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Qifu Technology Announces First Quarter 2025 Unaudited Financial Results
QFINQFIN(QFIN) GlobeNewswire·2025-05-19 22:00

Core Viewpoint - Qifu Technology reported strong financial results for Q1 2025, demonstrating resilience amid macroeconomic challenges, with significant growth in user activity and loan facilitation volume [4][5][35]. Business Highlights - As of March 31, 2025, Qifu Technology connected 163 financial institutional partners and 268.2 million consumers, marking an 11.1% increase from 241.4 million a year ago [4]. - The number of cumulative users with approved credit lines reached 58.4 million, up 11.6% from 52.3 million a year ago [4]. - Cumulative borrowers with successful drawdown totaled 35.5 million, reflecting a 13.8% increase from 31.2 million a year ago [4]. - Financial institutional partners originated 24,401,374 loans through the platform in Q1 2025 [4]. Financial Highlights - Total net revenue for Q1 2025 was RMB 4,690.7 million (US646.4million),comparedtoRMB4,153.2millioninthesameperiodof2024[5][9].−NetincomewasRMB1,796.6million(US 646.4 million), compared to RMB 4,153.2 million in the same period of 2024 [5][9]. - Net income was RMB 1,796.6 million (US 247.6 million), an increase from RMB 1,160.1 million in Q1 2024 [28]. - Non-GAAP net income for the quarter was RMB 1,926.2 million (US265.4million),comparedtoRMB1,204.8millioninthesameperiodof2024[28].−Theweightedaveragecontractualtenorofloansoriginatedwasapproximately10.17months,slightlyupfrom10.10monthsinQ12024[4].RevenueBreakdown−RevenuefromCreditDrivenServiceswasRMB3,110.9million(US 265.4 million), compared to RMB 1,204.8 million in the same period of 2024 [28]. - The weighted average contractual tenor of loans originated was approximately 10.17 months, slightly up from 10.10 months in Q1 2024 [4]. Revenue Breakdown - Revenue from Credit Driven Services was RMB 3,110.9 million (US 428.7 million), up from RMB 3,016.3 million in Q1 2024 [9]. - Loan facilitation and servicing fees under the capital-heavy model were RMB 429.8 million (US59.2million),significantlyhigherthanRMB243.8millioninthesameperiodof2024[10].−FinancingincomeincreasedtoRMB1,817.2million(US 59.2 million), significantly higher than RMB 243.8 million in the same period of 2024 [10]. - Financing income increased to RMB 1,817.2 million (US 250.4 million) from RMB 1,535.0 million in Q1 2024 [11]. - Revenue from releasing of guarantee liabilities decreased to RMB 778.2 million (US107.2million)fromRMB1,166.0millioninthesameperiodof2024[12].OperatingCostsandExpenses−TotaloperatingcostsandexpenseswereRMB2,716.0million(US 107.2 million) from RMB 1,166.0 million in the same period of 2024 [12]. Operating Costs and Expenses - Total operating costs and expenses were RMB 2,716.0 million (US 374.3 million), down from RMB 2,789.1 million in Q1 2024 [17]. - Sales and marketing expenses rose to RMB 591.5 million (US81.5million)fromRMB415.6millioninthesameperiodof2024,reflectingincreasedmarketingefforts[19].−GeneralandadministrativeexpensesincreasedtoRMB196.5million(US 81.5 million) from RMB 415.6 million in the same period of 2024, reflecting increased marketing efforts [19]. - General and administrative expenses increased to RMB 196.5 million (US 27.1 million) from RMB 106.4 million in Q1 2024, primarily due to higher share-based compensations [20]. Share Repurchase and Financial Position - The company completed a US690millionconvertiblenotesoffering,providingresourcestoacceleratesharerepurchaseprograms[8].−AsofMay19,2025,approximately4.4millionADSswererepurchasedforaboutUS 690 million convertible notes offering, providing resources to accelerate share repurchase programs [8]. - As of May 19, 2025, approximately 4.4 million ADSs were repurchased for about US 178 million under the 2025 Share Repurchase Plan [33]. - The company expects to use remaining net proceeds from the convertible notes offering for further share repurchases [34]. Business Outlook - For Q2 2025, the company anticipates net income between RMB 1.65 billion and RMB 1.75 billion, representing a year-on-year growth of 24% to 31% [35].