Financial Data and Key Metrics Changes - Full-year group revenue reached RMB 13.6 billion, an increase of 3.8% year-over-year, while net profit rose to RMB 2.5 billion, a 6.6% increase from the previous year [11] - Full-year transaction volume was RMB 200 billion, down 2.9% year-over-year, reflecting regulatory uncertainty in China [12] - International business volume increased by 38.6%, with revenue rising by 32.0% year-over-year, contributing 31% of revenue for the quarter, up from 21% a year ago [12][13] Business Line Data and Key Metrics Changes - In China, loan origination volume moderated to CNY 38.7 billion, with an outstanding loan balance of CNY 68.3 billion in the fourth quarter [17] - Vintage loss for new loan origination stabilized at 3.0%, while the outstanding loan portfolio risk increased, with CM2 rising from 0.61% to 0.77% for the quarter [18] - International markets, including Indonesia and the Philippines, achieved full-year profitability, contributing over $15 million in combined operating profit [20] Market Data and Key Metrics Changes - In Indonesia, transaction volume reached a historical high of $0.3 billion, reflecting a 10% growth quarter-over-quarter [39] - The unique borrower base in international markets grew to RMB 3.8 million, a 133.8% increase year-over-year [38] - In the Philippines, total transaction volume reached $0.2 billion, a 64% growth year-over-year, with embedded e-commerce partnerships contributing 43% of the country's volume [42][68] Company Strategy and Development Direction - The company aims to grow international revenue to 50% by 2030, focusing on a balanced geographic portfolio to hedge against market volatility [13][45] - The recent acquisition of Fundo in Australia is part of the strategy to enter developed markets, leveraging existing capabilities and regulatory experience [22][76] - The company is committed to refining risk models and optimizing funding costs to improve unit economics [78] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating regulatory changes in China and emphasized a focus on high-quality operations and sustainability [53][54] - The company anticipates a decline in full-year 2026 group revenue between 5% and 15% year-over-year due to regulatory impacts [45] - Management highlighted the importance of maintaining a proactive customer acquisition strategy and adapting to changing market conditions [56] Other Important Information - The company accelerated its buyback program, repurchasing $107 million worth of shares in 2025, with a commitment to meaningful shareholder returns [29][44] - The company launched an emergency humanitarian response in Indonesia following severe flooding, reflecting its commitment to ESG efforts [28] Q&A Session Summary Question: Shareholder return policy and sustainability of buyback momentum - Management confirmed the acceleration of buybacks, with $40.7 million in the first quarter and a total of $107 million for 2025, indicating attractive opportunities despite regulatory headwinds [50][52] Question: Update on operational targets for the domestic market - Management stated that the focus for 2026 will be on high-quality operations, with expectations for lower transaction volume in the first quarter due to seasonal factors [53][54] Question: Trends in delinquency rates and credit cycle outlook - Management reported an increase in risk metrics but noted signs of stabilization, with day one delinquency trending down in January and February [62] Question: Revenue contribution from overseas markets and customer acquisition strategies - Management expects international revenue to account for roughly 30% of total revenue in 2026, with systematic customer acquisition strategies in place [64][66] Question: Strategic thinking behind entering developed markets - Management explained that entering developed markets like Australia allows the company to leverage its experience and build resilience against market volatility [72][74]

Financial Data and Key Metrics Changes - The company reported full-year revenue of RMB 13.6 billion, an increase of 3.8% year-over-year, and net profit rose to RMB 2.5 billion, a 6.6% increase from the previous year [7][8] - Full-year transaction volume was RMB 200 billion, down 2.9% year-over-year, reflecting regulatory uncertainty in China [8] - The international business saw significant growth, with volume increasing by 38.6% and revenue rising by 32.0% year-over-year, contributing 31% of revenue for the quarter, up from 21% a year ago [8][9] Business Line Data and Key Metrics Changes - In the mature market of China, loan origination volume moderated to CNY 38.7 billion, with an outstanding loan balance of CNY 68.3 billion in Q4 [11] - The vintage loss for new loan origination stabilized at 3.0%, while the CM2 increased from 0.61% to 0.77% for the quarter, indicating a trend in risk management [12] - The international markets, including Indonesia and the Philippines, achieved full-year profitability, contributing over $15 million in combined operating profit, with a unique user base doubling to 5.9 million [13] Market Data and Key Metrics Changes - The company operates in both developing and developed markets, with recent entry into Australia, which is characterized by high growth and scalable opportunities [10][11] - In Indonesia, transaction volume reached a historical high of $0.3 billion, reflecting a 10% growth quarter-over-quarter, while the Philippines saw a 64% growth year-over-year in total transaction volume [26][27] - The regulatory environment in Indonesia has provided clarity, allowing for increased customer acquisition investments [26] Company Strategy and Development Direction - The company aims to grow international revenue to 50% by 2030, leveraging a strategy that integrates operations across markets rather than treating each as a standalone effort [9][10] - The acquisition of Fundo in Australia is seen as a strategic move to enter a developed market with a mature regulatory framework, allowing for faster and more efficient growth [14][51] - The company is focusing on high-quality operations in China, emphasizing sustainability, compliance, and the use of AI to drive efficiencies [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in 2025 but expressed confidence in the company's strategic direction and resilience [7][21] - The company anticipates a phase of industry consolidation in China due to regulatory changes, positioning itself to seize opportunities [12] - For 2026, the company expects group revenue to decline between 5% and 15% year-over-year, while maintaining a focus on international growth [29] Other Important Information - The company accelerated its buyback program, repurchasing $107 million worth of shares in 2025, with a commitment to meaningful shareholder returns [20][29] - The company launched an emergency humanitarian response in Indonesia, reflecting its commitment to ESG efforts [19] Q&A Session Summary Question: Shareholder return policy and operational targets for the Chinese market - Management confirmed the continuation of the buyback momentum despite regulatory uncertainties, with a focus on high-quality operations and customer acquisition strategies in China [34][36] Question: Trends in delinquency rates and revenue contribution from overseas markets - Management reported an increase in early risk indicators but noted signs of stabilization, with expectations for international revenue to account for roughly 30% of total revenue in 2026 [40][43] Question: Strategic thinking behind entering developed markets and current competitive environment - Management explained that entering developed markets like Australia allows the company to leverage its experience in China and Southeast Asia, with a focus on building resilience and capturing growth opportunities [49][51]