Lexinfintech Holdings Ltd (LX) 2025 Q2 法說會逐字稿

Thank you for standing by and welcome to the LexinFintech Holdings Limited second-quarter 2025 earnings conference call. (Operator Instructions)

感謝您的支持，歡迎參加樂信金融科技控股有限公司 2025 年第二季財報電話會議。（操作員指示）

I would now like to hand conference over to Mr. Will Tan. Please go ahead.

現在我想將會議交給 Will Tan 先生。請繼續。

Thank you, operator. Hello, everyone. Welcome to our second-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。歡迎參加我們的 2025 年第二季財報電話會議。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 strategies of our business. Our CRO, Mr. Arvin Zhanwen Qiao, 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，您將聽到我們董事長兼執行長肖文傑先生的講話，他將介紹我們業務的整體表現和策略的最新情況。我們的首席風險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 James Zheng 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 a quarter-over-quarter basis, unless otherwise stated. Please kindly note Jay and Arvin will give their whole remarks in Chinese first, then the English version will be delivered by Jay's and Arvin's AI-based voices.

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計算，所有比較均按季度進行。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 CEO of Lexin.

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。

(interpreted) Thanks for joining us today for our second-quarter 2025 earnings. We're delighted to report another quarter of high-quality growth. The company has successfully executed the transformation towards a business model by data analytics, risk management, and refined operations.

(翻譯)感謝您今天參加我們的 2025 年第二季財報。我們很高興地報告本季又實現了高品質成長。本公司已成功實現向數據分析、風險管理、精細化營運的商業模式轉型。

Like macroeconomic uncertainties, our prudent strategy has led to continued profitability recovery and sustainable growth. In the second quarter, total GMV reached RMB52.9 billion, a quarter-over-quarter growth of 2.4%. Revenue increased by 16% to RMB3.6 billion. Net profit reached RMB511 million, representing quarter-over-quarter growth of 19% and year-over-year growth of 126%, a record high in the past 14 quarters.

與宏觀經濟的不確定性一樣，我們審慎的策略帶來了獲利能力的持續恢復和永續成長。第二季度，總GMV達到529億元，季增2.4%。營收成長16%至人民幣36億元。淨利達5.11億元，季增19%，年增126%，創14季以來新高。

The excellent quarterly results are driven by the sustained improvement of asset quality and resilient growth across our business ecosystem. The management has always placed great emphasis on shareholder returns and remains committed to improving shareholder returns through various means.

優異的季度業績得益於我們整個業務生態系統的資產品質持續改善和強勁成長。管理階層始終高度重視股東回報，並致力於透過各種方式提高股東回報。

Starting from the second half of this year, our cash dividend payout ratio is raised from 25% to 30%. Also, in July, the company announced a $60 million share repurchase plan to be executed within the next 12 months. These measures will further raise the company's shareholder returns above the industry average level.

從今年下半年開始，我們的現金分紅比例由25%提高到30%。此外，該公司7月宣布了一項6,000萬美元的股票回購計劃，將在未來12個月內執行。這些舉措將使公司股東回報進一步高於行業平均。

Now, let me introduce the specific business progress we have made in the second quarter. First, our unique business ecosystem has sustained strong growth, which has enhanced our competitiveness and strengthened our operational resilience.

以下我向大家介紹一下我們第二季的具體業務進度。首先，我們獨特的業務生態系統保持了強勁成長，增強了我們的競爭力並增強了我們的營運韌性。

Our installment e-commerce business focuses on the essential consumption needs of young customers. In the second quarter, we comprehensively upgraded our supply chain and partnered with dozens of top tier brands to expand our product matrix. Also, we fully tapped into users' diverse consumption demands through two merchandizing categories, high quality offerings, and factory outlet products.

我們的分期電商業務聚焦年輕客戶的基本消費需求。第二季度，我們全面升級供應鏈，並與數十個頂級品牌合作，擴大產品矩陣。同時，透過兩大商品類別、優質產品、工廠直銷產品等，充分滿足用戶多樣化的消費需求。

In addition, based on our user insights, we developed and optimized our hyper personalization approach to customize operation and risk strategies for different segments of customer. During the June 18th shopping festival, our e-commerce GMV increased by 139% year over year, putting this business firmly on a rapid expansion path.

此外，基於我們的用戶洞察，我們開發並優化了超個人化方法，為不同群體的客戶量身定制營運和風險策略。6·18購物節期間，我們的電商GMV年增139%，業務穩步走上快速擴張之路。

For offline inclusive finance business, we strengthened localized operations and expanded our business into lower tier cities. By adopting customized risk management and differentiated competition strategies, enhancing our service capabilities, and improving our efficiency to serve small and microbusiness owners, the profitability of inclusive finance business achieved steady sequential growth.

在線下普惠金融業務方面，我們加強本地化運營，將業務拓展至低線城市。透過採取個人化風險管理和差異化競爭策略，提升服務能力，提高服務小微企業主的效率，普惠金融業務獲利能力可實現環比穩定成長。

For online consumer finance business, we accelerated its development by partnering with multiple leading platforms to secure a favorable market position, laying a solid foundation for future growth.

在線上消費金融業務方面，我們與多家頭部平台合作，加速發展，佔據市場領先地位，為未來成長奠定堅實基礎。

For our tech empowerment business, we leveraged our standardized systems and risk management expertise to help partner banks sufficiently connect with major platforms, enhancing their data-driven risk management capabilities, and have gained wide recognition from our partner banks. During the quarter, the business saw significant increase in business volume and number of users, maintaining robust growth momentum.

科技賦能業務利用標準化系統及風險管理專業技術，協助合作銀行充分接合各大平台，提升合作銀行資料驅動的風險管理能力，並獲得合作銀行的廣泛認可。本季度，該業務業務量和用戶數均大幅成長，並維持強勁成長動能。

For overseas business, we continue to strengthen mid and back-end capabilities, making notable progress during the quarter. It delivered substantial quarter over quarter growth in both business volume and revenue for multiple consecutive quarters.

