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Financials
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Market Cap £1.11bn
Enterprise Value £1.97bn
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Position in Universe 2460th / 6849

LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2020 Unaudited Financial Results

Fri 19th March, 2021 12:29am
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SHENZHEN, China, March 18, 2021 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd.
(“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumption
and consumer finance platform for new generation consumers in China, today
announced its unaudited financial results for the quarter ended December 31,
2020.

Fourth Quarter and Full Year 2020 Operational Highlights:
* Total loan originations(1) in the fourth quarter of 2020 reached RMB53.2
billion, an increase of 24.2% from RMB42.8 billion in the fourth quarter of
2019. Total loan originations(1) in 2020 reached RMB177 billion, an increase
of 40.3% from RMB126 billion in 2019.
* Total outstanding principal balance of loans(1) reached RMB76.5 billion as
of December 31, 2020, representing an increase of 26.3% from RMB60.6 billion
as of December 31, 2019.
* Number of active users(2) who used our loan products in 2020 reached 12.9
million, representing an increase of 31.2% from 9.9 million in 2019. Number of
active users(2) who used our loan products in the fourth quarter of 2020
reached 8.2 million, representing an increase of 16.9% from 7.0 million in the
fourth quarter of 2019.
* Number of new active users who used our loan products in 2020 was 6.1
million, representing a decrease of 6.9% from 6.6 million in 2019. Number of
new active users who used our loan products in the fourth quarter of 2020 was
2.1 million, representing a decrease of 1.7% in the fourth quarter of 2019.
* Number of orders placed on our platform in 2020 was 298 million,
representing an increase of 77.1% from 168 million in 2019. Number of orders
placed on our platform in the fourth quarter of 2020 was 87.6 million,
representing an increase of 26.5% from 69.2 million in the fourth quarter of
2019.
* The GMV(3) of our e-commerce channel in 2020 reached RMB5.3 billion,
representing a decrease of 34.7% from RMB8.1 billion in 2019. The GMV of our
e-commerce channel in the fourth quarter of 2020 amounted to RMB1.4 billion,
representing a decrease of 42.7% from RMB2.4 billion in the fourth quarter of
2019.
* The weighted average tenor of loans originated on our platform in the fourth
quarter of 2020 was approximately 12 months. The nominal APR(4) was 16.1% for
the fourth quarter of 2020.
* 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; and users with credit line reached 27.7 million as of December 31, 2020,
up by 43.2% from 19.4 million as of December 31, 2019.
* 90 day+ delinquency ratio(5) was 1.95% as of December 31, 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.
Fourth Quarter 2020 Financial Highlights:
* Total operating revenue reached RMB3.0 billion. Credit-oriented services
income reached RMB1.8 billion, representing an increase of 3.2% from the
fourth quarter of 2019. Platform-based services income reached RMB717 million,
representing an increase of 232% from the fourth quarter of 2019.
* Gross profit reached RMB1,520 million, representing an increase of 2.9% from
the fourth quarter of 2019.
* Net income was RMB510 million, representing a decrease of 1.6% from the
fourth quarter of 2019.
* Non-GAAP EBIT(6) was RMB704 million, representing an increase of 0.8% from
the fourth quarter of 2019.
* Adjusted net income(6) was RMB603 million, representing an increase of 3.1%
from the fourth quarter of 2019. Adjusted net income per ADS(6) was RMB2.93 on
a fully diluted basis.
Full Year 2020 Financial Highlights:
* Total operating revenue reached RMB11.6 billion. Credit-oriented services
income reached RMB7.5 billion, representing an increase of 26.3% from 2019.
Platform-based services income reached RMB2.0 billion, representing an
increase of 150% from 2019.
* Gross profit reached RMB3,633 million, representing a decrease of 27.3% from
2019.
* Net income was RMB595 million, representing a decrease of 74.1% from 2019.
* Non-GAAP EBIT(6) was RMB1,023 million, representing a decrease of 64.4% from
2019.
* Adjusted net income(6) was RMB903 million, representing a decrease of 62.9%
from 2019. Adjusted net income per ADS(6) was RMB4.39 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.
“In the past year, in spite of the challenging conditions presented by the
ongoing COVID-19 pandemic, Lexin was able to meet our guidance and complete
our loan origination targets. Our registered users, scale, and revenues
continued to grow, and our credit risk is continuing to stabilize.” said Mr.
Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “In
particular, our ‘To Bank’ technology service capabilities continue to lead
the industry. In the fourth quarter, loan originations generated under our
pure technology service model represented over 50% of our new loan
originations, improving the overall quality of our growth. This year, Lexin
will aim to achieve even faster growth with higher quality, and based on the
strong performance in the first quarter and the improving asset quality, we
are raising our full year loan origination target up to RMB250 billion.”

