Third Quarter 2020 Operational Highlights:
- Total loan originations1 in the third quarter of 2020 reached
RMB48.3 billion , an increase of 30.6% fromRMB37.0 billion in the third quarter of 2019. - Total outstanding principal balance of loans1 reached
RMB67.4 billion as ofSeptember 30, 2020 , representing an increase of 31.0% fromRMB51.5 billion as ofSeptember 30, 2019 . - Number of active users2 who used our loan products in the third quarter of 2020 reached 7.4 million, representing an increase of 21.3% from 6.1 million in the third quarter of 2019.
- Number of new active users who used our loan products in the third quarter of 2020 was 1.7 million, representing a decrease of 32.9% from 2.5 million in the third quarter of 2019.
- Number of orders placed on our platform in the third quarter of 2020 was 84.4 million, representing an increase of 49.9% from 56.3 million in the third quarter of 2019.
- The GMV3 of our e-commerce channel amounted to
RMB1.3 billion , representing a decrease of 37.1% fromRMB2.1 billion in the third quarter of 2019. - The weighted average tenor of loans originated on our platform in the third quarter of 2020 was approximately 11.4 months. The nominal APR4 was 15.0% for the third quarter of 2020.
- Total number of registered users reached 106 million as of
September 30, 2020 , representing an increase of 69.6% from 62.6 million as ofSeptember 30, 2019 ; and users with credit line reached 25.2 million as ofSeptember 30, 2020 , up by 51.0% from 16.7 million as ofSeptember 30, 2019 . - 90 day+ delinquency ratio5 was 2.60% as of
September 30, 2020 .
1 Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.
2 Active users refer to, for a specified period, users who made at least one transaction during that period through our platform or through our third-party partners’ platforms using credit line granted by us.
3 GMV refers to the total value of transactions completed for products purchased on the e-commerce channel, net of returns.
4 Nominal APR refers to all-in interest costs and fees to the borrower over the net proceeds received by the borrower as a percentage of the total loan originations of both on- and off-balance sheet loans.
5 90 day+ delinquency ratio refers to outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. On-balance sheet loans that were over 179 calendar days past due and charged off are not included in the delinquency rate calculation. Off-balance sheet loans that were over 179 calendar days past due are assumed charged off and not included in the delinquency rate calculation. The Company does not distinguish on the basis of the on- or off-balance sheet treatment in monitoring the credit risks of borrowers and the delinquency status of loans.
Third Quarter 2020 Financial Highlights:
- Total operating revenue reached
RMB3.2 billion . Credit-oriented services income reachedRMB2.0 billion , representing an increase of 5.8% from the third quarter of 2019. Platform-based services income reachedRMB614 million , representing an increase of 159% from the third quarter of 2019. - Gross profit reached
RMB978 million , representing a decrease of 42.5% from the third quarter of 2019. - Net income was
RMB345 million , representing a decrease of 52.4% from the third quarter of 2019. - Non-GAAP EBIT6 was
RMB499 million , representing a decrease of 41.0% from the third quarter of 2019. - Adjusted net income6 was
RMB443 million , representing a decrease of 38.0% from the third quarter of 2019. Adjusted net income per ADS6 wasRMB2.15 on a fully diluted basis.
6 Non-GAAP EBIT, adjusted net income, adjusted net income per ordinary share and per ADS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
“I am happy to announce a record quarter of loan originations, where we exceeded our guidance and continued our strong growth. Our
“As China's consumer market continues to recover, we have seen strong momentum in our consumption-focused strategy, which brought our registered user number and the number of orders placed on our platform in the quarter to a record high," Mr. Xiao added.
