Qifu Technology, Inc. (NASDAQ:QFIN; HKEx:3660), a prominent Credit-Tech platform in China, has recently shared its unaudited financial results for the second quarter and the first half of the year ending June 30, 2024. The company, known for connecting financial institutions with consumers in need of credit, has shown significant growth in its user base and financial metrics. This growth comes despite a noted decrease in the volume of loans facilitated and originated during the period, highlighting the company's ability to adapt and thrive in challenging market conditions.
The company's platform has successfully expanded its reach, connecting 160 financial institutional partners with 247.6 million consumers, indicating a 12.2% increase from the previous year. This expansion is significant, considering the competitive landscape of China's Credit-Tech sector, where user engagement and platform trust are crucial for success. The increase in users with approved credit lines to 53.6 million, up 13.0% year-over-year, and cumulative borrowers reaching 32.0 million, a 12.3% increase, underscore Qifu Technology's growing influence and the trust consumers place in its services.
Despite the decrease in loan volume, which dropped by 23.2% to RMB95,425 million, Qifu Technology reported a robust financial performance for the second quarter of 2024. The company's total net revenue reached RMB4,160.1 million (US$572.4 million), marking an improvement from RMB3,914.3 million in the same period of 2023. This increase in revenue, alongside a significant rise in income from operations to RMB1,985.0 million (US$273.1 million) from RMB1,181.5 million, reflects the company's efficient operational management and its ability to generate profit despite market challenges.
The net income for the quarter stood at RMB1,376.5 million (US$189.4 million), compared to RMB1,093.4 million in the same period of 2023, demonstrating the company's strong profitability. This financial strength is further evidenced by the company's decision to raise its semi-annual dividend to US$0.30 per Class A ordinary share, or US$0.60 per ADS, for the first half of 2024, and its ongoing share repurchase plan, which saw the purchase of approximately 10.7 million ADSs for a total amount of approximately US$211 million as of August 13, 2024.
Looking forward, Qifu Technology's projection of a net income between RMB1.50 billion and RMB1.60 billion for the third quarter of 2024, with a non-GAAP net income between RMB1.55 billion and RMB1.65 billion, indicates a confident outlook for continued growth. This optimism is based on the company's solid performance in the second quarter, its strategic positioning within China's credit market, and its ability to navigate the complexities of loan facilitation and origination amidst fluctuating market conditions.