Q2 2025 Qfin Holdings Inc Earnings Call Transcript
Key Points
- Qfin Holdings Inc (QFIN) reported a 16% year-over-year increase in total loan facilitation and origination volume, reaching RMB84.6 billion.
- The company's take rate improved to 5.4%, up almost 1 percentage point year over year.
- Non-GAAP net income increased by 30.8% year over year to RMB1.85 billion, with non-GAAP EPADS rising by 48.8% to RMB13.63.
- Qfin Holdings Inc (QFIN) successfully issued approximately RMB7.8 billion in ABS during the quarter, a year-over-year increase of about 70%.
- The company expanded its embedded finance business, adding four new strategic channels and achieving a 103% year-over-year increase in new credit line users from these channels.
- The consumer credit demand remains soft, with no clear signs of recovery, partly due to regulatory uncertainty and ongoing industry adjustments.
- The company's collection rate decreased from 88.1% in Q1 to 87.3% in Q2, indicating a slight decline in asset quality.
- Qfin Holdings Inc (QFIN) experienced a modest increase in the 90-day delinquency rate, which rose to 1.97% in Q2 from 2.02% in Q1.
- The company anticipates a potential pullback in loan origination and facilitation in Q3 due to regulatory changes and market uncertainties.
- Qfin Holdings Inc (QFIN) reported a higher effective tax rate of 19.3% in Q2, compared to the typical rate of approximately 15%, due to withholding tax provisions.
Ladies and gentlemen, thank you for standing by, and welcome to the Qfin Holdings second-quarter 2025 earnings conference call. (Operator Instructions)
There will be a presentation followed by a question-and-answer session. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the conference call over to Ms. Karen Ji, Senior Director of Capital Markets. Please go ahead, Karen.
Thank you, Jay. Hello, everyone, and welcome to Qfin second-quarter 2025 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 our 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
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