6-K

 

 

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 August 2022

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:

 

Chief Financial Officer

 

Date: August 17, 2022

 

 

 


 

Exhibit Index

Exhibit 99.1—Press Release

 

 


EX-99.1

 

Exhibit 99.1

LexinFintech Holdings Ltd. Reports Second Quarter 2022

Unaudited Financial Results

SHENZHEN, China, August 16, 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 June 30, 2022.

“We are pleased to see that our second quarter 2022 performance has been improved compared with the previous one. Operating revenue increased by 40.9% quarter over quarter while loan origination reached RMB49.1 billion, delivered a 13.9% quarter over quarter growth”, said Jay Wenjie Xiao, Lexin's Chairman and Chief Executive Officer, “We are committed to strengthening our unique eco system that is centered around financial institution partners and committed consumers that we have been serving for years, as well as our technology-driven risk assessment capabilities.”
 

“Our all-around financial performance is gaining positive momentum with net profit increased by 105.5% quarter over quarter, overcoming external uncertainties.” said Ms. Sunny Rui Sun, Lexin’s Chief Financial Officer. “We stay on course in continuously investing in technology and top talents, while strengthening operational efficiencies for the rest of the year.”

Second Quarter 2022 Operational Highlights:

Total number of registered users reached 178 million as of June 30, 2022, representing an increase of 23.5% from 144 million as of June 30, 2021, and users with credit line reached 38.9 million as of June 30, 2022, up by 18.0% from 32.9 million as of June 30, 2021.
As of June 30, 2022, we cumulatively originated RMB751 billion in loans, an increase of 34.3% from RMB560 billion a year ago.

User Base

Number of active users1 who used our loan products in the second quarter of 2022 was 6.1 million, representing a decrease of 27.6% from 8.4 million in the second quarter of 2021.
Number of new active users who used our loan products in the second quarter of 2022 was 0.9 million, representing a decrease of 50.2% from 1.7 million in the second quarter of 2021.

Loan Facilitation Business

Total loan originations2 in the second quarter of 2022 was RMB49.1 billion, a decrease of 18.9% from RMB60.6 billion in the second quarter of 2021.
Total outstanding principal balance of loans2 reached RMB86.6 billion as of June 30, 2022, representing a decrease of 4.3% from RMB90.5 billion as of June 30, 2021.
Lexin has continued to expand financing services for small and micro business owners. In the second quarter, loan originations for small and micro business owners reached RMB5.4 billion.
Number of orders placed on our platform in the second quarter of 2022 was 38.5 million, representing a decrease of 52.6% from 81.2 million in the second quarter of 2021.

Credit Performance

90 day+ delinquency ratio was 2.63% as of June 30, 2022.
First payment default rate (30 day+) for new loan originations was below 1% as of June 30, 2022.

Page 1 of 15


 

Technology-Driven Platform Services

In the second quarter of 2022, we had served over 100 business customers with our technology-driven platform services.
In the second quarter of 2022, our business customer retention rate3 of technology-driven platform services was over 85%.

New Consumption-Driven, Location-Based Services

The GMV4 in the second quarter of 2022 amounted to RMB1,105 million, representing an increase of 35.5% from RMB816 million in the second quarter of 2021.
In the second quarter of 2022, we served over 370,000 users and 2,600 merchants under new consumption-driven, location-based services.

Other Operational Highlights

The weighted average tenor of loans originated on our platform in the second quarter of 2022 was approximately 12.8 months, representing an increase from 11.6 months in the second quarter of 2021. The nominal APR5 was 14.8% for the second quarter of 2022, representing a decrease from 15.5% in the second quarter of 2021.

Second Quarter 2022 Financial Highlights:

Total operating revenue was RMB2,413 million, representing a decrease of 26.2% from the second quarter of 2021.
Revenue from new consumption-driven, location-based services was RMB538 million, representing an increase of 32.2% from the second quarter of 2021. Cost of sales from new consumption-driven, location-based services was RMB551 million, representing an increase of 29.1% from in the second quarter of 2021. Gross margin from new consumption-driven, location-based services was negative RMB13.0 million, which was 34.3% smaller than the negative amount of RMB 19.7 million in the second quarter of 2021.
Net income attributable to ordinary shareholders of the Company was RMB165 million, representing a decrease of 79.0% from the second quarter of 2021. Net income per ADS attributable to ordinary shareholders of the Company was RMB0.88 on a fully diluted basis.
Adjusted net income attributable to ordinary shareholders of the Company6 was RMB208 million, representing a decrease of 75.5% from the second quarter of 2021. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB1.04 on a fully diluted basis.

