LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results
- Strong financial results for Q4 and full year 2023 with total loan origination of RMB250 billion, a 21.9% growth year-over-year.
- Outstanding loan balance increased by 24.5% to RMB124 billion.
- Total operating revenue for Q4 was RMB3.5 billion, up 32.3% year-over-year.
- Net profit saw a significant 56.2% increase.
- Lexin maintained a user base of 210 million and served over 80 business customers with tech-empowerment services.
- Credit performance remained strong, with a 90-day delinquency ratio of 2.90%.
- Lexin aims for sustainable growth and value creation for shareholders in 2024.
- None.
Insights
The financial results released by LexinFintech Holdings Ltd. reflect a company navigating a challenging macroeconomic environment with a degree of success. A 21.9% year-over-year growth in total loan origination and a 24.5% increase in outstanding loan balance suggest that the company is expanding its market share and has managed to grow its core business despite economic headwinds. The declared dividend payout of $0.066 per ADS for the second half of 2023, amounting to roughly 20% of total net income, indicates a commitment to returning value to shareholders, which can be a positive signal for investor confidence.
However, the decrease in active users using loan products suggests potential challenges in customer acquisition or retention. This could be an area of concern for investors, as it may impact future revenue growth. It's also worth noting the record low funding cost, which has likely contributed to the improved net profit margins. The 56.2% increase in net profit, excluding investment-related impairment losses, is particularly noteworthy as it suggests operational efficiency and effective cost management.
The appointment of a new Chief Risk Officer with experience from Ant Group hints at Lexin's emphasis on strengthening risk management—a critical aspect for financial service providers. The reported 90-day+ delinquency ratio of 2.90% represents a slight increase from the previous quarter, which warrants monitoring as it might indicate a trend in credit quality. The first payment default rate below 1% is commendable and suggests effective initial screening of borrowers.
The company's focus on targeting a higher-quality customer base and optimizing operations could be a strategic move to mitigate risk exposure. The balance between growth and risk performance that Lexin aims for in 2024 will be important for sustainable growth, especially in a slowly recovering macro environment.
Lexin's performance in the tech-empowerment and installment e-commerce platform services provides insight into consumer behavior and market trends. While the tech-empowerment service saw a modest increase, the decline in income from the installment e-commerce platform service suggests a shift in consumer preferences or increased competition. The company's ability to maintain an 85% business customer retention rate in tech-empowerment services indicates a strong value proposition in that segment.
Considering the broader financial technology sector, Lexin's growth in loan origination and revenue outpaces many peers, which could position the company favorably among investors. The emphasis on dual business growth engines driven by data and risk management aligns with industry trends towards digitalization and data-driven decision-making.
SHENZHEN, China, March 20, 2024 (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 and fiscal year ended December 31, 2023.
“Total loan origination for the fourth quarter reached RMB61.2 billion, with the full year figure for 2023 hitting RMB250 billion — aligning with the midpoint of the year's guidance and representing a
“Over the past year, Lexin has significantly enhanced its operational capabilities across various business areas, thanks to a steadfast focus on core strategies that included strengthening risk management, targeting higher-quality customer base, optimizing operations, and implementing cost-effective initiatives. Our relentless efforts yielded satisfying results in 2023, laying a strong foundation for high-quality growth and further ecosystem strengthening in 2024,” added Mr. Xiao. He also extended a warm welcome to our new Chief Risk Officer Qiao Zhanwen and his onboarding as a new director of the Company, who formerly served as a Senior Director at Ant Group and Deputy General Manager at Chongqing Ant Consumer Finance. “Mr. Qiao’s extensive experience in risk management will greatly enhance our capabilities in this area moving forward.”
“Looking into 2024, we will maintain our dual business growth engine driven by data and risk management, aiming for a healthy balance between growth and risk performance. Facing a slowly recovering macro environment, Lexin will continue to remain prudent and is committed to long-term sustainable value creation for shareholders and stakeholders. Continuing our capital return program, we have declared the dividend payout of US
“Lexin delivered another set of healthy quarterly results, achieving our full-year business goals and marking a year of tangible progress,” stated James Zheng, CFO of Lexin. “The fourth quarter’s total operating revenue reached RMB3.5 billion, with the full year revenue reaching RMB13.1 billion, a
_____________________________
1). The investment related impairment losses were related to the investment and related prepayment for equity interests of a domestic private bank.
