Company Performance - LexinFintech Holdings Ltd experienced a 19 5% year-over-year decrease in total loan origination in the third quarter [2] - The company also reported a decrease in the number of active users during the same period [2] Industry Research Focus - The research primarily focuses on small and mid-cap companies from regions including the United States, Canada, South America, UK, France, and Germany [2] - The research approach emphasizes value investments, targeting companies trading at close to 10x earnings and offering dividend yield [2]

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As an investor who started my path five years ago with my own capital, I represent a blend of hands on experience and academic background in corporate finance. Due to my relatively young age I thrive on discovering long-duration growth opportunities and actively seek out opportunities that align with my risk-taker mindset. In addition to my appetite for growth, I also understand the importance of balancing the portfolio with low-volatility dividend-playing names to be a well-rounded investor. In my analysis ...

Financial Data and Key Metrics Changes - In Q3 2024, loan originations reached RMB 51 billion, with an outstanding loan balance of RMB 111.3 billion. Revenue was RMB 3.7 billion, and net profit was RMB 310 million, indicating a return to steady growth for both revenue and net profit [7][41]. - The net profit margin improved to 8.45%, a quarter-over-quarter increase of 223 basis points, driven by reduced risk levels and enhanced asset quality [12][53]. - The funding cost decreased by 98 basis points from the previous quarter, reaching a historical low of 4.28% [13][90]. Business Line Data and Key Metrics Changes - The company focused on expanding high-quality new loans, resulting in a 78% increase in transaction volume for small and micro business loans quarter-over-quarter [15]. - The number of drawdown customers increased by 24% compared to the previous quarter, reflecting successful customer acquisition strategies [16]. - The credit facilitation and service income increased by 11.3% quarter-over-quarter, driven by higher facilitation volume growth [50]. Market Data and Key Metrics Changes - The day 1 delinquency ratio of the overall portfolio declined by around 9% compared to the previous quarter, indicating improved asset quality [8][25]. - The risk level of new customers acquired through online advertising channels decreased by 10% compared to Q2, with FPD7 for new customers significantly decreasing by about 50% compared to its peak in Q4 last year [28][80]. Company Strategy and Development Direction - The company remains committed to a prudent operational approach, focusing on reducing overall loan risk and enhancing profitability [21][22]. - The introduction of the Intelligent Credit Platform (ICP) aims to expand the addressable market while smoothing potential risk fluctuations across credit cycles [84]. - The company plans to increase its dividend payout ratio from 20% to 25% of net profit starting in 2025, reflecting confidence in future profitability [23][56]. Management's Comments on Operating Environment and Future Outlook - Management observed positive short-term changes in consumer loan demand following government economic stimulus measures but emphasized the need for ongoing macroeconomic improvement for sustainable recovery [62]. - The company expects continued improvement in asset quality and net profit growth in 2025, driven by strategic risk management and operational optimizations [68][72]. Other Important Information - The company invested RMB 149 million in research and development in Q3 to enhance its technological capabilities [17]. - The total cash position was approximately RMB 4 billion, with a provision coverage ratio of about 240% at the end of Q3 [55]. Q&A Session Summary Question: What is management's view on the growth strategy for Q4 following the government policy stimulus? - Management noted some positive short-term demand changes but emphasized that long-term recovery depends on macroeconomic conditions [62]. Question: What are the core drivers for the significant net profit growth this quarter? - The significant net profit growth was attributed to improved asset quality and record low funding costs, with expectations for continued profit growth in the future [66][70]. Question: Could you elaborate on the main measures taken in Q3 to optimize the risk level of new loans? - Key measures included focusing on high-quality channels, enhancing anti-fraud detection, and improving risk identification capabilities, resulting in a stable decline in risk levels [78][80]. Question: What is the future plan for the Intelligent Credit Platform model? - The ICP model is expected to expand the addressable market and improve asset structure, with significant growth potential anticipated [84][87]. Question: What are the driving factors behind the record low funding cost this quarter? - The funding cost decreased due to ample market liquidity and strong demand for high-quality consumer credit assets, with expectations for continued optimization in 2025 [90][92].

Exhibit 99.1 LexinFintech Holdings Ltd. Reports Third Quarter 2024 Unaudited Financial Results SHENZHEN, China, November 25, 2024 (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 September 30, 2024. "Total loan origination for the third quarter reached approximately RMB51.0 billion, remaining stable on a quarter-over-quarter ...

SHENZHEN, China, Nov. 25, 2024 (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 September 30, 2024. “Total loan origination for the third quarter reached approximately RMB51.0 billion, remaining stable on a quarter-over-quarter basis, but reflecting a 19.5% decrease year-over-year. The outstanding loan balance was RMB111.2 bi ...

SHENZHEN, China, Nov. 18, 2024 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading credit technology-empowered consumer financial service enabler in China, today announced that it will report its unaudited financial results for the third quarter ended September 30, 2024, after the U.S. market closes on Monday, November 25, 2024. The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern time on November 25, 2024 (10:00 AM Beijing/Hong ...

LexinFintech (LX, Financial) shares surged over 7.7% to $3.37 as of the latest report. The company revealed plans to potentially increase its dividend payout ratio next year from the current 20% of net profit to 25%. This change could translate to an annual dividend yield of at least 5%, based on the current stock price. During an internal meeting organized by CICC, Lexin's management expressed optimism about significantly higher profits in the coming year. The company's Q2 net profit showed a 12% quarter-o ...

LexinFintech (LX, Financial), a leading Chinese digital consumption technology service provider, is contemplating raising its dividend payout ratio from the current 20% to 25% next year. This consideration was revealed during a recent internal meeting organized by China International Capital Corporation, which was attended by numerous institutional and high-net-worth investors. Key executives, including founder and CEO Xiao Wenjie, CFO Zheng Xigui, and CRO Qiao Zhanwen, participated in the discussions.The m ...

LexinFintech Holdings Ltd. (NASDAQ: LX ) recently delivered beneficial business figures about user base growth and cumulative borrower growth. In my view, the combination of artificial intelligence, the software used by LX, and the links with financial institutions will most likelyLondon Stock Market Research is a service offered by an ex-investment banker from the city of London. After around 11 years in the industry, I decided to drop out, and made dollars out of what I learned in business. I appreciate v ...