According to the financial report, LexinFintech Holdings Ltd. 's operating income reached 1.6 billion yuan in the first quarter, compared with 1.2 billion yuan in the same period last year. LexinFintech Holdings Ltd. 's first-quarter net profit was 146 million yuan, up 160 per cent from 56.3 million yuan in the same period last year. After adjustment, LexinFintech Holdings Ltd. 's net profit in the first quarter was 174 million yuan, up 88.3% from 92.3 million yuan in the same period last year. The GMV of Fenqile Mall increased by 28% in the first quarter compared with the same period last year, and its profitability continued to improve.
In addition, LexinFintech Holdings Ltd. expects total loans to reach 8, 0 yuan in fiscal year 2018.
LexinFintech Holdings Ltd. (LX) today reported results for the first quarter ended March 31, 2018. However, after the announcement of the results, LexinFintech Holdings Ltd. 's share price plummeted before trading and is now down 4 per cent. The previous trading day, LexinFintech Holdings Ltd. also rose more than 9% at one point.
Source: Futu Securities
The advantage of the scenario of substantial profit growth is highlighted.
Financial data show that in the first quarter of this year, LexinFintech Holdings Ltd. 's users and business scale grew synchronously, showing three 90%: at the end of the first quarter, the number of LexinFintech Holdings Ltd. users reached 26.4 million, an increase of 94.8 percent over the same period last year; the amount of loans contributed to in the first quarter was 14.8 billion, an increase of 98.3 percent over the same period last year; at the end of the first quarter, the loan balance reached 21.3 billion, an increase of 99.3 percent.
In contrast, in the first quarter, LexinFintech Holdings Ltd. recorded a profit before interest and tax (Non-Gaap) of 211 million yuan, while net profit reached 146 million, an increase of 160 per cent.
While the scale of the business has grown substantially, LexinFintech Holdings Ltd. 's risk performance has remained stable. According to the data, the overdue rate of loans facilitated by LexinFintech Holdings Ltd. for more than 90 days in the first quarter was only 1.44 per cent. In addition, the average annualized interest rate of borrowing facilitated by LexinFintech Holdings Ltd. platform is 23.4%, and the average loan term is close to 12 months.
Installment shopping, as the basic business of LexinFintech Holdings Ltd., also performed well. According to the data, the SKU of Fenqile Mall increased by 90% over the same period last year, the number of installment shoppers increased by 36%, and the overall GMV increased by 28% compared with the same period last year.
The natural attraction of high-quality scenes to users has also greatly reduced LexinFintech Holdings Ltd. 's cost of getting guests. In the first quarter of 2018, LexinFintech Holdings Ltd. 's cost per user decreased to 108 yuan from 144 yuan in the same period in 2017.
The power of financial technology comes from the sharp rise in service fees of financial institutions.
In addition to the reduction in customer costs, the key factor for LexinFintech Holdings Ltd. 's substantial improvement in profit is that investment in science and technology has greatly improved operational efficiency.
Since its establishment more than four years ago, LexinFintech Holdings Ltd. 's advantages in smart finance have been continuously accumulated. About 1/3 of LexinFintech Holdings Ltd. 's annual operating expenditure is invested in financial technology, and it is increasing year by year. In 2017 alone, LexinFintech Holdings Ltd. 's R & D investment reached 235 million yuan, a sharp increase of 84.8% over the same period in 2016.
In April this year, LexinFintech Holdings Ltd. held the second Partners' Conference and announced that artificial intelligence technology had been fully applied in risk control, asset matchmaking and customer service operations. it has greatly helped LexinFintech Holdings Ltd. and his financial partners to improve the service radius and efficiency of the long-tail population of consumer finance.
At present, LexinFintech Holdings Ltd. 's "Hawkeye" intelligent risk control engine has more than 7000 risk control model data variables, which can automatically audit 98% of orders and feedback the results in seconds. On the other hand, the massive small and micro financial asset processing technology platform "wormhole" can be directly connected to financial institutions, automatically classify and price assets according to user attributes, order types and asset attributes, and then according to the asset requirements submitted by different funding parties, recommend these consumer financial assets to financial institutions in real time, and let them complete the audit of real-time loans.
These financial technology systems have greatly improved the overall operational efficiency of LexinFintech Holdings Ltd.. LexinFintech Holdings Ltd. 's operating expenses accounted for 17.3 per cent of the loan balance in 2015; that figure fell steadily to 8.9 per cent and 5.8 per cent in 2016 and 2017. In the first quarter of 2018, that number fell again to 4.5%.
This also attracts more financial partners for LexinFintech Holdings Ltd.. LexinFintech Holdings Ltd. revealed at the second Partnership Conference that the number of its financial partners has increased from 30 in 2017 to more than 80 now. According to the financial report, LexinFintech Holdings Ltd. received a matchmaking fee of 164 million yuan for various financial institutions in the first quarter of 2018, an increase of 204% over the same period last year.
It is worth mentioning that Qudian Inc, a mutual stock listed on US stocks tonight, also released a quarterly report. Although revenue soared by 105.6 per cent to $274 million, Qudian Inc's net profit fell 32.1 per cent to $50.35 million due to strict regulation of cash loans. At present, it is down more than 5% before trading:
