FinVolution Group

Ladies and gentlemen, hello and thank you for participating in the first quarter 2020 for earnings conference call for Finvolution Group. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Jimmy Tan, Head of Investor Relations for the company. Jimmy, please go ahead.

Hello everyone and welcome to our first quarter 2024 earnings conference call. The company results were issued via Newswire Services earlier today and are posted online. You can download the earnings release and sign up for the company email alerts by visiting the IRR section of our website at irr.pimpigroup.com. Mr Tianjian Li, our Chief Executive Officer and Mr Jia Yuanxu, our Chief Financial Officer will start the call with their prepared remarks and conclude with a Q&A session. During this call, we will be referring to several non-GAAP financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For information about these non-GAAP measures and reconciliation to GAAP measures, please refer to our earnings press release. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties are included in the company filings with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Finally, we post a slide presentation on our IR website providing details of our results for the quarter. I will now turn the call over to our CEO, Mr. Chia-Jun Lee. Please go ahead, sir.

Thanks, Jamie. Hello, everyone, and thank you for joining our earnings call. This is Chia-Jun Lee, CEO of InfoLution Group. We are happy to speak with you today. We kicked off 2024 with continued strong execution of our local focus, global outlook strategy, in line with the domestic and international micro trends. China's economic recovery is progressing gradually, while Indonesia and the Philippines are growing more vigorously. There has been a pickup in economic and consumption activities during China's recent holidays, but the M1 financial data in April turned negative year over year, sending mixed signals to the market. But in such situation in mind, we will continue to closely monitor the micro environment while leveraging on our technologies to increase the efficiency of our operations. Driven by our local focus, global outlook strategy, we have served around 31 million borrowers across China, Indonesia, and the Philippines. as of the end of the first quarter of 2024. Our first quarter's performance highlights our strategy's effectiveness as well as its flexibility. Transaction volume in China reached 46 billion RMB, up 10% year-over-year, while outstanding loan balance increased 64 billion RMB, up 4.4% year-over-year. Our ongoing investment in information speed advertising drove further expansion in the number of new borrowers in the China market, up 3% year-over-year, accounting for 20% of unique borrowers. Transaction volume from new borrowers contributed around 15% of total transaction volume, reflecting potential for our continued progressive growth in the China market. Meanwhile, we leveraged our leading technologies strategic agility and deep experience to overcome various challenges facing our Indonesia operations since last quarter, and delivered solid growth in our international markets. International transaction volume reached 2.21 billion RMB, up 41% year-over-year, while outstanding loan balance expanded to 1.27 billion RMB, up 34% year-over-year, demonstrating our ability to capture opportunities in different countries. Driven by our effective social media strategy, the number of our new borrowers in international markets increased by 13% year-over-year and represented 41% of unique borrowers. International business stands as our second growth driver and its revenue contribution has been increasing steadily. For the first quarter, Revenue from international business reached 595 million RMB, up 33% from the same period last year, and representing 19% of total revenue. Going forward, we believe this segment's contribution to revenue will continue to increase as we strengthen our existing markets and expand it into new territories. We also continue to make and drive progress on the technology front in the first quarter of 2024. In February, our extensive collaboration with leading global academic institutions produced three papers, which were selected for the 38th Annual AAAA Conference on Artificial Intelligence, one of the world's top artificial intelligence conferences with an acceptance rate of just 24%. Through our ongoing investment in large language models, we have self-developed a proprietary technology called XCoder. It increases our programmers' efficiency through auto software bug detection and auto revision of frequently used codes, which greatly reduces human error. We have also utilized AIGC to streamline advertising costs and increase efficiency. producing more than 20% of video content with AI for vivid and precise advertising that resonates with our target borrowers while reducing market costs. On a related note, we leveraged our advertising, social media influence, and video content to expand our brand awareness in our international markets on popular channels such as Facebook, TikTok, and Instagram. Our followers reached 1.1 million, 855,000, and 234,000 on those sites respectively. During the first quarter of 2024, up 87%, 55%, and 10% respectively year over year. Before I will wrap up, a brief update on our ESG efforts. In line with our co-commitment to financial inclusion, We continue to support the backbone of the economy by facilitating loans for small business owners during the fourth quarter, both during the gradual and sometimes fragile recovery. We facilitate a total of 13 billion RMB of loans for small business owners, up 26% year-over-year. Furthermore, we made additional strides with our public welfare program aimed at improving farmers' livelihood through the live stream of agricultural products created in collaboration with China's national weightlifting team. This initiative has attracted over 2 million viewers and increased farmers' incomes with more than 2,000 online transactions. In summary, we made most of the first quarter's positive through leveraging on our technologies and increasing efficiency. Firm execution of our local focus, global outlook strategy, ongoing tech innovation, and deep dedication to our vision of financial inclusion propelled our steady progress and long-term sustainable growth. We will remain committed to fostering inclusion, accessibility, and technology as we create value for stakeholders and deliver better financial services to borrowers throughout the Pan-Asian region. With that, I will now turn the call to our CFO, Jia Yuanxu, who will discuss our operational and financial results.