LexinFintech Holdings Ltd. (NASDAQ:LX) Q1 2022 Earnings Conference Call May 30, 2022 9:30 PM ET

Company Participants

Jamie Wang - IR Manager

Jay Xiao - Chairman & CEO

Jayden Qiao - Chief Risk Officer

Sunny Sun - CFO

Conference Call Participants

Alex Ye - UBS

Ethan Wang - CLSA

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the LexinFintech First Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. I must advise you that this conference is being recorded today.

I would now like to hand the conference over to your first speaker today, Ms. Jamie Wang, IR Manager. Thank you. Please go ahead.

Jamie Wang

Thank you, operator. Hello, everyone. Welcome to Lexin's First Quarter 2022 Earnings Call. With us on the line today are our CEO, Jay Xiao; CFO, Sunny Sun, and CRO, Jayden Qiao.

Before we get started, I'd like to remind you that the call and presentation containing business outlook and forward-looking statements, which are based on assumptions as of today. The actual results may differ materially, and we undertake no obligation to update any forward-looking statements. Jay will first provide an update on our performance. Jayden will then discuss risk management. And lastly, Sunny will then cover the financial results in more detail.

I'll now turn the call over to Jay. His remarks will be in Chinese and English translation will follow. Jay, please?

Jay Xiao

Good morning, everyone. 1Q '22 was a quarter full of uncertainty and challenges. In China, a number of major cities like Shenzhen, Shanghai and Beijing have had to deal with the resurgence of COVID. The unpredictability of the pandemic has dented consumer confidence and led to a slowdown in the economy. Beyond China, the external environment is also highly volatile with high inflation in the U.S., a Federal Reserve that is committed to further rate hike, the squeeze in liquidity, volatility in Sino-U.S. relations and the conflict between Russia and Ukraine. These factors combined have been clouding the performance of capital markets.

They have also caused more uncertainty to our company and the whole sector. It's difficult to predict how these factors will develop in the next few quarters and how they will affect our operations and the execution of our strategy. From COVID alone, the impact to the society and economy has surpassed that of 2020.

We have always been proactively analyzing the situation, how consumer behavior will change and how the change in capital markets will affect listed companies. Given the core economy, pursuing scale at all costs will expose the company to more risk. We will work on the following instead: First, proactively responding to external change and adjusting operations and strategy to ensure asset quality; Second, further solidifying our foundation, increasing the operational efficiency; Third, staying committed to our strategy in order to improve the diversification and quality of revenue.