Lexin(LX) - 2024 Q4 - Annual Report

Financial Performance - For Q4 2024, net income was RMB363 million, a 17% increase quarter-over-quarter, marking the fourth consecutive quarter of improved profitability[5] - Total operating revenue for Q4 2024 was RMB3,659 million, a 4.3% increase from RMB3,509 million in Q4 2023[15] - Gross profit increased by 11.4% from RMB4,513 million in 2023 to RMB5,026 million in 2024[37] - Net income rose by 3.2% from RMB1,066 million in 2023 to RMB1,100 million in 2024[41] - Total operating revenue for the year ended December 31, 2024, was RMB 14,203,594, representing an increase from RMB 13,057,082 in 2023, a growth of approximately 8.8%[64] - Net income for the year ended December 31, 2024, was RMB 1,100,460, compared to RMB 1,065,945 in 2023, reflecting a growth of about 3.2%[66] - The company reported a gross profit of RMB 5,026,228 for the year ended December 31, 2024, up from RMB 4,513,070 in 2023, indicating an increase of approximately 11.4%[64] - The company’s financing income for the year ended December 31, 2024, was RMB 2,010,183, compared to RMB 2,144,955 in 2023, a decrease of approximately 6.3%[64] - The company’s total comprehensive income for the year ended December 31, 2024, was RMB 1,084,446, slightly up from RMB 1,073,242 in 2023, an increase of about 1.0%[66] Loan Origination and Balances - Total loan origination in Q4 2024 reached RMB52 billion, a 2% increase quarter-over-quarter, while outstanding loan balance was RMB110 billion[5] - Total outstanding principal balance of loans decreased by 11.1% to RMB110 billion as of December 31, 2024, compared to RMB124 billion a year earlier[9] - The company expects 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[8] - The company expects total loan origination for full year 2025 to have flat to single-digit year-on-year growth, depending on macroeconomic conditions[44] User Metrics - The total number of registered users increased to 228 million, an 8.6% rise from 210 million year-over-year, with users holding credit lines reaching 45.1 million, up 6.8%[9] - Active users who utilized loan products in Q4 2024 were 4.7 million, a slight decrease of 0.7% from the same quarter in 2023[9] Revenue Streams - Credit facilitation service income was RMB2,712 million in Q4 2024, a decrease of 0.5% from the previous year, while tech-empowerment service income surged by 41% to RMB602 million[15] - Loan facilitation and servicing fees increased by 26.5% from RMB5,002 million in 2023 to RMB6,326 million in 2024, driven by a higher takerate in the loan facilitation business[31] - Guarantee income rose by 5.7% from RMB2,519 million in 2023 to RMB2,664 million in 2024, attributed to increased cumulative loan origination funded by institutional partners[31] Expenses and Costs - Research and development expenses increased from RMB513 million in 2023 to RMB578 million in 2024, reflecting higher investment in technology development[38] - Provision for financing receivables increased from RMB627 million in 2023 to RMB866 million in 2024, due to higher outstanding loan balances[35] - Funding cost decreased by 36.5% from RMB514 million in 2023 to RMB326 million in 2024, driven by lower funding costs for on-balance sheet loans[34] Shareholder Returns - The cash dividend payout ratio will increase to 25% of net income effective January 1, 2025[8] - The board approved a semi-annual dividend of US$0.055 per ordinary share for the six-month period ended December 31, 2024[43] Balance Sheet Highlights - Total assets decreased from RMB 23,140,791 as of December 31, 2023, to RMB 22,240,779 as of December 31, 2024, a decline of approximately 3.9%[60] - Total current liabilities decreased from RMB 12,324,597 in 2023 to RMB 9,604,374 in 2024, a reduction of about 22.1%[60] - Total shareholders' equity increased from RMB 9,710,082 in 2023 to RMB 10,740,006 in 2024, representing a growth of about 10.6%[60] Operational Efficiency - The company aims to enhance operational strategies and market expansion efforts in the upcoming quarters, focusing on new product development and technology advancements[68]