FinVolution Group (FINV) 2025 Q2 法說會逐字稿

Hello, ladies and gentlemen. Thank you for participating in the second-quarter 2025 earnings conference call for FinVolution Group. (Operator Instructions)

女士們、先生們，大家好。感謝您參加 FinVolution Group 2025 年第二季財報電話會議。（操作員指示）

Today's conference call is being recorded. I will now turn the call over to your host, Yam Cheng, Head of Capital Markets for the company. Yam, please go ahead.

今天的電話會議正在錄音。現在我將把電話轉給主持人、公司資本市場主管 Yam Cheng。Yam，請繼續。

Thank you, Rocco. Hi, everyone. Welcome to our second-quarter 2025 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 e-mail alerts by visiting the IR section of our website at ir.finvgroup.com.

謝謝你，羅科。大家好。歡迎參加我們的 2025 年第二季財報電話會議。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。您可以造訪我們網站 ir.finvgroup.com 的 IR 部分下載收益報告並註冊公司的電子郵件提醒。

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 section. During this call, we will be referring to several non-GAAP financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For information about these non-GAAP measures and reconciliation of GAAP measures, please refer to our earnings press release.

我們的執行長李鐵正先生和財務長徐家元先生將以準備好的發言開始電話會議，並以問答環節結束。在本次電話會議中，我們將參考幾個非公認會計準則財務指標來審查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 指標和 GAAP 指標調整的信息，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 provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties are included in the company's filings with the US Securities and Exchange Commission.

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。

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Finally, we posted a presentation on our IR website, providing further details of our results for the quarter.

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 網站上發布了一份演示文稿，提供了本季業績的更多詳細資訊。

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

現在我將把電話轉給我們的執行長李鐵政先生。鐵錚，請說。

Thanks, Yam. Hello, everyone. Welcome to our earnings call. Following a solid first-quarter of 2025, I'm pleased to share that FinVolution sustained its healthy momentum in the second quarter. Supported by our robust growth in our international business and steady performance in China, net revenue reached RMB3.6 billion, up 13% year over year, driven by a 10% increase in transaction volume in China and a 39% surge in international transaction volume.

謝謝，Yam。大家好。歡迎參加我們的收益電話會議。繼 2025 年第一季表現穩健之後，我很高興地告訴大家，FinVolution 在第二季度保持了健康的發展勢頭。受惠國際業務強勁成長及中國市場穩健表現，淨營收為36億元，較去年同期成長13%，其中中國市場交易量成長10%，國際市場交易量成長39%。

Net income also showed solid growth reaching RMB751 million, representing an increase of 36% year over year and 2% quarter over quarter. Since our transition to institutional funding model in 2021, we have now delivered 18 consecutive quarters of year-over-year growth in both transaction volume and revenue, a strong testament to our resilient business fundamentals in today's fast-changing macro landscape.

淨利也呈現穩健成長，達到人民幣7.51億元，較去年成長36%，較上季成長2%。自 2021 年轉向機構融資模式以來，我們的交易量和收入已連續 18 個季度同比增長，這有力地證明了我們在當今快速變化的宏觀環境下具有韌性的業務基本面。

As discussed in last quarter's earnings call, regulation in China's consumer finance sector have been evolving. With the implementation of the new regulation of the Internet loan facilitation business in October. We believe it may have implication to the loan mix and the risk profile of the assets in the industry, and we are closely monitoring the latest development and the dynamics of the sector.

正如上個季度的收益電話會議所討論的那樣，中國消費金融領域的監管一直在不斷發展。隨著10月份網路借貸​​業務新規的實施。我們認為這可能對行業的貸款組合和資產風險狀況產生影響，我們正在密切關注該行業的最新發展和動態。

We maintain active dialogue with our funding partners, which expanded from 114 to 119 in the second quarter to maintain relatively stable funding supply and prepare in advance for the potential impacts on our transaction volumes and risk metrics.

我們與資金合作夥伴保持積極對話，第二季度資金合作夥伴從 114 個擴大到 119 個，以保持相對穩定的資金供應，並提前為交易量和風險指標的潛在影響做好準備。

Our risk infrastructure tested across multiple economic and regulatory cycles positions us well to adapt swiftly and effectively to these changes. In the long run, we view that these measures will ultimately foster more sustainable growth across the sector and benefit the lending platform like ours. Part of our resilient business hinged on the international operations, which offer valuable diversification benefit and growth in the second quarter.

我們的風險基礎設施經過了多個經濟和監管週期的測試，使我們能夠迅速有效地適應這些變化。從長遠來看，我們認為這些措施最終將促進整個產業更永續的成長，並使像我們這樣的借貸平台受益。我們的業務彈性部分取決於國際業務，這為第二季帶來了寶貴的多元化效益和成長。

International transaction volume increased 39% year over year to RMB3.2 billion, and loan balance rose 50% to RMB2.1 billion. Notably, our international operations contributed 22% of net revenue, up from 18% in the same period last year.

國際交易量較去年同期成長39%至32億元人民幣，貸款餘額較去年同期成長50%至21億元。值得注意的是，我們的國際業務貢獻了22%的淨收入，高於去年同期的18%。

Underpinning the growth is our expanding customer base. We onboarded 1.6 million new borrowers during the second quarter, a 96% year-over-year increase. This marked our fourth consecutive quarter surpassing 1 million new borrowers.

