lx-6k_20211111.htm

 

 

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 November 2021

 

 

Commission File Number: 001-38328

 

 

LexinFintech Holdings Ltd.

 

27/F CES Tower

No. 3099 Keyuan South Road

Nanshan District, Shenzhen 518057

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):________________

 

 

 

 


 

 

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:

Chairman and Chief Executive Officer

 

 

Date: November 11, 2021

 


 

 

Exhibit Index

Exhibit 99.1—Press Release

 

 

lx-ex991_6.htm

 

Exhibit 99.1

LexinFintech Holdings Ltd. Reports Third Quarter 2021

Unaudited Financial Results

SHENZHEN, China, November 11, 2021 (GLOBE NEWSWIRE)/-- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumption and finance platform in China, today announced its unaudited financial results for the quarter ended September 30, 2021.

“The third quarter marks the beginning of the structural transformation of our core business. The team has been able to gradually bring down the loan pricing while keeping the take rate at a healthy level,” said Mr. Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “The results have demonstrated our ability in responding to changes and ensuring the resilience of our operations.”

“Net profit rose over 68% year over year in the third quarter as gross margin was improved by almost 20 percentage points,” said Ms. Sunny Rui Sun, Lexin’s chief financial officer. “Quality growth is a key focus. At the same time, we will continue to support the overall profitability by strengthening cost management and operational efficiency.”

“We’ve been proactive in mitigating the pressure on asset quality coming from the changes in policy and macro environment. The 90 day+ delinquency ratio1 stood unchanged at 1.85% quarter on quarter,” said Mr. Jayden Yang Qiao, Lexin’s chief risk officer. “We will continue to optimize our asset mix and are confident that the credit performance will stabilize and improve in the long term.”

1

90 day+ delinquency ratio refers to outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. On-balance sheet loans that were over 179 calendar days past due and charged off are not included in the delinquency rate calculation. Off-balance sheet loans that were over 179 calendar days past due are assumed charged off and not included in the delinquency rate calculation. The Company does not distinguish on the basis of the on- or off-balance sheet treatment in monitoring the credit risks of borrowers and the delinquency status of loans.

 

Page 1 of 12


 

 

Third Quarter 2021 Operational Highlights:

User base

Total number of registered users reached 154 million as of September 30, 2021, representing an increase of 44.9% from 106 million as of September 30, 2020; and users with credit line reached 35.6 million as of September 30, 2021, up by 41.1% from 25.2 million as of September 30, 2020.

Number of active users2 who used our loan products in the third quarter of 2021 reached 7.7 million, representing an increase of 3.9% from 7.4 million in the third quarter of 2020.

Number of new active users who used our loan products in the third quarter of 2021 was 1.4 million, representing a decrease of 15.6% from 1.7 million in the third quarter of 2020.

Loan facilitation business

Total loan originations3 in the third quarter of 2021 reached RMB55.8 billion, representing an increase of 15.6% from RMB48.3 billion in the third quarter of 2020.

Total outstanding principal balance of loans3 reached RMB92.9 billion as of September 30, 2021, representing an increase of 37.8% from RMB67.4 billion as of September 30, 2020.

In additional to new generation consumers, Lexin has continued to expand financing services for small and micro business owners. In the third quarter, loan originations for small and micro business owners reached RMB5.2 billion.

Number of orders placed on our platform in the third quarter of 2021 was 49.1 million, representing a decrease of 41.8% from 84.4 million in the third quarter of 2020.

New consumption efforts

Maiya recorded GMV of RMB473 million in the third quarter.

In the third quarter of 2021, Maiya has served over 599,726 users and 2,433 merchants, of which 92.4% were brick-and-mortar vendors.

Credit performance

90 day+ delinquency ratio was 1.85% as of September 30, 2021.

First payment default rate (30 day+) for new loan originations was below 1% as of September 30, 2021.

Vintage charge-off rates for the loans originated during the latest 12 months were estimated to be 3.5%-4% as of September 30, 2021.

Other operational highlights

The weighted average tenor of loans originated on our platform in the third quarter of 2021 was approximately 11.0 months. The nominal APR4 was 14.0% for the loans originated during the third quarter of 2021.

