Lexin released its Q3 financial report: revenue of 3.51 billion, a year-on-year increase of 30.4%, with steady growth in scale and profit, demonstrating its unique ecological advantage.

In the third quarter, Lexin's unique ecological advantages began to emerge: its digital technology business achieved rapid growth, with a 59% increase in cooperative transaction volume; the scene e-commerce business saw growth for multiple consecutive quarters, with a 12.8% year-on-year increase in GMV. During the recent November 11 shopping festival-related promotions, the number of e-commerce orders increased by 37% year-on-year, driving a 12.4% increase in transaction amount from high-quality active users in the consumer finance business.

In the third quarter, in the face of the challenges brought by the uncertain macroeconomic environment, the company appropriately tightened its risk strategy to balance growth and quality, ensuring the steady growth of its business. The financial report data shows that the transaction amount in the third quarter was 63.3 billion yuan, a 13% year-on-year increase; the management loan balance increased to 120.7 billion yuan, up 28% year-on-year; and the number of users was 204 million, up 11.3% year-on-year.

The financial report shows that in the third quarter, as refined operations continued to deepen, the company's profitability continued to improve, with total operating expenses down 7% year-on-year; further expansion of high-quality financial institution partnerships, with a 21bp quarter-on-quarter decrease in funding costs compared to the second quarter, hitting a historical low.

Lexin CEO Jay Xiao stated, "In the face of current industry and macroeconomic challenges, in the third quarter we continued to implement our risk and data-driven dual-wheel strategy, and adopted a cautious and prudent approach, constantly strengthening our underlying capabilities, achieving good growth in our performance. Looking ahead to the fourth quarter, amid complex and uncertain external environments, we will continue to adhere to the principle of prudent operation, prioritize risk management, and continue to drive risk reduction and asset quality improvement, with a focus on balancing growth and asset quality."

The financial report shows that Lexin has made significant progress in the third quarter with its unique ecological advantages.

In the third quarter, the technology business grew rapidly, with a 59% increase in cooperative transaction volume. It has strengthened cooperation with many urban and rural commercial banks, and its commercialization capabilities have been further enhanced. The technology business is currently accelerating its expansion to further scale up, assisting more urban and rural commercial banks in achieving digital transformation of retail credit. It closely cooperates with financial institutions, promoting the rapid growth of its business while also bringing more imagination space for comprehensive cooperation between Lexin and banks, and facilitating better synergy in consumer finance, driving deeper fund cooperation between consumer finance and financial institutions.

The scenario e-commerce business has continued to grow for multiple quarters, with a third-quarter GMV of 1.381 billion yuan, a 12.8% year-on-year increase. The installment shopping mall focuses on serving high-quality and high-growth consumer groups such as the post-90s and post-95s, fully leveraging the characteristics of installments. It focuses on creating a trendy installment experience based on the ultimate pursuit of cost-effectiveness by the younger generation after the epidemic, deeply tapping into the consumption potential of young consumers. During the quarter, the installment shopping mall continued to consolidate direct authorizations from leading mobile phone brand manufacturers, maintaining its advantage in scarce and initial supply of new products to better stimulate the consumption potential of high-quality users. It continued to introduce categories such as luxury goods, sports, and pets that are favored by young people, with the number of new merchants covering 241 brands, a 51% increase from the previous quarter, retaining more users for in-site consumption and enhancing the stickiness of active users.

During the November 11 shopping festival, the number of orders in the installment shopping mall increased by 32% year-on-year, and the number of ordering users increased by 37%. The stickiness of active users continues to strengthen, with the number of transactions per active user increasing by 48% year-on-year, and the number of transaction participants increasing by 51%. Advantaged categories such as 3C digital products and home appliances experienced explosive growth, with home appliances sales on November 11 increasing by 600% compared to the average daily sales of the previous seven days. Apart from advantaged categories, on November 11, the sales of food and groceries also saw remarkable momentum, with sales on the day being 30 times the average daily sales of the previous 7 days.