對於海外業務，我們繼續加強中後端能力，並在本季度取得了顯著進展。連續多個季度業務量和收入均實現大幅環比成長。

Second, we strive for product service excellence to drive the growth of quality user in our online credit business. In the second quarter, we expanded our product portfolio, offering users competitive terms and flexible repayment options to meet their product and service needs throughout the full life cycle, significantly increasing user engagement.

第二，我們致力於卓越的產品服務，以推動網路信貸業務優質用戶的成長。第二季度，我們擴大了產品組合，為用戶提供有競爭力的條款和靈活的還款方式，以滿足他們在整個生命週期內的產品和服務需求，顯著提高了用戶參與度。

For prime customers, we launched a product with more competitive. Pricing upgraded lodging card catering to their demands for on-demand borrowing and repayment with daily interest calculation. The product has been well received since its launch.

針對優質客戶，我們推出了更具競爭力的產品。升級住宿卡定價滿足其按需借貸、按日計息還款的需求。該產品自推出以來就廣受好評。

For qualified small and microbusiness owners, we partnered with banks to introduce products with flexible terms, further reducing financing costs and precisely meeting the needs of the segment.

對於符合資格的小型企業主，我們與銀行合作推出期限靈活的產品，進一步降低融資成本，精準貼合小微企業主的需求。

Third, AI further enhanced our business quality and efficiency. Our locally deployed large AI models have been deeply applied in most business scenarios. For example, in post-loan management, the intelligent data-driven platform has achieved full process end-to-end AI support, ranging from case allocation and collection operations to customer operation and repayment strategies, effectively improving the post loan collection rate.

三是人工智慧進一步提升了業務品質和效率。我們本地部署的大型AI模型已經在大多數業務場景中深入應用。例如在貸後管理方面，智慧數據驅動平台實現了從案件分撥、催收營運到客戶營運、還款策略的全流程端到端AI支持，有效提升了貸後催收率。

The company's self-developed AI agents have also made significant progress. With 50 AI agent roles currently deployed in key business areas, such as operational strategy generation, credit strategy review, and automated monitoring, greatly enhancing our operational efficiency.

公司自主研發的AI代理也取得了重大進展。目前已有50個AI代理角色部署在營運策略產生、信貸策略審核、自動化監控等關鍵業務領域，大幅提升了營運效率。

The company adheres to a user-centric philosophy and strives to enhance consumer satisfaction and trust. By optimizing user service and experience and responding to user needs efficiently, we remain focused on the top-level design and long-term mechanisms for consumer rights protection governance, integrating consumer rights protection into all business processes.

本公司堅持以使用者為中心的理念，努力提升消費者的滿意度與信任度。我們著重優化使用者服務與體驗，高效回應使用者需求，緊緊圍繞著消保治理的頂層設計與長效機制，將消保工作融入各項業務流程中。

Also, we have built a proactive consumer rights protection system to advance the high-quality development of consumer rights protection. During the quarter, we increased technology investment in consumer protection and have refined over 50 digital and model-based tools to improve service response and user satisfaction.

建構積極主動的消費者權益保護體系，推動消費權益保護事業高品質發展。本季度，我們加大了消費者保護方面的技術投入，完善了50多種數位化和基於模型的工具，以提高服務響應能力和用戶滿意度。

Looking ahead, we will maintain stable business scale, further reduce risks, and sustain profit growth in the third quarter. Although the new regulation of loan facilitation, which is to take effect in the fourth quarter may bring some changes to the industry, we believe it will foster the healthy development of the industry, particularly benefiting platforms like that place high importance on compliance. We will strengthen our business ecosystem synergy to build a unique competitive advantage and ensure continued business growth. As such, we maintain our full year guidance of achieving significant year over year profit growth.

展望未來，我們將維持穩定的業務規模，進一步降低風險，維持第三季獲利的成長。雖然即將於第四季實施的貸貸新規可能會為產業帶來一些變化，但我們認為這將有利於產業的健康發展，尤其有利於像這類高度重視合規的平台。我們將強化業務生態系統協同作用，打造獨特的競爭優勢，確保業務持續成長。因此，我們維持全年利潤同比大幅增長的預期。

Now, I would like to give the floor to our CRO, Arvin. Thanks.

現在，我想請我們的首席風險長 Arvin 發言。謝謝。

(interpreted) Thanks, Jay. Next, I will provide a review of our key initiatives and achievements in risk management for the second quarter.

（譯）謝謝，傑伊。接下來，我來回顧我們第二季風險管理的重點措施和取得的成效。

In the second quarter, while the macroeconomic and industry environment remained complex and uncertain, we took swift action to address the potential impacts and maintain the downward trend in risks. Specifically, we focused on identifying customers vulnerable to industry fluctuations and taking measures to mitigate potential risks. Also, we adopted interactive re-offers to drive the increase of high-quality asset volume.

二季度，宏觀經濟和產業環境依然複雜多變，我們迅速應對各種影響，風險持續下行趨勢不變。具體來說，我們專注於識別易受行業波動影響的客戶並採取措施降低潛在風險。同時採取互動換股方式，帶動優質資產規模成長。

In addition, we leveraged large models to upgrade our risk management capabilities, improving the efficiency of risk decision making and the accuracy of pricing and credit line strategies. Thanks to the initiatives we've taken, risks of both new and overall assets continue to decrease.

此外，我們利用大模型提升風險管理能力，提高風險決策效率、定價和授信策略的準確性。由於我們採取的舉措，新資產和整體資產的風險都在持續下降。

Leading risks indicator for new loans, first payment default FPD over seven days of the second quarter declined by about 5% compared to the previous quarter. On total loan portfolio, day one delinquency ratio decreased by about 2% and 90 days delinquency ratio decreased by 6% quarter over quarter.