“Even our core financial technology business continues to grow, we will
concurrently develop a second area of growth. At the beginning of this year,
Lexin introduced our new Yuehui, Maiya, and Xiaofeihao products, to expand the
potential of our business, and to expand the customers that we serve from 120
million to the potential 500 million in the new consumption cohort. We
currently estimate that our Maiya product will achieve GMV of RMB50 million
for March.” Mr. Xiao added. “The scale of our potential business will
extend to cover China’s USD4 trillion new consumption market. As China
becomes the world’s largest consumption market, Lexin will utilize the
customers, consumption scenarios, and operational capabilities that we have
accumulated over the many years, to fully capture the potential of this
historical opportunity, and to realize ever stronger growth from the expanding
new consumption market.”  

“We performed strongly in the last quarter of 2020 and we are currently
seeing strong positive growth trends for 2021.  As a result, we are raising
our full year loan origination guidance for 2021, as we now expect total loan
originations for 2021 to be between RMB240 and RMB250 billion,” said Mr.
Craig Yan Zeng, Lexin’s chief financial officer, “In addition, the
continued efforts made on improving asset quality are expected to enable a
strong recovery in our profitability for the current fiscal year.”

“Our credit performance and credit quality continues to improve for new loan
originations and is within our expectations,” said Mr. Yang Qiao, Lexin’s
vice president, “Our vintage charge-off rates(7) is at approximately 4.0%,
and our 90 day+ delinquency rate was 1.95% as of December, 2020. In addition,
our first payment default rate (30 day+)(8) for new loan originations have
been at below 1% for the past 5 months now, and our one-month delinquencies
for all our key past vintages have peak. As a result, we expect our credit
performance to continue to improve in the future.”

(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
“Fourth Quarter 2020 Financial Results” of this press release.

(8  )Loan balance with first payment day past due 30+ over total loan
origination.

Fourth Quarter 2020 Financial Results:

Operating revenue decreased from RMB3,148 million in the fourth quarter of
2019 to RMB3,033 million in the fourth quarter of 2020. This decrease in
operating revenue was due to a decrease in online direct sales and services
income, partially offset by the increase in credit-oriented services income
and platform-based services income for the quarter, driven by continuing
increases in the number of active users on our platform, and the change of the
presentation of guarantee income along with the adoption of ASC 326. Before
the adoption of ASC 326, gain or loss related to financial guarantee not
accounted for as derivatives was recorded in one combined financial statement
line item within “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 “Guarantee income” as a separate financial
statement line item within revenue and the relevant credit losses are recorded
as “Provision for credit losses of contingent liabilities of guarantee.”

Online direct sales decreased by 60.6% from RMB1,085 million in the fourth
quarter of 2019 to RMB428 million in the fourth quarter of 2020. This decrease
was primarily due to the decrease in the number of e-commerce orders during
the fourth quarter of 2020.

Credit-oriented services income increased by 3.2% from RMB1,789 million in the
fourth quarter of 2019 to RMB1,846 million in the fourth quarter of 2020. The
increase was primarily resulted from the increase of RMB339 million due to
change of presentation of guarantee income as aforementioned
and the increase of interest and financial services income and other revenues, partially
offset by the decrease in loan facilitation and servicing fees-credit
oriented.

Loan facilitation and servicing fees-credit oriented decreased by 32.4% from
RMB1,530 million in the fourth quarter of 2019 to RMB1,034 million in the
fourth quarter of 2020. This decrease was primarily due to the Company’s
business strategy shift to increase the loan originations under platform-based
model.

Guarantee income for the fourth quarter of 2020 was RMB339 million. The
guarantee liabilities accounted for under ASC 460 are released from the
underlying risk, i.e., as the underlying loan is repaid by the borrower or
when the lender is compensated in the event of a borrower’s default. 

Interest and financial services income and other revenues increased by 82.3%
from RMB259 million in the fourth quarter of 2019 to RMB473 million in the
fourth quarter of 2020, which was consistent with the increase in the
origination of on-balance sheet loans in the fourth quarter of 2020.

Platform-based services income increased by 232% from RMB216 million in the
fourth quarter of 2019 to RMB717 million in the fourth quarter of 2020. This
increase was primarily contributed by an increase in the loan facilitation and
servicing fees-performance based.

Loan facilitation and servicing fees-performance based increased by 251% from
RMB194 million in the fourth quarter of 2019 to RMB679 million in the fourth
quarter of 2020. This increase was primarily due to an increase in the
origination of off-balance sheet loans under the performance-based model
within platform-based services, driven by continuing increases in the number
of active users on our platform.

Cost of sales decreased by 60.4% from RMB1,092 million in the fourth quarter
of 2019 to RMB432 million in the fourth quarter of 2020, which is consistent
with the decrease of online direct sales revenue.

Funding cost increased by 9.7% from RMB128 million in the fourth quarter of
2019 to RMB141 million in the fourth quarter of 2020, which was consistent
with the increase of the funding debts to fund the on-balance sheet loans.

Processing and servicing cost increased by 81.8% from RMB210 million in the
fourth quarter of 2019 to RMB382 million in the fourth quarter of 2020. This
increase was primarily due to an increase in fees to third-party insurance
companies and guarantee companies, an increase in risk management expenses,
and an increase in salaries and personnel related costs.