__________________________

1.
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.
2.
Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.
3.
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 total number of financial institution customers and partners in the preceding quarter.
4.
GMV refers to the total value of transactions completed for products purchased on our e-commerce and Maiya channel, net of returns.
5.
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.
6.
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.

 

Page 2 of 15


 

Second Quarter 2022 Financial Results:

Operating revenue decreased by 26.2% from RMB3,269 million in the second quarter of 2021 to RMB2,413 million in the second quarter of 2022.

Revenue from new consumption-driven, location-based services increased by 32.2% from RMB407 million in the second quarter of 2021 to RMB538 million in the second quarter of 2022. The increase was primarily driven by the increase in transaction volume in the second quarter of 2022.

Revenue from technology-driven platform services decreased by 33.2% from RMB653 million in the second quarter of 2021 to RMB436 million in the second quarter of 2022. The decrease was primarily due to the decrease from profit-sharing model service within technology-driven platform services in the second quarter of 2022.

Revenue from credit-driven platform services decreased by 34.9% from RMB2,208 million in the second quarter of 2021 to RMB1,438 million in the second quarter of 2022. The decrease was primarily due to the decrease of loan facilitation and servicing fees-credit oriented and partially offset by the increase of interest and financial services income and other revenues and guarantee income.

Loan facilitation and servicing fees-credit oriented decreased by 58.1% from RMB1,595 million in the second quarter of 2021 to RMB667 million in the second quarter of 2022. The decrease was primarily due to the decrease in the nominal APR and the increase of guarantee obligation, which resulted in the decrease in considerations for revenue recognition.

 

Interest and financial services income and other revenues increased by 17.4% from RMB410 million in the second quarter of 2021 to RMB481 million in the second quarter of 2022. The increase was primarily driven by the increase in the origination of on-balance sheet loans in the second quarter of 2022.

Guarantee income increased by 42.3% from RMB204 million in the second quarter of 2021 to RMB290 million in the second quarter of 2022. The increase was primarily driven by the increase of loan origination 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 increased by 29.1% from RMB427 million in the second quarter of 2021 to RMB551 million in the second quarter of 2022, which was consistent with the increase of new consumption-driven revenue.

Funding cost increased by 3.5% from RMB124 million in the second quarter of 2021 to RMB128 million in the second quarter of 2022, which was consistent with the increase of the interest and financial services income and other revenues.

Processing and servicing costs was RMB474 million in the second quarter of 2022, as compared to RMB470 million in the second quarter of 2021.

Provision for credit losses of financing and interest receivables was RMB119 million in the second quarter of 2022, as compared to RMB112 million in the second 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 6.9% from RMB140 million in the second quarter of 2021 to RMB130 million in the second quarter of 2022. The decrease was primarily driven by the decrease in the balance of contract assets as of June 30, 2022.

 

Page 3 of 15


 

Provision for credit losses of contingent liabilities of guarantee increased by 12.5% from RMB335 million in the second quarter of 2021 to RMB377 million in the second 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.

Gross profit decreased by 61.9% from RMB1,661 million in the second quarter of 2021 to RMB633 million in the second quarter of 2022.

Sales and marketing expenses decreased by 3.5% from RMB495 million in the second quarter of 2021 to RMB477 million in the second quarter of 2022. The decrease was primarily driven by a decrease in online advertising cost, partially offset by an increase in salaries and personnel related costs.

Research and development expenses increased by 18.5% from RMB130 million in the second quarter of 2021 to RMB155 million in the second quarter of 2022. The increase was primarily due to an increase in salaries and personnel related costs.

General and administrative expenses decreased by 6.4% from RMB121 million in the second quarter of 2021 to RMB113 million in the second quarter of 2022. The decrease was primarily driven by 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 RMB305 million in the second quarter of 2022, as compared to a loss of RMB1.4 million in the second quarter of 2021. The change in fair value was primarily driven by the fair value gains realized, as a result of the release of guarantee obligation, along with the decrease in the balances of the underlying outstanding off-balance sheet loans as of June 30, 2022.

Income tax expense decreased by 73.4% from RMB151 million in the second quarter of 2021 to RMB40.1 million in the second quarter of 2022. The decrease of the income tax expense was consistent with the decrease of the taxable income in the second quarter of 2022.