The GMV5 of our e-commerce channel in the third quarter of 2021 amounted to RMB1,283 million, representing a decrease of 3.3% from RMB1,328 million in the third quarter of 2020.

2

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 credit line granted by us.

3

Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.

4

Nominal APR refers to all-in interest costs and fees to the borrower over the net proceeds received by the borrower as a percentage of the total loan originations of both on- and off-balance sheet loans.

Page 2 of 12


 

5

GMV refers to the total value of transactions completed for products purchased on the e-commerce channel, net of returns.

Third Quarter 2021 Financial Highlights

Total operating revenue reached RMB3.0 billion. Credit-oriented services income reached RMB1.8 billion, representing a decrease of 12.8% from the third quarter of 2020. Platform-based services income reached RMB775 million, representing an increase of 26.3% from the third quarter of 2020.

Gross profit reached RMB1,507 million, representing an increase of 54.0% from the third quarter of 2020.

Net income was RMB581 million, representing an increase of 68.5% from the third quarter of 2020.

Non-GAAP EBIT6 was RMB750 million, representing an increase of 50.3% from the third quarter of 2020.

Adjusted net income6 attributable to ordinary shareholders of the Company was RMB641 million, representing an increase of 44.8% from the third quarter of 2020. Adjusted net income per ADS6 attributable to ordinary shareholders of the Company was RMB3.09 on a fully diluted basis.

6

Non-GAAP EBIT, 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 2021 Financial Results

Operating revenue decreased from RMB3,154 million in the third quarter of 2020 to RMB2,969 million in the third quarter of 2021. This decrease in operating revenue was due to the decreases in credit-oriented services income and online direct sales and services income, partially offset by an increase in platform-based services income.

Online direct sales decreased by 13.4% from RMB462 million in the third quarter of 2020 to RMB400 million in the third quarter of 2021. This decrease was primarily due to the decrease in the number of e-commerce orders during the third quarter of 2021.

Credit-oriented services income decreased by 12.8% from RMB2,025 million in the third quarter of 2020 to RMB1,765 million in the third quarter of 2021. The decrease was primarily due to the decrease of guarantee income, partially offset by increases in loan facilitation and servicing fees-credit oriented income, interest and financial services income and other revenues.

Loan facilitation and servicing fees-credit oriented increased by 12.1% from RMB1,058 million in the third quarter of 2020 to RMB1,187 million in the third quarter of 2021. This increase was primarily due to the increase in off-balance sheet loans originated under credit-oriented model as a result of the continuing growth of our business, with the expansion of partnerships with institutional funding partners.

Guarantee income decreased by 72.5% from RMB598 million in the third quarter of 2020 to RMB164 million in the third quarter of 2021. The decrease was primarily due to the significant decrease of loan origination and outstanding balances of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for as guarantee liabilities under ASC 460, Guarantees.

Platform-based services income increased by 26.3% from RMB614 million in the third quarter of 2020 to RMB775 million in the third quarter of 2021. This increase was primarily contributed by an increase in the loan facilitation and servicing fees-performance based.

Page 3 of 12


 

Loan facilitation and servicing fees-performance based increased by 19.3% from RMB580 million in the third quarter of 2020 to RMB693 million in the third quarter of 2021. This increase was primarily due to an increase in the origination of off-balance sheet loans under the performance-based model within platform-based services, driven by continuing increases in the number of active users on our platform.

Cost of sales decreased by 8.2% from RMB476 million in the third quarter of 2020 to RMB437 million in the third quarter of 2021, which is consistent with the decrease of online direct sales revenue.

Funding cost decreased by 25.7% from RMB143 million in the third quarter of 2020 to RMB106 million in the third quarter of 2021, which was consistent with the decrease of the funding debts to fund the on-balance sheet loans. The decrease in funding debts was mainly due to the shortened weighted average tenor for on-balance sheet loans.

Processing and servicing cost increased by 44.7% from RMB362 million in the third quarter of 2020 to RMB524 million in the third quarter of 2021. This increase was primarily due to an increase in risk management and collection expenses and an increase in fees to third-party payment platforms.

