Lexinfintech Holdings Ltd (LX) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to Lexin first quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加樂信2025年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker today, Will Tan, head of Capital Markets. Please go ahead.

現在，我想將會議交給今天的演講者，資本市場主管 Will Tan。請繼續。

Thank you, operator. Hello, everyone. Welcome to first quarter 2025 earnings conference call. Our results were released earlier today and are currently available on our IR website.

謝謝您，接線生。大家好。歡迎參加 2025 年第一季財報電話會議。我們的結果已於今天早些時候發布，目前可在我們的 IR 網站上查閱。

Today you will hear from our Chairman and CEO, Mr. Jay Wenjie Xiao, who will provide an update on overall performance and the strategies of our business. Our COO, Mr. Arvin Zhanwen Qiao, who will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Zheng will discuss our financial performance.

今天，我們將邀請董事長兼執行長肖文傑先生為您介紹公司的整體業績和業務策略。我們的營運長喬佔文先生將提供有關我們的風險管理舉措和最新進展的更多詳細資訊。最後，我們的財務長鄭先生將討論我們的財務表現。

Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release, which also applies to this call, as we will be making forward-looking statements. Last, please note that all figures are presented in Renminbi terms and all comparisons are made on quarter over quarter basis, unless otherwise stated.

在我們繼續之前，我想請您參閱我們收益新聞稿中的安全港聲明，該聲明也適用於本次電話會議，因為我們將做出前瞻性陳述。最後，請注意，除非另有說明，所有數字均以人民幣表示，所有比較均按季度進行。

Please kindly note Jay and Arvin will give their whole remarks in Chinese first. Then the English version will be delivered by Jay and Arvin's AI-based voices.

請注意，Jay 和 Arvin 將首先用中文發表全部講話。然後，Jay 和 Arvin 的人工智慧語音將播報英文版本。

With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and the CEO of Lexin. Please.

現在，我很高興將電話轉給樂信董事長兼執行長肖文傑先生。請。

(Spoken in foreign language)

（用外語說）

(interpreted) Thanks for joining us today for our first quarter 2025 earnings call. Despite ongoing macroeconomic uncertainties, our GAAP net profit reached RMB430 million, a record high in 13 quarters, representing quarter over quarter growth of 18.6% and year over year growth of 113%.

（翻譯）感謝您今天參加我們的 2025 年第一季財報電話會議。儘管宏觀經濟不確定性持續存在，我們的 GAAP 淨利潤仍達到 4.3 億元，創 13 個季度以來的新高，環比增​​長 18.6%，同比增長 113%。

Our first quarter results demonstrate the success of our transformation, centering on building a model driven by data analytics, risk management, and refined operations. Having completed this challenging transformation, we have entered a new phase of high quality development. The fundamental enhancement of our core capabilities will drive sustained value creation moving forward, and we remain confident in delivering our full year performance targets.

我們第一季的業績證明了我們轉型的成功，轉型的核心是建立以數據分析、風險管理和精細化營運為驅動的模式。我們完成了這艱難的轉變，進入了高品質發展的新階段。核心能力的根本提升將推動未來持續創造價值，我們對實現全年績效目標充滿信心。

Over the past two years of transformation, we have adhered to a risk first approach, comprehensively upgrading our core business capabilities. We have iterated and optimized the full life cycle strategy covering risk management, marketing, and operations while also strengthening our system infrastructure to achieve effective coordination between risk management and business development.

轉型兩年來，我們堅持風險優先，全面提升核心業務能力。我們不斷迭代優化風險管理、行銷、營運等全生命週期策略，加強系統基礎建設，實現風險管理與業務發展的有效協同。

By far we have completed the upgrade of our risk management framework and established robust risk management infrastructure. Furthermore, we have built a comprehensive quantitative business analysis framework that supports differentiated credit assessment and pricing strategies tailored to various customer segments. These initiatives have resulted in significant enhancements to our refined operations.

目前，我們已完成風險管理架構的升級，並建立了穩健的風險管理基礎架構。此外，我們也建立了完善的量化商業分析框架，支援針對不同客戶群制定差異化的信用評估和定價策略。這些舉措大大提高了我們的精細化營運水準。

Lexin also achieved significant progress across multiple ecosystem businesses. For our online consumer finance business, we have notably enhanced customer acquisition capabilities and efficiency by implementing model-based decision making upfront at the traffic allocation stage.

樂信多個生態業務也取得顯著進展。對於我們的線上消費金融業務，我們透過在流量分配階段預先實施基於模型的決策，顯著提高了客戶獲取能力和效率。

Building on our different pricing strategy, we launched the on-demand credit product, [Fenqile], flexible loan in the first quarter featuring flexible use of credit repayment. The new products together with our existing product [Fenqile and tool] forms a competitive product matrix. Our overall product offerings features optimized credit lines, rates, and tenors, making our financial solutions more competitive in the market.

基於差異化定價策略，我們在第一季推出了按需信貸產品【分期樂】，即靈活貸款，以靈活使用信用還款為特色。新產品與我們現有的產品[分期樂和工具]一起形成了具有競爭力的產品矩陣。我們的整體產品具有優化的信用額度、利率和期限，使我們的金融解決方案在市場上更具競爭力。

For our installment e-commerce business, we've revamped the risk management system, upgraded the e-commerce supply chain, and expanded the boundary of user development. We match different users with tailored installment services. As a result, approval rate of installment applications increased significantly in the first quarter, driving e-commerce GMV to increase by 16.2%.

對於分期電商業務，我們重塑了風險管理體系，升級了電商供應鏈，拓展了用戶發展的邊界。我們為不同的使用者配對量身訂製的分期服務。受此帶動，第一季分期付款申請核准率大幅提升，帶動電商GMV成長16.2%。

For our offline inclusive finance business, targeting small and microbusiness owners, quantitative assessment is combined with manual review to accurately determine the credit lines granted for high quality users. In the first quarter, our offline inclusive finance business not only saw lower risks but also higher product competitiveness as we continued to increase penetration of small and microbusiness owners in lower tier cities and strengthen localized operations.

