FinVolution Group (FINV) 2023 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for participating in the fourth-quarter and full-year 2023 earnings conference call for FinVolution Group. (Operator Instructions) Today's conference call is being recorded.

女士們、先生們，大家好。感謝您參加 FinVolution Group 第四季和 2023 年全年財報電話會議。（操作員指示）今天的電話會議正在錄音。

I will now turn the call over to your host, Jimmy Tan, Head of Investor Relations for the company. Jimmy, please go ahead.

我現在會把電話轉給主持人、公司投資人關係主管 Jimmy Tan。吉米，請繼續。

Hello, everyone, and welcome to our fourth-quarter and full-year 2023 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 IR section of our website at ir.finvgroup.com.

大家好，歡迎參加我們的 2023 年第四季和全年財報電話會議。該公司業績今天稍早透過新聞專線服務發布並發佈在網路上。您可以造訪我們網站 ir.finvgroup.com 的 IR 部分，下載收益報告並註冊公司電子郵件提醒。

Mr. Tiezheng Li, our Chief Executive Officer; and Mr. Jiayuan 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.

李鐵錚先生，我們的執行長；我們的財務長徐嘉源先生將以準備好的演講開始電話會議，並以問答環節結束。在本次電話會議中，我們將參考多項非公認會計準則財務指標來審查和評估我們的營運績效。

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 with GAAP measures, please refer to our earnings press release.

這些非公認會計原則財務指標不應被孤立考慮，也不能取代根據美國公認會計原則準備和提交的財務資訊。有關這些非公認會計準則衡量標準以及與公認會計準則衡量標準的調節的信息，請參閱我們的收益新聞稿。

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 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.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，公司業績可能與今天表達的觀點有重大差異。

Further information regarding these and other risks and uncertainties are included in the company filings with the US Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Finally, we post a slide presentation on our IR website, providing details of our results for the quarter.

有關這些以及其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。最後，我們在 IR 網站上發布幻燈片演示，提供本季業績的詳細資訊。

I will now turn the call over to our CEO, Mr. Tiezheng Li. Please go ahead, sir.

我現在將電話轉給我們的執行長李鐵錚先生。請繼續，先生。

Thank you, Jimmy. Hello, everyone, and thank you for joining our earnings call. (spoken in Chinese) Tiezheng Li, CEO of FinVolution Group. We are happy to speak with you today.

謝謝你，吉米。大家好，感謝您參加我們的財報電話會議。（中文） 李鐵錚，FinVolution集團執行長。我們很高興今天與您交談。

When I became CEO one year ago, FinVolution set a clear objective: become a leader in the fintech industry, providing inclusive financial solutions for unserved borrowers and small business owners. In 2023, we advanced toward that goal, with continued strong execution of our local focus, global outlook strategy, adapting to the unique situations in different markets.

當我一年前成為執行長時，FinVolution 設定了一個明確的目標：成為金融科技業的領導者，為未獲得服務的借款人和小型企業主提供普惠金融解決方案。2023年，我們持續堅定執行立足本土、放眼全球的策略，適應不同市場的獨特情況，朝著這個目標前進。

I'm thrilled to report that we delivered exceptional progress on all fronts. Throughout the year, we maintained our robust momentum, with a progressive expansion in China while pursuing much faster growth internationally, where economic conditions were more favorable.

我很高興地報告，我們在各個方面都取得了非凡的進展。全年，我們保持強勁勢頭，在中國逐步擴張，同時在經濟條件更有利的國際上追求更快的成長。

We have achieved leadership positions in both Indonesia and the Philippines, while also fortifying our success and high-quality growth in China as we proactively adjust our strategies to suit China's dynamic economy. Performance-wise, we continue to grow our business across the board despite evolving macroeconomic challenges.

我們在印尼和菲律賓取得了領先地位，同時也鞏固了我們在中國的成功和高品質成長，積極調整策略以適應中國充滿活力的經濟。在業績方面，儘管宏觀經濟挑戰不斷變化，我們仍繼續全面發展我們的業務。

The cumulative number of borrowers we served in China, Indonesia, and the Philippines has reached 30 million, growing at an accelerated pace with a net increase of around three million new borrowers year over year. For full-year 2023, our total transaction volume reached RMB194 billion, and our outstanding loan balance reached RMB67 billion, representing year-over-year increases of 11% and 4%, respectively.

我們在中國、印尼、菲律賓累計服務的借款人數已達3,000萬，且成長加快，較去年同期淨增約300萬新借款人。2023年全年，我們的交易總額達到人民幣1,940億元，貸款餘額達到人民幣670億元，年比分別增加11%和4%。

Net revenue for the full-year 2023 reached RMB12.5 billion, up 13% year over year. Our international business grew exceptionally well in 2023, propelled by our effective global outlook strategy of pursuing rapid growth in overseas markets. International transaction volume for 2023 soared to RMB7.9 billion, and outstanding loan balance rose to RMB1.3 billion, up 85% and 58%, respectively, compared to the prior year.

2023年全年淨收入達人民幣125億元，年增13%。在我們追求海外市場快速成長的有效全球策略的推動下，2023年我們的國際業務成長異常強勁。2023年國際交易額飆升至人民幣79億元，未償還貸款餘額增加至人民幣13億元，較前一年分別成長85%及58%。

International market revenue increased to RMB2.1 billion, up 86% from full-year 2022. Over the past year, international revenue contributions to total revenue increased significantly, rising to 17% in 2023 from 10% in 2022.

國際市場收入增至人民幣21億元，較2022年全年增長86%。過去一年，國際收入佔總收入的貢獻大幅增加，從2022年的10%上升至2023年的17%。

Meanwhile, with our local focus strategy of pursuing high-quality growth in China, we continue to achieve progressive growth domestically. Transaction volume increased to RMB186 billion, while outstanding loan balance reached RMB66 billion, up 9% and 4%, respectively, compared to the prior year. Revenue from the China market in 2023 further expanded to RMB10.4 billion, up 4% compared to the prior year.

