On November 23, Beijing time, Lexin, a new consumer digital technology service provider listed on the US stock market, released its financial results for the third quarter of 2023. According to the financial report, Lexin's revenue in the third quarter was 3.51 billion yuan (RMB, the same below), a year-on-year increase of 30.4%; The profit (Non GAAPEBIT) was 527 million yuan, a year-on-year increase of 30%.
Number of business cooperation transactions increased by 59% month on month
According to financial report data, Lexin's trading volume in the third quarter reached 63.3 billion yuan, a year-on-year increase of 13%; The managed loan balance increased to 120.7 billion yuan, a year-on-year increase of 28%; The number of users reached 204 million, a year-on-year increase of 11.3%.
In expanding partnerships with financial institutions. The financial report shows that with the deepening of refined operations, Lexin's profitability continues to improve, with a year-on-year decrease of 7% in total operating expenses; Further expanding high-quality financial institution partners, the cost of funds decreased by 21 bp compared to the second quarter.
In terms of small and micro financial services, financial reports show that Lexin has provided high-quality financial services to over 4 million small and micro enterprises and individual businesses, with a transaction volume exceeding 35 billion yuan.
Among them, the digital business was the highlight of Lexin's business in the third quarter. The financial report shows that in the third quarter, Lexin's digital business grew rapidly, with a 59% increase in cooperation transaction volume compared to the previous quarter. The depth of cooperation with multiple urban and rural commercial banks has been strengthened, and the commercialization ability has further improved. The digital business is currently accelerating its expansion and further expanding its scale to assist more urban and rural commercial banks in achieving digital transformation of retail credit.
Wang Pengbo, Chief Analyst of Botong Consulting, told Securities Daily, "Based on Lexin's performance, the digital business of the company performed relatively well in the third quarter. The close cooperation between the company's digital business and financial institutions not only promotes the high-speed growth of the business itself, but also brings more imagination space for the all-round cooperation between Lexin and banks, and can also promote the company's consumer finance sector business to deepen more capital cooperation with financial institutions
Research and development investment of 127 million yuan in the third quarter
According to disclosure, Lexin continues to maintain its investment in technology. In the third quarter, Lexin invested 127 million yuan in research and development. During the quarter, Lexin iterated and improved the global model of user lifecycle, landing more AI big model scenarios. Meanwhile, in the third quarter, Lexin continued to increase its investment in data mining and model construction. Introducing more data sources, constructing an identification system centered on the People's Bank of China credit reporting system, and improving the model framework throughout the entire lifecycle from customer acquisition, risk, and operation. The ranking and stability of the model have been improved by 10% -20% compared to before. Significant upgrades were made to the new customer model and strategy, achieving significant results, with an increase of 38.5% in information flow customer acquisition efficiency compared to the first quarter. The pass rate of new customers, the number of transaction users, and the amount of facilitated loans have all increased by more than 20% compared to the control group; There was a nearly 20% decrease in early admission indicators.
According to disclosure, through financial exclusive data pre training and business data fine-tuning, Lexin accelerated the implementation and application of AI big models in the company in the third quarter. In terms of business interaction, it has been fully implemented in major business processes such as telemarketing, customer service, and collection; In terms of productivity improvement, it is widely applied in scenarios such as R&D code assistance, design creativity generation, and data analysis to improve the overall operational efficiency of the company.
In addition, resisting black and gray production is currently a hot topic in the financial technology industry. Lexin also disclosed its effectiveness in resisting black and gray production. According to disclosure, Lexin upgraded its consumer rights protection measures in the third quarter, building a comprehensive security firewall for consumers by strengthening the data security management system, improving anti fraud protection capabilities, increasing intelligent customer service applications, and strengthening the crackdown on financial black industries based on the "5S protection system". In the first eight months of this year, Lexin intercepted 160 million data security attacks, and the data protection and governance system maintained its zero data leakage record since its launch; The cumulative amount of user losses avoided by the anti fraud system exceeds 470 million yuan.
Xiao Wenjie, CEO of Lexin, said, "In the third quarter, we continued to promote the implementation of the risk and data dual wheel drive strategy, adopted a cautious and prudent strategy, and continuously strengthened our underlying capabilities, achieving good performance growth. Looking forward to the fourth quarter, we will continue to adhere to the principle of prudent operation, prioritize risk management, continue to promote risk reduction and asset quality improvement, and focus on balancing growth and asset quality
Su Xiaorui, a senior consultant in the financial industry for Analysys Analytics, told Securities Daily that Lexin's performance in the third quarter was good in its digital and consumer finance businesses. Taking into account other US listed fintech companies that have been disclosed before, this year's US listed fintech companies have made great efforts to resist black and gray industries, and multiple institutions have actively taken action in abnormal rights protection and various black and gray industry activities, It is conducive to the healthy development of the industry and also conducive to the formation of industry cooperation to combat black and gray production.