Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q1 2023 Earnings Presentation
25 slides from Lexinfintech's earnings presentation, May 23, 2023
Slide 1: Investor Presentation First Quarter 2023 Results
Investor Presentation First Quarter 2023 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 Focus
Addressing the Market with Different Focus Core business supported by new growth opportunities Credit Facilitation Tech-Empowerment Installment Service Service E-commerce Platform Service 01
Slide 5: Commitment to 2C2B2F
Commitment to 2C2B2F Connecting consumers to business and financial institutions Business and Financial Institutions Consumers • Over 140 funding partners1 • Over 190 million registered users1 • Over 2600 merchant partners2 • Loan balance of Rmb100.8 billion1 1. As of 31 March 2023, or accumulative
Slide 6: A Seamless Experience for New-Generation Consumers
A Seamless Experience for New-Generation Consumers Omni-channels and multipronged 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 the buildup of in-house capability and competitiveness Local Fintech deployment upgrade Channel co-building Digital infrastructure Product design Quality assets Risk management Operational efficiency Custome
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 • Dynamic credit approval process Risk Compliance • Constant dialogue with regulators • Effective matching of individ
Slide 9: Optimize Customer Operation Strategy to Deal with External Uncertainty
Optimize Customer Operation Strategy to Deal with 工作不足External Uncertainty 明年计划 Premium Customer Focused • To increase the proportion of premium customers while controlling the access of high-pricing/high-risk customers • To take the initiative to seek the best balance of scale vs. risk • Stable ove
Slide 10: Lexin Accumulated Core Capabilities
Lexin Accumulated Core Capabilities Customer Service and Risk Management A Operation A • Abundant internal data B • High-quality external data • Customer operation by • Model iteration segmentation • AB Testing • Feature and qualification identification • Tailor-made products and services D B Techno
Slide 11: Lexin Smart Business Engine
Lexin Smart Business Engine Credit Application Approving Smart Business Engine Customer Alert Label Transaction Acquisition Summarize 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 Acquired high-quality customers through multi-scenarios Enlarged funding pool and consumption scenarios Increased scale and Lexin profitability Eco-System Empowered financial institutions Enriched data, optimized models and merchants & technology capabilities LePartner 09
Slide 13: Financial Update
02 Financial Update
Slide 14: 1Q23 Highlights
1Q23 Highlights Loan originations Total operating Net income created revenue generated 60.9 billion 3.0 billion 327.5 million Up 41.2% YoY Up 74.2% YoY Up 301.9% YoY 10
Slide 15: Key Financials
Key Financials (Rmb000) 1Q22 4Q22 1Q23 QoQ YoY Credit facilitation service income 896,425 1,963,503 2,115,808 7.8% 136.0% Tech-empowerment service income 497,281 412,769 367,932 -10.9% -26.0% Installment e-commerce platform service income 318,672 673,994 499,159 -25.9% 56.6% Total operating revenue
Slide 16: Steady User Increase in Amount
Steady User Increase in Amount Number of Registered Users (In Millions) Number of Active Users (In Millions) QoQ QoQ +2.6% -4.9% 194 189 184 178 6.1 5.7 5.6 5.3 5.0 171 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 13
Slide 17: Steady Recovery Upwards to New Scale
Steady Recovery Upwards to New Scale Loan Originations (RMB bn) Outstanding Loan Balance (RMB bn) QoQ QoQ +8.7% +7.4% 60.9 107.0 99.6 56.2 56.1 94.6 83.8 86.6 49.1 43.2 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1. Loan originations represents the total amount of loans originated during each
Slide 18: Stable V-shaped Trend Back to Normality
Stable V-shaped Trend Back to Normality Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ -2.2% 16.7% 3,050 Installment e-commerce platform service 2,983 income 2,690 2,413 12.3% Tech-empowerment service income 1,712 Credit facilitation service income 70.8% 1Q22 2Q22 3Q22 4Q22 1Q23 1. Brea
Slide 19: Optimized Allocation of Resources
Optimized Allocation of Resources Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ +1.6% 745 15% Sales & Marketing 669 19% 667 656 Research & Development 630 66% General & Administrative 1Q22 2Q22 3Q22 4Q22 1Q23 1. Breakdown of operating expenses for 1Q23 16
Slide 20: Profitability Grows as Turnaround Recovery Progresses
Profitability Grows as Turnaround Recovery Progresses Net Profit (RMBm) Net Margin QoQ QoQ +8.7% +1.1ppt 327 301 276 11.0% 10.2% 9.9% 167 6.9% 4.8% 81 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 17
Slide 21: Steady Improvement amid Uncertainties
Steady Improvement amid Uncertainties 30+ Delinquency Ratio 90+ Delinquency Ratio QoQ QoQ -5bps +0bps 2.63% 2.66% 2.53% 2.53% 4.85% 2.40% 4.61% 4.62% 4.57% 4.40% 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 18
Slide 22: Appendix
03 Appendix
Slide 23: P&L Statement
P&L Statement For the Three Months Ended March 31, (In thousands, except for share and per share data) 2022 2023 RMB RMB US$ Operating revenue: Credit facilitation service income 896,425 2,115,808 308,085 Loan facilitation and servicing fees-credit oriented 255,739 964,171 140,394 Guarantee income 2
Slide 24: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) March 31, 2022 March 31, 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,303,519 2,291,986 333,739 Restricted cash 1,454,431 2,606,968 379,604 Restricted term deposit and short-term investments 1,851,454 1,451,189 211,309 Short-term financing
Slide 25: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) March 31, 2022 March 31, 2023 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 25,378 36,759 5,353 Amounts due to related parties 24,539 6,706 976 Short-term borrowings 1,737,830 1,453,320 211,620 Short-term funding debts 2,373,313 4,602,871 670,230
LexinFintech Holdings — Q1 2023 Earnings Presentation on 6ix