LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2022 Unaudited Financial Results
LexinFintech Holdings Ltd. (NASDAQ: LX) reported Q4 2022 financial results, showing total loan origination of RMB56.1 billion, a 28.8% year-over-year increase. The total outstanding loan balance reached RMB99.6 billion, up 15.9% year-over-year. Q4 operating revenue rose to RMB3.1 billion, a 38.7% increase from Q4 2021, with net profit at approximately RMB301 million, reflecting a 17.9% year-over-year growth. Despite these positive results, active users using loan products decreased by 15.3% year-over-year. The company expects loan originations in Q1 2023 to be around RMB60 billion, signaling a 39% year-over-year growth outlook.
- Q4 2022 loan origination increased by 28.8% year-over-year to RMB56.1 billion.
- Total operating revenue for Q4 2022 rose to RMB3.1 billion, up 38.7% year-over-year.
- Net profit for Q4 2022 was approximately RMB301 million, a 17.9% increase year-over-year.
- Active users using loan products decreased by 15.3% year-over-year in Q4 2022.
- Total loan origination for 2022 decreased by 4.3% compared to 2021.
SHENZHEN, China, March 13, 2023 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading technology-empowered personal financial service enabler in China, today announced its unaudited financial results for the quarter ended December 31, 2022.
"Total loan origination for the fourth quarter of 2022 was well in line with the high end of our initial expectations of over RMB56.1 billion, representing a year-over-year growth of
"In the past year, in addition to our commitment to continuous technological innovation and optimizing operational efficiency, we have also made noteworthy progress in both our risk management capabilities and our regulatory compliance. Our overall core competencies have been notably upgraded. Looking ahead, we are confident in the resilience of China's economic and consumption recovery and believe that Lexin is better positioned at present than ever to navigate through the uncertainties and utilize the opportunities given to us to pursue greater and more reliable growth in a continued and sustainable manner," Mr. Xiao continued.
"We ended the 2022 financial year with solid fourth-quarter results, demonstrating the continued turnaround of our business despite the challenging business environment throughout the year," said Mr. James Zheng, chief financial officer of Lexin, "Total operating revenue for the fourth quarter was RMB3.1 billion, an increase of
"Going forward, while we see signs of improving growth and recovery in the macro-economy, as well as a more stable regulatory environment, we would also like to reiterate our strong commitment to generating sustainable long-term profits by continuously focusing on upgrading our risk management capability, improving our business model, optimizing our operational efficiency, improving our customer acquisition, and continuing our cost reduction initiatives," said Mr. Zheng.
Fourth Quarter and Full Year 2022 Operational Highlights:
- Total number of registered users reached 189 million as of December 31, 2022, representing an increase of
14.3% from 165 million as of December 31, 2021, and users with credit lines reached 40.0 million as of December 31, 2022, up by8.5% from 36.9 million as of December 31, 2021. - As of December 31, 2022, we cumulatively originated RMB863 billion in loans, an increase of
30.9% from RMB659 billion a year ago.
User Base
- Number of active users1 who used our loan products in the fourth quarter of 2022 was 5.3 million, representing a decrease of
15.3% from 6.3 million in the fourth quarter of 2021. Number of active users1 who used our loan products in 2022 was 9.7 million, representing a decrease of31.6% from 14.2 million in 2021.
- Number of new active users who used our loan products in the fourth quarter of 2022 was 0.4 million, representing a decrease of
56.6% from 0.9 million in the fourth quarter of 2021. Number of new active users who used our loan products in 2022 was 2.4 million, representing a decrease of59.1% from 5.9 million in 2021.
Loan Facilitation Business
- Total loan originations2 in the fourth quarter of 2022 was RMB56.1 billion, an increase of
28.8% from RMB43.6 billion in the fourth quarter of 2021. Total loan originations2 in 2022 was RMB205 billion, a decrease of4.3% from RMB214 billion in 2021. - Total outstanding principal balance of loans2 reached RMB99.6 billion as of December 31, 2022, representing an increase of
15.9% from RMB85.9 billion as of December 31, 2021. - Loan originations for small and micro business owners was RMB5.0 billion, for the fourth quarter, bringing the total number for 2022 to RMB20.1 billion.
- Total number of orders placed on our platform in the fourth quarter of 2022 was 28.2 million, representing a decrease of
15.7% from 33.4 million in the fourth quarter of 2021. Number of orders placed on our platform in 2022 was 128 million, representing a decrease of47.1% from 242 million in 2021.
