资产质量大幅改善，才是乐信(LX.US)利润增长的核心驱动力

Core Viewpoint - The financial technology company Lexin reported Q1 2025 revenue of 3.1 billion RMB, nearly flat compared to the same period last year, but a significant profit increase with Non-GAAP EBIT reaching 580 million RMB, a year-on-year growth of 104.7% [1] Revenue Analysis - Lexin's core business should focus on financial net income rather than total revenue, as it includes various business segments like e-commerce [1] - The combined credit facilitation service income and tech-empowerment service income for Q1 2025 amounted to 2.8157 billion RMB, while total operating revenue was 3.1041 billion RMB [2][3] Cost Structure - The total operating cost for Q1 2025 was 1.8852 billion RMB, with funding costs and various provisions contributing to the complexity of the cost structure [2][3] Profitability Metrics - Lexin's gross profit for Q1 2025 was 1.2189 billion RMB, with net income attributable to ordinary shareholders reaching 430.3 million RMB, reflecting a year-on-year increase of 113.4% [3][4] - The improvement in asset quality led to a decrease in credit costs, with the FPD7 (first payment default within 7 days) down by approximately 5% and the overall asset delinquency rate decreasing by 9% [4] Risk Management - The company's provision coverage ratio increased from 255% in Q4 2024 to 268% in Q1 2025, indicating a robust risk management strategy despite a reduction in overall provisions [4] - The take rate (net profit/average loan) improved from 0.66% in Q1 2024 to 1.58% in Q1 2025, suggesting a positive trend in risk management and profitability [4]