Net income decreased by 78.7% from RMB787 million in the second quarter of 2021 to RMB167 million in second quarter of 2022.

 

Page 4 of 15


 

Recent Developments­

US$50 Million Share Repurchase Program

On March 16, 2022, the Company’s board of directors authorized a share repurchase programs under which the Company could repurchase up to an aggregate of US$ 50 million of its shares/ADSs during the specific period. As of June 30, 2022, the Company had repurchased approximately 13 million ADSs for approximately US$31 million under this repurchase program.

Share Purchase Program by Senior Management

On December 1, 2021, the Company announced that members of its senior management had informed the Company that they planned to use their personal funds to purchase up to US$10 million of the Company’s ADSs within the next 6 months pursuant and subject to applicable laws and the Company’s securities trading policy.

As of June 30, 2022, led by Chairman and Chief Executive Officer Jay Wenjie Xiao, senior members of the management had purchased approximately US$6 million worth of ADSs under this program.

Conference Call

The Company’s management will host an earnings conference call at 9:30 PM U.S. Eastern time on August 16, 2022 (9:30 AM Beijing/Hong Kong time on August 17, 2022).
 

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

https://register.vevent.com/register/BI1f808c02f0794b9dbfaff7c6eb3c7a92
 

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 be available on the Company’s investor relations website at http://ir.lexin.com.

 

 

Page 5 of 15


 

About LexinFintech Holdings Ltd.

Lexin is a leading online and offline consumption platform and a technology-driven service provider in China. Established in 2013, the Company leverages its profound understanding of consumers in China and the valuable experience of partnering with hundreds of financial institutions over the years, as well as its 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.

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 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 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 each of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Page 6 of 15


 

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 RMB6.6981 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2022. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

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:

Echo Yan

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

E-mail: echoyan@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 15


 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Balance Sheets

 

As of

 

(In thousands)

December 31, 2021

 

June 30, 2022

 

 

RMB

 

RMB

 

US$

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

2,664,132

 

 

2,060,690

 

 

307,653

 

Restricted cash

 

1,305,435

 

 

1,619,930

 

 

241,849

 

Restricted time deposits

 

1,745,898

 

 

1,303,934

 

 

194,672

 

Short-term financing receivables, net of allowance for credit losses of RMB307,341 and RMB129,647 as of December 31, 2021 and June 30, 2022, respectively

 

3,772,975

 

 

5,402,992

 

 

806,645

 

Loans at fair value

 

252,970

 

 

271,552

 

 

40,542

 

Accrued interest receivable, net of allowance for credit losses of RMB1,367 and RMB1,737 as of December 31, 2021 and June 30, 2022, respectively

 

53,513

 

 

77,037

 

 

11,501

 

Prepaid expenses and other current assets

 

941,150

 

 

931,480

 

 

139,066

 

Amounts due from related parties

 

6,337

 

 

6,641

 

 

991

 

Deposits to insurance companies and guarantee companies

 

1,378,489

 

 

1,790,265

 

 

267,280

 

Short-term guarantee receivables, net of allowance for credit losses of RMB21,006 and RMB36,295 as of December 31, 2021 and June 30, 2022, respectively

 

543,949

 

 

677,396

 

 

101,133

 

Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB187,261 and RMB133,842 as of December 31, 2021 and June 30, 2022, respectively

 

3,942,700

 

 

2,911,048

 

 

434,608

 

Inventories, net

 

47,816

 

 

67,281

 

 

10,045

 

Total current assets

 

16,655,364

 

 

17,120,246

 

 

2,555,985

 

Non‑current assets

 

 

 

 

 

 

Restricted cash

 

149,247

 

 

173,837

 

 

25,953

 

Long‑term financing receivables, net of allowance for credit losses of RMB19,523 and RMB11,200 as of December 31, 2021 and June 30, 2022, respectively

 

241,127

 

 

470,145

 

 

70,191

 

Long-term guarantee receivables, net of allowance for credit losses of RMB4,061 and RMB7,323 as of December 31, 2021 and June 30, 2022, respectively

 

101,562

 

 

133,663

 

 

19,955

 

Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB34,973 and RMB26,491 as of December 31, 2021 and June 30, 2022, respectively

 

244,672

 

 

259,322

 

 

38,716

 

Property, equipment and software, net

 

195,330

 

