Qifu Technology Inc. (NASDAQ: QFIN), a leading Credit-Tech platform in China, has announced its unaudited financial results for the second quarter of 2024. The company reported impressive earnings per share (EPS) of $1.26, surpassing analyst expectations. Additionally, Qifu Technology’s revenue for the quarter reached $572.44 million. The company also announced a board change and raised its semi-annual dividend, reflecting its strong financial performance and commitment to shareholder value.
Financial Performance Highlights
Qifu Technology’s financial performance in Q2 2024 was marked by significant growth. The company’s revenue of $572.44 million represents a robust increase compared to previous quarters. This growth was driven by the company’s expanding customer base and increased loan origination through its platform. The company’s EPS of $1.26 exceeded market expectations, showcasing its operational efficiency and profitability.
The company’s financial institutional partners originated over 19 million loans through Qifu Technology’s platform during the quarter. This high volume of loan origination underscores the platform’s effectiveness in connecting borrowers with financial institutions. Additionally, the total facilitation and origination loan volume reached RMB95,425 million, highlighting the platform’s substantial role in the credit market.
Qifu Technology’s capital-light model, Intelligence Credit Engine (ICE), and other technology solutions contributed significantly to its loan origination. The capital-light model accounted for 64.9% of the total loan volume, demonstrating the company’s innovative approach to credit facilitation. Despite a decrease in total loan volume compared to the same period last year, the company’s strategic focus on technology-driven solutions remains strong.
Strategic Initiatives and Board Changes
In addition to its strong financial performance, Qifu Technology announced several strategic initiatives and board changes. The company raised its semi-annual dividend, reflecting its commitment to returning value to shareholders. This decision was based on the company’s solid financial position and confidence in its future growth prospects.
The board change involved the appointment of new members with extensive experience in the financial technology sector. These new board members are expected to bring valuable insights and expertise to Qifu Technology, further strengthening its leadership team. The company’s focus on enhancing its governance structure aligns with its long-term strategic goals.
Qifu Technology also emphasized its commitment to innovation and technological advancement. The company continues to invest in its platform and technology solutions to enhance user experience and operational efficiency. These investments are aimed at maintaining Qifu Technology’s competitive edge in the rapidly evolving Credit-Tech industry.
Market Outlook and Future Prospects
Looking ahead, Qifu Technology remains optimistic about its growth prospects. The company expects continued expansion of its customer base and increased adoption of its technology solutions. The positive market outlook is supported by the company’s strong financial performance and strategic initiatives.
Qifu Technology’s platform has connected 160 financial institutional partners and 247.6 million consumers with potential credit needs as of June 30, 2024. This extensive network positions the company well for future growth. The company’s cumulative users with approved credit lines reached 53.6 million, reflecting a 13.0% increase from the previous year.
The company’s focus on repeat borrowers and high loan origination volume underscores its commitment to customer satisfaction and retention. Qifu Technology’s strategic initiatives, including the capital-light model and technological investments, are expected to drive future growth and profitability. The company’s leadership team remains dedicated to delivering value to shareholders and maintaining its position as a leader in the Credit-Tech industry.
