Latest news with #HKEx
The Sun
2 days ago
- Business
- The Sun
Oi Wah Achieves Net Profit of 55.9 million with Improved Net Interest Margin in FY2025
HONG KONG SAR - Media OutReach Newswire - 27 May 2025 - The board of directors of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: the 'Group' or 'Oi Wah') announced its annual results and its financial position. For the year ended 28 February 2025 ('FY2025'), the Group recorded revenue of approximately HK$164.3 million and profit attributable to shareholders of the Company of approximately HK$55.9 million. During the year, net interest margin slightly improved to 16.5%. Leveraging the strategic partnership fund established in collaboration with PACM Group (Holdings) Limited ('PACM Group'), the Group is committed to proactively expanding its presence in overseas markets, diversifying its business revenue streams, while effectively mitigating risks from geographical market volatility. For the year ended 28 February 2025, the cash and cash equivalents (net of bank overdraft) amounted to approximately HK$215.7 million, representing a net increase of approximately HK$45.1 million compared to 29 February 2024. The net assets increased to approximately HK$1,108.0 million. Meanwhile, the gearing ratio decreased from 7.7% to 4.3%, reflecting the Group maintained a healthy financial position during FY2025. During the year, the earnings per share was HK 2.9 cents. The Board of Directors recommends a final dividend of HK 0.81 cents. Business Review Mortgage loan business In FY2025, the Group recorded interest income of the mortgage loan business of approximately HK$77.0 million. The amount of gross mortgage loan receivables was approximately HK$670.7 million as at 28 February 2025. During the year, net interest margin of the mortgage loan business is about 10.3%. During FY2025, the Group has maintained a prudent approach when granting loans, underpinned by a focus on building a resilient loan portfolio amid the uncertain environment brought about by the pandemic. We are of the view that maintaining a cautious underwriting stance and healthy loan portfolio will position the Group well for the economic recovery and eventual normalization ahead. During FY2025, the average loan-to-value ratio for first mortgage was approximately 58.2%, while average overall loan-to-value ratio for subordinate mortgage was approximately 52.8%, of which, average loan-to-value ratio of subordinate mortgage that the Group participate in was approximately 15.7%. Pawn Loan Business During FY2025, the revenue from the pawn loan business increased by 9.7% to approximately HK$87.3 million, which accounted for approximately 53.1% of the Group's total revenue. The interest income of the pawn loan receivables increased by approximately 4.5% to approximately HK$76.2 million, which was mainly attributed to the increase in gold price and an active second-hand luxury market, especially for luxury watches. During FY2025, the Group continued to channel resources to advertising and promotion to enhance the Group's brand exposure. Such effort has generated demand for one-to-one pawn loan appointment services for pawn loans exceeding HK$0.1 million. Prospects Looking ahead, the global economy is anticipated to continue its moderate recovery, while macroeconomic policy uncertainties are expected to persist. The Directors believe that the Hong Kong property market will experience cautious trajectory. To inject impetus into the profit growth, the Group strategically partnered with PACM Group to establish a fund which marked our entry into the real estate private credit institutional investment management sector. We will proactively explore expansion opportunities in developed markets and maintain prudent investment oversight to mitigate market risks and maximize returns for investors and shareholders. In order to further enhance customer experience and maintain robust operational profitability, the Group will continue to review strategic shop locations and explore potential acquisition opportunities within the established pawn businesses. These initiatives aim to strengthen our market-leading position and ensure sustainable long-term growth amid evolving industry dynamics. Mr. Edward Chan, Chairman and CEO of the Company, said, 'Along with the ongoing tensions in US-China trade relations, the global economy is confronted with heightened uncertainties, exerting additional pressure on economic rebound. Consequently, the Hong Kong property market outlook remains challenging. The Group remains steadfast in its commitment to seeking strategic breakthroughs amidst these adverse circumstances. In addition to focusing on the local market, we are proactively exploring overseas market development opportunities through our strategic partnership fund with PACM Group. We are committed to diversify our revenue streams and expand our customer base, with a dedicated effort to generate enhanced long-term value and returns for our shareholders.'
