Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) (“Qifu Technology”
or the “Company”), a leading Credit-Tech platform in China, today
announced its unaudited financial results for the third quarter
ended September 30, 2023.
Third Quarter 2023 Business
Highlights
- As of September 30, 2023, our
platform has connected 155 financial institutional partners and
227.9 million consumers*1 with potential credit needs,
cumulatively, an increase of 12.0% from 203.5 million a year
ago.
- Cumulative users with approved
credit lines*2 were 49.2 million as of September 30, 2023, an
increase of 14.4% from 43.0 million as of September 30, 2022.
- Cumulative borrowers with
successful drawdown, including repeat borrowers was 29.4 million as
of September 30, 2023, an increase of 11.9% from 26.3 million as of
September 30, 2022.
- In the third quarter of 2023,
financial institutional partners originated 18,504,320 loans*3
through our platform. Total facilitation and origination loan
volume reached RMB123,148 million*4, an increase of 11.3% from
RMB110,675 million in the same period of 2022.
- Out of those loans originated by
financial institutions, RMB69,579 million was under capital-light
model, Intelligence Credit Engine (“ICE”) and other technology
solutions*5, representing 56.5% of the total, an increase of 7.7%
from RMB64,583 million in the same period of 2022.
- Total outstanding loan balance*6
was RMB189,100 million as of September 30, 2023, an increase of
18.2% from RMB160,020 million as of September 30, 2022.
- RMB116,283 million of such loan
balance was under capital-light model, “ICE” and other technology
solutions*7, an increase of 27.5% from RMB91,196 million as of
September 30, 2022.
- The weighted average contractual
tenor of loans originated by financial institutions across our
platform in the third quarter of 2023 was approximately 11.23
months, compared with approximately 12.27 months in the same period
of 2022.
- 90 day+ delinquency rate*8 of loans
originated by financial institutions across our platform was 1.82%
as of September 30, 2023.
- Repeat borrower contribution*9 of
loans originated by financial institutions across our platform for
the third quarter of 2023 was 91.5%.
1 Refers to cumulative registered users across
our platform.2 “Users with approved credit lines” refers to the
total number of users who had submitted their credit applications
and were approved with a credit line at the end of each period.3
Including 5,935,834 loans across “V-pocket”, and 12,568,486 loans
across other products.4 Refers to the total principal amount of
loans facilitated and originated during the given period, including
loan volume facilitated through Intelligence Credit Engine (“ICE”)
and other technology solutions. 5 “ICE” is an open platform on our
“360 Jietiao” APP, we match borrowers and financial institutions
through big data and cloud computing technology on “ICE”, and
provide pre-loan investigation report of borrowers. For loans
facilitated through “ICE”, the Company does not bear principal
risk. Loan facilitation volume through “ICE” was RMB9,629 million
in the third quarter of 2023.Under other technology solutions, we
offer financial institutions on-premise deployed, modular risk
management SaaS, which helps financial institution partners improve
credit assessment results. Loan facilitation volume through other
technology solutions was RMB26,563 million in the third quarter of
2023.6 “Total outstanding loan balance” refers to the total amount
of principal outstanding for loans facilitated and originated at
the end of each period, including loan balance for “ICE” and other
technology solutions, excluding loans delinquent for more than 180
days.7 Outstanding loan balance for “ICE” and other technology
solutions were RMB12,720 million and RMB42,134 million,
respectively, as of September 30, 2023.8 “90 day+ delinquency rate”
refers to the outstanding principal balance of on- and off-balance
sheet loans that were 91 to 180 calendar days past due as a
percentage of the total outstanding principal balance of on- and
off-balance sheet loans across our platform as of a specific date.
Loans that are charged-off and loans under “ICE” and other
technology solutions are not included in the delinquency rate
calculation.9 “Repeat borrower contribution” for a given period
refers to (i) the principal amount of loans borrowed during that
period by borrowers who had historically made at least one
successful drawdown, divided by (ii) the total loan facilitation
and origination volume through our platform during that period.
Third Quarter 2023 Financial
Highlights
- Total net revenue was RMB4,281.0
million (US$586.8 million), compared to RMB4,144.1 million in the
same period of 2022.
- Income from operations was
RMB1,388.9 million (US$190.4 million), compared to RMB1,158.3
million in the same period of 2022.
- Non-GAAP*10 income from operations
was RMB1,432.2 million (US$196.3 million), compared to RMB1,207.8
million in the same period of 2022.
- Operating margin was 32.4%.
Non-GAAP operating margin was 33.5%.
- Net income was RMB1,137.7 million
(US$155.9 million), compared to RMB988.4 million in the same period
of 2022.
- Non-GAAP net income was RMB1,181.0
million (US$161.9 million), compared to RMB1,037.9 million in the
same period of 2022.
- Net income attributed to the
Company was RMB1,142.0 million (US$156.5 million), compared to
RMB992.8 million in the same period of 2022.
- Net income margin was 26.6%.
Non-GAAP net income margin was 27.6%.
