Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q4 2023 Earnings Presentation
25 slides from Lexinfintech's earnings presentation, Mar 20, 2024
Slide 1: Investor Presentation: Fourth Quarter and Full Year 2023 Results
Investor Presentation Fourth Quarter and Full Year 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 150 funding partners1 • Around 210 million registered users1 • Over 2900 merchant partners2 • Loan balance of Rmb124.0 billion1 1. As of 31 Decmber 2023, or accumulat
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: 4Q23 Highlights
4Q23 Highlights Loan originations Total operating Recurring created revenue Net income (1) generated 61.2 billion 3.5 billion 236 million Up 9.2% YoY Up 15.1% YoY down 21.7% YoY 1. Excluding after tax impact of RMB224 million of investment related impairment losses , the net profit for the fourth qu
Slide 15: Key Financials
Key Financials (Rmb000) 4Q22 3Q23 4Q23 QoQ YoY Credit facilitation service income 1,963,503 2,685,574 2,727,020 1.5% 38.9% Tech-empowerment service income 412,769 453,944 426,882 -6.0% 3.4% Installment e-commerce platform service income 673,994 369,417 355,534 -3.8% -47.2% Total operating revenue 3,
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 +2.6% -2.7% 204 210 194 199 189 5.3 5.0 5.0 4.9 4.7 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 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 -3.3% +2.7% 120.7 124.0 114.1 107.0 63.9 63.3 99.6 60.9 61.2 56.1 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 1. Loan originations represents the total amount of
Slide 18: Stable Rebound Trend Amid Macro Headwinds
Stable Rebound Trend Amid Macro Headwinds Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ 0.0% 10% 3,509 3,509 Installment e-commerce platform service income 12% 3,050 2,983 3,056 Technology-Driven Platform Services Income Credit-Driven Platform Services Income 78% 4Q22 1Q23 2Q23 3Q23 4Q
Slide 19: Optimized Allocation of Resources
Optimized Allocation of Resources Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ +8.2% 16% Sales and marketing expenses 656 667 671 674 Research and development expenses 623 20% General and administrative expenses 64% 4Q22 1Q23 2Q23 3Q23 4Q23 1. Breakdown of operating expenses for 4Q2
Slide 20: Q4 Profitability Impacted by Impairments and Asset Quality Fluctuations
Q4 Profitability Impacted by Impairments and Asset Quality Fluctuations Recurring (RMBm) Net Profit (1) Recurring Net Margin (1) QoQ QoQ -36.4% -3.9 pct 371 356 327 301 11.6% 11.0% 10.6% 9.9% 236 6.7% 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 1. For 23Q4 recurring net profit of 236 million a
Slide 21: Annual Summary
Annual Summary Loan Originations Outstanding Loan Balance Operating Revenue (RMBbn) (RMBbn) (RMBm) YoY YoY YoY +21.9% +24.5% +32.3% 13,057 124 249 205 100 9,866 2022 2023 2022 2023 2022 2023 Gross Margin Operating Expenses Recurring Net Profit (1) (RMBm) (RMBm) YoY YoY YoY +3.8ppt -2.5% +56.2% 34.6%
Slide 22: Appendix
03 Appendix
Slide 23: P&L Statement
P&L Statement For the Three Months Ended December 31, (In thousands, except for share and per share data) 2022 2023 RMB RMB US$ Operating revenue: Credit facilitation service income 1,963,503 2,727,020 384,093 Loan facilitation and servicing fees-credit oriented 849,240 1,558,588 219,523 Guarantee i
Slide 24: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) December 31, 2022 December 31, 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,494,150 2,624,719 369,684 Restricted cash 1,267,512 1,433,502 201,905 Restricted term deposit and short-term investments 1,331,858 305,182 42,984 Short-term financ
Slide 25: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) December 31, 2022 December 31, 2023 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 25,970 49,801 7,014 Amounts due to related parties 4,669 2,958 417 Short-term borrowings 1,168,046 502,013 70,707 Short-term funding debts 4,385,253 3,483,196 490,5
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