Yu Feng Chen's questions to Lexinfintech Holdings Ltd (LX) leadership • Q3 2024
Question
Yu Feng Chen of Huatai Securities inquired about the factors driving the record-low funding cost in Q3 and the outlook for Q4. They also asked about the measures that led to a significant decrease in unit customer acquisition cost alongside a substantial increase in new customers with approved credit lines.
Answer
CFO Xigui Zheng stated that the funding cost reached a historic low of 4.28% due to ample market liquidity and partner confidence in Lexin's improving asset quality, and he anticipates milder optimization in Q4. CEO Jay Xiao, via translator Mandy Dong, attributed the lower acquisition costs to three main factors: improved efficiency in online advertising channels, intensified efforts to reactivate high-quality dormant customers from their 200M+ user base, and strengthened cooperation with leading key account (KA) channels.