FinVolution(FINV)2025-03-18 14:33Financial Data and Key Metrics Changes - Total revenue for 2024 reached RMB 30.1 billion, up 4% year-over-year [12] - Net income for the fourth quarter was RMB 681 million, representing a 29% increase year-over-year [41] - The leverage ratio improved to around 3x, indicating potential growth opportunities as the macroeconomic environment stabilizes [42] Business Line Data and Key Metrics Changes - Transaction volume in China grew by 5% year-over-year, while international markets saw a rapid growth of around 28% [9] - Revenue from international operations rose 19% year-over-year to RMB 2.5 billion, accounting for close to 20% of total revenue for 2024 [12] - The Philippines transaction volume reached RMB 3.1 billion for the year, up 138% year-over-year [38] Market Data and Key Metrics Changes - Indonesia's economy grew over 5% in 2024, driven by increased household spending and investment [32] - The Philippines achieved an economic growth rate of 5.6% for 2024, with a significant increase in final consumption expenditure [37] - The consumer confidence index in Indonesia remained above 120 for two consecutive years, indicating strong market conditions [32] Company Strategy and Development Direction - The company aims to achieve 50% of revenue from international markets by 2030, with a strong focus on expanding operations in Indonesia, the Philippines, and Pakistan [17][46] - The company has expanded its regulatory license portfolio in key markets, enhancing customer outreach and product offerings [11] - A commitment to innovation is emphasized, with significant investments in R&D and AI technology to improve operational efficiency [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties in China, operations in Indonesia and the Philippines have benefited from favorable conditions [8] - The company expects total revenue to increase between 10% to 15% in 2025, with international revenue contribution projected to rise to around 25% [19][46] - Management expressed optimism regarding consumer demand recovery and regulatory support for the consumer finance sector [68] Other Important Information - The company returned over USD 160 million to shareholders in 2024, consisting of USD 70 million in dividends and USD 90 million through share repurchases [45] - The Board of Directors approved a revised dividend policy to increase the payout ratio to between 20% to 30% of net income for 2025 onwards [44][56] Q&A Session Summary Question: International business operating cost and expected growth - Management indicated that operational costs for international segments will decrease as business matures, with expected profit from Indonesia to at least double in 2025 [51][53] Question: Shareholder return policy - The company aims to deliver long-term sustainable returns, with a total capital return of USD 160 million in 2024, representing almost 49% of net profit [56][57] Question: User demand recovery and loan guidance for 2025 - Management observed a recovery trend in consumer demand in Q4 2024, with expectations for continued growth in 2025 supported by government measures [64][68] Question: AI development and operational efficiency - The company is integrating AI into various business processes, which has led to significant cost reductions and improved customer service capabilities [70][74] Question: International market expansion strategy - The company achieved significant milestones in Indonesia and the Philippines, with plans to accelerate operations in Pakistan in 2025 [81][85]