10 Non-GAAP income from operations (Adjusted
Income from operations), Non-GAAP net income (Adjusted net income),
Non-GAAP operating margin and Non-GAAP net income margin are
non-GAAP financial measures. For more information on these non-GAAP
financial measures, please see the section of “Use of Non-GAAP
Financial Measures Statement” and the table captioned “Unaudited
Reconciliations of GAAP and Non-GAAP Results” set forth at the end
of this press release.
Mr. Haisheng Wu, Chief Executive Officer and
Director of Qifu Technology, commented, “As macro-economic recovery
stalled and consumer sentiment softened, we made timely adjustment
to our strategies and focused our effort on refined operations to
drive better profitability and quality growth. For the third
quarter, total loan facilitation and origination volume was
RMB123.1 billion, up 11.3% year-on-year. Approximately 56% of the
loan volume was facilitated under the capital-light model, ICE and
other technology solutions.
Through optimizing customer acquisition channels
and enriching product and service offerings, we added over 1.7
million new users with approved credit lines. In addition, we
continued to strengthen our partnership with financial institutions
and achieve overall better funding terms. During the quarter with
the help of new ABS issuance, we further reduce our overall funding
costs to record low levels.
As economic headwind persists, we experienced
some fluctuation in asset quality during the quarter. However, many
of the operational initiatives we launched in the quarter should
continue to make positive contributions through the remainder of
this year and the next year. In the long run, we will continue to
drive for consistent executions and optimal balance between quality
growth and manageable risks.”
“We are pleased to report another quarter of
solid financial results in a rather challenging macro environment.
Total revenue was RMB4.28 billion and non-GAAP net income was
RMB1.18 billion for the third quarter,” Mr. Alex Xu, Chief
Financial Officer, commented. “During the quarter, despite the
macro uncertainty, we continued to improve our operational
efficiency and drive for better economic returns. At the end of the
third quarter, our total cash and cash equivalent*11 was
approximately RMB8.2 billion, and we generated approximately RMB1.2
billion cash from operations. Our strong financial positions not
only enable us to drive quality growth, but also allow us to
deliver attractive shareholder returns through dividend payout and
share repurchase.”
Mr. Yan Zheng, Chief Risk Officer, added, “We
started to see fluctuation on key risk metrics in the third quarter
as macro uncertainties impacted consumers’ sentiment and financial
wellness. We took quick actions to tighten our credit assessment
criteria to cope with the uncertainties. Among key leading
indicators, Day-1 delinquency rate*12 was 4.6%, and 30-day
collection rates*13 was approximately 87% for the third quarter. As
the economic conditions change, we will continue to take a prudent
approach in managing risks and navigating through this challenging
macro headwinds.”
11 Including “Cash and cash equivalents”,
“Restricted cash”, and “Security deposit prepaid to third-party
guarantee companies”.12 “Day-1 delinquency rate” is defined as (i)
the total amount of principal that became overdue as of a specified
date, divided by (ii) the total amount of principal that was due
for repayment as of such specified date.13 “30 day collection rate”
is defined as (i) the amount of principal that was repaid in one
month among the total amount of principal that became overdue as of
a specified date, divided by (ii) the total amount of principal
that became overdue as of such specified date.
Third Quarter 2023 Financial
Results
Total net revenue was
RMB4,281.0 million (US$586.8 million), compared to RMB4,144.1
million in the same period of 2022, and RMB3,914.3 million in the
prior quarter.
Net revenue from Credit Driven
Services was RMB3,071.0 million (US$420.9 million),
compared to RMB2,941.1 million in the same period of 2022, and
RMB2,788.7 million in the prior quarter.
Loan facilitation and servicing fees-capital
heavy were RMB479.2 million (US$65.7 million), compared to RMB582.9
million in the same period of 2022 and RMB395.5 million in the
prior quarter. The year-over-year decrease was primarily due to
shorter tenor of the loans compared to that in the same period of
2022. The sequential increase was primarily due to higher
capital-heavy loan volume and longer effective tenor of the loans
compared to that in the prior quarter.
Financing income*14 was RMB1,369.9 million
(US$187.8 million), compared to RMB877.1 million in the same period
of 2022 and RMB1,188.7 million in the prior quarter. The
year-over-year and sequential increases were primarily due to the
growth in average outstanding balance of the on-balance-sheet
loans.
Revenue from releasing of guarantee liabilities
was RMB1,165.7 million (US$159.8 million), compared to RMB1,447.6
million in the same period of 2022, and RMB1,158.6 million in the
prior quarter. The year-over-year and sequential changes reflected
the changes in average outstanding balance of off-balance-sheet
capital-heavy loans.
Other services fees were RMB56.1 million (US$7.7
million), compared to RMB33.6 million in the same period of 2022,
and RMB45.9 million in the prior quarter. The year-over-year and
sequential increases were mainly due to the increases in late
payment fees under the capital-heavy model.
Net revenue from Platform
Services was RMB1,210.1 million (US$165.9 million),
compared to RMB1,203.0 million in the same period of 2022 and
RMB1,125.6 million in the prior quarter.
