Recently, mutual financial listed companies have gradually announced their fourth quarter and 2018 financial reports, including Lexin (NASDAQ: LX), Paipaidai (NYSE: PPDF), Yirendai (NYSE: YRD), Xiaoxiao Ying Technology (NYSE: Xiaoying Technology focuses on the field of credit card reimbursement, Xiaoying Card Loan is the largest business segment; Paipaidai and Yirendai focus on personal credit loans. The operating models and operating capabilities of different battlefields are also different. In 2018, who will be the biggest winner in the field of mutual finance?

1. Profit Analysis

Financial reports show that in 2018, the loan volumes of the four companies Lexin, Paipaidai, Yirendai, and Xiaoying Technology were 66.1 billion yuan and 6.15 billion yuan, respectively. 100 million yuan, 38.6 billion yuan, and 36.9 billion yuan; in 2018, the revenue of the four companies all showed varying degrees of growth year-on-year; except for the net profit of Yirendai, which declined compared with last year, the net profits of the other three companies also showed varying degrees of year-on-year growth. increase.

Core financial data statistics of four listed companies: Lexin, Paipaidai, Yirendai and Xiaoying Technology

Data source: Lexin, Paipaidai, Yirendai and Xiaoying Technology Science and technology financial report, compiled by the Big Data Research Institute

From the perspective of revenue, Lexin’s revenue in 2018 was the largest at 7.6 billion yuan, which was twice the revenue of Xiaoying Technology. However, in 2018 Xiaoying Technology’s revenue has grown rapidly, with a year-on-year increase of 98.1%, which is much higher than Lexin, Paipaidai and Yirendai. The company with the smallest revenue growth rate was Yirendai, whose net revenue in 2018 only increased 1% year-on-year to 5.62 billion yuan.

From the perspective of net profit, Paipaidai had the largest net profit in 2018, which was 2.469 billion yuan, which was three times the net profit of Xiaoying Technology. The loan volume is nearly double that of Yirendai with the same business model, but the net profit of Paipaidai is twice that of Yirendai. Yirendai's net profit fell 30% year-on-year to 966 million yuan, and Lexin's net profit increased seven times from 2017 to 1.98 billion.

In terms of profit margin, Paipaidai was the most profitable in 2018, with a profit margin of 57.58%. Paipaidai said, “Paipaidai’s loan assistance business has made great progress in the fourth quarter of 2018. The amount of loan financing in the fourth quarter of 2018 was 17.617 billion yuan, an increase of 19.2% from the third quarter and an increase of 0.3% from the same period in 2017. Financial technology revenue has become the fastest growing part of Lexin. ”

2. Cost analysis

Cost analysis of four listed companies: Lexin, Paipaidai, Yirendai, and Xiaoying Technology.

Data source: Lexin, Paipaidai, Yirendai, Xiaoying Technology financial reports, compiled by the Big Data Research Institute

(1) Lexin’s operating expenses are low and it focuses on R&D investment

In 2018, the total operating cost of Lexin, which focuses on consumption installment scenarios, was the smallest among the four companies, only 1.19 billion yuan, a year-on-year increase of 41% from 2017. The main reason for the increase in operating costs is Lexin's further investment in research and development. In 2018, R&D expenses reached 320 million, an increase of 36.1% from 235 million in the same period last year, accounting for 26.9% of Lexin's operating expenses.

(2) The growth rate of Paipaidai’s operating costs was only 6.51%, and marketing expenses were reduced

In 2018, the growth rate of Paipaidai’s total operating costs was the smallest, growing only 6.51% to 2.504 billion yuan. The financial report shows that Paipaidai’s marketing expenses in the fourth quarter of 2018 were 180.9 million yuan, a decrease of 24.2% compared with the same period in 2017; the marketing expenses for the whole year of 2018 were RMB 710.8 million, compared with 788.3 million yuan in 2017 Compared with the decrease of 9.8%, online customer acquisition and other related expenses have also dropped significantly.

(3) Yirendai’s operating costs are relatively high and began to decline in the fourth quarter of 2018

In 2018, the absolute value of Yirendai’s total operating costs was the largest at 4.783 billion yuan, with a far higher growth rate. Higher than other companies, operating costs increased by 76.26% to 2.265 billion yuan. Marketing expenses in 2018 were 2.526 billion yuan, accounting for nearly half of operating costs.

However, Yirendai’s marketing expenses decreased to 499 million yuan in the fourth quarter of 2018, compared with 990 million yuan in the same period of 2017. Sales expenses in this quarter accounted for 6.0% of the current borrowing amount, a decrease from 7.4% in the same period last year.

