| ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I |
QFIN HOLDINGS, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I The following Schedule I has been provided pursuant to the requirements of Rules 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of the Company’s PRC subsidiaries and VIEs which may not be transferred to the Company in the forms of loans, advances or cash dividends without the consent of PRC government authorities as of December 31, 2025, was more than 25% of the Company’s consolidated net assets as of December 31, 2025. CONDENSED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) | | | | | | | | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | USD | | | | | | | (Note 2) | ASSETS | | | | | | | Cash and cash equivalents | | 274,514 | | 518,855 | | 74,195 | Short term investments | | 493,947 | | — | | — | Prepaid expenses and other assets | | 12,080 | | 182,430 | | 26,087 | Amount due from subsidiaries and VIEs | | 3,016,777 | | 4,083,237 | | 583,895 | Investments in subsidiaries and VIEs | | 20,393,966 | | 22,058,713 | | 3,154,354 | TOTAL ASSETS | | 24,191,284 | | 26,843,235 | | 3,838,531 | LIABILITIES AND EQUITY | | | | | | | LIABILITIES | | | | | | | Accrued expenses and other current liabilities | | 1,241 | | 4,075 | | 583 | Convertible notes-current | | — | | 1,019,130 | | 145,734 | Convertible notes-noncurrent | | — | | 1,583,213 | | 226,396 | Other long-term liabilities | | — | | 121,902 | | 17,432 | TOTAL LIABILITIES | | 1,241 | | 2,728,320 | | 390,145 | EQUITY | | | | | | | Ordinary shares (USD0.00001 par value per share 5,000,000,000 shares authorized, 296,540,988 shares issued and 283,981,320 shares outstanding as of December 31, 2024 and 283,019,282 shares issued and 243,823,900 shares outstanding as of December 31, 2025, respectively) | | 21 | | 20 | | 3 | Treasury stock | | (1,113,608) | | (4,066,385) | | (581,485) | Additional paid-in capital | | 4,339,413 | | 3,874,816 | | 554,091 | Retained earnings | | 20,952,340 | | 24,502,158 | | 3,503,762 | Other comprehensive income (loss) | | 11,877 | | (195,694) | | (27,985) | TOTAL EQUITY | | 24,190,043 | | 24,114,915 | | 3,448,386 | TOTAL LIABILITIES AND EQUITY | | 24,191,284 | | 26,843,235 | | 3,838,531 |
QFIN HOLDINGS, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) | | | | | | | | | | | Year ended | | Year ended | | Year ended | | Year ended | | | December 31, | | December 31, | | December 31, | | December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | RMB | | USD | | | | | | | | | (Note 2) | Operating costs and expenses | | (25,517) | | (19,770) | | (24,973) | | (3,571) | Interest income, net | | 17,316 | | 24,376 | | 27,734 | | 3,966 | Foreign exchange (losses) gains | | (574) | | 316 | | 6,613 | | 946 | Fair value change of derivatives | | — | | — | | (181,205) | | (25,912) | Gain on debt extinguishment | | — | | — | | 270,135 | | 38,629 | Other income, net | | 29,311 | | 15,939 | | 12,090 | | 1,729 | Net income before taxes and income from equity in subsidiaries and VIEs | | 20,536 | | 20,861 | | 110,394 | | 15,787 | Equity in earnings of subsidiaries and VIEs | | 4,264,800 | | 6,248,235 | | 5,882,969 | | 841,254 | Net income before taxes | | 4,285,336 | | 6,269,096 | | 5,993,363 | | 857,041 | Income tax expenses | | — | | (4,782) | | (3,672) | | (525) | Net income attributable to shareholders of the Company | | 4,285,336 | | 6,264,314 | | 5,989,691 | | 856,516 | Net income attributable to ordinary shareholders of the Company | | 4,285,336 | | 6,264,314 | | 5,989,691 | | 856,516 |
QFIN HOLDINGS, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) | | | | | | | | | | | Year ended | | Year ended | | Year ended | | Year ended | | | December 31, | | December 31, | | December 31, | | December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | RMB | | USD | | | | | | | | | (Note 2) | Net income attributable to shareholders of the Company | | 4,285,336 | | 6,264,314 | | 5,989,691 | | 856,516 | Other comprehensive income, net of tax of nil: | | | | | | | | | Foreign currency translation adjustment | | 17,118 | | 46,534 | | (207,571) | | (29,682) | Other comprehensive income (loss) | | 17,118 | | 46,534 | | (207,571) | | (29,682) | Total comprehensive income | | 4,302,454 | | 6,310,848 | | 5,782,120 | | 826,834 | Comprehensive income attributable to ordinary shareholders | | 4,302,454 | | 6,310,848 | | 5,782,120 | | 826,834 |