Loan facilitation and servicing fees-capital
light were RMB863.9 million (US$118.4 million), compared to
RMB1,040.2 million in the same period of 2022 and RMB887.8 million
in the prior quarter. The year-over-year decrease was mainly due to
lower capital-light loan volume and shorter effective tenor of the
loans. The sequential decrease was primarily due to lower
capital-light loan volume.
Referral services fees were RMB234.2 million
(US$32.1 million), compared to RMB85.4 million in the same period
of 2022 and RMB160.9 million in the prior quarter. The
year-over-year and sequential increases were mainly due to the
increase in the loan facilitation volume through ICE.
Other services fees were RMB112.0 million
(US$15.4 million), compared to RMB77.4 million in the same period
of 2022 and RMB76.9 million in the prior quarter. The
year-over-year and sequential increases were mainly due to increase
in late payment fees and other service fees.
Total operating costs and
expenses were RMB2,892.2 million (US$396.4 million),
compared to RMB2,985.9 million in the same period of 2022 and
RMB2,732.8 million in the prior quarter.
Facilitation, origination and servicing expenses
were RMB639.8 million (US$87.7 million), compared to RMB617.3
million in the same period of 2022 and RMB648.0 million in the
prior quarter. The year-over-year increase was primarily due to
higher credit search fees and collection fees.
Funding costs were RMB160.2 million (US$22.0
million), compared to RMB138.5 million in the same period of 2022
and RMB165.2 million in the prior quarter. The year-over-year
increase was primarily due to increases in funding from ABS, as a
result of continued growth in on-balance-sheet loan balance,
partially offset by the lower average cost of ABS.
Sales and marketing expenses were RMB529.6
million (US$72.6 million), compared to RMB624.1 million in the same
period of 2022 and RMB436.5 million in the prior quarter. The
year-over-year decrease was mainly due to decline in unit customer
acquisition cost. The sequential increase was mainly due to larger
number of new users and slightly higher unit cost in the third
quarter.
General and administrative expenses were RMB95.4
million (US$13.1 million), compared to RMB102.7 million in the same
period of 2022 and RMB112.8 million in the prior quarter. The
year-over-year and sequential decreases were mainly due to
decreases in professional service fees and our continued effort to
improve operational efficiency.
Provision for loans receivable was RMB509.0
million (US$69.8 million), compared to RMB191.5 million in the same
period of 2022 and RMB483.3 million in the prior quarter. The
year-over-year and sequential increases were mainly due to the
growth in loan origination volume of on-balance-sheet loans.
Provision for financial assets receivable was
RMB86.9 million (US$11.9 million), compared to RMB115.1 million in
the same period of 2022 and RMB82.3 million in the prior quarter.
The year-over-year and sequential changes mainly reflected the
Company’s consistent approach in assessing provisions commensurate
with its underlying loan profile.
Provision for accounts receivable and contract
assets was RMB39.7 million (US$5.4 million), compared to RMB53.8
million in the same period of 2022 and RMB47.2 million in the prior
quarter. The year-over-year and sequential changes reflected the
Company’s consistent approach in assessing provisions commensurate
with its underlying loan profile.
Provision for contingent liability was RMB831.6
million (US$114.0 million), compared to RMB1,142.8 million in the
same period of 2022 and RMB757.6 million in the prior quarter. The
year-over-year and sequential changes reflected the Company’s
consistent approach in assessing provisions commensurate with its
underlying loan profile. In addition, the sequential increase was
also partially due to the increase in loan facilitation volume of
off-balance-sheet loans.
Income from operations was
RMB1,388.9 million (US$190.4 million), compared to RMB1,158.3
million in the same period of 2022 and RMB1,181.5 million in the
prior quarter.
Non-GAAP income from operations
was RMB1,432.2 million (US$196.3 million), compared to RMB1,207.8
million in the same period of 2022 and RMB1,234.7 million in the
prior quarter.
Operating margin was 32.4%.
Non-GAAP operating margin was 33.5%.
Income before income tax
expense was RMB1,478.1 million (US$202.6 million),
compared to RMB1,171.5 million in the same period of 2022 and
RMB1,366.3 million in the prior quarter.
Net income was RMB1,137.7
million (US$155.9 million), compared to RMB988.4 million in the
same period of 2022 and RMB1,093.4 million in the prior
quarter.
Non-GAAP net income was
RMB1,181.0 million (US$161.9 million), compared to RMB1,037.9
million in the same period of 2022 and RMB1,146.6 million in the
prior quarter.
Net income margin was 26.6%.
Non-GAAP net income margin was 27.6%.
Net income attributed to the
Company was RMB1,142.0 million (US$156.5 million),
compared to RMB992.8 million in the same period of 2022 and
RMB1,097.4 million in the prior quarter.
Non-GAAP net income
attributed to the Company was RMB1,185.3 million
(US$162.5 million), compared to RMB1,042.4 million in the same
period of 2022 and RMB1,150.7 million in the prior quarter.
Net income per fully diluted
ADS was RMB6.94 (US$0.96).
Non-GAAP net income per fully diluted
ADS was RMB7.20 (US$0.99).
Weighted average basic ADS used in
calculating GAAP and non-GAAP net income per ADS was
160.39 million.