我們不斷擴大的客戶群是我們成長的基礎。我們在第二季吸收了 160 萬名新借款人，年增 96%。這是我們連續第四個季度新增借款人數量超過 100 萬人。

Thanks to our effective AI-powered marketing strategy and diverse user acquisition channels in China, the transaction volume from new borrowers reached RMB7.1 billion, up 20% year over year in our international markets. We attached 1.1 million new borrowers, up 126% year over year.

由於我們在中國有效的人工智慧行銷策略和多樣化的用戶獲取管道，國際市場新增借款人交易達到人民幣71億元，年增20%。我們新增了 110 萬借款人，年增 126%。

New borrower growth from our international markets also outpaced that in China for the fifth consecutive quarter curated by our diversified service we provide in the ecosystem through partnership with leading e-commerce and technology platforms. We expect this trend to continue.

透過與領先的電子商務和技術平台合作，我們在生態系統中提供多樣化的服務，我們國際市場的新借款人成長也連續第五個季度超過中國。我們預計這一趨勢將會持續下去。

On the technology front, we continue to leverage AI in our risk management. We have built effective defenses against sophisticated AI fraud like deepfakes, achieving 98.8% detection accuracy. Our proprietary visual AI analyze background patterns, document (inaudible) and text level anomalies, resulting in 95% detection of digital artifacts in forged images. We combine this with multilayered verification, including dynamic facial recognition, randomized voice checks and real-time video authentication.

在技​​術方面，我們繼續利用人工智慧進行風險管理。我們已經針對深度偽造等複雜的人工智慧詐欺建立了有效的防禦措施，檢測準確率達到 98.8%。我們專有的視覺 AI 可以分析背景模式、文件（聽不清楚）和文字層級異常，從而實現 95% 的偽造影像數位偽影偵測率。我們將其與多層驗證相結合，包括動態臉部辨識、隨機語音檢查和即時視訊認證。

Looking ahead, we are evolving from single mode to multimode detection that simultaneously analyze video and audio, keeping us ahead against evolving financial fraud. ESG remains core to our long-term strategy. We published our Seventh Annual ESG Report in July, underscoring our unwavering commitment to sustainable inclusive financial.

展望未來，我們將從單一模式發展到同時分析視訊和音訊的多模式檢測，使我們在應對不斷演變的金融詐欺方面保持領先地位。ESG 仍然是我們長期策略的核心。我們在 7 月發布了第七份年度 ESG 報告，強調了我們對永續普惠金融的堅定承諾。

Throughout 2024, we made substantial progress by combining technology innovation, process improvements and ecosystem partnerships, particularly in enhancing our anti-fraud capabilities and optimizing service quality. These efforts have meaningful advanced consumer protection with our intelligent fraud prevention system, now detecting over 7,000 suspicious activities daily.

2024年，我們透過結合技術創新、流程改進和生態系統合作夥伴關係取得了實質進展，特別是在增強反詐騙能力和優化服務品質方面。這些努力透過我們的智慧詐欺防制系統為消費者提供了有意義的先進保護，目前每天可偵測到超過 7,000 起可疑活動。

In 2024, we blocked more than 26,000 fraud attempts, protecting financial institutions from potential losses over RMB300 million, while maintaining 98% user satisfaction rate. Also worth noting, FinVolution Group secured two prestigious honors at the FinanceAsia 2025 Award in June, the Best Strategic Initiative award for the Philippines, as well as the Most Innovative Use of Technology Award for Mainland China. This recognition affirms the positive value our fintech solutions has brought to financial institutions across multiple markets.

2024年，我們攔截了超過2.6萬起詐欺行為，保護金融機構避免了超過3億元的潛在損失，同時維持了98%的用戶滿意率。同樣值得注意的是，FinVolution集團在6月的FinanceAsia 2025大獎中榮獲兩項殊榮，分別是菲律賓最佳戰略舉措獎和中國大陸最具創新技術使用獎。這項認可肯定了我們的金融科技解決方案為多個市場的金融機構帶來的正面價值。

Finally, an update on our capital market activity. We completed a USD150 million convertible bonds offering in June, the first capital market transaction since our IPO in 2017. The funding will support our strategic priorities, accelerating international expansion and lowering capital cost. The transaction also helped us diversify our investor base and deepen engagement with a broader group of investors. We are encouraged by the positive reception from the convertible bond investors as well as the improvement in our stock liquidity following the transaction.

最後，更新一下我們的資本市場活動。我們於 6 月完成了 1.5 億美元可轉換債券發行，這是我們自 2017 年 IPO 以來的首筆資本市場交易。這筆資金將支持我們的策略重點，加速國際擴張並降低資本成本。這項交易也幫助我們實現了投資者基礎的多元化，並加深了與更廣泛投資者群體的聯繫。我們對可轉換債券投資者的正面反應以及交易後股票流動性的改善感到鼓舞。

In summary, our second quarter performance reflects outstanding execution of our local excellence global outlook strategy. We are encouraged by the resilience of our China business and the strengthening of our international business. Bolstered by ongoing investments in technology, customer acquisition and international expansion, we are well positioned to continue driving sustainable growth and delivering long-term value.

