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- **Resilient Q3 Results**: Non-GAAP net income RMB 1.51 billion despite 2.09% delinquency rate rise.
- **AI-Driven Growth**: Technology Solutions loan volume up 218% QoQ, AI agents achieving 50% engagement.
- **Regulatory Adjustment**: Take rates expected 3-4% in Q4, stabilizing in 2026 as industry consolidates.
- **Strong Liquidity**: RMB 14.35 billion cash, resuming RMB 450 million share buyback.
- **Risk Management**: Provisions up 36% QoQ, coverage ratio 613%.
- **International Expansion**: Global fintech capabilities position Qfin for overseas growth.

**【CEO Opening Remarks】**
- Q3 2025 saw total loan origination of RMB 83.3 billion, stable QoQ amid macro headwinds.
- Non-GAAP net income reached RMB 1.51 billion, with EPADS of RMB 11.36, reflecting operational resilience.
- Risk management tightened: 90-day delinquency rate rose to 2.09% (from 1.97% Q2), driven by industry-wide regulatory adjustments.
- AI-driven risk models completed 611 iterations, improving collection efficiency by 85.7%.
- ABS issuance grew 29% YoY to RMB 4.5 billion, with costs down 10bps.
- User acquisition cost declined 8% QoQ, with 1.95 million new credit line users added.
- Technology Solutions business saw loan volume surge 218% QoQ, driven by AI agent pilots with banks achieving 50% engagement rates.
- International expansion underway, with confidence in global fintech capabilities.

**【CFO Financial Commentary】**
- Q3 net revenue RMB 5.21 billion (flat QoQ, +19% YoY), with capital-heavy revenue up 8.9% QoQ.
- Platform service revenue down 16% YoY due to regulatory-driven volume declines.
- Average IRR 20.9%, with expectations for modest pricing declines in 2026.
- Provisions rose 36% QoQ to RMB 2.58 billion, with coverage ratio at 613%.
- Cash flow strong: RMB 2.5 billion from operations, total liquidity RMB 14.35 billion.
- Share buyback program resumed post-earnings call, with RMB 281 million executed to date.
- Q4 2025 guidance: Non-GAAP net income RMB 1.0-1.2 billion, reflecting cautious outlook.

**【Q&A Highlights】**
- **Regulatory Impact**: New loan facilitation rules expected to reduce take rates 3-4% in Q4, stabilizing in 2026 as industry consolidates.
- **Asset Quality**: 90-day delinquency rate stabilized in November, but C-M2 (post-30d collection) rose to 0.79% (from 0.64% Q2).
- **Competitive Landscape**: Smaller platforms exiting high-cost segment, creating opportunity for Qfin to acquire higher-quality users.
- **Shareholder Returns**: Buyback program to resume; dividend payout ratio maintained at 0-30% of profits.
- **Technology Solutions**: AI agents achieving 50% engagement in pilot banks, with 20+ financial institution partnerships.
- **APR Caps**: If consumer finance companies cap APR at 20%, Qfin's direct exposure limited (15% of funding), but indirect liquidity risks remain.


Qfin Holdings, Inc.(QFIN)-20251119-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

QFIN

QFIN fundamentals

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