Qifu Technology Announces Third Quarter 2023 Unaudited Financial Results

SHANGHAI, China, Nov. 16, 2023 (GLOBE NEWSWIRE) -- Qifu Technology, Inc. (NASDAQ:QFIN, HKEx: 3660))) ("Qifu Technology" or the "Company"), a leading Credit-Tech platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2023.

Third Quarter 2023 Business Highlights

• As of September 30, 2023, our platform has connected 155 financial institutional partners and 227.9 million consumers^*1 with potential credit needs, cumulatively, an increase of 12.0% from 203.5 million a year ago.
• Cumulative users with approved credit lines^*2 were 49.2 million as of September 30, 2023, an increase of 14.4% from 43.0 million as of September 30, 2022.
• Cumulative borrowers with successful drawdown, including repeat borrowers was 29.4 million as of September 30, 2023, an increase of 11.9% from 26.3 million as of September 30, 2022.
• In the third quarter of 2023, financial institutional partners originated 18,504,320 loans^*3 through our platform. Total facilitation and origination loan volume reached RMB123,148 million^*4, an increase of 11.3% from RMB110,675 million in the same period of 2022.
• Out of those loans originated by financial institutions, RMB69,579 million was under capital-light model, Intelligence Credit Engine ("ICE") and other technology solutions^*5, representing 56.5% of the total, an increase of 7.7% from RMB64,583 million in the same period of 2022.
• Total outstanding loan balance^*6 was RMB189,100 million as of September 30, 2023, an increase of 18.2% from RMB160,020 million as of September 30, 2022.
• RMB116,283 million of such loan balance was under capital-light model, "ICE" and other technology solutions^*7, an increase of 27.5% from RMB91,196 million as of September 30, 2022.
• The weighted average contractual tenor of loans originated by financial institutions across our platform in the third quarter of 2023 was approximately 11.23 months, compared with approximately 12.27 months in the same period of 2022.
• 90 day+ delinquency rate^*8 of loans originated by financial institutions across our platform was 1.82% as of September 30, 2023.
• Repeat borrower contribution^*9 of loans originated by financial institutions across our platform for the third quarter of 2023 was 91.5%.

1 Refers to cumulative registered users across our platform.

2 "Users with approved credit lines" refers to the total number of users who had submitted their credit applications and were approved with a credit line at the end of each period.

3 Including 5,935,834 loans across "V-pocket", and 12,568,486 loans across other products.

4 Refers to the total principal amount of loans facilitated and originated during the given period, including loan volume facilitated through Intelligence Credit Engine ("ICE") and other technology solutions.

5 "ICE" is an open platform on our "360 Jietiao" APP, we match borrowers and financial institutions through big data and cloud computing technology on "ICE", and provide pre-loan investigation report of borrowers. For loans facilitated through "ICE", the Company does not bear principal risk. Loan facilitation volume through "ICE" was RMB9,629 million in the third quarter of 2023.

Under other technology solutions, we offer financial institutions on-premise deployed, modular risk management SaaS, which helps financial institution partners improve credit assessment results. Loan facilitation volume through other technology solutions was RMB26,563 million in the third quarter of 2023.

6 "Total outstanding loan balance" refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, including loan balance for "ICE" and other technology solutions, excluding loans delinquent for more than 180 days.

7 Outstanding loan balance for "ICE" and other technology solutions were RMB12,720 million and RMB42,134 million, respectively, as of September 30, 2023.

8 "90 day+ delinquency rate" refers to the outstanding principal balance of on- and off-balance sheet loans that were 91 to 180 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under "ICE" and other technology solutions are not included in the delinquency rate calculation.

9 "Repeat borrower contribution" for a given period refers to (i) the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, divided by (ii) the total loan facilitation and origination volume through our platform during that period.

