FinVolution Group (FINV) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen. Thank you for participating in the third-quarter 2024 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 2024 年第三季財報電話會議。（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 Capital Markets for the company. Jimmy, please go ahead.

我現在會把電話轉給東道主、公司資本市場主管 Jimmy Tan。吉米，請繼續。

Hello, everyone, and thank you to all and welcome to our third-quarter 2024 earnings conference call.

大家好，感謝大家，歡迎參加我們的 2024 年第三季財報電話會議。

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.finvgroup.com.

該公司業績今天稍早透過 Newswire 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.

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。

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.

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檢視和評估我們的營運績效。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 conditions 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. 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 statements, except as required under applicable law.

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件做出的前瞻性陳述。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。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。

Finally, we posted a slide presentation on our IR website providing details of our results for the quarter.

最後，我們在 IR 網站上發布了幻燈片演示，提供了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。

Thanks, Jimmy. Hello, everyone, and thank you for joining our earnings call. This is Tiezheng Li, CEO of FinVolution Group. We are happy to speak with you today.

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

FinVolution made great progress despite the perilous challenges through strong execution of our local excellence, global outlook, and 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 broader-than-anticipated stimulus measures announced in late September.

儘管面臨危險的挑戰，FinVolution 透過強有力地執行我們的本地卓越、全球視野和法律策略，取得了巨大進步。儘管第三季中國整體經濟成長仍受到限制，但鑑於 9 月底宣布的刺激措施範圍超出預期，我們預計第四季將出現更永續的改善。

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.

此外，我們在實現 2030 年 50% 收入來自國際市場的目標方面也取得了巨大進展。透過不斷利用在中國的經驗和持續的技術改進，我們推動了國際交易量的快速成長。這轉化為更高的收入和淨利潤貢獻，國際收入貢獻從 2020 年的 3.7% 大幅增加到 2022 年的 10.3%，預計 2024 年將達到 20% 左右。

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.

多年來，我們也將我們的能力整合到單獨的模型中，以便我們可以靈活部署，同時適應不同國家不斷變化的需求。為了配合我們增加國際收入的目標，我們最近加強了我們的國際團隊，並邀請孫曉東博士加入我們，擔任我們國際業務的高級副總裁。孫博士曾在螞蟻金服、網路商家、美國運通、花旗銀行等知名公司擔任要職。

Bolstered 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.

在孫先生的領導和專業知識的支持下，我們有信心加快國際業務擴張並實現新的里程碑。截至2024年9月30日，我們已累計為中國、印尼和菲律賓的3,260萬借款人提供服務。對於我們的國際市場，我們很自豪地告訴大家，獨立借款人的數量從 2020 年的 70 萬增加到 2022 年的 160 萬，並在 2024 年前 9 個月增加到 210 萬。此外，值得注意的是，2020 年新增借款人數為 63 萬，2022 年為 110 萬，2024 年前 9 個月為 150 萬。

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.

驗證了我們國際業務中新借款人的高比例，在我們所有市場上收購高品質借款人仍然是我們策略的重要組成部分。由此，我們平台新增借款人總數再次突破100萬大關。

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 (technical difficulty) quarter. Such strong growth underscores our execution excellence and our strategy's effectiveness in driving the rapid expansion of our international business.

我們非常高興地告訴大家，隨著第三季全球業務的加強，國際市場新增借款人數量達到 671,000 人，年增 60%，季增 43%。值得注意的是，新國際借款人數（技術難度）季度成長。如此強勁的成長凸顯了我們卓越的執行力以及我們的策略在推動國際業務快速擴張方面的有效性。

For the third quarter, total transaction volume reached RMB52.2 billion, while total outstanding loan balance reached RMB68.1 billion, up 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.

第三季度，交易總額達人民幣522億元，貸款餘額達人民幣681億元，年比分別增加1.8%和3.3%。我們經營的所有市場的持續成長驗證了我們策略的效率和永續性。

Given the low penetration rate for financial services in our international markets, we continue to enhance our holistic approach to customer acquisition with innovative marketing campaigns that capitalize on our strategic partners' resources and our local team's 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 encourages borrower 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.

