FinVolution Group

Hello, ladies and gentlemen. Thank you for participating in the third quarter 2024 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 capital markets for the company. Jimmy, please go ahead.

Hello everyone and welcome to our third 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 company email alerts by visiting the IR section of our website at ir.finvigroup.com. Mr Teo Gen Lee, our Chief Executive Officer and Mr Jia Yuan Xu, 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 forwarding statements, except as required under applicable law. Finally, we post a slide presentation on our IRN website providing details of our results for the quarter. I will now turn the call over to our CEO, Mr. Tiajun Li. Please go ahead, sir.

Thanks, Jamie. Hello, everyone, and thank you for joining us. This is Tiajun Li, CEO of Evolution Group. We are happy to speak with you today. Revolution made great progress despite the purest challenges through strong execution of our local excellence, global outlook, our legal strategy. Although China's overall economic growth remained restrained in the third quarter, we anticipate more sustainable improvements in the fourth quarter, given the border than anticipated stimulus virus announced in late September. Also, we have made great progress towards the objective of achieving 50% of our revenue coming from the international market by 2030. By constantly leveraging our experience in China and ongoing technological improvements, we have propelled rapid growth in international transaction volume. This has translated into higher revenue and net income contribution, with international revenue contribution increasing significantly. from 3.7% in 2020 to 10.3% in 2022 and expected to be around 20% in 2024. Over the years, we have also consolidated our capabilities into individual models, which we can flexibly deploy while adapting to the evolving requirements of different countries. In line with our objective of increasing our international revenues, We recently strengthened our international team and invited Dr. Sun Xiaodong to join us as our Senior Vice President for International Business. Dr. Sun has held key positions at renowned firms such as Ant Financial International, MyBank, American Express, and Citibank. Both started by Mr. Sun's leadership and expertise. We are confident of accelerating our international business expansion and achieving new milestones. As of September 30, 2024, we have cumulatively served 32.6 million borrowers across China, Indonesia, and the Philippines. For our international markets, we are proud to share that the number of unique borrowers grew from 0.7 million in 2020. to 1.6 million in 2022, and to 2.1 million for the first nine months of 2024. Also, it's worthy to note the number of new borrowers were 0.63 million in 2020, 1.1 million in 2022, and 1.5 million in the first nine months of 2024. Validating the high percentage of new borrowers in our international business, The acquisition of high-quality borrowers across all our markets remains an important element of our strategy. As a result, the total number of new borrowers across our platform once again exceeded the 1 million mark. We are very pleased to share that as we enhanced our global operations during the third quarter, the number of new borrowers in international markets reached 671,000, up 60% year-over-year and 43% quarter-over-quarter. Notably, the number of new international borrowers increased by a quarter. Such strong growth underscores our execution excellence and our strategy's effectiveness in driving the rapid expansion of our international business. For the third quarter, Total transaction volume reached 52.2 billion RMB, while total outstanding loan balance reached 68.1 billion RMB of 1.8% and 3.3% respectively year-over-year. This continued growth across all the markets in which we operate validates our strategy's efficiency and sustainability. Given the low penetration rate for financial services in our international market, We continue to enhance our holistic approach to customer acquisition with innovative marketing campaigns that capitalize on our strategic partners' resources and our local teams' deep understanding of market trends. For instance, our comprehensive social media strategy continues to attract new site visitors and enhance our brand exposure, facilitating positive word-of-mouth publicity and projecting a trustworthy image that encouraged followers conversion. As of the end of the third quarter, our total followers on major social media platforms reached 2.5 million, up 21% year-over-year. As a tech pioneer, we are leveraging tech innovation to strengthen our operations and promote the fintech industry's integrity and security. During the third quarter, Finvolution presented its detection solutions for combating deep fake voice command scams during the 33rd International Joint Conference on Artificial Intelligence in South Korea. Advancement in voice synthesis technology are making it increasingly difficult to distinguish between genuine and cloned voices, posing significant risk in terms of data security and asset protection affecting different industries. We believe that our sophisticated larger laundry model-based solutions have the potential to effectively fight voice command fraud, safeguarding our users' interests and fostering a healthy industry ecosystem. We have also integrated larger laundry models into our loan collection recovery process, which has improved our loan collection recovery rate and saved us millions of dollars. The development of such innovative technologies is a result of our strong commitment to R&D and the annual Finvolution Technology Cup competition, which has incubated many cutting-edge solutions over its nine-year history. Looking ahead, we will continue to invest heavily in R&D to enhance service quality and operating efficiency empowered by leading technologies across our operations. Before I wrap up, a brief update on our ESG efforts. In line with our commitment to financial inclusion, we continue to support the backbone of the economy by facilitating loans for small business owners during the third quarter. As Agile, community-oriented providers of local employment opportunities, serving small business ultimately contribute to a more rapid economic recovery. During the quarter, we empowered 447,000 small business owners with totaling 15.4 billion RMB during the quarter of 25% year-over-year. In summary, we successfully navigated the third quarter's challenge by capitalizing on our strength in technology, customer acquisition, and retention. We also continue to attract quality talents across multiple countries, which has further strengthened our R&D capabilities and will eventually enable business process outsourcing from Indonesia and the Philippines. Facilitating our expansion as we enter into more new markets, firm execution of our local excellence, global outlook strategy, continuous technological innovation, and our enabling commitment to our vision of financial inclusion continue to drive our steady progress and long-term sustainable growth. Going forward, we are confident of becoming the leading fintech player across the Pan-Asian region. With that, I will now turn the call over to our CFO, Jiaoyuan Xu, who will discuss the operational and financial results.

