Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: I have noticed a significant slowdown in the company's revenue growth in 2024. Is this a short-term adjustment or long-term trend? Could the management share the business expansion plans and performance outlook for 2025? A: This is Shawn Zhang, and I will do the translations for the management. Our current revenue structure primarily consists of loan facilitation revenue and guarantee service revenue. In 2024, we focused on high-quality growth of facilitation service revenue, which increased from 48% in Q4 2023 to 80% in Q4 2024. The slowdown in overall revenue is due to a strategic reduction in guarantee service revenue. For 2025, we project a facilitation volume of RMB137 billion to RMB142 billion, reflecting a year-over-year growth of about 36% to 41%.
Q: What plans and investments does the company currently have in technology and talent cultivation, and how does the company ensure it maintains a leading position in technology? A: Yifang Xu, Chief Risk Officer, responded. We are committed to leveraging technologies and data to connect consumers and financial institutions. We have increased investment in AI and big data, upgrading our corporate architecture and deploying AI agents for unified intelligence solutions. We are also exploring AI applications in risk management to reinforce our competitive advantage.
Q: We have noticed a decline in the company's net income in 2024. What are the main reasons for this? Are there any plans for improvement in the future? A: Chunlin Fan, CFO, explained that the decline in net income is due to a one-time non-operating income in 2023, increased borrower acquisition costs, and higher R&D expenses. These strategic investments aim to strengthen long-term growth. For 2025, we expect significant improvements in profitability, with non-GAAP income from operations projected to increase by 80% to 99% year-over-year in Q1 2025.
Q: How does the company plan to optimize borrower experience to increase their loyalty, and are there plans to attract new borrower groups? A: Yifang Xu, Chief Risk Officer, stated that the company focuses on enhancing borrower experience through cooperation with popular platforms, improving internal processes, and offering premium benefits. We aim to integrate the industry ecosystem and pursue high-quality borrower acquisition and retention, achieving a diversified layout across products and financial institutions.
Q: What is the company's strategy for overseas business expansion, particularly in Indonesia and Mexico? A: Dinggui Yan, CEO, highlighted that in Q4 2024, our Indonesian partners saw a 74% increase in loan volume, and registered users grew by 131%. We established partnerships with local financial institutions and are in discussions with potential partners. In Mexico, we optimized risk indicators and improved profitability, aiming to strengthen our competitive position in the overseas market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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