新增貸款領先風險指標－第二季首筆七天拖欠貸款FPD季減約5%。就整體貸款組合而言，第一天拖欠率較上季下降約 2%，90 天拖欠率較上季下降 6%。

I will introduce in detail the key initiatives we've taken for the second quarter. First, in terms of risk identification, we continue to optimize data models in the second quarter, focusing on identifying customers who are vulnerable to industry fluctuations and mitigating potential risks.

我來詳細介紹一下我們第二季採取的重點措施。一是在風險辨識方面，第二季我們持續優化資料模型，重點辨識易受產業波動影響的客戶，化解潛在風險。

Based on the accumulated data on time series changes of credit risk across multiple credit cycles, we employ causal inference techniques and scenario simulations to develop a risk identification model that assesses customers' risk sensitivity to environment changes. The model has proven to be highly effective. Among customers of the same risk rating, those who are identified as highly sensitive exhibit 1.5 times risk level of low sensitivity customers in the current environment.

我們基於累積的跨多個信用週期的信用風險時間序列變化數據，採用因果推斷技術和情境模擬來開發風險識別模型，評估客戶對環境變化的風險敏感性。該模型已被證明非常有效。在相同風險評級的客戶中，被認定為高度敏感的客戶在當前環境下的風險程度是低敏感客戶的1.5倍。

In addition, we focused on using data that shows greater stability features such as customer profiles, job stability, and personal asset status to enhance our predictive capability for long horizons risks, thereby providing more reliable services to high quality customers.

此外，我們專注於利用客戶畫像、工作穩定性、個人資產狀況等穩定性特徵更高的數據，提升長期風險的預測能力，為優質客戶提供更可靠的服務。

Second, we continue to strengthen risk management through preventive and proactive approaches. For customers identified by our model who are vulnerable to external environment changes and show higher risks, we've promptly taken measures such as reduction or suspension of their credit lines in order to mitigate the potential impacts of industry risks.

二是繼續加強預防為主、主動作為的風險管理。對於透過模型識別出易受外部環境變化影響、風險較高的客戶，我們及時採取降低或暫停其授信額度等措施，以減輕產業風險的潛在影響。

Meanwhile, we continue to enhance the competitiveness of offers for quality customers. In the second quarter, we launched a mechanism for customers to supplement credit enhancement documents, conducted personalized real-time reoffering which combines machine review and manual review, and launched a braided Lexin card, a new financial product featuring higher credit amount and lower fee rate.

同時，我們不斷提升優質客戶的報價競爭力。第二季推出客戶補充增信文件機制，進行機審與人工審核結合的個人化即時再貸款業務，推出授信額度較高、費率較低的編織樂信卡等金融新產品。

These measures helped drive the asset volume of prime customers and number of active customers to increase quarter over quarter. In the third quarter, we will continue to strengthen the risk management strategy that combines preventive and proactive approaches to sustain the risk reduction trend while expanding high quality assets and customers.

這些措施帶動優質客戶資產體量、活躍客戶數季增。第三季度，我們將持續強化預防與主動結合的風險管理策略，在擴大優質資產和客戶的同時，維持風險下降的趨勢。

Third, in terms of e-commerce, we further upgraded the risk management system for e-commerce, which is an independent system from online consumer finance business. Specifically, we established millisecond level real-time risk decision making capabilities across key processes including search recommendations, offer matching, credit approvals, and re-offer, et cetera.

三是在電商方面，我們進一步升級了電商風險管理系統，並將其作為獨立於網路消費金融業務的系統。具體來說，我們在搜尋推薦、報價匹配、信貸批准、重新報價等關鍵流程建立了毫秒即時風險決策能力。

This ensures we meet customers' diverse consumption needs while maintaining risks well under control. Based on the independent risk management system, the risk identification capability of e-commerce platform improved by over 30% compared to the previous quarter. Approval rates for credit application and order placement of platform users, especially quality users, have significantly increased, which has promoted the rapid growth of e-commerce business.

確保我們在滿足客戶多樣化消費需求的同時，有效控制風險。基於自主風險管理體系，電商平台風險辨識能力較上季提升30%以上。平台用戶特別是優質用戶的信用申請和訂單下單率大幅提升，促進了電商業務的快速成長。

Last but not least, we continue to strengthen the development and application of intelligent risk management tools. Leveraging the latest AI large models, we have developed and implemented the credit line robot and pricing robot, which has delivered favorable results. The credit line robot has improved the efficiency and effectiveness of credit line decisions, while the pricing robot significantly improved the volume growth from pricing reduction by establishing price curves based on experimental data and dynamically optimizes pricing strategies.

最後，我們不斷加強智慧風險管理工具的開發與應用。利用最新的AI大模型，開發並落地了授信機器人、定價機器人，並且取得了良好的效果。授信機器人提升了授信額度決策的效率和效果，定價機器人透過基於實驗數據建立價格曲線，動態優化定價策略，顯著提高了降價帶來的量增幅。

In the future, we will continue to explore the application of large models in risk management, advancing our capabilities from quantitative risk management to intelligent risk management and building a leading edge in risk management capabilities in the third quarter. While external uncertainties and industry fluctuations remain, we will continue to strengthen our capabilities in automated high risk asset screening and resolution, further refine credit approval and lending management, and enhance customer onboarding and transaction management while swiftly addressing high risk assets.

未來，我們將持續探索大模型在風險管理的應用，推動風險管理能力從量化邁向智慧化，在第三季建構風險管理能力的領先優勢。在外部不確定性和產業波動仍然存在的情況下，我們將持續加強自動化高風險資產篩選和處置能力，進一步完善信貸審批和貸款管理，加強客戶入職和交易管理，同時迅速處置高風險資產。

In the meantime, we will further optimize credit approval and credit line granting strategies to better meet the needs of quality customers, improve user experience, and foster continued quality assets growth. These efforts are aimed at ensuring that key risk indicators remain on a downward trajectory.

同時，我們將進一步優化信貸審批和授信策略，更能滿足優質客戶需求，提升使用者體驗，促進優質資產持續成長。這些努力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 second quarter.

