Financial Data and Key Metrics Changes - In Q3 2025, loan volume reached RMB 50.89 billion, revenue was RMB 3.42 billion, and net profit was RMB 521 million, reflecting a 2% increase quarter-over-quarter and a 68% increase year-over-year [5][22] - The net profit take rate increased to 2.01%, up by 9 basis points quarter-over-quarter and 92 basis points year-over-year [5][22] - Total revenue decreased by 5% quarter-over-quarter, primarily due to a 29% decrease in e-commerce platform service income [32] Business Line Data and Key Metrics Changes - Net revenue from the credit business decreased by 3% to RMB 1.9 billion, attributed to increased credit costs [22][23] - E-commerce business net revenue increased by 14% to RMB 111 million, while total net revenue from both credit and e-commerce business decreased by 2% to RMB 2.1 billion [23][32] - E-commerce GMV for essential daily consumer goods grew 58.5% quarter-over-quarter and 133.8% year-over-year [11] Market Data and Key Metrics Changes - The company ceased facilitating loans with APRs above 24% starting October 1, impacting both business volume and average loan pricing [39] - The industry-wide liquidity tightened further in Q4, affecting credit risk and operational dynamics [15][19] Company Strategy and Development Direction - The company is focused on enhancing risk management capabilities and adapting to new regulations, which are expected to raise industry entry barriers [6][15] - A customer-centric approach is emphasized, with initiatives to improve user experience and satisfaction [9][12] - The company plans to continue investing in its ecosystem businesses to drive steady growth and capture opportunities arising from industry adjustments [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable performance growth despite industry fluctuations and regulatory changes [13][33] - The company anticipates moderate loan volume decline in Q4 due to regulatory impacts, but expects to see stabilization in risk indicators towards the end of the quarter [54][56] - The long-term outlook remains positive, with expectations for gradual recovery as the regulatory environment stabilizes [57] Other Important Information - The dividend payout ratio was increased from 25% to 30% of net profit, and share repurchase programs are progressing well [6][35] - The company has maintained a solid financial position with cash reserves of approximately RMB 4.3 billion and shareholders' equity of about RMB 11.8 billion [32] Q&A Session Summary Question: Impact of new regulation on business operations - Management confirmed that the new regulation has led to a shift in business practices, including ceasing loans with APRs above 24%, which has affected business volume and pricing [39] Question: Development strategy and outlook for e-commerce business - The e-commerce business is focused on expanding product categories and improving risk management, with significant growth in transaction volumes during shopping festivals [43][44] Question: Managing credit risk during transitional period - The company has enhanced its risk management system to identify vulnerable customers and control risk fluctuations effectively [48][49] Question: Outlook for Q4 and full year 2026 performance - Management expects a moderate decline in loan volume for Q4 due to regulatory impacts but anticipates significant year-over-year growth for the full year 2025 [55][56]

Financial Data and Key Metrics Changes - In Q3 2025, loan volume reached CNY 50.89 billion, revenue was CNY 3.42 billion, and net profit was CNY 521 million, reflecting a 2% increase quarter-over-quarter and a 68% increase year-over-year [5][22] - The net profit take rate increased to 2.01%, up by 9 basis points quarter-over-quarter and 92 basis points year-over-year [5][22] - Total revenue decreased by 5% quarter-over-quarter, primarily due to a 29% decrease in e-commerce platform service income [32] Business Line Data and Key Metrics Changes - Net revenue from the credit business decreased by 3% to CNY 1.9 billion, while net revenue from the e-commerce business increased by 14% to CNY 111 million [22][23] - E-commerce loan volume grew by 15% sequentially to CNY 2.3 billion, despite a decline in overall pricing due to regulatory changes [28][29] Market Data and Key Metrics Changes - GMV for essential daily consumer goods grew 58.5% quarter-over-quarter and 133.8% year-over-year, with a 38% year-over-year increase during the Singles' Day Shopping Festival [11][43] - The asset quality of the inclusive finance business remained stable, validating the value of lower-tier markets [11] Company Strategy and Development Direction - The company is focused on enhancing risk management capabilities and adapting to new regulations, which are expected to raise industry entry barriers and promote healthier development [6][15] - The company emphasizes a customer-centric approach and plans to continue optimizing its product offerings and expanding its e-commerce platform [9][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable performance growth despite industry fluctuations and regulatory challenges [12][33] - The company anticipates moderate loan volume decline in Q4 2025 due to regulatory impacts, but expects to see stabilization in risk indicators towards the end of the quarter [54][55] Other Important Information - The company increased its dividend payout ratio from 25% to 30% of net profit starting in the second half of the year [6] - The share repurchase program is progressing well, with over half completed, reflecting management's confidence in the company's outlook [35][60] Q&A Session Summary Question: Impact of new regulation on business operations - Management confirmed that they ceased underwriting loans with APR above 24% and noted that this has impacted business volume and average loan pricing [38][39] Question: Development strategy and outlook for e-commerce business - The company plans to continue optimizing its e-commerce platform and expanding product categories while managing risk [44] Question: Managing industry credit risk fluctuations - Management highlighted proactive measures taken to enhance risk control and mitigate fluctuations, resulting in manageable risk performance [48][49] Question: Outlook and guidance for Q4 and 2026 performance - Management expects moderate loan volume decline in Q4 due to regulatory impacts but anticipates significant year-over-year growth for the full year 2025 [55][56] Question: Future plans for shareholder returns - The company is committed to enhancing shareholder returns through its share repurchase program and increased dividend payout [60][61]

