Financial Data and Key Metrics Changes - Total loan facilitation and origination volume decreased by 21.8% year-over-year to RMB 70.3 billion in Q4 2025, while full-year volume reached approximately RMB 327.1 billion, representing a year-over-year increase of 1.6% [4][5] - Non-GAAP net income in Q4 decreased by 45.7% year-over-year to RMB 1.07 billion, while full-year non-GAAP net income declined by 1% year-over-year to RMB 6.35 billion [4][5] - Non-GAAP EPADS on a fully diluted basis decreased by 39.8% year-over-year to RMB 8.23 in Q4, but increased by 10.4% year-over-year to RMB 46.8 for the full year [4][5][23] Business Line Data and Key Metrics Changes - Revenue from credit-driven services was RMB 3.43 billion in Q4, down from RMB 3.87 billion in Q3 and RMB 2.89 billion a year ago, while revenue from platform services was RMB 660 million in Q4, down from RMB 1.34 billion in Q3 [19][20] - The average IRR of loans originated and/or facilitated declined by about 150 basis points compared to the prior quarter [20] - The proportion of loan volume from high-quality borrowers rose by six percentage points sequentially in Q4 [7] Market Data and Key Metrics Changes - The C-M2 ratio, representing the outstanding delinquency rate after thirty days of collection, increased to 0.97% in Q4, the highest recorded since COVID in 2020 [7][22] - The 90-day delinquency rate was 2.71% in Q4 compared to 2.09% in Q3, while the 30-day collection rate was 84.1% in Q4 versus 85.7% in Q3 [21][22] Company Strategy and Development Direction - The company is focusing on compliance and risk management as core strategies in response to regulatory changes, aiming for a healthier market environment [3] - The company plans to continue expanding into lower pricing borrower segments while optimizing its customer mix [12] - The international business strategy includes pursuing opportunities in Europe, Latin America, and Southeast Asia to drive long-term growth [17][58] Management Comments on Operating Environment and Future Outlook - Management noted that the consumer finance industry is undergoing a systemic restructuring, which has tightened market liquidity and suppressed credit demand [3] - The company expects ongoing consolidation in the industry to create broader opportunities for leading credit-tech platforms [3] - For Q1 2026, the company expects to generate non-GAAP net income between RMB 900 million and RMB 950 million, representing a year-on-year decline between 51% and 53% [29] Other Important Information - The company returned approximately $200 million in dividends and $680 million via share repurchases in 2025, representing 98% of its 2024 GAAP net income [17][35] - Total ABS issuance grew 40.8% year-over-year to RMB 21.4 billion, with average issuance costs declining by 72 basis points from the previous year [11] Q&A Session Summary Question: What is the medium to long-term outlook for loan pricing and sustainable net take rates? - Management indicated that regulatory efforts to reduce funding costs will lead to a healthier market, with a focus on high-quality users and potential for further downward adjustment in average pricing for 2026 [31][33] Question: How does the company balance dividends and buybacks, and is the dividend sustainable? - Management emphasized a commitment to shareholder returns, maintaining a progressive dividend policy while being cautious with buybacks due to macro uncertainties [35][36] Question: What has been the trend of risk indicators and the outlook for new loan volume growth? - Management reported improvements in risk indicators, with a focus on high-quality customers, while maintaining a prudent risk strategy amid ongoing industry adjustments [39][56] Question: What is the outlook on the proportion of capital-heavy versus capital-light business models? - Management indicated a shift towards a more capital-light model in 2026, depending on macro conditions, while not setting a fixed target for the mix [43] Question: Can management provide updates on overseas market expansion strategies? - Management confirmed active exploration of multiple markets, including Europe and Latin America, with plans to grow overseas teams and leverage technology for global expansion [58][59]

Core Insights - Qfin Holdings reported its unaudited financial results for Q3 2025, highlighting a challenging macroeconomic environment and regulatory changes impacting operations [1][13][15]. Business Highlights - As of September 30, 2025, Qfin's platform connected 167 financial institutional partners and 283.7 million consumers, marking an 11.6% increase from 254.3 million a year prior [11]. - Cumulative users with approved credit lines reached 62.1 million, up 12.6% from 55.2 million year-over-year [11]. - The number of cumulative borrowers with successful drawdowns was 38.1 million, reflecting a 15.1% increase from 33.1 million a year ago [11]. - In Q3 2025, financial institutional partners originated 22,475,059 loans through the platform [11]. - Total loan facilitation and origination volume was RMB 83,280 million, a 1.0% increase from RMB 82,436 million in the same period of 2024 [11]. Financial Highlights - Total net revenue for Q3 2025 was RMB 5,205.7 million (US$ 731.2 million), compared to RMB 4,370.2 million in the same period of 2024 [19][18]. - Net income was RMB 1,432.5 million (US$ 201.2 million), down from RMB 1,798.8 million in Q3 2024 [36]. - Non-GAAP net income was RMB 1,508.2 million (US$ 211.9 million), compared to RMB 1,825.1 million in the same period of 2024 [37]. - The weighted average contractual tenor of loans originated was approximately 10.58 months, compared to 10.12 months in Q3 2024 [11]. - The 90-day+ delinquency rate was 2.09% as of September 30, 2025 [11]. Operational Insights - The company issued nearly RMB 18.9 billion in asset-backed securities (ABS) in the first three quarters of 2025, over a 40% increase from the same period last year [14]. - Approximately 48% of the quarter-end loan balance was under the capital-light model, ICE, and total technology solutions [14]. - The company aims to maintain resilience in its baseline business while optimizing resource allocation amid macro challenges [15]. Future Outlook - For Q4 2025, the company expects net income between RMB 0.92 billion and RMB 1.12 billion, representing a year-on-year decline of 39% to 49% [43]. - For the full year 2025, net income is projected to be between RMB 5.88 billion and RMB 6.08 billion, reflecting a year-on-year change of -2% to +1% [43].

Core Viewpoint - Qifu Technology, Inc. is set to hold its annual general meeting (AGM) on June 30, 2025, to discuss several key resolutions including a name change and re-appointment of auditors [1][4]. Group 1: AGM Details - The AGM will take place at 10:00 a.m. on June 30, 2025, in Shanghai, China [1]. - The agenda includes changing the company's English name from "Qifu Technology, Inc." to "Qfin Holdings, Inc." [1]. - The company plans to adopt an amended and restated memorandum and articles of association [1]. - Deloitte Touche Tohmatsu Certified Public Accountants LLP is proposed to be re-appointed as the auditor until the next AGM [1]. - Mr. Xiangge Liu is up for re-election as a director of the company [1]. Group 2: Shareholder Information - The record date for Class A ordinary shares is set for May 27, 2025, Hong Kong time, allowing holders to attend and vote at the AGM [2]. - Holders of American Depositary Shares (ADSs) must provide voting instructions to The Bank of New York Mellon to exercise their voting rights [3]. Group 3: Company Overview - Qifu Technology is recognized as a leading AI-empowered Credit-Tech platform in China, offering a range of technology services to financial institutions and consumers [5]. - The company utilizes advanced machine learning models and data analytics to enhance the loan lifecycle, including borrower acquisition and credit assessment [5]. - Qifu Technology aims to make credit services more accessible and personalized for consumers and SMEs through its Credit-Tech services [5].