FinVolution Group Q3 FY2025 earnings call

• In China, a new consumer finance regulation framework took effect on October 1, 2025. The company responded proactively by tightening credit standards, prudently managing loan growth, and maintaining communication with funding partners to ensure stable funding supply. • Internationally, the borrower base stood at a cumulative 10 million with new borrowers up 18% sequentially in the third quarter. Indonesia's growth accelerated after OJK's stable interest rate policy, and the Philippines boosted transaction volume by 86% year-over-year. • The company hosted the annual FinVolution Global Data Science Competition, which attracted top AI researchers and others, and has been recognized by academic institutions. • Adopted AI to improve customer service and consumer rights protection, with an enhanced AI agent completing over 1 million service interactions during the quarter.

In the third quarter of 2025, total revenue of FinVolution Group grew 6.4% year-over-year to RMB 3.5 billion, and net profit was RMB 641 million, up 2.7% year-over-year. The China business demonstrated stable revenue. The international business showed robust growth with transaction volume up 33% year-over-year and revenue up 37% year-over-year. The international segment contributed a record 25% of total revenue this quarter, compared to 19% a year earlier.

• The company now expects full year 2025 total revenue guidance to be in the range of approximately RMB 13.1 billion to RMB 13.7 billion, representing year-over-year growth of approximately 0% to 5%. • The company has been actively repurchasing shares, with $78.4 million worth bought back as of November 14, and the pace picked up in the fourth quarter. Dividends have shown 5 straight years of growth, with a 17% year-over-year increase in 2024.

• The full implementation of the new consumer finance regulation in the fourth quarter could create short-term uncertainties over volume, revenue, and risk metrics. • The new regulation may impact parts of the business such as the traffic referral business, with some customers no longer being served and the take rate for such services likely to narrow. • Market volatility and regulatory changes in China introduce near-term uncertainties for the business.

Q: Given current regulatory changes and their impact on near-term risk and impairment charges, how should we expect normalized take rate to settle in the next few quarters after asset quality stabilizes? And what's the current unused quota for the buyback plan and guidance on pace and scale of buybacks in the next 12 months?

A: Jiayuan Xu responded that for risk-bearing portfolio, take rate should track towards normal period considering factors like market liquidity, funding costs, and operational efficiency. On buybacks, as of November 14, $78.4 million worth of shares were bought back, with the pace picking up in Q4, on track for a full year similar to last year, and focus on delivering steady EPS growth.

Q: What's the day 1 delinquency rate and 30-day loan collection rate in Q3, and have there been signs of stabilization since July? Also, will the growth momentum in overseas markets accelerate and what are the main products driving growth in Indonesia and Philippines?

A: Jiayuan Xu said day 1 delinquency rate increased to 5% and 30-day collection rate softened to 88% in Q3, with early signs of stabilization in November. Tiezheng Li mentioned international business has grown rapidly with CAGR over 70% from 2020-2024. In Indonesia, buy now, pay later in offline retail is growing fast (6x YOY in transaction volume). In Philippines, e-commerce partnerships contributed 36% of transaction volume, with digital partnerships growing since February last year.

Q: With current regulatory uncertainty, what measures has the company taken to address it and what are key priorities for future development?

A: Tiezheng Li stated the company has navigated multiple market cycles. In China, it has taken preemptive actions like upgrading borrower base, raising underwriting standards, and adjusting user acquisition spend. Internationally, it has a successful playbook in Southeast Asia with over 15 institutional funding partners, diverse partnerships, etc. The strategic target is to have 50% of business from international markets by 2030, with China remaining a major bedrock focusing on balance between risk and growth.