Qifu Technology Announces Fourth Quarter and Full Year 2023 Unaudited Financial Results, Declares Semi-Annual Dividend and Announces a New Share Repurchase Plan
- Qifu Technology (QFIN) achieved a 15.4% increase in total loan facilitation and origination volume in 2023 compared to 2022.
- The company's net revenue for Q4 2023 was RMB4,495.5 million, with non-GAAP net income of RMB1,150.3 million.
- Qifu Technology's repeat borrower contribution was 91.6% in 2023, showcasing customer loyalty and engagement.
- The company's financial results demonstrate a focus on profitability and efficiency, with a strong emphasis on risk management strategies.
- Qifu Technology's new share repurchase plan and semi-annual dividend policy aim to enhance shareholder value and confidence in the company.
- None.
Insights
The reported financial results from Qifu Technology show a significant increase in both full year and fourth quarter net income, indicating a robust financial performance despite economic headwinds. The growth in total loan facilitation and origination volume, particularly under the capital-light model, suggests a strategic shift towards less risky revenue streams. This is further supported by the high repeat borrower contribution rate, which could reflect strong customer retention and a reliable borrower base.
From an investment perspective, the announcement of a new US$350 million share repurchase plan and the reaffirmation of the semi-annual dividend policy demonstrate confidence in the company's financial health and a commitment to shareholder returns. These actions, combined with the record cash from operations, may be seen as positive indicators for stock stability and potential appreciation.
Qifu Technology's expansion in user acquisition channels and partnerships with high-traffic internet platforms indicates an aggressive growth strategy aimed at increasing market penetration. The focus on embedded finance partnerships could enable the company to leverage its technology solutions more effectively and potentially capture a larger share of the consumer credit market in China.
The emphasis on asset allocation efficiency and risk management, especially in light of the reported challenges in the fourth quarter, suggests that the company is actively adapting to market conditions. The strategic adjustments to mitigate risks by focusing on non-credit risk bearing services and improving risk metrics are important for maintaining a sustainable growth trajectory.
The financial results of Qifu Technology reflect broader economic trends, such as the impact of macroeconomic challenges on consumer credit behavior. The increase in loan origination volume and the company's ability to maintain a low delinquency rate amidst economic difficulties are indicative of effective credit risk management and could signal resilience in the consumer lending sector.
The company's ability to lower funding costs to a historic low through ABS issuance in a potentially rising interest rate environment is noteworthy. This may have positive implications for the company's long-term cost structure and profitability, benefiting from lower capital costs relative to industry norms.
Full Year 2023 Total Facilitation and Origination Loan Volume*1 of RMB475.8 Billion
Full Year 2023 Net Income of RMB4.3 Billion and Non-GAAP*2 Net Income of RMB4.5 Billion
Estimated US
Announce A New US
SHANGHAI, China, March 12, 2024 (GLOBE NEWSWIRE) -- 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 fourth quarter and full year ended December 31, 2023, declared semi-annual dividend and announced a new share repurchase plan.
Fourth Quarter 2023 Business Highlights
- As of December 31, 2023, our platform has connected 157 financial institutional partners and 235.4 million consumers*5 with potential credit needs, cumulatively, an increase of
12.8% from 208.7 million a year ago. - Cumulative users with approved credit lines*6 were 50.9 million as of December 31, 2023, an increase of
14.4% from 44.5 million as of December 31, 2022. - Cumulative borrowers with successful drawdown, including repeat borrowers was 30.4 million as of December 31, 2023, an increase of
12.7% from 27.0 million as of December 31, 2022. - In the fourth quarter of 2023, financial institutional partners originated 19,458,549 loans*7 through our platform. Total facilitation and origination loan volume reached RMB119,002 million, an increase of
13.8% from RMB104,572 million in the same period of 2022. - Out of those loans originated by financial institutions, RMB68,239 million was under capital-light model, Intelligence Credit Engine (“ICE”) and other technology solutions*8, representing
57.3% of the total, an increase of16.8% from RMB58,438 million in the same period of 2022. - Total outstanding loan balance*9 was RMB186,478 million as of December 31, 2023, an increase of
14.1% from RMB163,465 million as of December 31, 2022. - RMB114,476 million of such loan balance was under capital-light model, “ICE” and other technology solutions*10, an increase of
18.6% from RMB96,558 million as of December 31, 2022. - The weighted average contractual tenor of loans originated by financial institutions across our platform in the fourth quarter of 2023 was approximately 11.47 months, compared with 11.38 months in the same period of 2022.
