Lexin rebounds sharply in Q2, returns to profitability
LexinFintech Holdings Ltd, China’s largest Gen Z-focused consumer platform, reported a strong recovery in its second-quarter financial results.
Total loan originations on the platform reached 41.1 billion yuan (US$5.9 billion) during the April-June period, an increase of 57.8 percent from the same period a year ago.
It expects third-quarter loan originations to be over 48 billion yuan and maintains total loan origination guidance for 2020 to be between 170 billion yuan and 180 billion yuan.
The Shenzhen-based firm returned to profitability with net income of 419 million yuan in the second quarter, a clear V-shaped recovery from the first three months of the year.
Lexin’s registered users reached 95.3 million as of the end of June, an increase of 90 percent year over year.
This also marked its fourth straight quarter with a user growth rate of more than 90 percent. Its user base further grew to 100 million on August 10.
Platform-based service income doubled from a year earlier to 419 million yuan in the quarter, the first time the company reported such results as it taps the risk-free consumer market on top of its credit-driven consumer finance business.