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Recently, Qifu Technology disclosed the transfer of a 7.429 billion yuan personal consumption non-performing asset package for a consideration of 308 million yuan. The ultra-low discount rate of 4.15% marks the largest single NPL disposal transaction since its establishment, also revealing underlying concerns about the deterioration of the company's asset quality. Securities Star noted that Qifu Technology's performance growth slowed and net profit declined in the third quarter of 2025, while its core platform, Qifu Jietiao (formerly 360 Jietiao), is frequently embroiled in compliance complaints regarding violent debt collection and high-interest charges. This once top-tier fintech company is now mired in multiple difficulties; its development challenges not only expose its own operational issues but also serve as a significant case study for observing the domestic consumer finance industry's transition from rampant growth to compliance. Section 01 The disposal of 7.4 billion in personal loan NPLs at a deep discount, coupled with continuously rising provisions for risky loans. On December 31, two licensed entities under Qifu Technology—Fuzhou Qifu Financing Guarantee Co., Ltd. and Fuzhou Qifu Online Microfinance Co., Ltd.—signed an agreement with a wholly-owned subsidiary of China Renaissance Holdings to transfer a combined 7.429 billion yuan personal consumption non-performing asset package for a consideration of 3.08 billion yuan, resulting in an overall discount rate of just 4.15%. This transaction scale is the largest single NPL disposal since Qifu Technology's founding, also revealing the tip of the iceberg regarding its deteriorating asset quality. According to disclosures in China Renaissance's announcement and Qifu Technology's financial reports, the asset package involves 6.677 billion yuan in outstanding principal from the financing guarantee side, with an average delinquency period as high as 854 days; the microfinance side involves 752 million yuan in outstanding principal, with an average delinquency period of 439 days, all comprising unsecured personal consumption credit assets. This fire sale is not an isolated incident but an inevitable result of the accumulating pressure from non-performing assets at Qifu Technology. Its Q3 2025 financial report shows that its delinquency rate for loans overdue for over 90 days climbed to 2.09%, up 7 basis points year-over-year; the Day 1 delinquency rate (D1) reached 5.5%, a five-year high; meanwhile, the 30-day recovery rate dropped to 85.7% from 88.1% YoY, reflecting persistently rising risks in new loan originations. To cover potential losses, Qifu Technology added 2.58 billion yuan in provisions for risky loans in Q3, higher than the 2.50 billion yuan in Q2, with the provision coverage ratio remaining at a high level of 613%. However, the elevation of this metric also indirectly confirms the latent risks in its asset quality. Section 02 Last year's Q3 performance deceleration led to stock valuation downgrades. Accompanying the flare-up of non-performing assets is a significant slowdown in Qifu Technology's performance growth. In the third quarter of 2025, Qifu Technology achieved revenue of 5.206 billion yuan, a year-over-year increase of 19.1%, but net profit was only 1.433 billion yuan, a decrease of 20.3% YoY. Furthermore, Qifu Technology also forecasted that Q4 2025 would generate a net profit between 920 million and 1.12 billion yuan, and a non-GAAP net profit between 1 billion and 1.2 billion yuan, representing a year-over-year decline of 39% to 49%. Weak performance directly triggered a vote of no confidence from the capital market. Since November 2025, several institutions including CLSA, China International Capital Corporation (CICC), and Jefferies have successively downgraded Qifu Technology's target price: CICC lowered its US stock target price from $48.5 to $32, and its Hong Kong stock target price from HK$195 to HK$115, representing reductions of 34% and 41% respectively; CLSA cut its US stock target price from $32 to $27, a 15.6% decrease; Jefferies reduced its target price from $40 to $30.3, a drop of 24.3%. Institutions generally believe that regulatory policy uncertainty will continue to compress Qifu Technology's profit margins, while deteriorating asset quality could lead to downward revisions of 10%-45% in its profit forecasts for the next 1-2 years. The continuous stock price decline further reflects a collapse in market confidence. As of January 21, 2026, Qifu Technology's US stock closing price was $16.29, down over 60% from its peak in early 2025; its Hong Kong stock closing price was HK$65.9, down nearly 50% from six months prior. In terms of valuation, its US stock dynamic P/E ratio is only 2.23 times, significantly lower than the fintech industry average of around 10 times, reflecting investor skepticism about its long-term growth narrative. Section 03 Persistent complaints target its credit platform, frequently involving violent collection and high-interest disputes. Beyond asset quality and performance pressures, Qifu Technology's core brand, Qifu Jietiao (formerly 360 Jietiao), is embroiled in escalating compliance controversies. According to public data from the Hei Mao Tou Su platform, as of January 22, complaints against Qifu Jietiao exceeded 1,000 in just the past 30 days, primarily focusing on violent debt collection, excessive interest rates, and arbitrary fee charges. Multiple complainants reported that third-party collection agencies commissioned by Qifu Jietiao engaged in疑似违规行为: even when borrowers themselves were reachable, collectors frequently called their relatives, friends, and colleagues, even sending threatening text messages and conducting door-to-door harassment; some collectors used intimidating language like "exposing your contact list," "onsite collection," or "filing a lawsuit" to threaten borrowers, seriously infringing upon their legitimate rights. On January 15, one user stated in a complaint: "Forced by the harassment and threats from Qifu Jietiao's third-party collectors, my life has been troubled. I borrowed several loans on this platform and temporarily cannot repay due to family reasons, but the third party continuously harasses me with calls and threatening texts, and even threatens to harass my family at my registered residence." Apart from violent collection, disputes over high interest rates and fees at Qifu Jietiao continue to ferment. Some users pointed out that the actual borrowing cost far exceeds the nominal interest rate, as the platform artificially inflates the comprehensive fee rate by charging "service fees" and "guarantee fees." On January 15, another user complained: "My 360 loan is overdue. Now they are not only pressuring me but also sending messages and calling my elderly family members, threatening and intimidating my relatives and friends... The loan interest is high, collection is threatening. I borrowed 140,000 yuan, now they demand 200,000 yuan, and I've already repaid tens of thousands previously..." As recently as January 20, a consumer service guarantee platform under the China Electronic Chamber of Commerce also hosted a complaint alleging Qifu Jietiao engaged in forced bundled fees and high interest rates. The user claimed that Qifu Jietiao强制捆绑收费 for post-loan services in its lending business, charging fees for services not actually rendered, and that the comprehensive annualized fee rate far exceeded the legal上限,涉嫌违反金融监管规定 and laws like the Consumer Rights Protection Law. This complaint is currently being followed up by the platform, awaiting the company's response. From a former fintech star to a current focus of controversy, Qifu Technology's predicament stems from both its own strategic choices and the combined effects of industry cycles and regulatory policies. During this critical period of transition for the consumer finance industry from "rampant growth" to "compliant operation," the challenges facing Qifu Technology are not merely short-term performance declines and stock price pressure, but more fundamentally, long-term business model restructuring and trust rebuilding. Currently, the licensed consumer finance industry is trending towards standardization, technological integration, and scenario-based development, with regulatory policies continuously guiding institutions back to their inclusive origins. This also implies that industry consolidation may further accelerate, ultimately eliminating platforms unable to adapt to the new rules. The fate of Qifu Technology concerns not only its own development but will also serve as a crucial case study for observing the transformation of China's fintech industry.
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