對於線下普惠金融業務，針對小型企業主，採用量化評估與人工審核結合的方式，精準確定優質用戶的授信額度。一季度，隨著我們繼續增加對低線城市小微型企業主的滲透力度，加強本地化運營，線下普惠金融業務不僅風險有所降低，產品競爭力也進一步提升。

GMV from tier 4, tier 5, and lower regions has accounted for over 70% of our inclusive finance GMV in the first quarter alongside sequential profit growth. For our overseas business, we have completed the upgrading of financial products in the Mexico and Indonesian markets, improved the risk management system, and enhanced the operational capabilities of customer acquisition channels.

來自四線、五線及以下地區的交易總額已占到我們第一季普惠金融交易總額的70%以上，利潤也實現了環比增長。海外業務方面，完成墨西哥、印尼市場金融產品升級，完善風險管理體系，提升獲客通路營運能力。

In the first quarter, customer acquisition costs decreased by 19% quarter over quarter, and the overseas business have achieved profitability. Our mature risk management capabilities, technological strength, and back office support enable us to expand into more overseas markets. As these businesses develop and mature, Lexin's ecosystem will gradually become our unique competitive edge.

一季獲客成本季減19%，海外業務獲利。我們成熟的風險管理能力、技術實力和後台支援使我們能夠擴展到更多的海外市場。隨著這些業務的發展與成熟，樂信的生態系統將逐漸成為我們獨特的競爭優勢。

Moving forward, we will focus on the following areas. Firstly, we will maintain a user-centric approach, focusing on enhancing user experience and promoting the steady growth of high quality customers. Our strategy involves strengthening our product portfolio with more competitive offers and flexible repayment methods designed to boost user loyalty throughout the entire customer life cycle.

下一步，我們將重點放在以下幾個方面的工作。一是堅持以用戶為中心，努力提升用戶體驗，促進優質客戶穩定成長。我們的策略包括透過更具競爭力的優惠和靈活的還款方式來加強我們的產品組合，旨在提高整個客戶生命週期中的用戶忠誠度。

Additionally, consumer protection will remain a priority. We will continue to optimize customer engagement and service experiences in order to increase overall customer satisfaction. Secondly, we will strengthen synergies across our ecosystem businesses to further build our unique and differentiated competitive advantage. We will match diverse products and services to different user segments, addressing their demands for carefree consumption, and flexible liquidity throughout their entire life cycle.

此外，消費者保護仍將是首要任務。我們將繼續優化客戶參與度和服務體驗，以提高整體客戶滿意度。第二，我們將強化生態系業務的協同，進一步打造我們獨特的差異化競爭優勢。我們將針對不同使用者群體配對多樣化的產品和服務，滿足使用者全生命週期的無憂消費、靈活變現的需求。

For the installment e-commerce business, we will improve the merchandise supply chain to meet the differentiated demands of users with varying risk profiles. This will help unlock consumption potential across different customer tiers and increase GMV from high quality users, enhancing customer engagement and acquisition.

分期電商業務方面，我們將完善商品供應鏈，滿足不同風險偏好使用者的差異化需求。這將有助於釋放不同客戶層級的消費潛力，增加高品質用戶的 GMV，從而增強客戶參與度和獲取率。

For the inclusive finance business, we will leverage our in-house offline team's capabilities in customer acquisition and personalize one on one service. We will deepen our presence in industrial clusters and specialized markets in lower tier cities, explore and refine various business models, and strengthen localized operations and deepen market penetration to increase the share of quality microbusiness owner customers.

對於普惠金融業務，我們將發揮自有線下團隊的獲客能力，進行一對一個性化服務。深耕低線城市產業群聚與專業市場，探索完善多種商業模式，加強在地化營運和深化市場滲透，提升優質小微客戶份額。

For the online consumer finance business, we will focus on expanding high quality customer acquisition channels, tapping into the potential of large platform partnerships, and broadening our business boundaries to maintain sustainable growth and scale.

對於線上消費金融業務，我們將專注於拓展優質獲客管道，挖掘大型平台合作夥伴的潛力，拓寬業務邊界，維持可持續的成長和規模。

Thirdly, we'll increase investment in technology, particularly in applying AI to empower various business scenarios and enhance the company's competitiveness. By locally deploying mature and high performance large AI models, we will reshape business processes, improve operational efficiency, and reduce service costs. We will explore the application of AI agents with financial adaptive capabilities in the pre-lending process to autonomous decision making and task execution.

第三，我們會加大對科技的投入，特別是應用人工智慧賦能各個業務場景，提升公司競爭力。透過在本地部署成熟、高效能的大型AI模型，重塑業務流程，提高營運效率，降低服務成本。我們將探討具有金融自適應能力的人工智慧代理在貸前流程中的自主決策和任務執行的應用。

We will promote process automation and decision intelligence and scenarios such as customer acquisition, operations and risk management, further enhancing the company's operational refinement. Despite the volatile macroeconoptic environment evolving industry landscape, and yielding uncertainties, our operational resilience has significantly improved, thanks to our continuously enhanced capabilities and unique ecosystem advantage.

推動流程自動化、決策智慧化以及客戶獲取、營運、風險管理等場景的落地，進一步提升公司營運精細化水準。儘管宏觀經濟環境動盪，產業格局不斷演變，不確定性因素不斷增加，但憑藉著不斷增強的能力和獨特的生態系統優勢，我們的經營韌性顯著提升。

Therefore, we are confident in achieving sustained growth in net profit for full year 2025. We affirming our fully year 2025 profit guidance of substantial year over year growth. The company has always attached great emphasis on shareholder's returns and remains committed to delivering value to our shareholders through various channels.