Thank you, Li, and hello, everyone. Welcome to our third quarter 2024 earnings call. Let's go through our key results for the third quarter To be mindful of the length of earnings call today, I encourage listeners to refer to our third quarter earnings press release for further details. As Li mentioned, the recent announcement of a series of borders that expected stimulus measures during China's national holidays has resulted in positive growth in travel and consumption data. During the national day holiday period, 765 million domestic trips were made, a year-over-year increase of 5.9%. Domestic tourists collectively spend around 700 and 1 billion, representing year-over-year growth of 6.3%. Alongside the trend of consumption recovery, consumer willingness to purchase houses in the first tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, has rebounded significantly due to favorable real estate policies. Furthermore, the manufacturing PMI rose by 70 basis points in September, reaching 49.8 points, the highest level since May. During the third quarter, we observed ongoing improvement across multiple operational metrics in our China market. For the first nine months of 2024, the transaction volume in China reached RMB 142 billion, up by over 4% year-over-year. Other operational metrics also exhibited varied degrees of continuous improvement. Furthermore, Our average borrowing rate in China remained stable in the third quarter. A strong validation of our commitment to financial inclusion. Leveraging ample market liquidity and a continuous shortage of quality loan assets, we further improved our funding costs by an additional 50 bps in the third quarter. Since the beginning of the year, we have improved funding costs by 190 bps. Reflecting financial institutions' strong recognition of our asset quality and the credit risk assessment capabilities. Regarding risk, we achieved significant improvement in our recent day one delinquency rate, driving a 20 basis point improvement to 4.9% through effective use of our end-to-end involving credit risk assessment models. our loan collection recovery rate rebounded to 88.5% of 50 basis points quarter over quarter. Given our growing confidence in the acceleration of the macroeconomic recovery, we anticipate sustaining the improvement for the remainder of the year. We also maintain our expectation that vintage delinquency rate for the quarter will improve to around 2.4%. Turning now to our international expansion, our validated second growth driver. For the first nine months of the year, international transaction volume reached 7.2 billion, up 29% year-over-year. Revenue contribution from the international markets grew further to 636 million, of 9% year-over-year and representing 19% of total revenues. Capitalizing on a robust global microenvironment through effective execution of our legal strategy, we are confident in our international operations sustainability and the diversification of our business models across various countries. Let me begin with our first and largest overseas market in Indonesia. This market continues to exhibit strong growth momentum, with the consumer confidence index remaining above 120 points for 21 consecutive months. We expect further simulation in local consumption following a 25 basis point reduction in the benchmark seven-day reserve report rate to 6%. In September 2024, motorbike sales in Indonesia increased by 3.7% year-over-year, reaching 529,000 units. After several months of business adjustments aimed at attracting high-quality borrowers under the new pricing cap, We are pleased to announce that our transaction volume in Indonesia has resumed growth, reaching RMB 1.8 billion, a security increase of 11%. This quarter also marks one of our best performing quarters ever in terms of transaction volume. Following the completion of our recent business adjustments, we forged a new strategic partnership agreement with Superbank A leading digital bank in Indonesia, highlighting the trust and the recognition we have earned from local financial institutions. To date, we have entered into strategic partnerships with multiple renowned digital and traditional local financial institutions, including Silver Bank, Bank Jago, Bank, OCBC Bank, and Bank, among others. I also want to highlight that after several quarters of preparation, we have successfully acquired a large majority stake in a local multi-finance