Core Viewpoint - The implementation of the new regulations on internet lending by commercial banks has prompted listed fintech companies to proactively adjust their business structures, leading to a mixed performance in their third-quarter results as they seek new growth points to cope with regulatory challenges [1][2][4]. Business Adjustments and Performance - Listed fintech companies have begun to shrink high-risk matching business scales and deepen AI applications in response to the new lending regulations [1][4]. - Qifu Technology reported a 20.36% year-on-year decline in net profit to 1.433 billion yuan, despite a 19.12% increase in revenue to 5.206 billion yuan [4]. - Xinye Technology achieved a 6.43% year-on-year revenue growth to 3.487 billion yuan and a 2.66% increase in net profit to 641 million yuan [5]. - Yirendai's total revenue grew by 5% to 1.555 billion yuan, while net profit decreased by 10.64% [6]. - Jianyin Technology saw a 39.64% increase in net profit to 377 million yuan [5]. - Lexin's net profit surged by 68.39% to 521 million yuan, benefiting from flexible business adjustments [5]. Impact of New Regulations - The new lending regulations are expected to have a more pronounced impact on the performance of listed fintech companies in the fourth quarter, with anticipated declines in earnings [2][7]. - Industry experts suggest that the regulations will concentrate resources among compliant leading institutions, while smaller firms face rising compliance costs and narrowing cooperation channels [2][7]. AI Application and Efficiency - Companies are increasingly leveraging AI in customer service, risk control, and automated approvals to enhance efficiency and reduce costs [9][10]. - Qifu Technology reported a significant increase in its AI-driven financial technology output, with a 218% quarter-on-quarter growth in its subsidiary's business [9]. - Lexin's self-developed AI model improved user demand recognition accuracy by over 20% [10]. - Yirendai's AI strategy has led to a substantial increase in transaction amounts and borrower service numbers [10][11]. Overseas Market Expansion - In response to stricter domestic regulations, fintech companies are intensifying their overseas market strategies to seek diversified revenue growth [13][14]. - Xinye Technology's international business revenue reached 25% of total revenue, with significant growth in loan balances in Indonesia and the Philippines [13][14]. - Yirendai is also expanding its overseas presence, with expectations of international revenue contributing 4% by 2025 and over 10% by 2026 [14][15].

Core Viewpoint - The consumer finance industry has entered a new cycle this year, with regulatory-driven structural adjustments expected to reshape the market dynamics, potentially leading to a recovery similar to the 2017-2020 period [2][10]. Group 1: Regulatory Impact - The current round of regulation aims to refine the industry by shifting from a high-risk, high-interest model to a more refined approach focused on risk control, funding negotiation power, and technological capabilities [2]. - The "loan withdrawal effect" is evident, with companies like Qifu Technology experiencing increased overdue rates and decreased repayment rates, indicating a passive clearing of high-risk clients rather than a decline in new business quality [3]. - Qifu Technology has prepared for this adjustment, increasing its risk provisions and maintaining a high provision coverage ratio, while also seeing a significant reduction in new loan issuance from high-priced markets [4]. Group 2: Industry Restructuring - The regulatory environment is leading to a reduction in competitive pressure, allowing platforms to target higher-value customers more effectively, resulting in a decrease in customer acquisition costs [5]. - As the issue of shared debt improves, risk costs are expected to decline, enhancing customer conversion rates and long-term user value, with management indicating a more favorable competitive environment in the future [5]. - Historical patterns suggest that profitability may strengthen before stock prices respond, similar to trends observed from 2017 to 2020 [5]. Group 3: AI as a Growth Engine - Qifu Technology is leveraging AI to enhance its foundational capabilities, focusing on data acquisition, risk identification, and compliance, which are critical for future customer service [7]. - The company has completed numerous iterations of risk models, utilizing AI to dynamically assess customer repayment intentions, contributing to improved risk indicators [7]. - Qifu Technology is positioning itself as an AI infrastructure provider for financial institutions, with significant growth in its technology-enabled lending volume [8][9]. Conclusion - The current performance dip in the industry is viewed as an opportunity, as long as the underlying industry logic remains intact and the company maintains its advantages in funding, risk control, and AI capabilities [10].

Core Insights - QFIN Technology (奇富科技) continues to enhance its "AI + Finance" strategy, significantly increasing investments in AI, which has led to improved user experience and business vitality [1] - The company connected with 165 financial institutions, providing digital credit services to over 60 million users, facilitating loan amounts of 84.6 billion RMB, a year-on-year increase of approximately 16% [1] - QFIN Technology's subsidiary, QFIN Digital Technology (奇富数科), achieved a business scale growth of 150% year-on-year in the second quarter [1] AI-Driven Risk Management - QFIN Technology showcased a range of intelligent products at industry forums, focusing on risk control, customer acquisition, operations, and compliance, gaining significant attention [2] - The AI algorithms improved key performance indicators in risk assessment models, enhancing the precision of the risk control system [2] - The company developed a comprehensive risk assessment model that significantly increased the coverage and accuracy of its knowledge graph [3] Strategic Investments in AI - The company accelerated its strategic investments in AI, increasing the workforce for algorithm and intelligent agent development by over 80% compared to the previous year [4] - QFIN Technology's voice team achieved recognition at major conferences, establishing itself among the top tier of global voice technology research [4] - The subsidiary QFIN Digital Technology is focusing on creating intelligent products tailored for financial institutions, including AI-based roles such as AI Approval Officer and AI Compliance Officer [4][5] Product Development and Market Expansion - The FocusPRO digital inclusive credit solution is evolving into a more intelligent credit super agent, enhancing the capabilities of banking partners [6] - The company has established joint laboratories with multiple banks to test and deploy intelligent agent applications in critical areas like credit approval and risk management [6] - QFIN Technology's lending volume through fintech solutions saw a significant year-on-year growth of approximately 150% [7] Social Responsibility and Innovation - QFIN Technology is committed to social responsibility, focusing on financial security, ethical technology development, and public welfare initiatives [8] - The company launched innovative projects to support rural industries and employment, including a job service feature that aggregates real-time recruitment information [9] - The CEO emphasized the transformative role of AI in reshaping financial business models and the company's commitment to expanding its capabilities in financial services [9]