Financial Performance - Revenues from variable interest entities (VIEs) accounted for 94.2%, 86.3%, and 77.2% of total revenues in 2022, 2023, and 2024, respectively[26]. - For the year ended December 31, 2024, total operating revenue reached RMB 14,203,594 thousand, with third-party revenues contributing RMB 10,958,115 thousand[52]. - The net income attributable to ordinary shareholders for the year ended December 31, 2024, was RMB 1,100,460 thousand, reflecting a stable performance[52]. - For the year ended December 31, 2023, total operating revenue was RMB 13,057,082 thousand, with third-party revenues at RMB 11,264,532 thousand[52]. - Total operating revenue for the year ended December 31, 2022, was RMB 9,865,811 thousand, with third-party revenues contributing RMB 9,297,734 thousand[53]. - Gross profit for the year ended December 31, 2024, was RMB 5,026,228 thousand, indicating effective cost management[52]. - Net income attributable to ordinary shareholders for the year was RMB 819,752 thousand, after accounting for income tax expense of RMB (202,640) thousand[53]. - The total operating cost for the year ended December 31, 2024, was RMB 9,177,366 thousand, demonstrating a significant scale of operations[52]. Dividends and Capital Contributions - Dividends made to investors were nil, RMB136 million, and RMB164 million (US$22.5 million) for the years ended December 31, 2022, 2023, and 2024[39]. - The aggregate amount of capital contributions by LexinFintech Holdings Ltd. to PRC subsidiaries was RMB3,756 million and RMB3,812 million (US$522 million) as of December 31, 2023 and 2024, respectively[37]. - The company plans to distribute dividends equivalent to approximately 15% to 30% of net profit for the previous six-month period, subject to board approval[47]. - In August 2023, the board approved a semi-annual cash dividend policy, with a declared dividend of US$0.058 per ordinary share for the six-month period ended June 30, 2023[47]. - The company anticipates a dividend payout ratio of 25% of total net profit for the entire year of 2025, as approved in November 2024[47]. Regulatory Environment and Compliance - The company has obtained necessary licenses and permits from PRC authorities for its operations, but future regulatory changes may require additional approvals[34]. - The company faces significant risks related to compliance with evolving PRC laws and regulations, which could adversely affect its operations and financial condition[75]. - The PRC government's oversight may influence the company's operations and limit its ability to offer securities to investors[72]. - Future changes in PRC laws could invalidate the company's contractual arrangements, leading to potential loss of operational control[82]. - The interpretation and enforcement of PRC laws regarding the company's operations remain uncertain, posing additional risks[89]. - The company must ensure compliance with PRC regulations regarding employee stock incentive plans to avoid fines and legal sanctions[148]. - The evolving PRC regulatory framework for internet-related businesses may create uncertainties that could disrupt the company's operations[108]. Financial Position and Assets - As of December 31, 2024, total assets reached RMB 22,240,779 thousand, with cash and cash equivalents amounting to RMB 2,254,213 thousand[54]. - Total liabilities as of December 31, 2024, were RMB 11,500,773 thousand, with borrowings totaling RMB 1,275,796 thousand[54]. - Total shareholders' equity remained stable at RMB 10,740,006 thousand as of December 31, 2024[54]. - Cash and cash equivalents increased to RMB 2,624,719 thousand as of December 31, 2023, compared to RMB 2,254,213 thousand in 2024[54]. - Financing receivables, net, were RMB 4,144,514 thousand as of December 31, 2023, indicating growth from previous periods[54]. - The company reported a significant increase in contract assets and service fees receivable, totaling RMB 6,712,799 thousand as of December 31, 2023[54]. Cash Flow and Investment Activities - The consolidated net cash provided by operating activities was RMB 1,081,458 thousand for the year ended December 31, 2024, a decrease from RMB 2,817,572 thousand in 2023[55]. - The net cash used in investing activities for 2024 was RMB (904,880) thousand, compared to RMB 2,334,452 thousand in 2023, indicating a significant reduction in investment outflows[55]. - In 2024, net cash provided by financing activities was RMB (387,277) thousand, a notable decline from RMB (3,882,952) thousand in 2023, reflecting changes in financing strategies[55]. - The net cash provided by funds to Group companies from the VIEs' investing activities for the year ended December 31, 2023, was RMB 1,108,503 thousand[45]. Risks Related to Variable Interest Entities (VIEs) - The company relies on contractual arrangements with variable interest entities (VIEs) for 77.2% of its revenues in 2024[79]. - The company’s contractual arrangements may not be as effective as ownership in directing the activities of the VIEs[84]. - The variable interest entities hold material assets, including intellectual properties and licenses, which could be jeopardized if these entities face bankruptcy or liquidation[97]. - The company may lose rights to economic benefits from variable interest entities if contractual arrangements are deemed invalid under new PRC regulations[100]. - The shareholders of the variable interest entities may have conflicts of interest that could adversely affect the company's control and economic benefits from these entities[90]. Taxation and Financial Liabilities - The company may face substantial tax liabilities if the PRC tax authorities determine that the contractual arrangements with variable interest entities were not conducted at arm's length[95]. - The company's financial position could be adversely affected by increased tax liabilities or penalties imposed on variable interest entities[96]. - The company may face unfavorable tax consequences if classified as a PRC resident enterprise, subjecting it to a 25% tax rate on worldwide income[150]. - Non-compliance with SAFE registration requirements could restrict the ability to distribute profits from PRC subsidiaries and expose the company to fines[145]. Market and Economic Conditions - Changes in China's economic and regulatory environment could materially impact the company's business operations and financial results[101]. - The market price for the company's American Depositary Shares (ADSs) may be volatile, and share repurchase programs may not enhance long-term shareholder value[75]. - The company strategically focuses on serving young generation consumers in China aged 23 to 40 to capture long-term growth potential[199]. Cybersecurity and Data Protection - The company is subject to complex and evolving laws regarding cybersecurity and data protection, which may require significant resources to comply[215]. - The PRC Cybersecurity Law requires network operators to implement security measures to protect personal information and prevent unauthorized access[217]. - The PRC Personal Information Protection Law (PIPL), effective November 2021, imposes strict rules on processing sensitive personal information, which includes personal identity numbers and location data[223].

