest
expense, net and investment loss.
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 (loss)/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 loss. Non-GAAP EBIT, on the other
hand, enables our management to assess our operating results
without considering the impact of income tax (benefit)/expense,
share-based compensation expenses, interest expense, net, and
investment 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
(loss)/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 (benefit)/expense, interest expense, net. and investment
loss have been and may continue to be incurred in our business and
are not reflected in the presentation of adjusted net (loss)/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 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 RMB6.5518 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Federal Reserve Board on March 31, 2021. The Company
makes no representation that the RMB or US$ 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 Hung
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: IR@lexin.com
Media inquiries:
Limin Chen
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: liminchen@lexin.com
SOURCE LexinFintech Holdings Ltd.
LexinFintech Holdings
Ltd.Unaudited Condensed Consolidated Balance
Sheets
|
As of |
|
(In
thousands) |
December 31, 2020 |
|
|
March 31, 2021 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
1,563,755 |
|
|
|
2,338,468 |
|
|
|
356,920 |
|
Restricted cash |
|
1,112,152 |
|
|
|
975,504 |
|
|
|
148,891 |
|
Restricted time deposits |
|
1,779,458 |
|
|
|
1,850,241 |
|
|
|
282,402 |
|
Short-term financing receivables, net of allowance for credit
losses of RMB508,013 and RMB584,218 as of December 31, 2020
and March 31, 2021, respectively |
|
4,918,548 |
|
|
|
3,675,786 |
|
|
|
561,035 |
|
Loans at fair value |
|
381,393 |
|
|
|
257,669 |
|
|
|
39,328 |
|
Accrued interest receivable, net of allowance for credit losses of RMB1,681 and RMB1,681 as of December 31, 2020 and March 31, 2021, respectively |
|
79,793 |
|
|
|
63,008 |
|
|
|
9,617 |
|
Prepaid expenses and other current assets |
|
1,004,845 |
|
|
|
937,733 |
|
|
|
143,126 |
|
Amounts due from related parties |
|
941 |
|
|
|
6,919 |
|
|
|
1,056 |
|
Deposits to insurance companies and guarantee companies |
|
1,066,281 |
|
|
|
1,174,762 |
|
|
|
179,304 |
|
Short-term guarantee receivables, net of allowance for credit
losses of RMB58,771 and RMB64,694 as of December 31, 2020 and
March 31, 2021, respectively |
|
756,197 |
|
|
|
648,588 |
|
|
|
98,994 |
|
Short-term contract assets and service fees receivable, net of
allowance for credit losses of RMB65,607 and RMB154,514 as of
December 31, 2020 and March 31, 2021, respectively |
|
3,707,649 |
|
|
|
3,751,139 |
|
|
|
572,536 |
|
Inventories, net |
|
47,170 |
|
|
|
67,585 |
|
|
|
10,315 |
|
Total current assets |
|
16,418,182 |
|
|
|
15,747,402 |
|
|
|
2,403,524 |
|
Non‑current assets |
|
|
|
|
|
|
|
|
|
|
|
Restricted cash |
|
163,999 |
|
|
|
159,577 |
|
|
|
24,356 |
|
Long‑term financing receivables, net of allowance for credit losses
of RMB21,149 and RMB20,068 as of December 31, 2020 and
March 31, 2021 respectively |
|
204,761 |
|
|
|
131,267 |
|
|
|
20,035 |
|
Long-term guarantee receivables, net of allowance for credit losses
of RMB16,994 and RMB17,495 as of December 31, 2020 and
March 31, 2021, respectively |
|
218,654 |
|
|
|
