First Quarter 2024 Business Highlights
- As of
March 31, 2024 , our platform has connected 159 financial institutional partners and 241.4 million consumers*1 with potential credit needs, cumulatively, an increase of 12.5% from 214.5 million a year ago. - Cumulative users with approved credit lines*2 were 52.3 million as of
March 31, 2024 , an increase of 13.8% from 46.0 million as ofMarch 31, 2023 . - Cumulative borrowers with successful drawdown, including repeat borrowers were 31.2 million as of
March 31, 2024 , an increase of 12.6% from 27.7 million as ofMarch 31, 2023 . - In the first quarter of 2024, financial institutional partners originated 17,524,872 loans*3 through our platform. Total facilitation and origination loan volume reached
RMB99,237 million *4, a decrease of 9.3% fromRMB109,456 million in the same period of 2023. - Out of those loans originated by financial institutions,
RMB60,506 million was under capital-light model, Intelligence Credit Engine (“ICE”) and other technology solutions*5, representing 61.0% of the total, a decrease of 1.4% fromRMB61,342 million in the same period of 2023. - Total outstanding loan balance*6 was
RMB169,920 million as ofMarch 31, 2024 , a decrease of 0.8% fromRMB171,302 million as ofMarch 31, 2023 . RMB107,597 million of such loan balance was under capital-light model, “ICE” and other technology solutions*7, an increase of 2.9% fromRMB104,523 million as ofMarch 31, 2023 .- The weighted average contractual tenor of loans originated by financial institutions across our platform in the first quarter of 2024 was approximately 10.10 months, compared with 11.21 months in the same period of 2023.
- 90 day+ delinquency rate*8 of loans originated by financial institutions across our platform was 3.35% as of
March 31, 2024 . - Repeat borrower contribution*9 of loans originated by financial institutions across our platform for the first quarter of 2024 was 91.5%.
1 Refers to cumulative registered users across our platform.
2 “Cumulative 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 3,449,001 loans across “V-pocket”, and 14,075,871 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
Under other technology solutions, we started to offer financial institutions on-premise deployed, modular risk management SaaS since 2021, which helps financial institution partners improve credit assessment results. Since 2023, we started to offer end-to-end technology solutions (“Total Solutions”) to financial institutions based on on-premise deployment, SaaS or hybrid model. Loan facilitation volume through other technology solutions was
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 As of
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.
First Quarter 2024 Financial Highlights
- Total net revenue was
RMB4,153.2 million (US$575.2 million ), compared toRMB3,599.2 million in the same period of 2023. - Income from operations was
RMB1,364.1 million (US$188.9 million ), compared toRMB1,007.0 million in the same period of 2023. - Non-GAAP*10 income from operations was
RMB1,408.7 million (US$195.1 million ), compared toRMB1,053.5 million in the same period of 2023. - Operating margin was 32.8%. Non-GAAP operating margin was 33.9%.
- Net income was
RMB1,160.1 million (US$160.7 million ), compared toRMB929.8 million in the same period of 2023. - Non-GAAP net income was
RMB1,204.8 million (US$166.9 million ), compared toRMB976.3 million in the same period of 2023. - Net income attributed to the Company was
RMB1,164.3 million (US$161.3 million ), compared toRMB934.1 million in the same period of 2023. - Net income margin was 27.9%. Non-GAAP net income margin was 29.0%.
- Net income per fully diluted American depositary share (“ADS”) was
RMB7.30 (US$1.02 ), compared toRMB5.64 in the same period of 2023. - Non-GAAP net income per fully diluted ADS was
RMB7.58 (US$1.05 ), compared toRMB5.92 in the same period of 2023.
10 Non-GAAP income from operations, Non-GAAP net income, Non-GAAP operating margin, Non-GAAP net income margin and Non-GAAP net income per fully diluted ADS 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.
During the quarter, we achieved better overall return on our loan portfolio through improved cost efficiency and optimized asset allocation. On balance sheet lending and ICE both demonstrated strong growth momentum. The overall increased contribution from non-credit risk bearing services helped us mitigate some risks in a challenging environment. In the first quarter, we reduced user acquisition costs through further diversifying our user acquisition channels and deploying a prudent user acquisition approach. Meanwhile, we continued to solidify our relationship with financial institution partners. With the help of strong ABS issuance, we significantly lowered overall funding costs to another historic low.