(4) Xiaoying Technology has placed more advertisements, and its marketing expenses increased by 168.62%

The financial report shows that Xiaoying Technology’s operating costs increased by 76.26% to 2.265 billion yuan in 2018. Due to advertising, Xiaoying Technology's sales and marketing expenses in 2018 increased from RMB 76.58 million in the same period in 2017 to RMB 205.7 million, an increase of 168.63%. The sales and marketing expenses in the fourth quarter of 2018 increased from RMB 76.58 million in the same period in 2017. RMB 27.66 million increased to RMB 52.44 million, an increase of 89.6%. Before and after its listing in 2018, Xiaoying Technology signed a contract with the NBA and sponsored the NBA China Game.

3. Overdue rate analysis

Overdue rate statistics of four listed companies, Paipaidai, Xiaoying Technology, Lexin and Yirendai

Data source: Paipaidai Financial reports of Paipaidai, Xiaoying Technology, Lexin, and Yirendai, compiled by the Big Data Research Institute

(1) The overdue rates of Paipaidai and Lexin declined

As of the end of 2018, Paipaidai and Lexin’s overdue rates declined The overdue rates of 15-29 days, 30-59 days, and 60-89 days were 0.92%, 1.63%, and 1.41% respectively, which were 0.11, 0.14, and 0.08 percentage points lower than at the end of the third quarter respectively; Said, "Thanks to the widespread application of technologies such as "Smart Bull" collection robots in post-lending, the overdue rate of Paipaidai has been at a low level in the industry for a long time."

Lexin's M3+ overdue rate at the end of 2018 It was 1.14%, down 0.25% month-on-month.

(2) The growth of Yirendai’s loan volume has slowed down, resulting in an increase in some overdue rates

The financial report shows that as of December 31, 2018, Yirendai’s 30-59 days and 60- The 89-day overdue rates also increased slightly to 1.9% and 1.8% respectively. Yirendai explained, "The increase in the overdue rate is partly due to the slowdown in loan volume growth and the continued changes in the company's asset credit performance."

(3) Behind the beautiful revenue, Xiaoying Technology's overdue rate Recovery

Behind Xiaoying Technology’s impressive revenue growth data in 2018, the loan delinquency rate continues to rise. The financial report shows that in 2018, Xiaoying Technology’s loan overdue rates of 31-90 days and 91-180 days rose to 3.54% and 5.28% respectively from 1.47% and 1.35% in 2017. The loan overdue rates of more than 90 days were higher than those of other companies. Several companies, however, from the perspective of credit card reimbursement, the overdue rate is relatively not very high. In 2016, Xiaoying Technology’s overdue rates were 0.36% for 31-90 days and 0.38% for 91-180 days.

(4) The overdue rate tests the platform’s risk control capabilities and is also related to the asset scenario

Ai Yawen, an analyst at the Big Data Research Institute, believes that the overdue rate not only tests the platform’s risk In addition to control capabilities and R&D investment, the level of overdue rates is also related to consumption scenarios. For scenario assets such as e-commerce installments, information such as consumer demand and capital flow is clear and can be judged. The authenticity of the loan purpose can effectively prevent fraud. The non-performing rate of e-commerce installments is relatively low compared to other assets.

Xiaoying Technology’s prospectus has disclosed its borrowing interest rate. In the first half of 2018, the average borrowing interest rate of Xiaoying Card Loans was 9.98%-36.00%, and the upper limit of the interest rate was higher than that of Xiaoying Youdai (11.47%- 21.61%), and Xiaoying Mortgage (10.56%-15.30%). The latest Xiaoying Technology financial report explains the revenue. The loan service rate of Xiaoying Card Loan is higher than the company's other products. In 2018, the proportion of Xiaoying Card Loan revenue increased significantly, resulting in Xiaoying Technology's revenue growth.

In addition, the financial reports of these mutual financial companies also revealed that listed financial technology companies are working hard to facilitate loan business. The financial report shows that Lexin’s financial technology revenue from serving various financial institutions in 2018 has reached 2.08 billion, a significant increase of 448% compared with 2017. In this regard, Lexin said that in the fourth quarter, it further expanded the number of financial partners and increased the scope and intensity of cooperation. Among them, nearly 70% of new loans came from financial institutions.

The loan assistance business of Paipaidai has made great progress in the fourth quarter of 2018. The loan matching amount in the fourth quarter of 2018 was 17.617 billion yuan, an increase of 19.2% compared with the third quarter and an increase of 0.3% compared with the same period in 2017. The loan matching amount throughout the year The amount reached 61.498 billion yuan.