 

216,752

 

 

32,360

 

Land use rights, net

 

966,067

 

 

948,867

 

 

141,662

 

Long‑term investments

 

469,064

 

 

473,849

 

 

70,744

 

Deferred tax assets

 

1,176,878

 

 

1,345,653

 

 

200,901

 

Other assets

 

826,883

 

 

921,235

 

 

137,537

 

Total non‑current assets

 

4,370,830

 

 

4,943,323

 

 

738,019

 

TOTAL ASSETS

 

21,026,194

 

 

22,063,569

 

 

3,294,004

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

15,705

 

 

60,376

 

 

9,014

 

Amounts due to related parties

 

23,102

 

 

5,574

 

 

832

 

Short‑term borrowings

 

1,799,741

 

 

1,270,739

 

 

189,716

 

Short‑term funding debts

 

3,101,381

 

 

3,394,577

 

 

506,797

 

Accrued interest payable

 

24,851

 

 

12,301

 

 

1,836

 

Deferred guarantee income

 

419,843

 

 

592,625

 

 

88,477

 

Contingent guarantee liabilities

 

928,840

 

 

843,588

 

 

125,944

 

Accrued expenses and other current liabilities

 

3,873,657

 

 

3,334,080

 

 

497,765

 

Total current liabilities

 

10,187,120

 

 

9,513,860

 

 

1,420,381

 

Non‑current liabilities

 

 

 

 

 

 

Long‑term funding debts

 

696,852

 

 

2,177,240

 

 

325,053

 

Deferred tax liabilities

 

54,335

 

 

92,609

 

 

13,826

 

Convertible notes

 

1,882,689

 

 

1,985,144

 

 

296,374

 

Other long-term liabilities

 

137,389

 

 

119,867

 

 

17,896

 

Total non‑current liabilities

 

2,771,265

 

 

4,374,860

 

 

653,149

 

TOTAL LIABILITIES

 

12,958,385

 

 

13,888,720

 

 

2,073,530

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

Class A Ordinary Shares

 

180

 

 

190

 

 

29

 

Class B Ordinary Shares

 

57

 

 

47

 

 

8

 

Treasury stock

 

-

 

 

(201,163

)

 

(30,033

)

Additional paid‑in capital

 

2,918,993

 

 

3,003,503

 

 

448,411

 

Statutory reserves

 

901,322

 

 

901,322

 

 

134,564

 

Accumulated other comprehensive income

 

11,273

 

 

(8,334

)

 

(1,244

)

Retained earnings

 

4,195,791

 

 

4,438,665

 

 

662,675

 

Non-controlling interests

 

40,193

 

 

40,619

 

 

6,064

 

TOTAL SHAREHOLDERS’ EQUITY

 

8,067,809

 

 

8,174,849

 

 

1,220,474

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

21,026,194

 

 

22,063,569

 

 

3,294,004

 

 

Page 8 of 15


 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Operations

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

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

2021

 

2022

 

 

2021

 

2022

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

New Consumption-Driven, Location-Based Services (1)

 

407,280

 

 

538,413

 

 

80,383

 

 

 

838,986

 

 

857,085

 

 

127,959

 

Technology-Driven Platform Services (1)

 

653,463

 

 

436,194

 

 

65,122

 

 

 

1,328,334

 

 

933,475

 

 

139,364

 

Credit-Driven Platform Services (1)

 

2,208,093

 

 

1,438,223

 

 

214,721

 

 

 

4,045,199

 

 

2,334,648

 

 

348,554

 

Loan facilitation and servicing fees- credit oriented (1)

 

1,594,835

 

 

667,446

 

 

99,647

 

 

 

2,655,255

 

 

923,185

 

 

137,828

 

Interest and financial services income and other revenues (1)

 

409,663

 

 

481,013

 

 

71,813

 

 

 

951,300

 

 

867,787

 

 

129,557

 

Guarantee income (1)

 

203,595

 

 

289,764

 

 

43,261

 

 

 

438,644

 

 

543,676

 

 

81,169

 

Total operating revenue

 

3,268,836

 

 

2,412,830

 

 

360,226

 

 

 

6,212,519

 

 

4,125,208

 

 

615,877

 

Operating cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(426,991

)

 

(551,367

)

 

(82,317

)

 

 

(860,460

)

 

(879,580

)

 

(131,318

)

Funding cost

 

(123,620

)

 

(127,896

)