Fourth Quarter and Full Year 2023 Operational Highlights:
User Base
- Total number of registered users reached 210 million as of December 31, 2023, representing an increase of
10.9% from 189 million as of December 31, 2022, and users with credit lines reached 42.3 million as of December 31, 2023, up by5.8% from 40.0 million as of December 31, 2022. - Number of active users1 who used our loan products in the fourth quarter of 2023 was 4.7 million, representing a decrease of
10.4% from 5.3 million in the fourth quarter of 2022. Number of active users1 who used our loan products in 2023 was 8.5 million, representing a decrease of12.0% from 9.7 million in 2022. - Number of cumulative borrowers with successful drawdown was 31.5 million as of December 31, 2023, an increase of
6.4% from 29.6 million as of December 31, 2022.
Loan Facilitation Business
- As of December 31, 2023, we cumulatively originated RMB1,113.1 billion in loans, an increase of
28.9% from RMB863.6 billion as of December 31, 2022. - Total loan originations2 in the fourth quarter of 2023 was RMB61.2 billion, an increase of
9.2% from RMB56.1 billion in the fourth quarter of 2022. Total loan originations2 in 2023 was RMB250 billion, an increase of21.9% from RMB205 billion in 2022. - Total outstanding principal balance of loans2 reached RMB124 billion as of December 31, 2023, representing an increase of
24.5% from RMB99.6 billion as of December 31, 2022.
Credit Performance
- 90 day+ delinquency ratio was
2.90% as of December 31, 2023, as compared with2.67% as of September 30, 2023. - First payment default rate (30 day+) for new loan originations was below
1% as of December 31, 2023.
Tech-empowerment Service
- For the fourth quarter of 2023, we served over 80 business customers with our tech-empowerment service.
- In the fourth quarter of 2023, the business customer retention rate3 of our tech-empowerment service was over
85% .
Installment E-commerce Platform Service
- GMV4 in the fourth quarter of 2023 for our installment e-commerce platform service was RMB1,292 million, representing a decrease of
7.2% from RMB1,393 million in the fourth quarter of 2022. Total GMV4 for 2023 was RMB5,289 million, representing an increase of20.5% from RMB4,390 million in 2022. - In the fourth quarter of 2023, our installment e-commerce platform service served over 400,000 users and 400 merchants. In 2023, our installment e-commerce platform service served over 1,144,000 users and 1,000 merchants.
Other Operational Highlights
- The weighted average tenor of loans originated on our platform in the fourth quarter of 2023 was approximately 12.3 months, as compared with 13.9 months in the fourth quarter of 2022. The weighted average tenor of loans originated on our platform in 2023 was approximately 13.8 months, as compared with 13.1 months in 2022.
- Repeated borrowers’ contribution5 of loans across our platform for the fourth quarter of 2023 was
86.1% , for the full year of 2023 was89.3% .
Fourth Quarter 2023 Financial Highlights:
- Total operating revenue was RMB3,509 million, representing an increase of
15.1% from the fourth quarter of 2022. - Credit facilitation service income was RMB2,727 million, representing an increase of
38.9% from the fourth quarter of 2022. Tech-empowerment service income was RMB427 million, representing an increase of3.4% from the fourth quarter of 2022. Installment e-commerce platform service income was RMB356 million, representing a decrease of47.2% from the fourth quarter of 2022. - Net income attributable to ordinary shareholders of the Company was RMB12.1 million, representing a decrease of
96.0% from the fourth quarter of 2022. Net income per ADS attributable to ordinary shareholders of the Company was RMB0.07 on a fully diluted basis. - Adjusted net income attributable to ordinary shareholders of the Company6 was RMB284 million, representing a decrease of
27.3% from the fourth quarter of 2022. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB1.64 on a fully diluted basis.