Third Quarter 2023 Financial Highlights

• Total net revenue was RMB4,281.0 million (US$586.8 million), compared to RMB4,144.1 million in the same period of 2022.
• Income from operations was RMB1,388.9 million (US$190.4 million), compared to RMB1,158.3 million in the same period of 2022.
• Non-GAAP^*10 income from operations was RMB1,432.2 million (US$196.3 million), compared to RMB1,207.8 million in the same period of 2022.
• Operating margin was 32.4%. Non-GAAP operating margin was 33.5%.
• Net income was RMB1,137.7 million (US$155.9 million), compared to RMB988.4 million in the same period of 2022.
• Non-GAAP net income was RMB1,181.0 million (US$161.9 million), compared to RMB1,037.9 million in the same period of 2022.
• Net income attributed to the Company was RMB1,142.0 million (US$156.5 million), compared to RMB992.8 million in the same period of 2022.
• Net income margin was 26.6%. Non-GAAP net income margin was 27.6%.

10 Non-GAAP income from operations (Adjusted Income from operations), Non-GAAP net income (Adjusted net income), Non-GAAP operating margin and Non-GAAP net income margin are non-GAAP financial measures. For more information on these non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures Statement" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Mr. Haisheng Wu, Chief Executive Officer and Director of Qifu Technology, commented, "As macro-economic recovery stalled and consumer sentiment softened, we made timely adjustment to our strategies and focused our effort on refined operations to drive better profitability and quality growth. For the third quarter, total loan facilitation and origination volume was RMB123.1 billion, up 11.3% year-on-year. Approximately 56% of the loan volume was facilitated under the capital-light model, ICE and other technology solutions.

Through optimizing customer acquisition channels and enriching product and service offerings, we added over 1.7 million new users with approved credit lines. In addition, we continued to strengthen our partnership with financial institutions and achieve overall better funding terms. During the quarter with the help of new ABS issuance, we further reduce our overall funding costs to record low levels.

As economic headwind persists, we experienced some fluctuation in asset quality during the quarter. However, many of the operational initiatives we launched in the quarter should continue to make positive contributions through the remainder of this year and the next year. In the long run, we will continue to drive for consistent executions and optimal balance between quality growth and manageable risks."

"We are pleased to report another quarter of solid financial results in a rather challenging macro environment. Total revenue was RMB4.28 billion and non-GAAP net income was RMB1.18 billion for the third quarter," Mr. Alex Xu, Chief Financial Officer, commented. "During the quarter, despite the macro uncertainty, we continued to improve our operational efficiency and drive for better economic returns. At the end of the third quarter, our total cash and cash equivalent^*11 was approximately RMB8.2 billion, and we generated approximately RMB1.2 billion cash from operations. Our strong financial positions not only enable us to drive quality growth, but also allow us to deliver attractive shareholder returns through dividend payout and share repurchase."

Mr. Yan Zheng, Chief Risk Officer, added, "We started to see fluctuation on key risk metrics in the third quarter as macro uncertainties impacted consumers' sentiment and financial wellness. We took quick actions to tighten our credit assessment criteria to cope with the uncertainties. Among key leading indicators, Day-1 delinquency rate^*12 was 4.6%, and 30-day collection rates^*13 was approximately 87% for the third quarter. As the economic conditions change, we will continue to take a prudent approach in managing risks and navigating through this challenging macro headwinds."

11 Including "Cash and cash equivalents", "Restricted cash", and "Security deposit prepaid to third-party guarantee companies".

12 "Day-1 delinquency rate" is defined as (i) the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that was due for repayment as of such specified date.

13 "30 day collection rate" is defined as (i) the amount of principal that was repaid in one month among the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that became overdue as of such specified date.

Third Quarter 2023 Financial Results

Total net revenue was RMB4,281.0 million (US$586.8 million), compared to RMB4,144.1 million in the same period of 2022, and RMB3,914.3 million in the prior quarter.

Net revenue from Credit Driven Services was RMB3,071.0 million (US$420.9 million), compared to RMB2,941.1 million in the same period of 2022, and RMB2,788.7 million in the prior quarter.

Loan facilitation and servicing fees-capital heavy were RMB479.2 million (US$65.7 million), compared to RMB582.9 million in the same period of 2022 and RMB395.5 million in the prior quarter. The year-over-year decrease was primarily due to shorter tenor of the loans compared to that in the same period of 2022. The sequential increase was primarily due to higher capital-heavy loan volume and longer effective tenor of the loans compared to that in the prior quarter.

Financing income^*14 was RMB1,369.9 million (US$187.8 million), compared to RMB877.1 million in the same period of 2022 and RMB1,188.7 million in the prior quarter. The year-over-year and sequential increases were primarily due to the growth in average outstanding balance of the on-balance-sheet loans.

