Lexin Reports Q2 2025 Financial Results: Revenue Hits RMB 3.59B with 15.6% QoQ Growth; Profit Rises for 5 Straight Quarters as Scenario-Based Transactions Surge to Spur Consumption

Financial Performance - Lexin reported Q2 2025 revenue of RMB 3.59 billion, a 15.6% increase quarter-over-quarter (QoQ) [1] - Non-GAAP EBIT profit reached RMB 670 million, up 15.2% QoQ and 116.4% year-over-year (YoY), marking the highest profit in 14 quarters [1] - The company's transaction volume in Q2 was RMB 52.86 billion, with total loans under management at RMB 105.78 billion and user count reaching 236 million [3] Asset Quality - Risk indicators improved for four consecutive quarters, with the First-payment default (FPD7) of newly added assets decreasing by approximately 5% QoQ [4] - The delinquency rate of all assets dropped by about 2% QoQ, and the 90+ day non-performing loan ratio fell by around 6% QoQ [4] - The profit margin in Q2 increased by 34 basis points compared to Q1, with consistent quarterly growth of over 20 basis points [6] Shareholder Returns - A cash dividend of US$0.194 per ADS will be distributed on September 15, representing approximately 25% of the first-half net profit, a 76% increase from the previous dividend [7] - The dividend payout ratio will increase from 25% to 30% of net profit starting in the second half of the year [7][8] - Lexin launched a US$60 million share-repurchase program to enhance shareholder returns [8] Strategic Initiatives - The company is focusing on a strategic transformation driven by risk and data, achieving refined operations and high-quality growth [9] - Lexin is aligning with government policies to boost consumption by enriching its product suite and optimizing user experience [10] - The Fenqile Mall upgraded its supply chain and saw a 139% YoY increase in GMV during the "6·18" promotion period [12] Inclusive Finance - Fenqile Inclusive upgraded its products using big data and AI, facilitating RMB 4.69 billion in loan disbursements to small and micro enterprises [14] - The company supports small enterprises with low-interest, high-limit financial products, enhancing their resilience [13] Digital Technology and Risk Management - Lexin invested RMB 160 million in R&D in Q2, up 10% YoY, focusing on risk control and operational resilience [18] - The company upgraded its risk control system using AI large models, improving decision-making efficiency and risk management accuracy [20] - Lexin's self-developed AI Agent positions increased to 50, with plans to expand to over 100, enhancing operational efficiency [21][22] Consumer Protection - Lexin is integrating consumer protection into its business chain, improving over 50 digital tools to enhance service response and user satisfaction [23]