Arabian Post
2 days ago
- Business
- Arabian Post
Oi Wah Achieves Net Profit of 55.9 million with Improved Net Interest Margin in FY2025
Demonstrating Financial Stability, Proposed Final Dividend of HK$0.81 cents per share, Exploring Overseas Market to Diversify Income Source HONG KONG SAR – Media OutReach Newswire – 27 May 2025 – The board of directors of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: the 'Group' or 'Oi Wah') announced its annual results and its financial position. For the year ended 28 February 2025 ('FY2025'), the Group recorded revenue of approximately HK$164.3 million and profit attributable to shareholders of the Company of approximately HK$55.9 million. During the year, net interest margin slightly improved to 16.5%. Leveraging the strategic partnership fund established in collaboration with PACM Group (Holdings) Limited ('PACM Group'), the Group is committed to proactively expanding its presence in overseas markets, diversifying its business revenue streams, while effectively mitigating risks from geographical market volatility. ADVERTISEMENT For the year ended 28 February 2025, the cash and cash equivalents (net of bank overdraft) amounted to approximately HK$215.7 million, representing a net increase of approximately HK$45.1 million compared to 29 February 2024. The net assets increased to approximately HK$1,108.0 million. Meanwhile, the gearing ratio decreased from 7.7% to 4.3%, reflecting the Group maintained a healthy financial position during FY2025. During the year, the earnings per share was HK 2.9 cents. The Board of Directors recommends a final dividend of HK 0.81 cents. Business Review Mortgage loan business In FY2025, the Group recorded interest income of the mortgage loan business of approximately HK$77.0 million. The amount of gross mortgage loan receivables was approximately HK$670.7 million as at 28 February 2025. During the year, net interest margin of the mortgage loan business is about 10.3%. During FY2025, the Group has maintained a prudent approach when granting loans, underpinned by a focus on building a resilient loan portfolio amid the uncertain environment brought about by the pandemic. We are of the view that maintaining a cautious underwriting stance and healthy loan portfolio will position the Group well for the economic recovery and eventual normalization ahead. During FY2025, the average loan-to-value ratio for first mortgage was approximately 58.2%, while average overall loan-to-value ratio for subordinate mortgage was approximately 52.8%, of which, average loan-to-value ratio of subordinate mortgage that the Group participate in was approximately 15.7%. ADVERTISEMENT Pawn Loan Business During FY2025, the revenue from the pawn loan business increased by 9.7% to approximately HK$87.3 million, which accounted for approximately 53.1% of the Group's total revenue. The interest income of the pawn loan receivables increased by approximately 4.5% to approximately HK$76.2 million, which was mainly attributed to the increase in gold price and an active second-hand luxury market, especially for luxury watches. During FY2025, the Group continued to channel resources to advertising and promotion to enhance the Group's brand exposure. Such effort has generated demand for one-to-one pawn loan appointment services for pawn loans exceeding HK$0.1 million. Prospects Looking ahead, the global economy is anticipated to continue its moderate recovery, while macroeconomic policy uncertainties are expected to persist. The Directors believe that the Hong Kong property market will experience cautious trajectory. To inject impetus into the profit growth, the Group strategically partnered with PACM Group to establish a fund which marked our entry into the real estate private credit institutional investment management sector. We will proactively explore expansion opportunities in developed markets and maintain prudent investment oversight to mitigate market risks and maximize returns for investors and shareholders. In order to further enhance customer experience and maintain robust operational profitability, the Group will continue to review strategic shop locations and explore potential acquisition opportunities within the established pawn businesses. These initiatives aim to strengthen our market-leading position and ensure sustainable long-term growth amid evolving industry dynamics. Mr. Edward Chan, Chairman and CEO of the Company, said, 'Along with the ongoing tensions in US-China trade relations, the global economy is confronted with heightened uncertainties, exerting additional pressure on economic rebound. Consequently, the Hong Kong property market outlook remains challenging. The Group remains steadfast in its commitment to seeking strategic breakthroughs amidst these adverse circumstances. In addition to focusing on the local market, we are proactively exploring overseas market development opportunities through our strategic partnership fund with PACM Group. We are committed to diversify our revenue streams and expand our customer base, with a dedicated effort to generate enhanced long-term value and returns for our shareholders.' Hashtag: #OiWah #靄華 #AnnualResults #全年業績 The issuer is solely responsible for the content of this announcement. Oi Wah Pawnshop Credit Holdings Limited Oi Wah is a financing service provider in Hong Kong, mainly providing short-term secured financing, including pawn loans and mortgage loans. The Group established its first pawnshop in 1975 and currently owns 10 pawnshops and one premium service center in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009. The Group is the first local pawn shop which successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 March 2013.
