Exhibit 99.1 Qifu Technology Announces Fourth Quarter and Full Year 2024 Unaudited Financial Results and Raises Semi-Annual Dividend Shanghai, China, March 16, 2025, Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) ("Qifu Technology" or the "Company"), a leading AI-empowered Credit-Tech platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024 and raised semi- annual dividend. Fourth Quarter 2024 Business Highlights 1 Refers to cumulative ...

Corporate Structure and Compliance - As of December 31, 2024, the company has issued and outstanding 283,981,320 shares of Class A common stock with a par value of $0.00001 per share[5]. - The company is classified as a large accelerated filer under the Securities Exchange Act[14]. - The financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP)[14]. - The company has complied with all reporting requirements under the Securities Exchange Act for the past 12 months[11]. - The company is registered with the SEC under Form 20-F for the fiscal year ending December 31, 2024[2]. - The company operates primarily from its headquarters located at Lujiazui Financial Service Plaza, 1217 Dongfang Road, Shanghai, China[3]. - The company has not reported any significant amendments to the rights of security holders or the use of proceeds from securities offerings[13]. - The company has not identified any unresolved staff comments in the past five years[19]. - The company has a commitment to maintaining effective internal controls over financial reporting as per the Sarbanes-Oxley Act[14]. - The company has not indicated any errors in previously issued financial statements that would require restatement[14]. Financial Performance and Projections - The company reported a significant increase in loan facilitation scale, with a total loan principal amount facilitated reaching $X million, reflecting a Y% growth compared to the previous period[26]. - The 180-day+ historical overdue rate was reported at Z%, indicating a decrease from the previous quarter, showcasing improved credit performance[24]. - The company anticipates a robust growth trajectory in the Chinese credit technology industry, projecting an annual growth rate of A% over the next five years[29]. - The number of users with approved credit limits increased by B%, highlighting the company's expanding customer base and market penetration[26]. - The company is focusing on enhancing its technology solutions, with investments in new product development expected to reach $C million in the upcoming fiscal year[29]. - The 30-day recovery rate improved to D%, reflecting effective collection strategies and customer engagement initiatives[24]. - Future guidance indicates an expected revenue growth of G% for the next fiscal year, driven by increased demand for credit technology solutions[29]. - The company reported a total operating revenue of RMB 16,290,027 for 2023, with a significant contribution from credit-driven services[59]. - The company expects net income for 2024 to reach RMB 6,248,116, indicating a projected growth of 46.1% from 2023[61]. Regulatory and Compliance Risks - There is significant uncertainty regarding the enforceability of these contractual arrangements under Chinese law, which may incur substantial costs for the company[38]. - The company faces various risks related to conducting business in China, including compliance with complex and evolving regulations, which could adversely affect operations and the value of American depositary shares[41]. - The company is subject to potential penalties or forced relinquishment of interests if found in violation of existing or future Chinese laws or regulations regarding foreign investment[40]. - The company’s ability to continue offering securities to investors may be severely restricted or completely hindered due to regulatory risks[41]. - The company relies on its VIE structure to conduct business in China, which may not be as effective as direct ownership in providing operational control[39]. - The company’s financial performance may be significantly impacted by the enforceability of its contractual arrangements with VIEs and their subsidiaries[40]. - The company’s auditor may not be subject to PCAOB inspections, which could lead to trading restrictions on its shares in the U.S. if certain conditions are met[41]. - The company is listed as a committee identified issuer under HFCAA as of December 15, 2022, following PCAOB's removal of mainland China and Hong Kong from its list of jurisdictions where it cannot inspect or investigate registered public accounting firms[42]. - The company may face significant restrictions on its ability to issue or continue issuing securities to foreign investors due to the Chinese government's regulatory powers[43]. Financial Position and Capital Management - The total paid-in capital, capital reserves, and statutory reserves of the company's Chinese subsidiaries and variable interest entities are RMB 14,436.1 million, RMB 