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 June 30, 2021.
“We are pleased to announce a quarter where key financial
metrics1 scaled new highs. Number of active users rose 24% year
over year to 8.4 million, driving up loan origination by 47.6% to
RMB60.6 billion. Total loan outstanding also achieved an all-time
record, rising 46.2% year over year to RMB90.5 billion,” said Mr.
Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “But
it’s no time to stay content and complacent. Recent regulatory
changes have sought to reshape the operating environment of
financial institutions and their technology partners. We have
decided therefore to lower full year guidance on total loan
originations to RMB230 billion from RMB240-250 billion.”
“We will slow down our pace, and step up the focus on asset
quality and profitability of our business model. We have been
making adjustments to our business, to ensure compliance as well as
to further strengthen customer acquisition, funding structure,
operations and risk management. Any impact will be transitory and
manageable,” continued Mr. Xiao. “At the same time, we will also
continue to build up Lexin’s capability in serving China's new
generation consumers and tapping into new growth
opportunities.”
“Our credit quality has remained stable for new loan
originations,” said Mr. Jayden Yang Qiao, Lexin’s chief risk
officer. “Our vintage charge-off rates2 for the loans originated
during the latest 12 months were estimated to be around 3.5% and 90
day+ delinquency ratio3 was 1.85% as of June 2021. In addition, as
you can see from the graphs disclosed with our latest earnings
release, our first payment default rate (30 day+)4 for new loan
originations have stayed well under 1%.”
“We are proud of our performance in the second quarter,” said
Kris Qian Qiao, Lexin’s acting chief financial officer. “Total
operating revenue rose 10.5% to RMB3.3 billion, setting a record
level. Net income reached an all-time high as well, increasing by
87.7% to RMB787 million. The results reflect our prudent risk
management and cost management. Refining risk strategy and
improving operational efficiency remain our top goals. They will
steer Lexin through any market uncertainties.”
1 Our key financial metrics refer to loan
originations, total outstanding principal balance, revenue,
non-GAAP EBIT, net income, adjusted net income and adjusted
earnings per ADS.
2 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 “Second Quarter 2021 Financial Results” of this press
release.
3 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.
4 Loan balance with first payment day past due 30+
over total loan origination.
Second 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 144 million as of June 30, 2021, representing an increase
of 50.9% from 95.3 million as of June 30, 2020; and users with
credit line reached 32.9 million as of June 30, 2021, up by 45.2%
from 22.7 million as of June 30, 2020.
- Number of active users5 who used our
loan products in the second quarter of 2021 reached 8.4 million,
representing an increase of 24.0% from 6.8 million in the second
quarter of 2020.
- Number of new active users who used our
loan products in the second quarter of 2021 was 1.7 million,
representing an increase of 22.7% from 1.4 million in the second
quarter of 2020.
Loan facilitation business sees both loan originations
and outstanding principal balance of loans hitting record
highs.
- Total loan originations6 in the second
quarter of 2021 reached RMB60.6 billion, representing an increase
of 47.6% from RMB41.1 billion in the second quarter of 2020.
- Total outstanding principal balance of
loans6 reached RMB90.5 billion as of June 30, 2021, representing an
increase of 46.2% from RMB61.9 billion as of June 30, 2020.
- In additional to new generation
consumers, Lexin has started to expand financing services for small
and micro business owners. In the second quarter, loan originations
for small and micro business owners reached RMB4.0 billion.
- Number of orders placed on our platform
in the second quarter of 2021 was 81.2 million, representing an
increase of 8.9% from 74.6 million in the second 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 RMB349 million in
the second quarter.
- Maiya has served over 618,000 users and
1,084 merchants, 84.8% of which were brick-and-mortar vendors, in
the second quarter.
Credit performance and credit quality remain
stable.
- 90 day+ delinquency ratio was 1.85% as
of June 30, 2021.
- First payment default rate (30 day+)
for new loan originations was below 1% as of June 30, 2021.
- Vintage charge-off rates for the loans
originated during the latest 12 months were estimated to be around
3.5% as of June 30, 2021.
Other operational highlights.
- The weighted average tenor of loans
originated on our platform in the second quarter of 2021 was
approximately 11.6 months. The nominal APR7 was 15.5% for the loans
originated during the second quarter of 2021.