因此，我們有信心實現2025年全年淨利的持續成長。我們確認 2025 年全年獲利將較去年同期大幅成長。公司始終高度重視股東回報，並致力於透過各種管道為股東創造價值。

In November 2024, we announced to increase our cash dividend payout ratio from 20% to 25% of total net profit starting from 2025. The Board of Directors has approved to further increase the dividend payout ratio to 30% of net profit, effective from the second half of 2025. Now, I would like to give the floor to our CRO, Arvin.

2024年11月，我們宣布從2025年起將現金分紅比例從淨利的20%提高至25%。董事會已批准自2025年下半年起進一步提高股利支付率至淨利的30％。現在，我想請我們的首席風險長 Arvin 發言。

(Spoken in foreign language)

（用外語說）

(interpreted) Thanks Jay. Next, I will provide a review of our key initiatives and achievements in risk management for the first quarter. In the first quarter, we remain committed to our strategy of prioritizing asset quality, focusing on scale stability and profitability enhancement. Specifically, we focused on improving risk, strategy system identification capability, optimizing risk strategy system, and developing smart risk tools, as well as actively exploring the application of large models in risk management.

（翻譯）謝謝傑伊。以下我來回顧一下第一季我們風險管理的重點措施和取得的成效。一季度，我們持續堅持資產品質優先、穩定規模、提升獲利能力的經營策略。具體來說，我們著重提升風險、策略體系辨識能力，優化風險策略體系，發展智慧風險工具，並積極探索大模型在風險管理上的應用。

Thanks to the initiatives we've taken, risks of both new and overall assets maintained the downward trend in the first quarter, leading risk indicator for new loans, first payment default, FPD over seven days of the first quarter declined by about 5% compared to the previous quarter. On total loan portfolio, day one delinquency ratio decreased by about 11% and 90 days delinquency ratio decreased by 9% quarter over quarter.

在各項措​​施的帶動下，第一季新增資產風險及總資產風險均維持下降趨勢，第一季新增貸款、首付款違約、七天固定利率等領先風險指標較上季下降約5%。就整體貸款組合而言，第一天拖欠率較上季下降約 11%，90 天拖欠率較上季下降 9%。

I will introduce in detail the key initiatives we've taken for the first quarter. Firstly, in terms of risk identification capabilities, we've continued to improve the performance of our risk identification models, we built a multimodal fusion model, integrating different types of heterogeneous data including textual time series, numerical, and graph features which help further improve the risk identification capabilities by 10%.

我先詳細介紹一下我們第一季採取的重點措施。首先，在風險辨識能力方面，我們持續提升風險辨識模型的效能，建構了多模態融合模型，融合文字時間序列、數值、圖形特徵等不同類型的異質數據，風險辨識能力進一步提升10%。

Meanwhile, we deployed a two-stage modeling structure. A standard model was used to identify the mid to long tail customer groups. We then optimized the data samples and brought additional data sources to conduct more granular risk identification for these customers, further improving the risk differentiation capabilities.

同時，我們部署了兩階段建模結構。使用標準模型來識別中長尾客戶群。我們隨後優化了資料樣本，並引入了額外的資料來源，對這些客戶進行更細微的風險識別，進一步提高了風險區分能力。

Besides, for customers from different channels, we conducted deep joint modeling with our channel partners. This allowed us to fully leverage both partner channel data and our own internal data to improve model performance.

此外，針對不同管道的客戶，我們與通路夥伴進行了深度的聯合建模。這使我們能夠充分利用合作夥伴通路數據和我們自己的內部數據來提高模型效能。

Secondly, we also strengthened risk management through preventive and proactive approaches. Regarding high risk assets, we adopted a preventative approach. Specifically for customers who have borrowings across multiple platforms, exhibit weaker repayment capabilities, or present volatile risk profiles, we reduced or suspended their credit lines. Additionally, we optimized repayment reminders and enhanced the auto debit repayment functionality both on and after the due date to minimize the formation of overdue assets.

二是加強風險管理，預防為主，積極作為。對於高風險資產，我們採取了預防性措施。針對在多個平台上借款、還款能力較弱或風險狀況不穩定的客戶，我們降低或暫停了他們的信用額度。此外，我們也優化了還款提醒功能，增強了到期及以後的自動扣款還款功能，最大限度地減少逾期資產的形成。

Regarding high quality assets, we conducted a proactive approach. We promoted the growth of high quality assets by strengthening the competitiveness of offers to customers. These concerted efforts have collectively contributed to reducing risks, optimizing our asset mix, and enhancing asset quality. In the second quarter, we will respond more to market dynamics and asset quality performance, fully leveraging a combination of proactive and preventative risk management approaches and tools to ensure the continued decline in asset risk levels.

對於優質資產，我們採取了積極主動的態度。增強客戶報價競爭力，促進優質資產成長。透過上述努力，有效降低了風險，優化了資產結構，提高了資產品質。在第二季，我們將更重視市場動態與資產品質表現，充分運用主動與預防結合的風險管理方法與工具，確保資產風險水準持續下降。

Thirdly, we continue to ramp up the development and application of intelligent risk management tools which significantly increase the accuracy and time efficiency of credit line and pricing decision making. We have developed credit line robot and pricing robot and gradually applied them in various business scenarios.

第三是持續加強智慧風險管理工具的開發和應用，大幅提升授信和定價決策的準確性和時效性。我們開發了授信機器人、定價機器人等，並逐步應用到各個業務場景。

Our A/B testing results demonstrate that these robot tools substantially helped improve the effectiveness and time efficiency of decision making. Over the past year, our efforts in enhancing risk identification capabilities, building a more robust risk management framework, and applying intelligent risk management tools comprehensively have contributed to a sustained decline in risk levels for both new and total assets for four consecutive quarters.