- 90 day+ delinquency rate*11 of loans originated by financial institutions across our platform was
2.35% as of December 31, 2023. - Repeat borrower contribution*12 of loans originated by financial institutions across our platform for the fourth quarter of 2023 was
90.8% .
1 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.
2 Non-GAAP income from operations, Non-GAAP 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.
3 Includes the value of actual dividend distribution for the first half of 2023 and the value of estimated dividend distribution for the second half of 2023 based on US
4 “Aggregate value of ADSs repurchased” refers to the aggregate value of ADSs repurchased in the open market since the launch of the share repurchase plan on June 20, 2023 to March 12, 2024.
5 Refers to cumulative registered users across our platform.
6 “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.
7 Including 4,667,384 loans across “V-pocket”, and 14,791,165 loans across other products.
8 “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 RMB16,610 million in the fourth 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 RMB 29,705 million in the fourth quarter of 2023.
9 “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.
10 Outstanding loan balance for “ICE” and other technology solutions were RMB20,810 million and RMB41,527 million, respectively, as of December 31, 2023.
11 “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.
12 “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.
Fourth Quarter 2023 Financial Highlights
- Total net revenue was RMB4,495.5 million (US
$633.2 million ), compared to RMB3,906.6 million in the same period of 2022. - Income from operations was RMB1,279.6 million (US
$180.2 million ), compared to RMB943.9 million in the same period of 2022. - Non-GAAP income from operations was RMB1,322.1 million (US
$186.2 million ), compared to RMB995.2 million in the same period of 2022. - Operating margin was
28.5% . Non-GAAP operating margin was29.4% . - Net income was RMB1,107.7 million (US
$156.0 million ), compared to RMB867.9 million in the same period of 2022. - Non-GAAP net income was RMB1,150.3 million (US
$162.0 million ), compared to RMB919.3 million in the same period of 2022. - Net income attributed to the Company was RMB1,111.7 million (US
$156.6 million ), compared to RMB872.0 million in the same period of 2022. - Net income margin was
24.6% . Non-GAAP net income margin was25.6% .
Full Year 2023 Operational Highlights
- Total loan facilitation and origination volume in 2023 was RMB475,831 million, representing an increase of
15.4% from RMB412,361 million in 2022. Loan facilitation volume under Platform Services was RMB271,020 million, an increase of17.3% from RMB231,131 million in 2022. - The weighted average contractual tenor of loans facilitated and originated was 11.21 months in full year 2023, compared with 11.69 months in 2022.
- Repeat borrower contribution was
91.6% in full year 2023, compared with88.7% in 2022.
Full Year 2023 Financial Highlights
- Total net revenue was RMB16,290.0 million (US
$2,294.4 million ), compared to RMB16,553.9 million in 2022. - Income from operations was RMB4,857.0 million (US
$684.1 million ), compared to RMB4,472.2 million in 2022. - Non-GAAP income from operations was RMB5,042.6 million (US
$710.2 million ), compared to RMB4,671.9 million in 2022. - Operating margin was
29.8% . Non-GAAP operating margin was31.0% . - Net income was RMB4,268.6 million (US
$601.2 million ), compared to RMB4,005.6 million in 2022. - Net income margin was
26.2% . Non-GAAP net income margin was27.3% . - Non-GAAP net income was RMB4,454.2 million (US
$627.4 million ), compared to RMB4,205.3 million in 2022. - Net income attributed to the Company was RMB4,285.3 million (US
$603.6 million ), compared to RMB4,024.2 million in 2022.
Mr. Haisheng Wu, Chief Executive Officer and Director of Qifu Technology, commented, “Although 2023 was a challenging year as macro-economic headwind persists, we have made timely adjustment to our operations throughout the year and focused our effort on improving the quality and profitability of our business, which resulted in meaningful improvement in overall take rates. With consistent execution, we not only achieved our full year operational and financial targets for 2023, but also built a solid foundation for high quality development in 2024.