同時，我們以追求中國高品質成長的本地聚焦策略，持續實現國內漸進式成長。交易量增加至人民幣1,860億元，貸款餘額達人民幣660億元，較上年分別成長9%及4%。2023年中國市場收入進一步擴大至人民幣104億元，較上年成長4%。

Another notable improvement was funding cost, which improved by 30 bps on a quarterly basis and by around 100 bps year over year. Our stable borrowing rates, coupled with better-than-industry delinquency rates and enhanced operational efficiency, enabled us to sustainably deliver higher ROA compared to the industry.

另一個顯著的改善是融資成本，每季下降 30 個基點，較去年同期下降約 100 個基點。我們穩定的借款利率，加上優於行業的拖欠率和提高的營運效率，使我們能夠持續實現高於行業的資產回報率。

We also strengthened our commitment to small business owners, supported by a prudent approach during this fragile and sometimes, volatile recovery period. In 2023, we served over 811,000 small business owners and facilitated RMB47 billion of loans for them, up 80.5% compared with last year and representing 25% of total transaction volume in China.

我們也加強了對小企業主的承諾，並在這個脆弱且有時不穩定的復甦時期採取審慎做法。2023年，我們服務了超過81.1萬名小企業主，為他們提供了470億元人民幣的貸款，比去年增長80.5%，佔中國交易總額的25%。

FinVolution is a fintech frontrunner with profound expertise across an extensive industry footprint. Part of our commitment to shareholders is to continue propelling the company's sustainable development and industry-wide digital transformation through technology innovation. I'd like to share just a few of the pivotal technological advancements we made throughout the year.

FinVolution 是金融科技領跑者，在廣泛的行業足跡中擁有深厚的專業知識。我們對股東的承諾之一就是透過技術創新繼續推動公司的永續發展和全行業的數位轉型。我想分享我們在這一年中取得的一些關鍵技術進步。

We amplified our investment in technological R&D, driving high-quality growth, leveraging cutting-edge technology. We significantly improved and optimized our operational process across all markets in which we operate. This includes increased R&D investment of over RMB500 million in 2023 to strengthen different aspects of our technologies, such as the automatic speech recognition capabilities, greatly improving its grasp of Chinese dialects while boosting our chatbot's efficiency and accuracy.

我們加大科技研發投入，利用前沿科技推動高品質發展。我們顯著改善和優化了我們營運所在的所有市場的營運流程。其中包括在2023年增加超過5億元的研發投入，以加強我們的不同方面的技術，例如自動語音識別能力，大大提高其對中國方言的掌握，同時提高我們的聊天機器人的效率和準確性。

R&D is critical to our ongoing success, and we continue to invest in our tech and our people. As of December 31, 2023, we proudly employed a dedicated R&D team of around 700 skilled professionals and have built a comprehensive IP portfolio that comprises 239 registered software copyrights and a successful filing of 179 patent applications, including 53 invention patents already granted.

研發對於我們持續成功至關重要，我們將繼續投資於我們的技術和員工。截至2023年12月31日，我們擁有一支由約700名熟練專業人員組成的專業研發團隊，並建立了全面的智慧財產權組合，其中包括239項註冊軟體版權和成功提交的179項專利申請，其中包括已授予的53項發明專利。

Each of our R&D accomplishments enhanced our offering to consumers and set new benchmarks for the financial services industry, supporting FinVolution's growth and industry-wide progress. In recognition of these efforts, the Shanghai Municipal Commission of Economy and Information (sic - "Informatization") recently honored FinVolution on its Shanghai 2023 Double 100 list for software and IT service excellence.

我們的每項研發成果都增強了我們為消費者提供的服務，並為金融服務業樹立了新的基準，支持 FinVolution 的成長和全行業的進步。為了表彰這些努力，上海市經濟和資訊化委員會（下稱「資訊化」）最近將 FinVolution 列入其上海 2023 年軟體和 IT 服務卓越雙百強名單。

We earned prestigious rankings on both lists, securing the 18th and the 26th positions, respectively. These commendations recognized our contributions to technology innovation and the advancement of the industry.

我們在這兩個榜單上都獲得了享有盛譽的排名，分別排名第 18 和第 26 位。這些表彰認可了我們對技術創新和產業進步的貢獻。

Last but not least, ESG remains a top priority at FinVolution. We diligently enhanced our integrated ESG program throughout 2023, with a focus on inclusion and giving back to society. For example, we have accumulated -- offered RMB120 million of interest-free loans for eligible small business owners to help turn their dreams into reality.

最後但並非最不重要的一點是，ESG 仍然是 FinVolution 的首要任務。2023 年，我們致力於加強綜合 ESG 計劃，並專注於包容性和回饋社會。例如，我們累計為符合條件的小企業主提供了1.2億元人民幣的無息貸款，幫助他們實現夢想。

Our commitment and efforts have also been recognized by several renowned independent rating agencies with above-average industry rating. We celebrate FinVolution's 16th anniversary in 2023, a milestone that affords us a glimpse of our future prospects as an enterprise grounded in sustained long-term growth.

我們的承諾和努力也得到了多家知名獨立評級機構的認可，評級高於行業平均。2023 年，我們慶祝 FinVolution 成立 16 週年，這一里程碑讓我們看到了作為一家立足於持續長期成長的企業的未來前景。

Over the past 16 years, our business model and strategy have been validated by success in the face of multiple challenges, such as the P2P transition, shift towards better-quality borrowers, and international expansion amid the pandemic. As an independent platform with limited resources, we are proud to have expanded and flourished in all markets in which we operate.