總而言之，我們第二季的業績反映了我們本地卓越全球視野策略的出色執行。我們對於中國業務的韌性和國際業務的加強感到鼓舞。憑藉在技術、客戶獲取和國際擴張方面的持續投資，我們有能力繼續推動永續成長並實現長期價值。

Now, I will hand the call over to our CFO, Jiayuan Xu, for a closer look at our financials.

現在，我將把電話交給我們的財務長徐家元，讓他仔細審查我們的財務狀況。

Thank you, Tiezheng. Hello, everyone. Let me go through our key results for the second quarter. I will begin with our performance in China. Despite global trade tension and the macro uncertainty, China's economy demonstrated resilience that GDP expanded 5.2% year over year, exceeding market expectations.

謝謝你，鐵錚。大家好。讓我來介紹一下我們第二季的主要業績。我先從我們在中國的表現開始。儘管全球貿易緊張，宏觀經濟存在不確定性，但中國經濟仍表現出韌性，國內生產毛額年增5.2%，超出市場預期。

Also, consumer sentiment improved on the back of a 4.8% increase in overall spending in June. It is encouraging to see continued regulatory support to increase credit supply for consumer finance to boost the economy. Against this backdrop, we delivered solid results in China. Our take rate remained stable at 3.4%, while the average loan tenure extended slightly to 8.3 months.

此外，由於 6 月整體支出成長 4.8%，消費者信心有所改善。令人鼓舞的是，監理機關持續支持增加消費性金融信貸供應，以提振經濟。在此背景下，我們在中國取得了穩健的表現。我們的利率維持穩定在 3.4%，而平均貸款期限略微延長至 8.3 個月。

Risk metrics stayed broadly stable with day one delinquency rate rising 10 basis points quarter-over-quarter to 4.7%, while 30-day collection rate remaining steady at 89%. We maintained our prudent approach to provisioning, supported by a healthy provision coverage ratio of 543%.

風險指標基本上保持穩定，首日拖欠率較上月上升 10 個基點至 4.7%，而 30 天收款率維持穩定在 89%。我們維持了審慎的撥備方法，撥備覆蓋率達到 543% 的健康水準。

Turning to our international business. We drove continued growth despite the spillover impact from Ramadan in early Q2. Domestic macro indicators in our key Southeast Asian markets were largely stable, while the underlying consumer demand for credit remained strong. Total international transaction volume grew 39% year over year and 6% quarter over quarter, surpassing RMB3 billion for the second consecutive quarter, while outstanding loan balance rose to RMB2.1 billion, up 50% year over year and 30% sequentially.

轉向我們的國際業務。儘管第二季初受到齋月的溢出影響，我們仍繼續保持成長。我們重點關注的東南亞市場的國內宏觀指標基本穩定，消費信貸需求依然強勁。國際交易總額較去年同期成長39%，較上季成長6%，連續第二季突破30億元；貸款餘額增加至21億元人民幣，較去年同期成長50%，較上季成長30%。

Unique borrowers rose by an impressive 122% year over year to reach 2.3 million, breaking the 2 million mark for the first time. As a result, revenue from international markets increased to RMB797 million, up 42% year over year.

獨立借款人數量年增 122%，達到 230 萬，首次突破 200 萬大關。其中，國際市場收入增至7.97億元，年增42%。

In Indonesia, while macroeconomic conditions showed slightly moderation amid travel tensions, our business demonstrated strong resilience. We maintained the momentum by offering longer tenured products to high credit quality borrowers, which drove better asset quality and improving take rate.

在印度尼西亞，儘管宏觀經濟狀況因旅遊緊張而略有緩和，但我們的業務表現出強勁的韌性。我們透過向高信用品質借款人提供期限較長的產品來保持這一勢頭，從而提高了資產品質並提高了接受率。

We also continue to expand partnership with local platforms to acquire new borrowers. These initiatives delivered solid results. Loan volume grew 9% year over year with outstanding loan balance increasing 25% to RMB1.3 billion.

我們也繼續擴大與當地平台的合作以獲取新的借款人。這些措施取得了實實在在的成果。貸款額年增9%，未償還貸款餘額成長25%，達13億元人民幣。

One important and encouraging update on Indonesia, at the end of July, the OJK, Indonesia's Financial Services Authority issued a new circular that keeps the daily fee cap for consumer funding unchanged from at 2024 level. This is a welcome development because it effectively replaced the previous policy, which would have required a 0.1% annual reduction in the fee cap through 2026.

印尼的一個重要且令人鼓舞的最新消息是，7 月底，印尼金融服務管理局 (OJK) 發布了一份新通告，將消費者融資的每日費用上限維持在 2024 年的水平不變。這是一個值得歡迎的進展，因為它有效地取代了先前的政策，先前的政策要求到 2026 年每年將費用上限降低 0.1%。

This decision provides much needed stability. It addresses concerns that further fee cuts could pressure revenue and profitability, and it ensures a healthy, more sustainable environment for our business going forward. We see this as a strong vote of confidence in the industry and a positive step for our long-term growth in Indonesia.

