Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q2 2024 Earnings Presentation
24 slides from Lexinfintech's earnings presentation, 2024
Slide 1: Investor Presentation Second Quarter 2024 Results
Investor Presentation Second Quarter 2024 Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by LexinFintech Holdings Ltd (the “Company”) pursuant to Section 5(d) of the U.S. Securities Act of 1933, as amended (the “Securities Act”) solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell
Slide 3: Company Overview
01 Company Overview
Slide 4: Addressing the Market with Different Focuses
Addressing the Market with Different Focuses Core business supported by new growth opportunities Tech- Installment Credit Facilitation Empowerment E-commerce Service Service Platform Service 01
Slide 5: Commitment to 2C2B2F
Commitment to 2C2B2F Connecting consumers to business and financial institutions 2B&2F 2C (Business and Financial Institutions) (Consumers) • Around 162 funding partners1 • Over 219 million registered users1 • Over 2,984 merchant partners2 • Loan balance of RMB115.2 billion1 1. As of 30 June 2024, o
Slide 6: A Seamless Experience for New-Generation Consumers
A Seamless Experience for New-Generation Consumers Omni-channels and multiple access for our users Consumer credit Maiya E-commerce 03
Slide 7: Empowering the Digitalization of Financial Institutions
Empowering the Digitalization of Financial Institutions Supporting financial institutions in building in-house capabilities and competitiveness Local Fintech deployment upgrade Channel co-building Digital infrastructure Product design Quality assets Risk management Operational efficiency Customer ma
Slide 8: Priorities Unchanged in Execution
Priorities Unchanged in Execution Staying compliant and competitive • Self-examination following the • Enhanced risk identification and same requirements as the 13 modeling platforms Risk • Dynamic credit approval process Compliance • Constant dialogue with regulators Management • Effective matching
Slide 9: Optimize Customer Development Strategy to Deal with External Uncertainty
Optimize Customer Development Strategy to Deal 工作不足 with External 明年计划 Uncertainty Premium Customer Focused • Increase the mix of premium customers & control the access of high-risk customers • Strike a balance between scale and risk • Stable risk performance & high quality of new loan originations
Slide 10: Core Capabilities of Lexin
Core Capabilities of Lexin Customer Service and Risk Management A Operation A • Rich internal data & high-quality B external data • Customer operation by segment • Model upgrade • Customer profile and credit • AB Testing identification • Tailor-made products and services D B Technology and Data Coop
Slide 11: Lexin Smart Business Engine
Lexin Smart Business Engine Credit Application Approving Smart Business Alert Engine Customer Label Transaction Acquisition Summa- rize Acquisition Promoting Process Auto-Matching & Connecting Simulate IDSS Big Data Verify Insight Post Lending Collection & Quality Controlling 08
Slide 12: Lexin Eco-System
Lexin Eco-System Acquiring high-quality customers through multi-scenarios Huge funding pool & diverse consumption Larger scale & higher scenarios Lexin profitability Eco-System Empowering financial institutions Rich data, optimized models and merchants & technology capabilities LePartner 09
Slide 13: Financial Update
02 Financial Update
Slide 14: 2Q24 Highlights
2Q24 Highlights Loan originations Operating revenue Net income 51.0 billion 3.6 billion 226 million down 12.0% QoQ up 12.3% QoQ up 12.4% QoQ 10
Slide 15: Key Financials
Key Financials (RMB 000) 2Q23 1Q24 2Q24 QoQ YoY Credit facilitation service income 2,137,718 2,648,478 2,669,093 0.8% 24.9% Tech-empowerment service income 391,695 361,543 534,548 47.9% 36.5% Installment e-commerce platform service income 526,399 231,909 437,047 88.5% -17.0% Total operating revenue
Slide 16: Steady User Development with a Huge User Base
Steady User Development with a Huge User Base Registered Users Continued to Grow Cumulative Active Users Maintained Rising Trend (In Millions) (In Millions) QoQ QoQ +2.0% +1.5% 219 32.5 215 32.0 210 31.5 204 30.9 199 30.5 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 12
Slide 17: Slower Loan Growth due to Proactively Tightening Credit Standards
Slower Loan Growth due to Proactively Tightening Credit Standards Loan Originations Growth Slowed down Loan Balance Reached RMB115 bn (RMB bn) (RMB bn) QoQ QoQ -12.0% -5.2% 63.9 63.3 124.0 61.2 58.0 51.1 121.5 120.7 115.2 114.1 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 1. Loan originations r
Slide 18: Solid Operating Revenue Growth Driven by Higher Take Rate
Solid Operating Revenue Growth Driven by Higher Take Rate Solid Operating Revenue Growth 73% of Revenue from Credit Facilitation Service (RMB mn) QoQ +12.3% 3,641 12% 3,509 3,509 Credit facilitation service income 15% 3,242 Tech-empowerment service income 3,056 Installment e-commerce platform servic
Slide 19: Expenses Increased due to Strategic Overseas Market Expansion
Expenses Increased due to Strategic Overseas Market Expansion Operating Expenses Increased 66% of Expenses were Sales Related (RMBm) QoQ +10.8% 711 14% 671 674 Sales and marketing expenses 642 Research and development 20% 623 expenses General and administrative expenses 66% 2Q23 3Q23 4Q23 1Q24 2Q24
Slide 20: Robust Profit Growth with Stable Net Margin
Robust Profit Growth with Stable Net Margin Recurring Net Profit (1) saw robust growth Recurring Net Margin (1) Stabilized (RMBm) QoQ QoQ flat +12.4% 371 356 11.6% 10.6% 236 227 202 6.7% 6.2% 6.2% 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 1. Excluding after tax impact of investment related i
Slide 21: Appendix
03 Appendix
Slide 22: P&L Statement
P&L Statement For the Three Months Ended June 30, (In thousands, except for share and per share data) 2023 2024 RMB RMB US$ Operating revenue: Credit facilitation service income 2,137,718 2,669,093 367,280 Loan facilitation and servicing fees-credit oriented 945,919 1,433,416 197,245 Guarantee incom
Slide 23: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) March 31, 2024 June 30, 2024 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,937,694 2,093,712 288,104 Restricted cash 1,693,636 2,079,970 286,213 Restricted term deposit and short-term investments 315,202 345,192 47,500 Short-term financing recei
Slide 24: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) March 31, 2024 June 30, 2024 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 33,233 42,968 5,913 Amounts due to related parties 4,902 9,167 1,261 Short-term borrowings 579,522 608,093 83,676 Short-term funding debts 2,417,994 2,345,753 322,786 Defe
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