Provision for credit losses of financing receivables decreased by 31.2% from
RMB219 million in the fourth quarter of 2019 to RMB151 million in the fourth
quarter of 2020. The credit losses have reflected the most recent performance
in relation to the Company’s on-balance sheet loans and the Company has
continued to implement prudent credit assessment and risk management policies
and procedures.

Provision for credit losses of contract assets and receivables increased by
794% from RMB20.9 million in the fourth quarter of 2019 to RMB187 million in
the fourth quarter of 2020. This increase was mainly due to the significant
increase in off-balance sheet loans originated as a result of the continuing
growth of our business, earlier recognition of credit losses under ASC 326 as
well as negative impact of the ongoing COVID-19 pandemic started in 2020.

Provision for credit losses of contingent liabilities of guarantee was RMB220
million in the fourth quarter of 2020. After the adoption of ASC 326 on
January 1, 2020, a separate contingent liability in full amount determined
using current expected credit losses (“CECL”) lifetime methodology is
accounted for in addition to and separately from the guarantee liabilities
accounted for under ASC 460, and relevant credit losses are recorded as
“Provision for credit losses of contingent liabilities of guarantee.”
Before the adoption of ASC 326, gain or loss related to such financial
guarantee was recorded in one combined financial statement line item within
“Gain on guarantee liabilities, net.”

Gross profit increased by 2.9% from RMB1,478 million in the fourth quarter of
2019 to RMB1,520 million in the fourth quarter of 2020. The increase in the
gross profit is primarily due to the significant increase in platform-based
services income and interest and financial services income and other revenues,
and partially offset by the increase in processing and servicing cost,
provision for credit losses of contract assets and receivables and provision
for credit losses of contingent liabilities of guarantee.

Sales and marketing expenses decreased by 34.0% from RMB520 million in the
fourth quarter of 2019 to RMB343 million in the fourth quarter of 2020. This
decrease was primarily due to a decrease in online advertising cost.

Research and development expenses decreased by 6.1% from RMB101 million of
2019 to RMB95.1 million in the fourth quarter of 2020. This decrease was
primarily due to a decrease in salaries and personnel related costs.

General and administrative expenses increased by 4.8% from RMB120 million in
the fourth quarter of 2019 to RMB125 million in the fourth quarter of 2020.
This increase was primarily due to an increase in rental expenses.

Change in fair value of financial guarantee derivatives was a loss of RMB326
million in the fourth quarter of 2020, as compared to a loss of RMB258 million
in the fourth quarter of 2019. The loss was primarily due to the
re-measurement of the expected loss rates of the underlying outstanding
off-balance sheet loans at the balance sheet date.

Change in fair value of loans at fair value was a loss of RMB35.9 million in
the fourth quarter of 2020. Starting from the second quarter of 2020, for the
loans we acquired/purchased from the relevant funding partners during the
period, we account for them using fair value option pursuant to ASC 825,
Financial Instruments, and record them as “Loans at fair value”. Changes
in fair value of these loans are reported net and recorded as “Change in
fair value of loans at fair value”.

Income tax expense for the fourth quarter of 2020 was RMB94.2 million, as
compared to income tax expense of RMB96.1 million in the fourth quarter of
2019. The decrease of the income tax expense was consistent with the decrease
of the taxable income from the same period of 2019.

Net income for the fourth quarter of 2020 was RMB510 million, representing a
decrease of 1.6% from RMB518 million in the fourth quarter of 2019.

Adjusted net income for the fourth quarter of 2020 was RMB603 million,
representing an increase of 3.1% from RMB585 million in the fourth quarter of
2019.

Full Year 2020 Financial Results:

Operating revenue increased from RMB10,604 million in 2019 to RMB11,645
million in 2020. This increase in operating revenue was due to an increase in
credit-oriented services income and platform-based services income for the
year, driven by continuing increases in the number of active users on our
platform, and the change of the presentation of guarantee income along with
the adoption of ASC 326, partially offset by the decrease in online direct
sales and services income. Before the adoption of ASC 326, gain or loss
related to financial guarantee not accounted for as derivatives was recorded
in one combined financial statement line item within “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 “Guarantee
income” as a separate financial statement line item within revenue and the
relevant credit losses are recorded as “Provision for credit losses of
contingent liabilities of guarantee.”

Online direct sales decreased by 47.5% from RMB3,624 million in 2019 to
RMB1,901million in 2020. This decrease was primarily due to the decrease in
the number of e-commerce orders during 2020.

Credit-oriented services income increased by 26.3% from RMB6.0 billion in 2019
to RMB7.5 billion in 2020. The increase was primarily resulted from the
increase of RMB2,320 million due to change of presentation of guarantee income
as aforementioned, partially offset by the decrease in loan facilitation and
servicing fees-credit oriented.

Loan facilitation and servicing fees-credit oriented decreased by 21.3% from
RMB4,812 million in 2019 to RMB3,787 million in 2020. This decrease was
primarily due to the Company’s business strategy shift to increase the loan
originations under platform-based model.

Guarantee income for 2020 was RMB2,320 million. The guarantee liabilities
accounted for under ASC 460 are released from the underlying risk, i.e., as
the underlying loan is repaid by the borrower or when the lender is
compensated in the event of a borrower’s default. 