16,233.7 million, and RMB 17,073.2 million respectively as of December 31 for the years 2022, 2023, and 2024[49]. - The company’s ability to pay dividends and settle debts may depend on the dividends paid by its Chinese subsidiaries and the service fees paid by variable interest entities[46]. - The company must comply with several restrictions when its Chinese subsidiaries and variable interest entities pay dividends or transfer net assets[49]. - The company’s total liabilities and equity amounted to RMB 45,818,572 thousand in 2023, reflecting a 13.1% increase from RMB 40,343,170 thousand in 2022[63]. - The company reported a net cash outflow from investing activities of RMB (11,147,789) thousand in 2023, compared to RMB (7,355,975) thousand in 2022, indicating increased investment expenditures[66]. Operational and Market Strategies - The company plans to expand its market presence through strategic partnerships, aiming to increase its market share by E% within the next year[29]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and competitive positioning in the market[29]. - The company plans to declare and distribute regular cash dividends equivalent to approximately 20% to 30% of the after-tax net profit for the first half of 2023, subject to operational and financial conditions[56]. - The company is focusing on strategic acquisitions to enhance its competitive position in the market[72]. - The company plans to continue investing resources in customer acquisition and developing a diversified loan product portfolio to meet consumer and small business credit needs[133]. Credit Risk and Management - The company has adopted a prudent approach to manage credit risk by continuously optimizing its asset and loan portfolios, focusing on improving business quality[88]. - The company faces credit risk related to accounts receivable, contract assets, financial assets receivable, and loans, which could significantly impact its business and financial condition if overdue rates rise substantially[155]. - The company’s ability to recover overdue loans is critical; any impairment in collection methods could lead to a decline in recovery rates[163]. - The company must ensure high-quality platform experiences and effective user complaint management to enhance brand reputation[168]. Technology and Data Security - The company is focused on enhancing its proprietary credit assessment and analysis technology to improve effectiveness, accuracy, and efficiency[86]. - The company collects and processes sensitive user data, facing inherent risks in protecting this information; any failure to safeguard user data could lead to severe reputational damage and operational challenges[121]. - Compliance with evolving data protection regulations is increasingly scrutinized, which may raise compliance costs and expose the company to additional risks and challenges[123]. - The company has implemented internal measures to ensure compliance with data security and personal information protection laws[127]. Strategic Partnerships and Funding - The company has established a framework cooperation agreement with 360 Group, covering terms related to cloud services, user traffic support, and trademark licensing[135]. - The company faces potential risks if unable to maintain cooperation with 360 Group, which may affect customer acquisition costs and efficiency[136]. - The company’s reliance on a few financial institution partners poses a risk to its loan facilitation capabilities if any partner decides to withdraw or change terms unfavorably[142]. - The company is exploring other financing initiatives, including issuing asset-backed securities, to diversify its funding sources[145]. Regulatory Compliance and Challenges - The company faces significant operational risks related to employee and third-party misconduct, which could result in regulatory actions and financial liabilities[170]. - The company must obtain and maintain necessary telecommunications business licenses in China, as failure to do so could severely impact its business operations and financial status[177]. - The company faces potential fines of up to RMB 1 million or five times illegal gains if found operating without necessary VATS licenses, which could significantly impact its business and financial condition[178]. - The company is closely monitoring regulatory developments to ensure compliance and may need to adjust its operations accordingly[144]. Strategic Investments and Acquisitions - The company may evaluate and consider strategic investments, mergers, acquisitions, or alliances to further enhance the value of its platform[198]. - Risks associated with strategic investments or acquisitions include difficulties in integrating acquired operations, personnel, systems, and technologies[199]. - The company may not proceed with any investments or acquisitions, and any future endeavors may not yield expected benefits or sufficient revenue to offset acquisition costs[200].