Credit Performance
- 90 day+ delinquency ratio was
2.53% as of December 31, 2022, as compared with2.66% as of September 30, 2022. - 30 day+ delinquency ratio was
4.62% as of December 31, 2022, as compared with4.61% as of September 30, 2022. - First payment default rate (30 day+) for new loan originations was below
1% as of December 31, 2022.
Tech-empowerment Service
- For the fourth quarter of 2022, we served over 105 business customers with our tech-empowerment service. For full year 2022, we served over 145 business customers with our tech-empowerment service.
- In the fourth quarter of 2022, the business customer retention rate3 of our tech-empowerment service was over
85% .
Installment E-commerce Platform Service
- GMV4 in the fourth quarter of 2022 for our installment e-commerce platform service was RMB1,393 million, representing an increase of
40.2% from RMB993 million in the fourth quarter of 2021. Total GMV4 for 2022 was RMB4,390 million, representing an increase of27.1% from RMB3,454 million in 2021. - In the fourth quarter of 2022, our installment e-commerce platform service served over 393,000 users and 2,500 merchants. In 2022, our installment e-commerce platform service served over 1,089,000 users and 4,700 merchants.
Other Operational Highlights
- The weighted average tenor of loans originated on our platform in the fourth quarter of 2022 was approximately 13.9 months, as compared with 10.3 months in the fourth quarter of 2021. The nominal APR5 was
15.7% for the fourth quarter of 2022, as compared with12.4% in the fourth quarter of 2021. - In 2022, the weighted average tenor of loans originated on our platform was approximately 13.1 months, as compared with 11.2 months in 2021. The nominal APR5 was
15.1% for 2022, as compared with14.5% for 2021.
Fourth Quarter 2022 Financial Highlights:
- Total operating revenue was RMB3,050 million, representing an increase of
38.7% from the fourth quarter of 2021. - Credit facilitation service income was RMB1,964 million, representing an increase of
71.4% from the fourth quarter of 2021. Tech-empowerment service income was RMB413 million, representing a decrease of34.6% from the fourth quarter of 2021. Installment e-commerce platform service income was RMB674 million, representing an increase of59.3% from the fourth quarter of 2021. - Net income attributable to ordinary shareholders of the Company was RMB301 million, representing an increase of
17.7% from the fourth quarter of 2021. Net income per ADS attributable to ordinary shareholders of the Company was RMB1.68 on a fully diluted basis. - Adjusted net income attributable to ordinary shareholders of the Company6 was RMB390 million, representing an increase of
23.7% from the fourth quarter of 2021. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB2.09 on a fully diluted basis.
Full Year 2022 Financial Highlights:
- Total operating revenue was RMB9,866 million, representing a decrease of
13.3% from 2021. - Credit facilitation service income was RMB5,964 million, representing a decrease of
14.3% from 2021. Tech-empowerment service income was RMB1,846 million, representing a decrease of33.2% from 2021. Installment e-commerce platform service income was RMB2,056 million, representing an increase of23.7% from 2021. - Net income attributable to ordinary shareholders of the Company was RMB820 million, representing a decrease of
64.9% from 2021. Net income per ADS attributable to ordinary shareholders of the Company was RMB4.41 on a fully diluted basis. - Adjusted net income attributable to ordinary shareholders of the Company6 was RMB1,058 million, representing a decrease of
59.0% from 2021. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB5.39 on a fully diluted basis.
__________________________
- 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 the credit line granted by us.
- Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.
- Customer retention rate refers to the number of financial institution customers and partners who repurchase our service in the current quarter as a percentage of the total number of financial institution customers and partners in the preceding quarter.
- GMV refers to the total value of transactions completed for products purchased on our e-commerce and Maiya channel, net of returns.
- 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.
- Adjusted net income attributable to ordinary shareholders of the Company, adjusted net 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.
Fourth Quarter 2022 Financial Results:
Operating revenue increased by
Credit facilitation service income increased by
Loan facilitation and servicing fees-credit oriented increased by
Guarantee income increased by
Financing income increased by
Tech-empowerment service income decreased by
Installment e-commerce platform service income increased by
Cost of sales increased by
Funding cost increased by
Processing and servicing costs was RMB467 million in the fourth quarter of 2022, as compared with RMB469 million in the fourth quarter of 2021.
