According to the Zhitong Finance App, Qifu Technology-S (03660) announced results for the first quarter ended March 31, 2024. Total net revenue was RMB 4.153 billion, an increase of 15.39% over the previous year. Operating revenue was RMB 1,364 million, up 35.46% year over year. Operating margin was 32.8%. Net profit was RMB 1,160 million, up 24.77% year over year. Net profit attributable to the company was RMB 1,164 billion, an increase of 24.64% over the previous year. Net profit margin was 27.9%. Net income per fully diluted American Depositary Share was RMB 7.30.

Wu Haisheng, CEO and Director of Qifu Technology, said, “The macro environment in the first quarter was still full of challenges. We continue to uphold a prudent business strategy and focus on qualitative growth and profit improvement. Thanks to strong team execution, we have once again achieved steady performance.

This quarter, we improved the return on the overall asset package by optimizing cost efficiency and asset distribution efficiency. The amount of loans in the table and through the Zhixin channel showed a strong growth trend. The overall share of services that do not bear credit risk has increased, helping to reduce the risks we face in an unfavorable market environment. In the first quarter, we further expanded diversified customer acquisition channels and adopted a prudent marketing strategy to effectively reduce customer acquisition costs. At the same time, we continue to deepen cooperation with financial institutions, and by increasing ABS issuance efforts, the overall cost of capital has been drastically reduced to a record low.

Looking ahead, given that the macro environment remains uncertain, we will continue to adopt a prudent risk control strategy, further optimize our business portfolio, and focus on improving profitability and operational efficiency. We believe these initiatives will not only help us better cope with the current market environment, but will also help us develop new platform models, strengthen product and business partnerships, and seize long-term development opportunities.”

Mr. Xu Zuoli, the company's chief financial officer, commented, “We are happy to once again achieve steady financial performance in the face of many uncertainties in the macro environment. Total revenue for the first quarter was RMB 4.15 billion, and non-GAAP net profit was RMB 1.2 billion. During the quarter, operating cash flow reached approximately RMB 1.96 billion. By the end of the quarter, the total amount of cash and cash equivalents was RMB 8.32 billion. A solid financial foundation allows us to continue to deliver healthy returns to shareholders through dividends and share buybacks. From April 1, 2024, we began actively implementing the 2024 share repurchase plan. As of now, our buybacks are faster than the schedule.”

Mr. Zheng Yan, Chief Risk Officer, added, “In the first quarter, uncertainty in the macro environment continued to affect the financial position of some borrowers and continued to present certain challenges to risk control. We have responded positively to this, reduced overall risk by reducing exposure to high-risk, long-term loans, and increased the proportion of services that do not bear credit risk and optimized collection operations. The risk indicators for new loans improved markedly during the quarter, and the main leading indicators for the overall asset package were also optimized. The first-day overdue rate for the first quarter was 4.9%, and the 30-day recovery rate was 85.1%. Our prudent actions are expected to have a positive impact on risk indicators, and we expect to see continued improvements this year.”