Weighted average diluted ADS used in
calculating GAAP and non-GAAP net income per ADS was
164.61 million.
14 “Financing income” is generated from loans
facilitated through the Company’s platform funded by the
consolidated trusts and Fuzhou Microcredit, which charge fees and
interests from borrowers.
30 Day+ Delinquency Rate by Vintage and
180 Day+ Delinquency Rate by Vintage
The following charts and tables display the
historical cumulative 30 day+ delinquency rates by loan
facilitation and origination vintage and 180 day+ delinquency rates
by loan facilitation and origination vintage for all loans
facilitated and originated through the Company’s platform. Loans
under “ICE” and other technology solutions are not included in the
30 day+ charts and the 180 day+ charts:
http://ml.globenewswire.com/Resource/Download/e56afd67-5dca-451d-9333-b92c4f4aa954
http://ml.globenewswire.com/Resource/Download/013031cc-cad2-4610-a707-e0526602e43d
Update on Share Repurchase
On June 20, 2023, the Company announced a share
repurchase plan whereby the Company is authorized to repurchase its
American depositary shares (“ADSs”) or Class A ordinary shares with
an aggregate value of up to US$150 million during the 12-month
period from June 20, 2023. From the launch of the share repurchase
plan to November 16, 2023, the Company in aggregate purchased
approximately 4.9 million ADSs in the open market for a total cost
of approximately US$80 million (inclusive of commissions) at an
average price around US$16.2 per ADS pursuant to the share
repurchase plan.
Business Outlook
Given the slower than expected macro-economic
recovery and persistent uncertainties, the Company will continue to
take a prudent approach in business planning and risk management.
As such, the Company now expects total loan volume for the fourth
quarter to be between RMB116 billion and RMB126 billion, and for
the full year total loan volume to be between RMB473 billion and
RMB483 billion, representing a year-on-year growth of 15%-17%. This
outlook reflects the Company’s current and preliminary views, which
is subject to material changes.
Conference Call
Preregistration
Qifu Technology’s management team will host an
earnings conference call at 7:30 PM U.S. Eastern Time on Thursday,
November 16, 2023 (8:30 AM Beijing Time on Friday, November 17,
2023).
All participants wishing to join the conference
call must pre-register online using the link provided below.
Registration Link:
https://register.vevent.com/register/BI21f98dce365242beac459791a07d81ab
Upon registration, each participant will receive
details for the conference call, including dial-in numbers and a
unique access PIN. Please dial in 10 minutes before the call is
scheduled to begin.
Additionally, a live and archived webcast of the
conference call will be available on the Investor Relations section
of the Company's website at http://ir.qifu.tech.
About Qifu Technology
Qifu Technology is a Credit-Tech platform in
China that provides a comprehensive suite of technology services to
assist financial institutions and consumers and SMEs in the loan
lifecycle, ranging from borrower acquisition, preliminary credit
assessment, fund matching and post-facilitation services. The
Company is dedicated to making credit services more accessible and
personalized to consumers and SMEs through Credit-Tech services to
financial institutions.
For more information, please visit:
https://ir.qifu.tech.
Use of Non-GAAP Financial Measures
Statement
To supplement our financial results presented in
accordance with U.S. GAAP, we use Non-GAAP financial measure, which
is adjusted from results based on U.S. GAAP to exclude share-based
compensation expenses. Reconciliations of our Non-GAAP financial
measures to our U.S. GAAP financial measures are set forth in
tables at the end of this earnings release, which provide more
details on the Non-GAAP financial measures.
We use Non-GAAP income from operation, Non-GAAP
operating margin, Non-GAAP net income, Non-GAAP net income margin,
Non-GAAP net income attributed to the Company and Non-GAAP net
income per fully diluted ADS in evaluating our operating results
and for financial and operational decision-making purposes.
Non-GAAP income from operation represents income from operation
excluding share-based compensation expenses. Non-GAAP operating
margin is equal to Non-GAAP income from operation divided by total
net revenue. Non-GAAP net income represents net income excluding
share-based compensation expenses. Non-GAAP net income margin is
equal to Non-GAAP net income divided by total net revenue. Non-GAAP
net income attributed to the Company represents net income
attributed to the Company excluding share-based compensation
expenses. Non-GAAP net income per fully diluted ADS represents net
income per fully diluted ADS excluding share-based compensation
expenses. Such adjustments have no impact on income tax. We believe
that Non-GAAP income from operation and Non-GAAP net income help
identify underlying trends in our business that could otherwise be
distorted by the effect of certain expenses that we include in
results based on U.S. GAAP. We believe that Non-GAAP income from
operation and Non-GAAP net income provide useful information about
our operating results, enhance the overall understanding of our
past performance and future prospects and allow for greater
visibility with respect to key metrics used by our management in
its financial and operational decision-making. Our Non-GAAP
financial information should be considered in addition to results
prepared in accordance with U.S. GAAP, but should not be considered
a substitute for or superior to U.S. GAAP results. In addition, our
calculation of Non-GAAP financial information may be different from
the calculation used by other companies, and therefore
comparability may be limited.