company, which will enable us to diversify our products into non-cash loans. This in turn will empower us to expand our presence to some more borrowers. The completion of this acquisition underscores regulators' trust and confidence in our local operations. In the Philippines, our second international market, robust microeconomic conditions are boosting consumption. In September, the Purchase Managers Index PMI reached 53.7 points, reflecting year-over-year growth of 6% and a sequential increase of 5%. This micro-trend also drove a reduction in the Philippines' unemployment rate to 3.7% in September 2024, down from 4.5% during the same period last year. Notably, private consumption in the Philippines has accounted for over 70% of its nominal GDP for over a decade, serving as the country's primary growth engine, boosted by steady remittance inflows and a strong labor market. Our Philippines operations continue to outperform expectations, with the transaction volume growing 137% year-over-year and 24% sequestered into RMB $838 million. It's also worth noting that its contribution to international transaction volume grew to about 32% for the court. We have established a robust financial and operational partnerships in the region and remain highly confident in our ability to sustain rapid growth here. For example, we are stressing our Buy Now Pay Later BNPL partnership with TikTok. We have also initiated a pilot project with another leading e-commerce platform to diversify our customer acquisition channel. Furthermore, We have ample funding from leading local financial institutions such as Maya Bank, C Bank, and Union Bank to support our growth. These solid partnerships have enabled us to capitalize on the vast opportunities in the Philippines market. Given the accomplishments we have achieved in our international markets, we are confident we can replicate this success in additional countries and regions by leveraging our in-depth experience and technological advantages. Now, turning to our financial metrics. This quarter's operational excellence resulted in solid financial performance. Net revenue for the quarter reached RMB 3.3 billion, marking a 3% increase year-over-year and a 3% increase equationally. Net income was RMB 624 million, representing a 9% increase year-over-year and a 13% increase sequentially. Meanwhile, sales and marketing expenses rose by 6% year-over-year to RMB 560 million as we continued to strengthen efforts to acquire new borrowers of high quality in both China and international markets. Furthermore, our leverage ratio defined as risk-bearing loans divided by shareholders' equity remained low at 3.2 times, reflecting potential growth opportunities as the macroeconomic environment stabilized. Our total liquidity position, consisting of cash and cash equivalents plus short-term investments, reached around $9 billion, of 13% from December 2023. Showcase is a reversal balance sheet that's well able to support our business growth and exploration of new opportunities while consistently increasing shareholders' returns. Before I conclude, let me briefly update you on our share repurchase program. During the third quarter, we deployed around the U.S. 24.3 million to repurchase around 4.6 million ADS on a secondary market. For the first nine months of 2024, we deployed U.S. 81.1 million to repurchase our shares in the market up 23% year-over-year. As of September 13, 2024, we had cumulatively returned U.S. $361.1 million and the U.S. $325 million to our shareholders in the form of share purchase and dividend distribution respectively. For a total return of U.S. $686.1 million to our shareholders, underscoring our strong commitment to enhancing shareholders' value. In summary, Our reverse results for the third quarter demonstrated the effectiveness of our Local Excellence Global Outlook Strategy, empowered by our industry business model and technological advantages. Given consumers' growing confidence in an accelerating economic recovery, we believe our operations will continue to build positive momentum throughout the remainder of the year. We will remain committed to seeding the global market vast opportunities and sharing our achievements with all shareholders through sustainable business growth and a strengthening capital return program. That concludes my prepared remarks. We will now open the call to the questions. Operator, please continue.