Full Year 2023 Financial Highlights:
- Total operating revenue was RMB13,057 million, representing an increase of
32.3% from 2022. - Credit facilitation service income was RMB9,666 million, representing an increase of
62.1% from 2022. Tech-empowerment service income was RMB1,640 million, representing a decrease of11.1% from 2022. Installment e-commerce platform service income was RMB1,751 million, representing a decrease of14.9% from 2022. - Net income attributable to ordinary shareholders of the Company was RMB1,066 million, representing an increase of
30.0% from 2022. Net income per ADS attributable to ordinary shareholders of the Company was RMB6.34 on a fully diluted basis. - Adjusted net income attributable to ordinary shareholders of the Company6 was RMB1,485 million, representing an increase of
40.4% from 2022. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB8.26 on a fully diluted basis.
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- 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.
- Repeated borrowers contribution’ for a given period refers to the principal amount of loans borrowed during that period by borrowers who had previously made at least one successful drawdown as a percentage of the total loan facilitation and origination volume through our platform during that period.
- 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 2023 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 decreased by
Tech-empowerment service income increased by
Installment e-commerce platform service income decreased by
Cost of sales decreased by
Funding cost decreased by
Processing and servicing costs increased by
Provision for financing receivables was RMB180 million for the fourth quarter of 2023, as compared to RMB147 million for the fourth quarter of 2022. The increase was primarily due to the decrease in performance of the on-balance sheet loans.
Provision for contract assets and receivables was RMB203 million in the fourth quarter of 2023, as compared to RMB131 million in the fourth quarter of 2022. The increase was primarily due to the increase in loan facilitations and servicing fees and the decrease in performance of the off-balance sheet loans.
Provision for contingent guarantee liabilities was RMB934 million in the fourth quarter of 2023, as compared to RMB459 million in the fourth quarter of 2022. 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, as well as the decrease in performance of the off-balance sheet loans.
Gross profit increased by
Sales and marketing expenses was RMB430 million in the fourth quarter of 2023, as compared to RMB423 million in the fourth quarter of 2022.
Research and development expenses was RMB136 million in the fourth quarter of 2023, as compared to RMB136 million in the fourth quarter of 2022.
General and administrative expenses increased by
Change in fair value of financial guarantee derivatives and loans at fair value was a loss of RMB248 million in the fourth quarter of 2023, as compared to a gain of RMB33.2 million in the fourth quarter of 2022. The change in fair value 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, partially offset by the fair value gains realized as a result of the release of guarantee obligation.
Investment loss was RMB302 million in the fourth quarter of 2023, as compared to RMB38.4 million in the fourth quarter of 2022. The increase was primarily due to investment related impairment losses recognized in the fourth quarter of 2023 for investment and related prepayment for equity interest in a domestic private bank.
Income tax benefit is RMB9.7 million in the fourth quarter of 2023 compared to income tax expense of RMB72.3 million in the fourth quarter of 2022. The change was primarily due to the decrease of income before income tax expense and the remeasurement of full year effective tax rate in the fourth quarter of 2023.
Net income decreased by
Full Year 2023 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 decreased by
Cost of sales decreased by
Funding cost was RMB514 million in 2023, as compared to RMB518 million in 2022.
Processing and servicing costs was RMB1,935 million in 2023, as compared to RMB1,875 million in 2022.
Provision for financing receivables was RMB627 million for 2023, as compared to RMB437 million for 2022. The increase was primarily due to the decrease in performance of the on-balance sheet loans.
Provision for contract assets and receivables was RMB629 million in 2023, as compared to RMB465 million in 2022. The increase was primarily due to the increase in loan facilitations and servicing fees and the decrease in performance of the off-balance sheet loans.
Provision for contingent guarantee liabilities was RMB3,203 million in 2023, as compared to RMB1,468 million in 2022. 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, as well as the decrease in performance of the off-balance sheet loans.
Gross profit increased by
Sales and marketing expenses was RMB1,733 million in 2023, as compared to RMB1,685 million in 2022.
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 loss of RMB206 million in 2023, as compared to a gain of RMB722 million in 2022. The change in fair value 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, partially offset by the fair value gains realized as a result of the release of guarantee obligation.
Investment loss was RMB303 million in 2023, as compared to RMB33.9 million in 2022. The increase was primarily due to investment related impairment losses recognized in the fourth quarter of 2023 for investment and related prepayment for equity interest in a domestic private bank.
Income tax expense increased by
Net income increased by
Recent development
Semi-Annual Dividend
The board of directors of the Company has approved a dividend of US
Change of Board Composition
The Company is also pleased to announce that its board of directors appointed Mr. Zhanwen Qiao, the Chief Risk Officer of the Company, as a new director of the Company, effective on March 20, 2024. Mr. Suining Xiao, as an appointee from PAG, has tendered his resignation as a director of the Company effective on April 20, 2024, since by then the Company will have fully paid off the convertible senior notes with PAG.
Outlook
Based on the Company’s preliminary assessment of the current market conditions and the prudent business approach due to the weak consumption recovery, the company expects the annual GMV amount for the full year 2024 to be no less than that of 2023 as the Company remains focused on the enhancement of risk management as the top priority.
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 10:00 PM U.S. Eastern time on March 20, 2024 (10:00 AM Beijing/Hong Kong time on March 21, 2024).
Participants who wish to join the conference call should register online at:
https://register.vevent.com/register/BIb8c0d6de499a4b8994868f39fd1617fa
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 RMB7.0999 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 the 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:
Mandy Dong
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: Mandydong@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, 2022 | December 31, 2023 | |||||||
| RMB | RMB | US$ | |||||||
| ASSETS | |||||||||
| Current Assets | |||||||||
| Cash and cash equivalents | 1,494,150 | 2,624,719 | 369,684 | ||||||
| Restricted cash | 1,267,512 | 1,433,502 | 201,905 | ||||||
| Restricted term deposit and short-term investments | 1,331,858 | 305,182 | 42,984 | ||||||
| Short-term financing receivables, net(1) | 6,397,920 | 3,944,000 | 555,501 | ||||||
| Short-term contract assets and receivables, net(1) | 3,894,175 | 6,112,981 | 860,995 | ||||||
| Deposits to insurance companies and guarantee companies | 2,249,022 | 2,613,271 | 368,072 | ||||||
| Prepayments and other current assets | 1,086,952 | 1,428,769 | 201,238 | ||||||
| Amounts due from related parties | 6,602 | 6,989 | 984 | ||||||
| Inventories, net | 53,917 | 33,605 | 4,733 | ||||||
| Total Current Assets | 17,782,108 | 18,503,018 | 2,606,096 | ||||||
| Non-current Assets | |||||||||
| Restricted cash | 168,521 | 144,948 | 20,415 | ||||||
| Long-term financing receivables, net(1) | 460,325 | 200,514 | 28,242 | ||||||
| Long-term contract assets and receivables, net(1) | 605,051 | 599,818 | 84,483 | ||||||
| Property, equipment and software, net | 284,593 | 446,640 | 62,908 | ||||||
| Land use rights, net | 931,667 | 897,267 | 126,377 | ||||||
| Long‑term investments | 348,376 | 255,003 | 35,916 | ||||||
| Deferred tax assets | 1,141,761 | 1,232,092 | 173,537 | ||||||
| Other assets | 1,048,301 | 861,491 | 121,338 | ||||||
| Total Non-current Assets | 4,988,595 | 4,637,773 | 653,216 | ||||||
| TOTAL ASSETS | 22,770,703 | 23,140,791 | 3,259,312 | ||||||
| LIABILITIES | |||||||||
| Current liabilities | |||||||||
