GlobeNewswire Inc | Nov 6, 2020 02:51AM EST

November 06, 2020

SHENZHEN, China, Nov. 06, 2020 (GLOBE NEWSWIRE) -- "LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX),a leading online consumption and consumer finance platform for educated young professionals in China, is gearing up to expand its product offerings to tap the rising consumption demand of Chinas new generation, who have become the backbone of the Chinese consumer market," said Jay Xiao, CEO of LexinFintech.

Xiao unveiled the companys strategy to go beyond consumer finance and into broader consumption services with a series of products including the Le Hua Card, a credit service that can be used in online and offline consumption scenarios, and the membership platform Le Card, when speaking at Hong Kong Fintech Week on November 4.

Lexins initial goal was to serve young Chinese consumers, and our business strategy has constantly been evolving to capture the immense potential of this market, said Xiao.

Lexin started as a consumer finance platform when it launched Fenqile, an installment e-commerce service, in 2013. Fenqile saw its user base reach 100 million in August 2020.

To further penetrate Chinas consumer finance market, Lexin then rolled out the Le Hua Card, enabling its customers to use their credit lines obtained from Lexin in numerous online and offline consumption scenarios, ranging from ride-hailing to dining and entertainment.

In the second quarter of 2020, Le Hua Cards transaction volume increased by 400 percent year-on-year and facilitated transactions for over 4 million vendors in the single quarter. In the second half of 2019, only half a year after launch, Le Hua Card had already accounted for 20-30 percent of Fenqiles total loan originations and is expected to contribute even more in the future.

With the rapid growth of Le Hua Card, Lexins full-year loan originations are expected to reach RMB 170-180 billion in 2020, roughly the same size as the GDP of Iceland. Chinas consumer finance market is projected to grow toUS$1.6 trillionby the end of 2020, equivalent to the GDP ofMexico.

On top of consumer finance, Lexin is expanding into the broader consumer market by rolling out Le Card, a digital membership service offering benefits and privileges covering major video-streaming platforms, on- demand delivery services, franchised hotels, cinemas, among many other consumption scenarios.

With its AI-driven recommendation technology, Le Card can improve user engagement and the stickiness of its partner vendors, which includes hundreds of well-known brands such as Walmart, JD, KFC, and Taobao.

Consumption has become the main driver of Chinas economic growth. Chinas final consumption expenditure contributed 57.8 percent to its GDP growth in 2019, which represented an increase of nearly 10 percentage points from 48 percent in 2010.

Young Chinese consumers play a vital role in the growth. While only 23 percent of Chinas population are under 30 years old, this young group accounted for 60 percent of the online shoppers during the 2019 Singles Day Shopping Festival, according to Baidu.

Well continue to innovate in the consumption methods as well as continue to expand the scenarios available, to help Chinas emerging young consumers spend better and spend rationally, said Xiao.

AboutLexinFintech Holdings Ltd.

LexinFintech Holdings Ltd.is a leading online consumption and consumer finance platform for new generation consumers inChina. The Company provides a range of services including financial technology services, membership benefits, and a point redemption system through its ecommerce platformFenqileand membership platformLe Card. The Company works with financial institutions and brands both online and offline to provide a comprehensive consumption ecosystem catering to the needs of young professionals inChina. Lexin utilizes advanced technologies such as big data, cloud computing and artificial intelligence throughout the Company's services and operations, which include risk management, loan facilitation, and the near-instantaneous matching of users funding requests with offers from the Company's many funding partners.

For more information, please visit http://ir.lexin.comTo follow us on Twitter, please go to: https://twitter.com/LexinFintech

For investor and media inquiries, please contact:LexinFintech Holdings Ltd.IR inquiries:Tony HungTel: +86 (755) 3637-8888 ext. 6258E-mail:IR@lexin.com

Media inquiries:Limin ChenTel: +86 (755) 3637-8888 ext. 6993E-mail:liminchen@lexin.comSOURCELexinFintech Holdings Ltd.