LexinFintech Holdings (NASDAQ: LX ) has experienced an incredible stock run since late-2024. However, the evolving economic landscape, more specifically around rising tensions between the U.S. and China, has caused over 30% pullback in the stock.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving ...

证券研究报告 乐信 (LX US) 4Q24 质量持续改善，信用成本压降 | 华泰研究 | | | 年报点评 | | --- | --- | --- | --- | | 2025 年 | 3 月 | 20 日│美国 | 其他多元金融 | 乐信公告 4Q24 业绩：归母净利润 3.6 亿人民币（同比/环比：+2899/+17%）。 略好于我们此前预期的 3.47 亿人民币。净利润环比提升主因贷款质量改善 后信用成本下降。4Q24 乐信的贷款质量进一步提升，首日逾期率环比降幅 4%，信用成本环比降低 4.5%。放款量 520 亿人民币，环比提升 2%，环比 基本持平，或主因公司仍然聚焦提升盈利能力，而非扩张规模。年化净利润 take rate 环比提升 22bps 达到 1.3%。我们认为 4Q24 的业绩进一步印证了 底层风控重塑在提质增利上的作用，随着存量高风险贷款的逐步出清，我们 预计公司的盈利将在 2025 年进一步提升。给予"买入"评级。 贷款质量提升是盈利改善的主要驱动因素 4Q24 前瞻风险指标进一步改善，整体贷款的首日逾期率环比降幅 4%，新 增贷款的 FPD7 环比降低了 8%。后验指标 90 ...

交银国际研究 公司更新 | 金融科技 | 收盘价 | | 目标价 | | 潜在涨幅 | 2025 年 3 月 19 日 | | --- | --- | --- | --- | --- | --- | --- | | 美元 | | 10.59 | 美元 | 11.80↑ | +11.4% | | | 乐信集团 (LX US) | | | | | | | | 盈利超预期，预计资产质量保持改善趋势 | | | | | | | 个股评级 买入 1 年股价表现 资料来源 : FactSet 3/24 7/24 11/24 3/25 -50% 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% LX US MSCI中国指数 股份资料 | 52周高位 (美元) | 10.59 | | --- | --- | | 52周低位 (美元) | 1.56 | | 市值 (百万美元) | 1,363.36 | | 日均成交量 (百万) | 5.03 | | 年初至今变化 (%) | 82.59 | | 200天平均价 (美元) | 5.30 | | 资料来源 : FactSet | | 万丽 ...

Exhibit 99.1 LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results SHENZHEN, China, March 18, 2025 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX), a leading technology-empowered personal financial service enabler in China, today announced its unaudited financial results for the quarter ended December 31, 2024. Mr. Jay Wenjie Xiao, Chairman and Chief Executive Officer of Lexin, commented, "The company remains committed to its ...

LexinFintech Holdings Ltd. (NASDAQ:LX) Q4 2024 Earnings Conference Call March 18, 2025 10:00 PM ET Company Participants Will Tan - Investor Relations Jay Xiao - Chairman and Chief Executive Officer Arvin Qiao - Chief Risk Officer James Zheng - Chief Financial Officer Conference Call Participants Alex Ye - UBS Yada Li - CICC Operator Good day, and thank you for standing by. Welcome to LexinFintech Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After th ...

