Core Insights - Lexin's Q1 2025 financial report shows a total revenue of 3.1 billion RMB, with a Non-GAAP EBIT of 580 million RMB, marking a year-on-year increase of 104.7% and a quarter-on-quarter increase of 25.3% [2][6] - The focus should be on the financial net income, which is derived from credit facilitation service income and tech-empowered service income, totaling 2.8157 billion RMB for Q1 2025 [2][3] - The core financial net income for Q1 2025 is 1.818 billion RMB, reflecting a quarter-on-quarter increase from 1.721 billion RMB in Q4 2024, indicating growth despite a decline in overall revenue [6] Revenue Breakdown - Credit facilitation service income for Q1 2025 is 2.648 billion RMB, while tech-empowerment service income is 361.5 million RMB [5] - Total operating costs for Q1 2025 amount to 2.045 billion RMB, with significant components including funding costs and various provisions [5][6] Asset Quality Improvement - The improvement in asset quality is evidenced by a 5% decrease in first payment default (FPD) rates and an 11% decrease in overall asset collection rates, contributing to a 9% reduction in the 90+ day delinquency rate [6] - The company's GAAP net profit reached 430 million RMB in Q1 2025, with a year-on-year growth of 113.4% and a quarter-on-quarter growth of 18.6% [6] Dividend Policy - Lexin plans to increase its dividend payout ratio from 25% to 30% of net profit starting in the second half of 2025, marking the second increase in dividend ratio within six months [7] Profitability Metrics - The take rate, defined as net profit over average loans, has increased from 0.66% in Q1 2024 to 1.58% in Q1 2025, with a quarterly profit margin growth of 21% [7]

Economic Overview - The first quarter economic data from China indicates a positive signal, with a notable recovery in the consumer market, laying a solid foundation for the annual economic performance [1] - The total retail sales of consumer goods reached 12.4671 trillion yuan, a year-on-year increase of 4.6%, accelerating by 1.1 percentage points compared to the previous year [1] - In March, retail sales grew by 5.9% year-on-year, an acceleration of 1.9 percentage points compared to January-February, with a month-on-month growth of 0.58% [1] Financial Technology Companies Performance - Four Chinese financial technology companies focusing on consumer credit—Xiaoying Technology, Xinyi Technology, Lexin, and Qifu Technology—reported strong growth in their first-quarter financial results, reflecting the role of consumer finance in boosting consumption [1][2] - Xiaoying Technology reported a revenue of 1.938 billion yuan and a total loan facilitation of 35.149 billion yuan in the first quarter of fiscal year 2025, with a loan balance of 58.403 billion yuan [2][3] - Xinyi Technology achieved a revenue of 3.481 billion yuan and a net profit of 738 million yuan, with a total transaction amount of 52.1 billion yuan, marking a year-on-year growth of 7.9% [3][4] - Lexin's first-quarter revenue reached 3.1 billion yuan, with a non-GAAP EBIT of 580 million yuan, showing a significant year-on-year increase of 104.7% [4] - Qifu Technology reported a net income of 4.691 billion yuan, a year-on-year increase of 12.94%, with a total loan facilitation of 88.883 billion yuan, reflecting a growth of 15.8% [5] Market Trends and Future Outlook - The performance of financial technology companies is attributed to the recovery of the consumer market and the significant role of consumer credit in stimulating consumption [6] - Despite the positive first-quarter data, uncertainties remain regarding the sustainability and strength of the consumption recovery, with underlying issues such as income growth and consumer confidence needing further attention [6][7] - Recent government policies aimed at stabilizing the real estate market and expanding domestic demand have shown initial effectiveness, contributing to the overall economic stabilization [2][6] - The focus on service consumption as a key area for future economic stimulus reflects the government's commitment to enhancing consumer spending [6][7]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of $12.00 [5][6]. Core Insights - The company's Q1 2025 performance shows a significant increase in net profit, with a year-on-year growth of 113% and a quarter-on-quarter growth of 19%, reaching 430 million RMB [1]. - The improvement in net profit take rate to 1.59% is primarily driven by a reduction in credit costs, which decreased by 219 basis points to 3.4% [1][2]. - The company is focusing on enhancing shareholder returns, increasing the dividend payout ratio from 25% to 30% in the second half of 2025 [1]. Summary by Sections Financial Performance - In Q1 2025, the company reported a new loan issuance of 51.6 billion RMB, which is a slight decrease of 0.8% quarter-on-quarter [3]. - The first-day overdue rate for existing loans improved with an 11% reduction, indicating better loan quality [2][3]. - The annualized net profit take rate is expected to improve to 2% in 2025, supported by ongoing enhancements in loan quality and a higher proportion of light capital business [2]. Profit Forecast and Valuation - The net profit forecasts for 2025, 2026, and 2027 have been adjusted to 2.18 billion RMB, 3.21 billion RMB, and 3.59 billion RMB respectively, reflecting increases of 0.5%, 1.5%, and 1.7% [4]. - The estimated price-to-book (PB) ratio for 2025 is maintained at 1.15x, with a target price of $12 based on a projected book value of 75.07 RMB per ADS [4][10].