175,393 |
|
|
|
26,770 |
|
Long-term contract assets and service fees receivable, net of
allowance for credit losses of RMB18,970 and RMB41,784 as of
December 31, 2020 and March 31, 2021, respectively |
|
481,989 |
|
|
|
521,623 |
|
|
|
79,615 |
|
Property, equipment and software, net |
|
125,694 |
|
|
|
123,908 |
|
|
|
18,912 |
|
Land use rights, net |
|
1,000,467 |
|
|
|
991,867 |
|
|
|
151,388 |
|
Long‑term investments |
|
521,802 |
|
|
|
525,571 |
|
|
|
80,218 |
|
Deferred tax assets |
|
747,332 |
|
|
|
780,739 |
|
|
|
119,164 |
|
Other assets |
|
462,285 |
|
|
|
472,463 |
|
|
|
72,112 |
|
Total non‑current assets |
|
3,926,983 |
|
|
|
3,882,408 |
|
|
|
592,570 |
|
TOTAL ASSETS |
|
20,345,165 |
|
|
|
19,629,810 |
|
|
|
2,996,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
42,961 |
|
|
|
42,280 |
|
|
|
6,453 |
|
Amounts due to related parties |
|
67,514 |
|
|
|
58,904 |
|
|
|
8,991 |
|
Short‑term borrowings |
|
1,827,063 |
|
|
|
2,066,075 |
|
|
|
315,345 |
|
Short‑term funding debts |
|
4,685,935 |
|
|
|
4,288,883 |
|
|
|
654,611 |
|
Accrued interest payable |
|
36,484 |
|
|
|
28,692 |
|
|
|
4,379 |
|
Deferred guarantee income |
|
694,582 |
|
|
|
496,864 |
|
|
|
75,836 |
|
Contingent guarantee liabilities |
|
1,738,787 |
|
|
|
1,524,970 |
|
|
|
232,756 |
|
Accrued expenses and other current liabilities |
|
2,926,347 |
|
|
|
2,631,827 |
|
|
|
401,695 |
|
Total current liabilities |
|
12,019,673 |
|
|
|
11,138,495 |
|
|
|
1,700,066 |
|
Non‑current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Long‑term funding debts |
|
825,814 |
|
|
|
212,006 |
|
|
|
32,358 |
|
Deferred tax liabilities |
|
21,046 |
|
|
|
27,915 |
|
|
|
4,261 |
|
Convertible notes |
|
1,920,227 |
|
|
|
1,935,501 |
|
|
|
295,415 |
|
Other long-term liabilities |
|
27,667 |
|
|
|
23,875 |
|
|
|
3,644 |
|
Total non‑current liabilities |
|
2,794,754 |
|
|
|
2,199,297 |
|
|
|
335,678 |
|
TOTAL LIABILITIES |
|
14,814,427 |
|
|
|
13,337,792 |
|
|
|
2,035,744 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
Class A Ordinary Shares |
|
176 |
|
|
|
177 |
|
|
|
27 |
|
Class B Ordinary Shares |
|
58 |
|
|
|
58 |
|
|
|
9 |
|
Additional paid‑in capital |
|
2,724,006 |
|
|
|
2,776,275 |
|
|
|
423,742 |
|
Statutory reserves |
|
649,234 |
|
|
|
649,234 |
|
|
|
99,092 |
|
Accumulated other comprehensive income |
|
3,308 |
|
|
|
1,237 |
|
|
|
189 |
|
Retained earnings |
|
2,113,956 |
|
|
|
2,825,495 |
|
|
|
431,255 |
|
Non-controlling interests |
|
40,000 |
|
|
|
39,542 |
|
|
|
6,036 |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
5,530,738 |
|
|
|
6,292,018 |
|
|
|
960,350 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
20,345,165 |
|
|
|
19,629,810 |
|
|
|
2,996,094 |
|
LexinFintech Holdings
Ltd.Unaudited Condensed Consolidated Statements of
Operations
|
For the Three Months Ended March 31, |
|
(In thousands, except
for share and per share data) |
2020 |
|
|
2021 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
Online direct sales |
|
489,524 |
|
|
|
426,327 |
|
|
|
65,070 |
|
Membership services(1) |
|
24,291 |
|
|
|
22,723 |
|
|
|
3,468 |
|
Other services(1) |
|
13,206 |
|
|
|
21,590 |
|
|
|
3,294 |
|
Online direct sales
and services income(1) |
|
527,021 |
|
|
|
470,640 |
|
|
|
71,832 |
|
Loan facilitation and servicing fees-credit oriented(1) |
|
762,968 |
|
|
|
1,060,420 |
|
|
|
161,852 |
|
Interest and financial services income and other revenues |