Interest and financial services income and other revenues increased by 23.7%
from RMB1,147 million in 2019 to RMB1,419 million in 2020, which was
consistent with the increase in the origination of on-balance sheet loans in
2020.

Platform-based services income increased by 150% from RMB816 million in 2019
to RMB2,037 million in 2020. This increase was primarily contributed by an
increase in the loan facilitation and servicing fees-performance based,
partially offset by the decrease in loan facilitation and servicing
fees-volume based.

Loan facilitation and servicing fees-performance based increased by 198% from
RMB649 million in 2019 to RMB1,931 million in 2020. This increase was
primarily due to an increase in the origination of off-balance sheet loans
under the performance-based model within platform-based services, driven by
continuing increases in the number of active users on our platform.

Cost of sales decreased by 47.4% from RMB3,624 million in 2019 to RMB1,908
million in 2020, which was consistent with the decrease of online direct sales
revenue.

Funding cost increased by 15.9% from RMB509 million in 2019 to RMB590 million
in 2020, which was consistent with the increase of the funding debts to fund
the on-balance sheet loans.

Processing and servicing cost increased by 120% from RMB642 million in 2019 to
RMB1,413 million in 2020. This increase was primarily due to an increase in
fees to third-party insurance companies and guarantee companies, an increase
in fees to third-party payment platforms, an increase in risk management
expenses, an increase in credit assessment cost, and an increase in salaries
and personnel related costs.

Provision for credit losses of financing receivables increased by 10.0% from
RMB709 million in 2019 to RMB779 million in 2020. The credit losses have
reflected the most recent performance in relation to the Company’s
on-balance sheet loans and the Company has continued to implement prudent
credit assessment and risk management policies and procedures.

Provision for credit losses of contract assets and receivables increased by
252% from RMB125 million in 2019 to RMB442 million in 2020. This increase was
mainly due to the significant increase in off-balance sheet loans originated
as a result of the continuing growth of our business, earlier recognition of
credit losses under ASC 326 as well as negative impact of the ongoing COVID-19
pandemic started in 2020.

Provision for credit losses of contingent liabilities of guarantee was
RMB2,881 million in 2020. After the adoption of ASC 326 on January 1, 2020, a
separate contingent liability in full amount determined using current expected
credit losses (“CECL”) lifetime methodology is accounted for in addition
to and separately from the guarantee liabilities accounted for under ASC 460,
and relevant credit losses are recorded as “Provision for credit losses of
contingent liabilities of guarantee.” Before the adoption of ASC 326, gain
or loss related to such financial guarantee was recorded in one combined
financial statement line item within “Gain on guarantee liabilities, net.”

Gross profit decreased by 27.3% from RMB4,994 million in 2019 to RMB3,633
million in 2020. The decrease in the gross profit is primarily due to the
significant increase of processing and servicing cost, provision for credit
losses of contract assets and receivables and provision for credit losses of
contingent liabilities of guarantee, partially offset by the increase in
platform-based services income.

Sales and marketing expenses decreased by 17.2% from RMB1,539 million in 2019
to RMB1,274 million in 2020. This decrease was primarily due to a decrease in
online advertising cost.

Research and development expenses increased by 14.0% from RMB416 million in
2019 to RMB474 million in 2020. This increase was primarily due to an increase
in salaries and personnel related costs and an increase in depreciation and
amortization expenses.

General and administrative expenses increased by 9.5% from RMB412 million in
2019 to RMB451 million in 2020. This increase was primarily due to an increase
in salaries and personnel related costs.

Change in fair value of financial guarantee derivatives was a loss of RMB707
million in 2020, as compared to a loss of RMB212 million in 2019. The loss was
primarily due to the re-measurement of the expected loss rates of the
underlying outstanding off-balance sheet loans at the balance sheet date.

Change in fair value of loans at fair value was a loss of RMB47.3 million in
2020. Starting from the second quarter of 2020, for the loans we
acquired/purchased from the relevant funding partners during the period, we
account for them using fair value option pursuant to ASC 825, Financial
Instruments, and record them as “Loans at fair value”. Changes in fair
value of these loans are reported net and recorded as “Change in fair value
of loans at fair value”.

An investment-related impairment charge of RMB69.2 million was recognized in
2020 on an equity investment due to its unsatisfied financial performance.

Income tax expense for 2020 was RMB90.6 million, as compared to income tax
expense of RMB412 million in 2019. The decrease of the income tax expense was
consistent with the decrease of the taxable income from 2019. In addition,
RMB16.2 million income tax provision relating to 2019 was reversed as one
subsidiary of the Group was certified to be qualified for using a preferential
tax rate of 10% for 2019 annual tax clearance in the third quarter of 2020.

Net income for 2020 was RMB595 million, representing a decrease of 74.1% from
RMB2,295 million in 2019.

Adjusted net income for 2020 was RMB903 million, representing a decrease of
62.9% from RMB2,434 million in 2019.

