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]

Have you been paying attention to shares of Qifu Technology, Inc. (QFIN) ? Shares have been on the move with the stock up 8.2% over the past month. The stock hit a new 52-week high of $48.81 in the previous session. Qifu Technology, Inc. has gained 24.2% since the start of the year compared to the 0.2% move for the Zacks Business Services sector and the -27.9% return for the Zacks Technology Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises ...

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Qifu Technology, Inc. (NASDAQ:QFIN) Q4 2024 Results Conference Call March 17, 2025 7:30 AM ET Company Participants Karen Ji - Senior Director, Capital Markets Haisheng Wu - CEO Alex Xu - CFO Yan Zheng - Chief Risk Officer Conference Call Participants Richard Xu - Morgan Stanley Alex Ye - UBS Cindy Wang - China Renaissance Emma Xu - Bank of America Yada Li - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to the Qifu Technology Fourth Quarter and Full Year 2024 Earnings Conference ...

Core Viewpoint - Qifu Technology has reported strong financial results, showing significant growth and a low earnings multiple, making it an attractive investment opportunity despite its stock price more than doubling last year [1][2]. Company Overview - Qifu Technology is an AI-empowered credit-tech platform in China, providing credit solutions to 56.9 million users and a total of 261.2 million consumers, connecting them with 162 financial service providers [3]. - The company primarily serves consumers and small to medium businesses, focusing on credit needs in rural Tier 3 and Tier 4 communities, with 81% of users located in these areas [4]. Financial Performance - Revenue for Qifu rose by less than 3% to $614.1 million, a slight decrease from the 5% growth in 2024 [5]. - Adjusted net income increased by 8% in the fourth quarter, driven by better asset quality and lower funding costs, surpassing analysts' expectations of flat growth [5][6]. - Earnings per American depositary share (ADS) for 2024 increased by 56% to $5.81, reflecting consistent performance above Wall Street estimates [6]. Shareholder Returns - Qifu has been returning value to shareholders through aggressive share buybacks and announced a semiannual dividend of $0.70 per ADS for the second half of 2024, following a $0.60 distribution in September [7][8]. - The company's dividend payouts have increased annually since initiating a variable distribution policy in 2021, more than doubling from $0.54 per ADS in 2021 to $1.30 in 2024 [10]. Valuation - Despite strong earnings growth and capital appreciation, Qifu's stock trades at a compelling valuation of just 7.4 times trailing earnings, having been available at only 2.6 times earnings at the start of the previous year [8]. - The company has improved operations even with modest revenue growth, indicating potential for further upside as demand for personal and small business loans in China increases [9].

Core Viewpoint - Qifu Technology reported strong operational and financial results for the fourth quarter and full year of 2024, despite facing macroeconomic challenges, and announced a semi-annual dividend increase [1][15][20]. Fourth Quarter 2024 Business Highlights - As of December 31, 2024, Qifu Technology connected 261.2 million consumers with potential credit needs, an increase of 11.0% from 235.4 million a year ago [10]. - Cumulative users with approved credit lines reached 56.9 million, up 11.8% from 50.9 million in 2023 [10]. - The company facilitated 24,814,923 loans in the fourth quarter, with total loan facilitation and origination volume reaching RMB89,885 million, a 0.4% increase year-over-year [10]. - The total outstanding loan balance was RMB137,014 million, a decrease of 5.7% from the previous year [10]. - The 90-day+ delinquency rate was 2.09% as of December 31, 2024 [10]. Fourth Quarter 2024 Financial Highlights - Total net revenue for the fourth quarter was RMB4,482.3 million (US$614.1 million), compared to RMB4,370.2 million in the prior quarter [18]. - Net income was RMB1,912.7 million (US$262.0 million), an increase from RMB1,798.8 million in the prior quarter [18]. - Non-GAAP net income was RMB1,972.4 million (US$270.2 million), compared to RMB1,825.1 million in the prior quarter [18]. - Net income per fully diluted ADS was RMB13.24 (US$1.82), up from RMB12.18 in the prior quarter [18]. Full Year 2024 Operational Highlights - Total loan facilitation and origination volume for 2024 was RMB321,969 million, a decrease of 12.8% from RMB369,132 million in 2023 [19]. - The weighted average contractual tenor of loans was 10.05 months, compared to 11.21 months in 2023 [19]. - Repeat borrower contribution was 93.1% for the year, up from 91.6% in 2023 [19]. Full Year 2024 Financial Highlights - Total net revenue for 2024 was RMB17,165.7 million (US$2,351.7 million), compared to RMB16,290.0 million in 2023 [43]. - Net income for the year was RMB6,248.1 million (US$856.0 million), an increase from RMB4,268.6 million in 2023 [43]. - Non-GAAP net income was RMB6,415.7 million (US$879.0 million), compared to RMB4,454.2 million in 2023 [43]. - Net income per fully diluted ADS was RMB41.28 (US$5.66), up from RMB26.08 in 2023 [43]. Dividend and Share Repurchase - The board approved a semi-annual dividend of US$0.35 per Class A ordinary share for the second half of 2024 [57]. - The company repurchased approximately 3.1 million ADSs for about US$107 million in the fourth quarter [59]. - A new share repurchase plan for 2025 was approved, allowing for up to US$450 million in repurchases [60]. Business Outlook - The company expects to generate a net income between RMB1.75 billion and RMB1.85 billion for the first quarter of 2025, reflecting a year-on-year growth of 49% to 58% [62].

