FinVolution Group

Hello, ladies and gentlemen. Thank you for participating in the third quarter 2025 earnings conference call for Finvolution Group. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be an opportunity to ask questions. Today's 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.

Okay, thank you. Before I start, thank you everyone for dialing in. I think the line today could be a bit choppy, so in case we get disconnected, we'll dial back in. So bear with us. Okay, so welcome to the third quarter 2025 earnings conference call. The companies we saw were issued via newswire services earlier today and are posted online. You can download the earning release and sign up for the company's email alerts by visiting the IR section of our website. Mr. Tie Zhenli, our CEO, and Mr. Jia Yuanxu, our CFO, will start the call with their 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 US Private Securities Delegation 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 US SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Finally, we have posted a slide presentation on our IR websites, providing details of our results for the quarter. I will now turn over the call to our CEO, Mr. Ketan Lee. Ketan, please go ahead.

Thank you. Hello, everyone. Welcome to our earnings call. In the third quarter of 2025, against a dynamic regulatory backdrop in China, we delivered another resilient result driven by robust growth in our international business. Total revenue grew 6.4% year over year to 3.5 billion RMB and net profit came in at 641 million RMB, up 2.7% year over year. Our China business demonstrated stable revenue. Meanwhile, our international business continued to shine. Transaction volume was up 33% year-over-year, and revenue rose in line with volume up 37% year-over-year. Our international segment continued to be an effective natural hedge to our China business, representing a record 25% of total revenue this quarter, comparing to 19% a year earlier. They made meaningful progress in our international expansion. Our borrower base now stands at a cumulative 10 million, with new borrowers up 18% sequentially in the third quarter, reaching 1.3 million. Notably, our international new borrower count has exceeded China's for six straight quarters. In Indonesia, growth accelerated following the stable interest rates policy announced by the OGK in July, 2025. We also succeeded in upgrading customer's quality, which improved risk metrics and take rate. In the Philippines, we boosted transaction volume by 86% year over year to 1.6 billion RMB. despite typhoon-related seasonal softness. Turning to China regulatory landscape, a new consumer finance regulation framework took effect on October 1, 2025. As expected, we saw transitional effects across the industry in the third quarter. Our response was proactive and disciplined. We tightened credit standards to keep delinquency in check managed loan growth and maintained close communication with our funding partners to ensure stable funding supply. Our funding costs improved slightly as a result. We anticipate that full implementation of these regulations in the first quarter could create short-term uncertainties over volume, revenue, and risk metrics.