Recently, listed financial technology companies have successively disclosed their 2023 semi-annual financial reports. The New Economy Observation Group collected data from the semi-annual reports of 10 listed companies and found that most companies have entered the "era of resilient growth" based on multiple strategies such as first-mover advantages and customer base shifts, with stable performance.
Among them, the growth rate of Lexin, Yiren Jinke, and Bairong Yunchuang all exceeded 100% in the first half of the year, and the growth rate of Xiaoying Technology also exceeded 99%, showing a good performance.
From the perspective of the industry, with the downward trend of interest rates, the intensification of horizontal competition, and the normalization of supervision, financial technology listed companies have also promoted the deep integration of artificial intelligence and various financial scenarios through digital technology innovations such as AI large models, which not only guarantees The high-quality development of business also provides an inexhaustible source of power for long-term growth.
On the other hand, in the post-epidemic era, listed financial technology companies are putting more and more energy on long-term value exploration such as consumer protection, small and micro support, and social responsibility, and are committed to achieving a win-win situation of commercial value and social benefits .
01 | Performance indicators are as stable as before, and the growth rate of net profit is impressive
In the first half of the year, under the background of domestic economic recovery and consumption boost, each company adhered to prudent operating strategy and customer base shift strategy, and achieved steady growth in performance. Among the 10 listed companies, 6 have achieved double-digit double-digit growth in revenue and net profit.
From the perspective of revenue, the total revenue of Lufax Holdings in the first half of the year was 19.348 billion yuan, firmly sitting on the top spot in the industry. Qifu Technology followed closely, with an annual revenue of 7.513 billion yuan in the same period, and the revenue of Xinye Technology and Lexin also exceeded 6 billion yuan. In the first half of the year, Jiayin Jinke, Yiren Jinke and Xiaoying Technology in the central region all exceeded 2 billion yuan in revenue.
In terms of revenue growth, the industry as a whole bid farewell to the era of high-speed growth, and three companies experienced a decline, but the growth rate of many companies was impressive.
Among them, Jiayin Jinke's revenue growth rate in the first half of the year reached 81.41 % , continuing the high-speed growth in the first quarter, ranking first in the industry; Yiren Jinke followed closely, with a revenue growth rate of 53.39 % ; Lexin The revenue growth rate in the first half of the year was also good, at 46.4 % . In addition, the revenue growth rate of Bairong Cloud Chuang was 32%, that of Xiaoying Technology was 29.89%, and that of Jianpu Technology was 21.6%, all exceeding 20%.
In terms of net profit, 8 companies achieved profitability. Among them, Qifu Technology's net profit in the first half of the year reached 2.023 billion yuan, ranking first in the industry; Lufax Holdings ranked second with a net profit of 1.736 billion yuan. In addition, Xinye Technology made a net profit of 1.28 billion yuan in the first half of the year. Although Pleasant Jinke ranked sixth in terms of revenue, its net profit reached 955 million yuan, rising to fourth in the industry. Although OneConnect and Jianpu Technology are in the red, the range has narrowed sharply.
In terms of net profit growth, the four performed well, among which Lexin , Yiren Jinke, Bairong Yunchuang, and Xiaoying Technology reached 174.3 %, 121 %, 117.54% and 99.69 %, respectively. The growth rate of net profit also exceeded 50 % .
02 | The resilience of business growth is highlighted, and the increase in customer base boosts both quality and quality
In terms of business volume, the loan facilitation volume of the six financial technology listed companies has achieved resilient growth, and their asset quality has become more stable.
Among them, Qifu Technology's matching loan scale in the second quarter reached 124.2 billion yuan, a year-on-year increase of 26.4% and a month-on-month increase of 13.5%, ranking first in the industry. Lexin and Lufax Holdings contributed more than 50 billion yuan. Xinye Technology facilitated 47.3 billion yuan in loans in a single quarter, and Xiaoying Technology and Jiayin Financial Technology facilitated about 25 billion yuan in loans.
In terms of growth rate, except for Lufax Holdings, which actively reduced its business volume, the other six companies all achieved double-digit growth. Among them, Jiayin Jinke's contribution volume increased by 77.8% year-on-year , leading the way again. The growth rate of Pleasant Jinke was 65%, Xiaoying Technology reached 53.29%; in addition, the year-on-year growth rate of Lexin reached 30%, and Qifu Technology reached 26.4%, both of which performed well.
In terms of loan balance, the loan balances of Lufax Holdings, Qifu Technology and Lexin have exceeded 100 billion yuan , which are 426.4 billion yuan, 184.5 billion yuan and 114.1 billion yuan respectively.
The loan balance of Xinye Technology has also reached 63.7 billion yuan, which is not far from the 100 billion mark; the loan balance of Xiaoying Technology has exceeded 45 billion yuan . The growth rate became the highest among the seven companies.
Under the current market fluctuations, the fundamental reason why each company can achieve continuous growth in loan amount is that it adjusts its strategy according to the situation, promotes the customer base to rise, and controls the quality of assets more strictly.
Su Xiaorui, a senior consultant in the financial industry at Analysys, said that financial technology companies listed on the U.S. stock market adopted a shrinking strategy in the first half of the year to cope with the current market environment. The style of this strategy is prudent management, which pays more attention to business quality than scale .
Indeed. Lexin data shows that thanks to the iteration of the risk control system and the improvement of user identification capabilities, the quality of new assets has improved significantly: the proportion of new GMV contributed by high-quality users has risen from 80% in the second quarter of last year to 92%; The rate fell by nearly 10% month-on-month.
