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“Lexin reported total loan originations of
“In the past quarter, we continued to focus on our core strategies: enhancing risk management capabilities, attracting higher-quality customer cohorts, refining operations, and implementing cost-effective initiatives. These efforts have yielded in an improved customer base, increased user acquisition efficiency, an optimized funding structure, and a refined portfolio tenure structure.”
“Looking forward, we remain vigilant and are taking all necessary measures to safeguard our asset quality. We continue to be committed to prudently balancing growth with risks and cautiously navigating uncertainties. At the same time, we are pivoting by steadfastly pursuing our strategic goals,” added
“Our financial results for the third quarter were robust, keeping us on a path of recovery and growth,” stated
Third Quarter 2023 Operational Highlights:
User Base
- Total number of registered users reached 204 million as of
September 30, 2023 , representing an increase of 11.3% from 184 million as ofSeptember 30, 2022 , and users with credit lines reached 41.6 million as ofSeptember 30, 2023 , up by 5.3% from 39.5 million as ofSeptember 30, 2022 . - Number of active users1 who used our loan products in the third quarter of 2023 was 4.9 million, representing a decrease of 13.6% from 5.6 million in the third quarter of 2022.
- Number of cumulative borrowers with successful drawdown was 30.9 million as of
September 30, 2023 , an increase of 5.8% from 29.2 million as ofSeptember 30, 2022 .
Loan Facilitation Business
- As of
September 30, 2023 , we cumulatively originatedRMB1,050.7 billion in loans, an increase of 30.1% fromRMB807.5 billion a year ago. - Total loan originations2 in the third quarter of 2023 was
RMB63.3 billion , an increase of 12.7% fromRMB56.2 billion in the third quarter of 2022. - Total outstanding principal balance of loans2 reached
RMB121 billion as ofSeptember 30, 2023 , representing an increase of 27.7% fromRMB94.6 billion as ofSeptember 30, 2022 .
Credit Performance
- 90 day+ delinquency ratio was 2.67% as of
September 30, 2023 , as compared with 2.59% as ofJune 30, 2023 . - First payment default rate (30 day+) for new loan originations was below 1% as of
September 30, 2023 .
Tech-empowerment Service
- For the third quarter of 2023, we served over 90 business customers with our tech-empowerment service.
- In the third quarter of 2023, the business customer retention rate3 of our tech-empowerment service was over 85%.
Installment E-commerce Platform Service
- GMV4 in the third quarter of 2023 for our installment e-commerce platform service was
RMB1,381 million , representing an increase of 12.8% fromRMB1,224 million in the third quarter of 2022. - In the third quarter of 2023, our installment e-commerce platform service served over 400,000 users and 400 merchants.
Other Operational Highlights
- The weighted average tenor of loans originated on our platform in the third quarter of 2023 was approximately 13.1 months, as compared with 13.8 months in the third quarter of 2022.
- Repeated borrowers’ contribution5 of loans across our platform for the third quarter of 2023 was 90.1%.
Third Quarter 2023 Financial Highlights:
- Total operating revenue was
RMB3,509 million , representing an increase of 30.4% from the third quarter of 2022. - Credit facilitation service income was
RMB2,686 million , representing an increase of 61.2% from the third quarter of 2022. Tech-empowerment service income wasRMB454 million , representing a decrease of 9.2% from the third quarter of 2022. Installment e-commerce platform service income wasRMB369 million , representing a decrease of 29.6% from the third quarter of 2022. - Net income attributable to ordinary shareholders of the Company was
RMB371 million , representing an increase of 34.5% from the third quarter of 2022. Net income per ADS attributable to ordinary shareholders of the Company wasRMB2.20 on a fully diluted basis. - Adjusted net income attributable to ordinary shareholders of the Company6 was
RMB417 million , representing an increase of 26.2% from the third quarter of 2022. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 wasRMB2.35 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.
- 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.