 

(19,094

)

 

 

(253,380

)

 

(222,149

)

 

(33,166

)

Processing and servicing cost

 

(469,917

)

 

(473,631

)

 

(70,711

)

 

 

(866,633

)

 

(936,096

)

 

(139,755

)

Provision for credit losses of financing and interest receivables

 

(111,635

)

 

(119,219

)

 

(17,799

)

 

 

(283,633

)

 

(164,748

)

 

(24,596

)

Provision for credit losses of contract assets and receivables

 

(139,698

)

 

(130,017

)

 

(19,411

)

 

 

(358,635

)

 

(201,218

)

 

(30,041

)

Provision for credit losses of contingent liabilities of guarantee

 

(335,499

)

 

(377,424

)

 

(56,348

)

 

 

(559,284

)

 

(627,316

)

 

(93,656

)

Total operating cost

 

(1,607,360

)

 

(1,779,554

)

 

(265,680

)

 

 

(3,182,025

)

 

(3,031,107

)

 

(452,532

)

Gross profit

 

1,661,476

 

 

633,276

 

 

94,546

 

 

 

3,030,494

 

 

1,094,101

 

 

163,345

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

(494,814

)

 

(477,453

)

 

(71,282

)

 

 

(840,318

)

 

(837,897

)

 

(125,095

)

Research and development expenses

 

(130,447

)

 

(154,529

)

 

(23,071

)

 

 

(254,654

)

 

(307,035

)

 

(45,839

)

General and administrative expenses

 

(120,849

)

 

(113,127

)

 

(16,889

)

 

 

(251,950

)

 

(230,124

)

 

(34,357

)

Total operating expenses

 

(746,110

)

 

(745,109

)

 

(111,242

)

 

 

(1,346,922

)

 

(1,375,056

)

 

(205,291

)

Change in fair value of financial guarantee derivatives and loans at fair value

 

(1,362

)

 

304,552

 

 

45,468

 

 

 

74,399

 

 

567,420

 

 

84,714

 

Interest expense, net

 

(16,661

)

 

(15,942

)

 

(2,380

)

 

 

(36,350

)

 

(31,247

)

 

(4,665

)

Investment (loss)/ income

 

(2,208

)

 

6,132

 

 

915

 

 

 

(2,397

)

 

7,506

 

 

1,121

 

Other, net

 

42,586

 

 

24,674

 

 

3,684

 

 

 

60,835

 

 

45,719

 

 

6,826

 

Income before income tax expense

 

937,721

 

 

207,583

 

 

30,991

 

 

 

1,780,059

 

 

308,443

 

 

46,050

 

Income tax expense

 

(151,059

)

 

(40,133

)

 

(5,992

)

 

 

(282,316

)

 

(59,510

)

 

(8,885

)

 Net income

 

786,662

 

 

167,450

 

 

24,999

 

 

 

1,497,743

 

 

248,933

 

 

37,165

 

Less: net income attributable to non-controlling interests

 

505

 

 

2,675

 

 

399

 

 

 

47

 

 

6,059

 

 

905

 

Net income attributable to ordinary shareholders of the Company

 

786,157

 

 

164,775

 

 

24,600

 

 

 

1,497,696

 

 

242,874

 

 

36,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

2.13

 

 

0.46

 

 

0.07

 

 

 

4.07

 

 

0.69

 

 

0.10

 

Diluted

 

1.91

 

 

0.44

 

 

0.07

 

 

 

3.65

 

 

0.67

 

 

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per ADS attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

4.27

 

 

0.92

 

 

0.14

 

 

 

8.13

 

 

1.37

 

 

0.20

 

Diluted

 

3.82

 

 

0.88

 

 

0.13

 

 

 

7.30

 

 

1.33

 

 

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

368,245,622

 

 

357,773,159

 

 

357,773,159

 

 

 

368,257,243

 

 

354,109,101

 

 

354,109,101

 

Diluted

 

417,056,948

 

 

402,495,145

 

 

402,495,145

 

 

 

416,277,840

 

 

398,901,944

 

 

398,901,944

 

__________________________


(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.
 

Page 9 of 15


 

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.”



