FinVolution(US:FINV)2023-03-15 03:53Financial Data and Key Metrics Changes - For the full year 2022, the company achieved a total transaction volume of RMB 175.4 billion, representing a year-over-year increase of 28% [8] - The total outstanding loan balance stood at RMB 64.6 billion, a year-over-year increase of 28% [9] - Net revenues for the fourth quarter reached approximately RMB 3 billion, up 25% year-over-year, with full year net revenues exceeding RMB 10 billion for the first time, reaching RMB 11 billion, up 17% year-over-year [19] Business Line Data and Key Metrics Changes - Domestic loan volume for the full year grew to RMB 171 billion, a year-over-year increase of 28%, while the fourth quarter volume rose to RMB 47 billion, a year-over-year increase of 24% [8] - International loan volume for the full year climbed to RMB 4.3 billion, representing a year-over-year increase of 16%, with the fourth quarter volume reaching RMB 1.4 billion, an increase of 41% year-over-year [8] Market Data and Key Metrics Changes - The proportion of category A and B borrowers in the domestic market increased to 77% in the fourth quarter from 63% in the same period last year [10] - The company reported a strong loan collection recovery rate of approximately 90% in the fourth quarter [10] Company Strategy and Development Direction - The company plans to continue its local focus and global outlook strategy, emphasizing serving better quality borrowers while exploring additional countries for expansion [16] - The international segment contributed RMB 1.15 billion or 10.3% of total revenue for the full year 2022, with expectations for this contribution to rise to between 15% to 20% of total revenue in 2023 [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the reopening of China and expects transaction volume in the domestic market for 2023 to be in the range of RMB 189 billion to RMB 205 billion, representing a year-over-year increase of around 10% to 20% [24] - The company will adopt an optimistic yet prudent approach for the first half of 2023 in the domestic market while pursuing a more aggressive strategy internationally [23] Other Important Information - The company has successfully registered 212 software copyrights and filed 162 patents in fintech-related areas as of December 2022 [7] - The company received a low-risk ESG rating from Sustainalytics for the second consecutive year, reflecting its commitment to sustainability and social responsibility [15] Q&A Session Summary Question: Consumer credit demand trend in Q1 - Management noted a year-over-year increase in demand of around 10% to 20% before Chinese New Year, with a positive overall trend despite a decline post-holiday [26] - Early indicators showed day 1 delinquency increased but has since fallen back to 5.3%, with a collection recovery rate of 91% [27] Question: Lending model trends and SME business positioning - The capital-light model accounted for 16% of the full year, with 17 funding partners validating the company's capabilities [29] - The SME segment is expected to maintain a focus of 20% to 30% of loan volume in 2023 [30] Question: International business expansion - The company is expanding rapidly in Indonesia and the Philippines, with plans to explore additional countries while maintaining a balance between investment and earnings [33][34]