The following is a summary of the Qifu Technology, Inc. (QFIN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Qifu Technology reported Q1 revenue of RMB 4.2 billion, representing a 15.4% year-on-year increase.
The company's net take rate grew by 54 basis points to approximately 3.5%.
Non-GAAP net income rose by 23.4% compared to the same period last year, reaching RMB 1.2 billion, and non-GAAP net income per diluted ADS increased by 28% year-over-year to RMB 7.58.
Qifu Technology achieved a Return on Equity (ROE) of roughly 22% for the quarter, outperforming its industry peers.
Total facilitated and originated loans on the platform reached RMB 99.2 billion in Q1.
The company reported a considerable increase in its operating profit margin and expects to further optimize the take rate in Q2, underpinned by risk optimization, reduced funding costs, and an emphasis on asset distribution.
Business Progress:
Qifu Technology has shifted its business strategy, focusing on quality growth and profitability, which has already shown positive results.
Operations have been optimized and credit standards have been tightened. As a result, the company has empowered 159 financial institutions to provide credit services to 52 million users cumulatively.
The company has improved asset quality, iterated risk strategies, and expanded loan collection strategies, simultaneously reducing funding and acquisition costs for credit line users by 12% sequentially.
To serve user needs more effectively, Qifu has adopted initiatives to increase returns on the loan portfolio.
Significant investments were made in AI and large language models to optimize risk management, telemarketing, loan collection, and customer service.
In Q1, the company forged partnerships with two new financial institutions, bringing the total count of financial partners using Qifu's end-to-end technology solutions to seven.
-The company intends to balance risk and returns by dynamically adjusting the asset structure in its future strategy, further improving operational efficiency.
More details: Qifu Technology IR
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