接下來，我將交給我們的財務長詹姆斯，對公司第二季的財務表現進行回顧。

Thanks, Arvin. I will now provide a detailed overview of our second 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.

謝謝，阿爾文。我現在將詳細概述我們第二季的財務表現。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。

We are pleased to announce another quarter of solid financial performance, marked by robust revenue growth, sustained probability, and expanding margins. We're on track on our probability recovery trajectory. Revenue recorded RMB3.6 billion in the second quarter, representing a 16% increase quarter over quarter.

我們很高興地宣布，本季財務業績再創佳績，其特點是營收強勁成長、機率持續成長、利潤率不斷擴大。我們的機率恢復軌跡正在順利進行中。第二季營業收入36億元人民幣，較上季成長16%。

Net income grew strongly by 19% quarter over quarter.and 126% year over year to reach [RMB511 million]. Our net income margin increased to 14.3% from 13.9% last quarter. Net income take rate calculated as analyzed net income divided by the average loan balance, increased 34 basis points to reach 1.92%.

淨收入季增 19%，年增 126%，達到【5.11億元人民幣】我們的淨利潤率從上一季的 13.9% 上升至 14.3%。以分析淨收入除以平均貸款餘額計算的淨收入提取率增加34個基點，達到1.92%。

The net income margin and net income take rate kept reaching record highs for the past 14 quarters, laying (technical difficulty) profit expansion. This set of financial results underscore our ability to turn around and drive sustainable growth in the dynamic market conditions.

淨利率、淨利提取率連續14季創歷史新高，為利潤擴張奠定（技術難度）基礎。這組財務表現凸顯了我們在動態市場條件下扭轉局面並推動永續成長的能力。

To gain a clearer understanding of our business growth dynamics, let's take a holistic view of our financial results. First, if we add up credit facilitation service income and tech empowerment service income, net of credit cost, including the provisions and the fair value changes and the funding cost, we come up with a net revenue of the credit business.

為了更清楚地了解我們的業務成長動態，讓我們全面地了解我們的財務表現。首先，如果我們把信貸便利服務收入和技術賦能服務收入加起來，扣除信貸成本，包括撥備和公允價值變動以及融資成本，我們就得到了信貸業務的淨收入。

The net revenue provides a more accurate reflection of our credit business performance as it absorbs the impact of a different accounting treatment for capital light and capital heavy business, as well as the shifting mix across quarters.

淨收入更準確地反映了我們的信貸業務業績，因為它吸收了輕資本業務和重資本業務的不同會計處理的影響，以及各季度組合變化的影響。

In the second quarter, the net revenue of our credit business increased by 10% or RMB183 million to RMB2 billion. The net revenue of our e-commerce business, defined as the e-commerce revenue, net of cost of inventory sold, increased by 71% or RMB40 million to RMB97 million. So the total net revenue added up to RMB2.1 billion.

第二季度，我們的信貸業務淨收入成長10%，即1.83億元人民幣，達到20億元。我們的電子商務業務淨收入（即扣除銷售庫存成本的電子商務收入）成長了 71% 或 4,000 萬元，達到 9,700 萬元人民幣。所以總淨收入為21億元。

Operating expenses, including sales and marketing, research and development, general administrative expenses, processing and servicing costs, tax and others increased by 9.8% or RMB142 million to RMB1.6 billion. So if we deduct total expense ofRMB$1.6 billion from the total net revenue of RMB2.1 billion, we get a net income of RMB511 million increased by 90% or RMB81 million quarter over quarter.

營業費用（包括銷售及行銷、研發、一般管理費用、加工及服務成本、稅金及其他）增加 9.8%（即 1.42 億元人民幣），達 16 億元。因此，如果我們從21億元的總淨收入中扣除16億元人民幣的總支出，我們將獲得5.11億元的淨收入，比上一季增長90%，即8100萬元。

Driving the second quarter's strong financial performance are the following three business highlights, namely, the flexible volume shift between business models, continued improvement in asset quality alongside sufficient provisioning, and a robust growth in our e-commerce business.

推動第二季財務表現強勁的主要因素包括以下三大業務亮點：業務模式間靈活的量能轉換、資產品質的持續改善和充足的撥備、以及電商業務的強勁成長。

Now, let me elaborate more on the three business highlights. First, flexible volume shift between business models highlights operational resilience, driving stable growth in volume, revenue, and net profit. From new economics perspective, net income take rate achieved 1.92% this quarter. The 34-basis point improvement quarter over quarter is mainly driven by an 82-basis point increase of revenue take rate of credit business which is calculated by dividing the net revenue by the average loan balance.

下面我來詳細說明三大業務亮點。一是業務模式間靈活的量能轉換，凸顯經營韌性，帶動銷售、營收、淨利穩定成長。從新經濟角度來看，本季淨利率達到1.92%。環比成長 34 個基點，主要由於信貸業務收入提取率（以淨收入除以平均貸款餘額計算）成長 82 個基點。

During the quarter, the net revenues take rate of credit business increased from 6.69% to 7.51%. The increase was mainly driven by the increase of APR of capital heavy model, which increased to 23.2% in the second quarter from 22.6% last quarter. And also, the stabilization of early payoff impact happened during the last quarter partially offset by the increase of funding cost.

本季度，信貸業務淨收入提取率由6.69%上升至7.51%。此成長主要得益於重本型利率的上升，該利率由上季的22.6%上升至第二季的23.2%。此外，上個季度早期償付影響的穩定性被融資成本的增加部分抵消。

The improvement of net revenue reflects our business resilience in a dynamic and a complex environment. In the second quarter, we have observed a reduction in the supply of funds for capital light business due to the fluctuation related to the new regulation, leading to higher funding costs for both capital light and capital heavy models.

