FinVolution Group (FINV) 2025 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for participating in the first quarter of 2025 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 2025 年第一季財報電話會議。（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 Yam Cheng, Head of Capital Markets for the company. Yam, please go ahead.

現在我將電話轉給主持人、公司資本市場主管 Yam Cheng。山藥，請繼續。

Thank you, welcome. Hello, everyone. Welcome to our 2025 first-quarter earnings conference call. The company's results 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. Tiezheng Li, our Chief Executive Officer; and Mr. Jiayuan Xu, our Chief Financial Officer, will start the call with the prepare remarks and conclude with a Q&A section.

謝謝，歡迎。大家好。歡迎參加我們的 2025 年第一季財報電話會議。該公司的業績於今天稍早透過新聞專線服務發布並在網路上公佈。您可以透過造訪我們網站 ir.finvgroup.com 的投資者關係專區下載收益報告並訂閱公司電子郵件提醒。我們的執行長李鐵政先生和財務長徐家元先生將在電話會議上首先發言，最後進行問答環節。

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 the cancellation to GAAP measures, please refer to our earnings press release.

在本次電話會議中，我們將參考幾個非公認會計準則財務指標來檢視和評估我們的營運績效。這些非公認會計準則財務指標不應被單獨考慮或取代根據美國公認會計準則編制和呈現的財務資訊。有關這些非 GAAP 指標以及取消 GAAP 指標的信息，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 risk 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 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，該公司的業績可能與今天表達的觀點有重大差異。有關這些和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 presentation on our IR website providing details of our results for the quarter.

最後，我們在 IR 網站上發布了一份演示文稿，詳細介紹了本季度的業績。

Now, I would turn the call over to our CEO, Mr. Tiezheng Li. Please go ahead.

現在，我將把電話轉給我們的執行長李鐵政先生。請繼續。

Thanks, Yam. 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，Yam。大家好，感謝您參加我們的財報電話會議。我是金融創新集團執行長李鐵正。我們很高興今天與您交談。

We are pleased to report that FinVolution delivered strong financial and operational results in the first quarter of 2025. So effective execution of our local excellence, global outlook growth strategy.

我們很高興地報告，FinVolution 在 2025 年第一季取得了強勁的財務和營運業績。因此，我們有效地執行了本地卓越、全球視野的成長策略。

We are 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.

我們正在應對該行業預期的季節性疲軟，得益於中國市場接受率的提高和國際需求的激增，我們實現了 10% 的同比增長。

International transaction volume grew robustly, up 36% year over year, complimenting China's slightly 7% growth. These successes job a record-breaking quarterly net profit of RMB738 million. The height since our transition to a loan facilitation model in 2019. This is represented increases of 39% year over year and 8% quarter over quarter, assessment to our operational excellence.

國際交易量強勁成長，年增 36%，與中國 7% 的微弱成長相呼應。這些成功使得公司當季淨利創歷史新高，達到人民幣7.38億元。這是我們自 2019 年轉型為貸款便利化模式以來的最高水準。這代表著同比增長 39%，環比增長 8%，這是對我們卓越營運的評價。

Well, 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.

我們注意到持續存在的微觀經濟不確定性，例如全球貿易緊張局勢、房地產行業疲軟以及中國消費金融領域不斷變化的監管法規。我們保持謹慎樂觀的態度。這種信心源自於我們商業模式的兩個基本優勢。

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.

首先，我們已證明具有韌性。自 2017 年 11 月首次公開募股以來，我們成功應對了多重挑戰，包括向機構融資模式的轉型、印尼的監管變化以及新冠疫情。

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 balance risk management with sustainable growth.

值得注意的是，自 2021 年以來，我們的每季交易量和收入都實現了持續的同比增長。這項業績記錄證明了我們有能力適應監管變化、靈活應對市場動態並平衡風險管理和永續成長。

Second, our strategic diversification initiatives in international markets continue to mitigate the impact of single country risks. Since entering Indonesia in 2018 and the Philippines in 2020, we have systematically built a broad right tech business designed to reduce geographic concentration risk. Our international business generated a total transaction volume of RMB3 billion in the fourth quarter and 36% year-over-year increase. This is outstanding loan balance growing 46% to RMB1.9 billion.

