Lexinfintech Holdings Ltd. Sponsored ADR Class A (LX.US) released its Q1 financial report: the proportion of ecological business accounted for close to 50%, demonstrating diversified operational resilience.

On May 25th Beijing Time, Lexinfintech Holdings Ltd. Sponsored ADR Class A (LX.US), China's leading new consumer digital technology services provider, released its unaudited financial performance for the first quarter of 2026. Faced with macroeconomic environment and industry challenges, the company's unique ecosystem business, which has been laid out over many years, has shown strong operational resilience. The transaction volume of installment retail, offline inclusive finance, TO B smart technology, etc. businesses accounts for nearly 50%, with the growth rate of ecosystem businesses exceeding that of online assistance loan businesses, becoming a new growth curve for the company, and the preliminary completion of the transition of old and new business dynamics. In the first quarter, the company's revenue was 3.309 billion yuan; Non-GAAP EBIT was 301 million yuan; Management's on-loan balance was 96.541 billion yuan; transaction volume was 57.898 billion yuan, an increase of 15.9% month-on-month and 12.2% year-on-year; active users were 5.167 million, an increase of 14.1% month-on-month and 8.6% year-on-year; and new active users were 1.444 million, an increase of 63.3% month-on-month and 101.6% year-on-year. In the first quarter, the company's asset quality continued to improve, with new and existing asset risks improving simultaneously, and the full asset delinquency rate decreasing by about 7% month-on-month, while the 30-day delinquency rate continued to rise month-on-month. CEO of Lexinfintech Holdings Ltd. Sponsored ADR Class A, Xiao Wenjie, said, "In the first quarter, despite facing challenges from the macroeconomic environment, industry adjustments, and the impact of the Spring Festival holiday, our years of unique and diversified ecological business layout enabled us to achieve stable performance in this quarter. The preliminary completion of the transition of old and new business dynamics is guiding us towards long-term stable and diversified development." In the coming quarters, we will continue to deepen our ecosystem businesses such as installment retail, offline inclusive finance, TO B smart technology. We believe that the unique advantages of our ecosystem businesses will continuously enhance the company's operational resilience and fully cope with future uncertainties. The proportion of transaction volume of ecosystem businesses close to 50% drives financial liquidity to a wider range of fields The financial report shows that in the first quarter, the company's diversified ecosystem businesses such as installment retail, offline inclusive finance, TO B smart technology, etc. developed steadily, efficiently connecting financial services with essential scenarios, boosting domestic demand, activating market consumption potential, helping solve the financing difficulties of small and micro enterprises, and irrigating the grassroots real economy. During the quarter, the installment shopping mall under Lexinfintech Holdings Ltd. Sponsored ADR Class A focused on social consumption trends such as the warming of the market, the surge in travel demand driven by micro vacations, and the growth of differentiated consumption demand, and improved the supply chain across all categories such as food, clothing, daily necessities, travel, entertainment, and pet products. The platform enhanced the overall consumer supply capacity from multiple dimensions such as expanding commodity categories, upgrading logistics services, and optimizing shopping experiences, and fully met the multi-level needs of users from basic living to quality consumption. During the quarter, the installment shopping mall leveraged its cooperation advantage with leading brands and launched the "Brand Flash Sales" channel, which has now signed contracts with more than 20 domestic and foreign fashion sports brands. Since the launch of the channel, the overall sales of participating brands have increased by 43%, fully meeting the public's demand for quality consumption. For consumer scenes such as essential needs, festive gift giving, the mall continued to launch large promotional activities, driving consumer growth in daily life. At the same time, in the 3C digital field, by offering discount and interest-free schemes, the platform effectively stimulated user consumption potential. In the first quarter, driven by large-scale promotions, discounts, interest-free activities involving hundreds of top brands, the platform's transaction volume increased by 104.1% year-on-year. In the second quarter, as the market welcomes the mid-year 618 shopping festival, the installment shopping mall recently officially kicked off the "618 Hi Shopping Season" event, upgrading gameplay around "simple discounts, real subsidies, low thresholds", and supporting consumption vitality through methods such as shopping gold rebates, new customer subsidies, and lucky draws. In low-tier cities and county-level markets, there is a rigid demand for capital from a large number of small and micro merchants and individual operators, but due to high thresholds in traditional financial services, they are unable to enjoy convenient services. The 2026 government work report proposes to increase support for finance to counties, small and micro entities, and agriculture-related industries, and promote the downward movement of financial resources and services. In the first quarter, to meet the operating needs of small and micro businesses in counties and individual operators, Installment Lepu planned to step up its offline investment, with local teams delving into local industrial belts, professional markets, roadside shops, and farmers and breeders in towns, benefiting areas and small and micro operating entities that traditional financial services find challenging to reach. Tailoring differentiated risk control models and approval strategies for customer groups in industries such as agriculture and animal husbandry, Installment Lepu constructed a differentiated risk control model and approval strategies to effectively increase service coverage and matching efficiency under the premise of risk control. During the