16年來，我們的業務模式和策略在面對P2P轉型、向優質借款人轉型、疫情下的國際擴張等多重挑戰時取得了成功。作為一個資源有限的獨立平台，我們很自豪能夠在我們開展業務的所有市場中實現擴張和繁榮。

Going forward, we will remain committed to serving borrowers in our existing markets, while increasing the pace of our international expansion by acquiring more licenses and expanding into additional countries and regions to deliver innovative financial services to more borrowers. Our local focus, global outlook strategy will continue to guide us and drive our healthy and sustainable development as we embark on 2024.

展望未來，我們將繼續致力於為現有市場的借款人提供服務，同時透過獲得更多牌照並擴展到更多國家和地區，加快國際擴張步伐，為更多藉款人提供創新金融服務。踏上2024年，以本土為基礎、放眼全球的策略將持續指引並推動我們健康永續發展。

By leveraging our peerless technologies and operational advantages, we are confident to replicate our domestic and international success in new markets, unlocking value and making the company a world-class fintech enterprise while consistently returning value to our shareholders.

憑藉我們無與倫比的技術和營運優勢，我們有信心在新市場中複製我們在國內外的成功，釋放價值，使公司成為世界一流的金融科技企業，同時持續為股東回報價值。

With that, I will now turn the call over to our CFO, Jiayuan Xu, who will discuss our operational and financial results.

現在，我將把電話轉給我們的財務長徐嘉媛，他將討論我們的營運和財務表現。

Thank you, Li, and hello, everyone. Welcome to our fourth-quarter and full-year 2023 earnings call. Let's go through our key results for the fourth quarter. To be mindful of the length of our earnings call today, I encourage listeners to refer to our fourth-quarter earnings press release for further details.

謝謝李老師，大家好。歡迎參加我們的 2023 年第四季和全年財報電話會議。讓我們來看看第四季的主要業績。為了注意我們今天財報電話會議的長度，我鼓勵聽眾參考我們的第四季財報新聞稿以了解更多詳細資訊。

Despite GDP growth of over 5% in 2023, China's overall economic environment continues to evolve. We leveraged our various strengths to navigate the turbulence and conclude 2023 on a solid note. Our domestic transaction volume reached RMB50 billion for the fourth quarter, up 6% year over year and 2% sequentially, while outstanding loan balance grew to RMB66 billion, up 4% year over year and 2% sequentially.

儘管2023年GDP成長將超過5%，但中國的整體經濟環境仍在不斷變化。我們利用各種優勢來應對動盪，為 2023 年畫下堅實的句點。第四季，我們的境內交易金額達到人民幣500億元，較去年同期成長6%，較上季成長2%；貸款餘額增至人民幣660億元，較去年同期成長4%，較上季成長2%。

Achieving growth in both metrics amid such a soft consumer environment is a testament to our business resilience, as well as our outstanding technology innovation and operational excellence. We have observed several notable improvements as we move through the first quarter of 2024.

在如此疲軟的消費環境中實現這兩項指標的成長證明了我們的業務彈性，以及我們出色的技術創新和卓越營運。隨著 2024 年第一季的到來，我們觀察到了一些顯著的改進。

During the recent Lunar New Year, consumption activities picked up rapidly with 474 million tourist trips nationwide, up 19% from the comparable period in 2019. Total tourism spending also climbed 8% to RMB633 billion from the comparable period in 2019, with air and train travel surpassing 2019 levels by 15% and 36%, respectively, reaching new record highs.

最近的農曆新年期間，消費活動迅速回升，全國旅遊人數達到4.74億人次，比2019年同期增加19%。旅遊總支出也較2019年同期成長8%，達到人民幣6,330億元，其中航空和火車旅行分別超過2019年水準15%和36%，創歷史新高。

Box office ticket sales also rebounded and reached more than RMB8 billion, setting a new record for the holiday period. Furthermore, several macro metrics exhibited varying degrees of improvement. For example, total social financing in January increased to RMB6,500 billion, up 9.5% year over year.

票房收入也隨之回升，突破80億元，創下節慶期間新紀錄。此外，一些宏觀指標也呈現出不同程度的改善。例如，1月社會融資總額6.5兆元，年增9.5%。

Total retail consumption in December was increased to RMB4,355 billion, up 7.4% year over year. Fabric manufacturing and service PMI index also improved slightly to 49.1 points and 15.1 points. We believe these signs reflect the dawn of a new era, wherein consumer spending trends are shifting away from large-ticket items, such as automobiles and property, to small-ticket items like travel-related expenditures and other consumption activities.

12月份社會消費品零售總額43,550億元，年增7.4%。布料製造業和服務業PMI指數也小幅改善至49.1點和15.1點。我們認為，這些跡象反映了一個新時代的到來，消費者的支出趨勢正在從汽車和房地產等大件商品轉向旅行相關支出和其他消費活動等小型商品。

Amid these complex dynamics, we drove a modest yet encouraging recovery in our consumer credit demand through our ongoing refinement of borrower demographics and quality, with the number of new borrower applications increasing by between 3% to 5%. Cumulatively, we have served over 25 million borrowers in China, and the number of unique borrowers for the fourth quarter was 2.1 million.

在這些複雜的動態中，我們透過不斷改善借款人的人口結構和質量，推動了消費信貸需求的溫和但令人鼓舞的復甦，新借款人申請的數量增加了 3% 至 5%。我們已累計為中國超過2500萬借款人提供服務，第四季的獨立借款人數為210萬。

In addition, we further enhanced our credit risk assessment and fraud detection technologies during the quarter, which empowered us to navigate the macro headwinds and stabilize our asset quality. Our day-one delinquency rate improved to 5.3% in December and further improved to 5.2% in February.

