FinVolution Group Q4 FY2025 earnings call

• 2025 was the 18th anniversary of Finvolution. Full-year group revenue was 13.6 billion RMB, up 3.8% year-over-year; net profit rose to 2.5 billion RMB, a 6.6% increase. - International business grew significantly, with volume up 38.6% and revenue up 32.0% in 2025, and contributed 31% of the quarter's revenue, targeting 50% by 2030. - In China, new regulations in the fourth quarter led to tightened underwriting and enhanced risk controls, with loan origination volume and balance moderating, but portfolio risk starting to stabilize. - International markets like Indonesia and the Philippines achieved full-year profitability, doubled unique user base in 2025, and Finvolution entered Australia in the fourth quarter. - Accelerated share buyback in 2025, with $107 million repurchased, and announced a $4.5 million dividend for 2025. - In 2026, will manage China business patiently, nurture international segments, and continue investing in technologies and partnerships.

In the mature market of China, in the fourth quarter, due to new regulations, they prioritized risk over loan origination, resulting in near-term moderation of loan origination volume to 38.7 billion RMB and loan balance to 68.3 billion RMB. The vintage loss for new loan origination stabilized at 3.0%, and overall portfolio risk started stabilizing in December. For international markets, in 2025, international business volume increased by 38.6% and revenue rose by 32.0% year-over-year. International business contributed 31% of revenue for the quarter. Indonesia and the Philippines achieved full-year profitability and contributed over $15 million in combined operating profit. In the fourth quarter, Finvolution entered the Australian market by acquiring Fondo.

• Expect full-year 2026 group revenue to decline between 5% and 15% year-over-year. - International business is expected to maintain rapid growth momentum in 2026, with international revenue accounting for roughly 30% of the full-year total.

• Regulatory uncertainty in China in the second half of 2025 tempered full-year transaction volume. - Risks associated with overseas market expansion such as competition and regulatory changes in different markets.

Q: First question about the company's recovery strategy in the future and whether it can maintain the rhythm in the short term under current regulatory uncertainties; second question about Chinese market 2026 goals including loan rate, average price, and investment in South American market.

A: Regarding share buybacks, will maintain the pro-trade momentum with $40.7 million repurchased in the fourth quarter of 2025 and $38 million already in the first quarter of 2026, and chairman and senior management also made personal investments. For China business in 2026, will focus on high-quality operations, use AI for efficiencies, transaction volume in first quarter typically lower due to Chinese New Year, price affected by funding partners and regulator guidance, and maintain relatively proactive customer acquisition.

Q: First question about credit risk cycle changes in Q4 and January to March; second question about revenue contribution from overseas markets in 2026 and customer acquisition strategies in Indonesia and Philippines.

A: Risk overall increased but contained, early risk indicators in Q4 increased slightly, delinquency trended down in January and February 2026. International business in 2026 expected to maintain rapid growth momentum, international revenue to account for roughly 30% of full-year total. Customer acquisition in Indonesia and Philippines involves systematic approach including positioning, traffic acquisition, embedding in high frequency spending scenarios, and using online channels like Google, Facebook, etc., and deeper integration with local ecosystem.

Q: Question about strategic considerations for entering developed markets like Australia, current competitive and regulatory environment in developed markets, and follow-up development plans.

A: Entering developed markets to export capabilities, balance geotric portfolio, hedge against volatility. Australia has clear structural opportunities, moderate competition, robust and transparent regulatory environment, and acquiring Fondo provided a fast path. In 2026, focus on sharpening risk models, refining operations, and optimizing funding costs to help Fondo accelerate growth.