這項決定提供了急需的穩定性。它解決了進一步削減費用可能對收入和盈利能力帶來壓力的擔憂，並確保了我們未來業務的健康、更永續的環境。我們認為這是對產業的強烈信任，也是我們在印尼長期發展的積極一步。

Our business in the Philippines continued to outperform this quarter. Business activity in the Philippines remained high nationwide with an average PMI of 50.7. Thanks to ongoing regulatory support for digital finance innovation as well as our brand awareness through effective marketing strategy, our loan volume more than doubled year over year to RMB1.4 billion, accounting for 45% of our international business.

本季我們在菲律賓的業務持續表現出色。菲律賓全國商業活動維持高位，平均PMI為50.7。由於監管機構對數位金融創新的持續支持，以及我們透過有效的行銷策略提升品牌知名度，我們的貸款額年增率逾一倍，達到人民幣14億元，占我們國際業務的45%。

Buy Now, Pay Later products contributed 32% of volume, up from 30% in the same period of last year, driven by our collaboration with TikTok Shop and efforts to expand new platform partnerships. Moving forward, we are optimistic over the transaction volume growth in the Philippines as we deepen our market presence, broaden our funding partnerships and diversify our business offerings to capture emerging opportunities.

「先買後付」產品貢獻了 32% 的銷量，高於去年同期的 30%，這得益於我們與 TikTok Shop 的合作以及拓展新平台合作夥伴關係的努力。展望未來，隨著我們深化市場影響力、拓寬融資合作夥伴關係並實現業務多元化以抓住新興機遇，我們對菲律賓的交易量成長充滿信心。

Overall, our strong operational performance this quarter produced impressive financial results across the board. Net revenue reached RMB3.6 billion, reflecting robust year-over-year growth of 30% and a sequential increase of 3%. Net income also saw significant momentum, rising 36% year over year to RMB751 million, underscoring our ability to drive profitable growth.

總體而言，本季我們強勁的營運表現帶來了令人印象深刻的財務表現。淨營收達人民幣36億元，較去年成長30%，較上季成長3%。淨利潤也呈現強勁成長勢頭，較去年同期成長36%至人民幣7.51億元，凸顯了我們推動獲利成長的能力。

Our financial position remains solid with RMB7.9 billion in cash and short-term investments, providing ample liquidity to support our strategic priorities. We continue to maintain a prudent balance sheet with a leverage ratio of 2.6 times, defined as risk-bearing loans to shareholders' equity.

我們的財務狀況依然穩健，擁有79億元人民幣的現金和短期投資，為支持我們的策略重點提供了充足的流動性。我們繼續保持審慎的資產負債表，槓桿率為 2.6 倍，即風險承擔貸款與股東權益之比。

Finally, we continued returning capital to shareholders and have repurchased USD63.8 million of shares in the first half of 2025, including repurchase made in conjunction with the convertible bond issuance in June, the CB proceeds to fund our international business will optimize capital cost and accelerate expansion. In short, we maintain our strong growth trajectory through disciplined execution of our local excellence and global outlook strategy.

最後，我們繼續向股東返還資本，並於 2025 年上半年回購了 6,380 萬美元的股票，其中包括 6 月份發行可轉換債券時進行的回購，用於資助我們國際業務的可轉換債券收益將優化資本成本並加速擴張。簡而言之，我們透過嚴格執行本地卓越和全球視野策略來維持強勁的成長軌跡。

We remain confident in our ability to adapt quickly to the evolving regulatory environment in China while driving growth in untapped international markets. We believe the new regulation may foster a healthy development of the industry and benefit leading players' market share in the long-term.

我們堅信，我們有能力迅速適應中國不斷變化的監管環境，同時推動尚未開發的國際市場的成長。我們相信，新規將促進產業的健康發展，並有利於領先企業的長期市場份額。

As such, we are reiterating our full-year 2025 revenue guidance of RMB14.4 billion to RMB15 billion or 10% to 15% year-over-year growth. With that, I will now open the call for questions. Operator, please continue.

因此，我們重申 2025 年全年營收預期為 144 億元至 150 億元，至 10% 至 15%。現在，我開始提問。接線員，請繼續。

(Operator Instructions) Cindy Wang, China Renaissance.

（操作員指示） Cindy Wang，中華復興。

Congrats for the good result in second quarter. So I have two questions here. First, regarding new regulation on loan facilitation in China, how do you see the impact to your business? Would you slow down new loan volume in second half to adjust loan structure and ensure asset quality?

恭喜第二季取得良好業績。所以我這裡有兩個問題。首先，關於中國貸款便利化的新規定，您認為這對您的業務有何影響？下半年是否會放慢新增貸款速度，調整貸款結構，保證資產品質？

Second, the new loan volume in international market in second quarter maintained rapid growth. What is the current run rate in July and August? And is there any target customer profile change in Indonesia and Philippines in the second half?

二是第二季國際市場新增貸款維持較快成長。七月和八月的目前運行率是多少？下半年印尼和菲律賓的目標客群有變化嗎？

Okay. Thanks, Cindy. Yeah, I will take your questions. Your first question is about the new regulation in China. The new regulations on Internet loan facilitation business will come into effect in October 1.