Looking ahead, we intend to continue to take a disciplined risk management approach in a still uncertain macro environment, and further optimize our business mix to drive better profitability and efficiency. We believe such effort will not only help us better navigate through the current environment but also position us well to capture long-term opportunities through new platform models, enhanced products and collaborative partnerships.”
“We are pleased to report another quarter of strong financial results in an uncertain macro environment. Total net revenue was
Mr.
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.
First Quarter 2024 Financial Results
Total net revenue was
Net revenue from Credit Driven Services was
Loan facilitation and servicing fees-capital heavy were
Financing income*14 was
Revenue from releasing of guarantee liabilities was
Other services fees were
Net revenue from Platform Services was
Loan facilitation and servicing fees-capital light were
Referral services fees were
Other services fees were
Total operating costs and expenses were
Facilitation, origination and servicing expenses were
Funding costs were
Sales and marketing expenses were
General and administrative expenses were
Provision for loans receivable was
Provision for financial assets receivable was
Provision for accounts receivable and contract assets was
Provision for contingent liability was
Income from operations was
Non-GAAP income from operations was
Operating margin was 32.8%. Non-GAAP operating margin was 33.9%.
Income before income tax expense was
Net income was
Non-GAAP net income was
Net income margin was 27.9%. Non-GAAP net income margin was 29.0%.
Net income attributed to the Company was
Non-GAAP net income attributed to the Company was
Net income per fully diluted ADS was
Non-GAAP net income per fully diluted ADS was
Weighted average basic ADS used in calculating GAAP and Non-GAAP net income per ADS was 156.01 million.
Weighted average diluted ADS used in calculating GAAP and Non-GAAP net income per ADS was 159.46 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:
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Update on Share Repurchase
On
On
As of
Business Outlook
As macro-economic uncertainties continue to create headwinds to its operations, the Company intends to maintain a prudent approach in its business planning. The management will continue to purposely trim exposure to under-performing assets and focus on enhancing the profitability and efficiency of the Company’s operations. As such, for the second quarter of 2024, the Company expects to generate a net income between
15 Non-GAAP net income represents net income excluding share-based compensation expenses.
Conference Call Preregistration
Qifu Technology’s management team will host an earnings conference call at
All participants wishing to join the conference call must pre-register online using the link provided below.
Registration Link: https://register.vevent.com/register/BI2bd17921325e423580dfcbdbe67c05d4
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 https://ir.qifu.tech.
About Qifu Technology
Qifu Technology is a leading Credit-Tech platform in
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
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 excluding share-based compensation expenses per fully diluted ADS. Such adjustments have no impact on income tax. We believe that 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 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
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
Any forward-looking statements contained in this announcement are made under the “safe harbor” provisions of the
For more information, please contact:
Qifu Technology
E-mail: ir@360shuke.com
Unaudited Condensed Consolidated Balance Sheets | ||||
(Amounts in thousands of Renminbi ("RMB") and except for number of shares and per share data, or otherwise noted) | ||||
2023 | 2024 | 2024 | ||
RMB | RMB | USD | ||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | 4,177,890 | 5,301,288 | 734,220 | |
Restricted cash | 3,381,107 | 2,855,305 | 395,455 | |
Short term investments | 15,000 | 15,000 | 2,077 | |
Security deposit prepaid to third-party guarantee companies | 207,071 | 166,622 | 23,077 | |