“We performed strongly for the quarter and are very much on track to achieve our full year loan origination guidance of
“In spite of the challenges in the industry and to the economy, our credit performance and credit quality continues to be stable and within our expectations,” said Mr. Ryan Huanian Liu, Lexin’s chief risk officer, “Our vintage charge-off rates7 is within expectations at approximately 4.5%, and our 90 day+ delinquency rate was 2.60% as of
7 Vintage charge-off rate refers to, with respect to on- and off-balance sheet loans originated during a specified time period, which we refer to as a vintage, the total outstanding principal balance of the loans that are charged off during a specified period, divided by the total initial principal of the loans originated in such vintage. Please refer to vintage curve at the end of “
Third Quarter 2020 Financial Results:
Operating revenue decreased from
Online direct sales decreased by 53.3% from
Credit-oriented services income increased by 5.8% from
Loan facilitation and servicing fees-credit oriented decreased by 35.8% from
Guarantee income for the third quarter of 2020 was
Interest and financial services income and other revenues increased by 39.5% from
Platform-based services income increased by 159% from
Loan facilitation and servicing fees-performance based increased by 222% from
Cost of sales decreased by 51.4% from
Funding cost increased by 21.3% from
Processing and servicing cost increased by 104% from
Provision for credit losses of financing receivables increased by 41.4% from
Provision for credit losses of contract assets and receivables increased by 74.5% from
Provision for credit losses of contingent liabilities of guarantee was
Gross profit decreased by 42.5% from
Sales and marketing expenses decreased by 29.2% from
Research and development expenses decreased by 2.3% from
General and administrative expenses decreased by 7.7% from
Change in fair value of financial guarantee derivatives was a loss of
Change in fair value of loans at fair value was a loss of
Income tax expense for the third quarter of 2020 was
Net income for the third quarter of 2020 was
Adjusted net income for the third quarter of 2020 was
Please click here to view our vintage curve:
http://ml.globenewswire.com/Resource/Download/28eefd47-dc92-4437-af0f-2c178e76f308
Management Share Purchase
Lexin’s senior management team including Chairman and CEO
Outlook
Based on Lexin’s preliminary assessment of the current market conditions, the Company reiterates total loan origination guidance for fiscal year 2020 to be between
Conference Call
The Company’s management will host an earnings conference call at
Participants who wish to join the conference call should register online at:
http://apac.directeventreg.com/registration/event/8098922
Please note the Conference ID number of 8098922.
Once registration is completed, participants will receive the dial-in information for the conference call, an event passcode, and a unique registrant ID number.
Participants joining the conference call should dial-in at least 10 minutes before the scheduled start time.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lexin.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until
| 1 855 452 5696 or 1 646 254 3697 | ||
| International: | 61 2 8199 0299 | |
| Replay Access Code: | 8098922 |
About LexinFintech Holdings Ltd. (LX)
LexinFintech Holdings Ltd. (LX) is a leading online consumption and consumer finance platform for new generation consumers in
For more information, please visit http://ir.lexin.com
To follow us on Twitter, please go to: https://twitter.com/LexinFintech.
Use of Non-GAAP Financial Measures Statement
In evaluating our business, we consider and use adjusted net income, non-GAAP EBIT, adjusted net income per ordinary share and per ADS, four non-GAAP measures, as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income as net income excluding share-based compensation expenses, interest expense associated with convertible notes, investment-related impairment and investment (income)/loss and we define non-GAAP EBIT as net income excluding income tax expense/(benefit), share-based compensation expenses, interest expense, net, investment-related impairment, and investment (income)/loss.
We present these non-GAAP financial measures because it is used by our management to evaluate our operating performance and formulate business plans. Adjusted net income enables our management to assess our operating results without considering the impact of share-based compensation expenses, interest expense associated with convertible notes, investment-related impairment and investment (income)/loss. Non-GAAP EBIT, on the other hand, enables our management to assess our operating results without considering the impact of income tax expense/(benefit), share-based compensation expenses, interest expense, net, investment-related impairment and investment (income)/loss. We also believe that the use of these non-GAAP financial measures facilitates investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP.
These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using adjusted net income and non-GAAP EBIT is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses, interest expense associated with convertible notes, income tax expense/(benefit), interest expense, net and investment-related impairment and investment (income)/loss have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income and non-GAAP EBIT. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.