Revenue from releasing of guarantee liabilities was RMB1,165.7 million (US$159.8 million), compared to RMB1,447.6 million in the same period of 2022, and RMB1,158.6 million in the prior quarter. The year-over-year and sequential changes reflected the changes in average outstanding balance of off-balance-sheet capital-heavy loans.

Other services fees were RMB56.1 million (US$7.7 million), compared to RMB33.6 million in the same period of 2022, and RMB45.9 million in the prior quarter. The year-over-year and sequential increases were mainly due to the increases in late payment fees under the capital-heavy model.

Net revenue from Platform Services was RMB1,210.1 million (US$165.9 million), compared to RMB1,203.0 million in the same period of 2022 and RMB1,125.6 million in the prior quarter.

Loan facilitation and servicing fees-capital light were RMB863.9 million (US$118.4 million), compared to RMB1,040.2 million in the same period of 2022 and RMB887.8 million in the prior quarter. The year-over-year decrease was mainly due to lower capital-light loan volume and shorter effective tenor of the loans. The sequential decrease was primarily due to lower capital-light loan volume.

Referral services fees were RMB234.2 million (US$32.1 million), compared to RMB85.4 million in the same period of 2022 and RMB160.9 million in the prior quarter. The year-over-year and sequential increases were mainly due to the increase in the loan facilitation volume through ICE.

Other services fees were RMB112.0 million (US$15.4 million), compared to RMB77.4 million in the same period of 2022 and RMB76.9 million in the prior quarter. The year-over-year and sequential increases were mainly due to increase in late payment fees and other service fees.

Total operating costs and expenses were RMB2,892.2 million (US$396.4 million), compared to RMB2,985.9 million in the same period of 2022 and RMB2,732.8 million in the prior quarter.

Facilitation, origination and servicing expenses were RMB639.8 million (US$87.7 million), compared to RMB617.3 million in the same period of 2022 and RMB648.0 million in the prior quarter. The year-over-year increase was primarily due to higher credit search fees and collection fees.

Funding costs were RMB160.2 million (US$22.0 million), compared to RMB138.5 million in the same period of 2022 and RMB165.2 million in the prior quarter. The year-over-year increase was primarily due to increases in funding from ABS, as a result of continued growth in on-balance-sheet loan balance, partially offset by the lower average cost of ABS.

Sales and marketing expenses were RMB529.6 million (US$72.6 million), compared to RMB624.1 million in the same period of 2022 and RMB436.5 million in the prior quarter. The year-over-year decrease was mainly due to decline in unit customer acquisition cost. The sequential increase was mainly due to larger number of new users and slightly higher unit cost in the third quarter.

General and administrative expenses were RMB95.4 million (US$13.1 million), compared to RMB102.7 million in the same period of 2022 and RMB112.8 million in the prior quarter. The year-over-year and sequential decreases were mainly due to decreases in professional service fees and our continued effort to improve operational efficiency.

Provision for loans receivable was RMB509.0 million (US$69.8 million), compared to RMB191.5 million in the same period of 2022 and RMB483.3 million in the prior quarter. The year-over-year and sequential increases were mainly due to the growth in loan origination volume of on-balance-sheet loans.

Provision for financial assets receivable was RMB86.9 million (US$11.9 million), compared to RMB115.1 million in the same period of 2022 and RMB82.3 million in the prior quarter. The year-over-year and sequential changes mainly reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.

Provision for accounts receivable and contract assets was RMB39.7 million (US$5.4 million), compared to RMB53.8 million in the same period of 2022 and RMB47.2 million in the prior quarter. The year-over-year and sequential changes reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.

Provision for contingent liability was RMB831.6 million (US$114.0 million), compared to RMB1,142.8 million in the same period of 2022 and RMB757.6 million in the prior quarter. The year-over-year and sequential changes reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile. In addition, the sequential increase was also partially due to the increase in loan facilitation volume of off-balance-sheet loans.

Income from operations was RMB1,388.9 million (US$190.4 million), compared to RMB1,158.3 million in the same period of 2022 and RMB1,181.5 million in the prior quarter.

Non-GAAP income from operations was RMB1,432.2 million (US$196.3 million), compared to RMB1,207.8 million in the same period of 2022 and RMB1,234.7 million in the prior quarter.