Financial Data and Key Metrics Changes - Loan volume reached RMB 50.89 billion, revenue reached RMB 3.42 billion, and net profit was RMB 521 million, up 2% quarter-over-quarter and 68% year-over-year [4][51] - Net profit take rate stood at 2.01%, increasing by 9 basis points quarter-over-quarter and 92 basis points year-over-year [4][51] - Total revenue decreased by 5% quarter-over-quarter, primarily due to a 29% decrease in e-commerce platform service income [29] Business Line Data and Key Metrics Changes - Net revenue of the credit business reached RMB 1.9 billion, a 3% decrease quarter-over-quarter [19] - Net revenue of the e-commerce business increased by 14% to RMB 111 million [20] - E-commerce GMV for essential daily consumer goods grew 58.5% quarter-over-quarter and 133.8% year-over-year [9][56] Market Data and Key Metrics Changes - The total GMV of the e-commerce platform increased by 38% year-over-year during the Singles' Day Shopping Festival, with transaction volume for essential daily consumer goods surging by 237% year-over-year [9][57] - The asset quality of the inclusive finance business remained stable, validating the value of lower-tier markets [9][57] Company Strategy and Development Direction - The company believes the new regulations will raise industry entry barriers and drive healthier development [5] - Emphasis on shareholder returns with an increased dividend payout ratio from 25% to 30% of net profit [5][52] - Focus on enhancing user experience and risk management capabilities, including the deployment of AI technology [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable performance growth despite industry fluctuations [10][59] - The company anticipates moderate loan volume decline in the fourth quarter due to regulatory impacts [30][42] - Risk performance for new loans is showing signs of stabilization, validating the effectiveness of the risk management system [33][40] Other Important Information - The company has repurchased $25 million worth of ADS and the CEO has purchased over $5 million worth of shares [31][47] - The company is committed to enhancing shareholder value through share buyback programs and dividends [31][47] Q&A Session All Questions and Answers Question: Impact of new regulation on business operations - The company has stopped underwriting loans with APR above 24% and has seen some impact on business volume and average loan pricing due to the shift [32][33] Question: Development strategy and outlook of the e-commerce business - The e-commerce business is progressing steadily, with significant growth in transaction volume and a focus on customer acquisition and engagement [34][35] Question: Management of risk during the transitional period - The company has enhanced risk control measures and identified vulnerable customers to manage risk effectively [37][38]

Company Strategy and Focus - The company is committed to connecting consumers to businesses and financial institutions (2C2B2F)[12] - Priorities remain unchanged in execution, focusing on compliance, risk management, customer relationship, and organizational efficiency[21] - The company is optimizing its customer development strategy to deal with external uncertainty, focusing on premium customers, customer credit identification, and customer acquisition efficiency[28] - The company's ecosystem aims to acquire high-quality customers through multi-scenarios, leveraging a huge funding pool and diverse consumption scenarios[45] Financial Performance (Q3 2025) - Loan origination reached 509 billion RMB, a decrease of 37% QoQ[49] - Net income was 521 million RMB, an increase of 19% QoQ[49] - Total operating revenue was 3417498 million RMB, a decrease of 47% QoQ[50] - Credit facilitation service income was 2616805 million RMB, an increase of 153% QoQ[50] - Tech-empowerment service income was 456044 million RMB, a decrease of 451% QoQ[50] - Installment e-commerce platform service income was 344649 million RMB, a decrease of 293% QoQ[50]