Thank you. If you would like to ask a question, please press star then 1. If your question has already been addressed and you'd like to remove yourself from queue, please press star then two. Once again, that is star then one if you have a question. Today's first question comes from Alex Yee with UBS. Oh, and I do apologize. I did want to mention that for the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, we ask that you please kindly repeat your question in English. And once again, our first question today comes from Alex Yee with UBS. Please go ahead.

Good morning, management. So, thanks for taking my question. So, my first question is on China business. So, we have seen your loan volume was up by 7% QQ. So, the growth has rebounded from 1% QQ last quarter. So, I'm wondering what drove the loan volume pickup during the quarter. Is that an industry-wide trend? Also, going into Q4, have you seen any sort of pickup in credit demand and loan application in October and November? And secondly, it's on your international business. So after the price ceiling adjustment this year, do you expect a further decline into next year? And then also, we also see this continued, you know, investment in South American and other expenses. So I'm wondering, when do we expect to see, you know, the Indonesian business to start generating more meaningful profits? Thank you.

Let me answer your two questions. The first question is about our domestic Q3 and Q4 trading situation. Since the second half of last year, the industry has indeed experienced some periodic fluctuations, and the entire scale of the industry has also shrunk. We achieved more than 4% growth in the first three seasons of domestic business trading with relatively stable risk performance. In the third quarter, the domestic transaction volume was RMB49.5 billion, which increased by 6.7%. Since the third quarter, we have looked at it from two aspects. One is customer demand. Compared to the second quarter, the customer demand has indeed returned to a certain state. It has also turned a trend that has remained down for the past half a year. We see that the customer demand has increased by about 12%. This is one aspect. On the other hand, Our strategy is to continue to invest in new customers. Our domestic business investment in new customers is at the forefront of the industry. Historically, our new customer sales ratio has remained at more than 10%. In the third quarter, our number of new customers increased by 14%, reaching 400,000. So maintaining high-quality new customer investment is a key factor in our growth. In addition, you may have noticed that at the end of September, a series of stimulus policies were released. From our own business perspective, we also see that the Japanese military's sales volume has clearly improved. There is an increase of more than 10% in the same ratio and return ratio, and the number of mistakes made by the Japanese military is also significantly improved. After the end of October, we see that the number of users is gradually dropping. It is about the same level as in September. But even so, compared to the first half of the year, there is still a relatively obvious improvement. Therefore, the demand return trend presented in the third quarter is expected to continue in the fourth quarter. So, starting from the end of September, we are encouraged by this series of stimulus policies. we are more confident in the long-term development of domestic business. And as you all know, we have always insisted on continuing to invest in domestic business under the premise of maintaining high quality, whether it is customers or customer experience. We also believe that with the development of these policies, the effect should bring about greater value. Of course, the development and use of this policy must take time. We need to wait patiently.