For 2023, total loan facilitation and origination volume was RMB475.8 billion, up approximately
We will continue to take a prudent approach in our business planning in 2024. In particular, we intend to focus on driving profitability and efficiency of our operations as we continue to tighten our risk management standard and optimize our business mix to achieve quality growth. We believe such effort will enable us to better navigate through the current environment and position us well to capture long-term opportunities through new partnerships, enhanced products and collaborative models.”
“We are pleased to report another quarter of strong financial results in an uncertain macro environment. Total net revenue was RMB4.50 billion and Non-GAAP net income was RMB1.15 billion for the fourth quarter, which brought full year Non-GAAP net income to RMB4.45 billion,” Mr. Alex Xu, Chief Financial Officer, commented. “During the quarter, we generated approximately RMB2.35 billion cash from operations, a record high. Our strong financial positions not only allow us to consistently execute our strategy but also enable us to further enhance returns to our shareholders by launching a new significantly enlarged share repurchase plan for 2024, further demonstrating management’s confidence and commitment to our business.”
Mr. Yan Zheng, Chief Risk Officer, added, “The fourth quarter was a challenging period for risk management as economic difficulties impacted some borrowers’ capability to repay loans and an industry-wide technical issue reduced the effectiveness of our collection operations. Among key leading indicators, Day-1 delinquency rate*13 was
13 “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.
14 “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.
Fourth Quarter 2023 Financial Results
Total net revenue was RMB4,495.5 million (US
Net revenue from Credit Driven Services was RMB3,248.3 million (US
Loan facilitation and servicing fees-capital heavy were RMB481.2 million (US
Financing income*15 was RMB1,485.4 million (US
Revenue from releasing of guarantee liabilities was RMB1,211.8 million (US
Other services fees were RMB69.8 million (US
Net revenue from Platform Services was RMB1,247.2 million (US
Loan facilitation and servicing fees-capital light were RMB697.0 million (US
Referral services fees were RMB446.5 million (US
Other services fees were RMB103.8 million (US
Total operating costs and expenses were RMB3,215.9 million (US
Facilitation, origination and servicing expenses were RMB731.8 million (US
Funding costs were RMB161.0 million (US
Sales and marketing expenses were RMB551.6 million (US
General and administrative expenses were RMB108.0 million (US
Provision for loans receivable was RMB639.9 million (US
Provision for financial assets receivable was RMB148.2 million (US
Provision for accounts receivable and contract assets was RMB91.1 million (US
Provision for contingent liability was RMB784.3 million (US
Income from operations was RMB1,279.6 million (US
Non-GAAP income from operations was RMB1,322.1 million (US
Operating margin was
Income before income tax expense was RMB1,330.9 million (US
Net income was RMB1,107.7 million (US
Non-GAAP net income was RMB1,150.3 million (US
Net income margin was
Net income attributed to the Company was RMB1,111.7 million (US
Non-GAAP net income attributed to the Company was RMB1,154.3 million (US
Net income per fully diluted ADS was RMB6.88 (US
Non-GAAP net income per fully diluted ADS was RMB7.14 (US
Weighted average basic ADS used in calculating GAAP and Non-GAAP net income per ADS was 158.16 million.
Weighted average diluted ADS used in calculating GAAP and Non-GAAP net income per ADS was 161.65 million.
15 “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.
Full Year 2023 Financial Results
Total net revenue was RMB16,290.0 million (US
Net revenue from Credit Driven Services was RMB11,738.6 million (US
Loan facilitation and servicing fees-capital heavy were RMB1,667.1 million (US
Financing income was RMB5,109.9 million (US
Revenue from releasing of guarantee liabilities was RMB4,745.9 million (US
Other services fees were RMB215.6 million (US
Net revenue from Platform Services was RMB4,551.5 million (US
Loan facilitation and servicing fees-capital light were RMB3,214.0 million (US
Referral services fees were RMB950.0 million (US
Other services fees were RMB387.5 million (US
Total operating costs and expenses were RMB11,433.1 million (US
Facilitation, origination and servicing expenses were RMB2,659.9 million (US
Funding costs were RMB645.4 million (US
Sales and marketing expenses were RMB1,939.9 million (US
General and administrative expenses were RMB421.1 million (US
Provision for loans receivable was RMB2,151.0 million (US
Provision for financial assets receivable was RMB386.1 million (US
Provision for accounts receivable and contract assets was RMB175.8 million (US
Provision for contingent liability was RMB3,053.8 million (US
Income from operations was RMB4,857.0 million (US
Non-GAAP income from operations was RMB5,042.6 million (US
Operating margin was
Income before income tax expense was RMB5,277.5 million (US
Income taxes expense was RMB1,008.9 million (US
Net income attributed to the Company was RMB4,285.3 million (US
Non-GAAP net income attributed to the Company was RMB4,470.9 million (US
Net income margin was
Net income per fully diluted ADS was RMB26.08 (US
Non-GAAP net income per fully diluted ADS was RMB27.22 (US
Weighted average basic ADS used in calculating GAAP and Non-GAAP net income per ADS was 160.37 million.