鑑於金融服務在國際市場的滲透率較低，我們繼續透過創新的行銷活動加強我們的整體客戶獲取方法，利用我們的策略合作夥伴的資源和我們當地團隊對市場趨勢的深刻理解。例如，我們全面的社交媒體策略繼續吸引新的網站訪客並提高我們的品牌曝光度，促進積極的口碑宣傳並塑造值得信賴的形象，鼓勵借款人轉換。截至三季末，我們在主要社群媒體平台的粉絲總數達到250萬，年增21%。

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 deepfake 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 risks in terms of data security and asset protection affecting different industries.

作為技術先驅，我們正在利用技術創新來加強我們的營運並促進金融科技行業的誠信和安全。第三季度，FinVolution 在韓國舉行的第 33 屆國際人工智慧聯合會議上展示了其打擊 Deepfake 語音命令詐騙的檢測解決方案。語音合成技術的進步使得區分真實語音和克隆語音變得越來越困難，為不同產業的資料安全和資產保護帶來了巨大風險。

We believe that our sophisticated large, long-range 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 large, long-range models into our loan collection recovery process, which has improved our loan collection recovery rate and saved us millions of dollars.

我們相信，我們先進的大型遠端模型解決方案有潛力有效打擊語音命令欺詐，維護用戶利益並培育健康的行業生態系統。我們還將大型遠端模型整合到我們的貸款催收回收流程中，這提高了我們的貸款催收回收率，並為我們節省了數百萬美元。

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.

這些創新技術的發展得益於我們對研發的堅定承諾和一年一度的FinVolution技術杯大賽的成果，該大賽在九年的歷史中孵化了許多尖端解決方案。展望未來，我們將繼續大力投資研發，透過領先的技術來提升服務品質和營運效率。

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 I joined, 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 loans totaling RMB15.4 billion during the quarter, up 25% year over year.

在結束之前，我先簡單介紹一下我們的 ESG 工作。根據我們對金融包容性的承諾，我們在第三季度繼續透過為小企業主提供貸款提供便利來支持經濟支柱。當我加入時，面向社區的當地就業機會提供者、為小型企業提供服務最終有助於更快的經濟復甦。本季度，我們為44.7萬戶小企業主發放貸款154億元，較去年同期成長25%。

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 processes 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 unwavering commitment to our vision of financial inclusion to 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.

總之，我們利用我們在技術、客戶獲取和保留方面的優勢，成功應對了第三季的挑戰。我們也持續吸引多個國家的優質人才，這進一步增強了我們的研發能力，最終將實現印尼和菲律賓的業務流程外包，促進我們進入更多新市場的擴張，堅定執行我們的本地卓越、全球展望策略、持續的技術創新以及我們對普惠金融願景的堅定承諾，繼續推動我們的穩步進步和長期永續成長。展望未來，我們有信心成為泛亞洲地區領先的金融科技公司。

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

現在，我將把電話轉給我們的財務長徐嘉媛，他將討論營運和財務表現。

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.

謝謝李老師，大家好。歡迎參加我們的 2024 年第三季財報電話會議。讓我們來看看第三季的主要業績。為了注意今天財報電話會議的長度，我鼓勵聽眾參考我們的第三季財報新聞稿以了解更多詳細資訊。

As Li mentioned, the recent announcement of a series of borders and 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 RMB701 billion, representing year-over-year growth of 6.3%.

正如李所提到的，近期中國宣布的一系列邊界和預期的國慶刺激措施導致旅遊和消費數據正增長。國慶長假期間，國內出遊7.65億人次，較去年成長5.9%。國內遊客消費總額約7,010億元人民幣，較去年同期成長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.

伴隨著消費復甦的趨勢，北京、上海、廣州、深圳等一線城市的消費者購屋意願因房地產政策利好明顯回升。此外，9月製造業PMI上升70個基點，達到49.8點，為5月以來的最高水準。

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 RMB142 billion, up by over 4% year over year. Other operational metrics also exhibited varied degrees of continuous improvement.

第三季度，我們觀察到中國市場的多個營運指標持續改善。2024年前9個月，中國交易金額達1,420億元人民幣，較去年同期成長超過4%。其他營運指標也呈現不同程度的持續改善。

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 credit risk assessment capabilities.

此外，第三季我們在中國的平均借款利率保持穩定，有力地驗證了我們對普惠金融的承諾。借助市場流動性充裕和優質貸款資產持續短缺的優勢，三季我們的融資成本進一步降低了50個基點。今年以來，我們的融資成本降低了190個基點，反映了金融機構對我們資產品質和信用風險評估能力的高度認可。

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. Meanwhile, our loan collection recovery rate rebounded to 88.5%, up 50 basis points quarter over quarter.