Financial Metrics and Estimates - As of December 31, 2024, the allowance for loans receivable is RMB2,694.4 million (US$369.1 million) and the outstanding balance for contingent guarantee liability is RMB1,820.4 million (US$249.4 million) [679] - A 0.5 percentage point increase/decrease in the overall estimated default rate would result in an increase/decrease of RMB358.6 million (US$49.1 million) for allowance for loans receivable and RMB335.4 million (US$45.9 million) for contingent guarantee liability [679] - If there is a one percentage point increase/decrease in the portion of total transaction price allocated to loan facilitation services, the revenue from loan facilitation services would increase/decrease by approximately RMB23.0 million (US$3.2 million) for loans facilitated during the year ended December 31, 2024 [676] - The fair value of stand ready guarantee liabilities is estimated using a discounted cash flow model based on expected net payouts, which is influenced by the estimated default rate of underlying loans [680] - Allowances for financial assets and contingent guarantee liability are driven by estimated default rates based on historical data and correlation factors such as CPI and delinquent loan collection rates [678] Revenue Recognition and Transaction Pricing - The company recognizes revenues from loan facilitation services at the time a loan is originated, while revenues from post-facilitation services are recognized on a straight-line basis over the term of the underlying loans [671] - The company applies significant management judgment in determining and allocating the transaction price, including estimation of variable consideration and standalone selling price of each performance obligation [672] - The total transaction price includes service fees chargeable from borrowers or partner financial institutions, which incorporates variable considerations such as prepayment risk and future default rates [673] - The estimate of prepayment risk of borrowers is based on historical information and current trends, which can significantly impact the total transaction price [675] Performance Metrics - The company reported a 180-day+ vintage delinquency rate, which is calculated as the total amount of principal for loans delinquent for more than 180 days minus recovered past due principal, divided by the total initial principal amount of loans facilitated in the fiscal quarter [14] - The 30-day collection rate was highlighted, indicating the percentage of principal repaid within one month among overdue loans as of a specified date [14] - The outstanding loan balance at the end of the period included the total principal outstanding for loans facilitated, excluding loans delinquent for more than 180 days [14] - The repeat borrower contribution was noted, with a percentage representing the principal amount of loans borrowed by repeat borrowers relative to total loan facilitation volume [14] Business Strategy and Market Outlook - The company emphasized its capital-light model, which involves technology-enabled loan facilitation services without bearing credit risk [14] - Future expectations include growth in the Credit-Tech industry in China, with anticipated demand for Credit-Tech products [20] - The company aims to strengthen relationships with borrowers and financial institution partners, which is crucial for future business development [20] - Competition in the industry was acknowledged as a factor that could impact the company's performance [20] - Government policies and regulations relating to the industry were mentioned as potential influences on business operations [20] - The company plans to continue monitoring evolving risk factors that may affect its financial condition and results of operations [18]

Financial Data and Key Metrics Changes - Total net revenue for Q4 was $4.48 billion, compared to $4.37 billion in Q3 and $4.25 billion a year ago, indicating a sequential increase [26] - Non-GAAP net income for Q4 increased by 71.5% year over year to RMB1.97 billion, with non-GAAP net income per diluted ADS surging 91.3% year over year to RMB13.7 [9][31] - Full year non-GAAP net income rose 44% year over year to reach an all-time high of RMB6.42 billion [9] - The company executed a $410 million share repurchase, buying back approximately 12% of its share count [10] Business Line Data and Key Metrics Changes - Revenue from credit-driven services (Capital Heavy) was $2.89 billion in Q4, down from $3.25 billion a year ago, primarily due to a decline in off-balance sheet loans [26] - Revenue from platform services (Capital Light) was $1.59 billion in Q4, up from $1.25 billion a year ago, driven by strong contributions from ICE and other value-added services [26] - The proportion of loan volume from the Capital Light segment increased by approximately 10 percentage points to 53% throughout 2024 [16] Market Data and Key Metrics Changes - The delinquency rate for 90 days was 2.09% in Q4, down from 2.7% in Q3, while the 30-day collection rate increased to 88.1% from 87.4% [29] - The company observed a 10% increase in loan application ratios in Q4 compared to Q3, indicating