好的。謝謝，辛蒂。是的，我會回答你的問題。您的第一個問題是關於中國的新規定。網路貸款業務新規則將於10月1日起施行。

We think it will provide more order to the industry and in the long run, promote the consolidation. There might be some impact on the different types of assets right now. As for those high-priced assets, the funding supply has reduced. And the funding partners now become more cautious and selective on the cooperation with the platforms. They'd like to choose the platform which can bring the good economics or have the manageable risk reward.

我們認為這將為產業帶來更多秩序，從長遠來看，促進整合。目前，不同類型的資產可能會受到一些影響。對於那些高價資產，資金供應已經減少。而融資方在與平台的合作上也變得更加謹慎和挑剔。他們願意選擇能夠帶來良好經濟效益或具有可控風險回報的平台。

And for those high-quality assets where our core business is, liquidity and funding costs remain stable. So the tightening of the industry liquidity has introduced some challenges, but the overall impact to us remains manageable for three reasons. First, we have the know-hows for acquiring and operating the high-quality assets, we have long been focusing on the sourcing and the pricing high-quality assets from the information fees channel. Now the funding market shift to the high-quality assets, we should benefit.

對於我們核心業務所在的優質資產，流動性和融資成本保持穩定。因此，產業流動性收緊帶來了一些挑戰，但由於三個原因，對我們的整體影響仍然是可控的。第一，我們擁有獲取和經營優質資產的專業知識，我們長期專注於從資訊費用管道尋找和定價優質資產。現在融資市場正在向優質資產轉移，我們應該從中受益。

And second, as proven in the previous credit cycle, we have been disciplined on risk management. Thanks to the efforts on the high-quality customer strategy and continuously build the competitive capabilities, we saw the delinquency rate staying at a reasonable and manageable range. We will continue to dynamically balance the risk exposure and the transaction volume as we step into the second half year. So we expect maybe the regulatory uncertainty will continue to weigh on the industry.

其次，正如上一輪信貸週期所證明的那樣，我們在風險管理方面一直非常嚴格。透過實施優質客戶策略，持續提升競爭力，拖欠率維持在合理可控範圍內。進入下半年，我們將繼續動態平衡風險敞口和交易量。因此我們預計監管的不確定性可能會繼續給該行業帶來壓力。

And third, our international business continued to be a growth driver and more important resource -- a source of our diversification to our business. In the second quarter, as transaction volume increased by around 40% year over year and the revenue contribution surpassed 22%. We also see a better profitability trajectory than expected in our international markets. This structural growing trend in international markets provide a cushion to the short-term volatility in China market.

第三，我們的國際業務持續成為成長動力和更重要的資源—我們業務多元化的來源。第二季度，交易量較去年同期成長約40%，營收貢獻超過22%。我們也看到國際市場的獲利軌跡比預期好。國際市場的這種結構性成長趨勢為中國市場的短期波動提供了緩衝。

So in conclusion, we expect maybe a low single-digit quarter-over-quarter decline in the transaction volume in the China market, but with a reasonable fluctuation in risk levels and largely stable take rate. So we are maintaining our full year revenue growth guidance of 10% to 15%, subject to the industry not significantly different in the coming quarters.

因此，總而言之，我們預期中國市場的交易量可能會較上季低個位數下降，但風險水準將出現合理波動，且接受率基本上穩定。因此，我們維持全年營收成長 10% 至 15% 的預期，前提是未來幾季產業不會出現顯著變化。

And your second question is about our overseas business. Well, as we mentioned in the first half of 2025, our international markets continued its very strong momentum. The transaction volumes was up nearly 40% year over year and 11% quarter over quarter.

您的第二個問題是關於我們海外業務的。正如我們在 2025 年上半年提到的那樣，我們的國際市場繼續保持強勁勢頭。交易量較去年同期成長近40%，較上季成長11%。

And I'm very happy to share that this strong trend here is steady right into the July and August. Based on our current trend, we are projecting both Indonesia and the Philippines to deliver the solid double-digit quarterly growth again in Q3.

我很高興地告訴大家，這種強勁的趨勢一直持續到七月和八月。根據我們目前的趨勢，我們預計印尼和菲律賓將在第三季再次穩健的兩位數季度成長。

As for Indonesia, the most important update is on regulation. In the later July, the OJK confirmed its interest -- its new interest rate policy. It will effectively maintain the interest rate cap as which we have been operating since the end of last year. The directive issued in 2023 was to reduce the interest rate cap gradually from 0.4% to 0.1% in 2026.

對於印尼來說，最重要的更新是監管方面的。7 月下旬，OJK 確認了其新的利率政策。這將有效維持我們自去年年底以來一直實施的利率上限。2023 年發布的指令是將利率上限從 0.4% 逐步降低至 2026 年的 0.1%。

With the latest circular, the reduction is not revoked. This removal of the uncertainty is a huge positive for the entire industry and allows us to plan for the long term with much greater clarity.