其次，我們在國際市場的策略多元化措施持續減輕單一國家風險的影響。自 2018 年進入印尼和 2020 年進入菲律賓以來，我們有系統地建立了廣泛的正確技術業務，旨在降低地理集中風險。第四季度，我們的國際業務總交易額達30億元人民幣，較去年同期成長36%。未償還貸款餘額增加46%，達19億元。

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.

我們的國際業務在第一季貢獻了總淨收入的20.4%，高於去年同期的18.8%。我們預計將實現我們的策略目標，即到2030年，國際業務將佔集團總收入的50%。

Our customer base remains the cornerstone of our long-term growth. In Q1 2025, we maintained strong momentum in borrower acquisition across our markets, onboarding 1.2 million new borrowers, up 62% year over year. This marked our third consecutive quarter exceeding 1 million new borrowers and showing the effectiveness of our AI powered marketing strategy and diversified user acquisition channels.

我們的客戶群仍然是我們長期成長的基石。2025 年第一季度，我們在各個市場借款人獲取方面保持了強勁勢頭，新增借款人 120 萬，年增 62%。這是我們連續第三個季度新增借款人超過 100 萬，展現了我們基於人工智慧的營銷策略和多樣化用戶獲取管道的有效性。

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 lending e-commerce and e-wallet platforms to acquire borrowers in international markets. Our technology initiatives continue to improve efficiency across our operations.

在中國，我們增加了512,000名新借款人，年增37％。在我們的國際市場，我們吸引了 652,000 名新借款人，年增 90%。這是國際收購連續第四個季度超過中國國內收購。我們預計這一趨勢將持續下去，這得益於網路借貸滲透率的不斷提高，以及我們與借貸電子商務和電子錢包平台的策略合作，以在國際市場上獲取借款人。我們的技術措施不斷提高整個營運的效率。

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 insights into the stability of borrowers' work and the living conditions. Large language 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.

我們正在探索在風險評估中使用大型語言模型，利用其多樣化的功能自動提取和分析消費者信用報告中的非結構化資料並從中獲取見解。例如，借款人更改居住地址的頻率是非結構化的上下文細節，可以為了解借款人工作和生活條件的穩定性提供有價值的見解。大型語言模型可以自動捕獲此類上下文數據，並將其轉換為有意義的結構化數據，這些數據可以整合到我們現有的風險評估模型中，以更全面地評估用戶違約的機率。在我們最近的 A/B 測試中，我們的模型取得了可觀察到的統計顯著改進，表明風險評估有效性得到增強。我們也透過虛擬代表計劃在自動化方面取得了實質進展。

By integrating large language model, we will upgrade our natural language processing system with intelligent virtual agents that can handle customers' acquisition and a complex workflow. Looking ahead, we plan to expand their role across additional business functions to further boost operational efficiency.

透過整合大型語言模型，我們將使用可以處理客戶獲取和複雜工作流程的智慧虛擬代理來升級我們的自然語言處理系統。展望未來，我們計劃擴大他們在其他業務職能中的作用，以進一步提高營運效率。

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 RMB15 billion in financing for 442,000 small business owners, up 15% and 10%, respectively.

在結束之前，我先簡單介紹一下我們的 ESG 工作。我們對永續金融的承諾將繼續產生有意義的影響。2025年一季度，我們為44.2萬戶小微企業主促成融資150億元，年比分別成長15%和10%。

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 Bluebook, 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.

這些小型企業貸款占我們中國交易量的30%，反映了我們對中國經濟支柱的持續支持。我們作為與中國互聯網金融協會合作開發的重要行業出版物《中國金融消費者權益保護藍皮書》的核心撰稿人，進一步鞏固了我們作為行業思想領袖的地位。隨著該法案於三月發布，我們幫助全國範圍內形成了消費者保護和金融知識普及的最佳實踐。

In conclusion, our strong first quarter performance reflects excellent execution of our effective local excellence global outlook strategy. Looking forward, we are well-positioned to capitalize on emerging opportunities while maintaining the agility required to navigate the evolving landscape.

