FinVolution Group

conference call is being recorded. I will now turn the call over to your host, Yam Cheng, head of capital markets for the company. Yam, please go ahead.

Thank you, Wilco. Hello, everyone. Welcome to our 2025 first quarter earnings conference call. The company's two sales were issued via Newswire services earlier today and are posted online. You can download the earnings release and sign up for the company's email alerts by visiting the IR section of our website at ir.finvgroup.com. Mr. Tehcheng Lee, our Chief Executive Officer, and Mr. Jia Yuanxu, our Chief Financial Officer, will start the call with the prepared remarks and conclude with a Q&A section. 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 U.S. 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 involved inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties are included in the company's 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 posted a presentation on our IR website, providing details of our results for the quarter. Now, I will turn the call over to our CEO, Mr. Tiecheng Li. Please go ahead. Thanks, Yan.

Hello, everyone, and thank you for joining our news call. This is Tiecheng Li. CEO of Finvolution Group. We are happy to speak with you today. We are pleased to report that Finvolution delivered strong financial and operational results in the first quarter of 2025, through effective execution of our local excellence global outlook growth strategy. While navigating the expected seasonal softness in the sector, we achieved 10% year-over-year revenue growth fueled by our expanding take rate in China and surging international demand. International transaction volume grew robustly, up 36% year over year, complementing China's steady 7% growth. These successes draw a record-breaking quarterly net profit of 738 million RMB. The height since our transition to a loan facilitation model in 2019. This represented increases of 39% year-over-year and 8% quarter-over-quarter, a testament to our operational excellence. While we are mindful of ongoing microeconomic uncertainties, such as global trade tensions, property sector softening, and evolving regulations in China's consumer finance sector. We maintain a cautiously optimistic outlook. This confidence stems from two fundamental strengths in our business model. First, our proven resilience. Since our IPO in November 2017, we have successfully navigated multiple challenges, including our transition to an institutional funding model Indonesia's regulatory change and the COVID pandemic. Notably, we have delivered consistent year-over-year growth in both transaction volume and revenue for every single quarter since 2021. This track record demonstrates our ability to adapt to regulatory changes and respond to market dynamics with agility and balanced risk management with sustainable growth. Second, our strategic diversification initiatives in international markets continue to mitigate the impact of single country risk. Since entering Indonesia in 2018 and the Philippines in 2020, we have systematically built a broad-crate tech business designed to reduce Geographic concentration risk. Our international business generated a total transaction volume of 3 billion RMB in the fourth quarter and 36% year-over-year increase. This is outstanding loan balance growing 46% to 1.9 billion RMB. Our international business contributes 20.4% of total net revenue in the first quarter. up from 18.8% in the same period last year. We are on track to achieve our strategic goal of having international business contribute 50% of the group's total revenue by 2030. Our customer base remains the cornerstone of our long-term growth. In Q1 2025, we maintained strong momentum in borrower acquisition across all markets. onboarding 1.2 million new borrowers, up 62% year-over-year. This marked our third consecutive quarter, exceeding 1 million new borrowers, and assuring the effectiveness of our AI-powered marketing strategy and diversified user acquisition channels. In China, we added 512,000 new borrowers, up 37% year-over-year, in our international markets. We attracted 652,000 new borrowers, up 90% year-over-year. This marks the fourth consecutive quarter where international acquisitions have exceeded those in China. We expect this trend to continue thanks to the rising penetration in online lending as well as our strategic cooperation with the lending e-commerce and e-wallet platforms. to acquire borrowers in international markets. Our technology initiatives continue to improve efficiency across our operations. We are exploring the use of large-language models in risk assessment, leveraging their diverse capabilities to automatically extract and analyze and derive insights from unstructured data in consumer credit reports. For instance, The frequency with which a borrower changes a residential address is unstructured. Contextual detail that can provide valuable insight into the stability of borrower's work and living conditions. Large long-frame models can automatically capture this type of contextual data and convert it into meaningful, structured data that can be integrated into our existing risk assessment model. to more comprehensively evaluate users' probability of default. In our recent A-B testing, our model achieved observable, statistically significant improvements, indicating enhanced risk assessment effectiveness. We've also made substantial progress in automation through our virtual representative program, By integrating large-language model, we will upgrade our natural language processing system with intelligent virtual agents that can handle customers' acquisition and compliance workflow. Looking ahead, we plan to expand their role across additional business functions to further boost operational efficiency. Before I wrap up, a brief update on our ESG efforts. Our commitment to sustainable finance continues to deliver meaningful impact. In Q1, 2025, we facilitated 15 billion RMB in financing for 442,000 small business owners, up 15 and 10% respectively. These small business loans represent 30% of our China transaction volume, demonstrating our ongoing support for the backbone of China's economy. We further solidified our position as an industry thought leader by serving as a core contributor to the China Finance Consumer Rights Protection Blue Book, a key industry publication developed in a partnership with the National Internet Financial Association of China. With its release in March, we helped shape best practice in consumer protection and financial literacy nationwide. In conclusion, our strong first quarter performance reflects excellent execution of our effective local excellent global outlook strategy. Looking forward, we are well positioned to capitalize on emerging opportunities while maintaining the agility required to navigate the evolving landscape. Our diversified footprint technological leadership, and commitment to sustainable growth position us well to continue creating value for all stakeholders. With that, I will now turn the call over to our CFO, Jiao-Yuan Xu, who will discuss our operational and financial results.