淨收入的提高反映了我們的業務在動態和複雜環境中的韌性。在第二季度，我們觀察到由於新法規相關的波動，輕資本業務的資金供應減少，導致輕資本和重資本模式的融資成本上升。

To offset the impact, we proactively adjusted our business mix, switched more low volumes from capital light model to capital heavy model. In the second quarter, the capital light model accounted for 20% of GMV decreased from 27% in the first quarter, mainly driven by the decrease of loans from ICP model, which only accounted for about 15% of GMV decreased from 24% in the first quarter.

為了抵銷影響，我們主動調整業務組合，將更多低交易量業務從輕資本模式轉向重資本模式。第二季輕資本模式GMV佔比由第一季的27%下降至20%，主要受ICP模式貸款減少所致，ICP模式GMV佔比僅約15%，較一季的24%下降。

The proportion of capital heavy model increased to 80% from 73% in the first quarter. As a result, the borrowers from capital Iight model typically have relatively higher risk profiles. to reflect this risk premium, the average APR of new loans and the capital heavy model increase.

重資本模式佔比由第一季的73%提升至80%。因此，輕資本模式的借款人通常具有相對較高的風險狀況。為了反映這種風險溢價，新貸款和重資本模式的平均 APR 會增加。

At the same time, the provision increased due to the increase of loans and the capital heavy model. The small switch was supported by our enhanced risk management capability, which equipped us to accurately assess borrower risk, enabling risk pricing and product offering to optimize probability in the volume growth.

同時，由於貸款增加及重資本模式，撥備提列也相應增加。此次小規模的轉變得益於我們增強的風險管理能力，使我們能夠準確評估借款人風險，從而實現風險定價和產品供應，以優化交易量增長的機率。

Second, asset quality sustained the improvement trend, and the provision remained prudent and sufficient. Our asset quality has continued to improve for four consecutive quarters. In the second quarter, 90-day delinquency ratio declined by 16 basis points to 3.1%. FPD7 of new assets further came down by about 5%. Day one delinquency rate of total assets also decreased by about 2% quarter over quarter.

二是資產品質持續向好，撥備保持審慎充裕。我們的資產品質連續四個季度持續改善。第二季度，90天拖欠率下降16個基點至3.1%。新資產的FPD7進一步下降了約5%。總資產首日拖欠率也比上一季下降了約2%。

Also, our provisions remained prudent and sufficient. As mentioned above, in the second quarter, our total credit cost, including three provisions line items and the fair value changes of financial guarantees derivatives increased by 13.6% quarter over quarter, despite improved asset quality and a decreased loan balance.

此外，我們的準備金仍然審慎且充足。如上所述，第二季度，儘管資產品質有所改善、貸款餘額有所減少，但我們的總信貸成本（包括三項撥備項目和金融擔保衍生品的公允價值變動）環比增長了 13.6%。

It is important to note that due to the net accounting policy we have adopted for change in fair value of financial guaranteed derivatives and the loans and fair value account, the amount was partially offset by guaranteed income and recorded as a net value in our P&L. As such, it only represents part of the actual full provision. As another indicator of the sufficiency of our provisioning, our provision coverage ratio remained ample at 270%, up by 2% points, quarter over quarter, and reached the highest level in the last four quarters.

值得注意的是，由於我們對金融擔保衍生品的公允價值變動以及貸款和公允價值帳戶採用了淨會計政策，該金額被擔保收入部分抵消，並在我們的損益表中記錄為淨值。因此，它僅代表實際全部規定的一部分。撥備覆蓋率持續保持充裕，達270%，環比上升2個百分點，達到近四個季度以來的最高水平，充分體現了我們撥備充足性。

Third, e-commerce spins gain further traction. Our e-commerce business is deeply integrated into our ecosystem, creating strong synergies and therefore becomes a unique competitive advantage. E-commerce business not only generates the gross profit by selling merchandise but also creates interest income by providing installment services to customers. Around 97% of e-commerce customers choose to finance their consumption with our installment service.

第三，電子商務進一步發展。我們的電子商務業務深度融入我們的生態系統，產生強大的協同效應，從而成為獨特的競爭優勢。電子商務不僅透過銷售商品獲得毛利，還透過向客戶提供分期付款服務獲得利息收入。約有97%的電商客戶選擇透過我們的分期付款服務進行消費融資。

In the second quarter, e-commerce GMV witnessed a substantial quarter-over-quarter growth of 80% and the year-over-year growth of 117%. E-commerce gross profit recorded RMB97 million in the second quarter, up 71% quarter over quarter. Going forward, we continue to expect a strong sequential GMV growth for the e-commerce business.

第二季度，電商交易規模較上季成長80%，年增117%，成長率顯著。第二季電商毛利9,700萬元，較上季成長71%。展望未來，我們繼續預期電子商務業務的 GMV 將實現強勁的連續成長。

Next, I'll go through some specific financial statement items. For our income statement on the revenue side, total revenue reached RMB3.6 billion, representing a growth of 16% quarter to quarter. Credit facilitation service income amounted to RMB2.3 billion, up 4%, driven by an increase of low volume and the capital heavy model, higher APRs, and partially offset by the higher funding costs.

接下來，我來介紹一些具體的財務報表項目。從我們的營收損益表來看，總收入達到人民幣36億元，較上季成長16%。信貸促成服務收入達 23 億元，成長 4%，成長主要由於低額度及重資本模式的成長、年利率上升，但被融資成本上升部分抵銷。

Tech empowerment service income increased by 33% or RMB205 million to RMB830 million, mainly thanks to the release of provisions of revenue and ICP model, reflecting better than expected asset quality performance and the increased income from our referral services. E-commerce platform service income increased by 69% to RMB487 million driven by increase to GMV.

科技賦能服務收入成長33%或人民幣2.05億元至人民幣8.30億元，主要由於撥備收入及ICP模型的釋放，反映資產品質表現優於預期以及我們推薦服務收入的增加。受GMV成長帶動，電商平台服務收入成長69%至4.87億元。

On the cost and expense side, total operating expenses, which include processing and servicing costs, sales and marketing, research and development expenses, general administrative expenses increased by 10% to RMB1.4 billion, mainly driven by the increase of sales marketing expenses and the processing and servicing costs.