Exchange Rate Information
This announcement contains translations of
certain RMB amounts into U.S. dollars at specified rates solely for
the convenience of the reader. Unless otherwise noted, all
translations from RMB to U.S. dollars are made at a rate of
RMB7.2960 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of September 29, 2023.
Safe Harbor Statement
Any forward-looking statements contained in this
announcement are made under the “safe harbor” provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates” and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as the Company’s strategic and operational
plans, contain forward-looking statements. Qifu Technology may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (“SEC”), in
announcements made on the website of The Stock Exchange of Hong
Kong Limited (the “Hong Kong Stock Exchange”), in its annual report
to shareholders, in press releases and other written materials and
in oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
the Company’s business outlook, beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, which factors include but not limited to
the following: the Company’s growth strategies, the Company’s
cooperation with 360 Group, changes in laws, rules and regulatory
environments, the recognition of the Company’s brand, market
acceptance of the Company’s products and services, trends and
developments in the credit-tech industry, governmental policies
relating to the credit-tech industry, general economic conditions
in China and around the globe, and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks and uncertainties is included in Qifu
Technology’s filings with the SEC and announcements on the website
of the Hong Kong Stock Exchange. All information provided in this
press release is as of the date of this press release, and Qifu
Technology does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For more information, please
contact:
Qifu
Technology E-mail:
ir@360shuke.com
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Qifu Technology, Inc. |
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Unaudited Condensed Consolidated Balance
Sheets |
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(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("USD")except for number of shares and per share data, or otherwise
noted) |
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|
December 31, |
September 30, |
September 30, |
|
| |
|
2022 |
2023 |
2023 |
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| |
|
RMB |
RMB |
USD |
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| |
ASSETS |
|
|
|
|
| |
Current assets: |
|
|
|
|
| |
Cash and cash equivalents |
7,165,584 |
4,938,298 |
676,850 |
|
| |
Restricted cash |
3,346,779 |
3,067,100 |
420,381 |
|
| |
Short term investments |
57,000 |
- |
- |
|
| |
Security deposit prepaid to third-party guarantee companies |
396,699 |
192,037 |
26,321 |
|
| |
Funds receivable from third party payment service providers |
1,158,781 |
1,664,417 |
228,127 |
|
| |
Accounts receivable and contract assets, net |
2,868,625 |
2,842,438 |
389,589 |
|
| |
Financial assets receivable, net |
2,982,076 |
2,716,113 |
372,274 |
|
| |
Amounts due from related parties |
394,872 |
67,312 |
9,226 |
|
| |
Loans receivable, net |
15,347,662 |
23,469,654 |
3,216,784 |
|
| |
Prepaid expenses and other assets |
379,388 |
1,052,436 |
144,248 |
|
| |
Total current assets |
34,097,466 |
40,009,805 |
5,483,800 |
|
| |
Non-current assets: |
|
|
|
|
| |
Accounts receivable and contract assets, net-non current |
261,319 |
159,923 |
21,919 |
|
| |
Financial assets receivable, net-non current |
688,843 |
570,009 |
78,126 |
|
| |
Amounts due from related parties |
33,236 |
8,177 |
1,121 |
|
| |
Loans receivable, net-non current |
3,136,994 |
2,870,943 |
393,495 |
|
| |
Property and equipment, net |
47,602 |
148,285 |
20,324 |
|
| |
Land use rights,net |
998,185 |
982,642 |
134,682 |
|
| |
Intangible assets |
4,696 |
13,567 |
1,860 |
|
| |
Goodwill |
- |
41,210 |
5,648 |
|
| |
Deferred tax assets |
1,019,171 |
1,181,488 |
161,936 |
|
| |
Other non-current assets |
55,658 |
53,021 |
7,267 |
|
| |
Total non-current assets |