a recovery in credit demand [43] Company Strategy and Development Direction - The company plans to adopt a one core, two wings strategy, focusing on domestic credit as the core and technology solutions and international expansion as the wings [21][22] - The company aims to enhance its AI capabilities, with plans to build an AI agent platform to empower core lending processes [20] - The management emphasized a commitment to optimizing capital allocation and enhancing shareholder returns through share buybacks and dividends [23][24] Management Comments on Operating Environment and Future Outlook - Management noted improvements in user activities and credit demand since September 2024, with expectations for Q1 loan volume to grow by more than 10% year over year [43] - The company remains cautiously optimistic about 2025, expecting its core credit business to maintain high-quality development while expanding its technology solutions business [22] Other Important Information - The company achieved a record high ROE of 27.9% in 2024, significantly outperforming most financial services and Internet companies in China [10] - The company plans to ramp up ABS issuance in 2025, increasing the share of ABS in its funding mix [15] Q&A Session Summary Question: What areas are seeing the most potential for AI integration and what is the credit demand outlook for 2025? - Management highlighted significant improvements in AI applications, particularly in credit assessment and loan collection, and noted a 10% increase in loan application ratios in Q4 [39][43] Question: What are the drivers for the movement of early asset quality indicators in Q4? - The slight increase in day one delinquency and collection rates was attributed to an optimization in repayment reminder strategies, with overall risk levels remaining stable [48][50] Question: How does the new regulation impact the overall industry and the company? - Management expressed optimism about the regulatory environment, noting that the government's direction to boost consumption through consumer finance is encouraging [56][58] Question: What is the outlook for funding costs? - Funding costs have continued to decline, but management indicated limited room for further decline due to the current low levels [60][62] Question: How does the company plan to deliver value to shareholders? - The company aims to maintain a 70% payout ratio while prioritizing share buybacks, with a new $450 million buyback program in place [67][70]

Financial Performance - Total net revenue for 2024 reached RMB 17,165.7 million (USD 2,351.7 million), an increase from RMB 16,290.0 million in 2023[16]. - Net profit for 2024 was RMB 6,248.1 million (USD 856.0 million), compared to RMB 4,268.6 million in 2023, reflecting a significant growth[16]. - Non-GAAP net profit for 2024 was RMB 6,415.7 million (USD 879.0 million), up from RMB 4,454.2 million in 2023[16]. - Total net income for the three months ended December 31, 2024, reached RMB 4,482,252 thousand, a slight decrease of 0.3% compared to RMB 4,495,503 thousand in the same period of 2023[55]. - The net profit for the year ended December 31, 2024, was RMB 6,248,116 thousand, representing a 46.5% increase from RMB 4,268,577 thousand in 2023[58]. - The company reported a total revenue of RMB 17,165,656 thousand for the year ended December 31, 2024, an increase of 5.4% from RMB 16,290,027 thousand in 2023[55]. - The basic earnings per share for the year ended December 31, 2024, was RMB 21.02, compared to RMB 13.36 in 2023, reflecting a growth of 57.5%[55]. - The company reported a total operating income of RMB 7,528,570 thousand for the full year 2024, compared to RMB 4,856,964 thousand in 2023, indicating strong growth[62]. Loan and Credit Metrics - As of December 31, 2024, the platform has connected with 162 financial institution partners and 261.2 million potential credit-demand consumers, an increase of 11.0% from 235.4 million last year[9]. - The cumulative number of users with approved credit limits reached 56.9 million, up 11.8% from 50.9 million as of December 31, 2023[9]. - The total loan volume facilitated and initiated reached RMB 89,885 million, a 0.4% increase from RMB 89,561 million in the same period of 2023, and a 9.0% increase from RMB 82,436 million in the previous quarter[9]. - The outstanding loan balance as of December 31, 2024, was RMB 137,014 million, a decrease of 5.7% from RMB 145,270 million as of December 31, 2023, but an increase of 7.3% from RMB 127,727 million as of September 30, 2024[9]. - The 90-day+ delinquency rate for loans initiated by financial institutions was 2.09% as of December 31, 2024[9]. - The average contract term for loans initiated by financial institutions was approximately 10.00 months in Q4 2024, compared to 11.47 months in the same period of 2023[9]. - The loan volume under the light capital model, smart credit engine (ICE), and comprehensive technology solutions accounted for 53.2% of the total loan volume, increasing by 23.2% from RMB 38,798 million in the same period of 2023[9]. Cost Management and Expenses - The total operating costs and expenses for Q4 2024 were RMB 