LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2020 Unaudited Financial Results

Rhea-AI Summary

LexinFintech Holdings Ltd. (NASDAQ: LX) announced its financial results for Q4 and full year 2020, highlighting significant growth in loan originations and user engagement. The company reported Q4 total loan originations of RMB53.2 billion, up 24.2% year-over-year, with a full-year increase to RMB177 billion, representing a 40.3% growth. However, net income decreased by 1.6% in Q4 and 74.1% for the full year. The total operating revenue for Q4 was RMB3.0 billion, an increase of 3.2% year-over-year, while the gross profit for the full year fell by 27.3% to RMB3,633 million.

Positive

• Q4 loan originations grew by 24.2% to RMB53.2 billion.
• Total loan originations in 2020 reached RMB177 billion, up 40.3%.
• Active user count increased by 31.2% to 12.9 million.
• Total operating revenue for Q4 was RMB3.0 billion, up 3.2% from last year.
• Platform-based services income in Q4 surged 232%.

Negative

• Net income decreased by 1.6% in Q4 and 74.1% for the entire year.
• Gross profit for 2020 declined by 27.3% to RMB3,633 million.
• New active users fell by 6.9% to 6.1 million in 2020.

SHENZHEN, China, March 18, 2021 (GLOBE NEWSWIRE) -- 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 impr

FAQ

What were Lexin's Q4 2020 financial highlights?

Lexin reported total operating revenue of RMB3.0 billion, a gross profit increase of 2.9%, and a net income decrease of 1.6%.

How did Lexin perform in 2020 compared to 2019?

In 2020, Lexin achieved total operating revenue of RMB11.6 billion, but net income fell by 74.1%, indicating a challenging year.

What was the growth in loan originations for Lexin in 2020?

Lexin's loan originations increased by 40.3% in 2020, totaling RMB177 billion.

How many active users did Lexin have in 2020?

Lexin had 12.9 million active users in 2020, a 31.2% increase from the previous year.

What trends were observed in Lexin's user base for 2020?

Lexin saw a decline in new active users, with a decrease of 6.9% compared to 2019.