根據最新通告，減持決定並未撤銷。消除不確定性對整個產業來說是一個巨大的利好，使我們能夠更清晰地規劃長期計畫。

And in terms of the business, we are continuing to deliver the diversified product offerings. As for our online cash loan, we proactively launched marketing initiatives to go after better quality customers in the first half year. For example, we offered attractive terms and repayment flexibility to those high-quality customers to appeal to customer base we are able to reach.

就業務而言，我們將繼續提供多樣化的產品。就網路現金貸而言，上半年我們積極進行行銷活動，爭取更優質的客戶。例如，我們為優質客戶提供有吸引力的條款和還款靈活性，以吸引我們能夠接觸到的客戶群。

And for the offline front, we have acquired the motor finance license last year. We are expanding into the offline installment scenarios like the smartphones, motor bikes, and home appliance. We have partnered with the major Chinese electronic brands and the local brands to offer offline installment loan options at the point of sale. While this business is still relatively small at the moment, we are quite confident it could be a market of very substantial potential.

對於線下業務，我們去年獲得了汽車金融牌照。我們正在向智慧型手機、摩托車、家電等線下分期場景拓展。我們與中國主要電子品牌和本地品牌合作，在銷售點提供線下分期貸款選項。雖然目前這項業務規模相對較小，但我們非常有信心，它可能是一個具有巨大潛力的市場。

And for the Philippines, it's our second largest overseas market. It has been consistently exceeding our expectations as the macro environment remains very favorable. For our Buy Now, Pay Later cooperation with the TikTok Shop, it continued to be a very huge success. It's already contributed 32% of Philippines total transaction volume and its product line has already become profitable.

對菲律賓來說，它是我們的第二大海外市場。由於宏觀環境仍然非常有利，它一直超出我們的預期。我們與 TikTok Shop 的「先買後付」合作繼續取得了巨大的成功。它已經貢獻了菲律賓總交易量的32%，其產品線已經實現盈利。

Building on this success, we have recently expanded partnerships with other local telecom operator to fund phone credits with Buy Now, Pay Later products. So with these partnerships, we aim to onboard a new customer base that we haven't served before. Looking forward, we continue to expand and diversify the consumption scenarios and the partners' ecosystems to build our financial product metrics that covers the wider user base to speed up the overseas business growth.

基於這項成功，我們最近擴大了與其他本地電信業者的合作夥伴關係，透過「先買後付」產品為電話信用提供資金。因此，透過這些合作，我們的目標是吸引以前從未服務過的新客戶群。展望未來，我們將持續拓展和豐富消費場景和合作夥伴生態系統，建構覆蓋更廣泛用戶群的金融產品指標，以加速海外業務成長。

So looking ahead to the second half year, although the Philippines might experience some typhoon-related seasonal impact in Q3, we will stay prudent in our customer acquisition strategies. But given the powerful momentum from our ecosystem partners and our expanding product offerings, we are very confident in maintaining the growth trajectory for the full year.

因此展望下半年，儘管菲律賓在第三季可能會受到一些與颱風相關的季節性影響，但我們仍將保持謹慎的客戶獲取策略。但鑑於我們生態系統合作夥伴的強大動力和我們不斷擴大的產品供應，我們非常有信心維持全年的成長軌跡。

Alex Ye, UBS.

瑞銀集團 Alex Ye。

I'll translate for my question. First question is about the asset quality. So can you give us more color on the drivers for the Q-on-Q movement into your day one delinquency ratio and collection ratio? And how has been the trend you have seen in the July and August? So are you concerned about the potential spillover risk for your core customer base from the current regulatory uncertainty?

我會翻譯我的問題。第一個問題是關於資產品質。那麼，您能否向我們詳細介紹一下導致第一天拖欠率和收款率較上季變化的驅動因素？您認為七月和八月的趨勢如何？那麼，您是否擔心當前監管的不確定性會對您的核心客戶群帶來潛在的溢出風險？

Second question is about your overseas business. Can you walk us through how has been the development of your overseas business compared to your plan in the beginning of the year, in particular, given you have issuance and CB earlier, so how has that expected to be contribute to your overseas growth in the coming quarters? Do we -- should we expect the overseas growth to further accelerate from here?

第二個問題是關於你們的海外業務。您能否向我們介紹一下，與年初的計劃相比，您的海外業務發展如何？特別是考慮到您之前已經發行債券和可轉換債券，預計這將如何促進您未來幾季的海外成長？我們是否應該預期海外成長將從現在開始進一步加速？

Okay. Thanks. Yeah, let me take your questions. Your first question is about the domestic business again. So let's wrap back to the domestic business.

好的。謝謝。是的，讓我回答你的問題。您第一個問題又是關於國內業務的。讓我們回到國內業務。

Well, overall risk level was largely in check in Q2, although we observed a moderate uptrend in the July and August. We started to see the early spillover of the risk from 36% asset to 24% assets, but it remained under control as we preemptively manage the loan portfolio.

儘管我們觀察到 7 月和 8 月出現了溫和的上升趨勢，但第二季的整體風險水準基本上得到控制。我們開始看到風險從 36% 的資產溢出到 24% 的資產，但由於我們預先管理了貸款組合，風險仍在控制之中。

In Q2, our key risk metrics remained largely stable. As we mentioned, it also factored in the slightly long tenure of the portfolio in the quarter. The day-one delinquency rate held steady at 4.7%. Our 30-day loan collection rate remained strong at 89%. The vintage delinquency rate was 2.5%.