2,591.9 million (USD 355.1 million), down from RMB 3,215.9 million in Q4 2023[20]. - The company’s total operating costs and expenses were RMB 9,637.1 million (USD 1,320.3 million), down from RMB 11,433.1 million in 2023, indicating improved cost management[27]. - The total operating expenses for the year ended December 31, 2024, decreased to RMB 9,637,086 thousand from RMB 11,433,063 thousand in 2023, a reduction of 15.6%[55]. - General and administrative expenses amounted to RMB 449.5 million (USD 61.6 million), slightly up from RMB 421.1 million in 2023[29]. Cash Flow and Assets - Operating cash flow for 2024 reached a historical high of RMB 93.4 billion, supporting strategic initiatives and shareholder returns[16]. - Operating cash flow for the three months ended December 31, 2024, was RMB 3,051,606 thousand, up 29.7% from RMB 2,351,791 thousand in the same period of 2023[56]. - The company reported a total asset value of RMB 48,132,618 as of December 31, 2024, an increase from RMB 45,818,572 in 2023, representing a growth of approximately 6.8%[54]. - Cash and cash equivalents increased to RMB 4,452,416 in 2024 from RMB 4,177,890 in 2023, reflecting a growth of about 6.5%[54]. - The company’s cash and cash equivalents at the end of December 31, 2024, were RMB 6,805,800 thousand, down from RMB 7,558,997 thousand at the end of 2023[56]. Shareholder Returns and Dividends - The company plans to distribute a semi-annual dividend of USD 0.70 per ADS for the second half of 2024[40]. - The company has approved a share buyback plan with a total value of up to USD 350 million, with approximately 3.1 million ADS purchased at an average price of USD 34.5 per share[41]. Future Outlook and Strategy - The company expects to generate a net profit of RMB 1.75 billion to RMB 1.85 billion in Q1 2025, reflecting a year-on-year growth of 49% to 58%[42]. - The company plans to invest more resources into AI applications in credit scenarios, aiming for quality growth and innovation[15]. - The company’s strategy includes a focus on growth through partnerships and market expansion, with potential impacts from regulatory changes and market acceptance of its products[52]. - The company is focused on improving operational efficiency amid ongoing macroeconomic uncertainties[42]. Non-GAAP Measures - The company emphasized the importance of non-GAAP financial measures to avoid distortion from certain expenses included in GAAP results, enhancing understanding of past performance and future outlook[50]. - The company’s operating profit margin, calculated using non-GAAP measures, is expected to provide insights into business trends and operational performance[50]. - The company’s net profit attributable to shareholders, calculated using non-GAAP measures, is expected to provide practical information regarding operational performance[50].

Investment Rating - The report maintains a "Buy" rating for QFIN US and 3660 HK with target prices of $37.20 and HKD 143.40 respectively [9]. Core Insights - QFIN's 3Q24 performance exceeded expectations with revenue of RMB 4.37 billion, a quarter-on-quarter increase of 5.1% and a year-on-year increase of 2.1%. Net profit reached RMB 1.80 billion, reflecting a quarter-on-quarter increase of 30.6% and a year-on-year increase of 57.9% [3][4]. - The company announced a share repurchase plan of $450 million for 2025, indicating a commitment to shareholder returns [3]. - Loan quality has stabilized, with a decrease in overdue rates and an increase in loan disbursement volume, suggesting a potential return to normal operational strategies [3][5]. Financial Performance - In 3Q24, the loan disbursement volume was RMB 82.4 billion, marking a quarter-on-quarter increase of 13.1% and a year-on-year decrease of 14.9%. The loan balance was RMB 127.7 billion, with a quarter-on-quarter increase of 3.4% [4]. - The net take rate improved to 12.2% in 3Q24, up from 10.2% in 2Q24, driven by lower funding costs and the cessation of low-margin businesses [4]. - The company expects to achieve its net profit guidance of RMB 1.75-1.85 billion for 3Q24, supported by macroeconomic stabilization and prudent operational management [5]. Earnings Forecast - The report adjusts the forecast for attributable net profit for 2024, 2025, and 2026 to RMB 6.15 billion, RMB 6.34 billion, and RMB 6.62 billion respectively, reflecting an increase of 13.7% for 2024 [6]. - Target prices for QFIN US and 3660 HK have been raised to $37.20 and HKD 143.40 based on PE and DCF valuation methods [6][19]. Valuation Methodology - The target price is derived from a combination of DCF and PE valuation methods, with the PE valuation based on an average of 6x for 2025 [19][20]. - The DCF analysis incorporates a three-stage model, projecting net profits and capital returns over the next several years [20][21]. Key Financial Metrics - The report provides a detailed breakdown of financial metrics, including projected revenues, net profits, EPS, PE ratios, and ROE for the years 2022 to 2026 [27]. - For 2024, the projected EPS is RMB 42.39, with a PE ratio of 5.53, indicating a favorable valuation compared to historical performance [27].

