Q2 2024 Qifu Technology Inc Earnings Call Transcript
Key Points
- Qifu Technology Inc (QFIN) achieved a 6.3% year-over-year revenue increase to RMB4.16 billion in Q2 2024.
- Non-GAAP net income increased by 23% year-over-year to RMB1.41 billion, with non-GAAP net income per diluted ADS rising by 32% year-over-year to RMB9.16.
- The company recorded the highest quarterly profit over the past 11 quarters, demonstrating strong business resilience.
- Asset quality improved with a decrease in Day-1 delinquency rate by 10 basis points and an increase in the 30-day collection rate by 1.2 percentage points sequentially.
- Qifu Technology Inc (QFIN) maintained a strong cash position with total cash and cash equivalents of RMB8.5 billion in Q2, up from RMB8.3 billion in Q1.
- Revenue from credit-driven services (capital-heavy) decreased from RMB3.02 billion in Q1 to RMB2.91 billion in Q2.
- Sales and marketing expenses decreased by 12% quarter-on-quarter and 16% year-on-year, indicating a reduction in user acquisition efforts.
- The 90-day delinquency rate was 3.4% in Q2, which was mathematically inflated by roughly 18% due to a reduction in the total outstanding balance of loans.
- The effective tax rate for Q2 was 33.1%, significantly higher than the typical rate of approximately 15%, due to a large withholding tax provision.
- The company decided to gradually discontinue certain technology solutions services by the end of 2024 due to marginal returns, which may impact future revenue streams.
Ladies and gentlemen, thank you for standing by, and welcome to Qifu Technology's second-quarter 2024 earnings conference call. (Operator Instructions) Please also note that today's event is being recorded.
At this time, I'd like to turn the conference over to Ms. Karen Ji, Senior Director of Capital Markets. Please go ahead, Karen.
Thank you, Emberlin. Hello everyone, and welcome to Qifu Technology's second-quarter 2024 earnings conference call. Our earnings release was distributed earlier today and is available on our IR website.
Joining me today are Mr. Wu Haisheng, our CEO; Mr. Alex Xu, our CFO; and Mr. Zheng Yan, our CRO. Before we start, I would like to refer you to our Safe Harbor Statement in the earnings press release, which applies to this call, as we will make certain forward-looking statements.
Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP
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