在第二季度，我們的關鍵風險指標基本上保持穩定。正如我們所提到的，它還考慮到了本季投資組合的期限略長。首日拖欠率穩定在4.7%。我們的 30 天貸款回收率仍保持 89% 的強勁水準。老式貸款拖欠率為 2.5%。

In July, we saw a bit of upward movement. Our day-one delinquency rate ticked up slightly by 20 bps to 4.9%. We moved quickly to adjust our risk management strategies. And by August, the day-one delinquency rate has stabilized at 4.9% level. And our 30-day loan collection rate held firm at around 89%.

七月份，我們看到了一些上升趨勢。我們的第一天拖欠率小幅上升了 20 個基點，達到 4.9%。我們迅速調整了風險管理策略。截至8月份，首日拖欠率已穩定在4.9%的水平。我們的30天貸款回收率穩定在89%左右。

In view of the uptrend of risk, we have proactively tightened our risk management in the following aspects. First, we reduced our exposure to the assets from those low-quality channels, which historical carries a high risk. And for those high-quality channels, maybe the information feed channel, we further adopt a different credit strategy for our borrowers. For example, we reduced the credit limit to borrowers of the higher debt of the better terms to borrowers of better credit score and then remove the credit limit that are not utilized.

針對風險上升趨勢，我們主動加強風險管理，主要包括以下幾個面向。首先，我們減少了對那些低品質通路資產的投資，這些通路的歷史風險很高。而對於那些優質管道，例如資訊推送管道，我們進一步對借款人採取不同的信貸策略。例如，我們降低信用額度，對債務較高的借款人給予更好的信用條件，對信用評分較高的借款人給予更好的信用條件，然後取消未使用的信用額度。

And in terms of the loan collection, we employed the AI technology to identify and alert high-risk borrowers who are in the early stage of the past due and set up the collection effort accordingly. So look ahead, while we continue to be vigilant on risk for Q3 and Q4, we also have a risk buffer in place. Our provision coverage ratio has climbed to 543%, up significantly from 465% in Q1.

在貸款催收方面，我們利用人工智慧技術識別並預警處於逾期初期的高風險借款人，並據此制定催收措施。因此展望未來，我們一方面繼續對第三季和第四季的風險保持警惕，另一方面也做好了風險緩衝。我們的撥備覆蓋率已攀升至 543%，較第一季的 465% 大幅上升。

So we will remain flexibility and adapt to the market dynamics. We are confident to stay constructive over the long-term development of the industry and the position of the leading platforms. So that's for your first question.

因此我們將保持靈活性並適應市場動態。我們有信心對產業的長期發展和領先平台的地位保持建設性的看法。這就是您的第一個問題。

And your next question is about the overseas business and the impact of the convertible bonds. Well, regarding our international performance, as we mentioned, the first half of the year has played out very much as we expected. The transaction volume hit RMB6.2 billion, up 38% from last year. The outstanding balance grew to RMB2.1 billion, a 50% increase and the revenue reached RMB1.5 billion, up 30% and now making up 21% of the group's total revenue.

您的下一個問題是關於海外業務和可轉債的影響。嗯，關於我們的國際表現，正如我們所提到的，今年上半年的表現與我們預期的非常一致。交易額達62億元，較去年同期成長38%。未償餘額增加至21億元，成長50%；收入達15億元人民幣，成長30%，佔集團總收入的21%。

The funding cost in international markets has held steady, and we have continued to deepen relationships with more financial institutions. As we mentioned before, we are focused on attracting high-quality borrowers in Indonesia, where we have seen a 50% improvement in credit cost comparing to the start of the year.

國際市場融資成本維持穩定，我們與更多金融機構的關係不斷加深。正如我們之前提到的，我們專注於吸引印尼的優質借款人，與今年年初相比，我們的信貸成本改善了 50%。

The credit cost in the Philippines has held steady. This has driven a steady improvement in our take rate. On top of that, the recent removal of the regulatory in Indonesia could normalize the liquidity and provide us a stable environment to execute the consistent customer acquisition and our risk pricing strategy going forward.

菲律賓的信貸成本維持穩定。這推動了我們的接受率穩步提高。除此之外，印尼最近取消了監管，可以使流動性正常化，並為我們提供一個穩定的環境，以便我們在未來執行一致的客戶獲取和風險定價策略。

And for our new markets such as Pakistan, after we get the NBFC license last year, we just recently secured a Buy Now, Pay Later license in July, and can make us the first fintech platform that can operate both online and offline, representing a powerful endorsement from the regulators. Now our plan is to roll out more diversified consumer finance product offerings to serve our customers throughout their life cycles.

對於巴基斯坦這樣的新市場，我們去年獲得NBFC牌照後，最近又在7月份獲得了「先買後付」牌照，可以成為第一個線上線下同時運營的金融科技平台，這代表著監管機構的強有力認可。現在我們的計劃是推出更多樣化的消費金融產品，為客戶的整個生命週期提供服務。

Finally, I want to touch on how we are funding this growth. Our $150 million convertible bond issuance in June was a strategic move. We used around $16 million for concurrent buyback and the rest is gradually deployed to fund our international business. Our average overseas funding cost is about 12% comparing to the 2.5% coupon from CB. That's roughly 10% potential savings from the working capital management perspective.

