6-K
LexinFintech Holdings Ltd. (LX)
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
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 ratio^1^ 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 users^2^ 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 originations^3^ 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 loans^3^ 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 APR^4^ was 14.0% for the loans originated during the third quarter of 2021. |
|---|---|
| • | The GMV^5^ 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 EBIT^6^ was RMB750 million, representing an increase of 50.3% from the third quarter of 2020. |
| --- | --- |
| • | Adjusted net income^6^ 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 ADS^6^ 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: [email protected]
Media inquiries:
Limin Chen
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: [email protected]
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 | ||||
| Restricted cash | 1,112,152 | 1,414,669 | ||||
| Restricted time deposits | 1,779,458 | 1,702,386 | ||||
| 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 | ||||
| Loans at fair value | 381,393 | 154,138 | ||||
| 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 | ||||
| Prepaid expenses and other current assets | 1,004,845 | 998,074 | ||||
| Amounts due from related parties | 941 | 6,283 | ||||
| Deposits to insurance companies and guarantee companies | 1,066,281 | 1,527,696 | ||||
| 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 | ||||
| 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 | ||||
| Inventories, net | 47,170 | 52,460 | ||||
| Total current assets | 16,418,182 | 16,284,247 | ||||
| Non‑current assets | ||||||
| Restricted cash | 163,999 | 161,107 | ||||
| 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 | ||||
| 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 | ||||
| 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 | ||||
| Property, equipment and software, net | 125,694 | 156,759 | ||||
| Land use rights, net | 1,000,467 | 974,667 | ||||
| Long‑term investments | 521,802 | 471,370 | ||||
| Deferred tax assets | 747,332 | 866,043 | ||||
| Other assets | 462,285 | 940,069 | ||||
| Total non‑current assets | 3,926,983 | 4,286,541 | ||||
| TOTAL ASSETS | 20,345,165 | 20,570,788 | ||||
| - | ||||||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Accounts payable | 42,961 | 18,939 | ||||
| Amounts due to related parties | 67,514 | 52,283 | ||||
| Short‑term borrowings | 1,827,063 | 1,768,792 | ||||
| Short‑term funding debts | 4,685,935 | 3,153,038 | ||||
| Accrued interest payable | 36,484 | 41,107 | ||||
| Deferred guarantee income | 694,582 | 318,977 | ||||
| Contingent guarantee liabilities | 1,738,787 | 1,128,975 | ||||
| Accrued expenses and other current liabilities | 2,926,347 | 3,532,990 | ||||
| Total current liabilities | 12,019,673 | 10,015,101 | ||||
| Non‑current liabilities | ||||||
| Long‑term funding debts | 825,814 | 701,168 | ||||
| Deferred tax liabilities | 21,046 | 36,652 | ||||
| Convertible notes | 1,920,227 | 1,913,449 | ||||
| Other long-term liabilities | 27,667 | 146,559 | ||||
| Total non‑current liabilities | 2,794,754 | 2,797,828 | ||||
| TOTAL LIABILITIES | 14,814,427 | 12,812,929 | ||||
| SHAREHOLDERS’ EQUITY: | ||||||
| Class A Ordinary Shares | 176 | 180 | ||||
| Class B Ordinary Shares | 58 | 57 | ||||
| Additional paid‑in capital | 2,724,006 | 2,870,322 | ||||
| Statutory reserves | 649,234 | 649,234 | ||||
| Accumulated other comprehensive income | 3,308 | 5,605 | ||||
| Retained earnings | 2,113,956 | 4,191,845 | ||||
| Non-controlling interests | 40,000 | 40,616 | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 5,530,738 | 7,757,859 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 20,345,165 | 20,570,788 |
All values are in US Dollars.