| Accounts payable | 25,970 | 49,801 | 7,014 | ||||||
| Amounts due to related parties | 4,669 | 2,958 | 417 | ||||||
| Short‑term borrowings | 1,168,046 | 502,013 | 70,707 | ||||||
| Short‑term funding debts | 4,385,253 | 3,483,196 | 490,598 | ||||||
| Deferred guarantee income | 894,858 | 1,538,385 | 216,677 | ||||||
| Contingent guarantee liabilities | 882,107 | 1,808,540 | 254,728 | ||||||
| Accruals and other current liabilities | 3,057,469 | 4,434,254 | 624,552 | ||||||
| Convertible notes | 2,063,545 | 505,450 | 71,191 | ||||||
| Total Current Liabilities | 12,481,917 | 12,324,597 | 1,735,884 | ||||||
| Non-current Liabilities | |||||||||
| Long-term borrowings | 150,430 | 524,270 | 73,842 | ||||||
| Long‑term funding debts | 1,334,105 | 455,800 | 64,198 | ||||||
| Deferred tax liabilities | 52,559 | 75,340 | 10,611 | ||||||
| Other long-term liabilities | 102,941 | 50,702 | 7,141 | ||||||
| Total Non-current Liabilities | 1,640,035 | 1,106,112 | 155,792 | ||||||
| TOTAL LIABILITIES | 14,121,952 | 13,430,709 | 1,891,676 | ||||||
| Shareholders’ equity: | |||||||||
| Class A Ordinary Shares | 191 | 199 | 30 | ||||||
| Class B Ordinary Shares | 47 | 41 | 7 | ||||||
| Treasury stock | (328,764 | ) | (328,764 | ) | (46,305 | ) | |||
| Additional paid-in capital | 3,081,254 | 3,204,961 | 451,406 | ||||||
| Statutory reserves | 1,022,592 | 1,106,579 | 155,858 | ||||||
| Accumulated other comprehensive income | (20,842 | ) | (13,545 | ) | (1,908 | ) | |||
| Retained earnings | 4,894,273 | 5,740,611 | 808,548 | ||||||
| Total shareholders’ equity | 8,648,751 | 9,710,082 | 1,367,636 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 22,770,703 | 23,140,791 | 3,259,312 | ||||||
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| (1) | Short-term financing receivables, net of allowance for credit losses of RMB184,187 and RMB58,594 as of December 31, 2022 and December 31, 2023, respectively. |
| Short-term contract assets and receivables, net of allowance for credit losses of RMB216,850 and RMB436,136 as of December 31, 2022 and December 31, 2023, respectively. | |
| Long-term financing receivables, net of allowance for credit losses of RMB13,220 and RMB3,087 as of December 31, 2022 and December 31, 2023, respectively. | |
| Long-term contract assets and receivables, net of allowance for credit losses of RMB52,742 and RMB61,838 as of December 31, 2022 and December 31, 2023, respectively. |
| 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) | 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Operating revenue: | |||||||||||||||||||
| Credit facilitation service income | 1,963,503 | 2,727,020 | 384,093 | 5,963,803 | 9,666,120 | 1,361,445 | |||||||||||||
| Loan facilitation and servicing fees-credit oriented | 849,240 | 1,558,588 | 219,523 | 2,486,527 | 5,001,881 | 704,500 | |||||||||||||
| Guarantee income | 499,662 | 709,422 | 99,920 | 1,453,180 | 2,519,284 | 354,834 | |||||||||||||
| Financing income | 614,601 | 459,010 | 64,650 | 2,024,096 | 2,144,955 | 302,111 | |||||||||||||
| Tech-empowerment service income | 412,769 | 426,882 | 60,125 | 1,845,943 | 1,640,453 | 231,053 | |||||||||||||
| Installment e-commerce platform service income | 673,994 | 355,534 | 50,076 | 2,056,065 | 1,750,509 | 246,554 | |||||||||||||
| Total operating revenue | 3,050,266 | 3,509,436 | 494,294 | 9,865,811 | 13,057,082 | 1,839,052 | |||||||||||||
| Operating cost | |||||||||||||||||||
| Cost of sales | (656,539 | ) | (344,088 | ) | (48,464 | ) | (2,066,804 | ) | (1,635,635 | ) | (230,374 | ) | |||||||