我們的 A/B 測試結果表明，這些機器人工具顯著幫助提高了決策的有效性和時間效率。一年來，我們不斷提升風險識別能力，建構更完善的風險管理體系，全面應用智慧化風險管理工具，新資產和總資產風險水準連續四個季度持續下降。

Looking ahead to the second quarter of 2025 amid increased volatility in the external environment and evolving industry dynamics, we will continue to strengthen our capabilities in automated high risk assets, screening and resolution, further refine credit approval and lending management, and swiftly identify and address potential high risk assets. These measures are aimed at ensuring that key risk indicators remain on a downward trajectory.

展望2025年第二季度，在外部環境波動加劇、產業動態不斷發展變化的情況下，我們將繼續加強高風險資產自動化篩檢和處置能力，進一步細化信貸審批和貸款管理，迅速識別和處置潛在高風險資產。這些措施旨在確保關鍵風險指標維持下降趨勢。

Next, I will hand over to our CFO James to provide a review of the company's financial performance for the first quarter.

接下來，我將交給我們的財務長詹姆斯來回顧公司第一季的財務表現。

Thanks, Arvin. I will now provide a detailed overview of our first quarter financial results. Please note that all figures are presented in Renminbi terms and all comparisons are made on a quarter over quarter basis unless otherwise stated. Our first quarter performance marked another strong leap forward and well on track on our profit growth road map.

謝謝，阿爾文。我現在將詳細概述我們的第一季財務業績。請注意，除非另有說明，所有數字均以人民幣表示，所有比較均按季度進行。我們第一季的業績標誌著我們又一次強勁飛躍，並且我們的利潤成長路線圖已順利實現。

During the quarter, our net income increased by 18.6% to RMB430 million and 113.4% year over year, even though the overall new loan volume and the loan balance declined slightly due to the Chinese New Year seasonality.

本季，儘管受春節因素影響，整體新增貸款額及貸款餘額略為下降，淨利仍成長18.6%至4.3億元人民幣，較去年同期成長113.4%。

Our net income margin increased to 13.9% from 9.9% last quarter. Net profit take rate calculated as the net income divided by the average loan balance increased to 1.58% from 1.31% from last quarter and 0.66% a year ago, and advancing by 27 basis points sequentially. The net income, net income margin, and net pay rate, all reached the highest level in the last three years, laying a solid foundation for future profit expansion.

我們的淨利潤率從上一季的 9.9% 上升至 13.9%。以淨收入除以平均貸款餘額計算的淨利潤提取率從上季度的 1.31% 和去年同期的 0.66% 上升至 1.58%，環比上升 27 個基點。淨利潤、淨利率、淨薪酬率均創近三年新高，為未來獲利擴張奠定了堅實的基礎。

From unit economics perspective, the 27 basis point net profit take rate improvement quarter to quarter is led by a 47 basis point increase of revenue take rate, which is calculated by dividing the sum of credit facilitation service and the tech empowerment service income after deducting the funding and the credit cost by the average loan balance.

從單位經濟效益角度來看，淨利提取率季增27個基點，是由收入提取率提高47個基點所帶動的。收入提取率的計算方法是，信貸便利服務收入加上科技賦能服務收入扣除融資和信貸成本後的總和，除以平均貸款餘額。

During the quarter, the revenue take rate increased from 6.22% to 6.69% of the previous quarter. The improvement of revenue take rate reflects our ongoing risk centered business transformation, which resulted in better asset quality and therefore a lower credit and funding cost and a refined business operations.

本季度，營收提取率從上一季的6.22%上升至6.69%。收益接受率的提高反映了我們持續進行的以風險為中心的業務轉型，從而提高了資產質量，降低了信貸和融資成本，並優化了業務運營。

The specific business execution involved focused on retaining prime customers through competitive loan offers, including lower prices and improved tenor, and then migrating subprime borrowers to capitalize model via Intelligent Credit Platform, ICP, to reduce the risk exposure of the optimized profitability.

所涉及的具體業務執行重點是透過有競爭力的貸款優惠（包括更低的價格和更好的期限）來留住優質客戶，然後透過智慧信貸平台ICP將次級借款人遷移到資本化模型，以降低優化盈利能力的風險敞口。

Next, I will provide more details in the following three highlights. First, reduction in credit cost is driven by continuous improvement in asset quality. The reduced the credit cost reflected our sustained improvements in asset quality driven by our enhanced risk management capability.

接下來，我將從三個亮點進行更詳細的介紹。一是資產品質持續改善帶動信貸成本下降。信貸成本的下降反映了我們風險管理能力的提升帶動資產品質的持續改善。

The following key risk indicators demonstrated improvement: On the low balance side, day one delinquency rate declined by 11% and the 90 day delinquency ratio declined by nearly 33 basis points from 3.6% to 3.3%. On the new loan side, on a quarterly basis, the first payment default rate over 7 days decreased by about 5%. With higher quality new loans gradually replacing matured vintage loans, we expect to see continued asset quality improvement contributing to our profit expansion.

以下關鍵風險指標有所改善：在低餘額方面，第一天拖欠率下降了 11%，90 天拖欠率下降了近 33 個基點，從 3.6% 下降到 3.3%。新增貸款方面，以季度計算，首筆7天以上拖欠率下降約5%。隨著更高品質的新增貸款逐漸取代到期的舊貸款，我們預期資產品質將持續改善，從而促進我們的利潤成長。

Meanwhile, our provision coverage ratio, which is calculated as the total outstanding provisions divided by the total outstanding loan balance between 90 and 180 days, still sufficiently add 268%, the highest level since the second quarter of 2024.

