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LexinFintech Holdings Ltd. Reports Third Quarter 2019 Unaudited Financial Results

November 18, 2019 GMT

SHENZHEN, China, Nov. 18, 2019 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumer finance platform for educated young adults in China, today announced its unaudited financial results for the quarter ended September 30, 2019.

Third Quarter 2019 Operational Highlights:

-- Total outstanding principal balance of loans1 reached RMB51.5 billion as of September 30, 2019, representing an increase of 99.5% from RMB25.8 billion as of September 30, 2018. -- Total loan originations1 in the third quarter of 2019 reached RMB37.0 billion, representing an increase of 170% from RMB13.7 billion in the third quarter of 2018. -- The GMV2 of our e-commerce channel amounted to RMB2.1 billion, representing an increase of 49.4% from RMB1.4 billion in the third quarter of 2018. -- The weighted average tenor of loans originated on our platform in the third quarter of 2019 was approximately 13.3 months. The weighted average APR3 was 26.6% for the third quarter of 2019. -- Total number of registered users reached 62.6 million as of September 30, 2019, representing an increase of 92.2% from 32.6 million as of September 30, 2018; and users with credit line reached 16.7 million as of September 30, 2019, up by 74.7% from 9.6 million as of September 30, 2018. -- Number of active users4 who used our loan products in the third quarter of 2019 reached 6.1 million, compared to 2.8 million in the third quarter of 2018. Number of new active users who used our loan products in the third quarter of 2019 was 2.5 million, representing an increase of 265% from 696 thousand in the third quarter of 2018. -- 90 day+ delinquency ratio5 was 1.40% as of September 30, 2019.

1 Outstanding principal balance and originations of loans represent the outstanding principal balance and originations of both on- and off-balance sheet loans.

2 GMV refers to the total value of transactions completed for products purchased on the e-commerce channel, net of returns.

3 APR is the annualized percentage rate of all-in interest costs and fees to the borrower over the net proceeds received by the borrower. Weighted average APR is weighted by loan origination amount for each loan originated in the period.

4Active users refer to, for a specified period, users who made at least one transaction during that period through our platform or through our third-party partners’ platforms using credit line granted by us.

5 90 day+ delinquency ratio refers to outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. On-balance sheet loans that were over 179 calendar days past due and charged off are not included in the delinquency rate calculation. Off-balance sheet loans that were over 179 calendar days past due are assumed charged off and not included in the delinquency rate calculation. The Company does not distinguish on the basis of the on- or off-balance sheet treatment in monitoring the credit risks of borrowers and the delinquency status of loans.

Third Quarter 2019 Financial Highlights:

-- Total operating revenue reached RMB3.2 billion. Financial services income reached RMB2.2 billion, representing an increase of 76.0% from the third quarter of 2018. Loan facilitation and servicing fees in financial services income reached RMB1.9 billion, representing an increase of 238% from the third quarter of 2018. -- Gross profit reached RMB1.7 billion, representing an increase of 122% from the third quarter of 2018. -- Net income was RMB724 million, representing an increase of 62.0% from the third quarter of 2018. -- Non-GAAP EBIT6 was RMB845 million, representing an increase of 53.9% from the third quarter of 2018. -- Adjusted net income6 was RMB714 million, representing an increase of 53.3% from the third quarter of 2018. Adjusted net income per ADS6 was RMB3.86 on a fully diluted basis.

6 Non-GAAP EBIT, adjusted net income, adjusted net income per ordinary share and per ADS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

“I am happy to report one of Lexin’s strongest quarters ever,” said Mr. Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “Thanks to our new consumption-focused strategy which helps unlock the consumption potential of hundreds of thousands of educated young Chinese consumers, we were able to capitalize on the unique opportunities in the market and register both strong customer and business growth in the quarter.”

“Lexin’s strong performance is a reflection of our continued efforts in building both online and offline consumption scenarios, increasing the financing options available to our customers, and providing new customer benefits and rewards, in order to establish a more comprehensive ecosystem for our customers,” continued Mr. Xiao. “In addition, we acquired a significant number of new customers this quarter, and we are confident that our growth for our shareholders will remain strong for the remainder of 2019 and beyond.”