Associated Press
3 days ago
- Business
- Associated Press
Oi Wah Achieves Net Profit of 55.9 million with Improved Net Interest Margin in FY2025
Demonstrating Financial Stability, Proposed Final Dividend of HK$0.81 cents per share, Exploring Overseas Market to Diversify Income Source HONG KONG SAR - Media OutReach Newswire - 27 May 2025 - The board of directors of Oi Wah Pawnshop Credit Holdings Limited (HKEx stock code: the 'Group' or 'Oi Wah') announced its annual results and its financial position. For the year ended 28 February 2025 ('FY2025"), the Group recorded revenue of approximately HK$164.3 million and profit attributable to shareholders of the Company of approximately HK$55.9 million. During the year, net interest margin slightly improved to 16.5%. Leveraging the strategic partnership fund established in collaboration with PACM Group (Holdings) Limited ('PACM Group'), the Group is committed to proactively expanding its presence in overseas markets, diversifying its business revenue streams, while effectively mitigating risks from geographical market volatility. For the year ended 28 February 2025, the cash and cash equivalents (net of bank overdraft) amounted to approximately HK$215.7 million, representing a net increase of approximately HK$45.1 million compared to 29 February 2024. The net assets increased to approximately HK$1,108.0 million. Meanwhile, the gearing ratio decreased from 7.7% to 4.3%, reflecting the Group maintained a healthy financial position during FY2025. During the year, the earnings per share was HK 2.9 cents. The Board of Directors recommends a final dividend of HK 0.81 cents. Business Review Mortgage loan business In FY2025, the Group recorded interest income of the mortgage loan business of approximately HK$77.0 million. The amount of gross mortgage loan receivables was approximately HK$670.7 million as at 28 February 2025. During the year, net interest margin of the mortgage loan business is about 10.3%. During FY2025, the Group has maintained a prudent approach when granting loans, underpinned by a focus on building a resilient loan portfolio amid the uncertain environment brought about by the pandemic. We are of the view that maintaining a cautious underwriting stance and healthy loan portfolio will position the Group well for the economic recovery and eventual normalization ahead. During FY2025, the average loan-to-value ratio for first mortgage was approximately 58.2%, while average overall loan-to-value ratio for subordinate mortgage was approximately 52.8%, of which, average loan-to-value ratio of subordinate mortgage that the Group participate in was approximately 15.7%. Pawn Loan Business During FY2025, the revenue from the pawn loan business increased by 9.7% to approximately HK$87.3 million, which accounted for approximately 53.1% of the Group's total revenue. The interest income of the pawn loan receivables increased by approximately 4.5% to approximately HK$76.2 million, which was mainly attributed to the increase in gold price and an active second-hand luxury market, especially for luxury watches. During FY2025, the Group continued to channel resources to advertising and promotion to enhance the Group's brand exposure. Such effort has generated demand for one-to-one pawn loan appointment services for pawn loans exceeding HK$0.1 million. Prospects Looking ahead, the global economy is anticipated to continue its moderate recovery, while macroeconomic policy uncertainties are expected to persist. The Directors believe that the Hong Kong property market will experience cautious trajectory. To inject impetus into the profit growth, the Group strategically partnered with PACM Group to establish a fund which marked our entry into the real estate private credit institutional investment management sector. We will proactively explore expansion opportunities in developed markets and maintain prudent investment oversight to mitigate market risks and maximize returns for investors and shareholders. In order to further enhance customer experience and maintain robust operational profitability, the Group will continue to review strategic shop locations and explore potential acquisition opportunities within the established pawn businesses. These initiatives aim to strengthen our market-leading position and ensure sustainable long-term growth amid evolving industry dynamics. Mr. Edward Chan, Chairman and CEO of the Company, said, 'Along with the ongoing tensions in US-China trade relations, the global economy is confronted with heightened uncertainties, exerting additional pressure on economic rebound. Consequently, the Hong Kong property market outlook remains challenging. The Group remains steadfast in its commitment to seeking strategic breakthroughs amidst these adverse circumstances. In addition to focusing on the local market, we are proactively exploring overseas market development opportunities through our strategic partnership fund with PACM Group. We are committed to diversify our revenue streams and expand our customer base, with a dedicated effort to generate enhanced long-term value and returns for our shareholders.' Hashtag: #OiWah #靄華 #AnnualResults #全年業績 The issuer is solely responsible for the content of this announcement. Oi Wah Pawnshop Credit Holdings Limited Oi Wah is a financing service provider in Hong Kong, mainly providing short-term secured financing, including pawn loans and mortgage loans. The Group established its first pawnshop in 1975 and currently owns 10 pawnshops and one premium service center in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009. The Group is the first local pawn shop which successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 March 2013.