此外，本季我們進一步加強了信用風險評估和詐欺偵測技術，這使我們能夠應對宏觀逆風並穩定資產品質。12 月份，我們的第一天拖欠率改善至 5.3%，2 月份進一步改善至 5.2%。

We expect our vintage delinquency for the most recent three months to be 2.5%, demonstrating our business resilience. Boosted by the deployment of our advanced speech recognition technologies as well as the AI-powered chatbots we mentioned earlier, our loan collection recovery rate for the recent three months remained healthy at 87%.

我們預計最近三個月的拖欠率為 2.5%，這顯示了我們的業務彈性。在部署我們先進的語音辨識技術以及我們之前提到的人工智慧聊天機器人的推動下，我們近三個月的貸款回收率保持在 87% 的健康水平。

In terms of our funding partners, as our reputation in the industry continued to rise, we have further diversified our funding resources. The cumulative number of our funding partners has expanded to 94 financial institutions as of the end of the fourth quarter, with funding costs improving by around 100 basis points year over year.

資金合作夥伴方面，隨著我們在業界的聲譽不斷提升，我們的資金來源進一步多元化。截至第四季末，累計融資合作夥伴已增至94家金融機構，融資成本年減約100個基點。

Moving on to our second growth driver, our international expansion, which continues to outperform our targets and expectations. We embarked on our global expansion in January 2018 and have been deeply investing in elevating FinVolution's visibility worldwide, overseas.

接下來是我們的第二個成長動力，即我們的國際擴張，它繼續超越我們的目標和預期。我們於 2018 年 1 月開始全球擴張，並一直大力投資提升 FinVolution 在全球和海外的知名度。

Indonesia, our first overseas market, continued to record macroeconomic growth. Its consumer confidence index remained high at 125 points in January. Full-year sales of the motorcycles, the most popular mode of transportation in Indonesia, surged by 19.4% to 6.2 million units year over year.

印尼作為我們的第一個海外市場，宏觀經濟持續保持成長。1月消費者信心指數仍維持在125點的高點。摩托車是印尼最受歡迎的交通工具，全年銷量年增 19.4% 至 620 萬輛。

Our second overseas market, the Philippines, also ended 2023 with positive macro data. The Philippines were among the fastest-growing economies in Asia, with fourth-quarter GDP growth of 5.6%. Manufacturing PMI was 51 points in February and has remained above 50 points since September.

我們的第二個海外市場菲律賓也以正面的宏觀數據結束了2023年。菲律賓是亞洲成長最快的經濟體之一，第四季GDP成長5.6%。2月製造業PMI為51點，9月以來維持在50點以上。

Cumulatively, we have served over 4.8 million borrowers in international markets as we continue to explore diversified consumer acquisition channels to attract new borrowers. The number of new borrowers for international markets increased by 20% year over year to 1.37 million. And the number of unique borrowers rose by 18% year over year to around 1.9 million in 2023.

我們不斷探索多元化的消費者獲取管道以吸引新的借款人，累計已在國際市場上為超過 480 萬借款人提供服務。國際市場新增借款人數年增20%，達137萬戶。2023 年，獨立借款人數量年增 18%，達到 190 萬左右。

International transaction volume for the full-year 2023 rose by 85% year over year, reaching RMB7.9 billion. Transaction volume for the fourth quarter reached RMB2.25 billion, up 64% year over year. At the same time, our outstanding loan balance as of December 31, 2023, grew to RMB1.3 billion, up 58% year over year.

2023年全年國際交易額較去年同期成長85%，達到人民幣79億元。第四季交易金額達人民幣22.5億元，年增64%。同時，截至2023年12月31日，我們的未償還貸款餘額增加至人民幣13億元，較去年同期成長58%。

As we deepened our roots in Indonesia and fortified our reputation, the population of loans facilitated from local financial institutions in Indonesia increased to over 90% from 63% in the same period of 2022, reflecting our credit assessment model's effectiveness as well as deepening trust from local financial institutions.

隨著我們在印尼的根基不斷加深、聲譽不斷增強，印尼當地金融機構的貸款佔比由2022年同期的63%上升至90%以上，體現了我們的信用評估模型的有效性以及客戶對我們的信任不斷加深。

The Philippines has also demonstrated excellent growth. During 2023, the number of new borrowers in the Philippines grew by over 188%. This led to exponential growth in its transaction volume and outstanding loan balance, which surged by over 200% on a year-over-year basis, contributing around 20% of international transaction volume in the fourth quarter.

菲律賓也表現出了出色的成長。2023 年，菲律賓的新借款人數增加了 188% 以上。這導致其交易量和未償還貸款餘額呈指數級增長，較去年同期飆升超過200%，佔第四季國際交易量的20%左右。

Thanks to our proven record as a trusted lending partner, we have also secured institutional funding in the Philippines and also have a strong pipeline of future institutional partners in place. These accomplishments have boosted our confidence as well as our visibility as we emerge as one of the top players in the Philippines. In 2024, we expect our Philippines operation to maintain its robust high double-digit growth momentum.

憑藉我們作為值得信賴的貸款合作夥伴的良好記錄，我們還在菲律賓獲得了機構資金，並擁有強大的未來機構合作夥伴管道。這些成就增強了我們的信心和知名度，讓我們成為菲律賓的頂尖企業之一。2024年，我們預期菲律賓業務將保持強勁的兩位數成長動能。

International business revenue in the fourth quarter progressively increased to RMB602 million, up 53% year over year, and represented around 19% of the company's total revenue. From a full-year 2023 perspective, international revenue reached RMB2.1 billion, up 86% year over year, and representing 17% of the company's total revenue, marking a significant achievement in our international development.