Operating margin was 32.4%. Non-GAAP operating margin was 33.5%.

Income before income tax expense was RMB1,478.1 million (US$202.6 million), compared to RMB1,171.5 million in the same period of 2022 and RMB1,366.3 million in the prior quarter.

Net income was RMB1,137.7 million (US$155.9 million), compared to RMB988.4 million in the same period of 2022 and RMB1,093.4 million in the prior quarter.

Non-GAAP net income was RMB1,181.0 million (US$161.9 million), compared to RMB1,037.9 million in the same period of 2022 and RMB1,146.6 million in the prior quarter.

Net income margin was 26.6%. Non-GAAP net income margin was 27.6%.

Net income attributed to the Company was RMB1,142.0 million (US$156.5 million), compared to RMB992.8 million in the same period of 2022 and RMB1,097.4 million in the prior quarter.

Non-GAAP net income attributed to the Company was RMB1,185.3 million (US$162.5 million), compared to RMB1,042.4 million in the same period of 2022 and RMB1,150.7 million in the prior quarter.

Net income per fully diluted ADS was RMB6.94 (US$0.96).

Non-GAAP net income per fully diluted ADS was RMB7.20 (US$0.99).

Weighted average basic ADS used in calculating GAAP and non-GAAP net income per ADS was 160.39 million.

Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 164.61 million.

14 "Financing income" is generated from loans facilitated through the Company's platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers.

30 Day+ Delinquency Rate by Vintage and 180 Day+ Delinquency Rate by Vintage

The following charts and tables display the historical cumulative 30 day+ delinquency rates by loan facilitation and origination vintage and 180 day+ delinquency rates by loan facilitation and origination vintage for all loans facilitated and originated through the Company's platform. Loans under "ICE" and other technology solutions are not included in the 30 day+ charts and the 180 day+ charts:

http://ml.globenewswire.com/Resource/Download/e56afd67-5dca-451d-9333-b92c4f4aa954

http://ml.globenewswire.com/Resource/Download/013031cc-cad2-4610-a707-e0526602e43d

Update on Share Repurchase

On June 20, 2023, the Company announced a share repurchase plan whereby the Company is authorized to repurchase its American depositary shares ("ADSs") or Class A ordinary shares with an aggregate value of up to US$150 million during the 12-month period from June 20, 2023. From the launch of the share repurchase plan to November 16, 2023, the Company in aggregate purchased approximately 4.9 million ADSs in the open market for a total cost of approximately US$80 million (inclusive of commissions) at an average price around US$16.2 per ADS pursuant to the share repurchase plan.

Business Outlook

Given the slower than expected macro-economic recovery and persistent uncertainties, the Company will continue to take a prudent approach in business planning and risk management. As such, the Company now expects total loan volume for the fourth quarter to be between RMB116 billion and RMB126 billion, and for the full year total loan volume to be between RMB473 billion and RMB483 billion, representing a year-on-year growth of 15%-17%. This outlook reflects the Company's current and preliminary views, which is subject to material changes.

Conference Call Preregistration

Qifu Technology's management team will host an earnings conference call at 7:30 PM U.S. Eastern Time on Thursday, November 16, 2023 (8:30 AM Beijing Time on Friday, November 17, 2023).

All participants wishing to join the conference call must pre-register online using the link provided below.

Registration Link: https://register.vevent.com/register/BI21f98dce365242beac459791a07d81ab

Upon registration, each participant will receive details for the conference call, including dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website at http://ir.qifu.tech.

About Qifu Technology

Qifu Technology is a Credit-Tech platform in China that provides a comprehensive suite of technology services to assist financial institutions and consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The Company is dedicated to making credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions.

For more information, please visit: https://ir.qifu.tech.

Use of Non-GAAP Financial Measures Statement

To supplement our financial results presented in accordance with U.S. GAAP, we use Non-GAAP financial measure, which is adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our Non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the Non-GAAP financial measures.