 

 

Page 10 of 15


 

LexinFintech Holdings Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(In thousands)

2021

 

2022

 

 

2021

 

2022

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Net income

 

786,662

 

 

167,450

 

 

24,999

 

 

 

1,497,743

 

 

248,933

 

 

37,165

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil tax

 

5,304

 

 

(20,615

)

 

(3,078

)

 

 

3,233

 

 

(19,607

)

 

(2,927

)

Total comprehensive income

 

791,966

 

 

146,835

 

 

21,921

 

 

 

1,500,976

 

 

229,326

 

 

34,238

 

Less: net income attributable to non-controlling interests

 

505

 

 

2,675

 

 

399

 

 

 

47

 

 

6,059

 

 

905

 

Total comprehensive income attributable to ordinary shareholders of the Company

 

791,461

 

 

144,160

 

 

21,522

 

 

 

1,500,929

 

 

223,267

 

 

33,333

 

 

Page 11 of 15


 

LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

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

2021

 

2022

 

 

2021

 

2022

 

 

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

 

786,157

 

 

164,775

 

 

24,600

 

 

 

1,497,696

 

 

242,874

 

 

36,260

 

Add: Share-based compensation expenses

 

43,969

 

 

38,250

 

 

5,710

 

 

 

92,482

 

 

79,818

 

 

11,917

 

Interest expense associated with convertible notes

 

11,166

 

 

11,471

 

 

1,713

 

 

 

22,300

 

 

22,410

 

 

3,346

 

Investment loss/(income)

 

2,208

 

 

(6,132

)

 

(915

)

 

 

2,397

 

 

(7,506

)

 

(1,121

)

Tax effects on Non-GAAP adjustments (2)

 

7,151

 

 

-

 

 

-

 

 

 

7,151

 

 

-

 

 

-

 

Adjusted net income attributable to ordinary shareholders of the Company

 

850,652

 

 

208,364

 

 

31,108

 

 

 

1,622,026

 

 

337,596

 

 

50,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

2.31

 

 

0.58

 

 

0.09

 

 

 

4.40

 

 

0.95

 

 

0.14

 

Diluted

 

2.04

 

 

0.52

 

 

0.08

 

 

 

3.90

 

 

0.85

 

 

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

4.62

 

 

1.16

 

 

0.17

 

 

 

8.81

 

 

1.91

 

 

0.28

 

Diluted

 

4.08

 

 

1.04

 

 

0.15

 

 

 

7.79

 

 

1.69

 

 

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares outstanding attributable to ordinary shareholders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

368,245,622

 

 

357,773,159

 

 

357,773,159

 

 

 

368,257,243

 

 

354,109,101

 

 

354,109,101

 

Diluted

 

417,056,948

 

 

402,495,145

 

 

402,495,145

 

 

 

416,277,840

 

 

398,901,944

 

 

398,901,944

 

__________________________

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

 

 

Page 12 of 15


 

LexinFintech Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

(In thousands)

2021

 

2022

 

 

2021

 

2022

 

 

RMB

 

RMB

 

US$

 

 

RMB

 

RMB

 

US$

 

Reconciliations of Non-GAAP EBIT to Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

786,662

 

 

167,450

 

 

24,999

 

 

 

1,497,743

 

 

248,933

 

 

37,165

 

Add: Income tax expense

 

151,059

 

 

40,133

 

 

5,992

 

 

 

282,316

 

 

59,510

 

 

8,885

 

Share-based compensation expenses

 

43,969

 

 

38,250

 

 

5,710

 

 

 

92,482

 

 

79,818

 

 

11,917

 

Interest expense, net

 

16,661

 

 

15,942

 

 

2,380

 

 

 

36,350

 

 

31,247

 

 

4,665

 

Investment loss/(income)

 

2,208

 

 

(6,132

)

 

(915

)

 

 

2,397

 

 

(7,506

)

 

(1,121

)

Non-GAAP EBIT

 

1,000,559

 

 

255,643

 

 

38,166

 

 

 

1,911,288

 

 

412,002

 

 

61,511

 

 

 

 

Page 13 of 15


 

Additional Credit Information

Vintage Charge Off Curve

https://cdn.kscope.io/1881237507b7b6ebd7a1c2b714c17f5b-img85518425_0.jpg 

 

Dpd30+/GMV by Performance Windows

https://cdn.kscope.io/1881237507b7b6ebd7a1c2b714c17f5b-img85518425_1.jpg 

 

 

Page 14 of 15


 

First Payment Default 30+

https://cdn.kscope.io/1881237507b7b6ebd7a1c2b714c17f5b-img85518425_2.jpg 

Page 15 of 15