Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q1 2024 Earnings Presentation
24 slides from Lexinfintech's earnings presentation, May 23, 2024
Slide 1: Investor Presentation First Quarter 2024 Results
Investor Presentation First 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 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 • Around 160 funding partners1 • Over 210 million registered users1 • Over 2900 merchant partners2 • Loan balance of Rmb121.5 billion1 1. As of 31 March 2024, or accumulativ
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: 1Q24 Highlights
1Q24 Highlights Loan originations Total operating Net income created revenue generated 58.0 billion 3.2 billion 202 million down 4.8% YoY up 8.7% YoY down 38.4% YoY 10
Slide 15: Key Financials
Key Financials (Rmb000) 1Q23 4Q23 1Q24 QoQ YoY Credit facilitation service income 2,115,808 2,727,020 2,648,478 -2.9% 25.2% Tech-empowerment service income 367,932 426,882 361,543 -15.3% -1.7% Installment e-commerce platform service income 499,159 355,534 231,909 -34.8% -53.5% Total operating revenu
Slide 16: Steady User Increase in Amount with Upgraded User Segment
Steady User Increase in Amount with Upgraded User Segment Number (In Millions) of Registered Users Number (In Millions) of Active Users QoQ QoQ +2.5% -5.3% 210 215 199 204 194 5.0 5.0 4.9 4.7 4.5 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 12
Slide 17: Strike a Healthy Balance between Loan Growth and Asset Quality
Strike a Healthy Balance between Loan Growth and Asset Quality Loan (RMB bn) Originations Outstanding (RMB bn) Loan Balance QoQ QoQ -5.3% -2.0% 120.7 124.0 121.5 114.1 107.0 63.9 63.3 60.9 61.2 58.0 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1. Loan originations represents the total amount of
Slide 18: Stable Rebound Trend Amid Macro Headwinds and Seasonality
Stable Rebound Trend Amid Macro Headwinds and Seasonality Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ -7.6% 7.2% 11.2% 3,509 3,509 Installment E-commerce Platform Service Income 3,242 2,983 3,056 Technology-Driven Platform Services Income Credit-Driven Platform Services Income 81.7%
Slide 19: Optimized Allocation of Resources
Optimized Allocation of Resources Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ -4.7% 14% Sales and marketing expenses Research and development expenses 667 671 674 General and administrative expenses 21% 623 642 65% 1Q23 2Q23 3Q23 4Q23 1Q24 1. Breakdown of operating expenses for 1Q2
Slide 20: Q1 Profitability largely driven by controlled volume
Q1 Profitability largely driven by controlled volume Recurring (RMBm) Net Profit (1) Recurring Net Margin (1) QoQ QoQ -14.5% -0.5ppt 371 356 327 11.6% 11.0% 10.6% 236 202 6.7% 6.2% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1. Excluding after tax impact of investment related impairment losses
Slide 21: Appendix
03 Appendix
Slide 22: P&L Statement
P&L Statement For the Three Months Ended March 31, (In thousands, except for share and per share data) 2023 2024 RMB RMB US$ Operating revenue: Credit facilitation service income 2,115,808 2,648,478 366,811 Loan facilitation and servicing fees-credit oriented 964,171 1,417,248 196,287 Guarantee inco
Slide 23: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) March 31, 2023 March 31, 2024 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,291,986 1,937,694 268,368 Restricted cash 2,606,968 1,693,636 234,566 Restricted term deposit and short-term investments 1,451,189 315,202 43,655 Short-term financing re
Slide 24: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) March 31, 2023 March 31, 2024 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 36,759 33,233 4,603 Amounts due to related parties 6,706 4,902 679 Short-term borrowings 1,453,320 579,522 80,263 Short-term funding debts 4,602,871 2,417,994 334,888 Def
LexinFintech Holdings — Q1 2024 Earnings Presentation on 6ix