最後，我想談談我們如何為這一成長提供資金。我們六月發行的1.5億美元可轉換債券是一項策略性舉措。我們使用了約 1,600 萬美元進行同時回購，其餘部分則逐步用於資助我們的國際業務。我們的平均海外融資成本約為 12%，而 CB 的票面利率為 2.5%。從營運資本管理的角度來看，這大約是 10% 的潛在節省。

So on top of that, this CB funding gives us more flexibility on funding cost when we engage with the local funding partners. All this positive development together great use of the CB funding led us to expect better profitability from our international business. We now expect the profit contribution from our international business of no less than USD15 million this year, up from our prior estimate of $10 million.

因此，最重要的是，當我們與當地融資夥伴合作時，這種 CB 融資為我們的融資成本提供了更大的靈活性。所有這些積極的發展加上 CB 資金的充分利用使我們對國際業務的盈利能力有更高的期望。我們現在預計今年國際業務的利潤貢獻將不少於 1500 萬美元，高於先前估計的 1000 萬美元。

Dongping Zhou, CICC.

週東平，中金公司。

And let me translate, and I would like to inquire about the company's future shareholders' returns progress. We noticed that the company has repurchased about $50 million in shares during the first half of this year. And I wonder if you could give me some color on the future progress of the repurchase.

讓我翻譯一下，我想詢問一下公司未來股東回報的進展。我們注意到該公司今年上半年已回購了約5,000萬美元的股票。我想知道您是否可以告訴我一些關於回購未來進展的情況。

And in addition, the company has previously raised the year's dividend payout ratio to the range of 20% to 30%. Is there a more specific dividend ratio plan available for disclosure to the shareholder at present? And that's all.

此外，該公司先前已將今年的股息發放率提高至20%至30%的區間。目前是否有更具體的分紅比例方案可以揭露給股東？就這樣。

Okay. Thanks, Dongping. I will take your question. Well, return capital to our shareholders is always a very important strategy for us. We were the first in the industry to launch the capital return program back in 2018.

好的。謝謝，東平。我回答你的問題。嗯，向股東返還資本對我們來說始終是個非常重要的策略。早在2018年，我們就率先在業界推出了資本返還計畫。

And since then, our commitment has been substantial. We have cumulatively returned $813 million to our shareholders, representing around 35% of our current market cap. And regarding the two pillars of the return, the dividend and the buyback, first, for the dividend, we are deeply committed to a growing dividend. Our DPS reached $0.277 for 2024, up a strong 70% year over year. That actually marks our fifth consecutive year of growth with an impressive 80% CAGR.

從那時起，我們的承諾就一直很堅定。我們已累計向股東返還 8.13 億美元，約占我們目前市值的 35%。關於回報的兩大支柱，即股息和回購，首先，對於股息，我們堅定地致力於不斷增長的股息。2024 年我們的每股股息達到 0.277 美元，年增 70%。這實際上標誌著我們連續第五年實現成長，複合年增長率高達 80%。

And this year, in March, our Board approved a significant upgrade to our dividend policy, moving from a minimum of 10% of net profit to a new range of 20% to 30% annually. Given this enhanced policy and our performance, we will track the DPS growth rate to ensure a sustainable dividend growth strategy.

今年 3 月，董事會批准對股息政策進行重大升級，從每年最低 10% 的淨利潤提高到 20% 至 30% 的新範圍。鑑於這項強化政策和我們的業績，我們將追蹤每股股息成長率，以確保可持續的股息成長策略。

Second, as for the share repurchase, we see the buybacks as a powerful and complementary tool. We had our $115 million buyback program in place until March 2027. In the first half of the year, we have repurchased $63.8 million, representing a 12% increase year over year.

其次，就股票回購而言，我們認為回購是強而有力的補充工具。我們的 1.15 億美元回購計畫將持續到 2027 年 3 月。今年上半年，我們回購了6,380萬美元，年增12%。

So we believe this new buyback and upgraded dividend policy send a clear message. We are committed to returning capital to our shareholders and a sign of our confidence in sustained growth, profit potential and expanding the international presence.

因此，我們相信這項新的回購和升級的股利政策發出了明確的訊息。我們致力於向股東返還資本，這表明我們對持續成長、獲利潛力和擴大國際影響力充滿信心。

This concludes our question-and-answer session. I would now like to turn the call back over to management for closing remarks.

我們的問答環節到此結束。現在我想將電話轉回給管理階層，請他們做最後發言。

All right. Thank you. Thank you once again for joining us today. If you have any further questions, feel free to contact our IR team. Thank you again for joining.

好的。謝謝。再次感謝您今天加入我們。如果您有任何其他問題，請隨時聯絡我們的 IR 團隊。再次感謝您的加入。

The conference has now concluded. Thank you for your participation. You may now disconnect your lines.

會議現已結束。感謝您的參與。現在您可以斷開線路了。