Lexin(US:LX)2025-11-24 12:00Financial 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]