How did Qifu Technology's operating profit surge in Q2 2024?

Qifu Technology's operating profit surged in Q2 2024 despite a reported operating loss of $1.5 million, primarily due to the following factors: 1. **Revenue Growth**: Total revenue increased by 6% year-over-year to $63.97 million. This growth, although modest, contributes positively to the operating profit. 2. **Cost Management**: The company's "acquisition cost per credit line user" decreased by 12% quarter-over-quarter, indicating efficient cost management that could mitigate the impact of lower revenue on profitability. 3. **Strategic Shift**: Qifu Technology adopted a more prudent marketing strategy, which further optimized customer acquisition channels. This suggests a focus on cost efficiency and potentially higher profitability per customer. 4. **Financial Institution Partnerships**: The company's platform connected 159 financial institutional partners and 241.4 million consumers with potential credit needs, cumulatively, an increase of 12.5% from the previous year. These partnerships could lead to increased loan facilitation and origination volumes, contributing to the operating profit. 5. **Dividend and Share Repurchase**: The company recently declared a semi-annual dividend, which was paid on May 24, 2024, representing a dividend yield of 5.7%. Additionally, the company has been actively repurchasing shares, with a reported purchase of approximately 3.4 million ADSs for approximately $65 million as of May 17, 2024. These actions suggest confidence in the company's financial stability and potential positive impact on shareholder value. In conclusion, Qifu Technology's operating profit surge in Q2 2024 can be attributed to a combination of revenue growth, cost management, strategic shifts, financial institution partnerships, and shareholder returns initiatives.