Investment Rating - The report assigns a "Buy" rating for the company, Lexin Group (LX US), with a target price of $11.80, indicating a potential upside of 36.1% from the current price of $8.67 [2][11]. Core Insights - The company has shown significant improvement in asset quality and has increased its dividend payout ratio. The dividend payout ratio was raised from 20% to 25% in November 2024, with plans to further increase it to 30% starting in the second half of 2025 [6][8]. - The net profit for Q1 2025 reached 430 million RMB, marking a 113.4% year-on-year increase, attributed mainly to a decrease in provisioning expenses [6][7]. - The company maintains guidance for substantial profit growth in 2025, with a projected net profit of 1.93 billion RMB, representing a 75% year-on-year increase [6][9]. Financial Performance Summary - Revenue for 2023 is projected at 13,057 million RMB, with a year-on-year growth of 32.3%. However, a decline of 4.6% is expected in 2025 [5][13]. - The net profit for 2024 is estimated at 1,100 million RMB, with a growth of 3.2% compared to 2023. The Non-GAAP net profit is expected to be 2,062 million RMB in 2025, reflecting a 71.4% increase [5][9]. - The company’s loan facilitation is projected to be 218 billion RMB in 2025, with a year-on-year growth of 3% [9][14]. Asset Quality and Risk Management - The 90-day delinquency rate improved to 3.3%, a decrease of 0.3 percentage points, indicating better asset quality [6][7]. - The company has shifted towards a low-risk business model, with the light asset model accounting for 28% of loan facilitation in Q1 2025, up from 20% in Q4 2024 [6][7]. Market Position and Comparison - The company’s market capitalization stands at approximately 1,149.56 million USD, with a year-to-date stock price increase of 49.48% [4][8]. - The stock has a 52-week high of $11.43 and a low of $1.62, showcasing significant volatility and potential for growth [4][8].

Market Capitalization Summary - The market capitalizations of various companies are listed, with notable figures including 136.20 billion for a leading company and 88.05 billion for another significant player [2] - Companies like MINISO and VIPSHOP have market caps of 76.81 billion and 75.61 billion respectively, indicating strong positions in the market [2] - TAL Education and other firms show varying market caps, with TAL at 66.64 billion and others like Zai Auto and Huya at 35.18 billion and 29.68 billion respectively [2] Stock Performance Overview - Stock price changes are noted, with MINISO showing a slight increase of +0.07 (+0.41%) and VIPSHOP increasing by +0.24 (+1.70%) [2] - TAL Education's stock rose by +1.03 (+2.43%), while other companies like Dada and Yatsen experienced minor fluctuations [2] - Companies such as Lexin and Huya saw declines, with Lexin down by -0.49 (-5.71%) and Huya down by -0.19 (-4.24%) [2] Company Specific Insights - MINISO and VIPSHOP are highlighted as strong competitors in the retail sector, with significant market caps and positive stock performance [2] - TAL Education continues to show resilience with a notable market cap and stock price increase, reflecting investor confidence [2] - Companies like Dada and Yatsen are also mentioned, indicating a diverse range of players in the market with varying performance metrics [2]