Funds receivable from third party payment service providers | 1,603,419 | 1,218,797 | 168,801 | |
Accounts receivable and contract assets, net | 2,909,245 | 2,777,867 | 384,730 | |
Financial assets receivable, net | 2,522,543 | 1,890,151 | 261,783 | |
Amounts due from related parties | 45,346 | 25,253 | 3,498 | |
Loans receivable, net | 24,604,487 | 27,060,541 | 3,747,842 | |
Prepaid expenses and other assets | 329,920 | 505,508 | 70,012 | |
Total current assets | 39,796,028 | 41,816,332 | 5,791,495 | |
Non-current assets: | ||||
Accounts receivable and contract assets, net-noncurrent | 146,995 | 79,453 | 11,004 | |
Financial assets receivable, net-noncurrent | 596,330 | 391,099 | 54,167 | |
Amounts due from related parties | 4,240 | 1,677 | 232 | |
Loans receivable, net-noncurrent | 2,898,005 | 2,692,041 | 372,843 | |
Property and equipment, net | 231,221 | 256,724 | 35,556 | |
Land use rights, net | 977,461 | 972,280 | 134,659 | |
Intangible assets | 13,443 | 12,899 | 1,786 | |
41,210 | 41,210 | 5,708 | ||
Deferred tax assets | 1,067,738 | 1,106,355 | 153,228 | |
Other non-current assets | 45,901 | 56,448 | 7,818 | |
Total non-current assets | 6,022,544 | 5,610,186 | 777,001 | |
TOTAL ASSETS | 45,818,572 | 47,426,518 | 6,568,496 | |
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Payable to investors of the consolidated trusts-current | 8,942,291 | 9,633,321 | 1,334,200 | |
Accrued expenses and other current liabilities | 2,016,039 | 2,537,055 | 351,378 | |
Amounts due to related parties | 80,376 | 41,974 | 5,813 | |
Short term loans | 798,586 | 683,804 | 94,706 | |
Guarantee liabilities-stand ready | 3,949,601 | 3,198,783 | 443,026 | |
Guarantee liabilities-contingent | 3,207,264 | 2,676,826 | 370,736 | |
Income tax payable | 742,210 | 848,222 | 117,477 | |
Other tax payable | 163,252 | 145,701 | 20,179 | |
Total current liabilities | 19,899,619 | 19,765,686 | 2,737,515 | |
Non-current liabilities: | ||||
Deferred tax liabilities | 224,823 | 193,892 | 26,854 | |
Payable to investors of the consolidated trusts-noncurrent | 3,581,800 | 5,154,600 | 713,904 | |
Other long-term liabilities | 102,473 | 171,128 | 23,701 | |
Total non-current liabilities | 3,909,096 | 5,519,620 | 764,459 | |
TOTAL LIABILITIES | 23,808,715 | 25,285,306 | 3,501,974 | |
TOTAL QIFU TECHNOLOGY INC EQUITY | 21,937,483 | 22,072,981 | 3,057,072 | |
Noncontrolling interests | 72,374 | 68,231 | 9,450 | |
TOTAL EQUITY | 22,009,857 | 22,141,212 | 3,066,522 | |
TOTAL LIABILITIES AND EQUITY | 45,818,572 | 47,426,518 | 6,568,496 | |
Unaudited Condensed Consolidated Statements of Operations | |||||||
(Amounts in thousands of Renminbi ("RMB") and except for number of shares and per share data, or otherwise noted) | |||||||
Three months ended | |||||||
2023 | 2024 | 2024 | |||||
RMB | RMB | USD | |||||
Credit driven services | 2,630,621 | 3,016,282 | 417,750 | ||||
Loan facilitation and servicing fees-capital heavy | 311,164 | 243,766 | 33,761 | ||||
Financing income | 1,065,882 | 1,534,986 | 212,593 | ||||
Revenue from releasing of guarantee liabilities | 1,209,820 | 1,166,018 | 161,492 | ||||
Other services fees | 43,755 | 71,512 | 9,904 | ||||
Platform services | 968,553 | 1,136,901 | 157,459 | ||||
Loan facilitation and servicing fees-capital light | 765,280 | 502,715 | 69,625 | ||||
Referral services fees | 108,476 | 548,824 | 76,011 | ||||
Other services fees | 94,797 | 85,362 | 11,823 | ||||
Total net revenue | 3,599,174 | 4,153,183 | 575,209 | ||||
Facilitation, origination and servicing | 640,341 | 736,026 | 101,938 | ||||
Funding costs | 159,023 | 155,963 | 21,601 | ||||
Sales and marketing | 422,177 | 415,617 | 57,562 | ||||
General and administrative | 104,889 | 106,415 | 14,738 | ||||
Provision for loans receivable | 518,864 | 847,921 | 117,436 | ||||
Provision for financial assets receivable | 68,752 | 99,003 | 13,712 | ||||
Provision for accounts receivable and contract assets | (2,236 | ) | 111,473 | 15,439 | |||
Provision for contingent liabilities | 680,334 | 316,664 | 43,857 | ||||
Total operating costs and expenses | 2,592,144 | 2,789,082 | 386,283 | ||||
Income from operations | 1,007,030 | 1,364,101 | 188,926 | ||||