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 | 1,473,075 | 1,235,391 | ||||||||||||
| Membership services | 27,602 | 4,390 | 76,098 | 39,712 | ||||||||||||
| Other services | 26,048 | 23,568 | 63,408 | 64,740 | ||||||||||||
| Online direct sales and services income | 515,609 | 428,181 | 1,612,581 | 1,339,843 | ||||||||||||
| Loan facilitation and servicing fees-credit oriented | 1,058,468 | 1,187,060 | 2,752,731 | 3,842,315 | ||||||||||||
| Interest and financial services income and other revenues | 368,702 | 414,192 | 946,224 | 1,365,492 | ||||||||||||
| Guarantee income | 597,542 | 164,052 | 1,981,113 | 602,696 | ||||||||||||
| Credit-oriented services income | 2,024,712 | 1,765,304 | 5,680,068 | 5,810,503 | ||||||||||||
| Loan facilitation and servicing fees-performance based | 580,358 | 692,630 | 1,251,341 | 1,808,804 | ||||||||||||
| Loan facilitation and servicing fees-volume based | 33,375 | 82,680 | 68,104 | 222,164 | ||||||||||||
| Platform-based services income | 613,733 | 775,310 | 1,319,445 | 2,030,968 | ||||||||||||
| Total operating revenue | 3,154,054 | 2,968,795 | 8,612,094 | 9,181,314 | ||||||||||||
| Operating cost: | ||||||||||||||||
| Cost of sales | (475,824 | ) | (436,973 | ) | ) | (1,475,704 | ) | (1,297,433 | ) | ) | ||||||
| Funding cost | (142,658 | ) | (106,013 | ) | ) | (449,102 | ) | (359,393 | ) | ) | ||||||
| Processing and servicing cost | (361,839 | ) | (523,611 | ) | ) | (1,031,248 | ) | (1,390,244 | ) | ) | ||||||
| Provision for credit losses of financing receivables | (217,222 | ) | (216,344 | ) | ) | (628,384 | ) | (499,977 | ) | ) | ||||||
| Provision for credit losses of contract assets and receivables | (104,452 | ) | (127,958 | ) | ) | (254,578 | ) | (486,593 | ) | ) | ||||||
| Provision for credit losses of contingent liabilities of guarantee | (873,936 | ) | (51,374 | ) | ) | (2,660,101 | ) | (610,658 | ) | ) | ||||||
| Total operating cost | (2,175,931 | ) | (1,462,273 | ) | ) | (6,499,117 | ) | (4,644,298 | ) | ) | ||||||
| Gross profit | 978,123 | 1,506,522 | 2,112,977 | 4,537,016 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing expenses | (359,828 | ) | (490,934 | ) | ) | (931,130 | ) | (1,331,252 | ) | ) | ||||||
| Research and development expenses | (118,325 | ) | (130,996 | ) | ) | (379,141 | ) | (385,650 | ) | ) | ||||||
| General and administrative expenses | (102,501 | ) | (100,463 | ) | ) | (325,820 | ) | (352,413 | ) | ) | ||||||
| Total operating expenses | (580,654 | ) | (722,393 | ) | ) | (1,636,091 | ) | (2,069,315 | ) | ) | ||||||
| Change in fair value of financial guarantee derivatives, net | (21,833 | ) | (92,268 | ) | ) | (381,594 | ) | 42,166 | ||||||||
| Change in fair value of loans at fair value | (11,356 | ) | 11,513 | (11,356 | ) | (48,522 | ) | ) | ||||||||
| Interest expense, net | (23,450 | ) | (14,023 | ) | ) | (59,468 | ) | (50,373 | ) | ) | ||||||
| Investment-related impairment | (35,370 | ) | - | (35,370 | ) | - | ||||||||||
| Investment (loss)/ income | (1,293 | ) | (1,656 | ) | ) | 9,321 | (4,053 | ) | ) | |||||||
| Others, net | 85,241 | (946 | ) | ) | 83,295 | 59,889 | ||||||||||
| Income before income tax expense | 389,408 | 686,749 | 81,714 | 2,466,808 | ||||||||||||
| Income tax (expense)/benefit | (44,713 | ) | (105,987 | ) | ) | 3,590 | (388,303 | ) | ) | |||||||
| Net income | 344,695 | 580,762 | 85,304 | 2,078,505 | ||||||||||||
| Less: Net income attributable to non-controlling interests | - | 279 | - | 326 | ||||||||||||
| Net income attributable to ordinary shareholders of the Company | 344,695 | 580,483 | 85,304 | 2,078,179 | ||||||||||||
| Net income per ordinary share attributable to ordinary shareholders of the Company | ||||||||||||||||
| Basic | 0.94 | 1.57 | 0.23 | 5.64 | ||||||||||||
| Diluted | 0.87 | 1.43 | 0.30 | 5.08 | ||||||||||||
| Net income per ADS attributable to ordinary shareholders of the Company | ||||||||||||||||
| Basic | 1.89 | 3.15 | 0.47 | 11.28 | ||||||||||||
| Diluted | 1.74 | 2.86 | 0.59 | 10.17 | ||||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||
| Basic | 364,991,825 | 368,873,003 | 364,328,223 | 368,375,020 | ||||||||||||
| Diluted | 410,968,465 | 414,206,884 | 411,274,741 | 415,500,045 |
All values are in US Dollars.