|
245,929 |
|
|
|
541,637 |
|
|
|
82,670 |
|
Guarantee income |
|
677,300 |
|
|
|
235,049 |
|
|
|
35,875 |
|
Credit-oriented
services income(1) |
|
1,686,197 |
|
|
|
1,837,106 |
|
|
|
280,397 |
|
Loan facilitation and servicing fees-performance based(1) |
|
277,388 |
|
|
|
572,949 |
|
|
|
87,449 |
|
Loan facilitation and servicing fees-volume based(1) |
|
9,428 |
|
|
|
62,988 |
|
|
|
9,614 |
|
Platform-based
services income(1) |
|
286,816 |
|
|
|
635,937 |
|
|
|
97,063 |
|
Total operating
revenue |
|
2,500,034 |
|
|
|
2,943,683 |
|
|
|
449,292 |
|
Operating
cost: |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(480,167 |
) |
|
|
(433,469 |
) |
|
|
(66,160 |
) |
Funding cost |
|
(143,081 |
) |
|
|
(129,760 |
) |
|
|
(19,805 |
) |
Processing and servicing cost |
|
(312,970 |
) |
|
|
(396,716 |
) |
|
|
(60,551 |
) |
Provision for credit losses of financing receivables |
|
(290,249 |
) |
|
|
(171,998 |
) |
|
|
(26,252 |
) |
Provision for credit losses of contract assets and receivables |
|
(89,340 |
) |
|
|
(218,937 |
) |
|
|
(33,416 |
) |
Provision for credit losses of contingent liabilities of
guarantee |
|
(1,017,243 |
) |
|
|
(223,785 |
) |
|
|
(34,156 |
) |
Total operating
cost |
|
(2,333,050 |
) |
|
|
(1,574,665 |
) |
|
|
(240,340 |
) |
Gross
profit |
|
166,984 |
|
|
|
1,369,018 |
|
|
|
208,952 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
(243,872 |
) |
|
|
(345,504 |
) |
|
|
(52,734 |
) |
Research and development expenses |
|
(126,211 |
) |
|
|
(124,207 |
) |
|
|
(18,958 |
) |
General and administrative expenses |
|
(109,526 |
) |
|
|
(131,101 |
) |
|
|
(20,010 |
) |
Total operating
expenses |
|
(479,609 |
) |
|
|
(600,812 |
) |
|
|
(91,702 |
) |
Change in fair value of financial guarantee derivatives, net |
|
(438,984 |
) |
|
|
153,572 |
|
|
|
23,440 |
|
Change in fair value of loans at fair value |
|
- |
|
|
|
(77,811 |
) |
|
|
(11,876 |
) |
Interest expense, net |
|
(12,305 |
) |
|
|
(19,689 |
) |
|
|
(3,005 |
) |
Investment loss |
|
(16,266 |
) |
|
|
(189 |
) |
|
|
(29 |
) |
Others, net |
|
(23,194 |
) |
|
|
18,249 |
|
|
|
2,785 |
|
(Loss)/Income before
income tax expense |
|
(803,374 |
) |
|
|
842,338 |
|
|
|
128,565 |
|
Income tax benefit/(expense) |
|
124,947 |
|
|
|
(131,257 |
) |
|
|
(20,034 |
) |
Net
(loss)/income |
|
(678,427 |
) |
|
|
711,081 |
|
|
|
108,531 |
|
Less: Net (loss) attributable to non-controlling interests |
|
- |
|
|
|
(458 |
) |
|
|
(70 |
) |
Net (loss)/income
attributable to ordinary shareholders of the Company |
|
(678,427 |
) |
|
|
711,539 |
|
|
|
108,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income per
ordinary share attributable to ordinary shareholders of the
Company |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
(1.87 |
) |
|
|
1.94 |
|
|
|
0.30 |
|
Diluted |
|
(1.87 |
) |
|
|
1.74 |
|
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income per
ADS attributable to ordinary shareholders of the
Company |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
(3.73 |
) |
|
|
3.87 |
|
|
|
0.59 |
|
Diluted |
|
(3.73 |
) |
|
|
3.49 |
|
|
|
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
363,502,158 |
|
|
|
367,370,488 |
|
|
|
367,370,488 |
|
Diluted |
|
363,502,158 |
|
|
|
414,600,356 |
|
|
|
414,600,356 |
|
_______________(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
primarily 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.