Interest income, net | 64,770 | 50,058 | 6,933 | ||||
Foreign exchange gain | 6,149 | 82 | 11 | ||||
Other income, net | 24,164 | 111,968 | 15,507 | ||||
Investment loss | - | - | - | ||||
Income before income tax expense | 1,102,113 | 1,526,209 | 211,377 | ||||
Income taxes expense | (172,291 | ) | (366,065 | ) | (50,699 | ) | |
Net income | 929,822 | 1,160,144 | 160,678 | ||||
Net loss attributable to noncontrolling interests | 4,287 | 4,143 | 574 | ||||
Net income attributable to ordinary shareholders of the Company | 934,109 | 1,164,287 | 161,252 | ||||
Net income per ordinary share attributable to ordinary shareholders of | |||||||
Basic | 2.89 | 3.73 | 0.52 | ||||
Diluted | 2.82 | 3.65 | 0.51 | ||||
Net income per ADS attributable to ordinary shareholders of | |||||||
Basic | 5.78 | 7.46 | 1.04 | ||||
Diluted | 5.64 | 7.30 | 1.02 | ||||
Weighted average shares used in calculating net income per ordinary share | |||||||
Basic | 322,859,462 | 312,027,192 | 312,027,192 | ||||
Diluted | 331,219,266 | 318,915,157 | 318,915,157 | ||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||
(Amounts in thousands of Renminbi ("RMB") and except for number of shares and per share data, or otherwise noted) | |||||||
Three months ended | |||||||
2023 | 2024 | 2024 | |||||
RMB | RMB | USD | |||||
Net cash provided by operating activities | 1,761,091 | 1,958,267 | 271,217 | ||||
Net cash used in investing activities | (3,564,207 | ) | (3,138,175 | ) | (434,632 | ) | |
Net cash provided by financing activities | 38,940 | 1,775,409 | 245,891 | ||||
Effect of foreign exchange rate changes | (2,843 | ) | 2,095 | 290 | |||
Net (decrease) increase in cash and cash equivalents | (1,767,019 | ) | 597,596 | 82,766 | |||
Cash, cash equivalents, and restricted cash, beginning of period | 10,512,363 | 7,558,997 | 1,046,909 | ||||
Cash, cash equivalents, and restricted cash, end of period | 8,745,344 | 8,156,593 | 1,129,675 | ||||
Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income | |||||
(Amounts in thousands of Renminbi ("RMB") and except for number of shares and per share data, or otherwise noted) | |||||
Three months ended | |||||
2023 | 2024 | 2024 | |||
RMB | RMB | USD | |||
Net income | 929,822 | 1,160,144 | 160,678 | ||
Other comprehensive income, net of tax of nil: | |||||
Foreign currency translation adjustment | (2,808 | ) | 2,010 | 278 | |
Other comprehensive (loss) income | (2,808 | ) | 2,010 | 278 | |
Total comprehensive income | 927,014 | 1,162,154 | 160,956 | ||
Comprehensive loss attributable to noncontrolling interests | 4,287 | 4,143 | 574 | ||
Comprehensive income attributable to ordinary shareholders | 931,301 | 1,166,297 | 161,530 | ||
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||
(Amounts in thousands of Renminbi ("RMB") and except for number of shares and per share data, or otherwise noted) | ||||||
Three months ended | ||||||
2023 | 2024 | 2024 | ||||
RMB | RMB | USD | ||||
Reconciliation of Non-GAAP Net Income to Net Income | ||||||
Net income | 929,822 | 1,160,144 | 160,678 | |||
Add: Share-based compensation expenses | 46,496 | 44,645 | 6,183 | |||
Non-GAAP net income | 976,318 | 1,204,789 | 166,861 | |||
GAAP net income margin | 25.8 | % | 27.9 | % | ||
Non-GAAP net income margin | 27.1 | % | 29.0 | % | ||
Net income attributable to shareholders of | 934,109 | 1,164,287 | 161,252 | |||
Add: Share-based compensation expenses | 46,496 | 44,645 | 6,183 | |||
Non-GAAP net income attributable to shareholders of | 980,605 | 1,208,932 | 167,435 | |||
Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted | 165,609,633 | 159,457,579 | 159,457,579 | |||
Net income per ADS attributable to ordinary shareholders of | 5.64 | 7.30 | 1.02 | |||
Non-GAAP net income per ADS attributable to ordinary shareholders of | 5.92 | 7.58 | 1.05 | |||
Reconciliation of Non-GAAP Income from operations to Income from operations | ||||||
Income from operations | 1,007,030 | 1,364,101 | 188,926 | |||
Add: Share-based compensation expenses | 46,496 | 44,645 | 6,183 | |||
Non-GAAP Income from operations | 1,053,526 | 1,408,746 | 195,109 | |||
GAAP operating margin | 28.0 | % | 32.8 | % | ||
Non-GAAP operating margin | 29.3 | % | 33.9 | % | ||
Source:
2024 GlobeNewswire, Inc., source