Lexin(US:LX)2025-05-22 03:02Financial Data and Key Metrics Changes - The company's GAAP net profit reached RMB 430 million, marking a record high in 13 quarters, with quarter-over-quarter growth of 18.6% and year-over-year growth of 113% [7] - The net income margin increased to 13.9% from 9.9% in the previous quarter, and the net profit take rate rose to 1.58% from 1.31% [26][36] - Total revenue from lending-related business decreased by 15% quarter-over-quarter, primarily due to lower APR of loans and a shift in GMV towards the capital light model [32] Business Line Data and Key Metrics Changes - The online consumer finance business improved customer acquisition capabilities, launching the Linhua Jie flexible loan product, which enhanced competitiveness [10] - The installment e-commerce business saw a 16.2% increase in GMV, despite a 16.4% decrease in service income due to accounting differences [11][35] - The capital light model volume grew by 43% quarter-over-quarter, accounting for 28% of total GMV, up from 20% [29] Market Data and Key Metrics Changes - GMV from Tier four, Tier five, and lower regions accounted for over 70% of inclusive finance GMV in the first quarter, indicating strong penetration in lower-tier cities [12] - The overseas business achieved profitability, with acquisition costs decreasing by 19% quarter-over-quarter [12] Company Strategy and Development Direction - The company will maintain a user-centric approach, enhancing user experience and promoting high-quality customer growth [13] - Strengthening synergies across ecosystem businesses is a priority, with plans to deepen presence in lower-tier cities and explore various business models [14][15] - Increased investment in technology, particularly AI, is planned to enhance operational efficiency and competitiveness [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained growth in net profit for the full year 2025, despite macroeconomic uncertainties [16] - The company is well-prepared to navigate external challenges, including new regulations and geopolitical uncertainties [41] Other Important Information - The company announced an increase in cash dividend payout ratio from 20% to 25% starting in 2025, with a further increase to 30% effective from the second half of 2025 [16][55] Q&A Session Summary Question: How does the company address external challenges such as new rules on loan facilitation and geopolitical uncertainties? - The company supports regulatory efforts to standardize the industry and is confident in navigating these challenges, including exploring potential listings on different exchanges [41][42] Question: What are the progress and development plans for the ecosystem business? - The company continues to enhance risk management capabilities and operational efficiency, focusing on tailored product offers and expanding customer acquisition channels [44][46] Question: What are the main reasons for the changes in revenue structure this quarter? - The revenue variance was primarily due to lower credit facilitation service income, higher early repayments, and a shift towards the capital light model [50][52]