第四季國際業務收入逐步成長至人民幣6.02億元，較去年同期成長53%，佔公司總營收的19%左右。從2023年全年來看，國際營收達到 21億元，年增86%，占公司總營收的17%，國際發展取得重大成果。

This success has readied us to amplify our international expansion efforts with strategic initiatives, such as refining borrower demographics, acquiring license, and venturing into new countries. The outstanding progress we have made in our overseas markets across multiple operational and financial metrics serves as a springboard for our ongoing expansion and development.

這項成功使我們做好了準備，透過策略性舉措擴大我們的國際擴張力度，例如優化借款人人口結構、獲得許可證以及進軍新國家。我們在海外市場在多個營運和財務指標上取得的突出進展，為我們持續擴張和發展奠定了基礎。

On a related note, we continue to build our international business presence and brand awareness on leading social media platforms through AIGC-driven upgrades to our creative advertising campaigns. As of the end of the fourth quarter, we had more than one million followers on Facebook. And our followers on TikTok grew at an accelerated pace to reach over 816,000, up more than 15% quarter over quarter. Social media will be a key means of reaching our target audience with our overseas marketing efforts as we enter new countries and debut innovative products.

與此相關的是，我們透過 AIGC 推動的創意廣告活動升級，繼續在領先的社交媒體平台上建立我們的國際業務影響力和品牌知名度。截至第四季末，我們在 Facebook 上擁有超過 100 萬粉絲。我們在 TikTok 上的粉絲數量加速增長，達到 816,000 多名，環比增長超過 15%。當我們進入新的國家並推出創新產品時，社群媒體將成為我們透過海外行銷努力接觸目標受眾的關鍵手段。

Now, turning to our financial metrics. Driven by strong execution of our local focus, global outlook strategy, net revenues for full-year 2023 increased to RMB12.5 billion, up 13% year over year, while net income increased to RMB2.38 billion, up 5% year over year. As of the fourth quarter, our leverage ratio, which is defined as the risk-bearing loans divided by shareholders' equity, remained stable at 4.1 times, reflecting opportunities for growth when the macroeconomy mobilize.

現在，轉向我們的財務指標。在大力執行在地化、放眼全球策略的推動下，2023年全年淨收入增至人民幣125億元，年增13%，淨利增至人民幣23.8億元，年增5% 。截至第四季度，我們的槓桿率（風險貸款除以股東權益）穩定在4.1倍，反映了宏觀經濟啟動時的成長機會。

Our strong balance sheet and liquidity position continued to enhance shareholders' confidence while providing us with optimal flexibility to execute our strategy. In particular, our cash position remains robust with over RMB7.9 billion of cash and short-term liquidity as of the end of December 2023, representing an increase of 12% year over year. We believe our current cash position is sufficient to support our business expansion while increasing our return of value to our shareholders.

我們強大的資產負債表和流動性狀況繼續增強股東的信心，同時為我們提供執行策略的最佳靈活性。特別是，我們的現金狀況依然強勁，截至2023年12月末，現金和短期流動性超過人民幣79億元，年增12%。我們相信，我們目前的現金狀況足以支持我們的業務擴張，同時增加我們對股東的價值回報。

Now, let me briefly update you on our capital return program. Since 2018, we have continuously returned value to our shareholders in the form of share repurchase and dividends. Recently, our Board of Directors approved our sixth annual dividend in the amount of USD0.237 per ADS, an increase of 10.2% year over year.

現在，讓我簡要介紹一下我們的資本返還計劃。自2018年以來，我們持續以股票回購、分紅等形式向股東回報價值。最近，我們的董事會批准了我們的第六次年度股息，每股美國存託憑證0.237美元，年增10.2%。

For full-year 2023, we returned a total amount of USD160 million to our shareholders, consisting of USD62 million in dividends and USD98 million through share repurchase, representing a capital return rate of around 49% of 2023 net income. As of December 31, 2023, the company has cumulatively returned USD605 million to our shareholders. These actions underscore our consistent commitment to enhancing shareholder value.

2023年全年，我們向股東總共返還1.6億美元，其中包括6,200萬美元股利和9,800萬美元股票回購，資本回報率約為2023年淨利的49%。截至2023年12月31日，公司已累計向股東返還6.05億美元。這些行動凸顯了我們對提高股東價值的一貫承諾。

Before I conclude my remarks, I would like to provide some additional color on our business outlook for 2024. Despite the evolving macro environment, our business continues to thrive and progress. We are gaining substantial momentum as we focus on advancing our international initiatives, preparing technological innovation, expanding our healthy consumer base, and optimizing our product profile.

在結束演講之前，我想對 2024 年的業務前景提供一些補充說明。儘管宏觀環境不斷變化，我們的業務仍持續蓬勃發展和進步。當我們專注於推進我們的國際計劃、準備技術創新、擴大我們的健康消費者基礎以及優化我們的產品結構時，我們正在獲得巨大的動力。

As a result, we expect our transaction volume in the China market in 2024 to be in the range of RMB195.7 billion to RMB205 billion, representing an increase of around 5% to 10% year over year. In addition, we expect international transaction volume in 2024 to be in the range of RMB9.4 billion to RMB11 billion, representing year-over-year growth of around 20% to 40%.

因此，我們預計2024年中國市場的交易額將在人民幣1,957億元至人民幣2,050億元之間，年增約5%至10%。此外，我們預計2024年國際交易額將在94億元至110億元之間，年增約20%至40%。

That concludes my prepared remarks. We will now open the call to the questions. Operator, please continue.

我準備好的發言就到此結束。我們現在開始提問。接線員，請繼續。

(Operator Instructions) Yada Li, CICC.

（操作員指示） 李亞達，中金公司。

(interpreted) Then I'll do the translation. Firstly, considering the current macro environment, I was wondering what adjustments have we done in the lending strategy, customer acquisition, and risk management? And with the help of these measures, how to view the asset quality going forward?