在風險方面，透過有效利用端對端信用風險評估模型，我們近期第一天拖欠率顯著改善，下降了20個基點至4.9%。同時，我們的貸款回收率反彈至88.5%，較上季上升50個基點。

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%.

鑑於我們對宏觀經濟加速復甦的信心不斷增強，我們預計今年剩餘時間將持續改善。我們也維持本季的拖欠率將改善至 2.4% 左右的預期。

Turning now to our international expansion, our validated second growth driver. For the first nine months of the year, international transaction volume reached RMB7.2 billion, up 29% year over year. Revenue contribution from the international markets grew further to RMB636 million, up 9% year over year, and representing 19% of total revenues. Capitalizing on a robust global macro environment 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.

現在轉向我們的國際擴張，這是我們經過驗證的第二個成長動力。今年前9個月，國際交易額達72億元人民幣，較去年同期成長29%。國際市場收入貢獻進一步成長至人民幣6.36億元，較去年同期成長9%，佔總營收的19%。透過有效執行我們的法律策略，充分利用強勁的全球宏觀環境，我們對我們的國際業務可持續性和各國業務模式的多元化充滿信心。

Let me begin with our first and largest overseas market, 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%.

讓我從我們第一個也是最大的海外市場印尼開始。該市場持續呈現強勁成長勢頭，消費者信心指數連續21個月維持在120點以上。我們預計，在基準 7 天準備金率下調 25 個基點至 6% 後，當地消費將進一步模擬。

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 RMB1.8 billion, a sequential increase of 11%.

2024年9月，印尼摩托車銷量年增3.7%，達52.9萬輛。經過幾個月旨在在新定價上限下吸引優質借款人的業務調整後，我們很高興地宣布，我們在印尼的交易量已恢復增長，達到人民幣 18 億元，環比增長 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 Superbank, Bank Jago, SeaBank, OCBC Bank, and Permata Bank, among others.

就交易量而言，本季也是我們有史以來表現最好的季度之一。近期業務調整完成後，我們與印尼領先的數位銀行Superbank簽署了新的策略合作協議，彰顯了我們贏得當地金融機構的信任和認可。迄今為止，我們已與多家知名數位和傳統本地金融機構建立策略合作夥伴關係，包括Superbank、Bank Jago、SeaBank、OCBC Bank和Permata Bank等。

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.

我還想強調的是，經過幾個季度的準備，我們已成功收購了一家當地多元化金融公司的大部分股權，這將使我們能夠將產品多元化至非現金貸款。反過來，這將使我們能夠將我們的業務擴展到更多藉款人。此次收購的完成凸顯了監管機構對我們當地業務的信任和信心。

In the Philippines, our second international market, reversed macroeconomic conditions are boosting consumption. In September, the Purchase Manager's 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.

在我們的第二個國際市場菲律賓，宏觀經濟情勢的逆轉正在刺激消費。9月份，採購經理人指數PMI為53.7點，較去年同期成長6%，較上季成長5%。這一微觀趨勢也推動菲律賓失業率從去年同期的4.5%降至2024年9月的3.7%。

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 transaction volume growing 137% year over year and 24% sequentially to RMB838 million. It's also worth noting that its contribution to international transaction volume grew to about 32% for the quarter.

值得注意的是，在穩定的匯款流入和強勁的勞動力市場的推動下，菲律賓的私人消費十多年來一直佔其名目GDP的70%以上，成為該國的主要成長引擎。我們的菲律賓業務持續超出預期，交易額較去年同期成長 137%，較上季成長 24%，達到 8.38 億元。另外值得注意的是，該季度其對國際交易量的貢獻成長至約 32%。

We have established robust financial and operational partnerships in the region and remain highly confident in our ability to sustain rapid growth here. For example, while 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.

我們在該地區建立了強大的財務和營運合作夥伴關係，並對我們在該地區維持快速成長的能力充滿信心。例如，在強調「先買後付」、BNPL、與 TikTok 合作的同時，我們也與另一個領先的電子商務平台啟動了試點項目，以豐富我們的獲客管道。

Furthermore, we have ample funding from leading local financial institutions such as Maya Bank, SeaBank, and UnionBank 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.

