Release Date: March 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the international business expansion strategy and its impact on operating costs and profitability? A: Jiayuan Xu, CFO, explained that the company aims to increase international revenue contribution to 50% by 2030. The operating costs and profitability will vary depending on the maturity of each market. For instance, Indonesia achieved a profit of $5 million in 2024, expected to double in 2025. The Philippines, which was at a loss in 2024, is expected to become profitable in 2025. Initial investments in new markets will impact the bottom line, but international profit contribution is expected to rise significantly by 2030.
Q: How should we think about the shareholder return policy, especially regarding dividends and share buybacks? A: Jiayuan Xu, CFO, stated that the company is committed to delivering sustainable returns through business growth and capital tools. Since 2018, FinVolution has returned $765 million to shareholders through dividends and buybacks. In 2024, $160 million was returned, representing 49% of net profit. The dividend policy has been revised to increase the payout ratio to 20-30% of net profit, and a new $150 million share repurchase program has been approved.
Q: Can you elaborate on the user demand recovery in Q4 2024 and Q1 2025, and the loan guidance for domestic business in 2025? A: Jiayuan Xu, CFO, noted that consumer demand showed a recovery trend in Q4 2024, with growth rates exceeding 10% year-over-year. The recovery is expected to continue in 2025, supported by government measures to boost consumer confidence. The first quarter of 2025 showed resilient demand, with application volume growing in high single digits year-over-year, setting a solid foundation for the year.
Q: How is AI being utilized to increase operational efficiency and reduce credit risks? A: Tiezheng Li, CEO, highlighted that AI is integrated into various business areas, including customer service, user acquisition, and credit risk management. AI tools have reduced advertising production costs by 60% and improved customer service efficiency. AI models have successfully identified fraud in credit applications, and AI-powered bots are used for early delinquency loan collection. These initiatives are expected to enhance operational efficiency and profitability.
Q: What is the international business expansion strategy and outlook for 2025 in Indonesia, the Philippines, and Pakistan? A: Tiezheng Li, CEO, outlined that in Indonesia, the focus is on targeting higher-quality customers and expanding offline operations. The Philippines will continue rapid growth, with an emphasis on buy-now-pay-later transactions and institutional funding. In Pakistan, operations will accelerate in 2025 following the acquisition of a Non-Banking Financial Company license. The company is also exploring opportunities in other countries.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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