Provision for credit losses of financing receivables decreased by 0.4% from RMB217 million in the third quarter of 2020 to RMB216 million in the third quarter of 2021. The credit losses have reflected the most recent performance in relation to the Company’s on-balance sheet loans and the Company has continued to implement prudent credit assessment and risk management policies and procedures.

Provision for credit losses of contract assets and receivables increased by 22.5% from RMB104 million in the third quarter of 2020 to RMB128 million in the third quarter of 2021. This increase was mainly due to the increase in off-balance sheet loans originated as a result of the continuing growth of our business.

Provision for credit losses of contingent liabilities of guarantee decreased by 94.1% from RMB874 million in the third quarter of 2020 to RMB51.4 million in the third quarter of 2021. The decrease was primarily due to the significant decrease of loan origination of the off-balance sheet loans funded by certain institutional funding partners, which are accounted for as guarantee liabilities under ASC 460, Guarantees.

Gross profit increased by 54.0% from RMB978 million in the third quarter of 2020 to RMB1,507 million in the third quarter of 2021. The increase in the gross profit is primarily due to the decrease in funding cost and provision for credit losses of contingent liabilities of guarantee, partially offset by the increase in processing and servicing cost and the decrease in operating revenue.

Sales and marketing expenses increased by 36.4% from RMB360 million in the third quarter of 2020 to RMB491 million in the third quarter of 2021. This increase was primarily due to an increase in online advertising cost, and an increase in salaries and personnel related costs.

Research and development expenses increased by 10.7% from RMB118 million in the third quarter of 2020 to RMB131 million in the third quarter of 2021. This increase was primarily due to an increase in salaries and personnel related costs.

General and administrative expenses decreased by 2.0% from RMB103 million in the third quarter of 2020 to RMB100 million in the third quarter of 2021. This decrease was primarily due to an improvement in cost management.

Change in fair value of financial guarantee derivatives was a loss of RMB92.3 million in the third quarter of 2021, as compared to a loss of RMB21.8 million in the third quarter of 2020. The loss 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.

Page 4 of 12


 

Change in fair value of loans at fair value was a gain of RMB11.5 million in the third quarter of 2021. Starting from the third quarter of 2020, for the loans we acquired/purchased from the relevant funding partners during the period, we account for them using fair value option pursuant to ASC 825, Financial Instruments, and record them as “Loans at fair value”. Changes in fair value of these loans are reported net and recorded as “Change in fair value of loans at fair value”.

Income tax expense increased by 137.0% from RMB44.7 million in the third quarter of 2020 to RMB106 million in the third quarter of 2021. The increase was consistent with the increase of the taxable income from the same period of 2020. In addition, in the third quarter of 2020, RMB16.2 million income tax provision relating to 2019 was reversed as one subsidiary of Lexin was certified to be qualified for using a preferential tax rate of 10% for 2019 annual tax clearance in the quarter.

Net income increased by 68.5% from RMB345 million in the third quarter of 2020 to RMB581 million in the third quarter of 2021.

Adjusted net income attributable to ordinary shareholders of the Company increased by 44.8% from RMB443 million in the third quarter of 2020 to RMB641 million in the third quarter of 2021.

Please click here to view our credit quality curves:

http://ml.globenewswire.com/Resource/Download/0d107f95-60e3-4747-b04e-d962b1b67881

http://ml.globenewswire.com/Resource/Download/6f43e05b-3a4f-46c8-82fa-94e30f9376d8

http://ml.globenewswire.com/Resource/Download/9b5981aa-b651-43f3-872a-ab9c081501b6

Conference Call

The Company’s management will host an earnings conference call at 8:30 PM U.S. Eastern time on November 10, 2021 (9:30 AM Beijing/Hong Kong time on November 11, 2021).

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

http://apac.directeventreg.com/registration/event/4596091

Please note the Conference ID number of 4596091.

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 November 17, 2021, 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:

4596091

 

Page 5 of 12


 

 

About LexinFintech Holdings Ltd.

Lexin is a leading online consumption and finance platform in China. Established in 2013, the Company leverages a deep understanding of Chinese consumers and advanced technology capabilities to connect fast-growing consumers with financial institutions.

