The following is a summary of the Qifu Technology, Inc. (QFIN) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Qifu Technology reported a revenue of RMB 4.16 billion in Q2 2024, representing a year-over-year increase of 6.3%.

• Non-GAAP net income rose by 23% year-over-year to RMB 1.41 billion.

• Net income per diluted ADS increased by 32% year-over-year to RMB 9.16.

• ROE for Q2 was 25.4%, outperforming industry peers.

Business Progress:

• Qifu Technology focused on acquiring high-value users while reducing marketing expenditures, contributing to the growing portion of new and repeat users from diversified channels such as e-commerce, short-form videos, and embedded finance partnerships with banks.

• The company continued to expand its ICE model, which saw a slight increase to 24.6% of the total loan volume, indicating a strategic shift towards more capital-light operations.

• Qifu also progressed in its technology solutions, specifically through enhancements in its proprietary AI technologies for better operational efficiency and user interactions, and by establishing partnerships with additional financial institutions.

Opportunities:

• Expansion in the capital-light model displayed through the increased percentage of ICE model loans, which denotes a shift in business model to adapt to market conditions and enhance financial efficiency.

• Continued diversification of user acquisition channels, contributing positively to the company's growth and market penetration, especially in e-commerce and other digital platforms through embedded finance models.

• Strategic partnerships with financial institutions under the embedded finance model have opened new avenues for user acquisition and service efficiency, promoting broader financial inclusion.

Risks:

• Potential slow pace of growth in AI services as technologies scale and integrate into operations, with the gradual rollout being a factor to monitor closely.

• Risks associated with dependency on external financial and traffic platforms which may affect service delivery and customer acquisition if relationships are strained or compromised.

More details: Qifu Technology IR

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