UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2022

Commission File Number: 001-38328

 

LexinFintech Holdings Ltd.

 

27/F CES Tower

No. 3099 Keyuan South Road

Nanshan District, Shenzhen 518052

The People's Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ___X____ Form 40-F _________

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

LexinFintech Holdings Ltd.
By		/s/ Sunny Rui Sun
Name:		Sunny Rui Sun
Title:		Chief Financial Officer

 

Date: May 31, 2022

 

 

 

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Exhibit Index

Exhibit 99.1—Press Release

 

 

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Exhibit 99.1

LexinFintech Holdings Ltd. Reports First Quarter 2022

Unaudited Financial Results

SHENZHEN, China, May 30, 2022 (GLOBE NEWSWIRE)/-- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online and offline consumption platform and a technology-driven service provider in China, today announced its unaudited financial results for the quarter ended March 31, 2022.

First Quarter 2022 Operational Highlights:

User base

Loan facilitation business

Credit performance

Technology-Driven Platform Services

New Consumption-Driven, Location-Based Services

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Other operational highlights

First Quarter 2022 Financial Highlights:

First Quarter 2022 Financial Results:

Operating revenue decreased from RMB2,944 million in the first quarter of 2021 to RMB1,712 million in the first quarter of 2022. This decrease in operating revenue was due to the decrease in revenues from new consumption-driven, location-based services, technology-driven platform services and credit-driven platform services for the quarter.

Revenue from new consumption-driven, location-based services decreased by 26.2% from RMB432 million in the first quarter of 2021 to RMB319 million in the first quarter of 2022. The decrease was primarily due to the lower consumption desired under the impact of the COVID-19.

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Revenue from technology-driven platform services decreased by 26.3% from RMB675 million in the first quarter of 2021 to RMB497 million in the first quarter of 2022. This decrease was primarily due to a decrease from profit sharing model service within technology-driven platform services with the decrease of transaction volume in the first quarter of 2022.

Revenue from credit-driven platform services decreased by 51.2% from RMB1,837 million in the first quarter of 2021 to RMB896 million in the first quarter of 2022. The decrease was primarily due to the decrease of loan facilitation and servicing fees-credit oriented and interest and financial services income and other revenues.

Loan facilitation and servicing fees-credit oriented decreased by 75.9% from RMB1,060 million in the first quarter of 2021 to RMB256 million in the first quarter of 2022. This decrease was primarily due to a decrease in the nominal APR and an increase of guarantee obligation with the increasing credit risk in the first quarter of 2022, which resulted in the decrease in considerations for revenue from loan facilitation and servicing fees-credit oriented.

 

Interest and financial services income and other revenues decreased by 28.6% from RMB542 million in the first quarter of 2021 to RMB387 million in the first quarter of 2022, which was consistent with the decrease in the origination of on-balance sheet loans in the first quarter of 2022.

Guarantee income increased by 8.0% from RMB235 million in the first quarter of 2021 to RMB254 million in the first quarter of 2022. The increase was primarily due to the increase of loan origination in the first quarter of 2022 and the increase of outstanding balances of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.

Cost of sales decreased by 24.3% from RMB434 million in the first quarter of 2021 to RMB328 million in the first quarter of 2022, which was consistent with the decrease of new consumption-driven revenue.

Funding cost decreased by 27.4% from RMB130 million in the first quarter of 2021 to RMB94.3 million in the first quarter of 2022, which was consistent with the decrease of the interest and financial services income and other revenues.

Processing and servicing cost increased by 16.6% from RMB397 million in the first quarter of 2021 to RMB462 million in the first quarter of 2022. This increase was primarily due to an increase in risk management and collection expenses.

Provision for credit losses of financing and interest receivables was RMB45.5 million in the first quarter of 2022, compared to RMB172 million in the first quarter of 2021. The credit losses have reflected the most recent performance in relation to the Company’s on-balance sheet loans and that the Company has continued to implement prudent credit assessment and risk management policies and procedures.

Provision for credit losses of contract assets and receivables decreased by 67.5% from RMB219 million in the first quarter of 2021 to RMB71.2 million in the first quarter of 2022. The decrease was primarily due to a decrease in the balance of contract assets as of March 31, 2022.

Provision for credit losses of contingent liabilities of guarantee increased by 11.7% from RMB224 million in the first quarter of 2021 to RMB250 million in the first quarter of 2022. The increase was primarily due to the increase of outstanding balances of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.

