Lixin Boosts Dividend 50% on 32.5% Revenue Growth

Lixin, a prominent financial technology company listed on the U.S. stock market under the ticker LX.US, has announced a cash dividend of $0.11 per American Depositary Share (ADS) for the second half of 2024. The dividend, which will be distributed on May 16, 2025, represents approximately 20% of the company's net profit for the period. This decision was made by the company's board of directors, who also resolved to increase the dividend payout ratio to 25% of net profit starting from 2025.

The dividend amount for this period marks a significant increase of over 50% compared to the first half of 2024, when the dividend was approximately $0.072 per ADS. This substantial growth is attributed to Lixin's improving financial performance. According to the company's financial reports, Lixin's revenue for the fourth quarter of 2024 reached 36.6 billion yuan, with a non-GAAP EBIT (Earnings Before Interest and Taxes) of 4.6 billion yuan. This represents a year-over-year increase of 32.5% and a quarter-over-quarter increase of 12.5%, marking the third consecutive quarter of significant growth.

The sustained improvement in Lixin's performance is underpinned by the company's strengthening fundamental capabilities and the continuous improvement of key risk indicators. In the fourth quarter of 2024, the early-stage risk indicator FPD7 decreased by approximately 8% compared to the previous quarter, while FPD30+ decreased by approximately 9%. The delinquency rate for large-scale assets also decreased by approximately 4%, and the 90+ delinquency rate decreased by 3%.

Looking ahead to 2025, Lixin's management expressed confidence in achieving significant profit growth. With the anticipated increase in profits and the elevated dividend payout ratio, the company is poised to further enhance its dividends, thereby delivering tangible returns to its shareholders. This strategic move not only reflects Lixin's commitment to shareholder value but also underscores its robust financial health and operational efficiency. The company's focus on risk management and performance improvement positions it well for continued success in the competitive financial technology landscape.