We use Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS in evaluating our operating results and for financial and operational decision-making purposes. Non-GAAP income from operation represents income from operation excluding share-based compensation expenses. Non-GAAP operating margin is equal to Non-GAAP income from operation divided by total net revenue. Non-GAAP net income represents net income excluding share-based compensation expenses. Non-GAAP net income margin is equal to Non-GAAP net income divided by total net revenue. Non-GAAP net income attributed to the Company represents net income attributed to the Company excluding share-based compensation expenses. Non-GAAP net income per fully diluted ADS represents net income per fully diluted ADS excluding share-based compensation expenses. Such adjustments have no impact on income tax. We believe that Non-GAAP income from operation and Non-GAAP net income help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in results based on U.S. GAAP. We believe that Non-GAAP income from operation and Non-GAAP net income provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Our Non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of Non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2960 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 29, 2023.

Safe Harbor Statement

Any forward-looking statements contained in this announcement are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. Qifu Technology may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including the Company's business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company's growth strategies, the Company's cooperation with 360 Group, changes in laws, rules and regulatory environments, the recognition of the Company's brand, market acceptance of the Company's products and services, trends and developments in the credit-tech industry, governmental policies relating to the credit-tech industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in Qifu Technology's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Qifu Technology does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Qifu Technology       

E-mail: [email protected]

	Qifu Technology, Inc.
	Unaudited Condensed Consolidated Balance Sheets
	(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted)
		December 31,	September 30,	September 30,
		2022	2023	2023
		RMB	RMB	USD
	ASSETS
	Current assets:
	Cash and cash equivalents	7,165,584	4,938,298	676,850
	Restricted cash	3,346,779	3,067,100	420,381
	Short term investments	57,000	-	-
	Security deposit prepaid to third-party guarantee companies	396,699	192,037	26,321
	Funds receivable from third party payment service providers	1,158,781	1,664,417	228,127
	Accounts receivable and contract assets, net	2,868,625	2,842,438	389,589
	Financial assets receivable, net	2,982,076	2,716,113	372,274
	Amounts due from related parties	394,872	67,312	9,226
	Loans receivable, net	15,347,662	23,469,654	3,216,784
	Prepaid expenses and other assets	379,388	1,052,436	144,248
	Total current assets	34,097,466	40,009,805	5,483,800
	Non-current assets:
	Accounts receivable and contract assets, net-non current	261,319	159,923	21,919
	Financial assets receivable, net-non current	688,843	570,009	78,126
	Amounts due from related parties	33,236	8,177	1,121
	Loans receivable, net-non current	3,136,994	2,870,943	393,495
	Property and equipment, net	47,602	148,285	20,324
	Land use rights,net	998,185	982,642	134,682
	Intangible assets	4,696	13,567	1,860
	Goodwill	-	41,210	5,648
	Deferred tax assets	1,019,171	1,181,488	161,936
	Other non-current assets	55,658	53,021	7,267
	Total non-current assets	6,245,704	6,029,265	826,378
	TOTAL ASSETS	40,343,170	46,039,070	6,310,178
	LIABILITIES AND EQUITY
	Current liabilities:
	Payable to investors of the consolidated trusts-current	6,099,520	6,938,377	950,984
	Accrued expenses and other current liabilities	2,004,551	2,674,368	366,553
	Amounts due to related parties	113,697	152,740	20,935
	Short term loans	150,000	756,278	103,657
	Guarantee liabilities-stand ready	4,120,346	3,981,851	545,758
	Guarantee liabilities-contingent	3,418,391	3,352,336	459,476
	Income tax payable	661,015	1,010,478	138,498
	Other tax payable	182,398	129,555	17,757
	Total current liabilities	16,749,918	18,995,983	2,603,618
	Non-current liabilities:
	Deferred tax liabilities	100,835	117,173	16,060
	Payable to investors of the consolidated trusts-noncurrent	4,521,600	5,697,700	780,935
	Other long-term liabilities	39,520	98,574	13,511
	Total non-current liabilities	4,661,955	5,913,447	810,506
	TOTAL LIABILITIES	21,411,873	24,909,430	3,414,124
	TOTAL QIFU TECHNOLOGY INC EQUITY	18,847,156	21,053,214	2,885,579
	Noncontrolling interests	84,141	76,426	10,475
	TOTAL EQUITY	18,931,297	21,129,640	2,896,054
	TOTAL LIABILITIES AND EQUITY	40,343,170	46,039,070	6,310,178