Weighted average diluted ADS used in calculating GAAP and Non-GAAP net income per ADS was 164.25 million.
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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Semi-Annual Dividend for the Second Half of 2023
The board of directors of the Company (the “Board”) has approved a dividend of US
Dividend Policy for 2024
On March 12, 2024, the Board re-affirmed the Company’s existing semi-annual cash dividend policy, which was previously approved by the Board on May 18, 2023. Under the dividend policy, the Company will continue to declare and distribute a recurring cash dividend semi-annually, at an amount equivalent to approximately
Update on Share Repurchase Plan of 2023
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
New US
On March 12, 2024, the Board approved a new share repurchase plan, under which the Company may repurchase up to US
Business Outlook
The Company will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call.
Conference Call Preregistration
Qifu Technology’s management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday, March 12, 2024 (8:30 AM Beijing Time on Wednesday, March 13, 2024).
All participants wishing to join the conference call must pre-register online using the link provided below.
Registration Link: https://register.vevent.com/register/BIac3ebceefacb4999b98ac630ef5df80f
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 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 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 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 RMB7.0999 to US
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
| Unaudited Condensed Consolidated Balance Sheets (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) | ||||
| December 31, | December 31, | December 31, | ||
| 2022 | 2023 | 2023 | ||
| RMB | RMB | USD | ||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | 7,165,584 | 4,177,890 | 588,443 | |
| Restricted cash | 3,346,779 | 3,381,107 | 476,219 | |
| Short term investments | 57,000 | 15,000 | 2,113 | |
| Security deposit prepaid to third-party guarantee companies | 396,699 | 207,071 | 29,165 | |
| Funds receivable from third party payment service providers | 1,158,781 | 1,603,419 | 225,837 | |
| Accounts receivable and contract assets, net | 2,868,625 | 2,909,245 | 409,759 | |
| Financial assets receivable, net | 2,982,076 | 2,522,543 | 355,293 | |
| Amounts due from related parties | 394,872 | 45,346 | 6,387 | |
| Loans receivable, net | 15,347,662 | 24,604,487 | 3,465,470 | |
| Prepaid expenses and other assets | 379,388 | 329,920 | 46,468 | |
| Total current assets | 34,097,466 | 39,796,028 | 5,605,154 | |
| Non-current assets: | ||||
| Accounts receivable and contract assets, net-noncurrent | 261,319 | 146,995 | 20,704 | |
| Financial assets receivable, net-noncurrent | 688,843 | 596,330 | 83,991 | |
| Amounts due from related parties | 33,236 | 4,240 | 597 | |
| Loans receivable, net-noncurrent | 3,136,994 | 2,898,005 | 408,175 | |
| Property and equipment, net | 47,602 | 231,221 | 32,567 | |
| Land use rights,net | 998,185 | 977,461 | 137,673 | |
| Intangible assets | 4,696 | 13,443 | 1,893 | |
| Goodwill | - | 41,210 | 5,804 | |
| Deferred tax assets | 1,019,171 | 1,067,738 | 150,388 | |
| Other non-current assets | 55,658 | 45,901 | 6,465 | |
| Total non-current assets | 6,245,704 | 6,022,544 | 848,257 | |
| TOTAL ASSETS | 40,343,170 | 45,818,572 | 6,453,411 | |