Core Insights - LexinFintech Holdings Ltd. reported strong financial results for Q1 2025, with revenue of RMB 3.1 billion and a profit (Non-GAAP EBIT) of RMB 580 million, reflecting a year-over-year increase of 104.7% and a quarter-over-quarter increase of 25.3% [1] - The company has demonstrated resilience amid macroeconomic uncertainties, achieving its highest quarterly profit in 13 quarters, supported by a dual-driven strategy focusing on risk control and data management [1][8] Financial Performance - Lexin's early-stage risk metrics, FPD7, improved by 5% quarter-over-quarter, while the overall delinquency rate decreased by 11% QoQ, and the 90+ day delinquency rate fell by 9% QoQ, indicating enhanced asset quality [3] - The profit margin rose by 21% QoQ, marking the fourth consecutive quarter of improvement [3] - Funding costs decreased by 2.3% QoQ, continuing a seven-quarter trend of declines [4] Business Scale and User Growth - The transaction volume in Q1 reached RMB 51.62 billion, with a managed outstanding loan balance of RMB 107.33 billion [6] - The total number of users grew to 232 million, representing an 8.1% year-over-year increase [6] Dividend Policy - Lexin announced an increase in its cash dividend payout ratio from 25% to 30% of total net profit, effective from the second half of 2025, marking the second dividend hike in six months [7] Strategic Transformation - The company emphasized its strategic transformation over the past two years, focusing on risk-driven, data-driven, and refined operations, which has led to high-quality development [8] - Lexin invested RMB 156 million in R&D in Q1, a 15.3% year-over-year increase, enhancing its industry leadership [10] Risk Management and Technology Integration - Lexin upgraded its risk control system, achieving synergy between risk management and business operations, and improved customer segmentation accuracy by 10% [11] - The company developed intelligent risk control tools, reducing overall fraud incidence by 30% year-over-year [11] Ecosystem Business Development - Lexin's installment retail, personal consumption credit, and inclusive finance businesses showed solid progress, with the installment retail business transaction volume increasing by 16.2% QoQ [14] - The launch of "FlexiLoan" in the personal consumption credit sector catered to young users' needs, enhancing user retention and engagement [17] Inclusive Finance Initiatives - Lexin's Fenqile Inclusive Finance initiative connected 150,000 micro and small businesses with approximately RMB 4.3 billion in funding, with over 70% of transactions originating from fourth-tier cities and below [19] International Expansion - In Q1, Lexin upgraded its financial products in Mexico and Indonesia, reducing overseas customer acquisition costs by 19% QoQ while improving profitability [20][21] Consumer Protection Efforts - The company deployed AI-powered tools to enhance consumer service experiences, aiming to strengthen consumer trust and deliver secure financial experiences [22]