6,245,704 |
6,029,265 |
826,378 |
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| |
TOTAL ASSETS |
40,343,170 |
46,039,070 |
6,310,178 |
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LIABILITIES AND EQUITY |
|
|
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Current liabilities: |
|
|
|
|
| |
Payable to investors of the consolidated trusts-current |
6,099,520 |
6,938,377 |
950,984 |
|
| |
Accrued expenses and other current liabilities |
2,004,551 |
2,674,368 |
366,553 |
|
| |
Amounts due to related parties |
113,697 |
152,740 |
20,935 |
|
| |
Short term loans |
150,000 |
756,278 |
103,657 |
|
| |
Guarantee liabilities-stand ready |
4,120,346 |
3,981,851 |
545,758 |
|
| |
Guarantee liabilities-contingent |
3,418,391 |
3,352,336 |
459,476 |
|
| |
Income tax payable |
661,015 |
1,010,478 |
138,498 |
|
| |
Other tax payable |
182,398 |
129,555 |
17,757 |
|
| |
Total current liabilities |
16,749,918 |
18,995,983 |
2,603,618 |
|
| |
Non-current liabilities: |
|
|
|
|
| |
Deferred tax liabilities |
100,835 |
117,173 |
16,060 |
|
| |
Payable to investors of the consolidated trusts-noncurrent |
4,521,600 |
5,697,700 |
780,935 |
|
| |
Other long-term liabilities |
39,520 |
98,574 |
13,511 |
|
| |
Total non-current liabilities |
4,661,955 |
5,913,447 |
810,506 |
|
| |
TOTAL LIABILITIES |
21,411,873 |
24,909,430 |
3,414,124 |
|
| |
TOTAL QIFU TECHNOLOGY INC EQUITY |
18,847,156 |
21,053,214 |
2,885,579 |
|
| |
Noncontrolling interests |
84,141 |
76,426 |
10,475 |
|
| |
TOTAL EQUITY |
18,931,297 |
21,129,640 |
2,896,054 |
|
| |
TOTAL LIABILITIES AND EQUITY |
40,343,170 |
46,039,070 |
6,310,178 |
|
| |
|
|
|
|
|
| |
Qifu Technology, Inc. |
|
|
|
Unaudited Condensed Consolidated Statements of
Operations |
|
| |
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("USD")except for number of shares and per share data, or otherwise
noted) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
|
2022 |
|
2023 |
|
2023 |
|
|
2022 |
|
2023 |
|
2023 |
|
|
| |
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
|
|
|
Credit driven services |
2,941,106 |
|
3,070,969 |
|
420,911 |
|
|
8,809,503 |
|
8,490,297 |
|
1,163,692 |
|
|
|
|
Loan facilitation and servicing fees-capital heavy |
582,857 |
|
479,248 |
|
65,686 |
|
|
1,724,628 |
|
1,185,924 |
|
162,544 |
|
|
|
|
Financing income |
877,051 |
|
1,369,855 |
|
187,754 |
|
|
2,485,871 |
|
3,624,475 |
|
496,776 |
|
|
|
|
Revenue from releasing of guarantee liabilities |
1,447,592 |
|
1,165,737 |
|
159,778 |
|
|
4,522,107 |
|
3,534,111 |
|
484,390 |
|
|
|
|
Other services fees |
33,606 |
|
56,129 |
|
7,693 |
|
|
76,897 |
|
145,787 |
|
19,982 |
|
|
|
|
Platform services |
1,203,023 |
|
1,210,057 |
|
165,852 |
|
|
3,837,872 |
|
3,304,227 |
|
452,881 |
|
|
|
|
Loan facilitation and servicing fees-capital light |
1,040,210 |
|
863,860 |
|
118,402 |
|
|
3,169,165 |
|
2,516,970 |
|
344,979 |
|
|
|
|
Referral services fees |
85,381 |
|
234,190 |
|
32,098 |
|
|
468,031 |
|
503,530 |
|
69,014 |
|
|
|
|
Other services fees |
77,432 |
|
112,007 |
|
15,352 |
|
|
200,676 |
|
283,727 |
|
38,888 |
|
|
|
|
Total net revenue |
4,144,129 |
|
4,281,026 |
|
586,763 |
|
|
12,647,375 |
|
11,794,524 |
|
1,616,573 |
|
|
|
|
Facilitation, origination and servicing |
617,311 |
|
639,795 |
|
87,691 |
|
|
1,787,872 |
|
1,928,125 |
|
264,272 |
|
|
|
|
Funding costs |
138,475 |
|
160,181 |
|
21,955 |
|
|
366,105 |
|
484,429 |
|
66,397 |
|
|
|
|
Sales and marketing |
624,104 |
|
529,632 |
|
72,592 |
|
|
1,791,761 |
|
1,388,295 |
|
190,282 |
|
|
|
|
General and administrative |
102,721 |
|
95,393 |
|
13,075 |
|
|
318,869 |
|
313,039 |
|
42,906 |
|
|
|
|
Provision for loans receivable |
191,542 |
|
508,990 |
|
69,763 |
|
|
1,098,859 |
|
1,511,160 |
|
207,122 |
|
|
|
|
Provision for financial assets receivable |
115,144 |
|
86,875 |
|
11,907 |
|
|
279,361 |
|
237,892 |
|
32,606 |
|
|
|
|
Provision for accounts receivable and contract assets |
53,762 |
|
39,724 |
|
5,445 |
|
|
170,787 |
|
84,694 |
|
11,608 |
|
|
|
|
Provision for contingent liabilities |
1,142,820 |
|
831,563 |
|
113,975 |
|
|
3,305,458 |
|
2,269,487 |
|
311,059 |
|
|
|
|
Total operating costs and expenses |
2,985,879 |
|
2,892,153 |
|