（口譯）那我來翻譯。首先，考慮到目前的宏觀環境，我想我們在貸款策略、獲客、風險管理等方面做了哪些調整？在這些措施的幫助下，如何看待未來的資產品質？

And secondly, for the international branches, what are the growth and profit outlooks for Indonesian and Philippine markets, respectively? That's all. Thank you.

其次，對於國際分支機構來說，印尼和菲律賓市場的成長和利潤前景分別如何？就這樣。謝謝。

(interpreted) Okay, Yada, let me do the translation. From observation and study, China's macroeconomy is still facing uncertainties but expects to have a gradual recovery. Around the third quarter last year, we have observed some negative impact on the industry, which results in asset fluctuations.

（翻譯）好的，雅達，我來翻譯。從觀察和研究來看，中國宏觀經濟仍面臨不確定性，但可望逐步復甦。去年三季左右，我們觀察到產業受到一些負面影響，導致資產波動。

We have been quick with our responses. For example, we have reduced customer acquisitions from lower-quality channels and stepped up our model updates from higher-quality channels, updating the models, tightening the approval rates and credit limit for borrowers, who are more prone to economy uncertainties, such as those with a higher level of debts.

我們的反應很快。例如，我們減少了低品質管道的獲客，並加強了高品質管道的模型更新，更新了模型，收緊了對那些更容易受到經濟不確定性影響的借款人的批准率和信用額度，例如具有較高的債務水平。

We have also closely monitored changes in our core metrics, such as day-one delinquency and loan collection recovery rates for the disbursed loans. And through the analysis of different borrower segments and tighter approval rates, we have ensured financial services for higher-quality borrowers, example those with lower debt levels, remain intact.

我們也密切監控核心指標的變化，例如第一天拖欠率和已發放貸款的貸款回收率。透過對不同借款人群體的分析和更嚴格的批准率，我們確保為高品質借款人（例如債務水平較低的借款人）提供完整的金融服務。

For post loans, I believe you are aware of the impact on loan collections due to the reductions of telephone lines. The impact on us is minimal due to our sufficient advanced preparations of telephone lines, which are able to satisfy the needs of our post-loan collection team. Although our loan collection recovery rates slightly declined from 89% to 87%, we are still leading ahead of the industry.

對於貸後，我相信您已經意識到由於電話線路的減少對貸款催收的影響。由於我們的電話線路提前準備充分，能夠滿足貸後催收團隊的需要，因此對我們的影響很小。儘管我們的貸款回收率略有下降，從 89% 下降到 87%，但我們仍然領先於該行業。

And with the implementation of these efforts, we have seen positive results in December. For recent three months, our day-one delinquency rate improved to 5.3% from 5.7% in the third quarter, and further improved to 5.25% in February, while loan collection recovery rate remained stable at 87%, with vintage delinquency returning to 2.5%.

隨著這些努力的落實，我們在12月份看到了正面的成果。近三個月來，我們的首日拖欠率從第三季的5.7%改善至5.3%，並於2月份進一步改善至5.25%，而貸款回收率穩定在87%，陳年拖欠率恢復至2.5 % 。

Our recovery should be ahead of the industry. And we are confident to maintain industry-leading asset quality, with continuous improvement going into 2024.

我們的復甦應該領先產業。我們有信心保持行業領先的資產質量，並在 2024 年持續改善。

Your question is on the whole international expansion, and we will break down the explanation into different countries. For example, Indonesia has a new price cap in 2024. Our Indonesia operations in the fourth quarter has been impacted by local regulation change.

你的問題是關於整個國際擴張的，我們會分解到不同的國家來解釋。例如，印尼於 2024 年設定了新的價格上限。我們第四季的印尼業務受到當地法規變化的影響。

And since January 1, 2024, all our new loans have met regulator requirements and fully compliance. The pricing adjustments means that our borrowers cohort model data and rules have to undergo a series of adjustments. Based on our past experience, we will need around six months to complete all these changes.

自2024年1月1日起，我們所有新增貸款均符合監管機構要求，完全符合規定。此次定價調整意味著我們的借款人隊列模型資料和規則要進行一系列的調整。根據我們過去的經驗，我們需要大約六個月的時間來完成所有這些改變。

And from the current outcome, these changes have been positive. Example, through adjusting our borrowers cohort, the risk metrics have improved by 20%, reducing the impact of rates reduction. And also, from a customer acquisition perspective, we have seen many small and medium platforms reducing their customer acquisition efforts, which led to an 8% decrease in our customer acquisition costs.

從目前的結果來看，這些變化是正面的。例如，透過調整我們的借款人群體，風險指標提高了 20%，減少了降息的影響。另外，從獲客角度來看，我們看到許多中小型平台減少了獲客力度，導致我們的獲客成本下降了8%。

And this further helps to reduce the impact of price reduction in Indonesia. And thus, in the first half of 2024, Indonesia operation focus will be on product adjustment and improving the quality instead of a rapid growth.

而這進一步有助於減輕印尼降價的影響。因此，2024年上半年，印尼經營重點將不再是快速成長，而是產品調整與品質提升。

And during the second half of 2024, we will re-evaluate our strategies based on macro situation. And in 2024, we expect Indonesia to achieve profitability. The profitability from the business view will be better compared to the financial view due to the rules of the accounting policies.

2024年下半年，我們將根據宏觀情勢重新評估我們的策略。我們預計印尼將在 2024 年實現盈利。由於會計政策的規定，業務角度的獲利能力會比財務角度更好。

In addition, we have also disclosed some additional data points for our Philippines operations. Over the past few years, Philippines operations have been developing very rapidly. And from current observation, Philippines country's economic and regulatory environment has been relatively stable.