總之，我們第一季的強勁業績反映了我們有效的本地卓越全球展望策略的出色執行。展望未來，我們已做好準備，充分利用新興機遇，同時保持適應不斷變化的情況所需的靈活性。

Our diversified footprint technological leadership and commitment to sustainable growth position us well to continue creating value for our stakeholders.

我們多元化的足跡技術領導地位和對永續成長的承諾使我們能夠繼續為利害關係人創造價值。

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家元，他將討論我們的營運和財務表現。

Thank you, Tiezheng, and hello, everyone. Welcome to our first quarter 2025 earnings call. Let's go through our key results for the first quarter. To be mindful of the length of our earnings call today, I encourage listeners to refer to our first quarter earnings press release for further details. China's macro environment remained uncertain in the first quarter due to global trade tensions.

謝謝鐵正，大家好。歡迎參加我們的 2025 年第一季財報電話會議。讓我們回顧一下第一季的主要業績。考慮到我們今天的收益電話會議的長度，我鼓勵聽眾參考我們的第一季收益新聞稿以了解更多詳細資訊。受全球貿易緊張局勢影響，第一季中國宏觀環境仍不確定。

However, there were some encouraging signs. China's GDP grew by 5.4% year over year, while retail sales rose by 5.9% in March. Total social financing expanded 8.4% in March, up from February. Additive manufacturing PMI remained above 50% in February and March, signaling continued recovery momentum.

然而，也有一些令人鼓舞的跡象。中國3月GDP年增5.4%，社會消費品零售總額成長5.9%。3月社會融資規模成長率為8.4%，比2月有所加快。2月、3月增材製造PMI仍維持在50%以上，復甦動能持續。

On the regulatory front, we are pleased to see policies supporting consumption and consumer finance, including increased liquidity and credit supply to boost consumption. Against that backdrop, we delivered a solid domestic performance by leveraging our operational powers and tech strength.

監管方面，我們高興地看到支持消費和消費金融的政策，包括增加流動性和信貸投放，以促進消費。在此背景下，我們利用我們的營運能力和技術實力，在國內取得了穩健的業績。

Our China business achieved an increase in take rate from 3.3% to 3.4% sequentially, thanks to our strong partnerships with 114 funding partners that led to a 10-basis-point decline in funding cost. On the credit front, day one delinquency also improved by 10 basis points to 4.6% and our 30-day loan collection rate held steady at 89%.

由於我們與 114 家融資合作夥伴建立了牢固的合作關係，導致融資成本下降了 10 個基點，我們的中國業務的融資率從上一季的 3.3% 上升至 3.4%。在信貸方面，第一天拖欠率也改善了 10 個基點，至 4.6%，而我們的 30 天貸款回收率穩定在 89%。

Turning to our international markets. Although GDP growth in Indonesia and the Philippines showed marginally due to trade tensions and the tariff uncertainty, the overall economy remained resilient, bolstered by a large population with solid domestic consumption demand.

轉向我們的國際市場。儘管受貿易緊張和關稅不確定性影響，印尼和菲律賓的GDP成長略有放緩，但受龐大人口和強勁國內消費需求的支撐，整體經濟仍保持韌性。

Unmet credit demand for underserved communities in our foodprint market continues to support our strong growth trajectory. Our total international transaction volume exceeded RMB3 billion for the first time, up 36% year over year and 5% sequentially. Outstanding loan balance rose to RMB1.9 billion, up 46% year over year and 9% sequentially. Our cumulative international borrower base has now reached around 8 million Notably, our unique borrowers sold to a record high of 1.7 million in the first quarter, marking an impressive 106% year-over-year increase. As a result, revenue from international markets increased to RMB711 million, up 19.5% year over year.

我們食品足跡市場中服務不足社區的未滿足信貸需求持續支持我們強勁的成長軌跡。我們的國際交易總額首次突破30億元人民幣，較去年同期成長36%，較上季成長5%。貸款餘額增至人民幣19億元，較去年同期成長46%，較上季成長9%。我們的累計國際借款人基礎現已達到約 800 萬，值得注意的是，我們的第一季的獨立借款人數量創下了 170 萬的歷史新高，同比增長了 106%。其中，國際市場收入7.11億元，年增19.5%。

And for Indonesia, while we experienced some seasonal impact in March due to Ramadan, growth continued at a measured pace in the first quarter. Indonesia's consumer confidence index stayed above 120, maintaining its high level for nearly 2.5 years. Unemployment also reached its lowest level in the past 10 years during the first quarter. The change in the interest rate cap imposed at the end of 2024 has had a limited impact on our business as our average loan tenure in Indonesia is less than 6 months. Moving forward, we will closely monitor potential effects from macro economy and domestic uncertainties.