Yahoo
19-05-2025
- Business
- Yahoo
Qifu Technology Announces First Quarter 2025 Unaudited Financial Results
SHANGHAI, China, May 19, 2025 (GLOBE NEWSWIRE) -- Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) ('Qifu Technology' or the 'Company'), a leading AI-empowered Credit-Tech platform in China, today announced its unaudited financial results for the first quarter ended March 31, 2025. First Quarter 2025 Business Highlights As of March 31, 2025, our platform has connected 163 financial institutional partners and 268.2 million consumers*1 with potential credit needs, cumulatively, an increase of 11.1% from 241.4 million a year ago. Cumulative users with approved credit lines*2 were 58.4 million as of March 31, 2025, an increase of 11.6% from 52.3 million as of March 31, 2024. Cumulative borrowers with successful drawdown, including repeat borrowers was 35.5 million as of March 31, 2025, an increase of 13.8% from 31.2 million as of March 31, 2024. In the first quarter of 2025, financial institutional partners originated 24,401,374 loans*3 through our platform. Total facilitation and origination loan volume*4 reached RMB88,883 million, an increase of 15.8% from RMB76,784 million in the same period of 2024 and a decrease of 1.1% from RMB89,885 million in the prior quarter. RMB43,811 million of such loan volume was under capital-light model, Intelligence Credit Engine ('ICE') and total technology solutions*5, representing 49.3% of the total, an increase of 15.1% from RMB38,053 million in the same period of 2024 and a decrease of 8.3% from RMB47,796 million in the prior quarter. Total outstanding loan balance*6 was RMB140,273 million as of March 31, 2025, an increase of 5.5% from RMB132,964 million as of March 31, 2024 and an increase of 2.4% from RMB137,014 million as of December 31, 2024. RMB78,681 million of such loan balance was under capital-light model, 'ICE' and total technology solutions, an increase of 11.4% from RMB70,641 million as of March 31, 2024 and a decrease of 1.2% from RMB79,599 million as of December 31, 2024. The weighted average contractual tenor of loans originated by financial institutions across our platform in the first quarter of 2025 was approximately 10.17 months, compared with 10.10 months in the same period of 2024. 90 day+ delinquency rate*7 of loans originated by financial institutions across our platform was 2.02% as of March 31, 2025. Repeat borrower contribution*8 of loans originated by financial institutions across our platform for the first quarter of 2025 was 95.1%. 1 Refers to cumulative registered users across our platform.2 'Cumulative 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.3 Including 2,022,501 loans across 'V-pocket', and 22,378,873 loans across other products.4 Refers to the total principal amount of loans facilitated and originated during the given period. Retrospectively excluding the impact of discontinued service, which did not have and is not expected to have a material impact on our overall business, financial condition, and results of operations.5 'ICE' is an open platform primarily on our 'Qifu Jietiao' APP (previously known as '360 Jietiao'), 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. Under total technology solutions, we have been offering end-to-end technology solutions to financial institutions based on on-premise deployment, SaaS or hybrid model since 2023.6 'Total outstanding loan balance' refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, excluding loans delinquent for more than 180 days. Retrospectively excluding the impact of discontinued service, which did not have and is not expected to have a material impact on our overall business, financial condition, and results of operations.7 '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 total technology solutions are not included in the delinquency rate calculation.8 '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. First Quarter 2025 Financial Highlights Total net revenue was RMB4,690.7 million (US$646.4 million), compared to RMB4,482.3 million in the prior quarter. Net income was RMB1,796.6 million (US$247.6 million), compared to RMB1,912.7 million in the prior quarter. Non-GAAP*9 net income was RMB1,926.2 million (US$265.4 million), compared to RMB1,972.4 million in the prior quarter. Net income per fully diluted American depositary share ('ADS') was RMB12.62 (US$1.74), compared to RMB13.24 in the prior quarter. Non-GAAP net income per fully diluted ADS was RMB13.53 (US$1.86), compared to RMB13.66 in the prior quarter. 9 Non-GAAP income from operations, Non-GAAP net income, Non-GAAP operating margin, Non-GAAP net income margin and Non-GAAP net income per fully diluted ADS 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. Mr. Haisheng Wu, Chief Executive Officer and Director of Qifu Technology, commented, 'First quarter came in stronger than typical seasonal trend despite the ongoing macroeconomic challenges. We observed an increase in users' activities early in the quarter as public sentiment slightly improved in response to the strong stimulus messages delivered by government officials. However, we remain prudent in our business planning as tariff-related economic uncertainties may persist throughout this year. We will continue to focus on improving the quality and sustainability of our business. During the quarter, we issued a record amount of ABS as the overall funding environment remained supportive. As a result, the blended funding cost continued to decline