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, investment-related impairment, and investment (loss)/income and we define non-GAAP EBIT as net income excluding income tax expense/(benefit), share-based compensation expenses, interest expense, net, investment-related impairment, 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, investment-related impairment, 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/(benefit), share-based compensation expenses, interest expense, net, investment-related impairment, 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/(benefit), interest expense, net, investment-related impairment, 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 RMB6.4434 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2021. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Page 6 of 12


 

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:

Patricia Cheng

Tel: +86 (755) 3637-8888 ext. 6258

E-mail: patriciacheng@lexin.com

 

Media inquiries:

Limin Chen

Tel: +86 (755) 3637-8888 ext. 6993

E-mail: liminchen@lexin.com

SOURCE LexinFintech Holdings Ltd.

Page 7 of 12


 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Balance Sheets

 

 

 

 

 

As of

 

(In thousands)

 

December 31, 2020

 

September 30, 2021

 

 

 

 

RMB

 

RMB

 

US$

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

1,563,755

 

 

2,545,779

 

 

395,099

 

Restricted cash

 

 

1,112,152

 

 

1,414,669

 

 

219,553

 

Restricted time deposits

 

 

1,779,458

 

 

1,702,386

 

 

264,206

 

Short-term financing receivables, net of allowance for credit losses of RMB508,013 and RMB702,654 as of December 31, 2020 and September 30, 2021, respectively

 

 

4,918,548

 

 

2,983,686

 

 

463,061

 

Loans at fair value

 

 

381,393

 

 

154,138

 

 

23,922

 

Accrued interest receivable, net of allowance for credit losses of RMB1,681 and RMB1,309 as of December 31, 2020 and September 30, 2021, respectively

 

 

79,793

 

 

56,662

 

 

8,794

 

Prepaid expenses and other current assets

 

 

1,004,845

 

 

998,074

 

 

154,899

 

Amounts due from related parties

 

 

941

 

 

6,283

 

 

975

 

Deposits to insurance companies and guarantee companies

 

 

1,066,281

 

 

1,527,696

 

 

237,095

 

Short-term guarantee receivables, net of allowance for credit losses of RMB58,771 and RMB36,779 as of December 31, 2020 and September 30, 2021, respectively

 

 

756,197

 

 

435,006

 

 

67,512

 

Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB65,607 and RMB205,943 as of December 31, 2020 and September 30, 2021, respectively

 

 

3,707,649

 

 

4,407,408

 

 

684,019

 

Inventories, net

 

 

47,170

 

 

52,460

 

 

8,142

 

Total current assets

 

 

16,418,182

 

 

16,284,247

 

 

2,527,277

 

Non‑current assets

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

 

163,999

 

 

161,107

 

 

25,003

 

Long‑term financing receivables, net of allowance for credit losses of RMB21,149 and RMB36,102 as of December 31, 2020 and September 30, 2021 respectively

 

 

204,761

 

 

150,345

 

 

23,333

 

Long-term guarantee receivables, net of allowance for credit losses of RMB16,994 and RMB8,591 as of December 31, 2020 and September 30, 2021, respectively

 

 

218,654

 

 

109,163

 

 

16,942

 

Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB18,970 and RMB48,103 as of December 31, 2020 and September 30, 2021, respectively

 

 

481,989

 

 

457,018

 

 

70,928

 

Property, equipment and software, net

 

 

125,694

 

 

156,759

 

 

24,329

 

Land use rights, net

 

 

1,000,467

 

 

974,667

 

 

151,266

 

Long‑term investments

 

 

521,802

 

 

471,370

 

 

73,155

 

Deferred tax assets

 

 

747,332

 

 

866,043

 

 

134,408

 

Other assets

 

 

462,285

 

 

940,069

 

 

145,896

 

Total non‑current assets

 

 

3,926,983

 

 

4,286,541

 

 

665,260

 

TOTAL ASSETS

 

 

20,345,165

 

 

20,570,788

 

 

3,192,537

 

 

-

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

42,961

 

 

18,939

 

 

2,939

 

Amounts due to related parties

 