 

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Gross profit decreased by 66.3% from RMB1,369 million in the first quarter of 2021 to RMB461 million in the first quarter of 2022. The decrease in gross profit was primarily due to the decrease in revenues from new consumption-driven, location-based services, technology-driven platform services and credit-driven platform services, and the increase in processing and servicing cost and provision for credit losses of contingent liabilities of guarantee, and partially offset by the decrease in funding cost, cost of sales, provision for credit losses of financing and interest receivables and provision for credit losses of contract assets and receivables.

Sales and marketing expenses remained stable from RMB346 million in the first quarter of 2021 to RMB360 million in the first quarter of 2022.

Research and development expenses increased by 22.8% from RMB124 million in the first quarter of 2021 to RMB153 million in the first quarter of 2022. This increase was primarily due to an increase in salaries and personnel related costs.

General and administrative expenses decreased by 10.8% from RMB131 million in the first quarter of 2021 to RMB117 million in the first quarter of 2022. This decrease was primarily due to a decrease in salaries and personnel related costs.

Change in fair value of financial guarantee derivatives and loans at fair value was a gain of RMB263 million in the first quarter of 2022, as compared to a gain of RMB75.8 million in the first quarter of 2021. The change in fair value was primarily due to the fair value gains realized as result of the release of guarantee obligation along with the decrease in the balances of the underlying outstanding off-balance sheet loans as of March 31, 2022, partially offset by the fair value losses as result of the increase of expected loss rates as of March 31, 2022.

Income tax expense for the first quarter of 2022 was RMB19.4 million, as compared to income tax expense of RMB131 million in the first quarter of 2021. The decrease of the income tax expense was consistent with the decrease of the taxable income in the first quarter of 2022 from the same period of 2021.

Net income for the first quarter of 2022 was RMB81.5 million, representing a decrease of 88.5% from RMB711 million in the first quarter of 2021.

 

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Conference Call

The Company’s management will host an earnings conference call at 9:30 PM U.S. Eastern time on May 30, 2022 (9:30 AM Beijing/Hong Kong time on May 31, 2022).
 

Participants who wish to join the conference call should register online at:
 

http://apac.directeventreg.com/registration/eveqnt/5865035
 

Please note the Conference ID number of 5865035.

Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number.

Participants joining the conference call should dial in at least 10 minutes before the scheduled start time.
 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lexin.com.

A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until June 7, 2022, by dialing the following telephone numbers:
 

United States: 1 855 452 5696 or 1 646 254 3697

International: 61 2 8199 0299

Replay Access Code: 5865035

 

About LexinFintech Holdings Ltd.

Lexin is a leading online and offline consumption platform and a technology-driven service provider in China. Established in 2013, we leverage our profound understanding of consumers in China and the valuable experience of partnering with hundreds of financial institutions over the years, as well as our advanced technological capabilities, to connect fast-growing new generation consumers and small and micro enterprise owners with well-established national and regional funding partners.

 

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

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

 

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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)/income and we define non-GAAP EBIT as net income excluding income tax expense, share-based compensation expenses, interest expense, net, and investment (loss)/income .

We present these non-GAAP financial measures because it is 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 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)/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 the non-GAAP financial measure 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 RMB6.3393 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 2022. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

 

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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.

 

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LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Balance Sheets