Please click here to view our vintage curve:

http://ml.globenewswire.com/Resource/Download/016e8a88-23ed-46f7-92ce-697c02cd0ae7

Regulatory update

In February 2021, the China Banking Regulatory Commission, the People’s Bank
of China, the Ministry of Education, the Office of the Central Cyberspace
Affairs Commission and the Ministry of Public Security jointly issued the
Notice on Further Strengthening the Regulation and Management Work of Internet
Consumer Loan for College Students. The notice provides that the micro-credit
companies are prohibited to provide internet consumer loans to college
students. In addition, it sets forth several requirements on the banking
financial institutions participating in internet consumer loans for college
students, including without limitation: (i) the banking financial institutions
and its cooperative institution shall not conduct online precision marketing
aimed at college students, and shall complete necessary filings and reports
with relevant authorities before offline promotion in campus; (ii) the banking
financial institutions shall strictly check credit qualifications and the
identities of college students and their use of loans, conduct comprehensive
credit assessment, and receive a written confirmation from the second
repayment sources (such as parents, guardians, or other administrator of the
college students) that they agree such internet consumer loan provided to such
college student and they will guarantee the repayment of such internet
consumer loan; and (iii) all credit information of internet consumer loan for
college students shall be submitted to the financial credit information
database in a timely, complete and accurate manner, and college students who
do not agree to submit such credit information shall not be extended the loan.

In 2017, as directed by the relevant regulatory authorities, our micro-credit
loan company had already stopped providing services to college students. We
will also recommend new customers based on any new instructions provided by
our financial institution partners. In addition, we will continue to assess
and strengthen our customer identification capabilities, to better comply with
the requests of our financial institution partners.

Management changes

On March 18, 2021, Lexin appointed Mr. Ryan Huanian Liu as the Company’s new
senior vice president responsible for new business initiatives. Previously,
Mr. Liu was Lexin’s chief risk officer in charge of the company’s risk
control operations. In addition, Lexin would also like to welcome Mr. Yang
Qiao to the Lexin team as a new vice president responsible for risk control.
Prior to joining Lexin, Mr. Qiao held senior positions with JD Finance,
Discover, and ZRobot.

Outlook

Based on Lexin’s preliminary assessment of the current market conditions,
the Company now expects total loan originations for fiscal year 2021 to be
between RMB240 billion and RMB250 billion, representing an upward adjustment
of up to RMB30 billion from the previously stated guidance of RMB220 to RMB230
billion disclosed in the Company’s January 2021 press release. This is
Lexin’s current and preliminary view, which is subject to changes and
uncertainties.

Conference Call

The Company's management will host an earnings conference call at 11:00 PM
U.S. Eastern time on March 18, 2021 (11:00 AM Beijing/Hong Kong time on March
19, 2021).

Participants who wish to join the conference call should register online at:

http://apac.directeventreg.com/registration/event/3006519

Please note the Conference ID number of 3006519.

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 March 26, 2021, by dialing the
following telephone numbers:

 United States:       1 855 452 5696 or 1 646 254 3697  
 International:       61 2 8199 0299                    
 Replay Access Code:  3006519                           

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.

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 loss/(income) and we define non-GAAP EBIT as net
income excluding income tax expense, share-based compensation expenses,
interest expense, net, investment-related impairment, and investment
loss/(income).

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 loss/(income). Non-GAAP EBIT, on the other hand, enables our
management to assess our operating results without considering the impact of
income tax expense, share-based compensation expenses, interest expense, net,
investment-related impairment and investment loss/(income). 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, interest expense, net and
investment-related impairment and investment loss/(income) 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 RMB6.5250 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Federal Reserve Board on December 31, 2020. The
Company makes no representation that the RMB or US$ amounts referred could be
converted into US$ or RMB, as the case may be, at any particular rate or at
all.

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.
IR inquiries:
Tony Hung
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: IR@lexin.com

Media inquiries:
Limin Chen
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: liminchen@lexin.com

SOURCE LexinFintech Holdings Ltd.

                                                                                                                                                                                                                                                         
 LexinFintech Holdings Ltd.                                                                                                                                                                                                                              
 Unaudited Condensed Consolidated Balance Sheets                                                                                                                                                                                                         
                                                                                                                                                                                                                                                         