“All metrics for our core businesses were very strong for the quarter.” said Mr. Craig Yan Zeng, Lexin’s chief financial officer. “In particular, our total loan originations reached RMB37.0 billion and our total loan balance reached RMB51.5 billion, representing an increase of 170% and 99.5% from the same period in 2018.”

“In spite of the challenges to many in the industry, our credit performance and credit quality continues to be strong,” said Mr. Ryan Huanian Liu, Lexin’s chief risk officer. “Our vintage charge-off rate7 is just over 2.0%, and our 90 day+ delinquency rate was 1.40% as of September 30, 2019. We expect to continue to perform strongly even as we continue to expand our customer base in the future.”

7 Vintage charge-off rate refers to, with respect to on- and off-balance sheet loans originated during a specified time period, which we refer to as a vintage, the total outstanding principal balance of the loans that are charged off during a specified period, divided by the total initial principal of the loans originated in such vintage.

Third Quarter 2019 Financial Results:

Operating revenue increased from RMB1.9 billion in the third quarter of 2018 to RMB3.2 billion in the third quarter of 2019. This increase in operating revenue was due to the increase in online direct sales revenue and financial services income for the quarter, driven by continuing increases in the number of active users on our platform.

Online direct sales increased by 73.3% from RMB571 million in the third quarter of 2018 to RMB989 million in the third quarter of 2019. This increase was primarily due to the significant increase in the number of orders driven by several sales promotional events during the quarter.

Financial services income increased by 76.0% from RMB1.2 billion in the third quarter of 2018 to RMB2.2 billion in the third quarter of 2019. This increase was primarily contributed by the increase in the loan facilitation and servicing fees, partially offset by the decrease in interest and financial services income and other revenues.

Loan facilitation and servicing fees increased by 238% from RMB558 million in the third quarter of 2018 to RMB1.9 billion in the third quarter of 2019. This increase was primarily due to significant increase in off-balance sheet loans originated as a result of the continuing growth of our business, with the expansion of partnerships with institutional funding partners.

Interest and financial services income and other revenues decreased by 60.2% from RMB664 million in the third quarter of 2018 to RMB264 million in the third quarter of 2019 due to a decrease of outstanding loan balance of on-balance sheet loans as a result of model adjustments made to Juzi Licai in the second quarter of 2018. Under the adjusted business model, we act as an intermediary between the borrowers and the individual investors. Based on the assessment of the accounting impact in respect of the adjusted business model, all new loans funded by individual investors on Juzi Licai under this new business model have been accounted for as off-balance sheet loans accordingly, commencing from late April 2018. Prior to that, loans funded by individual investors on Juzi Licai were accounted for as on-balance sheet loans. As a result, interest and financial services income and other revenues generated from the on-balance sheet loans funded by individual investors on Juzi Licai decreased significantly.

Cost of sales increased by 69.1% from RMB579 million in the third quarter of 2018 to RMB979 million in the third quarter of 2019, which is consistent with the increase of online direct sales revenue.

Funding cost decreased by 43.5% from RMB208 million in the third quarter of 2018 to RMB118 million in the third quarter of 2019, which is consistent with the decrease of the interest and financial services income and other revenues.

Processing and servicing cost increased by 115% from RMB82.5 million in the third quarter of 2018 to RMB177 million in the third quarter of 2019. This increase was primarily due to an increase in fees to third-party payment platforms, an increase in credit assessment cost and an increase in salaries and personnel related costs. Provision for credit losses of financing receivables decreased by 23.6% from RMB201 million in the third quarter of 2018 to RMB154 million in the third quarter of 2019, which is consistent with the decrease in the on-balance sheet loans originated on our platform. The Company is continuing to improve its credit assessment and risk management capabilities to enhance its collection efforts while maintaining credit risks at a reasonable level.

Provision for credit losses of contract assets and service fees receivable increased by 407% from RMB11.8 million in the third quarter of 2018 to RMB59.9 million in the third quarter of 2019. This increase was mainly due to the significant increase in off-balance sheet loans originated as a result of the continuing growth of our business.