396,403 |
|
|
9,119,072 |
|
8,217,121 |
|
1,126,252 |
|
|
|
|
Income from operations |
1,158,250 |
|
1,388,873 |
|
190,360 |
|
|
3,528,303 |
|
3,577,403 |
|
490,321 |
|
|
|
|
Interest income, net |
57,819 |
|
49,713 |
|
6,814 |
|
|
126,007 |
|
170,337 |
|
23,347 |
|
|
|
|
Foreign exchange (loss) gain |
(68,583 |
) |
(659 |
) |
(90 |
) |
|
(155,241 |
) |
3,171 |
|
435 |
|
|
|
|
Other income, net |
24,027 |
|
40,175 |
|
5,506 |
|
|
227,485 |
|
225,727 |
|
30,938 |
|
|
|
|
Investment loss |
- |
|
- |
|
- |
|
|
(8,996 |
) |
(30,112 |
) |
(4,127 |
) |
|
|
|
Income before income tax expense |
1,171,513 |
|
1,478,102 |
|
202,590 |
|
|
3,717,558 |
|
3,946,526 |
|
540,914 |
|
|
|
|
Income taxes expense |
(183,159 |
) |
(340,412 |
) |
(46,657 |
) |
|
(579,891 |
) |
(785,637 |
) |
(107,681 |
) |
|
|
|
Net income |
988,354 |
|
1,137,690 |
|
155,933 |
|
|
3,137,667 |
|
3,160,889 |
|
433,233 |
|
|
|
|
Net loss attributable to noncontrolling interests |
4,481 |
|
4,357 |
|
597 |
|
|
14,505 |
|
12,707 |
|
1,742 |
|
|
|
|
Net income attributable to ordinary shareholders of the
Company |
992,835 |
|
1,142,047 |
|
156,530 |
|
|
3,152,172 |
|
3,173,596 |
|
434,975 |
|
|
|
|
Net income per ordinary share attributable to ordinary shareholders
of Qifu Technology, Inc. |
|
|
|
|
|
|
|
Basic |
3.18 |
|
3.56 |
|
0.49 |
|
|
10.12 |
|
9.85 |
|
1.35 |
|
|
|
|
Diluted |
3.09 |
|
3.47 |
|
0.48 |
|
|
9.81 |
|
9.61 |
|
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS attributable to ordinary shareholders of Qifu
Technology, Inc. |
|
|
|
|
|
|
|
Basic |
6.36 |
|
7.12 |
|
0.98 |
|
|
20.24 |
|
19.70 |
|
2.70 |
|
|
|
|
Diluted |
6.18 |
|
6.94 |
|
0.96 |
|
|
19.62 |
|
19.22 |
|
2.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating net income per ordinary
share |
|
|
|
|
|
|
|
|
Basic |
312,481,135 |
|
320,789,494 |
|
320,789,494 |
|
|
311,571,575 |
|
322,240,695 |
|
322,240,695 |
|
|
|
|
Diluted |
321,521,765 |
|
329,220,827 |
|
329,220,827 |
|
|
321,224,803 |
|
330,391,888 |
|
330,391,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qifu Technology,
Inc. |
|
|
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("USD")except for number of shares and per share data, or otherwise
noted) |
|
| |
|
|
|
|
|
|
|
|
| |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2022 |
|
2023 |
|
2023 |
|
|
2022 |
|
2023 |
|
2023 |
|
|
| |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
|
|
Net cash provided by operating activities |
1,592,127 |
|
1,243,893 |
|
170,490 |
|
|
4,130,038 |
|
4,766,559 |
|
653,311 |
|
|
|
Net cash used in investing activities |
(2,981,196 |
) |
(2,260,922 |
) |
(309,885 |
) |
|
(5,675,628 |
) |
(9,262,095 |
) |
(1,269,476 |
) |
|
|
Net cash provided by financing activities |
881,092 |
|
702,952 |
|
96,348 |
|
|
3,010,269 |
|
1,978,079 |
|
271,118 |
|
|
|
Effect of foreign exchange rate changes |
7,081 |
|
4,934 |
|
675 |
|
|
4,704 |
|
10,492 |
|
1,439 |
|
|
|
Net (decrease) increase in cash and cash equivalents |
(500,896 |
) |
(309,143 |
) |
(42,372 |
) |
|
1,469,383 |
|
(2,506,965 |
) |
(343,608 |
) |
|
|
Cash, cash equivalents, and restricted cash, beginning of
period |
10,730,226 |
|
8,314,541 |
|
1,139,603 |
|
|
8,759,947 |
|
10,512,363 |
|
1,440,839 |
|
|
|
Cash, cash equivalents, and restricted cash, end of period |
10,229,330 |
|
8,005,398 |
|
1,097,231 |
|
|
10,229,330 |
|
8,005,398 |
|
1,097,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Qifu Technology, Inc. |
|
|
Unaudited Condensed Consolidated Statements of
Comprehensive (Loss)/Income |
|
|
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("USD")except for number of shares and per share data, or otherwise
noted) |
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
2022 |
2023 |
2023 |
|
| |
RMB |
RMB |
USD |
|
|
Net income |
988,354 |
1,137,690 |
155,933 |
|
|
Other comprehensive income, net of tax of nil: |
|
|
|
|
|
Foreign currency translation adjustment |
36,950 |
4,051 |
555 |
|
|
Other comprehensive income |
36,950 |
4,051 |
555 |
|
|
Total comprehensive income |
1,025,304 |
1,141,741 |
156,488 |
|
|
Comprehensive loss attributable to noncontrolling interests |
4,481 |
4,357 |
597 |
|
|
Comprehensive income attributable to ordinary