We compensate for these limitations by reconciling the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
Exchange Rate Information Statement
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Lexin’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the expectation of its collection efficiency and delinquency, business outlook and quotations from management in this announcement, contain forward-looking statements. Lexin may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Lexin’s goal and strategies; Lexin’s expansion plans; Lexin’s future business development, financial condition and results of operations; Lexin’s expectation regarding demand for, and market acceptance of, its credit and investment management products; Lexin’s expectations regarding keeping and strengthening its relationship with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Lexin’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Lexin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
LexinFintech Holdings Ltd. (LX)
IR inquiries:
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: IR@lexin.com
Media inquiries:
Tel: +86 (755) 3637-8888 ext. 8047
E-mail: liminchen@lexin.com
SOURCE LexinFintech Holdings Ltd. (LX)
LexinFintech Holdings Ltd. (LX)
Unaudited Condensed Consolidated Balance Sheets
| As of | |||||||||
| (In thousands) | |||||||||
| RMB | RMB | US$ | |||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 2,085,234 | 1,593,413 | 234,684 | ||||||
| Restricted cash | 1,813,855 | 2,281,501 | 336,029 | ||||||
| Restricted time deposits | 1,962,293 | 2,067,485 | 304,508 | ||||||
| Short-term financing receivables, net of allowance for credit losses of | 3,752,690 | 4,914,926 | 723,890 | ||||||
| Loans at fair value | - | 367,438 | 54,118 | ||||||
| Accrued interest receivable, net of allowance for credit losses of nil and | 54,284 | 91,837 | 13,526 | ||||||
| Prepaid expenses and other current assets | 1,324,924 | 1,275,570 | 187,871 | ||||||
| Amounts due from related parties | - | 941 | 139 | ||||||
| Deposits to insurance companies and guarantee companies | 1,251,003 | 1,170,314 | 172,369 | ||||||
| Short-term guarantee receivables, net of allowance for credit losses of | 1,183,278 | 1,079,194 | 158,948 | ||||||
| Short-term contract assets and service fees receivable, net of allowance for credit losses of | 2,971,976 | 3,545,337 | 522,172 | ||||||
| Inventories, net | 106,781 | 59,238 | 8,725 | ||||||
| Total current assets | 16,506,318 | 18,447,194 | 2,716,979 | ||||||
| Non‑current assets | |||||||||
| Restricted cash | 86,537 | 125,299 | 18,455 | ||||||
| Restricted time deposits | 4,350 | 9,415 | 1,387 | ||||||
| Long‑term financing receivables, net of allowance for credit losses of | 658,798 | 257,967 | 37,994 | ||||||
| Long-term guarantee receivables, net of allowance for credit losses of | 281,699 | 240,540 | 35,428 | ||||||
| Long-term contract assets and service fees receivable, net of allowance for credit losses of | 482,875 | 364,600 | 53,700 | ||||||
| Property, equipment and software, net | 92,553 | 103,702 | 15,274 | ||||||
| Land use rights, net | - | 1,009,067 | 148,620 | ||||||
| Long‑term investments | 511,605 | 475,423 | 70,022 | ||||||
| Deferred tax assets | 157,138 | 599,720 | 88,329 | ||||||
| Other assets | 454,421 | 509,292 | 75,011 | ||||||
| Total non‑current assets | 2,729,976 | 3,695,025 | 544,220 | ||||||
| TOTAL ASSETS | 19,236,294 | 22,142,219 | 3,261,199 | ||||||
| LIABILITIES | |||||||||
| Current liabilities | |||||||||