| Funding cost | (146,375 | ) | (76,195 | ) | (10,732 | ) | (518,069 | ) | (513,869 | ) | (72,377 | ) | |||||||
| Processing and servicing cost | (466,935 | ) | (514,070 | ) | (72,405 | ) | (1,875,292 | ) | (1,935,016 | ) | (272,541 | ) | |||||||
| Provision for financing receivables | (146,515 | ) | (180,475 | ) | (25,419 | ) | (437,477 | ) | (627,061 | ) | (88,320 | ) | |||||||
| Provision for contract assets and receivables | (131,292 | ) | (202,677 | ) | (28,546 | ) | (465,188 | ) | (629,308 | ) | (88,636 | ) | |||||||
| Provision for contingent guarantee liabilities | (459,252 | ) | (933,854 | ) | (131,531 | ) | (1,468,265 | ) | (3,203,123 | ) | (451,150 | ) | |||||||
| Total operating cost | (2,006,908 | ) | (2,251,359 | ) | (317,097 | ) | (6,831,095 | ) | (8,544,012 | ) | (1,203,398 | ) | |||||||
| Gross profit | 1,043,358 | 1,258,077 | 177,197 | 3,034,716 | 4,513,070 | 635,654 | |||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing expenses | (422,997 | ) | (429,573 | ) | (60,504 | ) | (1,685,438 | ) | (1,733,301 | ) | (244,130 | ) | |||||||
| Research and development expenses | (135,665 | ) | (135,837 | ) | (19,132 | ) | (583,260 | ) | (513,284 | ) | (72,295 | ) | |||||||
| General and administrative expenses | (97,058 | ) | (108,305 | ) | (15,254 | ) | (431,571 | ) | (387,387 | ) | (54,562 | ) | |||||||
| Total operating expenses | (655,720 | ) | (673,715 | ) | (94,890 | ) | (2,700,269 | ) | (2,633,972 | ) | (370,987 | ) | |||||||
| Change in fair value of financial guarantee derivatives and loans at fair value | 33,185 | (247,526 | ) | (34,863 | ) | 722,381 | (206,368 | ) | (29,066 | ) | |||||||||
| Interest expense, net | (8,187 | ) | (10,245 | ) | (1,443 | ) | (55,636 | ) | (50,483 | ) | (7,110 | ) | |||||||
| Investment loss | (38,423 | ) | (302,128 | ) | (42,554 | ) | (33,944 | ) | (303,235 | ) | (42,710 | ) | |||||||
| Others, net | (608 | ) | (22,092 | ) | (3,112 | ) | 61,321 | 7,774 | 1,095 | ||||||||||
| Income before income tax expense | 373,605 | 2,371 | 335 | 1,028,569 | 1,326,786 | 186,876 | |||||||||||||
| Income tax (expense)/benefit | (72,302 | ) | 9,726 | 1,370 | (202,640 | ) | (260,841 | ) | (36,739 | ) | |||||||||
| Net income | 301,303 | 12,097 | 1,705 | 825,929 | 1,065,945 | 150,137 | |||||||||||||
| Less: net (loss)/ income attributable to non-controlling interests | (113 | ) | - | - | 6,177 | - | - | ||||||||||||
| Net income attributable to ordinary shareholders of the Company | 301,416 | 12,097 | 1,705 | 819,752 | 1,065,945 | 150,137 | |||||||||||||
| Net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||||||||||
| Basic | 0.92 | 0.04 | 0.01 | 2.36 | 3.24 | 0.46 | |||||||||||||
| Diluted | 0.84 | 0.04 | 0.01 | 2.21 | 3.17 | 0.45 | |||||||||||||
| Net income per ADS attributable to ordinary shareholders of the Company | |||||||||||||||||||
| Basic | 1.84 | 0.07 | 0.01 | 4.71 | 6.49 | 0.91 | |||||||||||||
| Diluted | 1.68 | 0.07 | 0.01 | 4.41 | 6.34 | 0.89 | |||||||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||||
| Basic | 328,034,709 | 329,297,640 | 329,297,640 | 348,048,245 | 328,523,952 | 328,523,952 | |||||||||||||
| Diluted | 372,659,684 | 331,941,385 | 331,941,385 | 392,756,821 | 359,820,982 | 359,820,982 | |||||||||||||
| 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) | 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Net income | 301,303 | 12,097 | 1,705 | 825,929 | 1,065,945 | 150,137 | |||||||||||||
| Other comprehensive income | |||||||||||||||||||