Provision for financing receivables was a loss of RMB147 million for the fourth quarter of 2022, as compared with a gain of RMB98.9 million for the fourth quarter of 2021. The credit losses reflect the most recent performance in relation to the Company’s on-balance sheet loans and the Company's continued implementation of prudent credit assessment and risk management policies and procedures.
Provision for contract assets and receivables was RMB131 million in the fourth quarter of 2022, as compared to RMB44.6 million in the fourth quarter of 2021. The increase was primarily due to the significant increase in loan facilitations and servicing fees in the fourth quarter of 2022.
Provision for contingent guarantee liabilities was RMB459 million in the fourth quarter of 2022, as compared to RMB11.8 million in the fourth quarter of 2021. The increase was primarily due to the increase in loan origination of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.
Gross profit decreased by
Sales and marketing expenses increased by
Research and development expenses decreased by
General and administrative expenses decreased by
Change in fair value of financial guarantee derivatives and loans at fair value was a gain of RMB33.2 million in the fourth quarter of 2022, as compared to a loss of RMB341 million in the fourth quarter of 2021. The change in fair value was primarily driven by the fair value gains realized as a result of the release of guarantee obligation, along with the re-measurement of the expected loss rates and changes in the balances of the underlying outstanding off-balance sheet loans as of December 31, 2022.
Income tax expense increased by
Net income increased by
Full Year 2022 Financial Results:
Operating revenue decreased by
Credit facilitation service income decreased by
Loan facilitation and servicing fees-credit oriented decreased by
Guarantee income increased by
Financing income increased by
Tech-empowerment service income decreased by
Installment e-commerce platform service income increased by
Cost of sales increased by
Funding cost increased by
Processing and servicing costs was RMB1,875 million in 2022, as compared with RMB1,859 million in 2021.
Provision for financing receivables increased by
Provision for contract assets and receivables decreased by
Provision for contingent guarantee liabilities was RMB1,468 million in 2022, as compared to RMB622 million in 2021. The increase was primarily due to the increase in loan origination of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.
Gross profit decreased by
Sales and marketing expenses was RMB1,685 million in 2022, as compared with RMB1,659 million in 2021.
Research and development expenses increased by
General and administrative expenses decreased by
Change in fair value of financial guarantee derivatives and loans at fair value was a gain of RMB722 million in 2022, as compared to a loss of RMB347 million in 2021. The change in fair value was primarily driven by the fair value gains realized as a result of the release of guarantee obligation, along with the re-measurement of the expected loss rates and changes in the balances of the underlying outstanding off-balance sheet loans as of December 31, 2022.
Income tax expense decreased by
Net income decreased by
Recent Developments
Update on Share Repurchase Program
On March 16, 2022, the Company’s board of directors authorized a share repurchase program under which the Company could repurchase up to an aggregate of US
On November 17, 2022, the Company’s board of directors authorized a new share repurchase program under which the Company could purchase up to an aggregate of US
Amendment of 2019 PAG Convertible Notes
On March 13, 2023, the Company entered into an amendment agreement with PAGAC Lemongrass Holding I Limited (the “Holder”) regarding previous documents governing the convertible notes in an aggregate principal amount of US
Outlook
Based on the Company’s preliminary assessment of the current market conditions, total loan originations for the first quarter of the fiscal year 2023 are expected to be around RMB60 billion, representing an increase of approximately
These estimates reflect the Company's current expectation, which is subject to change.
Conference Call
The Company’s management will host an earnings conference call at 9:30 PM U.S. Eastern time on March 13, 2023 (9:30 AM Beijing/Hong Kong time on March 14, 2023).
Participants who wish to join the conference call should register online at:
https://register.vevent.com/register/BIb5710f11eb26471b8fee5b57b3ad5060
Once registration is completed, each participant will receive the dial-in number and a unique access PIN for the conference call.
Participants joining the conference call should dial in at least 10 minutes before the scheduled start time.
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.lexin.com.
About LexinFintech Holdings Ltd.
We are a leading credit technology-empowered personal financial service enabler. Our mission is to use technology and risk management expertise to make financing more accessible for young generation consumers. We strive to achieve this mission by connecting consumers with financial institutions, where we facilitate through a unique model that includes online and offline channels, installment consumption platform, big data and AI driven credit risk management capabilities, as well as smart user and loan management systems. We also empower financial institutions by providing cutting-edge proprietary technology solutions to meet their needs of financial digital transformation.