- The GMV8 of our e-commerce channel in
the second quarter of 2021 amounted to RMB1.5 billion, representing
an increase of 8.2% from RMB1.4 billion in the second quarter of
2020.
5 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.
6 Originations of loans and outstanding principal
balance represent the origination and outstanding principal balance
of both on- and off-balance sheet 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.
Second Quarter 2021 Financial Highlights
- Total operating revenue reached RMB3.3
billion. Credit-oriented services income reached RMB2.2 billion,
representing an increase of 12.1% from the second quarter of 2020.
Platform-based services income reached RMB620 million, representing
an increase of 47.9% from the second quarter of 2020.
- Gross profit reached RMB1,661 million,
representing an increase of 71.7% from the second quarter of
2020.
- Net income was RMB787 million,
representing an increase of 87.7% from the second quarter of
2020.
- Non-GAAP EBIT9 was RMB1,001 million,
representing an increase of 85.0% from the second quarter of
2020.
- Adjusted net income9 attributable to
ordinary shareholders of the Company reached an all-time high of
RMB851 million, representing an increase of 87.9% from the second
quarter of 2020. Adjusted net income per ADS9 attributable to
ordinary shareholders of the Company was RMB4.08 on a fully diluted
basis.
9 Non-GAAP EBIT, adjusted net income /(loss)
attributable to ordinary shareholders of the Company, adjusted net
income /(loss) per ordinary share and per ADS attributable to
ordinary shareholders of the Company are non-GAAP financial
measures. For more information on non-GAAP financial measures,
please see the section of “Use of Non-GAAP Financial Measures
Statement” and the tables captioned “Unaudited Reconciliations of
GAAP and Non-GAAP Results” set forth at the end of this press
release.
Second Quarter 2021 Financial Results
Operating revenue increased from RMB2,958 million in the second
quarter of 2020 to RMB3,269 million in the second quarter of 2021.
This increase in operating revenue was due to the increases 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 21.6% from RMB522 million in
the second quarter of 2020 to RMB409 million in the second quarter
of 2021. This decrease was primarily due to the decrease in the
number of e-commerce orders during the second quarter of 2021.
Credit-oriented services income increased by 12.1% from RMB1,969
million in the second quarter of 2020 to RMB2,208 million in the
second 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 71.2% from RMB931 million in the second quarter of 2020 to
RMB1,595 million in the second quarter of 2021. This increase was
primarily due to the increase in off-balance sheet loans originated
under credit-oriented model as a result of the continuing growth of
our business, with the expansion of partnerships with institutional
funding partners.
Guarantee income decreased by 71.2% from RMB706 million in the
second quarter of 2020 to RMB204 million in the second quarter of
2021. The decrease was primarily due to the decrease of loan
origination and outstanding balances 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 23.5% from RMB332 million in the second quarter of
2020 to RMB410 million in the second quarter of 2021, which was
consistent with the increase in the origination of on-balance sheet
loans in the second quarter of 2021.
Platform-based services income increased by 47.9% from RMB419
million in the second quarter of 2020 to RMB620 million in the
second 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 38.0% from RMB394 million in the second quarter of 2020 to
RMB543 million in the second 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 17.8% from RMB520 million in the
second quarter of 2020 to RMB427 million in the second quarter of
2021, which is consistent with the decrease of online direct sales
revenue.
Funding cost decreased by 24.3% from RMB163 million in the
second quarter of 2020 to RMB124 million in the second quarter of
2021, which was consistent with the decrease of the funding debts
to fund the on-balance sheet loans. The decrease in funding debts
was mainly due to the shortened weighted average tenor for
on-balance sheet loans.
Processing and servicing cost increased by 31.8% from RMB356
million in the second quarter of 2020 to RMB470 million in the
second quarter of 2021. This increase was primarily due to an
increase in risk management and collection expenses, an increase in
credit assessment cost, and an increase in fees to third-party
payment platforms, partially offset by a decrease in fees to third
party insurance companies and guarantee companies.
Provision for credit losses of financing receivables decreased
by 7.7% from RMB121 million in the second quarter of 2020 to RMB112
million in the second quarter of 2021. 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 130% from RMB60.8 million in the second quarter of
2020 to RMB140 million in the second 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 56.4% from RMB769 million in the second
quarter of 2020 to RMB335 million in the second 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.