Core Viewpoint - Qifu Technology reported strong financial results for the fourth quarter and full year of 2024, despite macroeconomic challenges, and announced an increase in semi-annual dividends [1][8][46]. Group 1: Fourth Quarter 2024 Business Highlights - The platform connected 162 financial institutional partners and 261.2 million consumers, marking an 11.0% increase from 235.4 million a year ago [5]. - Cumulative users with approved credit lines reached 56.9 million, up 11.8% from 50.9 million in the previous year [5]. - The total facilitation and origination loan volume was RMB 89,885 million, a 0.4% increase from RMB 89,561 million in the same period of 2023 [5]. Group 2: Fourth Quarter 2024 Financial Highlights - Total net revenue was RMB 4,482.3 million (US$ 614.1 million), compared to RMB 4,370.2 million in the prior quarter [6]. - Net income was RMB 1,912.7 million (US$ 262.0 million), an increase from RMB 1,798.8 million in the prior quarter [6]. - Non-GAAP net income was RMB 1,972.4 million (US$ 270.2 million), compared to RMB 1,825.1 million in the prior quarter [6]. Group 3: Full Year 2024 Operational Highlights - Total net revenue for 2024 was RMB 17.17 billion, up from RMB 16.29 billion in 2023 [10][32]. - Non-GAAP net income for the year was RMB 6.42 billion, compared to RMB 4.45 billion in 2023 [10][32]. - The company generated a record RMB 9.34 billion in cash from operations in 2024 [10]. Group 4: Business Strategy and Outlook - The company plans to maintain a prudent approach in business planning for 2025, focusing on quality growth and enhancing operational efficiency [10][52]. - Management expects net income for the first quarter of 2025 to be between RMB 1.75 billion and RMB 1.85 billion, representing a year-on-year growth of 49% to 58% [52]. - The company aims to allocate more resources to AI applications across credit scenarios to navigate the current environment effectively [10]. Group 5: Shareholder Returns - The board approved a semi-annual dividend of US$ 0.35 per Class A ordinary share for the second half of 2024 [46]. - The company has initiated a new share repurchase plan for up to US$ 450 million starting January 1, 2025 [50].

Core Viewpoint - Qifu Technology, Inc. will report its unaudited financial results for Q4 and the full year ended December 31, 2024, on March 17, 2025, before U.S. markets open [1] Company Overview - Qifu Technology is a leading Credit-Tech platform in China, providing a comprehensive suite of technology services to assist financial institutions, consumers, and SMEs throughout the loan lifecycle [5] - The company aims to make credit services more accessible and personalized through its Credit-Tech services [5]

Core Viewpoint - Qifu Technology, Inc. (QFIN) has experienced significant stock growth of 106% over the past six months, outperforming the industry average of 46% and competitors like SLM Corporation and Credit Acceptance Corporation [1][15]. Company Performance - QFIN's third-quarter 2024 revenues reached RMB 4.37 billion, marking a 2.1% year-over-year increase, while non-GAAP net income grew by 54.5% year-over-year, indicating effective cost management and operational efficiency [6]. - The company expanded its financial institutional partners to 162 and increased its user base from 53.6 million to 55.2 million, reflecting successful marketing strategies [7]. Financial Position - QFIN reported robust cash reserves of $1.4 billion at the end of the third quarter, with minimal current debt of $149 million, providing ample liquidity for growth initiatives [8]. - The current ratio of 2.56 exceeds the industry average of 2.15, demonstrating the company's ability to meet short-term obligations [8]. - QFIN's return on equity stands at 24.4%, significantly higher than the industry average of 3.6%, showcasing exceptional profitability and efficient use of shareholder capital [9]. Business Model - QFIN's AI-driven business model targets young, urban Chinese professionals, simplifying the loan process by leveraging AI, machine learning, and big data to assess borrowers' repayment abilities [4][5]. - The company focuses on individuals with high, consistent salaries, offering unsecured loans with higher interest rates, which has allowed it to scale effectively and achieve profitability [5].

I wrote my first article on Qifu Technology, Inc. (NASDAQ: QFIN ) back in October 2024, since then, the stock has climbed around 13%, and I assume there is still a lot of room for growth.I am a financial writer with a degree in Finance. In my five-year career, I have worked with two financial companies. I keep a close eye on Energy, Banking, and Tech stocks. My main focus is fundamental analysis and looking at the long-term position of a stock instead of short-term analysis. The main reason I joined Seeking ...