Core Insights - Qifu Technology, Inc. has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - The company has also published a Hong Kong Annual Report that contains similar information to the Form 20-F [2] - Qifu Technology is recognized as a leading AI-empowered Credit-Tech platform in China, providing a range of technology services to financial institutions and consumers [3] Company Overview - Qifu Technology utilizes advanced machine learning models and data analytics to enhance the loan lifecycle for financial institutions and SMEs [3] - The company aims to make credit services more accessible and personalized through its Credit-Tech offerings [3]

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].

Core Viewpoint - Qifu Technology, Inc. is proposing a convertible senior notes offering of US$600 million due 2030, aimed at qualified institutional buyers, with an additional option of US$90 million for initial purchasers [1] Group 1: Notes Offering Details - The proposed offering consists of convertible senior notes with a total principal amount of US$600 million, maturing on April 1, 2030 [1][3] - The notes will be general unsecured obligations of the company, with holders having the option to require repurchase on April 3, 2028, at 100% of the principal amount plus accrued interest [3] - The notes will be convertible under certain conditions, with cash-par settlement upon conversion, allowing the company to pay cash or a combination of cash and American depositary shares (ADSs) [4][5] Group 2: Use of Proceeds - The net proceeds from the notes offering will be used for repurchasing ADSs and/or class A ordinary shares under a newly established share repurchase plan, which is expected to be accretive to earnings per ADS upon closing [2][11] - The March 2025 Share Repurchase Plan allows for concurrent repurchases at the time of pricing the notes and additional repurchases over time [7][10] Group 3: Repurchase Plan Mechanics - The concurrent repurchase will involve buying back ADSs from certain purchasers of the notes in off-market transactions, facilitating initial hedges for those investors [8][9] - Future repurchases may occur on the open market or through other means, adhering to applicable regulations [10] Group 4: Company Overview - Qifu Technology is a leading AI-empowered Credit-Tech platform in China, providing technology services to assist financial institutions and consumers throughout the loan lifecycle [16]

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].

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]