Financial Performance - Q2 net revenue reached 5.2159 billion, representing a year-on-year increase of 25.4% [1] - Net profit attributable to the company was 1.734 billion, up 25.6% year-on-year [1] - Total loan facilitation and initiation in Q2 amounted to 84.609 billion, an increase of 16.1% compared to the previous year [1] Customer and Partnership Growth - As of June 30, 2025, the platform has connected with 165 financial institution partners [1] - The number of potential credit demand consumers reached 275.8 million, a growth of 11.4% from 247.6 million in the previous year [1] Dividend Announcement - The company declared an interim dividend of 0.38 USD per A-class ordinary share or 0.76 USD per American depositary share [1] - This is an increase from the previous year's interim dividend of 0.30 USD per A-class ordinary share or 0.60 USD per American depositary share [1]

前言： 投资奇富科技，看的不仅是一两季的财报数字，而是中国金融科技巨大的市场空间、公司已稳固的合规 头部地位，以及业务恢复后的高成长潜力。 奇富科技在8月15日交出了最新的成绩单：二季度公司收入52.16亿元，超出市场预期环比增长11.2%， 同比增长25.4%；普通股东应占净利润17.34亿元，同比增长25.6%。 在复杂的市场环境之下，这一成绩称得上可圈可点。 但市场普遍担忧大环境的"承压"因素，同时部分投资者仍旧用保守眼光看待奇富科技的基本面。 若把镜头拉远，正是在这种背景下，奇富科技为代表的龙头玩家的预期差正加速凸显出来——短期是资 金与风险的拐点，中期看技术输出与全球化增量，长期有AI护城河带来的估值重塑。资本市场尚未充 分定价这三重逻辑。 一、短期预期差：成本+风险双降，基本面反转信号显现 奇富科技在资金成本管控上取得突破性进展。在二季度，奇富科技通过ABS发行融资78亿元，同比大幅 增长70%。这一数据背后有两个重要看点：一是发行规模的迅速扩大，显示公司在资本市场的融资渠道 顺畅；二是成本降至历史最低水平，直接推动综合资金成本环比下降10个基点。在当前利率下行的大周 期中，拥有稳定低成本资金来源 ...

Core Insights - Q2 2025 performance of Qifu Technology shows revenue of 5.216 billion, a year-on-year increase of 25.38% and a quarter-on-quarter increase of 11.2% [1] - Net profit for the same period is 1.731 billion, reflecting a year-on-year increase of 25.72% but a quarter-on-quarter decrease of 3.68% [1] Financial Performance - Total loan facilitation in Q2 reached 84.609 billion, a quarter-on-quarter decrease of 4.81% but a year-on-year increase of 16.12% [2] - As of June 30, 2025, the loan balance stood at 1400.80 billion, showing a slight decrease from 1402.73 billion at the end of March but a year-on-year increase of 13.38% from 1235.51 billion [3] Business Strategy - Qifu Technology's strategy remains cautious, with a focus on balancing growth and risk [4] - The company has diversified its business model, allowing for flexibility in asset allocation between heavy and light capital [5] Revenue Breakdown - In Q2, revenue from heavy capital loan facilitation reached 0.461 billion, a year-on-year increase of 205.1% [7] - Financing income accounted for the largest share of total revenue at 2.205 billion, representing 42% of total revenue [10] - The company issued bonds totaling 14.4 billion in the first half of 2025, a 45% increase year-on-year [12] Regulatory Impact - The "Assisted Loan New Regulations" are expected to have a positive long-term impact on the industry, promoting a healthier ecosystem [13][14] - Qifu Technology is preparing alternative plans in response to the new regulations, ensuring compliance and operational stability [20][21] International Expansion - Qifu has initiated small-scale operations in the UK, with positive early indicators [24] - The company aims to understand local markets and refine its risk models as part of its international strategy [25] Cost Management - Customer acquisition costs decreased to 370 yuan in Q2 from 384 yuan in the previous quarter [30] - Marketing expenses increased to 6.63 billion, a 12% quarter-on-quarter rise [33] Risk Management - The company has increased its risk provisions, with new provisions for risk-bearing loans totaling approximately 2.5 billion in Q2 [8] - The D1 delinquency rate remained stable, but recovery rates declined from 88.1% to 87.3% [35] - Qifu is tightening risk management measures in response to industry-wide pressures and regulatory changes [42][43] Future Outlook - The company maintains a cautious outlook due to ongoing macroeconomic uncertainties, projecting Q3 net profit between 1.52 billion and 1.72 billion, reflecting a potential year-on-year decline [44][45]