Gross profit increased by 122% from RMB767 million in the third quarter of 2018 to RMB1.7 billion in the third quarter of 2019. The significant increase in the gross profit is primarily due to the significant increase of loan facilitation and servicing fees generated from the off-balance sheet loans.

Sales and marketing expenses increased by 278% from RMB134 million in the third quarter of 2018 to RMB508 million in the third quarter of 2019. This increase was primarily due to an increase in online promotional fees and advertising costs and an increase in salaries and personnel related costs.

Research and development expenses increased by 29.4% from RMB93.6 million in the third quarter of 2018 to RMB121 million in the third quarter of 2019. This increase was primarily due to an increase in salaries and personnel related costs.

General and administrative expenses increased by 51.2% from RMB73.5 million in the third quarter of 2018 to RMB111 million in the third quarter of 2019. This increase was primarily due to an increase in salaries and personnel related costs.

Loss on guarantee liabilities for the third quarter of 2019 was RMB45.8 million, which resulted from loss incurred during our performance of the guarantee for loans funded by individual investors on Juzi Licai that are covered by risk safeguard scheme.

Change in fair value of financial guarantee derivatives was a loss of RMB119 million in the third quarter of 2019. The loss was primarily due to the re-measurement of the expected default rates of the underlying outstanding off-balance sheet loans at the balance sheet date.

Income tax expense for the third quarter of 2019 was RMB124 million, compared to income tax expense of RMB74.7 million in the third quarter of 2018. The increase was primarily due to the significant increase of our taxable income from the same period of 2018.

Net income for the third quarter of 2019 was RMB724 million, representing an increase of 62.0% from RMB447 million in the third quarter of 2018.

Adjusted net income for the third quarter of 2019 was RMB714 million, representing an increase of 53.3% from RMB466 million in the third quarter of 2018.

Please click here to view our vintage curve:

https://mma.prnewswire.com/media/694073/vintage_1.jpg

Outlook

Based on Lexin’s preliminary assessment of the current market conditions, the Company now expects total loan originations for the fiscal year 2019 to be between RMB115 billion and RMB125 billion, representing an upward adjustment from the assessment of RMB115 billion previously disclosed in the Company’s earnings release for the quarter ended June 30, 2019. This is Lexin’s current and preliminary view, which is subject to changes and uncertainties.

Conference Call

The Company’s management will host an earnings conference call at 6:00 AM U.S. Eastern time on November 18, 2019 (7:00 PM Beijing/Hong Kong time on November 18, 2019).

Dial-in details for the earnings conference call are as follows:

United States: 1 845 675 0437 or 1 866 519 4004 International: 65 6713 5090 Hong Kong: 800 906 601 or 852 3018 6771 China: 400 6208 038 or 800 8190 121

Participants should dial-in at least 5 minutes before the scheduled start time and use the following passcode:

Passcode: 4888919

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lexin.com.

A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until November 25, 2019, by dialing the following telephone numbers:

United States: 1 855 452 5696 or 1 646 254 3697 International: 61 2 8199 0299 Replay Access Code: 4888919

About LexinFintech Holdings Ltd.

LexinFintech Holdings Ltd. is a leading online consumer finance platform for educated young adults in China. As one of China’s leading financial technology companies, Lexin integrates its e-commerce-driven installment finance platform, Fenqile, with advanced risk management technologies, the Company’s Dingsheng asset distribution technology platform, and the Company’s Juzi Licai online investment platform for individual investors, to create a comprehensive consumer finance ecosystem. The Company utilizes technologies including big data, cloud computing and artificial intelligence to enable the near-instantaneous matching of user funding requests with offers from the Company’s more than 30 funding partners, which include commercial banks, consumer finance companies, and other licensed financial institutions.

For more information, please visit http://ir.lexin.com

To follow us on Twitter, please go to: https://twitter.com/LexinFintech.

Use of Non-GAAP Financial Measures Statement

In evaluating our business, we consider and use adjusted net income, non-GAAP EBIT, adjusted net income per ordinary share and per ADS, four non-GAAP measures, as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income as net income excluding share-based compensation expenses, interest expense associated with convertible notes, investment-related impairment, and investment income and we define non-GAAP EBIT as net income excluding income tax expense, share-based compensation expenses, interest expense, net, investment-related impairment, and investment income.