Gross profit increased by 71.7% from RMB968 million in the
second quarter of 2020 to RMB1,661 million in the second 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 funding cost 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 51.1% from RMB327
million in the second quarter of 2020 to RMB495 million in the
second 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 3.1% from RMB135
million in the second quarter of 2020 to RMB130 million in the
second quarter of 2021. This decrease was primarily due to a
decrease in salaries and personnel related costs.
General and administrative expenses increased by 6.2% from
RMB114 million in the second quarter of 2020 to RMB121 million in
the second quarter of 2021. This increase was primarily due to an
increase in professional service fees.
Change in fair value of financial guarantee derivatives was a
loss of RMB19.1 million in the second quarter of 2021, as compared
to a gain of RMB79.2 million in the second quarter of 2020. The
loss was primarily due to the re-measurement of the expected loss
rates and changes in the balances of the underlying outstanding
off-balance sheet loans at the balance sheet date.
Change in fair value of loans at fair value was a gain of
RMB17.8 million in the second 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 increased by 97% from RMB76.6 million in the
second quarter of 2020 to RMB151 million in the second quarter of
2021. The increase was consistent with the increase of the taxable
income from the same period of 2020.
Net income increased by 87.7% from RMB419 million in the second
quarter of 2020 to RMB787 million in the second quarter of
2021.
Adjusted net income attributable to ordinary shareholders of the
Company increased by 87.9% from RMB453 million in the second
quarter of 2020 to RMB851 million in the second quarter of
2021.
Please click here to view our credit quality curves:
Link1 pdf is available
at: http://ml.globenewswire.com/Resource/Download/0779696d-7d8d-4045-9b41-6b961fea13af
Link2 pdf is available
at: http://ml.globenewswire.com/Resource/Download/1e317694-c926-4bd2-a01e-cbf05c173dd6
Link3 pdf is available
at: http://ml.globenewswire.com/Resource/Download/ed6259c4-6566-4cdc-8ae3-79db5be7b256
Regulatory Update
On August 20, 2021, the Standing Committee of the National
People's Congress of China promulgated the Personal Information
Protection Law of the People’s Republic of China, or the Personal
Information Protection Law, which will take effect on November 1,
2021. The Personal Information Protection Law imposes additional
compliance requirements on top of the existing laws and regulations
on personal information protection with more significant legal
responsibilities. As the Personal Information Protection Law was
recently promulgated and has not yet taken effect, we cannot assure
you that the personal information protection measures taken by us
will be considered sufficient under the law due to factors
including the uncertainties of the interpretation and
implementation of the Personal Information Protection Law. To the
extent our personal information protection measures may be
considered insufficient, we may be required to make further
adjustments to our business practices to ensure full compliance
with the law, which may increase our compliance costs, subject us
to heightened risks and challenges, and adversely affect our
business, financial condition, and results of operations.
Outlook
Based on Lexin’s preliminary assessment of the current market
conditions, the Company expects total loan originations for fiscal
year 2021 to be around RMB230 billion, revised down from between
RMB240 billion and RMB250 billion. 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 August 25, 2021 (7:00 PM
Beijing/Hong Kong time on August 25, 2021).
Participants who wish to join the conference call should
register online at:
http://apac.directeventreg.com/registration/event/6393426
Please note the Conference ID number of 6393426.
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 September 1,
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: |
6393426 |
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
income/(loss) attributable to ordinary shareholders of the Company,
non-GAAP EBIT, adjusted net income/(loss) per ordinary share and
per ADS attributable to ordinary shareholders of the Company, four
non-GAAP measures, as supplemental measures to review and assess
our operating performance. The presentation of the non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with U.S. GAAP. We define adjusted net
income/(loss) attributable to ordinary shareholders of the Company
as net income/(loss) attributable to ordinary shareholders of the
Company excluding share-based compensation expenses, interest
expense associated with convertible notes and investment
income/(loss) and we define non-GAAP EBIT as net income/(loss)
excluding income tax expense/(benefit), share-based compensation
expenses, interest expense, net and investment income/(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 income/(loss) attributable
to ordinary shareholders of the Company enables our management to
assess our operating results without considering the impact of
share-based compensation expenses, interest expense associated with
convertible notes, and investment income/(loss). Non-GAAP EBIT, on
the other hand, enables our management to assess our operating
results without considering the impact of income tax
expense/(benefit), share-based compensation expenses, interest
expense, net and investment income/(loss). We also believe that the
use of these non-GAAP financial measures facilitates investors’
assessment of our operating performance. These non-GAAP financial
measures are not defined under U.S. GAAP and are not presented in
accordance with U.S. GAAP.