同時，我們的撥備覆蓋率（以未償還撥備總額除以90至180天之間的未償還貸款總額計算）仍足以增加268％，這是自2024年第二季以來的最高水準。

Second, decrease in funding costs. Funding costs for new loans and the capital heavy model dropped by 9 basis points to 3.93%, further boosting our revenue take rate. While we've already achieved relatively low funding costs, we expect to maintain this advantage through improving asset quality, strengthening partnerships with funding partners, and diversifying our funding sources.

二是融資成本下降。新貸款和資本密集模式的融資成本下降9個基點至3.93%，進一步提高了我們的收入獲取率。雖然我們已經實現了相對較低的融資成本，但我們希望透過提高資產品質、加強與融資夥伴的合作以及實現融資來源多元化來維持這一優勢。

Third, capital-light model volume growth. During the quarter, we have optimized our risk bearing arrangements by shifting more high risk volumes to the capital-light model through our Intelligent Credit Platform, ICP, where we don't take principal risks for customers with risk rating beyond our preferred range.

三是輕資本模式規模成長。在本季度，我們透過智慧信貸平台 ICP 將更多高風險業務量轉移到輕資本模式，從而優化了風險承擔安排，對於風險評級超出我們偏好範圍的客戶，我們不會承擔本金風險。

Total volume and the cap light model increased by 43% quarter over quarter and accounted for 28% of the total GMV up from 20% of last quarter. And in the capital heavy model, we have improved competitiveness of our offering with a lower pricing and improved the tenor to attract the prime customers.

總銷量和輕量級車型較上季成長 43%，佔總 GMV 的 28%，高於上一季的 20%。在資本密集型模式下，我們透過降低價格提高了產品的競爭力，並改善了條款以吸引主要客戶。

The APR was lowered about 100 basis points from 23.9% down to 22.6% for the last quarter, while at the same time, the user quality has improved, as evidenced by the subprime customers taking a higher percentage of new loans.

上一季年利率從23.9%下調至22.6%，下修約100個基點，同時用戶品質提高，次級貸款客戶在新增貸款中的佔比有所提高。

With the capital-light model, we migrated more subprime customers to the ICP platform, offering risk-based pricing and shortened loan tender to reduce overall risk exposure. As a result, the overall tenor for new loans and both capital heavy and capital-light models slightly decrease quarter over quarter.

透過輕資本模式，我們將更多次級貸款客戶遷移到ICP平台，透過提供基於風險的定價和縮短的貸款投標週期來降低整體風險敞口。因此，新增貸款總體期限以及重資本和輕資本模式均比上一季略有下降。

To summarize the above three highlights, due to the improvement of credit cost and funding costs, our net profit take rate increased from 1.31% to 1.58% last quarter. Additionally, the capital-light model volume growth has lowered the risk exposure for our businesses, enabled differentiating risk-based pricing for high risk users, enhanced risk adjusted returns, and sustained our offer competitiveness for high quality customers.

總結以上三大亮點，由於信貸成本和融資成本的改善，我們的淨利潤提取率從上季度的1.31％上升至1.58％。此外，輕資本模式的交易量成長降低了我們業務的風險敞口，使我們能夠針對高風險用戶進行差異化的風險定價，提高風險調整後的回報，並保持我們針對高品質客戶的報價競爭力。

Let's go through some key financial items. Total revenue from lending related business, which include credit facilitation and service income and the tech empowerment service income combined decreased by 15% quarter to quarter. There are three factors attributing to the change. One, lower APR of loans and the capital heavy model as our effort to attract better quality customers as mentioned earlier. Two, increased early payoff due to more flexible early payoff terms for offer competitiveness and the customer satisfaction.

讓我們來看看一些關鍵的財務項目。貸款相關業務總收入（包括信貸便利化及服務收入以及科技賦能服務收入）較上季下降15%。造成這項變化的因素有三。一是，如前所述，降低貸款年利率和重資本模式是我們吸引更優質客戶的努力。二、透過更靈活的提前還款條款來提高報價競爭力和客戶滿意度，從而增加提前還款。

Three, the GMV volume shift to capital-light model where the revenue is booked net of related credit cost. While in comparison and in the capital heavy model, gross revenue and the credit costs are booked in two separate lines. Loan volume originated and the capital heavy model decreased by 11% quarter over quarter and accounted for 72% of the total GMV, down from the 80% in the first -- in the previous quarter. As a result, credit facilitation and service income primarily associated with the capital heavy model decreased by 19% quarter to quarter.

三、GMV量轉向輕資本模式，即收入扣除相關信用成本後入帳。相較之下，在資本密集模型中，總收入和信貸成本則記入兩條單獨的條目中。貸款發放量和資本密集模式較上季下降11%，佔GMV總額的72%，低於上一季的80%。因此，主要與資本密集模式相關的信貸便利化和服務收入較上季下降19%。

In contrast to the decline in the credit facilitation service income, the tech empowered service income, which is primarily associated with our capital-light model, increased by 4% quarter to quarter. This revenue now accounted for 20% of total revenue, up from 16% last quarter, mainly driven by the increased volume from the capital-light model and partially offset by increased provision driven by our prudent provision estimation.

與信貸便利服務收入下降相比，主要與我們的輕資本模式相關的科技賦能服務收入較上季成長 4%。該收入目前佔總收入的 20%，高於上一季的 16%，主要得益於輕資本模式帶來的業務量增長，但部分被我們審慎的撥備估計帶來的撥備增加所抵消。

Similar to the revenue side of the story, total credit costs, including to provisions, total provisions and a fair value change of financial guarantee derivatives and the loans at fair value decreases by [40%] quarter over quarter. This is partially due to the net wealthy accounting method, as well as the contribution from the asset quality improvement.

與收入方麵類似，總信貸成本（包括撥備、總撥備和金融擔保衍生性商品的公允價值變動以及以公允價值計量的貸款）較上季下降 [40%]。這部分是由於淨財富會計方法的運用，以及資產品質改善的貢獻。

As a cross reference, we can take a holistic view to add total revenue and the credit cost and both the capital heavy and capital-light models together. Total revenue from lending related business net of total cost was about [RMB18.2 billion], increased by 5.6% or [RMB97 million from $17.2 billion] last quarter.

