LexinFintech Holdings Ltd – ADR (NASDAQ: LX) stock crashed over 12.4% on March 20th, 2018 on the back of lower than the expected fourth quarter of FY 17 performance. The group has reported the total operating revenue of RMB1.6 billion. Financial services income grew 62.3% to RMB902 million from the fourth quarter of 2016. Loan facilitation and servicing fees reached RMB191 million, which is an increase of 668% from the fourth quarter of 2016. Gross profit grew 79.3% to RMB434 million from the fourth quarter of 2016.

Moreover, the customer acquisition cost has amounted to RMB99 in 2017, representing a fall of 22% from 127 in 2016. The total number of registered users has reached 23.9 million at the end of December 31st, 2017, which is an increase of 99.2% from 12.0 million as of December 31, 2016; and users with credit line reached 7.6 million as of December 31, 2017, an increase of 68.9% from 4.5 million as of December 31st, 2016. 90+ delinquency ratio were 1.14% as of December 31, 2017.

For the fourth quarter of FY 17, Non-GAAP EBIT is of RMB237 million, which is an increase of 322% from the fourth quarter of 2016. The company has reported the net income of RMB100 million, compared to a net loss of RMB12.9 million in the fourth quarter of 2016. The adjusted net income in Q4 is of RMB126 million, which represents an increase of 436% from the fourth quarter of 2016.

Further, the total loan originations in 2017 has totalled RMB47.7 billion, that represents an increase of 115% from RMB22.2 billion in 2016. The total outstanding principal balance of loans reached RMB19.3 billion as of December 31st, 2017, which is a growth of 94.7% from RMB9.9 billion as of December 31, 2016. The weighted average tenor of loans originated on the company’s platform in 2017 was approximately 9.53 months. The effective APR1 was 22.8% for the fourth quarter of 2017.

Additionally, in 2017, LX has reported the adjusted net income of RMB389 million, compared to a net loss of RMB39.6 million in 2016. In FY 17, the operating revenue has risen from RMB4.3 billion in 2016 to RMB5.6 billion in 2017, primarily due to the substantial increase in financial services income. The Financial services income grew by 92.9% from RMB1.6 billion in 2016 to RMB3.0 billion in 2017, driven by the increase in the principal balance of loans. In addition, in 2017, the loan facilitation and servicing fees has increased by 599% from RMB 54.2million in 2016 to RMB379 million in 2017, primarily due to the significant growth in principal balance of off-balance sheet loans.