Core Viewpoint - The consumer finance industry has entered a new cycle this year, with regulatory-driven structural adjustments expected to reshape the market dynamics, potentially leading to a recovery similar to the 2017-2020 period [2][10]. Group 1: Regulatory Impact - The current round of regulation aims to refine the industry by shifting from a high-risk, high-interest model to a more refined approach focused on risk control, funding negotiation power, and technological capabilities [2]. - The "loan withdrawal effect" is evident, with companies like Qifu Technology experiencing increased overdue rates and decreased repayment rates, indicating a passive clearing of high-risk clients rather than a decline in new business quality [3]. - Qifu Technology has prepared for this adjustment, increasing its risk provisions and maintaining a high provision coverage ratio, while also seeing a significant reduction in new loan issuance from high-priced markets [4]. Group 2: Industry Restructuring - The regulatory environment is leading to a reduction in competitive pressure, allowing platforms to target higher-value customers more effectively, resulting in a decrease in customer acquisition costs [5]. - As the issue of shared debt improves, risk costs are expected to decline, enhancing customer conversion rates and long-term user value, with management indicating a more favorable competitive environment in the future [5]. - Historical patterns suggest that profitability may strengthen before stock prices respond, similar to trends observed from 2017 to 2020 [5]. Group 3: AI as a Growth Engine - Qifu Technology is leveraging AI to enhance its foundational capabilities, focusing on data acquisition, risk identification, and compliance, which are critical for future customer service [7]. - The company has completed numerous iterations of risk models, utilizing AI to dynamically assess customer repayment intentions, contributing to improved risk indicators [7]. - Qifu Technology is positioning itself as an AI infrastructure provider for financial institutions, with significant growth in its technology-enabled lending volume [8][9]. Conclusion - The current performance dip in the industry is viewed as an opportunity, as long as the underlying industry logic remains intact and the company maintains its advantages in funding, risk control, and AI capabilities [10].