                                                                                                                                                                                    As of                                                                
 (In thousands)                                                                                                                                                                     December 31, 2019         December 31, 2020                          
                                                                                                                                                                                    RMB                       RMB                     US$                
 ASSETS                                                                                                                                                                                                                                                  
 Current assets                                                                                                                                                                                                                                          
 Cash and cash equivalents                                                                                                                                                                     2,085,234            1,563,755               239,656      
 Restricted cash                                                                                                                                                                               1,813,855            1,112,152               170,445      
 Restricted time deposits                                                                                                                                                                      1,962,293            1,779,458               272,714      
 Short-term financing receivables, net of allowance for credit losses of RMB318,262 and RMB508,013 as of December 31, 2019 and December 31, 2020, respectively                                 3,752,690            4,918,548               753,800      
 Loans at fair value                                                                                                                                                                           -                    381,393                 58,451       
 Accrued interest receivable, net of allowance for credit losses of nil and RMB1,681 as of December 31, 2019 and December 31, 2020, respectively                                               54,284               79,793                  12,229       
 Prepaid expenses and other current assets                                                                                                                                                     1,324,924            1,004,845               153,999      
 Amounts due from related parties                                                                                                                                                              -                    941                     144          
 Deposits to insurance companies and guarantee companies                                                                                                                                       1,251,003            1,066,281               163,415      
 Short-term guarantee receivables, net of allowance for credit losses of RMB49,833 and RMBB58,771 as of December 31, 2019 and December 31, 2020, respectively                                  1,183,278            756,197                 115,892      
 Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB94,894 and RMB65,607 as of December 31, 2019 and December 31, 2020, respectively             2,971,976            3,707,649               568,222      
 Inventories, net                                                                                                                                                                              106,781              47,170                  7,229        
 Total current assets                                                                                                                                                                          16,506,318           16,418,182              2,516,196    
 Non‑current assets                                                                                                                                                                                                                                      
 Restricted cash                                                                                                                                                                               86,537               163,999                 25,134       
 Restricted time deposits                                                                                                                                                                      4,350                -                       -            
 Long‑term financing receivables, net of allowance for credit losses of RMB55,283 and RMB21,149 as of December 31, 2019 and December 31, 2020, respectively                                    658,798              204,761                 31,381       
 Long-term guarantee receivables, net of allowance for credit losses of RMB750 and RMB16,994 as of December 31, 2019 and December 31, 2020, respectively                                       281,699              218,654                 33,510       
 Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB2,845 and RMB18,970 as of December 31, 2019 and December 31, 2020, respectively               482,875              481,989                 73,868       
 Property, equipment and software, net                                                                                                                                                         92,553               125,694                 19,263       
 Land use rights, net                                                                                                                                                                          -                    1,000,467               153,328      
 Long‑term investments                                                                                                                                                                         511,605              521,802                 79,970       
 Deferred tax assets                                                                                                                                                                           157,138              747,332                 114,534      
 Other assets                                                                                                                                                                                  454,421              462,285                 70,848       
 Total non‑current assets                                                                                                                                                                      2,729,976            3,926,983               601,836      
 TOTAL ASSETS                                                                                                                                                                                  19,236,294           20,345,165              3,118,032    
                                                                                                                                                                                                                                                         
 LIABILITIES                                                                                                                                                                                                                                             
 Current liabilities                                                                                                                                                                                                                                     
 Accounts payable                                                                                                                                                                              201,837              42,961                  6,584        
 Amounts due to related parties                                                                                                                                                                40,804               67,514                  10,347       
 Short‑term borrowings                                                                                                                                                                         1,977,691            1,827,063               280,010      
 Short‑term funding debts                                                                                                                                                                      3,755,528            4,685,935               718,151      
 Accrued interest payable                                                                                                                                                                      87,003               36,484                  5,591        
 Guarantee liabilities(1)                                                                                                                                                                      1,726,368            -                       -            
 Deferred guarantee income(1)                                                                                                                                                                  -                    694,582                 106,449      
 Contingent guarantee liabilities(1)                                                                                                                                                           -                    1,738,787               266,481      
 Funds payable to individual investors                                                                                                                                                         618,749              -                       -            
 Accrued expenses and other current liabilities                                                                                                                                                1,394,639            2,926,347               448,482      
 Total current liabilities                                                                                                                                                                     9,802,619            12,019,673              1,842,095    
 Non‑current liabilities                                                                                                                                                                                                                                 
 Long‑term funding debts                                                                                                                                                                       450,595              825,814                 126,562      
 Deferred tax liabilities                                                                                                                                                                      309,646              21,046                  3,225        
 Convertible notes                                                                                                                                                                             2,046,051            1,920,227               294,288      
 Other long-term liabilities                                                                                                                                                                   27,844               27,667                  4,240        
 Total non‑current liabilities                                                                                                                                                                 2,834,136            2,794,754               428,315      
 TOTAL LIABILITIES                                                                                                                                                                             12,636,755           14,814,427              2,270,410    
 SHAREHOLDERS’ EQUITY:                                                                                                                                                                                                                                   
 Class A Ordinary Shares                                                                                                                                                                       170                  176                     27           
 Class B Ordinary Shares                                                                                                                                                                       61                   58                      9            
 Additional paid‑in capital                                                                                                                                                                    2,519,886            2,724,006               417,472      
 Statutory reserves                                                                                                                                                                            352,313              649,234                 99,499       
 Accumulated other comprehensive (loss)/income                                                                                                                                                 (7,288      )        3,308                   507          
 Retained earnings                                                                                                                                                                             3,734,397            2,113,956               323,978      
 Non-controlling interests                                                                                                                                                                     -                    40,000                  6,130        
 TOTAL SHAREHOLDERS’ EQUITY                                                                                                                                                                    6,599,539            5,530,738               847,622      
 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                    19,236,294           20,345,165              3,118,032    