During the November 11 shopping festival, e-commerce drove the growth of high-quality and active consumer finance users in transactions, with a roughly 12.4% increase in transaction amount compared to the previous period. Consumer finance's active users further drove e-commerce consumption, forming a cyclically reinforced business ecosystem.

The inclusive business strengthened multiple underlying capabilities in the third quarter, including organizational structure upgrading, improved sales management systems, and standardized talent development. The inclusive direct sales customer acquisition team, covering 30 provinces, autonomous regions, and 336 cities, is using a precise online + offline risk control model to continuously promote the improvement of the company's risk identification capabilities and the reduction of customer acquisition costs in an era of homogeneous existing competition, further enhancing Lexin's competitive advantage.

Lexinfintech has been selected four times in the "Top 500 Chinese Service Industry Enterprises" list, moving up 9 spots from last year and being the only company in the fintech industry to be selected four times.

The financial report shows that Lexinfintech continues to invest in technology, providing stable support for the dual-driven strategy and solidifying its competitive advantage.

In the third quarter, Lexinfintech invested 0.127 billion yuan in research and development, maintaining its industry-leading position. During the quarter, Lexinfintech iterated and improved its global model of the user lifecycle, implementing more AI big model scenarios. Focusing on the essence of financial business, from data lineage grooming, model construction, to systematic tool development, efforts are made to create a leading end-to-end quantitative operation system, improving operational efficiency and customer experience.

In the third quarter, Lexinfintech continued to increase its investment in data mining and model construction. More data sources were introduced to build an identification system centered around the People's Bank of China's credit reporting system. The model framework covering the entire lifecycle from customer acquisition, risk management, and operations was improved, with a 10%-20% increase in model ranking and stability. Significant upgrades were made to new customer models and strategies, achieving remarkable results. The efficiency of customer acquisition through information flow increased by 38.5% compared to the first quarter. New customers saw a more than 20% increase in approval rate, number of transaction users, and facilitation of loan amount compared to the control group; early delinquency indicators decreased by nearly 20%.

Through financial-specific data pre-training and fine-tuning of business data, Lexinfintech accelerated the landing application of AI big models in the company during the third quarter. In terms of business interaction, it has been fully implemented in key business processes such as telemarketing, customer service, and debt collection; in terms of productivity improvement, it is widely applied in scenarios such as R&D code assistance, design and creative generation, and data analysis, improving the overall operational efficiency of the company.

While achieving high-quality development driven by dual engines, Lexinfintech actively fulfills corporate social responsibility. Micro and small enterprises are an important pillar of the national economy, and financial services are accelerators for the growth of micro and small enterprises. Lexinfintech's inclusive "Small Shop Fireworks Plan" provides four distinctive services: high credit limits, fast review, excellent service, and cost savings, effectively alleviating the funding bottleneck problem for micro and small enterprises and supporting the development of the real economy. Currently, Lexinfintech has cumulatively provided high-quality financial services to more than 4 million micro and small enterprises and individual businesses, with a transaction volume exceeding 35 billion yuan.

Lexinfintech has upgraded its consumer rights protection measures in the third quarter, building a comprehensive security firewall for consumers through four major initiatives: strengthening data security management system, enhancing anti-fraud protection capabilities, increasing the application of intelligent customer service, and strengthening the fight against financial fraud. In the first eight months of this year, Lexinfintech intercepted 0.16 billion instances of data security attacks, maintaining a record of zero data leakage since its launch in the online data protection and governance system. The anti-fraud system has prevented users from losing more than 0.47 billion yuan. Customer satisfaction has increased to 99.6%. Recently, in order to promote public financial literacy, Lexinfintech has partnered with the Guangdong Branch of the People's Bank of China to promote the implementation of the "Gold Education Project". It has already entered 30 primary and secondary schools and vocational and technical schools in Guangzhou to promote knowledge about anti-fraud. Previously, Lexinfintech has collaborated multiple times with the Beijing Anti-fraud Center, Anti-fraud Alliance, and others to carry out "public welfare activities against fraud", comprehensively strengthening the anti-fraud defense of the public.