 

67,514

 

 

52,283

 

 

8,114

 

Short‑term borrowings

 

 

1,827,063

 

 

1,768,792

 

 

274,512

 

Short‑term funding debts

 

 

4,685,935

 

 

3,153,038

 

 

489,344

 

Accrued interest payable

 

 

36,484

 

 

41,107

 

 

6,380

 

Deferred guarantee income

 

 

694,582

 

 

318,977

 

 

49,504

 

Contingent guarantee liabilities

 

 

1,738,787

 

 

1,128,975

 

 

175,214

 

Accrued expenses and other current liabilities

 

 

2,926,347

 

 

3,532,990

 

 

548,311

 

Total current liabilities

 

 

12,019,673

 

 

10,015,101

 

 

1,554,318

 

Non‑current liabilities

 

 

 

 

 

 

 

 

 

 

Long‑term funding debts

 

 

825,814

 

 

701,168

 

 

108,820

 

Deferred tax liabilities

 

 

21,046

 

 

36,652

 

 

5,688

 

Convertible notes

 

 

1,920,227

 

 

1,913,449

 

 

296,963

 

Other long-term liabilities

 

 

27,667

 

 

146,559

 

 

22,746

 

Total non‑current liabilities

 

 

2,794,754

 

 

2,797,828

 

 

434,217

 

TOTAL LIABILITIES

 

 

14,814,427

 

 

12,812,929

 

 

1,988,535

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

Class A Ordinary Shares

 

 

176

 

 

180

 

 

28

 

Class B Ordinary Shares

 

 

58

 

 

57

 

 

9

 

Additional paid‑in capital

 

 

2,724,006

 

 

2,870,322

 

 

445,467

 

Statutory reserves

 

 

649,234

 

 

649,234

 

 

100,760

 

Accumulated other comprehensive income

 

 

3,308

 

 

5,605

 

 

870

 

Retained earnings

 

 

2,113,956

 

 

4,191,845

 

 

650,564

 

Non-controlling interests

 

 

40,000

 

 

40,616

 

 

6,304

 

TOTAL SHAREHOLDERS’ EQUITY

 

 

5,530,738

 

 

7,757,859

 

 

1,204,002

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

20,345,165

 

 

20,570,788

 

 

3,192,537

 

 

Page 8 of 12


 

 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Operations

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(In thousands, except for share and per share data)

2020

 

2021

 

 

2020

 

2021

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online direct sales

 

461,959

 

 

400,223

 

 

62,114

 

 

 

1,473,075

 

 

1,235,391

 

 

191,730

 

Membership services

 

27,602

 

 

4,390

 

 

681

 

 

 

76,098

 

 

39,712

 

 

6,163

 

Other services

 

26,048

 

 

23,568

 

 

3,657

 

 

 

63,408

 

 

64,740

 

 

10,047

 

   Online direct sales and services income

 

515,609

 

 

428,181

 

 

66,452

 

 

 

1,612,581

 

 

1,339,843

 

 

207,940

 

Loan facilitation and servicing fees-credit oriented

 

1,058,468

 

 

1,187,060

 

 

184,229

 

 

 

2,752,731

 

 

3,842,315

 

 

596,318

 

Interest and financial services income and other revenues

 

368,702

 

 

414,192

 

 

64,282

 

 

 

946,224

 

 

1,365,492

 

 

211,921

 

Guarantee income

 

597,542

 

 

164,052

 

 

25,460

 

 

 

1,981,113

 

 

602,696

 

 

93,537

 

    Credit-oriented services income

 

2,024,712

 

 

1,765,304

 

 

273,971

 

 

 

5,680,068

 

 

5,810,503

 

 

901,776

 

Loan facilitation and servicing fees-performance based

 

580,358

 

 

692,630

 

 

107,494

 

 

 

1,251,341

 

 

1,808,804

 

 

280,722

 

Loan facilitation and servicing fees-volume based

 

33,375

 

 

82,680

 

 

12,832

 

 

 

68,104

 

 

222,164

 

 

34,479

 

    Platform-based services income

 

613,733

 

 

775,310

 

 

120,326

 

 

 

1,319,445

 

 

2,030,968

 

 

315,201

 

Total operating revenue

 

3,154,054

 

 

2,968,795

 

 

460,749

 

 

 

8,612,094

 

 

9,181,314

 

 

1,424,917

 

Operating cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(475,824

)

 

(436,973

)

 

(67,817

)

 

 

(1,475,704

)

 

(1,297,433

)

 

(201,358

)

Funding cost

 

(142,658

)

 

(106,013

)

 

(16,453

)

 

 

(449,102

)

 

(359,393

)

 

(55,777

)

Processing and servicing cost

 

(361,839

)

 

(523,611

)

 

(81,263

)

 

 

(1,031,248

)

 

(1,390,244

)

 

(215,762

)

Provision for credit losses of financing receivables

 

(217,222

)

 

(216,344

)

 

(33,576

)

 

 

(628,384

)

 

(499,977

)

 

(77,595

)

Provision for credit losses of contract assets and receivables

 

(104,452

)

 

(127,958

)

 

(19,859

)

 

 

(254,578

)

 

(486,593

)

 

(75,518

)

Provision for credit losses of contingent liabilities of guarantee

 

(873,936

)

 

(51,374

)

 

(7,973

)

 

 

(2,660,101

)

 

(610,658

)

 

(94,773

)

Total operating cost

 

(2,175,931

)

 

(1,462,273

)

 

(226,941

)

 

 

(6,499,117

)

 

(4,644,298

)

 

(720,783

)

Gross profit

 

978,123

 

 

1,506,522

 

 

233,808

 

 

 

2,112,977

 

 

4,537,016

 

 

704,134

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

(359,828

)

 

(490,934

)

 

(76,192

)

 

 

(931,130

)

 

(1,331,252

)

 

(206,607

)

Research and development expenses

 

(118,325

)

 

(130,996

)

 

(20,330

)

 

 

(379,141

)

 

(385,650

)

 

(59,852

)

General and administrative expenses

 

(102,501

)

 

(100,463

)

 

(15,592

)

 

 

(325,820

)

 

(352,413

)

 

(54,694

)

Total operating expenses

 

(580,654

)

 

(722,393

)

 

(112,114

)

 

 

(1,636,091

)

 

(2,069,315

)

 

(321,153

)

Change in fair value of financial guarantee derivatives, net

 

(21,833

)

 

(92,268

)

 

(14,320

)

 

 

(381,594

)

 

42,166

 

 

6,544

 

Change in fair value of loans at fair value

 

(11,356

)

 

11,513

 

 

1,787

 

 

 

(11,356

)

 

(48,522

)

 

(7,530

)

Interest expense, net

 

(23,450

)

 

(14,023

)

 

(2,176

)

 

 

(59,468

)

 

(50,373

)

 

(7,818

)

Investment-related impairment

 

(35,370

)

 

-

 

 

-

 

 

 

(35,370

)

 

-

 

 

-

 

Investment (loss)/ income

 

(1,293

)

 

(1,656

)

 

(257

)

 

 

9,321

 

 

(4,053

)

 

(629

)

Others, net

 

85,241

 

 

(946

)

 

(147

)

 

 

83,295

 

 

59,889

 

 

9,295

 

Income before income tax expense

 

389,408

 

 

686,749

 

 

106,581

 

 

 

81,714

 

 

2,466,808

 

 

382,843

 

Income tax (expense)/benefit

 

(44,713

)

 

(105,987

)

 

(16,449

)

 

 

3,590

 

 

(388,303

)

 

(60,264

)

Net income

 

344,695

 

 

580,762

 

 

90,132

 

 

 

85,304

 

 

2,078,505

 

 

322,579

 

Less: Net income attributable to non-controlling interests

 

-

 

 

279

 

 

43

 

 

 

-

 

 

326

 

 

51

 

Net income attributable to ordinary shareholders of the Company

 

344,695

 

 

580,483

 

 

90,089

 

 

 

85,304

 

 

2,078,179

 

 

322,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ordinary share attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

0.94

 

 

1.57

 

 

0.24

 

 

 

0.23

 

 