Financial Data and Key Metrics - Non-GAAP net income reached a record high of RMB 1.83 billion in Q3, up 29.1% sequentially and 54.5% YoY [8] - Non-GAAP net income per diluted ADS increased 34.8% sequentially and 71.5% YoY to RMB 12.4 [8] - ROE in Q3 increased to 32.2%, significantly higher than most financial services and internet companies in China [9] - Total loan facilitation and origination volume (excluding RM SaaS) increased by 13.1% sequentially [7] - D1 delinquency rate decreased by 0.2 percentage points sequentially, and 30-day collection rate increased by 1.1 percentage points to the highest level since 2022 [11] - Funding costs decreased by 30 basis points sequentially, and ABS issuance costs fell by more than 50 basis points [12] - Total ABS issuance for the first three quarters of 2024 reached RMB 13.4 billion, up 23% YoY [13] Business Line Data and Key Metrics - Capital-light segment contributed 55% of total loan facilitation and origination volume in Q3, up approximately 10 percentage points YoY [20] - Loan volume from embedded finance channels increased by 85% YoY, with new credit line users acquired through these channels increasing by roughly 5 percentage points [15] - The number of users with successful drawdown grew consistently each month, with the monthly average increasing by approximately 12% from the previous quarter [18] - Log-in conversion rate increased by 11.6% sequentially in Q3 [18] - Total Technology Solutions business partnered with an additional 9 financial institutions, bringing the total to 14, with solutions deployed in 10 of them [24] Market Data and Key Metrics - The company served more than 55 million users with approved credit lines cumulatively by the end of Q3 [7] - New credit line users increased by 23.8% sequentially, while average unit acquisition cost declined by 7.4% [14] - The proportion of new credit line users acquired through embedded finance channels increased by roughly 5 percentage points [15] - The company partnered with 5 financial institutions across various categories, including joint stock banks, municipal banks, private banks, and consumer finance companies [16] Company Strategy and Industry Competition - The company transitioned from a loan facilitation model to a platform model, focusing on long-term user engagement and diversified product offerings [21][22] - The platform model enables the company to address users' credit needs at different stages of their life cycle while balancing scale, risk, and profitability [22] - The company is leveraging AI and large language models to improve user experience and operational efficiency, with the AI copilot system achieving a recall rate of 96.3% and an accuracy rate of 98.8% [25][26] - The company is expanding its tech solutions beyond consumer credit services, developing a proprietary solution tailored for SME lending [25] - The company is confident in its competitive advantage, particularly in its target customer groups, and believes the platform model has made it more robust and resilient [68][69] Management Commentary on Operating Environment and Future Outlook - The company remains cautiously optimistic about the economic outlook but is confident in achieving long-term, high-quality growth [30] - The company expects risk performance to remain relatively stable in the coming quarters, assuming a muted macro environment [11][77] - The company anticipates total shareholder returns in 2024 to approach 100% of its 2023 net income, one of the highest payout ratios among Chinese ADRs [31] - The company expects non-GAAP net income for Q4 2024 to be between RMB 1.8 billion and RMB 1.9 billion, representing YoY growth of 57% to 65% [50] Other Important Information - The company completed the majority of its USD 350 million share repurchase plan and approved a new repurchase plan of USD 450 million starting January 1, 2025 [31][47] - The company generated approximately RMB 2.37 billion in cash from operations in Q3, with total cash and cash equivalents and short-term investments reaching RMB 9.77 billion [45] - The company's leverage ratio reached a historical low of 2.3x in Q3, and it expects the ratio to fluctuate around this level in the near future [44] Q&A Session Summary Question: Drivers of loan volume growth and outlook for 2025 [53] - Loan volume increased 4.4% sequentially, driven by a slight recovery in customer demand and the platform strategy [54] - The company remains prudent due to macroeconomic, geopolitical, and domestic policy uncertainties but is well-positioned to seize growth opportunities [56] Question: Drivers of write-backs and sustainability [59] - Write-backs increased significantly due to prudent provisioning policies and improved risk performance, with RMB 910 million in write-backs in Q3 [60][63] - Write-backs are expected to remain sizable in Q4 and beyond, though the shift to a capital-light model may reduce the need for large provisions [65][66] Question: Competitive landscape and strategy [59] - The company has a competitive advantage in its target customer groups and has transitioned to a platform model, improving customer retention and lifetime value [67][68] Question: Asset quality outlook [71] - The company expects stable risk performance in the near future, supported by its high-quality development strategy and advanced risk management technology [73][77] Question: Share buyback pace and price considerations [79] - The company plans to complete its current share repurchase plan by the end of 2024 and will execute the new USD 450 million plan starting January 1, 2025 [79][81] - The company believes its shares are undervalued and will prioritize share buybacks to maximize shareholder returns [80][83] Question: Take rate improvement and long-term outlook [86] - Take rate improvement in Q3 was driven by reduced credit costs, lower funding costs, and deferred impacts from mix changes [87] - The company expects take rate to remain stable in Q4 and improve slightly in 2025, with long-term sustainability dependent on macroeconomic recovery [89][91]

As of November 19, 2024, the Company had in aggregate purchased approximately 13.7 million ADSs in the open market for a total amount of approximately US$298 million (inclusive of commissions) at an average price of US$21.7 per ADS pursuant to the share repurchase plan. Business Outlook Conference Call Preregistration Registration Link: https://register.vevent.com/register/BI019bc78618c84e7184e794d691cfdb5b Safe Harbor Statement (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for n ...