此外，我們也揭露了菲律賓業務的一些額外數據點。過去幾年，菲律賓業務發展非常迅速。而且從目前觀察，菲律賓國家的經濟和監管環境一直比較穩定。

We will expect the rapid growth to continue into 2024, and we are currently number two in the segment of the market. We believe we can achieve our target of number one by the end of the year. Additionally, we expect that our Philippines operations can achieve profitability in the second half of the year under the relevant accounting rules.

我們預計快速成長將持續到 2024 年，目前我們在該細分市場中排名第二。我們相信我們可以在今年年底實現第一的目標。此外，我們預計菲律賓業務在相關會計規則下可在下半年獲利。

We have managed to achieve profitability in both Indonesia and Philippines. And going forward, we will consider to strengthen our investment in different types of licenses, diversify our operations, and enhance our brand image to further increase our competitive advantage.

我們在印尼和菲律賓都實現了盈利。展望未來，我們將考慮加強不同類型牌照的投資，多元化經營，提升品牌形象，以進一步增強競爭優勢。

We are also actively exploring new countries, and these countries are not limited to Southeast Asia. And we also consider other methods of expansion to speed up our international footprint.

我們也積極探索新的國家，而且這些國家不僅限於東南亞。我們也考慮其他擴張方法，以加快我們的國際足跡。

Okay. Thank you, Yada.

好的。謝謝你，雅達。

Thank you, Yada.

謝謝你，雅達。

(inaudible)

（聽不清楚）

Cindy Wang, China Renaissance.

王辛迪，中國文藝復興。

(interpreted) Thank you for taking my call, and I have two questions here. So the first question is related to the customer acquisition cost. Since you are aggressively on the international market expansion, so what is your CAC target this year?

（翻譯）謝謝您接聽我的電話，我有兩個問題。所以第一個問題與獲客成本有關。既然你們正在積極拓展國際市場，那麼你們今年的CAC目標是多少？

And the second is related to the Philippine market. The Philippine market grows very strong in 2023. Can you talk about the competitive landscape, and how do you achieve to be a first -- number-one market share position this year? And how will that contribute to the international market revenue in 2024? Thank you.

第二個與菲律賓市場有關。2023 年菲律賓市場成長非常強勁。您能談談競爭格局嗎？這對 2024 年國際市場收入有何貢獻？謝謝。

(interpreted) Cindy, let me do the translation. We have been operating in the Indonesian market for quite a period of time, in fact, six years. And we have a deep understanding of the market. Information continues to be the main method to acquire better-quality borrowers for us. Although the pricing cap has some impact on our operations, we have made adjustments to our models, and the results have been very positive.

（口譯）辛迪，讓我來翻譯。我們在印尼市場經營已經有一段時間了，事實上，已經有六年了。而且我們對市場有深刻的了解。資訊仍然是我們獲取更優質借款人的主要方法。雖然定價上限對我們的營運有一些影響，但我們對模型進行了調整，結果非常積極。

For example, when we have higher-quality borrowers, we are able to increase our loan -- our ticket size with longer loan tenure. And the fee rates further improve, with weaker competition. And we believe this trend will continue in 2024. And we will re-evaluate our customer acquisition strategies in the second half when the macro environment stabilizes.

例如，當我們擁有更高品質的借款人時，我們就能夠增加貸款——我們的貸款規模和貸款期限更長。費用率進一步提高，競爭減弱。我們相信這一趨勢將在 2024 年持續下去。當下半年宏觀環境穩定時，我們將重新評估我們的客戶獲取策略。

For the Philippines, it is in a much earlier stage compared to the Indonesian market. Over the past two years, our marketing efforts are much more proactive, and it has been pretty stable among the tops. And we believe this trend will continue into 2024.

對於菲律賓來說，與印尼市場相比，它還處於早期階段。這兩年，我們的行銷力道更加主動，一直穩居前列。我們相信這一趨勢將持續到 2024 年。

We entered the Philippine market in 2020, and this is our fourth year of operations. Philippines has a population of around 130 million, and our target customer base is around 40 million. To date, we have registered users of around five million, and our borrowers is around 740,000.

我們於2020年進入菲律賓市場，今年是我們營運的第四年。菲律賓人口約1.3億，我們的目標客群約4000萬。迄今為止，我們的註冊用戶約為 500 萬，借款人約為 74 萬。

There are currently over 100 players, and the largest players are from the US and local Philippines companies. We believe as a fintech company from China, our advantages are obvious. And we will continue to leverage on our advantages and duplicate our success in China and Indonesia in the Philippines market.

目前有超過100家參與者，其中最大的參與者來自美國和菲律賓本土公司。我們相信作為一家來自中國的金融科技公司，我們的優勢是顯而易見的。我們將繼續發揮優勢，在菲律賓市場複製中國和印尼的成功。

Around 20% of our transaction volume for the international market is coming from the Philippines in the fourth quarter. And we believe this proportion will continue to increase in 2024.

第四季我們國際市場交易量的約 20% 來自菲律賓。我們相信這一比例將在 2024 年繼續增加。

Okay. Thank you, Cindy.

好的。謝謝你，辛蒂。

Alex Ye, UBS.

亞歷克斯·葉，瑞銀。

(interpreted) I'll do the translation. First, on the Indonesian market, after the pricing adjustment starting this year, how do you expect the impact on revenue and earnings? And do you expect any further move from the regulators with regard to the timetable to further adjust the pricing cap? And how will we tackle the trend?

（口譯）我來翻譯。首先，在印尼市場，今年開始價格調整後，您預期對營收和獲利的影響如何？您預計監管層在進一步調整定價上限的時間表上是否會採取進一步行動？我們將如何因應這一趨勢？

And second, in terms of the total shareholders return, we know the company has also speeded up the pace of share repurchase this year, bringing the total payout ratio to 48.5%. So how should we expect a more sustainable payout ratio going forward? Thank you.