對於印尼來說，雖然 3 月受到齋月的一些季節性影響，但第一季的成長仍保持穩定。印尼消費者信心指數持續維持在120以上，連續近兩年半維持高點。第一季失業率也達到了十年來的最低水準。由於我們在印尼的平均貸款期限不到 6 個月，因此 2024 年底實施的利率上限變化對我們的業務影響有限。展望未來，我們將密切關注宏觀經濟和國內不確定性的潛在影響。

Our transaction volume in Indonesia reached RMB1.8 billion, up 10% year over year, while outstanding balance hit RMB1.2 billion, up 18% year over year. Our user base continued to expand with unique borrowers reaching 671,000, up 32% year over year.

在印尼，本行交易量達18億元，年增10%；餘額達12億元，年增18%。我們的用戶群持續擴大，獨立借款人達到 671,000 人，較去年同期成長 32%。

With the interest rate cap overhang resolved, we allocated more resource to marketing and focus on quality growth, driving an increase in our new borrowers to 312,000 this quarter, up 69% year over year and 4% sequentially, bringing cumulative borrowers in Indonesia to 5.3 million. We also continue to diversify into offline consumption loan under the multifinance license we acquired, broadening our reach to near-prime customers through scenarios like mobile phone and electronic purchase. All of these efforts drove solid growth in Indonesia amid the seasonal impact of Ramadan.

隨著利率上限問題得到解決，我們將更多資源投入行銷並專注於品質成長，推動本季新借款人增加至 31.2 萬人，年增 69%，季增 4%，使印尼的累計借款人達到 530 萬。我們也將繼續利用所獲得的多元金融牌照向線下消費貸款領域多元化發展，透過手機和電子購買等場景將業務範圍擴大到近優質客戶。所有這些努力都推動了印尼在齋戒月季節性影響下的穩健成長。

Now, let's zoom in on the Philippines, where we achieved rapid growth and profitability despite Q1 being the traditional low season. In the fourth quarter, our transaction volume in the Philippines reached RMB1.2 billion, up 118% year over year and 18% sequentially. Outstanding loan balance also grew to RMB693 million, up 142% year over year and 26% sequential increase. It accounted for 37% of our international loan balance compared with 23% in the first quarter of 2024. Our outstanding performance in the Philippines has been driven by several key factors, including ongoing improvements in risk management and deeper collaboration with major e-commerce platforms to expand buy now pay later offerings.

現在，讓我們把目光聚焦到菲律賓，儘管第一季是傳統的淡季，但我們仍然實現了快速成長和獲利。第四季度，我們在菲律賓的交易額達到12億元人民幣，較去年同期成長118%，較上季成長18%。未償還貸款餘額也增至 6.93 億元，年增 142%，較上季成長 26%。它占我們國際貸款餘額的 37%，而 2024 年第一季這一比例為 23%。我們在菲律賓的出色表現得益於幾個關鍵因素，包括風險管理的持續改進以及與主要電子商務平台的更深入合作，以擴大「先買後付」服務。

Our excellent asset quality has consistently attracted institutional funding partners. This quarter, we onboarded the Union Digital Bank as funding partner with several additional institutions in the pipeline. The percentage of loan facilitated by local financial institutions remained around 70% for the quarter. Buy now, Pay later business continued to grow, contributing 30% of Q1 volume, up from 19% in 2024. Going forward, we are confident of maintaining rapid transaction volume growth in the Philippines as we cement our rules in the country, further expand our funding sources and diversify our business models.