shareholders |
1,029,785 |
1,146,098 |
157,085 |
|
|
|
|
|
|
|
| |
|
|
|
|
| |
Nine months ended September 30, |
|
| |
2022 |
2023 |
2023 |
|
| |
RMB |
RMB |
USD |
|
|
Net income |
3,137,667 |
3,160,889 |
433,233 |
|
|
Other comprehensive income, net of tax of nil: |
|
|
|
|
|
Foreign currency translation adjustment |
80,270 |
20,724 |
2,840 |
|
|
Other comprehensive income |
80,270 |
20,724 |
2,840 |
|
|
Total comprehensive income |
3,217,937 |
3,181,613 |
436,073 |
|
|
Comprehensive loss attributable to noncontrolling interests |
14,505 |
12,707 |
1,742 |
|
|
Comprehensive income attributable to ordinary
shareholders |
3,232,442 |
3,194,320 |
437,815 |
|
|
|
|
Qifu Technology, Inc. |
|
|
Unaudited Reconciliations of GAAP and Non-GAAP
Results |
|
|
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("USD")except for number of shares and per share data, or otherwise
noted) |
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
2022 |
|
2023 |
|
2023 |
|
| |
RMB |
RMB |
USD |
|
|
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
|
Net income |
988,354 |
|
1,137,690 |
|
155,933 |
|
|
Add: Share-based compensation expenses |
49,550 |
|
43,289 |
|
5,933 |
|
|
Non-GAAP net income |
1,037,904 |
|
1,180,979 |
|
161,866 |
|
|
GAAP net income margin |
23.8 |
% |
26.6 |
% |
|
|
|
Non-GAAP net income margin |
25.0 |
% |
27.6 |
% |
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of Qifu Technology,
Inc. |
992,835 |
|
1,142,047 |
|
156,530 |
|
|
Add: Share-based compensation expenses |
49,550 |
|
43,289 |
|
5,933 |
|
|
Non-GAAP net income attributable to shareholders of Qifu
Technology, Inc. |
1,042,385 |
|
1,185,336 |
|
162,463 |
|
|
Weighted average ADS used in calculating net income per ordinary
share for both GAAP and non-GAAP EPS -diluted |
160,760,883 |
|
164,610,414 |
|
164,610,414 |
|
|
Net income per ADS attributable to ordinary shareholders of Qifu
Technology, Inc. -diluted |
6.18 |
|
6.94 |
|
0.96 |
|
|
Non-GAAP net income per ADS attributable to ordinary shareholders
of Qifu Technology, Inc. -diluted |
6.48 |
|
7.20 |
|
0.99 |
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
|
Income from operations |
1,158,250 |
|
1,388,873 |
|
190,360 |
|
|
Add: Share-based compensation expenses |
49,550 |
|
43,289 |
|
5,933 |
|
|
Non-GAAP Income from operations |
1,207,800 |
|
1,432,162 |
|
196,293 |
|
|
GAAP operating margin |
27.9 |
% |
32.4 |
% |
|
|
|
Non-GAAP operating margin |
29.1 |
% |
33.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
|
|
|
2022 |
|
2023 |
|
2023 |
|
| |
RMB |
RMB |
USD |
|
|
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
|
Net income |
3,137,667 |
|
3,160,889 |
|
433,233 |
|
|
Add: Share-based compensation expenses |
148,383 |
|
143,032 |
|
19,604 |
|
|
Non-GAAP net income |
3,286,050 |
|
3,303,921 |
|
452,837 |
|
|
GAAP net income margin |
24.8 |
% |
26.8 |
% |
|
|
|
Non-GAAP net income margin |
26.0 |
% |
28.0 |
% |
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of Qifu Technology,
Inc. |
3,152,172 |
|
3,173,596 |
|
434,975 |
|
|
Add: Share-based compensation expenses |
148,383 |
|
143,032 |
|
19,604 |
|
|
Non-GAAP net income attributable to shareholders of Qifu
Technology, Inc. |
3,300,555 |
|
3,316,628 |
|
454,579 |
|
|
Weighted average ADS used in calculating net income per ordinary
share for both GAAP and non-GAAP EPS -diluted |
160,612,402 |
|
165,195,944 |
|
165,195,944 |
|
|
Net income per ADS attributable to ordinary shareholders of Qifu
Technology, Inc. -diluted |
19.62 |
|
19.22 |
|
2.64 |
|
|
Non-GAAP net income per ADS attributable to ordinary shareholders
of Qifu Technology, Inc. -diluted |
20.55 |
|
20.08 |
|
2.75 |
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
|
Income from operations |
3,528,303 |
|
3,577,403 |
|
490,321 |
|
|
Add: Share-based compensation expenses |
148,383 |
|
143,032 |
|
19,604 |
|
|
Non-GAAP Income from operations |
3,676,686 |
|
3,720,435 |
|
509,925 |
|
|
GAAP operating margin |
27.9 |
% |
30.3 |
% |
|
|
|
Non-GAAP operating margin |
29.1 |
% |
31.5 |
% |
|
|
Qifu Technology (NASDAQ:QFIN)
Historical Stock Chart
From Nov 2024 to Dec 2024
Qifu Technology (NASDAQ:QFIN)
Historical Stock Chart
From Dec 2023 to Dec 2024