sequentially. Approximately 56% of the quarter-end loan balance was under the capital-light model, ICE and total technology solutions, demonstrating the efficiency of our platform services. The contribution from non-credit risk bearing services also continued to help us mitigate certain risks in a challenging environment. During the quarter, nearly half of our new credit line users were acquired through embedded finance partners, which we also refer to as API channels, as we further diversify our user acquisition channels. Loan volumes through the API channels increased significantly in the quarter. With the growing maturity and efficiency of large language models, we will continue to allocate more resources to the application of AI across our credit service offerings. We expect that these AI-powered tools will not only allow us to serve our users with better offerings at greater efficiency but also enable our financial institution clients to better utilize the cutting-edge AI technologies, through our open platform. We believe these efforts will enable us to better navigate through the current environment and position us well to capture long-term opportunities through innovative technologies, enhanced products and collaborative models.' 'We are pleased to start 2025 with another quarter of solid financial results despite an uncertain macro environment. For the first quarter, total revenue was RMB4.69 billion and Non-GAAP net income was RMB1.93 billion,' Mr. Alex Xu, Chief Financial Officer, commented. 'During the quarter, we successfully completed the US$690 million convertible notes offering and it gave us ample resources to accelerate our share repurchase programs. Our strong financial position enables us to consistently execute our strategy, support business initiatives, and enhance returns to our shareholders.' Mr. Yan Zheng, Chief Risk Officer, added, 'In the first quarter, we maintained a relatively stable risk profile as users' activities came in stronger than normal. Although overall risk performance fluctuated from the best level we achieved in the prior quarter, it remained well within our target range. Among key leading indicators, Day-1 delinquency rate*10 was 5.0% in the first quarter, and 30-day collection rate*11 was 88.1%. While macro volatility may induce short-term fluctuation in risk metrics, we look forward to maintaining relatively stable risk performance in the coming quarters as we seek growth opportunities in 2025.' 10 '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.11 '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. First Quarter 2025 Financial Results Total net revenue was RMB4,690.7 million (US$646.4 million), compared to RMB4,153.2 million in the same period of 2024, and RMB4,482.3 million in the prior quarter. Net revenue from Credit Driven Services was RMB3,110.9 million (US$428.7 million), compared to RMB3,016.3 million in the same period of 2024, and RMB2,889.5 million in the prior quarter. Loan facilitation and servicing fees-capital heavy were RMB429.8 million (US$59.2 million), compared to RMB243.8 million in the same period of 2024 and RMB363.0 million in the prior quarter. The year-over-year increase was primarily due to an increase in capital-heavy loan facilitation volume and longer effective loan tenor. The sequential increase was primarily due to the increase in effective loan tenor. Financing income*12 was RMB1,817.2 million (US$250.4 million), compared to RMB1,535.0 million in the same period of 2024 and RMB1,667.3 million in the prior quarter. The year-over-year and sequential increases were primarily due to the growth in the average outstanding balance of the on-balance-sheet loans. Revenue from releasing of guarantee liabilities was RMB778.2 million (US$107.2 million), compared to RMB1,166.0 million in the same period of 2024, and RMB761.8 million in the prior quarter. The year-over-year decrease was mainly due to the decrease in the average outstanding balance of off-balance-sheet capital-heavy loans during the period. Other services fees were RMB85.6 million (US$11.8 million), compared to RMB71.5 million in the same period of 2024, and RMB97.4 million in the prior quarter. The year-over-year and sequential changes reflected the changes in late payment fees under the credit driven services due to changes in collection rates of late paid loans. Net revenue from Platform Services was RMB1,579.8 million (US$217.7 million), compared to RMB1,136.9 million in the same period of 2024 and RMB1,592.8 million in the prior quarter. Loan facilitation and servicing fees-capital light were RMB373.7 million (US$51.5 million), compared to RMB502.7 million in the same period of 2024 and RMB515.1 million in the prior quarter. The year-over-year and sequential decreases were primarily due to the decreases in capital-light loan facilitation volume. Referral services fees were RMB1,004.6 million (US$138.4 million), compared to RMB548.8 million in the same period of 2024 and RMB907.2 million in the prior quarter. The year-over-year and sequential increases were mainly due to the increases in loan facilitation volume through ICE. Other services fees were RMB201.5 million (US$27.8 million), compared to RMB85.4 million in the same period of 2024 and RMB170.5 million in the prior quarter. The year-over-year and sequential changes reflected trends in other value-added services and late payment fees. Total operating costs and expenses were RMB2,716.0 million (US$374.3 million), compared to RMB2,789.1 million in