quarter, nearly 140,000 users received 49.3 billion yuan in inclusive funding, helping financial liquidity continue to flow accurately and effectively to the county-level "last mile". In the first quarter, Lexinfintech Holdings Ltd. Sponsored ADR Class A's TO B smart technology business became a key Hub Group, Inc. Class A connecting the "flow side" and the "funding side". Leveraging years of accumulated experience in credit operations, the company uses the "Yunxi Technology PRO" solution to systematize and output the core capabilities of smart technology, building a collaborative bridge between traffic platforms and financial institutions to facilitate the efficient connection of traffic distribution and financial service resources. In terms of overseas business, during the quarter, the company developed steadily in its core markets of Mexico and Indonesia, with scale, profitability, and asset quality simultaneously optimized. Increased investment in AI technology, accelerating the output of digital technology capabilities In the first quarter, Lexinfintech Holdings Ltd. Sponsored ADR Class A accelerated its pace of technology research and development investment, focusing on expanding its layout in the field of AI. The AI-centered new productivity engine has been formed and applied on a large scale in multiple business scenarios, driving operational and service system coordination and efficiency improvement. At the same time, the company's digital technology capabilities accumulated over the years are accelerating to unlock value externally, empowering the full-chain digitization upgrade of financial services with AI as the core. During the quarter, in the field of intelligent risk control tools, the company iterated and upgraded its algorithm and model capabilities, launching new intelligent interpretation and interactive credit enhancement features in credit reports, enhancing user identification accuracy to better support personalized pricing and quota services. In customer service systems, the Siasun Robot & Automation customer service introduced large-scale multi-round intent understanding capabilities, demonstrating enhanced stability in complex dialogue scenarios, with a more than 5% increase in user intent recognition accuracy and an overall improvement in user communication experience. On the research and development side, the AI Coding tool was accelerated in popularity, significantly increasing the production speed of business and test codes. Additionally, the company advanced the construction of AI infrastructure systems, promoting AI capabilities' modularized sedimentation and shared reuse through the establishment of the Skill Hub, providing underlying support for large-scale applications. Leveraging technological capabilities in risk control, customer acquisition, and operations, the company assists partners in improving their digital operational capabilities and user outreach efficiency through systematic and modular output, releasing the social value of digital technology services. AI technology is evolving from a single-point efficiency tool to the core driving force for upgrading the company's operational and research and development systems, serving as a key element in advancing the transition of old and new dynamics, creating long-term operational resilience, and building new productivity. Besides providing technical dynamism for the development of its own ecosystem businesses, it injects core competitiveness into external digital technology services. User service efficiency significantly improved, offering a generous reward of up to one million to combat financial black markets Lexinfintech Holdings Ltd. Sponsored ADR Class A has always adhered to the service concept of "putting users at the center", with protection of consumer rights as the core, building a competitive advantage that is warm and trustworthy. In the first quarter, the company achieved a noticeable improvement in user service efficiency by optimizing intelligent routing allocation and queuing strategies, and introducing peak-time warning mechanisms, with multiple core service indicators maintaining positive trends. On the user care front, by enhancing user behavior analysis through model capability, and refining user segmentation management, the company implemented more differentiated care measures for different groups, overall enhancing user experience and satisfaction. Currently, financial black markets have become a serious problem that harms consumer rights and disrupts industry order. Unlawful intermediaries lure consumers to pay high fees under the guise of "debt relief" or "credit repair", resulting in significant financial losses and credit damage to many consumers. At the same time, black market practitioners on the internet spread false information and maliciously defame regular financial services, leading indebted groups into traps, seriously polluting the online public opinion environment and financial ecosystem. To address this chaos, the Ministry of Public Security, the China Banking and Insurance Regulatory Commission, the Cyberspace Administration of China, and other departments have jointly launched multiple crackdowns on financial black markets, with special efforts to combat financial gray markets becoming a high-level consensus at the national level. Over the past two years, Installment Le has deeply cracked down on financial "black markets" in the field through joint efforts with the police, collaborating with police in Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei, and other regions to investigate and solve nearly 100 cases of various financial black market crimes, dismantling 26 professional criminal groups. Recently, Installment Le's Security Center issued a public announcement, openly soliciting clues related to financial black market violations on the Installment Le platform. If the public has clues related to financial black market activities on the Installment Le platform, they can call the Installment Le customer service hotline at 95730, the post-loan report hotline at 4001011288, or send an email to hhc_jubao@lexin.com to report. The company will provide rewards up to 1 million yuan per case to informants based on the effectiveness of the clues, the completeness of the evidence, and the contribution to cracking down on the case.