5.64

 

 

0.88

 

Diluted

 

0.87

 

 

1.43

 

 

0.22

 

 

 

0.30

 

 

5.08

 

 

0.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ADS attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1.89

 

 

3.15

 

 

0.49

 

 

 

0.47

 

 

11.28

 

 

1.75

 

Diluted

 

1.74

 

 

2.86

 

 

0.44

 

 

 

0.59

 

 

10.17

 

 

1.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

364,991,825

 

 

368,873,003

 

 

368,873,003

 

 

 

364,328,223

 

 

368,375,020

 

 

368,375,020

 

Diluted

 

410,968,465

 

 

414,206,884

 

 

414,206,884

 

 

 

411,274,741

 

 

415,500,045

 

 

415,500,045

 

Page 9 of 12


 

 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(In thousands)

2020

 

2021

 

 

2020

 

2021

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Net income

 

344,695

 

 

580,762

 

 

90,132

 

 

 

85,304

 

 

2,078,505

 

 

322,579

 

Other comprehensive (loss)/ income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil tax

 

(3,687

)

 

(936

)

 

(143

)

 

 

(3,288

)

 

2,297

 

 

356

 

Total comprehensive income

 

341,008

 

 

579,826

 

 

89,989

 

 

 

82,016

 

 

2,080,802

 

 

322,935

 

Less: Net income attributable to non-controlling interests

 

-

 

 

279

 

 

43

 

 

 

-

 

 

326

 

 

51

 

Total comprehensive income attributable to ordinary shareholders of the Company

 

341,008

 

 

579,547

 

 

89,946

 

 

 

82,016

 

 

2,080,476

 

 

322,884

 

Page 10 of 12


 

 

LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(In thousands, except for share and per share data)

2020

 

2021

 

 

2020

 

2021

 

 

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

 

344,695

 

 

580,483

 

 

90,089

 

 

 

85,304

 

 

2,078,179

 

 

322,528

 

Add: Share-based compensation expenses

 

49,193

 

 

47,363

 

 

7,351

 

 

 

152,192

 

 

139,845

 

 

21,703

 

Interest expense associated with convertible notes

 

12,127

 

 

11,375

 

 

1,765

 

 

 

36,246

 

 

33,675

 

 

5,226

 

Investment-related impairment

 

35,370

 

 

-

 

 

-

 

 

 

35,370

 

 

-

 

 

-

 

Investment loss/(income)

 

1,293

 

 

1,656

 

 

257

 

 

 

(9,321

)

 

4,053

 

 

629

 

Tax effects on Non-GAAP adjustments(1)

 

-

 

 

-

 

 

-

 

 

 

-

 

 

7,151

 

 

1,110

 

Adjusted net income attributable to ordinary shareholders of the Company

 

442,678

 

 

640,877

 

 

99,462

 

 

 

299,791

 

 

2,262,903

 

 

351,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per ordinary share attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1.21

 

 

1.74

 

 

0.27

 

 

 

0.82

 

 

6.14

 

 

0.95

 

Diluted

 

1.08

 

 

1.55

 

 

0.24

 

 

 

0.73

 

 

5.45

 

 

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per ADS attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

2.43

 

 

3.47

 

 

0.54

 

 

 

1.65

 

 

12.29

 

 

1.91

 

Diluted

 

2.15

 

 

3.09

 

 

0.48

 

 

 

1.46

 

 

10.89

 

 

1.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

364,991,825

 

 

368,873,003

 

 

368,873,003

 

 

 

364,328,223

 

 

368,375,020

 

 

368,375,020

 

Diluted

 

410,968,465

 

 

414,206,884

 

 

414,206,884

 

 

 

411,274,741

 

 

415,500,045

 

 

415,500,045

 

 

 

(1)     To exclude the tax effects related to the investment loss/(income).

Page 11 of 12


 

LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

(In thousands)

2020

 

2021

 

 

2020

 

2021

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Reconciliations of Non-GAAP EBIT to Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

344,695

 

 

580,762

 

 

90,132

 

 

 

85,304

 

 

2,078,505

 

 

322,579

 

Add: Income tax expense/(benefit)