此外，我們還擁有瑪雅銀行、SeaBank 和 UnionBank 等當地領先金融機構提供的充足資金來支持我們的發展。這些牢固的合作夥伴關係使我們能夠利用菲律賓市場的巨大機會。鑑於我們在國際市場取得的成就，我們有信心利用我們豐富的經驗和技術優勢，在更多國家和地區複製這一成功。

Now, turning to our financial metrics, this quarter's operational excellence resulted in the solid financial performance. Net revenue for the quarter reached RMB3.3 billion, marking a 3% increase year over year and a 3% increase sequentially. Net income was RMB624 million, representing a 9% increase year over year and a 13% increase sequentially.

現在，轉向我們的財務指標，本季的卓越營運帶來了穩健的財務表現。該季度淨收入達人民幣33億元，較去年同期成長3%，較上季成長3%。淨利為人民幣6.24億元，較去年成長9%，較上季成長13%。

Meanwhile, sales and marketing expenses rose by 6% year over year to RMB516 million as we continued to strengthen efforts to acquire new borrowers of high quality in both China and international markets.

同時，隨著我們持續加大在中國和國際市場獲取優質新借款人的力度，銷售及行銷費用較去年同期成長6%至人民幣5.16億元。

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 stabilizes.

此外，我們的槓桿率（定義為風險貸款除以股東權益）仍保持在3.2倍的低水平，反映出隨著宏觀經濟環境穩定，潛在的成長機會。

Our total liquidity position, consisting of cash and cash equivalents plus short-term investments, reached RMB9 billion, up 13% from December 2023, showcasing a robust balance sheet that's well able to support our business growth and exploration of new opportunities while consistently increasing shareholders' returns.

我們的總流動性部位（包括現金和現金等價物加上短期投資）達到人民幣90 億元，較2023 年12 月增長13%，顯示出穩健的資產負債表，能夠很好地支持我們的業務增長和探索新機會，同時不斷增加股東' 返回。

Before I conclude, let me briefly update you on our share repurchase program. During the third quarter, we deployed around USD24.3 million to repurchase around 4.6 million ADS on our secondary market. For the first nine months of 2024, we deployed USD81.1 million to repurchase our shares in the market, up 23% year over year. As of September 13, 2024, we had cumulatively returned USD316.1 million and USD325 million to our shareholders in the form of share repurchase and dividend distribution, respectively, for a total return of USD686.1 million to our shareholders, underscoring our strong commitment to enhancing shareholders' value.

在結束之前，讓我先簡單介紹一下我們的股票回購計畫。第三季度，我們部署了約 2,430 萬美元，在二級市場上回購了約 460 萬股美國存託憑證。2024 年前 9 個月，我們部署了 8,110 萬美元回購市場股票，年增 23%。截至2024年9月13日，我們已累積以股份回購和股利分配的方式分別向股東返還3.161億美元及3.25億美元，共計向股東返還6.861億美元，彰顯了我們的堅定承諾提升股東價值。

In summary, our robust results for the third quarter demonstrate the effectiveness of our local excellence global outlook strategy, empowered by our [engine] 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 seizing the global market's vast opportunities and sharing our achievements with all shareholders through sustainable business growth and a strengthening capital return program.

總之，我們第三季的強勁業績證明了我們的本地卓越全球展望策略的有效性，這得益於我們的[引擎]業務模式和技術優勢。鑑於消費者對經濟加速復甦的信心不斷增強，我們相信我們的業務將在今年剩餘時間內繼續形成積極勢頭。我們將繼續致力於透過可持續的業務成長和加強資本回報計劃，抓住全球市場的巨大機遇，與所有股東分享我們的成果。

That concludes my prepared remarks. We will now open the call to 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) Alex Ye, UBS.

（操作員說明）Alex Ye，UBS。

Good morning, management. Thanks for taking my question. So my first question is on China business. So we have seen your loan volume was up by 7% Q on Q. So the growth has rebounded from 1% Q on Q last quarter. So I'm wondering what drove the loan volume pick up during the quarter. Is that an industry-wide trend? And then also going to Q4, have you seen any sort of pick up in credit demand and loan allocation in October and November?

早安，管理層。感謝您提出我的問題。我的第一個問題是關於中國業務的。因此，我們看到你們的貸款量較上季成長了 7%。所以我想知道是什麼推動了本季貸款量的增加。這是整個產業的趨勢嗎？然後是第四季度，您是否看到 10 月和 11 月信貸需求和貸款分配有任何回升？

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 there's continued investment in sales and marketing and other expenses. So I'm wondering, when do we expect to see the international business to start generating more meaningful profits? Thank you.