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 attributable to ordinary shareholders of the Company, non-GAAP EBIT, adjusted net 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 income attributable to ordinary shareholders of the Company as net 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 income excluding income tax expense, share-based compensation expenses, interest expense, net, and investment loss.
We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Adjusted net 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 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 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 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 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 each of the non-GAAP financial measures 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 RMB6.8972 to US
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:
Jamie Wang
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: jamiewang@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, 2021 | December 31, 2022 | |||||||
| RMB | RMB | US$ | |||||||
| ASSETS | |||||||||
| Current Assets | |||||||||
| Cash and cash equivalents | 2,664,132 | 1,494,150 | 216,631 | ||||||
| Restricted cash | 1,305,435 | 1,267,512 | 183,772 | ||||||
| Restricted term deposit and short-term investments | 1,745,898 | 1,331,858 | 193,101 | ||||||
| Short-term financing receivables, net(1)(2) | 3,826,488 | 6,397,920 | 927,611 | ||||||
| Short-term contract assets and receivables, net(1)(2) | 4,486,649 | 3,894,175 | 564,602 | ||||||
| Deposits to insurance companies and guarantee companies | 1,378,489 | 2,249,022 | 326,078 | ||||||
| Prepayments and other current assets(2) | 1,194,120 | 1,086,952 | 157,593 | ||||||
| Amounts due from related parties | 6,337 | 6,602 | 957 | ||||||
| Inventories, net | 47,816 | 53,917 | 7,817 | ||||||
| Total Current Assets | 16,655,364 | 17,782,108 | 2,578,162 | ||||||
| Non-current Assets | |||||||||
| Restricted cash | 149,247 | 168,521 | 24,433 | ||||||
| Long-term financing receivables, net(1) | 241,127 | 460,325 | 66,741 | ||||||
| Long-term contract assets and receivables, net(1)(2) | 346,234 | 605,051 | 87,724 | ||||||
| Property, equipment and software, net | 195,330 | 284,593 | 41,262 | ||||||
| Land use rights, net | 966,067 | 931,667 | 135,079 | ||||||
| Long-term investments | 469,064 | 348,376 | 50,510 | ||||||
| Deferred tax assets | 1,176,878 | 1,141,761 | 165,540 | ||||||
| Other assets | 826,883 | 1,048,301 | 151,989 | ||||||
| Total Non-current Assets | 4,370,830 | 4,988,595 | 723,278 | ||||||
| TOTAL ASSETS | 21,026,194 | 22,770,703 | 3,301,440 | ||||||
| LIABILITIES | |||||||||
| Current liabilities | |||||||||
| Accounts payable | 15,705 | 25,970 | 3,765 | ||||||
| Amounts due to related parties | 23,102 | 4,669 | 677 | ||||||
| Short-term borrowings | 1,799,741 | 1,168,046 | 169,351 | ||||||
| Short-term funding debts | 3,101,381 | 4,385,253 | 635,802 | ||||||
| Deferred guarantee income | 419,843 | 894,858 | 129,742 | ||||||
| Contingent guarantee liabilities | 928,840 | 882,107 | 127,893 | ||||||
| Accruals and other current liabilities(2) | 3,898,508 | 3,057,469 | 443,291 | ||||||
| Convertible notes | - | 2,063,545 | 299,186 | ||||||
| Total Current Liabilities | 10,187,120 | 12,481,917 | 1,809,707 | ||||||
| Non-current Liabilities | |||||||||
| Long-term borrowings | - | 150,430 | 21,810 | ||||||
| Long-term funding debts | 696,852 | 1,334,105 | 193,427 | ||||||
| Deferred tax liabilities | 54,335 | 52,559 | 7,620 | ||||||
| Convertible notes | 1,882,689 | - | - | ||||||
| Other long-term liabilities | 137,389 | 102,941 | 14,925 | ||||||
| Total Non-current Liabilities | 2,771,265 | 1,640,035 | 237,782 | ||||||
| TOTAL LIABILITIES | 12,958,385 | 14,121,952 | 2,047,489 | ||||||
| Shareholders’ equity: | |||||||||
| Class A Ordinary Shares | 180 | 191 | 29 | ||||||
| Class B Ordinary Shares | 57 | 47 | 8 | ||||||
| Treasury stock | - | (328,764 | ) | (47,666 | ) | ||||