the same period of 2024 and RMB2,591.9 million in the prior quarter. Facilitation, origination and servicing expenses were RMB714.5 million (US$98.5 million), compared to RMB736.0 million in the same period of 2024 and RMB734.7 million in the prior quarter. Funding costs were RMB122.7 million (US$16.9 million), compared to RMB156.0 million in the same period of 2024 and RMB126.8 million in the prior quarter. The year-over-year and sequential decreases were mainly due to lower average costs of ABS and trusts, partially offsetting by increases in fundings from ABS and trusts. Sales and marketing expenses were RMB591.5 million (US$81.5 million), compared to RMB415.6 million in the same period of 2024 and RMB523.9 million in the prior quarter. The year-over-year and sequential increases were primarily due to the increase in the allocation of marketing resources to embedded finance channels and content feed advertisements to generate more effective leads. General and administrative expenses were RMB196.5 million (US$27.1 million), compared to RMB106.4 million in the same period of 2024 and RMB156.1 million in the prior quarter. The year-over-year and sequential increases were primarily due to an increase in share-based compensations. Provision for loans receivable was RMB823.2 million (US$113.4 million), compared to RMB847.9 million in the same period of 2024 and RMB598.4 million in the prior quarter. The year-over-year decrease reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile. The sequential increase was primarily due to an increase in loan origination volume of on-balance-sheet loans and the Company's consistent approach in assessing provisions commensurate with its underlying loan profile. Provision for financial assets receivable was RMB39.9 million (US$5.5 million), compared to RMB99.0 million in the same period of 2024 and RMB63.3 million in the prior quarter. The year-over-year decrease reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile. The sequential decrease was mainly due to the decline in capital-heavy loan facilitation volume. Provision for accounts receivable and contract assets was RMB68.4 million (US$9.4 million), compared to RMB111.5 million in the same period of 2024 and RMB77.5 million in the prior quarter. The year-over-year and sequential decreases reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile and changes in capital-heavy and capital-light loan facilitation volume. Provision for contingent liability was RMB159.3 million (US$22.0 million), compared to RMB316.7 million in the same period of 2024 and RMB311.4 million in the prior quarter. The year-over-year and sequential decreases reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile. The sequential decrease also reflected the decline in capital-heavy loan facilitation volume. Income from operations was RMB1,974.7 million (US$272.1 million), compared to RMB1,364.1 million in the same period of 2024 and RMB1,890.3 million in the prior quarter. Non-GAAP income from operations was RMB2,104.3 million (US$290.0 million), compared to RMB1,408.7 million in the same period of 2024 and RMB1,950.0 million in the prior quarter. Operating margin was 42.1%. Non-GAAP operating margin was 44.9%. Income before income tax expense was RMB2,220.2 million (US$306.0 million), compared to RMB1,526.2 million in the same period of 2024 and RMB1,932.7 million in the prior quarter. Income taxes expense was RMB423.6 million (US$58.4 million), compared to RMB366.1 million in the same period of 2024 and RMB20.0 million in the prior quarter. The sequential increase was mainly due to the writeback of withholding taxes in the prior quarter related to the Company's dividend payment and share repurchases, as the Company became eligible to a lower tax rate. Net income was RMB1,796.6 million (US$247.6 million), compared to RMB1,160.1 million in the same period of 2024 and RMB1,912.7 million in the prior quarter. Non-GAAP net income was RMB1,926.2 million (US$265.4 million), compared to RMB1,204.8 million in the same period of 2024 and RMB1,972.4 million in the prior quarter. Net income margin was 38.3%. Non-GAAP net income margin was 41.1%. Net income attributed to the Company was RMB1,800.2 million (US$248.1 million), compared to RMB1,164.3 million in the same period of 2024 and RMB1,916.6 million in the prior quarter. Non-GAAP net income attributed to the Company was RMB1,929.8 million (US$265.9 million), compared to RMB1,208.9 million in the same period of 2024 and RMB1,976.4 million in the prior quarter. Net income per fully diluted ADS was RMB12.62 (US$1.74). Non-GAAP net income per fully diluted ADS was RMB13.53 (US$1.86). Weighted average basic ADS used in calculating GAAP net income per ADS was 140.48 million. Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 142.62 million. Ordinary shares outstanding as of March 31, 2025 was 268,930,496. 12 '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. 