	As of
(In thousands)	December 31, 2021			March 31, 2022
	RMB			RMB			US$
ASSETS
Current assets
Cash and cash equivalents		2,664,132			2,303,519			363,371
Restricted cash		1,305,435			1,454,431			229,431
Restricted time deposits		1,745,898			1,851,454			292,060
Short-term financing receivables, net of allowance for credit losses of RMB307,341 and RMB44,778 as of December 31, 2021 and March 31, 2022, respectively		3,772,975			4,174,599			658,527
Loans at fair value		252,970			281,712			44,439
Accrued interest receivable, net of allowance for credit losses of RMB1,367 and RMB1,452 as of December 31, 2021 and March 31, 2022, respectively		53,513			63,552			10,025
Prepaid expenses and other current assets		941,150			982,696			155,016
Amounts due from related parties		6,337			6,066			957
Deposits to insurance companies and guarantee companies		1,378,489			1,630,230			257,162
Short-term guarantee receivables, net of allowance for credit losses of RMB21,006 and RMB25,675 as of December 31, 2021 and March 31, 2022, respectively		543,949			573,066			90,399
Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB187,261 and RMB137,153 as of December 31, 2021 and March 31, 2022, respectively		3,942,700			3,289,348			518,882
Inventories, net		47,816			56,528			8,917
Total current assets		16,655,364			16,667,201			2,629,186
Non‑current assets
Restricted cash		149,247			137,993			21,768
Long‑term financing receivables, net of allowance for credit losses of RMB19,523 and RMB3,007 as of December 31, 2021 and March 31, 2022 respectively		241,127			287,125			45,293
Long-term guarantee receivables, net of allowance for credit losses of RMB4,061 and RMB4,859 as of December 31, 2021 and March 31, 2022, respectively		101,562			105,367			16,621
Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB34,973 and RMB25,243 as of December 31, 2021 and March 31, 2022, respectively		244,672			179,498			28,315
Property, equipment and software, net		195,330			214,654			33,861
Land use rights, net		966,067			957,467			151,037
Long‑term investments		469,064			470,372			74,199
Deferred tax assets		1,176,878			1,298,484			204,831
Other assets		826,883			869,891			137,222
Total non‑current assets		4,370,830			4,520,851			713,147
TOTAL ASSETS		21,026,194			21,188,052			3,342,333
LIABILITIES
Current liabilities
Accounts payable		15,705			25,378			4,003
Amounts due to related parties		23,102			24,539			3,871
Short‑term borrowings		1,799,741			1,737,830			274,136
Short‑term funding debts		3,101,381			2,373,313			374,381
Accrued interest payable		24,851			5,784			912
Deferred guarantee income		419,843			448,212			70,704
Contingent guarantee liabilities		928,840			867,676			136,873
Accrued expenses and other current liabilities		3,873,657			3,663,035			577,830
Total current liabilities		10,187,120			9,145,767			1,442,710
Non‑current liabilities
Long‑term funding debts		696,852			1,776,061			280,167
Deferred tax liabilities		54,335			82,891			13,076
Convertible notes		1,882,689			1,876,133			295,953
Other long-term liabilities		137,389			127,748			20,152
Total non‑current liabilities		2,771,265			3,862,833			609,348
TOTAL LIABILITIES		12,958,385			13,008,600			2,052,058
SHAREHOLDERS’ EQUITY:
Class A Ordinary Shares		180			181			28
Class B Ordinary Shares		57			57			9
Treasury stock		-			(25,482	)		(4,020	)
Additional paid‑in capital		2,918,993			2,954,693			466,091
Statutory reserves		901,322			901,322			142,180
Accumulated other comprehensive income		11,273			12,281			1,937
Retained earnings		4,195,791			4,273,890			674,189
Non-controlling interests		40,193			62,510			9,861
TOTAL SHAREHOLDERS’ EQUITY		8,067,809			8,179,452			1,290,275
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		21,026,194			21,188,052			3,342,333

 

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LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Operations

	For the Three Months Ended March 31,
(In thousands, except for share and per share data)	2021			2022
	RMB			RMB			US$
Operating revenue:
New Consumption-Driven, Location-Based Services (1)		431,706			318,672			50,269
Technology-Driven Platform Services (1)		674,871			497,281			78,444
Credit-Driven Platform Services (1)		1,837,106			896,425			141,408
Loan facilitation and servicing fees-credit oriented (1)		1,060,420			255,739			40,342
Interest and financial services income and other revenues (1)		541,637			386,774			61,012
Guarantee income (1)		235,049			253,912			40,054
Total operating revenue		2,943,683			1,712,378			270,121
Operating cost:
Cost of sales		(433,469	)		(328,213	)		(51,774	)
Funding cost		(129,760	)		(94,253	)		(14,868	)
Processing and servicing cost		(396,716	)		(462,465	)		(72,952	)
Provision for credit losses of financing and interest receivables		(171,998	)		(45,529	)		(7,182	)
Provision for credit losses of contract assets and receivables		(218,937	)		(71,201	)		(11,232	)
Provision for credit losses of contingent liabilities of guarantee		(223,785	)		(249,892	)		(39,419	)
Total operating cost		(1,574,665	)		(1,251,553	)		(197,427	)
Gross profit		1,369,018			460,825			72,694
Operating expenses:
Sales and marketing expenses		(345,504	)		(360,444	)		(56,859	)
Research and development expenses		(124,207	)		(152,506	)		(24,057	)
General and administrative expenses		(131,101	)		(116,997	)		(18,456	)
Total operating expenses		(600,812	)		(629,947	)		(99,372	)
Change in fair value of financial guarantee derivatives and loans at fair value		75,761			262,868			41,466
Interest expense, net		(19,689	)		(15,305	)		(2,414	)
Investment (loss)/ income		(189	)		1,374			217
Other, net		18,249			21,045			3,320
Income before income tax expense		842,338			100,860			15,911
Income tax expense		(131,257	)		(19,377	)		(3,057	)
Net income		711,081			81,483			12,854
Less: net (loss)/ income attributable to non-controlling interests		(458	)		3,384			534
Net income attributable to ordinary shareholders of the Company		711,539			78,099			12,320
Net income per ordinary share attributable to ordinary shareholders of the Company
Basic		1.94			0.21			0.03
Diluted		1.74			0.21			0.03
Net income per ADS attributable to ordinary shareholders of the Company
Basic		3.87			0.42			0.07
Diluted		3.49			0.42			0.07
Weighted average ordinary shares outstanding
Basic		367,370,488			370,068,984			370,068,984
Diluted		414,600,356			372,075,542			372,075,542