	Qifu Technology, Inc.
	Unaudited Condensed Consolidated Statements of Operations
	(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted)
		Three months ended September 30,							Nine months ended September 30,
		2022		2023		2023			2022		2023		2023
		RMB		RMB		USD			RMB		RMB		USD
	Credit driven services	2,941,106		3,070,969		420,911			8,809,503		8,490,297		1,163,692
	Loan facilitation and servicing fees-capital heavy	582,857		479,248		65,686			1,724,628		1,185,924		162,544
	Financing income	877,051		1,369,855		187,754			2,485,871		3,624,475		496,776
	Revenue from releasing of guarantee liabilities	1,447,592		1,165,737		159,778			4,522,107		3,534,111		484,390
	Other services fees	33,606		56,129		7,693			76,897		145,787		19,982
	Platform services	1,203,023		1,210,057		165,852			3,837,872		3,304,227		452,881
	Loan facilitation and servicing fees-capital light	1,040,210		863,860		118,402			3,169,165		2,516,970		344,979
	Referral services fees	85,381		234,190		32,098			468,031		503,530		69,014
	Other services fees	77,432		112,007		15,352			200,676		283,727		38,888
	Total net revenue	4,144,129		4,281,026		586,763			12,647,375		11,794,524		1,616,573
	Facilitation, origination and servicing	617,311		639,795		87,691			1,787,872		1,928,125		264,272
	Funding costs	138,475		160,181		21,955			366,105		484,429		66,397
	Sales and marketing	624,104		529,632		72,592			1,791,761		1,388,295		190,282
	General and administrative	102,721		95,393		13,075			318,869		313,039		42,906
	Provision for loans receivable	191,542		508,990		69,763			1,098,859		1,511,160		207,122
	Provision for financial assets receivable	115,144		86,875		11,907			279,361		237,892		32,606
	Provision for accounts receivable and contract assets	53,762		39,724		5,445			170,787		84,694		11,608
	Provision for contingent liabilities	1,142,820		831,563		113,975			3,305,458		2,269,487		311,059
	Total operating costs and expenses	2,985,879		2,892,153		396,403			9,119,072		8,217,121		1,126,252
	Income from operations	1,158,250		1,388,873		190,360			3,528,303		3,577,403		490,321
	Interest income, net	57,819		49,713		6,814			126,007		170,337		23,347
	Foreign exchange (loss) gain	(68,583	)	(659	)	(90	)		(155,241	)	3,171		435
	Other income, net	24,027		40,175		5,506			227,485		225,727		30,938
	Investment loss	-		-		-			(8,996	)	(30,112	)	(4,127	)
	Income before income tax expense	1,171,513		1,478,102		202,590			3,717,558		3,946,526		540,914
	Income taxes expense	(183,159	)	(340,412	)	(46,657	)		(579,891	)	(785,637	)	(107,681	)
	Net income	988,354		1,137,690		155,933			3,137,667		3,160,889		433,233
	Net loss attributable to noncontrolling interests	4,481		4,357		597			14,505		12,707		1,742
	Net income attributable to ordinary shareholders of the Company	992,835		1,142,047		156,530			3,152,172		3,173,596		434,975
	Net income per ordinary share attributable to ordinary shareholders of Qifu Technology, Inc.
	Basic	3.18		3.56		0.49			10.12		9.85		1.35
	Diluted	3.09		3.47		0.48			9.81		9.61		1.32
	Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc.
	Basic	6.36		7.12		0.98			20.24		19.70		2.70
	Diluted	6.18		6.94		0.96			19.62		19.22		2.64
	Weighted average shares used in calculating net income per ordinary share
	Basic	312,481,135		320,789,494		320,789,494			311,571,575		322,240,695		322,240,695
	Diluted	321,521,765		329,220,827		329,220,827			321,224,803		330,391,888		330,391,888