Investment Rating - The report assigns a "Buy" rating for the company, Lexin Group (LX US), with a target price of $11.80, indicating a potential upside of 36.1% from the current price of $8.67 [2][11]. Core Insights - The company has shown significant improvement in asset quality and has increased its dividend payout ratio, which is expected to rise from 20% to 25% in November 2024, and further to 30% in the second half of 2025 [6][8]. - The net profit for Q1 2025 reached 430 million RMB, marking a 113.4% year-on-year increase, attributed mainly to a decrease in provisioning expenses [6][7]. - The report anticipates a substantial growth in net profit for 2025, projected at 1.93 billion RMB, representing a 75% year-on-year increase [6][9]. Financial Performance Summary - Revenue for 2023 is reported at 13,057 million RMB, with a year-on-year growth of 32.3%. However, a decline of 4.6% is expected in 2025 [5][13]. - The net profit for 2024 is projected at 1,100 million RMB, with a slight increase to 1,927 million RMB in 2025 [5][13]. - The company’s net take rate improved to 1.58% in Q1 2025, reflecting a 27 basis points increase from the previous quarter [6][7]. Business Metrics - The company’s loan facilitation for Q1 2025 was 51.6 billion RMB, showing a year-on-year decline of 11% but stabilizing since Q2 2024 [6][7]. - The 90-day delinquency rate improved to 3.3%, down by 0.3 percentage points from the previous quarter, indicating an overall enhancement in asset quality [6][7]. - The average loan balance for Q1 2025 was 107 billion RMB, with a year-on-year decrease of 11.7% [6][7]. Forecast Adjustments - The report has adjusted its forecasts for 2025, maintaining the loan facilitation estimate at 218 billion RMB, while increasing the net profit forecast to 1.93 billion RMB, up by 16.1% from previous estimates [9][10].

Exhibit 99.1 LexinFintech Holdings Ltd. Reports First Quarter 2025 Unaudited Financial Results SHENZHEN, China, May 21, 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 March 31, 2025. Mr. Jay Wenjie Xiao, Chairman and Chief Executive Officer of Lexin, commented, "The continued improvement across key performance indicato ...

Investor Presentation 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 any security or instrument or to participate in any investment activity or trading strategy, nor may it or any part of it form the basis of or be relied on in connection with any contract o ...

Financial Data and Key Metrics Changes - The company's GAAP net profit reached RMB 430 million, marking a record high in 13 quarters, with quarter-over-quarter growth of 18.6% and year-over-year growth of 113% [7] - The net income margin increased to 13.9% from 9.9% in the previous quarter, and the net profit take rate rose to 1.58% from 1.31% [26][36] - Total revenue from lending-related business decreased by 15% quarter-over-quarter, primarily due to lower APR of loans and a shift in GMV towards the capital light model [32] Business Line Data and Key Metrics Changes - The online consumer finance business improved customer acquisition capabilities, launching the Linhua Jie flexible loan product, which enhanced competitiveness [10] - The installment e-commerce business saw a 16.2% increase in GMV, despite a 16.4% decrease in service income due to accounting differences [11][35] - The capital light model volume grew by 43% quarter-over-quarter, accounting for 28% of total GMV, up from 20% [29] Market Data and Key Metrics Changes - GMV from Tier four, Tier five, and lower regions accounted for over 70% of inclusive finance GMV in the first quarter, indicating strong penetration in lower-tier cities [12] - The overseas business achieved profitability, with acquisition costs decreasing by 19% quarter-over-quarter [12] Company Strategy and Development Direction - The company will maintain a user-centric approach, enhancing user experience and promoting high-quality customer growth [13] - Strengthening synergies across ecosystem businesses is a priority, with plans to deepen presence in lower-tier cities and explore various business models [14][15] - Increased investment in technology, particularly AI, is planned to enhance operational efficiency and competitiveness [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained growth in net profit for the full year 2025, despite macroeconomic uncertainties [16] - The company is well-prepared to navigate external challenges, including new regulations and geopolitical uncertainties [41] Other Important Information - The company announced an increase in cash dividend payout ratio from 20% to 25% starting in 2025, with a further increase to 30% effective from the second half of 2025 [16][55] Q&A Session Summary Question: How does the company address external challenges such as new rules on loan facilitation and geopolitical uncertainties? - The company supports regulatory efforts to standardize the industry and is confident in navigating these challenges, including exploring potential listings on different exchanges [41][42] Question: What are the progress and development plans for the ecosystem business? - The company continues to enhance risk management capabilities and operational efficiency, focusing on tailored product offers and expanding customer acquisition channels [44][46] Question: What are the main reasons for the changes in revenue structure this quarter? - The revenue variance was primarily due to lower credit facilitation service income, higher early repayments, and a shift towards the capital light model [50][52]