成本費用方面，總營業費用（包括加工和服務成本、銷售和行銷、研發費用、一般管理費用）增加10%至人民幣14億元，主要由於銷售行銷費用以及加工和服務成本的增加。

For balance sheet items as of June 30, our cash position, which includes cash, cash equivalent, and restricted cash, was approximately RMB4 billion. Shareholders equity remained solid at about RMB11.6 billion. Looking ahead, despite ongoing market uncertainties and evolving operating environment, the management maintains its four-year guidance of achieving a significant year to year growth in that income.

截至 6 月 30 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 40 億元。股東權益維持穩健，約116億元人民幣。展望未來，儘管市場不確定性持續存在且經營環境不斷變化，但管理層仍堅持其四年指導方針，即實現收入逐年大幅增長。

Furthermore, we remain committed to enhancing shareholders value as demonstrated by our recent $50 million share repurchase program and $10 million CEO share purchase announced in July. The Board has approved the cash dividend of $0.194 per ADS for the first half of 2025.

此外，我們仍然致力於提高股東價值，正如我們最近 5000 萬美元的股票回購計劃和 7 月宣布的 1000 萬美元 CEO 股票購買計劃所證明的那樣。董事會已批准 2025 年上半年每股 ADS 發放 0.194 美元的現金股利。

The share repurchase program, together with our dividend policy boosted our total shareholder return to above industry average level. Going forward, we will continue to evaluate opportunities to ensure we deliver optimal value to our shareholders.

股票回購計劃和我們的股利政策使我們的股東總回報率高於行業平均水平。展望未來，我們將繼續評估機會，以確保為股東提供最佳價值。

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

我們今天的演講準備到此結束。接線員，我們現在可以回答問題了。

(Operator Instructions) Emma Xu, BofA Securities

（操作員指示） Emma Xu，美國銀行證券

(spoken in foreign language) So congratulations on the good result amid a challenge environment. So I have two questions. The first one is about the new regulations. So as the new regulation facility has been rolled out for a few months, what impact has the company observed? And what measures will you take to address the impacts?

（外語）恭喜您在充滿挑戰的環境中取得好成績。我有兩個問題。第一個是關於新規定。那麼，新的監管措施實施幾個月以來，公司觀察到了什麼影響？您將採取什麼措施來應對這些影響？

The second question is about the ecosystem. So the ecosystem has developed rapidly in the second quarter. So could you share more on the development strategy and outlook of your ecosystem business?

第二個問題是關於生態系。因此生態系在第二季發展迅速。那麼，您能否分享一下你們生態系業務的發展策略和前景？

(interpreted) So this is a translation for Jay's answer. Thanks for your question. Yes, the new regulation on loan facilitation has been rolled up for some time but not yet had that. We think the industry has been impacted by the industry.

（解釋）這是 Jay 的回答的翻譯。謝謝你的提問。是的，有關貸款便利化的新規定已經實施了一段時間，但尚未實現。我們認為該行業已經受到了該行業的影響。

In short term, we did observe funding supply, which led to an increase in the funding cost of the second quarter. And also, some risk matching experienced minor fluctuations, for example, collection rate did decrease a little bit. To address the impact, actually we have take proactive action as early as in April. More specifically, we tighten our risk management strategies to mitigate the potential impact of sector rate frustration.

短期來看，我們確實觀察到了資金供給的增加，導致第二季的資金成本上升。另外，一些風險匹配也出現了小幅波動，例如收款率確實有所下降。為了應對影響，實際上我們早在四月就已採取了積極行動。更具體地說，我們加強風險管理策略，以減輕產業利率受挫的潛在影響。

So I can mention collection rate differs a little bit, but our day one delinquently also, the impact of that each other. Furthermore, leveraging our unique business advantages, we have the flexibility to our business model to navigate the challenges.

因此我可以說收款率略有不同，但我們的每一天也會拖欠，互相造成影響。此外，利用我們獨特的業務優勢，我們可以靈活地調整業務模式來應對挑戰。

In the long run, the implementation of the new regulation may bring some changes to the industry, but it will foster a more standardized, sustainable, and healthier industry environment which benefit compliance platforms like Lexin. In the past, we also experienced different several rounds of regulation, and I think we have the experience and flexibility to adjust our business model, to navigate the challenges.

從長遠來看，新規的實施可能會為產業帶來一些變化，但將促進產業形成更規範、永續、健康的環境，對樂信等合規平台有利。過去，我們也經歷了幾輪不同的監管，我認為我們有經驗和靈活性來調整我們的商業模式，以應對挑戰。

For Lexin, we currently support regulators' efforts to supervise and guide the sector and will continue to adhere to our customer-centric philosophy, enhance our ecosystem synergy, and ensure continuing to work. As such, we maintain our full-year guidance of achieving significant year-over-year profit growth.

對於樂信來說，我們目前支持監管機構對產業的監管和指導，並將繼續堅持以客戶為中心的理念，增強生態系統協同，確保持續工作。因此，我們維持全年利潤同比大幅增長的預期。

And regarding your second question about our development of the business ecosystem, actually, our business ecosystem achieved various progresses. For our endowment commerce business, I'd like to suggest that Lexin is the first installment e-commerce platform in China and has been developing this business for over a decade. It has been a crucial part of our ecosystem.

關於您的第二個問題，關於我們商業生態系統的發展，實際上，我們的商業生態系統取得了多方面的進展。對於我們的分期付款業務，我想說，樂信是中國第一個分期付款電子商務平台，並且已經發展這項業務十多年了。它一直是我們生態系統的重要組成部分。

And as part of our transformation towards a business model driven by data analytics and risk management in the last year, we have built an independent risk management system for the e-commerce business. So you can see in the past couple quarters, our e-commerce long origination volume has sustained significant growth, particularly in the June 18 shopping festival, our GMV increased by over 100%.

