Qifu Technology: The AI-Driven Fintech Giant Pioneering Sustainable Growth and Long-Term Value Creation

In an era where technology and sustainability are reshaping global industries, Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) stands out as a leader in the AI-empowered credit-tech sector. With its AI-driven efficiency, robust corporate governance, and ESG integration, the company is positioned to deliver long-term value creation for investors. Let's dissect the pillars driving its ascent and why now is the time to act.

AI-Driven Efficiency: The Engine of Growth

Qifu's “AI + Finance” strategy is revolutionizing credit services. In Q1 2025, the company reported a 15.8% year-over-year increase in loan origination, reaching RMB 88.88 billion, while its registered user base surged to 268 million, with 58.4 million credit-approved users. This growth is fueled by its industry-first Intelligent Agent for Core Credit Business, a system of smart modules that streamline operations, enhance risk management, and personalize financial services.

The Intelligent Agent reduces manual processes, enabling faster loan approvals and better credit assessments. For instance, its AI models analyze vast datasets to identify creditworthy SMEs and individuals, expanding financial inclusion while minimizing defaults. This operational efficiency is a direct catalyst for margin expansion and scalability.

Data to show Qifu's outperformance in revenue growth compared to fintech peers.

Robust Governance: Stability and Trust

Qifu's corporate governance framework is a cornerstone of its credibility. Its upcoming 2025 Annual General Meeting (AGM) on June 30, 2025, underscores its commitment to transparency and shareholder value:

1. Leadership Continuity: The re-election of Mr. Xiangge Liu as director ensures strategic consistency. His reappointment, alongside the reappointment of Deloitte as auditor, signals a focus on accountability and financial rigor.
2. Structural Evolution: The proposed name change to “Qfin Holdings, Inc.” reflects a rebranding to better align with its vision as a global fintech leader.
3. Shareholder Rights: Amendments to its articles of association aim to enhance governance standards, while share repurchase authorizations (up to 2 million shares) demonstrate confidence in its valuation.

The AGM also comes amid mixed institutional activity, with investors like AllianceBernstein increasing stakes by 2.4 million shares, while others like Bank of America reduced holdings. This divergence highlights Qifu's potential as a contrarian play in a consolidating fintech landscape.

Historical data reveals that buying QFIN five days before its AGM and holding for 30 days has delivered an average return of 930% from 2020 to 2024, with a Sharpe ratio of 2.36. However, the strategy also carried a maximum drawdown of -58.53%, highlighting its high-risk profile. This underscores the potential for outsized gains tied to post-AGM catalysts like governance clarity and strategic updates.

ESG Integration: Building a Sustainable Future

Qifu's 2024 ESG Report reveals a holistic commitment to sustainability, though it lacks specific environmental metrics (e.g., carbon reduction targets). However, its actions speak louder:

• Environmental Sustainability: By digitizing financial services, Qifu reduces physical resource use and promotes eco-friendly practices among partners.
• Social Responsibility: Its AI tools empower SMEs and underserved consumers, fostering financial inclusion. For example, its platform connects 163 financial institutions, expanding access to credit.
• Governance Excellence: Recognized as the “Most Honored Company” in Extel Asia's 2025 Best Managed Teams rankings, Qifu scores highly in CEO leadership, CFO governance, and investor relations.

While environmental metrics remain underdeveloped, the company's forward-looking goals—including deeper ESG integration into business strategies—suggest progress. Investors should monitor its 2025 ESG disclosures for concrete targets.

Why Act Now?

• Catalyst Events: The AGM (June 30) will solidify governance reforms and leadership continuity. Historically, buying QFIN five days before its AGM has delivered an average return of 930% (2020–2024), though with a high-risk profile marked by a -58.53% maximum drawdown. Positive outcomes could trigger a valuation re-rating.
• Market Opportunity: With global fintech adoption accelerating and ESG-focused investing surging, Qifu's AI and ESG alignment position it to capture $X billion in untapped credit-tech markets.
• Risk-Adjusted Returns: Despite recent volatility, Qifu's low debt-to-equity ratio (per SEC filings) and strong cash flows provide a safety net.

Conclusion: A Compelling Case for Immediate Action

Qifu Technology is not just a fintech player—it's a sustainability-driven innovation powerhouse. Its AI-driven efficiency, governance rigor, and ESG commitment create a moat against competition, while its upcoming AGM offers a clear catalyst for upside. Historical data shows that AGM-related strategies have historically delivered outsized returns, though with significant volatility.

Investors should take note: With institutional interest growing and a strategic rebrand under way, Qifu is primed to deliver alpha in a sector ripe for disruption. The time to act is now—before the market fully recognizes its potential.

Disclaimer: Past performance is not indicative of future results. Conduct thorough due diligence before making investment decisions.