These non-GAAP financial measures have limitations as an
analytical tool. One of the key limitations of using adjusted net
income/(loss) attributable to ordinary shareholders of the Company
and non-GAAP EBIT is that they do not reflect all items of income
and expense that affect our operations. Share-based compensation
expenses, interest expense associated with convertible notes,
income tax expense/(benefit), interest expense, net and investment
income/(loss) have been and may continue to be incurred in our
business and are not reflected in the presentation of adjusted net
income/(loss) 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 RMB6.4566 to
US$1.00, the exchange rate set forth in the H.10 statistical
release of the Federal Reserve Board on June 30, 2021. The Company
makes no representation that the RMB or US$ 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:Patricia ChengTel: +86 (755) 3637-8888 ext.
8135E-mail: patriciacheng@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, 2020 |
|
June 30, 2021 |
|
|
|
|
RMB |
|
RMB |
|
US$ |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
1,563,755 |
|
|
2,383,754 |
|
|
369,196 |
|
Restricted cash |
|
|
1,112,152 |
|
|
991,752 |
|
|
153,603 |
|
Restricted time deposits |
|
|
1,779,458 |
|
|
1,688,553 |
|
|
261,524 |
|
Short-term financing receivables, net of allowance for credit
losses of RMB508,013 and RMB587,650 as of December 31, 2020
and June 30, 2021, respectively |
|
|
4,918,548 |
|
|
3,481,588 |
|
|
539,229 |
|
Loans at fair value |
|
|
381,393 |
|
|
192,389 |
|
|
29,797 |
|
Accrued interest receivable, net of allowance for credit losses of RMB1,681 and RMB1,280 as of December 31, 2020 and June 30, 2021, respectively |
|
|
79,793 |
|
|
57,289 |
|
|
8,873 |
|
Prepaid expenses and other current assets |
|
|
1,004,845 |
|
|
943,708 |
|
|
146,162 |
|
Amounts due from related parties |
|
|
941 |
|
|
6,243 |
|
|
967 |
|
Deposits to insurance companies and guarantee companies |
|
|
1,066,281 |
|
|
1,431,751 |
|
|
221,750 |
|
Short-term guarantee receivables, net of allowance for credit
losses of RMB58,771 and RMB56,707 as of December 31, 2020 and
June 30, 2021, respectively |
|
|
756,197 |
|
|
531,177 |
|
|
82,269 |
|
Short-term contract assets and service fees receivable, net of
allowance for credit losses of RMB65,607 and RMB208,037 as of
December 31, 2020 and June 30, 2021, respectively |
|
|
3,707,649 |
|
|
4,264,576 |
|
|
660,499 |
|
Inventories, net |
|
|
47,170 |
|
|
46,565 |
|
|
7,212 |
|
Total current assets |
|
|
16,418,182 |
|
|
16,019,345 |
|
|
2,481,081 |
|
Non‑current assets |
|
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
163,999 |
|
|
163,570 |
|
|
25,334 |
|
Long‑term financing receivables, net of allowance for credit losses
of RMB21,149 and RMB22,406 as of December 31, 2020 and
June 30, 2021 respectively |
|
|
204,761 |
|
|
134,596 |
|
|
20,846 |
|
Long-term guarantee receivables, net of allowance for credit losses
of RMB16,994 and RMB15,001 as of December 31, 2020 and June
30, 2021, respectively |
|
|
218,654 |
|
|
142,529 |
|
|
22,075 |
|
Long-term contract assets and service fees receivable, net of
