Financial Performance - For Q1 2024, total revenue was RMB 6,964 million (approximately USD 964 million), a decrease of 30.9% compared to RMB 10,078 million in Q1 2023[8] - The net loss for Q1 2024 was RMB 830 million (approximately USD 115 million), compared to a net profit of RMB 732 million in Q1 2023, representing a significant increase in losses of 213.3%[8] - Total expenses for Q1 2024 were RMB 6,517 million, down 27.3% from RMB 8,964 million in Q1 2023[9] - The company reported a significant reduction in total expenses excluding credit impairment losses and financing costs, which decreased by 37.0% to RMB 3,580 million[9] - Total revenue for the three months ended March 31, 2024, was RMB 6,963,764 thousand, a decrease from RMB 10,077,752 thousand for the same period in 2023, representing a decline of approximately 30.9%[30] - The net profit for the three months ended March 31, 2024, was a loss of RMB 829,961 thousand, compared to a net profit of RMB 732,370 thousand for the same period in 2023[30] - The company reported a basic and diluted loss per share of RMB 0.76 for the three months ended March 31, 2024, compared to earnings of RMB 0.59 for the same period in 2023[30] Cash and Liquidity - As of March 31, 2024, the company's bank deposits were RMB 39,442 million (approximately USD 5,463 million), a slight decrease from RMB 39,599 million as of December 31, 2023[23] - The company’s cash and cash equivalents, including restricted cash, totaled RMB 54,104,707 thousand as of March 31, 2024, compared to RMB 50,744,623 thousand as of December 31, 2023, showing an increase of approximately 6.9%[31] - Cash and cash equivalents at the end of March 31, 2024, totaled RMB 22,235,553 thousand, down from RMB 32,254,754 thousand at the end of the previous year[34] - The company’s cash and cash equivalents increased by RMB 3,755,457 thousand during the three months ended March 31, 2024, compared to an increase of RMB 2,717,243 thousand in the same period of the previous year[34] - The impact of foreign exchange rate changes on cash and cash equivalents was RMB 6,701 thousand for the three months ended March 31, 2024[34] Loan and Borrower Metrics - As of March 31, 2024, the enabled loan balance was RMB 270.2 billion, a decrease of 45.4% from RMB 495.2 billion as of March 31, 2023[9] - In Q1 2024, the newly enabled loans amounted to RMB 48.1 billion, a decrease of 15.6% compared to RMB 57.0 billion in the same period of 2023[10] - The risk-bearing ratio of newly enabled loans (excluding consumer finance subsidiaries) increased from 22.6% in Q1 2023 to 100% in Q1 2024[10] - The overdue rate for loans enabled (excluding consumer finance subsidiaries) for over 30 days was 6.6% as of March 31, 2024, down from 6.9% as of December 31, 2023[11] - As of March 31, 2024, the cumulative number of borrowers increased by 12.4% to approximately 21.7 million from about 19.4 million as of March 31, 2023[10] - Consumer finance loans accounted for 42% of new loan sales in Q1 2024, up from 24% in the same period last year[13] - The NPL rate for consumer finance loans was 1.6% as of March 31, 2024, compared to 1.5% as of December 31, 2023[11] Expense Management - Total expenses decreased by 27% from RMB 8,964 million in Q1 2023 to RMB 6,517 million (approximately USD 903 million) in Q1 2024, mainly due to a 50% reduction in sales and marketing expenses[17] - Sales and marketing expenses decreased by 49.9% from RMB 3,030 million in Q1 2023 to RMB 1,518 million (approximately USD 210 million) in Q1 2024, attributed to reduced loan-related expenses and lower platform service referral costs[18] - General and administrative expenses decreased by 36.2% from RMB 756 million in Q1 2023 to RMB 483 million (approximately USD 67 million) in Q1 2024, due to cost control measures and reduced taxes and surcharges[19] Future Outlook and Strategic Initiatives - The company plans to focus on enhancing its technology platform and expanding its market presence in the upcoming quarters, aiming for a rebound in user engagement and revenue growth[30] - The company has indicated expectations for future growth in retail credit empowerment, driven by increased demand for its services and improved market acceptance[30] - The company is actively exploring potential mergers and acquisitions to strengthen its market position and diversify its service offerings[30] - The company is expected to continue its focus on strategic financial management and operational efficiency in the upcoming quarters[39] Compliance and Governance - The financial results were prepared in accordance with International Financial Reporting Standards, consistent with the accounting policies adopted for the audited consolidated financial statements for the year ended December 31, 2023[3] - The company’s financial advisor and auditor have reported on the estimates made for the financial results, ensuring compliance with relevant regulations[4] - The company cautioned shareholders and potential investors not to overly rely on the Q1 results when making investment decisions[6] - The announcement includes forward-looking statements regarding the company's future business development and financial performance[6] - The company is subject to risks and uncertainties that may affect its future performance, as detailed in filings with the SEC and the stock exchange[6] - The management accounts for the three months ended March 31, 2024, were prepared in accordance with the accounting policies consistent with those adopted in the audited financial statements for the year ended December 31, 2023[38] - The company’s board of directors is responsible for the estimates and has confirmed that they were prepared based on the management accounts[39] - UBS AG has reviewed the basis of the estimates and confirmed that they align with the company’s usual accounting policies[40]
陆控(06623) - 2024 Q1 - 季度业绩