Core Insights - LexinFintech Holdings Ltd reported a significant increase in quarterly earnings, reaching 43 cents per share, compared to 28 cents per share in the same quarter last year [1] - The company's sales for the quarter were $367.580 million, a decrease from $521.851 million in the previous year [1] - Following the earnings report, LexinFintech shares surged by 15.3% to $4.03 in pre-market trading [1] Company Performance - LexinFintech's earnings per share increased by 53.6% year-over-year [1] - The decline in sales represents a year-over-year decrease of approximately 29.4% [1] - The positive market reaction indicates investor confidence despite the drop in sales [1]

Core Insights - Lexin reported its Q3 2025 unaudited financial results, with revenue of 3.42 billion yuan and Non-GAAP EBIT of 675 million yuan [2] - The company achieved a transaction volume of 50.89 billion yuan and a managed loan balance of 101.84 billion yuan, with a user base of 240 million, reflecting a year-on-year increase of 7.7% [2] - Asset quality improved, with the 90+ days delinquency rate decreasing by 15 basis points quarter-on-quarter and 74 basis points year-on-year, indicating continued stability [2] Financial Performance - Revenue for Q3 2025 was 3.42 billion yuan [2] - Non-GAAP EBIT stood at 675 million yuan [2] - The company’s transaction volume reached 50.89 billion yuan [2] - Managed loan balance was reported at 101.84 billion yuan [2] User and Asset Metrics - The user base increased to 240 million, a 7.7% year-on-year growth [2] - The 90+ days delinquency rate improved, with a quarter-on-quarter decrease of 15 basis points and a year-on-year decrease of 74 basis points [2] Shareholder Returns - Dividends for the first half of the year were distributed in Q3, with the announced increase in the second half dividend payout ratio from 25% to 30% [2] - The previously announced share repurchase and increase plan of 60 million USD has been executed for more than half [2] Strategic Outlook - The CEO indicated that with new regulations, the industry is moving towards a healthier and more orderly direction [2] - The company plans to enhance its focus on consumer scenarios, deepen engagement with small and micro customers, and increase investment in financial technology [2] - A unique multi-business ecosystem is expected to gradually reveal differentiated competitive advantages [2]

Core Insights - Lexin (NASDAQ: LX) reported solid performance in its Q3 financial results, achieving revenue of 3.42 billion yuan and a Non-GAAP EBIT of 675 million yuan [1] Financial Performance - The company maintained stable business scale with a transaction volume of 50.89 billion yuan in Q3 [1] - The managed loan balance reached 101.84 billion yuan, and the user base increased to 240 million, reflecting a year-on-year growth of 7.7% [1] - Asset quality continued to improve, with the overall asset 90+ delinquency rate decreasing both sequentially and year-on-year [1] Shareholder Returns - In addition to the dividends already distributed in the first half of the year, the company confirmed that the dividend payout ratio for the second half will increase to 30% [1] - The previously announced $60 million share repurchase and buyback plan is progressing rapidly, with over half of the plan already completed [1]