allowance for credit losses of RMB18,970 and RMB55,032 as of
December 31, 2020 and June 30, 2021, respectively |
|
|
481,989 |
|
|
542,186 |
|
|
83,974 |
|
Property, equipment and software, net |
|
|
125,694 |
|
|
132,099 |
|
|
20,460 |
|
Land use rights, net |
|
|
1,000,467 |
|
|
983,267 |
|
|
152,289 |
|
Long‑term investments |
|
|
521,802 |
|
|
472,919 |
|
|
73,246 |
|
Deferred tax assets |
|
|
747,332 |
|
|
804,785 |
|
|
124,645 |
|
Other assets |
|
|
462,285 |
|
|
729,601 |
|
|
113,001 |
|
Total non‑current assets |
|
|
3,926,983 |
|
|
4,105,552 |
|
|
635,870 |
|
TOTAL ASSETS |
|
|
20,345,165 |
|
|
20,124,897 |
|
|
3,116,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
42,961 |
|
|
37,536 |
|
|
5,814 |
|
Amounts due to related parties |
|
|
67,514 |
|
|
55,785 |
|
|
8,640 |
|
Short‑term borrowings |
|
|
1,827,063 |
|
|
1,884,459 |
|
|
291,866 |
|
Short‑term funding debts |
|
|
4,685,935 |
|
|
3,432,747 |
|
|
531,665 |
|
Accrued interest payable |
|
|
36,484 |
|
|
44,437 |
|
|
6,882 |
|
Deferred guarantee income |
|
|
694,582 |
|
|
413,734 |
|
|
64,079 |
|
Contingent guarantee liabilities |
|
|
1,738,787 |
|
|
1,416,870 |
|
|
219,445 |
|
Accrued expenses and other current liabilities |
|
|
2,926,347 |
|
|
3,128,980 |
|
|
484,617 |
|
Total current liabilities |
|
|
12,019,673 |
|
|
10,414,548 |
|
|
1,613,008 |
|
Non‑current liabilities |
|
|
|
|
|
|
|
|
|
|
Long‑term funding debts |
|
|
825,814 |
|
|
617,913 |
|
|
95,703 |
|
Deferred tax liabilities |
|
|
21,046 |
|
|
36,518 |
|
|
5,656 |
|
Convertible notes |
|
|
1,920,227 |
|
|
1,904,358 |
|
|
294,947 |
|
Other long-term liabilities |
|
|
27,667 |
|
|
21,016 |
|
|
3,255 |
|
Total non‑current liabilities |
|
|
2,794,754 |
|
|
2,579,805 |
|
|
399,561 |
|
TOTAL LIABILITIES |
|
|
14,814,427 |
|
|
12,994,353 |
|
|
2,012,569 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
Class A Ordinary Shares |
|
|
176 |
|
|
179 |
|
|
28 |
|
Class B Ordinary Shares |
|
|
58 |
|
|
57 |
|
|
9 |
|
Additional paid‑in capital |
|
|
2,724,006 |
|
|
2,822,834 |
|
|
437,201 |
|
Statutory reserves |
|
|
649,234 |
|
|
649,234 |
|
|
100,554 |
|
Accumulated other comprehensive income |
|
|
3,308 |
|
|
6,541 |
|
|
1,013 |
|
Retained earnings |
|
|
2,113,956 |
|
|
3,611,194 |
|
|
559,303 |
|
Non-controlling interests |
|
|
40,000 |
|
|
40,505 |
|
|
6,274 |
|
TOTAL SHAREHOLDERS’ EQUITY |
|
|
5,530,738 |
|
|
7,130,544 |
|
|
1,104,382 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
20,345,165 |
|
|
20,124,897 |
|
|
3,116,951 |
|
|
|
|
|
|
|
|
|
|
|
|
LexinFintech Holdings
Ltd.Unaudited Condensed Consolidated Statements of
Operations
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
(In thousands, except
for share and per share data) |
2020 |
|
2021 |
|
|
2020 |
|
2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online direct sales |
|
521,592 |
|
|
408,841 |
|
|
63,321 |
|
|
|
1,011,116 |
|
|
835,168 |
|
|
129,351 |
|
Membership services |
|
24,205 |
|
|
12,599 |
|
|
1,951 |
|
|
|
48,496 |
|
|
35,322 |
|
|
5,471 |
|
Other services |
|
24,154 |
|
|
19,582 |
|
|
3,032 |
|
|
|
37,360 |
|
|