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 | 85,304 | 2,078,505 | ||||||||||
| Other comprehensive (loss)/ income | ||||||||||||||
| Foreign currency translation adjustment, net of nil tax | (3,687 | ) | (936 | ) | ) | (3,288 | ) | 2,297 | ||||||
| Total comprehensive income | 341,008 | 579,826 | 82,016 | 2,080,802 | ||||||||||
| Less: Net income attributable to non-controlling interests | - | 279 | - | 326 | ||||||||||
| Total comprehensive income attributable to ordinary shareholders of the Company | 341,008 | 579,547 | 82,016 | 2,080,476 |
All values are in US Dollars.
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 | 85,304 | 2,078,179 | |||||||
| Add: Share-based compensation expenses | 49,193 | 47,363 | 152,192 | 139,845 | |||||||
| Interest expense associated with convertible notes | 12,127 | 11,375 | 36,246 | 33,675 | |||||||
| Investment-related impairment | 35,370 | - | 35,370 | - | |||||||
| Investment loss/(income) | 1,293 | 1,656 | (9,321 | ) | 4,053 | ||||||
| Tax effects on Non-GAAP adjustments(1) | - | - | - | 7,151 | |||||||
| Adjusted net income attributable to ordinary shareholders of the Company | 442,678 | 640,877 | 299,791 | 2,262,903 | |||||||
| Adjusted net income per ordinary share attributable to ordinary shareholders of the Company | |||||||||||
| Basic | 1.21 | 1.74 | 0.82 | 6.14 | |||||||
| Diluted | 1.08 | 1.55 | 0.73 | 5.45 | |||||||
| Adjusted net income per ADS attributable to ordinary shareholders of the Company | |||||||||||
| Basic | 2.43 | 3.47 | 1.65 | 12.29 | |||||||
| Diluted | 2.15 | 3.09 | 1.46 | 10.89 | |||||||
| Weighted average number of ordinary shares outstanding | |||||||||||
| Basic | 364,991,825 | 368,873,003 | 364,328,223 | 368,375,020 | |||||||
| Diluted | 410,968,465 | 414,206,884 | 411,274,741 | 415,500,045 |
All values are in US Dollars.
(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 | 85,304 | 2,078,505 | |||||||
| Add: Income tax expense/(benefit) | 44,713 | 105,987 | (3,590 | ) | 388,303 | ||||||
| Share-based compensation expenses | 49,193 | 47,363 | 152,192 | 139,845 | |||||||
| Interest expense, net | 23,450 | 14,023 | 59,468 | 50,373 | |||||||
| Investment-related impairment | 35,370 | - | 35,370 | - | |||||||
| Investment loss/(income) | 1,293 | 1,656 | (9,321 | ) | 4,053 | ||||||
| Non-GAAP EBIT | 498,714 | 749,791 | 319,423 | 2,661,079 |
All values are in US Dollars.
Page 12 of 12