Pomerantz Law Firm Launches Securities Investigation into Qfin Holdings

The investigation centers on Qfin’s August 25 disclosure, which revealed a 31.6% year-over-year revenue decline to RMB 3.57 billion. Net income fell even more drastically, dropping 76.8% compared to the previous year, a performance worsened by an unplanned RMB 500 million tax expense. Management’s subsequent guidance predicted a further 67% to 73% collapse in third-quarter non-GAAP net income, citing rising funding costs and instability within the Chinese credit sector.

Investors reacted to the disclosure on August 26, pushing the company's American Depositary Receipt price down by $2.18 to close at $9.35. Pomerantz LLP, a firm specializing in corporate and securities litigation, is now calling for shareholders affected by these losses to come forward. The inquiry seeks to determine if officers or directors engaged in unlawful business practices or securities fraud.