Group 1: NetEase (NTES US) - The gaming improvement trend for the second half of the year is clear, with new games expected in 2026, leading to a target price increase from $143 to $155, reflecting a potential upside of 19.5% [3] - Q2 2025 results were in line with expectations, with gaming revenue slightly below market expectations but gross margin improvement exceeding expectations [3] - Strong performance of flagship games in July and August indicates a robust recovery in mobile gaming, with a strong year-on-year growth expected in the second half of the year [3] Group 2: NetEase Cloud Music (9899 HK) - The company reported better-than-expected profits for the first half of 2025, leading to a target price increase from HKD 240 to HKD 339, indicating a potential upside of 25.5% [4] - Revenue for the first half of 2025 was HKD 3.83 billion, a year-on-year decline of 6%, primarily due to a decrease in social entertainment revenue, while subscription revenue grew by 15% [4] - Adjusted net profit for the first half was HKD 1.1 billion, exceeding market expectations [4] Group 3: JD Logistics (2618 HK) - The company is experiencing accelerated growth in external integration revenue due to prior investments, with a target price of HKD 18.50, indicating a potential upside of 32.5% [6] - Q2 2025 results met expectations, with revenue driven by the group's food delivery service and profits aligning with forecasts [6] - The company expects continued growth trends in the second half of the year [8] Group 4: JD (JD US) - The company faced higher-than-expected losses in new businesses, but retail revenue and profits are expected to grow by approximately 10% year-on-year in Q3 2025 [9] - The target price remains at $40, reflecting a potential upside of 26.7%, with a focus on improving cross-selling efficiency between food delivery and retail [9] - The company anticipates a narrowing of losses in new businesses by Q4 2025 [9] Group 5: Youdao (DAO US) - The company turned profitable in Q2 2025, focusing on AI and high school education, with a target price of $12, indicating a potential upside of 23% [10] - Revenue growth is supported by strong demand in AI-enhanced high school products and advertising business [10] - The company expects a decline in learning services and hardware revenue but a significant increase in advertising revenue [10] Group 6: Geely Automobile (175 HK) - The company reported a 27% year-on-year revenue increase to RMB 150.3 billion in the first half of 2025, with a net profit growth of 102% to RMB 6.66 billion, exceeding market expectations [11] - The target price is raised to HKD 24.21, indicating a potential upside of 27.8%, driven by improved brand integration and sales growth [11] - The company is expected to benefit from industry trends that reduce price competition, focusing more on configuration and driving experience [11] Group 7: Hesai Group (HSAI US) - The company continues to see high growth in shipments, with a target price of $27.52, indicating a potential upside of 18% [12] - Q2 2025 revenue reached RMB 706 million, with a gross margin of 42.5% [13] - The company expects to achieve a total shipment of 1.4 million units in 2025, with significant growth in ADAS and robotics products [12][13] Group 8: QFIN Technology (QFIN US) - The company achieved a net profit of RMB 1.73 billion in Q2 2025, a year-on-year increase of 25.7%, with a target price of $58, indicating a potential upside of 74.2% [14] - The company is focusing on improving asset quality and enhancing risk control measures [15] - Despite short-term uncertainties from new regulations, the company maintains a strong competitive advantage and attractive valuation [15] Group 9: SF REIT (2191 HK) - The company reported a 1.2% year-on-year revenue increase to HKD 225 million in the first half of 2025, with a target price of HKD 3.84, indicating a potential upside of 25.5% [16] - The overall occupancy rate was 97.5% as of June 2025, with expectations for moderate revenue growth in 2025 [17] - The company anticipates potential rental pressure in 2026 following lease renewals with SF Holdings [17] Group 10: Pharmaceutical Industry - The pharmaceutical sector is expected to see steady growth driven by multiple favorable factors in the second half of 2025, with a focus on high-growth opportunities in biotechnology and prescription drugs [18] Group 11: Internet Industry - E-commerce revenue growth in July 2025 exceeded expectations, with a year-on-year increase of 8.3%, driven by strong performance in communication equipment and home appliances [19] - The industry is benefiting from regulatory measures that promote healthy development and reduce aggressive subsidy strategies [19] - Investment insights suggest that Alibaba's revenue adjustments may offset the impact of flash sales subsidies, while JD's new business investments are expected to stabilize overall profit margins [19]