其次，這與您的國際業務有關。那麼今年最高限價調整後，您預計明年還會進一步下降嗎？此外，我們還看到銷售和行銷以及其他費用的持續投資。所以我想知道，我們預計什麼時候才能看到國際業務開始產生更有意義的利潤？謝謝。

(interpreted) 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 RMB49.5 billion, up 6.7% sequentially.

(解讀)2023年下半年以來，白炭黑產業經歷了一定的波動，產業面臨尺寸縮減的挑戰。但憑藉著穩健的風險表現，FinVolution今年前9個月的交易額仍實現了4%以上的成長速度，第三季交易額達495億元，成長6.7%依序。

And during the third quarter, from two different perspectives, number one, we have observed that customer applications have increased compared to the second quarter, reversing the trend of a continuous weak applications during the first half. Customer applications in the third quarter increased by 12% sequentially.

第三季度，從兩個不同的角度來看，第一，我們觀察到客戶的應用量比第二季度增加，扭轉了上半年應用持續疲軟的趨勢。第三季客戶申請量較上季成長12%。

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.

而另一種觀點則認為，對新客戶獲取的持續投入使我們能夠在產業中擁有領先地位。從歷史上看，我們的新客戶比例一直在10%以上，第三季這一比例進一步增長至14%，新借款人達到40萬人。對優質借款人的投資對於我們實現持續成長至關重要。

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.

相信大家也注意到了9月下旬公佈的經濟刺激方案。我們觀察到，每日交易量有所改善，申請率增加了 10% 左右。而進入10月下旬，客戶申請量逐漸放緩，回到了9月份的水平，但相比上半年還是有明顯改善。我們相信第三季所表現出的趨勢能夠持續到第四季。

The September-end broader-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 materializes. And during this period, we all should have some patience.

九月底推出的超乎預期的刺激措施極大地激勵了我們。這讓我們對中國市場的發展更有信心。如您所知，我們透過在獲客、使用者體驗等領域的持續投入，在中國市場維持了高品質成長。我們相信，隨著刺激計畫的逐步落實，此類投資的影響將會倍增。而在這個時期，我們大家都應該要有一些耐心。

In 2024, we have been through a price reduction process from 0.4% to 0.3% on a daily basis, and we have completed the transition to better quality borrowers and upgraded our credit risk assessment models in nearly five months. Transaction volume has since resumed growth and up by 10% sequentially.

2024年，我們經歷了每日降價0.4%至0.3%的過程，並在近五個月內完成了向更優質借款人的過渡，併升級了信用風險評估模型。此後交易量恢復成長，季增 10%。

And throughout these several times of price reduction, we have accumulated sufficient experience in handling interest rate reduction, and 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.

而在這幾次降價過程中，我們已經累積了足夠的降息處理經驗，目前我們還沒有收到任何進一步降價的通知。儘管第四季可能會有進一步的訊息，但我們仍維持目前 0.3% 的水平營運。而在穩定的定價環境下，我們相信我們能夠為現金貸業務的印尼業務貢獻更有意義的利潤。

Cindy Wang, China Renaissance.

王辛迪，中國文藝復興。

(spoken in foreign language) Thanks for taking my question. I have two questions here. First one is the funding cost has been lower 190 bps this year. Do you think is there any room to improve in fourth quarter?

（用外語發言）感謝您提出我的問題。我在這裡有兩個問題。第一個是今年的融資成本降低了 190 個基點。您認為第四季還有進步的空間嗎？

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.

第二個問題是，國際市場新增借款人數量連續第二季超過中國。那麼您能談談您們的印尼和菲律賓獲客策略以及獲客成本嗎？這將如何影響您的銷售和行銷費用？謝謝。

(interpreted) I believe you guys have seen that our 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's still room for improvement in the fourth quarter. However, the improvement rates might be smaller compared to the remaining of the year.

（解讀）相信大家也看到了，今年以來我們在中國的融資成本有了很大的改善，反映了市場對我們技術和資產品質的認可。我們認為第四季仍有改善的空間。然而，與今年剩餘時間相比，改善率可能較小。

(interpreted) 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 SeaBank, OCBC, Jago, among others. And all our loans facilitated in Indonesia are facilitated by these local players.