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 total technology solutions are not included in the 30 day+ charts and the 180 day+ charts: Update on Share Repurchase On November 19, 2024, the Board approved a share repurchase plan (the '2025 Share Repurchase Plan') whereby the Company is authorized to repurchase up to US$450 million worth of its ADSs or Class A ordinary shares over the next 12 months starting from January 1, 2025. As of May 19, 2025, the Company had in aggregate purchased approximately 4.4 million ADSs on the open market for a total amount of approximately US$178 million (inclusive of commissions) at an average price of US$40.2 per ADS pursuant to the 2025 Share Repurchase Plan. On March 25, 2025, the Board approved a new share repurchase plan (the 'March 2025 Share Repurchase Plan') whereby the Company is authorized to use to the net proceeds from the offering of convertible senior notes due 2030 to repurchase its ADSs and/or Class A ordinary shares, which runs in addition to the Company's 2025 Share Repurchase Plan. On March 27, 2025, the Company announced the completion of the offering of the convertible senior notes in an aggregate principal amount of US$690 million due 2030. Concurrently with the pricing of this offering, the Company repurchased approximately 5.1 million ADSs with an aggregate value of approximately US$227 million at a price of US$44.23 per ADS. The Company expects to use the remaining net proceeds, which is approximately US$450 million, from the offering of the convertible senior notes to repurchase additional ADSs and/or Class A ordinary shares on the open market and/or through other means from time to time under the March 2025 Share Repurchase Plan. Business Outlook As macro-economic uncertainties persist, the Company intends to maintain a prudent approach in its business planning for 2025. Management will continue to focus on enhancing efficiency of the Company's operations. As such, for the second quarter of 2025, the Company expects to generate a net income between RMB1.65 billion and RMB1.75 billion and a non-GAAP net income*13 between RMB1.75 billion and RMB1.85 billion, representing a year-on-year growth between 24% and 31%. This outlook reflects the Company's current and preliminary views, which is subject to material changes. 13 Non-GAAP net income represents net income excluding share-based compensation expenses. Conference Call Preregistration Qifu Technology's management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Monday, May 19, 2025 (8:30 AM Beijing Time on Tuesday, May 20, 2025). All participants wishing to join the conference call must pre-register online using the link provided below. Registration Link: 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 About Qifu Technology Qifu Technology is a leading AI-empowered Credit-Tech platform in China. By leveraging its sophisticated machine learning models and data analytics capabilities, the Company 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: 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, 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 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 RMB 7.2567 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of March 31, 2025. 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, 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@ 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, March 31, March 31, 2024 2025 2025 RMB RMB USD ASSETS Current assets: Cash and cash equivalents 4,452,416 8,578,822 1,182,193 Restricted cash 2,353,384 3,236,427 445,992 Short term investments 3,394,073 2,040,269 281,157 Security deposit prepaid to third-party guarantee companies 162,617 173,437 23,900 Funds receivable from third party payment service providers 462,112 347,416 47,875 Accounts receivable and contract assets, net 2,214,530 2,316,593 319,235 Financial assets receivable, net 1,553,912 1,530,084 210,851 Amounts due from related parties 8,510 3,242 447 Loans receivable, net 26,714,428 30,675,633 4,227,215 Prepaid expenses and other assets 1,464,586 1,510,818 208,196 Total current assets 42,780,568 50,412,741 6,947,061 Non-current assets: Accounts receivable and contract assets, net-noncurrent 27,132 20,004 2,757 Financial assets receivable, net-noncurrent 170,779 189,379 26,097 Amounts due from related parties 51 39 5 Loans receivable, net-noncurrent 2,537,749 2,314,826 318,992 Property and equipment, net 362,774 405,926 55,938 Land use rights, net 956,738 951,557 131,128 Intangible assets 11,818 11,420 1,574 Goodwill 42,414 42,407 5,844 Deferred tax assets 1,206,325 1,244,757 171,532 Other non-current assets 36,270 34,112 4,701 Total non-current assets 5,352,050 5,214,427 718,568 TOTAL ASSETS 48,132,618 55,627,168 7,665,629 LIABILITIES AND EQUITY Current liabilities: Payable to investors of the consolidated trusts-current 8,188,454 6,541,069 901,383 Accrued expenses and other current liabilities 2,492,921 3,337,707 459,948 Amounts due to related parties 67,495 48,442 6,675 Short term loans 1,369,939 1,219,431 168,042 Guarantee liabilities-stand ready 2,383,202 2,377,408 327,616 Guarantee liabilities-contingent 1,820,350 1,794,747 247,323 Income tax payable 1,040,687 1,054,537 145,319 Other tax payable 109,161 3,897 537 Total current liabilities 17,472,209 16,377,238 2,256,843 Non-current liabilities: Deferred tax liabilities 439,435 569,734 78,511 Payable to investors of the consolidated trusts-noncurrent 5,719,600 10,354,000 1,426,819 Convertible senior notes - 4,912,524 676,964 Other long-term liabilities 255,155 297,730 41,028 Total non-current liabilities 6,414,190 16,133,988 2,223,322 TOTAL LIABILITIES 23,886,399 32,511,226 4,480,165 TOTAL QIFU TECHNOLOGY INC EQUITY 24,190,043 23,063,344 3,178,216 Noncontrolling interests 56,176 52,598 7,248 TOTAL EQUITY 24,246,219 23,115,942 3,185,464 TOTAL LIABILITIES AND EQUITY 48,132,618 55,627,168 7,665,629Unaudited 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 March 31, 2024 2025 2025 RMB RMB USD Credit driven services 3,016,282 3,110,866 428,690 Loan facilitation