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Payable to investors of the consolidated trusts-current | 6,099,520 | 8,942,291 | 1,259,495 | |
| Accrued expenses and other current liabilities | 2,004,551 | 2,016,039 | 283,953 | |
| Amounts due to related parties | 113,697 | 80,376 | 11,321 | |
| Short term loans | 150,000 | 798,586 | 112,478 | |
| Guarantee liabilities-stand ready | 4,120,346 | 3,949,601 | 556,290 | |
| Guarantee liabilities-contingent | 3,418,391 | 3,207,264 | 451,734 | |
| Income tax payable | 661,015 | 742,210 | 104,538 | |
| Other tax payable | 182,398 | 163,252 | 22,994 | |
| Total current liabilities | 16,749,918 | 19,899,619 | 2,802,803 | |
| Non-current liabilities: | ||||
| Deferred tax liabilities | 100,835 | 224,823 | 31,666 | |
| Payable to investors of the consolidated trusts-noncurrent | 4,521,600 | 3,581,800 | 504,486 | |
| Other long-term liabilities | 39,520 | 102,473 | 14,433 | |
| Total non-current liabilities | 4,661,955 | 3,909,096 | 550,585 | |
| TOTAL LIABILITIES | 21,411,873 | 23,808,715 | 3,353,388 | |
| TOTAL QIFU TECHNOLOGY INC EQUITY | 18,847,156 | 21,937,483 | 3,089,829 | |
| Noncontrolling interests | 84,141 | 72,374 | 10,194 | |
| TOTAL EQUITY | 18,931,297 | 22,009,857 | 3,100,023 | |
| TOTAL LIABILITIES AND EQUITY | 40,343,170 | 45,818,572 | 6,453,411 | |
| 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 December 31, | Year ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Credit driven services | 2,776,748 | 3,248,263 | 457,509 | 11,586,251 | 11,738,560 | 1,653,342 | |||||||
| Loan facilitation and servicing fees-capital heavy | 361,786 | 481,195 | 67,775 | 2,086,414 | 1,667,119 | 234,809 | |||||||
| Financing income | 1,002,080 | 1,485,446 | 209,221 | 3,487,951 | 5,109,921 | 719,717 | |||||||
| Revenue from releasing of guarantee liabilities | 1,377,046 | 1,211,787 | 170,677 | 5,899,153 | 4,745,898 | 668,446 | |||||||
| Other services fees | 35,836 | 69,835 | 9,836 | 112,733 | 215,622 | 30,370 | |||||||
| Platform services | 1,129,807 | 1,247,240 | 175,670 | 4,967,679 | 4,551,467 | 641,061 | |||||||
| Loan facilitation and servicing fees-capital light | 955,561 | 696,985 | 98,168 | 4,124,726 | 3,213,955 | 452,676 | |||||||
| Referral services fees | 93,341 | 446,486 | 62,886 | 561,372 | 950,016 | 133,807 | |||||||
| Other services fees | 80,905 | 103,769 | 14,616 | 281,581 | 387,496 | 54,578 | |||||||
| Total net revenue | 3,906,555 | 4,495,503 | 633,179 | 16,553,930 | 16,290,027 | 2,294,403 | |||||||
| Facilitation, origination and servicing | 585,586 | 731,787 | 103,070 | 2,373,458 | 2,659,912 | 374,641 | |||||||
| Funding costs | 138,343 | 161,016 | 22,679 | 504,448 | 645,445 | 90,909 | |||||||
| Sales and marketing | 415,187 | 551,590 | 77,690 | 2,206,948 | 1,939,885 | 273,227 | |||||||
| General and administrative | 93,925 | 108,037 | 15,217 | 412,794 | 421,076 | 59,307 | |||||||
| Provision for loans receivable | 481,447 | 639,886 | 90,126 | 1,580,306 | 2,151,046 | 302,968 | |||||||
| Provision for financial assets receivable | 118,590 | 148,198 | 20,873 | 397,951 | 386,090 | 54,380 | |||||||
| Provision for accounts receivable and contract assets | 67,278 | 91,105 | 12,832 | 238,065 | 175,799 | 24,761 | |||||||
| Provision for contingent liabilities | 1,062,318 | 784,323 | 110,470 | 4,367,776 | 3,053,810 | 430,120 | |||||||
| Total operating costs and expenses | 2,962,674 | 3,215,942 | 452,957 | 12,081,746 | 11,433,063 | 1,610,313 | |||||||