41,172 |
|
|
6,377 |
|
Online direct sales and services income |
|
569,951 |
|
|
441,022 |
|
|
68,304 |
|
|
|
1,096,972 |
|
|
911,662 |
|
|
141,199 |
|
Loan facilitation and servicing fees-credit oriented |
|
931,295 |
|
|
1,594,835 |
|
|
247,008 |
|
|
|
1,694,263 |
|
|
2,655,255 |
|
|
411,247 |
|
Interest and financial services income and other revenues |
|
331,593 |
|
|
409,663 |
|
|
63,449 |
|
|
|
577,522 |
|
|
951,300 |
|
|
147,338 |
|
Guarantee income |
|
706,271 |
|
|
203,595 |
|
|
31,533 |
|
|
|
1,383,571 |
|
|
438,644 |
|
|
67,937 |
|
Credit-oriented services income |
|
1,969,159 |
|
|
2,208,093 |
|
|
341,990 |
|
|
|
3,655,356 |
|
|
4,045,199 |
|
|
626,522 |
|
Loan facilitation and servicing fees-performance based |
|
393,595 |
|
|
543,225 |
|
|
84,135 |
|
|
|
670,983 |
|
|
1,116,174 |
|
|
172,873 |
|
Loan facilitation and servicing fees-volume based |
|
25,301 |
|
|
76,496 |
|
|
11,848 |
|
|
|
34,729 |
|
|
139,484 |
|
|
21,603 |
|
Platform-based services income |
|
418,896 |
|
|
619,721 |
|
|
95,983 |
|
|
|
705,712 |
|
|
1,255,658 |
|
|
194,476 |
|
Total operating
revenue |
|
2,958,006 |
|
|
3,268,836 |
|
|
506,277 |
|
|
|
5,458,040 |
|
|
6,212,519 |
|
|
962,197 |
|
Operating
cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(519,713 |
) |
|
(426,991 |
) |
|
(66,132 |
) |
|
|
(999,880 |
) |
|
(860,460 |
) |
|
(133,268 |
) |
Funding cost |
|
(163,363 |
) |
|
(123,620 |
) |
|
(19,146 |
) |
|
|
(306,444 |
) |
|
(253,380 |
) |
|
(39,244 |
) |
Processing and servicing cost |
|
(356,439 |
) |
|
(469,917 |
) |
|
(72,781 |
) |
|
|
(669,409 |
) |
|
(866,633 |
) |
|
(134,224 |
) |
Provision for credit losses of financing receivables |
|
(120,913 |
) |
|
(111,635 |
) |
|
(17,290 |
) |
|
|
(411,162 |
) |
|
(283,633 |
) |
|
(43,929 |
) |
Provision for credit losses of contract assets and receivables |
|
(60,786 |
) |
|
(139,698 |
) |
|
(21,636 |
) |
|
|
(150,126 |
) |
|
(358,635 |
) |
|
(55,545 |
) |
Provision for credit losses of contingent liabilities of
guarantee |
|
(768,922 |
) |
|
(335,499 |
) |
|
(51,962 |
) |
|
|
(1,786,165 |
) |
|
(559,284 |
) |
|
(86,622 |
) |
Total operating
cost |
|
(1,990,136 |
) |
|
(1,607,360 |
) |
|
(248,947 |
) |
|
|
(4,323,186 |
) |
|
(3,182,025 |
) |
|
(492,832 |
) |
Gross
profit |
|
967,870 |
|
|
1,661,476 |
|
|
257,330 |
|
|
|
1,134,854 |
|
|
3,030,494 |
|
|
469,365 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
(327,430 |
) |
|
(494,814 |
) |
|
(76,637 |
) |
|
|
(571,302 |
) |
|
(840,318 |
) |
|
(130,149 |
) |
Research and development expenses |
|
(134,605 |
) |
|
(130,447 |
) |
|
(20,204 |
) |
|
|
(260,816 |
) |
|
(254,654 |
) |
|
(39,441 |
) |
General and administrative expenses |
|
(113,793 |
) |
|
(120,849 |
) |
|
(18,717 |
) |
|
|
(223,319 |
) |
|
(251,950 |
) |
|
(39,022 |
) |
Total operating
expenses |
|
(575,828 |
) |
|
(746,110 |
) |
|
(115,558 |
) |
|
|
(1,055,437 |
) |
|
(1,346,922 |
) |
|
(208,612 |
) |
Change in fair value of financial guarantee derivatives, net |
|
79,223 |
|
|
(19,138 |
) |
|
(2,964 |
) |
|
|
(359,761 |
) |
|
134,434 |
|
|
20,821 |
|
Change in fair value of loans at fair value |
|
- |
|
|