Third Quarter 2023 Financial Results:
Operating revenue increased by 30.4% from
Credit facilitation service income increased by 61.2% from
Loan facilitation and servicing fees-credit oriented increased by 115% from
Guarantee income increased by 55.8% from
Financing income decreased by 5.2% from
Tech-empowerment service income decreased by 9.2% from
Installment e-commerce platform service income decreased by 29.6% from
Cost of sales decreased by 32.2% from
Funding cost decreased by 12.0% from
Processing and servicing costs decreased by 5.6% from
Provision for financing receivables was
Provision for contract assets and receivables was
Provision for contingent guarantee liabilities was
Gross profit increased by 51.2% from
Sales and marketing expenses decreased by 3.3% from
Research and development expenses decreased by 9.9% from
General and administrative expenses decreased by 18.1% from
Change in fair value of financial guarantee derivatives and loans at fair value was a loss of
Income tax expense increased by 63.0% from
Net income increased by 34.4% from
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 reaffirms the earlier guidance of annual GMV amount of
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
Participants who wish to join the conference call should register online at:
https://register.vevent.com/register/BI2c6fa8eac52f4506a481efaf8b7d10f7
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
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
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)/income. 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)/income. 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
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)/income 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
Exchange Rate Information Statement
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
For investor and media inquiries, please contact:
IR inquiries:
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: Mandydong@lexin.com
Media inquiries:
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: liminchen@lexin.com
SOURCE
Unaudited Condensed Consolidated Balance Sheets |
|||||||||
As of | |||||||||
(In thousands) | |||||||||
RMB | RMB | US$ | |||||||
ASSETS | |||||||||
Current Assets | |||||||||
Cash and cash equivalents | 1,494,150 | 2,527,065 | 346,363 | ||||||
Restricted cash | 1,267,512 | 1,502,659 | 205,957 | ||||||
Restricted term deposit and short-term investments | 1,331,858 | 804,439 | 110,258 | ||||||
Short-term financing receivables, net(1)(2) | 6,397,920 | 4,295,020 | 588,681 | ||||||
Short-term contract assets and receivables, net(1)(2) | 3,894,175 | 5,531,882 | 758,208 | ||||||
Deposits to insurance companies and guarantee companies | 2,249,022 | 2,406,041 | 329,775 | ||||||
Prepayments and other current assets(2) | 1,086,952 | 1,447,589 | 198,409 | ||||||
Amounts due from related parties | 6,602 | 7,143 | 979 | ||||||
Inventories, net | 53,917 | 57,284 | 7,851 | ||||||
Total Current Assets | 17,782,108 | 18,579,122 | 2,546,481 | ||||||
Non-current Assets | |||||||||
Restricted cash | 168,521 | 144,728 | 19,837 | ||||||
Long-term financing receivables, net(1) | 460,325 | 302,201 | 41,420 | ||||||
Long-term contract assets and receivables, net(1)(2) | 605,051 | 682,044 | 93,482 | ||||||
Property, equipment and software, net | 284,593 | 428,024 | 58,666 | ||||||
Land use rights, net | 931,667 | 905,867 | 124,159 | ||||||
Long‑term investments | 348,376 | 348,065 | 47,706 | ||||||
Deferred tax assets | 1,141,761 | 1,155,109 | 158,321 | ||||||
Other assets | 1,048,301 | 1,162,690 | 159,360 | ||||||
Total Non-current Assets | 4,988,595 | 5,128,728 | 702,951 | ||||||
TOTAL ASSETS | 22,770,703 | 23,707,850 | 3,249,432 | ||||||
LIABILITIES | |||||||||
Current liabilities | |||||||||
Accounts payable | 25,970 | 14,533 | 1,992 | ||||||
Amounts due to related parties | 4,669 | 2,521 | 346 | ||||||
Short‑term borrowings | 1,168,046 | 814,923 | 111,694 | ||||||
Short‑term funding debts | 4,385,253 | 3,726,246 | 510,725 | ||||||
Deferred guarantee income | 894,858 | 1,477,746 | 202,542 | ||||||
Contingent guarantee liabilities | 882,107 | 1,630,413 | 223,467 | ||||||
Accruals and other current liabilities(2) | 3,057,469 | 4,044,360 | 554,326 | ||||||
