LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX),
a leading online consumption and consumer finance platform for new
generation consumers in China, is pleased to announce that based on
the Company’s preliminary assessment of the current business and
market conditions, the Company expects total loan originations for
the fiscal year 2021 to be between RMB 220 billion and RMB 230
billion. This is Lexin’s current and preliminary view, which is
subject to changes and uncertainties. In addition, Lexin is also
pleased to announce that the Company’s 2020 loan originations
reached RMB 176.5 billion, achieving the Company’s previously
stated guidance.
“During the past year, through our comprehensive
efforts to innovate throughout our product and service offerings,
Lexin overcame the pressures brought about by the ongoing COVID-19
pandemic. We have not only achieved our pre-pandemic loan
origination guidance, but also reached a higher level in the
quality of our growth and the structure of our revenues,” said Mr.
Jay Wenjie Xiao, Lexin’s chairman and chief executive officer.
“This year, Lexin will continue to improve our ‘To Bank’ technology
services, and expand our customer acquisition, systems
construction, operations management and other related initiatives,
to enable a more open and constructive environment to create value
for our financial institution partners.”
“Concurrently, Lexin will fully utilize our now
well-established customer and user base, operational knowledge and
technology know-how to drive the Company’s expanded efforts in the
‘new consumption’ space,” continued Mr. Xiao, “This year, Lexin
will expand the Company’s product offerings to meet and satisfy the
needs of an expanded customer and merchant base in more diversified
consumption contexts. We believe that these new products and
services will give Lexin even greater potential for growth in the
future.”
“Over 50% of all our new loans as of today are
originated under the profit sharing model, and we fully expect this
percentage to continue to grow as we continue our transition to a
pure operating service model versus a risk-taking model,” said Mr.
Craig Yan Zeng, Lexin’s chief financial officer. “We continue to
acquire many new customers while growing with our existing
customers, and our new products and offerings will help to drive
this further, and as a result, we are confident in our ability to
continue to grow for the year, and are pleased to announce our
guidance for 2021.”
“In addition, I’m also pleased to announce that
we have now officially reduced to zero the outstanding balance of
loans invested by individual investors on our Juzi Licai platform,”
continued Mr. Zeng, “Lexin has always been proactive in meeting any
potential regulatory changes, and in being fully compliant with the
relevant rules and regulations. We will continue to closely monitor
the ongoing regulatory environment and take any necessary steps to
minimize any potential impact to our business and operations, as we
have done with our peer-to-peer business.”
“Credit performance and credit quality continue
to improve, and all vintages have now stabilized. Our first payment
default rate (30 day+)1 for new loan
originations have been at below 1% for the past 5 months, and our
one-month delinquencies for our key past vintages have peaked,”
said Mr. Ryan Huanian Liu, Lexin’s chief risk officer. “Our funding
partners recognize this and continue to provide us with ample
funding. Today, well over half of our new funding is utilizing the
profit sharing model, where our funding partners take on the credit
risk of the loans that we originate – representing a clear
indication of our stable asset quality and the quality of our loan
assets from our funding partners.”
1 Loan balance with first payment day past
due 30+ over total loan origination.
Please click here to view our credit
statistics:
30-day delinquency by vintage
http://ml.globenewswire.com/Resource/Download/e5336fa9-9ef5-4142-8e36-83127e66f323
First payment default 30+ for new originations
http://ml.globenewswire.com/Resource/Download/fe851e5b-690c-4bee-9ece-22f2346e58f9
Full Year 2020 Operational
Highlights:
- Total loan
originations in 2020 reached RMB 176.5 billion, representing an
increase of 40% from RMB 126 billion in 2019.
- Total outstanding
principal balance of loans reached RMB 76 billion as of December
31, 2020, representing an increase of 26% from RMB 60.6 billion as
of December 31, 2019.
- Total number of
registered users reached 118 million as of December 31, 2020,
representing an increase of 61.2% from 73.3 million as of December
31, 2019.
About LexinFintech Holdings
Ltd.LexinFintech Holdings Ltd. is a leading online
consumption and consumer finance platform for new generation
consumers in China. The Company provides a range of services
including financial technology services, membership benefits, and a
point redemption system through its ecommerce platform Fenqile and
membership platform Le Card. The Company works with financial
institutions and brands both online and offline to provide a
comprehensive consumption ecosystem catering to the needs of young
professionals in China. Lexin utilizes advanced technologies such
as big data, cloud computing and artificial intelligence throughout
the Company's services and operations, which include risk
management, loan facilitation, and the near-instantaneous matching
of users’ funding requests with offers from the Company's many
funding partners.
For more information, please visit
http://ir.lexin.com
To follow us on Twitter, please go to:
https://twitter.com/LexinFintech.
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. 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. Statements that are not historical
facts, including statements about Lexin’s beliefs and expectations,
are forward-looking statements. 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.
IR inquiries:Tony HungTel: +86 (755) 3637-8888 ext.
6258E-mail: IR@lexin.com
Media inquiries:Limin Chen Tel: +86 (755) 3637-8888
ext. 6993E-mail: liminchen@lexin.com
SOURCE LexinFintech Holdings Ltd.
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