We present these non-GAAP financial measures because it is used by our management to evaluate our operating performance and formulate business plans. Adjusted net income enables our management to assess our operating results without considering the impact of share-based compensation expenses, interest expense associated with convertible notes, investment-related impairment and investment income. Non-GAAP EBIT, on the other hand, enables our management to assess our operating results without considering the impact of income tax expense, share-based compensation expenses, interest expense, net, investment-related impairment, and investment income. We also believe that the use of these non-GAAP financial measures facilitate investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP.

These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using adjusted net income and non-GAAP EBIT is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses, interest expense associated with convertible notes, income tax expense, interest expense, net, investment-related impairment, and investment income have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income and non-GAAP EBIT. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

We compensate for these limitations by reconciling the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.1477 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2019. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Lexin’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the expectation of its collection efficiency and delinquency, business outlook and quotations from management in this announcement, contain forward-looking statements. Lexin may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Lexin’s goal and strategies; Lexin’s expansion plans; Lexin’s future business development, financial condition and results of operations; Lexin’s expectation regarding demand for, and market acceptance of, its credit and investment management products; Lexin’s expectations regarding keeping and strengthening its relationship with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Lexin’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Lexin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

LexinFintech Holdings Ltd.

IR inquiries:

Tony Hung

Tel: +86 (755) 3637-8888 ext. 6258

E-mail: IR@lexin.com

Media inquiries:

Limin Chen

Tel: +86 (755) 3637-8888 ext. 6993

E-mail: liminchen@lexin.com

SOURCE LexinFintech Holdings Ltd.

LexinFintech Holdings Ltd. Unaudited Condensed Consolidated Balance Sheets As of (In thousands, except for share and per share data) December 31, 2018 September30, 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,148,292 2,799,637 391,684 Restricted cash 1,266,536 1,472,517 206,013 Restricted time deposits 344,212 1,296,313 181,361 Short‑term financing receivables, net 5,140,634 3,409,145 476,957 Accrued interest receivable 82,943 50,773 7,103 Prepaid expenses and other current assets 923,827 1,844,770 258,093 Amounts due from related parties - 2,786 390 Risk safeguard fund receivable, net 395,025 570,665 79,839 Contract assets and service fees receivable, net 946,293 2,467,713 345,246 Inventories, net 57,196 138,714 19,407 ---------- ---------- --------- Total current assets 10,304,958 14,053,033 1,966,093 ---------- ---------- --------- Non‑current assets Restricted cash 82,306 162,584 22,746 Restricted time deposits - 29,687 4,153 Long‑term financing receivables, net 1,283,036 867,525 121,371 Risk safeguard fund receivable, net 116,208 148,643 20,796 Contract assets and service fees receivable, net 291,784 482,172 67,458 Property, equipment and software, net 82,420 89,838 12,569 Long‑term investments 186,073 515,042 72,057 Deferred tax assets 94,598 116,093 16,242 Other assets 29,192 330,211 46,198 ---------- ---------- --------- Total non‑current assets 2,165,617 2,741,795 383,590 ---------- ---------- --------- TOTAL ASSETS 12,470,575 16,794,828 2,349,683 LIABILITIES Current liabilities Accounts payable 135,848 206,737 28,924 Amounts due to related parties 14,569 26,866 3,759 Short‑term borrowings 438,010 1,181,700 165,326 Short‑term funding debts 4,646,041 3,376,854 472,439 Accrued interest payable 182,280 73,125 10,231 Risk safeguard fund payable 456,276 670,671 93,830 Accrued expenses and other current liabilities 2,145,689 2,705,187 378,469 ---------- ---------- --------- Total current liabilities 8,018,713 8,241,140 1,152,978 ---------- ---------- --------- Non‑current liabilities Long‑term funding debts 157,887 122,542 17,144 Deferred tax liabilities 187,183 300,369 42,023 Convertible notes - 2,072,631 289,972 Other long-term liabilities - 35,528 4,971 ---------- ---------- --------- Total non‑current liabilities 345,070 2,531,070 354,110 ---------- ---------- --------- TOTAL LIABILITIES 8,363,783 10,772,210 1,507,088 ---------- ---------- --------- SHAREHOLDERS’ EQUITY Class A Ordinary Shares 160 166 23 Class B Ordinary Shares 66 64 9 Additional paid‑in capital 2,328,716 2,454,550 343,404 Statutory reserves 200,262 200,262 28,018 Accumulated other comprehensive loss (14,308 ) (950 ) (133 ) Retained earnings 1,591,896 3,368,526 471,274 ---------- ---------- --------- TOTAL SHAREHOLDERS’ EQUITY 4,106,792 6,022,618 842,595 ---------- ---------- --------- TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 12,470,575 16,794,828 2,349,683 ---------- ---------- ---------