 (1)  We have adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) effective January 1, 2020 using the modified retrospective method.                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                     
      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.                                                                                                                                                                                                    
 Unaudited Condensed Consolidated Statements of Operations                                                                                                                                                                     
                                                                                                                                                                                                                               
                                                                        For the Three Months Ended December 31,                                        For the Year Ended December 31,                                         
 (In thousands, except for share and per share data)                    2019                       2020                                                2019                     2020                                           
                                                                        RMB                        RMB                        US$                      RMB                      RMB                      US$                   
 Operating revenue:                                                                                                                                                                                                            
 Online direct sales                                                           1,084,700                  427,760                    65,557                  3,623,991                1,900,835                291,316         
 Membership services(1)                                                        26,067                     37,009                     5,672                   112,558                  113,107                  17,334          
 Other services(1)                                                             32,451                     5,482                      839                     92,292                   68,890                   10,558          
 Online direct sales and services income(1)                                    1,143,218                  470,251                    72,068                  3,828,841                2,082,832                319,208         
 Loan facilitation and servicing fees-credit oriented(1)                       1,529,525                  1,034,265                  158,508                 4,811,868                3,786,996                580,383         
 Interest and financial services income and other revenues                     259,256                    472,668                    72,440                  1,146,824                1,418,892                217,455         
 Guarantee income(2)                                                           -                          338,580                    51,890                  -                        2,319,693                355,509         
 Credit-oriented services income(1)                                            1,788,781                  1,845,513                  282,838                 5,958,692                7,525,581                1,153,347       
 Loan facilitation and servicing fees-performance based(1)                     193,559                    679,494                    104,137                 648,516                  1,930,835                295,913         
 Loan facilitation and servicing fees-volume based(1)                          22,503                     37,903                     5,809                   167,458                  106,007                  16,246          
 Platform-based services income(1)                                             216,062                    717,397                    109,946                 815,974                  2,036,842                312,159         
 Total operating revenue                                                       3,148,061                  3,033,161                  464,852                 10,603,507               11,645,255               1,784,714       
 Operating cost:                                                                                                                                                                                                               
 Cost of sales                                                                 (1,091,666   )             (431,804     )             (66,177      )          (3,624,301   )           (1,907,508   )           (292,338     )  
 Funding cost                                                                  (128,307     )             (140,735     )             (21,569      )          (508,829     )           (589,837     )           (90,396      )  
 Processing and servicing cost                                                 (210,124     )             (381,964     )             (58,539      )          (642,126     )           (1,413,212   )           (216,584     )  
 Provision for credit losses of financing receivables                          (219,363     )             (150,851     )             (23,119      )          (708,684     )           (779,235     )           (119,423     )  
 Provision for credit losses of contract assets and receivables                (20,940      )             (187,227     )             (28,694      )          (125,471     )           (441,805     )           (67,710      )  
 Provision for credit losses of contingent liabilities of guarantee(2)         -                          (220,489     )             (33,791      )          -                        (2,880,590   )           (441,470     )  
 Total operating cost                                                          (1,670,400   )             (1,513,070   )             (231,889     )          (5,609,411   )           (8,012,187   )           (1,227,921   )  
 Gross profit                                                                  1,477,661                  1,520,091                  232,963                 4,994,096                3,633,068                556,793         
 Operating expenses:                                                                                                                                                                                                           
 Sales and marketing expenses                                                  (520,009     )             (343,272     )             (52,609      )          (1,538,698   )           (1,274,402   )           (195,311     )  
 Research and development expenses                                             (101,342     )             (95,124      )             (14,578      )          (415,995     )           (474,265     )           (72,684      )  
 General and administrative expenses                                           (119,723     )             (125,464     )             (19,228      )          (412,117     )           (451,284     )           (69,162      )  
 Total operating expenses                                                      (741,074     )             (563,860     )             (86,415      )          (2,366,810   )           (2,199,951   )           (337,157     )  
 Change in fair value of financial guarantee derivatives, net                  (257,777     )             (325,848     )             (49,938      )          (212,256     )           (707,442     )           (108,420     )  
 Change in fair value of loans at fair value                                   -                          (35,926      )             (5,506       )          -                        (47,282      )           (7,246       )  
 Gain on guarantee liabilities, net(2)                                         115,546                    -                          -                       196,063                  -                        -               
 Interest expense, net                                                         (29,476      )             (18,074      )             (2,770       )          (39,215      )           (77,542      )           (11,884      )  
 Investment-related impairment                                                 -                          (33,786      )             (5,178       )          -                        (69,156      )           (10,599      )  
 Investment (loss)/income                                                      (1,222       )             (1,436       )             (220         )          52,211                   7,885                    1,208           
 Others, net                                                                   50,345                     62,734                     9,614                   82,422                   146,029                  22,380          
 Income before income tax expense                                              614,003                    603,895                    92,550                  2,706,511                685,609                  105,075         
 Income tax expense                                                            (96,081      )             (94,219      )             (14,440      )          (411,959     )           (90,629      )           (13,890      )  
 Net income                                                                    517,922                    509,676                    78,110                  2,294,552                594,980                  91,185          
                                                                                                                                                                                                                               