其次，從股東總回報來看，我們知道公司今年也加快了股票回購的步伐，總股息率達到了48.5%。那麼，我們該如何預期未來更永續的派息率呢？謝謝。

(interpreted) Hello, Alex. Let me do the translation. We have actually shared some Indonesia data earlier. We expect the takeaway after our pricing adjustment to be around 10%. And parallel to the pricing adjustment, it was around 13%.

（翻譯）你好，亞歷克斯。讓我來翻譯吧。事實上，我們之前已經分享過一些印尼的數據。我們預計定價調整後的收益將在 10% 左右。與價格調整並行的是 13% 左右。

And from an ROA perspective, we expect it to be around 2.4% after the deduction of CAC and some other costs. And based on the current regulator's advice, there might be a further change in price reduction. We need to re-evaluate this in the second half of the year. However, based on the current [UEE], we believe our business will remain at a healthy level even if further price reduction kicks in.

從ROA角度來看，扣除CAC和其他一些成本後，我們預計在2.4%左右。並且根據目前監管機構的建議，降價可能會有進一步的變化。我們需要在下半年重新評估這一點。然而，根據目前的[UEE]，我們相信即使進一步降價，我們的業務也將保持在健康水平。

First of all, I would like to reiterate FinVolution position. We are a global consumer finance technology company. Our success has been validated in China, Indonesia, and the Philippines, with leadership position.

首先，我想重申FinVolution的立場。我們是一家全球消費金融科技公司。我們的成功已在中國、印尼和菲律賓得到驗證，並處於領先地位。

In the recent years, as China market matures, our business entered into a stage known as high-quality progressive growth. On the other hand, based on our observation, the international markets are still in early stages of development where market opportunities for growth is enormous. And we are very confident to cement our success in Indonesia and the Philippines while expanding to more countries and showing a rapid growth rate for our company.

近年來，隨著中國市場的成熟，我們的業務進入了高品質漸進式成長階段。另一方面，根據我們的觀察，國際市場仍處於發展初期，市場成長機會龐大。我們非常有信心鞏固我們在印尼和菲律賓的成功，同時擴展到更多國家並展示我們公司的快速成長速度。

Our capital return program is closely in line with our company positioning. We hope rapid and healthy business growth can be the main way to create value for our shareholders. Over the last three years, we have proven this point.

我們的資本回報計劃與我們的公司定位密切相關。我們希望業務的快速健康成長能夠成為為股東創造價值的主要途徑。過去三年，我們已經證明了這一點。

We have completed the business transition of our China business and expanded internationally, with an average CAGR growth of over 44% and revenue growth of around 20%. And apart from this, we have also returned value to our shareholders through our capital return program.

我們已經完成了中國業務的業務轉型並向國際擴張，平均複合年增長率超過44%，收入成長在20%左右。除此之外，我們也透過資本回報計畫向股東回報價值。

We began our dividend program and share repurchase program since 2018, the earliest in our industry. Over the last six years, we have cumulatively returned over USD600 million to our shareholders, equivalent to almost half of our market cap today.

我們自 2018 年起開始實施股利計劃和股票回購計劃，這在業界是最早的。過去六年，我們累計向股東返還超過 6 億美元，幾乎相當於我們今天市值的一半。

In 2023, we deployed close to USD100 million to repurchase our shares and USD62 million for dividend distribution, representing around 50% of net income for 2023 and a combined dividend of 11%. In 2023, our dividend per ADS was USD0.237, the fourth year of consecutive increase. And on the five years' average, this increase in dividend was above 10%.

2023年，我們部署了近1億美元用於回購股票，6,200萬美元用於股利分配，約佔2023年淨利的50%，綜合股利為11%。2023年，我們每股ADS股利為0.237美元，連續第四年增加。以五年平均來看，股利增幅超過10%。

And I would like to emphasize on this. For China ADR, there are not more than six companies with five years of consecutive dividend and consistent increase in EPS. And we are one of these companies. And in summary, we are returning value to shareholders in terms of growth and a leading capital return program.

我想強調這一點。就中國ADR而言，連續五年派息且每股收益持續成長的公司不超過六家。我們就是這些公司之一。總而言之，我們正在透過成長和領先的資本回報計劃為股東回報價值。

Going forward, we will continue with this belief and let high-quality growth remain as our core method to return value to our shareholders and concurrently, maintain a leading capital return program. Regarding dividend, we are confident to maintain our track record and continue to deliver consistent increase in dividend for our shareholders. Alex?

展望未來，我們將繼續秉承這一信念，以高品質成長作為回報股東價值的核心方式，同時保持領先的資本回報計劃。關於股息，我們有信心保持往績，並繼續為股東提供持續增加的股息。亞歷克斯？

(spoken in Chinese) Thank you.

（用中文發言） 謝謝。

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

由於現在沒有其他問題了，我想將電話轉回公司進行結束語。

Thank you, all, once again for joining us today. If you have any further questions, please feel free to contact FinVolution's Investor Relations team.

再次感謝大家今天加入我們。如果您還有任何疑問，請隨時聯繫 FinVolution 的投資者關係團隊。

This concludes the conference call. You may now disconnect your line. Thank you.

電話會議到此結束。現在您可以斷開線路。謝謝。

Editor^ Portions of this transcript that are marked (interpreted) were spoken either by an interpreter present on the live call or by the speakers themselves. The interpreter was provided by the company sponsoring this event.

編輯^ 本筆錄中標記（翻譯）的部分是由現場通話中的口譯員或發言者本人說出的。口譯員由贊助本次活動的公司提供。