17,776 |
|
|
2,753 |
|
|
|
- |
|
|
(60,035 |
) |
|
(9,298 |
) |
Interest expense, net |
|
(23,713 |
) |
|
(16,661 |
) |
|
(2,580 |
) |
|
|
(36,018 |
) |
|
(36,350 |
) |
|
(5,630 |
) |
Investment income/(loss) |
|
26,880 |
|
|
(2,208 |
) |
|
(342 |
) |
|
|
10,614 |
|
|
(2,397 |
) |
|
(371 |
) |
Others, net |
|
21,248 |
|
|
42,586 |
|
|
6,596 |
|
|
|
(1,946 |
) |
|
60,835 |
|
|
9,422 |
|
Income/(loss) before
income tax expense |
|
495,680 |
|
|
937,721 |
|
|
145,235 |
|
|
|
(307,694 |
) |
|
1,780,059 |
|
|
275,697 |
|
Income tax (expense)/benefit |
|
(76,644 |
) |
|
(151,059 |
) |
|
(23,396 |
) |
|
|
48,303 |
|
|
(282,316 |
) |
|
(43,725 |
) |
Net
income/(loss) |
|
419,036 |
|
|
786,662 |
|
|
121,839 |
|
|
|
(259,391 |
) |
|
1,497,743 |
|
|
231,972 |
|
Less: Net income attributable to non-controlling interests |
|
- |
|
|
505 |
|
|
78 |
|
|
|
- |
|
|
47 |
|
|
7 |
|
Net income/(loss)
attributable to ordinary shareholders of the Company |
|
419,036 |
|
|
786,157 |
|
|
121,761 |
|
|
|
(259,391 |
) |
|
1,497,696 |
|
|
231,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
ordinary share attributable to ordinary shareholders of the
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1.15 |
|
|
2.13 |
|
|
0.33 |
|
|
|
(0.71 |
) |
|
4.07 |
|
|
0.63 |
|
Diluted |
|
1.05 |
|
|
1.91 |
|
|
0.30 |
|
|
|
(0.71 |
) |
|
3.65 |
|
|
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
ADS attributable to ordinary shareholders of the
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.30 |
|
|
4.27 |
|
|
0.66 |
|
|
|
(1.43 |
) |
|
8.13 |
|
|
1.26 |
|
Diluted |
|
2.10 |
|
|
3.82 |
|
|
0.59 |
|
|
|
(1.43 |
) |
|
7.30 |
|
|
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
364,483,393 |
|
|
368,245,622 |
|
|
368,245,622 |
|
|
|
363,992,775 |
|
|
368,257,243 |
|
|
368,257,243 |
|
Diluted |
|
410,340,418 |
|
|
417,056,948 |
|
|
417,056,948 |
|
|
|
363,992,775 |
|
|
416,277,840 |
|
|
416,277,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LexinFintech Holdings
Ltd.Unaudited Condensed Consolidated Statements of
Comprehensive Income/(loss)
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
(In
thousands) |
2020 |
|
2021 |
|
|
2020 |
|
2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Net income/(loss) |
|
419,036 |
|
|
786,662 |
|
|
121,839 |
|
|
|
(259,391 |
) |
|
1,497,743 |
|
|
231,972 |
|
Other comprehensive
income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil tax |
|
(908 |
) |
|
5,304 |
|
|
824 |
|
|
|
399 |
|
|
3,233 |
|
|
501 |
|
Total comprehensive
income/(loss) |
|
418,128 |
|
|
791,966 |
|
|
122,663 |
|
|
|
(258,992 |
) |
|
1,500,976 |
|
|
232,473 |
|
Less: Net income attributable to non-controlling interests |
|
- |
|
|
505 |
|
|
78 |
|
|
|
- |
|
|
47 |
|
|
7 |
|
Total comprehensive
income/(loss) attributable to ordinary shareholders of the
Company |
|
418,128 |
|
|
791,461 |
|
|
122,585 |
|
|
|
(258,992 |
) |
|
1,500,929 |
|
|
232,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LexinFintech Holdings
Ltd.Unaudited Reconciliations of GAAP and Non-GAAP
Results
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
(In thousands, except