| Accounts payable | 201,837 | 65,692 | 9,675 | ||||||
| Amounts due to related parties | 40,804 | 57,184 | 8,422 | ||||||
| Short‑term borrowings | 1,977,691 | 2,155,572 | 317,481 | ||||||
| Short‑term funding debts | 3,755,528 | 4,654,269 | 685,500 | ||||||
| Accrued interest payable | 87,003 | 59,128 | 8,709 | ||||||
| Guarantee liabilities(1) | 1,726,368 | - | - | ||||||
| Deferred guarantee income(1) | - | 970,221 | 142,898 | ||||||
| Contingent guarantee liabilities(1) | - | 2,622,095 | 386,193 | ||||||
| Funds payable to individual investors | 618,749 | 930,018 | 136,977 | ||||||
| Accrued expenses and other current liabilities | 1,394,639 | 2,453,386 | 361,345 | ||||||
| Total current liabilities | 9,802,619 | 13,967,565 | 2,057,200 | ||||||
| Non‑current liabilities | |||||||||
| Long‑term funding debts | 450,595 | 1,182,257 | 174,128 | ||||||
| Deferred tax liabilities | 309,646 | 39,870 | 5,872 | ||||||
| Convertible notes | 2,046,051 | 2,002,444 | 294,928 | ||||||
| Other long-term liabilities | 27,844 | 29,840 | 4,395 | ||||||
| Total non‑current liabilities | 2,834,136 | 3,254,411 | 479,323 | ||||||
| TOTAL LIABILITIES | 12,636,755 | 17,221,976 | 2,536,523 | ||||||
| SHAREHOLDERS’ EQUITY: | |||||||||
| Class A Ordinary Shares | 170 | 175 | 26 | ||||||
| Class B Ordinary Shares | 61 | 58 | 9 | ||||||
| Additional paid‑in capital | 2,519,886 | 2,677,072 | 394,290 | ||||||
| Statutory reserves | 352,313 | 352,313 | 51,890 | ||||||
| Accumulated other comprehensive loss | (7,288 | ) | (10,576 | ) | (1,556 | ) | |||
| Retained earnings | 3,734,397 | 1,901,201 | 280,017 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 6,599,539 | 4,920,243 | 724,676 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 19,236,294 | 22,142,219 | 3,261,199 | ||||||
(1) We have adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) effective
Before the adoption of ASC 326, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460.
After the adoption of ASC 326, a contingent liability in full amount determined using CECL lifetime methodology of the guarantee (i.e., the contingent aspect recorded as “Contingent guarantee liabilities”) shall be accounted for in addition to and separately from the guarantee liability (i.e., the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460.
LexinFintech Holdings Ltd (LX).
Unaudited Condensed Consolidated Statements of Operations
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
| (In thousands, except for share and per share data) | 2019 | 2020 | 2019 | 2020 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
| Operating revenue: | |||||||||||||||||||
| Online direct sales | 988,964 | 461,959 | 68,039 | 2,539,291 | 1,473,075 | 216,960 | |||||||||||||
| Membership services(1) | 24,166 | 27,602 | 4,065 | 86,491 | 76,098 | 11,208 | |||||||||||||
| Other services(1) | 23,277 | 26,048 | 3,835 | 59,841 | 63,408 | 9,339 | |||||||||||||
| Online direct sales and services income(1) | 1,036,407 | 515,609 | 75,939 | 2,685,623 | 1,612,581 | 237,507 | |||||||||||||
| Loan facilitation and servicing fees-credit oriented(1) | 1,649,969 | 1,058,468 | 155,895 | 3,282,343 | 2,752,731 | 405,433 | |||||||||||||
| Interest and financial services income and other revenues | 264,255 | 368,702 | 54,304 | 887,568 | 946,224 | 139,364 | |||||||||||||
| Guarantee income(2) | - | 597,542 | 88,008 | - | 1,981,113 | 291,786 | |||||||||||||
| Credit-oriented services income(1) | 1,914,224 | 2,024,712 | 298,207 | 4,169,911 | 5,680,068 | 836,583 | |||||||||||||