我們優良的資產品質一直吸引著機構融資夥伴。本季度，我們引入了聯合數位銀行作為融資合作夥伴，另有幾家機構正在籌備中。本季度，地方金融機構貸款佔比仍維持在70%左右。先買後付業務持續成長，佔第一季交易量的 30%，高於 2024 年的 19%。展望未來，隨著我們鞏固菲律賓的規則、進一步擴大資金來源並實現業務模式多樣化，我們有信心維持菲律賓交易量的快速成長。

Moving on to our financial metrics. This quarter's operational excellence resulted in a strong financial performance. Net revenue for the quarter reached RMB3.5 billion, marking a 10% increase year over year and a 1% increase sequentially despite the low season. Net income was RMB738 million, representing a 39% increase year over year and an 8% sequential increase. Meanwhile, sales and marketing expenses rose by 18% year over year to RMB530 million as we continue to strengthen efforts to acquire new borrowers of higher qualities in both China and international markets.

接下來討論我們的財務指標。本季的卓越營運帶來了強勁的財務業績。本季淨營收達35億元人民幣，年增10%，儘管處於淡季，仍比上一季成長1%。淨利為人民幣7.38億元，較去年成長39%，較上季成長8%。同時，由於我們持續加強在中國和國際市場上獲取更優質的新借款人，銷售和行銷費用較去年同期成長18%至人民幣5.3億元。

Leverage ratio, defined as risk-bearing assets divided by shareholders' equity improved to around 2.7 times. Our total liquidity position consisting of cash and cash equivalents plus short-term investments remained strong at RMB8.5 billion. Next, a brief update on our ongoing efforts to enhance shareholder value. 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 seventh annual dividend in the amount of USD0.277 per ADS, reflecting a EPS increase of 17% year over year.

槓桿率（定義為風險資產除以股東權益）提高至約 2.7 倍。我們的總流動資金狀況（包括現金、現金等價物以及短期投資）保持強勁，達到 85 億元人民幣。接下來，我們簡單介紹一下我們為提高股東價值所做的持續努力。自2018年以來，我們透過股票回購、分紅等形式持續為股東回報價值。最近，我們的董事會批准了第七次年度股息，每股美國存託憑證 0.277 美元，每股收益年增 17%。

This dividend was distributed on May 7, 2025, bringing our total dividend distribution to shareholders for fiscal year 2024 to USD70.3 million. In summary, strong execution of our local excellence and global outlook strategy drove continued growth in the first quarter of 2025 despite macro headwinds and seasonal softness. We remain confident in capitalizing on China's recovery while maintaining momentum in our international expansion. As such, we are reiterating our 2025 full-year revenue guidance of RMB14.4 billion to RMB15 billion, representing 10% to 15% growth year over year.

該股於 2025 年 5 月 7 日派發，使我們 2024 財年向股東發放的股利總額達到 7,030 萬美元。總而言之，儘管面臨宏觀逆風和季節性疲軟，但我們對本地卓越和全球視野策略的強力執行推動了 2025 年第一季的持續成長。我們仍有信心利用中國經濟復甦的機會，同時保持國際擴張的勢頭。因此，我們重申 2025 年全年營收預期為人民幣 144 億元至 150 億元，年增 10% 至 15%。

With that, I will now hand it over to Q&A. Operator, please continue.

好了，現在我將把時間交給問答環節。接線員，請繼續。

(Operator Instructions) And 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.

（操作員指示）為了今天電話會議所有參與者的利益，如果您希望用中文向管理層提問，請您用英語重複您的問題。

Cindy Wang, China Renaissance.

Cindy Wang，中華復興。

(spoken in Chinese) Thanks for taking my question and Congrats for the great first quarter results. So I have two questions here. First, with recent new regulation on loan facilitation in China, do you see any business impact from it? And what's our basis adjustment for this?

（中文）感謝您回答我的問題，並祝賀您第一季取得了出色的業績。所以我這裡有兩個問題。首先，中國最近發布了有關貸款便利化的新規定，您認為這會對業務產生什麼影響嗎？那麼我們對此的基礎調整是什麼呢？

And second, so given the recent US tariff uncertainty, have you seen any impact on the Indonesia or Philippines consumption loan demand since April? And how do you expect the international new loan volume in second quarter? Thank you.