Hello, Alex. Let me do the translation for Alexis. Since the second half of 2023, the industry has experienced some silica fluctuations, and the industry is facing the challenges of a size reduction. However, Finvolution with its steady risk performance has still managed to achieve a growth rate of above 4% in transaction volume for the first nine months of the year, with transaction volume in the third quarter reaching RMB 49.5 billion, up 6.7% sequentially. And during the third quarter, from two different perspectives, we have, number one, we have observed that customer applications have increased compared to the second quarter, reversing the trend of a continuous week applications during the first half. Customer application in the third quarter increased by 12% sequentially. And another view is that the continued investment in new customer acquisitions enable us to have a leading status in the industry. Historically, our percentage of new customers have constantly been above 10%. And during the third quarter, this percentage further grew to 14%, reaching 400,000 new borrowers. Investment in high-quality borrowers is critical for us to achieve continued growth. I believe you guys have also noticed the stimulus package announced in late September. We have observed that the daily transaction volume has shown some improvement along with an increase of around 10% in application rates. And entering into late October, customer application has gradually slowed down and returned to the September levels, but still it has shown a significant improvement compared to the first half of the year. And we believe the trend exhibited in the third quarter is able to continue into the fourth quarter. The September end bolder than anticipated stimulus greatly motivated us. It provides us with greater confidence regarding the development of our China market. As you know, we have been maintaining high quality growth in our China market and through continued investment in areas such as customer acquisitions and user experience. We believe the impact of such investment will be multiplied as the stimulus package gradually materialize. And during this period, we all should have some patience.

The second is about our business in Indonesia. This year, we experienced a process of down payment, from the 1,400 Japanese yen to the 1,300 Japanese yen. You may have noticed that it took us about five months to complete some adjustments in terms of operation related to the entire pricing adjustment. Whether it is from the customer group model or the risk aspect, we actually got a very good optimization. and take rate went back to the level before the fall. And after the adjustment, we recovered growth in three seasons, and the turnover rate reached 10%. So we have also proved many times that the adjustment of the price has the corresponding ability to respond. We have also prepared a better accumulation of customers. and can quickly maintain a stable profit level by adjusting the population by reducing the cost. From the perspective of next year, we do not have any further notice. Now it is still based on the price of the first three weeks. In the fourth quarter, there may be some further clear information coming out. But anyway, we will prepare accordingly. Okay, Alex, let me do the translation for this question as well. In 2024, we have been through a price reduction process from 0.4% to 0.3% on a daily basis.

We have completed the transition to better quality borrowers and upgrade our credit risk assessment models in nearly five months. Transaction volume has since resumed growth and up by 10% sequentially. Throughout these several times of price reduction, we have accumulated sufficient experience in handling interest rate reduction. Currently, we didn't receive any notifications for further price decline. we are still operating at the current level of 0.3%, although there might be further information in the fourth quarter. And under a stable pricing environment, we believe we are able to contribute more meaningful profits for this Indonesia business, for the cash loan business.

Thank you. And our next question today comes from Cindy Wong with China Renaissance. Please go ahead.

Okay, thank you for the opportunity to ask this question. I have two questions. The first question is to ask about the loan cost. Because as the manager said, it has dropped 190 bps since this year. How much space do you think the fourth quarter can improve? The second question is to ask about overseas. Because overseas, the number of new loans has been faster than domestic for two consecutive weeks. I will quickly translate my question. Thanks for taking my question. I have two questions here. First one is the funding cost has been lower 190 pips this year. Do you think is there any room to improve in fourth quarter? And second question is, The number of the new borrowers in the international market has surpassed China for the second consecutive quarter. So can you talk about your Indonesia and Philippines customer acquisition strategy and customer acquisition cost? And how would that impact your sales and marketing expenses? Thank you.

Cindy, thank you for your question. Let me answer the first question first, and then I'll ask Lisa to answer the second question. Yes, we can see that the domestic Z-cost has maintained a very obvious trend of optimization and decline in the first nine seasons of this year. We also achieved a very significant decline in the whole year, which actually represents the confidence and recognition of the entire market for our quality. Hello Cindy, let me do the translation for Alexis.

I believe you guys have seen the funding cost in China has improved a lot since the beginning of the year, reflecting the market recognition in our technologies and asset quality. We believe there is still room for improvement in the fourth quarter. However, the improvement rates might be smaller compared to the remaining of the year.

