Financial Data and Key Metrics Changes - In Q4 2025, the company's loan volume reached RMB 50 billion, and revenue was RMB 3 billion, with a total loan volume for the year of RMB 205.3 billion and a net profit of RMB 1.7 billion, representing a year-over-year increase of 52.4% [4][20] - The net income for Q4 was RMB 214 million, a decrease of RMB 307 million quarter-over-quarter, primarily due to pricing adjustments and a contraction in loan volume [20][24] - The weighted average APR of new loans was 21.7%, a decline of 140 basis points quarter-over-quarter [22][35] Business Line Data and Key Metrics Changes - The net revenue from the credit business was RMB 1.4 billion, a decrease of RMB 586 million quarter-over-quarter, driven by a drop in credit facilitation service income and increased credit costs [21][22] - The e-commerce business net revenue increased by RMB 56 million to RMB 167 million, with a gross margin of 7.8%, reflecting a quarter-over-quarter increase of 295 basis points [22][25] Market Data and Key Metrics Changes - The day one delinquency ratio of total assets decreased by over 10% from its peak in October, indicating improvement in risk indicators [8][15] - The overall risk indicators in Q4 were higher than in Q3, but a downward trend was observed starting from November [42] Company Strategy and Development Direction - The company is focusing on a user-centric approach and compliance with new regulations, aiming to lower overall loan rates and enhance service offerings for micro and small business owners [36][37] - The strategy includes optimizing credit allocation and building a differentiated pricing system to improve product competitiveness and customer experience [37][38] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about market development potential, expecting loan volume to gradually return to a normalized growth range as risk levels stabilize [12][38] - The company plans to maintain a prudent approach to risk management while enhancing customer acquisition capabilities [46][47] Other Important Information - The company has repurchased $39 million worth of ADSs and approved a dividend of $0.188 per ADS, representing a more than 100% increase compared to the previous year [30][31][51] - The cash position as of December 31 was approximately RMB 4.0 billion, with shareholders' equity at about RMB 12 billion [30] Q&A Session Questions and Answers Question: How will LexinFintech's development strategy change under the new regulatory environment? - Management indicated that the focus will be on quality and compliance, with a user-centric approach to serve customers across different segments [35][36] Question: What is the outlook for the company's full-year financial performance for this year? - Management noted that while loan volume is expected to remain stable, the overall financial performance will be influenced by factors such as pricing adjustments and credit costs [44][46]

Financial Data and Key Metrics Changes - In Q4 2025, the company's loan volume reached CNY 50 billion, with total revenue of CNY 3 billion and a net profit of CNY 1.7 billion, reflecting a year-over-year increase of 52.4% [4][5] - The net income for Q4 was CNY 214 million, a decrease of CNY 307 million quarter-over-quarter, primarily due to pricing adjustments and a contraction in loan volume [20][24] - The weighted average APR of new loans was 21.7%, a decline of 140 basis points quarter-over-quarter [22] Business Line Data and Key Metrics Changes - The net revenue from the credit business was CNY 1.4 billion, a decrease of CNY 586 million quarter-over-quarter, driven by a drop in credit facilitation service income [21] - The e-commerce business saw an increase in net revenue to CNY 167 million, up CNY 56 million from the previous quarter, with a gross margin of 7.8%, an increase of 295 basis points [22][25] Market Data and Key Metrics Changes - The company reported a month-over-month improvement in risk indicators for new loans, with the day one delinquency ratio decreasing by over 10% from its peak in October [8][15] - The overall risk indicators in Q4 were higher than in Q3, but a downward trend began in November, indicating stabilization [44] Company Strategy and Development Direction - The company is focused on optimizing operations within the new regulatory framework, emphasizing compliance and a customer-centric strategy [5][6] - Plans include enhancing product competitiveness and customer experience, particularly in high-quality segments, to drive steady growth [38] - The company aims to deepen its diversified business ecosystem, including tech-empowerment and overseas markets, to strengthen operational resilience [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market development potential in 2026, anticipating a gradual return to normalized growth following stabilization of risk levels [13][39] - The company will continue to adopt a prudent approach to risk management while enhancing customer acquisition capabilities [39][47] Other Important Information - The company has repurchased $39 million worth of ADSs and approved a dividend of $0.188 per ADS, reflecting a more than 100% increase compared to the previous year [31][32] - The cash position as of December 31 was approximately CNY 4.0 billion, with shareholders' equity at about CNY 12 billion [31] Q&A Session Summary Question: How will LexinFintech's development strategy change under the new regulatory environment? - Management indicated that the focus will be on quality and compliance, with a user-centric approach to engage customers across different segments [36] Question: What is the outlook for the company's operating performance in 2026? - Management expects a more proactive user acquisition strategy and improved asset quality, with loan volume gradually returning to a normalized growth range [38][39] Question: What is the company's latest risk performance and future outlook? - Management noted that while risk indicators were elevated in Q4, a downward trend has begun, and efforts will continue to manage high-risk segments [44] Question: What is the outlook for the company's full-year financial performance for 2026? - Management refrained from providing full-year guidance but highlighted that revenue will be influenced by loan volume stability and pricing adjustments [46][47] Question: What are the plans for enhancing shareholder returns? - Management confirmed a commitment to dividends and share repurchases, reflecting confidence in the company's long-term value [52]

