Loading...
01/11 11:06
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call revealed strong financial metrics, including a 10% revenue increase and a 39% net profit rise. The company also announced a significant share repurchase program and a dividend increase, both positive for shareholder returns. Despite some economic uncertainties, management expressed confidence in international growth and provided optimistic guidance for 2025. The market cap suggests moderate sensitivity to these announcements, leading to an expected stock price movement in the positive range (2% to 8%).
Revenue RMB 3.5 billion, a 10% increase year-over-year, driven by expanding take rate in China and surging international demand.
Net Profit RMB 738 million, a 39% increase year-over-year, attributed to operational excellence and growth in transaction volume.
Sales and Marketing Expenses RMB 530 million, an 18% increase year-over-year, due to efforts to acquire new borrowers of higher quality.
International Transaction Volume RMB 3 billion, a 36% increase year-over-year, supported by robust growth in international markets.
Outstanding Loan Balance (International) RMB 1.9 billion, a 46% increase year-over-year, reflecting strong demand in international markets.
Unique Borrowers (International) 1.7 million, a 106% increase year-over-year, indicating effective borrower acquisition strategies.
Take Rate (China) Increased from 3.3% to 3.4% sequentially, due to strong partnerships leading to a decline in funding costs.
Day 1 Delinquency Rate Improved to 4.6%, a 10 basis point decrease, reflecting better credit management.
Liquidity Position RMB 8.5 billion in cash and cash equivalents plus short-term investments, indicating a strong liquidity position.
Dividend per ADS USD 0.277, reflecting a 17% increase year-over-year in EPS, demonstrating commitment to returning value to shareholders.
International Transaction Volume Growth: International transaction volume grew robustly, up 36% year-over-year, complementing China’s slightly 7% growth.
International Business Contribution to Revenue: Our international business contributed 20.4% of total net revenue in the first quarter, up from 18.8% in the same period last year.
New Borrowers Acquisition: In Q1 2025, we onboarded 1.2 million new borrowers, up 62% year-over-year, with international acquisitions exceeding those in China.
Philippines Transaction Volume Growth: In the Philippines, our transaction volume reached RMB 1.2 billion, up 118% year-over-year.
Net Profit: Achieved a record-breaking quarterly net profit of RMB 738 million, the highest since our transition to a loan facilitation model in 2019.
Take Rate Improvement: China’s business achieved an increase in take rate from 3.3% to 3.4% sequentially.
Outstanding Loan Balance: Outstanding loan balance rose to RMB 1.9 billion, up 46% year-over-year.
Strategic Goal for International Revenue: We are on track to achieve our strategic goal of having international business contribute 50% of the group’s total revenue by 2030.
Technology Initiatives: Exploring the use of large language models in risk assessment to improve operational efficiency.
Macroeconomic Uncertainties: Ongoing macroeconomic uncertainties such as global trade tensions, property sector softness, and evolving regulations in China’s consumer finance sector.
Regulatory Issues: Evolving regulations in China’s consumer finance sector could impact operations and growth.
Geographic Concentration Risk: Despite efforts to diversify internationally, there remains a risk associated with reliance on specific markets.
Supply Chain Challenges: Potential supply chain challenges due to global trade tensions could affect operational efficiency.
Economic Factors: Economic uncertainties in Indonesia and the Philippines due to trade tensions and tariff uncertainty may impact growth.
Interest Rate Cap Impact: The change in the interest rate cap in Indonesia has had limited impact, but ongoing monitoring is necessary.
Seasonal Impact: Seasonal impacts, particularly in Indonesia during Ramadan, may affect transaction volumes.
Revenue Growth: Achieved 10% year-over-year revenue growth fueled by expanding take rate in China and surging international demand.
International Business Contribution: On track to achieve strategic goal of having international business contribute 50% of total revenue by 2030.
Borrower Acquisition: Onboarded 1.2 million new borrowers, up 62% year-over-year, with strong momentum in international markets.
Technology Initiatives: Exploring use of large language models in risk assessment to improve efficiency and effectiveness.
ESG Efforts: Facilitated RMB 15 billion in financing for small business owners, representing 30% of China transaction volume.
Revenue Guidance: Reiterating 2025 full year revenue guidance of RMB 14.4 billion to RMB 15 billion, representing 10% to 15% growth year-over-year.
Net Income: Achieved record-breaking quarterly net profit of RMB 738 million, a 39% year-over-year increase.
Operational Efficiency: Plans to expand the role of technology initiatives across additional business functions to boost operational efficiency.
Annual Dividend: USD 0.277 per ADS, reflecting a 17% year-over-year increase.
Total Dividend Distribution for FY 2024: USD 70.3 million.
Share Repurchase Program: The company has continuously returned value to shareholders through share repurchase since 2018.
The earnings call shows strong international growth, especially in the Philippines and Indonesia, with significant increases in transaction volumes and borrower base. The company's financial health is robust, with improved funding costs and a low leverage ratio. Despite regulatory challenges, the company is well-positioned for future growth. The Q&A highlights management's cautious optimism about risk stabilization and continued buyback efforts. Given the company's small market cap, these factors are likely to lead to a positive stock price reaction.
The earnings call revealed strong financial metrics, including a 10% revenue increase and a 39% net profit rise. The company also announced a significant share repurchase program and a dividend increase, both positive for shareholder returns. Despite some economic uncertainties, management expressed confidence in international growth and provided optimistic guidance for 2025. The market cap suggests moderate sensitivity to these announcements, leading to an expected stock price movement in the positive range (2% to 8%).
The earnings call reveals strong financial performance, with a 39% YoY net profit increase and a 17% dividend hike. Despite macroeconomic uncertainties and regulatory challenges, the company maintains optimistic revenue guidance and international expansion plans. The Q&A highlights manageable regulatory impacts and stable loan demand, with potential growth in international markets. The approved share repurchase program and dividend increase further support shareholder value. Given the market cap of approximately $1.2 billion, these factors suggest a likely positive stock price movement of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