Core Insights - Bridgewater Associates has divested from U.S.-listed Chinese stocks in Q2 2023, indicating a significant pullback from the market due to geopolitical tensions and declining investor confidence in China's economic outlook [1][2] - The hedge fund has closed out positions in major Chinese companies such as Baidu, Alibaba, JD.com, PDD Holdings, Nio, Trip.com Group, and Yum China, while also reducing its stake in Apple but increasing holdings in Microsoft and Nvidia [2] - Ray Dalio, the founder of Bridgewater, had previously defended investments in China but has expressed concerns about U.S.-China relations and economic challenges facing China [3] Company Actions - Bridgewater Associates has sold its stakes in several prominent Chinese companies, reflecting a strategic shift in investment focus [2] - The fund's adjustments include a reduction in Apple holdings and an increase in investments in Microsoft and Nvidia, suggesting a reallocation towards more stable or promising sectors [2] Geopolitical Context - The extension of the tariff truce between the U.S. and China for an additional 90 days has implications for trade relations, with current tariffs on Chinese imports at 30% and U.S. exports to China at 10% [4] - The potential increase in tariffs, which could have reached 145% on Chinese goods, highlights the ongoing trade tensions and their impact on investment strategies [4]

Core Insights - Qifu Technology reported its Q2 2025 financial results, showing significant growth in user metrics and financial performance [1] User Metrics - As of June 30, 2025, Qifu Technology has served a total of 165 financial institutions, with registered users reaching 276 million, a year-on-year increase of 11.4% [1] - The number of cumulative credit users increased to 60.2 million, reflecting a year-on-year growth of 12.3% [1] - Cumulative borrowing users reached 36.8 million, marking a year-on-year increase of 14.9% [1] - In Q2, the platform facilitated loans amounting to 84.6 billion RMB, a year-on-year growth of 16% [1] - The outstanding loan balance at the end of the quarter was 140.1 billion RMB [1] - The number of new credit users added in Q2 was 1.79 million, a year-on-year increase of 40% [1] - The number of new borrowing users added was 1.23 million, showing a year-on-year growth of approximately 60% [1] - New credit users from embedded finance channels grew by 103% year-on-year, with loan amounts increasing by approximately 155% [1] Financial Performance - Qifu Technology's revenue for Q2 reached 5.2 billion RMB, reflecting a quarter-on-quarter increase of 11.2% and a year-on-year increase of 25.4% [1] - The non-GAAP net profit for the quarter was 1.85 billion RMB [1] Management Commentary - The CEO of Qifu Technology indicated that the heightened international trade tensions have increased economic uncertainty, prompting the company to tighten risk control standards [1] - The company plans to maintain a cautious approach in its business strategy for the second half of the year, focusing on enhancing the quality and sustainability of its operations [1]

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]

Financial Data and Key Metrics Changes - Total net revenue for Q2 was RMB 5.22 billion, up from RMB 4.69 billion in Q1 and RMB 4.16 billion a year ago [16] - Non-GAAP net income increased by 30.8% year over year to RMB 1.85 billion, while non-GAAP EPADS rose by 48.8% to RMB 13.63 [5][22] - The effective tax rate for Q2 was 19.3%, higher than the typical rate of approximately 15% due to withholding tax provisions [23] Business Line Data and Key Metrics Changes - Revenue from credit-driven services was RMB 3.57 billion in Q2, compared to RMB 3.11 billion in Q1 and RMB 2.91 billion a year ago [17] - Revenue from platform services was RMB 1.65 billion in Q2, up from RMB 1.58 billion in Q1 and RMB 1.25 billion a year ago [17] - Loan volume supported by total technology solutions business increased approximately 150% year over year [11] Market Data and Key Metrics Changes - Total loan facilitation and origination volume increased by approximately 16% year over year to RMB 84.6 billion [4] - New credit line users grew 40% year over year to 1.79 million, while the number of new borrowers increased by approximately 60% year over year to 1.23 million [10] - Total ABS issuance in the first half of the year nearly matched the full year total in 2024, with issuance costs declining to a record low [9] Company Strategy and Development Direction - The company is focused on advancing its AI plus bank strategy and enhancing its AI agent platform to drive digital transformation in financial institutions [11][13] - The company aims to optimize products and services to better address user needs while improving operational efficiency [13] - The company is exploring overseas expansion opportunities, with initial operations launched in the UK [14] Management's Comments on Operating Environment and Future Outlook - The management noted that consumer confidence and credit demand remain soft, with no clear signs of recovery [31] - The company plans to prioritize risk management and take a cautious approach to loan origination in the second half of the year [33] - The company expects to generate non-GAAP net income between RMB 1.6 billion and RMB 1.8 billion for 2025, reflecting a prudent approach amid economic uncertainties [26] Other Important Information - The company has executed a share repurchase plan, purchasing approximately 7.1 million ADS for a total of approximately RMB 277 million [25] - The company reported a provision coverage ratio of 662% in Q2, indicating a robust financial position [21][58] Q&A Session Summary Question: What is the management's latest outlook on loan volume growth? - Management indicated that consumer confidence remains soft, with a decrease in short-term household loans and no clear signs of recovery [31][32] Question: What are the latest views on take rates? - Management stated that the Q2 take rate was 5.4% and expected it to remain around 5% in Q3, with potential volatility due to new regulations [34][35] Question: What is the estimated impact of the new regulation on the ICE business? - Management views the new rules positively for the industry, expecting improved health and sustainability, while preparing alternative plans for the ICE business [40][44] Question: What are the main considerations for selecting target markets for overseas expansion? - Management considers regulatory environment, openness to fintech innovation, and financial infrastructure when selecting target markets [47][48]

