Core Viewpoint - Qfin Holdings, Inc. reported strong financial results for the second quarter of 2025, with total net revenue reaching RMB5,215.9 million (US$728.1 million), reflecting a year-over-year increase of 25.4% from RMB4,160.1 million in the same period of 2024. The company also announced a semi-annual dividend of US$0.38 per Class A ordinary share [10][17][41]. Financial Highlights - Total net revenue for Q2 2025 was RMB5,215.9 million (US$728.1 million), compared to RMB4,690.7 million in the prior quarter and RMB4,160.1 million in the same period of 2024 [10][17]. - Net income for Q2 2025 was RMB1,730.5 million (US$241.6 million), a decrease from RMB1,796.6 million in the prior quarter but an increase from RMB1,376.5 million in the same period of 2024 [18][35]. - Non-GAAP net income for Q2 2025 was RMB1,849.0 million (US$258.1 million), compared to RMB1,926.2 million in the prior quarter and RMB1,413.4 million in the same period of 2024 [18][36]. - Total outstanding loan balance was RMB140,080 million as of June 30, 2025, an increase of 13.4% from RMB123,551 million a year ago [11][10]. Business Performance - The platform connected 165 financial institutional partners and 275.8 million consumers with potential credit needs, marking an 11.4% increase from 247.6 million a year ago [11]. - Cumulative users with approved credit lines reached 60.2 million, up 12.3% from 53.6 million a year ago [11]. - The company facilitated 23,638,189 loans in Q2 2025, with total facilitation and origination loan volume reaching RMB84,609 million, a 16.1% increase from RMB72,864 million in the same period of 2024 [11][10]. Operational Insights - The weighted average contractual tenor of loans originated was approximately 10.33 months, compared to 9.97 months in the same period of 2024 [11]. - The 90-day+ delinquency rate was 1.97% as of June 30, 2025 [11]. - Repeat borrower contribution for loans originated was 93.8% in Q2 2025 [11]. Strategic Developments - The company issued a record amount of Asset-Backed Securities (ABS) during the quarter, and the blended funding cost declined despite liquidity shortages in certain industry segments [14]. - More than half of new credit line users were acquired through embedded finance partners, indicating a diversification in user acquisition channels [14]. - The company plans to allocate more resources to AI applications across its credit service offerings to enhance efficiency and service quality [15]. Future Outlook - For Q3 2025, the company expects net income between RMB1.52 billion and RMB1.72 billion, and non-GAAP net income between RMB1.60 billion and RMB1.80 billion, reflecting a year-on-year decline of 2% to 13% [44].