| Loan facilitation and servicing fees-performance based(1) | 180,058 | 580,358 | 85,477 | 454,957 | 1,251,341 | 184,303 | |||||||||||||
| Loan facilitation and servicing fees-volume based(1) | 57,307 | 33,375 | 4,916 | 144,955 | 68,104 | 10,031 | |||||||||||||
| Platform-based services income(1) | 237,365 | 613,733 | 90,393 | 599,912 | 1,319,445 | 194,334 | |||||||||||||
| Total operating revenue | 3,187,996 | 3,154,054 | 464,539 | 7,455,446 | 8,612,094 | 1,268,424 | |||||||||||||
| Operating cost: | |||||||||||||||||||
| Cost of sales | (979,179 | ) | (475,824 | ) | (70,081 | ) | (2,532,635 | ) | (1,475,704 | ) | (217,348 | ) | |||||||
| Funding cost | (117,586 | ) | (142,658 | ) | (21,011 | ) | (380,522 | ) | (449,102 | ) | (66,146 | ) | |||||||
| Processing and servicing cost | (177,004 | ) | (361,839 | ) | (53,293 | ) | (432,002 | ) | (1,031,248 | ) | (151,886 | ) | |||||||
| Provision for credit losses of financing receivables | (153,601 | ) | (217,222 | ) | (31,993 | ) | (489,321 | ) | (628,384 | ) | (92,551 | ) | |||||||
| Provision for credit losses of contract assets and receivables | (59,867 | ) | (104,452 | ) | (15,384 | ) | (104,531 | ) | (254,578 | ) | (37,495 | ) | |||||||
| Provision for credit losses of contingent liabilities of guarantee(2) | - | (873,936 | ) | (128,717 | ) | - | (2,660,101 | ) | (391,791 | ) | |||||||||
| Total operating cost | (1,487,237 | ) | (2,175,931 | ) | (320,479 | ) | (3,939,011 | ) | (6,499,117 | ) | (957,217 | ) | |||||||
| Gross profit | 1,700,759 | 978,123 | 144,060 | 3,516,435 | 2,112,977 | 311,207 | |||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing expenses | (507,928 | ) | (359,828 | ) | (52,997 | ) | (1,018,689 | ) | (931,130 | ) | (137,141 | ) | |||||||
| Research and development expenses | (121,114 | ) | (118,325 | ) | (17,427 | ) | (314,653 | ) | (379,141 | ) | (55,841 | ) | |||||||
| General and administrative expenses | (111,102 | ) | (102,501 | ) | (15,097 | ) | (292,394 | ) | (325,820 | ) | (47,988 | ) | |||||||
| Total operating expenses | (740,144 | ) | (580,654 | ) | (85,521 | ) | (1,625,736 | ) | (1,636,091 | ) | (240,970 | ) | |||||||
| Change in fair value of financial guarantee derivatives, net | (119,202 | ) | (21,833 | ) | (3,216 | ) | 45,521 | (381,594 | ) | (56,203 | ) | ||||||||
| Change in fair value of loans at fair value | - | (11,356 | ) | (1,673 | ) | - | (11,356 | ) | (1,673 | ) | |||||||||
| (Loss)/gain on guarantee liabilities, net(2) | (45,833 | ) | - | - | 80,517 | - | - | ||||||||||||
| Interest expense, net | (8,590 | ) | (23,450 | ) | (3,454 | ) | (9,739 | ) | (59,468 | ) | (8,759 | ) | |||||||
| Investment-related impairment | - | (35,370 | ) | (5,209 | ) | - | (35,370 | ) | (5,209 | ) | |||||||||
| Investment income/(loss) | 55,197 | (1,293 | ) | (190 | ) | 53,433 | 9,321 | 1,373 | |||||||||||
| Others, net | 6,095 | 85,241 | 12,555 | 32,077 | 83,295 | 12,268 | |||||||||||||
| Income before income tax expense | 848,282 | 389,408 | 57,352 | 2,092,508 | 81,714 | 12,034 | |||||||||||||
| Income tax (expense)/benefit | (123,916 | ) | (44,713 | ) | (6,586 | ) | (315,878 | ) | 3,590 | 529 | |||||||||
| Net income | 724,366 | 344,695 | 50,766 | 1,776,630 | 85,304 | 12,563 | |||||||||||||
| Net income per ordinary share | |||||||||||||||||||
| Basic | 2.03 | 0.94 | 0.14 | 5.01 | 0.23 | 0.03 | |||||||||||||
| Diluted | 1.96 | 0.87 | 0.13 | 4.87 | 0.30 | 0.04 | |||||||||||||
| Net income per ADS | |||||||||||||||||||