其次，鑑於最近美國關稅的不確定性，自 4 月以來，您是否看到對印尼或菲律賓消費貸款需求有任何影響？您預計第二季國際新增貸款規模如何？謝謝。

Okay. Thanks, Cindy. I will take your first question, and Tim will take your second question. Well, your first question is about the new regulations. Yes, it's about the loan facilitation model and the new regulation was announced in April and will be effective in October.

好的。謝謝，辛蒂。我來回答你的第一個問題，提姆來回答你的第二個問題。嗯，您的第一個問題是關於新規定的。是的，這是關於貸款便利化模式的，新規定於四月公佈，並將於十月生效。

I think it's the first time to clearly define the core model of loan facilitation as the loans issued by the traditional financial institutions through the external third-party platforms. So it marks the official inclusion of the loan facilitation business in China's financial regulatory framework and to reference the regulatory authorities formal recognition across the sector. Meanwhile, we noted that the regulations were just following the regulators' focus on consumer finance. We believe it's a positive signal to promote the healthy development of the industry and then to encourage the increase in supply of consumer finance products and boost the consumers' confidence. And if we look at some details in the regulation, we can find the final version to be relatively moderate stance compared with the draft ones as the focus is more on qualitative aspects than the quantitative ones.

我認為這是第一次明確貸款便利的核心模式是傳統金融機構透過外部第三方平台發放的貸款。這標誌著信貸撮合業務正式納入我國金融監理框架，並獲得監理機關的正式認可。同時，我們也注意到，此次推出的監理規定也正是監理機關對消費金融的關注。我們認為這是一個正面的訊號，有助於促進產業的健康發展，進而鼓勵增加消費金融產品的供給，增強消費者的信心。如果我們看一下法規中的一些細節，我們會發現最終版本與草案相比立場相對溫和，因為更注重定性方面而不是定量方面。

And according to the regulation, banks now are required to implement a white list management system for those cooperative Internet platforms. And the financing costs are clearly defined with all revenue costs should be included and disclosed in the contracts. So we think it will promote the industry's compliance level and benefit those leading platforms, which have the adequate capital, the strong risk management capabilities and high compliance standards. So in conclusion, we believe the overall impact of the new regulation is manageable and it's very -- it's crucial for the long-term development of the industry, okay?

而根據規定，銀行現在需要對合作的網路平台實施白名單管理制度。並且明確規定了融資成本，所有收入成本都應包括並在合約中揭露。因此我們認為這將提升行業的合規水平，並使那些擁有充足資本、強大風險管理能力和高合規標準的領先平台受益。所以總而言之，我們認為新法規的整體影響是可控的，而且對於產業的長期發展至關重要，好嗎？

Cindy, I will answer the second question. Yes, we do have observed the global trade tensions, have introduced certain economic challenges to Southeast Asia. Some of the trade-oriented economies in the region are encountering slower-than-expected economic growth. And right now, many countries are currently engaged in negotiations with the United States to secure favorable tariff rates. And this year, the macroeconomic trend of Indonesia and the Philippines are different.

Cindy，我來回答第二個問題。是的，我們確實觀察到全球貿易緊張局勢為東南亞帶來了一定的經濟挑戰。該地區一些貿易導向型經濟體的經濟成長速度低於預期。目前，許多國家正在與美國進行談判，以獲得優惠的關稅稅率。而今年以來，印尼和菲律賓的宏觀經濟走勢有所不同。

In the first quarter, Indonesia's GDP growth rate decreased to 4.9%, slightly below the 5.2% target. And PMI in April declined by 11% month-on-month to 46.7%. While in the Philippines, GDP growth came in at 5.4%, up slightly by 0.1% from previous quarter and keeping it among Asia fastest-growing economies. Domestic demand continues to drive the economy with consumer spending making up nearly 80% of GDP in Q1. Fortunately, our customers are mainly consumers and the loan demands are less affected by the trade war.