Cindy, hello. I would like to answer your question about the development of business in Indonesia and the Philippines. I would like to share my thoughts on Indonesia, the Philippines, and other overseas countries in the future. About Indonesia, Alexis just introduced that we spent five months in the first half of this year to do the transformation of the population. Then we entered the overall growth strategy of the next stage of the third quarter. I will not talk about this part. China China China China China The local financial institutions of the seven countries have established cooperation. The source of funding for the loan has been provided by the local financial institutions. These include CBank, OCBC, Bank of Jaguar, Bank of Permanent, and many other financial institutions that continue to cooperate with us. On the other hand, going back to what you just mentioned, the development of the goods. In the third quarter, we also completed the multi-billion financial license in Indonesia. to more than 80% of the shares. On the other hand, it also represents the local supervision and recognition of the development of Xinyi or Adakami in Indonesia. In addition, it also establishes some future development foundations for us in a broader context and traffic cooperation. We have established long-term cooperation with some well-known local mobile phone brands and retail channels. Then our next step will be to provide more financial services to more 3C consumers. In addition, I would like to mention that in the past, we have seen a significant growth in the number of customers. We have seen a significant growth in the number of customers. We have seen a significant growth in the number of customers. We have seen a significant growth in the number of customers. We have seen a significant growth in the number of customers. We have seen a significant growth in the number of customers. Hello, Cindy, let me do the translation.

As mentioned by Alexis, we have spent the first five months to transit to better quality borrowers in Indonesia and have since resumed growth in the third quarter. And along this process, we have been expanding our base of local funding institutions and now we have been working with seven different partners such as CBank, OCBC, Jago, among others. And all our loans facilitated in Indonesia are facilitated by these local players. We have also acquired a multi-finance license validating the recognition and trust from local regulators. We have also established co-operations with renowned local partners such as OPPO and Wood. And you have also noticed that our customer growth has been very robust in a both year-over-year and Q-over-Q growth. And take rate is also stable and like Alexis mentioned, there will be much more meaningful profits in 2025.

Next, I would like to introduce the situation in the Philippines. In the past, the development of the global economy in the Philippines has been quite rapid. We have also achieved good performance in business. In addition to performance in business, we have established cooperation with C-Bank, Union Bank, and Maya Bank, which are the leading financial institutions in the country. Currently, we have more than 60% of the company's capital. In addition, in terms of customers, in addition to the online information flow of our online business, we have also established a deep cooperation with Tiktok Shop to provide convenient online analysis and payment solutions for these users. Currently, the flow of Tiktok Shop has reached nearly 20% in the Philippines. We also expect to contribute further customers and transactions next year. In terms of the overall results of the Philippine business, as we mentioned earlier, we think it is a very above-average performance, whether it is from the growth of goods or from the growth of trading volume. Basically, the same ratio has achieved a very large proportion of growth. Hello Cindy, let me do the translation.

The Philippines macro is robust and we have achieved great operational results. For example, we have established strong partnerships with local financial institutions as well, such as CBank and Maya Bank. And today, about 60% of our loans are being facilitated through local financial institutions. In addition, we have established strong cooperations with local partners such as TikTok Shop. And today, around 20% of our transaction volume is from them, and we expect it to grow further in 2025. The business operations performance in Philippines is above our expectation, with strong growth both in year-over-year and Q-over-Q comparisons. And also, we expect Philippines operations to contribute profits in 2025.