作為交叉參考，我們可以從整體的角度將總收入和信貸成本以及資本密集和輕資本型模型加在一起。貸款相關業務總收入扣除總成本後約為 [人民幣 182 億元]，比上一季增長 5.6% [從 172 億美元增加 9,700 萬元]。

Separately, installment e-commerce platform service income decreased by 16.4%, while GMV grew by 16.2% quarter over quarter. Similarly, this difference was caused by accounting difference due to the volume mixed shift between the third party sellers and the company direct sourcing. For third party sellers, only platform service commission is recognized as a revenue rather than the entire transaction amount under the direct sourcing model.

另外，分期電商平台服務收入季減16.4%，GMV較上季成長16.2%。同樣，這種差異是由於第三方賣家和公司直接採購之間的數量混合轉變造成的會計差異所造成的。對於第三方賣家來說，在直採模式下，僅以平台服務佣金確認為收入，而非全部交易金額。

This structure volume mix change is evidenced by the [sales-wealth] volume from third parties seller accounting for 56% of the total e-commerce GMV in the first quarter, up from 36% in the last quarter. As a result, our installment e-commerce platform service income decreased despite total e-commerce GMV increase from [RMB970 million to RMB1.1 billion].

這種結構量組合變化體現在第三方賣家的[銷售額]佔第一季電子商務GMV總量的56%，高於上一季的36%。因此，儘管電商總交易額 (GMV) 有所成長，但我們的分期電商平台服務收入卻有所下降。[9.7億元至11億元人民幣]。

Furthermore, it's worth highlighting that the gross profit from e-commerce business more than doubled in the first quarter. As a priority within our integrated ecosystem, we'll keep growing our e-commerce business moving forward. By developing tailored financial solutions that actively stimulate and fulfill the evolving consumption and financing needs across diverse custom settlements, we aim to diversify our revenue structure and eventually enhance the overall operational resilience and the profitability.

此外，值得強調的是，第一季電商業務毛利增加了一倍以上。作為我們綜合生態系統的優先事項，我們將繼續發展我們的電子商務業務。透過開發客製化的金融解決方案，積極刺激並滿足不同客製化結算中不斷變化的消費和融資需求，我們旨在實現收入結構多樣化，並最終提高整體營運彈性和獲利能力。

Total operating expenses, which include processing and servicing costs, sales and marketing expenses, research and development expenses, and general and administrative expenses remained relatively stable at [RMB1.3 billion].

總營運費用（包括加工和服務成本、銷售和行銷費用、研發費用以及一般和行政費用）保持相對穩定，[13億元]。

Driven by the aforementioned factors, our net income in the first quarter increased by 18.6% quarter to quarter from RMB363 million to RMB430 million and then when net income margin increased from 9.9% to 13.9%. For balance sheet items as of March 31, our cash position, which includes cash, cash equivalent, and restricted cash, was approximately RMB5 billion. Shareholders equity remained solid at about RMB11.2 billion.

受上述因素推動，第一季公司淨利較上季成長18.6%，由3.63億元增至4.30億元，淨利率由9.9​​%增至13.9%。截至 3 月 31 日的資產負債表項目，我們的現金狀況（包括現金、現金等價物和受限現金）約為人民幣 50 億元。股東權益維持穩健，約112億元人民幣。

Looking ahead, despite challenging macroeconomic environment, evolving industry landscape, and geopolitical uncertainties, the management remains confident in achieving a significant year over year growth in net income, reaffirming our full year earning guidance.

展望未來，儘管宏觀經濟環境充滿挑戰、行業格局不斷變化以及地緣政治不確定性，管理層仍然有信心實現淨收入的同比大幅增長，從而重申了我們對全年盈利的預期。

This concludes our prepare remarks for today. Operator, we're now ready to take questions.

今天的準備發言到此結束。接線員，我們現在可以回答問題了。

(Operator Instructions)

（操作員指示）

Emma Hu, BofA.

美國銀行的 Emma Hu。

(Spoken in foreign language)

（用外語說）

So how does the company address various external challenges such as the impacts of the new rules on loan facilitation business and geopolitical uncertainties on the company's listing standards? Does the company have any plans for Hong Kong IPO?

那麼，公司如何因應新規對貸後業務的影響、地緣政治不確定性對公司上市標準的影響等各種外部挑戰？公司是否有香港IPO計劃？

(Spoken in Hindi)

（印地語）

(interpreted) This is the translation for Jay's remarks. Despite significant changes in the macroeconomic environment and industry landscape this year, the company has delivered outstanding results by adhering to strategy, focusing on risk management, data analytics, and refined operation. Although external challenges persist, the company is well prepared to navigate through them, and management remains confident in achieving its 2025 performance targets.

（譯）這是傑伊言論的翻譯。今年以來，儘管宏觀經濟環境和產業格局發生較大變化，公司堅持策略定力，注重風險管理，注重數據分析，注重精細化運營，取得了優異的業績。儘管外部挑戰依然存在，但公司已做好充分準備應對這些挑戰，管理層對實現 2025 年業績目標仍然充滿信心。

Regarding the new rules on loan facilitation business, we welcome and support regulators efforts in standardizing the industry. While the full impact of these rules remain to be seen in the short term, they're expected to foster a more compliant, healthy, and sustainable environment for the sector in the long run, a trend that particularly benefits large and compliant platforms membership. For us, we have the capabilities and resilience to address the potential impacts of the new rules. Therefore, we are confident in achieving our full year profit target.

