FinVolution(FINV)2024-11-19 14:25Financial Data and Key Metrics Changes - For Q3 2024, net revenue reached RMB 3.3 billion, marking a 3% increase year-over-year and sequentially [10] - Net income was RMB 624 million, representing a 9% year-over-year increase and a 13% sequential increase [10] - Total transaction volume reached RMB 52.2 billion, while total outstanding loan balance reached RMB 68.1 billion, up 1.8% and 3.3% year-over-year, respectively [4][6] Business Line Data and Key Metrics Changes - The number of new borrowers in international markets reached 671,000, up 60% year-over-year and 43% quarter-over-quarter [4] - International transaction volume for the first nine months of the year reached RMB 7.2 billion, up 29% year-over-year [7] - Revenue contribution from international markets grew to RMB 636 million, representing 19% of total revenues [7] Market Data and Key Metrics Changes - In China, transaction volume for the first nine months of 2024 reached RMB 142 billion, up over 4% year-over-year [6] - The Philippines saw a transaction volume growth of 137% year-over-year, contributing about 32% to international transaction volume for the quarter [9] - In Indonesia, transaction volume increased by 11% in Q3, marking one of the best performing quarters [8] Company Strategy and Development Direction - The company aims to achieve 50% of its revenue from international markets by 2030, with international revenue contribution expected to reach around 20% in 2024 [3] - A focus on technological innovation and customer acquisition strategies is emphasized to enhance market penetration and operational efficiency [5][6] - The company is expanding its partnerships with local financial institutions in international markets to strengthen its operational capabilities [8][19] Management's Comments on Operating Environment and Future Outlook - Management anticipates sustainable improvements in the fourth quarter due to broader-than-expected stimulus measures announced in late September [2] - The company remains confident in its ability to navigate challenges and achieve long-term sustainable growth through its local excellence and global outlook strategy [5][11] - Management highlighted the importance of maintaining high-quality borrower acquisition to support continued growth [12][14] Other Important Information - The company has returned a total of USD 686.1 million to shareholders through share repurchases and dividends since 2018, underscoring its commitment to enhancing shareholder value [22][23] - The company has integrated advanced technologies into its operations, including solutions to combat fraud, which have improved loan collection recovery rates [5][6] Q&A Session Summary Question: What drove the loan volume pickup during the quarter in China? - Management noted that customer demand increased by approximately 12% and the number of new customers grew by 14%, reaching 400,000 [12][14] Question: Expectations for the Indonesian business to start generating meaningful profits? - Management indicated that after adjustments, transaction volume in Indonesia resumed growth, and they expect to see more meaningful profits in 2025 [15][19] Question: Strategy for customer acquisition in Indonesia and the Philippines? - Management highlighted the establishment of partnerships with local financial institutions and the importance of adapting to local market conditions to enhance customer acquisition [18][19]