Online microcredit accounts for less than 1% of loan financing as of October 31, 2020
SHENZHEN, China, Nov. 04, 2020 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX), a leading online consumption and consumer finance platform for new generation consumers in China, today released a statement regarding the draft of the Interim Measures for the Administration of the Online Microcredit Business jointly issued by the China Banking and Insurance Regulatory Commission and the People’s Bank of China on November 2, 2020 (the “Discussion Draft”).
The Company noted that according to the Discussion Draft, microloan companies will be subject to heightened restrictions with respect to risk management, qualification of joint lending or loan facilitation partners and use of credit enhancement services, among others.
Lexin’s operating model does not rely on the Company’s online microcredit subsidiaries, which accounted for less than 1% of Lexin’s loan financing as of October 31, 2020. The Company therefore does not expect the Discussion Draft to have any material impact on Lexin’s financials, operations or business model.
“After a careful review of the Discussion Draft, we have concluded that the current version of Discussion Draft will have limited impact on our operations and our business model,” said Mr. Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “Our business model does not rely on our licensed microcredit subsidiaries, and hence we do not expect any material impact or major changes to our business. We continue to be fully confident in our business model as we conclude the year and enter 2021.”
“Online microcredit funding accounts for less than 1% of our loan financing and can easily be replaced by other sources,” said Mr. Craig Yan Zeng, Lexin’s chief financial officer, “The Discussion Draft represents potential regulations that are in the draft stage, and we will continue to closely monitor the regulatory environment so as to proactively prepare for potential regulatory changes and minimize the potential risks to our shareholders.”
The above represents Lexin’s current and preliminary view based on the current version of the Discussion Draft, which is subject to changes and uncertainties. New rules, interpretations and/or clarifications and other developments by legal and regulatory authorities may also be adopted or announced in the future, requiring the Company to re-evaluate its position then.
About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. is a leading online consumption and consumer finance platform for new generation consumers in China. The Company provides a range of services including financial technology services, membership benefits, and a point redemption system through its ecommerce platform Fenqile and membership platform Le Card. The Company works with financial institutions and brands both online and offline to provide a comprehensive consumption ecosystem catering to the needs of young professionals in China. Lexin utilizes advanced technologies such as big data, cloud computing and artificial intelligence throughout the Company's services and operations, which include risk management, loan facilitation, and the near-instantaneous matching of users’ funding requests with offers from the Company's many funding partners.
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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. 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. Statements that are not historical facts, including statements about Lexin's beliefs and expectations, are forward-looking statements. 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; government policies and regulations relating to the industry Lexin operates in; 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.
Tel: +86 (755) 3637-8888 ext. 6258
Tel: +86 (755) 3637-8888 ext. 6993
SOURCE LexinFintech Holdings Ltd.
Source: LexinFintech Holdings Ltd.