Yun-Yin (Cindy) Wang's questions to Qifu Technology Inc (QFIN) leadership • Q1 2025
Question
Yun-Yin (Cindy) Wang from China Renaissance asked about the reasons for the sequential decline in new users and the increase in customer acquisition cost (CAC) in Q1, and how trade tensions might affect new borrower quality and acquisition strategy.
Answer
An executive explained that the higher CAC was driven by a business mix change, with increased volume from API channels and higher spending on in-feed marketing to attract better quality users. They emphasized a focus on overall efficiency, noting the conversion rate from new credit line users to new borrowers improved significantly to 74%. The company will continue to monitor the macro environment and adjust its acquisition pace and channel mix accordingly.