Core Insights - Qifu Technology Co., Ltd. reported its Q3 2025 unaudited financial results, showing a net revenue of RMB 5.206 billion, a year-on-year increase of 19.1%, but a slight quarter-on-quarter decrease of 0.2% [2] - The company experienced a net profit of RMB 1.433 billion, down 20.3% year-on-year and 17.2% quarter-on-quarter, indicating a shift towards a lower-risk, light-asset business model [2][6] Revenue Structure - The revenue is divided into "credit-driven services" and "platform services." Credit-driven services generated RMB 3.869 billion, a 33.4% year-on-year increase, driven by the expansion of heavy capital loan facilitation [3] - Platform services saw a net revenue of RMB 1.337 billion, down 9.0% year-on-year, primarily due to a contraction in light capital facilitation [4] Cost and Expenses - Total operating costs and expenses surged to RMB 3.506 billion, a 68.5% increase year-on-year, with significant rises in loan provisions and marketing expenses [5][6] - The company reported a substantial increase in provisions for receivables, reflecting a cautious approach to risk management amid expanding loan scales [5] Asset Quality and Financial Health - The overall overdue rate exceeded 90 days at 2.09%, with a first-day overdue rate of approximately 5.5%, indicating pressure on existing loan quality [6] - The company maintained a healthy cash flow, with a net operating cash flow of RMB 2.501 billion and total assets of RMB 61.449 billion, showing a solid financial position despite rising liabilities [6] Future Outlook - For Q4 2025, the company expects net profit to range between RMB 0.92 billion and RMB 1.12 billion, reflecting a year-on-year decline of 39% to 49% [6] - The management emphasizes a cautious outlook due to macroeconomic and regulatory uncertainties, while also focusing on AI technology as a long-term growth driver [7]