Financial Data and Key Metrics Changes - Total net revenue for Q2 was RMB 5.22 billion, up from RMB 4.69 billion in Q1 and RMB 4.16 billion a year ago [18] - Non-GAAP net income increased by 30.8% year over year to RMB 1.85 billion, while non-GAAP EPADS rose by 48.8% to RMB 13.63 [6][24] - Total cash and cash equivalents and short-term investments were RMB 13.34 billion in Q2, down from RMB 14.03 billion in Q1 [25] Business Line Data and Key Metrics Changes - Revenue from credit-driven services was RMB 3.57 billion in Q2, compared to RMB 3.11 billion in Q1 and RMB 2.91 billion a year ago, driven by higher capital-heavy loan volume [19] - Revenue from platform services was RMB 1.65 billion in Q2, up from RMB 1.58 billion in Q1 and RMB 1.25 billion a year ago [19] - Loan volume supported by total technology solutions business increased approximately 150% year over year [12] Market Data and Key Metrics Changes - Total loan facilitation and origination volume increased by approximately 16% year over year to RMB 84.6 billion [5] - New credit line users grew 40% year over year to 1.79 million, while the number of new borrowers increased by approximately 60% year over year to 1.23 million [11] - Ninety-day delinquency rate was 1.97% in Q2, down from 2.02% in Q1 [21] Company Strategy and Development Direction - The company is focused on advancing its AI plus bank strategy and enhancing its AI agent platform to drive digital transformation in financial institutions [12][14] - The company aims to optimize products and services to better address user needs while improving operational efficiency [14] - The company is exploring international opportunities, with a recent launch of small-scale operations in the UK [15] Management's Comments on Operating Environment and Future Outlook - The management noted that consumer confidence and credit demand remain soft, with no clear signs of recovery [34] - The company expects to maintain a cautious approach to loan origination and facilitation due to regulatory uncertainty [35] - For 2025, the company expects to generate non-GAAP net income between RMB 1.6 billion and RMB 1.8 billion [28] Other Important Information - The company issued approximately RMB 7.8 billion in ABS during the quarter, representing a year-over-year increase of about 70% [9] - The effective tax rate for Q2 was 19.3%, higher than the typical rate of approximately 15% due to withholding tax provisions [25] Q&A Session Summary Question: What is the management's latest outlook on loan volume growth? - Management indicated that consumer confidence and credit demand remain soft, with no clear signs of recovery, and a cautious approach to loan origination will be maintained [34][35] Question: What are the latest views on take rates? - The Q2 take rate was 5.4%, with expectations of around 5% for Q3, but regulatory changes may introduce volatility [37][38] Question: What is the estimated impact of the new regulation on the ICE business? - Management views the new rules positively for the industry, expecting improved health and sustainability, with a focus on technology capabilities [42][43] Question: What are the main considerations for overseas expansion? - The company considers regulatory environment, openness to fintech innovation, and financial infrastructure when selecting target markets [49][50]

Core Insights - The company reported its Q2 2025 financial results, showing significant growth in user base and loan facilitation [2] - The company has deepened its embedded finance strategy, enhancing user experience across various sectors [2] User Metrics - The platform serves a total of 165 financial institutions, with registered users reaching 276 million, representing a year-on-year growth of 11.4% [2] - The cumulative number of credit users increased to 60.2 million, up 12.3% year-on-year, while borrowing users reached 36.8 million, reflecting a 14.9% increase [2] - In Q2, the company added 1.79 million new credit users, a 40% year-on-year increase, and 1.23 million new borrowing users, approximately 60% higher than the previous year [2] Loan Facilitation - The platform facilitated loans totaling 84.6 billion yuan in Q2, marking a 16% year-on-year increase, with outstanding loans at 140.1 billion yuan [2] - Over half of the new credit users came from embedded finance channels, which saw a year-on-year growth of 103% in new credit users and approximately 155% growth in loan volume [2] Financial Performance - The company's revenue for Q2 reached 5.2 billion yuan, reflecting an 11.2% quarter-on-quarter increase and a 25.4% year-on-year increase [2] - The non-GAAP net profit for the quarter was reported at 1.85 billion yuan [2]