QFIN HOLDINGS, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I CONDENSED STATEMENTS OF CASH FLOWS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) | | | | | | | | | | | Year ended | | Year ended | | Year ended | | Year ended | | | December 31, | | December 31, | | December 31, | | December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | RMB | | USD | | | | | | | | | (Note 2) | Cash Flows from Operating Activities: | | | | | | | | | Net income attributable to shareholders of the Company | | 4,285,336 | | 6,264,314 | | 5,989,691 | | 856,516 | Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | Equity in earnings of subsidiaries and VIEs, net of dividends | | (3,474,800) | | 1,706,075 | | (1,428,319) | | (204,247) | Amortization of convertible senior notes issuance cost | | — | | — | | 22,241 | | 3,180 | Changes in operating assets and liabilities | | | | | | | | | Accrued expenses and other current liabilities | | 2,282 | | 87 | | 3,326 | | 476 | Prepaid expenses and other assets | | (17,667) | | 20,229 | | (198,412) | | (28,373) | Interest receivable/payable | | 1,320 | | (9,091) | | 8,095 | | 1,158 | Foreign exchange gain | | — | | — | | (6,613) | | (946) | Gain on debt extinguishment | | — | | — | | (270,135) | | (38,629) | Fair value change of foreign exchange options | | 4,527 | | — | | 181,205 | | 25,912 | Net Cash provided by Operating Activities | | 800,998 | | 7,981,614 | | 4,301,079 | | 615,047 | Cash Flows from Investing Activities: | | | | | | | | | Repayment of loans provided to subsidiaries and VIEs | | 378,148 | | 2,881,606 | | 5,395,300 | | 771,518 | Loans provided to subsidiaries and VIEs | | (71,706) | | (5,920,169) | | (6,576,973) | | (940,495) | Proceeds from disposal of short-term investments | | 216,301 | | 291,520 | | 2,323,576 | | 332,267 | Purchase of short-term investments | | (203,361) | | (776,418) | | (1,926,552) | | (275,493) | Net Cash provided by (used in) Investing Activities | | 319,382 | | (3,523,461) | | (784,649) | | (112,203) | Cash Flows from Financing Activities: | | | | | | | | | Payment of Secondary Listing costs | | (16,023) | | — | | — | | — | Dividends to shareholders | | (941,705) | | (1,262,935) | | (1,378,103) | | (197,066) | Proceeds from convertible senior notes, net of issuance cost | | — | | — | | 4,917,431 | | 703,183 | Repurchase of convertible senior notes | | — | | — | | (1,908,688) | | (272,939) | Stock repurchase | | (636,179) | | (2,973,192) | | (4,848,116) | | (693,271) | Net Cash used in Financing Activities | | (1,593,907) | | (4,236,127) | | (3,217,476) | | (460,093) | Effect of foreign exchange rate changes | | 11,840 | | 49,852 | | (54,613) | | (7,811) | Net (decrease) increase in cash and cash equivalents | | (461,687) | | 271,878 | | 244,341 | | 34,940 | Cash, cash equivalents, and restricted cash, beginning of year | | 464,323 | | 2,636 | | 274,514 | | 39,255 | Cash, cash equivalents, and restricted cash, end of year | | 2,636 | | 274,514 | | 518,855 | | 74,195 |
Supplemental disclosures of cash flow information: | | | | | | | | | Payables for dividends: | | — | | — | | — | | — | Payables for capitalized issuance costs | | — | | — | | — | | — |
Notes to condensed financial statements | 1. | The condensed financial statements of Qfin Holdings, Inc. have been prepared using the same accounting policies as set out in the Financial Statements except that the equity method has been used to account for investments in subsidiaries and VIEs. Such investment in subsidiaries and VIEs are presented on the balance sheets as interests in subsidiaries and VIEs and the profit of the subsidiaries and VIEs is presented as equity in earnings of subsidiaries and VIEs on the statement of operations. |
| 2. | As of December 31, 2024 and 2025, there were no material contingencies, significant provisions of long-term obligations of the Company, except for those which have been separately disclosed in the Financial Statements. |
| 3. | Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosure certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying Financial Statements. |
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