LexinFintech Holdings
Ltd.Unaudited Condensed Consolidated Statements of
Comprehensive (loss)/Income
|
For the Three Months Ended March 31, |
|
(In
thousands) |
2020 |
|
|
2021 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net (loss)/income |
|
(678,427 |
) |
|
|
711,081 |
|
|
|
108,531 |
|
Other comprehensive
income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil tax |
|
1,307 |
|
|
|
(2,071 |
) |
|
|
(318 |
) |
Total comprehensive
(loss)/income |
|
(677,120 |
) |
|
|
709,010 |
|
|
|
108,213 |
|
Less: Net (loss) attributable to non-controlling interests |
|
- |
|
|
|
(458 |
) |
|
|
(70 |
) |
Total comprehensive
(loss)/income attributable to ordinary shareholders of the
Company |
|
(677,120 |
) |
|
|
709,468 |
|
|
|
108,283 |
|
LexinFintech Holdings
Ltd.Unaudited Reconciliations of GAAP and Non-GAAP
Results
|
|
For the Three Months Ended March 31, |
|
(In thousands, except
for share and per share data) |
|
2020 |
|
|
2021 |
|
|
|
RMB |
|
|
RMB |
|
US$ |
|
Reconciliation of Adjusted Net (loss)/income attributable
to ordinary shareholders of the Company to Net (loss)/income
attributable to ordinary shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income attributable to ordinary shareholders of the
Company |
|
|
(678,427 |
) |
|
|
711,539 |
|
|
108,601 |
|
Add: Share-based compensation expenses |
|
|
54,734 |
|
|
|
48,513 |
|
|
7,404 |
|
Interest expense associated with convertible notes |
|
|
11,913 |
|
|
|
11,134 |
|
|
1,699 |
|
Investment loss |
|
|
16,266 |
|
|
|
189 |
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)/income attributable to ordinary
shareholders of the Company |
|
|
(595,514 |
) |
|
|
771,375 |
|
|
117,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)/income per ordinary share attributable
to ordinary shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(1.64 |
) |
|
|
2.10 |
|
|
0.32 |
|
Diluted |
|
|
(1.64 |
) |
|
|
1.86 |
|
|
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)/income per ADS attributable to ordinary
shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(3.28 |
) |
|
|
4.20 |
|
|
0.64 |
|
Diluted |
|
|
(3.28 |
) |
|
|
3.72 |
|
|
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
363,502,158 |
|
|
|
367,370,488 |
|
|
367,370,488 |
|
Diluted |
|
|
363,502,158 |
|
|
|
414,600,356 |
|
|
414,600,356 |
|
LexinFintech Holdings
Ltd.Unaudited Reconciliations of GAAP and Non-GAAP
Results
|
For the Three Months Ended March 31, |
|
(In
thousands) |
2020 |
|
|
2021 |
|
RMB |
|
|
RMB |
|
|
US$ |
|
Reconciliations of Non-GAAP EBIT to Net
(loss)/income |
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income |
|
(678,427 |
) |
|
|
711,081 |
|
|
|
108,531 |
|
Add: Income tax (benefit)/expense |
|
(124,947 |
) |
|
|
131,257 |
|
|
|
20,034 |
|
Share-based compensation expenses |
|
54,734 |
|
|
|
48,513 |
|
|
|
7,404 |
|
Interest expense, net |
|
12,305 |
|
|
|
19,689 |
|
|
|
3,005 |
|
Investment loss |
|
16,266 |
|
|
|
189 |
|
|
|
29 |
|
Non-GAAP EBIT |
|
(720,069 |
) |
|
|
910,729 |
|
|
|
139,003 |
|
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