Lexinfintech Holdings Ltd. Sponsored ADR Class A (LX.US) released its Q2 financial report, with revenue increasing by 15.6% to 3.59 billion, and profits continuing to rise compared to the previous five quarters. The significant growth in scene transactions has boosted consumer consumption.

On August 7th, Beijing time, China's leading new consumer digital technology service provider Lexinfintech Holdings Ltd. Sponsored ADR Class A (LX.US) released its unaudited financial performance for the second quarter of 2025: revenue of 35.9 billion yuan, up 15.6% quarter-on-quarter; profit (Non-GAAP EBIT) of 6.7 billion yuan, up 15.2% quarter-on-quarter, and up 116.4% year-on-year. In the second quarter, the company's profit reached its highest level in 14 quarters, with five consecutive quarters of quarter-on-quarter growth, and multiple core business indicators showing continued improvement. In terms of scale, the company's transaction volume in the second quarter was 528.6 billion yuan; managed on-balance loans amounted to 1057.8 billion yuan; and the user base reached 236 million. In terms of asset quality, risk indicators continued to improve for the fourth consecutive quarter: Q2 new asset FPD7 decreased by about 5% quarter-on-quarter, the full asset entry rate into collection decreased by about 2% quarter-on-quarter, and the full asset 90+ delinquency rate decreased by about 6% quarter-on-quarter, showing improvement in asset quality each quarter. Financially, the company's profit margin in the second quarter (annualized net profit/on-balance loans) increased by 34 basis points compared to the first quarter, continuing to grow by more than 20 basis points for multiple quarters in a row. In July, Lexinfintech Holdings Ltd. Sponsored ADR Class A initiated a $60 million buyback plan. Starting in the second half of the year, the dividend ratio increased from 25% of net profit to 30%. The combination of these actions is expected to further increase shareholder returns, demonstrating the company's focus on shareholder returns and long-term development confidence. Lexinfintech Holdings Ltd. Sponsored ADR Class A CEO Xia Wenjie said, "The company adheres to a risk-driven, data-driven strategy, achieving a strategic transformation of refined operation and welcoming another quarter of high-quality growth. In the face of uncertain macroeconomic environment, the company continues to adhere to a prudent operating strategy, steadily growing its ecological businesses, continuously improving asset quality, and seeing profitability continue to rise, ensuring a more stable development. Looking ahead, in the third quarter, we will continue to operate prudently, actively leverage the synergies of ecological operations, enhance the company's operational resilience, maintain a continued decrease in risk, and grow profitability. Therefore, we maintain the performance guidance of a significant year-on-year increase in net profit for the full year." The value of ecological business becomes increasingly apparent, releasing new energy from unique advantages. Since the beginning of the year, policies such as the "Special Action Plan to Boost Consumption" and the "Guiding Opinions on Financial Support to Boost and Expand Consumption" have been successively introduced, deploying key measures such as "expanding financial supply in the consumption sector," "increasing the issuance of personal consumer loans," and "strengthening the integration of financial services with consumption scenarios". Lexinfintech Holdings Ltd. Sponsored ADR Class A actively responds to the policy guidance to boost consumption and benefit the people, by enriching its product matrix, optimizing service experience to meet the related policy requirements, and aims to help the public transform consumer intentions into actions in a more convenient and favorable way, continuously contributing to the revitalization of consumption. In the second quarter, Fenqile Mall comprehensively upgraded its supply chain, introduced many well-known brand merchants, and enhanced operating models such as "quality selection" and "factory stores" to meet diverse user needs. The combination of high-quality consumption scenarios and major promotional activities drove Fenqile Mall's Gross Merchandise Volume (GMV) to continually rise, especially during the "6.18" period when GMV increased by 139% year-on-year, effectively boosting consumption. Micro and small enterprises are related to economic and social development as well as the livelihood of the people. Inclusive finance plays an important role in solving the financing difficulties of micro and small enterprises and enhancing their resilience. In May of this year, the China Banking and Insurance Regulatory Commission issued a document requiring "deepening financing coordination mechanisms" and "accurate matching of financing needs" for inclusive finance. During the quarter, Fenqile Inclusive, a subsidiary of Lexinfintech Holdings Ltd. Sponsored ADR Class A, utilized big data and AI models to upgrade products and services, continuously improving user experience, increasing credit matching efficiency, effectively avoiding the problem of wrongful rejection caused by seasonal and cyclical operational fluctuations, and supporting the development of micro, small, and very small businesses with low-interest, high-capacity financial products. Fenqile Inclusive's "Believe in Micro Dreams" program has been implemented in over 330 counties and cities in more than 30 provinces, autonomous regions, and municipalities, with a cumulative loan amount of 46.9 billion yuan during the quarter. In terms of digital technology business, Lexinfintech Holdings Ltd. Sponsored ADR Class A has deep experience and an expert team in the field of quantitative risk control, possessing cross-institutional and cross-platform risk control capabilities, significantly enhancing customer acquisition efficiency and retention rates through localized deployment and services. User numbers in on-balance loans saw significant growth during the quarter, with a 171.3% increase in transaction volume. In terms of overseas business, Lexinfintech Holdings Ltd. Sponsored ADR Class A continuously optimizes customer acquisition channels and customer quality, strengthens risk operations, localization management, and integrated marketing models, achieving continuous optimization of asset structure and sustained growth in scale and revenue for multiple quarters. Lexinfintech Holdings Ltd. Sponsored ADR Class A continues to deepen innovation in ecological business, achieving steady growth in various businesses and further enhancing the complementary synergies, looping reinforcement of a healthy ecological system, constructing unique competitive advantages while releasing significant social value. Upgrading risk control systems, implementing AI intelligent technology, dual-drive to solidify underlying capabilities. The financial report shows that in the second quarter, Lexinfintech Holdings Ltd. Sponsored ADR Class A invested 160 million yuan in research and development, a 10% year-on-year growth, maintaining its industry leading position. Long-term technological investment has solidified the company's underlying capabilities, and the dual-drive strategy of risk and data has enhanced the company's operational resilience against industry challenges.