LexinFintech Holdings Ltd. Unaudited Condensed Consolidated Statements of Operations (In thousands, except for share and per share data) For the Three Months Ended September 30, For theNineMonths Ended September 30, 2018 2019 2018 2019 RMB RMB US$ RMB RMB US$ Operating revenue: Online direct sales 570,621 988,964 138,361 1,696,426 2,539,291 355,260 Services and others 57,277 47,443 6,638 134,823 146,332 20,473 Online direct sales and 627,898 1,036,407 144,999 1,831,249 2,685,623 375,733 services income ----------- ----------- ----------- ----------- ----------- ----------- Interest and financial services income and other 664,202 264,255 36,971 2,420,718 887,568 124,175 revenues Loan facilitation and 558,016 1,887,334 264,048 1,251,284 3,882,255 543,147 servicing fees Financial services income 1,222,218 2,151,589 301,019 3,672,002 4,769,823 667,322 ----------- ----------- ----------- ----------- ----------- ----------- Total operating revenue 1,850,116 3,187,996 446,018 5,503,251 7,455,446 1,043,055 ----------- ----------- ----------- ----------- ----------- ----------- Operating cost: Cost of sales (579,165 ) (979,179 ) (136,992 ) (1,725,625 ) (2,532,635 ) (354,329 ) Funding cost (208,095 ) (117,586 ) (16,451 ) (728,432 ) (380,522 ) (53,237 ) Processing and servicing (82,490 ) (177,004 ) (24,764 ) (219,585 ) (432,002 ) (60,439 ) cost Provision for credit losses of financing (201,114 ) (153,601 ) (21,490 ) (720,030 ) (489,321 ) (68,459 ) receivables Provision for credit losses of contract assets (11,810 ) (59,867 ) (8,376 ) (22,740 ) (104,531 ) (14,624 ) and service fees receivable Total operating cost (1,082,674 ) (1,487,237 ) (208,073 ) (3,416,412 ) (3,939,011 ) (551,088 ) ----------- ----------- ----------- ----------- ----------- ----------- Gross profit 767,442 1,700,759 237,945 2,086,839 3,516,435 491,967 ----------- ----------- ----------- ----------- ----------- ----------- Operating expenses: Sales and marketing (134,299 ) (507,928 ) (71,062 ) (380,148 ) (1,018,689 ) (142,520 ) expenses Research and development (93,599 ) (121,114 ) (16,944 ) (240,210 ) (314,653 ) (44,022 ) expenses General and administrative (73,479 ) (111,102 ) (15,544 ) (201,758 ) (292,394 ) (40,907 ) expenses Total operating expenses (301,377 ) (740,144 ) (103,550 ) (822,116 ) (1,625,736 ) (227,449 ) ----------- ----------- ----------- ----------- ----------- ----------- Gain/(loss) on guarantee 33,869 (45,833 ) (6,412 ) 13,741 80,517 11,265 liabilities, net Interest expense, net (8,287 ) (8,590 ) (1,202 ) (18,719 ) (9,739 ) (1,363 ) Investment related - - - (4,841 ) - - impairment Investment income 18,753 55,197 7,722 18,753 53,433 7,476 Change in fair value of financial guarantee 14,071 (119,202 ) (16,677 ) 27,245 45,521 6,369 derivatives, net Others, net (2,577 ) 6,095 853 (1,238 ) 32,077 4,488 Income before income tax 521,894 848,282 118,679 1,299,664 2,092,508 292,753 expense Income tax expense (74,667 ) (123,916 ) (17,336 ) (10,775 ) (315,878 ) (44,193 ) Net income 447,227 724,366 101,343 1,288,889 1,776,630 248,560 Net income per ordinary share Basic 1.32 2.03 0.28 3.86 5.01 0.70 Diluted 1.22 1.96 0.27 3.55 4.87 0.68 Net income per ADS Basic 2.64 4.05 0.57 7.71 10.02 1.40 Diluted 2.44 3.93 0.55 7.09 9.75 1.36 Weighted average number of ordinary shares outstanding Basic 339,262,237 357,428,690 357,428,690 334,239,227 354,720,615 354,720,615 Diluted 367,053,060 369,863,610 369,863,610 363,577,675 364,924,688 364,924,688