| Additional paid-in capital | 2,918,993 | 3,081,254 | 446,740 | ||||||
| Statutory reserves | 901,322 | 1,022,592 | 148,262 | ||||||
| Accumulated other comprehensive loss/(income) | 11,273 | (20,842 | ) | (3,022 | ) | ||||
| Retained earnings | 4,195,791 | 4,894,273 | 709,600 | ||||||
| Non-controlling interests | 40,193 | - | - | ||||||
| Total shareholders’ equity | 8,067,809 | 8,648,751 | 1,253,951 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 21,026,194 | 22,770,703 | 3,301,440 | ||||||
__________________________
| (1) | Short-term financing receivables, net of allowance for credit losses of RMB308,708 and RMB184,187 as of December 31, 2021 and December 31, 2022, respectively Short-term contract assets and receivables, net of allowance for credit losses of RMB208,267 and RMB216,850 as of December 31, 2021 and December 31, 2022, respectively Long-term financing receivables, net of allowance for credit losses of RMB19,523 and RMB13,220 as of December 31, 2021 and December 31, 2022, respectively Long-term contract assets and receivables, net of allowance for credit losses of RMB39,034 and RMB52,742 as of December 31, 2021 and December 31, 2022, respectively |
| (2) | Starting from the fourth quarter of 2022, we updated the presentation of our Condensed Consolidated Balance Sheets, to provide more relevant and clear information. We also revised the presentation in comparative periods to conform to the current classification. Accrued interest receivable is included in Short-term financing receivables. Guarantee receivables and Contract assets and service fees receivable are combined as Contract assets and receivables. Prepaid expenses and other current assets and Loan at fair value are combined as Prepayments and other current assets. Accrued interest payable and Accrued expenses and other current liabilities are combined as Accruals and other current liabilities. |
LexinFintech Holdings Ltd.
Unaudited Condensed Consolidated Statements of Operations
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||
| (In thousands, except for share and per share data) | 2021 | 2022 | 2021 | 2022 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
| Operating revenue: | |||||||||||||
| Credit facilitation service income(3) | 1,145,307 | 1,963,503 | 284,681 | 6,955,810 | 5,963,803 | 864,670 | |||||||
| Loan facilitation and servicing fees-credit oriented | 606,029 | 849,240 | 123,128 | 4,448,344 | 2,486,527 | 360,513 | |||||||
| Guarantee income | 171,848 | 499,662 | 72,444 | 774,544 | 1,453,180 | 210,691 | |||||||
| Financing income(3) | 367,430 | 614,601 | 89,109 | 1,732,922 | 2,024,096 | 293,466 | |||||||
| Tech-empowerment service income(3) | 630,924 | 412,769 | 59,846 | 2,762,995 | 1,845,943 | 267,637 | |||||||
| Installment e-commerce platform service income(3) | 422,980 | 673,994 | 97,720 | 1,661,720 | 2,056,065 | 298,101 | |||||||
| Total operating revenue | 2,199,211 | 3,050,266 | 442,247 | 11,380,525 | 9,865,811 | 1,430,408 | |||||||
| Operating cost | |||||||||||||
| Cost of sales | (462,523 | ) | (656,539 | ) | (95,189 | ) | (1,759,956 | ) | (2,066,804 | ) | (299,658 | ) | |
| Funding cost | (98,222 | ) | (146,375 | ) | (21,222 | ) | (457,615 | ) | (518,069 | ) | (75,113 | ) | |
| Processing and servicing cost | (468,657 | ) | (466,935 | ) | (67,699 | ) | (1,858,901 | ) | (1,875,292 | ) | (271,892 | ) | |
| Provision for financing receivables | 98,873 | (146,515 | ) | (21,243 | ) | (401,104 | ) | (437,477 | ) | (63,428 | ) | ||
| Provision for contract assets and receivables | (44,644 | ) | (131,292 | ) | (19,036 | ) | (531,237 | ) | (465,188 | ) | (67,446 | ) | |
| Provision for contingent guarantee liabilities | (11,780 | ) | (459,252 | ) | (66,585 | ) | (622,438 | ) | (1,468,265 | ) | (212,878 | ) | |
| Total operating cost | (986,953 | ) | (2,006,908 | ) | (290,974 | ) | (5,631,251 | ) | (6,831,095 | ) | (990,415 | ) | |
| Gross profit | 1,212,258 | 1,043,358 | 151,273 | 5,749,274 | 3,034,716 | 439,993 | |||||||
| Operating expenses： | |||||||||||||