作為我們去年向數據分析和風險管理驅動的商業模式轉型的一部分，我們為電子商務業務建立了獨立的風險管理系統。所以你可以看到在過去的幾個季度裡，我們的電商長單量持續大幅成長，特別是在618購物節，我們的GMV成長了100%以上。

And for our [business], we, will continue to expand our business into lower tier cities and just to emphasize that this channel, we target at serving the small and microbusiness owners and the differentiate advantages of [learning] is that we have our own proprietary self-developed, direct sales team. And in the second quarter, we cooperated with several newcomers, helping them to connect with large platforms and banks and improve the digital risk management capability.

對於我們的業務，我們將繼續將業務擴展到低線城市，需要強調的是，這個管道的目標是服務小微型企業主，而學習的差異化優勢在於我們擁有自己專有的自主研發的直銷團隊。而第二季度，我們又與幾家新進局者合作，幫助他們對接大平台、銀行，提升數位化風控能力。

For our tech empowerment business, leveraging our standardized system and risk management expertise will continue to help them to connect to the large platforms and to enhance the customer acquisition capability.

對於我們的科技賦能業務，運用我們的標準化系統和風險管理專業知識將持續幫助他們對接大平台，提升獲客能力。

For our overseas business, we have delivered quarter over quarter sequential growth in those business volume and revenue for multiple consecutive quarters, and that that will continue to enhance team development in order to sustain healthy and sustainable growth.

海外業務方面，我們已連續多個季度實現業務量和收入環比增長，並將繼續加強團隊建設，保持健康、可持續的成長。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(spoken in foreign language) So my first question is on asset quality. So in lights of the current uncertain external environment driven by the regulatory change. How does the risk management system can help you better respond to potential risk fluctuations?

（以外語說）所以我的第一個問題是關於資產品質的。因此，鑑於當前監管變化推動的不確定的外部環境。風險管理系統如何幫助您更好地應對潛在的風險波動？

And second question is regarding your ongoing [techway] improvement. Could you also give us more color on the drivers on the [online negative] improvement. Thank you.

第二個問題是關於您正在進行的[techway]改進。您能否向我們詳細介紹一下推動[線上負面]改進的因素？謝謝。

(interpreted) This is the translation for Arvin's answer. In response to uncertainty of the industry rate performance, arising from the new loan facilitation organization, we actually take proactive measures as early as in April. So we tighten the reapproval standard as early as in April for new customers in order to maintain downward chance for new rate. And for vintage or existing loan, we improve the early reminder for the loan repayment in order to reduce the data delinquency.

（解釋）這是 Arvin 的回答的翻譯。為了因應新的貸款便利化機構對產業利率表現帶來的不確定性，我們實際上早在 4 月就採取了積極措施。因此，我們早在 4 月就收緊了新客戶的重新批准標準，以保持新利率下降的機會。對於舊貸款或現有貸款，我們改善了貸款償還的早期提醒，以減少數據拖欠。

Also, we implemented target measures for customers vulnerable to industry rate fluctuation. For customers identified as high-rate sensitive by our models, we've taken measures such as reduction and suspension of their credit lines to mitigate the potential impact of [fluctuating risk]. This has helped maintain steadily improving rate performance.

此外，我們也針對易受產業利率波動影響的客戶實施了針對性措施。對於我們模型識別為高利率敏感度的客戶，我們已採取降低和暫停其信用額度等措施，以減輕潛在影響【波動風險】這有助於維持利率表現的穩定提高。

Second, we continue to drive high-quality asset growth which will lay a solid foundation for our future high-quality development. We leverage advanced AI models to enhance our risk management system. We also refined customized pricing strategy which has increased the over competitive for prime customers while improving the overall user experience, further supporting our high-quality asset work. So overall, we not only reduce the high quality, we not only reduce the formation of high-rate assets but also try to drive the growth of high-quality assets.

二是持續推動資產高品質成長，為未來高品質發展奠定堅實基礎。我們利用先進的人工智慧模型來增強我們的風險管理系統。我們也完善了客製化定價策略，增加了優質客戶的競爭力，同時改善了整體用戶體驗，進一步支持了我們的高品質資產工作。所以整體來說，我們不僅要降低高品質，不僅要減少高利率資產的形成，還要努力推動優質資產的成長。

Third, we also strengthen positioning to enhance our risk buffer, enhancing our capability to cope with future uncertainties. In the second quarter, we increased proficient by 13.6% to [1.04]. The reinforced provision along with improved performance, for our proficient coverage ratio derives to 270%.

第三，我們也加強了定位，增強了風險緩衝，提升了應對未來不確定性的能力。第二季度，我們的熟練程度提高了 13.6%，達到[1.04]。隨著準備金的加強和績效的提高，我們的熟練覆蓋率已達到 270%。

To summarize, we will continue to prioritize high quality asset growth while also enhancing efficient and maintaining a state of steadily improving performance. In the meantime, while we continue to strengthen rate identification and management, we will also ramp up the application of intelligent risk management tools to increase efficiency.

總而言之，我們將繼續堅持資產高品質成長，提高效率，並維持業績穩定提升的狀態。同時，我們在持續加強利率識別和管理的同時，也將加大智慧風險管理工具的應用，提高效率。

Okay. I will take the net profit takeaway question. Almost a year ago, we told the market that thanks to the company's turnaround initiatives, we will be able to gradually improve the business profitability and that this will be reflected in our net profit take rate. And I'm happy to tell you that in the last four quarters, we have successfully delivered the promise of improving 20 basis points to 30 basis points each quarter to reach 1.92% in Q2. We're now on track for the goal by the end of the year.