對於貸款撮合業務的新規，我們歡迎並支持監管部門為規範行業所做的努力。雖然這些規則的全部影響在短期內仍有待觀察，但從長遠來看，它們有望為該行業創造一個更合規、健康和可持續的環境，這一趨勢尤其有利於大型合規平台的成員。對我們來說，我們有能力和韌性來應對新規則的潛在影響。因此，我們有信心實現全年獲利目標。

Regarding the geopolitical uncertainty, the company has proactively taken measures to prepare, including exploring potential listings on different exchanges, including Hong Kong Stock Exchange, in order to protect the interests of all shareholders. Once any concrete plans or significant progress materialize, we will promptly disclose relevant information to the market in accordance with laws and regulations.

對於地緣政治的不確定性，公司已積極採取措施做好準備，包括探索在香港交易所等不同交易所上市的可能性，以保障全體股東的利益。一旦有具體計畫或重大進展，我們將依法依規及時向市場揭露相關資訊。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(Spoken in foreign language)

（用外語說）

So my, questions, the first one is, what are the progress and development plans for your ecosystem business?

所以我的問題是，第一個問題是，您的生態系統業務的進展和發展計劃是什麼？

And the second is, can you give us more color in terms of where we are in terms of our [asset quality] improvement trend and how to understand the strength of the current risk management capabilities and what's your plan for the next stage? Thank you.

第二，您能否詳細介紹我們目前的資產品質改善趨勢，如何理解目前風險管理能力的強度，以及下一階段的計畫？謝謝。

(Spoken in foreign language)

（用外語說）

(interpreted) Lexin has always had very diverse business employment in not only having online business but also offline, and we have unique competitive edge in our own ecosystem business. More specifically, as I mentioned in my remark for our online customer business, we continue to improve the risk management capabilities and operational refinement and have witnessed a substantial enhancement in the capability and efficiency of customer acquisition.

(翻譯)樂信一直以來業務佈局非常多元化，不僅有線上業務，也有線下業務，並且在自己的生態系統業務上擁有獨特的競爭優勢。具體來說，正如我剛才關於線上客戶業務的發言中提到的，我們不斷提升風險管理能力和精細化營運水平，獲客能力和效率有了顯著提升。

Going forward, we're focused on providing tailored products to match customers with varying profiles in reaching our product portfolio to enhance customer offer competitiveness and expanding customer acquisition in China. Meanwhile, we will further explore collaboration with huge traffic platform, which has already exhibited good momentum this year and expanded our business to achieve sustainable volume growth.

展望未來，我們將專注於提供客製化產品，以滿足不同客戶的需求，擴大我們的產品組合，增強客戶競爭力，擴大在中國的客戶獲取範圍。同時，我們將進一步探索與大流量平台的合作，今年已經展現出良好的發展勢頭，並拓展了我們的業務，實現了可持續的流量成長。

For our installment e-commerce business, we have resembled risk management system, upgraded merchandise supply chain, and expanded the business boundary. By tailoring employment services to users based on their risk profile, we better address diverse customer demands.

對於分期電商業務，我們模擬風險管理體系，升級商品供應鏈，擴展業務邊界。透過根據用戶的風險狀況客製化就業服務，我們可以更好地滿足多樣化的客戶需求。

Going forward, we will fully leverage our e-commerce to better engage existing customers and attract new ones, making it a key lever for us to adapt to industry changes and enhance the company operational resilience.

未來，我們將充分利用電商平台更好地維繫現有客戶，吸引新客戶，使其成為我們適應產業變化、增強公司營運韌性的關鍵槓桿。

For our offline inclusive finance business, which is quite a unique feature of our business [performance], we have strengthened our in-house channel development and optimize the risk management model to ensure that differentiate competitiveness of our products and also secure sequential increase of [process].

對於我們的線下普惠金融業務，這是我們業務的一個獨特之處，我們加強了內部通路建設，優化了風險管理模式，以確保我們產品的差異化競爭力，並確保[過程]。

Going forward, we will continue to increase the penetration of microbusiness owners in lower tier cities, enhance localized business development, and increase operational efficiency. Well, I [always said to] further optimize the business model and capabilities at various fronts. By far, our [average rate of return] have achieved profit overall. Going forward for overseas business, we will adopt a prudent approach in terms of investment in discussion. Thank you.

未來，我們將持續增加對低線城市小微型企業的滲透，加強在地化業務發展，提高營運效率。嗯，我[總是說]要進一步優化各個方面的商業模式和能力。到目前為止，我們的[平均回報率]總體上已經實現盈利。展望未來的海外業務，我們將採取審慎的態度來洽談投資。謝謝。

(Spoken in foreign language)

（用外語說）

(interpreted) Over the past year, we have comprehensively upgraded our risk management system across multiple fronts including risk identification, differentiate our risk strategy, differentiated risk pricing, risk bearing models, risk monitoring and early warning, and risk management tools, et cetera. This has led to a significant improvement in our risk management strength and our ability to handle risk volatility.

(翻譯) 一年來，我們在風險識別、差異化風險策略、差異化風險定價、風險承擔模型、風險監控預警、風險管理工具等多個方面全面升級風險管理體系。這使得我們的風險管理實力和應對風險波動的能力顯著提高。

Thanks to our efforts and upgrade in the past year, we have established a mature, robust, quantitative driven risk management system. As a result, risk levels of both new and overall assets have exhibited a sustained decline over the past year.

經過一年的努力與提升，我們建立了成熟、穩健、量化驅動的風險管理系統。因此，過去一年新資產和整體資產的風險水準持續下降。

In light of the persistently challenging external environment and ongoing uncertainty, we remain committed to our risk centric strategy and prudent operational approach. We'll further strengthen our risk management capability while actively exploring the application of large models to enhance the accuracy and efficiency of our risk management system. This will ensure asset rate maintain the current downward trajectory.