| Basic | 4.05 | 1.89 | 0.28 | 10.02 | 0.47 | 0.07 | |||||||||||||
| Diluted | 3.93 | 1.74 | 0.26 | 9.75 | 0.59 | 0.09 | |||||||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||||
| Basic | 357,428,690 | 364,991,825 | 364,991,825 | 354,720,615 | 364,328,223 | 364,328,223 | |||||||||||||
| Diluted | 369,863,610 | 410,968,465 | 410,968,465 | 364,924,688 | 411,274,741 | 411,274,741 | |||||||||||||
(1) Starting from the second quarter of 2020, we report revenue streams in three categories—online direct sales and services income, credit-oriented services income and platform-based services income, to provide more relevant information. We also revised the comparative period presentation to conform to current period classification.
In providing credit-oriented services, we originate on-balance sheet loans, or facilitate the loan origination of off-balance loans where we also provide guarantee services. Consequently, we take all credit risks of borrowers in respect of on-balance sheet loans, and off-balance sheet loans through the relevant guarantee arrangements. By nature, revenue earned from off-balance sheet loans where we also provide guarantee services is recorded as “Loan facilitation and servicing fees-credit oriented” and “Guarantee income,” and interest income and other fees from on-balance sheet loans is recorded as “Interest and financial services income and other revenues.”
In providing platform-based services, we do not provide guarantee services and take no credit risks of borrowers in respect of principal and interests due to the lenders for off-balance sheet loans we facilitate. We either charge the service fees for loan facilitation and servicing at predetermined rates based on the performance of the underlying off-balance sheet loans, which we refer to as performance-based model, or charge the service fees at predetermined rates of amount of loan originations upon successful matching of borrowing requests, which we refer to as volume-based model.
Revenue from “Loan facilitation and servicing fees-credit oriented,” “Loan facilitation and servicing fees-performance based” and “Loan facilitation and servicing fees-volume based” were previously reported as one combined financial statement line item as “Loan facilitation and servicing fees” before the change of presentation.
For online direct sales and services income, we report the premium membership fees for our membership packages as “Membership services,” and the commission fee earned from third-party sellers for the online marketplace services we rendered and other services revenue as “Other services” within “Online direct sales and services income.” The premium membership fees, commission fee earned from third-party sellers and other services revenue were previously reported as “Services and others” within “Online direct sales and services income” before the change of presentation.
(2) We have adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) effective
Before the adoption of ASC 326, gain or loss related to guarantee liabilities accounted for under ASC 460 was recorded in one combined financial statement line item within “(Loss)/gain on guarantee liabilities, net.”
After the adoption of ASC 326, the gain released from the guarantee liabilities accounted for under ASC 460 is recorded as a separate financial statement line item within revenue as “Guarantee income” and the relevant credit losses of guarantee are recorded as “Provision for credit losses of contingent liabilities of guarantee.”
