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LexinFintech Holdings Ltd. Reports First Quarter 2022 Unaudited Financial Results

LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd.

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:

  • Total number of registered users reached 171 million as of March 31, 2022, representing an increase of 29.4% from 132 million as of March 31, 2021; and users with credit line reached 37.8 million as of March 31, 2022, up by 24.8% from 30.3 million as of March 31, 2021.

  • As of March 31, 2021, we cumulatively originated RMB702 billion in loans, an increase of 40.7% from RMB499 billion a year ago.

  • User base

  • Number of active users1 who used our loan products in the first quarter of 2022 was 5.7 million, representing a decrease of 30.7% from 8.2 million in the first quarter of 2021.

  • Number of new active users who used our loan products in the first quarter of 2022 was 0.7 million, representing a decrease of 63.1% from 1.8 million in the first quarter of 2021.

  • Loan facilitation business

  • Total loan originations2 in the first quarter of 2022 was RMB43.2 billion, a decrease of 19.8% from RMB53.8 billion in the first quarter of 2021.

  • Total outstanding principal balance of loans2 reached RMB83.8 billion as of March 31, 2022, representing an increase of 1.7% from RMB82.4 billion as of March 31, 2021.

  • Lexin has continued to expand financing services for small and micro business owners. In the first quarter, loan originations for small and micro business owners reached RMB4.2 billion.

  • Number of orders placed on our platform in the first quarter of 2022 was 27.9 million, representing a decrease of 64.6% from 78.6 million in the first quarter of 2021.

  • Credit performance

  • 90 day+ delinquency ratio was 2.40% as of March 31, 2022.

  • First payment default rate (30 day+) for new loan originations was below 1% as of March 31, 2022.

  • Technology-Driven Platform Services

  • In the first quarter of 2022, we had served over 100 customers with our technology-driven platform services.

  • In the first quarter of 2022, our customer retention rate3 of technology-driven platform services was over 80%.

  • New Consumption-Driven, Location-Based Services

  • The GMV4 in the first quarter of 2022 amounted to RMB 669 million, representing a decrease of 10.7% from RMB749 million in the first quarter of 2021.

  • In the first quarter of 2022, we served over 271,000 users and 2,300 merchants under new consumption-driven, location-based services.

  • Other operational highlights

  • The weighted average tenor of loans originated on our platform in the first quarter of 2022 was approximately 12.3 months, representing an increase from 11.7 months in the first quarter of 2021. The nominal APR5 was 14.4% for the first quarter of 2022, representing a decrease from 15.5% in the first quarter of 2021.

    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.

First Quarter 2022 Financial Highlights:

  • Total operating revenue was RMB1,712 million, representing a decrease of 41.8% from the first quarter of 2021. Revenue from new consumption-driven, location-based services was RMB319 million, representing a decrease of 26.2% from the first quarter of 2021. Revenue from technology-driven platform services was RMB497 million, representing a decrease of 26.3% from the first quarter of 2021. Revenue from credit-driven platform services was RMB896 million, representing a decrease of 51.2% from the first quarter of 2021.

  • Gross profit was RMB461 million, representing a decrease of 66.3% from the first quarter of 2021.

  • Net income attributable to ordinary shareholders of the Company was RMB78.1 million, representing a decrease of 89.0% from the first quarter of 2021. Net income per ADS attributable to ordinary shareholders of the Company was RMB0.42 on a fully diluted basis.

  • Non-GAAP EBIT6 was RMB156 million, representing a decrease of 82.8% from the first quarter of 2021.

  • Adjusted net income attributable to ordinary shareholders of the Company6 was RMB129 million, representing a decrease of 83.2% from the first quarter of 2021. Adjusted net income per ADS attributable to ordinary shareholders of the Company6 was RMB0.62 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.

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.

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.

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.

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.

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.

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.

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

 

 

 

 

 

 

 

 

 

 

 


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

 

__________________________

(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.

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."

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

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

 

 

 

 

 

 

 

 


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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