and servicing fees-capital heavy 243,766 429,775 59,225 Financing income 1,534,986 1,817,221 250,420 Revenue from releasing of guarantee liabilities 1,166,018 778,222 107,242 Other services fees 71,512 85,648 11,803 Platform services 1,136,901 1,579,831 217,706 Loan facilitation and servicing fees-capital light 502,715 373,709 51,498 Referral services fees 548,824 1,004,622 138,441 Other services fees 85,362 201,500 27,767 Total net revenue 4,153,183 4,690,697 646,396 Facilitation, origination and servicing 736,026 714,492 98,460 Funding costs 155,963 122,657 16,903 Sales and marketing 415,617 591,495 81,510 General and administrative 106,415 196,482 27,076 Provision for loans receivable 847,921 823,187 113,438 Provision for financial assets receivable 99,003 39,863 5,493 Provision for accounts receivable and contract assets 111,473 68,445 9,432 Provision for contingent liabilities 316,664 159,343 21,958 Total operating costs and expenses 2,789,082 2,715,964 374,270 Income from operations 1,364,101 1,974,733 272,126 Interest income, net 50,058 67,774 9,340 Foreign exchange gain 82 2,123 293 Other income, net 111,968 175,600 24,198 Income before income tax expense 1,526,209 2,220,230 305,957 Income taxes expense (366,065) (423,631) (58,378) Net income 1,160,144 1,796,599 247,579 Net loss attributable to noncontrolling interests 4,143 3,576 493 Net income attributable to ordinary shareholders of the Company 1,164,287 1,800,175 248,072 Net income per ordinary share attributable to ordinary shareholders of Qifu Technology, Inc. Basic 3.73 6.41 0.88 Diluted 3.65 6.31 0.87 Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. Basic 7.46 12.82 1.76 Diluted 7.30 12.62 1.74 Weighted average shares used in calculating net income per ordinary share Basic 312,027,192 280,958,513 280,958,513 Diluted 318,915,157 285,237,588 285,237,588 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 March 31, 2024 2025 2025 RMB RMB USD Net cash provided by operating activities 1,958,267 2,805,685 386,634 Net cash used in investing activities (3,138,175) (3,240,186) (446,510) Net cash provided by financing activities 1,775,409 5,449,071 750,902 Effect of foreign exchange rate changes 2,095 (5,121) (705) Net increase in cash and cash equivalents 597,596 5,009,449 690,321 Cash, cash equivalents, and restricted cash, beginning of period 7,558,997 6,805,800 937,864 Cash, cash equivalents, and restricted cash, end of period 8,156,593 11,815,249 1,628,185 Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)(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 March 31, 2024 2025 2025 RMB RMB USD Net income 1,160,144 1,796,599 247,579 Other comprehensive income, net of tax of nil: Foreign currency translation adjustment 2,010 (15,362) (2,117) Other comprehensive income (loss) 2,010 (15,362) (2,117) Total comprehensive income 1,162,154 1,781,237 245,462 Comprehensive loss attributable to noncontrolling interests 4,143 3,576 493 Comprehensive income attributable to ordinary shareholders 1,166,297 1,784,813 245,955 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 March 31, 2024 2025 2025 RMB RMB USD Reconciliation of Non-GAAP Net Income to Net Income Net income 1,160,144 1,796,599 247,579 Add: Share-based compensation expenses 44,645 129,614 17,861 Non-GAAP net income 1,204,789 1,926,213 265,440 GAAP net income margin 27.9% 38.3% Non-GAAP net income margin 29.0% 41.1% Net income attributable to shareholders of Qifu Technology, Inc. 1,164,287 1,800,175 248,072 Add: Share-based compensation expenses 44,645 129,614 17,861 Non-GAAP net income attributable to shareholders of Qifu Technology, Inc. 1,208,932 1,929,789 265,933 Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS - diluted 159,457,579 142,618,794 142,618,794 Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. - diluted 7.30 12.62 1.74 Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. - diluted 7.58 13.53 1.86 Reconciliation of Non-GAAP Income from operations to Income from operations Income from operations 1,364,101 1,974,733 272,126 Add: Share-based compensation expenses 44,645 129,614 17,861 Non-GAAP Income from operations 1,408,746 2,104,347 289,987 GAAP operating margin 32.8% 42.1% Non-GAAP operating margin 33.9% 44.9%Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
07-05-2025
- Business
- Associated Press
Qifu Technology to Announce First Quarter 2025 Unaudited Financial Results on May 19, 2025
SHANGHAI, China, May 07, 2025 (GLOBE NEWSWIRE) -- Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) ('Qifu Technology' or the 'Company'), a leading AI-empowered Credit-Tech platform in China, today announced that it will report its unaudited financial results for the first quarter ended March 31, 2025, after U.S. markets close on Monday, May 19, 2025. Qifu Technology's management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Monday, May 19, 2025 (8:30 AM Beijing Time on Tuesday, May 20, 2025). Conference Call Preregistration All participants wishing to join the conference call must pre-register online using the link provided below. Registration Link: Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode 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 . About Qifu Technology Qifu Technology is a leading AI-empowered Credit-Tech platform in China. By leveraging its sophisticated machine learning models and data analytics capabilities, the Company 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: . 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: [email protected]