LexinFintech Holdings Ltd. (LX)
Unaudited Condensed Consolidated Statements of Comprehensive Income
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| (In thousands) | 2019 | 2020 | 2019 | 2020 | ||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
| Net income | 724,366 | 344,695 | 50,766 | 1,776,630 | 85,304 | 12,563 | ||||||||||||||
| Other comprehensive income/(loss) | ||||||||||||||||||||
| Foreign currency translation adjustment, net of nil tax | 12,661 | (3,687 | ) | (543 | ) | 13,358 | (3,288 | ) | (484 | ) | ||||||||||
| Total comprehensive income | 737,027 | 341,008 | 50,223 | 1,789,988 | 82,016 | 12,079 | ||||||||||||||
LexinFintech Holdings Ltd. (LX)
Unaudited Reconciliations of GAAP and Non-GAAP Results
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| (In thousands, except for share and per share data) | 2019 | 2020 | 2019 | 2020 | |||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||
| Reconciliation of Adjusted Net Income to Net Income | |||||||||||||||||||||||
| Net income | 724,366 | 344,695 | 50,766 | 1,776,630 | 85,304 | 12,563 | |||||||||||||||||
| Add: Share-based compensation expenses | 43,345 | 49,193 | 7,246 | 123,767 | 152,192 | 22,416 | |||||||||||||||||
| Interest expense associated with convertible notes | 1,868 | 12,127 | 1,786 | 1,868 | 36,246 | 5,338 | |||||||||||||||||
| Investment-related impairment | - | 35,370 | 5,209 | - | 35,370 | 5,209 | |||||||||||||||||
| Investment (income)/loss | (55,197 | ) | 1,293 | 190 | (53,433 | ) | (9,321 | ) | (1,373 | ) | |||||||||||||
| Adjusted net income | 714,382 | 442,678 | 65,197 | 1,848,832 | 299,791 | 44,153 | |||||||||||||||||
| Adjusted net income per ordinary share | |||||||||||||||||||||||
| Basic | 2.00 | 1.21 | 0.18 | 5.21 | 0.82 | 0.12 | |||||||||||||||||
| Diluted | 1.93 | 1.08 | 0.16 | 5.07 | 0.73 | 0.11 | |||||||||||||||||
| Adjusted net income per ADS | |||||||||||||||||||||||
| Basic | 4.00 | 2.43 | 0.36 | 10.42 | 1.65 | 0.24 | |||||||||||||||||
| Diluted | 3.86 | 2.15 | 0.32 | 10.13 | 1.46 | 0.21 | |||||||||||||||||
| Weighted average number of ordinary shares outstanding | |||||||||||||||||||||||
| Basic | 357,428,690 | 364,991,825 | 364,991,825 | 354,720,615 | 364,328,223 | 364,328,223 | |||||||||||||||||
| Diluted | 369,863,610 | 410,968,465 | 410,968,465 | 364,924,688 | 411,274,741 | 411,274,741 | |||||||||||||||||
LexinFintech Holdings Ltd. (LX)
Unaudited Reconciliations of GAAP and Non-GAAP Results
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||
| (In thousands) | 2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Reconciliations of Non-GAAP EBIT to Net Income | ||||||||||||||||||||||||
| Net income | 724,366 | 344,695 | 50,766 | 1,776,630 | 85,304 | 12,563 | ||||||||||||||||||
| Add: Income tax expense/(benefit) | 123,916 | 44,713 | 6,586 | 315,878 | (3,590 | ) | (529 | ) | ||||||||||||||||
| Share-based compensation expenses | 43,345 | 49,193 | 7,246 | 123,767 | 152,192 | 22,416 | ||||||||||||||||||
| Interest expense, net | 8,590 | 23,450 | 3,454 | 9,739 | 59,468 | 8,759 | ||||||||||||||||||
| Investment-related impairment | - | 35,370 | 5,209 | - | 35,370 | 5,209 | ||||||||||||||||||
| Investment (income)/loss | (55,197 | ) | 1,293 | 190 | (53,433 | ) | (9,321 | ) | (1,373 | ) | ||||||||||||||
| Non-GAAP EBIT | 845,020 | 498,714 | 73,451 | 2,172,581 | 319,423 | 47,045 | ||||||||||||||||||
Image: 乐信.png
Source: LexinFintech Holdings Ltd. (LX)