| Income from operations | 943,881 | 1,279,561 | 180,222 | 4,472,184 | 4,856,964 | 684,090 | |||||||
| Interest income, net | 56,294 | 46,970 | 6,616 | 182,301 | 217,307 | 30,607 | |||||||
| Foreign exchange (loss) gain | (4,984 | ) | (815 | ) | (115 | ) | (160,225 | ) | 2,356 | 332 | |||
| Other income, net | 40,515 | 5,209 | 734 | 268,000 | 230,936 | 32,527 | |||||||
| Investment loss | (10,892 | ) | - | - | (19,888 | ) | (30,112 | ) | (4,241 | ) | |||
| Income before income tax expense | 1,024,814 | 1,330,925 | 187,457 | 4,742,372 | 5,277,451 | 743,315 | |||||||
| Income taxes expense | (156,913 | ) | (223,237 | ) | (31,442 | ) | (736,804 | ) | (1,008,874 | ) | (142,097 | ) | |
| Net income | 867,901 | 1,107,688 | 156,015 | 4,005,568 | 4,268,577 | 601,218 | |||||||
| Net loss attributable to noncontrolling interests | 4,100 | 4,052 | 571 | 18,605 | 16,759 | 2,360 | |||||||
| Net income attributable to ordinary shareholders of the Company | 872,001 | 1,111,740 | 156,586 | 4,024,173 | 4,285,336 | 603,578 | |||||||
| Net income per ordinary share attributable to ordinary shareholders of Qifu Technology, Inc. | |||||||||||||
| Basic | 2.76 | 3.51 | 0.49 | 12.87 | 13.36 | 1.88 | |||||||
| Diluted | 2.69 | 3.44 | 0.48 | 12.50 | 13.04 | 1.84 | |||||||
| Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. | |||||||||||||
| Basic | 5.52 | 7.02 | 0.98 | 25.74 | 26.72 | 3.76 | |||||||
| Diluted | 5.38 | 6.88 | 0.96 | 25.00 | 26.08 | 3.68 | |||||||
| Weighted average shares used in calculating net income per ordinary share | |||||||||||||
| Basic | 315,631,310 | 316,325,750 | 316,325,750 | 312,589,273 | 320,749,805 | 320,749,805 | |||||||
| Diluted | 324,039,615 | 323,305,948 | 323,305,948 | 322,018,510 | 328,508,945 | 328,508,945 | |||||||
| 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 December 31, | Year ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Net cash provided by operating activities | 1,792,477 | 2,351,791 | 331,243 | 5,922,515 | 7,118,350 | 1,002,598 | |||||||
| Net cash used in investing activities | (1,680,347 | ) | (1,885,694 | ) | (265,594 | ) | (7,355,975 | ) | (11,147,789 | ) | (1,570,134 | ) | |
| Net cash provided by (used in) financing activities | 193,799 | (911,621 | ) | (128,399 | ) | 3,204,068 | 1,066,458 | 150,209 | |||||
| Effect of foreign exchange rate changes | (22,896 | ) | (877 | ) | (125 | ) | (18,192 | ) | 9,615 | 1,354 | |||
| Net increase (decrease) in cash and cash equivalents | 283,033 | (446,401 | ) | (62,875 | ) | 1,752,416 | (2,953,366 | ) | (415,973 | ) | |||
| Cash, cash equivalents, and restricted cash, beginning of period | 10,229,330 | 8,005,398 | 1,127,537 | 8,759,947 | 10,512,363 | 1,480,635 | |||||||
| Cash, cash equivalents, and restricted cash, end of period | 10,512,363 | 7,558,997 | 1,064,662 | 10,512,363 | 7,558,997 | 1,064,662 | |||||||
| Unaudited Condensed Consolidated Statements of Comprehensive 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 December 31, | ||||||
| 2022 | 2023 | 2023 | ||||
| RMB | RMB | USD | ||||
| Net income | 867,901 | 1,107,688 | 156,015 | |||
| Other comprehensive income, net of tax of nil: | ||||||
| Foreign currency translation adjustment | (21,113 | ) | (1,756 | ) | (247 | ) |
| Other comprehensive loss | (21,113 | ) | (1,756 | ) | (247 | ) |
| Total comprehensive income | 846,788 | 1,105,932 | 155,768 | |||
| Comprehensive loss attributable to noncontrolling interests | 4,100 | 4,052 | 571 | |||