（解釋）正如亞歷克西斯所提到的，我們在前五個月轉向了印尼品質更好的借款人，並在第三季度恢復了成長。在這個過程中，我們一直在擴大本地融資機構的基礎，現在，我們已經與 SeaBank、OCBC、Jago 等七個不同的合作夥伴合作。我們在印尼提供的所有貸款都是由這些當地參與者提供的。

We have also acquired a multi-finance license, validating the recognition and trust from local regulators. We have also established cooperations with renowned local partners such as OPPO and OOP. And you have also noticed that our customer growth has been very robust in 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 profit in 2025.

我們也獲得了多金融牌照，驗證了當地監管機構的認可和信任。我們也與OPPO、OOP等當地知名合作夥伴建立了合作。您還注意到，我們的客戶成長無論是同比增長還是環比增長都非常強勁。而且獲取率也很穩定，就像 Alexis 提到的那樣，2025 年將會有更有意義的利潤。

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 SeaBank and Maya Bank. And today, about 60% of our loans are being facilitated through local financial institutions.

菲律賓宏觀經濟強勁，我們取得了良好的經營績效。例如，我們也與 SeaBank 和 Maya Bank 等當地金融機構建立了牢固的合作夥伴關係。如今，我們大約 60% 的貸款是透過當地金融機構提供的。

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.

此外，我們還與 TikTok Shop 等當地合作夥伴建立了強有力的合作，目前我們約 20% 的交易量來自他們，我們預計這一數字將在 2025 年進一步增長。菲律賓的業務營運表現超乎我們的預期，年比和季比均出現強勁成長。此外，我們預計菲律賓業務將在 2025 年貢獻利潤。

Since entering the international market in 2018, we have been doing international business for seven years. And as you can see, along all these years, our operational metrics such as risk, customer acquisition, have all been improving. And 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 we'll share more when there is more concrete news.

自2018年進入國際市場以來，我們已經開展國際業務七年了。正如您所看到的，這些年來，我們的營運指標（例如風險、客戶獲取）都在不斷改善。目前，國際業務的營收貢獻已達20%左右。我們也一直在積極規劃和部署資源到更多新的國家，當有更多具體消息時我們會分享更多。

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 -- on 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.

其中一些想法是，當我們進入一個新的國家時，我們將首先關注現金貸款，然後適應當地的法規，最終升級為更好的借款人。其次，我們將適應──貸款與消費場景。到2030年，我們的目標是實現50%的收入來自國際業務，為更多藉款人提供更好的服務。

Yada Li, CICC.

李亞達，中金公司。

(spoken in foreign language) 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 the company balance long-term growth and total shareholders' return? That's all. Thank you.

（用外語發言） 領導您好。感謝您回答我的問題。問題是關於股東回報。您期望在2025年為股東創造更多價值嗎？公司如何平衡長期成長和股東總回報？就這樣。謝謝。

(interpreted) 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.

（解讀）公司優先考慮股東價值的長期回報。一方面，我們透過業務的快速、永續成長創造價值。另一方面，我們建立了領先的資本回報計劃，包括股票回購和股利。

Since 2018, we have launched our dividend and repurchase program for six consecutive years, the earliest in the industry. During this period, we have cumulatively returned $618 million to our shareholders, which is around 43% of our market cap. During the third quarter, we have deployed USD24.3 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.

自2018年起，我們連續六年推出分紅及回購計劃，為業界最早。在此期間，我們累計向股東返還 6.18 億美元，約占我們市值的 43%。第三季度，我們部署了 2,430 萬美元用於股票回購，年增 24%。今年前9個月，我們累計回購部署了8,100萬美元，比去年同期成長了23%。截至 10 月底，我們已經使用了第三次股票回購計畫的 75%。

Also, returning value to shareholders through high-quality growth in both international market and China market -- 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.

同時，透過國際市場和中國市場的高品質成長來回報股東——我們的原則是保持高品質成長，同時我們也有信心以穩定的成長率為股東分配股息。

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

謝謝。由於沒有其他問題，我現在想將會議轉回公司進行閉幕致詞。

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.

你好。感謝大家今天參加我們的財報電話會議。如果您還有任何疑問，請隨時聯絡我們的投資者關係團隊。謝謝大家。祝你今天過得愉快。

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

謝謝。本次電話會議到此結束。您現在可以斷開線路，度過美好的一天。

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

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。