鑑於外部環境持續充滿挑戰和不確定性，我們將繼續堅持以風險為中心的策略和審慎的運作方式。我們將進一步加強風險管理能力建設，並積極探索大模型的應用，提升風險管理系統的精準度與效率。這將確保資產利率維持當前的下行軌跡。

Yada Li, CICC.

中金公司，李亞達。

(Spoken in foreign language)

（用外語說）

Then I'll do the translation. First, congrats to the record high results and thanks for taking my questions. My first question is, in this quarter, I've noticed that the revenue structure experience and material changes, and I was wondering what are the main reasons to drive this change.

那我來翻譯吧。首先，恭喜您取得創紀錄的高成績，並感謝您回答我的問題。我的第一個問題是，在這個季度，我注意到收入結構經歷了重大變化，我想知道推動這種變化的主要原因是什麼。

And second, what is the company's plan in shareholders' returns going forward? Thank you so much.

第二，公司未來對股東的回報計畫是什麼？太感謝了。

Okay, I will take the first question and ask Jay to talk about the second. So the first question, first of all, as I mentioned in my previous script, it is important to bear in mind that despite the different factors contributing to the quarter-over-quarter revenue variance analysis, we should always take a holistic view to look at the total revenue and the credit costs together to get the big picture.

好的，我先回答第一個問題，然後請傑伊談談第二個問題。所以第一個問題，首先，正如我在之前的腳本中提到的，重要的是要記住，儘管影響季度環比收入差異分析的因素不同，但我們應該始終以整體的眼光來看待總收入和信貸成本，以了解總體情況。

The big picture is that, from the unit economics perspective, our revenue take rate increased from 6.22% to 6.69% quarter-over-quarter. And the net take rate after offsetting the operational cost increased from 1.31% to 1.58% quarter-over-quarter.

整體來看，從單位經濟角度來看，我們的營收提取率較上季成長從 6.22% 上升至 6.69%。扣除營運成本後的淨利率較上季由1.31%上升至1.58%。

So in terms of the specific revenue variance analysis, basically the quarter-over-quarter variance in total revenue was primarily due to lower credit facilitation service income driven by the reduced the pricing, higher early repayments, and a shift in GMV towards the capital-light model.

因此，就具體的收入差異分析而言，總收入的季度環比差異基本上主要是由於定價降低、提前還款增加以及 GMV 向輕資本模式轉變導致信貸便利服務收入下降。

While the tech empowerment service line income saw some increase driven by the capital-light GMV volume migration, here the net-based accounting recognition is used where the revenue is net of related credit costs instead of recognizing revenue and the credit cost in two separate lines. So related to this, the total credit cost declined at the same time, partially due to the same reason.

雖然科技賦能服務線的收入因輕資本化GMV交易量遷移而有所增長，但該業務線採用基於淨額的會計確認方法，即收入扣除相關信貸成本，而不是將收入和信貸成本分成兩條獨立的線來確認。與此相關，信貸總成本也同時下降，部分原因也是相同的。

Additionally, despite the sequential GMV growth of 16.2% quarter-over-quarter, the installment e-commerce platform revenue decreased similarly as a result of the revenue recognition difference due to the volume mixed shift between the third party sellers and the company direct sourcing. For the third party sellers, only the platform service commission is recognized as a revenue rather than the entire transaction amount and the direct sourcing model. The sales volume from the third party seller accounts for 56% of the total e-commerce GMV in the first quarter, up from the 36% in the last quarter.

此外，儘管 GMV 環比增長 16.2%，但由於第三方賣家和公司直接採購之間的數量混合轉變導致收入確認差異，分期付款電商平台收入也出現類似下降。對於第三方賣家來說，只有平台服務佣金才被確認為收入，而不是整個交易金額和直接採購模式。第一季第三方賣家銷售額佔電商整體GMV的56%，高於上一季的36%。

So, in conclusion, the, rapidly structural variance really reflected our ongoing risk-centric business transformation and our operational refinement. While the accounting treatment across different business models may cause some top line variances, however, our profit and a profit margin continue to improve, really firmly tracking our plan.

因此，總而言之，快速的結構性變化確實反映了我們正在進行的以風險為中心的業務轉型和營運改善。雖然不同商業模式的會計處理可能會導致一些收入差異，但我們的利潤和利潤率持續提高，真正堅定地追蹤我們的計劃。

(Spoken in foreign language)

（用外語說）

(interpreted) The company has always attached great importance on shareholders' return and is committed to delivering value to shareholders in various needs. Since November 2024, the company has increased its cash dividend payout ratio twice within six months, demonstrating its emphasis on shareholders' return. This not only testifies the company's stable and reliable profitability, but also reflects the management confidence in achieving stable and sustainable growth in the future.

(解釋) 公司始終重視股東回報，致力於在各種需求下為股東提供價值。自2024年11月起，公司半年內兩度提高現金分紅比例，反映了對股東回報的重視。這不僅證明了公司穩定可靠的獲利能力，也反映了管理層對未來實現穩定永續成長的信心。

The company will continue to create value for shareholders. We understand investors' expectations regarding shareholders' return and will work to align our dividend policy with shareholders' expectations by considering the company's resources, its business development, and capital market conditions while striving to enhance returns appropriately.

公司將持續為股東創造價值。我們了解投資人對股東回報的期望，並將結合公司資源、業務發展、資本市場狀況等因素，努力使股利政策與股東期望一致，並努力適當提高回報。

Thank you for all the questions. I see no further questions at this time. I will now hand the conference back to Will for closing remarks.

謝謝大家的提問。目前我沒有其他問題。現在我將會議交還給威爾，請他作結語。

Thank you, operator. This conference is now concluded. Thank you for joining today's call. If you have any more questions, please do not hesitate to contact us. Thanks again.

謝謝您，接線生。本次會議現已結束。感謝您參加今天的電話會議。如果您還有其他問題，請隨時與我們聯絡。再次感謝。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。