| Comprehensive income attributable to ordinary shareholders | 850,888 | 1,109,984 | 156,339 | |||
| Year ended December 31, | ||||||
| 2022 | 2023 | 2023 | ||||
| RMB | RMB | USD | ||||
| Net income | 4,005,568 | 4,268,577 | 601,218 | |||
| Other comprehensive income, net of tax of nil: | ||||||
| Foreign currency translation adjustment | 59,157 | 18,968 | 2,672 | |||
| Other comprehensive income | 59,157 | 18,968 | 2,672 | |||
| Total comprehensive income | 4,064,725 | 4,287,545 | 603,890 | |||
| Comprehensive loss attributable to noncontrolling interests | 18,605 | 16,759 | 2,360 | |||
| Comprehensive income attributable to ordinary shareholders | 4,083,330 | 4,304,304 | 606,250 | |||
| 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 December 31, | ||||||
| 2022 | 2023 | 2023 | ||||
| RMB | RMB | USD | ||||
| Reconciliation of Non-GAAP Net Income to Net Income | ||||||
| Net income | 867,901 | 1,107,688 | 156,015 | |||
| Add: Share-based compensation expenses | 51,354 | 42,572 | 5,996 | |||
| Non-GAAP net income | 919,255 | 1,150,260 | 162,011 | |||
| GAAP net income margin | ||||||
| Non-GAAP net income margin | ||||||
| Net income attributable to shareholders of Qifu Technology, Inc. | 872,001 | 1,111,740 | 156,586 | |||
| Add: Share-based compensation expenses | 51,354 | 42,572 | 5,996 | |||
| Non-GAAP net income attributable to shareholders of Qifu Technology, Inc. | 923,355 | 1,154,312 | 162,582 | |||
| Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted | 162,019,808 | 161,652,974 | 161,652,974 | |||
| Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted | 5.38 | 6.88 | 0.96 | |||
| Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted | 5.70 | 7.14 | 1.01 | |||
| Reconciliation of Non-GAAP Income from operations to Income from operations | ||||||
| Income from operations | 943,881 | 1,279,561 | 180,222 | |||
| Add: Share-based compensation expenses | 51,354 | 42,572 | 5,996 | |||
| Non-GAAP Income from operations | 995,235 | 1,322,133 | 186,218 | |||
| GAAP operating margin | ||||||
| Non-GAAP operating margin | ||||||
| Year ended December 31, | ||||||
| 2022 | 2023 | 2023 | ||||
| RMB | RMB | USD | ||||
| Reconciliation of Non-GAAP Net Income to Net Income | ||||||
| Net income | 4,005,568 | 4,268,577 | 601,218 | |||
| Add: Share-based compensation expenses | 199,737 | 185,604 | 26,142 | |||
| Non-GAAP net income | 4,205,305 | 4,454,181 | 627,360 | |||
| GAAP net income margin | ||||||
| Non-GAAP net income margin | ||||||
| Net income attributable to shareholders of Qifu Technology, Inc. | 4,024,173 | 4,285,336 | 603,578 | |||
| Add: Share-based compensation expenses | 199,737 | 185,604 | 26,142 | |||
| Non-GAAP net income attributable to shareholders of Qifu Technology, Inc. | 4,223,910 | 4,470,940 | 629,720 | |||
| Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted | 161,009,255 | 164,254,473 | 164,254,473 | |||
| Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted | 25.00 | 26.08 | 3.68 | |||
| Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted | 26.23 | 27.22 | 3.83 | |||
| Reconciliation of Non-GAAP Income from operations to Income from operations | ||||||
| Income from operations | 4,472,184 | 4,856,964 | 684,090 | |||
| Add: Share-based compensation expenses | 199,737 | 185,604 | 26,142 | |||
| Non-GAAP Income from operations | 4,671,921 | 5,042,568 | 710,232 | |||
| GAAP operating margin | ||||||
| Non-GAAP operating margin | ||||||
FAQ
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