Next, I would like to introduce some of the developments in overseas countries. We entered the Indian market in 2018. We have about seven years of development time. We are now in the two markets of Indonesia and the Philippines. Are in the top three positions in the market. We have mentioned earlier that our revenue ratio is close to 20% of the entire group's revenue. At the same time, while our business in Indonesia and the Philippines is growing at a high rate, we see that business indicators, risk indicators, and financial indicators are all in a relatively healthy trend. So, I think the development of Xinye in Indonesia and the Philippines in the past has proven the potential of Xinye's internationalization and future development. Next, We will expand more overseas markets. We have also carried out some reserves and layout in different countries. We have further news to share with you. In overseas markets, our basic strategy will be to refer to the past development of Indonesia and the Philippines. We will have a few core strategies. The first is that we will rely on cash loan business to maintain a healthy development. with the development of local policies and markets. We will continue to support the people and help with the long-term development of the business layout. In addition, we will also carry out strategic cooperation based on the flow of scenarios and local financial institutions. Based on these strategies, we hope that in every market we enter, we can all become the leading players in the local market. Finally, our goal is that by 2030, Cindy, let me do the translation for this one as well.

Since entering the Indonesian market in 2018, we have been doing international business for seven years. As you can see, along all these years, our operational metrics such as risk, customer acquisition has all been improving. Currently, the revenue contributions for international operations has reached around 20%. We have also been proactively planning and deploying resources into more new countries and will share more when there is more concrete news. Some of the ideas is that when we enter into a new country we will focus on the cash loan first and then adapt to local regulations and eventually upgrade to better borrowers and secondly we will then adapt into loans with consumption scenarios and by 2030 we have a target of achieving 50% of our revenue from international business and provide more borrowers with better services.

Thank you. And our next question today comes from Yada Li with CICC. Please go ahead. Hello, Mr. Guo.

Thank you very much for giving me the opportunity to ask this question. Today, I would like to ask Mr. Guo about some of the prospects for the return of shares in 2025. How will the company balance its business growth and return in the future? Thank you very much. Then I'll do the translation. Hello, management. Thank you for taking my questions. The question is regarding the shareholders' return. Do you expect to deliver more value to the shareholders in 2025? And how do companies balance long-term growth and the total shareholders' return? That's all. Thank you.

Thank you, Yao Da. Yes, we have always paid great attention to the long-term document report of shareholders. On the one hand, through the continuous fast development of business, we can create value for shareholders. On the other hand, we will also take the lead in the market and give shareholders a report on the return on the fund. From 2018 to now, we have been doing the return on the fund for six consecutive years, which is the earliest in the industry. In six years, we have accumulated a report of $6.8 billion, which accounts for about 43% of our market value. In the third quarter, our total return amount was more than $24 million, which increased by 24% compared to last year. The total return amount of the previous nine months was $8,100 million, which increased by 23% compared to the same period last year. By the end of October, we have used more than 75% of the entire return plan. So this is what we are doing now. At the same time, you can see that in terms of growth, whether it is overseas, the second growth curve, or domestic, we are all maintaining a high-quality growth. So in the future, we will continue to adopt this concept. This high-quality business growth is the core to give shareholders a sustainable source of return. At the same time, we will adhere to a leading capital return strategy. In terms of prosperity, we are confident and able to maintain our record and continue to bring stability and growth to our shareholders.

Hello, Yada. Let me do the translation. The company has prioritized the long-term return of shareholder value. On one hand, we are creating value through rapid sustainable growth of our business. On the other hand, we have established a leading capital return program consisting of share repurchases and dividends. And since 2018, we have launched our dividend and repurchase program for six consecutive years, the earliest in the industries. And during this period, we have cumulatively returned $680 million to our shareholders, which is around 43% of our market cap. And during the third quarter, we have deployed US dollars $24.3 million for share repurchases up 24% year over year. And for the first nine months of the year, we have cumulatively repurchased, deployed $81 million, up 23% from the same period last year. And we have already utilized 75% of our third share repurchase program by the end of October. Also, returning value to shareholders through high-quality growth in both international markets and China markets. Our principle is that we will maintain high-quality growth And also, we are confident of distributing dividends at a stable growth rate for our shareholders.

Thank you. As there are no further questions, I'd now like to turn the conference back over to the company for closing remarks.

Hello, thank you all for joining our earnings conference call today. If you have any further questions, please feel free to contact our investor relations team. Thank you all. Have a nice day.

Thank you. This concludes this conference call. You may now disconnect your line and have a wonderful day.