LexinFintech Holdings Ltd. Unaudited Condensed Consolidated Statements of Comprehensive Income (In thousands, except for share and per share data) For the Three Months For the Nine Months Ended Ended September 30, September 30, 2018 2019 2018 2019 RMB RMB US$ RMB RMB US$ 447,227 724,366 101,343 1,288,889 1,776,630 248,560 Net income Other comprehensive income/(loss) Foreign currency translation adjustments, net of nil 12,954 12,661 1,771 (4,869 ) 13,358 1,869 tax ------- ------- ------- --------- --------- ------- Total comprehensive income 460,181 737,027 103,114 1,284,020 1,789,988 250,429 ------- ------- ------- --------- --------- -------

LexinFintech Holdings Ltd. Unaudited Reconciliations of GAAP and Non-GAAP Results (In thousands, except for For the Three Months Ended September 30, For the Nine Months Ended September 30, share and per share data) 2018 2019 2018 2019 RMB RMB US$ RMB RMB US$ Reconciliation of Adjusted Net Income to Net Income Net income 447,227 724,366 101,343 1,288,889 1,776,630 248,560 Add: Share-based 37,665 43,345 6,064 97,225 123,767 17,316 compensation expenses Interest expense associated - 1,868 261 - 1,868 261 with convertible notes Investment-related - - - 4,841 - - impairment Investment income (18,753 ) (55,197 ) (7,722 ) (18,753 ) (53,433 ) (7,476 ) Adjusted net income 466,139 714,382 99,946 1,372,202 1,848,832 258,661 ----------- ----------- ----------- ----------- ----------- ----------- Adjusted net income per ordinary share Basic 1.37 2.00 0.28 4.11 5.21 0.73 Diluted 1.27 1.93 0.27 3.77 5.07 0.71 Adjusted net income per ADS Basic 2.75 4.00 0.56 8.21 10.42 1.46 Diluted 2.54 3.86 0.54 7.55 10.13 1.42 Weighted average number of ordinary shares outstanding Basic 339,262,237 357,428,690 357,428,690 334,239,227 354,720,615 354,720,615 Diluted 367,053,060 369,863,610 369,863,610 363,577,675 364,924,688 364,924,688

LexinFintech Holdings Ltd. Unaudited Reconciliations of GAAP and Non-GAAP Results For the Three Months Ended For the Nine Months Ended (In thousands) September 30, September 30, 2018 2019 2018 2019 RMB RMB US$ RMB RMB US$ Reconciliations of Non-GAAP EBIT to Net Income Net income 447,227 724,366 101,343 1,288,889 1,776,630 248,560 Add: Income tax expense 74,667 123,916 17,336 10,775 315,878 44,193 Share-based compensation expenses 37,665 43,345 6,064 97,225 123,767 17,316 Interest expense, net 8,287 8,590 1,202 18,719 9,739 1,363 Investment-related impairment - - - 4,841 - - Investment income (18,753 ) (55,197 ) (7,722 ) (18,753 ) (53,433 ) (7,476 ) ------- ------- ------- --------- --------- ------- Non-GAAP EBIT 549,093 845,020 118,223 1,401,696 2,172,581 303,956 ------- ------- ------- --------- --------- -------

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/ea97f58c-5801-422a-8034-8ab7dd8ef232