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(1) Starting from the first quarter of 2022, we report our revenue streams in three categories - new consumption-driven, location-based services, technology-driven platform services, and credit-driven platform services, to provide more relevant and updated information. We also revised the revenue presentation in comparative periods to conform to the current classification.
 

In providing new consumption-driven, location-based services, we provide platform and services for merchants, shopping malls, and brands to conduct sales and marketing, with the goal to drive transaction volume, for which we charge a service fee. Revenue earned from the online direct sales and services is recognized under new consumption-driven, location-based services, which was previously reported as “Online direct sales” and “Other services” within “Online direct sales and services income” before the change of presentation.
 

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In providing technology-driven platform services, we offer a comprehensive set of services to our customers that enable them to increase revenues, manage financial risks, improve operating efficiency, improve service quality, enhance collections, and reduce overall costs. Revenue earned from platform-based services, membership services and other services is reported as one combined financial statement line item under “Technology-driven platform services.” The membership fees and other services revenue were previously reported as “Membership services” and “Other services” within “Online direct sales and services income” before the change of presentation.
 

The revenue earned from credit-oriented services is recognized under credit-driven platform services, which includes "Loan facilitation and servicing fees-credit oriented," "Interest and financial services income and other revenues," and "Guarantee income."



 

 

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LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

	For the Three Months Ended March 31,
(In thousands)	2021			2022
	RMB			RMB			US$
Net income		711,081			81,483			12,854
Other comprehensive (loss)/ income
Foreign currency translation adjustment, net of nil tax		(2,071	)		1,008			159
Total comprehensive income		709,010			82,491			13,013
Less: net (loss)/ income attributable to non-controlling interests		(458	)		3,384			534
Total comprehensive income attributable to ordinary shareholders of the Company		709,468			79,107			12,479

 

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LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

	For the Three Months Ended March 31,
(In thousands, except for share and per share data)	2021			2022
	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		711,539			78,099			12,320
Add: Share-based compensation expenses		48,513			41,568			6,557
Interest expense associated with convertible notes		11,134			10,939			1,726
Investment loss/(income)		189			(1,374	)		(217	)
Adjusted net income attributable to ordinary shareholders of the Company		771,375			129,232			20,386
Adjusted net income per ordinary share attributable to ordinary shareholders of the Company
Basic		2.10			0.35			0.06
Diluted		1.86			0.31			0.05
Adjusted net income per ADS attributable to ordinary shareholders of the Company
Basic		4.20			0.70			0.11
Diluted		3.72			0.62			0.10
Weighted average number of ordinary shares outstanding attributable to ordinary shareholders of the Company
Basic		367,370,488			370,068,984			370,068,984
Diluted		414,600,356			414,932,685			414,932,685

 

 

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LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

	For the Three Months Ended March 31,
(In thousands)	2021			2022
	RMB			RMB			US$
Reconciliations of Non-GAAP EBIT to Net income
Net income		711,081			81,483			12,854
Add: Income tax expense		131,257			19,377			3,057
Share-based compensation expenses		48,513			41,568			6,557
Interest expense, net		19,689			15,305			2,414
Investment loss/(income)		189			(1,374	)		(217	)
Non-GAAP EBIT		910,729			156,359			24,665

 

 

 

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Additional Credit Information

Vintage Charge Off Curve

 

Dpd30+/GMV by Performance Windows

 

First Payment Default 30+

 

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