Qfin Holdings, Inc. (NASDAQ: QFNHF)

Qifu Technology, Inc., also known as QFIN, operates as a Credit-Tech platform in China, providing a comprehensive suite of technology services to financial institutions, consumers, and small and medium enterprises (SMEs) in the loan lifecycle. Established in 2016 and headquartered in Shanghai, China, the company's primary business activities include providing credit-driven services, platform services, and other technology solutions.

QFIN generates revenue primarily through service fees charged to financial institution partners for facilitating loans to borrowers. The company's credit-driven services include loan facilitation, post-facilitation services, and guarantee services. Under this model, QFIN matches prospective borrowers with financial institution partners and provides guarantees against potential defaults. For loans facilitated through QFIN's platform, the company earns service fees directly from financial institution partners.

The company's platform services include loan facilitation and post-facilitation services through its capital-light model, intelligent marketing services to financial institution partners under Intelligence Credit Engine (ICE), referral services, and other technology solutions. Under its capital-light model, QFIN facilitates transactions between prospective borrowers and financial institution partners through a suite of technology-enabled services spanning across the loan lifecycle.

QFIN's primary product offered to users is the digital revolving lines of credit, allowing multiple loan drawdowns with a convenient application process and flexible loan tenors. The company's products are provided under the 360 Jietiao brand. QFIN's engagement with prospective consumer borrowers begins with a credit application, which typically takes a few minutes. Once approved by financial institution partners, a prospective borrower is granted a line of credit, typically with a principal amount ranging from RMB1,000 to RMB200,000.

A leading Credit-Tech platform in China, QFIN's position within the industry is characterized by its proprietary credit assessment system, Argus Engine, and its ability to provide guarantees against potential defaults. The company's credit assessment process involves the use of its AI-enabled credit assessment system and understanding through interactions with a broad user base. QFIN's Cosmic Cube Pricing Model formulates initial pricing recommendations to financial institution partners based on the overall credit profile of prospective borrowers and other market factors. The company's credit assessment capabilities are a key competitive advantage, allowing the company to expand its business while maintaining consistently solid asset quality of the loan portfolios.

QFIN's customers include financial institution partners, such as banks and non-bank financial institutions, as well as consumers and SMEs. The company's customers are primarily based in China, with a focus on the consumer Credit-Tech market.