Lexin’s second quarter revenue of 2.5 billion yuan rose 22.2% year-on-year.
By the end of the second quarter of 2019, Lexin households had broken through 50 million, reaching 50.2 million, up 71.7% from 29.2 million in the same period last year; the number of credit-granting households was 13.5 million, up 50.7% from 8.9 million in the same period last year; the number of active users was 4.1 million, up 51.9% from 2.7 million in the same period last year;
Tencent News “Front Line” Wang Pan
On August 30, Beijing Time, China Financial Technology Enterprise Letter (NASDAQ: LX) released its unaudited financial performance in the second quarter of 2019. Thanks to the new consumption platform strategy, Lexin households grew strongly, with revenue of 2.5 billion yuan, an increase of 22.2% over the same period last year, showing double-digit growth for seven consecutive quarters since listing.
According to the financial report, Lexin has raised its annual trading scale from 90 to 100 billion yuan (the same below) to 115 billion yuan.
By the end of the second quarter of 2019, Lexin users had broken through 50 million, reaching 50.2 million, up 71.7% from 29.2 million in the same period last year; the number of credit-granting users was 13.5 million, up 50.7% from 8.9 million in the same period last year; the number of active users was 4.1 million, up 51.9% from 2.7 million in the same period last year; and the number of new active users increased by 1.3 million in a single quarter, up significantly from 514 million in the same period last year. It’s 153% long.
User growth has led to a substantial increase in the size of Letterman’s business. In the second quarter, Lexin platform contributed to borrowing 26 billion yuan, up 57% from 16.6 billion yuan in the same period last year, and the loan balance was 40.6 billion yuan, up 64.5% from 24.7 billion yuan in the same period last year. Asset quality performance remained stable, with the overdue rate of 1.49% over 90 days.
In the second quarter, Lexin recorded revenue of 2.5 billion yuan, an increase of 22.2% over the same period last year of 2.04 billion yuan; gross operating profit of 1.1 billion yuan, an increase of 26.6% over the same period last year of 870 million yuan; non-GAAP EBIT of 776 million yuan, an increase of 28.8% over the same period last year of 602 million yuan, net profit of 628 million yuan, with one-time deferred post deducted from the same period last year. Net profit after tax increases by 34%.
Based on this growth momentum, Lexin is expected to increase its borrowing amount to more than 115 billion yuan, a 74% increase compared with the total amount of 66.1 billion facilitated borrowing last year. At the beginning of the year, the company’s total amount of facilitated borrowing is expected to be 90-100 billion yuan, which is 25 billion yuan higher than the lower limit of the previous value.
Financial technology revenue is still the fastest growing part of Lexin. In the second quarter of 2019, Lexin’s revenue from financial technology through its services to various financial institutions reached 1.2 billion, up 148% from 490 million in the same period last year.
In addition, the second quarter results show that the GMV of Philadelphia Mall reached 1.9 billion, an increase of 24.1% over the same period of last year’s 1.5 billion, significantly ahead of the growth rate of total retail sales in the same period (8.4%).
Lexin CEO Xiao Wenjie said, “We are very happy to see that the new consumer platform strategy has brought us strong user growth. Since this year, around the consumption needs of high-quality and high-growth groups, Lexin’s new consumption platform strategy in three aspects of scenario, finance and equity is building a broader ecological system. Through the brand-new rights and interests consumption platform
Leka', Lexin connects a large number of high-quality head businesses, provides various kinds of consumer rights and interests for new consumers, and creates asuper member’system empowering both ends. We also provide users with staged consumption services in a broad offline consumption scenario through `Lehua Card’. It improves the scenario advantage and the ability to get visitors.
“The strong growth in the second quarter proves the great potential of the new consumption platform strategy. We have every reason to believe that the technology accumulation and reserve of Lexin in artificial intelligence and big data in the past six years can provide all-round new consumer services for millions of users and support Lexin to step up to a new level of transaction scale of hundreds of billions. Xiao Wenjie said.
AI Anti-fraud Ability Improvement
In the second quarter of 2019, Lexin spent 99.7 million yuan on R&D, an increase of 27% over last year. In the listed financial science and technology enterprises, Lexin financial science and technology investment intensity, R&D personnel proportion, are in the leading position. In July 2019, Lexin won the Best Credit Technology Project Award of China for “Asian Bankers” in 2019.
Through big data and AI technology, Lexin improves efficiency and reduces risks in commodity recommendation, wind control and operation. At present, Lexin has made progress in many machine learning applications such as complex network, receiving address clustering analysis, LBS information clustering analysis, user behavior sequence analysis, public opinion analysis and so on.
At present, Lexin Intelligent Wind Control Engine “Eagle Eye” order automation audit rate reached 98%, large-scale small financial assets processing technology platform “wormhole” financing matching success rate reached 93%. In the second quarter, the negative rate of Lexin over 90 days was 1.49%.
In the second quarter, Lexin reached cooperation with more financial partners. At the Partnership Conference held in that quarter, Lexin signed strategic cooperation agreements with dozens of large state-owned banks, insurance companies and consumer finance companies, including ICBC and Minsheng Bank. The cooperation covers many fields, such as financial science and technology, intelligent marketing, etc. 。 At present, the number of Lexin’s financial partners has exceeded 100. In the second quarter, nearly 80% of the new lending on the Letterman platform came from financial institutions.