Qifu Technology, Inc ((QFIN)) has held its Q4 earnings call. Read on for the main highlights of the call.
Qifu Technology’s latest earnings call revealed a strong financial performance for 2024, marked by record-breaking non-GAAP net income and significant growth in loan volumes. The company successfully executed a large share repurchase plan and continued to improve operational efficiency, supported by AI integration. Despite some challenges related to delinquency rates and potential interest rate changes, the overall sentiment of the call was positive.
Record Non-GAAP Net Income
Qifu Technology reported a remarkable increase in its Q4 non-GAAP net income, which surged by 71.5% year-over-year to RMB1.97 billion, setting a new record high. For the full year, the non-GAAP net income rose by 44% to RMB6.42 billion, showcasing the company’s robust financial health.
Significant Share Repurchase
The company executed a substantial USD410 million share repurchase, buying back approximately 12% of its share count from the beginning of the year. In a move that signals confidence in its future, Qifu Technology has initiated a new repurchase plan of up to USD450 million for 2025.
Loan Volume Growth
Qifu Technology experienced a 9% sequential increase in Q4 loan volume, reaching RMB89.9 billion. The second half of the year saw a 15% increase in loan volume compared to the first half, highlighting the company’s strong market position and growth trajectory.
Improved Operational Efficiency
The company’s operational efficiency improved significantly, with user acquisition costs per credit line user declining by 5.3%. Additionally, embedded finance channels saw a 98% increase in loan volume, underscoring the effectiveness of Qifu Technology’s strategic initiatives.
AI Integration Success
Qifu Technology’s integration of AI-driven solutions, such as AIGC technology, resulted in a 25.1% improvement in user outreach efficiency and a 10% reduction in average cost per credit line user, demonstrating the transformative impact of AI on the company’s operations.
Stable yet High Day-One Delinquency Rate
While the day-one delinquency rate increased slightly due to optimization in repayment reminder strategies, it remained stable compared to Q3, reflecting the company’s effective risk management practices.
Challenges in Interest Rate Environment
Despite a generally favorable interest rate environment, Qifu Technology acknowledged potential challenges due to slight upticks in interest rate uncertainty, which could impact future financial performance.
Forward-Looking Guidance
Looking ahead to 2025, Qifu Technology plans to focus on high-quality growth by enhancing user acquisition efficiency and expanding its embedded finance model. The company aims to leverage AI to improve risk management and operational efficiency, positioning itself for continued success in the financial services sector.
In conclusion, Qifu Technology’s earnings call highlighted a positive outlook, driven by record financial performance, strategic share repurchases, and successful AI integration. Despite some challenges, the company is well-positioned for future growth, with plans to enhance its operational efficiency and expand its market presence.