LexinFintech Holdings Ltd. Announces US$50 million Share Repurchase Program

Rhea-AI Summary

LexinFintech Holdings Ltd. (NASDAQ: LX) announced a share repurchase program allowing for the buyback of up to US$50 million in shares over the next twelve months. This initiative reflects the Company's confidence in its business fundamentals and growth prospects. The repurchases may occur through various means such as open market transactions and block trades, contingent on market conditions. Lexin plans to fund this program using its existing cash balance.

Positive

• Authorization of a US$50 million share repurchase program indicates strong confidence in business fundamentals.
• Repurchase program aims to enhance shareholder value.

Negative

• Potential opportunity costs associated with utilizing cash for share buyback instead of other investments.
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SHENZHEN, China, March 16, 2022 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumption and finance platform in China, today announced that its board of directors has authorized a share repurchase program under which the Company may purchase up to US$50 million of its shares over the next twelve months (the “Share Repurchase Program”).

“This decision demonstrates our confidence in Lexin’s business fundamentals and growth opportunities,” said Jay Xiao, Chairman and CEO of Lexin. “We believe this is an attractive way of deploying our capital and returning value to shareholders.”

The Company’s proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of the repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Company’s board of directors will review the Share Repurchase Program periodically, and may authorize adjustments of its terms and size or suspend or discontinue the program. The Company expects to fund the repurchases under the Share Repurchase Program with its existing cash balance.

About LexinFintech Holdings Ltd.

Lexin is a leading online consumption and finance platform in China. Established in 2013, the Company leverages a deep understanding of Chinese consumers and advanced technology capabilities to connect fast-growing consumers with financial institutions.

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

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

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. 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 Cheng
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: patriciacheng@lexin.com

Media inquiries:
Limin Chen
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: liminchen@lexin.com

SOURCE LexinFintech Holdings Ltd.

FAQ

What is Lexin's share repurchase program amount and duration?

Lexin is authorized to repurchase up to US$50 million of its shares over the next twelve months.

What are the methods Lexin may use for its share buyback?

Lexin may conduct buybacks through open market transactions, block trades, or privately negotiated transactions.

How does Lexin plan to finance its share repurchase program?

Lexin expects to finance the share buyback program using its existing cash balance.

What is the purpose of Lexin's share repurchase program?

The program is intended to demonstrate confidence in the company's fundamentals and provide value to shareholders.

When was Lexin's share repurchase program announced?

The share repurchase program was announced on March 16, 2022.