Core Viewpoint - LexinFintech Holdings Ltd. reported solid financial results for Q4 2024, demonstrating a commitment to prudent operational strategies and continuous improvement in key performance indicators. Financial Performance - For Q4 2024, net income was RMB 363 million, a 17% increase quarter-over-quarter, marking the fourth consecutive quarter of improved profitability [3][24] - Total loan origination reached RMB 52 billion, a 2% increase quarter-over-quarter, while the outstanding loan balance was RMB 110 billion [3] - Operating revenue increased by 4.3% from RMB 3,509 million in Q4 2023 to RMB 3,659 million in Q4 2024 [12] - Net income attributable to ordinary shareholders was RMB 363 million, over 100% higher than Q4 2023 [24] Operational Highlights - The total number of registered users reached 228 million, an 8.6% increase from 210 million in 2023 [9] - The number of active users who used loan products in Q4 2024 was 4.7 million, a slight decrease of 0.7% from the previous year [9] - Cumulative borrowers with successful drawdown increased to 33.8 million, a 7.1% rise from 31.5 million in 2023 [9] Revenue Breakdown - Credit facilitation service income was RMB 2,712 million in Q4 2024, a slight decrease from RMB 2,727 million in Q4 2023 [12] - Tech-empowerment service income surged by 41.0% to RMB 602 million, driven by increased loan facilitation volume [17] - Installment e-commerce platform service income decreased by 25.0% to RMB 969 million in Q4 2024 [9] Cost Management - Funding costs decreased by 24.6% from RMB 76.2 million in Q4 2023 to RMB 57.5 million in Q4 2024 [18] - Processing and servicing costs increased by 13.4% to RMB 583 million, attributed to higher risk management and collection expenses [19] Future Outlook - For 2025, the company expects flat to single-digit growth in total loan origination, with a significant year-over-year increase in net income driven by margin expansion [5][37] - The board approved a dividend of US$0.11 per ADS, representing 20% of net income from the second half of 2024, with plans to increase the cash dividend payout ratio to 25% starting January 1, 2025 [6]

Core Viewpoint - LexinFintech Holdings Ltd. reported solid financial results for Q4 2024, demonstrating a commitment to prudent operational strategies and continuous improvement in key performance indicators, including profitability and asset quality [2][3][4]. Financial Performance - For Q4 2024, net income was RMB 363 million, a 17% increase quarter-over-quarter, marking the fourth consecutive quarter of improved profitability [3][24]. - Total loan origination reached RMB 52 billion, a 2% increase quarter-over-quarter, while the outstanding loan balance was RMB 110 billion [3][12]. - Operating revenue for Q4 2024 increased by 4.3% to RMB 3,659 million compared to Q4 2023 [12][25]. - The net income attributable to ordinary shareholders was RMB 363 million, over 100% higher than the same period last year [24][56]. Operational Highlights - The total number of registered users reached 228 million, an 8.6% increase from 210 million in 2023, with users holding credit lines increasing by 6.8% to 45.1 million [9]. - The number of cumulative borrowers with successful drawdown was 33.8 million, a 7.1% increase from 31.5 million in 2023 [9]. - The 90-day+ delinquency ratio improved to 3.6% as of December 31, 2024, down from 3.7% in the previous quarter [9]. Revenue Breakdown - Credit facilitation service income for Q4 2024 was RMB 2,712 million, a slight decrease from RMB 2,727 million in Q4 2023 [12][17]. - Tech-empowerment service income surged by 41.0% to RMB 602 million, driven by increased loan facilitation volume [12][17]. - Installment e-commerce platform service income decreased by 25.0% to RMB 969 million in Q4 2024 compared to RMB 1,292 million in Q4 2023 [9][12]. Cost Management - Funding costs decreased by 24.6% from RMB 76.2 million in Q4 2023 to RMB 57.5 million in Q4 2024, reflecting improved funding efficiency [18][29]. - Processing and servicing costs increased by 13.4% to RMB 583 million, primarily due to higher risk management and collection expenses [19][29]. Future Outlook - The company anticipates flat to single-digit growth in total loan origination for 2025, with a significant year-over-year increase in net income driven by margin expansion [5][37]. - The board approved a dividend of US$0.11 per ADS, representing 20% of net income from the second half of 2024, with plans to increase the cash dividend payout ratio to 25% starting January 1, 2025 [6][36].

Core Viewpoint - LexinFintech Holdings Ltd. will report its unaudited financial results for Q4 and fiscal year 2024 on March 18, 2025, after U.S. market closes [1] Group 1: Financial Reporting - The earnings conference call is scheduled for 10:00 PM U.S. Eastern time on March 18, 2025, which corresponds to 10:00 AM Beijing/Hong Kong time on March 19, 2025 [2] - Participants must register online to join the conference call and will receive a dial-in number and unique access PIN upon registration [2] Group 2: Company Overview - Lexin is a leading credit technology-empowered consumer financial service enabler in China, focusing on making financing accessible for young consumers [4] - The company connects consumers with financial institutions through a unique model that includes online and offline channels, an installment consumption platform, and AI-driven credit risk management capabilities [4] - Lexin also provides proprietary technology solutions to financial institutions to support their financial digitization needs [4]

Group 1 - LexinFintech Holdings (NASDAQ: LX) has experienced significant stock growth over the past six months, indicating strong long-term growth drivers [1] - Despite the positive outlook, caution is advised at current stock levels [1] - The overall sentiment remains bullish regarding the company's future prospects [1]