Convertible notes | 2,063,545 | 905,676 | 124,133 | ||||||
Total Current Liabilities | 12,481,917 | 12,616,418 | 1,729,225 | ||||||
Non-current Liabilities | |||||||||
Long-term borrowings | 150,430 | 524,270 | 71,857 | ||||||
Long‑term funding debts | 1,334,105 | 676,076 | 92,664 | ||||||
Deferred tax liabilities | 52,559 | 68,140 | 9,339 | ||||||
Other long-term liabilities | 102,941 | 51,043 | 6,996 | ||||||
Total Non-current Liabilities | 1,640,035 | 1,319,529 | 180,856 | ||||||
TOTAL LIABILITIES | 14,121,952 | 13,935,947 | 1,910,081 | ||||||
Shareholders’ equity: | |||||||||
Class A Ordinary Shares | 191 | 192 | 29 | ||||||
Class B Ordinary Shares | 47 | 47 | 8 | ||||||
(328,764 | ) | (328,764 | ) | (45,061 | ) | ||||
Additional paid-in capital | 3,081,254 | 3,171,101 | 434,631 | ||||||
Statutory reserves | 1,022,592 | 1,022,592 | 140,158 | ||||||
Accumulated other comprehensive income | (20,842 | ) | (41,386 | ) | (5,672 | ) | |||
Retained earnings | 4,894,273 | 5,948,121 | 815,258 | ||||||
Total shareholders’ equity | 8,648,751 | 9,771,903 | 1,339,351 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 22,770,703 | 23,707,850 | 3,249,432 |
__________________________
(1) | Short-term financing receivables, net of allowance for credit losses of |
Short-term contract assets and receivables, net of allowance for credit losses of |
|
Long-term financing receivables, net of allowance for credit losses of |
|
Long-term contract assets and receivables, net of allowance for credit losses of |
|
(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. |
Unaudited Condensed Consolidated Statements of Operations |
|||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
(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(3) | 1,665,652 | 2,685,574 | 368,089 | 4,000,300 | 6,939,100 | 951,083 | |||||||
Loan facilitation and servicing fees-credit oriented | 714,102 | 1,533,203 | 210,143 | 1,637,287 | 3,443,293 | 471,943 | |||||||
Guarantee income | 409,842 | 638,595 | 87,527 | 953,518 | 1,809,862 | 248,062 | |||||||
Financing income(3) | 541,708 | 513,776 | 70,419 | 1,409,495 | 1,685,945 | 231,078 | |||||||
Tech-empowerment service income(3) | 499,699 | 453,944 | 62,218 | 1,433,174 | 1,213,571 | 166,334 | |||||||
Installment e-commerce platform service income(3) | 524,986 | 369,417 | 50,633 | 1,382,071 | 1,394,975 | 191,197 | |||||||
Total operating revenue | 2,690,337 | 3,508,935 | 480,940 | 6,815,545 | 9,547,646 | 1,308,614 | |||||||
Operating cost | |||||||||||||
Cost of sales | (530,685 | ) | (359,683 | ) | (49,299 | ) | (1,410,265 | ) | (1,291,547 | ) | (177,021 | ) | |
Funding cost | (149,545 | ) | (131,640 | ) | (18,043 | ) | (371,694 | ) | (437,674 | ) | (59,988 | ) | |
Processing and servicing cost | (472,261 | ) | (445,845 | ) | (61,108 | ) | (1,408,357 | ) | (1,420,946 | ) | (194,757 | ) | |
Provision for financing receivables | (126,214 | ) | (161,807 | ) | (22,177 | ) | (290,962 | ) | (446,586 | ) | (61,210 | ) | |
Provision for contract assets and receivables | (132,678 | ) | (159,443 | ) | (21,853 | ) | (333,896 | ) | (426,631 | ) | (58,475 | ) | |
Provision for contingent guarantee liabilities | (381,697 | ) | (894,174 | ) | (122,557 | ) | (1,009,013 | ) | (2,269,269 | ) | (311,029 | ) | |
Total operating cost | (1,793,080 | ) | (2,152,592 | ) | (295,037 | ) | (4,824,187 | ) | (6,292,653 | ) | (862,480 | ) | |
Gross profit | 897,257 | 1,356,343 | 185,903 | 1,991,358 | 3,254,993 | 446,134 | |||||||
Operating expenses: | |||||||||||||
Sales and marketing expenses | (424,544 | ) | (410,651 | ) | (56,284 | ) | (1,262,441 | ) | (1,303,728 | ) | (178,691 | ) | |
Research and development expenses | (140,560 | ) | (126,582 | ) | (17,350 | ) | (447,595 | ) | (377,447 | ) | (51,733 | ) | |
General and administrative expenses | (104,389 | ) | (85,526 | ) | (11,722 | ) | (334,513 | ) | (279,082 | ) | (38,251 | ) | |
Total operating expenses | (669,493 | ) | (622,759 | ) | (85,356 | ) | (2,044,549 | ) | (1,960,257 | ) | (268,675 | ) | |
Change in fair value of financial guarantee derivatives and loans at fair value | 121,776 | (245,568 | ) | (33,658 | ) | 689,196 | 41,158 | 5,641 | |||||
Interest expense, net | (16,202 | ) | (14,354 | ) | (1,967 | ) | (47,449 | ) | (40,238 | ) | (5,515 | ) | |
Investment (loss)/income | (3,027 | ) | (568 | ) | (78 | ) | 4,479 | (1,107 | ) | (152 | ) | ||
