Dongping Zhou

Dongping Zhou questioned Lexin's performance outlook and guidance for Q4 and full year 2025, as well as for 2026, and the company's plans for future shareholder returns given the progress on its share repurchase program.

Answer

CFO James Xigui Zheng stated that Q4 results would be negatively impacted by the new regulation and proactive control of loan volume growth due to rising industry risk volatility, leading to a sequential decline in net profit. He confirmed significant year-over-year net profit growth for full year 2025. For 2026, he outlined factors like declining average pricing, risk stabilization, decreasing funding costs, and synergies from ecosystem businesses. Chairman and CEO Jay Wenjie Xiao affirmed the company's commitment to shareholder returns, noting the share repurchase program and personal share purchases are over halfway complete, and more initiatives will be explored after the current program is fully executed.

Dongping Zhou asked for Lexin's outlook and guidance for Q4 2025 and the full year 2026 performance, as well as future plans for shareholder returns given the progress of the share repurchase program.

Answer

CFO James Xigui Zheng projected a moderate loan volume decline and sequential net profit decrease for Q4 2025 due to regulatory changes and risk volatility, but reaffirmed significant full-year 2025 net profit growth. For 2026, he outlined factors like pricing impact, risk stabilization, funding costs, and ecosystem synergies, noting that recovery depends on industry stability. Chairman and CEO Jay Wenjie Xiao confirmed the share repurchase program and personal share purchases are ahead of schedule, demonstrating confidence, and stated Lexin will explore further shareholder value initiatives after the current program's completion, alongside a 30% dividend payout ratio.

Dongping Zhou of China International Capital Corporation inquired about the company's future plans for shareholder returns, specifically seeking color on the progress of share repurchases and whether a more specific dividend ratio plan is available for disclosure.

Answer

Chief Financial Officer Jiayuan Xu reiterated that returning capital is a key strategy, highlighting the cumulative $813 million returned to shareholders. He confirmed the board upgraded the dividend policy to a range of 20% to 30% of annual net profit. For share repurchases, he noted that under the current $115 million program, the company bought back $63.8 million in shares in the first half of 2025, signaling strong confidence in sustainable growth and its international expansion.