好的。我將回答淨利外送問題。大約一年前，我們告訴市場，由於公司的扭虧為盈舉措，我們將能夠逐步提高業務獲利能力，這將反映在我們的淨利潤率上。我很高興地告訴大家，在過去的四個季度裡，我們成功兌現了每季提高20個基點到30個基點的承諾，第二季達到了1.92%。目前，我們正朝著年底實現目標的方向前進。

As for Q2, really the credit goes to the strong revenue growth from both the credit and the e-commerce business, as I mentioned in my prepared script. Specifically, the net revenue of our credit business increased by 10% quarter over quarter or about $183 million to [$2 million]. As a reminder, as I mentioned earlier, if we add up the credit facilitation service income, the tech empowerment service income, net of credit costs, including the provisions and the fair value changes and the funding cost, we come up with a net revenue for the credit business.

至於第二季度，正如我在準備好的腳本中提到的那樣，這實際上要歸功於信貸和電子商務業務的強勁收入成長。具體而言，我們的信貸業務淨收入環比成長 10%，即約 1.83 億美元，達到[200萬美元]。提醒一下，正如我之前提到的，如果我們將信貸便利服務收入、技術賦能服務收入、扣除信貸成本（包括撥備、公平價值變動和融資成本）加起來，我們就能得出信貸業務的淨收入。

So if you further break down to the next level, the net revenue of the capital heavy model remains stable, driven by the increase of loan volume under the capital heavy model, higher APRs, and partially offset by higher credit costs and funding costs. By the way, as I mentioned earlier, the increase of credit costs is mainly driven by our prudent provisioning policy.

所以如果進一步細分，重資本模式的淨收入保持穩定，受重資本模式下貸款量的增加、APR的提高所推動，部分被信貸成本和融資成本的提高所抵消。順便說一句，正如我之前提到的，信貸成本的增加主要是由我們審慎的撥備政策所推動的。

The net revenue of capital light model on the other hand, increased by 33% quarter over quarter, or about RMB205 million to [RMB830 million], mainly thanks to the income from our referral services and from the relief of provisions of revenue under the ICP model. This really reflects the better-than-expected asset quality performance within the ICP.

而輕資本模式淨收入則較上季成長33%，約增加2.05億元人民幣至8.30億元人民幣，主要得益於轉介服務收入以及ICP模式下收入撥備的減免。這確實體現了ICP內部資產品質表現優於預期。

So in addition to the credit business, the net revenue of our e-commerce business defined as the e-commerce revenue net of the cost of inventory increased by 71% or RMB40 million to RMB97 million also contributing to the increase of our profitability.

因此，除了信貸業務外，我們的電子商務業務的淨收入（即扣除庫存成本的電子商務收入）增長了71％或人民幣4000萬元至人民幣9700萬元，也有助於提高我們的盈利能力。

So with the strong increase of revenue offsetting by some increases from the operation costs and expenses, we get the net profit take rate of 1.92%, a 34-basis point higher than the previous quarter. This fully demonstrates the uniqueness and the strong growth potential of our diversified business ecosystem.

因此，雖然收入的強勁成長被營運成本和費用的一些增加所抵消，但我們得到的淨利潤率為 1.92%，比上一季高出 34 個基點。這充分體現了我們多元化業務生態系統的獨特性和強勁的成長潛力。

Looking forward for Q3, we continue to expect relatively stable volume, improved risks, strong quarter over quarter net income growth. Therefore, we continue to expect the net income take rate will improve in a similar pace as before.

展望第三季度，我們繼續預期交易量將相對穩定，風險將有所改善，淨收入將較上季強勁成長。因此，我們繼續預期淨收入提取率將以與以前類似的速度提高。

Alan Chen, Citibank.

花旗銀行的 Alan Chen。

(spoken in foreign language) This is Alan from Citibank. I just have a quick question on shareholder return. I noticed that in July we have announced a 15-minute share repurchase program. I'm just wondering, management, if you could give us a little bit more color on the thought process and rationale behind the buyback program. And on top of that, if management has any plan to further boost shareholder return in the future. Thanks.

（外語）我是花旗銀行的艾倫。我只是想快速詢問一下股東回報。我注意到我們在7月宣布了一項15分鐘股票回購計畫。我只是想知道，管理層，您是否可以向我們詳細介紹回購計劃背後的思考過程和理由。除此之外，管理階層是否有任何計劃在未來進一步提高股東回報。謝謝。

This is the translation of Jay's answer. On July 21, we announced a $50 million share repurchase program to be executed over the next 12 months. In addition to that, I plan to purchase up to USD10 million worth of shares using my personal funds.

這是 Jay 的回答的翻譯。7 月 21 日，我們宣布了一項將在未來 12 個月內執行的 5,000 萬美元股票回購計畫。除此之外，我還計劃使用個人資金購買價值高達 1,000 萬美元的股票。

If the company repurchase program is fully active alongside the few increases in the cash division payout ratio, our total shareholder return will rise above the industry average. With an equal P/E ratio of below 4 times, the company has compelling investment values. This repurchase program underscores the management confidence in the company's outlook and reinforces our commitment to delivering value to our shareholders.

如果公司回購計畫全面實施，同時現金部門派息率略有提高，我們的股東總回報將高於產業平均。該公司目前的本益比低於4倍，具有強大的投資價值。此次回購計畫凸顯了管理階層對公司前景的信心，並加強了我們為股東創造價值的承諾。

In terms of repurchase execution, we will implement the program after the second quarter results release and will strictly follow repurchase rules while taking into account market conditions. We will make a regular update on progress in our quarterly earnings release. As I said, the company values shareholder returns and will continue to explore various means to deliver value to our shareholders.

回購執行方面，我們將在第二季業績公佈後實施計劃，並嚴格按照回購規則執行，同時考慮市場狀況。我們將在季度收益報告中定期更新進度。正如我所說，公司重視股東回報，並將繼續探索各種方式為股東創造價值。

Thank you. That does conclude our question and discussion. I'll now hand back for any closing remarks.

謝謝。我們的問題和討論確實到此結束。現在我將交還大家，請大家作結語。

Thank you. 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。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。