User Growth and Engagement - As of September 30, 2024, the platform has connected with 162 financial institution partners and 254.3 million consumers with potential credit demand, an increase of 11.6% from 227.9 million a year ago[4] - The cumulative number of users with approved credit limits reached 55.2 million, up 12.2% from 49.2 million as of September 30, 2023[4] - The cumulative number of successful borrowers reached 33.1 million, reflecting a 12.6% increase from 29.4 million as of September 30, 2023[4] Financial Performance - Net income for Q3 2024 was RMB 4,370.2 million (USD 622.7 million), compared to RMB 4,281.0 million in the same period of 2023[7] - Operating profit for Q3 2024 was RMB 2,289.2 million (USD 326.2 million), up from RMB 1,388.9 million in Q3 2023[7] - Total revenue for Q3 2024 was RMB 43.7 billion (USD 6.2 billion), an increase from RMB 42.8 billion in Q3 2023 and RMB 41.6 billion in the previous quarter[11] - Non-GAAP net profit for Q3 2024 reached RMB 18.3 billion, reflecting strong financial performance despite challenging macro conditions[9] - The net profit attributable to ordinary shareholders for the nine months ended September 30, 2024, was RMB 4,347,677, up from RMB 3,173,596 in the same period of 2023, reflecting a growth of approximately 37%[45] Profitability Metrics - The net profit margin for Q3 2024 was 41.2%, with a non-GAAP net profit margin of 41.8%[7] - The company’s basic earnings per share for the three months ended September 30, 2024, was RMB 6.20, up from RMB 3.56 in the same period of 2023[45] - The company’s diluted earnings per share for the nine months ended September 30, 2024, was RMB 14.11, compared to RMB 9.61 for the same period in 2023, reflecting a growth of approximately 47%[45] Operational Efficiency - Operating costs and expenses totaled RMB 2,081.0 million (USD 296.5 million), down from RMB 2,892.2 million in Q3 2023[12] - The operating profit margin for the three months ended September 30, 2024, improved to 52.4% from 32.4% in the same period of 2023, showcasing enhanced operational efficiency[55] Cash Flow and Liquidity - Cash and cash equivalents totaled approximately RMB 97.7 billion, with operating cash flow of RMB 23.7 billion as of the end of Q3 2024[9] - The cash and cash equivalents at the end of September 30, 2024, were RMB 6,541,857 thousand, down from RMB 8,005,398 thousand at the end of the previous year, indicating a decrease in liquidity[48] - Net cash generated from operating activities for the three months ended September 30, 2024, was RMB 2,371,822 thousand, representing a significant increase compared to RMB 1,243,893 thousand for the same period in 2023[48] Risk Management and Credit Quality - The 90-day+ delinquency rate for loans on the platform was 2.72% as of September 30, 2024[4] - The first-day overdue rate was 4.6%, while the 30-day recovery rate reached approximately 87.4%, marking the best level in the past three years[9] - The provision for receivables was RMB 477.5 million (USD 68.0 million), a decrease from RMB 509.0 million in the same period of 2023 and RMB 849.5 million in the previous quarter[15] Shareholder Returns - The company announced a new share repurchase plan of USD 450 million for 2025[3] - The company executed a share repurchase plan totaling USD 350 million, with a new plan approved for USD 450 million, demonstrating commitment to shareholder returns[9] Future Outlook - The company expects net profit for Q4 2024 to be between RMB 1.75 billion and RMB 1.85 billion, reflecting a year-on-year growth of 57% to 65%[29] - The company plans to continue its market expansion and invest in new product development to sustain growth momentum in the upcoming quarters[57] - The company plans to maintain a prudent approach in its business planning due to ongoing macroeconomic uncertainties[29] Non-GAAP Financial Metrics - The company uses non-GAAP financial metrics to assess operational performance, excluding stock-based compensation expenses[38] - Non-GAAP operating income is defined as operating income excluding stock-based compensation expenses, providing insights into business trends[38] - The company emphasizes that non-GAAP financial data should be viewed as supplementary to GAAP results, not as a substitute[38] - The company believes that non-GAAP metrics enhance understanding of past performance and future outlook[38]