| Sales and marketing expenses | (327,652 | ) | (422,997 | ) | (61,329 | ) | (1,658,904 | ) | (1,685,438 | ) | (244,366 | ) | |
| Research and development expenses | (163,636 | ) | (135,665 | ) | (19,670 | ) | (549,286 | ) | (583,260 | ) | (84,565 | ) | |
| General and administrative expenses | (118,248 | ) | (97,058 | ) | (14,072 | ) | (470,661 | ) | (431,571 | ) | (62,572 | ) | |
| Total operating expenses | (609,536 | ) | (655,720 | ) | (95,071 | ) | (2,678,851 | ) | (2,700,269 | ) | (391,503 | ) | |
| Change in fair value of financial guarantee derivatives and loans at fair value | (340,728 | ) | 33,185 | 4,811 | (347,084 | ) | 722,381 | 104,735 | |||||
| Interest expense, net | (12,752 | ) | (8,187 | ) | (1,187 | ) | (63,125 | ) | (55,636 | ) | (8,066 | ) | |
| Investment loss | (107 | ) | (38,423 | ) | (5,571 | ) | (4,160 | ) | (33,944 | ) | (4,921 | ) | |
| Other, net | 53,591 | (608 | ) | (88 | ) | 113,480 | 61,321 | 8,891 | |||||
| Income before income tax expense | 302,726 | 373,605 | 54,167 | 2,769,534 | 1,028,569 | 149,129 | |||||||
| Income tax expense | (47,115 | ) | (72,302 | ) | (10,483 | ) | (435,418 | ) | (202,640 | ) | (29,380 | ) | |
| Net income | 255,611 | 301,303 | 43,684 | 2,334,116 | 825,929 | 119,749 | |||||||
| Less: net (loss)/income attributable to non-controlling interests | (423 | ) | (113 | ) | (16 | ) | 193 | 6,177 | 896 | ||||
| Net income attributable to ordinary shareholders of the Company | 256,034 | 301,416 | 43,700 | 2,333,923 | 819,752 | 118,853 | |||||||
| Net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||||
| Basic | 0.69 | 0.92 | 0.13 | 6.33 | 2.36 | 0.34 | |||||||
| Diluted | 0.65 | 0.84 | 0.12 | 5.73 | 2.21 | 0.32 | |||||||
| Net income per ADS attributable to ordinary shareholders of the Company | |||||||||||||
| Basic | 1.39 | 1.84 | 0.27 | 12.67 | 4.71 | 0.68 | |||||||
| Diluted | 1.29 | 1.68 | 0.24 | 11.46 | 4.41 | 0.64 | |||||||
| Weighted average ordinary shares outstanding | |||||||||||||
| Basic | 369,328,311 | 328,034,709 | 328,034,709 | 368,460,867 | 348,048,245 | 348,048,245 | |||||||
| Diluted | 414,080,634 | 372,659,684 | 372,659,684 | 414,992,716 | 392,756,821 | 392,756,821 | |||||||
__________________________
| (3) | Starting from the fourth quarter of 2022, we updated the descriptions of three categories of our revenue streams as Credit facilitation service income, Tech-empowerment service income, and Installment e-commerce platform service income, to provide more relevant and clear information. We also revised the revenue presentation in comparative periods to conform to the current classification. Credit facilitation service income was previously reported as “Credit-Driven Platform Services” before the change of presentation. Financing income was previously reported as “Interest and financial services income and other revenues” before the change of presentation. Tech-empowerment service income was previously reported as “Technology-Driven Platform Services” before the change of presentation. Installment e-commerce platform service income was previously reported as “New consumption-driven, location-based services” before the change of presentation. |
LexinFintech Holdings Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||
| (In thousands) | 2021 | 2022 | 2021 | 2022 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Net income | 255,611 | 301,303 | 43,684 | 2,334,116 | 825,929 | 119,749 | |||||||||||||
| Other comprehensive income | |||||||||||||||||||
| Foreign currency translation adjustment, net of nil tax | 5,668 | 12,662 | 1,836 | 7,965 | (32,115 | ) | (4,656 | ) | |||||||||||
| Total comprehensive income | 261,279 | 313,965 | 45,520 | 2,342,081 | 793,814 | 115,093 | |||||||||||||
| Less: net (loss)/income attributable to non-controlling interests | (423 | ) | (113 | ) | (16 | ) | 193 | 6,177 | 896 | ||||||||||
| Total comprehensive income attributable to ordinary shareholders of the Company | 261,702 | 314,078 | 45,536 | 2,341,888 | 787,637 | 114,197 | |||||||||||||
LexinFintech Holdings Ltd.