Others, net | 16,210 | 13,010 | 1,783 | 61,929 | 29,866 | 4,093 | |||||||
Income before income tax expense | 346,521 | 486,104 | 66,627 | 654,964 | 1,324,415 | 181,526 | |||||||
Income tax expense | (70,828 | ) | (115,479 | ) | (15,828 | ) | (130,338 | ) | (270,567 | ) | (37,084 | ) | |
Net income | 275,693 | 370,625 | 50,799 | 524,626 | 1,053,848 | 144,442 | |||||||
Less: net income attributable to non-controlling interests | 231 | - | - | 6,290 | - | - | |||||||
Net income attributable to ordinary shareholders of the Company | 275,462 | 370,625 | 50,799 | 518,336 | 1,053,848 | 144,442 | |||||||
Net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||||
Basic | 0.82 | 1.13 | 0.15 | 1.49 | 3.21 | 0.44 | |||||||
Diluted | 0.75 | 1.10 | 0.15 | 1.40 | 3.06 | 0.42 | |||||||
Net income per ADS attributable to ordinary shareholders of the Company | |||||||||||||
Basic | 1.64 | 2.25 | 0.31 | 2.97 | 6.42 | 0.88 | |||||||
Diluted | 1.51 | 2.20 | 0.30 | 2.81 | 6.12 | 0.84 | |||||||
Weighted average ordinary shares outstanding | |||||||||||||
Basic | 336,900,544 | 328,993,585 | 328,993,585 | 348,868,793 | 328,524,266 | 328,524,266 | |||||||
Diluted | 381,524,186 | 355,221,352 | 355,221,352 | 393,605,236 | 364,767,295 | 364,767,295 |
__________________________
(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. |
Unaudited Condensed Consolidated Statements of Comprehensive Income |
||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||
(In thousands) | 2022 | 2023 | 2022 | 2023 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net income | 275,693 | 370,625 | 50,799 | 524,626 | 1,053,848 | 144,442 | ||||||
Other comprehensive income | ||||||||||||
Foreign currency translation adjustment, net of nil tax | (25,170 | ) | 38 | 5 | (44,777 | ) | (20,544 | ) | (2,816 | ) | ||
Total comprehensive income | 250,523 | 370,663 | 50,804 | 479,849 | 1,033,304 | 141,626 | ||||||
Less: net income attributable to non-controlling interests | 231 | - | - | 6,290 | - | - | ||||||
Total comprehensive income attributable to ordinary shareholders of the Company | 250,292 | 370,663 | 50,804 | 473,559 | 1,033,304 | 141,626 |
Unaudited Reconciliations of GAAP and Non-GAAP Results |
|||||||||||
For the Three Months Ended |
For the Nine Months Ended |
||||||||||
(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 | 275,462 | 370,625 | 50,799 | 518,336 | 1,053,848 | 144,442 | |||||
Add: Share-based compensation expenses | 39,963 | 26,237 | 3,596 | 119,781 | 84,893 | 11,636 | |||||
Interest expense associated with convertible notes | 12,044 | 19,791 | 2,713 | 34,454 | 61,864 | 8,479 | |||||
Investment loss/(income) | 3,027 | 568 | 78 | (4,479 | ) | 1,107 | 152 | ||||
Adjusted net income attributable to ordinary shareholders of the Company | 330,496 | 417,221 | 57,186 | 668,092 | 1,201,712 | 164,709 | |||||
Adjusted net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||
Basic | 0.98 | 1.27 | 0.17 | 1.92 | 3.66 | 0.50 | |||||
Diluted | 0.87 | 1.17 | 0.16 | 1.70 | 3.29 | 0.45 | |||||
Adjusted net income per ADS attributable to ordinary shareholders of the Company | |||||||||||
Basic | 1.96 | 2.54 | 0.35 | 3.83 | 7.32 | 1.00 | |||||
Diluted | 1.73 | 2.35 | 0.32 | 3.39 | 6.59 | 0.90 | |||||
Weighted average number of ordinary shares outstanding attributable to ordinary shareholders of the Company | |||||||||||
Basic | 336,900,544 | 328,993,585 | 328,993,585 | 348,868,793 | 328,524,266 | 328,524,266 | |||||
Diluted | 381,524,186 | 355,221,352 | 355,221,352 | 393,605,236 | 364,767,295 | 364,767,295 | |||||
Reconciliations of Non-GAAP EBIT to Net income | |||||||||||
Net income | 275,693 | 370,625 | 50,799 | 524,626 | 1,053,848 | 144,442 | |||||
Add: Income tax expense | 70,828 | 115,479 | 15,828 | 130,338 | 270,567 | 37,084 | |||||
Share-based compensation expenses | 39,963 | 26,237 | 3,596 | 119,781 | 84,893 | 11,636 | |||||
Interest expense, net | 16,202 | 14,354 | 1,967 | 47,449 | 40,238 | 5,515 | |||||
Investment loss/(income) | 3,027 | 568 | 78 | (4,479 | ) | 1,107 | 152 | ||||
Non-GAAP EBIT | 405,713 | 527,263 | 72,268 | 817,715 | 1,450,653 | 198,829 |
Additional Credit Information
Vintage Charge Off Curve
Dpd30+/GMV by Performance Windows
First Payment Default 30+
Source: LexinFintech Holdings Ltd.