 SHENZHEN, China, Aug. 18, 2020 GLOBE NEWSWIRE -- LexinFintech Holdings Ltd. Lexin or the Company NASDAQ: LX, a leading online consumption and consumer finance platform for new generation consumers in China, today announced its unaudited financial results for the quarter ended June 30, 2020. Second Quarter 2020 Operational Highlights: Total loan originations1 in the second quarter of 2020 reached RMB41.1 billion, an increase of 57.8 from RMB26.0 billion in the second quarter of 2019. Total outstanding principal balance of loans1 reached RMB61.9 billion as of June 30, 2020, representing an increase of 52.4 from RMB40.6 billion as of June 30, 2019. Number of active users2 who used our loan products in the second quarter of 2020 reached 6.8 million, representing an increase of 65.8 from 4.1 million in the second quarter of 2019. Number of new active users who used our loan products in the second quarter of 2020 was 1.4 million, representing an increase of 12.3 from 1.3 million in the second quarter of 2019. Number of orders placed on our platform in the second quarter of 2020 was 74.6 million, representing an increase of 168 from 27.8 million in the second quarter of 2019. The GMV3 of our e-commerce channel amounted to RMB1.4 billion, representing a decrease of 27.3 from RMB1.9 billion in the second quarter of 2019. The weighted average tenor of loans originated on our platform in the second quarter of 2020 was approximately 11.4 months. The weighted average APR4 was 26.5 for the second quarter of 2020. Total number of registered users reached 95.3 million as of June 30, 2020, representing an increase of 90.0 from 50.2 million as of June 30, 2019; and users with credit line reached 22.7 million as of June 30, 2020, up by 68.4 from 13.5 million as of June 30, 2019. 90 day delinquency ratio5 was 2.99 as of June 30, 2020.1 Originations of loans and outstanding principal balance represent the origination and outstanding principal balance of both on- and off-balance sheet loans.2 Active 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.3 GMV refers to the total value of transactions completed for products purchased on the e-commerce channel, net of returns.4 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.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.Second Quarter 2020 Financial Highlights: Total operating revenue reached RMB3.0 billion. Credit-oriented services income reached RMB2.0 billion, representing an increase of 48.8 from the second quarter of 2019. Platform-based services income reached RMB419 million, representing an increase of 109 from the second quarter of 2019. Gross profit reached RMB968 million, representing a decrease of 11.9 from the second quarter of 2019. Net income was RMB419 million, representing a decrease of 33.3 from the second quarter of 2019. Non-GAAP EBIT6 was RMB541 million, representing a decrease of 30.3 from the second quarter of 2019. Adjusted net income6 was RMB453 million, representing a decrease of 32.5 from the second quarter of 2019. Adjusted net income per ADS6 was RMB2.21 on a fully diluted basis.6 Non-GAAP EBIT, adjusted net incomeloss, adjusted net incomeloss 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 announce a quarter of strong growth driven by our New Consumption Platform Strategy and a continuing recovery of Chinas consumer market. Our efforts to serve customers broader consumption needs have begun to pay off, with our platform-based services income in the quarter more than doubled from a year earlier, said Mr. Jay Wenjie Xiao, Lexins chairman and chief executive officer.We started as a consumer finance platform, and have now become a comprehensive consumption service provider, connecting our customers with financial institutions and retail merchants both online and offline. In this ecosystem, we offer not only credit services, but also membership-based privileges to our customers; we provide financial institutions with fintech services and retail merchants with consumer finance tools and customer management services. With that, we combine consumer finance, membership services, and fintech services in one ecosystem, marking a gradual evolution of our business model, Mr. Xiao added. As the China Banking and Insurance Regulatory Commission officially acknowledged the loan facilitation model of fintech platforms in July and domestic consumption continues to recover, we believe that Lexin is well positioned to benefit from market consolidation and further tap the potential of Chinese consumer market, Mr. Xiao said.Our major key metrics for our businesses continue to improve, and we are seeing a continued recovery from the COVID-19 pandemic, said Mr. Craig Yan Zeng, Lexins chief financial officer, We performed strongly for the quarter and are very much on track to achieve our full year loan origination guidance. Our total loan originations for the quarter reached over RMB41.1 billion and we successfully returned to profitability with net income of RMB419 million. In addition, more funding partners have now accepted our loan-performance-based facilitation and servicing fee model, and we have made continued progress in lowering the borrowing rates required by our institutional funding partners.In spite of the challenges in the industry and to the economy, our credit performance and credit quality continues to be stable and within our expectations, said Mr. Ryan Huanian Liu, Lexins chief risk officer, Our vintage charge-off rates7 is within expectations at approximately 4.5, and our 90 day delinquency rate was 2.99 as of June 30, 2020. We expect to continue to perform strongly within the current credit cycle, and we expect that our credit statistics should begin to improve in the third quarter and in the future as we exit the current credit cycle.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. Please refer to vintage curve at the end of Second Quarter 2020 Financial Results of this press release.Second Quarter 2020 Financial Results:Operating revenue increased from RMB2,493 million in the second quarter of 2019 to RMB2,958 million in the second quarter of 2020. This increase in operating revenue was due to an increase in credit-oriented services income and platform-based services income for the quarter, driven by continuing increases in the number of active users on our platform, and the change of the presentation of guarantee income along with the adoption of ASC 326, partially offset by the decrease in online direct sales and services income. Before the adoption of ASC 326, gain or loss related to financial guarantee not accounted for as derivatives was recorded in one combined financial statement line item within Gain on guarantee liabilities, net. After the adoption of ASC 326, the gain released from the guarantee liabilities accounted for under ASC 460 is recorded as Guarantee income as a separate financial statement line item within revenue and the relevant credit losses are recorded as Provision for credit losses of contingent liabilities of guarantee.Online direct sales decreased by 43.6 from RMB925 million in the second quarter of 2019 to RMB522 million in the second quarter of 2020. This decrease was primarily due to the decrease in the average consumer spending per order as a result of the impact of the COVID-19 pandemic during the second quarter of 2020.Credit-oriented services income increased by 48.8 from RMB1.3 billion in the second quarter of 2019 to RMB2.0 billion in the second quarter of 2020. The increase was primarily resulted from the increase of RMB706 million due to change of presentation of guarantee income as aforementioned, partially offset by the decrease in loan facilitation and servicing fees-credit oriented.Loan facilitation and servicing fees-credit oriented decreased by 7.7 from RMB1,009 million in the second quarter of 2019 to RMB931 million in the second quarter of 2020. This decrease was primarily due to the Companys business strategy shift to increase the loan originations under platform-based model.Guarantee income for the second quarter of 2020 was RMB706 million. 