Lexin's Q1 revenue increased by 74% year-on-year to 2.983 billion yuan, with a profit of 438 million yuan

On May 24th, Lexin (NASDAQ: LX) released its unaudited financial results for the first quarter of 2023. According to the financial report, Lexin's revenue in the first quarter was 2

On May 24th, Lexin (NASDAQ: LX) released its unaudited financial results for the first quarter of 2023. According to the financial report, Lexin's revenue in the first quarter was 2.983 billion yuan (RMB, the same below), a year-on-year increase of 74%; The profit (Non GAAPEBIT) was 438 million, a year-on-year increase of 181%.

In terms of scale, financial report data shows that the trading volume of Lexin in the first quarter reached 60.9 billion yuan, a year-on-year increase of 41.2%; The loan balance under management exceeded the 100 billion yuan mark, reaching 107 billion yuan, a year-on-year increase of 28%; The total number of users was 194 million, a year-on-year increase of 13.7%.

In terms of asset quality, thanks to the upgrade of risk control system and the promotion of refined operation of high-quality users, the accuracy of user identification has significantly improved, and asset quality continues to improve. The revenue promotion rate in the first quarter still maintained a continuous downward trend; The overdue rate of 90+is 2.53%, which is consistent with the fourth quarter of 2022.

The financial report shows that the cost of loan assistance funds in the first quarter decreased from 6.8% in the fourth quarter of 2022 to 6.6%, reaching the lowest level in three years.

Lexin CEO Xiao Wenjie stated that, With the end of the epidemic, the consumer market is gradually recovering and the macro operating environment continues to improve, ushering in an important period of opportunity for consumer finance. In the first quarter, we adhered to the dual wheel drive of risk and data, and achieved another good quarterly performance. Firstly, based on our continuously enhanced customer identification ability, we accelerated the clearance of tail assets and improved asset quality. Secondly, we continued to focus on refined operations, improving operational efficiency. Thirdly, The effect of cost reduction and efficiency increase is gradually showing, and the company's profitability is steadily recovering, and all business indicators are developing in a better direction. In the second quarter, we will continue to operate prudently and prioritize asset quality, with an expected transaction volume of 63-63.5 billion yuan in the second quarter

In the first quarter, Lexin invested 130 million yuan in research and development. In the first quarter, Lexin accelerated the application of AI big models in its business. Through pre training with exclusive data from Lexin Finance and fine-tuning business data, the AI big model has been implemented in fields such as research and development code assistance, design creativity generation, telemarketing, and intelligent customer service services. Taking the e-commerce scenario as an example, after applying the AI big model, the credit conversion rate on the same day has increased by 70% compared to outsourcing technology, and the conversion rate for placing orders on the same day has increased by 10%. In the future, Lexin will continue to promote in-depth exploration of AI big models in areas such as risk management and anti fraud.

The financial report shows that in the first quarter, the e-commerce business GMV11.3 billion yuan, a year-on-year increase of 68.8%, and the cumulative number of e-commerce transaction users increased by 71.2% year-on-year.

During the quarter, the GMV of 3C advantageous categories such as mobile computers increased by 42% year-on-year, achieving growth in the market environment where the overall decline in the mobile computer industry was over 20%; The GMV of the beauty jewelry category increased by 132% year-on-year in the first quarter; Clothing and home furnishings increased by 69% and 219% year-on-year.

Rooted in the offline Lexin inclusive business, through an offline team covering 30 provinces, cities, autonomous regions, and more than 2000 localized service personnel, we help high-quality small and micro enterprises alleviate their capital turnover difficulties. In the first quarter, Lexin issued loans to small and micro business owners totaling 4.9 billion yuan.

Lexin's full scene credit consumption product, Lehua Card, saw a year-on-year increase of 110% in the amount of movie ticket consumption on the platform during the May Day holiday. (One Orange)