FinVolution(US:FINV)2025-11-20 01:32Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 grew 6.4% year-over-year to RMB 3.5 billion, while net profit increased by 2.7% year-over-year to RMB 641 million [5][20] - The funding costs improved slightly from 3.7% in the previous quarter to 3.6% [17] - The company anticipates full-year 2025 total revenue guidance to be in the range of approximately RMB 13.1 billion to RMB 13.7 billion, representing year-over-year growth of approximately 0% to 5% [21] Business Line Data and Key Metrics Changes - The international business segment saw transaction volume increase by 33% year-over-year, with revenue rising by 37% year-over-year [5][20] - The international segment represented a record 25% of total revenue this quarter, compared to 19% a year earlier [5] - In Indonesia, transaction volume grew 14% year-over-year to RMB 2.1 billion, while loan balance increased by 21% year-over-year to RMB 1.4 billion [19] Market Data and Key Metrics Changes - The Philippines experienced a transaction volume increase of 86% year-over-year to RMB 1.6 billion, with loan balance surging 101% year-over-year to RMB 897 million [20] - The consumer confidence index in China trended up slightly in Q3, although domestic demand remains relatively mild amid a complex external environment [17] Company Strategy and Development Direction - The company is focused on a balanced portfolio with a strategic target of having 50% of its business coming from international markets by 2030 [44] - The company has proactively upgraded its borrower base and raised underwriting standards to target higher quality customers [42] - The company continues to enhance its technology and AI capabilities, hosting competitions to develop tools for various applications [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the new consumer finance regulation in China could create short-term uncertainties over volume, revenue, and risk metrics [8][13] - The company remains confident in the long-term fundamentals of its China business, despite the regulatory changes [16] - Management emphasized the importance of risk management and maintaining a strong financial foundation to navigate current market fluctuations [35] Other Important Information - The company repurchased approximately $2.6 million worth of shares in the third quarter, with a cumulative repurchase amount of $437 million since 2018 [21] - The company introduced an upgraded AI customer service agent that successfully completed over 1 million service interactions during the quarter [15] Q&A Session Summary Question: Impact of regulatory changes on normalized negative rate and buyback plan - Management indicated that the normalized situation under the 24% cap for risk-bearing loans is around 22%, and they expect some fluctuations in risk metrics due to the new regulations [24] - On the buyback front, as of November 14, the company has bought back $78.4 million worth of shares, with a significant increase in pace during Q4 [26] Question: Day-one delinquency rate and growth momentum in overseas markets - The day-one delinquency rate increased by 30 basis points quarter-over-quarter to 5%, while the 30-day collection rate softened to 18.8% [33] - Management expects continued growth momentum in overseas markets, particularly in Indonesia and the Philippines, driven by diverse product offerings [36][37]