for share and per share data) |
2020 |
|
2021 |
|
|
2020 |
|
2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Reconciliation of Adjusted net income/(loss) attributable
to ordinary shareholders of the Company to Net income/(loss)
attributable to ordinary shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) attributable to ordinary shareholders of the
Company |
|
419,036 |
|
|
786,157 |
|
|
121,761 |
|
|
|
(259,391 |
) |
|
1,497,696 |
|
|
231,965 |
|
Add: Share-based compensation expenses |
|
48,265 |
|
|
43,969 |
|
|
6,810 |
|
|
|
102,999 |
|
|
92,482 |
|
|
14,323 |
|
Interest expense associated with convertible notes |
|
12,206 |
|
|
11,166 |
|
|
1,729 |
|
|
|
24,119 |
|
|
22,300 |
|
|
3,454 |
|
Investment (income)/loss |
|
(26,880 |
) |
|
2,208 |
|
|
342 |
|
|
|
(10,614 |
) |
|
2,397 |
|
|
371 |
|
Tax effects on Non-GAAP adjustments(1) |
|
- |
|
|
7,151 |
|
|
1,108 |
|
|
|
- |
|
|
7,151 |
|
|
1,108 |
|
Adjusted net income/(loss) attributable to ordinary
shareholders of the Company |
|
452,627 |
|
|
850,652 |
|
|
131,750 |
|
|
|
(142,887 |
) |
|
1,622,026 |
|
|
251,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) per ordinary share attributable
to ordinary shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1.24 |
|
|
2.31 |
|
|
0.36 |
|
|
|
(0.39 |
) |
|
4.40 |
|
|
0.68 |
|
Diluted |
|
1.10 |
|
|
2.04 |
|
|
0.32 |
|
|
|
(0.39 |
) |
|
3.90 |
|
|
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/(loss) per ADS attributable to ordinary
shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.48 |
|
|
4.62 |
|
|
0.72 |
|
|
|
(0.79 |
) |
|
8.81 |
|
|
1.36 |
|
Diluted |
|
2.21 |
|
|
4.08 |
|
|
0.63 |
|
|
|
(0.79 |
) |
|
7.79 |
|
|
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
364,483,393 |
|
|
368,245,622 |
|
|
368,245,622 |
|
|
|
363,992,775 |
|
|
368,257,243 |
|
|
368,257,243 |
|
Diluted |
|
410,340,418 |
|
|
417,056,948 |
|
|
417,056,948 |
|
|
|
363,992,775 |
|
|
416,277,840 |
|
|
416,277,840 |
|
(1) To exclude the tax effects related to the
investment (income)/loss.
LexinFintech Holdings
Ltd.Unaudited Reconciliations of GAAP and Non-GAAP
Results
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
(In
thousands) |
2020 |
|
2021 |
|
|
2020 |
|
2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Reconciliations of Non-GAAP EBIT to Net
income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
419,036 |
|
|
786,662 |
|
|
121,839 |
|
|
|
(259,391 |
) |
|
1,497,743 |
|
|
231,972 |
|
Add: Income tax expense/(benefit) |
|
76,644 |
|
|
151,059 |
|
|
23,396 |
|
|
|
(48,303 |
) |
|
282,316 |
|
|
43,725 |
|
Share-based compensation expenses |
|
48,265 |
|
|
43,969 |
|
|
6,810 |
|
|
|
102,999 |
|
|
92,482 |
|
|
14,323 |
|
Interest expense, net |
|
23,713 |
|
|
16,661 |
|
|
2,580 |
|
|
|
36,018 |
|
|
36,350 |
|
|
5,630 |
|
Investment (income)/loss |
|
(26,880 |
) |
|
2,208 |
|
|
342 |
|
|
|
(10,614 |
) |
|
2,397 |
|
|
371 |
|
Non-GAAP EBIT |
|
540,778 |
|
|
1,000,559 |
|
|
154,967 |
|
|
|
(179,291 |
) |
|
1,911,288 |
|
|
296,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LexinFintech (NASDAQ:LX)
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