一季度，印尼GDP成長率降至4.9%，略低於5.2%的目標。4月PMI為46.7%，季減11%。菲律賓GDP成長率為5.4%，較上一季略為上升0.1個百分點，繼續名列亞洲成長最快的經濟體。國內需求持續推動經濟發展，第一季消費支出佔 GDP 的近 80%。幸運的是，我們的客戶主要是消費者，貸款需求受貿易戰的影響較小。

On the ground, we've seen some seasonal softness in Indonesia. Remittance slowed things down a little bit, but volume were still up nearly 10% year over year. We expect a nice rebound in Q2 with sequential growth. In the Philippines, it's been a strong start in Q1. Volume jumped 18% quarter on quarter.

在實地，我們看到印尼出現了一些季節性的疲軟現象。匯款速度略為放緩，但匯款量仍年增近 10%。我們預計第二季將出現良好反彈並實現連續成長。菲律賓第一季開局強勁。交易量較上季成長 18%。

And in Q2, we are projecting another solid quarter with good sequential growth. Thank you, Cindy.

我們預計第二季將再創佳績，實現連續良好成長。謝謝你，辛蒂。

Alex Ye, UBS.

瑞銀的 Alex Ye。

(spoken in Chinese) So I have two questions. First one is on the loan application demand trend in China in the past two months. And do you plan to tighten the credit approval preemptively given the rising macro uncertainty? And how would that impact your full year's loan volume outlook?

（用中文說）所以我有兩個問題。第一個是過去兩個月中國貸款申請需求趨勢。鑑於宏觀不確定性的增加，您是否計劃先發制人地收緊信貸批准？這會對你們全年的貸款量前景產生什麼影響？

The second question is regarding the drivers for the improved take rate for the China business and the outlook ahead. Thank you.

第二個問題是關於中國業務接受率提高的驅動因素以及未來前景。謝謝。

Thanks, Alex. I will take your questions. Your first question is about the credit demand in April and May. We have delivered solid results in the first quarter. And in terms of the loan application demand, we observed the rate holding steady in April and May.

謝謝，亞歷克斯。我將回答你們的問題。你的第一個問題是關於4月和5月信貸需求的情況。我們在第一季取得了穩健的業績。從貸款申請需求來看，我們觀察到4月和5月的利率維持穩定。

While April, we saw a slight month-over-month decline and rebounded in May has surpassed the March levels. And historically, the main demand tends to be softened slightly due to the seasonal holidays. But this year, we are seeing the moderately better demand. Yes, so that's about the application rate. And in terms of the credit performance, yes, it showed steady improvement in the first quarter and have remained stable in the second quarter so far.

4月環比略有下降，5月出現反彈，已超過3月的水平。從歷史上看，主要需求往往會因季節性假期而略有減弱。但今年，我們看到需求略有改善。是的，這就是申請率。就信貸表現而言，是的，第一季信貸表現穩定改善，第二季迄今仍保持穩定。

As the macro economy still has a lot of uncertainties and given the moderately supportive demand, we have selectively adjusted our risk appetite for marginal assets. And meanwhile, we will closely monitor the macroeconomic trends and the industry development and will dynamically balance between the risk management and the business growth. The performance of April and May, the transaction volumes indicate that a healthy growth trajectory has emerged. So given our current business performance and operation capabilities, we are confident in achieving our guidance of 10% to 15% full-year revenue growth, okay? So that's about the first question.

由於宏觀經濟仍存在諸多不確定性，且需求支撐力度適中，我們選擇性地調整了邊際資產的風險偏好。同時，我們將密切關注宏觀經濟走勢和產業發展，動態平衡風險管理和業務成長。從四月和五月的表現來看，交易量已經呈現出健康的成長軌跡。那麼以我們現在的經營業績和營運能力來看，我們有信心實現全年營收成長10%到15%的預期，好嗎？這就是第一個問題。

And your second question is about the take rate in our domestic business. Yes. In the first quarter, our take rate in China increased by 10 basis points sequentially, primarily driven by several factors: number one, we further improved the funding cost by 10 basis points quarter-over-quarter; and number two, our loan tenure extended slightly from 8 months to 8.2 months with the improved risk performance. Currently, both risk metrics and funding costs are at historical favorable levels. And looking ahead, we expect that both will remain stable.