Unaudited Reconciliations of GAAP and Non-GAAP Results
| For the Three Months Ended September 30, | For the Year Ended December 31, | ||||||||||||
| (In thousands, except for share and per share data) | 2021 | 2022 | 2021 | 2022 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
| Reconciliation of Adjusted net income attributable to ordinary shareholders of the Company to Net income attributable to ordinary shareholders of the Company | |||||||||||||
| Net income attributable to ordinary shareholders of the Company | 256,034 | 301,416 | 43,700 | 2,333,923 | 819,752 | 118,853 | |||||||
| Add: Share-based compensation expenses | 48,039 | 36,539 | 5,298 | 187,884 | 156,320 | 22,664 | |||||||
| Interest expense associated with convertible notes | 11,190 | 12,449 | 1,805 | 44,865 | 46,903 | 6,800 | |||||||
| Investment loss | 107 | 38,423 | 5,571 | 4,160 | 33,944 | 4,921 | |||||||
| Tax effects on Non-GAAP adjustments (4) | - | 1,231 | 178 | 7,151 | 1,231 | 178 | |||||||
| Adjusted net income attributable to ordinary shareholders of the Company | 315,370 | 390,058 | 56,552 | 2,577,983 | 1,058,150 | 153,416 | |||||||
| Adjusted net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||||
| Basic | 0.85 | 1.19 | 0.17 | 7.00 | 3.04 | 0.44 | |||||||
| Diluted | 0.76 | 1.05 | 0.15 | 6.21 | 2.69 | 0.39 | |||||||
| Adjusted net income per ADS attributable to ordinary shareholders of the Company | |||||||||||||
| Basic | 1.71 | 2.38 | 0.34 | 13.99 | 6.08 | 0.88 | |||||||
| Diluted | 1.52 | 2.09 | 0.30 | 12.42 | 5.39 | 0.78 | |||||||
| Weighted average number of ordinary shares outstanding attributable to ordinary shareholders of the Company | |||||||||||||
| Basic | 369,328,311 | 328,034,709 | 328,034,709 | 368,460,867 | 348,048,245 | 348,048,245 | |||||||
| Diluted | 414,080,634 | 372,659,684 | 372,659,684 | 414,992,716 | 392,756,821 | 392,756,821 | |||||||
__________________________
| (4) | To exclude the tax effects related to the investment loss |
LexinFintech Holdings Ltd.
Unaudited Reconciliations of GAAP and Non-GAAP Results
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||
| (In thousands) | 2021 | 2022 | 2021 | 2022 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
| Reconciliations of Non-GAAP EBIT to Net income | |||||||||||||
| Net income | 255,611 | 301,303 | 43,684 | 2,334,116 | 825,929 | 119,749 | |||||||
| Add: Income tax expense | 47,115 | 72,302 | 10,483 | 435,418 | 202,640 | 29,380 | |||||||
| Share-based compensation expenses | 48,039 | 36,539 | 5,298 | 187,884 | 156,320 | 22,664 | |||||||
| Interest expense, net | 12,752 | 8,187 | 1,187 | 63,125 | 55,636 | 8,066 | |||||||
| Investment loss | 107 | 38,423 | 5,571 | 4,160 | 33,944 | 4,921 | |||||||
| Non-GAAP EBIT | 363,624 | 456,754 | 66,223 | 3,024,703 | 1,274,469 | 184,780 | |||||||
Additional Credit Information
Vintage Charge Off Curve
Dpd30+/GMV by Performance Windows
First Payment Default 30+
FAQ
What were LexinFintech's total loan originations for Q4 2022?
What was LexinFintech's net profit for Q4 2022?
What is the outlook for LexinFintech's loan originations in Q1 2023?
How did LexinFintech's total operating revenue perform in Q4 2022?
What was the decrease in active users for LexinFintech in 2022?
