The financial landscape for listed lending platforms has seen a remarkable shift following a challenging first half of the year. As companies report their third-quarter results, there is a noticeable divergence in performance across the sector. In particular, a report by TiMedia App highlights the results of several pivotal players in the market, such as Qifutec, formerly known as "360 Financial", Xinye Technology, Xiaoying Technology, Yirun Zhike, formerly "Yirun Jinke", Jiayin Technology, and Lexin. This analysis provides insight into emerging trends within the lending sector and the broader consumer credit market. The performance divergence in Q3 is quite distinct, particularly regarding revenue increases contrasted with varying net profit results. Leading the industry, Qifutec maintained its position with a total revenue of 3.959 billion yuan, marking a modest year-on-year growth of 3.58%. However, its net profit soared by an impressive 57.86%, reaching 1.803 billion yuan. Close behind is Lexin, which achieved a revenue of 3.66 billion yuan in Q3, a 4.40% increase compared to the previous year. Nonetheless, its net profit experienced a decline of 16.48%. On a more positive note, Lexin's performance showed signs of recovery, with a 36.6% quarter-on-quarter growth. Xinye Technology followed suit with a revenue of 3.276 billion yuan and a 2.46% year-on-year increase, while simultaneously reporting a net profit growth of 10.18%, amounting to 624 million yuan. In a remarkable turn, Xiaoying Technology emerged as the fastest-growing platform in terms of revenue, boasting an impressive 18.58% year-on-year growth that brought its total revenue to 1.584 billion yuan, complemented by an 8.25% increase in net profit, reaching 376 million yuan. In stark contrast, Yirun Zhike reported a 12.30% year-on-year revenue growth to 1.479 billion yuan, yet its net profit plummeted by nearly 35% to 355 million yuan. This decline was attributed to a significant rise in lending amounts under a risk-bearing model that necessitated higher provisions. The most severe struggles were evident in Jiayin Technology, which faced a dual hit, with a year-on-year revenue decline of 1.46% and a net profit dip of 16.73%. Despite the mixed bag of quarterly results, there were some positive shifts in asset quality, with most companies reporting improvements in overdue rates. Xiaoying Technology showed the most significant quarterly improvement, although in a broader industry perspective, overdue rates remained relatively high. Qifutec saw its overdue rates for loans exceeding 90 days drop notably to 2.72% in the third quarter. As for lending scale, it generally contracted across many platforms, with leading entities like Qifutec and Lexin reporting significant year-on-year reductions in new loans. Xinye Technology maintained a steady rate. This raises a pertinent question: How can we reconcile the reduction in lending with the notable improvements in net profits across many platforms? The answer lies primarily in falling costs. In the case of Qifutec, the average customer acquisition cost shrank by 7.4% quarter-on-quarter and 13.4% year-on-year to 265 yuan per customer in Q3. Additionally, funding costs also decreased, with Qifutec reporting a 30 basis points decrease in funding costs compared to the previous quarter. Remarkably, in Q3, the issuance scale of Asset-Backed Securities (ABS) reached 3.5 billion yuan, with issuance costs plummeting by over 50 basis points. Lexin experienced a similar phenomenon, with its funding costs dropping by a staggering 98 basis points to a historical low of 4.28%. In terms of expansion, Jiayin Technology and Yirun Zhike stood out. Jiayin Technology achieved a 10.30% year-on-year growth in new loans, totaling 26.7 billion yuan, while Yirun Zhike recorded a remarkable 36.73% increase, yet remained the smallest player with a total of 13.4 billion yuan by the end of Q3. Yirun Zhike's investment ramped up significantly during this quarter, with sales and marketing expenditures ballooning by 71.5% year-on-year to 340 million yuan, while R&D expenses surged almost fourfold to 150 million yuan; management costs also saw a near-50% increase, reaching 80.1 million yuan. Similarly, Jiayin Technology's sales and marketing costs reached 550 million yuan, a 34.9% increase compared to the previous year. Despite the overall shrinking of new loans, a general recovery in quarter-on-quarter data was evident across most platforms. Apart from Lexin, which remained steady with Q2 offerings, the other six companies reported varying degrees of growth from Q2 to Q3. One of the new narratives in this sector is the expansion into international markets. Several platforms disclosed their international business progress during Q3 earnings reports. Notably, Xinye Technology indicated that nearly 20% of their revenue was sourced from international operations, with a continual increase in new transaction users that surpassed those in the domestic market for two consecutive quarters. Furthermore, they secured a diversified financial license regulated by Indonesia's Financial Services Authority (OJK). Recently, Xinye Technology also obtained a non-banking financial company license in Pakistan, and their fintech platform has since gone live in the country. CEO Li Tiezhen mentioned that in both Indonesia and the Philippines, the number of new borrowers exceeded those in China for the second consecutive quarter, reaching a remarkable 67,100, a 59.5% annual growth. Moreover, the transaction volume and outstanding loan balance in international markets grew by 222.7% and 23.1% year-on-year, respectively, reaching 2.7 billion yuan and 1.6 billion yuan. Lexin also reported bolstered efforts in the Southeast Asian market alongside its operations in Mexico. Throughout Q3, the number of transaction users in Indonesia surged by 31% quarter-on-quarter, with transaction volumes increasing by 18%. Earlier in Q2, Lexin's loan disbursement scale in Mexico grew by 61%, while revenue rose 113% sequentially. Jiayin Technology further affirmed their progress in Indonesia, noting a continued rise in loan issuance and new registered users in collaboration with local partners when compared to Q2. Meanwhile, Qifutec has taken a unique approach by emphasizing advancements in large model technology. CEO Wu Haisheng stated, "Over recent quarters, the large-scale application of advanced technologies like large models has become a core driver of Qifutec's stable growth and improved user experience. We will persistently invest in financial model technology, prioritizing the alignment of financial models with business operations, to create new commercial value and better serve user needs." In addition to international expansions, several platforms have disclosed ongoing efforts to enhance shareholder returns. For instance, Lexin announced an increase in its dividend payout, shifting from 20% to 25% of net profits starting in 2025. Simultaneously, Qifutec informed that, as of April 1, 2024, they will have repurchased roughly 13.7 million American Depository Shares, totaling approximately 298 million USD, with plans to repurchase up to 450 million USD worth of ADS or Class A common stock in the subsequent 12 months starting January 1, 2025. Furthermore, Xinye Technology shared that they allocated 81.1 million USD for share buybacks across the first three quarters of the year, reflecting a 23% increase compared to the previous year.