In terms of Xinye Technology, with the continuous deepening of the customer base strategy and the steady growth of the number of high-quality users driven by technology, the proportion of high-quality users served by Xinye Technology in the domestic market further increased to 80% in the second quarter, higher than the same period last year 74%, a record high.
Li Kan, President of Xiaoying Technology, said, "We are proud of our consistent high-quality risk control and stable high-quality borrower base." In the second quarter, the company continued to strengthen the risk management system to maintain healthy asset quality. Significant improvement over the previous year.
In terms of Pleasant Financial Services, on the basis of risk control, it actively adjusted the traffic structure, optimized customer experience, and promoted the steady increase of business scale. In the second quarter, Yiren Jinke facilitated a total of 8.2 billion yuan in consumption and small and micro credit support, a year-on-year increase of 65%.
For Lufax Holdings, credit impairment losses in the second quarter fell by 4.3% from the previous quarter. The C-M3 indicator is flat compared to the first quarter of 2023. The effect of the company's strengthening of risk control and focusing on high-quality customers is gradually showing.
And by moving up the customer base and strengthening the risk control strategy, financial technology companies can be said to have achieved "multiple birds with one stone".
First of all, the proportion of high-quality users of financial technology listed companies continues to increase, further driving the interest rate of credit products to continue to decline. For example, the average borrowing rate of Xinye Technology in the second quarter has dropped to 22.3%, which is 0.4 percentage points lower than that of the same period last year, realizing the benefit to users.
Secondly, when these users enjoy low-cost and high-quality credit services on the platform, the re-borrow rate continues to rise, and the life cycle that can be mined is greatly extended. According to data from Jiayin Jinke, the proportion of repeat borrowers reached 70.1% in the second quarter , and the average loan amount reached 10,368 yuan, a year-on-year increase of 16%.
Furthermore, a large number of high-quality customers and more stable asset performance have attracted the trust of more financial institution partners for them. Data shows that at the end of the second quarter, Qifu Technology has established cooperative relations with 153 financial institutions; Jiayin Financial Technology has established financial technology business cooperation with 69 financial institutions, and is in close negotiation with another 70 institutions;
03 | AI innovation creates inexhaustible kinetic energy, focusing on long-term value
Looking at the semi-annual reports of various financial technology listed companies, we found that in addition to the strategy of moving up the customer base, they also mentioned two keywords in unison, namely technological innovation and long-termism.
Among them, technological innovation is the password for the survival of financial technology companies, and its effectiveness has been continuously confirmed. With the help of digital technology innovation, they have not only improved the quality and efficiency of their business and achieved steady development, but also further explored a new growth curve and empowered long-term growth.
For example, Jianpu Technology mentioned that business growth and loss narrowed in the first half of the year, both "benefited from the diversification strategy and continuous product innovation."
Jianpu Technology said that as a digital platform driven by AI technology, the company continues to empower the digital transformation of governments, financial institutions and other partners, and will continue to promote the deep integration of artificial intelligence and various financial scenarios in the future, and continue to innovate and iterate digital inclusiveness Financial products and services have become the backbone of the digital transformation of financial institutions.
In the context of the deep integration of "AIGC+Finance", various companies are still exploring the use of automated modeling, intelligent auditing and other methods to improve business efficiency, and continue to tap the value potential of data in the financial field.
In the second quarter, Qifu Technology built a small and micro user identification and industry reasoning framework with deep learning models and large language models. Among them, the overall AUC of the small and micro identification model reached above 0.9, and the model additionally identified 4.5 million small and micro users such as part-time jobs and family micro and small businesses, which increased the scale of identified small and micro users by 25%.
During the same period, Jiayin Jinke continued to make efforts in technological innovation. Up to now, GPT business assistance has been put into development or use in Jiayin Jinke's three business scenarios, that is, assisting seat operations to improve efficiency and quality, real-time risk analysis and early warning, and internal approvalThe ChatGpt interface has been self-developed and built Jiayin GPT Lab and so on.
In July 2023, Bairong Yunchuang upgraded its own AI large-scale model BR-LLM. Its self-built MaaS cloud platform is safe and reliable, and is widely used in credit, insurance, wealth and other industries.
In addition to increasing investment in science and technology, listed companies will also focus more on long-term value exploration such as social responsibility, helping the real and micro, and consumer protection.
For example, in the second quarter, Xiaoying Technology officially released the "Corporate Social Responsibility Report 2022", which concentratedly shows that since its establishment, the company has deeply explored "the beauty of technology empowering finance to achieve goodness", allowing technology to serve finance and finance to serve entities The economy and the vast number of new citizens have interpreted the mission of "responsible finance" with practical actions.
At the same time, Xiaoying Technology, which has just passed its eighth anniversary, also released a series of user stories of "Light of the City·Light Up a Better Life". , becoming a "link of light" for small and micro enterprises and financial institutions to connect with each other.
Lexin Pratt & Whitney, an ecological business rooted in offline, helps the development of the real economy by alleviating the most prominent financial problems of small and micro enterprises. As of the end of May 2023, in the past year, Lexin Pratt & Whitney has helped hundreds of thousands of small and micro enterprises and individual industrial and commercial households through the "Small Store Fireworks Plan", covering more than 300 cities in 30 provinces, municipalities and autonomous regions across the country.
It is also worth noting that since 2023, consumer protection has become the focus of the industry. Lexin, Qifu Technology, Jiayin Jinke, Xinye Technology, Yiren Jinke and other companies have successively introduced a number of measures to combat illegal production, and are committed to creating a safe financial consumption environment and promoting the health and sustainability of consumer finance and small and micro financial markets develop.