Lexin(US:LX)2021-03-19 09:42Financial Data and Key Metrics Changes - In Q4 2020, Lexin's platform revenues reached RMB 720 million, an increase of 232% year-on-year [7] - For the full year 2020, total revenues were RMB 11.6 billion, with a non-GAAP net income of over RMB 600 million [8][14] - Total loan originations for 2020 reached RMB 176.5 billion, representing a year-on-year increase of 40% [8] - The company recorded a 90-day delinquency rate decline from 2.6% in Q3 to 1.95% in Q4 [10][17] Business Line Data and Key Metrics Changes - The bank technology loan facilitation model achieved significant growth, with risk-free pure technology service model reaching 50% of total new originations for the first time [6] - Credit-oriented service income for 2020 was RMB 7.5 billion, while platform-based service income exceeded RMB 2 billion, marking a 150% increase from 2019 [14] Market Data and Key Metrics Changes - The total registered users reached 118 million by the end of 2020, a year-on-year increase of 61% [8] - Quarterly active users reached a record high of 8.2 million [8] Company Strategy and Development Direction - The company aims to expand its potential customer base from 120 million to 500 million new consumption consumers, establishing itself as a new consumption digital technology service provider [11] - The introduction of new products like Yuehui and Maiya is expected to open new avenues for growth [9][12] Management Comments on Operating Environment and Future Outlook - Management raised the full-year 2021 loan origination guidance to RMB 240 billion to RMB 250 billion, indicating a 40% year-on-year increase [13] - The macro environment is viewed positively, with regulatory stability expected to favor the company's loan facilitation model [22][23] Other Important Information - A management change was announced, with Ryan Liu promoted to Senior Vice President in charge of new business initiatives [16] - The company is experiencing a shift in customer acquisition strategies, moving towards non-conventional channels [37] Q&A Session Summary Question: What are the key drivers behind the loan growth guidance? - Management cited a positive macro environment and strong recent performance as reasons for raising guidance [22][24] Question: What is the impact of recent regulations on college loans? - Management indicated that they have been prepared for such regulations and expect limited changes to operations [25][26] Question: What is the risk management strategy for maintaining high-quality growth? - The target for vintage loss in 2021 is around or below 4% [27] Question: What is the contribution of the buy now, pay later model to loan growth? - Management stated it is too early to provide a full-year number for this new product [30][31] Question: What is the outlook for pricing and funding costs? - Long-term rates are expected to decline, while short-term rates are anticipated to remain stable [42] Question: What are the expectations for the profit-sharing model? - Management expects the profit-sharing business to remain stable around 50% for 2021, with potential for long-term growth [52]