| Foreign currency translation adjustment, net of nil tax | 12,662 | 27,841 | 3,921 | (32,115 | ) | 7,297 | 1,028 | ||||||||||||
| Total comprehensive income | 313,965 | 39,938 | 5,626 | 793,814 | 1,073,242 | 151,165 | |||||||||||||
| Less: net (loss)/ income attributable to non-controlling interests | (113 | ) | - | - | 6,177 | - | - | ||||||||||||
| Total comprehensive income attributable to ordinary shareholders of the Company | 314,078 | 39,938 | 5,626 | 787,637 | 1,073,242 | 151,165 | |||||||||||||
| 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, except for share and per share data) | 2022 | 2023 | 2022 | 2023 | |||||||||||||||
| 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 | 301,416 | 12,097 | 1,705 | 819,752 | 1,065,945 | 150,137 | |||||||||||||
| Add: Share-based compensation expenses | 36,539 | 32,959 | 4,642 | 156,320 | 117,852 | 16,599 | |||||||||||||
| Interest expense associated with convertible notes | 12,449 | 11,943 | 1,682 | 46,903 | 73,807 | 10,395 | |||||||||||||
| Investment loss | 38,423 | 302,128 | 42,554 | 33,944 | 303,235 | 42,710 | |||||||||||||
| Tax effects on Non-GAAP adjustments(2) | 1,231 | (75,440 | ) | (10,625 | ) | 1,231 | (75,440 | ) | (10,625 | ) | |||||||||
| Adjusted net income attributable to ordinary shareholders of the Company | 390,058 | 283,687 | 39,958 | 1,058,150 | 1,485,399 | 209,216 | |||||||||||||
| Adjusted net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||||||||||
| Basic | 1.19 | 0.86 | 0.12 | 3.04 | 4.52 | 0.64 | |||||||||||||
| Diluted | 1.05 | 0.82 | 0.12 | 2.69 | 4.13 | 0.58 | |||||||||||||
| Adjusted net income per ADS attributable to ordinary shareholders of the Company | |||||||||||||||||||
| Basic | 2.38 | 1.72 | 0.24 | 6.08 | 9.04 | 1.27 | |||||||||||||
| Diluted | 2.09 | 1.64 | 0.23 | 5.39 | 8.26 | 1.16 | |||||||||||||
| weighted average shares used in calculating net income per ordinary share for non-GAAP EPS | |||||||||||||||||||
| Basic | 328,034,709 | 329,297,640 | 329,297,640 | 348,048,245 | 328,523,952 | 328,523,952 | |||||||||||||
| Diluted | 372,659,684 | 345,913,435 | 345,913,435 | 392,756,821 | 359,820,982 | 359,820,982 | |||||||||||||
| Reconciliations of Non-GAAP EBIT to Net income | |||||||||||||||||||
| Net income | 301,303 | 12,097 | 1,705 | 825,929 | 1,065,945 | 150,137 | |||||||||||||
| Add: Income tax expense | 72,302 | (9,726 | ) | (1,370 | ) | 202,640 | 260,841 | 36,739 | |||||||||||
| Share-based compensation expenses | 36,539 | 32,959 | 4,642 | 156,320 | 117,852 | 16,599 | |||||||||||||
| Interest expense, net | 8,187 | 10,245 | 1,443 | 55,636 | 50,483 | 7,110 | |||||||||||||
| Investment loss | 38,423 | 302,128 | 42,554 | 33,944 | 303,235 | 42,710 | |||||||||||||
| Non-GAAP EBIT | 456,754 | 347,703 | 48,974 | 1,274,469 | 1,798,356 | 253,295 | |||||||||||||
__________________________
(2) To exclude the tax effects related to the investment loss
Additional Credit Information
Vintage Charge Off Curve
Dpd30+/GMV by Performance Windows
First Payment Default 30+
FAQ
What was Lexin's total loan origination for the fourth quarter of 2023?
What was the outstanding loan balance for Lexin as of December 31, 2023?
What was Lexin's total operating revenue for the fourth quarter of 2023?
What was the net profit for Lexin in the fourth quarter of 2023?
How many business customers did Lexin serve with its tech-empowerment service in the fourth quarter of 2023?
What was Lexin's 90-day delinquency ratio as of December 31, 2023?
What are Lexin's plans for 2024?