您的第二個問題是關於我們國內業務的接受率。是的。一季度，我們在中國的貸款利率環比上升了10個基點，主要受以下幾個因素推動：第一，我們進一步將融資成本環比降低了10個基點；第二，隨著風險績效的提高，我們的貸款期限從8個月小幅延長至8.2個月。目前，風險指標和融資成本均處於歷史有利水準。展望未來，我們預期兩者都將保持穩定。

So it will stabilize the take rate at current level. We will continue to drive high-quality growth in China market with refined operations and management.

因此它將使接受率穩定在當前水平。我們將繼續以精細化的營運和管理推動中國市場的高品質成長。

Yada Li, CICC.

中金公司，李亞達。

(spoken in Chinese) Then I'll do the translation.

（中文）那我來翻譯吧。

I was wondering if you could give more color on the latest business updates regarding the international expansion. Any guidance for revenue and profit in 2025? And besides Indonesia and Philippines, could you elaborate more about the development of other regions as well? That's all. Thank you.

我想知道您是否可以詳細介紹一下有關國際擴張的最新業務更新。對 2025 年的收入和利潤有何指導？除了印尼和菲律賓之外，您能否詳細介紹其他地區的發展？就這樣。謝謝。

Okay. Thanks, Yada. I will take your question. Well, for international markets, despite the uncertainties in the macroeconomic environment, with our proven technological capabilities and the risk control expertise across those diverse markets, it enabled us to deliver a strong first quarter performance. The transaction volume in our international market surpassed RMB3 billion for the first time in this quarter with a year-over-year increase of 36% and a quarter-over-quarter increase of 5%.

好的。謝謝，Yada。我回答你的問題。對於國際市場而言，儘管宏觀經濟環境存在不確定性，但憑藉我們成熟的技術能力和在不同市場中的風險控制專業知識，我們在第一季取得了強勁的業績。本季，我行國際市場交易額首次突破30億元，較去年成長36%，較上季成長5%。

And the number of unique borrowers reached a historical high at 1.7 million with a triple-digit year-over-year growth. And the revenue from our international market boosted to RMB711 million, marking a year-over-year increase of nearly 20% and accounting for 20.4% of total revenue. And in terms of the revenue and the profit, we maintain our full year revenue growth target of 10% to 15%. The contribution from international markets is expected to increase to 25%. That indicates the growth rate of international revenue will outpace the overall growth.

獨立借款人數達到歷史最高水準170萬，較去年同期成長三位數。其中，國際市場收入達7.11億元，較去年成長近20%，佔總營收的20.4%。在營收和利潤方面，我們維持全年營收成長10%至15%的目標。預計國際市場的貢獻將增至25%。這表明國際收入的成長率將超過整體成長率。

In the first quarter, Indonesia and the Philippines collectively achieved a modest profit aligned with our projection. And looking ahead, we expect they will generate a minimum net profit of $10 million in 2025.

第一季度，印尼和菲律賓整體實現了適度獲利，符合我們的預測。展望未來，我們預計到 2025 年他們將實現至少 1000 萬美元的淨利潤。

For our expansion into the new markets, we have mentioned in the early earnings call, we shared that we recently obtained the banking finance company license in Pakistan. And operation in Pakistan is still in an early stage. Meanwhile, we were actively exploring the new countries to support our long-term strategy.

對於我們向新市場的擴張，我們在早期的收益電話會議上提到，我們最近在巴基斯坦獲得了銀行金融公司執照。而在巴基斯坦的業務仍處於早期階段。同時，我們也積極探索新的國家來支持我們的長期策略。

That means we will -- we aim to deliver at least 15% revenue contribution from international markets by 2030. We would be happy to share if there are any updates.

這意味著我們的目標是到 2030 年從國際市場貢獻至少 15% 的收入。如果有任何更新，我們很樂意分享。

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

由於目前沒有其他問題，我現在想將電話轉回給公司進行結束語。

Okay. Thank you once again for joining us today. If you have any further questions, please feel free to contact us and our Investor Relations team. Thank you so much.

好的。再次感謝您今天加入我們。如果您有任何其他問題，請隨時聯繫我們和我們的投資者關係團隊。太感謝了。

Thank you. This concludes this conference call. You may now disconnect your lines. Thank you.

謝謝。本次電話會議到此結束。現在您可以斷開線路了。謝謝。