Financial Data and Key Metrics Changes - In Q4 2025, the company's loan volume reached CNY 50 billion, with total revenue of CNY 3 billion and a net profit of CNY 1.7 billion, reflecting a year-over-year increase of 52.4% [4][5] - The net income for Q4 was reported at CNY 214 million, a decrease of CNY 307 million quarter-over-quarter, primarily due to pricing adjustments and a contraction in loan volume [19][24] - The weighted average APR of new loans was 21.7%, a decline of 140 basis points quarter-over-quarter [22][35] Business Line Data and Key Metrics Changes - The credit business net revenue was CNY 1.4 billion, down CNY 586 million quarter-over-quarter, driven by a decrease in credit facilitation service income and increased credit costs [21][22] - The e-commerce business net revenue increased by CNY 56 million to CNY 167 million, with a gross margin of 7.8%, up 295 basis points quarter-over-quarter [22][25] Market Data and Key Metrics Changes - The company observed an upward trend in credit risk across the industry, with day one delinquency ratio increasing by 7% in Q4, although it showed signs of stabilization towards the end of the quarter [14][43] - The day one delinquency ratio decreased by over 10% from its peak in October 2025, indicating improvement in risk indicators [8][43] Company Strategy and Development Direction - The company is focusing on a user-centric approach and compliance with new regulations, aiming to lower overall loan rates and enhance service offerings for micro and small business owners [36][37] - The strategy includes optimizing credit allocation and building a differentiated pricing system to improve product competitiveness and customer experience [37][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while the industry is stabilizing, it will take time for risk levels to return to pre-2025 levels, and they expect a gradual improvement in asset quality [43][44] - The company anticipates loan origination to remain stable in Q1 2026, with a focus on high-quality customer acquisition and operational resilience [31][44] Other Important Information - The company has repurchased $39 million worth of ADSs and approved a dividend of $0.188 per ADS, reflecting a commitment to enhancing shareholder value [30][49] - The funding cost decreased from 4.4% in Q3 to 3.8% in Q4, indicating improved funding conditions following regulatory changes [29][30] Q&A Session Summary Question: How will LexinFintech's development strategy change under the new regulatory environment? - Management emphasized a focus on quality and compliance, with a user-centric approach to serve diverse customer segments and lower loan rates [34][35] Question: What is the outlook for the company's operating performance in 2026? - Management expects to adopt a proactive user acquisition strategy, focusing on high-quality segments and improving asset quality, with loan volume gradually returning to normalized growth [37][38][44] Question: Can management share the company's latest risk performance and future outlook? - Management indicated that while risk levels remain elevated, there are signs of stabilization, and they will continue to strengthen risk controls [41][43] Question: What is the outlook for the company's full-year financial performance for 2026? - Management refrained from providing full-year guidance but noted that revenue will be influenced by loan volume stability and pricing adjustments, with a focus on cost reduction and operational efficiency [44][46]

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]