 Net income per ordinary share                                                                                                                                                                                                 
 Basic                                                                         1.45                       1.39                       0.21                    6.45                     1.63                     0.25            
 Diluted                                                                       1.30                       1.27                       0.19                    6.14                     1.56                     0.24            
                                                                                                                                                                                                                               
 Net income per ADS                                                                                                                                                                                                            
 Basic                                                                         2.89                       2.79                       0.43                    12.90                    3.26                     0.50            
 Diluted                                                                       2.60                       2.54                       0.39                    12.29                    3.13                     0.48            
                                                                                                                                                                                                                               
 Weighted average ordinary shares outstanding                                                                                                                                                                                  
 Basic                                                                         358,312,515                365,939,185                365,939,185             355,625,970              364,733,164              364,733,164     
 Diluted                                                                       408,188,044                411,086,216                411,086,216             375,831,131              411,229,810              411,229,810     

________________________

 (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 January 1, 2020 using the modified retrospective method.    

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 “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.                                                                                                                                                                
 Unaudited Condensed Consolidated Statements of Comprehensive Income                                                                                                                       
                                                                                                                                                                                           
                                                          For the Three Months Ended December 31,                        For the Year Ended December 31,                                   
 (In thousands)                                           2019                   2020                                    2019                   2020                                       
                                                          RMB                    RMB                    US$              RMB                    RMB                        US$             
 Net income                                                      517,922                509,676                78,110          2,294,552              594,980                    91,185    
 Other comprehensive (loss)/ income                                                                                                                                                        
 Foreign currency translation adjustment, net of nil tax         (6,339   )             13,884                 2,128           7,020                  10,596                     1,624     
 Total comprehensive income                                      511,583                523,560                80,238          2,301,572              605,576                    92,809    



                                                                                                                                                                                                                                  
 LexinFintech Holdings Ltd.                                                                                                                                                                                                       
 Unaudited Reconciliations of GAAP and Non-GAAP Results                                                                                                                                                                           
                                                                                                                                                                                                                                  
                                                         For the Three Months Ended December 31,                                              For the Year Ended December 31,                                                     
 (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                                                     517,922                           509,676                    78,110                 2,294,552                      594,980                        91,185          
 Add: Share-based compensation expenses                         53,495                            46,633                     7,148                  177,262                        198,825                        30,472          
 Interest expense associated with convertible notes             12,393                            11,535                     1,768                  14,261                         47,781                         7,323           
 Investment-related impairment                                  -                                 33,786                     5,178                  -                              69,156                         10,599          
 Investment loss/ (income)                                      1,222                             1,436                      220                    (52,211      )                 (7,885       )                 (1,208       )  
 Adjusted net income                                            585,032                           603,066                    92,424                 2,433,864                      902,857                        138,371         
                                                                                                                                                                                                                                  
 Adjusted net income per ordinary share                                                                                                                                                                                           
 Basic                                                          1.63                              1.65                       0.25                   6.84                           2.48                           0.38            
 Diluted                                                        1.43                              1.47                       0.22                   6.48                           2.20                           0.34            
                                                                                                                                                                                                                                  
 Adjusted net income per ADS                                                                                                                                                                                                      
 Basic                                                          3.27                              3.30                       0.51                   13.69                          4.95                           0.76            
 Diluted                                                        2.87                              2.93                       0.45                   12.95                          4.39                           0.67            
                                                                                                                                                                                                                                  
 Weighted average number of ordinary shares outstanding                                                                                                                                                                           
 Basic                                                          358,312,515                       365,939,185                365,939,185            355,625,970                    364,733,164                    364,733,164     
 Diluted                                                        408,188,044                       411,086,216                411,086,216            375,831,131                    411,229,810                    411,229,810     



                                                                                                                                                                                                      
 LexinFintech Holdings Ltd.                                                                                                                                                                           
 Unaudited Reconciliations of GAAP and Non-GAAP Results                                                                                                                                               
                                                                                                                                                                                                      
                                                 For the Three Months Ended December 31,                                  For the Year Ended December 31,                                             
 (In thousands)                                  2019                       2020                                          2019                         2020                                           
                                                 RMB                        RMB                        US$                RMB                          RMB                          US$               
 Reconciliations of Non-GAAP EBIT to Net Income                                                                                                                                                       
 Net income                                            517,922                    509,676                    78,110             2,294,552                    594,980                      91,185      
 Add: Income tax expense                               96,081                     94,219                     14,440             411,959                      90,629                       13,890      
 Share-based compensation expenses                     53,495                     46,633                     7,148              177,262                      198,825                      30,472      
 Interest expense, net                                 29,476                     18,074                     2,770              39,215                       77,542                       11,884      
 Investment-related impairment                         -                          33,786                     5,178              -                            69,156                       10,599      
 Investment loss/(income)                              1,222                      1,436                      220                (52,211    )                 (7,885     )                 (1,208   )  
 Non-GAAP EBIT                                         698,196                    703,824                    107,866            2,870,777                    1,023,247                    156,822     

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