Investment Rating - The report does not explicitly provide an investment rating for the company [1][2][3] Core Arguments - The report alleges that the company has been falsifying its SEC financials to portray the business as more profitable than it actually is [6] - The report claims that the company has been using related-party transactions to shift costs and manipulate profit statements [7][8][9] - The report suggests that the company has been manipulating its profit by under-provisioning for bad debts, despite increasing delinquency rates [12][13][14] - The report highlights a significant discrepancy between the company's reported profits and the profits reported to the State Administration for Industry and Commerce (SAIC) [4][5] - The report criticizes the company's controlling shareholder, Zhou Hongyi, for a history of actions that allegedly harm public shareholders' interests [16][18][19][20] Company Overview - The company, formerly known as "360 DigiTech," rebranded as "Qifu Technology" in 2023 [1] - The company is widely recognized by its brand name "360 Jietiao," which was recently renamed to "Qifu Jietiao" [3] - Zhou Hongyi, the former chairman of the board, resigned in August 2024 for "personal reasons" [3] Financial Discrepancies - The company reported a net income of 4 billion RMB to the SEC in 2022, while the SAIC data showed a net income of only 3.15 million RMB for the same year, a difference of 1271 times [4] - In 2023, the company reported a net income of 4.27 billion RMB to the SEC, while the SAIC data showed a net income of 3.08 million RMB, a difference of 1384 times [4] - The report highlights a significant discrepancy in total revenues reported to the SEC and SAIC, with a 23.1% difference in 2022 and a 17.2% difference in 2023 [5] Related-Party Transactions - The company has engaged in significant related-party transactions with Shanghai Qibutianxia, a subsidiary controlled by Zhou Hongyi [7][8] - The report alleges that Shanghai Qibutianxia has a large number of employees (5000-9999 or over 10,000) but no discernible business operations, suggesting that the company may be using it to shift employee costs [10][11] - The company's employee count increased from 2129 in 2021 to 3121 in 2023, while Shanghai Qibutianxia's employee count remained significantly higher [11] Profit Manipulation - The company's bad debt provisions accounted for 55% of total operating expenses in 2022 and 50% in 2023, making it a significant factor in profit manipulation [12] - The 90-day delinquency rate increased from 2.03% in 2022 to 3.40% in Q2 2024, indicating deteriorating loan quality [12][13] - Despite a 33% increase in accounts receivable from 2022 to 2023, the company reduced its bad debt provisions by 12% [13][14] - The company's cash and cash equivalents decreased by 2.1 billion RMB from 2022 to H1 2024, despite reported revenue and net income growth [15] Controlling Shareholder's History - Zhou Hongyi has a history of actions that allegedly harm public shareholders' interests, as seen in his other listed companies, LUDASHI and 360 [16][18][19] - LUDASHI's stock price surged due to a special dividend announcement but plummeted after Zhou Hongyi's controlled entity sold a significant portion of its shares and the dividend plan was canceled [18] - 360's stock price experienced a significant decline after its re-listing in China, despite an initial surge [19] - The report estimates that insiders have sold over 230 million USD worth of shares since 2020 [20] Conclusion - The report concludes that the company's stock is likely to experience a significant decline, similar to the performance of Zhou Hongyi's other listed companies [20]