Qifu Technology, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted)
	Three months ended September 30,							Nine months ended September 30,
	2022		2023		2023			2022		2023		2023
	RMB		RMB		USD			RMB		RMB		USD
Net cash provided by operating activities	1,592,127		1,243,893		170,490			4,130,038		4,766,559		653,311
Net cash used in investing activities	(2,981,196	)	(2,260,922	)	(309,885	)		(5,675,628	)	(9,262,095	)	(1,269,476	)
Net cash provided by financing activities	881,092		702,952		96,348			3,010,269		1,978,079		271,118
Effect of foreign exchange rate changes	7,081		4,934		675			4,704		10,492		1,439
Net (decrease) increase in cash and cash equivalents	(500,896	)	(309,143	)	(42,372	)		1,469,383		(2,506,965	)	(343,608	)
Cash, cash equivalents, and restricted cash, beginning of period	10,730,226		8,314,541		1,139,603			8,759,947		10,512,363		1,440,839
Cash, cash equivalents, and restricted cash, end of period	10,229,330		8,005,398		1,097,231			10,229,330		8,005,398		1,097,231

Qifu Technology, Inc.
Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted)
	Three months ended September 30,
	2022	2023	2023
	RMB	RMB	USD
Net income	988,354	1,137,690	155,933
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	36,950	4,051	555
Other comprehensive income	36,950	4,051	555
Total comprehensive income	1,025,304	1,141,741	156,488
Comprehensive loss attributable to noncontrolling interests	4,481	4,357	597
Comprehensive income attributable to ordinary shareholders	1,029,785	1,146,098	157,085
	Nine months ended September 30,
	2022	2023	2023
	RMB	RMB	USD
Net income	3,137,667	3,160,889	433,233
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	80,270	20,724	2,840
Other comprehensive income	80,270	20,724	2,840
Total comprehensive income	3,217,937	3,181,613	436,073
Comprehensive loss attributable to noncontrolling interests	14,505	12,707	1,742
Comprehensive income attributable to ordinary shareholders	3,232,442	3,194,320	437,815

Qifu Technology, Inc.
Unaudited Reconciliations of GAAP and Non-GAAP Results
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted)
	Three months ended September 30,
	2022		2023		2023
	RMB		RMB		USD
Reconciliation of Non-GAAP Net Income to Net Income
Net income	988,354		1,137,690		155,933
Add: Share-based compensation expenses	49,550		43,289		5,933
Non-GAAP net income	1,037,904		1,180,979		161,866
GAAP net income margin	23.8	%	26.6	%
Non-GAAP net income margin	25.0	%	27.6	%
Net income attributable to shareholders of Qifu Technology, Inc.	992,835		1,142,047		156,530
Add: Share-based compensation expenses	49,550		43,289		5,933
Non-GAAP net income attributable to shareholders of Qifu Technology, Inc.	1,042,385		1,185,336		162,463
Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted	160,760,883		164,610,414		164,610,414
Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted	6.18		6.94		0.96
Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted	6.48		7.20		0.99
Reconciliation of Non-GAAP Income from operations to Income from operations
Income from operations	1,158,250		1,388,873		190,360
Add: Share-based compensation expenses	49,550		43,289		5,933
Non-GAAP Income from operations	1,207,800		1,432,162		196,293
GAAP operating margin	27.9	%	32.4	%
Non-GAAP operating margin	29.1	%	33.5	%
	Nine months ended September 30,
	2022		2023		2023
	RMB		RMB		USD
Reconciliation of Non-GAAP Net Income to Net Income
Net income	3,137,667		3,160,889		433,233
Add: Share-based compensation expenses	148,383		143,032		19,604
Non-GAAP net income	3,286,050		3,303,921		452,837
GAAP net income margin	24.8	%	26.8	%
Non-GAAP net income margin	26.0	%	28.0	%
Net income attributable to shareholders of Qifu Technology, Inc.	3,152,172		3,173,596		434,975
Add: Share-based compensation expenses	148,383		143,032		19,604
Non-GAAP net income attributable to shareholders of Qifu Technology, Inc.	3,300,555		3,316,628		454,579
Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted	160,612,402		165,195,944		165,195,944
Net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted	19.62		19.22		2.64
Non-GAAP net income per ADS attributable to ordinary shareholders of Qifu Technology, Inc. -diluted	20.55		20.08		2.75
Reconciliation of Non-GAAP Income from operations to Income from operations
Income from operations	3,528,303		3,577,403		490,321
Add: Share-based compensation expenses	148,383		143,032		19,604
Non-GAAP Income from operations	3,676,686		3,720,435		509,925
GAAP operating margin	27.9	%	30.3	%
Non-GAAP operating margin	29.1	%	31.5	%