Core Viewpoint - Lexin (NASDAQ: LX) demonstrated operational resilience in Q3 2025, achieving a revenue of 3.42 billion yuan and a Non-GAAP EBIT of 675 million yuan, reflecting a 1.5% quarter-over-quarter increase, attributed to its long-term development philosophy and user-centric approach [1][3] Financial Performance - In Q3, the company reported a transaction volume of 50.89 billion yuan and a managed loan balance of 101.84 billion yuan, with a user base of 240 million, marking a year-over-year increase of 7.7% [3] - The overall asset quality improved, with the 90+ delinquency rate decreasing by 15 basis points quarter-over-quarter and 74 basis points year-over-year [3] - The net profit margin increased to 2%, up 9 basis points quarter-over-quarter and 92 basis points year-over-year, showing steady improvement over seven consecutive quarters [3] Shareholder Returns - The company has prioritized shareholder returns, with dividends from the first half of the year already distributed in Q3 and an increase in the dividend payout ratio from 25% to 30% for the second half of the year [3] - A previously announced $60 million share repurchase and increase plan has seen over half of its execution completed [3] Business Ecosystem and Consumer Services - Lexin's ecosystem, including installment e-commerce, personal consumption credit, inclusive finance, and digital technology, has enhanced its collaborative capabilities, driving consumption and serving small and micro enterprises [3][5] - The installment e-commerce platform saw significant growth, with transaction volume increasing by 58.5% quarter-over-quarter and 133.8% year-over-year [5] - The company upgraded its logistics and delivery systems, reducing delivery times by over 20 hours, and improved product quality inspection services [5] Focus on Small and Micro Enterprises - Lexin's inclusive finance service targets small and micro enterprises, covering over 330 counties across 30 provinces, and has upgraded its big data risk control system to better assess risks [7] - The company assisted nearly 160,000 users in obtaining inclusive loans totaling nearly 5 billion yuan, supporting financial access in lower-tier cities [7] Technological Advancements - In Q3, Lexin continued to invest in AI technology, with its self-developed model LexinGPT improving user demand recognition accuracy by over 20% [10] - The AI composite intelligent agent matrix has enhanced operational efficiency, with significant improvements in risk control and customer service response times [11] Industry Recognition - Lexin was recognized as one of the "Top 500 Enterprises in Guangdong" and "Top 100 Private Enterprises in Guangdong" for 2025, being the only fintech company to achieve this [12] - The company received the "Best AI Technology Application in China" award from The Asian Banker for 2025, marking its seventh consecutive year of recognition [12]

Core Viewpoint - LexinFintech Holdings Ltd. has reported solid financial results for Q3 2025, demonstrating resilience amid regulatory challenges, with a net income of RMB 521 million, a 68% increase year-over-year, and a commitment to high-quality growth and shareholder returns [3][23][28]. Financial Performance - Net income for Q3 2025 was RMB 521 million, up 2% quarter-over-quarter and 68% year-over-year [3][23]. - Total operating revenue was RMB 3.4 billion, a decrease of 6.7% from Q3 2024 [12]. - Loan originations reached RMB 50.9 billion, a slight decrease of 0.2% from RMB 51.0 billion in Q3 2024 [9][12]. - The net income take rate was 2.01%, exceeding the year-end target of over 2.0% ahead of schedule [5]. Operational Highlights - The total number of registered users increased to 240 million, a 7.7% rise from 223 million a year ago [9]. - Active users utilizing loan products in Q3 2025 reached 4.4 million, up 2.7% from the previous year [9]. - The cumulative number of borrowers with successful drawdowns was 35.9 million, an increase of 8.5% year-over-year [9]. Regulatory Environment - The company has successfully adjusted its operations to comply with new regulatory requirements, with all new loans priced at or below an annual interest rate of 24% effective October 1, 2025 [2][4]. - The new regulatory framework is expected to concentrate market resources towards compliant platforms with strong risk control capabilities [4]. Shareholder Returns - The company increased its dividend payout ratio from 25% to 30% of net profit starting from the second half of 2025 [5]. - Approximately US$25 million worth of ADSs have been repurchased, with the CEO personally purchasing about US$5.1 million worth of ADSs [5][25][26]. Future Outlook - The company anticipates continued fluctuations in industry-wide risks due to the new regulatory framework, which may impact performance in the fourth quarter [28]. - Despite expected sequential declines in transaction volume and net income, the company maintains its guidance for significant year-over-year growth in net income [28].

Core Viewpoint - LexinFintech Holdings Ltd. will report its unaudited financial results for Q3 2025 on November 24, 2025, before the U.S. market opens [1] Group 1: Financial Reporting - The financial results will cover the period ended September 30, 2025 [1] - An earnings conference call is scheduled for 6:00 AM U.S. Eastern time on November 24, 2025 [2] - Participants must register online to receive dial-in information for the conference call [2][3] Group 2: Company Overview - Lexin is a leading technology-empowered personal financial service enabler in China [4] - The company aims to make financing more accessible for young consumers through technology and risk management [4] - Lexin connects consumers with financial institutions using a unique model that includes online and offline channels, installment consumption platforms, and AI-driven credit risk management [4]