Core Viewpoint - FinVolution Group has announced a convertible senior notes offering totaling US$130 million, aimed at funding international expansion, replenishing working capital, and facilitating a concurrent share repurchase [1][2]. Notes Offering Details - The offering consists of convertible senior notes with a principal amount of US$130 million, maturing in 2030, and an option for initial purchasers to buy an additional US$20 million [1]. - The notes will bear an interest rate of 2.50% per year, payable semi-annually starting January 1, 2026 [3]. - The initial conversion rate is set at 80.8865 ADSs per US$1,000 principal amount, equating to an approximate conversion price of US$12.36 per ADS, representing a 30% premium over the closing price of US$9.51 on June 18, 2025 [4]. Repurchase Plan - Concurrently, the company plans to repurchase 6,377,740 ADSs at US$9.51 each, which is the last reported sale price on June 18, 2025 [6]. - This repurchase is intended to assist initial hedging by purchasers of the notes and is part of existing share repurchase programs announced in 2023 and 2025 [6]. Company Overview - FinVolution Group is a leading fintech platform in China, Indonesia, and the Philippines, established in 2007, focusing on connecting young borrowers with financial institutions [13]. - As of March 31, 2025, the company had 216.2 million cumulative registered users across its platforms [13].

Core Viewpoint - FinVolution Group announced a proposed offering of convertible senior notes totaling US$130 million, with an option for an additional US$20 million, aimed at institutional buyers under Rule 144A of the Securities Act [1][9] Group 1: Notes Offering Details - The convertible senior notes will mature on July 1, 2030, unless repurchased, redeemed, or converted prior to that date [3] - Holders can convert their notes into cash, American Depositary Shares (ADSs), or a combination of both at the company's discretion [4] - The company plans to use the net proceeds from the offering for international business expansions, replenishing working capital, and funding a concurrent repurchase of ADSs [2] Group 2: Repurchase and Market Impact - The concurrent repurchase will involve buying back ADSs from certain purchasers of the notes, facilitating initial hedging for those investors [6] - The repurchase activities may influence the market price of the ADSs and the trading price of the notes [7][8] - The repurchase price for the notes will be equal to 100% of the principal amount plus any accrued interest [5] Group 3: Company Overview - FinVolution Group is a leading fintech platform in China, Indonesia, and the Philippines, established in 2007, focusing on connecting young borrowers with financial institutions [11] - As of March 31, 2025, the company had 216.2 million cumulative registered users across its platforms [11]

Financial Data and Key Metrics Changes - As of the end of Q4 2024, the outstanding loan balance was RMB 110 billion, with GMV at RMB 52 billion and revenue at RMB 3.7 billion, reflecting a consistent profit growth trajectory [7][38] - Net income increased by 17% to RMB 363 million, with a net income take rate rising from 1.09% in Q3 to 1.31% in Q4, marking a 22 basis point improvement [38][39] - The revenue take rate improved to 6.22%, a 36 basis point increase from 5.86% in Q3, despite a decrease in the overall APR charged to users [39][40] Business Line Data and Key Metrics Changes - The online consumer finance business saw enhanced customer acquisition strategies, while the e-commerce segment revamped its risk management system, leading to a fast-growing profit trajectory [14][15] - The inclusive finance business, focusing on small business owners in lower-tier cities, has been profitable for three consecutive quarters, with loans from these areas accounting for over 65% of total GMV [15][22] - The overseas business is still in early phases but has shown improved customer acquisition costs and operational stability [15][17] Market Data and Key Metrics Changes - The company reported a 23% quarter-over-quarter increase in GMV from API channels, with a 10% decline in risk for new assets [31] - The overall take rate increased due to improved asset quality, with credit costs decreasing by 5% or RMB 73 million [41][42] Company Strategy and Development Direction - The company aims to prioritize asset quality and profitability enhancement while expanding customer acquisition channels and improving operational efficiency [23][60] - A commitment to increasing the dividend payout ratio to 25% of net profit was announced, reflecting a focus on shareholder returns [24][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant profit growth in 2025, despite potential macroeconomic headwinds and seasonality fluctuations [23][63] - The company plans to continue enhancing its risk management system and expects to see a continuous decline in key risk indicators [60][61] Other Important Information - The company invested RMB 151 million in research and development in Q4, focusing on AI technologies to enhance operational efficiency [18][20] - The Intelligent Credit Platform (ICP) gained traction, with loan originations under this model increasing to 14% of total new loan volume [47] Q&A Session Summary Question: What are the business plans for 2025 and the AI-related business layout? - The strategy for 2025 focuses on asset quality and profitability enhancement, with ongoing upgrades to the risk management system and significant growth in net income expected [60][61][64] Question: Can you elaborate on the latest progress in risk management capabilities? - The company has achieved significant improvements in risk management, reaching industry-level capabilities, with key risk indicators showing continued improvement [71][72] Question: What are the trends in unit economics and expectations for OpEx in 2025? - The net profit margin is expected to increase significantly, driven by asset quality improvement and reduced funding costs, while operating expenses will rise at a slower pace than profitability [86][89][91]